
Volume 10, No 12 -- December 2000
Twenty-seven pages, privately distributed. Sustained by
sponsorship NOT advertisements. Latest information issued with the compliments of sponsors
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SHIPOWNING -- A GOOD YEAR
THERE is no doubt that the first year of the millennium provided a fine weather passage for the international shipping industry, and one effect has been the reluctance of owners to dispose of time-expired carriers. Some 450 ships of various classes and sizes have been removed from the maritime register this year, some 25% fewer than in 1999.
It was inevitable that inspections by conscientious surveyors at ports of call should target some of the elderly tankers, both big and small, and find them no longer seaworthy in terms of international safety requirements. They had to be expunged, unless owners were satisfied their continued sailing at current charter rates justified substantial cost for rehabilitation.
There were major deals through the year involving not only single VLCCs, but whole flotillas, and Norwegian owner John Fredriksen’s Frontline tanker organisation swallowed up substantial sections of the Scandinavian VLCC fleet. The respected and well-placed operator had no difficulty closing deals at $50m, and more, for modern VLCCs, and he is now an undisputed leader of the tanker industry.
The VLCCs, which a few years ago were having to live off daily hire equating with about $17 000, are now on the crest of top earnings with some charters providing carriers with almost $80 000 a day.
Winter oil demand in North America represents a windfall for the largest tankers, and Chevron have taken three Italian ULCCs, Hellespont Embassy, Hellespont Grand, and the Empress des Mers on charter to deliver a total of 1,3m tons of crude to the US from the Persian Gulf over the next few weeks. Another ULCC, the Limburg, is coming round here this month with 275 000 tons at about the same freight rate for a charter to Koch. By making the long haul round the Cape, it is a fair guess that the three Chevron charters will be receiving stores and mail off Cape Town from either the surface ferries or the Court helicopters. Weather in approaches to Table Bay at this time of year is relatively calm, the seasonal south-easterly winds causing only a mild jobble when ships are working under the lee of the Twelve Apostles.
Because size and draught of the ULCCs prevents them entering American waters, they will tranship 150 000 ton parcels of crude to smaller tankers in the West Indies for delivery. The ULCCs in ballast then return to the Persian Gulf by the same route.
Although no charter rate has been indicated, it is assumed that by virtue of their size the trio will each be getting the equivalent of about $70 000 a day.
The unbroken train of crude cargoes working round the Cape from the PG to Europe and the US also sees those from West Africa to the Orient paying carriers near $60 000 a day. It is, in these circumstances, not surprising that owners elect to rejuvenate old ships rather than wait two or three years for delivery at $75m each of new buildings.
Rough cargoes pay more
The bulk carriers, which in the last year of the millennium suffered penury as result of low charter rates, have also enjoyed a shot in the arm, and are doing well. Whereas they were getting little more than $6 a ton for shipping coal from Richards Bay to Europe, they are now securing all of $11,25 a ton.
Ore to Japan from Saldanha Bay this month will pay the 150 000 tdw Linda Emilia $11 a ton and the 75 165 tdw Konkar Lydia goes on charter of $10 400 a day at Richards Bay with a voyage with coal to Europe.
It is costing the charterer $190 000 to get the 54 309 tdw Thetis 1 to Saldanha Bay to work an ore cargo to the Far East at $8 750 a day.
Charter rates for 72 000 tdw bulkers now works out at about $12 000 a day, while those of about 45 000tdw get $9 500 a day.
But cognisance must be taken of the sharply increased cost of bunkers, and higher charter income subsequently does not yield the profits sought.
A shipment of 23 000 tons of sugar from Beira to a discharge terminal in the U.S. Gulf was fixed last month by a Greek-owned, Maltese registered, vessel ... and at the encouraging rate of $39 a ton, more than sufficient to cover the long haul at prevailing high cost of bunkers.
The 73 786 tdw National Progress will work a bulk cargo from Richards Bay this month to Taiwan at a daily rate charter of $14 100.
The Anangel Splendour got $11 10 a ton for her 150 000 ton ore shipment from Saldanha Bay to China last month ,and on a charter the 195 000 tdw Obelisk 1 lifted a cargo at Richards Bay for Europe at a daily hire rate of $22 200.
The crude imports from the Persian Gulf to Durban and Saldanha Bay to account of Stena and Engen are each costing about $50 000 a day for the 206 000 tons in the Berge Odel and 265 000 tons in the Welsh Venture.
Higher Box Rates
South African exports and imports by container on the service with Europe will cost more from next month when carriers raise existing box tariffs by $200 a unit north bound, and $250 a unit south bound.
There have been increases on other routes, particularly in the Pacific, the worldwide escalation in cost of bunkers having made important inroads into the profitability of the large box carriers.
The container ships enjoyed a fair run of good loads and remunerative rates, but there was risk of their managements interpreting the situation as the norm and consequently likely to persist indefinitely. But carriers on some routes have noticed a decline in takings attributable to things other than availability of cargoes. There are problems of finding employment for craft, which, after a highly profitable 18 months, must spend more time in port waiting for cargo to be assembled and brought forward. This idle time has profound impact on earnings, and operators have in some cases agreed to lower rates as a means for keeping ships moving.
LINER SERVICES
THE constitution of the South African liner services with both Europe and America has been transformed out of all recognition in recent times. Consistently with the disappearance of famous company names from services, even the demise of original office bearers, the sea connections become responsibility of new consortia and personalities.
Mr Rod Riseborough, former chief executive of the European Container service until its reconstitution recently, is now the MD of the Safmarine operation in UK. There will be closer connection with the British offices of Maersk, who actually own the former South African company registered with HQ in Antswerp. Shares on Compegnie Maritime Belge held by Belgians were taken over by the new concern, and that name will no longer be used, after its long association with sailings to W Africa. The name of Safmarine will be the title covering all these African services shared with Ellerman Harrison and Deutsche Afrika. Famous names of yore -- Clan, Union-Castle, Holland-Afrika, and Lloyd Triestino -- are heard no more, and the famous lines to Australia -- Blue Funnel, Aberdeen line, Shaw Savill, and Port Line -- have also disappeared.
Down this end the parent company of Safmarine, A.P. Moller, have established a shore interest, called Southern Africa Transport Investments with Safmarine’s former chief, Tony Farr as the chairman.
On the service with USA, the British concern Andrew Weir, with a 25% interest in a partnership with MSC, Safmarine, and Maersk Sealand, announced intention of pulling out of the operation, leaving Safmarine as the sole shareholder of the service.
Andrew Weir is changing its emphasis after suffering a deficit last year of $9,25m, and has secured an important association with the British Ministry of Defence to build and then operate a flotilla of six roll-on roll-off ships. Pre-WW2 Andrew Weir operated a trio of imposing passenger ships on the South Africa – India haul, Insipingo, Inchanga and Incomati, but the passenger demand did not return after the war. After sailing as cargo-only ships, they were scrapped.
IN COMING months we are likely to hear more about development, some 50km east of Port Elizabeth, of a sophisticated port at Coega. Furthermore, it is possible that the new terminal will enjoy participation of respected oversea owners who have been instrumental in aiding other world terminals, P&O Nedlloyd. But nobody must expect sensational development overnight.
It is something new for South Africa to have private enterprise managing some of its dock systems, but it is an arrangement widely practised oversea, and likely also to prove to the advantage of South Africa. Before the introduction of the term "Portnet" for dealing with dock activities, South African terminals were rigidly nursed from Johannesburg Railways HQ, and the lack of shipping experience that became apparent produced the catchphrase "the right way and the railway" when referring to dock operations.
However, it is likely to be sometime before the complicated arrangement of port management is worked out, and the respective parties made conversant with their individual responsibility.
It has been patently obvious for some time that facilities for container traffic in existing terminals are inadequate in the face of expanding trade, and a completely dedicated marine terminal, such as could be made available at Coega, is essential if congestion in ports is to be avoided.
