NAMS held its 48th National Conference West Conference on October 11 – 13 at the Edgewater Hotel in Seattle. There were 74 paying members and a great many spouses who took great enjoyment, seeing the sights and spending money. On Sunday, the NAMSGlobal held its Board of Directors Meeting and in a 4-hours period addressed 15 issues on the Agenda and 3-4 other items which were new business.

Some of the highlights of the BoD meeting were as follows:

  • Our National Treasurer did a fantastic job in submitting a new budget. NAMSGlobal is in excellent financial shape and this time there was not even the remote hint of a dues increase.
  • We have five new members. They are listed in the “New Members Elected” below. Each of these new members was in the cargo discipline. I cannot remember the last time this occurred.
  • We also want to welcome back to Howard Held from the East Gulf.
  • And retiring from the association was Charles McCardell from the Central Pacific Region – Fair Winds and FollowingSeas.
  • After some discussion the Nomination Committee results were approved for the upcoming NAMSGlobal election. The candidates are as follows:
  • National President: Mr. Richard Frenzel and Mr. Mark Shiffer
  • National Vice-President – Mr. Greg Gant
  • There will be a minor change to the NAMSGlobal Logo. The background map is being removed. In addition, the association is requesting persons to come forward in submitting a new logo design. The concept of the new logo must incorporate those items listed in the By-Laws.
  • Full members, Apprentice members and Associate members will now all be listed in the same section of the NAMSGlobal directory.
  • The association Strategic Plan will now be presented at 2-year intervals rather than annually. The plan will be submitted at the fall meeting commencing after the election of the New National President and National Vice President.
  • The title of the International Director was changed to the International Marketing Director. Mr. Ghulam Suhrawardi currently holds this position.
  • NAMSGlobal is now allowing USCG Inspectors, Government inspectors and the like to apply for full membership, without waiting 2-years after they leave government service. These inspectors are limited to the marine inspection discipline and still require full screening by regional screening committees, testing and voting by the BoD. This comes about with the USCG implementation of Subchapter M rules and their subsequent hiring of 200+ civilian marine Hull and machinery Inspectors. In the undersigned’s humble opinion, this is long overdue and will be an excellent source for increasing NAMSGlobal membership roles.
  • Finally, the NAMSGlobal Spring meeting will be taking place in April 25-27, 2010. Janet Peck and her group are doing an outstanding job in making the arrangements. Due to the quality and the extent of planning, theCharleston, S. C. event should be one of the one of the best event that NAMSGlobal has done in years.

Last, but not least, I want to personally thank Jerry Edwards and the whole North Pacific group who put forward the effort in having an excellent event. Unless you have underwritten an event, you cannot comprehend the extent of planning that is required. Good job Jerry.

William C Hansen, NAMS-CMS, National President

From The National Office

Your 2009 CE Credits (November 1, 2008 – October 31, 2009) should be reported to the National Office before November 10, 2009. All surveyor members (CMS, Associate & Apprentice) are required to earn a minimum of six (6) credits annually.

Among your next opportunities to obtain 2009 CE Credits are the Fort Lauderdale Mariners Club seminar (Miami, FL) October 27 & 28, and the NAMSGlobal New England Region seminar (Lincoln, RI) October 30.

To submit your CE Credits, or to contact the National Office for any reason, email us at [email protected] or phone 757.638.9638.

Crossing The Bar

We are sad to report that Ryan F. Uhlich, Sr., of Kenner, Louisiana recently passed away. Mr. Uhlich, a 30 year member, joined NAMS in 1974 and retired in 2004.

NAMS Applicants, New Members, Changes In Status & Committee Assignments

New Applicants
Name Level Region Sponsor
Nasir M. Khan CMS East Gulf David Pereira
Carl F. Campbell Associate North Pacific Thomas Laing, Jay McEwen & Malcolm Munsey
Fred “Fritz” Everson Apprentice Great Lakes Kevin Bache
Members elected October 11, 2009
Certified Members
Name Discipline Region Sponsor
John Kitrilakis Cargo New York Safdar Khan
Ralph Perera Cargo West Gulf Ian Cairns
Douglas Cameron Cargo West Gulf Richard Frenzel
Nita Prigian Cargo Central Pacific Mike Doyle
Gale H. Chapman, III Cargo Western Rivers Gale H. Chapman, Jr.
Associate Members
Name Discipline Region Sponsor
Paul J. Campbell Y&SC New England Anthony Theriault, George Leonard, Kevin Harris
Apprentice Members
Name Discipline Region Sponsor
Steven DeLong Cargo East Gulf Ian Cairns
Members Change In Status
Name Region Change In Status
Howard Held, CMS East Gulf Requesting Reinstatement
Robert Ianniello, CMS New York Requesting Inactive
Charles McCardell, CMS Central Pacific Requesting Retirement (a previous ballot indicated Resigned)
Lee A. Bartkowski, CMS South Pacific Requesting Retirement effective 12/31/2009

Upcoming Educational Events

The official International Institute of Marine Surveying Course Prospectus – 2009 / 2010 – is now available for the following Diplomas:

  • Yacht & Small Craft Surveying
  • Marine Engineering Surveying
  • Marine Industry Surveying
  • Cargo Surveying

IIMS Student Membership is included in the price. Make sure you visit their excellent website at: where you can download the brochure or contact me direct and I can post or email.

Successful completion of the Diploma can lead on to a BSc(Hons) & MSc in Maritime Studies. Please contact[email protected] for more information.

AIMU Adds Distance Learning Option:
Students can now attend the AIMU advanced level classes including Advanced Hull Underwriting, Advanced Protection & Indemnity Underwriting, Advanced Cargo Underwriting, and Advance Cargo Claims without traveling to New York City! These classes are now available through live video conferencing. See for registration forms.

Suny Maritime Distance Learning Courses:
The next class will be the HULL survey class beginning on 18 November until the 20th of December of 2009.

