Bona News

A ship financier’s primary security is the mortgaged ship. If the ship becomes a total loss, the mortgage will provide no valuable security, leaving the financier to rely on its rights as assignee and loss payee (and occasionally as co-assured) under the shipowner’s marine insurance policies. However, the owner’s insurers may decline a claim, for example on grounds of breach of warranty or material non-disclosure, or because the loss is not covered by the policy, such as where the owner scuttles the mortgaged ship.

Alternatives to fossil fuels are emerging throughout the maritime universe, and vessels working in U.S. rivers, waterways and harbors are at the cusp on this trend. While the alternative fuels spectrum is wide, battery power and electrification—a technology that has seen a decade of shipboard applications already—is particularly suited for smaller vessels.Crowley Maritime Corp will be taking delivery of a completely electric tugboat, dubbed eWolf; the boat- which will include kit for advanced vessel control tied to an electric propulsion system from ABB…

Automation, where routine tasks are handled by machines, has been talked about throughout maritime sectors for much of the 21st Century. Initially touted by suppliers of engine room and bridge management systems for its cost savings (with reduced manning levels), its value proposition was then infused with risk management (reduced human error) and remote operations, where vessels could be managed from a shoreside control room. In early 2017, Rolls Royce —an early proponent of unmanned operations—teamed with tug operator Svitzer on a remotely operated vessel…

India's Minister of State for Shipping Pon Radhakrishnan in informed that the Ministry of Shipping has given relaxation to foreign vessels for carriage of fertilizer from one port to another port within the country under section 407 of the Merchant Shipping Act, 1958. The foreign flag ships are now not required to obtain a license from the Director General of Shipping for engaging in coastal trade for carriage of fertilizer by sea.The relaxation is subject to the condition that the information as per the format prescribed in the relaxation order is submitted to the Director General of Shipping by email at least 24 hours prior to sail of ship from a port in India.The relaxation shall also be subject to the condition that Indian law enforcement agencies…

Last September, an Administrative Law Judge (ALJ) unsettled much of the U.S. maritime industry when he dismissed with prejudice a U.S. Coast Guard (USCG) action to revoke a Merchant Mariner’s Credential (MMC) despite his finding that the mariner’s urine had tested positive for cocaine. The case is referred to as USCG v. Hopper, SR-2014-14. American Maritime Safety, Inc. (AMS) considered the Hopper outcome to be a bad decision, both because it imposes harsh evidentiary consequences…

Weego launched the compact and portable Jump Starter Battery+ for the marine market. Weego is pocket sized and capable of starting boats, cars, trucks, motorcycles, ATVs and more, as well as charging phones, tablets, speakers and other USB devices. Easy to use, each Weego model includes jumper cables that can be attached to the terminals of a dead battery. Easy to follow instructions are printed on the back for quick reference. To start, boaters simply connect the clamps to the battery terminals, connect the cable to the Jump Starter Battery+, turn the power on and start the engine.

Offshore exploration is a history of man v. Prospecting for oil is a dynamic art. From a lake in Ohio, to piers off the California coast in the early 1900s, to the salt marshes of Louisiana in the 1930s, to the first “out-of-sight- of-land” tower in 1947 in the Gulf of Mexico, the modern offshore petroleum industry has inched its way over the last roughly 75 years from 100 ft. of water ever farther into the briny deep, where the biggest platform today, Shell’s Perdido spar, sits in 8,000 ft. of water. As a planet, we have two unquenchable thirsts – for water and for oil.

Sustaining the ongoing boatbuilding boom can involve the lawful use of foreign finance streams. James Kearns takes a closer look at the practice. The citizenship requirements for vessels engaged in the U.S. coastwise trade are generally well-known. Such a vessel needs to be built in the United States; it must have a U.S. citizen crew or operator; and its ownership must meet specified U.S. citizenship requirements, depending on the form of legal entity owning the vessel (corporation, limited liability company, partnership, etc.).

International classification society Bureau Veritas has joined forces with French maritime security consultants Securymind to provide an auditing and verification service for companies providing armed guards to protect ships against piracy. Security companies offering services to shipping will be audited against the requirements set down by the “Scheme for Quality Management Systems of Private Maritime Security Companies” established by Bureau Veritas and Securymind. The scheme is based on IMO guidance set out in MSC1405 “Revised Interim Guidance To Shipowners…

Expanding the Suezmax fleet and greater involvement in carrying oil products are among the ambitions being pursued by theTeekay Tanker Services (TTS) business unit of Teekay. "At the same time, we're working to expand our strong Aframax position," said TTS Vice President Peder Farmen, who heads the product transport sector of TTS from the group's Norwegian office in Stavanger. Teekay's conventional shipping operations in Norway have further diversified the company's fleet, the majority of which is comprised of Aframax vessels. Since Teekay's acquisitions of Bona Shipholding in 1999, Ugland Nordic Shipping in 2001 and Navion in 2002, Teekay has established itself as a leading tanker operator in the North Sea and Atlantic, in addition to the Pacific.

The House-Senate Conference Committee on the Fiscal Year (FY) 2005 Coast Guard Authorization Act completed negotiations and approved a conference report on July 14. The measure was fast-tracked to the House and Senate floors for consideration and won quick passage before the chambers adjourned for an extended summer recess. The final bill accomplishes two top-priority AWO objectives. First, it contains language that closes the lease financing loophole of the Jones Act. Second, it contains language to bring towing vessels under Coast Guard inspection. Both of these items are on AWO’s 2004 list of Major Issue Priorities. Their enactment by the Congress is very meaningful to the long-term health and viability of the industry.

