9 March 2012

Vol. 13 / No. 9

DIAMANTOPOULOU'S TURN TO TAKE ON SHIPPING PORTFOLIO Greek shipping has yet another two new ministers, the sixth and seventh change of those directly involved in the administration of the fleet since the stand-alone Marine ministry was dismantled in October 2009, and its tasks spread around six different portfolios. Following a mini-reshuffle by interim Prime minister Lucas Papademos, previous Education minister, Anna Diamantopoulou, 53, took the oath of office at the Development, Competitiveness and Shipping ministry, March 7, replacing Michalis Chrysochoidis, who now leads the Citizens' Protection ministry under which the Harbour Corps / Coast Guard falls. Both appointments are likely to be short term as national elections are tipped for April or May. Diamantopoulou is a past European Commissioner who also served as deputy minister of Development from 1996 to 1999. Chrysochoidis has previously served in the public order ministry on two occasions and now replaces Christos Papoutsis who quit to run in the upcoming contest to replace former Prime minister, George Papandreou, as leader of the Pasok socialist party. In the reshuffle, which sees outspoken academic George Babiniotis brought into the Education portfolio, Papademos did not fill the position of deputy minister in charge of Shipping left vacant when Adonis Georgiadis had to quit after his Popular Orthodox Rally (LAOS) party left the coalition government because it disagreed with new austerity measures needed to qualify for Greece to receive 130bn in new loans and avoid imminent default on its debt repayments. Georgiadis was popular in the shipping community during his brief period in office, and has now joined New Democracy, the mainstream conservative political party currently ahead in the opinion polls. Diamantopoulou finds a full plate as Georgiadis was pushing ahead on a number of issues critical for shipping and, indeed, the country's welfare. Topping the list is the state of the coastal ferry sector which ferry owners say is near collapse. Georgiadis has set up a special committee involving the stakeholders to seek a way to cut costs while maintaining regular services to islands, but the changes at the ministry has delayed the job. She will also find issues involving cabotage in the cruise sector, marine education and the need to simplify registration under the Greek flag on the plate. The changes bring the re-instatement of the standalone marine ministry demanded by the shipping community no closer. Responsibility for the coastguard, security and piracy-related matters remain with the Citizens' Protection ministry also a very busy place as it has to deal with public unrest, as draconian cuts and taxes and climbing unemployment hit home. And there is the resurgence of fear of domestic terrorism after the discovery of a bomb on the metro at the end of February. 'RENA' WAS MAKING 'BEST SPEED' TO BEAT TIDE DEADLINE TO REACH PORT An initial investigation into the grounding of the container ship Rena off New Zealand, on October 5, reveals the captain and his navigating officer were taking a short cut trying to meet a deadline to reach port. The Transport Accident Investigation Commission's (TAIC) interim findings reveal a number of changes were made to the passage of the Costamare container ship's plan before it grounded off Tauranga. The report does not seek to apportion blame or explain why the alterations

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were made. That will come in its full report in 2013. The report says the ship sailed closer to the coast than planned to save time, and the captain failed to change course despite a radar alarm as the vessel headed for the reef on which it would be wrecked. The captain and navigating officer have pleaded guilty to mishandling the vessel and altering ship documents after the crash. The court has not published the names of the men, who are both from the Philippines. Their names will only be revealed when they are sentenced, which is due on May 25. The report by NZ's TAIC says the captain and his navigating officer made several course changes as they tried to get to their port by a deadline of 0300 local time. Around two hours before then, the port authorities at Tauranga warned they needed to make "best speed" to avoid changes in the tides which would delay them by several hours. The captain then agreed to change course to pass within two kilometres (1.25 miles) of the wellmarked Astrolabe reef, rather than the recommended 4.8km. The report says that around nine minutes before the accident, the captain noticed an echo on the radar screen as the ship headed for Astrolabe Reef at 17 knots, but continued on the course while trying to see something in the water. The radar echo was about 2.6 nautical miles dead ahead of Rena, says the report. New Zealand's government has estimated the cost of the cleanup after the accident at NZ$130m ($108m). Most of the costs have been met by insurers. BUDGET FORCES GREECE TO QUIT PIRATE OPERATION 'ATALANTA' The hardship facing the Greek economy was underlined when the Greek frigate Hydra was ordered to return home one month earlier than anticipated as the country withdraws its naval contribution to the Operation Atalanta anti-piracy force to cut costs. Announcing the decision to curtail Hydra's mission, the Defense ministry said Greece will also not participate in further Atalanta missions this year. The frigate had been on duty since January 29, patrolling and escorting merchant ships and providing protection for merchant ships sailing in pirate infested waters off Somalia. It left the mission on March 8. Making things worse for the prestige of the Greek merchant marine, the strongest in the world, is the fact it has been one of the leading supporters of Operation Atlanta being part of the force since its inception and its launch in December 2008. Some 23 European Union and four other countries have participated in Operation Atalanta and around 2,000 military personnel are involved in it. By cutting Hydra's tour short, it is estimated Greece will save 7.5m this year, since the cost of participation in the pirate-risk area is said to be 2.5m a month. Loss of Hydra leaves Operation Atalanta short of a warship for one month. The decision also comes as the Greek parliament debates a bill which paves the way for private armed guards to be used on ships flying the Greek flag. When presenting the 'piracy' bill, February 22, the then Citizens' Protection minister, Christos Papoutsis, said it takes into account the views of the Union of Greek Shipowners and the Panhellenic Seamens Federation as well the need for an effective policy in tackling maritime piracy. While all political parties agree piracy is a constantly growing threat, serious concerns and objections are expressed by MPs of leftist parties. Greece believes the presence of armed guards on board offers a greater degree of security to seafarers, marine insurers and shipping customers and in addition to private armed guards, there are provisions which allow security services to be provided by members of the Coast Guard's special forces. AS CLAIMANTS QUEUE, TROUBLED ALLIED IS ASKING FOR PATIENCE As claimants against troubled bulk carrier operator and charterer Allied Maritime, have reportedly been lining up at the company's door as well as turning to the courts over allegations of unpaid charter hire and supply bills, the Voula, Athens-based company is asking counterparties for time to resolve cash squeeze. In a written statement to the shipping media, March 6, the 30-year-old company said it had run into financial trouble for the first time ever and appealed to business partners to have patience while it concentrates "its efforts productively by securing a viable package with operators and additional third parties".
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The company, headed by Dimitrios Marinis, admitted "an unfortunate mixture" including world trade issues, the banking crisis, "circumstances surrounding discharge of cement in Nigeria", and weather issues in the Far East and South America created "an extreme squeeze on 2011 results". Allied emphasised "measures are being forced through to rectify the immediate situation and risk to Allied and its counterparties". STX Pan Ocean, STX Pan Ocean (UK) and STX Gulf Shipping DMCCO; Trans Pacific Carriers of South Korea; Cetragpa, the operating arm of Louis Dreyfus Armateurs of France; Greece's Remi
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LITTLE HEADWAY PUTS I M O ON COLLISION COURSE WITH E C

The Imo and the European Union are on collision course as the UN body struggles to make headway on market-based measures to curb carbon dioxide emissions from international shipping. A committee of the 170-member UN shipping body was unable to make "tangible progress" after a week of talks which ended late March 2. According to a report by Reuters, an Imo spokeswoman said discussions on market-based measures, such as a levy on CO2 emissions and a cap-and-trade scheme, will resume in October when the body's Marine Environment Protection Committee next meets. Shipping accounts for around 3% of the world's emissions of the greenhouse gas that is widely blamed for global warming, and this share could go to 18% by 2050 if regulation is not in place, according to Imo. The executive of the 27-nation EU block, the European Commission, has threatened to enforce its own shipping regulations if the Imo fails to act, as it has with aviation. "While we have a clear preference for global action on measures to reduce emissions from shipping, we don't see the Imo on track to deliver reductions consistent with the globally accepted maximum two degrees Celsius objective," an EC spokesman said, referring to a threshold many scientists say is needed to avert runaway climate change. The EC has started a public consultation on four policy options, including a compensation fund, an emissions trading system, a fuel or carbon tax and a mandatory emission reduction per ship. This consultation runs through early next month. EC spokesman, Isaac Valero-Ladron, told Reuters the consultation will be followed by an impact assessment and drafting of a Commission proposal between April and June, with a final proposal to be presented in the fourth quarter. Meanwhile, Imo secretary-general, Koji Sekimizu, has called for an impact assessment study on nine different market-based proposals and to finalise it by 2013. "Let us work together and set ourselves the challenge of completing all of the work on the establishment of a market-based measure by a target year of 2015," said Sekimizu when opening the Imo meeting, February 27. A debate about technical cooperation and technology transfer in relation to an agreement on an energy efficiency design index reached last year is causing a major problem. Though last summer 48 countries voted in favour of adopting a mandatory energy efficiency design index (EEDI) for new ships and a voluntary energy efficiency management plant for all ships, opposition is strong. "There is bad feeling as a result of that," said John Maggs, policy advisor at Seas At Risk, a European association of non-governmental environmental organizations. "Those who didn't support adoption of the EEDI last year are now causing difficulties for further progress on greenhouse gas measures." Make-up of the steering group to oversee the commissioning of the impact study, is also a problem with developing countries holding up progress. Irrespective of what the EC may think, Imo has adopted guidelines to support implementation of mandatory energy efficiency measures for shipping. The organisation's Marine Environment Protection Committee (MEPC)'s 63rd session was held February 27 to March 2. Along with intensive discussion on market-based measures for GHG emissions, MEPC adopted amendments to Marpol relating to regional arrangements for port reception facilities, and adopted guidelines related to the implementation of the revised Marpol Annex V (Garbage) and the Hong Kong Convention for the recycling of ships. The MEPC also granted basic and final approval to a number of ballast water management systems that make use of active substances.

