The combined Australian and New Zealand staff of CTF 150 worked with CMF and other agencies to coordinate maritime security operations to disrupt the activities of extremist terrorist organizations.

The joint Australian effort led by HMAS PARRAMATTA intercepted, boarded and searched the suspected vessel. The boarding was conducted in accordance with International Law as the vessel was of unknown nationality. The search revealed 240 kilograms of amphetamine and heroin concealed in bags of flour and rice. The ships’ boarding team destroyed the illicit cargo.

In describing the success of the mission Commodore Jonathan Mead, Commander CTF 150 stated:

‘This represents the accumulation of many months of hard work, planning and international co-operation. This seizure marks the first interdiction of illicit cargo by a CMF asset in over two and a half years. I am advised that the volume of narcotics signifies a street value of approximately 5 million Australian dollars. The destruction of this illicit cargo is a victory for those who hope to create a lawful and stable maritime environment and is a blow for terrorists who seek to fund their activities through the transportation of narcotics on the high seas.”

HMAS PARRAMATTA has been on task since leaving Sydney in September 2011 and is a highly professional asset and a key player in international maritime security operations. CMF includes participation and contributions from 25 nations. PARRAMATTA is the 27^throtation by a Royal Australian Naval warship to the region since 2001.

Commanding Officer of HMAS PARRAMATTA, Commander Guy Blackburn described the mission as a significant event:

“This was a great day for HMAS Parramatta, a great day for the Combined Maritime Forces and a great day for the Australian forces in the Middle East area of operations. The crew of HMAS Parramatta is very proud of this result as it comes after months of hard work and the persistence of many agencies. Parramatta has been on task since leaving Sydney in September 2011 and is a highly professional, key player in our maritime security operations.”

CMF operates to defeat terrorism, prevent piracy, reduce illegal trafficking of people and drugs, and promote the maritime environment as a safe place for mariners with legitimate business. When called upon, CMF also responds to SOLAS and humanitarian crises.

Click here to view the embedded video.

The crew of the 38-foot sailboat Liahona contacted the Coast Guard Cutter Kiska Tuesday at approximately 5:30 p.m via satellite phone. Their sailboat became disabled in seas of 6-to-13 feet and winds of 34 mph. The vessel reportedly suffered damage to its top forestay and its engine overheated. The crew attempted to rig a makeshift sail but completely lost its mast in the extreme conditions.

Coast Guard Joint Rescue Coordination Center Honolulu contacted the 893-foot container ship Horizon Reliance to render assistance under the Automated Mutual Assistance Vessel Rescue System (AMVER). The Horizon Reliance was 149 miles northeast of their Liahona’s location.

At 1:30 a.m. Wednesday morning the Horizon Reliance reached the disabled vessel. As the Horizon Reliance approached the vessel, weather conditions caused the bow of the Horizon Reliance to strike the sailboat.  The Liahona began taking on water and sank, forcing the three passengers into the sea.

The Horizon Reliance maneuvered and lowered a Jacobs’s ladder to reach the survivors. A 29-year-old man was rescued at 2:30 a.m. by the crew of the Horizon Reliance, but the others, a 32-year-old man and 9-year-old boy, drifted away. Both were rescued at 3:20 a.m.

All three sailors are reportedly in good condition.

“We are thankful the Horizon Reliance was in the right place at the right time to come to the aid of these individuals,” said William A. Hamlin, Horizon Lines Senior Vice President of Operations. “We commend Captain Kelleher and his crew for their skilled seamanship in accomplishing a successful rescue despite very adverse weather conditions.”

“No rescue situation can be completely planned for, the sea is ever changing and unforgiving,” said Cmdr. Mark Morin, District Response Manager. “The crew had life jackets with strobe lights on, which was critical in aiding to the Horizon Reliance to keep an eye on them and make the rescue.”

The Liahona was traveling from Puerto Vallarta, Mexico to Oahu, Hawaii.

