
Volume 10, No 8. September 2000
Twenty-eight pages, privately distributed. Sustained by
sponsorship NOT advertisements. Latest information issued with the compliments of sponsors
, and distributed by hosts, Barwil-World Wide Maritime, with marine writer George Young,
ph (+27 21) 421-5557, P O Box 1662, Cape Town 8000. Fax (+27 21) 421-4813. Views expressed
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RARELY WAS IT SO GOOD
INTERNATIONAL shipping, traditionally disposed to complain when business is bad and earnings low, is saying little about current prosperity blessing the industry with ships of all types and sizes enjoying healthy employment.
Building yards are receiving a spin-off with orders coming in for tankers, bulkers and cruise ships. There is currently difficulty finding sufficient tankers to meet demand for prompt oil deliveries.
Responsible companies like Canadian Pacific, which now runs the Canada-SA service, is reporting doubling profit in recent months, and a North Atlantic carrier reported a 250% increase in second quarter profits. Like tankers, they have rarely had it so good.
Losers continue to be the operators of Reefer ships. Cargoes are few and rates are low. The South African annual fruit exports helped but little, and some of the ships which came down here to load on charter, have now retired to lay-up berths, and some may not come out again unless level of earnings look up.
Cruise liners have been doing fairly well, but respective operators are fearful of effects of an over-supply of berths when a dozen newcomers enter the trade in the next few months. The share prices of cruise companies on the world stock markets have reflected the concern about long term employment of so many carriers.
History has recorded that passenger ships suffer a downturn in clients at the first sign of a downturn in world-wide financial health, and it only requires a small proportion of empty liner berths for a cruise ship to cease sailing profitably.
Current buoyant tanker activity is referred to later.
UPDATING SA PORTS
SATISFACTION is expressed at the announcement by Transnet that it plans to expend R4,3 billion souping up its harbours over the next three years to meet pressing demands for rehabilitation of existing plant, and addition of new.
Not surprisingly, Richards Bay is to enjoy a major quota, R244m, in order to provide cargo facilities for which the existing harbour at Durban has not the space. Port Elizabeth, Cape Town, Saldanha and East London are all to enjoy attention.
At Cape Town the big dry-dock is badly in need of a facelift, and mobile cranes should be rehabilitated since mobility is currently dependent on availability of a heavy truck to push cranes along their rails. But Portnet, nevertheless, announced the annual increase in tariffs, and dry-dock hire charges were raised in April by 20%. This development reduced economic virtues for owners contemplating hiring South African dry-docks, instead of others nearer at hand. And the Republic may inevitably have to count on losing dollar revenue.
The big Cape Town dry-dock had enjoyed almost non-stop, year round occupancy, and would-be clients are warned to book the facility six months in advance
It is widely feared that South African terminals are not keeping pace with the demands of expanding container movements, and the advent of carriers providing twice the cargo capacity of the largest ships currently frequenting Republic terminals necessitates costly and prompt extension of existing wharves, and other facilities. Economics have determined owners to build bigger carriers, and this means they expect world ports to conform.
New Zealand is dealing with the same problem in face of the ever-larger cargoes in ever-larger carriers. There is even talk of one main terminal being used by the big box ships, and cargo for other ports transhipped to coasters.
It is doubtful if this would be acceptable in South Africa because of the cost of double handling, and also the time factor. It would necessitate indigenous owners providing substantially larger coasters to absorb the amount of boxed imports now moving. The coasting trade since WW2 has not been a profitable enterprise, however.
It makes for costly sea transport when a massive box carrier must go from port to port handling a handful of containers in each, the voyages taking weeks instead of days.
FOREIGN CURRENCY
In South Africa the marine repair facet constitutes an important source of foreign currency earnings, but it proves imperative that indigenous marine engineering enterprise be provided by Portnet with dry-dock and wharf space for ship repairs, thus assuring oversea clients of a fast turn around in South African terminals. The industry would collapse if it were wholly dependent on marine casualties for a living.
It was hoped that by this time the dry-docks would have come under control of private enterprise, but negotiations have been at stop -start for a decade, and some of the plant decayed in the interim. There appears to be no urgency for achieving a solution.
Inadequacy of existing facilities cause considerable delays to ships, which must anchor to await their turn at the Durban and Cape Town terminals. But if there is insistence on provision of wharfage for carriers with up to 12 000 containers, existing harbours would be found wanting to accommodate the size ships bringing boxes. Then there is the interminable need for adequate storage space, or sufficient wharfage and yards for the boxes, not forgetting storage of empties pending return to original consignors.
South African exports are inadequate to fill and return the large numbers of boxes emptied out of imports.
Port Elizabeth has since the advent of containerisation been a useful terminal for modest numbers of boxes, including those consigned to Gauteng, and this flow of traffic can continue unless Richards Bay is to be made the primary terminal for consignments to and from the interior. Dock extensions and a new port development near Port Elizabeth should revolutionise standards of working.
There appears little, or no progress, toward privatisation of dock facilities in South Africa and it is assumed that both the formidable financial commitment required of private enterprise, and the control of the facilities between State and private management remain a stumbling block. Needless to say, the Government will seek a high rent for the dry-dock from consortia controlling it , and it is generally believed that it is not policy to sell harbour facets, but only to lease them .
SHIP REPAIR INDUSTRY
THERE was a time when Durban was regarded the main shipbuilder and repair terminal in South Africa, but recent years have proved this no longer to be the case, and reports circulating in Britain suggest that the hard-pressed Dorbyl operation has linked with a newcomer, International Marine Construction, with the aim of rejuvenating business.
While at times brisk, there has on the other hand been a regular flow of repair traffic through Cape Town, and extensive Globe Engineering shops have secured valuable dollar paying contracts from oil drilling operators off the West African coast. Past satisfaction with standard of work at Cape Town resulted in successive contracts, with the addition of the indigenously owned gem ship workings off the desert seaboard. Shipyards are jealous of their work standard, and recognise that one dissatisfied customer can result in bad news spreading, and further contracts subsequently suffering decline.
Cape yards have become thoroughly acquainted with nature of requirements on a variety of rigs, crane ships, and the assortment of tenders accompanying drilling operations. There is, in fact, every likelihood of the repair business expanding, and in absence of suitable repair facilities north of the Cape, it is understandable when existing indigenous enterprise tools up for contracts. However, it is also true to say that without craft from the numerous drilling operations, Cape yards could have suffered some of the hardships of Durban.
There is also general ship repair work to other than mining ships, and numbers of foreign owners have sought drawing of tailshafts, and underwater servicing in Cape Town of their bulk carriers.
Demand for shipyard services has been sufficiently robust at times to make Globe yards decline additional work. The workforce of skilled artisans has already been substantially expanded to facilitate quick turn around for ships coming in for repair.
REPAIR CRITICISED
The British Government may have been better advised to utilise the Cape facilities for overhaul of its island relief passenger/cargo motorship, St Helena.
A report from the British Marine Accident and Investigation Branch confirms that the St Helena suffered serious disablement last year as a result of poor engineering practice and supervision in a UK yard.
After leaving Cardiff for the Cape in course of its regular service to the Atlantic islands and the Cape, the ship suffered engine hassles from the outset, and when serious bearing problems arose in the starboard crankshaft, the vessel aborted its voyage and put into Brest on one engine. Thereafter she returned to Britain, and there was some difficulty finding a suitable vessel as a charter stand-in.
The Board report reinforces need for staff engaged in a major engine overhaul to adhere to guidance notes, removal of cooling water from cylinder liners, and closer supervision of lubrication. The various alarms in the engine room have to be acted upon, and not ignored.
The St Helena does effect minor work when necessary during her 48 hours turn-around at Cape Town, but the reputation enjoyed by Cape yards, and the favourable rates of exchange, are worthy of attracting consistent employment on regular carriers.
The St Helena is now the only remaining British-flagged passenger/cargo vessel.