GREEK RISE AND FALL
WHILE it is recognised that Greeks constitute the backbone of the world’s cargo fleet, they display extraordinary potential for moving from prosperity to poverty in months, and the international shipping portfolio has in recent weeks discovered that Coulouthros, respected operator of VLCCs,has had some of his ships arrested for debt.
Purchases by the VLCCs Mariner and Sailor in Singapore were alleged not to have been settled, and a bunker supplier is reported to have signalled not having been paid for fuel supplied a year ago. Chase Manhattan Bank is said to have provided added credit to help the company resolve its financial woes.
This development with VLCCs is all the more strange because of the high level of employment and formidable rates now paid by VLCC charters. Some tankers are picking up as much as $50 000 a day.
Some of the time-expired tankers are currently being sold for breaking, and fetching a high price of $185 a light ton from Indian scrappers.
A firm of bunkering brokers in Malta is advertising in an oversea maritime journal the fact that a Greek shipowner had failed to pay the $79 950 owed for bunkers supplied 1 July off Malta. Other creditors are being asked to associate with the actions of the bunker supplier who, until the end of last month, had not received any compensation.
CRUISE SHIP PLAN SHELVED
ENTERPRISING Mediterranean Shipping Co (MSC), engaged in regular trade to these parts, had intentions of entering the cruise business in a big way with a $190m newbuilding, but unfortunately the talks between Gianluigi Aponte and Italian builders ran into trouble over the design changes suggested by the builders. Aponte says these would not contribute to economical sailing.
The builders apparently proposed public areas be increased, and the 750 passenger cabins reduced by 5%, but the change would see cost of each ship increased by some $11m.
Aponte has now given the builders the option of producing a new plan without altering original price and the number of cabins. The Contract would otherwise be scrapped and the shipyard left to seek work elsewhere.
WHEN
(MODERN) SHIPS GO DOWN!
PREDISPOSITION in recent times for both bulkers and tankers to disintegrate and founder, often with their crews, not surprisingly precipitated discussion among naval architects and builders on the subject of strength of structure. To what extent are the failures, particularly involving older ships, attributable to the use of lighter, and reportedly stronger tensile materials?
Whereas in the days of coal-fired steamers it was not uncommon for riveted structure to render more than 30 years uninterrupted service, and on the Cape mail sailings, passenger steamers like the Armadale Castle, built in 1903, sailed without hull or machinery problems until demolished in 1934. It is common now for some Classification societies to give closer attention to ships more than 15 years old, and others after 20 years old are regarded eligible for the scrapyard.
As Strong as Steel...?
Indentations in the side plating of many ships make it obvious they have succumbed to pressure, and while it is argued by experts that steel employed in shipbuilding is stronger than in former years, the tendency to use it in lighter grade detracts. Lightweight of cargo ships built in the first half of last century was substantially heavier than contemporaries of recent times. But the experts tell us that standard of material used is substantially stronger.
Indeed, the ease with which tugs appear to be capable of providing indentation by a hard landing, may conceivably negate this assertion.
In the case of tankers, does the modern practice of double hulls assure any greater security than the old time single shells, built of heavier material? Whence cometh the term "paper boats" used by staff who sail in modern ships?
It is, of course, recognised that a double skin reduces risk of pollution in event of collision or stranding, but there is now concern about effects of wastage in void spaces which cannot be opened for inspection, and where heat serves only to accelerate steel corrosion.
It was for generations the practice to provide ships with a raised forecastle. This served to reduce weight of water flooding the forepart in time of headsea, but it is now common for the flush deck bows to give the wildest sea free flow over the stem.
People associated these days with bulkers and tankers are concerned sometimes by the limited freeboard remaining when vessels are loaded. And many do not have raised forecastle, thereby inviting free flow of sea over the foredeck.
It is significant that ore laden bulkers which in recent years contracted structural cracks in the course of voyages across the South Atlantic from Brazil, actually foundered as result of flooding, in some cases even before a distress call was emitted, or crews could get off.
Some relatively new bulkers disappeared without trace between Brazil and the Cape, and it was assumed that -- like the British ore/oil 169 000 tdw Derbyshire - declared flooding forward through inadequate hatch covers to have been the cause.
The ore laden Treasure which this year developed a leak when approaching the Cape with a transit ore cargo from Brazil, succeeded in retaining the inflow until she reached this side of the Atlantic, and when crew realised the vessel was going down fast, they accepted service from local tug and rescue craft, and walked ashore dry-shod.
Local salvors and divers have had to disperse the upright wreck in the approaches to Table Bay, which represented a danger to navigation for deep laden shipping. The mast and bridge structure were required to be cleared away.
Some years ago a bulker, after loading her cargo at Saldanha Bay, covered fewer than ten miles after disembarking her pilot at the start of her voyage to Japan, when she filled and foundered with the entire complement in the swell to west of Dassen Island. Unfortunately, contemporaries in at least four other ships far from land were lost when their ships foundered.
There is no gainsaying that an ore laden ship enjoys only limited reserve buoyancy, despite application of safety rules.
A chemical tanker, the fully laden Italian, Ievoli Sun, when working her way through the English Channel two months ago in rough weather, sent an urgent signal stating she was taking water. This could only be through hull failure, and in a few hours she had to be abandoned and capsized, and sank, after the crew had been taken off.
The French who suffered problems from spillage from the fractured Erika a year ago, were concerned about polluting chemicals from the Ievoli Sun which, fortunately, evaporated or dispersed in the raging seaway.
It is not surprising when maritime authorities become concerned about tendency for modern ships to fracture, fill, and founder in weather endured without adverse effects by their fathers and grandfathers in ships long ago. They knew nothing about stainless steel structure now lauded as the answer to modern shipbuilding.
The effect on level of loading introduced by the modern practice of ports basing tariffs on the gross, rather than the net, tonnage of ships is said by concerned officers to be responsible for the deep state of vessels. In time of wild weather and heavy swell, hulls are not only subject to extreme stress, but weight of water flowing across decks threatens to put the ships down.
Asks one experienced seafarer, "Are we to believe that modern bulkers and tankers are safer than those built half a century ago? " It is a good question, in light of recent experience with shell failures in tankers, and foundering of bulkers 20 years old and regarded obsolete.
DESPERATE WIDOWS
THE International Transport Workers’ Federation workers party has a host of depressing cases to untangle, involving widows left destitute after their husbands were lost at sea, often in run-down ships.
After the Polish owned bulker, Leros Strength, filled and sank off the Norwegian coast three years ago with 20 crew, dependents heard nothing from the shipowner. The actions of a British P&I Club produced strong resentment, specially the proposal that next of kin accept contractual levels of compensation in a final settlement, thereby avoiding potential liability under any subsequent action of negligence. The attitude and actions of the British P&I Club have been described as unconscionable.
Widows of the crew lost in the bulker have approached Mr William O’Neil, the Maritime Organisation chief, to seek his support for the campaign by widows for compensation.
In their letter, the widows stated that after three years they were still without any communication from the employers of their husbands. And they had never been advised of anybody had been found accountable for the deaths of their husbands.
They added that they had heard certain renewals and repairs, demanded by surveyors of ABS & Rina to make their ship seaworthy, had never been carried out.
The widows asked why the Class societies could not be held accountable for their hardships when it was obvious that Class criticism of the state of the Leros Strength did not induce immediate action. The Polish widows in their letter to the IMO chief said they were depending on charity for essential foodstuffs.
The Workers Federation says that dependents often suffer isolation and intimidation when making claims, and transactions are tardy so that injured seafarers, incapable of pursuing their profession, suffer abject poverty. Some dependents of the Leros Strength disaster accepted their $30 000 in desperation, and had to sign away any right to seek further relief.
RULE FRUSTRATION
AN examination of port records of 100 years ago this month reveal that there was a degree of congestion in Cape Town harbour and roadstead, produced by simultaneous presence of no fewer than 146 ships, most associated with the state of war existing in the interior.
Despite the south-easterly gales which afflict the port at this time of year, there were no reports of ships colliding or suffering problems.
