NNPC

Author: nlnnpc-mashinaki

  • New rules on ballast water in South Korea

    New rules on ballast water in South Korea

    Now that Japan has begun discharging treated radioactive water into the ocean, South Korea has taken action to ensure that this wastewater does not enter Korean waterways. This is because not all radioactive materials can be filtered out of the water. This has consequences for vessels using these shipping lanes!

    Because of South Korea’s new measures, vessels that have taken on ballast water in the ports of Japan’s six east coast prefectures (Aomori, Iwate, Fukushima, Miyagi, Ibaragi and Chiba) must comply with additional rules.

    Reporting Japanese ballast water
    For example, all vessels that have taken on ballast water in any of these areas must submit the ballast water reporting form 24 hours before calling at a Korean port. Falsifying this data can lead to detentions and fines for failing to comply with the Ballast Water Management Act.

    Different rules also apply to vessels that want to discharge ballast water in Korean ports and vessels that do not want to do so.

    Discharging ballast water
    Vessels wishing to discharge ballast water in Korean waters after taking it on in one of Japan’s six eastern prefectures must first exchange it outside Korean waters. Officers from the regional Maritime Affairs and Fisheries office will come on board to check that the ballast water has indeed been exchanged. To do this, they will take 1 liter of ballast water and test it for radioactivity. This test takes about 1 hour. Only if the results show no radioactivity may the exchanged ballast water be discharged in the usual manner.

    Refraining from discharging
    Vessels that wish to refrain from discharging ballast water in Korean ports must prove that no ballast water has been discharged by mailing the relevant documents to the regional Maritime Affairs and Fisheries office at least 1 hour in advance. The following documents are required for this purpose:

    1. The Ballast Water Record Book
    2. Logbook
    3. BWMS operational data
    4. Ballast water tank capacity (photos)

    The office will review these documents and verify ‘non-discharge’ before the vessel departs. An on-board inspection may also take place. You may only depart if it has been verified that no ballast water has been discharged.

    Need help?
    For further assistance, please contact NNPC, we will be happy to advise and assist you.

  • Damage prevention – Transport of steel products

    Damage prevention – Transport of steel products

    [vc_row][vc_column width=”1/6″][/vc_column][vc_column width=”2/3″][us_image image=”11790″ size=”full”][us_separator size=”custom” height=”30px”][vc_column_text css=”%7B%22default%22%3A%7B%22font-size%22%3A%2222px%22%2C%22line-height%22%3A%2232px%22%2C%22font-family%22%3A%22body%22%2C%22font-weight%22%3A%22300%22%7D%7D”]Transporting steel products such as coils, profile sections, slabs, wire rods by sea is not without risk. These cargoes are sensitive to moisture, corrosion and mechanical damage and any contact with seawater can cause serious damage.[/vc_column_text][us_separator size=”custom” height=”30px”][vc_column_text]In the case of seawater, contact with chlorides can cause corrision and pitting corrosion which is sometimes difficult to detect. Pitting corrosion affects the thickness of the steel, making it impossible to use a product for its initial purpose. We regularly see that consignees try to prove the presence of chlorides on the steel by means of a silver nitrate test in order to substantiate a claim.

    With this publication, we want to explain how claims can be avoided and how the NNPC represents the interests of its members in such cases.[/vc_column_text][us_separator size=”custom” height=”30px”][vc_column_text css=”%7B%22default%22%3A%7B%22background-color%22%3A%22%23f5f5f5%22%2C%22padding-left%22%3A%2220px%22%2C%22padding-top%22%3A%2220px%22%2C%22padding-bottom%22%3A%2220px%22%2C%22padding-right%22%3A%2220px%22%7D%7D”]During transport, there are a number of measures that can be taken to mitigate the risk of damage. These are explained in the following sections.