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Maritime affiliate, Blue Laoura Maritime; Nuntius Investment; and Swiss Marine are reported to be among the latest to join the list of claimants related to at least seven handysize and handymax bulkers. These join Greek-controlled Globus Maritime, Krateros Maritime and Eagle Bulk Shipping as registered claims are said to be now approaching $15m. In contrast with other recent litigation against Allied that alleges charterhire default, the Cosmoship Management affiliate, Nuntius isasking to be compensated for alleged lost charterhire caused, it says, by Allied returning a ship later than it was contracted for in the autumn of 2009. Its lawsuit in the Central District of Illinois details damages of $678,000 including legal costs, and is seeking a garnishment against Allied assets found in the legal district as underlying security on London arbitration Nuntius says it is in the process of commencing. There are reports South Korea's STX Pan Ocean has had a senior executive visiting Greece seeking unsuccessfully to find a solution with Allied. Allied's trouble became public when a fuel dispute surfaced with Athens-based US-listed Globus Maritime. Allegations of unpaid charter hire were made in documents filed in the Central District of Illinois by Krateros Maritime, an affiliate of Nikator Navigation, which secured a US court order to freeze Allied's financial assets until a London arbitration involving the 43,600dwt Krateros, built 1992, is settled. Krateros is seeking more than $370,000 in a claim to cover unpaid hire, interest and legal costs. Globus is seeking $594,000 to cover a bunker bill which it was forced to pay to get an arrest order on the Star Globe, a 2010-built, 56,867-tonner, lifted. Nasdaq-listed Eagle Bulk Shipping joined a campaign to recover cash asking a federal judge, in Illinois, to freeze Allied's assets following a dispute involving the 56,000dwt Golden Eagle. Eagle's affiliate, Golden Eagle Shipping is looking to secure an attachment order as a security measure while it prepares to take a $1.8m claim to arbitration in London. STX Pan Ocean is said to also have asked Illinois judges to freeze Allied's financial assets as a security measure while they attempt to secure arbitration awards in London. According to court documents, the first Rule B attachment case involves a claim of more than $1m while a second is linked to a claim with damages of more than $954,000. Cetragpa SNC has made a claim of $954,000, while Trans Pacific Carriers is seeking $1m and Blue Laoura Maritime wants $709,700 with all the allegedly defaulted charterparties signed during 2011 and all include legal costs. Blue Laoura is claiming default on the 2008-built, 57,000dwt Blue Marlin I. CAPTAIN FOUND DEAD AFTER TANKER SINKS IN ELEFSINA BAY Investigations are being carried out into the death of a 48-year-old captain and what caused his 2,519dwt products tanker Alfa I to sink off Elefsina mid-morning March 5. The master's body was recovered after he was unable to abandon ship though 10 crew members were rescued safely. The Greek flag vessel, owned by Viamare, part of the Piraeus-based Blue Iris Naftiki Eteria fleet, has 1,800 tonnes of fuel oil and about 240 tonnes of diesel on board. The 1972-built tanker engaged on bunkering duties. March 6, the Coast Guard reported there were no signs of oil leaks and that a plastic barrier has been set in place around the ship to contain any possible oil spills. The ship was re-fueling when it issued a distress signal. Officials on scene report the vessel may have hit a wreck in Elefsina's shallow bay, not far from the capital city of Athens. NEWLEAD OPTS FOR NEW STOCK SPLIT TO FEND-OFF WALL STREET PRESSURE Nasdaq-listed NewLead Holdings plans a reverse stock split as it seeks to revive its share price in response to delisting pressure from stock market regulators. The Piraeus-based product tanker and bulk carrier owner says its board of directors has signed off on the reverse split, which will transform five shares into one on March 19. The reverse split is the second in less than two years and should help the company regain compliance with Nasdaq's $1 minimum bid and $5m minimum market value requirements. The Nicos Fistes / Michael Zolotas-led NewLead slipped below these requirements late summer 2011 and was subsequently put on the exchange's watch list, though recently shares have been trading just on the $1 limit. NewLead said that as a result of the split the number of common shares outstanding will be
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reduced from 17,399,257 to around 3,479,852, subject to rounding up of all fractional shares to the nearest whole share. "It is anticipated the transaction will establish a higher market price for the company's common shares and reduce per share transaction fees as well as certain administrative costs," said NewLead on March 2. Transfer agent, Computershare has been retained to act as exchange agent for the reverse stock split. NewLead has been selling ships since last autumn, shedding nine units in all, including two demolition sales, raising some $212m. The company currently controls 11 vessels, two double-hull product tankers and nine dry bulk vessels including four newbuildings and one vessel currently under construction scheduled to be delivered in the third quarter of 2012. GOLDENPORT'S NEWBUILDINGS ARE ALREADY EARNING THEIR WAY The arrival of four newbuildings are being credited with lifting London-listed Goldenport Holdings back into profit in 2011. The numbers are still small, but the Paris Dragnis-led Goldenport's profit of $2.34m for the year, overturns a loss of $152,000 in 2010. Despite expectations for a challenging container ship market this year and lower returns from its bulker fleet, the owner has paid a total dividend of six pence, up just over 11% on 2010. Goldenport said the improvement came on the back of a 22% spike in revenue following the arrival of four newbuildings, three bulk carriers and a container ship. And the company expects more international activity on the newbuilding front saying a lack of fresh activity will pile further heat on yards, especially in South Korea, to lower their pricing sights. Goldenport says dry-cargo rates will feel further strain in 2012, while asset prices will also come down further as cash rich investors wait in the wings for even greater bargains. Thus, the Vouliagmerni, Athens based operator says "overall these conditions may provide real opportunities to companies with strong cash flow and reserves to upgrade their fleet during the course of the year and take full advantage of a recovery in demand in the foreseeable future." Revenue in 2011 was $107.33m, up 21.7% on 2010's $88.18m. Ebitda of $50.673m was 20.1% better than in 2010. Earnings per share in 2011 was $0.03. The company says it suffered no impairment losses incurred on any vessel of the fleet and is in full compliance with debt covenants. Further, with its initial newbuilding programme now completed there are no further capital commitments and the company, at December 31, had a net debt to book capitalisation of 47%, a conservative figure for shipping. Dragnis, founder and ceo, said that in addition to the arrival of the four ships a profitable sale of one container vessel and the replacement of its operating days through the acquisition of another younger geared container vessel was also accomplished. He noted the fleet now consists 12 container ships and 14 dry-bulk carriers, out of which "nine are built after 2009, lowering the average age profile of our fleet while expanding its carrying and revenue generation capacity." The company's fleet has 58% of available days in 2012 already fixed under period employment, assuming earliest charter expiration. The remaining of the 2012 available days will be covered by employing the vessels in short-term contracts until the market improves, at which point, Dragnis said "we shall consider a mixture of medium to longer-term time charter contracts." "We remain cautious given the current market conditions, but we also remain alert to investment opportunities that traditionally arise during weak markets," said Dragnis. 'SEA DIAMOND' WRECK CAUSING "NEGLIGIBLE ECO-DAMAGE" Impact of the Sea Diamond wreck on the marine ecosystem in the waters of Santorini is negligible according to a report from the Hellenic Centre for Marine Research (HCMR) released March 1. The fifth annual report to be released by the government organisation since the Louis Hellenic Cruises cruise ship foundered April 4, 2007 in which two of the over 1,500 people onboard have never been accounted for, was based on research conducted in 2012. The report found there were no problems caused by the leak of some 450 tonnes of fuel from the sunken ship and that the quality of sea water, which is used by the desalination unit of the island's second largest town, Oia, to produce drinking water, "is excellent". Marine life in the area was also
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healthy and fish caught near the wreck site are safe for consumption as they show no higher traces of heavy metals than fish from other parts of Greece. The fuel leak was cleaned up by private contractors at a cost of $6m. In the area of the wreck a floating boom remains in position, which is monitored daily by a special anti-pollution vessel and qualified personnel, the cost covered by Louis. In addition, the now defunct Merchant Marine ministry, in accordance with Presidential Decree 11 / 2002, gave HCMR the right to collect environmental data in the region, also at the expense of the ship's owner. Louis maintains the sinking of the 22,000gt ship, which is lying on a ledge some 125mtrs down, was caused by erroneous mapping of the shallows on official Greek charts which were being used onboard at the time of the accident. Subsequent investigations supported claims the official maps were indeed inaccurate and the Disciplinary Board of Supervision of Merchant Ships subsequently acquitted the ship's captain, ruling the cause of the accident was the incorrect mapping of the area. Several civil cases arising from the casualty are still to be dealt with. LOUIS RE-SHUFFLES FLEET IN MOVE TO CONSOLIDATE EAST MED IDENTITY Louis Cruises has revealed its trump card as it consolidates its identity as a Greek island and Turkey specialist niche operator offering a genuine Hellenic and East Med experience on board. As part of the move, the cruise ship Thomson Destiny will sail in its own brand operations this season as the Louis Olympia, replacing the Louis Majesty which has been chartered to Thomson Cruises and renamed Thomson Majesty. Though the Louis Olympia and Thomson Majesty are essentially of similar size, the reshuffle comes as the latter is considered better suited for Thomson's seven- and 14-day cruises, while the refurbished Louis Olympia will sail in Louis' three- and four-day programme out of Piraeus and Kusadasi, as of May 11. Just having been refurbished, and featuring nine passenger decks and seven elevators, Louis Olympia accommodates 1,664 passengers in 725 staterooms, 419 with window views, and 21 suites, nine with balconies, an upgraded option for passengers sailing on the shorter programme. To further the East Med experience, the ship has three eating outlets to choose from, so passengers can enjoy Greek and Mediterranean cuisine. Kerry Anastassiadis, ceo of Louis Cruises, said deployment of Louis Olympia in the Piraeus and Kusadasi itineraries "further enhances our profile as the Aegean and East Med specialists." He said "the Louis Olympia coupled with our Louis Cristal, which operates seven-day cruises out of Piraeus and Istanbul, offer passengers a complete experience of the region's history, culture, tastes, music and 'filoxenia', the Greek word our warm hearted hospitality is based on, while they sail to unique destinations." MINISTER MUST HIT THE GROUND RUNNING WARN FERRYMEN The day before Anna Diamantopoulou became Development, Competitiveness and Shipping minister, March 7, the Association of Greek Passenger Shipping Companies (SEEN) wrote to the then-minister to "take over the batton" from the resigned deputy minister of Shipping, Adonis Georgiadis, and "run" as fast as possible to get the special political committee created by Georgiadis to save the country's ferry network. The intended recipient was Michalis Chrysochoidis, but he was replaced by Diamantopoulou, and the shipping industry is now wondering if she will be able to fix anything in the less than two months, to the rumoured elections for April 29 or May 6. Georgiadis' committee comprised himself and Katerina Batzeli, of Pasok and Giannis Plakiotakis, of New Democracy and representatives from accross the industry, but seems to have lost its way since Georgiadis quit. In the letter, signed by the president, Apostolos Ventouris, and general secretary, Spyros Paschalis, SEEN called on the minister to take "immediate action, because of the urgency of the well-known issues, and the need to promote and agree proposals and solutions to challenges facing maritime transportation in Greece." SEEN highlighted the possibility of bankruptcy for all ferry companies, leading to the state being saddled with a bill in the order of 1bn to 1.2bn a year to keep ships sailing between islands and the Greek mainland. The special committee created by Georgiadis, consists of ministerial officials, representatives of the seafarers and shipowners as well of the political parties backing the interim government of Lucas Papademos.
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SEEN notes the committee acknowledges ferry companies have entered the period of financial crisis incurring losses for three years in a row. In its letter, it said "the modernisation of the operational framework of coastal shipping is the main way to correct the financial results of the ferry companies, so that they meet the transport needs of our islands in the future." It warned: "Otherwise, the losses will compromise the proper functioning of coastal ferrying." SEEN said the geographical area of Greece, with its many islands, requires an extensive ferry network, but lower personal income leads to lower levels of passenger and general traffic volume, and thus lower revenues for ferry companies at a time when higher bunker prices increase operating costs. It said the price of fuel IFO180 has doubled in five years. Unemployment is rising and, as incomes decline, passengers need a lower transportation cost. At the same time banks have significantly limited liquidity to ferry companies. "Growing deficits and government debt are suffocating the possibility of financing public service or unprofitable lines," warned SEEN.