The Kiska is a 110-foot patrol boat based in Hilo, Hawaii.

AMVER, sponsored by the U.S. Coast Guard, is a unique, computer-based, and voluntary global ship reporting system used worldwide by search and rescue authorities to arrange for assistance to persons in distress at sea. With AMVER, rescue coordinators can identify participating ships in the area of distress and divert the best-suited ship or ships to respond.

For more information about AMVER visit www.amver.com.

Image courtesy Orient Overseas Container Line

Members of the G6 Alliance announced today that their groundbreaking cooperation in Asia-Europe container shipping will begin operation in the first week of March – one month ahead of schedule.

“We are eager to roll out our competitive products to benefit customers by offering a comprehensive and increased coverage of 40 ports in the Asia-Europe market with more sailing frequency,” the members said in a statement.  “Customer response to the G6 Alliance is strong, the latest economic condition in the trade supports the timing of the launch, and we are ready to meet the market’s expectations.”

The G6 Alliance, serving the Asia-to-Europe-and-Mediterranean market was announced last December.  The G6 Alliance members are the carriers in the Grand Alliance and New World Alliance: APL, Hapag-Lloyd AG, Hyundai Merchant Marine, Mitsui O.S.K Lines, Nippon Yusen Kaisha and Orient Overseas Container Line.

The G6 Alliance will launch six services between Asia and North Europe in the first week of March.  Those serving Japanese ports will commence after completion of consultations with the Japan Harbor Transportation Association and labor unions.

A seventh service will follow when it can be supported by sustainable trade conditions.  The service will provide direct coverage to the Bohai Bay ports in Dalian and Xingang.

The G6 Alliance will continue the existing Asia-Mediterranean Express Service (EUM) and will also launch a new Asia-Black Sea Express service (ABX) in the first week of April.

The base-plan port rotation of the G6 Alliance loops is as follows, subject to the confirmation of berth availability:

Loop 1

Kobe – Nagoya – Shimizu – Tokyo – Hong Kong – Cai Mep – Singapore – Jeddah – Rotterdam – Hamburg – Southampton – Le Havre – Singapore – Hong Kong – Kobe

Loop 2

To be finalized

Loop 3

Shanghai – Ningbo – South China – Singapore – Tangier – Rotterdam – Bremerhaven – Gdansk – Gothenburg – Rotterdam – Jeddah – Singapore – South China – Hong Kong – Shanghai

Loop 4

Ningbo – Shanghai – South China – Singapore – Southampton – Hamburg – Rotterdam – Singapore – South China – Ningbo

Loop 5

Kwangyang – Pusan – Shanghai – South China – Singapore – Rotterdam – Hamburg – Thamesport – Singapore – Kwangyang

Loop 6

Kaohsiung – Xiamen – South China – Hong Kong – Singapore – Colombo – Southampton – Antwerp – Hamburg – Rotterdam – Jebel Ali – Singapore – South China – Kaohsiung

Loop 7

Qingdao – Shanghai – Hong Kong – South China – Singapore – Salalah – Le Havre – Rotterdam – Hamburg – Southampton – Tangier – Salalah – Singapore – South China – Qingdao

ABX Service

Ningbo – Shanghai – South China – Hong Kong – Singapore – Port Said – Ashdod – Istanbul – Constanza – Odessa – Istanbul – Ashdod – Port Said – Singapore – Ningbo

EUM Service

Pusan – Shanghai – Ningbo – South China – Hong Kong – Singapore – Port Klang – Jeddah – Damietta – Genoa – FOS Sur Mer – Barcelona – Valencia – Damietta – Jeddah – Singapore – Hong Kong – Pusan

Rabaul Shipping fleet, image courtesy New Dawn FM 95.3

In heavy weather last week, the passenger vessel, MV Rabaul Queen, owned by Rabaul Shipping, capsized and sank off Papua-New Guinea.  246 people were rescued, yet over 100 passengers are presumed dead.

