Tuesday, September 21, 2010

MarEx Newsletter | The American Recovery Act is a Foreign Stimulus Bonanza, China Cancels Negotiations With Japan Amid Dispute

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September 21st, 2010 Vol. 8, No. 70
The Maritime Executive - Online News Magazine, Newsletter and Business Journal. The Marine Industry's Most Widely Read Marine Newsletter and Worldwide Maritime Report for Commercial Shipping Executives. Click here for Corporate News and Press Releases

The American Recovery Act: A Foreign Stimulus Bonanza

The American Recovery Act: A Foreign Stimulus Bonanza

(When Good Things Go Bad – 2)

By Tony Munoz, Editor-in-Chief of the Maritime Executive Magazine and the MarEx Newsletter


The American Recovery and Reinvestment Act (ARRA) of 2009 and its $787 billion were supposed to stimulate the U.S. economy, revitalize manufacturing and create jobs throughout the country. Today, while unemployment still continues to hover around 10 percent, the Congressional Budget Office (CBO) reported the U.S. only got a slight reduction in the rate of 0.7 to 1.8 percent for its massive ARRA infusion into the economy. Based upon Capitol Hill's historical level of 4.5 percent unemployment being a nation fully employed, the CBO said the required ...

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Activists Attached to Chevron Drill Ship off Shetland Islands

Activists Attached to Chevron Drill Ship off Shetland Islands

Greenpeace reports that its activist have climbed aboard a Chevron –operated drill ship off of Britain's Shetland Island to put a halt to its planned drilling operations.

Two activists have attached themselves to the rung of the anchor chain of the STENA CARRON. The 228-meter drill ship was en route to Lagavulin oil field where it was going to begin exploratory drilling. Greenpeace says this on their website, "Our activists are taking action against a massive oil platform owned by Chevron, stopping it from drilling a deep water well off the Shetland Islands."

Earlier this month Greenpeace activists suspended themselves, using rock-climbing gear, to a Cairn Energy drilling rig ...

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189 Containers Still Missing from Mumbai Ship Collision

189 Containers Still Missing from Mumbai Ship Collision

The Mediterranean Shipping Company (MSC) reports that at least 189 containers from the MSC Chitra are missing, eight of which contain toxic materials. Six of the remaining eight contains sodium hydroxide, one contains organic pesticides and another contains aluminum phosphate tablets.

A team of specialized divers has been brought in to search for the missing containers. It is believed that the containers have sunk to the seafloor and may be covered with sediment. Port authority in Mumbai say the containers are no longer in the shipping lanes and do not affect ships traveling into the port.

The MSC Chitra collided with the Khalijia-III on August 7, just outside the ...

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EU NAVFOR Flagship Disrupts Pirate Action Group

 EU NAVFOR Flagship Disrupts Pirate Action Group

On 17 September, while executing a patrol along the Somali coastline, the crew of EU NAVFOR ship FS DE GRASSE located and disrupted a Pirate Action Group comprising of six boats. She thus prevented them from reaching the shipping lanes on the high seas to conduct attacks on merchant vessels.

On 16 September, the helicopter from the EU NAVFOR ship FS DE GRASSE was conducting a routine patrol when it spotted suspicious boats on a beach, loaded with pirate paraphernalia (ladders, fuel tanks…), indicating the imminent departure to sea of a Pirate Action Group.

The following morning, the same helicopter from FS DE GRASSE relocated this same group at ...

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Cargo Vessel Runs Aground off Batangas, Damages Reef

Cargo Vessel Runs Aground off Batangas, Damages Reef

A cargo vessel carrying plywood ran aground off Calatagan, Batangas Sunday morning, damaging a large coral reef.

The local coast guard reports that the 1,454 gross-ton MV HAMMER 1 ran aground around 2 a.m. Sunday due to human error. Reports say the ships captain failed to set the global positioning system properly, causing the vessel to run aground on the reef.

The vessel, which remains grounded, was investigated early Monday morning, revealing a two meter in diameter crack in its starboard side and a four foot crack on its port bow.

No oil has been spotted, however the PCG Marine Environmental Protection Command (MEPCOM) has arrived ...

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Owners Looking at Flag Price Rather than Cost

Owners Looking at Flag Price Rather than Cost

Too many shipowners look at price rather than cost when choosing a ship registry, and explore a variety of ways to circumvent international regulations, according to Scott Bergeron, Chief Operating Officer of the Liberian International Ship & Corporate Registry (LISCR), the US-based manager of the Liberian Registry.

