BOW WAVE 216

Father Time's Edition

news and views on trade, insurance and risk

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Wavy Line	sam@wavyline.com
(c)2004 WavyLine.com	Issue No 216 12 Jan 04
Published free of charge to Readers
Editor: Sam Ignarski
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In this issue:

1. Welcome
2. Obituary of Sam Delich
3. Obituary of David Taylor
4. Charles De Trenck's End of Year Thoughts
5. PMA implementation of ISPS Code
6. And Finally...

1. Welcome

Flowers

Some men never think of it.
You did. You’d come along
And say you’d nearly brought me flowers
But something had gone wrong.

The shop was closed. Or you had doubts-
The sort that minds like ours
Dream up incessantly. You thought
I might not want your flowers.

It made me smile and hug you then.
Now I can only smile.
But, look, the flowers you nearly brought
Have lasted all this while.

Wendy Cope

New Readers this week include:

Bob Sarkis
Michael Bozier
Transport Consultant Gavin Roser of Pantrak
Seatrends Editor Ian Middleton
Martin Mitchell of Thyssen Mannesmann Trading in Sydney Sarah Banfield, Product Manager for Informa Law
David A. Waters in France
Lucinda Howe of the ICMA 2004 Congress Office
Kaare Langeland Manager-Hull Department,W K Webster David Culverwell of Shipowners Claims Bureau Inc in London Frank Lehmann of marine insurance brokers Marincom in Hamburg

News of Readers

Ian Cochrane is now managing editor of Marine Equipment News, International Shiprepair News and International Offshore News.

Contact him at:

iancochran@btconnect.com

Ron Wells' new book Global Credit Management:An Executive Summary is now available in Europe and will be available in the USA from March. It can be ordered for immediate delivery from Amazon.co.uk .... search under the title Global Credit Management to find all the details.

http://www.wileyeurope.com/WileyCDA/WileyTitle/productCd-0470851112.html

Readers Write:

Marine artist Gordon Frickers writes:

I have just experienced an attempt by a person allegedly in South Africa to buy over the internet a Laser sailing dinghy which I have advertised on the Class Association web site.
The boat is still for sale!

You may like the story in order to warn others.

Whilst I am best known for marine & French landscape paintings, with my 16 year old son (it is his old boat) I occasionally recondition sailing dinghies.

It turned out to be an attempt to fraudulently extract money from me.
A cheque was sent for considerably more than the price of the boat & I was asked to forward the balance to a shipping agent via one of 3 legitimate businesses in Plymouth. No surprise the shipping agent turned out to be based in , you guessed it? Nigeria.

Need I add, the cheque eventually bounced. Not before numerous attempts were made by phone to pressure me into sending on the balance in advance of the bank confirming the cheque had cleared

Contact him at:

g.frickers@btopenworld.com

Sad to note in the current Issue the passing away of two very good maritime men who managed in their different ways to put a lot into life.

Enjoy.

2. Obituary of Sam Delich

Many people in the through transport and insurance worlds will be saddened to learn that the maritime and transportation lawyer, Sam Delich, a partner with Flynn, Delich & Wise, died suddenly on January 4, 2004. He was 63.

Delich had a colourful and accomplished background. Born in Kemmerer, Wyoming in 1940 and raised on a cattle ranch, he was educated in a one-room school house and regularly participated in rodeos. In 1962, he graduated from Harvey Mudd College with a degree in Engineering, and received joint degrees (an M.B.A. and a J.D.) from Cornell University in 1966. He was Managing Partner of the San Francisco law firm of Ruprecht, Delich & U'Ren from 1970 to 1977, and a partner of Graham & James from 1978 (where he managed the Maritime Department for six years) until 1992, when he left with four other Graham & James partners to form Flynn, Delich & Wise, where he was Managing Partner. Delich came from the generation in California which considered maritime affairs every bit as crucial as the better paying areas of banking or mergers and which produced members of the legal profession who are often that bit more engaging than equivalents in other jurisdictions.

Delich was the legal expert of choice for issues relating to chassis liabilities and knew more than anyone else in the industry about the use of indemnities and cross liabilities in this singular field, which arose out of the strictly American practice under which not only containers but also the chassis they ride on are provided to customers in the ports not by hauliers but by shipowners or chassis pool operators.

Delich frequently was called upon by clients to assist local counsel in "over the road" issues across the country and around the world in connection with these matters. He was always hugely rated by people in the through transport world who understood the volatility of this kind of liability. His trial career spanned more than thirty years, and he was lead counsel in more than 23 appellate cases reported in the state and federal reporters. In 2000, he drafted and filed an amicus curiae brief with the United States Supreme Court that assisted in establishing important principles relating to the preemption of state law by federal law in connection with the control of oil pollution in state waters.

