- Transport on Line - hiltunen.htm

BUSINESS

New U.S. work rules to affect dockworkers, ship equipment

U.S. Secretary of Labor Alexis M. Herman and Acting U.S. Assistant Secretary
of Labor for Occupational Safety and Health Gregory R. Watchman announced
new working rules for dockworkers on 18 July. Issued by the U.S. Occupational
Safety and Health Administration (OSHA), the new rules are expected to
save more than 30,000 lost work days annually. In addition to updating
existing regulations, some standards for terminals were amended so that
ship and port rules are the same. As an example of the updates incorporated,
former dockworker rules referred to the International Labor Organization
convention of 1932, while the new rules refer to the most recent convention
of 1979. OSHA estimates that the additional cost of compliance, per year,
will total U.S.$3.1 billion, but savings due to avoided injuries will be
U.S.$7 billion. States with OSHA-approved programs that affect dockworkers
must revise their standards within six months, or show why there is no
need, in the event that the existing state rules are at least as effective
as the new federal ones. Specific changes include mandated locking devices
and above-deck cell guides for containers to reduce the hazard of working
on top of stacked containers, along with the use of gantry cranes. Those
regulations will be phased in over two years. In the meantime, fall protection
systems will be required, a requirement that also extends to working of
containers with non-container gantry cranes. The trigger height for fall
protection equipment will be 2.4 meters/eight feet. In other changes, testing
and inspection rules for lifting equipment were changed, with one-year
phase-in for testing and four years for inspection. Other changes involve
acceptable conditions for non-vertical lifting of containers (non-gantry),
ro/ro ramp traffic patterns and loading logs from water. OSHA updated the
rules in conjunction with the American Association of Port Authorities,
the International Cargo Handling Coordination Association, International
Longshore and Warehouse Union, the International Longshoremen's Association,
the International Maritime Organization, the International Standards Organization,
the National Maritime Safety Association and the Pacific Maritime Association.

Germany announces new shipping plan

Germany late last week outlined a new plan for its shipping industry,
which it hopes will reduce annual costs by 50 million German marks/U.S.$28
million. A new tonnage tax will be introduced at a set level. Shipping
businesses will get a 40 percent reduction in income tax paid by crewmembers
employed in international routes at least 183 days per year. Crews will
be open to foreign citizens, who will be exempt from payments for pensions
and social security. Masters, however, will still need to be German citizens.

Draft Indian shipping plan bars some foreign vessels, importing changed

A draft of India's new shipping policy, approved by a government committee,
will virtually ban foreign-registry ships from carrying liquified natural
gas and liquified petroleum gas to the country. L.N.G. imports will be
restricted to Indian-registry tankers, while L.P.G. cargoes will be limited
on a free-on-board basis, with first right of refusal belonging to Indian-registry
ships. The coastal trade will also be restricted, with an intent of limiting
the involvement of foreign lines through subsidiaries. Coastal trades would
be limited to fully-owned subsidiaries of Indian firms, or Indian subsidiaries
of foreign businesses with at least five vessels. Also, India has symplified
importing. Importers can now file documents for cargo clearance 30 days
before the ship's expected arrival. Is is also now possible to present
documents against cargo arriving via feeder vessels, without specifics
on the feeder ship being known. The changes will allow duties to be paid
on cargoes immediately upon its arrival.

China places G.P.S. system in operation

China placed a global positioning system in service on 21 July, with
a network of 21 satellites. Meant to be used by ocean-going ships, it reaches
the Chinese ports of Dalian, Qingdao, Qinhuangdao, Shanghai and Tianjin.
China will build 20 ground stations by 2000 to cover all coastal waters.
Mean error is estimated at five meters/16 feet.

International Transport Workers' Federation suspends Russian union

The International Transport Workers' Federation suspended the Water
Transport Workers' Union of Russia on 18 July. The federation said the
union had defied its decisions in regards to collective bargaining. Its
rights have been suspended, including federation acceptance of collective
agreements for flag-of-convenience ships.

Maritrans buying assets of Sun Transport

Maritrans Inc. announced 25 July it will buy the maritime assets of
Sun Transport Inc. for about U.S.$30 million. The deal includes Sun Transport's
six remaining vessels, including two tankers and two tug/tank barge units.
Sun Transport crewmembers and some shore staff will be offered employment
at Maritrans.

Touax acquiring Dubbelman Container Transport

Touax is taking over Dubbelman Container Transport through Interfeeder
Rotterdam B.V. The purchase anticipates more traffic between Rotterdam,
the Netherlands, and Antwerp, Belgium. Touax will also begin service on
the Rhine River.

U.S. Army Corps of Engineers settles discrimination case

The U.S. Army Corps of Engineers agreed 24 July to promote several black
employees and give them U.S.$1 million in damages after they were found
to have been discriminated against while working aboard a dredge on the
Mississippi River. They also were subjected to racial slurs. Twelve current
personnel, two retired personnel and the estates of two who have died will
receive U.S.$62,500 each. The 12 current workers will move from seasonal
to full-time employment on the Hurley, based in Memphis, Tenn. Training
will also be provided and two managers will be reassigned. Two white dredge
crewmembers who used slurs will be transferred and the Corps will also
pay U.S.$194,242 in legal fees. Last year, the 16 complained to the U.S.
Department of Defense and a report in April said that the Hurley was "permeated
with malicious and reckless indifference toward African-American employees."

Stakes of Mahart to be sold

The Hungarian government has announced plans to sell stakes in state-owned
shipping business Mahart.

GARD changes overspill claims limit

GARD U.K. Ltd., following three other protecion and indemnity clubs,
has reduced the limit on overspill claims to 2.5 percent of the property
damage limitation fund for each ship under the 1976 Limitation Convention.

New school for cruise ship personnel formed

C.F. Sharp and Karilagan Travel have formed a school for cruise ship
personnel working in the hotel department. The Sharp-Karilagan Training
Academy will start operations shortly.