    1. The contract of affreightment
    2. Preparing the hold and hatch covers
    3. Loading
    4. Transport by sea
    5. Unloading

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    The contract of affreightment

    When concluding the contract of affreightment it is important to make clear agreements about who is responsible for the loading and unloading, for whose risk the stevedores work and who supplies the lashing and dunnage and which party lashes down (shore crew appointed by the shipping company or charterers or does the crew lash down themselves). We specifically recommend taking the following into account in relation to this:

    • Where possible, leave the responsibility for this with the charterer and, in any case, do not accept responsibility for work they do not actually perform themselves.
    • Inform the master of the conditions of the voyage and send clear voyage instructions. This can avoid a situation in which documents are signed that place additional responsibilities on the vessel and involve the crew in matters for which the charterer is responsible. For example, that a statement is signed on behalf of the shipping company in which the master confirms that the cargo has been adequately secured by the stevedores while the cargo has been secured at the charterer’s risk.
    • Agree that before loading, a cargo list and possibly a preliminary stowage plan must be presented with details of the cargo. This way, the crew can check whether the dimensions and weight of the cargo correspond to the cargo details as agreed in the contract of affreightment. This also makes it possible to calculate the vessel’s stability in advance and to make adjustments to the provisional stowage accordingly, which is also very important if there are several loading and unloading ports.

    If the cargo interests want to have a surveyor present or to have the hatches tested for watertightness, we recommend that this is clearly agreed in the contract of affreightment.[/vc_column_text][us_separator size=”custom” height=”50px”][vc_column_text css=”%7B%22default%22%3A%7B%22font-size%22%3A%2240px%22%7D%7D” el_id=”2″]02[/vc_column_text][us_separator size=”custom” height=”5px”][vc_column_text]

    Preparing the hold and hatch covers

    It goes without saying that seawater contamination is a major cause of damage to steel cargoes. What is important to take into account is that the residues/remnants of seawater are often already present in the hold before loading and/or may precipitate on the cargo during the voyage as a result of condensation. Indeed, seawater is often used as washing water or can enter the holds through vents or the bilge wells.

    Measures to avoid the presence of seawater before loading:

    • Before loading, thoroughly clean the holds with fresh water and clear them of cargo residues. Then dry the holds or leave them to dry and ensure that all the free water is out of the hold. The hold must be completely dry before loading.
    • Before loading, check the non-return valves for proper operation and cargo residues. If necessary, dismantle and clean and then dry. In the engine room, the valves to the ‘bilge’ system should be closed and the alarms tested. The crew should record this in the log and possibly in a separate statement as a so-called ‘pre-loading’ checklist.
    • If possible, perform a test on the water tightness of the hatches (an ultrasonic test or ‘hose test’) and record the results in the ship’s log. Check that the gasket of the hatches is in good condition, that all previous loads have been removed from the chutes, there is no damage to chutes and covers and the drain chutes are free of rust and/or cargo residues and seal properly.
    • Steel has a high specific gravity (SG), 8,000 kg per cubic metre. This cargo at the bottom of the hold creates (additional) stresses and forces on the cargo, lashings and the actual vessel itself and has an impact on the stability of the vessel such as short roll times and large accelerations. During bad weather, the vessel will work strenuously and that is why the hatches should be in top condition.

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    Loading

    What can you do before and during loading?

    • When opening the hatch covers, check that no saltwater falls/drops down from the hatches. Prior to opening the hatches, it is recommended to dry them as much as possible.
    • If a surveyor or inspector wishes to come on board on behalf of cargo interests, their details (passport or ID card) and the purpose of their visit should be recorded in the log. It should be clear where and when the surveyor will examine the cargo and the master should ask questions about his observations. These observations should be studied carefully and be compared with the crew’s own observations during loading.
    • The stowage plan should take into account the type of steel as well as its dimensions and weight. So-called ‘hot-rolled’ steel coils are more weather-resistant and are often already slightly atmospherically corroded or wet before loading. Insofar as possible, these coils should not be loaded in the same hold as packaged so-called ‘cold-rolled’ steel coils, which are highly sensitive to corrision.
    • During loading, keep hatches closed as much as possible and close them as soon as possible in case of rain or snowfall. Record these periods in the log.
    • Any observations about the condition of the cargo should be made on the bill of lading after loading, or attached as an appendix. Crews can use the templates available on the NNPC website (under ‘news and publications’ – ‘downloads’) for this as reference material.
    • In addition to general remarks about the packaging, dents, tears, dirt, bird droppings, moisture, corrosion and possible damage to the cargo, specific remarks should also be included. If these are not included on the bill of lading, the shipping company runs the risk of being held liable for any damage. Examples of remarks that can be used to record the condition of the steel and place them on the bill of lading can be found on the NNPC website (under ‘news and publications – ‘downloads’).