What is more, there was no suggestion then of a Traffic Separation scheme which has now been in force in Table Bay for two years, with more criticism than praise from mariners for what many perceive is an unnecessary frustration, since there are now actually fewer ships. Large passenger liners of yore have become a rarity in these waters, and VLCCs are kept out because of draught limitations.
Having regard to the wind conditions in approaches to Table Bay, particularly in winter, the application of the traffic separation rules are not appreciated by experienced mariners.
When a ship drops its pilot and sails out of Table Bay it may, in terms of the new rules, have to cross the bows of an incoming vessel in course of manoeuvring to pick up its pilot.
These factors serve only to reinforce objections of shipmasters to a separation scheme which, many argue, was not required during closure of Suez in two world wars and during other international emergencies, which saw a veritable avalanche of ships round the Cape. Indeed, as one experienced mariner suggests, if the rules had been applicable at that time, the confusion and disorganisation in the ports would have been worse confounded.
Why, then, is the system regarded appropriate in 2000? Is this another win for bureaucracy?
The same arrangements are apparently being applied in other Republic terminals, and are in force already at Durban and Saldanha Bay.
SHIPYARDS SAVED
THE plight of western shipbuilders in the light of fast expanding yards of the Far East where ships of all shapes and sizes can be built at 30% less cost than by any European builder, has received frequent mention this year. British shipbuilders all but went out of business, and Belfast yards Harland and Wolff indicated closure when they started paying off staff this year. However, the decision of the ritish Ministry of Defence to spend $1,5bn on construction, in UK yards, of troopships and landing vessels saved not only Harland and Wolff, but provided Tyneside yards of Swan Hunter with work. The jobs of some 3 000 dockyard workers have been saved.
According to the plans, six ro-ro ferries will come from Belfast, and a flotilla of landing craft from Tyneside. Another four ferries will, however, come from yards in Flensburg in terms of a private deal of financing by the long-established Andrew Weir shipping entity of London. The shipping company will be contracted to manage the ferries for 25 years.
By virtue of their commercial design and suitability for conventional commercial sailing, it is expected that the Ministry will charter them out to private enterprise and their earnings will contribute to their maintenance and manning.
In order to get the contracts on to the slips promptly, Swan Hunter intimates employing a further 1 000 artisans.
Not surprising, some Labour parliamentarians deplore the handing out of building contracts to German yards, too, but the bulk of the shipbuilding portfolio has voiced no objection.
UK Cruise Ships
At the same time Cammell Laird on Merseyside have succeeded in booking contracts for a pair of 28 000 gt passenger ships, with options for two more, for cruising with complements of up to 400 passengers.
Directing the operation is the British travel concern Luxus, which is hoping to secure Government backing for the project, the most ambitious contract involving building of passenger liners in Britain in the past 30 years.
The company originally went to Harland and Wolff, but the Belfast yards could not guarantee time for delivery, while Cammell Laird were more positive subject to provision of a guarantee of a mortgage to the Luxus bankers.
Provided there are no hitches and construction can begin promptly, the first passenger vessel will be delivered in June 2002, and her sister in 2003.
Having noted the enormous success of cruising in the Caribbean, and the increased interest by Britons, the UK company has succeeded in generating, it hopes, the requisite support for building and operating cruise ships in home waters.
French Connection
Cammell Laird entered into an agreement with the Port of Marseilles authority for the British repair firm to use the French dry-docks. The winning of additional repair contracts to the French port would afford locals of remunerative employment. But the plan has boomeranged because of grievances by some 40 suppliers together employing about 700 French workers, accounting for revenue exceeding some $50m annually
The French critics complain of the proposed British 15% levy if locals wish to use the dry-docks, and regard the monopolistic attitude of the British as detrimental when pressure is brought to bar on clients to deal directly with the Cammell Laird chiefs.
Other Continental marine repair firms are of the opinion that the Marseilles management had infringed the European Union Competition regulations, and some alleged that Cammell Laird had abused its dominant position in refusing the share work with other companies.
French Win
It is now certain that the 152 000 tg passenger liner Queen Mary 2 will be built in France, the keel laying expected to take place in 8 months time, and completion anticipated 18 months later at a finished cost of $780m.
Although the ship will be on the British register, Cunard is now actually 100% American owned, but there already is concern about where Carnival will find the large British officer staff to operate her.
Harland and Wolff was one of the British yards to submit tenders, but the UK has been out of the business of building passenger liners for more than 30 years, and fitting out such a big ship at what would have been a higher price, was feared to be beyond their capacity.
The British-built QM2 is likely to have diesel electric, or gas turbine propulsion, and will run in company with the QE 2 for about five or six years by which time it may prove necessary to retire the 67 000 ton Elizabeth. It will be recalled that the QE2 originally had turbine propulsion, but for economic reasons Cunard pushed her into a German yard, and she emerged with nine MAN diesels which give the same speed at about half the cost in fuel.
There have also been repercussions over the decision of the British Ministry of Defence to place some of its orders for ro-ro tonnage with German builders. It is feared that Britain has lost some of its prestige as a shipbuilding nation.
Reason for owners not to provide contracts for cruise liners is the limited experience British yards have had in the last half century with designing and building sophisticated passenger liners. Public room decoration is said no longer to be a British shipyard talent.
BRISK MARKET
CONSISTENT with a current season of high freight rates and demand for carriers, the second-hand market sees relatively old ships securing healthy prices from operators suffering problems related to demand for carriers.
Brokers oversea confirm that 70 000 tdw bulkers after seven years service are securing no less than $15m from mainly Greeks, currently lining up numerous charter contracts, and need the ships. Provided they are in good shape, and approved by Classification Societies, 22 000 dwt bulkers more than 23 years old are exchanging hands for $8m, and are being immediately pressed into service on behalf of new owners.
Because of the high prices demanded for second hand ships, many owners who would contemplate expunging time-expired carriers are, instead, submitting them for another survey to facilitate another four years remunerative employment.
It is acknowledged that if owners cannot secure a reasonable return on their shipping investments during the present term of remunerative freights, they probably never will.
When a 23 878 dwt 20 year old bulker, Green Rainier, was advertised by brokers for sale last month, no fewer than 16 interested parties inspected the ship. She was acquired in the end for $3,1m by Greeks. However, the 23 years old, 26 414 tdw Kavo Alexandros changed hands between Greeks at a somewhat smaller figure of $1,55m; no doubt state of the vessel affected its value.
Modern ships of all types change hands at formidable prices, such as the 44 875tdw six years old bulker Pearl Crest, which Piraeus buyers took for $14,4m.
Provided the current level of bulker business persists, the new owners will rapidly recover the outlay of their investment.
Tanker Business
The surge in the price of and universal demand for crude materially affects value of tankers, and explains the fickle charter rates which have seen remarkable rise and fall this year. The VLCCs are averaging about $72 000 a day on their long hauls, and smaller tankers operating across the Mediterranean are securing about $52 000 a day, which is regarded a most satisfactory return.
New VLCCs, which come mainly from the S. Korean yards, are now being delivered at a basic price of $72m. European yards find they cannot build the same ships for less than $76m, and it is obvious that the Far East yards, which build both the hulls and the diesel machinery, have the main business.
The problem of fracturing of foundations underneath the seven cylinder Sulzer single screw diesel in VLCCs from S. Korea is a source of expensive concern to owners, but the builders are meeting cost of repairs which in some cases see the 300 000 tdw ships out of commission for three months for the main engine to be raised to facilitate access to the bedplates. These exercises certainly deprive contractors of profit from individual contracts.
There also have been crankshaft problems with the high-powered diesels in other tanker main engines.
SUEZ AGAIN UNDER THREAT
MINDFUL of the upheaval to shipping and associated industry in the Middle East during 1960s and '70s, and the need -- at behest of concerned insurers of cargo and carrier -- to keep maritime business away from troubled waters, the current politically motivated ructions in sensitive areas could again see diversion of transit Suez shipping to the Cape route in interests of security. The increased pressure on South African terminals, and necessity for assured stocks of bunker fuel to supply transit shipping, would necessitate harbours working at pressure round the clock.
