BOW WAVE 255

Bow Wave Issue 255--Problems of Success Edition

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(c)2004 WavyLine.com	Issue No 255 11 Oct 04
Published free of charge to Readers
Editor: Sam Ignarski
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In this issue:

1. Welcome
2. In the Wake for October
3. Firework Blues for Virgin Blue
4. Guest Column: Moving On by Ted Prince
lobalTrade eLC Delivery Service
6. And Finally...

1. Welcome

Bow Wave Reader Vacancies

Underwriting Assistant in London EC3

Michael Else and Company, Underwriting Agents for Transmarine and The Charterers P&I Club are seeking an energetic, enthusiastic and motivated individual to join its underwriting team in the role of underwriting assistant to the Transmarine class underwriter. The role will involve technical support work, progressing to a position of underwriting authority. The candidate would have the capacity to develop relationships with brokers and clients as well as travelling on the company's behalf. The ideal candidate would have several years work experience and have a sound working knowledge of the principles of marine insurance.

This is an ideal opportunity to join a reputable, expanding and stable organisation offering long term career prospects and pleasant/friendly working environment. Salary £30-40,000 p.a. depending on age and experience, plus profit share and benefits.

Contact Christopher Else at

celse@else.co.uk

New Readers this week include:

Linda Lim of PIL in Singapore
Paul Van Os in Dar Es Salaam in Tanzania
Philip Kempe
Surveyor Rajesh.Auplish of ISS in Dubai
Naval Man Will Macht
Meng Fang of CCS in China
Marine and Transit Team at Solicitors Hill Dickinson Senior Port Consultant Eleanor Hadland of Drewry

News of Readers

Transport Solicitor Kay Pysden has set up in practice with her associates in Fenchurch Street where she has been open for business for five weeks now.

http://www.pysdens.com

Jodi McDougall , who remains the lead partner in the maritime group of Cozen O'Connor's Seattle office, informs us that she along with colleagues J.C. Ditzler, Rod Fonda and Tim Borchers continue to handle a broad range of maritime litigation, P&I defence, subrogation, cargo, and marine insurance issues, notwithstanding the departure of certain attorneys.

http://www.cozen.com

Plenty in this issue dealing with the problems of a booming freight market. Nice problem to have.

Do you need to advertise a vacancy? Do you want to announce a new product or service? Why not contact us and ask us for terms to appear on top of our e-zine.

Enjoy.

2. In the Wake--the view of Gray Page for October

--Freight rates hotting-up again in the container market

In the week just past Lloyds Register released details about the recent rebuilding of the container ship Hanjin Pennsylvania (4,300 TEU, 2002-built). While there is no doubt that the timing of the release was in any way influenced by the approach of the 398th Guy Fawkes night, it spurred some thoughts on the resurgence of the container market, which itself has risen like a phoenix from the ashes since freight rates were in the trough in December 2001.

Now trading under the name Norasia Bellatrix and managed by Zodiac Maritime, the vessel was thought to be a total loss after suffering from a spectacular, albeit an unfortunate fire in November 2002. She was sold for scrap in April 2003 (for a reported US$2.3m), then was subsequently towed to Shanghai for rebuilding at an estimated cost of US$20-30m.

The Norasia Bellatrix re-entered service in June / July 2004 and into a booming market that has seen freight rates for similar vessels rise from under US$20,000 / day at the time of the fire, to rates today of over
US$35,000 / day. Brokers specialising in the market, including Howe Robinson, are indicating that the market is likely to remain strong in 2005 and that owners are seeking longer period charters as a means of securing stronger returns on their vessels. One broker was quoted in the press as saying that all such vessels have been fixed ahead for a minimum of three to five years.

--Crude inflation

With the price of crude oil continuing its seemingly inexorable rise (US$53 a barrel as of Friday last) some major airline operators have increased the level of their fuel surcharges. The impact on the marine fuels market has been no less dramatic, but with all eyes fixed agog on what is happening to charter hire rates, there is a growing risk that mounting inflationary pressures are being ignored.

According to bunker market news service Bunkerworld, average prices in Rotterdam have reached US$173 pmt for IFO 380, and a whopping US$458 pmt for marine gas oil. This compares to prices in 2000 of around US$140 pmt for residual product and US$235 for distillates.

