- New Baltic S&P assessments for Handysize vessels
The Baltic Exchange has added an eighth vessel type to its weekly Sale & Purchase Assessments (BSPA). Following a successful trial and approval by the Baltic Index Council, assessments for a five-year old Handysize vessel (38,200mt dwt) are now available every Friday.
Based on assessments by a panel of shipbrokers which are reported to the Baltic Exchange by 1530 (UK), BPSA also covers Very Large Crude Carriers (VLCCs), Suezmax, Aframax, MR Product Tankers, Capesize, Panamax and Super Handy vessel types.
38,200 mt on 10.538m SSW
Built in a Japanese yard. European standard B&W engine
LOA 180m / Beam 29.8m
47,125 cbm grain / 45,300 cbm bale
4 x 30mt cranes
5 years old.
Special survey passed. Delivery prompt (2/3 months), charter free. 2% total commission.
Welcoming the additional new service, Baltic Exchange Chief Executive Mark Jackson said:
“We first launched our sale & purchase service in 2003 and today provide shipping investors with a comprehensive set of data. These include independent assessments of not only the asset value, but also earnings, operating costs and recycling prices.”
The BSPA panel members are:
- Arrow Chartering (UK)
- Barry Rogliano Salles
- Compass Maritime Services
- Golden Destiny
- Lorentzen & Stemoco
- MJLF & Associates Inc.
- Optima Shipbrokers
- SSY Valuation Services
- Yamamizu Shipping
- Baltic and ICS webinar on shipping cycles and COVID-19 impact
The Baltic Exchange and Institute of Chartered Shipbrokers (ICS) webinar on the theme of economics, for Asia will be taking place on 13 May 2020 at 12pm Singapore (Shanghai and Hong Kong).
David K. Jordan, Regional Director, Asia, Maritime Strategies International will be presenting; ‘Shipping cycles and the impact of COVID-19 on the shipping industry’.
The cyclical nature of shipping has long been acknowledged as an integral part of the industry. An understanding of where we sit in the current cycle is vital to formulating an outlook.
What happens when Black Swan events disrupt the normal patterns? Indeed, we live in extraordinary times. COVID-19 has disrupted many aspects of our day-to-day life, including the shipping markets. In this webinar, we will look at the impact COVID-19 has had on the shipping markets, and place them in the context of the current cycle.
Using MSI’s unique brand of scenario-based analysis, we will then explore how COVID-19 and other factors may influence the markets moving forwards.
The presentation will cover:
• An introduction to Shipping Cycles
• The status of the Markets at End 2019
• The effect of COVID-19 on: bulk carrier, containership and tanker markets
• Other factors affecting the long-term outlook of the market
Click here for further details and registration.
The webinars in this series will be free of charge and open to all.
- Baltic and ICS webinar on environment and technology
The Baltic Exchange and Institute of Chartered Shipbrokers (ICS) webinar on the theme of environment and technology, for Europe and the Americas, will be taking place on 13 May 2020 at 3pm London (5pm Athens, 10am Stamford).
Philip Bacon, Consultant at Icthus Marine and Senior Nautical Advisor at Shell, will be presenting; ‘Shipping and the Environment: moving the conversation beyond 2020’.
“As expected, shipping has cleared the 2020 hurdle without major disruption. In this session, we will cast our vision ahead, and wider, moving on from Sulphur emissions to the other known impacts that shipping has on the environment – and those that the environment may have on Shipping. We will briefly explore some of the expressions we hear floating around the industry, and the broader political and social spectrum beyond shipping.”
Click here for further details and registration.
- Vacancy on Baltic Exchange Council
The Baltic Exchange Council is the body that oversees the Baltic Exchange in relation to its strategy for membership services, social responsibility and its relationship with governments, regulatory bodies and the global shipping community. The members of the Council also act as ambassadors of the Baltic Exchange.
Arising from the completion by one of the Council members of their term, the Baltic Exchange is calling for nominations to serve on the Baltic Exchange Council (BEC).
To be eligible the candidate needs to be a Baltic member, nominated by a Baltic member company and possess the knowledge and experience necessary to discharge their responsibilities. All nominations will be vetted by the Baltic Membership Council and passed to the Baltic Exchange Council for their decision.