Transit shipping would have little influence on cargo figures, but foreign currency revenue through ports would increase sharply, emulating the handsome income secured in the '60s when ships spent substantial sums for stores, and simultaneously contributed to the revenue earnings of what are now known as Portnet dock systems.
Reports from offices of established shipping concerns in the Eastern Mediterranean make it clear there is currently no disruption to shipping operations. But the situation could change overnight, and it is a fair assumption that diverted callers would comprise mainly box carriers bound to and from the Far East and Australasia, and requiring some thousands of tons of bunkers here. This would necessitate more frequent replenishment of bunker tanks since the bigger and faster container services consume more oil than the ships which came round this way in the late 1960s and early '70s.
It goes without saying; the whistle stops by transit ships constitute formidable business for ship chandlers, and for ships not in need of bunkers or fresh water while rounding the Cape, the off-limits delivery by boat and helicopter outside portlimits would represent a bonanza for local companies.
Laden bulkers, which may require to take bunkers at a Republic terminal may produce furrows in the brows of dock officials when the loaded draught of some of the callers could bring them within a centimeter or two of the dock floor.
Not surprisingly, the developments in the Middle East are being watched with intense interest by the facets of business most affected if sea traffic was again diverted from the canal to the Cape route.
Cruise operators are adjusting schedules and ports of call of their vessels sailing in the Mediterranean. They are naturally anxious to avoid any dislocation through political causes, and most operators have by-passed Israel and visit Turkey and Greece instead.
Not surprising, the Israelis are complaining about loss of tourist business as a result of the precautionary of shipping lines. But no cruise operator can afford to have a shipload of trippers subjected to civil disturbance in a port of call. Civil upheaval anywhere in the world immediately puts a stop in affected ports to calls by passenger ships.
MORE RIG BUSINESS
POLITICAL and economic problems of west African countries have contributed to their difficulties in efforts to attract shipyard work from the scores of rigs, crane barges, and others associated with the oil drilling operations off the western seaboard.
The insecurity of some ports has served only to increase volume of repair work channelled to Cape Town, although some of the small craft also use Walvis Bay, where the facilities do not commend themselves to the cranes barges and drilling rigs.
After a long spell working on contract off Mossel Bay, the pipe-laying Italian-owned barge, Costoro Otto was laid up for nine months in Simon’s Town this year awaiting another contract.
After a brief refit in the Cape Town dry-dock the barge has awarded another pipe contract and will probably spend most of the new year off the Ivory Coast. Abidjan is one of the ports which suffered substantial loss of rig business.
FAR EAST SERVICE
THE trade between the Orient and the Republic has sustained a formidable number of ships in recent years, cargo volume being comparable with those from Europe. But the companies of the so-called Safari group composing the regular carriers to and from the Far East, will undergo changes in the New Year. The powerful P&O Nedlloyd group elected, after 20 years, to sail out of the group composed also of Maersk Sealand, Safmarine, K Line, Mitsui OSK and the Malaysian Line in joint sailings.
P&O Nedlloyd will still be seen, but they will be sailing on the through service to South America, and another operation also to West Africa, unconnected with what has been the Safari service. These changes take place before April.
There is no doubt that when companies elect to withdraw from the group sailings, others will be there to replace them. And the Far East-South Africa haul has been remunerative in both directions, although the volume of business with the South American terminals has barely justified the two way haul across the South Atlantic. It is a fair guess that Maersk will retain the connection between the Republic and mainly Taiwan, Japanese and mainland Chinese terminals, using the Safmarine small container ships as its representatives. All the South African-flagged box carriers are now 100% Maersk owned and operated.
Canadian Sailings
The Canadian connection with South Africa has undergone a change since the sale by Norwegian Thor Dahl of the ships originally employed on the route as the Christensen Canadian Africa Line, all now owned by the Lykes Lines, part of Canadian Pacific.
Ships on the service are receiving new names, the Thorshope has become the Lykes Winner, Thorsriver becomes the Lykes Energizer, and Thorslake is now the Lykes Inspirer. Lykes, formerly one of America’s oldest shipping lines until it went bankrupt a few years ago and bought by the Canadians, also has two ships in the US-South Africa haul.
Although not wholly container ships, their vessels can move 692 teu along with 15 000 tons of general cargo.
BIGGER BOX SHIPS
COPENHAGEN owners, A.P. Moller, operators of the formidable Maersk shipping fleet and owners of Safmarine, are reportedly contemplating building in their Odense yards a flotilla of container ships with four times the capacity of the original Safmarine "whites".
The main yards are being charged to erect box carriers lifting 8 500 teu
At the same time, Asian yards are negotiating building of similar large box carriers for Orient Oversea Container Lines, and it appears that the fluid container traffic across the Pacific will henceforth consist largely of multi-sized boxes lifting up to 12 000 units.
It is significant that most orders from world shipyards of container ships comprise inordinately large carriers, necessitating crash schemes by key terminals round the world to make their facilities suitable for the reception of more boxes in substantially larger ships.
It is certain, if the Republic is to be counted among countries with adequate provision for waterborne imports and exports, existing dock facilities require to be extensively revamped. Durban, as the main terminal for Gauteng, is allergic to congestion, and the era of bigger ships with larger loads necessitates Portnet effecting costly, but essential, extensions of facilities dedicated to handling boxed imports and exports.
For what it is worth, the Republic may secure an element of comfort from the fact that other dock systems are confronted by the same accommodation problems. But all are endeavouring to overcome their disabilities.
According to recent fixtures, the carriers of up to 2 000 teu can secure $15 000 a day, and the bigger vessels, designed to lift 4 000 teu can command $27 450 a day. Newbuildings by box carrier owners makes it obvious that 7 000teu is now regarded the most efficient load, having regard to available port facilities along major routes, and the volume of cargo being made available. Building contracts provide for this size ship, constituting more than twice the capacity of those of the 1970s, including the four so-called "whites" of Safmarine. But those associated with the container industry anticipate newbuildings after next year being for ships capable of lifting 12 000teu, and in a decade hence, carriers of 15 000teu will be coming into service. Carriers on affected routes will need to conform.
Engineers are interested in the immense engine power going into the carriers of up to 10 000 teu, stowing boxes six, or even seven tiers high, driven by a MAN B&W diesel of 93 120 hp, consuming 246 tons of oil a day at 25 knots.
It will be recalled that the largest mail motorship on the South African trade was the 27 000gt Capetown Castle with two B&W diesels together developing 27 000 hp, which at the time of construction in the late 1930s was regarded immense power for a motorship.
Operators of the revised service to the Cape from Europe have been casting round to find boxships of the right size, and speed to process the sailings. Some of the daily charter rates of hired carriers for the revised sailings to the Republic were published last month.
SUICIDE SINKING
WHEN a steel hull has been in sea water for 68 years it can be expected to reveal effects of corrosion.
This is probably what put the 24 346 ton passenger steamer Belofin 1 down, about 65 miles north-west of Cape Town two months ago, while under tow by the Russian tug, Irbis, (2 41 tg), en route to Indian breakers after five years idle in Tampa.
There was nobody aboard the derelict twin-screw steamer -- better known in her early years as the Chandris steamer Britanis -- when tug crew observed settling. When it was obvious the Belofin 1 was committing suicide, Irbus shed the tow and let it sink.
Right up until sale for breaking, the Belofin 1 owners had plans to develop the old vessel into a hotel in San Francisco. There was difficulty raising the $4m needed for the conversion of the passenger quarters ship by interested investors who remembered her luxury and popularity when working across the Pacific after WW2. After paying $50 000 a month in dock-dues at Tampa, the owners decided to accept the very favourable figure of $3,5m from the Indian shipbreakers, and the tow began, and ended in total loss.
It would be interesting to know terms of the commercial tow, and what recompense the tug receives for towing the derelict one third of the distance to the scrapyard. It is hardly likely to have been a "No cure, No pay" delivery arrangement with a derelict ship.
The tug and tow had successfully covered about 6 500 miles of the long haul, and the pair were pushing into the south-easterly trades when the Belofin 1 structure apparently fractured and since a leak could not be controlled in a dead ship, the vessel sank.
