Month: October 2013

Foreign Shipowners Encourage China To Resolve VAT Problems

Elaborate Communications

The Chairman of the International Chamber of Shipping (ICS), Mr Masamichi Morooka,  has written to the Chinese Minister of Finance, encouraging the Chinese Government to continue its efforts to find a solution to the problems created by the application of Value Added Tax (VAT), since 1 August, to the transport and logistics services provided by ‘Wholly Foreign Owned Shipping Companies’.

The problems exist because it is much harder for foreign shipping lines – as opposed to Chinese companies – to reclaim the 6% VAT (and a 0.8% VAT surcharge on ocean freight) that is now collected by shipping agencies in China, and so avoid passing this on to their overseas customers.  The unintended consequence is that foreign carriers are being placed at a competitive disadvantage to Chinese shipping companies.

One of the reported impacts is that hundreds millions of dollars of shipping contracts with foreign shipowners that are normally concluded in China are now being concluded in other jurisdictions where the new VAT rules do not apply.

ICS – which represents the world’s national shipowner’ associations and over 80% of the world merchant fleet – has emphasised to the Ministry of Finance the great importance that is attached by the international shipping industry to the successful resolution of VAT issues that have been raised by foreign shipping companies which collectively transport a very significant proportion of China’s international trade.

ICS Director of External Relations, Simon Bennett, explained: “The Chinese Government is deeply conscious of its commitments towards the maintenance of a ‘level playing field’ in maritime services, and has no wish for the new arrangements concerning the application of VAT to international shipping services to have a negative impact on the competitiveness of Chinese exports, the vast majority of which is carried by ships.  We have therefore welcomed the positive indications that have been given by the Chinese authorities during recent meetings with foreign shipping company representatives in Beijing that steps are being taken to address those concerns.”

He added: “However, these issues are very complex and we recognise the major challenge for the State Administration of Taxation in trying to find a solution for international shipping that will be consistent with China’s broader objectives as it seeks to move towards a system of VAT in other parts of the Chinese economy.”

Notes to Editors:

  • The application of VAT to transport and logistics services provided by ‘Wholly Foreign Owned Shipping Companies” was outlined in Chinese Circular ‘Cai Shui No 37’ on 24 May, with effect from 1 August 2013.
  • ICS is the principal global trade association for commercial shipowners and operators.  Its membership comprises national shipowners’ associations in 35 countries representing over 80% of the world merchant fleet at those international bodies which impact on shipping.  This includes the United Nations International Maritime Organization (IMO) and the World Trade Organization (WTO).

Braemar Adjusting Continues Global Recruitment Initiative London, Singapore and Houston

Debra Massey

Braemar Adjusting continues its global expansion with the addition of one Director in London, two Directors in Houston and an energy adjuster in Singapore.

Grant Smith, Chief Executive Officer of Braemar Adjusting, said: “This represents an extremely exciting time in our company’s development. In 2013 alone we have opened a new office in Dubai and recruited 13 excellent employees across the globe, to take our business forward.

“The insurance market is changing. There are new players, requiring varying and more exacting service levels. As an organisation, we at Braemar are ahead of the curve in recognising the fact, recruiting new talent and training them to face these challenges.

“Our most recent additions – Ian, Jeremy, Vincent and Patrick – bring a combined wealth of industry knowledge and experience to our organisation. These gentlemen are the epitome of customer focus and have welcomed the challenge we put before all employees, to find ways to continually develop and improve the service we provide to our clients.”

Ian McInroy re-joins Braemar’s London office as a Director in October 2013 from a leading international insurance broking and consultancy group, where his primary responsibilities were to design risk transfer programmes for offshore energy construction projects and advise clients on the terms and conditions of their energy contracts. In this role Ian was also responsible for preparing client submissions to the Department of Energy and Climate Change, in relation to permanent carbon capture solutions technology. During his previous time at Braemar, Ian was the London market contact for various Gulf of Mexico hurricane claims and the principle adjuster on a wide variety of losses including FPSOs, offshore platforms, pipelines, jack-up rigs, subsea and seismic equipment as well as power and fertilizer plants throughout Europe, the Middle East and Africa. Prior to joining Braemar, Ian was responsible for delivering engineering and construction projects in his role as Project Manager for a UK-based construction company and he travelled extensively throughout Europe and Asia as an Investment Analyst for an Asset Management Company. Ian has a BEng in Manufacturing Science and Engineering from the University of Strathclyde, Scotland and as a Director in London, he will provide an important liaison role with key clients, while expanding Braemar’s existing offshore construction team.