Nissos Amorgos released

The Nissos Amorgos (Greek-registry 50,563-gt, 89,427-dwt tanker built
in 1988, owned by Glafki-Atenas and operated by Teekay Shipping Ltd.) was
released by Venezuela on 21 July. The ship ran aground late 28 Feb. between
buoys 20 and 22 in the channel of Lake Maracaibo, Venezuela, and spilled
at least 20,000 barrels of crude oil. The ship, carrying 474,000 barrels
or 64,573 tons from Puerto Miranda, Venezuela, to Port de Gella, Italy,
was chartered by Maraven S.A. and was carrying the oil for Agip Petroil
SpA. Seventeen kilometers/11 miles of land was affected. Since the spill,
the ship has been held by Venezuela, along with its master, Konstantinos
Spiropulos, who remains in custody. Officially, the ship was released 18
July but objections by the Venezuelan Navy and Fetrapesca, a fisherman's
union seeking to recoup damages from the spill, objected. Fetrapesca had
sought to hold the ship longer through a court in Caracas, Venezuela. The
Nissos Amorgos is now in Aruba for cleaning and inspection.

Russian submarine training center closed

The Russian Ministry of Defense has closed a training center for Russian
Navy submarine crewmembers, established 17 years ago in Komsomolsk-on-Amur,
Russia. The center trained Pacific Fleet personnel and with the closing,
it has laid-off 200 employees.

I.P.O. for Seascope Shipping Holdings

Seascope Shipping Holdings P.L.C. has issed 4 million British pounds/U.S.$7
million in shares. The money will be used to repay debt and preferred capital
of 2.25 million pounds/U.S.$3.77 million. Guinness Mahon & Co. was
the sponsor.

ROUTES AND SERVICES

Hyundai Merchant Marine closer to Grand Alliance

Hyundai Merchant Marine has signed an agreement with the Grand Alliance
to share container space and coordinate vessel sailings on the trans-Pacific
and Asia-Europe routes. The five-year agreement includes other details
to be worked out. Sailings on certain routes begin next month.

Taiwan approves joint services with Chinese lines

The Taiwanese government has approved slot-chartering and joint services
between Chinese and Taiwanese lines through joint third country subsidiaries.

T.W.R.A. cancels exporter billing formula

The Transpacific Westbound Rate Agreement has canceled plans to implement
a new exporter payment system on 1 Aug. Exporters would have had to pay
destination handling fees prior to the cargo being moved for containers
to Indonesia and Malaysia. The system will instead revert to payment either
before shipment by the exporter or at the destination.

Three lines beginning northern Europe to Canada route

Maersk Line, P&O Nedlloyd Container Line Ltd. and Sea-Land Service
Inc. will begin a direct route between northern Europe and Canada in September.
The weekly container service will use three ice-class containerships with
1,000-TEU capacity. Calls will be made at Rotterdam, the Netherlands; Bremerhaven,
Germany; Felixstowe, England; and Montreal.

Mediterranean Shipping to start Mediterranean to Argentina, Brazil route

Mediterranean Shipping Co. will begin a four-ship service between the
Mediterranean, Argentina and Brazil this month. The first sailing will
be from Genoa, Italy, on 30 July. Containerships of 1,000-TEU to 1,200-TEU
capacity will be used. In September, the line will begin a route between
Brazil and the United States.

O.O.C.L. starting new Asian container service

Orient Overseas Container Line is beginning a new Asian container service.
The fixed-day weekly route will use four 1,400-TEU capacity containerships,
starting 1 Aug. with the departure of the OOCL Ability from Kawasaki, Japan.
Calls will be at Kawasaki; Chiba, Japan; Osaka, Japan; Kaohsiung, Taiwan;
Hong Kong; Manila, the Philippines; Singapore; and Jakarta, Indonesia.
Northbound, the calls are Jakarta, Singapore, Hong Kong, Kaohsiung and
Kawasaki.

Three Japanese firms starting Vietnamese coastal route

Itochu Express, Japan Logistic Systems Corp. and Nippon Yusen Kaisha
Ltd. have formed a joint venture in Vietnam with Vietnam National Shipping
Lines called Vietnam High-Tech Transportation Co. Starting in January,
the venture will operate a coastal service between the ports of Haiphong
and Ho Chi Minh City. Trailers will be used to link inland destinations.
This is believed to be the first time a Japanese group has set-up a foreign
coastal trade. Capitalized at U.S.$3 million, the Japanese group will own
40 percent and Vietnam National Shipping Lines the rest. Some 1 billion
Japanese yen/U.S.$9 million will be spent to build breakwaters at the two
ports and buy 30 trailers and containers.

Bischoff Levant Line leaving joint service with BOLT

Bischoff Levant Line will end its joint service with BOLT in the Mediterranean
Sea in mid-August. Bischoff Levant Line will continue to offer services
to the region, but without its own vessels. Instead, slot-chartered space
will be sold through Nicolaus Haye & Co.

Mediterranean Shipping planning U.S. east coast to South America route

Mediterranean Shipping Co. has announced its intent to begin a service
between the U.S. east coast and South America, possibly in September. Three
containerships would be used.

P&O Scottish Ferries receives government contract

P&O Scottish Ferries Ltd. has won a British government contract
to offer ferry service between the Scottish mainland and the Orkney and
Shetland Islands. The firm will get 11 million British pounds/U.S.$19 million
to operate the passenger service with three vessels, retroactive to 1 April
and continuing until 31 March, 2002. The government will pay for any required
safety upgrades.

Transshipment no longer required for Taiwanese line across the strait

Kien Hung Shipping has become the first Taiwanese vessel operator to
receive approval from China to sail between China and Taiwan via a third
port without having to transship cargo to another vessel.

Dongshan to Hong Kong container route begins

The first container service from the Port of Dongshan, Fujian Province,
China, to Hong Kong began 19 July. A vessel with 16 containers left for
the 203-kilometer/127-mile voyage. The service is being operated by three
freight transport companies in Dongshan and a Hong Kong firm. It will leave
Dongshan every Friday.

Turkon Line to call Howland Hook

Turkon Line has started to call Howland Hook Container Terminal in New
York. Three 1,000-TEU capacity containerships sail from the eastern Mediterranean
to the eastern United States, with calls at the Turkish ports of Istanbul
and Izmir and Piraeus, Greece.

