Monday, December 14, 2009

Bryant’s Maritime Blog – 14 December 2009

Headlines: IMO – Secretary-General at COP 15; EU – first anniversary of EU NAVFOR; UNCTAD – Review of Maritime Transport 2009; Treasury – amendments to Terrorism Risk Insurance Program; USCG – e-mail submission of merchant mariner credential applications; Bill introduced re Arctic deep water sea port; Arbitration award of interest and attorneys’ fees upheld; and UK – report on grounding of sail training vessel.

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Note: This blog is one section of the Bryant’s Maritime Consulting website. Visit the site for more extensive maritime regulatory information. Individual concerns may be addressed by retaining Dennis Bryant directly. Much of the highlighted text in this newsletter constitutes links to Internet sites providing more detailed information. Links on this page may be in PDF format, requiring use of Adobe Acrobat Reader. Comments on these postings are encouraged and may be made by clicking the envelope that appears at the end of each posting. Be aware that the daily blog entry is a single posting, even though it contains a number of individual items.

IMO – Secretary-General at COP 15

clip_image004 The IMO issued a news release stating that Secretary-General Efthimios Mitropoulos reminded delegates at the United Nations Climate Change Conference in Copenhagen (COP 15) of the importance of regulating the shipping industry through a competent international body that can establish the appropriate global standards. (12/11/09).

EU – first anniversary of EU NAVFOR

clip_image006 The EU Maritime Security Centre – Horn of Africa (MSC-HOA) issued a press release noting that 10 December marked the first anniversary of EU NAVFOR Somalia – Operation Atalanta. The missions of Operation Atalanta are: (1) to protect World Food Program shipments into Somalia; (2) to deter and disrupt piracy; and (3) to protect vulnerable shipping. (12/10/09).

UNCTAD – Review of Maritime Transport 2009

clip_image008 The United Nations Conference on Trade and Development (UNCTAD) issued a news release stating that its Review of Maritime Transport 2009 suggests that the global economic downturn and financial crisis slowed growth in world seaborne trade, while an increase in the supply of vessels has kept freight rates depressed. (12/8/09).

Treasury – amendments to Terrorism Risk Insurance Program

clip_image010 The US Department of the Treasury issued two final rules amending regulations relating to the Terrorism Risk Insurance Program (TRIP). The amendments implement the Terrorism Risk Insurance Program Reauthorization Act of 2007, which extends TRIP until December 31, 2014. The first amendment addresses recoupment of the Federal share of compensation for insured losses. In particular, the rule describes how Treasury will determine the amounts to be recouped and establishes procedures insurers are to use for collecting Federal Terrorism Policy Surcharges and remitting them to Treasury. 74 Fed. Reg. 66051 (December 14, 2009). The second amendment caps the annual liability for insured losses at $100 billion. In particular, the rule describes how Treasury intends to determine the pro rata share of insured losses under the Program when insured losses would otherwise exceed the cap on annual liability. 74 Fed. Reg. 66061 (December 14, 2009). Both rules come into effect on January 13, 2010.

USCG – e-mail submission of merchant mariner credential applications

clip_image012 The US Coast Guard issued a notice stating that, beginning January 4, 2010, it will accept merchant mariner credential applications at the 17 Regional Examination Centers (RECs) via e-mail. (12/10/09).

Bill introduced re Arctic deep water sea port

clip_image014 Senator Murkowski (R-AK) introduced the Arctic Deep Water Sea Port Act of 2009 (S. 2849) to require a study and report on the feasibility and potential of establishing a deep water sea port in the Arctic to protect and advance strategic United States interests within the evolving and ever more important region. (12/8/09).

Arbitration award of interest and attorneys’ fees upheld

clip_image016 In a non-precedential decision, the US Court of Appeals for the Third Circuit upheld an award of interest and attorneys’ fees by an arbitrator even though the arbitration agreement did not address those issues. The underlying dispute in the instant case concerned responsibility for excess water in a cargo of fuel oil being delivered from Venezuela to New Jersey. The arbitrator ruled in favor of the ship owner, finding that the fuel oil was contaminated with excess water prior to loading. In addition to awarding demurrage damages, the arbitrator also awarded pre- and post-judgment interest and attorneys’ fees to the prevailing party. The cargo owner contended that the award should be vacated because the arbitrator exceeded his authority as defined in the arbitration agreement. In denying relief, the appellate court pointed out that both parties claimed pre- and post-judgment interest in their submittals to the arbitrator and that the cargo owner had claimed attorneys’ fees in its submittal to the arbitrator. Andorra Services v. Venfleet, No. 08-4902 (3rd Cir., December 10, 2009).

UK – report on grounding of sail training vessel

clip_image018 The UK Marine Accident Investigation Branch (MAIB) issued the report of its investigation of the grounding of a sail training vessel near Chapman’s Pool on 5 April 2009. The brig, with 23 sea cadets on board, was being operated by the relief captain, who was not a professional mariner. He became complacent, navigating the vessel, acting as helmsman and lookout, and directing the setting of sails simultaneously. He failed to notice that the vessel had deviated from its intended course. The subsequent grounding caused no major damage and no injuries. The Marine Society & Sea Cadets (MSSC) has since made extensive changes designed to improve navigational procedures on board its vessels. The Association of Sail Training Organizations (ASTO) is establishing a workgroup with the Maritime and Coastguard Agency (MCA) to consider the management of safety and develop best practice guidelines for the UK sail training industry. Report No. 26/2009 (12/11/09).

If you have questions regarding the above items, please contact the editor:

Dennis L. Bryant

Bryant’s Maritime Consulting

4845 SW 91st Way
Gainesville, FL 32608-8135

USA

1-352-692-5493
dennis.l.bryant@gmail.com

http://brymar-consulting.com

© Dennis L. Bryant – December 2009

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