    From the perspective of possible claims, it is also important to record the situation at the loading port. For example:

    • Where the cargo came from and how it is brought in. Open trucks, contaminated trucks, open rail cars;
    • How the cargo is being loaded. Using a quay crane, mobile crane, number of units per hoist and what materials are used to hoist the cargo on board;
    • Where is the loading area? Is it close to the sea, are the waves crashing over a pier, are there any polluting industries next to the loading area; If any work is being carried out in the vicinity of the loading port that could potentially have an impact, this should be noted.
    • What was the temperature, day and night, any humidity.
    • What was the condition of the cargo after it had rained? In any event, make sure the hatch covers are dry after a rain shower so that no moisture enters the hold when it is opened.
    • Photograph anything that could be relevant to the condition of the cargo.
    • If the cargo is not visible because it is packed or covered, this should also be recorded.

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    Transport by sea

    At sea, it is important not to allow any seawater to enter the hold and to also avoid condensation.

    What can be done to prevent this?

    When the weather is bad, there is a greater risk that seawater can enter the holds through the hatches. A vessel’s hull has a certain flexibility while the hatches and hatch coaming form a rigid unit. In heavy weather, the ship may ‘pull’ on the hatches, so to speak, which will result in there being less or no pressure locally between the hatch rubbers and the hatch coaming. This allows seawater to enter which, if all goes well, will be discharged via the drains. However, if too much water enters, combined with heavy rolling and pounding of the vessel, the drains may overflow and seawater may enter the hold. This should be avoided at all times. Depending on the position, local conditions and the duration of the bad weather, course and speed adjustments can be considered to prevent extreme movement of the vessel. In the event of course and speed adjustments, it is important to ensure that these are properly recorded in the log.

    In connection with this, it is important to keep a close eye on the condition of the cargo and lashings in the holds during the voyage, insofar as this can be done safely, and to identify any ingress of seawater and condensation in time. It is also important to manually sound the bilge every day and not to rely solely on the proper functioning of the alarm.

    If, despite the above, problems arise due to seawater in the holds, it is important that the shipowner is fully informed without delay. Damage can possibly be prevented and/or mitigated by appointing a surveyor who is present on behalf of the shipowner and/or P&I club before and during unloading.[/vc_column_text][us_separator size=”custom” height=”50px”][vc_column_text css=”%7B%22default%22%3A%7B%22font-size%22%3A%2240px%22%7D%7D” el_id=”5″]05[/vc_column_text][us_separator size=”custom” height=”5px”][vc_column_text el_id=”5″]

    Unloading

    What can you do before and during unloading?

    • On arrival in port and when opening the holds, the hatches should be free of salt water. We recommend rinsing the hatches with fresh water first and drying them off as much as possible. Every positive silver nitrate test increases the likelihood of the ship being held responsible for damage.
    • If anything unusual is observed in the holds on arrival, the shipowner should be informed of this without delay. In consultation with the P&I club and correspondent, an inspection can then take place and it can be decided what measures can be taken to mitigate the damage. We recommend that the provision of information to cargo interests take place through the P&I club and that no access be granted to counter experts without the surveyor being present on behalf of the shipowner.
    • During unloading, leave hatch covers closed as much as possible to mitigate the risks of precipitation or calamities.
    • Experts or other persons coming on board on behalf of a cargo interest will need to report and identify themselves first. They should board or be provided with information with permission only.
    • No documents referring to possible cargo damage should be signed at the end of the unloading. If a master is nevertheless forced to sign such documents, a caveat should always be stated, for example: ‘Signed without prejudice, for receipt only’.

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    Finally

    It is always, but especially in the case of steel, of utmost importance to ensure that any observations are recorded, notes are made on bills of lading and that the utmost care is taken to make vessel and holds watertight and free of condensation. In the event of any doubts, the shipping company and/or the P&I club should be contacted for advice or assistance.[/vc_column_text][/vc_column][vc_column width=”1/6″][/vc_column][/vc_row]

  • Military coup in Gabon – Update

    Military coup in Gabon – Update

    Following what seems to be a military coup which took place on 30-08-23, military leaders seem to have overthrown the central African nation of Gabon ruling government shortly after the incumbent president was re-elected.