The Australian Maritime Safety Administration (AMSA) praised the efforts of a number of merchant vessels involved in the high seas rescue.

AMSA would like to thank the merchant vessels, Australia Government and private aircraft, and local PNG helicopters for their assistance in the search.

AMSA commends all of the ships that responded to our distress broadcast over the four days of the incident and which, together, saved 246 people that otherwise almost certainly would have been lost. A list of ships involved is below.

• MOL Summer
• MSC Carole
• Violet
• Zong He
• Cap Scott
• Alcem Lugait
• Kwangtung
• C. Oasis
• Hanjin Duesseldorf
• Lily Fortune
• Coral Ruby
• Vega Fynen
• Bougainville Coast
• Kyowa Orchid
• Goodwill

According to a Bougainville Radio Station however, the 3 remaining vessels owned by Peter Sharp, Chief Executive of Rabaul Shipping, have been seized by excombatants and grieving relatives of the missing.  The Autonomous Bougainville Government (ABG) has fully disassociated itself from the activities of these excombatants and has no part in the holding of these vessels.

Excombatants holding on to three ships owned by Peter Sharp will not release them until all the fate of Bougainville passengers are released to them.  They told the meeting with Bougainville chief administrator that they were not happy with the communication breakdown between the shipping company and the families of those who lost their lives.

IMO Secretary-General Koji Sekimizu has pledged IMO’s support for the Philippines in all facets of the country’s maritime development. 

IMO – the International Maritime Organization – is the United Nations specialized agency with responsibility for the safety and security of shipping and the prevention of marine pollution by ships.

Web site: www.imo.org

Methane Kari Elin, image (c) BG Group

LONDON (Dow Jones)–Shares in BG Group PLC (BG.LN) rose sharply Thursday after the company revised higher its outlook for earnings from a key division and gave fresh production guidance from its large Brazilian oil fields.

The company also said its fourth-quarter net profit rose by 43%, due largely to strong crude prices and its ability to divert liquefied natural gas, or LNG, cargoes to higher-value markets outside the U.S.

“The outlook for global gas and LNG demand is strong,” said Chief Executive Frank Chapman. “BG Group is well set to capitalize on these opportunities and is making good progress with delivering its plans.”

At 0906 GMT, BG Group shares were up 40 pence, or 2.7%, at 1485p.

Profits from the company’s LNG division, which cools natural gas and then ships it to more lucrative destinations, are now expected to be some 30% higher this year than previously thought. Chapman said the company now expected to beat its previous LNG supply target, of 20 million metric tons a year by 2015, and could even reach 30 million tons a year by 2020.

“Our LNG business is set fair with the prospect of excellent profit momentum for many years,” said Chapman.

Anticipated output from its large Brazilian offshore oil fields was also revised upwards. Chapman said BG Group now expects its net share of production from the Santos Basin to number 600,000 barrels of oil equivalent by 2020, a 10% increase on its previous target.

The U.K.’s third-largest natural gas producer said net profit for the three months ended Dec. 31 totaled $1.34 billion, compared with $940 million for the fourth quarter 2010.

BG’s bottom line benefited from an unusually low tax rate during the period, but even stripping this out, the result was still 8% higher than consensus, said JPMorgan analyst Fred Lucas.

Adjusted for exceptional costs or benefits not derived from regular operations, BG’s profit for the quarter was $1.48 billion, far above average expectations of $1.11 million in a Dow Jones Newswires poll of nine analysts.

Total oil and gas production was 654,000 barrels of oil equivalent a day, a fall of 1% on the year and below analyst expectations of 669,000 barrels of oil equivalent a day. The slight decline highlighted a frustrating year for BG in this regard, with long maintenance delays in the North Sea and unrest in Egypt and Tunisia curbing much of the annual production growth that had been anticipated at the beginning of 2011.