NAVAL FACELIFT
In Simon’s Town, the Russian built, ice-strengthened fleet auxiliary, Outeniqua, recently underwent a major refit in dry-dock, corresponding with a major survey and overhaul applied to commercial ships, cost running to about R2m. The contract was effected by Globe shipyards, and the specialist vessel will continue to serve as relief carrier attending bases in the Antarctic.
While it is conceded that Durban has suffered a scarcity of ship repair work, this has not been the case at the Cape. It would, however, be interesting to see whether the merging of two Durban complexes will bring in sufficient revenue to justify updating of workshops and essential facilities, and whether one of the partners may eventually see virtue in making an exit from the marine engineering sector. What will become of the Cape branch of Dorbyl?
TRAINING SCHEME SINKS!
THE gallant attempt by the British to reinstate cadet training at sea for the merchant service has come to grief after loss by collision in Matanzas harbour, Venezuela, of the general cargo motorship, Global Mariner. With no fewer than three pilots on the bridge, the 32 crew, including the Master’s wife and nine cadets, got off in a hurry when two holds laden with a cargo of steel coils flooded, and the ship settled in three minutes. Only the top of the wheelhouse and funnel were above water. Two tugs had been attending the ship while being hauled off its berth when the collision occurred.
The 18 000tdw freighter was struck by the scarcely appropriately named Atlantic Crusader, and by virtue of its 21 years vintage, is unlikely to be rehabilitated after the essential refloating contract. The hulk is likely to be towed to a scrapyard, although Venezuela is a long way from the main shipbreakers in India.
With the best will in the world, responsible organisations endeavouring to attract young men to nautical careers suffer problems, and it is obviously no longer regarded a glamorous occupation. The Scottish scheme for sending cadets to sea in the Global Mariner was a positive attempt to resuscitate training of Britons for what by appearances is a declining commercial shipping portfolio. Advantage of the Global Mariner, formerly owned by the Bank Line, then by Blue Star, Booth and Tamahine, was her employment simultaneously as a general cargo vessel, thereby initiating cadets into the workings of a freighter from their very first trip to sea. Unfortunately, there is no other western owned or operated ship doing this, and cadets are schooled in shore depots, which hardly propagates a maritime atmosphere, or encourages interest in a nautical career.
The emphasis on safety at sea these days has unintentionally made ocean voyaging no more exciting that a bus ride, and an officer sees his routine four hour stints as merely spells of watching the radar, adding position info to the log, and thereafter watching the clock.
It is doubtful if the dual purpose of the Global Mariner as a commercial carrier and a training ship, could have produced much revenue for her financial backers, but conceivably regarded it as a contribution toward the urgent need for more sea staff.
There have been numerous cases of a single night-watch officer falling asleep on the job, and awakening with a jerk when the ship hit the beach. There are also alarms to warn of potential collision with other vessels, but these have not prevented some classic casualties, including one in the English channel last year when a cruise liner on a clear night sailed into the side of a container ship.
We have had two cargo ships colliding head-on off the Cape West coast, then right here in Table Bay, a box carrier nearly succeeded in sinking a wheat-laden bulker. Yes . . . watch officer in both ships could see each other on radar, if only they had taken the trouble to look, and then take appropriate action!
It is ironic when a ship dedicated to training teenagers in safe navigation like the Global Mariner, is itself counted among casualties.
There have been total losses in recent times from collision involving vessels equipped with all the modern plant to assure safety. But the International Rules for safety of navigation appear to be a big fogged themselves when they warn a mariner with a broken down ship to keep clear of other traffic. How would he get out of the way of a vessel, which he may observe on his radar to be approaching? And if a shipmaster is fortunate to have a fast ship under his feet, he is warned to keep out of the way of any vessel he is overhauling.
Would this advice not have been appropriate for a first year cadet, instead of a master mariner?
SAFETY RULES
In an age when both box liners, and short-haul ferries sail at higher speed than the luxury Atlantic liners of yore, there are nevertheless still the conventional modest speed tramps, whose Masters sometimes have difficulty determining definition of the term "moderate speed" when navigating in fog. For a ten knot tramp to reduce to half speed would enable steerage way at five knots. But these cross-Channel, and short-haul ferries that operate at 40 knots, to reduce to even quarter speed they sail faster than the tramp’s best.
For the modern 25 knot container ships laden with millions of dollars worth of goods in 6 000 boxes, what is a safe speed in fog? If they heave to in busy waters, the massive boxships are in danger of being run down by another vessel. And if containers go overboard, these represent an additional hazard to navigation, even more than oil pollution, about which we hear so much these days.
Last northern winter on the Pacific, hundreds of laden containers went overboard from ships heading for the US with cargoes from the Orient, some shipmasters were unwise enough to try to maintain schedule in vicious weather.
Safety of navigation still presents problems, however.
Focus of the debate about safety of life at sea now includes variations of traditional risks and increased dangers emanating from piracy, now increasingly active in Far East waters, and to a lesser extent in West and North-East Africa. Ships and their cargoes have been stolen, and it sometimes takes months for the rightful owners to locate valuable shipments. There have already been more than 160 incidents of piracy this year, an increase of 40% over the figure of 1999.
Crews from ships captured in Chinese waters are sent away in lifeboats, and left to fend for themselves by the pirate crews who change name and appearance of the vessels they commandeer.
Owners in Japan have only recently secured return of their tanker, Global Mars and its 6 000 tons of palm oil which was taken by 20 armed pirates near Hong Kong in February with her crew of 17 thereafter held hostage for a fortnight before being sent off in the lifeboats.
Chinese naval forces located the tanker wearing a new name of Belawan in June, when it was about 80km west of Hong Kong, and a boarding party arrested its crew, which at that time consisted of 11 Filipinos and nine Burmese, and confiscated arms.
Records confirm that cases of piracy in Eastern waters in the first six months of this year were 60% up on those of the corresponding period of 1999. There is serious concern when pirates, after boarding, herd officers off the bridge and take command themselves. In the case of a laden VLCC, Chaumont,in the Singapore Strait, only the pirates navigated the huge vessel while the officers were being searched, and interrogated .
Recent reports of piracy come from Malaysia where a laden bulk carrier, Ali Ekninci en route from Singapore to Italy, was boarded by five pirates flashing long knives. They kept the crew at bay while they stole $250 000 from the Captain’s safe, and after going through crew quarters, took a variety of personal items.
Other ships suffer loss of life among crews at the hands of pirates. The master of a small Taiwan vessel, Shuenn Man No 12 was killed when pirates opened fire on the vessel near Singapore, before coming alongside and boarding. The pirates had disguised their vessel to resemble an Indonesian navy ship, and after the boarding party could find nothing of value aboard the Shuenn Man No 12, they disembarked again half an hour later empty handed.
There have been more attacks on ships while they were anchored and working cargoes in small island terminals. Well-trained shipboard staffs are increasing problems for boarding by pirates, however, and half of the attacks this year were foiled before the raiders could get on board. There are more attacks this year by raiders using weapons.
Ingenuity on the part of a ship staff proved a disaster for unwise pirates who secured their fast boat to the ship’s anchor. A member of the ship’s crew had presence of mind to release the brake on the windlass, and this proved disastrous for the raiders and their boat.
Maritime and defence departments of four Asian countries are now endeavouring to form a united front to expel the bandits from their waters, because there has been reluctance in the past to exchange intelligence reports, and to arrest suspected pirates.
It is now the rule for crew members to maintain a guard on each side of ships at night when sailing in Chinese waters, and to report by radio approach of pirates intent on boarding from fast outboard engined boats. In an age of smaller crews, there is difficulty mounting a proper guard on low freeboard tankers or bulkers, which lend themselves to boarding from small boats.
CANADIAN SEA STAFF
CANADA shares the problem of other western countries in the search for officer staff for commercial shipping. But a report from Vancouver suggests one good way for overcoming the problem was found by a manning agency run by an enterprising woman, Mrs Heather Hathorn, who has 5 500 names on file, and was successful in providing hundreds of flag-of-convenience ships with appropriate staff.
Canada, like all other western countries, has no important commercial shipping portfolio and men wishing to sail foreign have to accept assignments in the f-o-c ships.
