Coracle blog

Piracy seminar from ICS in London - 1 Dec

Day of the Seafarer follow up stats from Coracle

Coracle was delighted to support the IMO Day of the Seafarer initiative by running a promotion on the iPhone game Ship It and the iPhone app Maritime Glossary. We also set up and ran a maritime knowledge quiz and distributed a podcast from IMO Secretary-General Efthimios Mitropoulos

Apps

App downloads came in at nearly 11,500 and the game Ship It! became the #1 educational game in Germany.

The game reached #4 in The Netherlands and Portugal, #5 in Jordan, #6 in Taiwan and Turkey and #10 in Argentina, Greece and Japan.

UK ranking peaked at #13 and in the USA at #19

Quiz

The ‘I’m the Captain’ quiz at imo.coraclequiz.com was launched on Friday 24th.

509 people took and completed the quiz on Saturday 25th (the actual Day of the Seafarer) and we can show the following statistics:

Average score 51.88% (the certificate was awarded for scores over 60%)

312 people (61%) scored less than 60% 

25 people got all 10 questions correct

Podcast

The message from Secretary General Mitropoulos was downloaded 289 times between publishing on Friday 24th and Sunday 26th.

Day of the Seafarer (June 25) and support from Coracle

June 25th is the IMO’s Day of the Seafarer

To help do our bit at Coracle, we will be making our popular iPhone game Ship It!   free for the day and offering over 9,000 nautical terms on our Maritime Glossary iPhone app available for just £1.19 for the day.

Why are we doing this? Well, the aim of the Day of the Seafarer is to raise awareness of the vital role seafarers play in the world economy, and of career opportunities at sea.  It’s a chance to address the issues facing the modern day seafarer such as piracy. But most importantly it is an opportunity for us, the world, to say, “Thank You Seafarers”.  

Last time we made Ship It! free (January 2011) we had around 40,000 downloads in a day and became the #1 educational game in the app store across 10 countries. Imagine all those people seeing that a ship isn’t just a ship; that they differ and do different jobs… We would love to see the app back in the top spot, if only for a day… Please tell everyone to download it!

And lastly, we invite you to test your knowledge of maritime matters by taking the Day of the Seafarer quick quiz….  

You could also click the badge below and ‘LIKE’ the campaign on Facebook:

Baltex…

From the Baltic Exchange:

The UK’s Financial Services Authority (FSA) has authorised the Baltic Exchange’s subsidiary Baltic Exchange Derivatives Trading Ltd (BEDT) to run a Multilateral Trading Facility to offer trading in Forward Freight Agreements (FFAs).

Baltex, a central screen based trading solution for the dry FFA market, will go live shortly.

The Baltic Exchange board met on 4 May and gave BEDT its full support for the roll-out of the system. Baltic Exchange chairman Mark Jackson said: “In establishing and funding the Baltex system, the Baltic continues its core role in facilitating the development of the shipping marketplace in all its forms. This is the right response to broad market developments and emerging regulatory change.”

BEDT chairman Paul Over said: “FSA regulatory approval means that Baltex is also authorised in all European Economic Area countries. Baltex also has provisional approval from the Swiss Financial Market Supervisory Authority (FINMA), subject to receipt of letters to it from the FSA. Baltex will also be available in Singapore from the outset and is expected to gain authorisation from other jurisdictions in the coming months.”

Baltic Exchange chief executive Jeremy Penn said: “We are pleased to have finally received the FSA’s approval and Baltex will be opening for business very soon. We have held back the launch to allow companies wishing to participate enough time to deal with the formalities of signing documentation.”

Underpinned by the highest supervisory and compliance standards, the Baltic Exchange brand, as well as a high level of support from the market, the launch of Baltex will mark a step change in the way in which freight derivatives are traded. This is a trading system created by the shipping market and presents a unique opportunity for all freight derivatives stakeholders to benefit from faster execution and a more efficient transmission to clearing. It has been designed to attract new financial and commodity-orientated participants who prefer to trade in a regulated environment.

