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Join us as we report through 2021

‘You learn with Africa Ports & Ships’ 

*** Happy Independence Day to our USA readers on 4 July ***

TODAY’S BULLETIN OF MARITIME NEWS

These news reports are updated on an ongoing basis. Check back regularly for the latest news as it develops – where necessary refresh your page at www.africaports.co.za

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FIRST VIEW:   ALISIOS

EARLIER NEWS CAN BE FOUND AT NEWS CATEGORIES…….

The Sunday masthead shows the Port Harcourt (Nigeria)
The Monday masthead shows the Port Elizabeth Manganes Terminal

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FIRST VIEW:   ALISIOS

Alisios. Picture by Keith Betts

One of the recent bulk carriers to call at Durban was the ALISIOS (IMO 9474620), a 92,776-dwt heavyweight that arrived in port from Penang in South East Asia. Built in 2011, which makes her ten years old this year, the ship has a length of 229 metres and a beam of 38m.

Flying the Panama flag, the ship is registered to a company called Harrogate Investments Inc, with an address in Panama City, who are also her ship and commercial managers. The ISM manager is Wallem Shipmanagement of Hong Kong. Up until 2013 the bulker was named Tansanit.

The bulk  carrier is shown here arriving in port during June this year, with a couple of port tugs already alongside.

Picture is by Keith Betts

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Photographs of shipping and other maritime scenes involving any of the ports of South Africa or from the rest of the African continent, together with a short description, name of ship/s, ports etc are welome.

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DP World tables offer to buy South Africa’s Imperial Logistics

The acquisition of Imperial will help DP World to build better and more efficient supply chains for the owners of cargo, especially in Africa. Imperial’s operations are complementary to our network of ports, terminals and logistics operations on the continent – Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World

 

DP World has announced an offer to acquire JSE-listed Imperial Logistics, a South African integrated logistics and market access company with operations mainly across the African continent and in Europe.

The acquisition will enhance DP World’s capabilities, particularly in Africa, building on its extensive infrastructure of ports, terminals and economic zones. It will also significantly accelerate DP World’s transformation into an advanced logistics company offering end-to-end supply chain services to the owners of cargo.

DP World’s cash offer of ZAR66 per share implies an equity consideration of around ZAR 12.7bn (around USD890mn). It represents a premium of 39.5% to the Imperial share price as of 7 July 2021 on the Johannesburg Stock Exchange (JSE) and a 34.2% premium to the 30-day volume weighted average price. This transaction is subject to Imperial’s shareholder approval and other customary completion conditions including regulatory approvals.

Imperial

Imperial is an integrated logistics and market access solutions provider with a presence across 25 countries, including a significant footprint in the high growth Africa market. The Group focuses on fast-growing industries including healthcare, consumer, automotive, chemicals, industrial and commodities. Imperial’s business has been built on long-term partnerships with cargo owners, in addition to serving as a trusted partner to many multinational clients, principals and customers.

The acquisition of Imperial will add new capabilities to DP World, particularly in Africa. Combining the companies will create the continent’s best network across inland logistics, ports & terminals, economic zones and marine logistics. DP World aims to improve connectivity between African producers along fast-growing trade lanes to the rest of the world.

To build better and more efficient supply chains

“The acquisition of Imperial will help DP World to build better and more efficient supply chains for the owners of cargo, especially in Africa, said Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World.

“Imperial’s operations are complementary to our network of ports, terminals and logistics operations on the continent. Like DP World, Imperial’s biggest asset is its people, and we look forward to welcoming employees of Imperial into the DP World team on successful conclusion of the transaction,” he added.

Imperial’s integration with DP World will strengthen South Africa’s position as a logistics hub for Africa. DP World says it is keenly aware of the importance of economic transformation through Broad-Based Black Economic Empowerment (B-BBEE) and intends to maintain Imperial’s existing programmes, and fully supports Imperial’s proposed B-BBEE transaction that was announced in April 2021.

