- Transport on Line - hiltunen.htm

BUSINESS

I.M.O. decides on vessel traffic services, bulk carrier safety

New regional vessel traffic services will become effective 1 Jan., 1999,
under the "tacit amendment" procedure to the International Convention
for the Safety of Life at Sea of 1974. The decision was made recently by
the maritime safety committee of the International Maritime Organization.
Also, the committee has decided to recommend mandating the strengthening
of the bulkhead between cargo holds No. 1 and No. 2 on all bulk carriers
as a safety precaution. The issue will be taken up as the only item on
the agenda of the Safety of Life at Sea conference in November.

U.S. Supreme Court rules on workers compensation for those aboard ship

The U.S. Supreme Court ruled 12 May that people injured on navigable
vessels must have been performing "seaman's duties" when injured
to recover workers compensation damages (Harbor Tug & Barge Co. vs.
Papai et ux., No. 95-1621). Workers must also have a "substantial"
connection with the owner of the vessel. The decision was 6 to 3, with
a majority opinion written by Justice Anthony M. Kennedy. The decision
overturned a federal appellate court ruling and clarified a Supreme Court
decision from 1995. In the present case, John Papai suffered a disabling
knee injury during a one-day maintenance project in March 1989 on tug in
Alameda, Calif. Papai was painting the superstructure of the tug, owned
by Harbor Tug & Barge Co., a unit of Crowley Marine Services Inc. He
had been hired through the Inland Boatman's Union's hiring hall. After
his injury, Papai collected the workers compensation benefits: two-thirds
of wages provided under the U.S. Longshore Harbor Workers' Compensation
Act. Papai then sued to obtain seaman's status under the Jones Act, which
allows crewmembers to sue employers for damages due to ordinary negligence
and the condition of vessels. Those that are successful can recover all
lost wages as well as damages. In its 1995 decision (Chandris Inc. vs.
Latsis), the Supreme Court said people had to have been performing duties
that contribute to the function of the vessel or accomplishing its duties,
and have a substantial connection to a vessel or a group of vessels under
common ownership or control. Harbor Tug & Barge said Papai worked for
other owners, and so had no justification. A district court decided for
Harbor Tug & Barge, but it was reversed by the Ninth U.S. Circuit Court
of Appeals in December 1995 by 2 to 1. That court said the substantial
connection does not mean a permanent one. Further, Papai had previously
worked for Harbor Tug & Barge. But Kennedy wrote that the "only
connection a reasonable jury could identify among the vessels Papai worked
aboard is that each hired some of its employees from the same union hall
where it hired him," which is not sufficient. Also, the appellate
court ruled that a phrase from the earlier case meant that courts could
examine an employee's work history with different employers during a set
time period to determine what work was done. But Kennedy wrote that instead
it meant only the current duties with that employer could be examined.

Niigata and municipalities request more compensation in Nakhodka spill

The Japanese prefecture of Niigata and its municipalities on 5 June
requested 410 million Japanese yen/U.S.$3.54 million from Prisco Traffic
Ltd. and the International Oil Pollution Compensation Fund for damage caused
by the sinking of the Nakhodka (Russian-registry 13,157-gt, 20,471-dwt
tanker built in 1970, operated by Primorsk Shipping Co. and owned by Prisco
Traffic). Some 370 million yen/U.S.$3.20 million is for overtime work through
the end of March by prefectural and municipal employees. Combined with
an application in March, Niigata and its local governments have requested
610 million yen/U.S.$5.27 million. The Nakhodka broke in half 2 Jan. about
130 kilometers/80.6 miles northeast of the Oki Islands, Japan. Thirty-one
of the 32 crew were rescued and the master was killed. The Nakhodka carried
19,000 tons of grade C heavy fuel, or 19 million liters/five million gallons
or 133,000 barrels. More than five million liters/1.3 million gallons of
oil came ashore in Japan, affecting the prefectures of Fukui, Hyogo, Ishikawa,
Kyoto, Niigata, Shimane, Tottori and Toyama.

Preussag confirms rumors regarding Hapag-Lloyd

Preussag AG confirmed 5 June it was in talks to acquire a stake in Hapag-Lloyd
AG. Letters have been sent to large shareholders of Hapag-Lloyd, expressing
interest in purchasing their shares.

International Finance approves U.S.$42 million for Indonesian line

International Finance Corp. announced 2 June it has approved U.S.$42
million in loan and equity financing for PT Berlian Laju Tanker. The money
will be spent on a fleet expansion. This is International Finance's first
internationally syndicated loan to an Indonesian shipping firm which will
acquire vessels to be operated under the Indonesian-registry. The ships
include 10 new chemical tankers, ranging in size from 6,500-dwt to 9,000-dwt.
The deal includes a loan of U.S.$22 million for its own account and an
equity investment of U.S.$20 million. A syndicated loan of U.S.$68 million,
co-arranged by MeesPerson N.V., will be made.

Philippines in agreement with China Classification Society

The Philippine Maritime Industry Authority has signed an agreement with
the China Classification Society which formalizes the relationship. Upon
request by shipowners, the Philippines will now allow China Classification
Society to serve as the classification society for ships under Philippine
registry, issue statutory certificates and implement compliance with I.S.M.
Code requirements and pollution regulations.

APL to lease nine ships to subsidiary

APL Ltd. will lease nine containerships to a new unaffiliated firm as
part of its deal with Neptune Orient Lines Ltd. As a result, the nine will
be able to continue receiving subsidies from the U.S. government.

Euro-Baltic Lines collapsed?

Euro-Baltic Lines, a relatively new Russian business, has reportedly
collapsed.

Italian government proposes restructuring of shipping taxes

Italy has proposed that it consider corporate revenues from international
operations of shipping lines as offshore earnings. It would then tax 65
percent of the gross sum in 1998 and 50 percent in 1999. The master and
chief officer of Italian-registry ships would have to be Italian citizens,
but there are no regulations for the rest of the crew. Renumeration would
be granted in relation to country of origin, provided that minimum International
Transport Workers' Federation standards were followed.

