NEWS
FROM THE HANDY SHIPPING GUIDE (UK):
 
 
 
 
***Objections To Flags Of Convenience Increase After Deepwater Horizon Report

17 May 2011

 

WORLDWIDE – It is a regular occurrence for countries offering flags of convenience (FOC)to be roundly criticised, primarily in the case of bulk freight carriers and tankers which have the potential to cause devastation should anything untoward happen to them.

In the past week several prominent voices have been raised, particularly in the US, following the ever increasing levels of piracy, with some declaring they are fed up with policing the world’s oceans on behalf of mariners who travel under flags considered by many in the shipping industry as unable to manage their own tonnages properly or at the least indifferent to the fate of the ships for which, as tax earning states, they hold some responsibility.

Following the release of a US Coast Guard report on the Deepwater Horizon tragedy the association responsible for many of the world’s merchant sailor’s employment needs, the International Transport Workers Federation (ITF), has issued a statement supporting the Coast Guard’s stance and adding its weight to the piracy debate. The union association says:

“The ITF applauds the Coast Guard's focus on what happens when a flag state fails to oversee that its vessels comply with ISM and other international minimum standards. When rules and regulations are or become lax, conditions can deteriorate into confusion and chaos. This was seen aboard the Deepwater Horizon when it was off the Gulf Coast of the United States last year. It was not registered in the United States which has a rich maritime history, but instead with the Marshall Islands which lacks a strong regulatory regime.

“In addition, international maritime organizations such as the ITF see such dangerous examples daily off the coast of Somalia, the Gulf of Oman, where 40% of the world's oil supply originates, and in the Indian Ocean, as pirates count on such poor conditions to raid and capture under-crewed, under-prepared vessels and crews and poorly maintained vessels sailing under runaway flags. Piracy obviously pre-dates runaway-flag shipping, but the very same FOC system that arguably led to the Deepwater Horizon tragedy also is hampering international efforts to fight back against the modern version of at-sea terrorism. Without runaway flags, the vital task of ending piracy would be immeasurably easier as traditional maritime States would seek to protect their nation’s respective assets.”

There is nothing new in the arguments put forward by the IMF and others but the two differing scenarios, one a sudden and catastrophic loss, the other a slow but persistent and debilitating sickness, bring the inattention of states willing to profit from a cut price service into sharp focus.

 

 

FROM MARITIME CONNECTOR, ILMARE24ORE, ALLNEWS.COM, WORLDNEWS.COM ETC:

 

 

***ITF on US Coast Guard's Deepwater Horizon Report

18.05.2011 
“The US Coast Guard's recent report on the Deepwater Horizon tragedy reinforces the International Transport Workers' Federation's long-held position that so-called flag-of-convenience or runaway-flag vessels often facilitate and even encourage unsafe business practices.

The ITF recognizes that there are conscientious FOC operators and many have well trained crews (regardless of their nationality), but many FOC operators have no regard for the mariners, their competency and other victims who suffer as a result of the runaway-flag system. Putting swift profits ahead of safety, runaway-flag entities also risk catastrophic environmental damage like that which occurred last year when the rig exploded.

“The ITF applauds the Coast Guard's focus on what happens when a flag state fails to oversee that its vessels comply with ISM and other international minimum standards. When rules and regulations are or become lax, conditions can deteriorate into confusion and chaos. This was seen aboard the Deepwater Horizon when it was off the Gulf Coast of the United States last year. It was not registered in the United States we has a rich maritime history, but instead with the Marshall Islands which lacks a strong regulatory regime.

“In addition, international maritime organizations such as the ITF see such dangerous examples daily off the coast of Somalia, the Gulf of Oman where 40% of the world's oil supply originates and in the Indian Ocean, as pirates count on such poor conditions to raid and capture under-crewed, under-prepared vessels and crews and poorly maintained vessels sailing under runaway flags. Piracy obviously pre-dates runaway-flag shipping, but the very same FOC system that arguably led to the Deepwater Horizon tragedy also is hampering international efforts to fight back against the modern version of at-sea terrorism. Without runaway flags, the vital task of ending piracy would be immeasurably easier as traditional maritime States would seek to protect their nation’s respective assets.”
 
 
 
 
FROM ESMERK NORWEGIAN NEWS:
 
 
 
***Norway: Thy Ferries leaves Kristiansand after dispute
17 May 2011

Danish shipping company Thy Ferries has stopped all operations at Kristiansand port in Norway and sued the port, the International Transport Workers Federation (ITF) and local trade union 3F. ITF accused Thy Ferries of conducting ferry activities and not only freight transport from Kristiansand and therefore demanded a ferry contract for the employees, which Thy Ferries regarded as too costly. The vessel Viktoria that Thy Ferries used between Hanstholm and Kristiansand has 12 passenger seats; the definition of a ferry is that it has over 12 passenger seats while below 12 seats should be defined as a freight vessel.

 

 

FROM TRADEWINDS TODAY:

 

 

***Karlsen on the rocks

Canada-based cruiseship company Karlsen Shipping has been placed in receivership after running out of money.

 

The Norwegian-controlled Halifax owner had been unable to pay a $1.4m repair bill for its 5,000–passenger Polar Star (built 1969), which hit an uncharted rock in the Antarctic in January, prompting an evacuation of some of its passengers.

 

The vessel remains in Las Palmas, Spain, until its future is decided.

 

The receivership request from Toronto-Dominion Bank was granted by a Canadian judge on Tuesday

 

"A decision on the future of the ship will come after a receiver or equivalent authority is appointed in Spain," court-appointed receiver David Boyd, with PricewaterhouseCoopers, said after the hearing.

 

The bank has said Polar Star may become part of liquidation proceedings to pay off creditors.

 

Karlsen owes Toronto Dominion about $4.6m and another $750,000 is owed to Norway’s Sparebank 1.

 

The shipping company has other debts totalling $3.4m, according to court documents.

 

A representative of the International Transportation Workers’ Federation (ITF) attending the court proceeding said the ship’s captain and its mostly Ukrainian crew of about 45 remain stranded on the vessel.

 

"We are in the process of contacting authorities in Spain to help make sure the interests of the crew members are protected," said inspector Gerard Bradbury.

 

"They are owed about $250,000 in back pay," he added.

 

There were no paying passengers aboard Polar Star when it was sent to Spain for repairs.

 

California tour operator Ted Cheeseman, CEO and co-owner of Cheesemans’ Ecology Safaris, said he was meeting with the receiver and representatives of the bank in an effort to keep the vessel operating through the busy Antarctic and Arctic tour season.

 

He said Polar Star is worth more working than it is tied up in Spain and the loss of the vessel will significantly hurt his business.

 

"Polar Star is a converted icebreaker and ideal for touring these regions. It was also equipped with a forward-scanning sonar while it was in Spain so icebergs should not be a problem," said Cheeseman.