Chembulk Tankers Issues USD 200mln Bond
Chembulk Tankers announced that one of its wholly owned subsidiaries, Chembulk Holding LLC, has priced USD 200 million in senior secured bonds which will carry a coupon of 8.00% and be due in February 2023. The net proceeds from the bond offering will be used for refinancing of existing bank debt and general corporate purposes. In addition, this bond offering contains a tap issuance feature, where Chembulk can expand the issue amount at a future date to a maximum of USD 250 million, subject to standard issuance tests.
USCG Issues Traffic Management Plan for NY/NJ
The U.S. Coast Guard has issued a revised Traffic Management Plan for the Port of New York and New Jersey Vessels may not approach within 150 yards of Liberty and Ellis Islands. Vessels may not approach within approximately 175 yards of the United Nations complex on the East River. Vessels are to remain at least 25 yards away from bridge piers and abutments, overhead power cables, and tunnel ventilators. Vessels and persons may not enter the waters in the immediate vicinity of Piers 84-96 in Manhattan. may not enter the waters within 300 yards of the Indian Point Nuclear Power Station. The requirement that deep draft vessels enter the port via Ambrose or Sandy Hook Channels has been eliminated. been clarified or amended.
Trump Administration's Infrastructure Plan Taking Shape
The Trump administration is finalizing its long-awaited infrastructure plan, which would push most of the financing of projects to private investment and state and local taxpayers, according to sources familiar with the proposal taking shape. President Donald Trump, who spoke frequently of improving U.S. infrastructure during his 2016 campaign, may preview the plan in his Jan. 30 State of the Union address, but details are not expected until afterward, the sources said. Two people…
Engineers Sentenced for Pollution
The US Department of Justice siad that two engineering officers have been sentenced after pleading guilty to presenting a falsified oil record book to the US Coast Guard. The chief engineer was sentenced to five months in prison and two months supervised release during which he may not serve as an engineering officer on a ship in US waters. The second engineer was sentenced to three years probation during which he may not serve as an engineering officer on a ship in US waters. Source: HK Law
Stolt-Nielsen Delays Bond Issue
Stolt-Nielsen S.A. has delayed its previously announced plan to issue a new five-year senior unsecured bond loan. The company said it intends to resume marketing efforts after the Norwegian Easter holidays and following the release of the company's first-quarter earnings. Commenting on a recent media report on the company's potential liabilities relating to the ongoing antitrust investigations and litigation, the company said that estimates published were not developed or authorized by SNSA. The company added that it has not provided any such analysis or quantification to the managers of the proposed bond loan, nor has it authorized anyone else to do so.
Coast Guard Issues Mississippi River Safety Advisory
The U.S. Coast Guard Captain of the Port (COTP), St. Louis, opened the Mississippi River to vessel traffic following the completion of dredging at mile marker 161.0, near the mouth of the Meramec River. The river had been closed to commercial vessel traffic since Dec. 14. However, low river levels have prompted the COTP St. Louis, and the COTP Paducah, Ky., to establish a joint Safety Advisory on the Upper Mississippi River between Cairo, Ill., (mile marker 0.0) and St. Louis (mile marker 184.0). Northbound tows entering the advisory area may not have more than 30 barges in their tow, of which only 15 may be loaded. Southbound tows are limited to no more than 20 barges. All barges within the advisory area may not draft more than 9 feet, except for those barges loaded prior to noon on Dec.
Parties May Not Create Maritime Lien by Agreement
The U.S. Court of Appeals for the Fourth Circuit ruled that parties may not create a maritime lien by agreement. In the instant case, a bunker company provided bunkers to a ship that was under time charter. The time charter provided that the charterer had no authority to create a lien against the vessel. The bunkers were supplied in South Africa and Brazil. The bunker contract provided that English law was controlling and the General Conditions Clause provided that the claim would constitute a lien against the vessel. The charterer went bankrupt. The bunker company brought suit against the ship in rem in a US port. The court held that the General Conditions clause of the contract could not be read to provide that US maritime lien law should be applied.
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).
Joint Statement By Keppel and SembCorp
The managements of Keppel Corporation and SembCorp Industries are holding discussions on the rationalization of the local shipyard industry and the possibility of other collaborations between the two groups.All discussions are at a preliminary stage and may or may not come to fruition. However, these discussions are being held with the understanding that all arrangements must make business sense and create value for shareholders.Shareholders of the two companies are therefore advised not to take any actions which may be prejudicial to their interests. Announcements will be issued publicly should there be any material developments.