Revenue for the quarter was up 34%, to $5.77 billion, and diluted earnings per share were 39.1 cents compared with 26.6 cents the previous year. In keeping with its larger peers Royal Dutch Shell (RDSA) and BP PLC (BP), BG also said it would boost pay outs to shareholders, raising its annual dividend 10%, to 2160 cents a share.

-By Alexis Flynn, Dow Jones Newswires

Image courtesy Knightsbridge Tankers

Bermuda-based Knightsbridge Tankers Ltd (NASDAQ:VLCCF) reported yesterday a net income of USD 9.5 million (EUR 7.1m) for the fourth quarter of 2011, up from USD 6 million a year earlier.  Net income increased primarily due to an improvement in the results of the VLCC Kensington, which is operating in the spot market.  Last year at this time, VLCC Kensington was in drydock which resulted in a subsequent revenue loss of $3.6M.

The average daily time charter equivalents (“TCEs”) earned by the Company’s VLCCs and Capesize vessels were $26,900 and $36,500, respectively, compared with $25,300 and $36,800 in the preceding quarter.

Operating revenue grew to USD 25.9 million from USD 21.6 million. Earnings per share (EPS) improved to USD 0.39 from USD 0.25. The board of directors proposed a dividend of USD 0.50 per share for the fourth quarter of 2011.

Net income for the full 2011 declined to USD $34.4 million from USD $38.6 million in 2010. EPS fell to USD $1.14 from USD $2.02. Revenue rose to USD $96.2 million from USD $95.9 million.

BREAK-EVEN FIGURES

As of February 2012, Knightsbridge reports an average cash breakeven rate for the remainder of 2012 for its VLCCs and Capesize vessels, (excluding bareboat charters), of $14,100 and $7,600, respectively, per vessel per day.

The VLCCs which are on bareboat charters have a cash break even rate of $5,300 per vessel per day.

THE TANKER MARKET

The market rate for a VLCC trading on a standard ‘TD3’ voyage between the Arabian Gulf and Japan in the fourth quarter of 2011 was WS 54, representing an increase of approximately WS 7.5 points from the third quarter of 2011 and a decrease of approximately WS 4 points from the fourth quarter of 2010. Present market indications are approximately $20,000/day in the first quarter of 2012.

Bunkers at Fujairah averaged $672/mt in the fourth quarter of 2011 compared to $664/mt in the third quarter of 2011; an increase of approximately $9/mt. Bunker prices varied between a low of $629/mt at the beginning of October and a high of $711/mt on November 14, 2011.

The International Energy Agency’s (“IEA”) January 2012 report stated an average OPEC oil production, including Iraq, of 30.53 million barrels per day (mb/d) during the fourth quarter of the year. This was an increase of 0.6 million barrels per day compared to the third quarter of 2011 and an increase of 1.1 million barrels per day compared to the fourth quarter of 2010.

IEA further estimates that world oil demand averaged 89.53 mb/d in the fourth quarter of 2011, which is the same level as the previous quarter, and a decrease of approximately 0.25 mb/d from the fourth quarter of 2010. Additionally, the IEA estimates that world oil demand will average approximately 90 mb/d in 2012, representing an increase of 1.2 percent or approximately 1.07 mb/d from 2011.

The global VLCC fleet totalled 594 vessels at the end of the fourth quarter of 2011, up from 584 vessels at the end of the previous quarter. 11 VLCCs were delivered during the quarter whilst one was deleted. The orderbook counted 123 vessels at the end of the fourth quarter, down from 131 orders from the previous quarter. Three new orders were placed during the quarter, and the current orderbook represents about 21 percent of the VLCC fleet. According to Fearnleys the single hull fleet stands at 30 vessels.

Greatship Vimla is a Class II DP vessel equipped with Fire Fighting Capability and has been built complying with the new SPS Code 2008, capable of supporting offshore exploration and production.

With the delivery of Greatship Vimla, GIL and its subsidiaries currently own and operate four PSVs, nine AHTSVs, three MPSSVs, three ROVSVs and two jack up rigs. GIL and its subsidiaries also have an order book of three ROVSVs in Sri Lanka and one jack-up rig in Dubai.