All members are eligible for nomination. For more information about the responsibilities and requirements of a Council Member Representative please contact Janet Sykes email@example.com.
If you would like to nominate a member for this position please send the details to Lydia Ditzel lditzel@balticexchange.
- Member Update: 6 May
The following company has applied for Corporate Membership:
Company Individual Allegiant Shipping Ltd
Mr J Christou Associated Maritime Company (Hong Kong) Limited
Mr B Hu Mr H Liu Mr C Zhang
The following individuals have applied for membership of an existing Member Company:
Individual Company Miss S Hwang Korea Maritime Institute
Captain R Raj Simpson Spence Young Ltd Mr R Artheau The Air Charter Association Ltd
Any comments should be passed to Karen Karanicholas by 13 May 2020.
- Practical steps to manage sanctions risk
Shipping is currently in the centre of the sanctions spotlight – that is abundantly clear from recent US enforcement action, as well as public statements by US politicians.
This means that everyone in the sector, whether owners, charterers, insurers or banks needs to be vigilant and alert to the risks. That applies equally to maritime arbitrators, so what are the main things that they should be doing? Here are HFW’s 10 recommendations:
- Understand the impact of sanctions – arbitrators should be aware which countries are sanctioned, what sorts of restrictions the sanctions impose, and also which sanctions (e.g. US, EU, Singapore, Switzerland) are applicable. HFW can deliver a one hour sanctions webinar on demand – this gives an overview of the main issues and points to consider. To register interest please email firstname.lastname@example.org or register here to be added to our sanctions mailing list.
- Recognise that there is a real risk of enforcement – we have seen vessels and shipowners penalised by the US for sanctions violations, as well as US and EU imposing penalties running into millions of dollars. The following statement by David Peyman (US Deputy Assistant Secretary of State for Counter Threat Finance and Sanctions) will resonate with arbitrators as much as shipowners: “I really do think there’s much more space for improvement in the private sector. It seems like much of the shipping sector is a generational business that has been handed down from generation to generation and business was conducted in a certain way maybe 50 years ago or 30 yearsago or even 10 years ago. The world has changed quite dramatically in the last 10 years. The use of US sanctions I think has escalated and I think we’ve shown that we’re ready to undertake strategic targeting.”
- Keep in mind expansive US jurisdiction – the US adopts an aggressive approach, asserting primary jurisdiction over US persons (not only US nationals and US companies but also persons who are physically present in the US), US origin goods and US dollar payments. The US also has some sanctions which are commonly described as extra-territorial or “secondary” sanctions. These restrict the activities of non-US persons, either through the threat of denial of access to US markets, US currency and US persons, and/or the threat of being added to US sanctions lists.
- Carry out due diligence when accepting appointments (and on an ongoing basis) – arbitrators should be alert to references which may relate to a sanctioned individual or entity, a sanctioned asset (a large number of ships are on US sanctions lists) or a sanctioned activity. The US sanctions list is here (it runs to over 1,300 pages) and HM Treasury publishes a consolidated list (covering UN, EU and UK) here. Consider whether there might be alternative spellings of parties’ names, commonly used names (particularly of individuals) and different naming conventions in different countries. For those who prefer, HFW can run due diligence checks and give advice.
- Don’t be afraid to challenge the parties and their representatives – the sanctions prohibit not only dealing directly with a sanctioned individual or entity but also dealing indirectly with a sanctioned individual or entity (for example where a sanctioned individual is the owner of a corporate entity). Arbitrators therefore need to understand exactly who they are dealing with.
- Be mindful of payment issues – banks and others are extremely wary of the risk of violating sanctions, and this will cause them to refuse to process payments where there is any concern about a possible sanctions violation. That could include payment of arbitrators’ fees.
- Appreciate that sanctions are very dynamic (I) – because sanctions are imposed, varied and lifted in response to political developments they may change over the life of a reference and arbitrators need to be aware of any changes which impact on their continued ability to act (and get paid).
