Alerts

The current situation in Libya has caused severe disruption to sea trade to and from all major ports in Libya. Due to this uncertain and fluid situation, members are advised to consult with the BE&O P&I Club before contemplating calls at Benghazi, El Brega (and/or other ports in Libya). The Club is constantly in touch with market underwriters as to the status of Libyan ports / waters and will advice members and their sea going staff on the developing unrest in Libya. However, should members have any further queries on the foregoing, please contact:

Further to our earlier 'Libya' alert, we have received information from our sources that even though the Port of Benghazi is open, there are no ship movements in and out of the port. Additionally, there is further information stating that Benghazi will shortly become a war zone. The other ports in the country, Tripoli and Khoms are working almost normally. However, should members/assured have any further queries please contact:

Further to our alerts for Libya in March 2011, Libya has now been declared as a war zone. The Joint War Risk Committee reviewed its list of Hull War, Strikes, Terrorism and related perils listed areas and has named Libya as the latest addition to the list. The list has been in effect from 3rd March 2011. As defined, the war risk area for a named country shall include their coastal waters up to 12 nautical miles offshore, unless specifically stated.

The complete list of named countries is available on further request.

Our Assureds are requested to notify the facility immediately if any of their Vessels intends to call Libya. Should the assured have any further queries or comments please contact;

The King of Bahrain has declared a State of Emergency in Bahrain on 15th March 2011. We have been advised by our sources inside Bahrain that port operations are affected as they are not operating at full capacity. Services like, customs and immigration are operating at Khalifa Bin Salman Port, Arab Ship Building and Repair Yard, Gulf Industrial Investment Company and Mina Salman. However, ports under Sitra are currently not operating to full capacity. The Bahrain International Airport is however operating as normal with international flight flying in and out of the country. Movements through the Bahrain / Saudi causeway are also restricted. All offices are closed and people have been advised to stay at home.

BE&O P&I Club will keep you updated as we soon receive further updates. However, should members/assured have any further queries please contact:

The European Union (EU) and the United Nations Security Council (UNSC) had imposed travel bans and assets freeze on ports and designated persons in the Ivory Coast, following President Laurent Gbagbo's refusal to concede defeat in last year's November Elections.

Details on the sanctions are available in our Circular 2010/07.

As per the our latest information, the arrest of Laurent Gbagbo, has led to the EU having partly lifted the sanctions on trade from the Ports of Abidjan, San Pedro and the Ivorian Refining Company as well as the Coffee and Cocoa Trade Management Committee (CGFCC) berths. The remainder of the sanctions are still in place and are currently being reviewed in consultation with the new government and the new President Alassane Quattara.

The BE&O P&I Club continues to monitor the situation, however, Member vessels calling at Ports in Ivory Coast are recommended to contact the Club for further information prior to sending their vessel's there. In any event, should the members have any further questions on the above they should contact:

The earthquake, tsunami and subsequent incidents in Japan have had a significant impact with severe repercussions on the shipping and insurance industry. The BE&O P&I Club is closely monitoring the situation and the severe implications arisen from the recent events in Japan.

A number of ports in North East Japan have been damaged or are not operable. However, the ports in Tokyo, Yokohama, Nagoya, Osaka and Kobe are reportedly operating normally. The levels of radiation in Tokyo City, Kawasaki City and Ichikawa City are said to be at very safe level so has not to have any impact on the health of the inhabitants.

IMO has strongly recommended Shipmasters to comply with the latest navigational warnings issued by the NAVAREA XI Coordinator, Japan. Members are advised to follow official news briefings and information and be aware of the factual situation.

Should the assured have any further queries concerning risks, incidents, trading aspects or any other implications, please contact:

Under the regulation V/19 of SOLAS Convention, ships fitted with AIS shall maintain AIS in operation at all times except where international agreements, rules or standards provide for the protection of navigational information.

IMO Resolution A. 917(22), 'Guidelines for the onboard operational use of ship-borne automatic identification systems (AIS)', states that "if the master believes that the continual operation of AIS might compromise the safety or security of his/her ship, the AIS may be switched off. This might be the case in sea areas where pirates and armed robbers are known to operate. Actions of this nature should always be recorded in the ship's logbook together with the reason for doing so."

