Global daily news 07.08.2011
***The wreck at Sheffield Beach is the Evrenye 1 'scuttled' in Nigeria l The Phoenix was scrapped in India - it was a longer vessel
agiza hlongwane
7 August 2011

 

It's a scam: the tanker beached at Sheffield Beach is not the Phoenix. Instead it is the Concel Pride, a ship that was deliberately run aground as part of an elaborate insurance rip-off aimed at netting millions of rands for the mystery owners.

That's the story that the Durban shipping community was awash with this week.

It is claimed that Concel Pride, alternatively named Evrenye 1, was purposely dashed on the rocks.

The Phoenix was a longer vessel that was actually scrapped in India last year.

Now the SA Maritime Safety Authority (Samsa) is embroiled in a legal battle to recoup the costs of the salvage operation, believed to have run into millions.

No one has claimed ownership of the vessel, which ran aground near Ballito last week, after initially experiencing engine trouble earlier in July.

Now Samsa and several maritime experts have questioned the circumstances under which the ship ran aground, alluding to a series of events that occurred in the immediate run-up to the ship's grounding, including that:

l The salvage ship, the Smit Amandla, fired eight rocket lines to the vessel while trying to reconnect as it slid off - but six of these lines have been found on board the Phoenix.

l The "Phoenix" reported on two occasions that the messenger rope "slipped off" the drum end of the winch - several maritime experts could not recall this happening in previous operations.

l The master of the Smit Amandla had to instruct the master of the "Phoenix" to extend the anchor cable when the vessel started dragging - standard procedure that even a junior officer should know.

Captain Nigel Campbell, manager of Samsa's southern region, said although no conclusive findings had been made, maritime history was riddled with scams in which ship owners colluded with unscrupulous insurance brokers to make fraudulent claims.

"It would not be the first time an unscrupulous ship owner was prepared to sacrifice a vessel in an attempt to realise the insured value.

"Nobody is going to admit to it, but in this case there's enough circumstantial evidence to suggest this might have happened. These things have happened, there's a history of them happening…"

International Transport Workers' Federation inspector Sprite Zungu disputed the claim of an insurance scam, saying he had been told by the captain that the ship was not covered by insurance.

"I fail to understand why someone would deliberately ground a ship when they have nothing to gain from it."

Samsa attorney Mark van Velden of Velden, Pike and Partners, said the identity of the owners of the ship was not yet known.

"Samsa had initially made contact with someone who claimed to be the manager of the ship, a person from Noha Maritime in India. But he went quiet a bit before the ship went aground," he said.

Van Velden said the ship had no traceable history and that registries did not provide any clues.

"It's an old ship that's in terrible condition and could well have been rotting off the coast of Nigeria.

"The Phoenix might not even be its name," he said.

Responding to claims that the Phoenix might have been deliberately run aground as part of an insurance scam, Van Velden said that while the circumstances surrounding the grounding had been suspicious, there was no specific evidence to prove the fraud claims.

"Samsa has said that there are indications that something is not quite right… that this might have been an insurance scam and it certainly does look suspicious, but there is no evidence to prove this."

There is also no evidence of an insurance claim having being made on the ship.

Campbell is quoted, in an e-mail forwarded to the Tribune, as saying: "The documentation in our possession indicates that the owners of the vessel are either A & L Shipping Inc of Panama or A & L Shipping of Belize.

"We have also been contacted by Lloyd's Casualty Intelligence of London as they can find no record of the Phoenix. However, a vessel of the same type, size and name was scrapped in India in November 2010."

Maritime expert and shipping journalist Terry Hutson said the ship might have come from Nigeria, where a lot of ships were abandoned off the coast.

Hutson said a Durban ship enthusiast, Trevor Jones, had driven up to Sheffield Beach and photographed the ship.

Among his findings (and corroborated by another ship enthusiast in Britain, Steven Smith), was that a name, Evrenye 1, had been painted out on the ship's side.

Smith said Evrenye 1 was the former name of a vessel that arrived in Algeciras, a port city south of Spain, on April 6, 2005 under a different name, the Concel Pride, but was subsequently abandoned.

Reference records further showed that the ship's name had been changed to Concel in August 2008, said Hutson.

Hutson said that photographic evidence from Jones and Smith strongly suggest the Phoenix is, indeed, the Concel Pride.

Jones and Smith said descriptions of the Phoenix were incorrect.