Thanks to the interest of Mrs Hathorn in the development of a national maritime portfolio, she has been a driving force behind schemes for cadet training at the British Columbia Institute of Technology.
Teenagers rarely show real interest in a maritime career until they hear about the level of remuneration where, in tankers, the Master can take home $10,000 a month. And if an officer prefers the strict dignity of a cruise liner, he still can secure a Master’s job offering up to $8,000 a month on securing his Class one certificate.
The cruise ships working out of North American terminals are making increasing use of Canadian staffs, and since Mrs Hathorn was herserlf at sea for a period, she is conversant with the specific needs of particular ships, and her agency has been successful in providing the right clients with the right staff. She has gone on record with the comment that anybody who has been to sea sees the world in a different light, and things are in perspective.
South Africa has only a small commercial shipping portfolio, but its production of deck and engineer officers is minimal. Those who secure certificates of competency are sought after by the better paying Scandinavian tanker companies, although Safmarine, now a 100% Danish owned entity, also seeks them.
The only 100% South African owned shipping operation now is Unicorn Lines at Durban.
CRUISE TRIPPERS
PROLIFERATION of cruise ships, ostensibly for northern waters, 14 coming into service from shipyards before the year-end, another 15 next year, 14 in 2002, and 11 in 2003, are making it necessary for owners and travel interests to muster additional clientele. A number of orders await confirming before the end of the year.
Operators are now seeking to attract holidaymakers accustomed to vacationing inland, or on the coast, to spend their holidays in the luxury and entertainment facilities of modern cruise ships. Meanwhile, prices of shares of cruise companies have been affected, and there is no doubt but that over-supply of available berths has led to a fall in profits. Some concerns, including Evergreen, have postponed ordering additional passenger tonnage, and it would cause no surprise if plans were actually scrapped, like a proposed merger of P&O with the American carrier, Festival. Competition for the available cruise clientele is now vigorous.
Chief American cruise executive, Micky Arisan, who heads the powerful Carnival group, concedes that a decline of 60% in value of cruise company shares is result of downturn after initial euphoria attending the cruise portfolio. All the big operators have felt the draught, and some have conducted a shares buy-back. Arisan, however, expects earnings by his fleet this year to be 10% up on those of last fiscal year.
Share prices of cruise liner companies rocketed two years ago when it appeared that, by introducing more and larger carriers, the industry regarded sky as the limit with earnings increasing 10% annually. But fears about over-tonnaging in the industry are blamed for share prices tumbling, although Micky Arisan gives the assurance his company still is sailing profitably. The building of ever more luxurious ships springs from a belief that clients are "quality conscious"
There were negotiations and proposals that the formidable P&O cruise entity courted marriage with Arison’s Carnival fleet, but collapse of the cruise industry’s share price in recent weeks put the lid on further discussion. While P & O was reportedly prepared to expend $400m for control of Carnival, news of the negotiations did nothing to improve value of shares, and there was a reported 11% loss of value of P&O stock.
While the deal with Carnival is shelved, P&O is reported to be increasing its interest in other travel operations in the UK.
Talks between other cruise companies have also been temporarily shelved until there can be some assurance that the cruise industry will hold up, particularly when popular routes are to be flooded in the next few years by a veritable armada of bigger carriers.
Festival is currently strengthening its ties with Greek interests, which are well disposed to shipping investments involving foreign cruising, and Festival finds no difficulty securing shareholders in Greece.
ICE CRUISING
There is increasing interest by cruise passengers in voyages to the Polar regions, and German principals, Hapag Lloyd with two ships, Bremen and Hanseatic, are discussing building tonnage equipped for sailing waters of the Arctic and Antarctic. Demand for berths in the present pair traversing the fringe of polar seas has stimulated discussion, and a company spokeswoman confirms that a German shipyard has been approached with a view to building a custom designed polar cruise liner. Other yards may also be approached.
Apart from being required to conform to specifications for ships sailing in ice, the passenger accommodation will need to assure consistent temperature for voyage comfort in sub-zero climate. Antarctic cruises aboard the specially designed and built mv Lindblad Explorer began in 1969.
Some people are fascinated by sailing on ice covered sea, in permanent daylight and with possibility of visiting territory usually the stamping ground of professional explorers and scientists.
FORMER BUSINESS
Whaling ships in former years used Cape Town as last port before venturing down to the fringes of the ice for commercial slaughter of whales, which researchers allege sharply reduced by thousands the mammal population of the Antarctic. With price of whale oil increasing, commercial operators now want to return to the killing grounds, but find the opposition from Green Peace, and other organisations formidable
Successive generations of whales are slow growing, and the slaughter in the 1930s decimated stocks so that the absence of operations through WW2 was not a long enough break to afford restocking of the Antarctic waters.
Whale factory ships were valuable in WW2 because they commended themselves for use as tankers, and two South African owned factory ships Uniwaleco and Tafelberg were sunk by U-boats while engaged carrying fuel oil from the US to Britain for use by the RN.
The 25 000 tdw Tafelberg, owned by Irvin and Johnson, was laid up in Norway when the war started, and as a British ship she was requisitioned by the British War Ministry, and placed under control of Salvesens of Leith, whose own factory ships also were requisitioned.
The Tafelberg was renamed Empire Heritage, and was commanded by Capt JC Jamieson, senior master of Salvesens. She was fortunate in sailing in convoys through submarine infested waters for three years without serious incident, but on September 8, 1944 when 25 miles north-west of Malin Head, on her way to a British port with American furnace oil she was torpedoed.
In addition to her normal crew of 47, the Empire Heritage carried 52 passengers from New York in the former whaling crew quarters.
The torpedo explosion set the oil cargo on fire, and the ship settled so fast by the stern there was difficulty getting boats down, and the entire complement of passengers, crew, eight defence gunners, and a naval signalman were lost.
Irvin and Johnson did not revive their pelagic whaling after the war. Neither did they revive their sealing operations at Kerguelen.
The smaller and older factory ship, Uniwaleco, owned in Durban, was also requisitioned by the British War Ministry, and had 15 000 tons of fuel oil for Freetown from Curacao when she was torpedoed 20 miles East of St Vincent W.I., and 13 of her crew of 51 were lost. They are believed to have been killed by the torpedo explosion.
One useful spin-off from the whaling industry in WW2 was the presence in Cape Town of numerous modern Norwegian catchers, which commended themselves for fitting out as anti-U Boat chasers. The indigenous Seaward Defence Force composed these craft, the catcher, Southern Barrier, being respected as the commodore ship, because of her 15 knots speed.
South Africa has no part in the sharply reduced pelagic whaling operations, and popular feeling about the slaughter is likely to ensure that operations internationally will be strictly limited. But it is regarded quite unlikely that the Republic would again engaged in the industry.
VIBRATION BOGEY
Owners of the multi-million dollar cruise ships now coming from building yards, or in course of erection embodying new types of propulsion, suffer a fear bogey in case their new tonnage is afflicted by vibration sufficient to deter passenger support.
Advent of new propulsion methods, including the azipod system, have still to prove themselves, but in the second half of this year the $350m French built cruise ship Millennium showed signs of producing vibration in certain state of sea. There is no greater "off putter" of passenger support than reports of vibration in a ship. And the fact there are three sister ships in course of construction necessitates urgent attention to the subject.
The unique engine arrangement of the quartet is a gas turbine attached to the relatively recently developed Azipod system, whereby a traditional rudder is replaced by propellers themselves changing direction , and providing manoeuvrability not formerly achieved by a large ship.
The Azipod patent is now used extensively by omni-directional harbour tugs of the type now used in South African harbours.
French builders of the Millennium are reported to be holding themselves responsible for making good any vibration hassles in the new liners, and it is certain that other cruise operators when contemplating updating their fleet with ships using the Azipod system, will need to be assured that various conditions of sea will not produce vibration in the passenger accommodation. Unless the problem in the Millennium is overcome, it is likely that choice of main engines in the sisters now in building will be changed .