As charterers seek to further reduce overall voyage costs and maximise cargo movements, ships are being pushed to operate at full speed and obviously more fuel is being consumed. By definition, credit lines will be extended to their maximum in order to handle the increasing cost of fuel and so it follows that for every party earning more, there is another party owning more. Hopefully shipowners and bunker suppliers already have contingencies in place in the event that fright rates plummet, but bunker prices remain firm at their current levels.

--For the want of a lilo and few jars of piccalilli

On 27th September an environmental lobbying group going by the catchy moniker of "Green Warriors of Norway" (GWN) undertook a mock assault on a ferry in the port of Bergen. According to reports of the event, they fired dummy explosives at the vessel, went alongside in a speedboat and attached smoke grenades to the hull and horrors of horrors, three members of GWN accessed the port dressed as business men, in three separate cars. Apparently the "attack" was staged to bring attention to the GWN's contention that there are weaknesses in the ISPS Code and to demand more money for security measures at Bergen. No doubt the authorities will take this somewhat seriously, albeit possibly not in the way GWN may have desired. However, it’s difficult not to believe that the one thing this stunt has probably achieved more effectively than anything else has been to put "action groups" more firmly on the "threat radar" especially in regions where the disruption they have a passion for creating is, more often than not, a greater problem than terrorist activity.
Of course, these sorts of stunts tell us nothing more about the effectiveness of maritime security measures and ISPS Code than we don't already know. If one wanted to risk hypothermia and being run down in the Solent by passing traffic, one could paddle out on a lilo and land a few well-aimed jars of piccalilli on the side of one of the many Isle of White ferries. It doesn&'t make those ferries any more of a credible target of terrorist activity!

If the GWN exploit raises anything, it is the spectre of one of the real problems that has dogged the ISPS Code. A staged publicity stunt is not the same as a terrorist attack and the ISPS Code was not brought forward to combat the PR-oriented daring-do of "action groups". Its purpose is to try and reduce the vulnerabilities of the shipping industry to the threat of crime and terrorism, through a systematic and globally regulated code. Persistent terrorist attacks on ports and shipping, resulting in death and destruction would be evidence that the ISPS Code and maritime security measures more widely are seriously flawed. Fortunately, this is not the case and while there have been some terrorist attacks in the maritime domain, they have been exceptional.

Threatening the safe navigation of a passenger vessel and causing worry amongst unwitting passengers is a daft, not a deft way of making a tenable argument for
the expansion of funding for maritime security.

--To report or not to report, that is the question.

Policy makers from the United States Coast Guard (USCG) and Equasis plan to meet next month to discuss their respective approaches to the release of information relating to ISPS Code detentions.

As it stands, USCG detention reports are summarised under three categories; detentions relating to safety issues; detentions relating to safety and security issues; and detentions on purely security grounds. Equasis on the other hand has decided to omit "security only" detentions from its data-base, believing that the inclusion of such information would aid terrorist organisations. It has, however, decided to report ISPS Code-failures where the vessel has also been detained on safety issues. Quite why terrorists would only be interested in vessels which have failed security inspections and not safety & security inspections is not fully explained.

Notwithstanding the outcomes of the discussions between Equasis and the USCG, surely all detentions should be reported, as it is the only consistent means to
demonstrate that compliance with the ISPS Code is being monitored and enforced at a port state control level.

--Maritime Graduates of Liverpool

It testimony to the audacious PR-skills of Phil Parry (MD of Spinnaker Consulting) that Plymouth Nautical Degree Association (PYNDA) is receiving growing recognition in shipping circles. For alumni of the university's maritime degree courses, there appears not only to be a bourgeoning cache attached to membership of PYNDA, but it provides a valuable contact network and some pretty decent drinking opportunities. (Details of PYNDA can be found at

http://www.pynda.com

Those who chose to study elsewhere and specifically in the glorious maritime city of Liverpool have been missing a trick here, but now the first steps are being taken to establish an equivalent association for Liverpool maritime graduates.