Three Italian ferry lines forming consortium

In preparation for expanded competition on 1 Jan., 1999, three Italian
ferry lines have formed Linee Marittima Veloci. The consortium of Alilauro
S.p.A., Aliscafi SNAV S.p.A., and Navigazione Libera del Golfo involves
11 companies with 70 vessels.

Inchcape Shipping Services buying South African agency

Inchcape Shipping Services is acquiring Voigt Shipping (Pty.) Ltd.,
a specialized shipping agency in South Africa. Inchcape Shipping Services
will now offer full agency services at several South African ports.

Lykes to get additional subsidy, deal with Canadian Pacific delayed

Lykes Bros. Steamship Co. will get additional subsidy payments from
the U.S. Maritime Administration, after an audit of its operating differential
subsidy found a deficit. This is in addition to U.S.$2 million exepected
to be granted as soon as its deal with Canadian Pacific Ltd. is completed.
Meanwhile, the agreement between Lykes Bros. Steamship Co. and Canadian
Pacific Ltd. to sell Lykes Lines will be delayed, after the U.S. Maritime
Administration requested more information.

British council to get grant funding

The British Marine Equipment Council will receive grants from the United
Kingdom to help improve the competitiveness of the British maritime industry.

Plan for Bell Lines presented, investors abandon

A "rescue plan" for Bell Lines Ltd. was presented to the High
Court in Dublin, Ireland, on 3 June. However, also this week, several investors
pulled out, led by Irish Continental Group.

Court dismisses charges in Subic Bay case

A Philippine court has dismissed charges against four Subic Bay Metropolitan
Authority personnel who awarded a contract to develop and operate the Subic
Bay Container Terminal to Hutchison Port Holdings.

France approves English Channel ferry deal

France has approved the merger of the English Channel ferry operations
of P&O Ferries and Stena. The European Commission and the United Kingdom
have not yet ruled.

Hong Kong orders river shipping study

Survey Research Hong Kong Ltd. will conduct a study of river shipping
and trade for the Hong Kong Port Development Board this year. The survey
will focus on cargo moving between Hong Kong and the Pearl River Delta
of China, and will be used to plan new services and facilities. It will
cost more than Hong Kong$2 million/U.S.$256,000 and will be completed in
mid-1998.

Princess Cruises to consolidate operations at new site

Princess Cruises Inc. will open a new customer service center that will
combine all customer service functions at one location. About 600 from
the headquarters office in Century City, Calif., will move to Valencia,
Calif. The relocation will be completed by fall 1998. Construction of the
building on Town Center Drive by Newhall Land and Farming Co. will begin
this fall. It will be six stories with 11,700 square meters/130,000 square
feet.

More on Shipmair

Shipmair, the Dutch vessel operator, filed for bankruptcy in the Netherlands
on 29 May. It was accepted 30 May and a receiver was appointed. Reportedly,
Shipmair failed after a freight derivitives deal collapsed in May 1996
after the liquidation of a counterparty, Hong Kong Maritime and Trading
Asia. The loss was over U.S.$2 million. Shipmair had not traded on the
cash freight derivitives market since then.

Marshall Islands joins INMARSAT

The Marshall Islands has joined INMARSAT and the Trust Company of the
Marshall Islands will serve as its signatory organization. Vessels with
Marshall Islands-registry are already using INMARSAT as part of the Global
Maritime Distress and Safety System (GMDSS). It is the 80th member country.

BIMCO to open Asian office this month

The first overseas office of the Baltic and International Maritime Council
will open this month in Singapore.

British and affiliated registries in 1996

The deadweight tonnage of British owned merchant vessels over 100 gross
tons decreased by 1.2 million deadweight tons in 1996 to 11.6 million.
The number of ships decreased from 675 to 638, according to Merchant Fleet
Statistics 1996. Some 514 were 500 gross tons or over. Tankers accounted
for 48 percent of the total deadweight tons owned and 25 percent of the
ships. Bulk carriers and containerships accounted for 28 percent and 13
percent of tonnage. Other ships composed 11 percent of the tonnage, but
60 percent of the ships owned. Most of the tonnage lost was due to three
very large crude carriers of the Royal Dutch/Shell Group of Cos. that left
the registry. British-registered ships increased 0.6 million deadweight
tons to 7.9 million. Twenty-two percent was registered in the United Kingdom,
20 in dependencies (mostly Isle of Man) and 33 in Overseas Dependent Territories.
At the end of 1996 there were 506 vessels of 100 gross tons or more with
British-registry. The Isle of Man register grew by 24 ships, some 1.3 million
deadweight tons, while the United Kingdom register fell by 19 ships of
0.7 million deadweight tons. Some 377 were of 500 gross tons and above,
with 257 on the U.K. register and 120 on the Isle of Man register. A further
1,190 non-trading vessels are registered as well.

American Hawaii Cruises moving by September

American Hawaii Cruises' previously announced move of its corporate
offices will be accomplished by 26 Sept. The office is moving from Chicago
to New Orleans.

BHP International Marine Transport names Gulf & Atlantic its U.S.
agent

BHP International Marine Transport has selected Gulf & Atlantic
Marine Agencies as its U.S. west coast agent. Gulf & Atlantic Marine
had already served in the capacity on the east and Gulf coasts, making
the firm the line's U.S. agent.

ROUTES AND SERVICES

M.F.E.C. to raise rates, two new members join

The Mediterranean Far East Conference has announced new rates to take
effect 1 July. Rates will be U.S.$150 per TEU and U.S.$300 per FEU westbound
and U.S.$100 per TEU and U.S.$150 per FEU eastbound. In addition, DSR-Senator
Lines and Lloyd Triestino di Navigazione S.p.A. will join the conference.
Lloyd Triestino withdrew in 1994.