GIL is a subsidiary of The Great Eastern Shipping Company.  The vessel’s full specifications can be found HERE.

Teekay Corporation (NYSE:TK) and König & Cie are pleased to announce that Diamond S Shipping Group has joined the Gemini Tankers Suezmax Pool as a full member. The Gemini fleet currently has 17 modern Suezmax vessels. This is expected to grow to 26 vessels by the end of 2012 as vessels redeliver from time-charters and Diamond S’ eight additional newbuildings are added to the Pool.

“We are delighted that Diamond S Shipping has joined the Gemini Tankers Suezmax Pool. The addition of their eight, high quality newbuild Suezmax tankers delivering over the course of 2012 further modernizes our fleet and solidifies our position as the premier Suezmax tanker pool,” commented Håkan Svedin, Gemini’s Managing Director.

“We have a great team in place providing a transparent, reliable and flexible management service to our customers, with whom we have long-term relationships. To them we can offer a fantastic modern Suezmax fleet operating across the globe, with a focus on the Atlantic spot markets,” Mr. Svedin added.

Craig Stevenson, CEO, Diamond S Shipping Group commented, “We are pleased to pool our Suezmax tankers with Teekay and König in the Gemini Tankers Suezmax Pool. We are excited by the opportunities this relationship will create for Diamond S. We were attracted by the modern fleet of Suezmax tankers operated by the Gemini Tankers Pool and their established track record of successfully managing that fleet in the key Suezmax tanker markets around the world.”

Bruce Chan, President, Teekay Tanker Services, commented, “Teekay is very pleased to continue with its long-standing cooperation with König, and excited about working with a first-class owner in the Craig Stevenson-led Diamond S Shipping. The addition of eight, high quality newbuild Suezmax tankers over the course of 2012 ensures that Gemini will be able to continue to provide excellent service to our customers.”

Tobias König, Managing Partner, König, agreed. “We have worked with Teekay for many years, and believe that the new relationship we have with Diamond S will support the long-term success of Gemini Tankers,” said Mr. König. “We have real competence in the pool: each partner brings a proven commercial record, strong financial backing, and long-term commitment to the Suezmax segment,” continued Mr. König.

“We have strong, reliable pool owners who are with us for the long-term,” added Mr. Svedin. “However, we will also consider taking further owners and tonnage into the Pool over time. The future for Gemini Tankers is exciting and the team will continue providing the best service in the market to our pool partners and customers.”

About Gemini

Gemini commercially manages a pool of Suezmax tankers. The Gemini team, including key chartering, commercial operations and post-fixture staff, operate from the pool’s headquarters in Stamford Connecticut, headed by Managing Director, Håkan Svedin, who has successfully led the Gemini Pool since 2009.

About Teekay

Teekay Corporation provides a comprehensive set of marine services to the world’s leading oil and gas companies, helping them seamlessly link their upstream energy production to their downstream processing operations. Teekay is growing its operations in the offshore oil production, storage and transportation sector through its publicly-listed subsidiary, Teekay Offshore Partners L.P. (NYSE:TOO), and its investment in Sevan Marine ASA (OSE:SEVAN). Teekay also continues to expand its significant presence in the liquefied natural gas shipping sector through its publicly-listed subsidiary, Teekay LNG Partners L.P. (NYSE:TGP), and seeks to grow its conventional tanker business through its publicly-listed subsidiary, Teekay Tankers Ltd. (NYSE:TNK). With a fleet of approximately 150 vessels, offices in 16 countries and approximately 6,300 seagoing and shore-based employees, Teekay transports approximately 10 percent of the world’s seaborne oil and its reputation for safety, quality and innovation has earned it a position with its customers as The Marine Midstream Company.

Teekay’s common stock is listed on the New York Stock Exchange where it trades under the symbol “TK”.