Contact Hours: 40; Course Description: Marine Surveying – Hull: This course is designed to provide training for those contemplating entering the field of the blue/brown water hull surveying, as well as provide a means of continuing education for those already practicing as surveyors. The major goal will be to produce a medium for exchange of ideas, personal advancement and cross training for those practicing in other disciplines of the marine survey industry. At the end of training, coupled with previous practical experience, candidates will have a basic understanding of marine surveying allowing them to work within the field and sit for exams by accrediting authorities. At present there is no known program to provide a source of on-line continuing education for surveyors currently engaged in Marine Surveying Practice and at the same time provide a basic training program for those looking to develop an understanding of the Survey discipline or to obtain a better understanding of the discipline.

Module Title: 1) The Roles of Surveyors; 2) Safety & Confined Spaces; 3) Types of Surveys; 4) Regulatory; 5) Hull Inspections; 6) Basic Stability; 7) Reports, photos and writings; and 8) Exam. Upon completion, you will receive a Certificate in Marine Surveying – Hull. If you are interested in these classes you should contact: Margaret Poppiti, Administrative Assistant, Professional Education & Training, SUNY Maritime College, 6 Pennyfield Avenue, Throggs Neck, NY 10465,[email protected], (718) 409-5988

The next cargo class will also be a very important one, that of refrigerated cargo which will begin on the 5th of January 2010 and run until the 20th of February 2010.

Contact Janet Peck, NAMS-CMS at (843) 628-4340 or [email protected]

October 27 & 28, 2009

  1. LAUDERDALE MARINERS CLUB – “SMOOTH SAILING THROUGH TROUBLED WATERS”. 20th Annual Ft. LauderdaleMariners Club Marine Seminar and Golf Tournament.

October 29-30, 2009

NAMSGlobal New England Region Fall Educational Seminar, at Amica Mutual Insurance. Lincoln, Rhode Island. Dinner meeting on Thursday Oct. 29 and five technical sessions by marine professionals on Friday Oct. 30. Or more details contact Neil Rosen, NAMS-CMS at [email protected] or by phone 207-775-7933.

October 30th, 2009

NAMSGlobal Great Lakes Region will hold their annual meeting on Friday, at the Country Inn & Suites, Portage, In. (Adjacent to the Port of Indiana, I-94, Exit no. 19) Speakers lined up thus far are NICB (National Insurance Crime Bureau), Fireboy-Xintex Systems and SEA Ltd, Marine Investigative Services. One additional speaker for cargo is still being sought. A hot breakfast will be served at 0800 with the meeting starting at 0830 with opening remarks. Around 1230 a lunch of baked chicken, mostacolli, assorted salads and dessert will be included followed by round tables in the afternoon. All of this is available for the nominal fee of $55.00 for NAMS & SAMS Members and $60.00 for non-members. Rooms can be booked at the hotel for $79.00 a night, just mention NAMS when booking. The hotel no. is 219-764-0021. Additional information or to reserve a spot contact Regional V. P. Mike Sulkowski, NAMS-CMS at 312-441-6258 or [email protected]

12-13 November 2009, Qingdao, China

World Shipping (China) Summit 2009

Organized by COSCO Group, Drewry Shipping Consultants, Maritime China, & The Journal of Commerce Please for further information!

Shipping has been buffeted and battered during a terrifying twelve months of turmoil that have seen profits obliterated and fortunes lost. Now that the world economy seems to have reached the bottom, economists are again looking towards China to lead the way back to prosperity.

The industry’s top executives and analysts will gather for the World Shipping (China) Summit in Qingdao on 12-13 November to work out where the industry goes from here.

March 11-14, 2010

American Society of Appraisers is planning on giving the ME 208 Marine Equipment Appraisal course in San Francisco, California. It will be put on by the local ASA chapter. Details will be posted on the ASA website.

April 25 – 27, 2010

NAMSGlobal 48th Annual National Marine Conference East. Conference theme: In Pursuit of Excellence. Conference Chair, Janet Peck, NAMS-CMS. Location: The Embassy Suites Historic Charleston, 337 Meeting Street, Charleston, South Carolina 29403. Room rate $179.00 plus taxes per night for a 2-Room Suite.

For hotel reservations phone 843.723.6900. In order to receive the special group rates, you will need to make your room reservation by Wednesday, March 24, 2010, and identify the group and dates of the events. NAMS Group Code: NMS

September 28-30, 2010

IBEX Announces Relocation to Louisville in 2010.

Lower Exhibitor Rates and Travel Costs Cited for move to New Central Location. Professional BoatBuilder magazine (PBB) and the National Marine Manufacturers Association (NMMA), in accord with the recommendations made by the IBEX 2009 Planning Committee, have made the decision to move IBEX to the Kentucky Exposition Center, Louisville, Kentucky.

Carl Cramer, IBEX show co-director and publisher of Professional BoatBuilder magazine, explains, “Over the years, our attendees and exhibitors have expressed increasing concerns about the high costs in south Florida. Our primary duty as show producers is to keep our constituents happy, and to produce a high-quality trade show. We are confident our location in Louisville will prove to be a successful new beginning.”

The Kentucky Exposition Center is the sixth largest convention facility in the U.S., currently hosting seven of the country’s top 30 tradeshows. The facility, which was recently expanded, can easily accommodate IBEX exhibitors, attendees, and activities, as well as the new MAATS Aftermarket Pavilion, while allowing the show room for future growth.

Carl Cramer, Show Co-Director Stephen Evans, Show Co-Director
Professional BoatBuilder magazine Operations director, NMMA
T: 207-359-4651 T: 312-946-6238
F: 207-359-8920 F: 253-295-2171
E: [email protected] E:[email protected]

Letters To The Editor

In the interest of open forum and the exchange of ideas, we welcome Letters to the Editor. We reserve the right to condense and edit as needed.

Dear Editor: I am astounded that any NAMS publication would even suggest that a marine surveyor should not comment on the “seaworthiness” of a vessel. What the Hell do you think that surveyors are supposed do? In my 52 years in this business, seaworthiness has been the main focus of most survey reports. Guy Matthews, NAMS-CMS, Surveyor, Consultant and Adjuster, George West, Texas.