T.W.R.A. adjusting rates

Due to lower fuel prices and stronger U.S. dollar, the Transpacific
Westbound Rate Agreement is reducing its fuel and currency surcharges for
the quarter beginning 1 July. The currency adjustment will go from U.S.$42
to U.S.$38 for containers for Japan, from U.S.$10 to U.S.$9 for Taiwan
and from U.S.$17 to U.S.$15 for Singapore. The U.S.$5 surchage for containers
to South Korea will be abolished. The fuel adjustment factor will decrease
from U.S.$110 to U.S.$100 for FEUs and larger containers, U.S.$112 to U.S.$80
for TEUs, U.S.$70 to U.S.$50 for vehicles and U.S.$7 to U.S.$5 per metric
ton.

TACA to adjust currency factor on 1 July

The Trans-Atlantic Conference Agreement will cut its currency adjustment
factor on 1 July. The change will reportedly result in a technical reduction
in rates.

Hyundai Merchant Marine in Far East to North America service with Zim

Hyundai Merchant Marine Co. Ltd. plans to operate a new container service
between the Far East and the eastern coast of North America. Under a space-chartering
agreement with Zim Israel Navigation Co., starting in mid-June, Hyundai
Merchant Marine will call at Hong Kong; Keelung, Taiwan; Pusan, South Korea;
Osaka, Japan; Yokohama, Japan; Long Beach, Calif.; Kingston, Jamaica; Savannah,
Ga.; New York; and Halifax, Nova Scotia, Canada. Hyundai Merchant Marine
will use space on 15 ships operating weekly.

New line sailing between Greece, Turkey and the United States

Turkon Line, a new line formed by the shipping operations of Kasif Kalkavan
ve Ortaklari Kollektif Sirketi and the Yardimci Shipping Group, began a
new route 3 June. Calls will be made twice a month at New York; Norfolk,
Va.; Charleston, S.C.; Ismir, Turkey; Istanbul, Turkey; and Piraeus, Greece.
Norton Lilly International Inc. is the U.S. agent.

NSCSA to call Halifax

The National Shipping Company of Saudi Arabia will call at Halifax,
Nova Scotia, Canada, every 12 days beginning this month. Calls will include
Damietta, Egypt; Yanbu, Jeddah and Damman, Saudi Arabia; Dubai and Khorffakkan,
United Arab Emirates; Kuwait; and Mumbai, India. Transit time from Halifax
to Jeddah is 14 days.

Container service between Chinese ports starts

The Lin Yuan (9,996-dwt containership built in 1996, operated by Guangzhou
Maritime Transport Group) departed Tianjin, China, recently, inaugurating
regular container service between Chinese ports. The service of China Shipping
Corp. has three ships with weekly calls at Qingdao, Shanghai, Shekou, Huangpu,
Tianjin, Xiamen and Yingkou.

Maersk to call Mauritius from South Africa

Maersk Line will begin a fixed-day service from Durban, South Africa,
to Port Louis, Mauritius, on 17 June. Calls will be every two weeks.

SCI to start new India to Sri Lanka service

The Shipping Corporation of India Ltd. will begin a container service
between Calcutta, India, and Colombo, Sri Lanka.

Crescent Shipping sailing from Tampa to Central America

Crescent Shipping Corp. is operating a service every 10 days from Tampa,
Fla., to Guatemala and Honduras, with cargo also accepted for El Salvador
and Nicaragua. Naviera Mundial is the U.S. agent and the multipurpose ship
Orion is being used.

Inchcape opening Algerian agency

Inchcape Shipping Services will open a new agency in Algeria. It will
act as a go-between for shipowners and the state-owned agents.

Newfoundland takes over Labrador ferry services

The government of Newfoundland, Canada, has taken over responsibility
for ferry services to isolated towns in Labrador. The federal government
paid Newfoundland Canadian$340 million/U.S.$248 million, and transferred
two ferries worth C$25 million/U.S.$18 million. Marine Atlantic Inc. provided
services for the federal government, and Newfoundland has contracted with
Marine Atlantic to continue the services for now.

Bridge opens to Prince Edward Island, ferry service scaled back

At 1200 31 May, the longest bridge over ice-covered waters in the world
opened between New Brunswick and Prince Edward Island, Canada, after 43
months of construction. The last Borden, Prince Edward Island, to Cape
Tormentine, New Brunswick, ferry ran 31 May, with its 680 employees dismissed.
Some took early retirement, about five to 10 percent have found new jobs
and the bridge hired 34. However, two ferries will remain in service from
Caribou, Nova Scotia, to Borden. The Prince Edward (Canadian-registry 610-dwt,
76-meter/250-foot motor ferry built in 1972, operated by Northumberland
Feries Ltd.), with a 60-vehicle capacity, was taken out of service 1 June.
It has been replaced by the Holiday Island (Canadian-registry 1,375-dwt,
98.5-meter/323-foot motor ferry built in 1971, operated by Marine Atlantic
Inc.), a 150-vehicle vessel that had been sailing from Cape Tormentie to
Borden. Also in service from Caribou is the Confederation (Canadian-registry
1,586-dwt ferry built in 1993, operated by Northumberland Ferries), which
can carry 215 vehicles.

British Petroleum to shift oil shipments to Trinidad

British Petroleum has announced it will transship cargoes of crude oil
at Port Fortin, Trinidad. Previously, the oil, from the Pedernales field
of Orinoco Delta project in Venezuela was taken by river barge on the San
Juan River to Caripito, Venezuela, where it was loaded on tankers. Due
to the threat to the environment, 20,000-barrel cargoes will now be taken
by barge from the field to Port Fortin.

Simpson Timber leaving Guatemala

Simpson Timber Ltd. has announced plans to end operations in Guatemala
after the government rejected a request to launch large boats on the Dulce
River. The Guatemalan National Council of Protected Areas ruled that the
operations would harm the ecology of the river. Simpson Timber has owned
a tree harvesting area of 8,000 hectares/20,000 acres in the Izabal area
since 1988. It wanted to use boats to carry timber down the river to Amatique
Bay for loading on ships.