The ship beached in Durban is 134.55m long. The Phoenix they know to have been scrapped in India was 164m long.

They said the vessel wrecked at Sheffield resembles a ship built in Japan and which had been abandoned and since reported as sold. Concel Pride was abandoned in Algeciras, southern Spain.

It is 134.55m long.

Jones said, "It seems at some stage the vessel went to Nigeria and was disposed of by the ship owner whom, one would think, is associated with a scrap merchant.

"She was going from West Africa to India for breaking and had a series of unfortunate events. What I can't tell you is why the agents would want it either sunk or beached, unless the insurance value was higher than the scrap value."

Jones said it was unknown when or how the name Phoenix came about, but it was not unusual for ships to be renamed when going on their last voyage.

Hutson said he believed the ship was worth about R400 000 as scrap. However, it would fetch millions from an insurance claim.

"It's basically worth scrap value. I don't think the owners would ask for much for it." But he said R3 million or more from an insurance company was "a lot more attractive than R400 000 or R500 000 from a scrap metal dealer."

Jones said the possibility of an insurance scam was not far-fetched.

"A number of vessels, particularly on the South African coast, have foundered, often in quite good weather and in inexplicable circumstances."

For now, getting the vessel off the rocks of Sheffield Beach remains a priority.

Two potential buyers have lined up to purchase the vessel. One of the buyers has offered R2.9m, provided the ship can be refloated.

Van Velden said that with no owner coming forward, Samsa was entitled to any and all funds generated from the deal.

"They will grab anything they can get and anything that they do get will be swallowed up as part of the salvage costs."

Samsa reportedly spent an estimated R10m on the salvage operation.

 
 
 
 
FROM MARITIME GLOBAL NET, ALSO TANKER OPERATOR:
 
 
JOINT PRESS RELEASE: INTERNATIONAL BARGAINING FORUM REACHES THREE ***International Bargaining Forum Reaches Three Year AgreementGREEMENT  

 

The IBF (International Bargaining Forum), which comprises representatives of the ITF (International Transport Workers’ Federation), on behalf of seafarers, and the JNG (Joint Negotiating Group,) on behalf of employers, reached a final agreement during its negotiations, held in Miami on 27th and 28th July.

The conclusion, which has been hard fought by both sides, has resulted in a three year deal being applied to all IBF agreements with effect from 1 January 2012 and includes an incremental pay increase over the three year period. A 2% increase will be applied on 1 January 2012, a further 2.5% increase will be applied on 1 January 2013 and the final 3% increase will be applied on 1 January 2014.

Under the terms of a new methodology as agreed between the parties during 2010, the percentage increase will be applied to an element which includes both pay and union funding; however the specifics of the application of the increases between Officer and Rating categories and funding elements, will be decided at Local Negotiations between individual Union Affiliates and the Employers.

Further cost items agreed during the negotiations include the introduction of an incentive increase in ITF Welfare Fund rebates to the IBF of an additional 5%, on top of the current 5%, if the number of vessels being covered under IBF agreements increases year on year by 2%, 2% and 1% during the years 2012 to 2014 respectively.

As well as discussing cost issues, the parties to the IBF spent considerable time discussing specific amendments to the Articles of the IBF Collective Bargaining Agreement that included such items as changes to the period that is defined as probationary when a seafarer commences his or her first term of employment with a Company and references to the ILO Maritime Labour Convention (MLC).

The issue of piracy was debated at great length and a revised text was agreed on warlike operations / high risk areas. The issue of reviewing the extended area and compensation was held over for further dialogue in the near future.

In addition to the specific amendments to the articles of the Collective Bargaining Agreement, a revised Memorandum of Agreement was signed which contains additional agreements reached during the entire span of the IBF process that are open and currently relevant, with further items added during the 2011 negotiations. These additions include principles to assist Companies with the development of Disciplinary/Grievance Procedures and Bullying/Harassment Procedures and commitments to maintain future Officer supply through Cadet training and the provision of training berths on board IBF covered ships.

Speaking on conclusion of the IBF Negotiations, Dave Heindel, Chair of the ITF Seafarers’ Section, commented: “The last few years have put a great pressure on both sides of the IBF to be seen to be acting responsibly in support of both the Seafarers and those that employ them. The collapse in the world financial market has led to employers wanting to minimise their cost increases in difficult times; and has put pressure on those who represent the seafarers to understand this financial situation, whilst ensuring that they are protecting the interest and livelihoods of their members. The final agreement that we have reached has demonstrated the ability of the two sides to work together being both constructive and representative. This agreement bears testament to the strength of the IBF process and its ability to reach conclusions in difficult times, on difficult issues.”