Baltex users will be able to trade the following routes:

Dry Bulk Voyage FFAs

C3 – Capesize Tubarao - Qingdao

C4 – Capesize Richards Bay – Rotterdam

C5 – Capesize W. Australia – Qingdao

C7 – Capesize Bolivar - Rotterdam

Dry Bulk Timecharter Trip FFAs

P1A – Panamax Transatlantic RV

P2A – Panamax Skaw-Gib/Far East

P3A – Panamax Japan-SK/Pacific RV

S7 – Supramax East Coast India – China

Dry Bulk Time Charter Average FFAs

Capesize TC Average

Panamax TC Average

Supramax TC Average

Handysize TC Average

Baltex has been developed by the Baltic Exchange, the world’s only independent provider of daily bulk shipping indices and route assessments, over the past two years. The trading system itself is run by Baltic Exchange Derivatives Trading Ltd, a subsidiary of the Baltic Exchange. Baltex is based on technology developed by Elysian Systems.

The screen provides live FFA prices and will support straight through processing to the international clearing houses CME, LCH, NOS and SGX. The transaction’s clearing status is displayed in real time. 

Baltex can be used by both brokers and principals and has been developed in close collaboration with the market. All live prices can be seen by Baltex screen members, but the trader’s identity is kept anonymous to all except the nominated broker.

As well as a live trading screen, a view only option will be available to those who simply want to see the depth of the market. This view only mode will also be made available through quote vendors. Baltex is designed to be an easy to use tool for freight derivative traders. It incorporates a fully bespoke screen layout, built-in warnings and functionality which can be tailored to traders’ needs as well as an Application Programming Interface (API) which can be used to interface into in-house systems. Baltex is closely monitored by a compliance team in London.

Marine Society - Thomas Gray Medal

The Marine Society has put out a call for nominations for its Thomas Gray Silver Medal.

The award is in recognition of exceptional deeds of merit at sea and includes services to seafarers in the broadest sense.

These deeds may be related to any aspect of seafaring, including saving of lives, the well-being of seafarers and any exceptional deeds related to the business of seafaring.

So the spectrum of eligibility is quite broad. One award is made each year. This year’s award will be presented at the charity’s Annual Court on 12 October 2011.

The closing date for nominations is 30 June 2011.

The terms of this medal preclude its being granted if the recipient has already been honoured for the same action.

For a flavour of past winners, some background to this prestigious award, and more on the nomination process: http://www.marine-society.org

Delight at Irene SL release…

INTERTANKO (International Association of Independent Tanker Owners) Friday 8 April 2011

Delight at Irene SL release but piracy crisis in Indian Ocean calls for governments to show political will not political indifference.

INTERTANKO is delighted that the Irene SL has been released by the Somali pirates who hijacked this tanker and her 2m barrel oil cargo in February, and that Master, officers and crew are in good health after 58 days in captivity – especially after 12 days being used as a pirate mothership.

At the time INTERTANKO’s Managing Director Joe Angelo remarked that the Irene SL hijacking marked a significant shift in Somali piracy, taking the crisis into the middle of the main sea lanes coming from the Middle East Gulf.

Her crude oil cargo represented 20% of total U.S. daily crude oil imports, or 5% of total daily world seaborne oil supply.

But further developments are taking place, and seafarers are today closer than ever before to saying enough is enough. These latest developments in pirate tactics include the systematic torture of seafarer hostages, leading in some cases to execution / murder.

The systematic use of pirate motherships means that the Somali pirates’ outreach now extends right across the Indian Ocean. No ship in this area is safe from the risk of pirate attack.

There is no alternative route any more for the 17 million barrels of oil a day that come out of the Gulf – 40% of the world’s oil supplies have to pass through the Indian Ocean.

“The seafarers’ role in keeping world trade flowing in this area goes largely unrecognised by governments,” says INTERTANKO’s Chairman Capt Graham Westgarth. “Imagine if a 747 jumbo jet had been hijacked with 400 people onboard held for millions of dollars in ransom and that hundreds of other planes had been attacked week in week out over the last year in unsuccessful hijacking attempts. Would there be government action?”

