May Not

FMC: OTI may not use unlicensed, unbonded agents

The Federal Maritime Commission (FMC) issued an order stating that, under the Shipping Act of 1984 and its implementing regulations, a licensed ocean transportation intermediary (OTI) may not use unlicensed and unbonded agents to provide non-vessel-operating common carrier (NVOCC) and ocean freight forwarder services to the public. The OTI had petitioned for a declaratory order allowing such an exception, citing the evolving business conditions. The majority of the Commission denied the petition, noting that it is not aware of any legislative history or case law that would indicate the Congress intended to distinguish between persons would act as OTIs (and must be licensed and bonded) and persons who provide OTI services (and could avoid the license and bonding requirements). One Commissioner dissented, arguing that, at the very least, the FMC should examine the issue in greater depth and seek public comment. Docket No. 06-08 (HK Law).

EPA Issues Notice on Low-Sulfur Diesel Fuel

The Environmental Protection Agency (EPA) issued a notice stating that, effective June 1, refiners will begin producing low-sulfur diesel fuel for use in ships. Initially, the sulfur content may not exceed 500 parts per million (ppm). The eventual goal is a maximum sulfur content of 15 ppm. Source: HK Law

Trico Marine. Announces Pricing of New Senior Notes

Trico Marine Services, Inc. announced today the pricing of its previously announced private offering of $250.0 million aggregate principal amount of 8 7/8 % Senior Notes due 2012. The notes were priced at 99.196 to yield 9.0% Trico Marine expects to use the net proceeds of the offering of the senior notes due 2012 to purchase its existing 8 1/2% senior notes due 2005 pursuant to an outstanding offer to purchase such notes and to pay related fees and expenses.

Boat Race Victims Perhaps Not Seen

Newport Beach to Ensenada boat race entrant 'Aegean' destroyed, 4 dead, may not have been seen by larger vessel Coast Guard investigators working to determine what caused the destruction of the 37-foot sailboat off the Mexican coast, consider that there's a possibility that no eyewitnesses remain. All four crew members of the Aegean were killed. And based on the level of destruction — small pieces of the boat were found spread over a wide area — it may be no one aboard the

Tokyo MOU to establish Detention Review Panel

The Tokyo MOU (Memorandum of Understanding) on Port State Control issued a Notice stating that, effective 1 January 2005, it is establishing a Detention Review Panel. The purpose of the Panel is to review, at the request of a flag state or recognized organization, specific port state control inspections undertaken by Tokyo MOU members. If the views of the Panel support the flag state or the recognized organization, the port state will be requested to reconsider its decision

Intereuropa Shares Down Amid Merger Doubts

Slovenian shipping firm Intereuropa fell over four percent by midday trade on Wednesday amid fears that the government may not approve its proposed merger with port operator Luka Koper. At one point during the day, shares of Intereuropa were down 4.58 percent at 2,480 tolars ($13.03) on volume of 5,526 shares, although the company earlier in the morning reported a 24 percent in group nine-month net profit. Traders said there was no explanation for the drop other than the possibility that

Cleaner Maritime Air for North America Comes Soon

The North American Emission Control Area (ECA) under MARPOL Annex VI will become enforceable on 1 August 2012 On the operative day the sulfur content of the fuel oil used on board ships operating within the ECA may not exceed 1.00 percent m/m (10,000 ppm). Ships will be required to maintain and, if requested, make available to Port State Control authorities:     •    Bunker delivery notes (for vessels 400 gross tonnage and above)

USCG Issues Guidance For Vessel Boarding Safety

The U.S. Coast Guard has issued guidance to its personnel regarding vessel boarding safety when conducting boardings of large commercial vessels as part of the homeland security mission. The guidance cautions Coast Guard personnel about the need for safety briefings prior to any such boarding, the risks of explosive vapors, and the risks inherent in confined space entry. It notes that many Coast Guard personnel may not have received specific training concerning the risks related to this new

Hampton Roads – Security Zones

The U.S. Coast Guard has established security zones around passenger vessels and vessels carrying Certain Dangerous Cargo (CDC) while they are in the navigable waters of the Captain of the Port (COTP) Hampton Roads zone. When within 500 yards of such vessels, other vessels must operate at the minimum speed to navigate safely. Other vessels may not operate within 100 yards of such vessels. The rule comes into effect immediately. 69 Fed. Reg. 40768 (HK Law).

SS&Y Indices Drop Again

Shipbrokers Simpson, Spence and Young's Pacific Capesize Index fell 53 points to 5,284. "Owners have been keen to get their vessels fixed well before the office Christmas party to keep them trading over the festive period, which has been gratefully grasped by charterers who got the discounts they desired," SS&Y said. "This may not be the case in January when the balanced positional market will have little encouragement for owners to discount asking prices