- Appreciate that sanctions are very dynamic (II) – some sanctions programs contain so-called “grandfathering” or wind down periods which authorise activity for limited periods of time prior to the imposition of restrictions. Arbitrators may be asked to act promptly to ensure necessary activities are completed within the grandfathering period. This was one of the considerations which underpinned the issues in Mamancochet Mining Ltd -v- Aegis Managing Agency Ltd & Ors  EWHC 2643 (Comm)
- Ensure that the Award does not itself facilitate a breach of sanctions – sanctions prohibit making a payment or other benefit available directly or indirectly to or for the benefit of a sanctioned person, as well as dealing with a sanctioned asset (such as a vessel), and both the EU and US sanctions have provisions dealing with facilitating, enabling and/or circumventing sanctions.
- Don’t forget Brexit – EU sanctions continue to have direct effect on UK companies and individuals during the Transition Period (i.e. until 31 December 2020). After this date, new UK sanctions regimes will come into force and EU sanctions will no longer have direct effect on UK companies or individuals in the absence of an EU nexus. From this time, it is possible that UK and EU sanctions could diverge.
Daniel Martin is a partner at HFW, based in the London office. He can be contacted on +44 (0)20 7264 8189 or email@example.com.
- The tragedy of summary judgement
Horace Walpole once said that “the world is a tragedy to those who feel, but a comedy to those who think”.
Judges and arbitrators are certainly an exception to that paradigm, as they feel the tragedy of the world precisely because they think. Often when thinking over a case, in particular in order to decide over a specific application, they suffer the tragedy of having to choose between two equally harmful courses of action. Whatever the final decision, something will be lost.
Few situations expose this tragedy as starkly as an application for summary judgement. For those not versed in legal jargon, summary judgement is the decision taken by an arbitrator or judge over a dispute on the basis of documentary evidence alone, without the need for a full hearing. Summary judgement can obviate the high costs of a hearing, as well as the painful expenses of a lengthy discovery or examination of witnesses. An early decision can save a considerable amount of time and money, as the hearing is inevitably the most expensive part of any adjudication.
It demands painful decisions from all the parties involved, however. The party applying for summary judgement needs to have full confidence in the strength of the documentary evidence of his or her case, because in the event that the decision is rendered against him or her, it will be more difficult to revert it without the extra amount of evidence to be given at the hearing. For the party opposing it, in case his or her case is weaker on the documentary evidence, summary judgement poses the tricky question of whether to accept it, avoiding the extra costs, or to resist it, gaining time and the possibility of changing the course of the adjudication.
The tougher conundrum, nevertheless, is borne by the judge or arbitrator.
Faced with an application for summary judgement, a dilemma imposes itself to the adjudicator. Should he or she grant it and be prepared for a challenge to the recognition and enforcement of the award on the grounds of public policy (Art. 5, 2(b) of the New York Convention 1958)? Or should he or she refuse it and force the case through a lengthy and costly hearing, at the expenses of the innocent party, giving, in turn, time to the recalcitrant party to dissipate its assets? This is by no means an easy decision.
Sure enough, if summary judgement is conceded against a party at fault, he or she will certainly try to avoid enforcement of the award on the grounds of procedural fairness, as the production of evidence was restricted. No adjudicator refuses production of evidence lightly. The court of enforcement of the award, moreover, will have plenty of scope to adjudicate on the question of procedural fairness, which, even if the documentary evidence was so strong as to fully justify summary judgement. In other words, it would be almost impossible to a court not to evaluate the strength of the documentary evidence on the face of the summary judgment application. And that takes time. The party at fault would have plenty of time to dissipate its assets, even more so, perhaps, than if the summary judgement application had been refused.
The default position for the arbitrator, under normal circumstances, is to refuse the application for summary judgment and let the arbitration proceed to a full hearing. This solution would certainly produce a sounder award and preserve the tribunal from questioning. The risk, however, is to turn the arbitration into a lengthy and expensive farce. A pantomime in which the characters’ role is simply to tell bit by bit a secret of Polichinelle.