Speaking at the recent International Chamber of Shipping Conference in London, Bergeron said, "There is a wide range of factors to be considered when measuring flag state performance. Price is just one of them, but it is one that invariably gives rise to misunderstanding. The cost of a flag state is typically less than one-half of one percent of the vessel's operating expenses. As with ...

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China Cancels Negotiations with Japan Amid Dispute

China Cancels Negotiations with Japan Amid Dispute

China continues to protest the arrest of a Chinese boat captain whose vessel collided with two Japanese patrol boats.

China has continually demanded the captain be released. In dispute of the ongoing detainment of the captain, China has cancelled several planned official visits and negotiations.

In addition China has cancelled an invitation to about 1,000 Japanese youths to the World Expo in Shanghai. The government has also cancelled two concerts at the Expo next month by Japanese pop band SMAP.

China has said the incident has severely damaged relations between the two countries and warns Japan to return the captain immediately without condition to avoid further ...

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Matson Launches Expanded China – Long Beach Express

Matson Launches Expanded China – Long Beach Express

Geographic Reach Extended to Hong Kong and Yantian

Matson launched its expanded China – Long Beach Express service this week, with the first departures from Hong Kong and Yantian and a new second weekly call at Shanghai. The new weekly service allows Matson to extend its geographic reach to the South China region, including Hong Kong and the Pearl River Delta, and build on its well established reputation for providing service features that are the best in the Transpacific trade. With the second string of vessels, Matson will now offer twice weekly service from Shanghai and weekly service from Hong Kong, Yantian, Xiamen and Ningbo to Long Beach. The expanded service also ...

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Passenger Jumps to Death After Gambling Away $650k

Passenger Jumps to Death After Gambling Away $650k

A 51-year-old man leapt to his death from the 13th deck of a Star Cruises gambling ship, Sunday, after losing 5 million HKD ($650,000 USD) playing baccarat.

The Chinese man known as Xu, began playing baccarat on Saturday after dinner and played until the table closed at 8 a.m. Sunday morning. After accumulating huge loses during his all night gambling binge, Xu was seen climbing to the top deck of the ship. Witnesses report seeing him wander around the top deck for more than an hour. Around 9:50 a.m., when the ship was south of the Kwo Chau islands, Xu was seen jumping off the 13th deck.

Marine police ...

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MITAGS-PMI: Introduction to Environmental Regulations

MITAGS-PMI: Introduction to Environmental Regulations

Introduction to Environmental Regulations in the Maritime Industry-EPA General Permit for Commercial Vessels with a Special Emphasis on the Impact to Tug and Barge Operations

Do you know the definition of NPDES, MARPOL, VGP, or NOI?

If not, you are encouraged to attend the MITAGS/PMI "Introduction to Environmental Regulations
in the Maritime Industry – EPA General Permit for Commercial Vessels" program. The course will
provide detailed updates on the following:

  • International Convention for the Prevention of Pollution from Ships (MARPOL).
  • U.S. Clean Air Act.
  • National Pollutant Discharge Elimination System (NPDES).
  • Vessel General Permit (VGP).
  • Notice of Intent (NOI).

Course Duration:

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ILO Director-General Receives a Lifetime Achievement Award for Promoting MDGs

ILO Director-General Receives a Lifetime Achievement Award for Promoting MDGs

Juan Somavia, Director-General of the International Labour Organization (ILO) has received a "Lifetime Achievement Award" for his work towards the achievement of the Millennium Development Goals (MDGs) and promoting social development.

Mr. Somavia received the honor from the MDG Awards Committee which cited his "vision and advocacy in support of the need to secure decent work for women and men throughout the world".

The ceremony was held as world leaders gathered in New York for a UN MDG Summit on 20-22 September to accelerate progress towards the MDGs.

"In this struggle, we must do better and aim higher. Inspired by a new vision where the dignity ...

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Cruise West Ceases All Operations

Cruise West Ceases All Operations

Cruise West, a small-ship cruise line operating out of Seattle, Washington, ceased operations on Saturday, September 18th after 63 years. In a statement the company says for they have spent the last year aggressively pursuing many "options with interested parties to maintain operations, including investment, selling assets, and selling the company." The troubled economy kept any of these options from coming to fruition.

Dick West, Cruise West's Chairman and Managing Director had this to say, "I have never given up hope that we might be able to find a way to survive by working with the various interested parties. I am absolutely heartbroken that this family legacy has come to an end." ...

