Financial Security News

The Legal Committee of the IMO will meet for its 111th session at IMO Headquarters in London from April 22 to 26, 2024. The Committee deals with any legal matters within the scope of the IMO, including issues relating to liability and compensation, fair treatment of seafarers and the registration of ships. This meeting will discuss:1. Abandonment of seafarersSeafarer abandonment happens when shipowners fail to fulfil obligations to seafarers related to timely repatriation, payment of outstanding wages or salary…

The International Transport Workers’ Federation (ITF) said it has received many reports about withheld pay from individual seafarers working on eight Bahrain-registered vessels owned by Saudi Arabian company Hadi H Al Hamman Establishment. The company, which lists Saudi Aramco among its customers and was buying brand new ships as recently as 2018, has not paid seafarers for more than five months in some cases, the ITF said. One seafarer reported dangerously low levels of food…

A new touch-free payment platform for the maritime industry has been launched by Secure Seas.Secure Seas says its electronic payment platform is designed to provide financial security to seafarers by transferring their pay electronically, removing the antiquated and problematic system of cash distribution in U.S. dollars. This provides seafarers with basic facilities the rest of us take for granted: full access to their funds in their preferred currency, use of an International…

Since early Spring 2020, American consumers have received a practical education in supply chain operations. One lesson is that it takes more than simply going online and clicking a “Buy Now” button for goods to show-up on our front porches. While the networks and systems that deliver commodities from around the globe might have been stretched as a result of COVID-19 related impacts, the men and women who move the freight have worked selflessly and tirelessly to meet consumer and manufacturing demand.Early on in the response to COVID-19…

The master of Singapore-flagged APL England is facing charges in Australia after the vessel under his command lost dozens of containers overboard in rough seas off the coast of Sydney last week.The offences relate to pollution and/or damage of the marine environment as a result of poor cargo loading, the Australian Maritime Safety Authority (AMSA) said.The 5,510 TEU capacity APL England had been en route from Ningbo, China to Melbourne last Sunday when a temporary propulsion loss left the 277-meter vessel rolling in heavy seas…

Commissioner Louis E. Sola will lead a fact finding investigation and work with key industry stakeholders to identify commercial measures passenger cruise lines can adopt to mitigate COVID-19 related impacts to this sector of the maritime industry.The Federal Maritime Commission designated Commissioner Sola to serve as the Fact Finding Officer for Fact Finding 30, “COVID-19 Impact on Cruise Industry” in an order issued today.In the course of his investigation, Commissioner Sola…

Responding to changing regulations the International Chamber of Shipping (ICS) has launched of the third edition of its essential Guidelines on the Application of the ILO Maritime Labor Convention, the only fully up to date guide to the Maritime Labor Convention (MLC) for all involved with the employment of seafarers.Focused on today’s MLC, the publication covers all amendments made to the Convention since it entered into force in 2013. It also contains practical advice, information and key learnings from industry bodies at the heart of the shipping community.Natalie Shaw…

The Maritime and Port Authority of Singapore (MPA) continues to prepare the Port of Singapore and Singapore-registered ships for the International Maritime Organization’s (IMO) 0.5 per cent fuel global limit for sulphur in fuel oil used on board ships, which will take effect from 1 January 2020.In his opening address at the Singapore Registry of Ships (SRS) Forum, Chief Executive of MPA,  Andrew Tan, also announced initiatives by MPA to improve the delivery of its services.To prepare for the IMO 2020 0.5 per cent global emission limit for sulphur, MPA and the Singapore Shipping Association released two technical guidance booklets for…

For the past few years, depressed commodity prices, stricter regulatory requirements and competition from onshore development at home and from other countries offering attractive offshore lease and royalty terms have had severe impacts on new exploration in the U.S. Gulf of Mexico. Thankfully, the tide appears to finally be turning.In August, Gulf of Mexico Lease Sale 251 drew increased competition for offerings and $178 million in high bids, $53 million more than previous sale held in March.

Longitude Engineering reportedly has developed a cost effective decommissioning barge concept for the removal of small oil and gas platforms for the PTT Exploration and Production (PTTEP), a subsidiary of the Thai state owned oil company. The aim was to develop a viable and cost-effective alternative to conventional ‘reverse installation’ through the use of heavy lift crane barges for the removal of the topsides and jackets. The focus being the removal of 90-100 of PTTEP’s minimum facilities platform assets in the Gulf of Thailand…

European shipowners and European transport workers speak together to warmly welcome today’s adoption of a Council Directive improving seafarers’ working conditions. This change will implement an agreement between the European Community Shipowners’ Associations (ECSA) and the European Transport Workers’ Federation (ETF), which will bring European rules up-to-date with international best practice. The new rules oblige shipowners to provide financial security protecting seafarers against the consequences of abandonment in an overseas port. In addition, this agreement ensures the payment of contractual compensation in the event of the death or long-term disability of a seafarer resulting from an occupational injury, illness or hazard.

The European Maritime Social Partners (EMSP) warmly welcome the European Commission’s adoption of their proposal to update their Agreement on the International Labour Organisation (ILO) Maritime Labour Convention, 2006 (MLC). The ILO MLC amendments entered into force on 18 January 2017 and require shipowners to provide financial security to ensure the repatriation of seafarers and the payment of contractual claims from seafarers or their dependants in respect of death in service or long-term disability. The MLC 2006 sets minimum requirements to improve seafarers’ working and living conditions including recruitment and placement practices…

International Maritime Organization (IMO)'s Legal Committee is expected to consider adopting a resolution to encourage the ratification and implementation of the 2010 HNS Convention, when it meets for its 104th session (26-28 April). Norway recently became the first country to become a Contracting State to this key compensation treaty covering the transport of hazardous and noxious substances (HNS) by ship. Also up for consideration is a draft Assembly resolution to allow for the delegation of authority to issue insurance certificates under the CLC and the HNS Convention. The Committee is also expected to confirm the addition of mandatory insurance certificates into the consolidated draft list of certificates and documents required to be carried on board ships, 2017.