GREEK MARKET REPORT

NEWBUILDINGS
The newbuilding market is currently a little more subdued but there are reports of new business being in the pipeline. Clarkson Hellas says the burning issue in the market continues to centre around efficiency and with shipyards and owners continually placing an increased emphasis on improvements in efficiency of ship design, against the backdrop of a bullish outlook for bunker pricing, there is no doubt that this will continue to be a key factor taken into consideration for those contemplating newbuilding. "With substantial efficiency improvements now being offered across the entire spectrum of asset classes facilitated by improvements in engine designs, energy saving devices and optimised hull forms, there is certainly an argument for buyers to take advantage of new technology and competitive pricing," says Clarkson. In terms of reported business done clients of Helikon Shipping are understood to have placed an order for one further 57,300dwt bulker at STX Dalian, with this latest unit due for delivery in second quarter of 2014. To be named Parnassos this takes the company's total orderbook at the Chinese yard to five units. No price has been mentioned, but brokers believe it is in excess of $25.5m. Tanker owner Almi Tankers is said to be close to ordering LNG ships at its favoured builder, Daewoo S & ME. The Korean builder has reportedly let Almi know two slots are open offering delivery by end 2014. The project is said to involve tri-fuel vessels of 160,000cumtr and a quote of between $200 / $210m is on the table for such a ship. Daewoo is already building a series of 10 suezmaxes and a pair of VLCCs for the Costas Fostiropoulos-led Almi. Indeed, at one time Almi was said to be toying with the idea of switching at least one of the VLs to an LNG, but a long-term charter deal for the VLs is now said to be ready, with two more VLs also said to be under discussion. The Costas Fostiropoulos-led company now appears to have switched its attention to contracting at least one LNG carrier from scratch, in addition to the big tankers. The reports gain credence as the owner is reliably reported to have discussed financing future orders through Norwegian bonds. Financing is said to be under discussion with Norway's RS Platou Markets being lined up to handle the possible placement of Norwegian bonds. March 8, an era in shipbuilding ended when the Kobe shipyard of Mitsubishi HI launched its last commercial newbuilding, hull nr 1,296, the Emerald Ace, a 60,200gt 6,400teu container ship the Kobe yard is building for domestic shipowner Mitsui OSK Lines (MOL). Slated for delivery in June the ves7

sel will be MOL's first ship to feature a "hybrid electric power supply system" onboard. Under a restructuring announced last summer, commercial shipbuilding will cease at Kobe and now be concentrated at Mitsubishi's Nagasaki and Shimonoseki yards. The Kobe yard, which was founded in 1905, will in future specialise in building submarines and deep submergence research vehicles.