Giles Heimann, Secretary General of IMEC and Joint Secretary of the JNG commented: “The final outcome reached by the IBF is both a pragmatic and mutually acceptable agreement for both sides. The IBF system has yet again demonstrated the ability of both sides of the table to work closely together in examining the core issues at hand; and through debate, negotiation, respect for each other’s opinions and understanding, a solution has been found, which allows us all to confirm that we have achieved a good result for our constituents.” Heimann continued by saying “Whilst of course, the specific outcome that will be focussed on is the pay increase, we should not forget that the IBF system of partnership focuses on many other issues - during these negotiations, a great deal has been achieved which supports the IBF process into the future, as well as agreeing to the pay settlement.”

 

 

FROM LLOYD'S LIST:

 

Nautilus warns over training scheme

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Further cuts to training could emerge, warns union.

SMarT scheme funding at risk

DEPARTMENT for Transport plans to review government spending on maritime training in the UK could be a prelude to further cuts, seafarer union Nautilus International has warned.

Shipping minister Mike Penning announced in December last year that the budget for Support for Maritime Training scheme, known as SMarT, has been pegged at £12m ($19.7m) in the current financial year.

While the government has pledged to continue to support those training for their first certificate of competency under so called SMarT 1 arrangements, it has decided to end funding for those training for their second CoC under SMarT 2.

However, the system is now to be reviewed by a panel made up of accountancy major Deloitte and forecasting consultancy Oxford Economics.

The terms of reference are to review Britain’s requirement for trained seafarers at sea and ashore for the next decade, the extent to which this needs to be met by British nationals, the effectiveness and efficiency of current arrangements and the case for government intervention, funding options, and whether previous targets still apply.

Nautilus general secretary Mark Dickinson argued: “The scope of this review is disturbing in the context of the current squeeze on public spending and we are concerned that the review could jeopardise the recovery in British seafarer training that has taken place over the past decade.

“Ministers must accept that a maritime nation needs maritime professionals, and there has been an alarming decline in the number of skilled and experienced UK seafarers over the past 25 years and there is a growing need to fill this gap.”

He pointed out that the maritime sector generates around £6bn a year for the economy and it is dependent upon a continued supply of skilled seafarers in a competitive international labour market in order to remain viable.

Mr Dickinson said that Nautilus would make representations to the review, on the basis that financial support for maritime training should not only be maintained but increased.

 

 

European ports face further crisis

Throughput at northern ports continues to slide

A LEADING port analyst has claimed that the Greek debt crisis could push Europe’s ports into a new predicament as growth rates at the continent’s northern ports continued to slide.

Hackett Associates’ monthly Port Tracker revealed that total container volumes handled by the ports of Le Havre , Zeebrugge , Antwerp , Rotterdam , Bremerhaven and Hamburg increased by 5.6% in May over April, and were up 9.2% year-on-year.

Despite the apparent growth, Ben Hackett sounded a pessimistic note: “We are seeing a slowdown in Asian exports with growth rates of 5%-6% or less being projected.”

European imports as a whole are projected to grow at 7% or less, with exports only marginally better at 8%. “This assumes no further repercussions from the Greek crisis.”

Mr Hackett added that the continuing uncertainty over European sovereign debt would have an immediate impact on consumer confidence and therefore port volumes.

“We are now faced with the spectre of Italy, Spain, Portugal and Ireland all having to adjust their fiscal policies and wondering whether the northern EU can afford to come to the rescue. As a result we face consumer uncertainty and reduced spending, as well as the possibility of a major financial recession where countries, not just their banks, default,” he said.

Mr Hackett said that this year resembled 2009, although he is still forecasting a 9.9% growth in inbound and outbound volumes, which would be a decline on the 12.6% growth seen in 2010.

One bright spot he noted was for Bremerhaven, which acts as the major transhipment gateway for Baltic and Russian cargo, and is expected to grow by 25% this year, earning itself a higher market share in the Hamburg-Le Havre range. Its volumes in May grew year-on-year by 30.4%, amounting to 561,000.