|The National Association of Marine
The NAMSGlobal eNews
01 June 2010
Greeting Website Visitor
Gregory B. Weeter, NAMS-CMS, Editor
NAMSGlobal National Office
Richard L. Frenzel, President
Gregon Gant, Vice-President
Edward L. Shearer, Secretary
James A. Neville, Treasurer
In This Issue
Before commenting on anything else, I want to give a grateful “THANK YOU” to this past year’s officers and board members for their efforts in looking forward to the future of NAMSGlobal. We plan to continue on this path of greater recognition of NAMSGlobal throughout the maritime world and to expedite those adjustments necessary for us to have a worldwide influence.
Some of the things you will see in the near future, will be a greater influence in recruiting qualified members, both in the CMS status and younger potential CMS’ who are presently eligible for an Associate status. We will be looking for more of our senior members to be looking for recently retired U.S. Coast Guard Marine Inspectors, Chief Engineers, and Masters, recent maritime college graduates, and other potential surveyors, to be brought into our organization as Apprentices, to be mentored into quality CMS’, much like John L. Kingston, NAMS-CMS (Retired), mentored people like past president, Tommy Laing, NAMS-CMS, and myself, into becoming successful members of the profession.
We will also be reviewing all of our testing content and procedures to bring the question content and wording into easily understood language, while not reducing the quality and thoroughness of the tests. This is an immediate goal, which we intend to see completed in the next six months. The longer goal is to determine a way to administer the tests by computer, without compromising the test security, and eliminating the need to have a CMS lose a days production by having to attend the test as a proctor. I admit this will take awhile longer to perfect.
To affect these improvements, we are receiving enthusiastic responses from those returning, and those new, committee chairmen for the current two-year terms. A few committee chairmen will be retiring, and some moving on to other activities, and their service has been greatly appreciated by all. This gives us the opportunity to bring fresh blood to the organization management with more member participation.
On a different note, the recent fire in the office
building, which we have been renting on a month-to-month basis, is a
disaster no one wanted to happen. However, thanks to quick action by our
venerable Office Manager, Evie Hobbs, our computer hard drive was saved.
Many thanks also to our Nat. VP, Greg Gant, NAMS-CMS, who took the time to
While this was an unfortunate incident, the bright spot is we will now be able to have a definite, renewable, time lease at a nearby location, with only a reasonable rate increase.
Final results will be sent out as soon as everything is signed.
I look forward to seeing all of our members at the
next San Francisco Conference, and the following Mid-continent Conference
Richard L. Frenzel, NAMS-CMS, National President
Upcoming Educational Events
June & July 2010, various locations
IRCA ISO ISM Lead Auditor Training by Register
Training Institute (IRTI), a department of the International Register of
Shipping. International Register Training Institute (IRTI) is a division
of the well-known classification society International Register of
Shipping (IRS). IRS has vast experience in training its international
network of surveyors for compliance to meet IMO or
CONTACT: (305) 576 - 4403 or email: IRSTraining@intlreg.org
08 June 2010,
regular meeting of TAPA
If you have any questions regarding events, hotel, or other related details, please do not hesitate to contact Andrea Johnson at Andrea.firstname.lastname@example.org
14/15 June 2010,
International Institute of Marine Surveyors (IIMS)
Conference delayed due to
22 - 24 August 2010,
42nd Annual National Marine Conference West: Conference Chair, Lorne
Gould, and NAMS-CMS. Location: Radisson Hotel Fisherman’s Wharf,
28 - 30 September 2010,
The International Boatbuilders Exhibition & Conference (IBEX). The renowned IBEX Seminar Series is produced by the editors of Professional BoatBuilder magazine in conjunction several leading marine industry associations. Intensive education hosted by the foremost marine industry authorities on their respective topics and receive valuable and timely inside information on new techniques, materials and methods, as well as cost-saving solutions and ideas to enhance your factory, yard, or shop, or improve the way you do business. Eleven specialized tracks allow you to customize a seminar schedule that meets your career or company needs. All qualified marine industry professionals are invited to attend IBEX. There is no charge to walk the exhibit halls, but registration is required. Click HERE to register for a FREE exhibit hall badge. Please register in June. For more details go in the worldwide web to http://www.ibexshow.com/index.php
Register for Seminars EARLY & SAVE! — Pre-Registration Discount Deadline: August 20, 2010. IBEX is for the TRADE ONLY, and is not open to the general public. You must be directly involved in the marine industry to attend. A business card showing your affiliation to the marine industry is required to register.