“This transaction will be value-enhancing for Imperial as the business will benefit from DP World’s leading technology, global networks and key trade lane volumes, while enabling us to build on our ‘Gateway to Africa’ strategic and growth ambitions,” said Mohammed Akoojee, Group Chief Executive Officer of Imperial Logistics.

Imperial is active in 25 mainly European and African countries.

“Combining DP World’s world-class infrastructure such as its investment and expertise in ports on the African continent, with Imperial’s logistics and market access platforms will enable us to offer integrated end-to-end solutions along key trade lanes into and out of Africa, also driving greater supply chain efficiencies, and ultimately enhancing value for all stakeholders.”

Funding

DP World said that the deal will be funded from its existing available resources. “DP World continues to make positive progress on its capital recycling programmes and remains fully committed to its leverage target of net debt being below four times EBITDA by the end of 2022.”

DP World says it is the leading provider of worldwide smart end-to-end supply chain logistics, enabling the flow of trade across the globe. “Our comprehensive range of products and services covers every link of the integrated supply chain – from maritime and inland terminals to marine services and industrial parks as well as technology-driven customer solutions.”

These services are delivered through an interconnected global network of 148 business units in 60 countries across six continents, with a significant presence both in high-growth and mature markets. “Wherever we operate, we integrate sustainability and responsible corporate citizenship into our activities, striving for a positive contribution to the economies and communities where we live and work.”

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Port Window: Durban Port Bulletin report

Moshe Motlohi, Transnet National Ports Authority General Manager reports:

Covid-19 is proving to be what is called a wicked problem. As we were grappling with addressing challenges of ships that were found with positive Covid-19 cases by quarantining them, another problem of having a ship not working for the duration of quarantine emerged. Trying to resolve non-productive occupation of berths by doing Covid-19 tests before vessels are berthed imposed other challenges.

Amidst these challenges we did not tire, we worked with all stakeholders to find a working solution. This intervention was communicated through the Harbour Master’s office. We are mindful that this is not a perfect solution but is going to help us move forward. True to the definition of a wicked problem, we have seen that today’s solution becomes tomorrow’s problem.

Of concern are the sporadic unrests we have seen on major roads used by transporters carrying cargo. These disruptions, if not addressed, will affect the functioning of the port. Having read the Finance Minister’s MTSBP [Medium Term Strategy and Business Plan], we are all reminded that for our economy to improve we will have to take responsibility.

In our context, the call is that “let’s continue lowering the cost of doing business through our facilities”. The focus for the new week will be Maydon Wharf which would be kicking off the booking system.

On a more productive note the spirit of meaningful collaboration amongst the stakeholders has taken root in the Ship Repair precinct. I would like to acknowledge with appreciation collaboration between TNPA and Olympus Marine assisted by Sandock Austral (SAS) in addressing long-standing performance inhibitors at the Prince Edward dry dock. Both interventions from the two partners have assisted in improving speed of execution at low cost. The benefits accruing out of these two interventions will be for all dock users.

As the vaccination drive gains momentum in the country, I would like to remind everyone to keep the suggested social distance in those vaccination centres. With the increasing incidents on the major roads, be vigilant and safe out there. Take care of yourself and [your] families, always wear your masks and sanitise.

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The Port Window: Port of Durban Volume & Vessel Call Performance

CONTAINERS: Containers have performed above this week’s budget. Transshipment and exports exceeded targets by 13% and 35% respectively. The positive deviation in exports is due to the demand for mining commodities, exporting of empty containers and reefer cargo. Imports were marginally below target by 1%.

AUTOS: This sector is over budget for the week. We note that exports performed well when compared to the previous and improved by 29% in terms of actual throughput. Three of the major OEMs (Original Equipment Manufacturer) exported more than 900 units each for the period with the highest being 1,699 units. Imports finished off the week slightly lower, however we will note the erratic trend due to inconsistent consumer behaviour coupled with spikes partly due to more vehicles taken in for fleet purposes as well as launches of new models to a certain degree.