For arbitration in general, as an institution, the most pressing question involving summary judgment touches its very effectiveness as a method for dispute resolution. As Lord Denning once remarked: “When I was young, a sandwich-man wearing a top-hat used to parade outside these courts with his boards back and front, proclaiming ‘Arbitrate, don’t litigate.’ It was very good advice so long as arbitrations were conducted speedily: as many still are in the City of London. But it is not so good when arbitrations drag on for ever.”
Paulo Fernando Pinheiro Machado, FCIArb is a diplomat, advocate and arbitrator, partner (on leave) of Pinheiro Machado Advocates. The opinions expressed in this article do not necessarily reflect that of the Brazilian government or of any institution to which its author is affiliated.
 Bremer Vulkan v South Indian Shipping  AC 909
- 50 years of Baltic golf
Chris Cox (Hon Treasurer and keeper of the BEGS Archive) looks back at 50 years of Baltic Exchange Golfing Society history
So, as the new decade dawned, five months on from the Moon landing, marking the end of an eventful decade of perpetual change and social awakenings, BEGS entered our 69th year as a society to the dulcet tones of Rolf Harris’ ‘Two Little Boys’ under the leadership of Harold Wilson’s Labour Party. Hope was springing eternal for a further bright decade and England were favourites to retain the World Cup due in Mexico in June, the same month as the upcoming first General Election in four years.
Our captain taking us into this new era was HF Faure. He was ably assisted by his vice WE Willie James, who many of our members will remember long after he retired and stopped playing.
After the usual lull of golfing activity in January and February our year kicked off on 5 March with the Annual Dinner held at The Devonshire Club in St James Street. 108 guests paid £4 a head which included all wines and table liqueurs. The menu was:
Smoked Salmon/Cream of Asparagus Soup/Rainbow Trout Meuniere/Minute Steak Chasseur with Brussels Sprouts and Macedoine of Vegetables and Chateau Potatoes/ Scotch Woodcock / Coffee – all for a bargain £4.
The main speaker was PL Ryde, golf correspondent of The Times. It is also one of the first occasions the name of Richard Fehr is mentioned in the annals. The Welsh guests were happy as Wales had beaten England 17-13 the Saturday before at Twickenham. The Five Nations would eventually be shared between them and France. ‘Love Grows’ by Edison Lighthouse topped the charts throughout March that year – a rather apt title for the time.
Rather surprisingly, on 18 March the AGM in the Queens Room on the Baltic was only attended by seven people – with four being unable to attend due to ‘business’ commitments. Minutes from the meeting throw up some interesting points:
1) Willie James became our captain, with Lt.Col EG Easter coming in as his vice.
2) The meeting also selected the team to represent us against the Cardiff Exchange two months later!
3) The dinner showed a profit of £10 but it was decided that the venue lacked ‘ambience’ and that the food ‘was not up to the standard expected by our society’. The Connaught Rooms and the Cafe Royal would be approached for 1971 – the dinner was eventually held at the Park Lane Hotel. We would not return to Devonshire Club which went into liquidation in 1976.
4) With regards to the accounts, it was decided that the society should sell its investment in war loan stocks which had been purchased as a 5 per cent issue in 1933 – this raised £95 (equivalent today of £600)
This was the first year when, proposed by the new Vice-Captain, that we approached the Baltic for a contribution, which was approved later in the summer.
Subscriptions brought in £124 – full sub was £2
5) Dudley Speagall, who had paid for the original honours board which covered the first 50 years of the Society, offered £18 to pay for the second board which was gratefully accepted
6) Trophies were to be reinsured – the Erlebach Cup – the main Cardiff match trophy – was reinsured for £100 (£1600 in today’s money which would imagine is 20 per cent of what it’s actually worth!}
April, as ever, was a busy month generally.
Gay Trip – priced at 15/1 and ridden by Pat Taffee for Trainer Fred Rimell – won the Grand National. At the Oscars on April 7, Midnight Cowboy won Best Picture. John Wayne secured Best Actor for True Grit and Best Song went to Raindrops Keep Falling on My Head.
