WEEK 25 MARKET UPDATE

CREWS EVACUATED FROM TWO SHIPS HIT BY THE HOUTHIS  

The crews of two vessels struck by the Houthis in recent days were forced to evacuate ship over the weekend with the Yemeni militants showing no let-up in their attacks on merchant shipping. Both ships are reportedly at risk of sinking. The Houthis have displayed greater sophistication in their attacks on merchant shipping this past week, hitting targets both by sea and air for the first time. Another attack on Thursday on the Verbena, a general cargo ship owned by Ukraine-based Donbass transit service, saw three projectiles hit the ship, creating a severe blaze onboard with nearby US military personnel medevacing one seriously injured seafarer to hospital. All crew on both ships were evacuated on Saturday with images from both sites showing the vessels were severely damaged. Salvors have been sent to try and save the Tutor while the fate of the Verbena remains unknown. The Houthis claimed to have targeted a number of other vessels over the weekend. Commenting on the escalation, Arsenio Dominguez, the secretary-general of the International Maritime Organization (IMO), said: “I’m appalled at the fact that seafarers going about their work continue to be targeted and injured.” Dominguez reiterated his urgent call to find a solution to the ongoing Red Sea shipping crisis which has seen more than 100 vessels targeted by the Houthis since last November. “This situation simply cannot go on. Everybody is going to feel the negative effect if international shipping is not able to trade as normal,” the IMO head said. 

SAMSUNG ELECTRONICS AMERICA FIRES D&D CLAIMS AT CARRIERS  

Samsung Electronics America (SEA), an importer of electronic goods into the US, has launched a salvo of lawsuits against multiple carriers alleging that shipping lines were selling door-to-door delivery services that they could not complete.Last week Alphaliner reported on the latest claim by SEA at the Federal Maritime Commission (FMC) aimed at the South Korean line HMM, which allegedly levied 96,000 detention and demurrage (D&D) charges in error during the pandemic. The HMM claim is the latest in a string of similar claims against carriers in the Pacific trades, including COSCO and its subsidiary, OOCL, Zim and SM Line. In its latest action Alphaliner said the shipper: “Alleges that from mid-2020 HMM began ‘repeatedly and chronically failing to maintain just and reasonable practices in connection with its inland  transportation obligations’.” In the filing to the FMC, SEA lists eleven “unreasonable actions” that HMM had taken during the period in question that had resulted in excessive D&D charges, which Alphaliner says could run into the millions of dollars.

UNION VOTING ON WHETHER TO EXTEND STRIKE THREAT BY CN, CPKC RAIL WORKERS 

The union representing more than 9,000 CN and CPKC workers has organized a second-strike vote amid stalled contract negotiations with the railroads. “It is clear we cannot rely on a timely conclusion to these unfortunate circumstances and must protect our rights regardless of outcome,” the Teamsters Canada Rail Conference (TCRC) said in a news release. On May 1, CN and CPKC rail workers voted to authorize a strike that could have begun on May 22. Canadian Labor Minister Seamus O’Regan referred the rail worker dispute to the Canada Industrial Relations Board (CIRB) on May 13, indefinitely pausing any possible work stoppage until the CIRB issues a decision on the potential impacts a strike could have on the country’s safety. TCRC’s second strike vote began Friday and will end on June 29, as the current strike mandate is set to expire on June 30. Canadian labor laws prohibit unions from declaring a strike unless its members have approved walking off the job in the previous 60 days. CPKC and CN rail workers — including conductors, engineers, yard workers and traffic controllers — are seeking higher wages, as well as concessions in crew scheduling, hours of work and fatigue management.  

NEW MARITIME CYBER SECURITY ORGANISATION LAUNCHED  

The launch of IMSCO comes at a time of growing concern over cyber security in shipping, both as ship-to-shore  connectivity increases sharply and new international regulations come into force. IMSCO will offer a certification for security consultants, a professional register, helping shipping organisations to confidently select experienced personnel, and validate reports to be held on central database allowing authorities and third party to assess the risk profile of a vessel. IMCSO Maritime Standard cyber certification scheme offers training across four disciplines. Cyber professionals who take the examination can qualify as an Offensive Security Practitioner or Maritime Cyber Security Specialist in addition to specific fields including Secure by Design and Cloud Security. 

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