DRY BULK: This sector has improved from the previous period by 18% due to the fact that we see both an influx of maize and wheat throughput for the week with the first totalling 99,165 tons and the second coming in at just over 80,000 tons. Fertiliser imports also bolstered volume as a total of 65,436 tons was landed in the period, making the agricultural sector at the port the focus of the week. Ores and minerals also did not disappoint as manganese ore exports improved from the previous period at just over 59,000 tons with chrome throughput sitting at 47,371 tons.

BREAK BULK: This sector finished off the week with much lower throughput versus the previous period. This was due to no cement imported in the period which generally constitutes a high volume for the sector. Steel. however, performed well for the week.

LIQUID BULK: Above budget. All liquid bulk commodities exceeded target. SBM (Single Buoy Mooring), petroleum and chemicals achieved 19%, 23% and 45% respectively. This is also due to three SBM vessels calling with large parcel size. Chemicals were also above budget due to four vessels handled.    source: TNPA

SHIP MOVEMENTS

Follow all ship arrivals and departure schedules at the Port of Durban and other South African and regional ports at www.africaports.co.za/ship-movements/

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WHARF TALK: Ultramax bulker named HAMBURG EAGLE

Story by Jay Gates
Pictures by ‘Dockrat’

China’s ever growing shipbuilding industry has spawned some building design programmes that are now challenging the Japanese shipbuilders, whose ship design pedigree was, up to now, unassailable. In China, the Shanghai Merchant Ship Design and Research Institute (SDARI), in conjunction with a number of state owned shipyards, now have a design of ‘off the shelf’ bulk carrier that has now overtaken what was the most popular bulk carrier design, one previously designed and built in Japan.

On 29 June at 18h00 the Ultramax bulk carrier HAMBURG EAGLE (IMO 9698587) arrived at the Table Bay anchorage from Durban, where she had part discharged her cargo, and remained at anchor until the following morning when, on 30 June 30 at 12h00 she entered Cape Town harbour and proceeded to B berth in the Duncan Dock to discharge the reminder of her fertiliser cargo from the Far East.

On completion of the discharge of her cargo, Hamburg Eagle sailed from Cape Town on 6 July at 17h00, in ballast, and bound for Port Elizabeth. She arrived in Algoa Bay early in the morning of 8 July and went alongside berth 13 at the Manganese Ore terminal in Port Elizabeth harbour at 08h00 that morning to start loading her next cargo for export from South Africa.

Despite the decision taken by Transnet to transfer all manganese ore exports to Ngqura in the near future, and shut down the Manganese Terminal at Port Elizabeth, it currently has the capacity to export 6 million tons of ore per annum. Manganese ore has been exported successfully through Port Elizabeth since 1976, with the bulk ore brought to the harbour by rail, mainly from four mines located close to Hotazel in the Northern Cape. The majority of the manganese ore is exported to India and China.

Built in 2014 by the Chengxi Shipyard at Jiangyin in China, Hamburg Eagle is 200 metres in length with a deadweight of 63,334 tons. She is powered by a single Hudong MAN-B&W 5S60ME-C8.2 5 cylinder 2 stroke main engine providing 15,958 bhp (11,900 kW), to drive a fixed pitch propeller and giving a service speed of 14 knots.

The design of Hamburg Eagle is that of a SDARI Dolphin 64 Ultramax. This design has become one of the most successful in the bulk carrier world with over 350 of the type being built in various shipyards across China since 2012. Together with her smaller sister, the SDARI Dolphin 57 Supramax, with over 400 of this type being built since 2005, the Supramax/Ultramax class of vessel falls into the size of bulk carrier that is the most utilised in all worldwide bulk trades.

All facets of her operation are contained within the group of her owners, Eagle Bulk Shipping of Stamford, Connecticut, in the USA, as Hamburg Eagle is operated by Eaglebulk Ultraco and managed by Eagle Shipmanagement, both of Stamford. Eagle Bulk Shipping operates a growing fleet of SDARI Dolphin 64 bulk carriers, and Hamburg Eagle was purchased by them in 2018 for US$21.3 million (ZAR305.1 million), and is one of 14 SDARI Dolphin 64 sisterships, one of which is named Cape Town Eagle.