OLD SHIPS RETAINED
Recent experience also confirms apparent reluctance of owners to dispose of old passenger ships while there is potential business among low-fare trippers, and it is significant that many cruise ships are more than 30 years old, including the QE2. Small-time owners buy superannuated ships from the big companies at low cost, resulting in a remarkably small flow of passenger vessels to shipbreakers, and a surplus of passenger berths.
A down-turn in bookings consistently with entry of ever-larger carriers over the next few years could initiate a bigger flow of superannuated cruise ships to Asian break-up yards. Meanwhile, the veteran carriers offering substantially lower fares, because their own overheads are lower, constitute keen competition for the multi-million dollar cruise ships from mainly European shipyards.
Cruise passengers in the Caribbean are invariably attracted to a new ship, and there will be ample opportunity over the next three years to try out the newcomers to the industry. The luxury and attractions in the newest ships are invariably major talking points where agents endeavour to fill the many empty berths.
Size is now the emphasis, and some of the new entries are more than 100 000 tg, with accommodation for up to 3 000 passengers. And it is expected that the Cunarder, currently referred to as the Queen Mary, building in French yards, will be more than 150 000 tons gross, and she could have difficulty finding dry-docks capable of accepting her.
It is no secret that the entry of so many ships involving security of passengers and crew are a source of grave concern for those connected with issues of safety of life. Passenger complements in ships this century are now about double those carried by the Titanic on her fateful maiden voyage in 1912, when she struck ice and foundered with loss of more than 1 400 passengers and crew. Total of passenger and crew complement was half that of an increasing number of ships sailing in the 21st Century.
UNPROFITABLE CARGOES
OWNERS of refrigerated ships (reefers) are this year counting their losses because of the low charter rates accorded their specialised carriers. South Africa’s fruit export season provided work, but little profit for the carriers, and it is noted that owners are electing to empty out to shipbreakers some of the older carriers. Scores of others have gone to lay-up moorings to await better times, and it is certain that cargoes next year must pay higher freights in order to secure requisite carriers.
Experienced crews are guarded about accepting posts in reefers because of the insecurity of tenure, and the risk of being paid off in the export off-season.
Unfortunately, the banana exports from Central America, which formerly followed the fruit cargoes from South Africa, have also been paying little, and there are fears that future generations of fruit exporters may have difficulty securing ships to move out annual crops unless accorded sufficient improved inducement.
It is noteworthy that a flotilla of fruitships that were formerly owned in South Africa, were disposed of about two years ago when employment difficulties first manifest.
Problem of refrigerated ships is that they have difficulty finding employment in the off-season, and it is not possible to stow in the insulated holds rough cargo, or even general cargo which could damage structure.
The healthy export cereal season from South Africa has in recent weeks seen cargoes going out of Durban and Richards Bay.
One chartered ship, Stenberg, had to forego loading a 20 000 ton maize cargo at Durban for Turkey when it was established that the vessel had hull damage, having apparently struck bottom in course of the voyage from the Far East, and suffered numerous longitudinal cracks affecting seaworthiness of the ship. The maize cargo was transhipped to another vessel, Nicolo Elisa, so that the Stenberg could undergo survey and necessary repair under supervision of Bureau Veritas, the Classification society.
MAROONED CREW
WEST African ports are good places to keep clear of when a ship runs into legal hassles.
The crew of the 11,750 tdw freighter, Peter, has been refused permission to leave Libreville since their ship was sunk by collision with another vessel in June. Their passports have been confiscated.
The Gabon Government initially claimed $7,5m for wreck removal, but this was eventually reduced to $3m, which the legal advisers of the Peter regard nothing more than a ransom demand.
The Greek owners of the Peter have endeavoured to meet wage claims of the crew for the past three months now living in a small hotel at Libreville. But the company says it has not resources to indefinitely pay salaries for the Romanian officers and Ukraine seafarers.
Representations through consular offices by Colombian, Greek, Maltese and Ukrainian representatives secured no response. The ship’s insurers have refused to meet what they regard are unreasonable demands from the Gabon government.
In a statement, the ship’s owners say that the demand for $3m is without any legal basis whatever, and constitutes nothing more than a ransom demand.
All avenues are being explored in the efforts to get the crew out of the country, and back to their homes.
ASIAN SHIPBUILDING THRIVES
PROLIFERATION of newbuildings ordered from Asian yards by western owners not surprisingly also accounts for a parallel industry of building massive diesel engines, more powerful than any elsewhere. In former years this equipment was a virtual monopoly of European and Scandinavian industry, but it is significant that Far East production provides not only conventional marine diesels under licence from European principals, but includes larger and more sophisticated plant. Marine diesels of up to 80,000 bhp are now coming from S.Korean factories and are driving some of the world’s largest single screw container ships across the Pacific at 25 knots.
Hyundai Heavy industries looks like achieving a world record for its output this year of diesels aggregating 4,25m bhp, and auxiliaries totalling more than 800,000 bhp.
The S.Korean engine builders are dealing with orders for exceptionally high powered units for container ships, and it is recognised that the construction of a 100,000 bhp diesel is now only a year or two off. Hyundai is licensee of the two-stroke MAN B&W engines, but has also completed assembly of a new type Sulzer.
Since delivering its first diesel engine in 1979, the Korean shipyard is believed to be responsible for 30% of the marine diesels manufactured worldwide.
The brisk shipbuilding industry of Far East countries is seeing intense competition among participants, and Japanese are battling to hold their own in face of the cheaper currency quoted for newbuildings by S.Korea. First quarter returns of Hyundai Heavy industries of S.Korea reflect sales of $1,1bn compared wth $358m in the corresponding period of last year.
The Far East yards secure most of the orders for VLCCs, but it is noted that newbuildings prices have increased by about 1,5% in recent months. A VLCC can still be produced by S.Korea yards for $71m, however, which is fully 30% cheaper than the lowest tender from a European yard. Thanks to the attraction of lower prices, S.Korean builders have picked up orders for no fewer than 200 ships since the beginning of the year.
The extensive shipbuilding enterprise in S.Korea, Japan and China has created immense problems for European contemporaries who cannot compete either time or pricewise. The price differentiation, seen by some European yards as an element of trade hostility, has led to talks between Italian and S.Korean building chiefs.
European shipyards suffering acute competition from mainly S.Koreans, are juggling with a variety of schemes to make their wares more attractive to clients.
Unions in Britain are reportedly claiming that European Governments have been affording tax relief and credit to investors as a way of subsidising by up to 25% prices of ships, all in order to remain in business. The major shipbuilding countries of Europe are alleged to be doing this.
The Asian industry, suffering less competition from the western world, is involved in cutthroat competition among themselves when western orders are placed in Far East yards. Japan, however, is less competitive because of its own high costs, but they have succeeded in winning a contract from P&O for construction of a cruise liner. It is likely that the quality and success of this first cruise ship will determine policy of other western shipowners when contemplating new contracts.
Fast coming up as a major builder is mainland China, now booking orders for VLCCs and bulkers. The yards have apparently also developed their machinery departments, and diesels, which in former years came from European factories, are now flowing from Chinese producers.
The concern of European shipyards in face of the snowballing Asian industry is understandable, and it is difficult determining how shipbuilders in Europe can ever match the speed of building, and the low prices. Tanker owners are securing VLCC’s in the Far East for $70m, at least $5m less than the cheapest European yard . . . . and in half the building time!
S.Korea has specialised in VLCCs hitherto.
MILLIONS OF CARS BY SEA
CONSPICUOUS feature of sea trade this century is the sharp increase of East to West shipments of manufactured articles, particularly motor vehicles, and the belief that this flow will increase consistently with vigorous industrial development by Asian countries, and their high pressure marketing in the west.
Motor vehicle flow alone is expected to sharply increase, and in anticipation of this, enterprising western shipowners, Wallenius Wilhelmsen are beefing up the ro-ro fleet to handle motor cars. Chartering in of appropriate carriers last year was not economically advantageous, and it is policy now to concentrate merged fleets of both Wallenius and Wilhelmsen into one entity. The company already moves about 1,8m vehicles by sea annually, and the grand total of motor vehicles shipped across the world last year was 7,6m units.