    Local correspondents report that the situation in Gabon is currently relatively stable, with country borders currently closed and a curfew being implemented as from 30-08-2023 19:00hrs.

    Correspondents report that roads are closed and operations in ports are seemingly halted. However vessels scheduled to arrive imminently at Libreville and Owendo port appear to be able to berth. However Members are strongly advised to contact their local agents prior to scheduling calls at any port in Gabon and request daily updates in order to assess operational and safety risks involved.

    For any queries relating to this matter, members are invited to contact the NNPC via claims@nnpc.nl.

  • Increased instances of issues with the carriage of scrap metal cargo

    Increased instances of issues with the carriage of scrap metal cargo

    In recent months an increased number of notifications has been received with respect to scrap metal cargoes catching fire during the voyage. This increase has been specifically noted for the cargo loaded in the ports of East Coast USA and notably in the port of Ghent (Belgium).

    When loading scrap metal members must ensure that they are aware of the cargo specifications when asked to carry scrap metal. ‘SCRAP METAL’ is a bulk cargo shipping name (BCSN) found in the IMSBC Code. It is a Group C cargo but it must not contain fine metal turnings known as ‘swarf’. It is important to understand that if this scrap metal does contain “swarf”, then it would likely fall under the schedule ‘FERROUS METAL BORINGS, SHAVINGS, TURNINGS or CUTTINGS UN 2793’, which is a Group B cargo of IMSBC Code.

    As per the IMSBC Code, scrap metal should be kept as dry as practicable before loading and not loaded in the rain. When loaded in wet condition this may accelerate the oxidization process which in turn can lead to fire. If the cargo contain swarf, turnings, or other contaminants such as timber or rags, this may lead to fire. Also when cargo is being sprayed on by water during loading ( to minimize dust) this may increase the risk of fire.

    We further recommend our members to be vigilant when loading scrap metal cargoes and instruct the master and crew to closely monitored for swarf or other contaminants and avoid loading in rain. Members should also ensure that the temperatures inside the cargo are checked regularly during loading and during the voyage. If the temperature before or during loading exceeds 55 °C the Master should alert their Principal as there may well be a danger of combustion. Temperature rising to 80 °C, during the voyage indicate a potential fire risk and the vessel should immediately proceed to the nearest port.

    Members should furthermore consider the potential danger to their crew as there is a hazard of oxygen depletion in the cargo holds due to oxidation of cargo. When entering enclosed spaces, the crew should make sure to use the necessary safety equipment (incl. breathing apparatus )

    It is recommended that members request Shippers to declare in writing that the scrap metal cargo does not include borings, shavings, turnings or cuttings that encourage self-heating. This declaration, together with a copy of the cargo specifications should be presented well before the load date so that members may still have time to scrutinize this.

    Members are also recommended to ensure that charter parties allocate liabilities between the parties in a clear and unambiguous way and contain provisions which ensure that the cargo is properly documented and must be carried in accordance with IMSBC and that cargo documentation (including the Shippers’ declaration) is presented in a timely fashion.

    In case members require assistance in respect of the carriage of these cargoes they are invited to contact NNPC via claims@nnpc.nl.

  • Interview: behind the scenes of a P&I inspection

    [vc_row][vc_column width=”1/12″][/vc_column][vc_column width=”10/12″][us_image image=”11646″ size=”full”][us_separator size=”custom” height=”30px”][vc_column_text]It will be time for the next P&I inspection before you know it. So what is the importance of these inspections? Are they a burden or a service? NNPC spoke to Walter Dekkers, Managing Director of Van Ameyde Marine which carries out these inspections for the insurer.

    Walter Dekkers started his career at Van Ameyde in 1990 as a Technical Surveyor. However, before joining the company he sailed the world and worked for a number of shipping companies for seven years when he first left the Maritime Academy [Hogere Zeevaartschool]. At that time his job consisted of engine maintenance work, which is a very different to the work he subsequently went on to do at his current employer where he worked his way up to Managing Director in 2006. The experience he gained during those initial seven years after leaving the Maritime Academy nevertheless proved to be very valuable for the company.[/vc_column_text][us_separator size=”custom” height=”30px”][vc_column_text]

    Can you tell us what exactly a P&I inspection entails?