In January 2015, when operating under her previous owners, Hamburg Eagle was involved in a reportable accident in Whyalla, South Australia. A stevedore was seriously injured, sustaining a broken pelvis, when he was struck by an elevated work platform that was being moved between holds during onloading operations at the port.

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Hapag-Lloyd acquires Africa carrier NileDutch

* Deal approved by worldwide antitrust authorities and completed between the parties

* Acquisition supports Hapag-Lloyd’s strategy to grow in Africa

On 9 July Hapag-Lloyd announced that it had successfully closed the acquisition of the Dutch container shipping company Nile Dutch Investments B.V. (NileDutch). We at Africa Ports & Ships reported this proposed acquisition with an article on 14 March.

After signing a sales and purchase agreement in March, Hapag-Lloyd has now formally acquired all shares of the company after all responsible antitrust authorities had approved the transaction.

Rolf Habben Jansen, CEO of Hapag-Lloyd explained: “We are very excited about closing the deal and look forward to working with our new colleagues to unlock the enormous potential that Africa has to offer.

“With the people from NileDutch joining our company, Hapag-Lloyd is noticeably increasing the number of employees on the ground in Africa. We are happy and excited to welcome NileDutch’s roughly 320 employees to the Hapag-Lloyd family.”

Business continuity

It is understood that depending on market conditions, Hapag-Lloyd and NileDutch are aiming to integrate major parts of their businesses already in the later part of 2021 to be able to offer the full benefits of the combined network to their customers as soon as possible.

Furthermore, immediate contacts at Hapag-Lloyd and NileDutch will remain the same – and existing contracts will be honoured. The Company will inform about any changes in due time.

Shippers wishing to learn more about opportunities in Africa or have any questions about the ongoing integration are invited to contact by e-mail: abetterconnected@hlag.com

A major player in West Africa trade

With 40 years of experience in the market, NileDutch is one of the leading shipping companies along the West African coast.

Headquartered in Rotterdam, NileDutch is present in 85 locations across the world and has 16 offices in the Netherlands, Belgium, France, Singapore, China, Angola, Congo and Cameroon.

The company also brings with it seven liner services, around 35,000 TEU of transport capacity, and a container fleet with a capacity of around 80,000 TEU.

It was reported with this announcement that the integration will be moving at a swift pace and full commercial integration is expected to be completed by the end of 2021.

Hapag-Lloyd

With a fleet of 241 modern container ships and a total transport capacity of 1.7 million TEU, Hapag-Lloyd is one of the world’s leading liner shipping companies. The Company has around 13,300 employees and 395 offices in 131 countries.

It has a container capacity of approximately 2.8 million TEU – including one of the largest and most modern fleets of reefer containers. A total of 121 liner services worldwide ensure fast and reliable connections between more than 600 ports on all the continents.

Hapag-Lloyd is one of the leading operators in the Transatlantic, Middle East, Latin America and Intra-America trade.

 

Reported by Paul Ridgway
London

 

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Nigeria releases Swiss ship after three years under detention

A tanker named SAN PADRE PIO (IMO 9610339) has been released after more than three years of detention by Nigeria after being seized for illegally transshipping oil to another vessel in the West African country’s waters.

The 7,617-dwt ship, which is registered in Switzerland, was released only after talks between senior officials of both governments.

Also placed under arrest were the 16 Ukrainian crew of the tanker.

Following the arrest Switzerland took the matter to the International Tribunal for the Law of the Sea (ITLOS) in Hamburg, Germany. The tanker meanwhile remained under Nigerian custody along with the crew.

High level talks between Switzerland and Nigeria were later held, leading to the signing of a Memorandum of Understanding (MoU) between the two nations and the ship’s release earlier this month at a ceremony in the oil and gas exploration port of Onne-Eleme.