Summary Of Market Conditions (2009) by Capt. Joseph W. Rodgers, NAMS-CMS, ASA

There has deftly been a reduction in yacht sales in the last few years due to the recession. A number of leading yacht Brokerage firms as you know have gone out of business, or regrouped. It seems the smaller yacht sales are more affected by the fluctuation of the availability of credit funding. Discretionary spending has slowed. Boat buyers are fewer and those that are there are looking for deals. Boat builders are not building. Secondary sales are off. But sales are still occurring and must remain the benchmark of how we approach arriving at estimated fair market values. However on the larger scale yachts, I’m still seeing sales occurring especially in offshore markets.

None the less, with financing for builders and prospective purchasers of large yachts harder to attain, few vessels are being sold and fewer new builds are being ordered (2009) and some existing projects have been reassessed or dropped completely. The market is flooded with older recreational tonnage. The new economic reality has meant that project costs and used vessels have to be under tighter control and underlining contracts more evenly balanced.

Many leading figures in the large yacht marine industry remain reluctant to acknowledge the effects of the current global economic downturn on the yet and many are still claiming that the industry continues to be recession proof. There are, of course, plenty of long-term backorders still in the pipeline, and many yacht sales are still being conducted, however this has been increasingly shrinking compared with the last year(s).

The recession has hit the large yacht industry deeply. Super yachts are often one of the very first things to go in such downturns. 2008/2009 many yachts contracts and sales were off or completely down. Yacht crews were being laid off or having to renegotiate their seasonal contracts and people building new yachts are wishing they hadn’t started.

The large yacht charter market has been very heavily hit and charter rates are coming down quite substantially. However, the market still survives and it will survive in a different form to what was in the past. A lot of yachts have laid off crew during the winter time and a lot of yachts have downscaled crew numbers and for the first time in a very long time crewmembers are exceptionally happy just to have a job. There are a good number of crewmembers on the market looking for jobs. Crew salary levels have stabilized. Salaries for crew have not gone down much but they’re not going up in the near future either.

There is still much uncertainty in the large yacht market. As prospective purchasers, charterers and boat owners do not know exactly where they stand financially and right now they’re not quite sure where they stand at all.

The market may have bottomed out for yachts but maybe not, and 50 to 60% of former asking prices (2008) show the market indicators as down especially when these yachts are not selling readily. Many large yacht builders are proceeding with great caution and prudence hoping that things will slightly improved at the end of this coming year.

One of the very interesting things about this recession is that boat builders and yacht brokers are now much more willing to listen to prospective clients. Many questions as to what is a real charter rate or the real value of the yachts on the market are being asked.

Before the recession they were oftentimes just come up with a price and stick to it. Today the market is seeing that the cost of the vessel is not necessarily what its value is on the open and competitive market.

Before the downturn many buyers only cared about getting what they wanted. It didn’t much matter what they paid for it. Now many of these players have been taken by surprise and are no longer throwing caution to the wind. They are much more careful in how they spend their money. There has also been a shift away from fast yachts towards displacement yachts which could be linked to the higher oil prices from last year.

What’s happening in the world economic picture is causing the yacht market (builders and buyers) to be ever prudent. It is hard to make predictions for the future. But it is still interesting to look at the order book (for 2009).

Yacht builder Benetti has some 11 + over 40 m yachts ordered for completion in 2010/11 other companies such as Perini, Admiral, Inrizzardi Group report the same. Some builders and yacht brokers are reporting that 2009 will be a good year despite the crisis and are full steam ahead with contracts for new building and used yacht sales. But this may be misleading for the future. One must wait to see the bigger picture.

Italy remains the largest percentage of new boat projects for 2009 at 54% plus of the market share. Compare this to 11% in the United States and 2% from the Turkish boat building community.

But on the other side of the coin, the world continues to amaze the imagination and the wealth section of the population continue with their obsessions.

Take, for example, the recently completed (2007) replica of the legendary John Pierpoint Morgan banking family yacht Corsair- the 296’ Nero from Corsair yachts and delivered to her owners in 2008 (at the start of the current recession). The vessel is a replica of the fourth Corsair, which was launched in 1930 and was largest private yacht ever built in America. At that time she cost $2.5 million to build in the depression era dollar. Constructed at the Bath Iron Works in Maine she was a steel hull, turboelectric powered motor yacht and is responsible for that famous quote uttered quote “Sir if you have to ask the price, you cannot afford it”. She was used as a family boat for over 10 years, spending most of her time on the US East Coast and the Caribbean waters. At the beginning of World War II, she was given to the British Royal Navy. After the war she was acquired by Pacific Cruise Lines and converted to a cruise ship. She met her demise in 1949 when she hit a rock near Acapulco, Mexico and sank.

The big question is, who in their right mind would build a replica era gentleman’s yacht? The project was more of an obsession than a practicality. A study in nostalgia, a nod to the grand ocean yachts of old. These types of vessels take from the golden age of yachting, with their swept sheer, clipper bows and extended bow sprits. Yet when it comes to modern technology, Nero, as well as its smaller sister Vajoliroja, are fully equipped to the highest standards in navigation and safety.

About The Author: Captain Joseph W. Rodgers CMS ASA

Capt. Joseph W. Rodgers stems from a long line of maritime professionals. He is a licensed U.S. Coast Guard merchant marine officer, who in the past has worked on ships and yachts of all s. “Capt. Jo” is also an active sailor and ocean world adventurer who has sailed ‘Where few have gone before’ and has recently crewed a sailboat through the South Pacific to Australia following in the footsteps of Capt. Cook. He is a senior member of the American Society of Appraisers, Machinery and Equipment section specializing in Technical Valuation of yachts and ships. He is also a Certified Marine Surveyor, member of the National Association of Marine Surveyors, and is one of the regional vice presidents of that organization.