The Insurance company hardly needed an emergency management meeting to determine whether the loss, valued roughly at $170 a ton on a light weight of 12 500 tons was avoidable. The shipbreakers will, no doubt, find another vessel to cut down, although passenger ships are not so freely available.
Surveyors and port inspectors these days are finding so many ships to be unseaworthy, that a roll may be composed containing names of the worst offenders.
A Chinese operated bulk carrier, Bao Chang (38 923 tdw) was apprehended by Canadian inspectors at Comeau Bay with no fewer than 82 deficiencies, including inadequate fire-fighting equipment, defective life-saving facilities, pumps incapable of clearing bilges, the emergency air compressor out of action, and damaged hatches.
BOXES IN THE SEA
THE advent of containerisation may have sharply reduced pilferage from cargo, and reduced handling, but there has been an inevitable increase of cargo loss in 20 ton parcels when containers are washed off the deck of ships in bad weather.
A recent loss in the Bay of Biscay consisted of 20 containers washed overboard from the deck of the 37 398 tg MSC Martina during the course of the voyage from Piraeus to Felixstowe.
The French endeavoured to locate and recover floating boxes, and the tug Ailette hastened out to search immediately on receiving information about the loss. The French tug fortunately located five floating 20 ton boxes and towed them into Brest. It was not known immediately whether these were full or empty.
Containers Overboard
Advent of wild winter conditions in northern waters sees claims flowing to insurance houses following loss by container ships of some of their deck cargo during rough weather.
Storms on the Pacific this year have still to yield their assessment of cargo losses, but last month in the north Atlantic, the 29 768 tg, MSC Pride, en route to Britain from Spain ran into a violent bluster, and in the subsequent pounding, 19 containers went overboard.
While recovery of the boxes from the rough sea was not possible, helicopters reported seeing them floating, and their drift was being monitored with a view to possible recovery.
Aircraft and a salvage tug between them reported sighting 10 boxes, but the science for their successful recovery in violent weather is still in its early stages, and it happens that boxes swept off ships can either be demolished with their contents when they wash on to rocks, or they sink in deep water.
While the container era is lauded as one of the great advances in the science of goods transport by sea, the insurance claims after laden boxes are swept overboard run to millions of dollars annually.
SCRAP SHIPS SOUGHT
PREVIOUS issues of the digest indicated some of the problems of Indian shipbreakers in face of the scarcity of scrap tonnage. Ships they secured two years ago at about $125 a light ton, are now costing them nearer $180, and the usual buyers of the scrap are reducing their purchases since shipbreakers are quoting more than $200 for the steel they cut out of obsolete ships.
The run-down tanker Ritas, which earlier this year was arrested in Cape Town because of its run-down state, was eventually disposed of by Pioneer Tankers, a Greek concern, to Indian scrappers for the good price of $185 per light ton. Having regard to the state of the shell plating of the 1978-built tanker, the price shows determination of breakers to secure tonnage.
Ore Oil
Nearer home, the continued exploiting of oil resources off the coast of Angola is bringing increased numbers of recovery craft to these waters, and this in turn means prospects of more business for the Cape marine repair industries.
American interests in recent months established existence of what they regard promising resources, and the waters up to 1 000 miles along the western seaboard could become an industry comparable with that developed by the Americans nearer home.
There are no terminals on the west African coast boasting the repair facilities available at the Cape, and favourable reports of successful contracts effected to rigs, crane barges and service vessels in Cape Town should assure regular flow of dollar contracts.
The repair depots are jealous of their reputation, and are ensuring that customers are satisfied when their craft return to service, this being a sure means for securing continuity of employment.
There is no doubt that the exploiting of resources within the territorial limits of the Republic must represent in future years a major saving of foreign currency now being expended for importing of crude from the Middle East.
Wise or Foolish?
Shipping management with long experience of the highs and lows of sea trade, are wisely advising their contemporaries to invest improved earnings to garrison them for the low which inevitably follows. They remind other members of the industry that nobody can stay on the peak of a wave interminably. The high spring tide is followed by a low tide, and ships sailing in waters enjoying greater depth of a spring high must ensure they are prepared for the shallow sailing that follows.
Shipbuilders invariably benefit from improved resources of shipowners who embark on new tonnage when times are good, but some -- to their cost -- are disposed to make inadequate provision for months, or even years, when trade sails into the shallows. New ships must still be paid for, irrespective of the level of earnings, and the hard times of the early 1930s saw many well intentioned, but ill-advised, owners run badly aground financially. Many threw in the towel on shipping on the back of their incorrect prognostication.
Cautious owners, while endeavouring to foresee developments over the next few years, are reluctant to raise funds without assurance of charters for meeting cost of additional carriers. Others regard the raising of loans worth the risk in the belief that current flow of trade may well further expand, despite well found fears of traditional owners who watch with growing concern the trend of political developments in Middle East which could turn sea trades on their heads within a day.
Experienced managements are not allowing themselves to be dazzled by current earnings into thinking these could be the norm instead of the exception.
If this column was to be written 12 months from now, the state of sea trade in the interim could well change so dramatically that shipowners may believe they were living in a different world.
JOBS A-PLENTY
UNEMPLOYMENT is a word now rarely heard among qualified seafarers, for there is a desperate scarcity of certificated officers for all western owned and flagged commercial ships. Agencies are advertising immediate employment for deck and engineer officers, deck and engine cadets, and multi-purpose ratings.
But organisations associated with seafaring are sceptical of the attitude of owners and employers, and a recent publication by the Centre of International Transport Management at Guildhall University, emphasised this.
Some assignments in Britain are offering salaries of more than £30 000 a year. While this may appear attractive for applicants from South Africa, the fact they will need to live in the UK and meet the substantially higher living costs, makes the assignments far less attractive.
There is not believed to have been a rush of applications from the Republic.
AMERICAN VENTURE
COMMERCIAL shipping operation is one industry that since WW2 has enjoyed minimal interest, largely because of high costs, by the Americans. The famous companies of yore faded into history, and something like 98% of the nation’s formidable sea trade is carried in foreign bottoms. Nobody in the new millennium could afford to provide competitive sailings with ships manned and managed by Americans.
While hundreds and thousands of American trippers constitute formidable business for the armada of foreign flag cruise liners in the Caribbean, not one wears the Stars and Stripes.
Current cold winter weather emphasises scarcity of American flag tankers. There is increased embarrassment when endeavouring to find tonnage for moving heating oil to American East coast cities, as long as the Jones Act demands that oil from the U.S. Gulf must ride in American bottoms. This leaves the populace stone cold. Foreign tankers would be available, but in terms of the law are not eligible. It is ironic when consumers in North American ports have no alternative means for bringing oil from released reserve stocks in the U.S. Gulf.
The tide may be turning. An element of Government encouragement in the form of loan guarantees for newbuildings has seen instant fresh discussion about contracts in U.S. yards for U.S. flag ships, and a New Orleans concern, American Classic Voyages, has negotiated for construction in Ingalls yards of a pair of cruise ships to carry up to 2 000 people each. Not surprising, long-standing cruise operators are interested to see where the U.S. company will find appropriate crewing, and if it happened to be composed of Americans, the ship fares would conceivably be as much as 30% above the ships using mixed staff and sailing under flags of convenience. Meanwhile, the original Nieuw Amsterdam is to go on the U.S. register for cruising in the Caribbean this month.
The American Classic Voyages has been associated with river cruises, and is concerned with extension of the short trips on open sea voyages along the East coast with ships carrying 225 passengers from next month.
Americans have ordered two cruise liners from U.S. builders to carry up to 2 000 trippers each as the first big American flag cruise ships. Like all new liner buildings, the proposed liners resemble massive blocks of flats, many offering outside balconies.
KEEPING MUM
THERE is one thing worse than sailing the seven seas in a run down, decrepit tanker. That is when the Master and his crew, in the presence of surveyors and inspector, try to conceal information about leaks and shell deficiencies of their ship.