The advice from EUNAVFOR and NATO in accordance with IMO Resolution A.917 (22) and as articulated in BMP3 paragraph 7.5 states "the Master has the discretion to switch off the AIS if he believes its use increases the ship's vulnerability" and until now has recommended that AIS transmission within the Gulf of Aden be left on with restrictions, and outside the Gulf of Aden in other parts of the High Risk Area be turned off completely.

In order that Counter Piracy Naval Operations have the required data from AIS transmissions to track real time positions of merchant ships, thus enabling them to mitigate risk of piracy to merchant shipping, the advice has been revised.

The NEW recommendation is to leave AIS transmitting across the entire High Risk Area as set out in BMP3. AIS transmission should continue to be restricted to ship's identity, position, course, speed, navigational status and safety-related information. As noted, this is a change to the previous guidance which recommended that AIS be left on only in the Gulf of Aden. The decision on AIS policy remains at the discretion of the Master, however, if it is switched off during transit, it should be activated immediately at the time of an attack.

Source: NATO

However, should members/assured have any further queries please contact:

Further to the current MSC-HOA Best Management Practices (BMP), recently there has been a key change to the boundaries of the High Risk Area defined by MSC-HOA. There are now 4 entry / exits to and from the High Risk Area which are 78 East, 23 North, 10 South, Suez and Port (Local).

Member vessels transiting the high risk area are advised to register to MSC-HOA;

• Even if not transiting Gulf of Aden,
• Even if going in a National Convoy,
• Even if the registered vessel is carrying armed security,
• Even if the registered vessel is not going in a Group Transit.

As per MSC-HOA, if vessel registration is not made under these conditions the vessel is NOT BMP compliant as recognised by the Shipping Industry including the IMO, the military and Flag States.

Should the members have any further queries please contact the BE&O P&I Club.

Protests in Syria against President Bashar Assad's regime started on 26th January this year and were influenced by other protests in the region. This has led to large scale unrest, resulting in the Syrian Army being sent into the capital Damascus and the Southern City of Deraa.

The United States of America (USA) has currently three types of sanctions imposed against Syria. The Syria Accountability Act (SAA) 2004 which prohibits the export of most goods containing more than 10 percent US manufactured component parts to Syria. The second is sanctions against the Commercial Bank of Syria in 2006 and the third specifically denies certain Syrian citizens and entities access to the US financial system due to their participation in proliferation of weapons of mass destruction and terrorist associations.

In view of the current large scale unrest, the United Nations Security Council (UNSC), the European Union and the US have circulated a draft UNSC press statement on Syria, which as per diplomats is a 'first step' toward imposing further sanctions to include travel bans and assets freezes targeting members of President Bashar al-Assad's family and other senior regime figures.

BE&O P&I Club will continue to monitor the situation and provide updates on the sanctions, however, given the uncertain and fluid situation in the country, members are requested to contact the Club if a vessel is to call at any Syrian ports. Should the members have any further queries please contact the BE&O P&I Club.

The EU Directive 2009/20/EC (Insurance Directive) entered in force on 17th June 2009, however it did not affect the EU Member States until they implement it into their domestic law. As per latest developments, this insurance directive will have to be implemented by all EU member states by 1st January 2012.

The Insurance Directive covers the on- board carriage of evidence of financial security by all see going ships of 300 gt or more with confirmation probably through certification issued by the insurer. The IG clubs are currently in discussion with Member States seeking this confirmation.

The Insurance Directive requires a ship owner to maintain insurance cover for maritime claims subject to limitation under the Convention on Limitation of Liability for Maritime Claims (LLMC) 1996. Cover is to be of the type currently provided by the IG clubs although the requirements may also be satisfied by equivalent levels of cover through non IG clubs.