Vincent Marrot joins Braemar’s Houston office as a Director in October 2013 following his role as Global Leader for Energy and Construction Engineering for Marsh, where he was responsible for energy-related engineering activities conducted through the Houston, London, Dubai and Singapore Energy practice hubs. Vincent previously worked as an international loss adjuster for 12 years, based in both London and Houston, where he specialised in deep-water control of well and the associated pollution claims. Vincent has adjusted

numerous upstream and downstream losses involving offshore platforms, drilling units, FPSOs, gas turbines, power generation facilities, compressor stations and refineries. Prior to loss adjusting, he worked as a Directional Driller for over a decade in Europe, Asia, North and South America and has also worked as an engineer with Rolls Royce UK. Vincent is bilingual in French and English, has an M.Phil. in Petroleum Engineering, is a licensed loss adjuster in the state of Texas and a member of the Society of Petroleum Engineers. Vincent will play a key role in the future development of our North American operations and strengthens our existing team of well control specialists.

Jeremy Palmer joins Braemar’s Houston office as a Director as of October 2013, bringing with him over 27 years’ experience working in the Energy Insurance markets of London, Paris, Calgary and Houston. During this time Jeremy has served in senior roles in claims and on the placing side. Most recently Jeremy was National Energy Claims Manager for an international insurance broking house, and prior to that he worked as an Energy and Mining placing broker with numerous multinational clients. In these capacities Jeremy has facilitated the resolution of numerous complicated energy losses around the world, has negotiated both package and stand-alone insurance placements in the domestic and international markets and crafted policy wordings to address the various risk appetites of his respective clients. These experiences give Jeremy a unique insight into the needs of all parties involved in the claim process and Braemar looks forward to embracing the experience and additional insight Jeremy is able to bring to the team both within North America and Internationally.

Patrick Carey joined Braemar’s Singapore team as an Energy Adjuster with effect from September 2013. Patrick graduated with honors from The University of Newcastle upon Tyne’s School of Marine Science and Technology in 2007 with a degree in Marine Engineering, gaining recognition through the Dr. James A. Lisnyk Award for Ship Design Excellence. Thereafter, Patrick worked with a Mechanical Completions and Commissioning company, MCCS International, based out of their Kuala Lumpur office. During five years with MCCS, his roles have included Pressure Testing Supervisor, Commissioning Engineer, Planning Engineer and Completions Coordinator on a variety of oil and gas projects including FPSO Construction, Topside Construction & Upgrades, and Onshore LNG Facility Completions and Commissioning throughout the Far East. Braemar welcomes Patrick onboard where he will supplement its existing team of experienced offshore construction experts currently servicing the Asia Pacific region.

Braemar Engineering Secures World’s Largest LNG Floating Production (FLNG) Project

Elaborate Communications

Braemar Engineering, the well-known marine and LNG technical consultancy arm of the Braemar Shipping Services PLC group, is delighted to announce it has been appointed as Owner’s Engineers for United LNG, LP in the world’s largest floating LNG production project.

The project, situated offshore near Venice, Louisiana in the Gulf of Mexico, will be the world’s largest floating LNG export project, with three floating liquefaction units projected to export up to 24 million metric tonnes per annum (MTPA) of LNG, commencing in spring 2018.

“With decades of LNG experience, we are proud to be working with a world class organization like Braemar Engineering,” said Stephen Payne, Chairman of United LNG.