SALE & PURCHASE

With Piraeus-based brokers saying an increasing number of Greek owners are now not just talking about buying, but are in negotiations, a flurrry of activity in the s&p ring could be on the way, with greatest interest being shown in bulk carriers. "There is still a lot of uncertainty in the market, with many buyers refraining from getting committed in fear of further drops in asset prices," commented broker Intermodal. However, Allied Shipbroking suggests owners with reserves now believe it's time to buy. Allied notes "asset prices are low at present" and says owners are getting itchy trigger fingers believing even if they get lower, that now is the time for the choice is greater and sellers are willing. This may change and lower prices will see choice sales candidates being withdrawn. Some players are predicting prices will go down by a quarter before the end of the summer. Shiptrade Services says interest is highest in the handymax sector, followed by handies and panamaxes. This is reflected in the sale of the Sanko Frontier. After attracting considerable interest from European and Far Eastern buyers the panamax bulker, 74,962dwt, built 2011 in Japan's Sasebo HI, is said to have been sold by Sanko Steamship to unidentified Greek interests for between $28.2m / $29.2m, with some saying the sale is on subjects. Meanwhile, the saga of the deal involving the Japanese controlled panamax bulker Lupinus, built 2005 in Japan's Saiki HI, reported in Newsfront Vol 13 Nr 7 and updated Vol 13 Nr 8 appears to have again raised doubts. Kitaura Kaiun of Japan is now said to have sold the unit to unidentified Greek interests after the first deal to Turks failed. However, there is confusion over the price which is now being given in the range of the two reported extremes of $15.2m and $16.9m, perhaps indicating a deal is yet to be finally cemented. In the energy sector, the Vardinoyiannis Group has been shopping for aframax tankers. The 1995built double hull 101,000dwt Frankopan has been purchased and is now trading as the Santa Cruz I, as has the year-older Petar Zrinski which is now the Impros. The former Tankerska Plovidva-owned pair have joined the Greek group's Avin International. The Santa Cruz I reportedly cost in the region of $9.2m while the price of the Impros is undisclosed. At the sametime, Avin has been adding newbuildings to the fleet in the 3,200dwt / 6,400dwt range. Troubled Nicosia-listed owner Ocean Tankers, controlled by Michael Ioannides, has seen the 10th and 11th of its vessels sold at auction. The Kalia, 5,771dwt, built 1999 in Tuzla, Turkey, double hull, ice capable, tanker managed by Admibros Shipmanagement has been gone in a judicial sale 'as is Limassol' to Euronav of Greece for $3.4m / $3.5m. The double hull Stavrodromi 15,441dwt, built 1999 in Aker MTW Werft of Wismar, Germany, has also been sold at auction, but to undisclosed buyers for an undisclosed price. This happened after an international consortium of banks led by RBS, filed to get the reserve for the Stavrodromi after no bidder emerged at the minimum bid price of $6.3m for the tanker in Rhode Island, USA. These two auctions follow the 15,400dwt, 1999-built sisters Hartzi and Skledros which went under Market information published in Newsfront is confidential and for our subscribers use only, and is without guarantee. No action should be taken on the basis of this information without prior independent confirmation. Errors brought to the Editors attention will be corrected in a subsequent issue of this newsletter.
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the hammer for $7.3m each in Denmark after being held in Skagen since last summer. Skledros went to Piraeus-based Halkidon Shipping, and the Hartzi to Singapore's Wilma Ship Management.

DEMOLITION
Though Clarkson Hellas reports plenty of activity remains in the demo market place and price levels have stabilised or improved slightly, Greeks have not been seen as part of this latest activity. Reports out of India say some 52 vessels had arrived to the anchorage for resale into Alang in February, but Clarkson reports, many, however "remain unsold to the breakers or are suffering attempted renegotiations". Clarkson says: "These problems are now rarely highlighted in the market unlike previous years, which really is a credit to the cash intermediaries who really have brought some exemplary work ethics into the business over recent years, particularly when they are placing deposits into owners accounts and have the added pressure of some unethical efforts imposed on them by the breakers." Clarkson goes on: "Despite a settled local currency and stable domestic steel market in India, no reasonable price increases are evident due to the large supply of tonnage to the area and some are pleasantly surprised we have not seen any negative correction in rates. However, the next couple of weeks may see inquiry and activity from India wane whilst the date for the budget [March 16] draws closer as buyers may prefer to hold back from risking numbers pre-budget for later deliveries." BULKERS

Y Explorius (ex-Clipper Mustang, ex-Millenium Trader, ex-East Trader, ex-Diligence Trader, exSanko Diligence), Cyprus flag, 15,786 / 26,536dwt, built 1985 (Kanasashi Zosen, Toyohashi, Japan), 5 holds / 5 hatches, 4 x 25.4-tonne cranes, (B&W 6,900bhp), has been sold by Abalone Shipping / S Frangoulis (Ship Management) of Greece to unidentified buyers for $4.2m. Y Sanko Frontier, Liberian flag, 40,325 / 74,962dwt, built 2011 (Sasebo HI, Sasebo, Japan), 7 holds / 7 hatches, (MAN - B&W 15,037bhp), has been sold by Sanko Steamship of Japan to unidentified Greek interests for between $28.2m / $29.2m. Sale on subjects. TANKERS

Y Frankopan, Croatian flag, 55,743 / 101,605dwt, built 1995 (Brodosplit, Split, Croatia), double
hull, IGS, COW, SBT, 7 tanks, 3 cargo pumps, cargo heating coils, (B&W 14,194bhp) has been sold by Tankerska Plovidba of Croatia to Avin International of Greece for between $9m and $9.8m and has been re-flagged to Liberia and re-named Santa Cruz I. Y Kalia (ex-Montauk, ex-Bitten Theresa), Cyprus flag, 3,457 / 5,771dwt, built 1999 (Tuzla Gemi Endustrisi, Tuzla, Turkey), double hull, ice capable, 12 tanks, 3 cargo pumps, coiled, epoxy coated, Imo II / III, thwart thruster pr (f), (Alpha 2,665bhp), previously part of the Admibros Shipmanagement / Ocean Tankers fleet of Cyprus has been sold in a judicial sale 'as is Limassol' to Euronav of Greece for $3.4m / $3.5m.

From the Marketplace page 15 People & Places page 17 Bulletin Board page 19
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Twenty-two students studying logistics at the University of Piraeus attended the LIFE RAIL Avtoritas course, with the objective to bring the concepts of intermodality and sustainable rail freight transport to the students of transport. Held in Barcelona, Spain, March 1-2, it was the first LIFE course by Greek students.

Y Petar Zrinski (ex-Zrinski), Croatian flag, 55,743 / 101,605dwt, built 1994 (Brodosplit, Split,
Croatia), double hull, 7 tanks, 3 cargo pumps, cargo heating coils, (B&W 14,194bhp), has been sold by Tankerska Plovidba of Croatia to Avin International of Greece for an unreported price. Renamed Impros and now Liberian flagged. Y Stavrodromi (ex-Shakhdag, ex-Saint Petersburg), Maltese flag, 10,321 / 15,441dwt, built 1999 (Aker MTW Werft, Wismar, Germany), double hull, 14 tanks, 3 cargo pumps, ice capable, cargo heating coils, thwart thruster cp pr (f), (B&W 7,206bhp), part of the Ocean Tankers / Admibros Shipmanagement operation has been sold at auction to undisclosed buyers for an undisclosed price. PASSENGER SHIPS

Y Thassos V (ex-Avra), Greek flag, 832gt, built 1993 (Greece), 314 passengers, 90 cars, (Cummins),
has been sold by ANETH Thassos Shipping of Greece to unidentified buyers for $2m. DEMOLITION

Y Jonathan P (ex-Oel Integrity, ex-Jonathan P, ex-Honor River, ex-Canstar, ex-Belhaven), Panamanian flag, 22,712 / 33,668dwt, built 1990 (Halla E & HI, Incheon, South Korea), 1,932teu, 5 holds, 5 hatches, (B&W 17,222bhp), has been sold by US-listed Euroseas / Eurobulk Ltd of Greece to breakers in India on a rate of $490/lwt raising $4.32m on this 8,817lwt container ship. UPDATES

Y Regarding the sale of the LPG Gas Kalogeros, Maltese flag, 5,349dwt, built 2007 in Shitanoe Zosen, Japan, by Stealth Maritime/StealthGas reported in Newsfront Vol 13 Nr 7 to unidentified buyers for an undisclosed price. Brokers report the price is $16.8m basis s/s and d/d this month (March). Y Saga of the price of the bulk carrier Lupinus, Panamanian flag, 31,700dwt, built 2005 in Japan's Saiki HI, reported in Newsfront Vol 13 Nr 7 and update Vol 13 Nr 8 as being sold by Kitaura Kaiun of Japan to unidentified Greek interests for $17m, continues The price is now said to range between the two reported extremes of $15.2m and $16.9m indicating a deal is yet to be finally cemented. Y Regarding the demolition sale of the bulker St. George, Liberian flag, 52,670dwt, built 1987 in Okean Shipyard, Nikolayev, Ukraine / ex-USSR), by Interunity Management of Greece to breakers based in India reported in Newsfront Vol 13 Nr 8. The rate of $480/lwt is correct but the lwt has been adjusted upwards to 13,330-tonnes lifting the sale price from $5.84m to $6.4m.

