High Shipping Costs Are Here to Stay, Says Bloomberg
By Henry Ren (Bloomberg) Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers....
The Japanese owner of the MV Wakashio said it fully intends to compensate for any damages in accordance with applicable law from the ship’s grounding and subsequent oil spill in Mauritius.
The statement comes after the island nation’s Prime Minister, Pravind Kumar Jugnauth, told parliament that the government “will ensure that the insurance company of MV Wakashio compensates the state and any other entity or person affected by the calamity,”
“We can confirm the Mauritius government have requested compensation from us,” said the statement from the ship owner, Nagashiki Shipping. “We are fully aware of the responsibilities of the parties concerned and will respond in good faith to any damages in accordance with applicable law. We apologize for the inconvenience caused to people in Mauritius and other parties involved. We will continue to do our utmost to minimize the impact of oil spill recovery and environmental pollution.”
The MV Wakashio was carrying approximately 3,800 metric tons of Very Low Sulphur Fuel Oil (VLSFO) and 200 MT of diesel when it grounded on July 25. As of Thursday, approximately 3,000 MT of oil has been recovered from the vessel and transferred to small tankers, according to the ship owner.
“We will continue to make efforts to collect any residual oil in the tanks and recover the remaining oil from the sea and coastal areas in order to minimize the impact to the environment. Specialists are on site and will continue to closely monitor the oil flow and tidal patterns. We understand approximately 1520 meters of oil booms have been deployed in strategic locations to contain the pollution. Additional oil booms will be deployed as needed according to expert instruction. A skilled oil spill response team has been activated, equipped with specialist spill remediation equipment, including skimmers, pumps and absorbents, to contain and clean-up the oil in compliance with regulation and in line the local authorities’ guidance,” the company said.
Salvors are continuing to monitor the condition of the vessel and the large crack that has formed in the ship’s hull. A tow connection has been established to ensure the ship doesn’t drift.
“Members from our company have arrived at the site for the purpose of local response. We will continue to consider the additional dispatch of personnel and transportation of supplies. We will fully cooperate with the authorities of Mauritius and Japan to work to resolve the situation as soon as possible and will do our best to prevent the spread of oil and protect the environment,” the statement from Nagashiki Shipping said.
“The cause of the incident is not known and will be fully investigated. Nagashiki Shipping will continue to work closely with the authorities to determine cause,” it added.
A statement from the Panama Ship Registry on Wednesday said the ship faced adverse weather during its voyage from Singapore to Brazil.
“Everything went smoothly until July 25, when the ship faced adverse weather conditions near the coast of Mauritius. It was then, necessary to perform various maneuvers to change course due to the state of the sea,” the statement said.
Reporting indicates the Wakashio changed course at 0200 on 21 July, putting the vessel on a direct path with island. No additional course changes were made prior to the grounding.
The salvage is being led by Smit Salvage in coordination with the Mauritius government.
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