About König:

König & Cie. is a leading privately owned developer of investment projects as well as a fund & asset manager in Germany, and has currently €4.2 billion assets under management. Investment projects have focused on the following industries: Shipping, Infrastructure, Real Estate, Private Equity & Renewable Energy. König currently controls a fleet of 83 vessels ranging from Container Vessels, Tankers, Bulk Carriers and a Car Carrier. König sponsors and manages the stock listed “Marenave Schiffahrts AG” that controls a fleet of currently 13 vessels. König issued over 80 KG-Funds approved by the German SEC, thereby investing into shipping investments valued at approx. €2.9 billion. The company is representing approx. 31,000 investors with about 42,000 KG-shares.

About Diamond S

Headquartered in Greenwich, Connecticut, USA, Diamond S Shipping Group is a global owner/operator of modern, efficient crude and refined product tankers. Diamond S Shipping’s current fleet consists of 30 medium-range refined product tankers on long-term charter, a newly built Suezmax tanker operated in the spot market and seven newbuild Suezmax and two LR2 tankers scheduled for delivery in 2012 and 2013. Diamond S Shipping has invested or committed US$2.0 billion in building its fleet.

At a press conference in Singapore, Germanischer Lloyd’s FutureShip announced its cooperation with Iceland-based Marorka. Together, the two companies will integrate each other’s product portfolios in the field of fuel efficiency, energy management and related consulting. The announcement was made on the occasion of FutureShip’s opening of an office in Singapore.

Khorshed Alam, Vice President of energy efficiency consulting firm FutureShip remarked, “Energy efficiency gains ever-more importance in the maritime industry.  This cooperation will give us the opportunity to even better serve the need to monitor ship performance, raise energy efficiency awareness onboard and onshore, and enable shipowners to seamlessly manage the energy performance of their entire fleets.”

“We are very excited that via this cooperation with FutureShip we will be able to serve the shipping industry with our long experience and advanced energy management products on a significantly broader scale”, said Dr. Jón Ágúst Thorsteinsson, Managing Director of Marorka.

Increasing fuel efficiency

Trim is one of the central drivers of energy efficiency in ship operation. FutureShip’s “ECO-Assistant”, a stand-alone software application delivers the optimum trim angle for a specific ship when provided with a few simple operational parameters. Sold to more than 200 ships already, the tool regularly achieves efficiency improvements of up to 5%. FutureShip, a GL company, also offers technical and management support from conceptual design to ship operations with special focus on energy efficiency.

Alongside its own solutions, FutureShip will now offer selected Marorka hardware and software products. The stand-alone “Ship Performance Monitoring System” calculates fuel efficiency based on fuel consumption, GPS and log speed, propeller power and main engine RPM. It displays performance values and trends on a touch panel computer, which collects measurement data, creates real time performance analyses, and records historical performance data that can also be sent to shore for further analysis with “Marorka Online”.

Marorka SPM is designed to display ship performance in a simple and comprehensive way.

The basic solution…

Marorka is a stand-alone Ship Performance Monitoring Systems that calculates fuel efficiency based on fuel consumption, GPS and log speed, propeller power and main engine RPM. It displays performance values and trends on a touch panel computer, which collects measurement data, creates real time performance analyses, and records historical performance data that can also be sent to shore for further analysis with Marorka Online.

The advanced solution (OP3)…

Marorka Maren OP3 provides a detailed ship performance overview.

As an advanced alternative to basic performance monitoring, the Marorka Maren Operating Platform (OP3) will be offered. This product can be connected to all of the relevant onboard systems for extensive data collection from propulsion, navigation, machinery, and cargo systems as well as weather and oceanic forecasts. Modular expansions based on and connected to Marorka Maren OP3, such as propulsion performance optimisation, simulation of voyage schedules and costs, monitoring of power and steam production efficiency, are also available. Additionally, an automated interface to FutureShip’s renowned trim optimisation tool, ECO-Assistant, can now be ordered.