P&O Nedlloyd expanding capacity on route from Carribean to Europe

P&O Nedlloyd Container Line Ltd. is increasing the capacity of its
Carol/NCS service between northern Europe and the Carribean. The P&O
Nedlloyd Kingston (2,052-TEU capacity containership owned by Reederei Claus-Peter
Offen), recently completed by Flender Werft AG at Lubeck, Germany, entered
service on the route 23 July. The ship is chartered for 34 months and replaces
the Nedlloyd Neerlandia (28,047-dwt, 1,416-TEU capacity containership built
in 1977, owned by Tsakos Shipping & Trading S.A.) which has been returned.

Columbus Line replaces containership on service to South America

Columbus Line has added the Columbus Florida (1,136-TEU capacity containership)
to its service from the U.S. east coast to Argentina, Brazil, Paraguay
and Uruguay. The ship replaces the Heicon (22,350-dwt, 1,020-TEU capacity
dry cargo ship built in 1984), and can carry refrigerated containers.

Evergreen Marine, Lykes Bros. Steamship reduce lumber rates

Evergreen Marine Corp. and Lykes Bros. Steamship Co. have cut their
rates for containers of lumber being exported across the Atlantic from
the United States. Evergreen Marine has cut its rate for an FEU from U.S.$300
to U.S.$1,150. Lykes Bros. Steamship has reportedly decreased its rates
to the same level.

Northumberland Ferries changes rates

Northumberland Ferries has announced a new flat-rate for vehicles being
carried between Caribou, Nova Scotia, Canada, and Wood Islands, Prince
Edward Island. As of 23 July, vehicles will pay Canadian$45/U.S.$33.

U.S. oil firm signs deal for barging in Gabon

Shauvco recently signed a contract with Transport & Offshore for
barging of oil in Gabon. The firm has found oil on the Rembuoe River and
two tank barges will bring the oil to tankers offshore.

CANALS, PORTS AND STRUCTURES

P.S.A. to aid in development of Philippine ports

The Philippine Port Authority and the Port of Singapore Authority have
signed an agreement to develop Philippine government facilities on islands
in the Visayan Sea. These include ports at Catiklan, Cebu, Iloilo and Pulupandan.

Thailand planning new port at Phuket Island

Thailand is planning to build a new port at Phuket Island, Thailand,
at a cost of 15 billion Thai baht/U.S.$500 million. The Thai National Economic
and Social Development Board has been asked to complete a plan to develop
the island. Facilities will also include a convention center and three
piers for passenger ships.

Terminal at Valencia sold

Pragados y Construcciones has taken over operation of the Temarsa Terminal
at the Port of Valencia, Spain, through its subsidiary Urbaser. The deal
was approved by shareholders 17 July.

Rostock port operator sale approved by city council

The Rostock city council has approved the sale of the Rostock port operating
company to Kent Investment Holding Ltd. for 19 million German marks/U.S.$12
million. Kent will retain 660 employees at Seehafen Rostock Umschlag GmbH
for at least three years. The Green Party had tried three times to block
the sale in court, contending that the sale price is too low for a business
capitalized at 77 million marks/U.S.$42 million. The deal still needs approval
from the state of Mecklenburg-Vorpommern. Some 312 million marks/U.S.$170
million in improvements will be made over four years, including deepening
the channel and widening the entrance.

Houston to operate Galveston terminal

The Port of Houston has received a 20-year lease, with four five-year
options, for the operation of the East End Container Terminal at the Port
of Galveston, Texas. The 14-hectare/36-acre facility has two berths and
four cranes, and the lease is U.S.$500,000 for the first year, U.S.$1 million
thereafter. Some U.S.$500,000 to U.S.$750,000 will be spent on upgrading
the cranes. It will handle 60,000 TEUs annually.

Long Beach, U.S. Navy agree on land sale

The Port of Long Beach, Calif., and the U.S. Navy have agreed on a deal
that is expected to speed the transfer of the former naval station and
naval shipyard at the port. It will now be sold as one 154-hectare/385-acre
site in about ten months. The facility will close in two months. The agreement
will transfer more land at once, giving the port more options in regards
to development of a controversial container terminal for China Ocean Shipping
(Group) Co. With more land available now, the terminal may be able to be
constructed without interfering with historical buildings.

Barcelona changes terminal operator

The Port of Barcelona, Spain, has terminated the 20-year contract of
Contenedores de Barcelona to operate the Principe de Espana wharf. The
firm will be compensated for the time left on the contract. The wharf will
now be operated by Terminal Catalunya.

Bristol Port takes over Bell Lines terminal

With the collapse of Bell Lines Ltd., Bristol Port Co. has taken over
its terminal at Bristol, England. It includes a gantry crane and 305-meter/1,000-foot
quay.

Passenger terminal to be redeveloped in Auckland

The Port of Auckland, New Zealand, has awarded Kitchener Group the concession
to redevelop its Princes Wharf, site of the Auckland International Cruises
Terminal. Over the next two years, the passenger facility will be upgraded
in a New Zealand$100 million/U.S.$68 million deal. Kitchener Group has
a 98-year lease.

Tuntex to build L.N.G. terminal in Taiwan

Tuntex is planning to build a New Taiwanese$90 billion/U.S.$3.2 billion
liquified natural gas terminal and storage facility at Taoyuan, Taiwan.
The L.N.G. would be used to generate electricity. The terminal would handle
six million tons of L.N.G. annually. It will be the first private L.N.G.
terminal in Taiwan.

Far Eastern Silo plans

Far Eastern Silo Corp. is planning to build a grain terminal at Taichung,
Taiwan. The largest agricultural transshipment terminal in the Asia-Pacific
area, it would be built in cooperation with Japanese and South Korean firms
for U.S.$100 million.

Stevedoring Services of America buying Harborside Refrigerator Services

Stevedoring Services of America has announced it will buy Harborside
Refrigerator Services, which operates the Tampa Port Authority's 90,000-cubic-meter/three
million-cubic-foot refrigerated storage facility at the Florida port. The
port authority must approve the deal.