“This is a very exciting opportunity for us,” says Sheila McClain, Vice President of Business Development for Braemar in Houston. “Braemar Engineering is one of the most experienced consulting engineering firms in the LNG industry, offering services to support the entire LNG chain, and the level of expertise and experience we will be able to contribute to this project is unique. Braemar Engineering brings both floating LNG experience and shore based production experience – a combination of skills which really counts in this rapidly developing field.”

The project includes modification of existing offshore structures, construction of new facilities, construction, installation, and operation of floating liquefaction storage vessels to be used for the on-site liquefaction and exportation of LNG from offshore Louisiana in the Gulf of Mexico.

London Is Still The Shipping Capital Of The World

Elaborate Communications

London is, without doubt, “still the shipping capital of the world,” according to the Chairman of the International Chamber of Shipping, Masamichi Morooka.  But he also suggested that London should not rest on its laurels and that a truly world class centre would wish to retain its position for the very long term and have an ambitious strategy for achieving this.

Speaking on behalf of the world’s shipowners at the London International Shipping Week conference in the UK capital, Mr Morooka outlined what he felt as an employee of a major non-UK shipping company, was needed for a city to be a first class maritime centre.

He remarked that London’s continuing success suggested that a large concentration of beneficial ship ownership was not in fact necessary to be successful, as was also the case with its merchant banks, or indeed the British car industry.  But in the long term this strategy would only work so long as the foreign companies concerned were committed to stay.

Highlighting the need for a critical mass of shipping people, a trustworthy legal system, a sound infrastructure, good communications and genuinely international outlook, Mr Morooka said a pre-eminent worldwide maritime centre need to be a ‘one stop shop’ providing immediate access to the expertise and support services required to conduct international operations on a twenty-four-seven basis.

London is the inventor of marine insurance, is home to one of the largest and oldest classification societies, houses the Baltic Exchange, is the financial capital of the world, and has a commitment to open markets and free trade principals, he pointed out.

“As a centre for maritime business services, London still truly lacks a comparable rival,” he said.

He concluded by pointing out the need for any great maritime centre to enjoy strong support from its national government and city authorities and to have policy makers who treat the maritime sector “as being vital to the health of the rest of the economy.”

InterManager AGM Pledges To Focus On Seafarers

Elaborate Communications

InterManager, the international trade association for the ship management industry, has pledged to put ‘people’ at the centre of its focus over the next year.

Addressing this year’s Annual General Meeting (AGM), at the Lloyd’s building during London International Shipping Week, InterManager President Gerardo Borromeo said: “Without a doubt the human element, our global maritime professionals, will remain at the front and centre in InterManager’s activities and projects over the next 12 months.”

He outlined a comprehensive programme of activity for the next year with topics to be covered including best management practices, seafarer health and wellness, enhanced maritime communications and an examination of the administrative burdens onboard ship.

The President outlined the work InterManager has carried out over the past year on behalf of its members. He highlighted the key role the Association played in the International Maritime Organization’s symposium on The Future Of Safe Shipping where it chaired the important session on ‘safety and the human element’. He vowed to continue to strengthen InterManager’s role as a stakeholder at the IMO and encouraged members to communicate any industry questions or concerns to InterManager Secretary General Kuba Szymanski who can rely them through the appropriate channels.

Commenting on the apparent decrease in pirate activity in the Gulf of Aden, and the corresponding increase off the coast of West Africa, Mr Borromeo urged members to remain vigilant in high risk areas and do all they can to comply with Best Management Practices (BMP4).

“As ship managers and crew managers, this is the area where we can certainly make the most difference,” he said. “While there is no hard and fast rule on management styles, our commitment to the concept of Best Management Practices has to be the ‘Holy Grail’ as far as any ship manager or crew manager is concerned.”

He also directed managers to aim high when implementing the Maritime Labour Convention, which has been described as the ‘Magna Carta for seafarers’. He told members: “The MLC as a standard is not a target to aim for, but provides starting points from which to begin. There is nothing that prevents any quality ship manager or crew manager from promoting higher standards of crew care and welfare for their own purposes and in order to differentiate service levels across the board.”

The President was delighted to announce that over the past four years InterManager membership has risen by more than 50% to currently stand at 103 members.