SHIP FINANCE
Y Credit Suisse is secured for a total $50,497,200 against a $32,370,000 loan facility out for some
10 years to end-February 2022 on the 115,688dwt newbuilding tanker Nissos Anafi, built 2011, Korea and recently delivered by Samsung HI, Korea, for $54,928,270 in the Kyklades Maritimemanaged fleet. This loan is also secured by other collateral in this fleet. Y Diana Containerships says it has completed the drawdown of an additional $8.8m under the previously announced revolving credit facility of up to $100m with The Royal Bank of Scotland (RBS) which may be increased to $150m subject to further syndication. With the latest drawdown the NYSE-listed Simeon Palios-controlled company has now drawn down $92.7m. Y German investment bank DVB has posted a record net profit of 110.4m ($146m) for 2011, up from 104min 2010. The result comes as credit losses rose 7.2m to 59.2m reflecting a 13.8% increase in provision for bad loans and other impairments which is modest as the loan portfolio is 11.3bn for shipping alone.
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Just over half of DVB's lending is to shipping compared to 32% to aviation and 7.4% for land transport projects. Total assets of the bank rose to 22bn from 19.3bn, while loans and other advances rose 13% to 21.7bn. "We held our steady course during a year that was shaped by manifold turbulence and uncertainty. This is why we are extremely satisfied with our results, which mark an all-time high" said bank chairman and ceo Wolfgang Driese. He said however, the current year "will not be any easier to navigate, since the cash flows of international transport operators are under pressure from continued excess supply in some maritime shipping segments, sluggish demand in some aviation sectors, and particularly from persistently high fuel costs." DVB has a Frankfurt listing but is 95% owned by DZ Bank part of Volksbanken Raiffeisenbanken.

SEIZURES
Y No seizures to report this week.

AUCTIONS
Y After being seized by a private creditor February 1, 2012 in pursuit of a 13,921.67 claim in an
action against the registered owners, Ampelos Samou NE, the 3,292dwt Agios Dionysios, (exXenofon), has been listed for auction on March 14. Lying in Salamina, this 1971-built reefer is carrying start-up price of 100,000. Y Kapetan Napoleon, (ex-Milos) has been listed for hammering down in March 21. Lying in Salamina, this 99gt tugboat is carrying start-up price of 20,000. The registered owner is Goliath N.E.

PIRAEUS FIXTURES
With dry bulk market's benchmark, the Baltic Dry Index (BDI) now looking at 850 points over the horizon, levels are healthier after a week of improvement. Apart from the capesize market, which was relatively stable, all other ship segments were higher, as week 10 drew to a close. The supramax market led the way while the smaller handysize segment was also bringing more cheer to owners. Supramax freight rates continued to move up as the Atlantic joined the Pacific market in a longawaited recovery as growing cargo demand pushed up prices to hire vessels in the US Gulf. A growing number of scrap and pet coke cargoes coming out of southern US ports supported a rates rise on the Baltic Exchange's benchmark US Gulf to Europe route, which saw it climb to $11,085 a day March 7, up from a low point of $8,720 daily in February. Brokers predicted the rate could shoot up by several thousand dollars more in the coming weeks as tonnage was predicted to become tighter in the near future. Though the South American market also held up well this week, brokers are saying trades out of the Black Sea and the European continent still have much to do before reaching decent levels. Indeed, there are reports owners are holding out rather than fix at present. In the Pacific, all routes performed better last week, as increased coal cargoes out of Indonesia not only pushed up demand, but also led to increased congestion, taking tonnage out of the market overall. An increased number of nickel ore cargoes were also being fixed in the Pacific basin as better weather made charterers keener to load the dangerous ore. Ships were being fixed out of India to China at $12,000 a day a marked improvement on the $5,000 a day earned a months ago. Broker Fearnleys is not pleased with the capesize market, contending the "endless numbers of units appearing, primarily in Far East, give presently no short-term hope for this segment". The broker continued: "Not even significant volatility can be expected, for the same reason. Despite increasing bunker
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prices and fixing activity, conference trades like WAust/China still stand at below $8 pmt - giving daily returns much closer to zero than what is required to cover OPEX. For many owners, the most relevant alternatives are now idling tonnage to save cost / limits risks or secure period employment the latter still offering returns the double of spot earnings." Further, according to the China Iron Ore & Steel Association (CISA), China is aiming to improve its self efficiency in iron ore and continue to consolidate the steel industry in a bid to raise the output of its major steel makers by 10% within the next four years. The government expects the country's top 10 steel manufacturers to account for 60% of the country's steel output by 2015, Wang Xiaoqi, CISA vice chairman, said at a recent trade conference held in Beijing. Bimco expects dry bulk rates to remain suppressed for the time being. The organisation's chief shipping analyst, Peter Sand, says "the biggest positive surprise of 2011 was the 22.2m dwt of demolished tonnage. Of this, 67 were capesize vessels. But during 2011, an average of 8m dwt of dry tonnage was delivered into the market every single month. Indeed, the lack of funding, oversupply and poor freight rates are going to make 2012 a "crisis" year for the shipping industry, says Andrew Broomhead, cfo of Hong Kong's largest operator of dry-bulk vessels, Pacific Basin. "We've got yet again a lot of ships being delivered into the market. (But) funding is very, very dry, so for many companies it's going to be a very tough year. We are calling this a crisis for 2012," Broomhead said, March 2. "In dry bulk, we've got probably about 20% of the world's fleet, which is going to be delivered in the course of 2012. That's going to represent a huge amount of supply increase," he said. Some are doing business. Australia's resources and energy exports reached a record A$190bn (US$202bn) in 2011, up 15% on 2010, reports Australia's Bureau of Resources and Energy Economics (Bree). "The record value of resources and energy exports in 2011 reflects increased earnings for the vast majority of resources and energy commodities, including iron-ore, coal, liquefied natural gas (LNG), oil and base metals," said Bree executive director and chief economist, professor Quentin Grafton. Australian exports for mineral resources increased by 14% in 2011, compared with 2010, while export prices for metals and other minerals increased by 9%. The export unit returns for energy commodities increased by 20%. Diana Containerships / Simeon Palios has revealed charter details of its new acquisition. The NYSE-listed company has taken delivery of the recently purchased 4,750teu container vessel, APL Spinel, built 1996, which is chartered to APL (Bermuda) or to a guaranteed nominee or to another entity of the NOL Group for a minimum 24 months plus or minus 45 days at a daily rate of $24,750. The charterer has the option for a further 12 months, plus or minus 45 days, at $24,750 a day starting 24 months after delivery to the charterer. The charterer has a further option for 12 months plus or minus 45 days, at $28,000 a day starting 36 months after delivery of the vessel to the charterer. Options must be declared by the charterer not later than 20 months for the first option and 32 months for the second option after the delivery date to the charterer. Daily rates include a total commission of 2% paid to third parties and Diana Shipping Services. The employment is anticipated to generate around $16.7m revenue for the minimum period of the charter. Including the APL Spinel, the NYSE-listed Diana Containerships' fleet consists of nine panamax container vessels.

TIME CHARTER
F Aeolos (built 2001), 31,650dwt, del APS Recalada, t/c trip, approx $10,500 daily, redel UK / Continent range, Spot, (Bunge). F Mardinik (built 2011), 33,918dwt, del APS Conakry, t/c trip, $7,500 daily, redel Black Sea, Prompt, (Oldendorff). F Maroudio (built 2003), 56,000dwt, del North China, t/c 4 to 6 months trading, $10,500 daily, redel WW, Spot, (Norden).
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F Pythagoras (built 2012), 56,000dwt, del Japan, t/c trip via Vancouver, approx $12,250 daily, redel east coast India, Spot, (Canpotex). F Flag Mersinidi (built 2012), 57,000 dwt, del Lianyungang, t/c abt 4 to abt 6 months trading, $12,100 daily, redel WW, Mar 15 - 25, (JH Shipping). F Sea Moon (built 2009), 57,012dwt, del Persian Gulf, t/c 3 to 5 months trading, $10,500 daily, redel WW, Spot, (Thoresen). F First Endeavour (built 1994), 69,111dwt, del China / Japan / South Korea range, t/c trip via South Australia and Persian Gulf, $8,500 daily, redel passing Muscat outbound, Spot, (Egyptian Bulk Carriers). F Panamax Trader (built 1990), 69,338dwt, del East Mediterranean, t/c trip via the Black Sea, intention pig iron, $4,000 daily, redel US Gulf, Spot, (Blomerin). F Peter S (built 1995), 71,550dwt, del Liverpool, t/c trip via St Lawrence and Iraq, (breaching IWL and Aden transit), $18,000 daily, redel passing Muscat outbound, Mar 13 - 20, (Alfred C. Toepfer). F Samjohn Spirit (built 1994), 71,730dwt, del Rotterdam, t/c 12 months trading, $12,000 daily, redel WW, Mar 21 - 30, (Swiss Marine). F Lopi Z (built 1998), 71,982dwt, del US Gulf, t/c trip, $8,000 daily plus $190,000 BB, redel Jorf Lasfar, Mar 14 - 18, (Swiss Marine). F Assimina (built 1997), 72,176dwt, del China / Japan / South Korea range, 11 to 13 months trading, $10,500 daily, redel WW, Mar 25 - Apr 10, (EShips). F Iron Man (built 1997), 72,860dwt, del east coast South America, $14,000 daily plus $450,000 BB, redel Singapore / Japan range, Mar 22 - 31, (Pacific Bulk). F Alpha Happiness (built 1999), 72,890dwt, del China / Japan / South Korea range, t/c trip via NoPac, $8,000 daily, redel Singapore / Japan range, Mar 12 - 15, (Louis Dreyfus). F Deep Seas (built 1999), 72,890dwt, del Dalian, t/c trip via NoPac, $7,750 daily, redel Singapore / Japan range, Mar 10 - 15, (Sinoriches). F Marichristina (built 2001), 74,540dwt, del South West Passage, t/c 2 laden legs via US Gulf, $9,000 daily plus $210,000 BB, redel Skaw / Cape Passero range, Mar 20 - 25, (Copenship). F Dione (built 2001), 75,155dwt, del APS Ponta Da Madeira, t/c trip, $14,000 daily plus $400,000 BB, redel Singapore / Japan range, Mar 10 - 20, (Cargill). F Ecostar G.O. (built 2007), 75,160dwt, del Singapore, t/c 4 to 6 months trading, $9,500 daily, redel WW, Mar 9 - 12, (Norden). F Nirefs (built 2001), 75,311dwt, del Gibraltar, t/c trip via US Gulf, intention petcoke, $13,500 daily, redel Singapore / Japan range, Spot, (Cobelfert). F Intuition (built 2011), 80,281dwt, del Fangcheng, t/c 3 to 5 months trading, $10,500 daily, redel WW, Spot, (GMI). F Inspiration (Bunge re-let) (built 2010), 80,700dwt, del Phu My, t/c trip via Indonesia, $10,250 daily, redel China, Spot, (China Shipping Wylex). F Delmar (built 2011), 81,500dwt, del Jintang, t/c trip via NoPac and Iraq, $10,000 daily, redel passing Muscat outbound, Mar 8 - 12, (Glencore). F Anangel Argonaut (Cosco re-let) (built 2009), 177,835dwt, del Gibraltar, t/c trip via north coast South America, $4,000 daily, redel Rotterdam, Spot, (E.On).