CANALS, PORTS AND STRUCTURES

Libson blockaded by fishing vessels

Portuguese-registry trawlers on 5 June blockaded Lisbon, Portugal, to
protest a partial ban on weekend fishing by the government. About 100 vessels
were reportedly involved. Fishing crews also blocked gates, stopping trucks
from entering the port. Crews called the ban on fishing beyond 19 kilometers/12
miles from the coast for a 24-hour period on weekends a discriminatory
act. The Portuguese government said the measure was necessary to conserve
fish stocks.

Japanese dockworkers may begin working Sundays again

The Japan Harbor Transportation Association and the National Council
of Dockworkers Union of Japan agreed in principle 30 May to resume working
on Sundays at seven major Japanese ports. Dockworkers have refused to work
on Sundays since 11 March, in protest of proposed measures to deregulate
stevedore operations. Affected are the ports of Kawasaki, Kanmon, Kobe,
Nagoya, Osaka, Tokyo and Yokohama. When Sunday work will resume is unclear.

German rivers to close temporarily

The Mosel and Saar rivers in Germany will be closed to shipping 3 June
to 12 June for work on locks.

Taiwan approves port near Keelung

The Taiwan Ministry of Transport has approved a 13-year, New Taiwanese$47.2
billion/U.S.$1.7 project to build a new port adjacent to Keelung. It will
have seven docks and N.T.$21.8 billion/ will come from private investment.

Barcelona to seek private investment

The Port of Barcelona, Spain, is planning a U.S.$70 million expanion
which will double the size of its commercial area by 2012. In order to
encourage private investment of up to 40 percent in the plan, the port
is seeking to have concession times extended from 30 to 60 years.

Investment in Yangpu planned

China International Capital Corp. Ltd. has announced plans to invest
300 million Chinese yuan/U.S.$36 million to expand the Port of Yangpu,
Hainan Province, China. Three new 20,000-ton berths will be built to increase
annual cargo handling to 1.2 million tons.

Mozambique offers facilities to Malawi

Mozambique has offered a 51 percent concession of the Port of Nacala
to the private sector of Malawi and another 16 percent to Malawai Railways.
It will keep 33 percent. If finalized, the port would be landlocked Malawi's
first ocean facilities. Talks will be held in Maputo, Mozambique, in the
middle of the month.

U.S. harbor tax ruled unconstitutional

A U.S. court was decided that the U.S. Harbor Maintenance Tax is a unconstitutional
tax on exports.

Asian Terminals planning Philippines investment

Asian Terminals Inc. will invest five billion Philippine pesos/U.S.$192
million over five years to expand services at several Philippine ports.
Most money will be spent at Batangas, with other ports including Davao,
Cagayan de Oro and General Santos. The inland clearance depot at Calambra
will also be expanded.

Corsican port terminal destroyed by bomb

A bomb destroyed the terminal at the Port of Propriano, Corsica, France,
on 29 May. Several kilograms of diesel fuel and nitrate levelled the structure.
There were no injuries and no one claimed responsibility.

New chemical terminal in China

A joint venture of Mitsubishi Corp. and the Zhangjiagang Port Authority,
Zhangjiagang Xing Ling Terminal Co., has announced plans to open a large
chemical tank terminal at Zhangjiagang, Jiang Province, China. Operations
will begin this month to supply Chinese chemical users with phenol, styrene
monomer and synthetic fiber. An 11 million-liter/2.9 million-gallon facility
built in 1994 will be used now. Fifteen tanks will be built for 36 million
liters/9.4 million gallons of storage, with three 3 million-liter/780,000-gallon,
two two million-liter/520,000-gallon, eight 1.25 million-liter/325,000-gallon
and two one million-liter/260,000-gallon tanks. The facility has a 25,000-dwt
berth.

P&O Australia Ports to develop Indian terminal

The Indian Cabinet Committee on Foreign Investment has selected P&O
Australia Ports to develop a container terminal at Nhava Sheva, India.
Nhava Sheva International Container Terminal Ltd. will be formed, with
South Asia Ports Ltd. taking 95 percent. South Asia Ports is the Mauritian
unit of P&O Australia Ports. India will pay a fixed annual fee of U.S.$300,000
for management of the terminal.

Chiriqui Grande reopens with new facilities

The Port of Chiriqui Grande, Panama, reopened 16 May. A U.S.$12 million
upgrade brought several new facilities, and the port will primarily load
bananas while additional cargoes are sought. A year ago, the port closed
after Petro Terminales de Panama's pipeline slowed, due to a decrease in
surplus North Alaska crude oil. The oil was transshipped via the pipeline
to Chiriqui Grande. The pipeline may reopen if surplus oil is shipped from
Colombia and Venezuela and sent to the U.S. west coast.

Capespan International to consolidate traffic at Bremerhaven

Capespan International, a fruit business, will consolidate northern
and eastern European traffic at Bremerhaven, Germany. A joint venture terminal
and logistics firm, Portco Bremerhaven, has been formed. Capespan International
has 50 percent; BLG, the operator of the Port of Bremerhaven, has 25 percent;
and the rest is held by Fruchtterminal. Some 30 million German marks/U.S.$17.7
million will be spent to build a terminal by January. It will handle 250,000
tons of fruit annually.

Mormugao concession awarded

A.B.G. Industries Ltd. has won a 30-year concession to build and operate
two multipurpose bulk cargo berths at the Port of Mormugao, India. They
will be built on a build/operate/transfer basis.

