New South-East India & Europe service announced

COSCO SHIPPING Lines has announced the launch of the IEX service between East India and North Europe from Vizag on October 26, 2019. The service, connecting four other ports in South-East India, will be operated in collaboration with Yang Ming (IEX), ONE (IO3), OOCL and Hapag-Lloyd, informed a release.

This service will provide direct callings between East India and North Europe and especially opens up new development opportunities for customers located in Vizag, Krishnapatnam and Tuticorin. Meanwhile, COSCO SHIPPING Lines will leverage the major hub of Piraeus to offer comprehensive coverage of the Black Sea and Adriatic, along with swift transit to Central Europe and the Balkans by Land-Sea Express service, the release said.

The service will comprise 9 x 6,500-TEU vessels operating on a fixed-day weekly rotation, as follows: Vizag – Krishnapatnam – Chennai – Tuticorin – Colombo – Cochin – Damietta – Piraeus – Rotterdam – London Gateway – Hamburg – Antwerp – Le Havre – Damietta – Jeddah – Colombo – Vizag. 

With this new launch, COSCO SHIPPING Lines will be able to significantly reinforce its East India and Europe offer, providing more unique coverage and diversified network to its valued customers, the release added.

Source : Exim News Service - Shanghai, July 18

Stranded Indian Ship 'Malaviya Twenty' Bankrupt, Put Up For Sale

Captain Nikesh Rastogi yesterday expressed relief at prospect of being able to return to his home and family in Mumbai once the sale process is completed.

All India | Press Trust of India | Updated: September 06, 2018 17:24 IST

The Malaviya Twenty, estimated to be worth between 700,000 pounds and 800,000 pounds was seized

London: Indian ship 'Malaviya Twenty', which has been stranded at a port in Great Yarmouth in the East Anglia region of England since July 2016 after its Indian owners declared bankruptcy, is on the verge of being sold by next week.

Captain Nikesh Rastogi on Wednesday expressed relief at prospect of being able to return to his home and family in Mumbai once the sale process is completed.

"We hope there's a suitable quote by the 11th (September) when the tenders open and on the 12th we could be enjoying in-flight meals," Mr Rastogi was quoted by local media as saying.

"It would be a huge sigh of relief. The worst is over... the Marshal has been kind enough to seize the vessel. Once you leave this location...it will hit you that you are finally free," he said.

Nikesh Rastogi joined the already-marooned boat 18 months ago and has not been paid since late last year, along with his three crew members. They have been stuck aboard the boat, a supply vessel, in the town's port as they feared it could be deemed a derelict and taken over if they left, meaning they would go unpaid.

"The captain cannot abandon the ship because it will have consequences for his operating licence. He, along with three other crew, are stuck on board and have been undergoing severe hardship," explained Paul Keenan, inspector with the International Transport Workers' Federation (ITF), who has been involved with the dispute from the start.

The 'Malaviya Twenty', estimated to be worth between 700,000 pounds and 800,000 pounds - was "arrested" by the UK's Admiralty Marshal when the crew's lawyers from Birketts law firm secured a High Court order last month for its sale.

Creditors have been battling for control of the 4,500-dwt platform supply vessel since its owners, GOL Offshore, went into liquidation in February last year.

A settlement over outstanding wages was agreed in November last year through the ship's Maritime Labour Convention 2006 protection and indemnity cover, allowing over a dozen other crew members to return home to India.

Great Yarmouth harbour owner Peel Ports said the crew would be paid ahead of the port because the Marshal had seized the vessel on their behalf.

"It should work through quite quickly and then the crew can go home as they deserve to do and get the pay they deserve too," Peel Ports said.

A sister vessel, Malaviya Seven, was sold last year after being stranded with a crew for over a year in Scotland. Also owned by Mumbai's GOL Offshore, the proceeds from the ship's auction had helped pay off the nearly 11 unpaid crew at the time in September last year.