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No Evidence Found to Substantiate Allegations Against USCG Judges

No Evidence Found to Substantiate Allegations Against USCG Judges

The U.S. Department of Homeland Security Office of Inspector General has issued his final report on the Coast Guard Administrative Law Judge program. The Executive Summary states as follows:

"On May 9, 2007, a retired United States Coast Guard (USCG) Administrative Law Judge (ALJ), Jeffie J. Massey, filed an affidavit in support of the plaintiff in Dresser vs. Ingolia et al., Civil Action No. 07-1497 (Eastern District, Louisiana). In her affidavit, and when later testifying before Congress, ALJ Massey made several allegations of bias within the Coast Guard's ALJ program. ALJ Massey said that the Chief ALJ, Joseph N. Ingolia,
specifically told her to always rule in the Coast Guard's favor. ...

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Cargotec Boosts Offshore Business in Brazil

Cargotec Boosts Offshore Business in Brazil

Two new offshore support vessels owned by Navegação São Miguel and destined for long-term charter to Brazilian operator Petrobrás, will feature a suite of MacGregor offshore equipment

As part of Cargotec's plans to further broaden its presence in Brazil, the company has recently won contracts that will see it supply a set of MacGregor offshore load handling and rescue handling equipment for two offshore support vessels under construction for Brazilian shipping company, Navegação São Miguel Ltda.

The vessels have been ordered for an eight-year charter agreement with Petrobrás, which plans to operate them in the Campos Basin in Macaé, Rio de Janeiro.

For each vessel Cargotec ...

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Building Your Own Internal Auditing Team

 Building Your Own Internal Auditing Team

PMI announces the nest session in the in the Continual Improvement Workshop Series: Building Your Own Internal Auditing Team. Begins on September 30-October 1, 2010

Is your Business effectively managing risk? Are you in compliance? Do you have documented assurances that your Business is accomplishing its objectives, realizing its core values and mission statement? Would you like to facilitate quality, safety and/or environmental management system(s) with a qualified and competent internal auditing team?

Learn More on September 30-October 1, 2010

PMI: For additional information on this program at PMI, please contact Mr. Gregg Trunnell toll-free at (888) 893-7829 or via e-mail at gtrunnell@mates.org. Interested individuals ...

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Knowledge Ops, Inc. Announces Steve Cowper as Senior Fellow for Gov. Affairs

Knowledge Ops, Inc. Announces Steve Cowper as Senior Fellow for Gov. Affairs

Knowledge Ops, Inc., a Delaware company headquartered in Houston, is pleased to announce that former Governor of Alaska Steve Cowper is joining the firm as a Senior Fellow for Government Affairs. In this capacity, Governor Cowper will advise management on local, state and federal governmental matters, including regulatory aspects of oil and gas drilling and production and maritime operations.

Dr. Scott Shemwell, CEO of Knowledge Ops, said "I have known and worked with Governor Cowper for over a decade and we are delighted that he will be working with us and our clients helping to navigate through these difficult times for the industry." Shemwell went on to add, "Governor Cowper brings a ...

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RBG Promotes from Within to Strengthen its Senior Management Team

RBG Promotes from Within to Strengthen its Senior Management Team

RBG the leading provider of fabric maintenance and construction support to the global energy industry, today announced two internal promotions to its senior management team, marking the first time the company has promoted internally to this level.

Garry Lewis has been appointed as UK Continental Shelf (UKCS) key account director and Roger Esson has been promoted to sales director, both with effect from 1 September.

Mr Lewis started with RBG in 2004 as operations manager and has since fulfilled the roles of operations team leader, general manager and projects director, playing an instrumental role in the award and transition of large scale fabric maintenance contracts for clients such as ...

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Keppel on Track to Deliver Derrick Pipelay Vessel to Global Industries

Keppel on Track to Deliver Derrick Pipelay Vessel to Global Industries

Keppel Singmarine Pte Ltd, the specialized shipbuilding arm of Keppel Offshore & Marine Limited (Keppel O&M), is on schedule to deliver GLOBAL 1200, the first of two new generation derrick pipelay vessels to Global Industries.

Mr John Reed, CEO of Global Industries, said, "The construction of subsea pipelines is expected to intensify globally in tandem with the increasing number of exploration and production activities in deeper and more remote frontiers.

"At Global Industries, we are in position to meet the market's needs for reliable and advanced solutions with a new fleet of two pipelayers, GLOBAL 1200 and 1201, being built at Keppel Singmarine in Singapore.

"We ...