VOYAGE
F Reunion (Polaris re-let) (built 1991), 130,000 met tons, 10% moloo coal, Taboneo / Samcheonpo, $6.82 per met ton, Fio, l/d 25,000shinc / 23,500shinc, Mar 16 - 21, (KEPCO).
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STO C K WATC H P R I C E S
Company Where Date traded day 7-day change Years high/low 1 year change Company Where Date traded day 7-day change Years high/low 1 year change

Aegean Marine Anek Lines SA

US GA GA US US US US US US US US

6.80 -0.20 2.21 +0.38

Attica Holdings SA
Baltic Trading Box Ships Inc Capital Product Costamare Inc Danaos Corp Diana Shipping DryShips Eagle Bulk Shipping Euroseas Excel Maritime FreeSeas Genco Ship & Trading Genmar Globus Maritime Goldenport Hellenic Carriers

0.21 -0.04
3.99 -0.40

8.85 -0.09
7.58 +0.16 3.99 -0.31 6.12 -0.54
8.59 -0.65

US 14.50 -0.37

Diana Containerships US

3.32 -0.19 1.51 -0.09 2.35 -0.26

US 1.87 +0.08 US 1.24 0.00 US 6.37 -0.55 US US 5.77 +0.67 UK 77.00 +5.81 UK 42.00 0.00

9.30/3.73 -0.92 Kiriacoulis Med 3.30/1.20 -0.77 Minoan Lines 0.67/0.15 NR Navios Holdings 9.33/3.83 -4.70 Navios Marit Acquis 11.58/6.44 NA Navios Marit Partners Nel Lines 11.33/4.85 -1.97 Neorion Syros 18.48/11.33 -1.85 NewLead Holdings 7.72/2.65 -0.98 Ocean Rig 13.15/4.58 -6.38 OLP 12.66/6.92 -4.00 OLTh 5.10/1.75 -1.40 Omega Navigation 4.10/0.88 -2.48 OSG Ship Mngt (GR) 4.87/2.21 -1.65 Paragon Shipping 4.84/1.41 -2.75 Safe Bulkers 3.49/0.36 -1.88 Seanergy Maritime 12.37/4.15 -5.77 Star Bulk Carriers NT Stealthgas 2.77/0.04 10.84/2.50 -2.95 TEN 123.00/59.80 -36.00 Top Ships 70.00/40.00 -21.50 Torm

GA GA US US US GA GA US US GA GA US US US US US US US US US US

0.39 2.27 4.14 3.40 15.98 0.068 0.17 0.52 16.89 10.90 11.51 0.16

-0.01 0.00 0.00 -0.06 -0.38 0.00 -0.03 -0.47 -0.66 +0.05 +0.01 0.00 8.32 -0.74 0.89 +0.06 7.27 -0.24 -0.33 -0.09 -0.02 +0.07 -0.16 -0.08

0.78/0.30 -0.25 3.22/1.34 -0.57 5.99/2.88 -1.34 4.13/2.50 -0.58 21.38/11.06 -2.82 0.30/0.03 -0.11 0.34/0.07 -0.03 3.49/0.46 -1.82 NA 18.15/11.75 17.29/8.07 -4.00 16.78/8.80 -2.58 1.16/0.11 -0.98 35.45/7.86 -23.69 3.18/0.55 -2.19 9.59/5.28 -1.47 6.00/0.33 2.50/0.86 6.97/3.50 11.01/4.78 4.00/0.35 7.05/0.52 +2.61 -1.53 -1.05 -2.69 +1.52 -5.03

3.35 0.91 4.96 6.62 2.40 0.57

Where traded: US=United States of America; GA=Greece; UK=United Kingdom Prices: In currency of country where stock is traded: US $ - GA - UK pence NA: Not yet traded for full year NR: No record available of the year-back price NT: Not being traded at the moment.

Prices as of 08/03/2012

LEGAL OPINION
Death due to pre-existing sickness/ Not a labour accident
A cook was contracted to serve onboard a tanker vessel. He complained of a cold and was given relevant medicine and appeared to recover, but was found dead in his cabin the following morning. Medical reports in both Novorossiysk, where the vessel was, and in Greece, after he was brought home, referred to a heart attack due to the condition of his heart as the cause of death. His heirs sued for remuneration due to labour accident. It was proved the seafarer was not aware of the heart condition. It was further found no indications existed to alert the master and remaining crew of the seriousness of the situation; he himself was complaining of merely having a cold. Further, it was held the conditions of his employment were the usual for the nature of the work he was contracted to perform. In view of the evidence, the Court found that no labour accident had taken place, thus rejecting the claim of the heirs. Piraeus Court of Appeal Judgment no 283/2011, President: P. Tsandekidou, Rapporteur Judge: Ath.
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Tsoulos, Attorneys at law: I. Michailidis, P. Papatheodoropoulos, Maritime Law Review vol. 39, p. 300. NOTE: Despite the wide interpretation of labour accident, it seems pre-existing sickness, which is reasonably not traced by the master and crew and not known to the employer, does not amount to labour accident when appearing under no adverse and in sudden circumstances. From this case, one can also understand it is not often that all such conditions coexist to allow no proof of a labour accident. The legal column was written by Manolis Eglezos, Attorney at law, Manolis Eglezos & Associates Law Office, Piraeus

FROM THE MARKETPLACE

Greek seafarers are threatening to stage a series of rolling 48-hour strikes, possibly from March 15. The executive committee of the Panhellenic Seamens Federation (PNO) took the decision, March 6, to stage "the dynamic mobilisations"...."pending settlement of the claims of the seamen" with a decision on the timing of the strikes to be made at a forthcoming meeting, possibly March 15. PNO general secretary, John Halas said the government is attempting to instigate the dissolution of the Greek merchant marine and he called for a political figure to assume leadership of an autonomous Marine ministry, which will defend the interests of seafarers. The PNO is categorically opposed to the inclusion of seafarers in the planned all-embracing National Health Service Organisation (EOPYY) and demands the autonomy of the Seamens Pension Fund (NAT) be retained and the cuts in pensions be stopped.
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With the warmer weather approaching the operational framework of Piraeus port was discussed during a long meeting at the Piraeus Port Authority (PPA), Akti Miaouli hq, chaired by president and ceo, George Anomeritis. In attendance were representatives of the Harbour Corps, the Port police and Traffic police of Piraeus, the Piraeus Customs Office, the International Maritime Union, professional bodies from the coastal ferries and cruising sectors as well as PPA managers. Coordination issues in relation to the port control and traffic control in the port area and the traffic arrangements on three roads leading to the port were thoroughly discussed. Other issues were related to taxis and public transportation within the port area, and the full operation from May of the new Cruise Passenger Terminal B (Themistocleous). During autumn, projects involving the Piraeus metro station are expected to begin, which will bring some changes in the functioning of the port in that vicinity.