At the same time it is recorded that South Korean vehicle exports increased more than 10% last year, while those from Japan declined 2,4% at 4,1m units. The US market accounted for 42% of Japanese exports, and 30% of those from S.Korea.
Korean production increased 45% in a year, the bulk being vehicles for export to the west.
There has been intense publicity and propaganda for European vehicles in North America following a 2% decline in sales, and it is obvious that Latin countries of South America show preference for Far East vehicles since sales by European producers covering all South America last year saw 46% decline.
Not surprisingly, western shipowners have invested heavily in construction of vehicle carriers, and there have been additional completions so that there are now 6% more vehicle carriers than a year ago.
SHIP BREAKERS PAY MORE
USING international shipping business as the measure, it is obvious that trade is improving. Owners of almost any commercial ship can secure business from the highly active charter market, and the rates being paid are encouraging for respective owners.
Of the charters fixed through London offices last month, 190,000 tdw bulkers were securing contracts at more than $21 000 a day, 150,000 tonners were obtaining $18 000, and smaller carriers of 63,000tdw were receiving $11 000 a day.
At these rates shipowners are encouraged in the belief that their business is on the up and up through the second half of the year.
Not surprisingly, shipyards also are getting spin-off from this increased international cargo flow, and orders are pending from a number of major operators. At the same time, the shipbreaking industry is suffering scarcity of scrap tonnage, and Indian yards are paying the highest prices for many years in order to secure demolition tonnage.
Last month the Indian breakers bought a 27,648 tdw, 1974 built tanker, Mavra but had to pay the equivalent of $170 a light ton, a substantially higher price compared with two years ago when the same ship might have been available for $110 a ton.
There is pressing demand by demolition yards for general cargo ships, and the 1976 built general cargo vessel, Umgeni (12,350tdw), fetched the equivalent of $150 a light ton.
Chinese are competing with Indians and Pakistan scrappers in the search for tonnage attractive to breakers. The steel is recycled in local industry and there is increasing demand. Shipbreakers have also to respect wishes of long-standing clients, and non-availability of re-rollable steel from old ships can harm business with favoured buyers.
Reports from oversea confirm that whereas 370 ships had been sold for break-up by this time last year, there have so far been fewer than 300, and brokers confirm that owners are more disposed to hold on to time-expired vessels while freight rates are high.
When trade along sealanes is poor, owners have to accept just what scrappers are prepared to pay for obsolete ships, but now that trade along sealanes has looked up, the scrappers have had to beef up their prices for old ships.
TRANSIT CUSTOMERS
FOREIGN VLCCs continue to secure healthy business thanks to charters by South African oil entities for cargoes to be brought from the Persian Gulf.
Last month the Norwegian owned, Berge Bragd, was secured to bring 270 000 tons of crude to Durban to account of Sasol at a charter rate equating with about $45 000 a day. Another VLCC, Chaumont, is bringing 260,000 tons on charter to Stentex.
The earnings by the big tankers have improved sharply in recent weeks, and recognising the greater demand by North America for imported oil in the winter months, charter rates will increase and the scarcity of VLCCs becomes more pronounced.
There were nearly 70 VLCCs in, or near Persian Gulf loading terminals awaiting their turn to load cargoes during one week last month, and the surging charter rates sees 300,000 ton parcels crude going round the Cape to the US paying the carriers up to $50 000 a day. One charterer seeking VLCCs reported that the crude exports from PG had run out of ships.
The crude price at a high $32 a barrel, and tanker owners in a position to push up their rates thanks to the current demand for moving PG cargoes to consumers, the customers will find fuel increasingly costly. The carriers seek rates aimed at compensating the lean years.
Crude carriers consigned to American depots which have been coming round here for decades, can be expected to continue indefinitely patronising off-limits boat and helicopter service outside Cape Town. Laden VLCC’s are too big and too deep to enter any South African port. They spend hundreds of thousands of dollars monthly on purchase of provisions for delivery outside Cape Town by surface ferry, or by the effective Court helicopters. And there appears little likelihood of the traffic coming to an end as long as the Americans remain heavily dependent on imported oil.
A BP VLCC, British Pioneer, early this month picked up 275,000 tons of crude in the PG for UK or the Continent, and will be coming round the Cape with it. It is not often BP tankers are counted among the transit VLCCs with crude, but the healthy charter rate no doubt induced the management to allocate the British Pioneer to this single voyage at about $40,000 a day. It will be interesting to see if she joins the clients for off-limits replenishing of the pantry outside Cape Town.
The sea-train of cargoes of crude up to 400 000 tons at a time, sailing 25,000 km round Africa to the US Gulf, is being operated by the world’s biggest ships without serious breakdown or mishap. Many of them also return empty to the Gulf by the same way.
Stena Companion, with 325 000 tons of crude for the US has left the PG for the voyage round the Cape, and will this month stop off the Peninsula for stores, mail, etc.
A couple of 80 000 ton cargoes of clean oil from the Middle East are coming down the East coast this month consigned to Brazil in the SeaQueen and Althea, while a smaller tanker with a 28 000 ton consignment for Argentina from the same source, pays the carrier a bulk sum of $700 000. The Brazilian shipments may be slightly above this figure.
Cargoes for Far East destinations from West Africa supplement the East to West callers off the Cape, and their whistle stops outside Table Bay represent additional business for the chandlers and others, processed by Court helicopters and Carrier Marine surface deliveries.
It is a long non-stop haul between Nigeria and the discharge terminals in Japan, or Korea, and the purchases made here for delivery off port limits represent an economic recharging of ship larders, also providing crews with mail facilities. Ships in West African terminals do not enjoy chandling for fruit, vegetables and other supplies on the same scale and at reasonable prices available down this end of the Continent.
The tanker trades are enjoying highest rates in three years. There are currently hardly sufficient carriers to meet increasing demand, and among the smaller tankers, charter rates are high because of the relative scarcity of these vessels.
The shipbreakers are now having to pay the highest price in years for scrap ships, and old run-down tankers are fetching up in scrapyards at more than $175 a light ton, which makes for costly recycled steel mainly in India, Bangladesh and China.
With business so good along the sealanes, some owners of modest sized tankers are hoping for a few years continued service from vessels, which would otherwise be eligible for scrapping. The tankers undergo a fourth survey, and with the issue of a fresh certificate, they continue sailing as heretofor.
BULK EXPORTS
Reference was made in the digest last month to the healthy flow of dry exports from the Republic, these continue at a good rate. Two shipments to China from Saldanha Bay go this month, 140,000 tons in the Kitsa.
This is the time to be a shipowner, for the sharply improved freight market and higher charter rates have given owners a massive shot in the arm.
The 150 000tdw Philippines registered, Royal Eternity, was last month taken on daily hire by a charterer, and directed to Richards Bay to load bulk for Europe. The owners are enjoying a healthy hire return of $21,200 daily.
The smaller bulker, Helen B, picked up 70 000 tons of coal at Richards Bay for Fos on the basis of $10,10 a ton.
DEFECTIVE FOUNDATIONS
REFERENCE has been made in previous issues of the digest to the problem of cracked bedplates under the engines of VLCCs built by Daewoo in S.Korea, and fitted with Sulzer diesels.
The builders have prepared for heavy losses arising from need for recalling 20 VLCCs for a three months removal of engines, and installation of new bedplate structure. Apparently the problem is not peculiar to Daewoo construction, for there have been reports that new VLCCs with the same engine coming from Hyundai also require total bedplate replacement.
The cost to the owners of the 20 tankers from off-hire could run to as much as $5m per vessel, for the repair invariably takes between 70 and 90 days.
While to date main victims of the bedplate troubles have concerned seven cylinder Sulzers, there are reports now of six cylinder B&W units suffering similar problems.
WHEN
SHIPS GO DOWN
THE periodic sinking of bulkers as a result of structural failure, often with loss of crews, sees less convivial relations between shipowners and the various Classification societies.