    “P&I stands for protection and indemnity. It is a liability insurance for shipping companies. Just like for cars there is a clear distinction between liability and comprehensive insurance in the case of vessels too. P&I inspections, such as the ones we carry out for NNPC and others, are in fact a risk analysis. That is, during such inspections we look at whether a vessel has been properly maintained and whether the owners have ensured that risks are kept to a minimum. We not only carry out a visual inspection of the actual vessel itself but also look at whether the crew on board meets the requirements and enough attention has been paid to training. This is important because many incidents are a result of human error.”[/vc_column_text][us_separator size=”custom” height=”30px”][vc_column_text]

    What do the inspections involve?

    “First of all, we follow the checklist of the P&I club that engages us. These sometimes tend to differ. Our main focus is on the risk areas for the club, the things that could lead to liability in the event of damage to third-party property. Aspects such as the crew standards, the maintenance of hatches where cargo damage can occur, whether preventive measures have been taken to prevent oil spills, for example, whether the engines are in good condition… It’s an overall impression of everything from the bridge to the engine room, but with a focus on things covered by the P&I club.”[/vc_column_text][us_separator size=”custom” height=”30px”][vc_column_text]

    What makes these inspections different from those carried out by a classification society or Port State Control?

    “In short, the main emphasis is on prevention. But let me start by saying something about the other two. A classification society certifies vessels. We don’t. They monitor requirements set by the IMO (International Maritime Organisation) and work on behalf of the flag state where the vessel is registered. Their main focus is on regulations and they stay on top of these from new construction, approving drawings, etc. Then there is Port State Control. They often pop aboard unannounced when the vessel is in port. These inspections can be quite extensive. They look at safety and aspects such as the equipment on the bridge, whether the charts have been properly updated, but also at whether the classification society is doing its job. And if this is not the case then the worst-case scenario is a threat of detention.'[/vc_column_text][us_separator size=”custom” height=”30px”][vc_column_text]

    So the emphasis is on very different things.

    “We are focused on preventive action to minimise risks and thus prevent damage, mainly to the cargo, which is the most commonly claimed damage. For example, we look at the watertightness of the hatches, the presence of deformations, black corrosion or traces of leakage, or, for example, a risk of spillage during bunkering. Van Ameyde Marine is very much focused on this as well as on the knowledge and skills of the crew and whether the certificates still meet the requirements. We do all of this in plenty of time to ensure that you will still have an opportunity to make adjustments and improvements. A standard inspection takes no more than a day, but for NNPC we also arrange a shorter one which gives an overall impression and takes four hours. This saves time and money but it is just a snapshot in which only the larger defects may become evident. If it appears that there are more serious problems we will recommend a full inspection.”[/vc_column_text][us_separator size=”custom” height=”30px”][vc_column_text]

    So you help shipowners avoid problems?

    “We are there to assist. Not everyone is keen on inspections and we understand that. That is why we often explain the benefits for the shipowner: we do not come on board to police things, absolutely not! Inspections are always carried out in consultation with the shipowner to ensure that they fit into the busy schedule and we don’t necessarily only look at defects, but also at how things could possibly be improved. That is our area of expertise. Those observations can help a shipowner avoid accidents and reduce cargo damage. If NNPC did not have any inspections carried out, the premium would shoot up because there would be more claims. So in the long run, these inspections actually save money. They help the P&I club keep its insured fleet in order and premiums low.”[/vc_column_text][us_separator size=”custom” height=”30px”][vc_column_text]

    Have there been any new developments in your field?

    “There are more and more new challenges with regard to environmental requirements, new fuels, cyber risks, remotely controlled equipment on the bridge and engine room… Partly as a result of this, our inspections are increasingly taking on the nature of an audit to see that not only the hardware is in order, but also the software. They include the shipping company’s policy on procedures, crew training and the Safety Management System. For this reason, we evaluate the inspection list in good time and adjust it where necessary.”[/vc_column_text][us_separator size=”custom” height=”30px”][vc_column_text]

    Are there any final thoughts you would like to share?