The Americans last month displayed particular interest in a 16 years old Greek-owned tanker, Neptune Dorado, when it showed up in San Francisco Bay with an oil cargo from Australia. Inspectors noticed a strong smell of fumes when they boarded.
It was established that cargo was leaking into a ballast tank, but the Greek master was alleged to have instructed crew to make forged entries in the ship’s log, and to deny that there was any deficiency in structure. The tanker, through neglect, suffered numerous problems including 12 diesel breakdowns in the course of a month long haul. The voyage should have been completed in 25 days.
The 54 years old Master was arrested for not disclosing the leakage of cargo which could have caused an explosion and fire involving a cargo of 50 000 tons . The Master denied any offence, but because he could speak only Greek there was difficulty obtaining a statement without an interpreter. In terms of International rules, however, the Master should have been qualified to conduct business in English. He risked a jail sentence and a fine of $250 000 for trying to conceal existence of leakage of oil cargo. Until a Court hearing, the Master was released on $500 000 bail.
CLUE TO WARATAH LOSS
THE findings of the recent British Government Inquiry into the disappearance without trace nearly 20 years ago near Japan, of the ore laden 169 000 tdw bulker, Derbyshire, should prove of value to the various parties who endeavour to determine reason for disappearance in 1909 of the 9 000gt passenger steamer, Waratah, after leaving Durban for Cape Town.
The Derbyshire inquiry was a second investigation into the casualty after dependents regarded an earlier finding that loss was attributable to bad weather, was unacceptable for a ship of that size.
Using information culled from reports involving similar ships in recent years, the second Government inquiry said that it was likely the ship was put down almost instantaneously after a wild seaway whipped up by near-typhoon conditions, caused collapse of hatch covers on the forecastle. With additional formidable weight of water pouring below, the vessel settled by the head. No distress call was heard by shore stations, or by other ships, and no debris was found on the sea. The cargo being ore, this was not expected to leave debris.
The passenger steamer, Waratah, was on its second round voyage and had a total of 211 passengers and crew. Well down with Australian cargo for Britain, the ship took a reported 1 000 tons of bunker coal at Durban where a through passenger to U.K., Mr Claude Sawyer, disembarked after expressing his belief to Captain John Ilbery that his ship was cranky. He said she was conspicuously slow to recover from a roll.
There was a heavy swell from the south-west and when the steamer was about 200 miles down the coast, she ran into a typical winter gale from the south-west which invariably pushed up a big sea.
It would be a reasonable assumption that the Waratah, on, or near winter marks, took heavy water over the stem, wooden covers on No 1 hatch collapsed, and substantial additional weight of sea water flowed below. After shipping this water the ship would no longer lift its bows to successive swells, and would rapidly settle by the head, and submerge in minutes. She carried no radio by means of which she could indicate her distress.
Subsequent reports of laden freighters foundering in these circumstances are not uncommon, but there have fortunately been survivors to explain circumstances. In the case of the Waratah, if the foundering occurred at night when passengers were below deck, the chances of life-saving gear being used, or of anybody getting away in boats or rafts, would be remote. The foundering is surmised to have occurred second night out of Durban, after the steamer had covered about 300 miles against the prevailing headsea.
In calm weather the Waratah maintained 12,5 knots, but it is certain that in a strong headwind and heavy sea she would be down to no more than eight knots.
Although interested salvors are reported to have located a wreck which they believe is that of the Waratah (although some three dozen ships of similar size also are lying along the seaboard as casualties from WW2 U-boats) it would be interesting if a diver who identifies the Waratah can establish whether forward holds are without hatch covers.
RUN-DOWN SHIPS EXPUNGED
EXPERIENCE with run-down tankers and bulkers, and the tendency for some to break in two and spill their cargoes, has seen Classification societies tighten their control over ships for which they are responsible. Numerous vessels have been rejected by Classification Societies because of their dilapidated condition, and Lloyd’s Register recent expelled 40 vessels whose owners failed to maintain them in seaworthy condition.
The temporary repair of structure in some vessels had been effected with a view to concealing wastage from inspectors.
The breaking in two at the turn of the year of a laden old tanker, Erika, off the French coast effectively launched a world wide campaign against obsolete ships disposed to cause serious pollution as result of foundering.
At the same time, surveyors and Government inspectors in major terminals are submitting negative reports after conducting inspection of ships. The British detained 11 ships during September, one being arrested for the third time in 18 months because of deficiencies.
Neglected safety equipment is cause of many ships being apprehended, and a Greek-owned bulker, Ocean Light, was found to have 32 deficiencies, the majority associated with its safety equipment.
A Greek-owned general cargoship Felicity 1, Classified by Lloyd’s Register, was apprehended in Belfast, and spent five days making good 24 deficiencies, including emergency batteries that were flat, ventilators with holes, and unsafe lifeboats among other things.
A Korean managed bulker, Primula (36 486tdw) on arrival at Avonmouth was found with 30 deficiencies covering life saving gear, and general maintenance.
If other Classification Societies emulate Lloyd’s Register, and expel the unseaworthy units the respective owners will have difficulty securing insurance cover for them, and shippers are wise to first establish safety standing of a carrier before confirming charters. Moving cargo in an unseaworthy vessel nullifies insurance cover in event of loss.
CRUISE LINE FAILS
ALTHOUGH representaives of the cruise industry endeavour to play down fears of excess berths consistent with the massive building programme of more, and bigger carriers, the financial collapse of some operators has already dumped sea staffs and banks in million-dollar troubles.
Big money is invariably associated with the operation of ocean cruise liners, but losses by some are now exceeding profits. That is what is happening with some of the under capitalised concerns.
There are currently no fewer than 54 cruise liners on order, representing an investment of nearly $20bn, and the addition of their 100 000 berths necessitates an important 10$ annual expansion of the already well loaded community of cruise enthusiasts.
Financial backers of the new passenger tonnage believe that the cruise industry will continue to expand, noticeably in European waters, and there should be no difficulty filling an estimated 50% increase in berths over the next few years.
Went Broke
After creditors recently arrested ships of Premier Cruise line at whatever port they were lying, the crews had thereafter to resort to begging for sustenance.
One company cruise ship, Seawind Crown, arrested when it called at Barcelona with a load of trippers who required flights home, also left 232 male crew and 28 women without food, or other stores. Claims totalling $72m do not include the $50m owed the investment bank for mortgages covering five vessels.
Bondholders are reported to have already written off $170m, and chances of recovery from sale of ships is doubtful in the light of the value of what are old ships, about $75m.
An appeal was made to the International Transport Workers’ Federation to take control of ships so that funds could be raised to pay crew salaries. All the cruise ships of the company had been arrested by the American investment bank, and other creditors.
Crew of the Seawind Crown sought food from other ships in port, and from Spanish welfare bodies.
Millions of dollars are owed in charter fees for passenger vessels, and brokers who have been associated with liquidation of other cruise companies, allege that the only liquid assets in the bankruptcy documents of Premier total no more than $2m, composed of a bank account in Miami.
The passenger vessel Red Boat 11, which had previously been sailing as the Edinburgh Castle (no relation to the Cape mailship) was taken on charter from an American concern and ran up debts of more than $7m in months, $4m being the fuel bill, and $3m in dock charges The cruise company has paid off four of the five ship crews.
There is no rush to buy the bankrupt ships by others, because turbine propelled and steamers are considered quite unsuitable on grounds of economy for pleasure cruising. Only the economic diesel is acceptable now.
While there is invariably a good market for efficient passengers ships eligible for holiday cruising, there is not expected to be a rush for the more than 30 years old steamers of defunct Premier. Of course . . while the steamers succeeded in getting fair loads, fares were abnormally low to attract people to ride in an obsolete ship, and it is apparent now that the steamers no longer covered their operating expenses.
Another cruise company using old ships, Regency, has also bowed out.
WHEN IS BIG TOO BIG?
EVERYTHING connected with maritime transport is getting bigger!