The issue of protecting captive seafarers' wages is on the agenda at an International Labour Organization (ILO) meeting in Geneva, Switzerland (3-5 April). IMO has taken part in the ILO Working Group of the Special Tripartite Committee, established under the Maritime Labour Convention (MLC) – the international treaty covering minimum working and living standards for seafarers. The Group is considering proposals on the protection of a seafarer's wages when the seafarer is held captive, on or off the ship, as a result of acts such as piracy or armed robbery against ships. These proposals include an amendment to the MLC Code. Speaking at the meeting…

International Maritime Organization (IMO) Secretary-General Kitack Lim has welcomed the entry into force today (18 January) of new obligations under the Maritime Labour Convention (MLC 2006) which require shipowners to have compulsory insurance to cover abandonment of seafarers, as well as claims for death or long-term disability of seafarers. The 2014 amendments to the MLC 2006, which comes under the auspices of the International Labour Organization (ILO), are based on guidelines which were developed by a joint IMO/ILO working group, which reported to both IMO's Legal Committee and ILO's governing bodies. "These amendments, which will provide better protection for seafarers and their families…

2015 saw further growth in total Group entered tonnage, which increased from 1,047 billion GT as at August 2014 to 1,088 billion GT as at August 2015, says annual review of International Group P&I Clubs (IGP&I) published by Gard on July 14, 2016. The global order book has fallen 12% by vessel numbers and 8% by GT since the beginning of 2016. World fleet growth over the past year has remained broadly static and, according to Clarksons in 2015, it was just under 4%, down from the highs of between 7% and 9% annual growth in the 2000s. In addition, new building deliveries over the past year show a marked reduction in all vessel sectors. After a significant decline in demolition activity in the second half of 2015, scrapping has now resumed to around same levels as it was a year ago.

Neil Roberts, Manager, Marine and Aviation, Lloyd’s Market Association (LMA), United Kingdom, and International Union of Marine Insurance (IUMI) Ocean Hull Committee Secretary and Political Forum Liaison discuses  about the position paper published by IUMI. The paper is published in response to the recent Commission report on liability, compensation and financial security for offshore oil and gas operations, which raised some questions in relation to the implementation of the Offshore Safety Directive. Whilst the report acknowledged that there has been no serious oil pollution incident due to offshore activity in the EU since 1988, it…

Whether driven by treasure hunting or environmental protection, the days of forgotten wrecks, even at great depths, is past. It seems like every month we see reports of long-lost maritime wrecks being discovered on the ocean bottom and treasures being salvaged from great depths. We also hear regularly of oil being recovered from sunken wrecks. There is now no practical limit to the ability to recover objects from the sea floor, regardless of depth, currents, weather, or other obstacles. The only existing obstacle seems to be financing - and costs are decreasing regularly.

“ABS is first and foremost a safety company,” says Richard Korpus, “but safety can arise on many different fronts. Dr. Korpus is Chief Scientist, Computational Fluid Dynamics (CFD) for the American Bureau of Shipping. In this role Korpus supports the Chief Technology Officer (CTO) and underlying organizations through a focus on developing and applying CFD technology. He believes CFD has the potential to change how some of the most challenging problems in marine and offshore classification are solved in the future.

The Nairobi International Convention on the Removal of Wrecks enters into force on Tuesday, April 14, 2015. The Convention places strict liability on owners for locating, marking and removing wrecks deemed to be a hazard and makes State certification of insurance, or other form of financial security for such liability, compulsory for ships of 300 gt and above. It also provides States Parties with a right of direct action against insurers. The Convention fills a gap in the existing…

Lake Lotawana Association celebrated the launch of its new 2015 Model 7012 HP Versi-Dredge at Buffalo Cove on May 1, 2015. In attendance was Dave Wagner, Dredge Committee Chairperson, outgoing Mayor, David Welsh and Ward III Alderman, David Tillema as well as IMS President, Jim Horton, IMS Vice President, Ryan Horton, and IMS Technical Sales Manager, Michael Young. Lake Lotawana was constructed in 1927-1928 and incorporated as a city in 1958. The lake is 450 acres of surface water with 27 miles of shoreline and has more than 2…

SeaDek Marine Products, a producer of marine non-skid products, has become an employee-owned company. The company’s principal owners Kurt Wilson, Jim Wilson, Jason Gardner and Chuck Yates have extended ownership to more than 70 full-time staff members through the implementation of an Employee Stock Ownership Plan (ESOP). In addition to helping create financial security for employees, the plan is designed to encourage and reward increased employee productivity and efficiency. According to the Menke Group, who assisted with the ESOP implementation, a five or 10 percent increase in individual employee productivity can result in increasing company profitability by 50 percent or more.

The Liberian Registry has launched a new service enabling shipowners and managers to apply online for certification under the major international liability conventions. Earlier this year, Liberia launched an online certification facility on its secure eMaritime website to expedite shipowners’ compliance with the requirements of the Nairobi International Convention on the Removal of Wrecks 2007 (WRC). Following the success of that initiative, the registry decided to further enhance…