At Augusta on 9 April the 34th Masters started, ending in an 18-hole playoff on the Monday between Gene Littler and Billy Casper, the eventual winner. On the same day – and on a much lesser scale – BEGS faced The Metal Exchange at The Addington in Croydon, a match we lost overwhelmingly 21 points to six! Not one singles match in the morning was won. The day after, as Paul McCartney announced that he was leaving the Beatles and bringing to an end the speculation that they had split up, Simon and Garfunkel’s Bridge of Troubled Water reached Number 1.
Two days later on Saturday 11 April, Chelsea and Leeds United played out a 2-2 draw in the FA Cup Final on a rain-soaked pitch at Wembley. The game is still considered one of the most violent matches ever. Chelsea would win the replay 2-1 18 days later at Old Trafford, which is the last time the final was played in April.
Harry Catterick’s Everton, including the Holy Trinity of Ball, Kendall and Harvey were also crowned League Champions in April. The evening of April 11 saw the launch of the well documented and nearly fatal Apollo 13 space mission, which culminated in a return against all odds some six days later.
On a sad note, on 17 April the Society’s President DE Erlebach died in Eastbourne aged 87. He had stood down the year before but was persuaded to carry on, when he had moved to Sussex that year. A stalwart of BEGS he acted as secretary from 1923 to 1948, treasurer from 1948 to 1967 and president from 1956 to 1970. He was the last captain before the outbreak of war in 1939 and, it is mentioned, was devastated when much of the society’s records were lost when his office was destroyed during the Blitz.
The spring meeting was held on 29 April at Hadley Wood, with 30 members taking part and RC Clancey winning in a count back with MTR Mabbs, both scoring nett 71s.
That evening in Vienna, Manchester City beat Gornik Zabre 2-1 to win the European Cup Winners Cup.
And so to Woodhall Spa on the weekend of May 16/17, and the annual duel with the Cardiff Exchange Golfing Society – 16 Baltic players met 18 Cardiff members at the Petwood Hotel on the Friday evening and were welcomed by Mr Duckett, the general manager. Cost per night was 57/6d including breakfast.
The singles were won 10 1/2 to 7 1/2 by CEGS followed by the foursomes cup also heading back to Wales after a 5-4 triumph, so a four-point victory for our visitors. After the black-tie dinner of roast saddle of lamb and pears belle helene on the Saturday evening, the mixed foursomes on the Sunday were won by GB ‘Rupee’ Sturt and Lak Fairweather with 40 points. During the dinner it was announced that 37 ties would be produced and offered to all those who played in the match since 1958 and that the captain of CEGS would take honorary membership of BEGS and be entitled to join us at the spring, summer and autumn meetings. ‘Back Home’ by the England World Cup squad topped the charts that weekend. A week later, ‘A Question of Sport’ first appeared on our screens – one month earlier than The Goodies!
The BEGS squad for Woodhall Spa was:
WE James / RC Clancey / FJ Collis / ESN Faure / JR Faure / HF Faure / DM Llewellyn / KGL Mason / AC Montgomerie / DE Naylor / WAJ Reardon-Smith / HCA Rowe / G Scarborough / JD Shaw / NW Spratt /GB Sturt / BF Turner.
CEGS were represented by:
V Hay / P O’Leary / AD Arnold / WS Branson / JD Barlee / RW Groves / J Downing / L Fairweather / A Alexander / D Winks / D Williams / H Gibson / M Davies / R Geldard / A Hooper / D Webster / W Bowles / G Needham.
A week after Nijinksi, ridden by Lester Piggott, had won the Derby for Vincent O’Brien at 11/8 at Epsom. We had a rare, albeit close, 6 1/2 to 5 1/2 win against the Corn Exchange at Tandridge on June 10. Wins were few and far between at the time as was in evidence nine days later when we went down 6 3/4 to 2 1/4 to Lloyds at the Berkshire after yet another morning of zero points. The night before, Ted Heath had swept the Conservatives into power with a 31-seat majority.
In between our losses, on 14 June England had thrown away a two-goal lead against West Germany in Leon in the quarter finals of the World Cup to go out 3-2 with what many claimed was a better team than in 1966. It would be another 12 years until we qualified again.
A better week followed with Tony Jacklin winning the US Open at Hazeltine, Minnesota by seven strokes, with four consecutive under-par rounds. For Jacklin it was his second Major in two years having won the Open the year before at Lytham.