His over 30 years experience has given him some insights that may be of interest to all appraisers and especially those that love the sea. From 1978 to present Captain Rodgers has been professionally involved as a marine surveyor for international and domestic insurance companies, financial institutions, yacht brokers, law firms, corporations, individuals and insurance companies representing American and London Institute of Marine Underwriters. Appointed by Geary Associates Marine Surveyors to the Underwriters at Lloyds he provides surveys on cargo/ships/passenger ferries, charter fleets and private vessels.

Capt. Rodgers has surveyed vessels, both commercial and private, power and sail, of all s, types and construction, including yachts, passenger ferries, research crafts, cargo ships, commercial fishing boats and small tankers.

USCG Marine Safety Alert September 17, 2008 Alert 5-08 – Preventing Engine Exhaust System Fires

This Safety Alert addresses the issue of preventing unwanted fires caused by high temperature components associated with turbochargers and engine exhaust systems in close proximity to combustible ship structures.

Two recent marine casualties involving inspected passenger vessels resulted in personnel injury, fire damage to machinery and ship structures, operational down time and lost revenues. In both cases, the vessels were recently re-powered with new turbocharged engines having exhaust systems designed to operate at higher temperatures than the previous engines. Investigations into each case identified common discrepancies as follows:

  • Failure to properly insulate or shield combustible ship structures from engine exhaust systems in accordance with 46 CFR §182.430.
  • Failure to properly submit documentation for plan review, which may have identified failures to comply with 46 CFR regulations.

As a result of these recent incidents and due to other related casualties involving small passenger vessels, the U. S. Coast Guard strongly recommends vessel owners and operators to:

Inspect vessel engine exhaust systems, machinery spaces, and exhaust compartments to verify that lagging and insulation are properly installed to shield hot surfaces and combustible materials. Proper insulation and shielding methods will help to prevent fires due to flammable and combustible liquids spraying onto hot surfaces (i.e. turbochargers, exhaust piping) and will prevent combustible surfaces (i.e. wood, fiberglass, FRP) from heating up to ignition temperatures due to close proximity to hot surfaces. Pay particular attention to areas where exhaust systems penetrate bulkheads and decks, making sure that combustible surfaces are properly shielded and/or insulated using non-combustible materials. Ensure that proper submittals for plan review are made and documented with the local U.S. Coast Guard Sector Office of Prevention. Plan reviews are required whenever engines and/or propulsion systems are changed or modified. This includes re-engine projects where engines are not replaced in-kind, but with different types of engines or engine manufacturers.

This safety alert is provided for informational purposes only and does not relieve any domestic or international safety, operational or material requirement. Developed by the District 11 Prevention Division and distributed by the Office of Investigations and Analysis, United States Coast Guard Headquarters, Washington, DC. Office of Investigations and Analysis: To subscribe: [email protected]

USCG Marine Safety Alert, May 9, 2008 Alert 1-08 – Maintain Vessel Watertight Integrity

This Safety Alert addresses two issues: watertight integrity and high level bilge alarms.

Recently a marine casualty involving a fishing vessel in the Bering Sea resulted in multiple fatalities and complete loss of the vessel. A Marine Board of Investigation is currently examining the various circumstances surrounding the casualty. Although the investigation is not complete, testimony indicates the flooding of the vessel may have been exacerbated due to open or leaking watertight doors and other compartmental deficiencies which impacted the vessel’s overall watertight integrity.

As a result of this and other similar casualties, the U. S. Coast Guard strongly recommends vessel owners and operators:

Watertight Integrity

  • Ensure all watertight decks and bulkheads are inspected periodically to verify that there are no unprotected openings or improper penetrations that will allow progressive flooding and that closure devices (e.g. watertight doors, duct closures, etc.) are in place and in working order.

Ensure all crewmembers are familiar with the locations of the watertight doors (WTDs) and weather tight closures throughout their vessels. Knowing the locations of such WTDs and weather tight closures should be part of the crewmember vessel familiarization process.

  • Ensure WTDs and hatches are closed while at sea and as otherwise specified in the stability guidance provided to the master or individual in charge. The importance of keeping WTDs and hatches closed should be emphad on a regular basis (e.g. at safety meetings). WTDs and hatches should be opened only briefly to allow passage and labeled appropriately to remind crewmembers to close them. If they must remain open to permit work, WTDs and hatches should be attended at all times so that they can immediately be closed. Any WTDs permitted to be open while the vessel is underway should be secured during drills to ensure they work properly.

Implement a WTD inspection program to ensure each WTD is regularly inspected and properly maintained. As part of the inspection of each WTD, the following should be examined: straightness of the knife edge; the door assembly for twisting or warp-age; evidence of loose, missing seized or damaged components; permanent set in gasket material, cracks in the gasket; gaps at gasket joints; paint, rust, or other foreign material on gaskets, knife-edges and working parts; binding and difficult operations; and loose or excessively tight dogs. Rotating spindles of the dog, handles and hinges, and other points of friction should be lubricated to prevent seizing and allow proper closure. If fitted, the spindle packing should also be examined.

  • Ensure watertight hatches, dogged manholes, bolted manhole covers, and access plates are given similar examinations, focusing on the sealing surfaces and the method by which the hatch is secured. Gasket materials should be replaced whenever they are found insufficient. Regardless of the type of hatch or access, every component that secures the device, such as dogs, wing nuts, or bolts should be inspected, lubricated and free, and repaired or replaced as necessary to ensure they operate properly. As with watertight doors, hatches and accesses should be labeled to indicate they remain closed while underway. Most importantly, all securing devices must be used when the hatch or access is closed. Improper closure of a hatch will not prevent flooding.
  • Ensure compartments and external hull structures fitted with ventilation ducts that have hinged covers with gaskets, hinges, sealing surfaces and securing mechanisms are regularly inspected and properly maintained (see above for guidance).
  • Ensure electrical cables and conduits, piping runs, remote valve actuators, and other components that penetrate watertight bulkheads, decks, and compartments are inspected frequently and properly maintained. Each may have a unique sealing method involving glands with packing assemblies, penetration seals, or other methods. Frequent inspection and proper maintenance of these various fittings and assemblies will assist in minimizing the possibility of progressive flooding.