01 October 2010
Joint Great Lakes-Western Rivers Region Conference, immediately following the end of the IBEX. Details to be posted on NAMSGlobal Website under the “Events” tab (www.namsglobal.org/events) as more details become available.
15 - 17 October, 2010
Cargo Consultants, LLC will be holding a three-day school of instruction
on the practice of draught surveys October 15 - 17 in
For complete course description, please direct your inquiry to: email@example.com or 202-239-2729.
10 - 12 April 2011 St. Louis, Missouri
The NAMSGlobal 49th National Conference East (Spring 2011) will be held mid-continent in St. Louis, Missouri at the Crown Plaza Hotel. More details as they become available.
NAMSGlobal Member Jack Hornor installed as Treasurer of ABYC Board of Directors
April 16, 2010,
Insurers Feel the Strain
The marine insurance market has had a difficult couple of years for
a wide variety of reasons, although by far and away the biggest factor has
been the impact of the economic downturn. As Deirdre Littlefield, the
president of the International Union of Marine Insurance (IUMI), explained
during the organization’s annual winter meeting in January, the marine
insurance industry is “inextricably tied to global trade”. Prior to the
onset of the financial crisis in 2008, the shipping industry had been
booming, and vessels were worked hard in order to meet demand. However,
when the economic downturn hit, levels of trade dropped off, and although
this has hit shipowners particularly hard, the impact has also trickled
through to the marine insurance market. In the cargo insurance market,
underwriters have seen less business due to the downturn, and consequently
the volume of premium entering the market has decreased.
USCG – Inland Navigation Rules moved to CFR
The US Coast Guard issued a final rule placing the Inland Navigation Rules in the Code of Federal Regulations (CFR). Several years ago, Congress authorized the Coast Guard to adopt regulations for the Inland Navigation Rules and directed that the statutory version of the Rules would be repealed upon such adoption. The final rule comes into effect on May 17. This is solely an administrative process and no substantive changes to the Inland Navigation Rules are intended. (April 15, 2010). Courtesy: Bryant’s Maritime Blog – Bryant’s Maritime Consulting firstname.lastname@example.org Website http://brymar-consulting.com © Dennis L. Bryant
The Tropical Meteorology Project at
Average Adjusters ask: Who gets the residual value?
Lee Coppack writes to Bow Wave: Who is entitled to the residual value of a marine hull, so badly damaged that it is declared a constructive total loss (CTL), was the challenging question put to the Association of Average Adjusters (AAA) at their annual meeting held yesterday (Thurs) in the Lloyd’s Old Library, London. It is a particularly relevant issue at a time of volatile hull values.
AAA Chairman for 2009-10, High Court judge Mr. Justice Tomlinson,
spoke to the meeting on the subject under the title "Underwriters decline
notice of abandonment" some new questions raised by an old phrase. He was
the presiding judge in the important 2009 case of the WD Fairway, a
mega-size trailer hopper dredger which became a CTL as a result of a
collision off the coast of
Mr. Justice Tomlinson described how once a ship or rig has been so badly damaged that it is declared beyond repair, it may still have material commercial value. As such, there can be a tussle between the owners and underwriters about who is entitled to what. Underwriters will not accept notice of abandonment, because it would also mean accepting the associated liabilities, such as wreck removal and pollution. At the same time, having paid the claim, they want to protect their interest in the residual value, which would be much clearer in law if they did accept notice of abandonment.