White House: No Change in Crude Oil Exports Regulations
The White House said on Tuesday there has been no change in the U.S. ban on crude oil exports, responding to a question about whether an impending change might be behind price moves in oil markets. "There has been no change in regulations regarding crude oil exports," White House spokesman Josh Earnest said, noting the Commerce Department was in charge of export regulations. "I'm not going to speculate about any sort of policy change that may or may not be contemplated at this point," Earnest said. (Reporting by Roberta Rampton; Editing by Doina Chiacu)
Protecting Contractors As They Enter New Waters. As the economic recovery continues to sputter along, construction companies eager to land any available projects have found themselves bidding outside their normal scope of work. Maritime construction is one such industry that has seen an increase in contractors who may not typically work on marine-related projects, thereby increasing the likelihood that individual projects may fall outside their skill set. While contracts in marine construction present opportunities for income…
CNOOC May Delay Deepwater Rig Startup to 2011
According to a June 8 report from Bloomberg, China National Offshore Oil Corp., the country’s biggest offshore energy explorer, may delay the startup of its first deepwater rig until 2011 because of a safety review after BP Plc’s oil spill in the Gulf of Mexico. The rig to be deployed in the South China Sea may not turn operational until the first quarter. (Source: Bloomberg)
3rd Officer at helm when ferry capsized - Investigator
The third officer was at the helm of a South Korean ferry when it capsized on Wednesday with 475 people on board, an investigating prosecutor told a news conference on Friday, and the captain may not even have been on the bridge at the time. "He may have been off the bridge ... and the person at the helm at the time was the third officer," the investigator said. (Reporting by David Chance; Editing by Paul Tait)
Ballast Water Rules Create Conundrum for Shipowners
Speaking today before a conference on ballast water treatment regulation, World Shipping Council President Chris Koch outlined the conundrum facing the maritime industry caused by the lack of any globally accepted ballast water treatment technology. While there is general, global acceptance of the IMO’s ballast water treatment discharge standard, there is today no globally accepted ballast water treatment technology that meets that standard – meaning that vessel operators could face an enormous capital investment in treatment technology that may be insufficient to meet regulatory obligations. “If the IMO Ballast Water Management Convention enters into force before U.S.
New York Security Zone Altered
The U.S. Coast Guard has amended, at least through January 8, 2006, its security zone around Designated Vessels within the Captain of the Port (COTP) New York Zone. The definition of Designated Vessel has been amended to include passenger vessels and ferries certificated to carry 150 or more passengers. Other vessels may not approach within 100 yards of a Designated Vessel without permission of the COTP. 70 Fed. Reg. 42493 (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
USCG Issues Rule For Protection of Naval Vessels
The U.S. Coast Guard has issued a final rule regarding naval vessel protection zones in U.S. waters. The rule largely codifies the zones around large U.S. naval vessels that were first promulgated on a temporary basis on September 21, 2001. Vessels may not approach within 100 yards of a U.S. naval vessel (one greater than 100 feet in length overall) without official permission. The permanent rule comes into effect on June 15, 2002. Source: HK Law
Coast Guard Establishes Naval Vessel Protection Zone
The U.S. Coast Guard established a naval vessel protection zone, effective through October 12, in the vicinity of the Stapleton Homeport Pier on Staten Island and around the naval vessels (U.S. and foreign) participating in the NATO fleet visit. Nonmilitary vessels may not approach within 500 yards of these naval vessels.
Bill Debuts re: Oil Spill Liability Limits
Senator Lautenberg (D-NJ) introduced a bill (S. 2700) to amend the Oil Pollution Act of 1990 to double liability limits for single-hull tankers and tank barges for 2009, and for other purposes. This bill, as introduced, is worded in a strange manner and may not have the intended effect. (HK Law).
Appeal By Pilot Association Disallowed
In another chapter (or paragraph) of the long-running disagreement between the association of U.S. pilots operating on the Great Lakes and the U.S. Coast Guard, the U.S. Court of Appeals for the District of Columbia Circuit ruled that the pilots’ association may not appeal a lower court decision to remand a rate dispute to the agency. Lake Pilots Association, Inc. v. U.S. Coast Guard, No. 03-5152 (D.C. Cir., March 9, 2004). (HK Law)
Prototype TWIC Invalid
The Transportation Security Administration (TSA) and the US Coast Guard issued an Informational Bulletin reminding maritime workers and regulated facilities that the prototype Transportation Worker Identification Credentials (prototype TWICs) issued on a test basis to participating workers from 2004 to 2006 were only valid during that trial phase and may not be used for the purpose of obtaining unescorted access to regulated maritime facilities once the compliance date for that facility comes into effect. Workers still in possession of a prototype TWIC should promptly apply for a valid TWIC. (Source: Holland & Knight)
Avoiding Pitfalls on the Water
When a land-based contractor decides to work on water, risk can arise from unexpected places. It doesn’t have to be that way. In the past, companies involved in the marine industry, whether they were vessel operators, riggers, longshoremen, ship builders, repairers, or construction companies were, by and large, specialized and most companies focused on one niche aspect of the industry. Fast forward to 2015 and it is clear that our industry has changed. Today, there are fewer companies in the market with each company often doing business in multiple areas of specialty.
BWTS: Challenges for Installation Engineering
Many of the challenges related to engineering the actual installation of a ballast water treatment system have been noted in the sections describing the treatment technology factors above. These challenges can be especially acute when installing a system on an existing vessel. Finding solutions to treatment system back pressure and potential f low rate reductions, power consumption demands, control system integration and space requirements, as well as access for installation, can be difficult and costly.