While some of the smaller Eastern European Classification Societies have come under fire with allegations of corruption of surveyors, and the Polish Register was rejected by the International Association of Classification Societies, it is significant that two ships in trouble at the Cape in recent months were responsibility of long established and respected Classification societies.
The ore laden, Treasure, which filled and sank about 15 miles north of Cape Town, was classified and surveyed by the respected French, Bureau Veritas.
Foundering by so many bulkers in recent years, including the Treasure, and the Leader L with heavy loss of life in the Atlantic earlier this year, has encouraged the belief that bulkheads between holds have not been built strong enough to withstand pressure of flooding. It has been found that after filling of one hold, the bulkers suffered further loss of buoyancy when a second, and successive holds filled. This was through failed bulkheads, which, although not suffering corrosion in terms of recent surveys, were obviously without sufficient strength to withstand impact of surging water in cargo spaces.
Polish Register surveyors, who knew the Leader L, have subsequently reported that after transfer of the ship from Lloyd’s to the Polish register in 1997, their surveyors observed grooving corrosion of frames and general corrosion, but both were within permissible limits. In April last year the surveyors regarded a bulkhead between holds two and three to be suspect, and they recommended that it be specially examined. But no time limit was given. In the final result, this was the second bulkhead to collapse in the sinking drama.
The 59,7981 tdw, 22 years old bulker, Iolcos Mariner, was apprehended at the ore loading berth in Saldanha Bay when survey revealed a bulkhead cracked and perforated. Defects had to be made good in Cape Town before she could load, and care was taken to ensure she did in fact enter port for repairs and did not sheer off to some terminal less fastidious about these matters.
The run-down oil laden, Greek owned, and Cypriot 22 years old tanker, Ritas, arrested at Cape Town, is supervised by none other than the aristocrat of ship classification and insurance organisations, Lloyd’s of London. After perusing the most recent survey reports in respect of this rustbox with its corroded structures, surveyors in previous ports of call may be asked questions by HQ.
It was difficult determining immediate fate of this extremely run-down tanker with a fuel oil cargo paid for by a West Africa consumer. Transhipment to another tanker would be the best alternative, provided an empty tanker of the right capacity could be found in the area. It was questionable whether the Athens owner could meet formidable cost of rehabilitating the Ritas vessel without emptying out cargo. And after the substantial expenditure, the Ritas would still be nothing more than scrap value, a classic example of good money after bad.
An empty vessel of the right size was fortunately found, and the time charter of the Ritas was cancelled when a contract was negotiated for the 37,182 tdw Italian owned, Maura D’Alesio, a 19 year old vessel which had been working earlier this year along the west coast.
Three owners have made a living out of the 22 years old Ritas, then sold when it became obvious that age and state of the hull demanded enormous expenditure.
One option, after transhipment of cargo to the Maura D’Alesio in Cape Town, the Ritas could be towed, or possibly given a temporary certificate by the Registro Italia to sail n ballast to a scrapyard.
Unfortunately, there are other ships in the same run down state still trading.
FLAGS OF CONVENIENCE
When international shipping was reorganising after WW2 it had opportunity for utilising national registers of countries new to the flag of convenience policy established in pre-war years. For Panama, and Liberia the establishing of flag registers attracted owners from established countries, and constituted a generous source of foreign currency earnings in the 1930s.
Both Malta and Cyprus, together with other countries entered the business in more recent times. Shipowners have a wide choice of flags prepared to register and host their ships.
For the Greeks, disenchanted with taxes and rules regarding crewing at home, found the Cyprus and Maltese registers more attractive, and there has in recent times been efforts by the Greek government to woo owners s back to the home register. Some of the grouses about taxation, and the use of non-Greek crews were smoothed.
However, a less happy feature of the flags of convenience, referred to universally by the letters f o c, has been accession by numerous run down ships from hard-up owners.
Recently the Cyprus Marine Administration apologised for the state of the tanker Ritas, arrested in Cape Town as a "floating nightmare". It insisted that the Classification society make a detailed examination of the run-down ship that had started to spill cargo on to the dock surface within hours of arrival. The port authority had to employ booms and bubble screens to prevent the refined oil leak in a cargo tank from covering the entire dock basin.
The Greek owners of the Ritas said that while it was an old vessel, it was not right to refer to her as a "rust bucket". However, anybody associated with ships knowing their tendency to suffer fractures when they get old, realises that cost of rehabilitating can even exceed their scrap value.
For the crew of the Ritas, the corrosion of fresh water tanks necessitated them drawing drinking water from the boiler water.
MISSING DOCUMENTS
The Norwegian Maritime Directorate recently expressed dissatisfaction with the survey system of Classification societies during investigation of the 1997 loss, 20 miles from Stavanger, of a 20 years old Cyprus registered bulker, Leros Strength, with 20 crew. The vessel was described by the Directorate as seriously wasted, but had been allowed to continue trading. The bow apparently broke off, and sank.
Subsequent underwater examination was hampered by bad weather, and by action of lawyers representing Greek owners who prevented Norwegian divers from descending to the wreck. What could be the purpose of a ship owner who seeks legal protection from divers descending to examine state of his ship on the sea floor?
Documentation in respect of the bulker was subsequently said to be lacking in survey information, and the vessel had been sailing without necessary certificates.
The Leros Strength’s last Mayday was being radiated by the Captain when his voice was suddenly cut off because the ship plunged while he was explaining how the bow had submerged, and the ship was settling. All hands were lost, and subsequent examination by divers revealed the fractured ship on the ocean floor, but conditions prevented a detailed inspection.
Annual survey of the Leros Strength by the American Bureau, who had classed the ship since construction in 1976, confirmed a rapid deterioration and corrosion found at her third special survey. Topside wing tanks were rusted through, and hatch pontoons were badl wasted.
Purchaser of the run-down ship six years ago ran into trouble in Poland when a Government surveyor expressed himself on the wasted state of the vessel. Numerous defects were subjected to "lengthy deferrals or an overlooking of essential requirements".
In 1996 the Greek owners sought a three months extension of the 20 years survey. The American Classification surveyor refused.
The owners then set about putting the badly rusted ship in the care of the Italian Classification Society, Rina. One month later, the inappropriately named Leros Strength with the certificate from a special survey in Curacao, was detained as unseaworthy by Rotterdam inspectors.
Repaired again in Piraeus, the bulker went to Trinidad with temporary certificates provided by Rina. In the winter of 1996 the bulker sailed out of Murmansk with a full cargo of apatite on what proved to be her last voyage, for she foundered with the entire crew while the Captain was at the microphone calling "Mayday".
The Norwegians have proposed stricter control by Class Societies, and requirements when a ship transfers from one society to another.
CLOSER INSPECTIONS
The British Maritime and Coastguard Agency has announced intention of displaying special attention to tankers between now and the end of November.
Among shortcomings in a 1976 built ore/oil carrier, Cerda, apprehended while in Milford Haven , the crew three times failed the test exercise in engine room fire drill. A surveyor said there were flaws in command and control of emergency parties, and the vessel was kept in port until the weaknesses had been rectified.
The biggest surprise to surveyors was the fact the Cerda, 24 years old, had been sold to Japanese breakers, but when the deal fell through , she was re-commissioned and arrived in Britain with a full cargo of high octane jet aircraft fuel.
There was alarm that high volatile fuel should be carried in a tanker, which could well have had corrosion and leakage problems. The owners, however, were able to produce documentation showing that the Cerda could continue to trade until next year.
On making good deficiencies under supervision of British surveyors, the old tanker has sailed out to the Far East with a fuel oil cargo, on a bulk payment charter of $1,75m.
The voyages to and from Britain with full cargoes produced almost as much as the price tendered by shipbreakers.
CARGO CLAIMS
Arrest of ships for debt, and those which founder with full cargoes, can subsequently become subjects of protracted legal process, since both consignees and owners of cargoes in idle ships, not surprisingly, seek compensation.