Francis Oni from the Nigerian Ministry of Justice said during the ceremony that the Swiss Government would be withdrawing its suit from the international tribunal, while the tanker would be allowed to depart from Nigerian maritime waters.

According to Nigerian claims made shortly after the ship was arrested in 2018, the fuel from the San Padre Pio was sub-standard and was characteristic of stolen Nigerian crude oil that has been clandestinely refined.

The International Tribunal for the Law of the Sea in Hamburg made a provisional ruling in 2019 requesting Switzerland to issue in favour of Nigeria, a bond of 14 million US Dollars and to enter into an undertaking to produce the suspects in the case whenever their presence was required by the court.

It also ordered the release of the crew, which was finally adhered to by Nigeria after a court found them not guilty and acquitted them of all charges. The ship’s officers then remained in custody although Nigeria says they chose to remain to help maintain the vessel.

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(UK) MAIB drowning prevention

Here is a salutary lesson to all who go take to the water be it for business as seafarers and fishermen, port workers and others and also the leisure yachtsman, in fact it is for the benefit of all who go afloat.

On 6 July in the UK an Inspector of Marine Accidents, Jack Martin, shared his recent experience of a man overboard exercise organised by the RNLI and funded by Trinity House and Seafish.

Over the past six months the MAIB has launched investigations into a number of fatal accidents on board fishing vessels. The Branch identified various recurrent themes but man overboard retrieval remains a persistent, and deadly, issue.

Tragically in February a fisherman lost his life off the Shetlands when he fell overboard and his crew couldn’t recover him, even though at one point he had two hands on the vessel’s recessed ladder.

In June Jack Martin took part in a man overboard experience exercise held for the fishing community. Organised by the RNLI with funding from Trinity House and Seafish, the aim was to give fishermen the opportunity to gain an understanding of what fishermen falling overboard would experience.

Here is what he said about the training:

“We were joined by a group of fishers from the east coast fleet who were all working on board 8m or 9m crab and lobster potters that launch from beaches. The morning involved some honest conversations about lifejacket use and their experiences of accidents. It was fascinating to hear the perceived issues with wearing lifejackets while working on their boats. Once Frankie Horne, our trainer, had shown them the statistics around man overboard incidents and the effects of cold water immersion, some of the reasons given for not wearing lifejackets (like comfort and convenience) seemed trivial, and the fishers fully admitted that.

“In the afternoon the real learning started! The fishers got changed into the clothes they would normally wear out at sea. We then added a set of overalls and then oil skins and shoes or boots. The first task was to jump into the wave pool and tread water for as long as we could. Then we went back in with an auto inflate lifejacket with 150N of buoyancy to compare the experience. With the lifejackets on we then had the chance to try out some different types of recovery equipment.

What did you experience in the tank?

“I’ve always thought I was a decent swimmer but what was immediately noticeable was the weight of the oil skins. Although working hard, I felt OK for the first couple of minutes, chatting with the lifeguard and keeping a rhythm with the up and down of the waves, but that changed very quickly. As soon as the first significant splash of water went over my face, I started to go downhill rapidly. Every time I tried to calm myself down and get my breathing under control, another wave would hit, and I felt more and more desperate for a decent breath of air. Any rhythm I had with the waves disappeared which then compounded the issue as it seemed every wave was now breaking over my head.

“The reality dawned on me; I was drowning. I signalled to the lifeguard who rescued me, and when I finally got out of the pool I was completely exhausted. I had been in the wave pool just 5½ minutes.

“When in the pool with the lifejacket on and inflated, I was so much more comfortable. Although I still got the occasional splash over the face, I could float calmly and preserve my energy. What was very noticeable was the difference in comfort and how high my head was above the water when my crotch strap was tightened properly.

What made it so challenging to keep going?

“The weight of the oil skins was like having an anchor tied around my waist. I was also very aware that I was in a heated swimming pool with a lifeguard less than 1 m away at all times, so I tried to imagine myself in freezing water, alone and with no way to raise an alarm. It was genuinely terrifying.”