Singapore, Asia Pulp and Paper to operate distributor

The Port of Singapore Authority and Asia Pulp and Paper Co. Ltd. on
17 July established a joint venture for a central distribution center at
the Pasir Panjang Terminal. It is named PSA-APP Distribution Pte. Ltd.

Raytheon joins Kulpi port project

The Shah family of Mukand Iron and Steel Co. has enlisted Raytheon Inc.
in its effort to develop a port at Kulpi, West Bengal, India.

Thamesport adding cranes

The Port of Thamesport, England, is adding five rail-mounted gantry
cranes. They will increase the port's handling capability from 450,000
TEUs annually to 600,000 TEUs annually.

Boston port dredging approved

The U.S. Senate Appropriations Committee has marked U.S.$22.4 million
for the Massachusetts Port Authority for harbor dredging. The Port of Boston
will be deepened to 12 meters/40 feet. The first phase of the U.S.$75 million
project will be completed shortly at Conley Terminal.

Mersey Docks and Harbour fined

Mersey Docks and Harbor Co. has been fined 12,000 British pounds/U.S.$20,000
for violating Section 3(1) of the British Health and Safety at Work Act.
On 20 Aug., Perry Birch, an employee of PNT, was working at the forest
products terminal at the Port of Liverpool, England. Birch was directing
a fork-lift moving copper that had been unloaded from the Laser Atlantic
(17,500-dwt dry cargo ship built in 1979, operated by Dioryx Maritime Corp.).
As he was doing so, another fork-lift knocked a 3.8-ton bundle of copper
off a pile on the dock, pinning Birch to the fork-lift. He was trapped
25 minutes and suffered broken legs and a broken ankle.

SHIPYARDS AND EQUIPMENT SUPPLIERS

Zvezda Shipyard workers strike, receive 10 billion rubles

Zvezda Shipyard in Bolshoi Kamen, Primorye Territory, Russia, has received
10 billion Russian rubles from the central government to pay wages owed
since December. On 1 July, employees blocked the Trans-Siberian Railway
to demand their wages and were promised 20 billion rubles. The latest payment
is the second half of that promise, and was secured after a 20-day strike
that ended 21 July. Even after the latest payment, the central government
still owes at least 60 bilion rubles in salaries to the yard. The money
is expected to be paid in August. The Zvezda Shipyard repairs Russian Navy
nuclear-powered submarines, but the government has said that it will also
repair conventional attack submarines sold to foreign navies, as well as
build and repair merchant vessels.

Factorias Vulcano takes over C.N.S.

Factorias Vulcano S.A. has taken over the management of another Spanish
shipbuilder, Construcciones Navales Santodomingo S.A. at Vigo, Spain.

NKK shipyard may be automated further

NKK Corp. continues to automate its Tsu Works in Japan. Several robots
were introduced in January, and a trial underway involves robots working
on external, curved areas of ship's hulls. If the test is successful, NKK
reportedly will automate several shipbuilding areas early next year.

Friede Goldman International issues shares

Friede Goldman International Inc. has begun an initial public offering
of 3.8 million shares at U.S.$17 per share. Some 2.3 million shares are
being offered by the company and 1.3 million by certain stockholders. About
11,850,000 shares will then be outstanding, listed as FGII on NASDAQ. Friede
Goldman International is the parent company of HAM Marine Inc., which converts
and repairs drilling rigs. The parent firm also designs offshore drilling
rigs. The shares sold will help finance a new 34-hectare/85-acre shipyard,
10 kilometers/six miles from the current yard in Pascagoula, Miss. Bear
Stearns & Co. Inc., Jefferies & Co. Inc. and Johnson Rice &
Co. L.L.C. are the underwriters for the offering.

Wartsila NSD stops production of three Sulzer engines

Wartsila NSD has ceased production of three low-speed marine engines
previously manufactured by Sulzer. They are the A20, the S20 and the AT25.

Ishikawajima-Harima Heavy Industries will build 300,000-dwt tanker

Ishikawajima-Harima Heavy Industries Co. Ltd. will build a 300,000-dwt
double-hull tanker for World Wide Shipping, it was announced recently.
The tanker will be built at the No. 1 Kure Shipyard in Kure, Japan, with
construction beginning in the No. 3 dock in spring 1998. As a result of
the order, several robots will be installed in the dock.

Neptune Orient Lines planning five new tankers

Neptune Orient Lines Ltd. will order five Aframax tankers to carry crude
oil for more than U.S.$200 million. Two tankers have been ordered from
Samsung Heavy Industries Co. Ltd. Three more will be ordered later this
month from Imabari Zosen K.K. Each double-hulled tanker will be 105,000-dwt
to 107,000-dwt.

Sincere Navigation in four ship order

Sincere Navigation Corp. has ordered four 170,000-dwt bulk carriers
from Halla Engineering & Heavy Industries Ltd. The cost is U.S.$172
million.

Royal Olympic Cruise to order three new ships

Royal Olympic Cruise/Epirotiki-Sunline has disclosed it will order three
new passenger ships for use in the Mediterranean Sea. Each will carry 600
to 1,000 passengers, and will be delivered in 1999, 2000 and 2001.

Astilleros Espanoles to convert tanker

Astilleros Espanoles S.A.'s yard at Cadiz, Spain, will convert a 300,000-dwt
tanker to an offshore floating, storage and offloading platform. It will
be operated by Esmeril for Petroleos Brasilieros S.A. and will be completed
in November 1998.

Greenshields orders bulk carrier

Greenshields, a new shipping line formed by Bill Boase, has ordered
its first ship, a Panamax bulk carrier.

Compagnie Chambon orders from Austal Ships

Compagnie Chambon has ordered an Auto Express 48 catamaran ferry from
Austal Ships Pty. Ltd. It will be operated by subsidiary L'Express de Iles.

Hvide Marine gets patent for S.D.M.

Hvide Marine Inc. has received a patent from the U.S. Patent and Trademark
Office for its Ship Docking Module. The first of the Z-drive, double-ended
harbor tug design will be delivered later this year.