Bilge And High Water Alarms

  • Ensure water accumulation is minimized and all spaces are kept dry unless permitted by the stability instructions provided to the master or individual in charge.
  • Ensure bilge high level alarms are arranged to provide the earliest warnings of abnormal accumulation. The high level bilge alarms should be set as low as possible to the deck or bilge well and positioned along the centermost area of the compartment or in a location at which the fluids will gravitate to first. In areas where bilge water routinely accumulates, the bilge high level alarms should be placed just above the point where under normal working conditions the accumulation would be pumped to a holding tank, overboard, or through an oily water separation system if required. Alarms may be fitted with short time delays to prevent nuisance alarms caused by the rolling and pitching of the vessel.
  • Ensure all crewmembers understand the importance of minimizing water in the bilges.

Provide the funding, labor, spare parts, and vessel availability necessary to ensure leakages stemming from machinery, equipment and other components are kept to a minimum at all times in accordance with good marine practice.

This safety alert is provided for informational purposes only and does not relieve any domestic or international safety, operational or material requirement. Developed by the District 11 Prevention Division and distributed by the Office of Investigations and Analysis, United States Coast Guard Headquarters, Washington, DC. Office of Investigations and Analysis: To subscribe: [email protected]

USCG Marine Safety Alert September 17, 2009 Alert 07-09

Drug Testing Requirements For Charter Vessels (46 CFR Parts 4 & 16, 49 CFR Part 40, 33 CFR Part 95

The U. S. Coast Guard is strongly reminding the Charter Vessel Industry of their duties and obligations to meet federal drug testing regulations. Requirements for marine employers to have drug testing programs have been in effect since November 21, 1988. These requirements are applicable to all US flagged vessels in commercial service, regardless of vessel or capacities, including what are commonly known as Six Pack Charter Vessels.

The rule requires chemical testing of all crewmembers working in safety-sensitive positions whether or not those crewmembers possess merchant mariner credentials. The consequences for failing to comply with these requirements can be substantial and may involve the loss of a license or document, loss of a vessel or civil penalties at a rate of $5,500 per day per violation.

The rule applies to all commercial service vessels required to be operated by a US Coast Guard issued licensed individual, onboard any US flagged inspected and uninspected vessel on any route, commercial fishing vessels 200 GT or greater, and towing vessels 26 feet in length or longer. All crewmembers responsible for the safe operation and navigation of the vessel or those responsible for the safe handling of passengers in the event of an emergency must be tested.

Pre-employment drug testing is required prior to a person being placed in a safety sensitive position. Crewmembers are also subject to random drug testing at a minimum rate of 50% annually. Drug testing must also take place following a Serious Marine Incident. In these cases, anyone involved with the incident must be tested for evidence of drug and alcohol use. Additionally, testing may take place when a supervisor has reasonable cause of drug and alcohol use. Drug testing may also occur periodically when a USCG credentialed individual submits an original merchant mariner credential application, a reissuance, upgrade or endorsement. Please see the following attachment for additional basic information.

Detailed information about the Coast Guard’s Drug and Alcohol Program and responsibilities of marine employers is available online and may be accessed at Drug and Alcohol Program. Questions regarding testing requirements may be directed to your Coast Guard District Drug and Alcohol Program Inspector or the Headquarters Drug and Alcohol Program Manager, Mr. Robert Schoening at 202.372.1033 or[email protected].

This safety alert is provided for informational purposes only and does not relieve any domestic or international safety, operational or material requirement. Developed by the Office of Investigations and Analysis, United States Coast Guard Headquarters, Washington, DC.

Rotterdam Rules

International law on the carriage of cargo is finally entering the global, digital, containerized age with the Rotterdam Rules. But there are bound to be one or two unresolved issues along the supply chain. HAMBURG, Hague and Visby — sounding like a fusty maritime law practice — are to be overtaken by an untried set of 96 articles intended to reshape the carriage of goods liability regime for two generations. Much has been written, and will be in the decades to come, about the Rotterdam Rules, which still labor under the ponderous title of the Convention for the International Carriage of Goods Wholly or Partly by Sea. The Rotterdam Rules are designed for a door-to-door, globalised, digitized trading environment where maritime transport no longer stands alone, port to port, but is part of a multimodal supply chain. On September 23, in a fanfare event at the Dutch port, the book containing the eponymous rules was signed by an estimated 15 nations, including the US. More than a decade after a much narrower convention was initially conceived as a response to e-commerce, the expanded Rotterdam Rules are inching towards full ratification and thus the maritime law hall of fame. But why do we need the Rotterdam Rules, and why are European shippers and freight forwarders so viscerally opposed to a convention that strives to meet the legal challenges of door-to-door cargo transported in this internet age? Realistically, it will take at least a decade or more of individual rulings in various jurisdictions before the Rotterdam Rules settle down as a tried and trusted regime for liability in the maritime supply chain. (Lloyd’s List, 8/27/2009.) Courtesy AIMU Weekly Bulletin.

New Rotterdam Rules Guide

With the Rotterdam Rules on the horizon, the law firm Hill Dickinson has updated their Cargo Conventions Guide. This is a short overview of the main conventions, including the Hague, Hague-Visby, Hamburg and now Rotterdam Rules.

The Rotterdam Rules–the United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea– are not yet in force but the recent signing ceremony in September 2009 has made them a hot topic. It remains to be seen how soon the Rules will be put into practice, with 20 signatories first required and then a period of 12 months must elapse before the Rules enter into force. Which countries sign up and how many overall will also no doubt determine the impact of the Rules. Guide 1 – Cargo conventions.pdf

Courtesy Maritime Advocate Online a weekly digest of news and views on the maritime industries, with particular reference to dispute resolution. To contact the editor Bevis Marks, send an e-mail to: [email protected]

Commandant Calls For Tougher Commercial Fishing Safety Regulations

Aug, 20-2009 By Claire Lpwe, staff writer at Shore News Today

CAPE MAY—The United States Coast Guard Commandant Adm. Thad Allen met with local reporters on Friday, Aug. 14 to discuss the current safety regulations placed on commercial fishing vessels like those that harbor in Cape May and what is being done to improve them.