What was the key piece of safety learning you came away with?

“It’s really important to see man overboard recovery as a system of several parts. Start by trying to eliminate the risk of going overboard in the first place, of course. However, if someone is in the water you have to assume that, in most cases, they will be unable to help in their own rescue after around ten minutes due to the effects of immersion in cold water. A lifejacket will give time to affect a rescue but only if there is a well-considered recovery system in place which is ready to use. Being well drilled in the use of the recovery equipment is also critical to a successful rescue, as is the ability to raise an alarm, like the use of a personal locater beacon, especially on single-handed vessels.”

What advice would you give to someone who finds himself or a colleague in a similar situation in real life?

“Don’t be in that situation!

“Even in a heated pool, without a lifejacket the danger of drowning was very real when fully clothed and with a 1 m wave state. When you consider the temperature of the waters around the UK and Ireland, a properly worn lifejacket could make the difference between going home to your family that evening or dying, and I think that’s the real point.

“Wear the lifejacket for your crew… to give them time to rescue their mate and not have to watch you die unnecessarily. Wear it for your family, who want you back safe and sound.

“Don’t be selfish, wear your lifejacket.”

There is a YouTube video showing Jack’s experience in the tank 



 

 

Reported by Paul Ridgway
London

 

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Rates increase, but no relief yet in sight – Xeneta

Long-term contracted ocean freight rates continued their ascent through June, although not with the dizzying trajectory witnessed in recent months.

May’s 9% surge in prices eased back to a 2.3% gain in June. However, the latest figures, detailed in Xeneta’s Long-Term XSI® Public Indices, mean rates now stand a staggering 39.2% up year-on-year (having risen 37.7% in 2021 alone). Furthermore, notes Oslo-based Xeneta, there appears to be little relief on the horizon for a financially battered shipper community.

Astronomical gains

Xeneta sources real-time rates data from global shippers and freight forwarders to paint a detailed analytical picture of the latest market developments. Insights from the team show a year that, so far, is like no other, with historical high rates built on a platform of strong demand, a lack of equipment and capacity, port congestion, and individual carrier firms and alliances that, it appears, are very much in the driving seat.

“It can almost be difficult to keep a sense of perspective here,” comments Xeneta CEO Patrik Berglund. “Seen in the context of 2021, a 2.3% gain appears only moderate, but in any other month, in any other year, this is a very strong performance for the carriers.

“We have witnessed truly astronomical increases, due to a very complex combination of factors – from the way coronavirus has both disrupted supply and driven demand, through to unforeseen events, such as the blockage of the Suez Canal. And all the time the carriers have managed routes and capacity to maintain a position of unparalleled strength in negotiations. It is, without doubt, a difficult time to be a shipper.”

Widespread impact

And, he notes, there’s little relief in sight. Carriers are making bold moves to increase their fleets, but, for the most part, these are long-term decisions rather than short-term capacity injections. For example, HMM has just announced the ordering of twelve 13,000 TEU vessels, for $1.57bn, which will take the capacity of the Korean line past 1m slots, while Hapag-Lloyd has ordered six 23,500 TEU ships, with delivery expected from 2024.

In the meantime, the supply chain is buckling under the pressure. As Berglund explains: “Ports in the US are facing new levels of congestion, causing huge delays in shipments and inventory shortages for retailers. In fact, a recent survey by the National Retail Federation (NRF) found that 97% of members had been impacted by port and shipping delays, while President Biden has announced the creation of a Supply Chain Disruptions Task Force. And, looking further afield, let’s not forget Yantian and Shenzhen, which were hit by COVID a couple of weeks ago making it even more difficult to balance supply and demand.”

Tough market

“Of course, in a connected industry the ripple-effects of disruption are everywhere. In Europe, we hear of vessels from Asia being delayed by up to three weeks, while some carriers are now omitting selected port calls all together, much to the chagrin of shippers. 2M recently announced it would not be stopping at Rotterdam on its Asia-North Europe loops for the next seven weeks, with THE Alliance following suit. Maersk and MSC, meanwhile, are skipping Hamburg on their AE7/Condor loop for another four weeks due to ongoing congestion.