A further complication is that the law governing the marine insurance contract, more specifically English law in this analysis, is rarely the law which applies to the location of the damaged ship or rig.
What Mr. Justice Tomlinson called "the ritual steps of the dance which invariably follow the occurrence of a CTL" usually resolve the issues between owner and underwriter by co-operation, but it is not inevitable thanks to what he described as the "idiosyncrasies of the marine insurance contract." Courtesy Bow Wave--the marine and transport e-zine. BOW WAVE is published each week to over 15 000 Readers in the transport, insurance, shipping and finance industries. To subscribe contact Sam Ignarski email@example.com
There has been a resurgence of interest in the use of air under a
ship’s keel to reduce drag. NYK and Mitsubishi heavy industries in
Human Error Claims Concern Underwriters
Crew standards remain a concern for the hull and machinery
insurance market as partial losses remain high despite the impact of the
Owners threatened with prosecution for 'significant breaches' of rest time regulations
The Maritime & Coastguard Agency's (MCA) decision to stage a crackdown on compliance with the rules governing seafarers' hours of work and rest has been welcomed by many in the shipping industry.
Announcing the campaign last month, the MCA warned that shipping companies could find themselves in court if checks discovered that they were flouting the regulations. Paul Coley, the Agency's assistant director of seafarers and ships, commented: 'It has been known for many years that tiredness caused by long working hours and low manning is dangerous to both ships and their crews.
'Shipping companies have been warned about the consequences of fatigue many times. This time it's not just a warning,' he added.
is determined to stamp out excess hours in
'Where time does not permit for detailed checking onboard, copies will be requested of relevant documents so that they can be checked after the event,' the MCA added.
Surveyors will also be checking for compliance with the requirement for ships to post a dedicated lookout at night, and will look for evidence that companies are carrying out audits to ensure that the hours of rest requirements are being met.
said the campaign - which is already under way - is being mounted as part
of a three-year strategy to combat fatigue and the initiative will be
undertaken in ports right across the
The MCA said no additional surveyors would be directed into supporting the crackdown on fatigue, with the campaign focusing on hours of work within the existing inspection regime.
A 91-hour week is still permitted by the regulations, something that is manifestly unsafe and would not be permitted in other safety-critical sectors such as aviation.
The campaign comes as the European Commission-funded Project
Horizon research project this month begins simulator trials designed to
assess the impact of long working hours on seafarers. Experts at the
Chalmers University of Technology in
Courtesy FLASHLIGHT, a free monthly e-newsletter circulated to more than 5,000 people involved in marine surveying around the world. It is circulated to anybody who wishes to receive a copy. It is a collation of articles relevant to our profession taken from various publications together with contributions from readers. Letters, opinions and articles relating to our profession are welcomed for the newsletter. firstname.lastname@example.org
Coast Guard Seeks Applicants for Boating Safety Advisory Council
In the May 10, 2010, Federal Register, the Coast Guard advertises for positions on this unpaid advisory committee which "advises the Coast Guard on recreational boating safety regulations and other major boating safety matters."
Coast Guard Seeks to Amend Its Recreational Boating Regulations
In the May 7, 2010, Federal Register, the Coast Guard publishes a Notice of Proposed Rulemaking which would "amend its rules related to numbering of undocumented vessels and reporting of casualties. These changes would align and modernize terminology used in the Standard Numbering System (SNS), the Vessel Identification System (VIS), and casualty reporting; require validation of vessel hull identification numbers; require SNS vessel owners to provide personally identifiable information; and provide administrative flexibility for States."