Maritime safety is one of the five fundamental roles served by the Coast Guard. The National Oceanic and Atmospheric Administration under the Department of Commerce regulates most of the offshore fishing industry, however the Coast Guard is a cooperating agency that has the authority to prescribe and enforce regulations affecting the safety and health of fishermen on inspected vessels, according to a Nov. 8, 1996 United States Department of Labor directive.

Allen said that there are a number of requirements imposed on larger vessels that do not apply to the commercial fishing industry, especially for the vessels under 300 gross tons.

Allen talked about three specific areas, crew competency and training, stability of the vessels and inspection as a condition of operation, where there needs to be more stringent regulations for commercial vessels.

As a member of the International Maritime Organization, the United States has a responsibility to enforce regulations enacted by the organization, such as the mandatory requirement for Long Range Identification and Tracking (LRIT) for ships of 300 gross tons and above. Automatic Identification Systems (AIS) are also required. But most commercial fishing vessels are exempt from these IMO regulations.

There are federal safety regulations in place, which can be found in the Commercial Fishing Safety Digest (2008), for commercial fishing vessels. These regulations require vessels to have personal flotation devices, such as a specific type of immersion suit depending on the length on the vessels, where they must be stored and how many are required. Other safety requirements are ring life buoys with proper markings, retro reflective material and lifelines for vessels over 16 feet long; specific type of survival crafts and servicing requirements depending on vessel; placement of safety materials such as signs for use of safety equipment and escape routes; visual distress signals like parachute flares and smoke signals; Emergency Position Indicating Radio Beacon requirements like placement and registration.

Unfortunately, due to the fact that there is not a mandatory safety inspection for most fishing vessels, there are safety requirements that may be ignored by crewmembers. Allen noted that there is a significant amount of technology out there in use for tracking ships and transmitting distress calls. “What we don’t have is mandatory carriage requirements,” he said.

In regard to the sinking of the scallop boat Lady Mary in March, Allen would not comment on the case, but said that basically, all over the country, fishing vessel safety is a looming concern.

He said that so many vessels are reconfigured to go from one task to another, like from clamming to scalloping, and are not required to be inspected after such a reconfiguration. For vessels under 79 feet, Allen said, there is no stability requirement.

There is a voluntary program offered through the Coast Guard where a boat owner may partake in a free dockside examination to check that the boat complies with all safety regulations.

“A safety inspection should be a requirement,” Allen said. Allen also said that having a float plan is always good. “The more information you got, the better,” he said. The float plan would consist of: I’m going to leave here, I’m going for this activity, I should be back by this time, and a list of who is on board the vessel. However, there is no regulatory requirement for it.

“We encourage and have encouraged for years, that everybody submit a float plan,” Allen said, which can be done at the nearest dock.

Allen estimated 20 to 30 million commercial fishing vessels in the United States that could be regulated, which he said would be enormously expensive. “Fishing vessel regulations will probably require some resources,” he said.

Right now there is legislation proposed that would regulate inspections of tugboats. Allen has also met with Congress to discuss the implementation of safety regulations in future legislation.

Allen had also attended a graduation ceremony for recruits at the training center.

Claire Lowe can be e-mailed at [email protected]

Supply Chain Point To Better Cargo Volumes

Industry researchers focused on two separate links of the global supply chain — freight forwarding and container leasing — point to tentative signs of improving cargo volumes. Danske Bank’s European freight forwarding index showed a “significant pick-up” in expectations among its 128 respondents surveyed in August, with 59% of participants expecting freight volumes to improve over the coming two months. Container lessor SeaAxis, in its macro report, stated that the latest signs pointed to a V-shaped global recovery — “not V for vigorous, but V for vulnerable” — with Asia leading the rebound while European economies lag behind. Danske Bank equity analyst for transportation Johannes Moller said: “Many participants mention that they see more customers restocking inventories now as the demand situation is more stable. For the current situation the index is still around 50 as volumes have been weak during the summer. “The pick-up in optimism is very significant and we see it as a clear indication that the macroeconomic environment is improving across Europe.. (Lloyd’s List, 9/2/2009.) Courtesy AIMU Weekly Bulletin.

Rise In 2008 Recreational Boating Fatalities

The U.S. Coast Guard announced the publication of the 2008 boating safety statistics, reporting a rise in recreational boating fatalities. The fatality rate, a measure of the number of deaths against the number of registered recreational boats, increased from 5.3 in 2007 to 5.6 deaths per 100,000 registered recreational boats in 2008. During this time, the Coast Guard recorded 709 deaths, 3,331 injuries and approximately $54 million dollars in damage to property, stemming from 4,789 recreational boating accidents. Operator inattention, careless or reckless operation, no proper lookout, operator inexperience and passenger or skier behavior rank as the top five contributing factors to recreational boating accidents. Alcohol consumption continues to be of major concern in fatal boating accidents and is listed as the leading contributing factor in 17 percent of the deaths. To view the 2008 recreational boating safety statistics, go to: (U.S. Coast Guard, News Release, 8/12/2009.) Courtesy AIMU Weekly Bulletin.