Confirmation of suitable insurance up to LLMC 1996 levels is already a requirement under the IMO Bunkers Convention for all ships greater than 1,000 gt registered in a State Party or entering or leaving a port or offshore facility in a State Party. It is thought likely therefore that the insurance for a ship in possession of a Bunkers Convention Certificate will satisfy the requirements of the Insurance Directive. However, should the assured have any further queries please contact:

Voyage data recorders (VDR) onboard ships serve a function similar to black boxes on air planes, in recording all events that take place onboard the navigating bridge of a ship. They also assist greatly in accident investigation and lessons learnt training post an incident. Under regulation 20 of SOLAS Chapter V on Voyage data recorders (VDR), the following ships are required to carry VDRs;

• Passenger ships constructed on or after 1 July 2002;
• Ro-Ro passenger ships constructed before 1 July 2002, not later than the first survey on or after 1 July 2002;
• Passenger ships other than Ro-Ro Passenger ships constructed before 1 July 2002 not later than 1 January 2004; and
• Ships, other than passenger ships, of 3,000 gross tonnage and upwards constructed on or after 1 July 2002.

From recent accident investigations it has come to light that the retrieval of data from VDR can sometimes be very expensive. Further, if crew fail to press the record button after an incident, important data can be lost due to the data being overwritten every 12 hours (machine dependent). New performance standards for VDR were discussed during a recent Nav 57 meeting which are mentioned below.

• VDR'S should be capable of saving the most recent 48 hours of data for up to two years.
• VDR must be protected against fire and permanently attached to the ship
• Additional recording medium must be available that will save data for six months to be held in a float free capsule that will be released following the loss of a vessel.
• The VDR will be required to be fitted with independent inclinometers or motion sensors to allow movement such as heel angle and roll to be monitored.

The new standards makes the VDR more sophisticated with data being more easily recoverable. The performance standards are still subject to final approval and as per latest report due to come into force in early 2014.

Should members/assured have any further queries please contact:

On 10 May 2011, EU Regulation 442/2011 came into force. This regulation introduced restrictive measures on Syria and imposed asset freezes on designated persons, entities and bodies. The Regulation clearly states that all funds and economic resources owned, held or controlled by the persons listed in Annex II shall be frozen. Further, the Regulation sets out that no funds or economic resources shall be made available, directly or indirectly, to or for the benefit of the persons listed in Annex II. On 24 June 2011, a further EU Regulation 611/2011 came into force adding a further seven individuals and four entities to the list of those against whom sanctions have been imposed. Details can be found by clicking HERE.

In late April 2011 President Obama signed an Executive Order 13572, 76 FR 24787 blocking the property of three individuals and two entities associated with the Syrian Regime. On 18 May the President signed a further Executive Order 13573, 76 29143 extending the list of individuals and entities whose assets were blocked. These sanctions require that property and interests in property of a blocked person that are in the United States or that come into the United States or into the possession or control of a US person must be frozen. Such property may not be transferred, paid, exported, withdrawn, or otherwise dealt with. Furthermore, all dealings by U.S. persons with designated persons are prohibited.

In the view of the above sanctions, we advise our assureds to check whether the companies that they may be transacting business with are not owned, held or controlled either directly or indirectly by one of the listed sanctioned individuals/entities. We also recommend to our assureds to enter 'SANCTIONS CLAUSES' into the charterparties adequately tailored to their specific needs covering eventualities that they seek to be protected from.

We will continue to monitor the situation in Syria and provide further updates of any substantial developments. In the interim, should you have any further queries, please do not hesitate to contact us.

On 7th June 2011 the Council of the European Union adopted a Decision 2011/332/CFSP which extends the list of persons and entities subject to restrictive measures and includes six port authorities in the area under the control of the Gadaffi regime namely Tripoli, Al Khoms, Brega, Ras Lanuf, Zawia and Zuwara effecting a prohibition on the provision or the making available of funds and economic resources to the designated port authorities, including the payment of port fees. There is an exemption from the EU asset freezes against Libya for humanitarian purposes. The Decision entered into force on 17th June 2011 pursuant to EU Regulations 572/2011 and 573/2011.