And so to Thorpeness, accompanied by Mungo Jerry’s In the Summertime, for the annual summer jolly in Suffolk over the weekend of 4/5 July. 21 players convened at the Dolphin Hotel on the Friday evening and 12 of them stayed to play one more round on the Monday. Lunch on the Saturday was the only meal taken at the golf club with all other meals at the hotel. On the Saturday afternoon, John Newcombe beat Ken Rosewall in an all Australian Men’s Final at Wimbledon.
KGL Mason won the singles with 32 points with the Saturday foursomes going to Lt Col Easter and DA Mason with 32 points. Overall weekend winner was Lt Col Easter with 60 points. There was also an additional prize over the three rounds including the Sunday morning for best scores over a ‘Blind’ six holes chosen by the captain – in 1970 they were 2/3/7/10/13/16. We aim to reintroduce this in 2021! A further prize was also available for best scores on the Par 3’s.
Against the Stock Exchange at Woking on 7 July, we fared slightly better in the morning amassing half a point followed by a whole one point in the afternoon to go down 6 1/2 to 1 1/2 – and so it went on. Four days later at St Andrews Jack Nicklaus won the now famous play off against the unfortunate Doug Sanders over 18 holes to claim his second Open Championship. Leading by one shot down 18 Sanders took four shots from 70 yards including a tiny putt to send the match to a playoff. The original Van de Velde moment?
As Autumn arrived we saw Dave Stockton win the US PGA at Southern Hills, Oklahoma and some of us may have been at the Isle of Wight festival over the August Bank Holiday weekend to see Jimi Hendrix, The Doors, The Who and The Moody Blues. Hendrix died just three weeks later in London on 18 September and Janis Joplin passed away on 4 October in Los Angeles.
Another point of interest is that on 13 September the first New York Marathon took place with the winner clocking two hours 31 minutes!!
Our concluding two fixtures took place in October, firstly on the 3rd with another loss this time against Military Staff College at Camberley Heath. We lost 5-3 playing against a team made up of four majors, three captains and one wing commander – the aptly named JP Scrambler!
The season came to an end on 6 October at West Hill Woking where a young Robert Bird (playing off 19) appears for the first time joining 30 other golfers for the autumn meeting won with a nett 71 by LA Baker.
The Society’s primary trophy, the Gold Cup, comprised 35 golfers with handicaps ranging from five to 24 in what seems to have been a localised competition of some sort. Victory went to RC Clancey off 15, the first of his two triumphs.
So 50 years on and in the midst of this COVID-19 lockdown we can reflect on various aspects of yesteryear – of days when a pint of Guinness cost today’s equivalent of 18p and a dozen eggs 11p – to a time when the shipping market hit an eight-year high triggering an investment frenzy which was made worse by increasing world economic problems as a result of which seaborne trade barely increased for a decade – to an era of glam rock, of new fashions and longer hair.
New ideas began to creep into the Society. Baltic grants, ties, localized Gold Cup matches and poor attendance at the AGM. Some things never change
Christmas number one in 1970 by McGuinness Flint was ‘When I’m Dead and Gone’. Sadly nearly all of those mentioned above are just that – and they are missed.
Yet still our great society moves on undaunted. See you all ‘on the other side’ in the sun.
HONOURS BOARD 1970
PRESIDENT – DE ERLEBACH
CAPTAIN – WE JAMES
GOLD CUP – RC CLANCEY
SYMONDSEN CLEEK (NET SPRING AND AUTUMN) – MRT MABBS
ALEXANDER KNIGHT CHALLENGE CUP (SPRING) – RC CLANCEY
LANGRDIGE TROPHY (AUTUMN) – KGL MASON
VETERANS CUP (OVER 50 YEARS) – ST CALDER
ADAMSON CUP (SCRATCH SPING AND AUTUMN) – HGA ROWE/KGL MASON
BILLMEIR CUP (AUTUMN BEST SCORE OFF HANDICAP) – LA BAKER
ERIC FAURE (COMBINED SUMMER MEETING) – LT COL EG EASTER