Delich is survived by his longtime companion, Kim Frost, of Healdsburg, by his parents, Sam Delich of Reno and Caroline McGinnis of Kemmerer, as well as his children and stepchildren, Trevan of Santa Rosa, Stephanie Rosco of Alameda and Jeremy of Grass Valley, by six grandchildren, and by his brother Miles McGinnis and cousin Robert Brunski, both of Kemmerer.

A gathering celebrating his life was held last Friday, January 9, 2004, at 3:00 at the University Club, California and Powell Streets, San Francisco.

3. Obituary of David Taylor

Mike Wall writes from Hong Kong:

It is with sadness that we report the death of David Taylor on 30 December 2003 after a relatively short illness. David served his time as a marine engineer cadet and marine engineer officer before obtaining a BSc (Hons) in Marine Engineering from Newcastle University, to be followed by a MSc in Shipbuilding. He worked at Swan Hunter Shipbuilders for a number of years before becoming a lecturer in Naval Architecture and Marine Engineering at South Shields Marine and Technical College. Some years later he relocated to Hong Kong to become a Lecturer in Marine Technology at the Hong Kong Polytechnic. In the mid 90's David left the Poly to establish his own consultancy in marine surveying and management. He will be remembered for his various publications which have contributed to the education of many a marine student.

A memorial service was held on Saturday 10 January 2004 at the Mariners Club, Tsim Sha Tsui, Hong Kong at which many of his friends and colleagues paid tribute to him.

4. Charles De Trenck's End of Year Thoughts

In his recent message to investors, container industry analyst Charles de Trenck writes:

Best 2003 share ideas in sector: OOIL, Royal Nedlloyd, U-Ming. All up between 200% and 500% + ...I would have neutral bets only currently -- with opportunities still best for stocks like U-Ming, Sincere, Noble and China Shipping for those willing to chase the bubble -- ...This performance was a 1x in decade event (last time was when I picked stocks like 517.HK and NOBLE in mid-90s -- clearly less value-oriented at the time).

OOIL over 9 years: I spent the best part of 1994 - 2004 with a buy on OOIL. During the period 1992 - 2002, trading opportunities in the stock provided 100% gain opportunities about 3 times over a decade. In 2003, this turned into a 500+% opportunity.

Biggest misses of 2003: Not being more trading oriented on NOL (defended the stock at lower levels but was not willing to chase up at higher levels) and Yang Ming (did not expect specific operational turnaround in 2003 to be as strong as proved), although these counters generally underperformed my top picks.

Stubborn streak: Continue to refuse to support a re-rating for Evergreen Marine given corporate governance issues, although operationally in 2004 Evergreen's fixed cost structure should help given charter costs rising for most operators

2007 ship sector picks (buy bigger positions only after significant corrections in sector): Buy NOL on weakness if current RECENT cost-cutting and redeployment strategy maintained, but need to see how it continues positioning for next up cycle; Buy Wan Hai on weakness if current Asia franchise holds and small buildup strategy in East-West trades works; Buy OOIL on corrections if company manages to get to 4m TEU while taking its 12x8000TEU and reducing its old 5000TEU exposure successfully; Buy Yangming on corrections if company mirrors replacement strategy of OOIL with reduction of charters on new vessel mega US$1.5bn expansion plans and keeps costs down as it has.

Find out more by contacting Charles at:

charles.detrenck@citigroup.com

5. PMA implementation of ISPS Code

Dennis L Bryant, the editor of the invaluable Maritime Items E-zine, recently ran the following item:

The Panama Maritime Authority (PMA) posted on its Internet site a revised circular discussing implementation of the International Ship and Port Facility Security (ISPS) Code. Among other things, the circular identifies the Recognized Security Organizations (RSOs) for purposes of evaluation of ship security plans and the RSOs for verification of the plans. Merchant Marine Circular No. 131 Revised (12/30/03)

http://www.segumar.com/HTML%20Merchant%20Marine%20Circulars/131r.htm

6. And Finally...

Many thanks to Theodore James for this latest take on communications between the sexes

A judge was interviewing a woman regarding her pending divorce, and asked, "What are the grounds for your divorce?" She replied, "About four acres and a nice little home in the middle of the property with a stream running by." "No," he said, "I mean what is the foundation of this case?" "It is made of concrete, brick and mortar," she responded. "I mean," he continued, "What are your relations like?" "I have an aunt and uncle living here in town, and so do my husband's parents."
He said, "Do you have a real grudge?" "No," she replied, "We have a two-car carport and have never really needed one." "Please," he tried again, "is there any infidelity in your marriage?"
"Yes, both my son and daughter have stereo sets. We don't necessarily like the music, but the answer to your questions is yes."
"Ma'am, does your husband ever beat you up?" "Yes," she responded, "about twice a week he gets up earlier than I do."
Finally, in frustration, the judge asked, "Lady, why do you want a divorce?"
"Oh, I don't want a divorce," she replied. "I've never wanted a divorce. My husband does. He said he can't communicate with me."

BOW WAVE is published each week to around 9400 Readers in the transport,insurance,shipping and finance industries.

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