Landing Sunmar Terminals open at Olympia

The Arkhangelsk (Cypriot-registry 19,942-dwt ro/ro built in 1983, operated
by Murmansk Shipping Co.) was the first ship to leave the new Landing Sunmar
Terminals Inc. at the Port of Olympia, Wash., on 23 May. Sunmar Container
Line operates a two-ship service between Olympia and the Russian ports
of Petropavlovsk-Kamchatskiy, Magadan, Korsakov and Vladivostok. The U.S.$5.3
million facility has a 6,800-square-meter/76,000-square-foot container
freight station and a four-hectare/10-acre yard. While Landing Sunmar Terminals
Inc. has a 10-year lease from the port, it has options for up to 50 years.

Powell Duffryn sells last chemical terminal

Powell Duffryn Terminals Ltd. has sold its last of eight chemical terminals.
It will now concentrate on ports and engineering activities.

Chonglingji opens to foreign ships

The Port of Chenglingji, Hunan Province, China, opened to foreign vessels
on 31 May with the sailing of a Honduran-registry ship for Nagoya, Japan.
The port is located on the Yangtze River and Dongting Lake and has two
5,000-ton berths with customs and inspection facilities.

New freight terminal in New Jersey

U-Freight America has opened a new freight terminal near Elizabeth,
N.J., for U-Ocean. Operations will be transferred from New York. The facility
has storage areas and a bonded warehouse.

Portland, Maine bond issue rejected

The Maine legislature has rejected a plan by Portland, Maine, to issue
U.S.$10 million in bonds. The money generated would have been spent on
a large crane and a 60-meter/200-foot wharf extension at the International
Marine Terminal.

South Korea speeding up work on disputed islands?

South Korea has reportedly instructed local authorities to complete
construction of piers on several disputed islands in the Sea of Japan by
July. The order to speed up work the islands, called Takeshima by Japan
and Tokto by South Korea, was reportedly given by South Korean Minister
of Maritime Affairs and Fisheries Shin Sang Woo to officlas in the Pohang
region. However, neither the ministry nor the local authorities confirm
that that order was made, and a statement on 30 May said the piers would
be completed by November. The piers would accomodate ships up to 500 tons
and are 60 percent completed. Major work left includes an access road.
Along with a lighthouse to be in operation by October, the piers would
serve a marine science facility which will cost 719 million South Korean
won/U.S.$807,000 when completed in 2001. Japan made a formal protest to
South Korea on 7 April to cease construction.

Marine Terminals gets I.S.O. 9002, first on U.S. west coast

Marine Terminals Corp. has become the first U.S. west coast stevedore
to receive I.S.O. 9002. Marine Terminals' operation at Terminal 3 at the
Port of Vancouver, Wash., was certified by the British Standards Institution.

Port of San Diego appoints representatives

The Port of San Diego has named four new representatives: Inversiones
S.A. in Santiago, Chile; Senwa Shipping Agency in Tokyo; Korea Universal
Marine Co. Ltd. in Seoul, South Korea; and Seatrans New Zealand Ltd. in
Auckland, New Zealand. The four will provide marketing research assistance
and market the port to local shipping-related businesses.

M.P.A. to close London office

The Massachusetts Port Authority will close its office in London shortly.
It has cost U.S.$420,000 annually to operate, and will now consist of a
part-time trade representative. Money saved will be used to start an office
in Asia.

SHIPYARDS AND EQUIPMENT SUPPLIERS

Nanjing announces building, repair regulations

Nanjing in Jiangsu Province, China, has announced regulations to standardize
shipbuilding and repair in the city. Businesses that wish to begin building
or repair operations must now seek approval from communications officials,
while design, construction and repair must comply with standards and regulations
of China as well as international agreements. Ships that fail an inspection
will not be able to leave a shipyard in the city. The new regulations take
effect 1 July and are meant to deal with disputes over work and cost that
have arisen.

Office personnel may strike at Halifax Shipyard

Sixty office personnel of Halifax Shipyard Ltd. in Halifax, Nova Scotia,
Canada, voted the night of 28 May to strike on 12 June. The 800 other employees
at the yard will reportedly honor the strike and not cross picket lines.
The shipyard wants to pay office personnel at a straight-time rate and
maintain current wages and benefits for all workers at the yard. In addition,
providing workboots to yard personnel would be ended. Halifax Shipyard
workers say that work has been subcontracted elsewhere at an increasing
rate and the yard wants to weaken contract language that prohibits non-union
employees from doing union work.

Top Glory Shipping orders 10 double-hulled bulk carriers

Top Glory Shipping Co. has ordered 10 double-hulled bulk carriers from
Sumitomo Corp. at a price of 25 billion Japanese yen. The six 30,000-ton
and four 74,000-ton ships will be delivered by the end of 1999. Work has
been subcontracted to Oshima Shipbuilding Co. Ltd.

CMA-CGM to order for new containerships

Compagnie Maritime d'Affretement-Compagnie Generale Maritime will take
advantage of new French tax breaks for shipping to finance four new 2,400-TEU
capacity containerships.

U.S. Military Sealift Command awards ro/ro contract

National Steel and Shipbuilding Co. has received U.S.$227 million from
the U.S. Military Sealift Command for a sixth Watson-class ro/ro.

Myanmar yard to build ships for Jaya Marine Lines International

Myanmar Shipyards will build two ships for Jaya Marine Lines International
at a cost of U.S.$2.6 million. Each will be 52 meters/171 feet long, with
a height of 3.4 meters/11 feet an a draft of 2.2 meters/7.2 feet. Propulsion
will be by two 500-horsepower engines. The deal was signed in Singapore
on 26 May.

Spanish yard to build barque for Hansa Shipmanagement

Astilleros Gondan S.A. has received an order for a passenger barque
from Hansa Shipmanagement. The three-masted sailing vessel, tentatively
named Sea Cloud II, will be delivered by July 1999. It will have a crew
of 62 and be able to carry 100 passengers.