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India - Maldives Ferry Services Soon

The Indian Cabinet gave its approval ex post facto to the pact signed between India and the Maldives to start passenger and cargo services through the sea route.

The memorandum of understanding (MoU) was signed between India and Maldives on June 8, during the visit of Prime Minister Narendra Modi to the island country.

The MoU will pave the way for ferry services between the Maldives and India, said a statement from the ministry of shipping, India. The proposed ferry service would contribute in a big way to promote people to people contact and to boost bilateral trade.

Male, the capital of the Maldives and most populous city and Kulhudhuffushi, the third most populous city of Maldives are good prospects for introduction of ferry service from Kochi (India) for both tourists as well as cargo.

While Male is situated at a distance of 708 Kms from Kochi, Kulhudhuffushi is 509 Kms away. Kulhudhuffushi and the islands around are a major population center in the northern part of Maldives and have a large number of resorts which could be possible tourist destinations for Indians.

Present connectivity involves flights to Male and sea planes to the resorts, which is an expensive option. On the other hand, connectivity with Kochi through sea could promote inbound tourism, particularly health and wellness tourism for India. A large number of Maldivians also travel to Kerala and other South Indian cities for educational purposes.

With a view to harness the potential opportunity that lies in passenger and cargo transportation by sea between the two countries, this MoU with Maldives has been signed. The proposed ferry service would contribute in a big way to promote people to people contact and to boost bilateral trade.

MACN's Port Integrity Campaign in India

he Maritime Anti-Corruption Network (MACN) has announced the launch of a groundbreaking Port Integrity Campaign in India, with the support of the Government of India.

The global business network of over 110 companies working together to tackle corruption in the maritime industry said that the campaign, which aims to reduce and (in the long term) eliminate integrity issues and bottlenecks to trade during operations in Indian ports, is a collective action of MACN, the Government of India, international organizations, and local industry stakeholders.

The pilot of the campaign will take place in Mumbai ports (MbPT and JNPT) and will run until October this year.

 Key activities of the campaign include the implementation of integrity training for port officials and the establishment of clear escalation and reporting processes. Following the pilot, MACN aims to expand the program to other Indian ports.

Cecilia Müller Torbrand, Executive Director, MACN, says: “MACN’s experiences in locations including Nigeria, the Suez Canal, and Argentina show us that real change is possible when all parties are engaged. That’s why we are delighted to have the support of so many key stakeholders for this Campaign to improve the operating environment in Indian ports.”

The Port Integrity Campaign has been made possible by strong commitment from the Indian Government to work with the private sector and to address integrity issues in Indian ports.

The Ministry of Shipping, India, stated: “We are committed to ensuring that vessels calling port in India do not face unnecessary obstacles or illicit demands. Tackling these issues is good for the shipping industry, for port workers, and for India as a trade destination. We are pleased to be joining forces with MACN and other stakeholders to implement concrete actions with the potential for real impact.”

India Develops 111 Inland Waterways

The government of India has informed that 111 waterways are being developed in phased manner as National Waterways (NWs) in the country for the purpose of shipping and navigation.

The Minister of State for Shipping Mansukh Mandaviya that various initiatives have been taken by the Government to increase the use of Inland Waterways and Coastal Shipping for greater cargo shipment.

These include providing assured depth of water in the channels, navigation aids like GPS and River Information System, terminals at regular intervals, facilities for mechanized handling of cargo handling etc.

The Minister also informed that cargo transportation on waterways rose to 72.31 Million Tonnes in the year 2018-19, from 55.20 MT in 2016-17 and 55.03 MT in 2017-18.

According to government agencies, National Waterways are the cheapest mode of transporting goods as compared to other ways of freight transportation.

A minimum 40 % discount and priority in berthing is being given to coastal vessels at major ports. Ministry of Fertilizers and Department of Promotion of Industry and Internal Trade have respectively agreed to provide subsidy for transportation of fertilizers and for transportation of  raw materials and finished goods for new industrial units in North Eastern Region through IWT mode.