Should the assured have any further queries please contact:

On 1 March 2010, the Regulations of the People's Republic of China ("PRC") on the Prevention and Control of Marine Pollution from Ships (the "Regulations") started to come into force. The Regulations apply to any ship-source pollution and any ship-related operation where pollution damage is caused (or may be caused) to PRC internal waters, territorial seas, contiguous zones, exclusive economic zones, continental shelves and all other sea areas under the jurisdiction of the PRC. The Maritime Safety Administration ("MSA") is responsible for the supervision and administration of the prevention and control of marine pollution and will be the designated authority for enforcing the Regulations.

The Regulations include various general provisions detailing the procedures for discharge and receipt of ship's waste and for certain ship operations such as scrapping, ship to ship transfers of oil, dumping of waste and the supply and receipt of bunkers. The carriage of dangerous waste in PRC internal and territorial seas is prohibited.

Any pollution arising or likely to arise from an incident must be reported to the local MSA office in the form of an accident report as detailed in the Regulations. The MSA will maintain overall control of any emergency response activities and also retain the right to detain ships while investigating such incidents.

Operators of all ships carrying bulk hazardous and pollutant liquid cargoes, and the operators of all ships over 10,000 GRT, will be required to conclude a pollution clean-up contract with an MSA-approved Oil Spill Response Organisations ("OSRO") before entering/departing a PRC port or starting the ship's operation. A list of all approved contractors will be issued in October 2011 which we will update our assured on. Further, on request the Club would also provide them with the list. The requirement to contract with an approved clean up contractor will be enforced in all Chinese ports from 1st January 2012. Thus leaving ship owners with a very short time to have a contract with an approved 'OSRO' in place before the deadline.

The British European & Overseas P&I will keep our assured updated on the progress of this matter, in the interim should you have any further queries please do not hesitate to contact us.

Further to our alerts on war risk areas in March 2011 and following a review of the list of Hull War, Strikes, Terrorism and related perils listed areas, the Joint War Risk Committee has declared Benin and Gulf of Guinea (but only the waters of the Beninese and Nigerian Exclusive Economic Zones north of Latitude 3° N) as a war zone as of 1st August 2011. As defined, the war risk area for a named country shall include their coastal waters up to 12 nautical miles offshore, unless specifically stated.

The complete list of named countries is available on further request.

Our Assureds are requested to notify the facility immediately if any of their Vessels intends to call Benin or Gulf of Guinea. Additionally, should the assured have any further queries or comments or require a copy of the complete list of countries please contact;

The Council of the European Union lifted an asset freeze that was previously in force and listed 28 entities including inter alia oil firms, banks and the ports of Tripoli, Al Khoms, Ras Lanuf, Zawiya, Zuara and Brega which were removed from the Annex by Regulation (EU) No. 872/2011 with effect from 2 September 2011. There however still remain 27 entities and 39 individuals targeted. Details on the above can be found by clicking HERE.

We will continue to monitor the situation in Libya and provide further updates of any substantial developments. In the interim, should you have any further queries, please do not hesitate to contact us.

The IMO Marine Environment Protection Committee, at its sixty second session approved the 2011 Guidelines for the Carriage of blends of petroleum and bio-fuels, recognising the need to clarify how bio-fuels subject to MARPOL Annex II, when blended with petroleum oils, subject to Annex I of MARPOL, can be shipped in bulk. The committee agreed that these guidelines should become operative from 1st September 2011.

The carriage provisions are based on the volumetric composition of the bio-fuel blend, which are as follows;

• Products containing 75% or more petroleum oil are to be carried in accordance with the requirements of MARPOL Annex I;
• Products containing more than 1% but less than 75% petroleum oil are to be carried in accordance with the requirements of MARPOL Annex II;
• Products containing 1% or less petroleum oil are to be carried under the requirements of MARPOL Annex II.

Further, the guidelines emphasise that on board blending should only be undertaken whilst the ship is within port limits. The physical blending on board of petroleum oil and bio fuels during a sea voyage to create new products is strictly prohibited.