Crowley Maritime tractors to be built at Nichols Bros. Boat Builders

Vessel Management Services Inc., the subsidiary of Crowley Maritime
Corp. through which it acquires new vessels, has announced that Nichols
Bros. Boat Builders will construct its six new tractor tugs at Freeland,
Wash. The 32.0-meter/105-foot cycloidal-drive tugs will have 4,800 horsepower,
likely with Caterpillar 3516B diesel engines and Voith Schneider drives.
They are designed as harbor tugs for docking and tanker escort. The first
tug will be launched in about a year, with the rest every two months thereafter.

Canadian Maritime Command ship launched, another laid down

The Canadian Maritime Command Kingston-class Maritime Coastal Defense
Vessel Yellowknife (MCDV 706) was christened 5 June at Halifax Shipyard
Ltd. in Halifax, Nova Scotia, Canada. The ship will be based at Esquimalt,
British Columbia, Canada. On 31 May, sister vessel Moncton (MCDV 708) was
laid down. It is to be launched in January and will be based at Halifax.

HSS 900 ferry finally delivered to Stena Line

The Stena Carisma, an HSS 900 ferry, has entered service between Fredrikshavn,
Denmark, and Gothenburg, Sweden, with Stena Line. The vessel was delivered
over a year late, following financial problems with its builder, Westamarin
A/S, which later declared bankruptcy. The Stena Carisma is 85 meters/279
feet long, has a 30-meter/98-foot beam and can carry 900 passengers and
210 vehicles.

Astilleros Espanoles delivers FPSO to PETROBRAS

Astilleros Espanoles S.A.'s yard at Cadiz, Spain, has delivered the
P-32 floating production, storage and offloading platform to Petroleos
Brasileiros S.A. The 282,750-dwt vessel was formerly the very large crude
carrier Cairu. The P-32 will be used at the Marlim field off Brazil. During
work that began last year, the vessel received a turret mooring system
for anchoring in water 170 meters/558 feet deep, a crude oil production
plant, a helideck and an offloading system.

New GMDSS unit from Trimble

Trimble introduced the Galaxy Sentinel on 5 June, an integrated communications
system for the Global Maritime Distress and Safety System (GMDSS). The
system has an INMARSAT-C/Global Positioning System transceiver, a computer
and a liquid-crystal display. The computer has Trimble's QuickSend messaging
software. It also filters SafetyNET weather and safety broadcasts, with
only information relevant to a vessel's position normally displayed. The
standard Galaxy Sentinel system also comes with an antenna and a printer,
while a remote alarm panel, remote printer and uninterruptable AC/DC power
supply are also available. The system costs U.S.$9,850. -- Steve Schultz
- Whitefish Bay, Wis., U.S.A. - sschultz@execpc.com

"When beholding the tranquil beauty and brilliancy of the ocean's
skin, one forgets the tiger heart that pants beneath it; and would not
willingly remember, that this velvet paw but conceals a remorseless fang"
- Herman Melville from "Moby-Dick; or, The White Whale," Chapter
114, Paragraph two

EVENTS, INCIDENTS AND OPERATIONS

U.S. Coast Guard searching for crewmember lost overboard

On the morning of 4 June, the Anna Z (Panamanian-registry, 183 meters/600
feet long), sailing off southern Florida en route to New Orleans, contacted
the U.S. Coast Guard after a crewmember did not report as scheduled at
0630. After a search of the ship, the crew assumed that Randy Ejorcadas,
28, fell overboard. He was last seen late 3 June as the ship sailed from
West Palm Beach, Fla., to Key Largo, Fla. Among the Coast Guard aircraft
and vessels searching are four HH-65A Dolphin helicopters, an HH-60J Jayhawk
helicopter operating from the Bahamas, two HC-130H Hercules aircraft, U.S.
Coast Guard Auxiliary aircraft, the "Island"-class Patrol Boat
U.S.C.G.C. Matagorda (WPB 1303), the "Point"-class Patrol Boat
U.S.C.G.C. Point Martin (WPB 82379) and several small boats. At last report,
more than 8,681 square kilometers/3,339 square miles of area had been searched.

U.S. Navy aircraft carrier, helicopter rescue three from Atlantic

The U.S. Navy Nimitz-class Nuclear-Powered Aircraft Carrier U.S.S. John
C. Stennis (CVN 74) rescued three Canadian citizens on 5 June, about 288
kilometers/180 miles southeast of Nantucket Island, Mass. Joe McLaughlin,
his wife Lori Woodroffe-McLaughlin and Gary Hovey, all from Kings Country,
New Brunswick were aboard a 10-meter/33-foot sailboat, the Gull, when its
mast was lost in a storm just after midnight. The three abandoned the vessel
and boarded a liferaft at 0600. The aircraft carrier was about 128 kilometers/80
miles away when the distress call was received by U.S. Naval Air Station
Oceana, Va. The liferaft was located by a U.S. Coast Guard HU-25A Falcon
in 9.1-meter/30-foot seas and 35 knot winds. A Navy helicopter from Helicopter
Antisubmarine Squadron 5 (HS-5) arrived and hoisted the three aboard. They
were taken to the ship and treated for hypothermia and shock.

Nigerian vessels shell Sierra Leone

Vessels of the Federal Nigerian Navy shelled Freetown, Sierra Leone,
on 2 June as part of Nigeria's military attempt to restore the democratically-elected
president, Ahmed Tejan Kabbah. A soldier of the Sierra Leone Defence Force,
Maj. Johnny Paul Koroma, recently seized power in a coup d'etat and asked
other groups that that fought against the government in its civil war to
join him in the capital. While talks to end the fighting and restore order
continue, largely led by Ghana, Nigeria has launched military operations
using forces that had been based in Liberia. Other countries may join,
with at least a few aircraft of the Guinea Air Force observed. Several
countries have told their citizens to leave Sierra Leone. Two French Navy
vessel evacuated several French citizens and other foreigners, while the
U.S. Navy's Wasp-class Helicopter/Dock Landing Ship U.S.S. Kearsarge (LHD
3) and is embarked U.S. Marine Corps Expeditionary Unit has evacuated hundreds
of foreigners.