    The P&I inspections are an (additional) service from NNPC aimed at minimising risks for the shipowner, crew, client and the environment. The ship’s management generally already has this under control to such an extent that inspections like this may seem unnecessary but the experience and knowledge of our P&I experts nevertheless often brings things to light. So the inspections pay off. In our job we come across vessels with all kinds of problems but in general NNPC is a good club with vessels that do not have many defects. And that is partly because of these inspections, which are an important service.”[/vc_column_text][us_separator size=”custom” height=”50px”][us_message]NNPC Mutual
    With periodic P&I inspections, you avoid damage and operational delays. If you are not already having these carried out: NNPC provides them free of charge for members with the Mutual package. [/us_message][/vc_column][vc_column width=”1/12″][/vc_column][/vc_row]

  • Maritime transport emissions: OMI climate ambitions for 2030, 2040 and 2050

    Maritime transport emissions: OMI climate ambitions for 2030, 2040 and 2050

    On 07 July 2023 the members of the International Maritime Organization (IMO) agreed to a new strategy to reduce greenhouse gas emissions. During the Marine Environment Protection Committee (MEPC 80) climate summit it was agreed that the maritime sector would aim for zero-emissions by around 2050.

    The agreement is a milestone for the efforts to reduce the climate footprint of international maritime transport and calls upon the shipping sector. The goal of net zero emissions represents a major increase from the ambitions described in the earlier 2018 strategy, which aimed at reducing emissions from ships by 50% within the same period. The strategy includes indicative checkpoints to reduce emissions by 20% – 30% by 2030 and at least 70% – 80% by 2040. The strategy assumes a reduction of at least 5% – 10% – by 2030 through the implementation of technologies and the use of new fuels. The European Union will engage with the IMO to decide on clear and ambitious measures to be adopted by 2025 in order to reach these targets.

    For a more detailed overview of the new strategy, we refer our Members to the press release available on the website of the IMO.

    https://www.imo.org/en/MediaCentre/PressBriefings/pages/Revised-GHG-reduction-strategy-for-global-shipping-adopted-.aspx

  • K&R Insurance update

    K&R Insurance update

    The NNPC recently renewed her K&R insurance and that makes it a perfect time to point out this insurance, for which the basic coverage is free of charge for our members, once more. The K&R insurance covers all the “normal” events, like kidnapping, hijacking, extortion and cyber-attacks. In addition to these events it is also possible to insure loss of hire due to a hijacking. The policy in principle provides worldwide cover, although there are some exemptions, the so-called “Areas of Perceived Enhanced Risk” also known as the JWLA.

    Since the JWLA is updated regularly, it is important to know when a certain update comes into force as the update will be included in the policy after seven days. Despite the fact that the updates will hardly be surprises, for example Russia, the Sea of Azov and parts of the Black sea last year and Sudan this year, we do encourage keeping an eye on these updates.

    For many of the areas mentioned in the JWLA piracy is not a (considerable) risk and for these area it usually is enough to inform us about the fact that an insured vessel will cross such an area. There are some exceptions though, areas in which the Kidnap & Ransom risk is high, like the Gulf of Guinea and the Gulf of Aden/Indian Ocean. These areas are not included in the standard cover but can be included against additional terms and premium. You can contact our Underwriting department for further information. Finally, there are some areas that can not be included, these are:

    • Area’s within 100 nautical miles of the Socotra archipelago;
    • Area’s within 40 nautical miles of the north of Somalia;
    • Area’s within 250 nautical miles of the East Coast of Somalia.

    If there are any questions, please contact our Underwriting department.