“So, shippers are left with the unpalatable – some would argue unsustainable – combination of deteriorating reliability and climbing spot and contract rates. It’s exceptionally tough for shippers to navigate the market right now, as the delta between short and contract rates continues to grow. Carriers unquestionably have the upper hand and are in a strong position to exploit the budgets of big volume shippers.

“We should all brace ourselves for the carriers’ and forwarders’ Q2 financials. It will be a joyful moment for the sellers, but painful for the rest of the market. However, it’s universally positive that it gives the seller community an opportunity to invest those gains in more sustainable, eco-friendly infrastructure. We hope they seize it.”

 

Regional analysis

The XSI® intelligence, gleaned from over 280 million data points, with more than 160,000 port-to-port pairings, demonstrates a month of overall rates increases, with one or two regional exceptions.

In Europe, imports on the XSI ® declined for the first time in seven months, with a 4.2% fall. However, the index remains a breathtaking 48.1% up year-on-year. Exports rose 1.9% and stand 18.1% higher than June 2020. The Far East import benchmark climbed by 1.5%, up 27.3% year-on-year, with exports also gaining, edging up a further 2% to an astonishing 67.8% above this time last year. It was a tale of two indices in the US, with imports surging 9.3% in June (36.9% up year-on-year), while exports fell 2%. This is the only index down against June 2020, with a drop of 2.1% (although it has risen 6.6% in 2021 so far).

A question of control

“It’ll be fascinating to see what comes next,” concludes Berglund. “The key question is how do shippers try and regain a sense of control? We’ve already seen the arrival of CULines, supported by purchasing association XSTAFF, as an alternative solution, and June saw the news that Home Depot in the US was making the audacious move of chartering its own vessel to secure a more stable, predictable supply chain. Not everyone is in a position to do this, of course, but it’s a very interesting development as shippers desperately seek some short-term relief.

“The XSI® will keep us informed of whether it’s possible to achieve that in the months to come; helping steer negotiations and allowing users to get optimal value for their businesses.”

To get the full XSI® Public Indices report for the long-term market, please CLICK HERE

To see daily XSI® short-term market rate movements for 12 main trade lanes, please CLICK HERE

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Togo court sentences nine pirates to long terms in jail

On 11 May 2019 during the hours of darkness the small chemical and oil products tanker G-DONA 1 (IMO 8619285) was attacked by a group of pirates while at anchor in Togo waters in the Gulf of Guinea.

The 1433-dwt tanker was in the Lomé anchorage when the pirates approached in a small boat and boarded the tanker. Seizing control of the ship the master and crew were forced to raise anchor and sail away, while the pirates began searching the ship for valuables to steal.

Authorities ashore were alerted by the tanker’s erratic behaviour and after contacting the vessel’s owners, discovered the G Dona 1 had been highjacked. The Togo Navy then dispatched two patrol boats to intercept and board the tanker, which was successfully carried out with ten pirates discovered on board being arrested and detained. No crew were injured during the proceedings.

Last week the pirates appeared in a Lomé court where they were found guilty of piracy and sentenced to jail terms of between 12 and 20 years.

One of the pirates was a Ghanaian who was on the run from an international arrest warrant. He received a sentence of 20 years in prison. Two were Togolese nationals of whom one was acquitted and released, and the other seven were Nigerians, who together with the remaining Togolese received sentences of between 12 and 15 years.

In a statement after the trial the prosecutor told reporters that people should understand that piracy and armed robbery at sea would be uncompromisingly punished.

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Seafarers’ union welcome Ever Given release

On 7 July seafarers’ unions welcomed the release of the container ship EVER GIVEN (IMO 9811000) from detention in the Suez Canal by Egyptian authorities, but warned that more must be done to safeguard seafarers’ rights and welfare during the pandemic.