North and South Korean vessels in confrontation

A vessel each from the Korean People's Navy and the Republic of Korea
Navy exchanged fire 5 June after the North Korean vessel apparently sailed
into South Korean waters by accident. The North Korean vessel, escorting
a group of fishing vessels, sailed three kilometers/two miles into southern
waters. After being challenged by three Republic of Korea vessels, it fired
three rounds. In the ensuing 50 minute standoff about 160 kilometers/100
miles west of Seoul, South Korea, one of the South Korean vessels fired
two shots of its own at a distance of 0.8 kilometers/0.5 miles. All five
shots in the confrontation were fired astern of the others, and the vessels
later withdrew.

British-registry ship brings up artillery shell at Polish port

The Jevington (British-registry 12,330-dwt bulk carrier built in 1977,
operated by Stephenson Clarke Shipping Ltd.) brought up a World War II-era
artillery shell in its anchor chain while preparing to leave Swinoujscie,
Poland, on 1 June. The mud-encased round of about 20 centimeters/eight
inches in diameter was last reported dangling from the chain, as a storm
prevented Polish military personnel from removing it.

Venezuela arrests tanker for oil discharge

Venezuela has arrested the Plate Princess (Maltese-registry 57,372-dwt
tanker) after it discharged 13,000 tons of ballast with 30 barrels of oil
in Lake Maracaibo on 29 May. The ship was waiting to load crude oil at
Puerto Miranda. Venezuela is demanding a U.S.$2 million bond as a result
of the spill, and Fetrapesca, a group of 8,000 fishing employees, is suing
the ship's owner for U.S.$1 million. Fetrapesca wants compensation for
damage caused the spill, which it says will hurt the local fishing industry.
On 3 June, 400 Fetrapesca members in several vessels surrounded the Plate
Princess in protest.

More mobile telephone problems in Norway

More vessel operation problems have been reported in Norway involving
mobile telephones. The ferry Sekkelsfjord almost encountered serious problems
recently approaching a port after the controlable-pitch propellers failed
to respond to bridge commands. A crewmember noticed that four truck drivers
aboard the ferry were using mobile telephones, and after they were asked
to stop using them, the propellers began responding again. Other reported
problems involve the opening of bow visors and false fire alarms.

November 17 letter on Peratikos' death published, U.S. to assist inquiry

In an eight-page letter published by Eleftherotypia on 30 May, November
17 claimed responsibility for killing Constantine Peratikos and said it
had tried to kill him twice before. Peratikos was shot four times by two
men on 28 May as he left his office at Pegasus Maritime Enterprises Inc.,
a family-owned business in Piraeus, Greece. Peratikos, 42, was the elder
of two sons of Mihalis Peratikos, a London-based shipowner. In the letter,
Constantine Peratikos was accused of mismanaging the Elefsina Shipyards,
which his family's business had bought from the Greek government in 1992.
Elefsina was sold in August 1995 after debts of 17 billion Greek drachmas.
November 17 said in the letter that it had planned to assassinate him since
June 1995. Also on 30 May, representatives of the U.S. Federal Bureau of
Investigation discussed the killing with Greek security personnel. Reportedly,
the F.B.I. will make electronic equipment available to Greece to help locate
the three involved in Peratikos' death. In a revised statement, Greece
said Peratikos was killed with .38-caliber and .45-caliber pistols, with
the individual weapons used both being "signature" guns of November
17.

Nordstrom & Thulin ships get Green Award

Two Nordstrom & Thulin A.B. ships, the Nord Ocean (Singaporean-registry
107,800-dwt tanker built in 1986) and the Nord Pacfic, have received the
Green Award from the Port of Rotterdam, the Netherlands. The award encourages
environmentally-safe shipping by giving port discounts to certified vessels.

VESSEL TRANSFERS

Tschudi & Eitzen buys two product tankers

Tschudi & Eitzen has bought two product tankers that it had operated
on charter. The Sitalouise (Danish-registry 83,870-dwt tanker built in
1987, operated by Tschudi & Eitzen International A/S) cost U.S.$28.4
million, while the Sitamarie (59,999-dwt tanker built in 1988, operated
by Tschudi & Eitzen) cost U.S.$31.6 million due to planned upgrades.
Both were built by Burmeister & Wain A/S. Acquisition of the two ships
is through equity financing through security deposits of U.S.$17.6 million.

U.S. Military Sealift Command renews Maersk Constellation charter

The U.S. Military Sealift Command has awarded a U.S.$13,447,542 contract
to Maersk Line for the 17-month charter of the Maersk Constellation (U.S.-registry
20,529-gt, 29,750-dwt, 182.28-meter/598.03-foot combination ship built
in 1980 by Odense Staalskibsvaerft A/S at Lindo, Denmark). The ship has
been chartered since 30 Nov., 1988, carrying U.S. military cargo between
the west coast of the United States and the Far East.

U.S. hospital ship changing ports

The U.S. Military Sealift Command's lead ship of the U.S.N.S. Mercy
(T-AH 19)-class Hospital Ship will leave its homeport at the U.S. Naval
Supply Center in Oakland, Calif., on 23 June. The ship will arrive at its
new homeport in San Diego near the Balboa Naval Medical Center in early
July. Most of the ship's medical personnel work at the center. The U.S.N.S.
Mercy has been based at Oakland since 1987.

CASUALTIES

Fourteen killed, 20 missing in Indonesian sinking

The Yani Express, with 62 aboard, sank 2 June off Pulau Muda, Sumatra,
Indonesia. Fourteen people were kiled and 20 are missing.

Eight missing after Chinese-registry tanker catches fire

The Daqing No. 243 (Chinese-registry tanker owned and operated by Guangzhou
Maritime Transport Group) sank in the Changjiang River in China on 4 June,
following a fire in its No. 3 cargo tank. Some 800 meters/2,600 feet of
containment boom was set-up to contain any spillage from the cargo of 10,000
tons of oil. A static electricity build-up in the tank may have started
the fire, which was contained the afternoon of 5 June. Three lightering
vessels were alongside the tanker. Two suffered fire damage, while eight
crewmembers of the third are missing.