TDI-Halter to build platform

TDI-Halter Inc. has received a 625 million Mexican peso/U.S.$80 million
order from Perforadoa Central S.A. de C.V. to build an offshore drilling
platform.

Seabulk New Jersey completed

Atlantic Dry Dock Corp. has completed work on the Seabulk New Jersey
of Seabulk Offshore Ltd. A 12-meter/40-foot section was added amidships.
It was the first vessel to use the shipyard's new 2700T side transfer system.

Glomar Explorer leaves Oregon for Alabama

The Glomar Explorer left Cascade General Inc. in Portland, Ore., on
1 July for Atlantic Marine Inc. in Mobile, Ala., where its U.S.$180 million
conversion to a deep-water drillship will be completed. It will arrive
in September. The ship will be able to drill to 10,000 feet and Atlantic
Marine will install a the rig floor substructure, derrick, riser tensioning/handling
system, motion compensator, drillpipe racker, two pedestal cranes, four
thrusters, an additional blowout prevention system, drilling mud system
and a dynamic positioning system. The work will take 200,000 worker hours.
The Glomar Explorer, which has a colorful past, is on a 30-year charter
from the U.S. Navy. Its first use will be on a five-year, U.S.$260 million
project for Chevron Corp. and Texaco Inc. The conversion will be done by
the first quarter of 1998.

Hyundai Precision & Industries to build U.S.$115 million in containers

Hyundai Precision & Industries has received U.S.$115 million in
orders for containers. Five European shipping lines, including P&O
Nedlloyd Container Line Ltd., ordered 3,730 stainless-steel containers.
Four leasing firms, including Florence, have ordered 5,730 stainless-steel
refrigerated containers and aluminum containers.

Shanghai shipyard launches bulk carrier for Mitsubishi

A 73,000-dwt bulk carrier was christened 23 July at Jiangnan Shipbuilding
Corp. Ltd. in Shanghai, China. The Yuanhan is 225 meters/738 feet long,
has a beam of 32.3 meters/106 feet and a height of 19.2 meters/63.0 feet.
The ship can sail at 18 knots and was ordered by Mitsubishi Corp.

Gdansk completes ship

Stocznia Gdansk S.A. delivered a B683 design bulk carrier to Seven Seas
Carriers A/S on 25 July. Through built-in conversion possibilities, it
could carry 2,000 TEUs. The ship was ordered by East Asiatic Co.

Two patrol boats launched for Singapore

On 19 July, Singapore Shipbuilding & Engineering Pte. Ltd. launched
two Fearless-class guided-missile patrol boats for the Republic of Singapore
Navy. The Unity and the Sovereignty are the eighth and ninth of 12 vessels.

EVENTS, INCIDENTS AND OPERATIONS

U.S. vessels resume fishing, Canadian boats blockade ferry...

Fishing vessels from Washington state resumed fishing an early Stuart
sockeye run for six hours the morning of 19 July. The decision came two
weeks after the United States barred U.S.-registry vessels from fishing
the run after it was discovered the boats had caught more than their alotted
quota. The boats, however, have now returned to the mouth of the Fraser
River near Vancouver, British Columbia, Canada. Canada has decided not
to fish the run, because of high water levels that could kill at least
10 percent of the fish. However, the United States decided to allow its
boats to return after a preliminary count said there would be 1.4 million
fish, up from one million. As a result, late 18 July, several Canadian-registry
fishing vessels protested by preventing a U.S.-registry vessel from Alaska
from docking in Prince Rupert, British Columbia. The Polar Lady was carrying
several tons of salmon to a local fish processing plant. The Polar Lady
vessel collided with one of the fishing boats, causing about Canadian$3,000/U.S.$2,100
in damage. It then sailed for U.S. territorial waters. The same day, Canadian
Foreign Minister Lloyd Axworthy sent a diplomatic note of protest to the
United States, accusing U.S. fishing vessels of violating international
laws on fishing. He called for the boats to stop catching sockeye, but
Alaskan-homeported vessels said they are fishing for pink salmon but catching
sockeye instead due to an unusally high population. Sockeye are worth six
times pink salmon at current rates. U.S.-registry boats have caught 350,000
sockeye, 160,000 more than allowed by the Pacific Salmon Treaty of 1985.
Tensions escalated and on 19 July, about 250 Canadian-registry fishing
vessels surrounded the Malaspina (U.S.-registry ferry built in 1963, operated
by the State of Alaska, homeported at Juneau, Alaska) as it arrived at
Prince Rupert and burned U.S. flags. The crews also called for fees on
all U.S.-registry vessels along the coast. Passengers and vehicles disembarked,
but just before 328 passengers boarded, the fishing vessels refused to
move. Some 90 passengers remained aboard with the rest going to hotels
and some deciding not to make the voyage. They will be reimbursed. Two
trucks carrying fish from Alaska to the continental United States were
also blocked, but released 20 July after a court injunction was issued.
On 20 July, a judge in Montreal ordered the fishing vessels to end the
blockade. Another ferry sailing from Alaska to Prince Rupert was diverted
to Bellingham, Wash., and further calls at Prince Rupert were indefinitely
canceled. On 21 July, a local sheriff, with Royal Canadian Mounted Police
escorts, served every vessel in the blockade with the judges order. Those
that did not leave right away later did so after several crews met with
Canadian Fisheries Minister David Anderson. The Malaspina was then able
to proceed to Ketchikan, Alaska, though reportedly with only 142 passengers
and 88 vehicles. The ferry's delay reportedly cost C$1,700/U.S.$1,200 per
hour. The U.S. Senate passed a "sense of the Senate" resolution
23 July condemning Canada for not acting to free the ferry sooner. It said
Canada failed to accept responsibility and urged "appropriate action"
by President Clinton. The resolution was sponsored by several people, including
Sen. Frank H. Murkowski, R-Alaska, and passed 81 to 19.