Owners Warned Against Do-it-yourself Repairs

Ship owners are risking machinery failure and damage as they attempt to cut costs by having crew carry out repairs on shipboard machinery. Paul Friedberg, president of engine maintenance and repair specialist Goltens Worldwide Services, told Lloyd’s List that one effect of falling revenues was that ship owners were resorting to do-it-yourself repairs to cut costs. Mr. Friedberg said that he had seen an increasing number of instances in which owners are buying spare parts for shipboard machinery, but asking crews to carry out the installation instead of specialist engineers from engine or component manufacturers or other skilled contractors. He said that while some ships’ crews had the skills to carry out such jobs, the sophistication of modern vessels’ machinery and control systems and the smaller crews onboard most ships meant that relying on shipboard engineers to carry out major repairs posed risks of machinery failure. Mr. Friedberg said urgent action was required to address the looming shortage of drydocking facilities worldwide as the global fleet expands. (Lloyd’s List, 8/21/2009.) Courtesy AIMU Weekly Bulletin.

USA Response To IUMI’s Loss Prevention Committee Questionnaire

1) What has been the main source of high frequency attritional losses for your market?

  • Cargo: Improper handling damage
  • Hull: Jones Act P&I injury claims.
  • Theft and non-delivery of cargo
  • Water damage
  • Refrigeration claims
  • Collision and overturns of conveyances
  • Pharmaceutical theft
  • Liquor theft

2) What measures have been taken to reduce such losses?

  • Focus on Operational and packaging reviews on more shipments.
  • Working with policyholders to evaluate existing management controls and best practice for addressing significant exposures illuminated by claims frequency issues.
  • Requiring higher levels of liability from their carriers so that a commensurate level of risk-sharing exists between the shipper and the carrier (transportation provider).
  • In the hull area focus is to work towards improving safe management particularly in the area of crew training and supervision, and preventative maintenance programs.
  • Water damage- careful inspection of marine containers and a “light” test (simply going inside a container, closing the doors and looking for any light shining into the container.
  • Spoilage- shippers should use validated shipping cartons or “passive” systems (depending on packaging, insulation and a phase change material such as gel pack or dry ice) to maintain temperature or an active system such as a refrigerated container or trailer. Reefer units should be checked much the same as conventional dry containers; however, the refrigeration unit has also to be proven operational.
  • Shippers using the air mode can now take advantage of compressor-driven containers that have been approved by the Federal Aviation Administration as well as its EU counterpart. These units are effective in protecting smaller quantities and/or rush shipments of perishables from both high and low temperatures.
  • Additionally, the American Institute of Marine Underwriters (AIMU) as been active in educational outreach with recent discussions dealing with Condensation, causes, effects and prevention, as well as Container Stowage to include cargo packing, loading components along with the securing on board vessels.

3) What have been the 5 largest losses for your market in each of the following classes, hull, cargo, other?

  • There have been a number of significant thefts involving full truck load shipments of pharmaceuticals, several of which were in the 8-figure range. The manufacturers not only have to deal with the physical loss of their product but now may face product liability and/or reputational risks. We are also experiencing damage to machinery shipments that represent large physical damage component but a larger negative impact on the importer since they are likely to lose productivity. Casualties have taken place during handling and ocean crossings but also on the inland portion of the transit incidental to the marine leg.
  Cargo Losses Paid
Outstanding ($) Share(%) Comments
1 Pharmaceutical shipment damaged and contaminated during loading   9,000,000 100  
2 Heavy Weather 2,300,000   100 Pharma
3 Theft 970,000   100 Oil field equipment
4 Temperature abuse 300,000 650,000 40 Pharma
5 Grounding 930,000 5,000 100 Oil & gas
6 Stock loss- temp   500,000 20 Poultry
7 30 Pharmaceutical theft 30M   50  
8 5M Pharmaceutical theft 5M 50    
9 500,000 Liquor theft     100  
10 Warehouse theft 4.1mm     Foreign Warehouse
11 Warehouse fire 3.0mm     Refrigerated W/H in US
12 Fire 2.85mm     Foreign processing location
13 Fire 2.6mm     Vessel fire
14 Hurricane Ike 1.6mm     Plastic pellets water damage
  Hull Losses        
1 Struck submerged object 1,000,000 1,600,000 12.5 Blue water
2 Hurricane Ike grounding 1,300,000 25,000 100 Brown water
3 Struck gantry crane 1,100,000 30,000 5 Blue water
4 Fire explosion 1,130,000   4.16 Blue water
5 Fire 935,000 114,000 100 Blue water
6 Builders Risk 2M   50  
  Other Losses        
1 Pollution 1.2M   100  

4) Have any measures been taken to prevent re-occurrence of such large losses?

  • Improve information quality of claims information. This helps to focus loss prevention efforts on problem areas based comprehensive information drilled down to specific accounts, regions, commodities and loss details.
  • Security procedures receive constant scrutiny with regard to Inland truck transit in order to more effectively manage the theft exposure related to specific target goods.
  • Continued use of loss control to evaluate operations, supply chain management and specific controls in place to effectively address packing, preservation and security of cargo shipments particularly where high value, and particularly susceptibilities are presented.
  • Actively evaluate Warehouse exposures through routine inspections focused on fire protection measures, security exposures and inventory management procedures.
  • Cargo Theft still plagues the United States.
  • Shippers continue to tender cargo to transportation companies either late in the day or on a Friday requiring delivery the next day or on a Monday without giving thought as to where their cargo will be placed overnight or over the weekend. Trucking companies and their employees are still making bad decisions on where to park their vehicles.
  • The hoped for federal law enforcement intervention, namely the inclusion of cargo theft into the Uniform Crime Report (UCR) now appears years away from fruition. One encouraging development is the Cargo Recovery Network, an Insurance Services Office led-program in cooperation with the National Insurance Crime Bureau (NICB). Already both the American Institute of Marine Underwriters and the Inland Marine Underwriters Association and several insurers are supporting it.
  • Shippers understand the seasonal weather patterns along the intended voyage routing.
  • Shippers understand the importance of the selection of an ocean carriers since some specialize in transporting overd, overweight pieces.
  • Shippers understand the need for protective packaging and marks that provide meaningful information/guidance to both cargo handlers and transportation personnel.
  • Shippers understand the need to provide special handling instructions to all relevant parties along the supply chain.
  • Shippers understand stowage position on a vessel and how this can affect the sound outturn of their cargo.
  • Shippers understand the prudence of opting for direct shipments, when practical, eschewing transfers and transshipments that add time and extra handling.
  • Shippers understand the need to ensure that suitable handling equipment and expertise will be available at the port of loading, the port of discharge and final destination.
  • Shippers understand the positive role a qualified marine surveyor can play in the successful vessel loading and discharge operations.
  • Higher deductibles

Courtesy AIMU Weekly Bulletin.