Tanker on fire

The Gole (Turkish-registry 75,366-gt, 155,500-dwt tanker built in 1977,
operated by Ganship International Ltd.) exploded and caught fire at 1500
4 June.

Crew rescued from platform after well blowout

Thirty-nine people abandoned a drilling rig in the Gulf of Mexico late
31 May after a natural gas well blowout. No one was injured in the incident,
about 64 kilometers/40 miles southeast of Cameron, La. The crew of the
platform, operated by Houston Exploration Co., escaped in a rescue capsule
and were rescued by the Seabulk Aransas. There were no fires or spills.
Wild Well Control is working to cap the well.

Explosion at Nigerian port damages tanker

The Al Zainab (St. Vincent and the Grenadines-registry 17,778-gt, 29,800-dwt
chemical tanker built in 1971, operated by Britannic Maritime Ltd.) had
an explosion in its port wing tank 6 June, just after it finishing unloading
naphtha at the Atlas Cove jetty at Apapa/Lagos, Nigeria. The explosion
then started a fire. The ship's deck and side were holed.

Russian Navy submarine sinks off the Kamchatka Peninsula

A Russian Navy nuclear-powered submarine taken out of service in 1993
and stored offshore took on water 29 May and sank in about 20 meters/65
feet of water. The submarine, built in the 1970s, was to be scrapped and
was moored in Avachinskii Bay, Russia, off the Kamchatka Peninsula. Its
nuclear reactor, as well as all fuel, batteries and weapons, had been removed.
Reportedly, one or two compartments were damaged when it was hit by another
submarine. Efforts to salvage the submarine are underway.

Tug holed in grounding in St. Clair River

The Adanac (108-gt, 26-nt, 24-meter/80-foot tug with 765 horsepower
built in 1913, operated by J.W. Purvis Marine Ltd.) , downbound with a
barge in the St. Clair River near Seaway Island between Michigan and the
province of Ontario, Canada, was holed at 1110 1 June. The current pushed
the tug aground and holed the vessel's bow, with the bow compartment taking
on water. The Adanac was run aground in the South Channel on the starboard
side.

U.S. Coast Guard boat crew assists flooding fishing vessel

The crew of a U.S. Coast Guard 12-meter/41-foot utility boat saved a
fishing vessel on 31 May about 0.6 kilometers/one mile east of Gloucester,
Mass. Just before 0900, Ronald Grover, of Rockport, Mass., radioed the
Coast Guard that his 9.8-meter/32-foot lobster boat, the Kimberly Ann,
was taking on water. A boat crew from Coast Guard Station Gloucester responded,
as did a helicopter from Coast Guard Air Station Cape Cod, Mass. Assisting
Grover, the only person aboard, the crew was able to pump out the Kimberly
Ann and towed the vessel to Gloucester, where it was hauled out.

Ro/ro assisted into Spanish port

The Suphan Navee (Thai-registry 13,094-gt, 18,258-dwt ro/ro built in
1977, operated by IMC) anchored west of Tarifa, Spain, on 1 June with engine
problems. The ship was sailing in ballast from Oran, Algeria, to Antwerp,
Belgium. Early 3 June, the ship was towed into Algeciras, Spain, by the
tug Albireo.

OBITUARY

Livanos, head of Ceres Hellenic Shipping, dies at 71

George P. Livanos died 1 June of cancer at the age of 71. Regarded as
the largest Greek shipowener, Livaros controled some three million deadweight
tons of tankers through his Ceres Hellenic Shipping Enterprises. Born in
New Orleans, Livanos studied public administration at Hofstra University
before taking over the family shipping business (his family was from Hios
Island, Greece). Among his accomplishments, Livaros originated the design
and was instrumental in the development of the "mini-bulker"
and in 1982, founded the Greek Society for the Protection of the Marine
Environment (HELMEPA) for maritime personnel. He was elected president
of the Baltic and International Maritime Council in May 1989. Livaros had
two sons, and one, Peter, took over Ceres Hellenic Shipping two years ago.
A funeral was held 2 June.

AT LAST...BUT NOT LEAST...

Viking knarr to recreate Leif Ericsson's voyage

The Snorri, a Viking knarr vessel, was launched 20 May in Bath, Maine.
Named for the first Viking child said to have been born in North America,
the Snorri was built over several months by Robert Stevens in Phippsburg,
Maine. It is 16 meters/54 feet long, has a 4.9-meter/16-foot beam and a
draft of 1.8 meters/six feet. Along with W. Hodding Carter, Stevens found
the plans for the vessel in a Danish museum. The vessel is made from wide
planks of yellow pine, oak framing and thousands of iron rivets hand-forged
by a local blacksmith. The Snorri has 12 tons or rock ballast, hemp rigging
and a spruce mast with a 90-square-meter/1,000-square-foot canvas sail.
Viking legend states that Leif Ericsson sailed from Greenland to discover
North America about 1,000 years ago. Now, Carter, a 34-year-old writer
from West Virginia, and 11 others will recreate the voyage with the Snorri.
It will sail from Greenland to L'Anse aux Meadows, Newfoundland, Canada,
some 3,000 kilometers/1,900 miles. L'Anse aux Meadows is the only confirmed
Norse site found in North America. The voyage has never been attempted
before with a knarr. The six to eight weeks will be chronicled via the
Internet, and Carter will write a book for Ballantine as well as articles
for the catalogues of Lands' End Direct Merchants, which is sponsoring
the voyage. The Snorri will have satellite technology and modern navigational
equipment, but no engine. This week, the Snorri was loaded aboard a ship
to be taken to Greenland. It will sail from Brattahlid on 6 July, a community
where Eric the Red, Ericsson's father, had a farm.