..Four U.S. fishermen arrested, vessels seized

Four U.S. citizens were arrested and their vessels and catches were
seized the morning of 20 July. Canadian Department of Fisheries and Oceans
personnel patrolling Juan de Fuca Strait found two commercial gillnet vessels
near Victoria, British Columbia. The four were taken into custody by the
Royal Canadian Mounted Police at 0100 and were held pending an appearance
in court. The Lynde-E and the Wanda-Mae each had translucent nets, which
are illegal in Canadian waters. The two vessels are homeported at Neah
Bay, Wash. One had 50 sockeye and the other 100. On 21 July, the two masters
were fined Canadian$4,000/U.S.$2,900 each.

Passenger killed aboard ferry crossing Lake Michigan

Edith Lambert, 84, died in an accident aboard the Badger (U.S.-registry
4,244-gt, 2,033-nt, 125-meter/410-foot ferry built in 1953 by Christy Corp.
at Sturgeon Bay, Wis., operated by Lake Michigan Carferry Service Inc.)
when the Pullman-style bed she was sleeping in flipped up and trapped her
against the wall of her cabin. Lambert, from Mount Vernon, Wash., was found
about 0130 22 July, an hour after the ferry left Manitowoc, Wis., for Ludington,
Mich. The Badger sailed back to Manitowoc where Lambert was pronounced
dead at 0213. She had boarded with two daughters and three grandchildren,
and were on their way to eastern Michigan where she had lived in the 1950s
. A daughter, aided by a member of the housekeeping staff, found Lambert
trapped in the bed and administered CPR. The Badger later sailed for Ludington,
two hours late, with the remaining 69 passengers and 27 vehicles.

U.S. Coast Guard searches for missing fisherman, evacuates another

The My Destiny (22/-meter/72-foot clam dredge homeported at Portsmouth,
R.I.) reported at 0748 22 July that a crewmember was missing overboard,
about 13 kilometers/8 miles west of Nantucket, Mass. John Ballanger, 47,
of Bristol, R.I., was struck by a line. Four U.S. Coast Guard boats from
Coast Guard Station Woods Hole, Mass., and Coast Guard Station Brant Point,
Mass., and a helicopter from Coast Guard Station Cape Cod, Mass., searched
until 2230 22 July, after covering 195 square kilometers/75 square miles.
Ballanger was wearing a hat, orange rain gear and white boats; a lifering
and his hat were recovered. A Coast Guard HH-60J Jayhawk from Air Station
Cape Cod evacuated a crewmember from the Mayflower (U.S.-registry 24-meter/79-foot
fishing vessel homeported at New Bedford, Mass.) on 21 July, 59 kilometers/37
miles south of Nantucket. The master, Manual Vusa, 49, of New Bedford,
was flown to Massachusetts General Hospital in Boston for treatment of
two severed fingers.

Injured fisherman evacuated after three parachute to vessel

On 19 July, three personnel of the California Air National Guard's 129th
Rescue Wing parachuted to the Lady Rene (U.S.-registry 18-meter/58-foot
fishing vessel) from an HC-130P Hercules, 960 kilometers/600 miles west
of San Francisco. The master had sent out a call that a 41-year-old crewmember
had symptoms of a heart attack. Contact was made with a U.S. Coast Guard
vessel, but the distance offshore necessitated the pararescue. On the morning
of 20 July, an Air Force H-60 series helicopter, escorted by two Hercules
aircraft, took the four to U.S. Naval Air Station Moffett Field, Calif.,
where an ambulance took them to Stanford Medical Center.

Canadian helicopter evacuates crewmember in the Atlantic

A helicopter from Labrador, Newfoundland, Canada, evacuated a crewmember
from the Dzons Rids (Latvian-registry 39,870-dwt tanker built in 1978,
operated by Trader Navigation) on 23 July, 100 kilometers/62 miles southeast
of St. John's, Newfoundland. The crewmember was suffering from appendicitis
and was taken to St. John's. The helicopter landed on the Hibernia offshore
platform, 315 kilometers/195 miles southeast of St. John's, to refuel during
an attempt the previous day.

Brazilian police link pirate attacks to drug trafficking

Police in Brazil have tied pirate attacks on seven ships in Guanabara
Bay to drug trafficking. In all the attacks, men boarded the ships from
two small boats at night. Six were foreign-registry and all from Central
America.

Venezuelan police locate five tons of cocaine

Police at Puerto Cabello, Venezuela, have found five tons of pure Colombian
cocaine hidden inside rolls of newsprint. The newsprint was unloaded from
the Ricky II (Panamanian-registry 1,050-dwt dry cargo ship built in 1965,
operated by Intercarribean Marine Ltd.), which arrived at Puerto Cabello
on 18 July from Baranquilla, Colombia, and was to sail for Trinidad and
the United States.

Danube River section closed

The Danube River was closed to navigation on 20 July between Linz, Austria,
and Krems, Austria, due to high water levels.

Russian Navy submarine fires missile

A Russian Navy nuclear-powered ballistic missile submarine of the Pacific
Fleet successfully fired a test missile on 23 July.

VESSEL TRANSFERS

Lloyd Brasiliero fleet being auctioned

The remaining vessels of Brazilian-state line Lloyd Brasileiro will
be auctioned in August in Rio de Janeiro, Brazil, two years after the line
ceased operations. On 1 Aug., the Lloyd Bage (Brazilian-registry 7,674-dwt,
5,520-cubic-meter/184,000-cubic-foot refrigerated ship built in 1974) and
the Itapuatia (Brazilian-registry 14,413-dwt, 549-TEU capacity dry cargo
ship built in 1972) will be sold. A week later, two sisters of the Itapuatia,
the Itanage (built in 1970) and the Itape (built in 1972) will be sold.
Finally, on 15 Aug., two other sisters will be sold: the Itapage (built
in 1972) and the Itaite (built in 1971).

Last of DSR's East German ships sold

The last two ships owned by DSR that were registered in what was East
Germany have been sold. The Maxhutte and the Stassfurt are 36,626-dwt bulk
carriers built in 1985 and 1986, respectively, and are now owned by Turkish
interests. They had been registered in Liberia and operated by F. Reederei
Laeisz GmbH.