There is little public outcry and therefore relatively little effort by national governments around the world to stop Somali pirates. National governments hold the key to resolving this crisis. But they seem unwilling to face reality and act, says Westgarth.

Their brief to the naval forces has, in most cases, been simply to deter and disrupt unless it involves a national interest.

Even when caught red handed by naval forces, 80% of pirates are released to attack again. Why? Because the world’s politicians don’t realise the severity of this critical situation.

How many ships need to be attacked? How many hostages taken, tortured and killed? How much is enough for national governments to take real action?

Governments might take note of India’s very recent actions. Three days after the decision by India’s government to crack down harder on piracy, a pirate mothership was re-taken by an Indian naval vessel. The hostage crew was released unharmed and 62 pirates were detained and taken to India where they await trial.

The shipping industry-backed campaign to draw government attention to the crisis that is Somali piracy (SOS SaveOurSeafarers) is sending letters to heads of government via the SOS website www.saveourseafarers.com.

India is the number one receiver of the total of 8,500 SOS letters sent so far, with 1,460 letters received to date by India’s Prime Minister’s Office. We encourage as many as possible to send a letter to their government – just two clicks will do it. Of course governments should be engaged in efforts to tackle the root causes of piracy. But this work may take years to have effect. “In the meantime piracy is out of control,” says Westgarth. “International trade is threatened. Governments need to protect the world’s shipping lanes by showing political will, not political indifference.”

ICS appears to turn away members as they quietly suspend a membership category

The Institute of Chartered Shipbrokers (ICS), with a world-wide membership of around 3,500 has taken the surprise step of suspending the Affiliate Membership category, pending a review of all membership types.

According to the ICS’s application form for Affiliate membership, qualification for the category was stated as being based on candidates demonstrating that they had passed an ICS one day course; had passed one or more examinations from the ICS syllabus; had passed any recognised maritime related course (such as Background to Shipping); or had over 20 hours of study as part of a related degree programme.

We became aware of, and raised questions with the ICS on this matter following feedback from a prospective affiliate member who recently had their application rejected. The affiliate membership form was still available on the ICS website on March 4, but has been removed since we asked about this category suspension. It appears that the decision was made somewhat on the quiet and that not even everyone in the office was fully aware…  

We believe that the affiliate category was a valuable addition to the membership base as it attracted a significant group of people for whom full membership may not be appropriate or even desired, but did provide a useful stepping stone for those who favour the ‘climbing the ladder’ approach, building up to full membership over time and collecting recognition along the way.

We would suggest that this method can be shown to build trust and loyalty to the ICS and was previously seen as a valuable way of engaging with students before they qualified as Members.

The category of Affiliate is valid under the ICS Bye-Laws (which exist by Royal Charter) and is defined as “a person who is an Affiliate by virtue of Bye Law 13 or may be registered as such pursuant to these Bye Laws”

Bye Law 13 states:

“REGISTERED STUDENTS & AFFILIATES 

 Candidates wishing to take the Institute’s qualifying examinations must register as a student and pay such registration fees as may apply.  Applicants for registration as a student shall comply with such educational and employment qualifications as the Controlling Council may prescribe. 

A Registered Student who has completed his qualifying examinations but is not eligible for admission to Membership pending completion of practical tests may on application to the Membership Committee be granted Affiliate status for a period not exceeding five years or until he is eligible, whichever is sooner.      

A registered student may take such other examinations or practical tests as the Education & Training Committee shall determine from time to time and on completion of such non-qualifying examinations may be granted Affiliate status for so long as he continues to pay the annual affiliates subscription. “ 

It seems clear to us that the affiliate category is NOT the same as being a member (see also Bye Law 3), but that it does allow for the candidate and the ICS to engage with each other in a constructive and purposeful manner.  

We can’t help but wonder if one of the issues at stake here relates to members benefits, as affiliates may have had access to the same benefits as full members (with the exception of actually describing themselves, legitimately, as members)? Perhaps the fact that the ICS has embraced some technology and now offers their quarterly magazine to anyone (member or not) online rather than in printed copy, has ruffled some feathers? (Missed the last copy? Here it is) Or is there some other tussle over what membership means at play? 