Cruise ships of more than 150 000tg now coming on the sealanes are twice the tonnage of the QE2, and all liners of yore. And the fact there will be 5 000 passengers and crew on board the completed cruise ships, not surprisingly causes misgivings for sea safety organisations, which fear consequences of a fire at sea, or a need for abandoning in bad weather with hundreds of plus 70s among the passengers. Complements of up to 3 000 constitute a serious challenge to all sea safety organisations concerned with evacuation in time of emergency.
In event of accommodation fire, there are serious problems getting elderly passengers through smoke-filled alleys to disembarkation points. When a passenger vessel Scandinavia Star suffered fire 10 years ago, more than 150 people lost their lives from smoke inhalation before achieving their abandon ship stations.
In event of fire, passengers are told by alarms where to go to reach safety, strip lighting being installed for the purpose in some ships. This is difficult to discern in smoke-filled apartments, but when fire takes hold, how long must normal emergency lighting and communication equipment be expected to continue operating?
It is argued that crew training is the essential factor in time of fire and other shipboard emergencies, yet it is only in time of disaster that relative effectiveness of staff and efficiency of their training can be measured.
Second of five 142 000 tg ships, Explorer of the Seas, has been delivered to the Royal Caribbean cruise company at a finished cost of $450m for employment in those waters.
The container ships now coming from building yards include many bigger than predecessors, and port authorities, including South Africa, which originally provided facilities for carriers of 3 000 boxes in the belief that they would be the largest carriers, are having now to come to terms with ships lifting up to 10 000 units. Shipowners can provide evidence that economics prove bigger ships more viable that smaller units, and it is proving necessary for ports to make extensions to handle them the larger carriers.
Shipowners can provide figures to show that moving smaller numbers of containers is more costly per unit than when bigger, and fewer ships, can move substantially bigger loads.
It is recognised that for geological reasons many existing terminals do not lend themselves to major wharf extensions, and the Durban dock basin would not welcome loaded container ships the size of those now being built to serve other routes. But it is a moot point whether ships must be measured to suit projected ports of call, or must the ports provide necessary working wharves, and storage space for their boxes?
Apart from need for a suitable berth, the narrow entrance at Durban must be widened inevitably have influence on size of ship admitted, for should a long hulled carrier take a sheer in the existing narrow channel, the pile up at the dock entrance could constitute a major disaster.
The channel is to be widened a further 100m, to 240m which should please the Class 3 certificated pilots now entering the harbour service, and also relieve tension for Masters of deep draughted ships in time of windy manoeuvres in the harbour.
There is need also to expand container facilities at other Republic harbours, and the development of a new terminal north of Port Elizabeth should assure faster turn round of increased box cargoes worked to those parts.
Cape Town also needs to expand its container working facilities, but where?
Recognising the length of the latest container ships, and their resistance to wind, it is obvious that Durban must ensure conditions are right before the big carriers are allowed to be moved.
The heavy volume of box traffic across the Pacific has necessitated that North American terminals spend millions of dollars upgrading facilities to assure carriers receive a quick turn around.
Shorter spells in working ports was always advanced as one of the great advantages of the container era, but when cargos have to be handled in inadequate terminals, the box concept loses much of its virtue.
Aponte's Plans
More Cruise ships! That is the issue concerning enterprising Mediterranean Shipping Co, under leadership of go-getter, Gianluigi Aponte, who already operates three modest sized vessels, Monterey, Melody and Rhapsody, which have been carrying South African short-haul trippers from Durban. His ships are booked for weeks ahead, and his cruise department this year saw a 60% increase in business.
MSC is reported to have discussed plans with Italian yards for construction of one, or even two, 1 600 berth cruise ships.
It will be known in mid-January whether MSC is to process further passenger tonnage. Having hit the jackpot by entering the container business when he did 30 years ago, Aponte has developed a fleet of more than 120 carriers, and is now regarded one of the three biggest operators of box carriers world-wide.
The current demand for carriers on expanding world trades induces owners to buy second hand, often at inflated prices, because it takes more than two years now to get a big box carrier out of a heavily loaded shipyard.
BLACKLISTED OWNERS
T H E International Transporter Federation has come to the rescue of stranded ship staffs, and is black-listing the mainly Eastern European companies which fail to meet obligations towards their crews.
Greek owners, International Reefers, are suffering manning problems following their blacking by the ITWF as result of non-payment of wages since April to the mainly Romanian and Filipino crews in the Balboa Reefer, idle at Portland. The ship is under arrest, and release will only be considered when the International Reefer Services of Piraeus pays the crews the $60 320 that they are owed. Seven of the company Reefers are likely to be arrested when they make another stop during course of current voyages.
When invited by the ITF to make an inspection of the Balboa Reefer, safety inspectors found that the ship is actually out of class, and suffers numerous defects including faulty safety gear, and overdue certificates. A further seven ships of the Greek fleet of refrigerated carriers will be examined at the next port of call.
There are few fruitships down this end of Africa at this time of year, but the deciduous fruit begins to move again in January and the requisite carriers will have to be chartered on the open market. However carriers are so tightly squeezed by the freight and charter rates, that some owners have indicated intention of leaving their ships laid up until business along refrigerated trades improves.
UNPAID SEA STAFF
IT IS common cause that in recent times Romanian, Filipino, and some Greek seafarers have suffered acute economic problems when stranded in foreign ports without food or wages, after respective owners run into money troubles. Russian crews have now joined their company. Last month the staffs of six reefers threatened to scuttle their ships in St Petersburg harbour unless some $1,2m in unpaid wages were forthcoming from the Cypriot registered companies, believed to be Greek.
The reefers are anchored and have not paid dock dues since July last year. It is generally believed that the low level of freights paid to reefers -- as evident in this year’s fruit exports from the Republic -- dumped owners of the specialist ships in debt.
Since some of these are modern, and not yet paid off, the Royal Bank of Scotland, which provided loans for their building, is likely to seize them when they reach another terminal. But Government authority is required before the bankrupt ships can be auctioned in a Russian terminal.
Disposal of the modern vessels represents the only sure means of recouping funds expended by the fruitships, and it is significant that some owners have decided to leave their ships at lay-up moorings until rates of freight increase.
The South African fruit exporters have to cast around to find carriers at reasonable cost, but a fruit enthusiast may not necessarily be a keen grower, the shipping out refrigerated cargoes can be expensive. Unless there is demand for more export space, there is less prospect of the carriers using the port fruit export facilities.
PIRATES REBUFFED
THERE has been periodic reference in these pages down the years to the increasing operations, mainly in Far East waters, of pirates. They board ships from fast motorboats, hold up the crews, and rob them and the ship’s safe of valuables.
The tide turned last month when a recently inaugurated Malaysian task force succeeded in arrested a group of three alleged to have been responsible for 30 attacks on commercial shipping in recent months, stealing money and goods valued at more than $265 000.
The task force captured swords, grille cutters and other equipment used in their operations. The security forces believe there remains a third platoon of pirates who must be picked up.
The International Maritime Bureau piracy centre in Kuala Lampur confirms that whereas there were only two piracy attacks in the Strait of Malacca in the whole of last year, there have been no fewer than 32 attacks this year, and the security forces are concerned also by the number of kidnappings perpetrated by pirates. Governments in the region have been told of the serious concern of the Maritime Bureau for the safety of merchant seamen since ships are fired at by the pirates intending to board. One of the ships attacked was the Dea Champion, sailing on behalf of Shell with a valuable consignment of drilling equipment.
There were 294 piracy attacks in Far East waters during the first nine months of the year, compared with 300 incidents in the whole of 1999 The economic hassles of some Far East countries is believed to be responsible for increased recruits to the piracy profession, and these were encouraged when raids on some vessels produced up to $30 000 taken from the Master’s safe under gun threat.
The water police and naval forces of some countries are not without their successes, however, and Malaysian water patrols in October in the Straits of Malacca ran down leaders of a piracy syndicate. But it is feared successors are in training and could be active in 2001.
The Malaysians have on order a flotilla of 15 high speed patrol boats capable of operating at up to 40 knots, with a contract valued at US $2,1m.
Unfortunately, the news of success of some pirates in the Far East has encouraged entry of less qualified, but equally dangerous operators in North-East Africa, off West Africa, and off the East coast of South America.