In the case of the Panama registered, and Greek owned bulker, Treasure, which lies with full cargo on the seabed a few miles north of Robben Island, has a $4m consignment of 135 000 tons of Brazilian ore in her holds, now attached by the cargo principals pending a claim against the shipowner. There is small likelihood, however, of anybody contemplating the immense cost of salving the relatively low valued ore. A legal team has endeavoured to round up the official documents, which were brought off, or floated off, the sinking ship.
Having undertaken to deliver the ore cargo to the Far East "properly and safely" the carrier is alleged to have been unseaworthy, and cargo owners are claiming both against the Greek shipowner, and the insurance company. There is small risk of the cargo being pilfered, and any amount of ore is available at Saldanha Bay, a few miles to the north.
LOCAL SUCCESS
One successful cargo salvage outside Table Bay was the copper consignment from Beira for London carried in the Houstan steamer, Hypatia, which went ashore on Whale Rock in 1929. The 30 years old steamer flooded almost right through when bounced on the rock bottom in the swell. Abandoned in hours, the British officers with lascar crew rowed in two lifeboats to the end of the Cape Town breakwater where they were picked up by a dock tug.
Tommy Martin, the local engineer, negotiated a contract, then set about using adapted fishing boats to bring in the slab copper, and arranged for onward shipment to the UK.
Martin realised the need to expedite the operation because no ship, which takes the bottom in the swell over Whale Rock lasts long. He recovered virtually the whole consignment from the forward holds before the wreck disintegrated, but amateur divers on occasion report seeing odd copper ingots lying on the sea floor near the wreck.
MONEY TROUBLES
Other cargo owners have suffered inconvenience because of the arrest for debt of carriers at ports of call, and this is happening also where ships are attached while in Cape Town and Durban.
When bankrupt ships are subject to compulsory sale, there is often a problem of delivery or disposal of cargo owned by another party. Buyers of the attached ships are usually accorded the option of delivering the transit shipment, but this could be in terms of a fresh freight agreement, and rate. Alternatively, the cargo can be transhipped, and if this involves landing the cargo on a wharf, and thereafter reloading by another vessel, the costs are formidable.
With a bulk commodity, such as ore, direct transhipment to a double-banked ship is more acceptable, but it requires both vessels having their own cargo gear. Gearless ships cannot transfer cargoes overside, and wise charterers show preference for the geared vessels.
A cargo proves highly costly if, after being landed on the wharf, it thereafter is reloaded by another vessel, aggregating double handling. It is consequently advantageous if owner of cargo negotiates with a buyer of an arrested ship, and negotiates a fresh voyage charter to ensure delivery of cargo. The carrier would naturally then be in an advantageous position to prescribe his terms in respect of cargo rate.
Idle, debt-ridden ships are to be found in ports around the world, the majority victims of under-capitalised East European operators, and their crews in many cases also are abandoned without funds. Owners suffer money troubles when they cannot secure consistent returns from successive cargoes, and idle time of a ship rapidly consumes profits secured from previous charters.
It is mainly the bulkers, which are dependent on successive rough cargoes, but they suffer financial pangs when there is no assurance of direct continuation of sailings.
There have been numerous auctions of bankrupted ships in South African ports, and it has happened that even the buyers can themselves become victims of money troubles, and suffer difficulty raising sufficient funds to offset dock charges applicable to their new-buys until they can sail away. Unfortunately, the crews are invariably the victims of all these maritime financial disasters, and many have to seek help through diplomatic channels for a ticket home.
SHIPYARD TRAUMA
BELFAST yards, Harland and Wolff, who in former years built most of the mailships for Union-Castle but in recent times suffered serious financial problems, are currently making heavy weather with drillship contracts which it undertook in lieu of conventional shipbuilding.
The drillship, Glomar Jack Ryan erected for American concern, Global Marine, was scheduled for delivery at end of July and payment to Harland and Wolff of much-needed $32m. There is dispute about this contract after the High Court declared that Global Marine could take delivery after providing security for the amount owed, and problems be resolved by arbitration.
Last year the builders demanded $221,6m to meet cost over-runs on two rigs, Glomar CR Luigs, and the Glomar Jack Ryan caused by an additional workload over and above the original construction contract. The Americans, however, insisted that the claim was not valid, and the refusal threatened to land the shipbuilder in the bankruptcy court.
After complex negotiations Global Marine agreed to pay $65m, but this would have to be reimbursed if arbitration decides otherwise.
Norwegian interests, Fred Olsen Energy, who hold 70,8% control of Harland and Wolff, have been endeavouring to untangle the financial problems of the British yards at a time when negotiations for building ro-ro ships and even cruise liners are embroiled in the company’s financial crisis. There is currently desperate need by the yard for repair and short-term contracts if hundreds of workers are not to be paid off.
NAVAL COLLISION
THERE may not be much commercial traffic in the region of the Falkland Islands, but there still are marine casualties.
Last month a Uruguayan minesweeper, Valiente, with a crew of 24, was sailing down the Brazilian coast when it was a collision in dense fog with the cargo vessel, Skyros, and broke in two on impact. It sank in 10 minutes.
Eight crew lost their lives, and three engine room staff were reported missing, believed to have been killed on impact. Survivors suffered hypothermia in the extremely low temperature of the water until picked up by the Skyros.
An Inquiry into circumstances of the collision has been sitting in Montevideo.
QUICK DISPATCH
A WEALTHY Saudi Arabian sheik was happy to scuttle his luxury 30m yacht Milasan if there was no response to his offers to sell, and after seeing it go down near Cape Spartivento, he put in his total loss claim to the Adamjee Insurance Co, apparently on the advice of Sheik Khalid Al Abbar’s right hand advisor.
The five years old sinking wound up as a case in a London court claim last month when it was alleged that, efforts had been unsuccessful over a period of two years s to find a buyer for the $600 000 Milasan at a price of $1,3m. The insurance company claimed that the master and chief engineer of the yacht flooded the engine room, and it sank in calm water.
The judge found that the Sheik had a motive for sinking his yacht, and was clearly dishonest, having been an unsatisfactory witness in many respects. He did not regard lies to an Insurance company as dishonest.
The High Court said that in the circumstances, the insurers had been fully entitled to turn down the claim for the loss of the yacht.
PRICE OF INFAMY
THERE can be few modest sized tankers around whose infamy earned them as much publicity, good and bad, accorded the 37,283 tdw Erika, since it split in two off the French Atlantic seaboard last December, and deposited a major portion of its 25 000 ton fuel oil cargo on the beach.
The BBC has run a programme on the subject because of the wide ramifications and public interest.
The Erika was built in 1975, and had changed hands six times before being bought by an Italian, Giuseppe Savarese, who allocated her to the Italian Class, Rina, and put her on the Maltese register.
After the sinking, the Class society concedes it should have learnt more from experience with sister ships that apparently displayed similar structural weakness.
Mr Savarese in reporting on the programme, said that he had paid Rina to verify that his ship was in a proper structural state, but apparently they did not spot defects. In the circumstances, the owner felt justified in accepting cargoes for his tanker. Of the seven sister ships, three revealed structural damage.
Salvors have pumped out most of the oil remaining in the half sections of the Erika standing upright, some distance apart on the seafloor.
NEGLECTED SHIPS
REPORTS from ship surveyors in various parts of the world suggest that standards of maintenance of ships are deteriorating rather than improving, and there is an increase in numbers of ships being arrested by inspectors as being unseaworthy.
There has been a 6% increase this year in the total of ships detained in British ports for deficiencies.
Even the Irish contribute to the list of arrested ships requiring attention.The 12 271 tdw, 18 year old Arklow Dawn, was recorded as having 14 deficiencies. The Irish obvious were satisfied their ship could never catch fire, for inspectors found a pool of oil swirling round the foundations of the main engine. And if there was an emergency, there was no fire detection system, and the emergency fire pump did not operate. If crew were forced to abandon, they would find that the engine of the lifeboat would not start, and there was no prospect of calling for aid because the R/T was not working.