n US investment bank Goldman Sachs has declined to comment on reports in the Danish press that it is looking to put forward a proposal to Torm, the struggling Danish shipowner, 52.3% controlled by Greek shipowner Gabriel Panayiotides. The Copenhagen-listed tanker owner has spiralling debt and has had to seek repeated deferrals on its debt repayment and loan covenants as it negotiates with its main banks over restructuring. Danish newspaper Jylands Posten reported Goldman Sachs could be looking to strike an equity deal, as could John Fredriksen who has funds after his Hemen Holdings recently withdrew $1bn worth of shares from its offshore business Seadrill. The cash is being lined up by Fredriksen to grab distressed assets and low newbuilding prices. n

Star Bulk Carriers capesize bulker Star Polaris delivered in November is to be repaired at a facility in Romania after sustaining hull damage while entering the Turkish port of Eregli. The Nasdaq-listed owner says the 180,000dwt ship has been declared off-hire by its charterers Louis Dreyfus Commodities Suisse as it will be out of commission for around 30 days. March 2, Star told
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investors: "The company has commenced an investigation into the circumstances of the incident and has reserved its rights relating to the unsafeness of the port." Star said the "company expects the cost of the repairs to be covered by the vessel's hull and machinery insurance policy, subject to the applicable terms". Star Polaris is on charter for two years at $16,500 a day with a further optional year at $19,000 daily.
n Greece wants to delineate exclusive maritime economic zones, while proceeding with the exploration and exploitation of potential offshore oil and natural gas deposits, Energy minister, George Papaconstantinou said, reports Bloomberg. The United Nations Convention on the Law of the Sea allows maritime states to establish areas EEZs which extend from the sea bed to the surface and as far out as 200 nautical miles (370 kilometers, 230 miles) from their territorial waters limit. These states have the right to natural resources in the area, including oil and gas. "In no way is Greece willing to not exercise all its sovereign rights and these include EEZs," Papaconstantinou said February 29. "EEZs are a tool Greece intends to use, in line with its overall policy." Any move by Greece to try to establish an EEZ in the Aegean Sea could raise objections from neighbouring Turkey. The two countries have yet to agree on the size of their territorial waters and on the delimitation of the continental shelf between the two states. Several Greek islands in the eastern Aegean lie only three nautical miles from the Turkish coast. Papaconstantinou said the difficulty with Turkey is that it isn't a signatory to the Law of the Sea Convention. Greece will restart discussions with Egypt and Libya and will talk to Albania and Italy, where such agreements are in place, while it is "co-operating closely" with Cyprus, said Papaconstantinou.

ABS Nautical Systems has signed new contracts with Greece's Millenia Maritime and TMS Tankers by which both companies will benefit from the ABS Newbuild Programme which offers free software to ABS-classed vessels built after January 1, 2009. Millenia Martime will be installing the Hull Inspection and Maintenance & Repair modules from the NS5 Enterprise software suite on nine of its ABS-classed chemical carriers as a way to test a potentially more user-friendly system. These modules provide the ability to track the condition of a vessel's structure throughout its service life and allow operators to generate a preventive maintenance plan that is easy for the crew on board to use on a daily basis. ABS said TMS Tankers was looking for a way to improve the information they provide to their crews, as well as a more efficient way to generate reports for better analysis. They will utilise the Hull Inspection module on 37 of its ABS-classed vessels, which, says ABS will enhance their ability to manage vessel maintenance and repair.
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Tighter house-keeping and a strong showing from its s&p desk saw London-listed Clarksons, the world's largest shipbroker, boost its dividend for the ninth successive year after pre-tax profit in 2011 swelled to 35.4m ($55.9m) from 32.4m in 2010. Clarksons' improved profit came despite a fall in revenue from 202.6m to 194.6m year-on-year. Andi Case, ceo, said: "2011 saw an even more difficult and challenging rate environment than 2010 in most shipping markets. Not only did the demand/supply imbalance of the past few years continue, but the market also had to contend with a
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worsening debt market. "Against this backdrop the company performed well, increasing market share in most markets, and benefiting from the breadth of its offering to take advantage of those markets which performed relatively well." Chairman, Bob Benton said "the anticipated fall in operating profit, due to the weaker US dollar and challenging market conditions has been offset by the effects of management decisions over the previous 12 months to reduce financing costs and exit unprofitable business lines." Shipbroking was the main source of revenue despite results from the division slipping from 41.3m to 35.9m. Clarksons has reached a final settlement in its long running dispute with Russian shipowner and businessman, Yuri Nikitin. Under the deal Nikitin is to pay a further $7m making $13m paid in all to the shipbroker to end claims arising out of the Sovcomflot and Novoship corruption cases. Cases have been in the high court in London since 2009. The judge in the key corruption trial, Justice Andrew Smith rejected a claim of almost $21m brought against Clarksons by Nikitin with the Russian businessman subsequently denied leave to appeal this judgment. Before the main Sovcomflot-Novoship corruption trial against Dmitry Skarga and Nikitin trials the shipbroker paid out more than $50m to buy its way out of the litigation.
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High-profile research guru Martin Stopford, 64, has quit as a director of Clarksons. Clarkson chairman, Bob Benton, said: "After seven years on the board Martin has decided, as always anticipated, to retire from his position as a Clarkson PLC executive director. He will continue to act as president of Clarkson Research Services and consultant to the group on maritime economics."
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Commanding commodity trader, Glencore, has forward chartering commitments worth almost $2.2bn, about 50% of it is for chartering activities over the next two years. However, this is 17% down on the $2.6bn in chartering commitments held last year and reflects the decline in charter rates. Commenting, Glencore said of the $2.2bn, about $570m was spent with "associated companies", up over 40% on the $325m reported in 2010. Glencore is one of the largest charterers of dry and wet tonnage, which until last summer was privately owned. It has a major tie-up with Russia's Sovcomflot in a product carrier jv launched in late 2010. With pooling arrangements their fleet is some 40 ships including MR products tankers, aframaxes and LR2 vessels. Glencore also has ownership tie-ups with Greece's tanker owner Omega Navigation, Italy's d'Amico International and Singapore's Marco Polo but its chartering activities overshadow ship owning which are done through its ST Shipping subsidiary.
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ON AND OFF THE AKTI MIAOULI

PEOPLE & PLACES
The general secretariat of Aegean organised a meeting in Rhodes, March 8, in cooperation with the prefecture of South Aegean, to discuss the "Ferry network in Dodecanese: Issues and possibilities of development". Participating were mayors from Dodecanese islands; the trade and financial Chamber of Dodecanese; the president of the Hellenic Chamber of Shipping (HCS), George Gratsos; md of financial consultants, XRTC, George Xiradakis; representatives of the ferry owners unions; a representative of the Panhellenic Seamens Federation (PNO) and the president of the tourist and
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travel agencies. General secretary of Island Policy, Nikolaos Litinas, in cooperation with the prefect of the South Aegean region, Yiannis Mahairidis, took note of all opinions expressed, prior to the meeting of the country's Council of Coastal Transportation (SAS), March 9, which will discuss issues involvoing the allotment of ferry services. The Hellenic Shipbrokers Association (HSA) awarded the Shipbroking Gnosis Certificate for the year 2012 to some 33 candidates who participated and successfully passed the examinations conducted by the HSA and co-signed by the University of Piraeus in 2011. In conjunction with the awards event at the Metropolitan Hotel, February 29, HSA president, John Pachoulis, cut the association's 2012 New Year vassilopita.
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Jonathan Bond will assume the md duties of Maersk Broker Hellas office in Athens. Having since 2006 successfully developed and expanded the bulk chartering activities of Maersk Broker (UK), Bond will head up the Hellas office, established in 2001, and which currently employs some 15 brokers and staff covering container vessel chartering, dry cargo chartering, and tanker chartering as well as newbuilding business, respectively s&p, related to the same tonnage segments. Bond will head up expansion of the current activities with recruitment of additional senior brokers from the Greek market high up on his agenda, underlining the importance the A.P. Moller Group places on the Greek market.
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Sea Power Hellas has been appointed as exclusive agents for the Ballast Water Treatment System product range of SAMKUN Century, the ASRA Plasma, as well as for the spare parts' supply of all their existingproducts. Sea Power's Peter Apostolakos noted the South Korean company SAMKUN "has been engaged in producing advanced innovative new technologies for the last 20 years, in order to be able to provide the best quality and service to all their customers world wide covering their increasing demands in the shipping business." He said its BWTS is "eco-friendly and requires low power consumption." Sea Power Hellas is located at: 2 Efplias Street, 185 37 Piraeus, Tel: +30 210 4284 170 / Fax: +30 210 4284 177 / E-mail: seapower@sph.gr
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Twenty-two students studying logistics at the University of Piraeus attended the LIFE RAIL Avtoritas course, with the objective to bring the concepts of intermodality and sustainable rail freight transport to the students of transport. Held in Barcelona, Spain, March 1-2, it was the first LIFE course by Greek students. The course was organised by the Escola Europea de Short Sea Shipping and was composed of theoretical sessions in the classrooms of the Escola and of visits to the Logisitcs Activities Area, the Barcelona Container Terminal TCB and to the wider Barcelona port.