Courtesy Admiralty Update, the copyrighted and trademarked
e-newsletter on developments in U.S. Coast Guard regulations, state and
federal court decisions of interest to commercial and recreational marine
communities, written, edited, and produced by the firm of Goldsmith
& Ogrodowski, LLC, based in
Cargo Liabilities Supreme Court Challenge
The U.S. Supreme Court is expected to unsnarl a tangle that leaves
carriers and cargo owners questioning who should be liable for damages on
cargoes shipped from a foreign port. The court ruled in 2004 that a
railroad’s liability is limited under the 1936 Carriage of Goods by Sea
Act when it is transporting goods on the shipping line’s through bill of
lading. But that decision in
Liability under Carmack originally covered only goods transported
It should be no surprise that railroads want their liability limited by COGSA when they transport containers under an ocean carrier’s bill of lading — as written, COGSA limits liability to a fixed amount per package. Carmack says the railroad receiving the shipment is liable for its full value through the entire trip. In the real world, carriers and shippers routinely negotiate lower liability limits in exchange for better rates or service. The confusion will be compounded if the Supreme Court rules that the Carmack Amendment applies to all inland transportation, said maritime attorney Chester D. Hooper said.
On the one hand, railroads have the clout to require shipping lines
to indemnify their losses. On the other, ocean carriers will be obligated
to inform shippers of the higher liability limits available under Carmack.
“It’s very confusing. This nice door-to-door scheme that we set up in the
Rotterdam Rules with one standard of liability throughout is going to be
destroyed,” Hooper said. Hooper was a member of the
Fall In 2009 Ship Losses
The commercial maritime industry saw a decline in total loss
figures in 2009, compared to the previous year, at the same time that
actual gross tonnage loss increased, according to data released by the
International Union of Marine Insurance at its spring meetings in
Weather continues to be the major cause of total losses, representing 43.2% between 2005 and 2009. The downside for owners is that they face increasing economic strife and more technical operating problems. The upside for insurers is that many ships have less demanding and strenuous schedules and overworked crews are under far less pressure. Machinery damage remains the primary cause of major partial losses, accounting for 35% of the total between 2005 and 2009, followed by collisions/ contact and groundings.
On a more upbeat note, IUMI noted that key economic indicators were looking positive for cargo insurers in 2010. The International Monetary Fund was forecasting a recovery in 2010 and 2011, predicting that all economies will be back in growth mode but at different speeds in various regions, with trade volumes in developed countries increasing by 2%, while developing countries would see increases in excess of 6%. (Lloyd’s List, 4/7/2010.) Courtesy AIMU Weekly Bulletin.
Low-sulphur rules are creating serious challenges, seminar is warned
New 'green' fuel rules are posing a big risk to safety and are causing costly claims arising from engine damage, surveyors warned last month. Speaking at a marine insurance seminar in London, Gerry Williams - principal surveyor with BMT Marine & Offshore Surveys Ltd - said the increasingly complex low-sulphur regulations being applied in the US and Europe are creating 'a huge challenge' for shipping.
'Potentially, this could result in some ships carrying four different fuel types at any one time,' he explained. 'The complex changeovers will inevitably increase the opportunity for errors which in turn may lead to costly claims.'
Mr. Williams said that in order to comply with the legislation, ship's officers will have to maintain records to show that fuel has been changed in sufficient time before crossing into a control area.
The changeover can be done in approximately one hour, he added, but if it is done too quickly 'there is a danger you can gas up the engine'. A rapid change of temperature can also cause thermal shock or seizure of the fuel pumps.
Mr. Williams pointed out that there is little experience of the effects of using 0.1% sulphur, and he warned that what was described as 'bad fuel' in casualties is often more to do with poor handling, rather than substandard fuel. In one example, a chief engineer experiencing severe purification problems, such as heavy sludging, forced through the out of specification fuel rather than reporting a problem, and as a result wrecked the engine.
Poor management of even above average specification fuel could cause a very costly failure, he added. Since 2001, BMT surveyors had dealt with at least 30 instances of engine damage caused by fuel problems related to catalytic fines. This problem is increasing and is likely to get worse with the additional demands for low sulphur fuels,' Mr. Williams warned. Each of these casualties required a complete renewal of pistons, liners and injectors, at a cost of US$1m to $3m each.
He also expressed concern about unscrupulous suppliers adding chemical and other waste to fuel selling at up to $500 a ton, and warned that shipping companies should implement strict fuel management programmes to ensure sampling before use and regular inspection of handling.