In the words of ITF* General Secretary Stephen Cotton: “We welcome the release of the Ever Given from detention by Egyptian authorities. It will be an enormous relief for the crew on board and their families. But while we celebrate this outcome, our attention is still on the 200,000 seafarers trapped working on vessels unable to go home due to the worsening crew change crisis.”

* ITF – International Transport Federation

“Thankfully the crew of the Ever Given have been well-cared for and well-represented by their unions – the National Union of Seafarers of India, and the Maritime Union of India – who have worked closely with the ship owner and ship manager to support the crew during this trying time.’

“From the moment that the Ever Given ran into trouble in the Suez Canal, the crew’s unions have been by their side. The crew have been furnished with supplies, support, and had their unions standing up for them nationally and internationally.”

In conclusion Cotton said: “By being unionised the crew have been supplied with provisions, legal representation, crew change opportunities, and counselling support for them and their families. If this hadn’t been a case of a ship with a union agreement, we could have seen a very different outcome.”

Seafarers ‘human pawns’ in money dispute

National Union of Seafarers of India (NUSI) General Secretary-cum-Treasurer Abdulgani Y Serang said it was important that no charges or negative findings about the crew’s professionalism, but expressed disappointment that Egyptian authorities use of the crew as leverage in financial negotiations with the ship’s insurer.

He said: “We are pleased that this ordeal is finally over for the crew. Their professionalism has been confirmed by a lack of adverse findings. Like all seafarers, it is through their passion and commitment that they are able to rise to the challenge and make the sacrifices required to move the world.

“This has been a very stressful time for the crew and their families who have had to suffer the uncertainty of whether their loved ones would become criminalisation as human pawns in a wider game being played over compensation.

“Society needs to reflect on how so much attention was placed on the commercial aspects of this incident – on the possible impacts on prices and supply of consumer goods – and so little attention paid to the sacrifice, pain and uncertainty faced by the seafarers whose welfare ought to be at the centre of the Ever Given story.”

During the ship’s time at anchorage seafarers’ unions and employers were able to secure access to crew change for those on board so they could be replaced on the vessel at conclusion of their contracts, as per normal practice in the industry. Eight of the original crew signed off in that time, and seventeen of the original crew remain on board in line with their contracts.

Ever Given repeat ‘increasingly likely’ without restored rights

ITF Seafarers’ Section chair David Heindel said Ever Given was an important reminder about the fragility of the international shipping system, which carries 90% of world trade, and the people at the heart of it – the seafarers.

“I think I speak for all seafarers when I say it is a relief that the Ever Given crew are being released and allowed to continue their lives, but it shouldn’t have taken this long.

“It’s fortunate that the crew have had the strong backing of their ship owner, ship manager and of course their unions and the global ITF family, many seafarers aren’t that lucky.

“Bernhard Schulte Shipmanagement are one of the better companies in the industry and should be commended for their sustained advocacy for the crew. But so too should the crew, the tale of the Ever Given shows the value of workers standing together and being active in their unions.

“Right across the world right now, many seafarers are being unfairly criminalised with our rights and welfare undermined. The crew of the Ever Given avoided that fate by unions and employers working together in their best interest – but more must be done to safeguard this key workforce.

“Right now more than 200,000 seafarers rights are being disregarded by many of the world’s governments as the crew change crisis drags on. Most governments still have not restored the pre-pandemic exemptions from travel and border restrictions, and increasingly fatigued seafarers are languishing at sea working beyond their contracts with little hope of relief.

“Seafarers are being stretched to the limit because of the government-made crew change crisis. We still urgently need exemptions for seafarers from border restrictions, and still urgently need a global roll-out of life-saving Covid vaccines.

“Frankly speaking, if governments don’t take action to ease the mounting pressure on seafarers the risk of events like the Ever Given happening, or worse, will become more and more likely. As the Ever Given shows, it doesn’t take a lot to stop global trade.”

 

Reported by Paul Ridgway
London

 

Added 8 July 2021

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