If you are interested in membership of the new association please contact James Wilkes at Gray Page at:

james.wilkes@graypagelimited.com

As a side note, the potential name of the new association is causing a few problems at the moment. Two obvious possibles are the Liverpool Maritime Degree Association or the Liverpool Nautical Degree Association. At first sight, either would seem appropriate. However, there are one or two slight concerns about the respective acronyms LNDA (phonetically pronounced Linda) or LMDA (which phonetically would be Limda). Suggestions or constructive comments would be welcome.

--Darwin Awards 2004

Apparently the nominees for this year's Darwin Awards are out. For those who haven't yet experienced the phenomenon, the Darwin Awards are named in honour of Charles Darwin, the father of evolution, and commemorate those who improve the human gene pool by managing to remove themselves from it in the most incredible ways.

By way of example, included in the nominations for 2004 is the story of the three Brazilian men flying in a light aircraft at low altitude when another plane approached. It appears that they decided to "moon" the occupants of the other plane, but lost control of their own aircraft and crashed. They were all found dead in the wreckage with their pants around their ankles.

http://www.darwinawards.com

3. Firework Blues for Virgin Blue

Ken Burgess reports:

Undeclared and mis-declared dangerous goods continue to find their way onboard aircraft. A firework in the hold of a Virgin Blue 737 at Sydney airport, Australia, makes the point.

Airline Virgin Blue admitted on September 23 that a baggage handler failed to follow proper procedure by taking an unlit "firebomb", found aboard a passenger aircraft at Sydney airport, into the domestic terminal. Baggage-handlers discovered the device in the cargo hold of a Virgin Blue 737-300. It was found wrapped in a cardboard toilet roll tube with a firework sparkler attached as a 30-second fuse.

Virgin's head of commercial operations rejected reports that the airline delayed informing police for more than an hour after the device was found, saying: "We informed the Australian Protective Service within 15 minutes." He said the airline believed "an airport worker with an agenda" was responsible and probably meant for the device to be found, noting: "It was clearly placed there by somebody who had access to the airfield because it didn't go through checked baggage. It wasn't taken on by a passenger because it was in the cargo hold and we don't know if it flew from Maroochydore to Sydney or if it was placed on the plane in Sydney. We believe it was placed in a way that it would be found and draw the attention that it did today. Somebody is trying to make a show out of this whole thing in our view."

Contradicting that version of events, on September 24 police confirmed that the device was in fact a teenager's home-made firework that fell out of the boy's luggage and into the hold of an airliner, where it was found by an airport worker.

Source and copyright: Hazards Intelligence
http://www.saunalahti.fi/ility

Ken Burgess is the Director of Exis Technologies. His company has been behind the computerisation of the IMDG Code and his innovative dangerous goods programmes are designed to help people who move such goods by sea.

for details and demos go to:-

http://www.hazworld.com

Bow Wave Readers who purchase a product will be given a 10 per cent discount by entering the reference BOW WAVE in the distributor box on the order form.

Contact Ken at:-

Ken.Burgess@existec.com

4. Guest Column: Moving On by Ted Prince

The October edition of the Journal of Commerce contains one of the best examples of a favourite columnists' work:-

Although baseball may no longer be America's pastime, come October, the nation's attention will turn
to the World Series - the Fall Classic. Great plays - as well as bad calls by umpires - will be
memorialized. It has been almost 20 years since Don Denkinger blew a safe-or-out call at first base in 1985, but many fans still believe the call cost the St. Louis Cardinals the World Series title in their
battle against the Kansas City Royals. Like umpires, who seem to be noticed only when they make a mistake, the role of the transportation industry becomes apparent only when something goes wrong. Recent episodes that highlighted the role of transportation in our society and economy include the shutdown of the aviation system for three days after Sept. 11 and the West Coast longshore lockout in October 2002.Both interruptions quickly strangled the economy.

Traditionally, if it is October in the transportation industry, it must be peak season. But this year
has been a little different. Early on, many carriers were seeing their largest volumes ever - even
though retailing behemoth Wal- Mart was holding back holiday cargo until September and October. The
transportation system has shown signs of strain all year. The epicenter of these problems is the West Coast, especially Southern California. Imports have risen faster than economic activity, largely because of continued relocation of production sourcing to China. Commodities such as export grain have been competing with intermodal for railroad network capacity, and truckload carriers have 10 to 25 percent more business than they can handle. Let's try to diagnose the disease.