Braemar LNG Brings Its Expertise to China

Debra Massey

As the demand for LNG grows, the Chinese Government has recognised that in expanding its LNG capabilities, it must build-up the skill set of its maritime professionals in this vital sector. A new course created by Braemar Engineering aims to support this growing demand for LNG expertise in China and increase understanding of STCW amendments concerning operation and management regulations for liquefied vessels.

Developed in conjunction with the Cambridge Academy of Transport and Shanghai Maritime University, the first Training Course for LNG Ship Operations and Management was run from 14th to 18th October at Shanghai Maritime University. It offered a practical introduction to LNG, and focused on a wide range of elements including key operations of main propulsion of LNG carriers; key operations in the process of loading and discharging cargos of LNG carriers; and the key points of Flag State Control, Port State Control and industrial inspections for LNG Carriers.

Michael R. Holderness, Technical Director, Braemar Engineering, who helped devise the seminar and acted as trainer on the course, said the Braemar Engineering team boasts a broad practical background in many different facets of LNG.
“We’ve been involved in building LNG ships for years, and have also been advising Chinese companies about LNG for quite some time. We have placed experts in shipyards and provided specialist teams – we have supplied expertise and I, along with many of my colleagues, have supported large Chinese companies to ensure the success of LNG projects,” he said.

“The Chinese Government realises LNG is a good source of energy, but it must expand in this sector, explained Mr Holderness.” A real positive of the course is we are sharing over 20 years of experience in LNG – I believe that if you’ve done it and seen it yourself, then you can instil confidence in others and this is important.”

Mr Holderness, who is a Chartered Engineer and a Fellow of the Institute of Marine Engineering, Science and Technology, will be supported on the course by fellow Key Instructor Jayan Peter Pillai, experienced Chief Engineer and now Braemar Training Officer.

The course is targeted at maritime safety administration officials, senior ship officers, senior managers of shipping companies and instructors from maritime colleges and universities. Further dates are planned for the future.

Thomas Gunn Makes Digital Transition a Reality

Debra Massey

With the news that the Russian Federation is the latest Flag State to approve the use of ADMIRALTY Digital Publications (ADP) on board its vessels, over two thirds of the world’s Flag States have now signed up to receive digital updates from the United Kingdom Hydrographic Office (UKHO). The transition to digital navigation is well and truly in progress and Thomas Gunn, part of the Global Navigation Solutions (GNS) Group of specialist providers of maritime navigation information, solutions and support, is seeing the trend reflected in its own business, with an increase in the number of fleets embracing the digital transition in the last few months.

“Thomas Gunn has now supplied more than 1,000 vessels worldwide with ADP,” says Colin Stephenson, Digital Manager for Thomas Gunn Navigation Services. “We have at least 20 fleets currently trialling the system, with new enquiries from around the world every day. In addition we are seeing more and more ship operators taking advantage of the ability of our Voyager digital chart management system to deliver ADP updates, which enables them to manage all their navigation needs through a single common intuitive interface.

Mr Stephenson sees the change as positive. “These fleets are moving from a time consuming labour intensive paper process which essentially hasn’t changed since sail, towards a powerful system which not only offers the essential trinity; Total Tide; List of Lights and List of Radio Signals; but also interprets them in a way that ensures more flexibility than hard copy and removes the admin burden from the professional navigator.

“In the drive for efficiency crews can be put under a great deal of pressure, an issue eased by technological solutions. In the past one of the greatest barriers to change was Flag State approval, and so we are delighted to see the momentum increasing and the vast majority of Flag States accepting the new technology with the benefits it brings.”

When asked why these operators have chosen a GNS company as their partner at this important stage in their business development, Colin explains, ”Fleets are looking for two key elements; a partner with a depth and breadth of knowledge of digital navigation technology; and one they can trust to provide – and support – the right business solution. Thomas Gunn offers that combination and has built a reputation for expertise and proficiency in this field. Our use of cutting edge technology, ably demonstrated by the industry leading new Voyager 4, gives clients confidence that the solution they choose will continue to evolve and expand in line with their business needs and market expectations.”