Traders in Eastern waters are fearful that operations of pirates could lead to established lines curtailing their operations in what they may consider dangerous waters. Piracy on a smaller scale has also been reported from West Africa, and Brazil.
Some shipmasters accustomed to running the gauntlet through pirate infested waters, have suggested that officers when on watch should carry arms. But there is strong objection to this proposal from other experienced masters who throw up their hands, not in surrender, but in horror at the thought of inexperienced staff starting a shooting war in mid-ocean at midnight.
The only means for combating the increasing piracy menace is said to be through increased inshore naval patrols, and for an efficient radio watch by patrol vessels for emergency calls on channel 16 from ships under attack. It is essential in these circumstances that the precise position of the attacked ship is publicised as a warning to others, and naval patrols in suspect areas must be effectively schooled for handling fast pirate motorboats.
RUSTY TANKERS
WHEN the 1974 vintage tanker, Maria S, arrived in Amsterdam a few weeks ago the Dutch inspectors soon set about examining structure of the Italian-owned, Maltese registered vessel from the same stable as the Erika, which broke in two at the turn of the year off the French coast. The Maria S had not been criticised by Inspectors when examined at other ports.
The Dutch, however, were satisfied that the 33 980 tdw Maria S needed a multi-million dollar renovation, or should otherwise go straight to a shipbreaking yard.
The tanker had previously been delayed for months in Augusta because of a variety of financial problems, and had her Classification suspended by the Italian society because of the wasted condition of hull structures. She has been sailing short voyages under temporary award of Class over, but the Amsterdam call appears to be her last.
It is apparent that the modest sized tankers are the spearpoint of port inspectors at a time when there is wide discussion about length of tenure regarded adequate for the remaining single skin tankers in world oil trades.
Unpopular Ships
Managers of the Cyprus maritime register are so irritated by the adverse reports of maintenance of some of the Greek-owned ships on its books, that offending owners are being advised that the Cypriot flag can no longer be used by them.
The adverse report of the condition of the Greek-owned tanker, Ritas, which was arrested in Cape Town earlier this year, and has now been sold for scrap, determined the Cypriots to reject from its register all the ships owned by the Greek company.
The decision of the Cypriot authorities was reportedly the outcome of a series of adverse reports concerning ships owned by the Greek company. And the Classification Society, Bureau Veritas has instructed that when the ships of the offending company reach port, the safety management certificates must be returned to the Class Society.
Two other Classification Societies, Lloyd’s Register and Det Norske Veritas, have instructed their oversea surveyors not to issue further certificates to the Greek-owned carriers.
Meanwhile, the Italians who have suffered pollution problems from sub-standard ships which deposit oil on coastal waters, are trying to devise a formula which would enable them keep sub-standard vessels away from their seaboard. When tankers have run aground they often have subsequently spilled hundreds of tons of either cargo, or domestic fuel oil on the sea surface.
PASSENGER SHIPS SOLD OFF
PASSENGER ships are less attractive to shipbreakers, but are nevertheless being accepted as an alternative to the bulkers and tankers whose owners are reluctant to curtail trading in what are prosperous times. Indian scrappers are buying some of the large number of time-expired cruise ships.
Extensive passenger accommodation is little more than a nuisance for the steel hungry shipbreakers, and their workers spend days knocking down cabin partitions and clearing public rooms of worthless structure.
Original owners of these passenger ships were reluctant to dispose of them because their value had been sharply written down on the books. They continued successful sailing with healthy complements assuring a fair return. But there has been an increase each year in the gallery of old passenger vessels, and the need for complying with increasingly strict demands of safety organisation sees increasing numbers coming on the second-hand market.
Greeks are susceptible to negative comments about old ships following the succession of sinkings in home waters by a number of passenger ferries. Numbers of old cruise ships have been laid up in recent months hoping for additional passenger patronage in an increasingly popular East Mediterranean industry. These are the vessels now being sold off.
While the mainly Greek owners of these obsolete passenger ships cannot secure prices they seek from breakers, they are selling for what they can get. There is a fear their value will decline rather than improve.
TANKER TALES
IT is a year since the fuel laden tanker Erika cracked, and then split in two off the French coast. Her foundering delivered about 15 000 tons of oil to the nearby French beaches, and the world-wide discussion about pollution was intensified.
Since then, in recent weeks a chemically laden tanker, Ievoli Sun, succumbed to wild weather and foundered while under tow in the same area. It was hoped the styrene, and isopropyl alcohol cargo together totalling 5 000 tons would dissolve and evaporate in the sea without creating further pollution problems along the shoreline. There was also about 170 tons of fuel, and 16 tons of lubricating oil in the ship’s double bottom.
Scientists said that the cargo would either solidify in the tanks or evaporate. But it was surprising that a 10-years old tanker should prove inadequate to withstand what was regarded weather not beyond capacity of a tanker of the vintage and proportions.
The sensitivity of anti-pollution bodies to marine casualty has never been more pronounced, and it is fortunate that casualties involving tankers have been with vessels of only modest size.
The parcels of up to 500 000 tons of crude sailing in ULCCs in all parts of the world have, fortunately, to date suffered few serious casualties, but a shipment of these proportions foundering off any developed seaboard could be a massive disaster. Some of these enormous carriers have been sailing since the mid-70s, and are reaping such healthy reward at a time of demand for crude carriers, that respective owners put them through their fifth survey and keep them sailing. There have fortunately been few serious spill casualties with these massive ships, but the thought of 500 000 tons of crude going adrift in a marine casualty off a sophisticated coastline is frightening.
The Cape route has provided crude cargoes from PG to the US or Europe, and from West Africa to the Orient, with hundreds of safe passages annually, and there appears no early likelihood of the scene changing either. Suez cannot possibly accept laden VLCCs, and the shipments from West African sources to the Far East have no alternative but to come round the Cape. All these tankers represent fair business for the off-limits chandling and crew changes, however.
GERMAN NIGHT STOP
SUCH has been the retreat from the maritime profession by European countries, the German managers must find occupants for what was a popular seamens’ home in Hamburg. Night stoppers, other than seafarers, are now invited to use the Seafarer’s Inn. The cost is between Dm50 and Dm 60 a night.
The management of the Inn says the cuisine is strictly Deutsch, and without luxuries common to tourist hotels. The home, formerly ostensibly for seafarers, is now available to everybody if the 89 rooms are to be occupied, and landlubber residents can savour the irritation of seafarers who down the years had to accustom themselves to join a queue for morning ablutions.
FROM THE EDITOR’S DESK
WHEN this non-commercial digest made its maiden sally into the maritime portfolio at the Cape in the belief that representatives of the shipping industry sought a source of up-to-date information of international developments, the one-man producer could hardly have expected it would maintain course non-stop for 11 years. Response from the outset was exceptional, and members of the shipping industry sought permission to make further copies to facilitate wider circulation. This was immediately granted, and it transpired that every South African - owned commercial ship received copies of the monthly.
Publishing was an act of faith, the budgetting for meeting on-going costs of printing and postage being borne by the producer. However, thanks to determination of representatives of the shipping industry that it should remain on course, periodic donations helped.
Seen as something of a hobby for a superannuated journalist, there was never intention of making it a commercial trade journal. This attitude secured surprise and even castigation from publishers who initiated periodical offers to purchase.
Retired for 20 years, after 45 years full time daily association (apart from war years) with maritime news, the Editor of a one-man production may conceivably be seen to be eligible by commercial publishers as a salaried employee, providing crumbs off the table of a highly tuned commercial entity. That was not to be!
It is hoped to keep SeaViews on course into 2001. The size of the monthly issues confirms that there remains a formidable reservoir of maritime news, and the Jan/Feb issue should conceivably provide insight to trends of sea trade in coming months. Well he might! .
With, or without financial resources, tenure and size of the digest must be limited. Its future also is inevitably determined by an age factor, and it is a relief to know that the Undertaker says he can afford to wait!
Meanwhile, seasonal greetings are extended to all.
GY