* When you're in a hole, stop digging. While railroad service may have been the first to break down, all modes have contributed to congestion. The overall transportation system lacks redundancy and the ability to recover from surges and interruptions.

* Capacity is not growing quickly enough. Carriers lack the capital (or are unwilling) to invest. Land is increasingly unavailable.

* The network, once established, is difficult to
change. For all the talk of cargo diversion from Southern California, the local population and distribution infrastructure make it the preeminent load center. You can divert the vessels, but not the business.

* In many modes, executives have never managed growth. Managers who could cut the most costs earned promotion. Many problems this year have been exacerbated by this traditional management approach.

* To some carriers, less is more. Although shrinking business to a level that can be accommodated without mishap has restored operational equilibrium, such "strategic refocusing" eliminates new business opportunities.

* We have blown through our infrastructure buffer. Excess capacity generated by deregulation has accommodated growth for the past 20 years. There is no more free growth.

* Human assets are in short supply. Extended training lead times make it difficult to add workers quickly, and some jobs cannot attract qualified candidates due to quality-of-life concerns and increased regulatory scrutiny.

* Proposed solutions are not enough. To quote a frequently used metaphor, we are rearranging the deck chairs on the Titanic. For example, some ocean carriers have started discharging intermodal cargo at Oakland - after their Southern California call. This just relocates the cargo delay from the terminal to the vessel. The day-gate surcharge (adopted to head off an even more onerous legislative mandate) is proving harder to administer than previously thought, and it is unclear how much traffic will actually change.

* Wall Street's message is ambivalent. Capacity shortages drive up rates and financial returns, whereas in the past, additional capacity has often caused rates to decline. Many carriers seem content to maximize current profitability rather than invest for the future. Customers,meanwhile, are unwilling to commit to a long-term relationship that reflects increased expense.
h
* Supply-chain acceleration isn't enough. Eventually, some asset-based carrier must transport the cargo. Logistics cannot substitute for capacity.

* We haven't really been slammed by security yet. As bad as things are now, consider what the surface freight transportation network will be like if it is ever used as a means of terrorism. The disease requires tough medicine. Unfortunately, gridlock extends to
Washington. TEA-21 reauthorization continues to languish, and most envisioned solutions are only a continuation of business as usual. Like most illnesses, the problems won't be solved by ignoring them - or by treating the symptoms. Today's peak is tomorrow's base volume. Will we be able to handle it?

This column appears by the permission of the Journal of Commerce and Theodore Prince.

Contact Ted Prince at:-

ted@oax.com.

lTrade eLC Delivery Service

"TORONTO Canada, October 7, 2004 -- GlobalTrade Corporation has announced that Siemens Financial Services GmbH (SFS) hasobalTrade
SWIFT/DTAEA Converter & eLC Delivery Service. First commercial transactions from Bank of China, Frankfurt Branch and from Misr Bank Europe have been successfully delivered electronically in German DTAEA format to the headquarters of SFS in Erlangen Germany.

SWIFT/DTAEA Converter & eLC Delivery System enables banks to convert SWIFT category 7 Documentary Credit files into German DTAEA format. The banks are able to enhance the messages by adding information to them such as the advising bank's cover letter, confirmation terms, bank charges, and contact details before transmitting the data to the beneficiary through the agreed electronic format and data channel. In turn a higher quality message is delivered from the bank to the corporate faster."

http://www.sfs.siemens.com

6. And Finally...

Many thanks to Aidrian Grainger of Aon for these:-

A number of Primary Schools were doing a project on "The Sea". Kids were asked to draw pictures, or write about their experiences. Teachers got together to compare the results, and put together some of the comments that were funny, and some that were sad. Here are some of them. The kids were all aged between 5 and 8 years.