  • Amendments to Insured Risks, Class 2

    [vc_row][vc_column width=”1/6″][/vc_column][vc_column width=”2/3″][vc_column_text]The board of directors has, in accordance with Article 14.2 of the Regulations decided to include a supplementary Rule to the Insured Risks, Class 2, as follows:[/vc_column_text][/vc_column][vc_column width=”1/6″][/vc_column][/vc_row][vc_row height=”auto”][vc_column width=”1/6″][/vc_column][vc_column width=”2/3″][vc_column_text]

    Insured Risks Class 2, Rule 2.5

    The members are insured for legal advice and assistance for claims and disputes arising from the purchase or sale of a vessel, up to a maximum of Euro 100.000,- per contract and subject to a deductible of Euro 5.000,-, provided that in any matter relating to:

    • a. the purchase of a vessel cover is excluded for any dispute or claim which arises prior to delivery of the vessel to the member, unless the entry is made effective from the date of the relevant contract, approved by the Association and subject to any additional terms; and
    • b. the sale of a vessel cover will only extend after the vessel has been insured with the Association for the minimum duration of one full policy year.

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  • EU Sanctions Package 11: Latest Developments on Russia Sanctions (23-06-23)

    EU Sanctions Package 11: Latest Developments on Russia Sanctions (23-06-23)

    Reference is made to our previous circulars regarding sanctions against Russia in response to the escalation of the conflict in Ukraine, available on our NNPC website.

    On 23 June 2023 the European Union (EU) adopted an 11th sanction package against Russia in order to increase the scope and effectiveness of existing EU sanctions against Russia.

    A number of the key elements of the new package are:

    • New measures to allow the EU to restrict the sale, supply, transfer or export of specified sanctioned goods and technology to certain third countries whose jurisdictions are considered to be at continued and particularly high risk of circumvention.
    • Extension of the transit prohibition for certain sensitive goods (e.g. advanced technology, aviation-related materials) exported from the EU to third countries, via Russia.
    • Addition of 87 new entities to the list of those identified as supporting Russia’s military and industrial complex in its war of aggression against Ukraine.
    • Restrictions on trade of certain goods to/from Russia (eg. iron and steel goods, luxury cars, certain types of machinery components, dual use goods etc.).
    • Furthermore access to EU ports has been restricted for ships that are involved in (or are suspected to be involved in) ship-to-ship transfers of Russian oil.

    For a detailed overview of the sanctions package members are referred to to the official website of the EU available via following link:
    https://ec.europa.eu/commission/presscorner/detail/en/ip_23_3429

  • EU ETS – Emission Trading Scheme Allowances Clause for Time Charter Parties 2022 (“ETSA Clause”)

    EU ETS – Emission Trading Scheme Allowances Clause for Time Charter Parties 2022 (“ETSA Clause”)

    In our earlier circulars we have notified Members of regulatory changes to Marpol Annex VI introducing the EEXI (Energy Efficiency Existing Index) and CII (Carbon Intensity Indicator) mechanisms as from 1 January 2023.

    In that respect BIMCO had already introduced clauses for inclusion into charterparties, namely ‘CII Operations Clause for Time Charter Parties 2022’ and ‘EEXI Transition Clause for Time Charter Parties 2021’ to apportion the risk and liabilities between Owners and Charterers as a result of the changed regulation.

    Separate to the amendments to MARPOL Annex VI as described above, EU Members States have recently also agreed on a “cap and trade” emission scheme called Emissions Trading System (ETS), which is requiring companies to buy permits to emit carbon dioxide. If and when implemented (currently envisaged as from 1st January 2024) this will require shipping companies to purchase allowances for carbon emissions relating to voyages of ships from 400GT to/from EU ports.

    BIMCO have now published a clause for incorporation into Time Charter Parties which allocates costs and responsibilities for obtaining, transferring, and surrendering greenhouse gas emissions allowances for ships operating under an emissions scheme, such as the EU Emissions Trading System (ETS).

    The basis of the clause is that the party providing and paying for the fuel under the time charter is also the party that is responsible for providing and paying for emissions trading allowances. It falls to the Shipowner to monitor the ship’s emissions and provide the relevant emissions data to the Charterers together with the basis of calculations. Using this information, the Charterers are then to transfer the appropriate allowances to the Owners on monthly basis. The clause also addresses the adjustment of allowances due to offhire events as well as the consequences if Charterers fail to transfer allowances when due.

    The “EU ETS – Emission Trading Scheme Allowances Clause for Time Charter Parties 2022” Clause can be accessed via this link.

    It should be noted that BIMCO is also working on a EU ETS Voyage Charterparty clauses at present which we will share with our Members via this channel once available.