Licensing relaxations have been made under section 406 and 407 of the Merchant Shipping Act 1958 for fertilizers, agricultural products, fisheries, horticultural, and animal husbandry products, empty containers and containers being transshipped from another Indian port, special vessels such as Ro-Ro, Ro-Pax, Project cargo/ODC.

Allowing carriage of coastal containers through the territorial waters of Sri Lanka, Bangladesh and Myanmar and streamlining of mechanism for freight subsidy reimbursement for fertilizers are other steps taken in this direction.

Freight rates rise for oil refiners as insurers up cover on Hormuz route

Impact could be as high as $300,000 a day

India’s oil refiners sourcing crude from West Asia are facing freight increases of as much as $300,000 per day. This comes after global marine insurers imposed an additional war risk premium of 0.35-4 per cent of the value of the ship for every transit through the Strait of Hormuz — the world’s busiest oil shipping lane and the only channel for vessels to enter and exit the Persian Gulf — in the wake of the recent attacks on oil tankers.
The freight rates for an Arabian Gulf-to-India run for a modern Suezmaz tanker or a very large gas carrier (VLGC) have gone up by $150,000 to $300,000 per day because of the additional war risk premium on the ship’s hull and machinery levied by underwriters, said an executive with an Indian shipping company.
The extra premium for a modern very large crude carrier (VLCC) will be much more, and the freight rates will be higher to that extent, he added.
The additional premium is levied on ships by insurers for every transit through the Strait of Hormuz carrying crude oil for global refiners.
India imported 84 per cent of its crude requirement in FY19 and two of every three barrels were sourced from suppliers in West Asia, according to government data.
For a spot voyage, the ship-owner can choose to absorb the extra spend or pass it on to the customer, depending on the demand-and-supply scenario.
“Oil refiners have started asking ship-owners to quote an all-inclusive rate while finalising spot charters,” said an executive with another shipping firm. “Why should we absorb (the extra spend)? Besides, it’s a global impact,” he observed.
For a time-charter contract that is already running, the ship-owner will have to pay the extra premium and then get it reimbursed from the charterer.

Chevron war risk clause

“There is a Chevron war risk clause in every charter party, which says that any additional war risk premium during the currency of the voyage is to be borne by the charterer. At the time of chartering, it is on the ship-owner’s account, but during the currency of the voyage, the charterers are liable to pay any increase in premium,” he said.
Oil refiners are likely to reimburse the extra premium to ship-owners on submission of documentary evidence, an official with one of the state-run refiners said.
The freight rates for an Arabian Gulf-to-India run for a modern Suezmaz tanker have gone up by up to $300,000 a day

Ship design and testing facility to come up at IIT-Kharagpur in 3 years

Our Bureau IIT Kharagpur will have a ship design and testing facility which will enable India to test vessels within the country. At present, Indian shipyards go to Germany, the Netherlands, Russia and Belgium to test ships.
The full facility will be ready in three years and the investment can be recovered in the subsequent two years, Partha P Chakrabarti, Director, IIT-Kharagpur, said at a conference here on Wednesday.
The facility, set up in collaboration with the Shipping Ministry at a cost of ₹70 crore, will also design ships for shallow waters that can be powered by LNG and electricity. IIT-Kharagpur will be providing the space next to its present centre. After five years, the project will be self-sustaining, Chakrabarti said.
“The facility can be used not just by Indian shipyards, but also by shipyards outside India as well,” Mansukhlal Mandaviya, Minister of Shipping (Independent Charge), said.
The cost will be saved and recouped in several areas, explained Chakrabarti. For instance, the amount of money India spends in testing ships abroad — paid in dollars — is saved.
Revenue will be generated by providing the testing services, said Chakrabarti, adding that they expect IIT Kharagpur to develop an ecosystem for entrepreneurs.
Globally, European companies have also approached IIT-Kharagpur for collaboration. “We are speaking to German companies as they have the river Rhine which has similar characteristics like the Ganga in terms of depth,” he said, adding this can also be used to design autonomous ships.