This is a picture of an octopus. It has eight testicles. (Kelly age 6)

Whales are animals, not fish. If they don't get air they can drown, like my brother did last summer.
(David age 7)

Oysters balls are called pearls.
(James age 6)

I don't like the sea. It makes me sick on the ferry. (Peter age 6)

My goldfish died. Why?
(Katie age 5)

If you are surrounded by sea you are an Island. If you don't have sea all round you, you are in continent. (Wayne age 7)

I think sharks are ugly and mean, and have big teeth, just like Emily Richardson. She's not my friend no more. (Kylie age 6)

A dolphin breaths through an ars_hole on the top of it's head. (Billy age 8)

My uncle goes out in his boat with pots, and comes back with crabs.
(Millie age 6)

When ships had sails, they used to use the trade winds to cross the ocean. Sometimes, when the wind didn't blow, the sailors would whistle to make the wind come. My brother said they would be better off eating beans.
(William age 7)

I like mermaids. They are beautiful, and I like their shiny tails. How do mermaids get pregnant?
(Helen age 6)

I'm not going to write about the sea. My baby brother is always screaming and being sick, my Dad keeps shouting at my Mum, and my big sister has just got pregnant, so I can't think what to write.
(Amy age 6)

Some fish are dangerous. Jelly fish can sting. Electric eels can give you a shock. They have to live in caves under the sea where I think they have to plug themselves into chargers. (Christopher age 7)

My mum has fish nets, but doesn't catch any fish. (Laura age 5)

When you go swimming in the sea, it is very cold, and it makes my willy small.
(Kevin age 6)

When me and Sarah went to the sea side in the summer holidays, we hid in the sand dunes and watched my big sister doing it with her boy friend.It was fun.
(Lauren age 7)

A submarine goes under the water like a fish, but it has lots of seamen inside.
(Emma age 5)

When I grow up, I want to be captain of a big ship, and have lots of sailors
(Valerie age 6)

Divers have to be safe when they go under the water. Two divers can't go down alone, so they have to go down on each other.
(Becky age 8)

On holiday my Mum went water ski-ing. She fell off when she was going very fast. She says she won't do it again because water shot up her fanny.
(Julie age 7)

PS from Insurance Writer Adrian Leonard:-

EVENING CLASSES FOR MEN. STARTING THIS MONTH!

Note: due to the complexity and level of difficulty of the contents, each course will accept a maximum of eight participants each.

Topic 1. How to fill ice-cube trays.
Step by step with slide presentation.

Topic 2. Lavatory paper rolls: do they grow on the holders? Round-table discussion.

Topic 3: Differences between the laundry basket and the floor. Pictures and explanatory graphics.

Topic 4. The after-dinner dishes and silverware: can they levitate and fly into the kitchen sink?
Examples on video.

Topic 5. Loss of identity: losing the remote to your significant other.
Helpline and support groups.

Topic 6. Learning how to find things: starting with looking in the right place instead of turning the house upside down while screaming.
Open forum.

Topic 7. Health watch: bringing her flowers is not harmful to your health.
Graphics and audiotape.

Topic 8. Real men ask for directions when lost.
Real-life testimonials.

Topic 9. Is it genetically impossible to sit quietly as she parallel parks?
Driving simulation.

Topic 10. Learning to live: basic differences between mother and wife.
Online class and role-playing.

Topic 11. How to be the ideal shopping companion. Relaxation exercises, meditation and breathing techniques.

Topic 12. How to fight cerebral atrophy: remembering birthdays, anniversaries, other important dates and calling when you're going to be late.
Cerebral shock therapy sessions and full lobotomies offered.

CLASSES FOR WOMEN.

Women think they already know everything, but wait...training courses are now available for women on the following subjects:

1. Silence, the Final Frontier: Where No Woman Has Gone Before

2. The Undiscovered Side of Banking: Making Deposits

3. Parties: Going Without New Outfits

4. Man Management: Minor Household Chores Can Wait Till After The Game

5. Bathroom Etiquette I: Men Need Space in the Bathroom Cabinet Too

6. Bathroom Etiquette II: His Razor is His

7. Communication Skills: Getting What you Want Without Nagging

8. Driving a Car Safely: A Skill You CAN Acquire

9. Telephone Skills: How to Hang Up

10. Introduction to Parking

11. Water Retention: Fact or Fat

12. Cooking I: Bran and Tofu are Not for Human Consumption

13. Cooking II: How not to Inflict Your Diets on Other People

14. Classic Footwear: Wearing Shoes You Already Have

BOW WAVE is published each week to over 10800 Readers in the transport,insurance,shipping and finance industries.

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