Should the assured have any further queries please contact;

The Turkish Regulation on the requirement to obtain Insurance Coverage for vessels against Maritime Claims and Supervision thereof ("the Regulation") came in force in Turkey on 1 July 2011. The Regulation requires all ships of 300gt or more calling at Turkish ports or Turkish flagged vessels are required to maintain valid P&I insurance cover in place to cover maritime claims, which are subject to limitation under the 1976 Limitation of Liability for Maritime Claims (LLMC) and the 1996 Protocol. Ships are now required to provide a copy of their certificate of insurance to port authorities before entering into Turkish territorial waters. A valid original of the certificate should be present on board the ship. A breach of this Regulation, ship owners may be subject to a fine amounting up to 20,000 Turkish Lira (approx. USD 11,600).

The Club recommends that the Assureds familiarise themselves with the requirements included in the Regulation. However, should the Assureds have any further queries, please do not hesitate to contact BE&O.

Following recent developments and increase in piracy incidents following the monsoon seasons, going forward and at the sole discretion of the P&I Managers, all vessels covered under British European and Overseas P&I FD&D (BE&O P&I / FD&D) are required to have Kidnap and Ransom (K and R) Cover in place prior to transiting Piracy infested areas. The K & R warranty will be similar to our standard policy warranties. Assureds are requested to strictly comply with the above K & R warranty, failure to do so may prejudice Owners’ P&I or FD&D covers.

Should our assureds have any further queries or comments please contact;

Further to our alert dated March 2011, Libya will now no longer be a war risk area. In the light of the removal of Colonel Gaddafi from power, the stabilisation of the political situation in Libya and the cessation of military activity, the warlike operations area committee agreed that the warlike operations area agreement of the territorial waters of Libya will cease to have effect from 23:59 hours on Friday 4th November 2011.

Further updates on the area will be subsequently published as things progress; however, in the interim should our assureds have any further queries or comments please contact;

Further to our July 2011 alert on EU Regulation 442/2011 Sanctions against Syria, on 18 January 2012, the Council of the European Union approved Regulation (EU) No 36/2012 which replaces Regulation No 442/2011. The prohibitions in Regulation 442/2011 remain in force and under the new regulation additional prohibitions are in place which includes the following;

Prohibition of the provision of insurance and re-insurance to the State of Syria, its Government, its public bodies, corporations or agencies or to any natural or legal person, entity or body when acting on behalf or at the direction of a legal person, entity or body listed.

Prohibition to sell, supply, transfer or export the equipment or technology related to exploration of crude oil and natural gas, production of crude oil and natural gas, refining and liquefaction of natural gas.

The regulation has in place, asset freezing measures against persons listed in Annex II. By EU Council Regulation No 55/2012 which came into effect on 24 January 2012, Annex II has been amended to include further entities.

A copy of Regulations 36/2012 and 55/2012 can be found at the following links

Regulations 36/2012     Regulations 55/2012

Should the assureds have any further queries on the above, please contact:

In a recent case heard before the English and Wales High Court ( EWCH) (“The GENIUS STAR”).The Court upheld a decision from a previous English High Court Judgement(“ The STRATHNEWTON”) confirming that the one year time bar under the Hague Rules does not apply to claims made under the Inter Club Agreement ( ICA ) 1996 and subsequent amendments of 2011.

In the current case, Sub- charterers settled a cargo claim under the ICA and sought to recover from Charterers who in turn sought to recover from Owners as the charter parties were back to back in terms of the ICA.

Owners rejected the claims on the basis that the recovery claims were time barred by virtue of the Arbitration clause in the head charter party which provided that any claim would be time barred unless an arbitrator was appointed within one year of final discharge.

The charter party also contained a clause to the effect that all cargo claims were to be settled in accordance with the ICA , which allows cargo claims to be filed by way of written notice within 2 years from the date of discharge. The Court, on appeal from an arbitration award, held that cargo claims subject to the ICA were not bound by the one year time bar period in the arbitration clause.

It is important to review the charter party to establish which regime governs the settlement of cargo claims.

Should you have any questions arising out of this article , please do not hesitate to contact us.