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Bluewater Designs Completes Production Engineering for 'Dredge Potter'

Bluewater Designs Completes Production Engineering for 'Dredge Potter'

Bluewater Designs, Inc. (BDI) completes the production engineering for the USACE Dredge Potter. The modifications will be performed by Gulf Island Marine Fabricators, LLC at their Houma, Louisiana facility.

BDI was contracted by Gulf Island Marine Fabricators, LLC to provide the detailed production engineering package for modifications to the USACE Dredge Potter. The modifications included removal and replacement of the existing dredge pump, forward deckhouse, crew quarters and pilothouse with upgrades to the associated mechanical, electrical, and navigation systems. The historic dustpan dredge was originally built in 1932 by Dravo Contracting Co. and repowered, switching from steam to diesel, in 2001 by Halter Gulf Repair. The St. Louis District Corps of Engineers ...

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Dockwise to Build Type-O Vessel, Gets $100M Backing

Dockwise to Build Type-O Vessel, Gets $100M Backing

Dockwise, a leader in the transport and installation of extremely large and heavy structures, announced Monday that its top three shareholders have agreed to take on the $100 million rights issue to fund the construction of a new vessel.

HAL Investment, Sankaty Advisors and Project Holland Deelnemingen, have agreed to participate in the rights issue and will vote in favor of the issue at an upcoming shareholders meeting.

The decision on construction is still pending while Dockwise examines the feasibility of constructing a type-o, semi-submersible vessel. The vessel will be expected to meet the growing demand for very large and heavy production platforms.

The company says ...

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Dr. Richard E. Dodge Selected as 2010 South Florida Business Leader

Dr. Richard E. Dodge Selected as 2010 South Florida Business Leader

Seafarer's House at Port Everglades has announced Dr. Richard E. Dodge, Dean and Professor at the Nova Southeastern University Oceanographic Center as the 2010 South Florida Business Leader. Phil McNally, Area President of Paradise Bank and the South Florida Business Leaders' Luncheon Chairman, said "Dick was a natural selection for this honor. His long career has been focused on the science of coral reefs and the ramifications of the changes in our oceans and ocean reefs. The economy of South Florida certainly depends upon maintaining this delicate balance; it's good business. We welcome the rest of the community to this special event on Friday, November 12th, where we will take the time to acknowledge the ...

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Markey Delivers Winch to Bisso Offshore "Beverly B"

Markey Delivers Winch to Bisso Offshore "Beverly B"

Markey Machinery Company of Seattle, Washington recently delivered a model DEPCF-42 40HP Electric Render/Recover Winch to Eastern Shipbuilding for installation on the new Bisso Offshore tug "Beverly B.". This state-of-the-art hawser winch features capacity for 500 ft. of 8" soft-line, proven Render/Recover capability to 180 ft/min. line-speed and a brake that will hold 150 tons. All electric controls and a line-tension display system with data-logging rounds out the system. A Markey type CEW-60 2-Speed Electric Capstan on the stern is provided for general line-handling. The Beverly B. is a 96' x 4200HP x 50 Ton bollard-pull ASD tug. Anything else is just a winch!

Founded in 1907, Markey Machinery Company is the ...

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Maersk Line, Limited and Intermodal Structures Announce Strategic Partnership to Market Modular Building Systems

Maersk Line, Limited and Intermodal Structures Announce Strategic Partnership to Market Modular Building Systems

Maersk Line, Limited and two other A.P. Moller – Maersk companies have entered into a strategic partnership with Intermodal Structures, Inc. (IMS) to design, manufacture, market and deliver an innovative modular building system. This unique, customizable building can be assembled and transported rapidly and cost-effectively anywhere in the world using its intermodal frame. Featuring sturdy construction, seismic and hurricane resistance, it is especially well suited for locations where conventional construction is not feasible or practical.

Unlike traditional modular construction, the IMS all-steel buildings ensure that the structures retain their dimensional tolerances making it ideal for multiple redeployments. The buildings are multipurpose - from military compounds, classrooms, medical centers or offices to utilitarian ...

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Whale Found on Bow of Ship in Oakland

Whale Found on Bow of Ship in Oakland

A 642-foot container ship arrived in the Port of Oakland on Thursday with a dead whale wedged into its bow.

The San Francisco Chronicle reports, scientist examining the whale believe it was alive when it was struck and was hit with such force that its body remained wedged into the bow for several miles. Scientist also say the whale was missing its head and there was evidence that sharks had been feeding on it. The 20 to 30 –ft long, whales body has been so badly ravaged that the marine biologists cannot determine whether it is a blue whale or a minke whale.

The container ship NORTHERN VITALITY was ...

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