Masters And Officers ‘Not Fit

Europe’s port state control regime is being urged to wake up to the problem of incompetent masters and officers hiding behind illegitimate papers after a spate of cases that a top inspector has described as a disgrace to shipping. The alert is being sounded by Cyprus, which in the course of detaining four vessels in the past few days has found that virtually none of the officers aboard was fit for their jobs. “Most could hardly speak a word of English, and the majority had no more than an elementary education,” said the country’s senior surveyor Andreas Constantinou, after Lloyd’s List learned of the rash of discoveries. Cypriot inspectors were stunned to find that 15 of the 16 officers on board the four ships were incompetent to perform their duties, including each of the masters. The sole officer found to be properly certificated was one of the chief officers, who was carrying bona fide Egyptian papers. Most of the others were holding certificates of competency and training issued by North Korea. The four cargo ships caught in Cypriot ports were all more than 30 years old and ranged between 1,521 dwt and 3,145 dwt. “One may argue that these seafarers are unlikely to be entrusted with the command of a fully laden VLCC [very large crude carrier],” said Capt Constantinou. “They may, however, hit one,” he added. He said: “These findings are disgraceful for our industry.” (Lloyd’s List, 9/22/2009.) Courtesy AIMU Weekly Bulletin.

Rules Offered On Ships’ Ballast Water:

Coast Guard Aims to Halt Spread of Invasive Aquatic Species by Kari Lydersen, Washington Post Staff Writer, Sunday, August 30, 2009.

The Coast Guard issued proposed standards for ballast water treatment Thursday that had been long awaited by environmental groups, legislators and others concerned about the impact of invasive aquatic species transported via ballast water in ships.

There currently is no federal requirement to treat ballast water in order to kill living organisms. Oceangoing vessels must exchange their ballast or flush out their tanks in the open seas before entering a U.S. port, but the tanks might still contain species from distant waters.

The proposed Coast Guard regulations, open for a 90-day public comment period, would mimic the International Maritime Organization’s standards for an initial phase and then become essentially 1,000 times stricter for a second phase, as measured in numbers of live organisms per cubic meter of ballast water. California has a standard 1,000 times stricter than the IMO, as does New York for new vessels launching in 2013.

But Coast Guard and industry officials said it was not clear whether it would be technologically possible to meet the stricter standards. The regulations, published in the Federal Register on Friday, include feasibility studies and the chance to revise the standards. “That loophole could swallow the law,” said Andy Buchsbaum, director of the Great Lakes office of the National Wildlife Federation.

Environmental groups are also disappointed in the Coast Guard’s timetable. Ships would have to meet Phase 1 requirements between 2014 and 2016, depending on a vessel’s , and might not be subject to Phase 2 standards for another five years.

But Coast Guard Lt. Cmdr. Christopher T. O’Neil said the need to develop not only ballast treatment technology but also systems to test that technology is a slow process. “Currently, there isn’t enough capacity in labs to determine that discharged ballast water would meet those stringent Phase 2 standards,” he said. “You’re developing a lot of moving pieces at the same time.”

The shipping industry and environmental groups have long sought federal ballast requirements. Currently, 11 coastal and Great Lakes states have their own ballast standards on the books or in the works, according to O’Neil. The IMO standard, established in 2004, is widely used as a benchmark though many environmentalists and legislators consider it too lenient. The Coast Guard’s regulations would not preempt state standards.

Meanwhile, the Environmental Protection Agency is formulating its ballast treatment requirements. It is not clear exactly how this would overlap with the Coast Guard’s mandate. But Coast Guard Cmdr. Gary T. Croot, chief of the environmental standards division, said the two agencies have worked closely together and are likely to end up with very similar © 2009 The Washington Post Company.

Useful Links Transported Asset Protection Association (TAPA) is a unique forum that unites global manufacturers, logistics providers, freight carriers, law enforcement agencies, and other stakeholders with the common aim of reducing losses from international supply chains.

For those surveyors who assist their clients with temporary repairs of hatch covers, etc, check out this product:

For those surveyors who desire Self-Study Courses, check out the National Cargo Bureau who offers several at their website:

US EPA Chain of Custody On-Line Class: This approximately 50-minute, self-instructional course introduces you to what chain of custody is, why it is relevant to environmental professionals, and how to correctly perform chain-of-custody procedures for samples and data. The model chain-of-custody procedure, presented in the final lesson, allows you to track the movement of samples and chain-of-custody forms from start to finish as they exchange

For the past few years, JMS Naval Architects and Salvage Engineers has been a strong supporter of a very unique and exciting maritime initiative that we thought would be of interest to the greater maritime community: the Ocean Technology Foundation’s “Bonhomme Richard Project.” The Bonhomme Richard was a Revolutionary War ship commanded by John Paul Jones and which sank in 1779 off the coast of England. It was from the deck of the Bonhomme Richard that Jones shouted his famous words: “I have not yet begun to fight!” The OTF is spearheading the search for this important piece of maritime history. For more information, and to support this re-discovery effort, please

On August 4, 2009 the sailing vessel “Kaisei” departed San Francisco en route to the North Pacific Gyre. This vessel together with the “New Horizon” will study the accumulation of plastic waste brought together by the ocean currents and will assess methods of removing the waste. Details available here: and also at the project’s own website here:

Courtesy Bow Wave–the marine and transport e-zine. BOW WAVE is published each week to over 15 000 Readers in the transport, insurance, shipping and finance industries. To subscribe contact Sam Ignarski [email protected].