Oil rig sold

Wexford Management L.L.C. has bought a drilling rig for U.S.$110 million
from Smedvig A.S.A.

Denholm to operate the H.M.P. Weare

Denholm Ship Management Ltd. has received the contract to operate Her
Majesty's Prison Weare, the United Kingdom's only prison ship.

VESSEL CASUALTIES

Two dead, one missing after explosion aboard tanker

Two crewmembers were killed, one is missing and another was injured
following an explosion in an empty cargo tank aboard the Crane North (Philippine-registry
1,957-gt, 3,046-dwt motor tanker built in 1979, operated by VLK Traders
Ltd.) on 19 July. The ship was anchored in an anchorage off Batangas, the
Philippines.

Fire aboard tanker off Newfoundland kills one, two injured

The PetroLab (Canadian-registry 472-gt, 45-meter/148-foot motor tanker
built in 1962) had an explosion and fire aboard on 19 July while preparing
to load petroleum products at St. Barbe, Newfoundland, Canada. The fire
aboard the ship was extinguished but the wharf continued to burn. The owner
was killed and three injured. About 1,000 local residents were evacuated.
The ship carries petroleum along the Labrador coast.

Ibis sinks in the Mediterranean

The Ibis (Antigua and Barbuda-registry 905-gt, 1,599-dwt general cargo
ship built in 1965, operated by Gallega Maritima) sank 23 July after taking
on water in a cargo hold. The ship was sailing from Casablanca, Morocco,
to Algeciras, Spain, with 1,300 tons of barite. The seven crew was rescued.

U.A.E. water fouled by diesel spill

A tank barge grounded off Sharjah, United Arab Emirates, on 11 July,
spilling 2,500 metric tons of diesel fuel. The fuel contaminated the water
supply for the city for two hours before the intakes were closed at a desalinization
plant. The barge grounded in high winds and was refloated 13 July.

Three fishermen rescued by Dutch-registry ship

Three Mexican fishermen were rescued recently after more than two days
adrift, with only abrasions and burns. On 13 July, the three were aboard
a 7.6-meter/25-foot wooden fishing vessel when it sank 64 kilometers/40
miles west of Acapulco, Mexico, in a storm. After 55 hours adrift on debris,
the three were rescued by the Magic (Dutch-registry 6,100-dwt refrigerated
ship built in 1989, operated by Seatrade Groningen B.V.), which was carrying
bananas from Panama to Long Beach, Calif. The three clung to a gasoline
tank and later a filled plastic garbage bag in 3.7-meter/12-foot seas,
with sharks occasionally circling them. The three were returning to Acapulco
with 270 kilograms/600 pounds of shark.

Cypriot-registry containership suffers fire

The Eagle Dawn (Cypriot-registry 10,396-gt, 12,854-dwt motor containership
built in 1992, operated by Columbia Shipmanagement) had a fire aboard off
Somalia on 21 July at 13 degrees 35 minutes north, 48 degrees 19 minutes
east. The fire was extinguished and the ship is being escorted to port.

Vanadis hull crack spills oil

The Vanadis (Swedish-registry 153,413-gt, 285,873-dwt tanker built in
1990, operated by ICB Shipping A.B.) began leaking crude oil 24 July from
a hull crack, at 28 degrees 47 minutes north, 94 degrees 29 minutes west.
The ship is anchored in the Gulf of Mexico. It is possible the crack is
the result of a collision with a fishing vessel on 21 June, 72 kilometers/45
miles off Durban, South Africa. The ship is shifting oil among its cargo
tanks to stop the leak.

Diesel spill following collision in Pascagoula

A lift boat broke its mooring on 18 July and hit the Secor Vision near
Pascagoula, Miss. About 13,000 liters/3,500 gallons of diesel fuel was
spilled. It then came to rest against two double-hulled tank barges, one
with 10,000 barrels of crude oil and the other with 10,000 barrels of diesel.
The lift boat had eight persons aboard, but none were injured.

Sinking in New York leads to discovery of bomb

The Caroline (U.S.-registry fishing vessel) caught fire and sank at
its mooring in Northport, N.Y., on Long Island, on 15 July. The next day,
a boat from U.S. Coast Guard Station Eaton's Neck, N.Y., arrived to investigate
and found several 19-liter/five-gallon fuel tanks linked to a timing device
in the pilothouse of another vessel of the Caroline's owner. The Suffolk
County (N.Y.) Bomb Squad defused the bomb.

Canadian-registry ship hits river bridge

The Grand Caribe (55-meter/180-foot long passenger ship built in 1997,
owned by American Canadian Carribean Line), with 92 passengers and 18 crew,
allided with the Sara Mildred Long Bridge over the Piscataqua River between
Portsmouth, N.H., and Kittery, Maine, early 23 July. A tug pulled the ship
free. The ship left Quebec on 11 July for Warren, R.I.

Costa Classica briefly grounds off Greek island

The Costa Classica (Liberian-registry 5,000-dwt passenger ship built
in 1991, operated by Prestige Cruises Management S.A.M.) ran aground 19
July off Kythira Island, Greece, near Kapsali. It had 1,513 passengers,
mostly U.S. citizens, and 544 crew aboard, and was anchored so that passengers
could board tenders to be taken to the island. Heavy winds caused the ship
to drag its anchors, and it grounded on a beach. The Costa Classica was
refloated by two tugs 12 hours later and with only minor damage amidships,
continued its voyage. The ship sailed from Venice, Italy, on 14 July for
a cruise in Greece.

Hurricane Danny update

In preparation for Hurricane Danny in the Gulf of Mexico, several offshore
platforms were evacuated last week, and the Louisiana Offshore Oil Platform
suspended operations. While several fishing vessels and private craft were
damaged, only one commercial casualty has been reported. On 19 July, a
36.6-meter/120-foot vehicle ferry broke its moorings as the storm passed
over Dauphin Island, Ala. The ferry was last reported adrift in Mobile
Bay, with the pier trailing behind.

