GENERAL AVERAGE DECLARED ON MAERSK FRANKFURT
General average has been declared on the badly burnt Maersk Frankfurt, a brand new 5,500 teu boxship which caught fire a week ago. Once the onboard containers are discharged from the vessel at a safe location, they will not be released for on-carriage or delivery until cargo interests have made the required security arrangements through the general average adjusters, Richards Hogg Lindley. While the Indian Coast Guard has deployed considerable resources to douse the fire, small blazes are still being reported in a number of containers. Professional salvors are now onboard the vessel to assist the Indian Coast Guard with surveying the damage and developing a plan for the vessel and continued fire fighting operation. From aerial photos of the vessel, soot is distinguishable on containers in the third and fifth rows suggesting the fire was centralised to the fourth row, according to analysis from cargo insurer WK Webster.
MAERSK SETTLES CASE WITH US DEPARTMENT OF LABOR
As part of a settlement with the US Department of Labor, Maersk Line Limited – Maersk’s American subsidiary – will change its safety reporting policies and compensate a seaman the company terminated after they reported safety concerns to the US Coast Guard without first notifying their employer. The investigation began after the seaman alerted the US Coast Guard about safety concerns aboard the Safmarine Mafadi boxship in December 2020. They included lifeboat equipment in need of repair and replacement, crewmembers onboard in possession of, and possibly consuming alcohol, improper supervision of cadet seamen, and a bilge system not preventing cargo holds from flooding. In a settlement reached after the hearing in Boston, Maersk agreed to remove any requirement that workers notify the company before contacting the coast guard as well as refraining from retaliation against seamen who contact the USCG. Maersk also agreed to future compliance with all applicable regulations and to compensate the terminated seaman for lost wages and damages. Under the terms of the settlement, Maersk did not admit to violations of the Seaman’s Protection Act.
YANG MING APPOINTS NEW CHAIRMAN
Taiwanese shipowner Yang Ming Marine Transport has appointed Professor Tsai Feng-Ming as its new Chairman with immediate effect. Tsai holds a Ph.D. in Transportation from the New Jersey Institute of Technology. He was previously an Assistant Professor in the Department of Logistics Management at National Kaohsiung University of Science and Technology, an Associate Professor, later becoming a Professor, in the Bachelor Degree Program in Ocean Tourism Management and the Department of Shipping & Transportation Management at National Taiwan Ocean University (NTOU). Furthermore, he served as the Director of the Internationalized Information and Planning Division in NTOU’s Office of International Affairs. Since 2022, he also held the role of Chairperson of Department of Shipping & Transportation Management of NTOU.
US FMC LOSES EVERGREEN D&D CASE BUT REAFFIRMS CARGO REFUSAL RULES
A small but significant win for liner shipping companies came in the US Court of Appeals which overturned the Federal Maritime Commission (FMC)’s decision that Evergreen should have waived detention & demurrage (D&D) charges. The claim was for $510 by trucking company TCW for a period in which the port was closed, however, the court said the FMC ruling was “illogical” adding that the commission had a “myopic focus” on the incentive principle. It remains to be seen where this court ruling will alter the FMC’s D&D charging regulations. Meanwhile, the FMC has decided to retain parts of its refusal to carry cargo regulations, which will be enforced from 23 September, that were contested by carrier representatives. Alphaliner reports the FMC will: “Retain a provision that allows it to consider the quoted rate when assessing if a carrier made a good-faith effort to negotiate. Carriers argued that this exceeds the FMC’s brief as a non rate-regulating body.” In addition, the FMC will retain a requirement that “lines file an annual export policy that includes service and market descriptions, pricing strategies and container equipment,” according to the lines this could put them at a competitive disadvantage.