The surveyor found no fewer than 14 deficiencies in the Wicklow-based ship, and these had to be made good before the ship could sail.
The Belgians had a small chemical tanker, Alcedo, arrested on Teeside last month when it as found that if abandoning proved necessary, some crew members would have need to be good swimmers because there were insufficient lifejackets to go round.
A Dutch cargo motorship Markes was held by British inspectors, because charts and navigation manuals were out of date, and the rockets for the line-throwing device had expired and were useless. And the Master could not produce statutory certtificates. The ship was Classified by Lloyd’s.
The British have sent out a signal to operators of tankers that inspectors are to intensify their visits between this month and the end of the year.
The safety organisation was startled to discover recently that a 24 years old OBO sold to scrappers in April, was actually on charter carrying jetfuel into Milford Haven. The deal for breaking fell through, and she was bought by Swiss Italians.
The Cerda was inspected, and apprehended in British waters last month because of deficiencies. These included absence of brass rubbing strips on hatch covers, intended to prevent sparks and friction of steel against steel.
MORE WW2 DRAMA
MORE than half a century after the end of WW2, books are still appearing containing reminiscences of participants, and the revealing of information, which for decades was under wraps.
From the Book Guild in Lewes, Sussex, there comes The Absurd and the Brave by Michael Fethney costing 10 pounds in Britain, dealing with the controversial evacuation of British children to distant countries despite advice of Winston Churchill, who believed the U-boats constituted a bigger risk to evacuees in the Atlantic, than the German bombing of Britain.
The 11,081 tg Cityof Benares, well known at the Cape, in early September 1940 embarked 200 passengers in Glasgow, of whom were 90 children, with nine escorts for the voyage to Canada.
At 10pm on the second night out, the City of Benares was in bad weather when hit in the engine room by torpedo from a U-boat. The vessel flooded up rapidly, and there was great difficulty getting boats down in the violent rolling. Some capsized, and other were flooded so that by dawn many children were showing effects of exposure.
The final tally confirmed that 248 people were unaccounted for, including 77 children with their escorts, along with the Master and members of his crew. Inadequate escorting was blamed for the disaster, and a corvette had run with the passenger vessel for only the first day out of Glasgow. A searching Sunderland flying-boat fortunately spotted a half filled lifeboat and summoned a patrolling corvette to pick up the occupants consisting of 46 survivors, including six child evacuees with two escorts.
Fortunately 16 other shipments of child evacuees arrived at distant destinations safely.
Near the end of hostilities, in April 1945, submarine U-234 came round the Cape with a badly needed consignment of uranium oxide under the supervision of specialists who travelled with the parcel in the submarine destined to Japan. But there was drama in the course of the voyage when two Japanese officers travelling with the cargo reportedly prefered death to surrender of the submarine to US warships after collapse of Germany. They protested that even when the war with Germany ended, they were still enemies of the US.
The recently published book containing details of the wartime voyage is Germany’s Last Mission to Japan, by Joseph Mark Scalia, and obtainable from Chatham Publishing, 61 Frith St, London W1V 5TA at £20,00
TITANIC AGAIN!
THE 1912 sinking of the 46,000 ton, Titanic after striking ice, still fascinates organisations bent on recovering contents of safes in the liner, specially wealth reputed to rest in the security lockers, and there is now a plan by holders of salvage rights to enter the security areas.
Development of underwater breathing gear over the past 90 years enables divers go deeper, and remain under water longer. Protagonists of the new project believe they can recover jewellery and other wealthy items from the safes.
Recent diving reports indicated that the ship’s structure, after 88 years immersion was disintegrating rapidly, but having regard to successive winter storms, and their impact on the sea floor, it is surprising the wreck has lasted in one piece so long.
If there is any success in the new venture, it is conceivable that salvors may be induced to return to some other liner wrecks, specially some of those sunk in WW2, which carried civilian passengers while on war ministry service.
The Lusitania lies on the floor of the Irish Sea after being torpedoed in WW1, and it is not known whether she has been visited by salvors to recover passenger’s gems.
In deep water in the North Atlantic lies the once popular liner, Ceramic, which with 656 passengers and crew was torpedoed by the U515 near the Azores at night in bad weather on December 6, 1942 , while outward bound to the Cape with a full complement of passengers, and sank in 10 minutes, leaving one survivor - a gunner on duty on the poop. He was picked up by the U-boat as a P.O.W. The weather was so rough that small rescue ships from St Michaels could not go to sea.
Salvage of valuables in the Ceramic at this stage would probably still be prevented by the exceptionally deep water.
There were hundreds of passengers in the Empress of Britain from the Middle East and South Africa, with all their possessions when she was torpedoed and sunk near end of her voyage to Liverpool. The 42 348tg, Empress of Britain, regarded the most beautiful ship to visit the Cape when she came with tourists in the late 1930s, was off the Irish coast, en route to Liverpool from South Africa in October 1940, when she was attacked first from the air with bombs and later torpedoed by a U-boat. All 643 people were safely got away in lifeboats before the U-boat fired two more torpedoes into the port side, and the ship sank almost immediately.
It is believed that her security lockers also contained valuables belonging to passengers, and others.
Another big liner, the 21,517tg Empress of Canada, with 1 400 Greek and Polish refugee passengers, plus Italian prisoners of war, was hit by two torpedoes fired by an Italian submarine 400 niles south of Cape Palmas, West Africa, late on March 13, 1943, and everybody tried to abandon in darkness during the 12 minutes before the ship foundered stern first.
Hundreds of people were jumping from the deck as the liner went down. Forty four crew, 340 passengers, and eight gunners were lost.
When the submarine broke surface, and the Captain endeavoured to identify his victim by interrogating survivors clinging to debris, he and his crew were confounded on hearing them reply in Italian. The submarine had sunk a ship where majority of passengers were Italian POWs from the Middle East, en route to detention camps, and hundreds were not accounted for. It was impossible for a submarine to rescue so many people from the water, and they had to be left to their fate.
Salvors have not to date regarded these wartime wrecks as worthy of further investigation, but their day may still come.
FROM THE EDITOR’S DESK
A FEATURE of the past winter was the almost total absence of seasonal north-westerly gales in the South Atlantic, resulting in a sharp reduction of rainfall in the south-western Cape. This must impact on coming seasonal harvests. The City fathers are concerned about the less than full dams at start of the summer, and it is conceivable that restrictions will be applied to reduce water consumption.
There were one or two brief westerly blasts in Table Bay in the autumn, but conditions were otherwise remarkably calm on the Atlantic seaboard. East of Agulhas there were vicious spells, and along the Eastern seaboard, however. Laden west-bound bulkers and tankers reported being down to less than half speed on occasion because of the formidable seaway, and heavy swell.
The experts spoke of a super-abundance of high pressure areas in the South Atlantic having influenced conditions on the Eastern side, but it is hoped that a spin-off will not be a super-abundance of south-east gales through the summer.
MARITIME NEWS
No! I am sorry! A well meaning recipient suggests that since the digest attempts to fill a major gap by supplying information to a news starved maritime portfolio, he proposes that it be published fortnightly. His suggestion, while interpreted as a compliment is, however, asking a bit much if expecting a one-man production to muster, prepare, and publish up to 30 pages, 26 times a year. Indeed, the march toward antiquity after a lifetime of maritime writing, although still at full speed while maintaining course without a second mate, concedes that tenure is not unlimited.
This is not a commercial publication. It has no regular source of income, but numbers of recipients are helping offset printing and postage costs. Calls still come from commercial publications, which would, no doubt, like either to see it vanquished, or taken over and become an advertising sheet.
The circulation and readership figures are increased by the numbers of companies printing further copies for circulation to their agents, and even to oversea offices. The journal is found in South African operated ships, and London offices have requested to be put on the mailing list (at R17 airmail postage).
Assembling appropriate editorial copy is no real problem for anybody closely associated with the industry, but maintaining flow is a lesson in persistence. The response suggests this is not a labour lost, and an assurance is given that every effort will be made to keep the ship on course to the end of endurance.
G Y