In 1988, Congress enacted the Abandoned Shipwreck Act (Pub. L. 100-298, 43 U.S.C. §§ 2101-2106), in an effort to give states more authority to protect the historical provenance of abandoned shipwrecks in state waters. It was one of the more controversial laws Congress passed that year because it pitted treasure salvors and divers, on the one hand, against states and historic preservationists on the other. In the end, the states won passage of the legislation, but some twelve years later, the question remains whether the Act has had the intended effect. Two significant decisions since 1988 have called into question the law's stated Congressional policy. First, a description of the Act itself.

Standard & Poor's revised its outlook on Teekay Shipping Corp. to positive from stable. The outlook revision reflects Teekay's consistent, solid performance, which has resulted in a gradually improving financial profile, and expectations for more predictable cash flow generation due to the purchase of contract-based shuttle tanker operator Ugland Nordic Shipping ASA. Teekay's rating reflects a favorable business position as the leading midsize ("Aframax") crude oil tanker operator in the Indo-Pacific Basin, expanded presences in the AtlanticAframax tanker market and the North Sea Shuttle tanker market, and fairly conservative financial policies. These factors are offset by significant, but carefully managed exposure to the volatile tanker spot markets.

By Jeffrey S. The maritime law community is awaiting the next pronouncement by the U.S. Supreme Court pertaining to the definition of a Jones Act seaman. In February, the high court announced that it would review the decision of the First Circuit Court of Appeals in Stewart v. Dutra Construction Co., Inc. The definition of seaman has proven to be a nagging problem; this will be the fifth time since 1991 that the Justices have tackled some aspect of the question. Most injured maritime workers would prefer to pursue recovery as a "seaman". There are several reasons for this. First and foremost, the damages recoverable under the Jones Act are not limited to lost wages and benefits, but also include an important component for "pain and suffering".

Events of the past two years — headlined by the Asian financial crisis, supported by falling oil demand and punctuated by OPEC's production cutbacks to buoy per barrel pricing — have conspired to throw and keep the tanker market into a historical abyss. In an industry renowned for its ups and downs, this was a “down” for the record books. Consequences of poor rates for the transport of oil products have and will be debated for years, but relying on the cliche “if it doesn't kill you, it will only make you stronger,” it would appear that the companies left standing — those not acquired, merged or simply shut down — should be poised to capitalize on favorable market conditions to come. None, though, is so well suited to prosper as Teekay Shipping.

Events of the past two years -- headlined by the Asian financial crisis, supported by falling oil demand and punctuated by OPEC's production cutbacks to buoy per barrel pricing -- have conspired to throw and keep the tanker market into a historical abyss. In an industry renowned for its ups and downs, this was a "down" for the record books. Consequences of poor rates for the transport of oil products have and will be debated for years, but relying on the cliché, "if it doesn't kill you, it will only make you stronger," it would appear that the companies left standing - those not acquired, merged or simply shut down - should be poised to capitalize on favorable market conditions to come. None, though, is so well suited to prosper as Teekay Shipping.

Share prices in Oslo rose in August for the sixth consecutive month, and can thus show for positive share price movements for seven out of eight months so far this year. While the All Share Index gained another 2.4 percent in August, the Shipping Index was a little behind with a 1.4 percent increase. Shipping and Offshore shares are up 43.2 percent for the year. The oil price continued to rise in August. For the first time since October 1997 North Sea oil for immediate delivery (Brent spot) was traded at more than USD 21 per barrel, doubling the oil price since January. Oil-related shares are obediently following the oil price with the value of offshore shares on the Main List rising 11 percent in August after the July rise of 20 percent. TGS Nopec (TGS), Det Søndenfjeldske (SFJ) and Fred.

Share prices in Oslo rose in August for the sixth consecutive month, and can thus show for positive share price movements for 7 out of 8 months so far this year. While the All Share Index gained another 2.4 percent in August, the Shipping Index was a little behind with a 1.4 percent increase. Shipping and Offshore shares are up 43.2 percent for the year. The oil price continued to rise in August. For the first time since October 1997 North Sea oil for immediate delivery (Brent spot) was traded at more than USD 21 per barrel, doubling the oil price since January. Oil-related shares are obediently following the oil price with the value of offshore shares on the Main List rising 11 percent in August after the July rise of 20 percent. TGS Nopec (TGS), Det Søndenfjeldske (SFJ) and Fred.

While Norway's Leif Hoegh reported a net loss for the first nine months of the year, it projects a break-even 1999. The firm reported a net loss of 37 million crowns against a 327 million profit in 1998. It said it had a pre-tax loss of 72 million crowns in January to September against a profit of 347 million in the same period of 1998. The company said that its results were depressed mainly by losses on the sale of shares in shipping firm Bona. Operating profits stayed in the black, declining to 264 million crowns from 491 million.

Teekey Shipping Corp. said its chairman, Axel Karlshoej, will resign from the board because of work demands at his company, Nordic Industries. Karlshoej will be replaced by C. Sean Day, a member of the board and consultant to the trust group that holds about 45 percent of Teekay’s shares. Teekay also said it expanded the board to nine members from eight, appointing Leif O. Hoegh to the ninth position in conjunction with Teekay’s acquisition of Bona Shipholding Ltd.

Teekay Shipping Corp. has completed its cash and stock acquisition of Bona Shipholding Ltd. Under the deal, Bona’s shares were converted into a right to receive either a cash payment of $7.00 for each Bona share or 0.485 of a Teekay share for each Bona share.