Arkansas bridge damaged by crane under tow

The James R. Hines, under contract to the U.S. Army Corps of Engineers,
damaged a bridge in Helena, Ark., on 16 July. The tug was pushing a deck
barge, with a large crane aboard, northbound. The crane's boom hit four
longitudinal girders, causing enough damage to close the bridge. It will
reopen in about six weeks. At least 10,000 people use the bridge daily.

Liberian-registry ship towed to Honolulu

The Andacollo (Liberian-registry 19,354-gt, 29,985-dwt general cargo
ship built in 1996, operated by Egon Oldendorff) had a gearwheel failure
on 21 July at 18 degrees 59 minutes north, 158 degrees 39 minutes west.
The ship was towed to Honolulu by the tug Manuokekai. The Andacallo was
sailing from Callao, Peru, to Kobe, Japan, and was loaded.

Canadian-registry ferry loses power

The Chi-Cheemaun (Canadian-registry 6,991-gt, 4,821-nt, 111.3-meter/365.2-foot
ferry built in 1974 by Collingwood Shipyards at Collingwood, Ontario, Canada;
owned by Ontario Northland Transportation Commission and operated by Owen
Sound Tranportation Co. Ltd.) lost power last week after a propulsion failure
sailing to Tobermory, Canada. Sailings were canceled 17 July and 18 July,
and were to resume 19 July. The Chi-Cheemaun can carry 530 passengers and
138 vehicles.

Body of second lobster boat crewmember found

The body of Gordon Green, 37, was found in early 19 July in two meters/seven
feet of water off Donkin, Nova Scotia, Canada. On 15 July, Green and Darin
Eyles, 26, were aboard a lobster boat off Donkin when it capsized in heavy
seas. The vessel drifted ashore while an empty liferaft washed up a short
distance away. The body of Eyles was found late 15 July nearby. The two
had been recovering 150 lobster traps on the last day of the season.

Hanseatic contines voyage

Contrary to information reported in the World Maritime News on 18 July,
the Hanseatic (Bahamian-registry 8,378-gt, 1,023-dwt motor passenger ship
built in Finland in 1991, owned by Hanseatic Tours and operated by Hanseatic
Cruises GmbH) has continued its voyage. The ship ran aground on sand and
rocks off northern Spitsbergen Island, Norway, on 13 July in the Hinlopen
fjord, west of Nordaustlandet Island. It had 145 passengers, many of whom
are German tourists with an average age of 70, and 115 crew. There were
no injuries or damage. The Hanseatic had sailed 10 July from Honninsvag,
Norway for Reykjavik, Iceland. On 17 July, it was refloated and sailed
to Longyearbyen, Norway, where the passengers elected to continue. The
Hanseatic was to arrive in Reykjavik on 22 July. The master when the ship
grounded, Hartvig von Harling, has said he will not operate it again. He
was the master when the ship grounded in the Arctic 10 months ago as well.

Preliminary report on the sinking of the Green Opal

A preliminary report on the sinking of the Green Opal (Panamanian-registry
6,176-dwt bulk carrier built in 1976, owned by K.Y. Chu and operated by
Dooyang Line Co. Ltd.) by the Port of Calcutta, India, cites one of the
port's LASH barges as responsible. The Green Opal sank in the Hooghly River,
40 kilometers/25 miles east of Calcutta on 19 June after colliding with
a tug towing several barges. All 20 crew were rescued. The ship was sailing
to Keelung, Taiwan, with 7,000 tons of steel coils and billets. According
to the preliminary investigation, the tow strayed off course. Meanwhile,
the port has given the ship's owner one month to remove the wreck, and
has filed a lawsuit with the Calcutta High Court.

I.T.W.F., South Africa to survey the Cordigliera

The International Transport Workers' Federation and the South African
government will jointly survey the Cordigliera (Panamanian-registry 12,025-gt,
16,525-dwt dry cargo ship built in 1979, operated by Transatlantica Esp.).
The ship sank about 10 kilometers/six miles off Umzimvubu, South Africa,
early 14 Nov. at 31 degrees 21 minutes south, 30 degrees 01 minutes east.
All 30 Indian and South African citizens aboard were killed or are missing.
It was sailing from Durban, South Africa, to Cape Town, South Africa, and
then western Africa, including Abidjan, Cote d'Ivoire and Lagos, Nigeria,
before heading to the Mediterranean. The ship had a mixed cargo that included
granite and conditions at the time included high winds and heavy seas.
The exploration of the wreck will seek to determine why it sank so that
the I.T.W.F. can seek compensation for relatives of the crew. In addition,
any threat of pollution will be assessed. The ship must first be located
using side-scan sonar and remote-operated vehicles.

(AT) LAST...BUT NOT LEAST...

U.S. Military Sealift Command's Watson to be launched

The lead ship of the U.S. Military Sealift Command's Watson (T-AKR 310)-class
Ro/Ros will be launched at National Steel and Shipbuilding Co. in San Diego
on 26 July. The principal speaker will be U.S. Secretary of the Army Togo
D. West Jr. and the sponsor will be Gail Berry West. The ship is named
for U.S. Army Pvt. George Watson, who was posthumously awarded the Medal
of Honor on 23 Sept., 1996, for actions during World War II. On 8 March,
1943, Watson, of Birmingham, Ala., was serving with the 2nd Battalion,
29th Quartermaster Regiment, near Porlock Harbor, New Guinea. Watson was
aboard the Jacob (Dutch-registry), which had been chartered by the U.S.
government. It was attacked by aircraft and sank, but not before several
of those aboard were able to reach liferafts. Watson assisted several soldiers
who could not swim, saving several people at the cost of his own life.
T-AKR 310 was authorized fiscal year 1992, ordered 15 Sept., 1993, and
laid down in 1995. The 289.56-meter/950.00-foot ship, displacing 83,000
tons fully loaded, will carry Army equipment for the Brigade Afloat Force
in the Far East and Middle East.

Shipowners donate Scarab to Greek Navy

Constantinos Mavrakakis and Dionysios Sofos donated a speeboat to the
Greek Navy's Underwater Demolitions Unit on 22 July. The two shipowners
turned over the Scarab 1980 at the Palaskas training facility near Athens,
Greece.