Inchcape Shipping Services (ISS), the maritime and cargo services provider, has established a new office in Malta. ISS Malta follows the ending of a sub agency agreement with the local firm of Thomas Smith. The new office, headed up by Ray Turban, will be supported by ISS Greece, headquartered in Piraeus. Christos Makrialeas, md, ISS Greece, said: "Geographical expansionin the Mediterranean and beyond is a key strategic objective of ISS. Opening of ISS Malta, which closely follows the opening of ISS Algeciras earlier this year, is further evidence of our commitment to provide world-class maritime and cargo services to our customers. We are confident ISS Malta will be a success and the same model will be followed in other countries in the Mediterranean area." Turban joins ISS from a local agency firm and has 25 years industry experience, extends to all agency activities, covering all cargo commodity types, ship husbandry matters, crew logistic services, ship to ship, cruise, liner and vessel repairs.
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In the seven years since Minoan Line created its 'Minoan Lines Bonus Club' membership has reached 175,000 demonstrating its appeal to the traveling public, both in Greece and abroad.
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Passenger Zacharenia Andreadaki was the lucky one with registration number 175,000 and as a reward for her dedication Minoan Lines upgraded her to a Gold Card, offering unique benefits that come with it. The lucky passenger will be able to enjoy a trip for two in a private luxury cabin in one of the modern fast ships serving Minoan's Iraklion - Piraeus line. Joining the "Minoan Lines Bonus Club" is easy, just visit the website: www.minoan.gr and register. An automatic 100 points is earned and members then collect points from their first trip, with a ratio of 1 = 1 point. Membership also means a discount on tickets and in the ship's restaurants and bars.

BULLETIN BOARD
The seventh technical meeting of the Greek Section of The Society of Naval Architects and Marine Engineers (SNAME) of the 2011-2012 season, will take place March 15 at 19:00hours in the auditorium of Maran Tankers, 354 Syngrou Avenue, Kallithea, Athens. During the meeting Apostolos D. Papanikolaou, Professor at the School of Naval Architecture and Marine Engineering and director of the Ship Design Laboratory at the National Technical University of Athens will introduce 'Holistic Ship Design: Theory and Practical Applications' and describe the holistic approach to ship design optimisation, the generic ship design optimisation problem and demonstrate its solution by use of advanced optimisation techniques for the computer-aided generation, exploration and selection of optimal designs. Indeed, the application of the proposed methods to the integrated ship system for life-cycle optimisation problem remains a challenging but straightforward task for the years to come. Participation fee is 5 for members and students and 10 for nonmembers. Further information: Greek Section of SNAME: Tel: 210 4528 200 / Fax: 210 4526 260 / E-mail: sname@elkco.gr
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Prior to the above mentioned meeting of The Society of Naval Architects and Marine Engineers (SNAME), at 17:00 hours, the Greek branch will hold its agm and elections for the executive and audit committee for a two-year term commencing on July 1. Candidates for the five-member executive are: Paris Dimitriadis, Nikos Dionissopoulos, Starvros Hatzigrigoris, John-Yiannis Kokarakis, Christos A Kontovas, Petros Lalangas, Costas Maounis and Apostolos D Papanikolaou. As the audit committee comprises three members and there are three candidates, the committee will comprise: Gregory Grigoropoulos, Lambros Kaiktsis and Harilaos Psaraftis.
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The DNV Academy Piraeus is holding an occupational health and safety management systems (OHSAS) course, March 19-20. Objective of the course is to provide the required insight in the OHSAS 18001 standard and the utilisation of one of the important management tools for improvement, 'internal auditing'. Internal auditing will be preferably in combination with other standards as ISM Code and ISO 14001 if adopted within a company. The course is being given as more and more leading shipping companies are being certified by the OHSAS 18001:2007 standard. The OHSAS 18001 standard is an effective tool to achieve the highest levels of managing safety and health in the shipping industry and is highly appreciated by key stakeholders. Deadline for registration: March 12, and the course fee is 850 a delegate.
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The DNV Academy is giving a two-day 'Superintendent' course, March 20-21. The course explains the basics between class and statutory rules as well as their implication on the operation of the vessel, gives an explanation of the latest requirements of Marpol and Solas latest, outlines a practical approach to structural problems, ISM and ISPS as well as machinery survey schemes. Deadline for registration is March 13 and a fee of 800 is charged per delegate.
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The DNV Academy Piraeus is also holding an introductionary ISO 14001 course and an ISO
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14001 EMS auditing course, March 21-23 with the deadline for registrations March 12. Approximately 200,000 companies world-wide have been registered to one of the ISO standards developed to allow organisations to formulate policy, objectives and targets and implement programmes within a structured management systems framework. Simultaneously, legislative requirements, important public issues and plant-specific environmental concerns could all be considered. Organisations are free to establish objectives, targets, and operational controls based on an environmental evaluation that identifies significant environmental aspects. These objectives, targets and controls are then supported by environmental programmes and documented procedures as necessary. Companies seeking ISO 14001: 2004 compliance and certification need to begin with a strong management commitment to environmental responsibility and training to this issue. The ISO 14001 Introduction course is set for March 21-22 and will cost 850 / delegate. The ISO 14001 EMS Auditing course, on March 23, will cost 480 / delegate and the combined course 1,200 / delegate. Discounts for multiple delegate registrations. Further information about these DNV courses: Vassilia Dimitrakou, Training Coordinator, DNV Academy Piraeus Maritime Service Centre, Greece, Tel: 210 4100 200 / Fax: 210 4226 708 / E-mail: Vassilia.Dimitrakou@dnv.com
n An ISM Code & ISPS Code internal auditor training course is being given by Lloyd's Register (LR) in its Piraeus training centre March 19-21 with registration by March 14. This three-day course, which is a combined ISM, ISPS and internal audit course, will help attendees develop a practical approach to the interpretation and application on both the International Safety Management (ISM) Code and the International Ship and Port Facility Security (ISPS) code, through a highly participative combination of presentations, group discussions, case studies plus individual and syndicate exercises. The focus will be on: Requirements of the ISPS Code and their interpretation; Requirements of the ISM Code and their interpretation; Management systems and the risk management principles that underpin the ISM and the ISPS Codes; and The principles and practices of auditing.

A pratical approach to ship surveys is the focus of a Lloyd's Register (LR) training course March 20,-21 in the classification society's Piraeus Training Centre. With registration by March 15 the twoday course gives practical advice on survey planning and preparation, and details what actions should be taken during a survey. It is a highly participative use of group and individual exercises based on LR's experience within shipping. Further information about the LR seminars: Jenny Filippakou, Marine Training Business Specialist, Tel: 210 4580 819 / Fax: 211 2686 941 / E-mail: lloydspiraeustraining@lr.org
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Offshore exploration, production, maritime transportation, maintenance, investments and finance will come into focus at the 1st Mare Forum Cyprus 2012, titled: Eastern MediterraneanOil and Gas, to be held June 12 at the Intercontinental Aphrodite Hills Resort Hotel, Cyprus. Politicians, executives from the oil, gas and shipping and maritime industries, trading and brokerage companies; key investors in shipping, bankers, consultants and entrepreneurs; classification societies, financial institutions, regulators and the media are expected to gather at the conference to exchange views, visions and valuable information. Further information: Website: www.mareforum.com/Mare_Forum_Cyprus
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132 Syngrou Avenue, 176 71 Kallithea, Athens, Greece Tel: +30 210 9214.205 l Fax: +30 210 9214.675 l E-mail: amaroid@otenet.gr l Website: www.newsfront.gr Editor: David Glass, Deputy Editor: Panagiotis Nikolakopoulos, Subscriptions Manager: Sophia Bacoula It is illegal except for the personal use of the registered subscriber to reproduce part or all of the contents of this publication by any means including photocopying, fax and electronic data capture. The publishers reserve the right to cease providing this publication in cases where abuse of copyright is evident, and to take appropriate legal action. While every effort is made to ensure information contained in this publication is correct, the publishers accept no responsibility for any inaccuracies that may occur.

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