To be absolutely clear, we are fully supportive of a review of membership categories and the benefits of belonging to each, but we have concerns that a committee room decision, arrived at without consultation, to suspend an integral part of the potential membership process is short sighted. We have offered to provide the views, feedback and experience of students who like online study and also value the affiliate membership category and hope that they will be taken into consideration in the review process.

For those of you taking Background to Shipping, you will still get your ICS endorsed certificate and we will continue to try and get this category, or something equivalent, re-instated. 

Save our Seafarers - Sign up, now!

An advert will appear in the Financial Times and Wall Street Journal tomorrow (March 1, 2011) to try and drive people to understand that Piracy is not just a diversion for the shipping industry, but is an issue that deserves international governmental attention, and deserves it now. 

The advert (click to enbiggen):

We say well done to ITF, ICS, Intertanko, Intercargo and BIMCO for placing this advert and we urge YOU (if you agree that the enough is enough) to sign up your support on www.SaveOurSeafarers.com 

Just how low can the container index go, and is ordering more ships sensible?

Just how low can the container index go, and is ordering more ships sensible?

HONG KONG, Feb 18 (Reuters) - Daewoo Shipbuilding & Marine Engineering <042660.KS> has won a $2 billion order from A.P. Moeller-Maersk AS <MAERSKb.CO> to build 10 container ships, and is in talks for another 10 ships, worth $4 billion in total, a source close to the deal said on Friday. 

   “The deal has been signed and they are preparing for details ahead of a public announcement expected next week,” said the source, who declined to be named as the deal is not publicly announced. 

   Both Daewoo and Maersk declined to comment. 

   Daewoo, the world’s No.2 shipbuilder, has received the order to build a 18,000 TEU (twenty-foot equivalent units)-sized carrier, the largest ever container ship, for the Danish company, the owner of the world’s largest container shipping firm Maersk Line.    

   Maersk Line’s North Asia chief, Tim Smith, plans to hold a news conference on Monday in Hong Kong over its business plans in Asia. 

   (Editing by Dhara Ranasinghe)     

To be honest, I knew something was up, having been invited to attend a presentation on ‘The Future of Shipping’ to be given on Monday by Eivind Kolding, CEO Maersk Line (Denmark) and Nam Sang Tae, President, CEO and Director Daewoo Shipbuilding & Marine Engineering (S.Korea) but, following a slide this week across all the major four routes, there doesn’t appear to be much upside in the short term and so, yes, I think I was a little surprised at the size of this order. 

In terms of market numbers, GFI tell us that:  

SCFI slipped -30.86 to 1060.47 (-2.8%)

Europe fell -59 to 1246 (-4.5%)

Med fell -37 to 1167 (-3.1%)

US West Coast fell -65 to 1835 (-3.4%)

US East Coast fell -68 to 3056 (-2.2%)

Meanwhile, Clarksons tweeted (18 Feb) :

All of which makes for depressing reading…

So… Let’s see what the bosses at Maersk and Daewoo have to tell us on the future of shipping on Monday.

@intertanko on the Irene SL hijacking…

The hijacking by pirates of 2 million barrels of Kuwaiti crude oil destined for the U.S. in a large Greek tanker in the middle of the main sea lanes coming from the Middle East Gulf marks a significant shift in the impact of the piracy crisis in the Indian Ocean.

The Irene SL’s cargo of Kuwaiti crude oil represents nearly 20% (one fifth) of total U.S. daily crude oil imports. This one cargo is 12% of all oil coming out of the Middle East Gulf each day, and 5% of total daily world seaborne oil supply.

The piracy situation is now spinning out of control into the entire Indian Ocean right to the top of the Arabian Sea over 1,000 miles from the coast of Somalia. This rapid expansion has been accomplished through the pirates’ use of motherships.

If piracy in the Indian Ocean is left unabated, it will strangle these crucial shipping lanes with the potential to severely disrupt oil flows to the U.S. and to the rest of the world.

We need to see a significant increase in government ‘will’ to eradicate piracy in the Indian Ocean and not just contain it.

Joe Angelo, Managing Director, INTERTANKO