(With thanks to the NAUTILUS Telegraph) Courtesy FLASHLIGHT, a free monthly e-newsletter circulated to more than 5,000 people involved in marine surveying around the world. It is circulated to anybody who wishes to receive a copy. It is a collation of articles relevant to our profession taken from various publications together with contributions from readers. Letters, opinions and articles relating to our profession are welcomed for the newsletter. email@example.com
In O’Hagan v. M&T Marine Group, LLC, 2010 WL 1372431 (S.D. Fla.
Mar. 31, 2010), Thomas O’Hagan and Francisco Arroyo, independent maritime
contractors working and living in Broward County, Florida and serving as
sub-contractors for M&T Marine Group, LLC (“M&T”), noticed, during
Hurricane Wilma, several brand new vessels owned by M&T “were taking
on water because the floating docks the vessels were tied to were sinking
and pulling the vessels over.” The court found O’Hagan and Arroyo provided
services to three of the vessels, including cutting dock lines from the
sinking piers, relocating the vessels to a seawall a few hundred yards
away, pumping water out of the vessels, and taking steps to preserve and
secure the vessels. The court found the post-salvage value of the three
vessels to be $1,938,000 and awarded O’Hagan and Arroyo 15% of this sum,
$290,700, to be divided equally. Courtesy Admiralty Update, the
copyrighted and trademarked e-newsletter on developments in U.S. Coast
Guard regulations, state and federal court decisions of interest to
commercial and recreational marine communities, written, edited, and
produced by the firm of Goldsmith & Ogrodowski, LLC, based in
Uberimmae Fidei Displaced by State Law
Black Stallion Enterprises v.
Needless to say, the fact situation which prompted the insurer's
argument is somewhat unusual. The co-defendant, when it still owned the
tank barge, had previously requested the same hull insurer to add the
barge to the policy's schedule. To do so, the insurer required the assured
to have the barge undergo a marine survey to confirm it was capable of
traversing the Gulf of Mexico and the
The insurer also claimed that the defendants had breached their duties under the doctrine of uberimmae fidei since they knew of the unseaworthiness of the tank barge and the request for the survey, but proceeded with the voyage anyway. The Court first held that there was no legal authority to extend a warranty of seaworthiness of a hull policy beyond the scheduled vessels.
Second, the Court held that the parties' communication concerning
the necessity for a marine survey prior to the voyage did not modify the
insurance contract under
The marine highways concept has a number of selling points. Cargo
carried coastwise, on the
The Australian Transport
Safety Bureau (ATSB) issued the report of its investigation into the
fatality on board a container ship at
Theft Prevention on Transit Losses
Facing a spike in truck heists targeting high-value pharmaceuticals, Johnson & Johnson implemented a cargo theft deterrence program, said Scott P. Borup, director of corporate risk management. The deterrence measures and a new accounting method that helps Johnson & Johnson's risk management department obtain favorable insurance pricing followed a series of truck thefts in 2008. To address the problem for Johnson & Johnson, Mr. Borup's risk management department convened a task force in 2009 composed of personnel from its accounting, logistics and security departments. As a result of the task force's findings, Johnson & Johnson trucks now operate with two drivers, escort cars are used often and tracking devices are installed in company trucks, among other security measures. The measures have prevented further thefts, Mr. Borup said. The task force revised the terms of certain high-value transactions so that title passes to the customer when the shipment reaches its destination. Therefore, Johnson & Johnson remains the insured party until the cargo reaches its customer. That allows Johnson & Johnson to purchase insurance that covers its manufacturing costs rather than coverage for the sales invoice price of the finished pharmaceuticals. (Business Insurance, 4/26/2010.) Courtesy AIMU Weekly Bulletin.
A 25 page list of IMO amendments which come into force in the next 8 months. A majority of the amendments take effect on July 1 2010. To view the list in PDF form, click here.
To access the advisory
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