With the blessing of Daina Shipping (Rena's Owners), Captain Kevin Judkins has published a book of his personal story and photographic record during the salvage operation.
Tuesday, 1 November 2016
120 Days at Astrolabe
With the blessing of Daina Shipping (Rena's Owners), Captain Kevin Judkins has published a book of his personal story and photographic record during the salvage operation.
Thursday, 6 December 2012
Rena, salvage and contractual fairness
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| Awanuia de-bunkering Rena: Maritime NZ |
Svitzer are now claiming that the contract (the one voluntary renewed twelve time) as unconscionable and they they should be able to get the Court to set a more reasonable hire rate retrospectively.
As the legal points relate to application of the salvage convention and the provision to give priority to the protection of the environment, this case is attracting attention from maritime Lawyers. This article is from Lloyd's List and examines the legal issues surrounding whether the Convention can be cascaded down to sub-contractors providing supporting services.
A fairly dry legal read, but with all the elements of a best seller.
AM
Can salvage sub-contracts be set aside for unfairness?
Landmark litigation is under way in New Zealand in relation to the Rena salvage
Simon Tatham and Mike Allen, Lloyd's List - Thursday 6 December 2012
IT IS rare in practice that provisions of the 1989 International Salvage Convention fall under the judicial spotlight.
Many are familiar with the famous provisions of Article 13 in assessing salvage awards and others are only too happy to forget the infamous Article 14 killed off, in effect, by the incorporation of Scopic within Lloyd’s Open Form.
Less so Article 7, however, which is currently the subject of litigation in New Zealand in the context of the Rena grounding. In that case the salvage, now a separate wreck removal operation, was initially commenced under LOF terms with Scopic invoked. The most suitable tanker available to receive the casualty’s bunkers was chartered in at short notice by the salvors, Svitzer. It all happened very quickly, as bad weather was expected.
The parties entered into a short-term sub-contract on the Supplytime 2005 form with rates and other terms following for discussion only after the tanker was already under way for the grounding site. Unfortunately for the salvors, many weeks later the price, originally sought for an expected seven-day job, was now running into millions of New Zealand dollars.
No doubt coming under pressure from the P&I Club that was picking up the bill under Scopic together with the usual uplift on expenses, the salvors eventually applied to court seeking an order that the contract be annulled or the price modified pursuant to Article 7. The interesting question, among others in dispute, is whether this provision applies to a sub-contract as opposed to the salvage contract itself.
To turn the clock back, reflecting to an extent old case law on the jurisdiction of the Admiralty Court, the preceding Brussels (Salvage) Convention of 1910 contained a provision that every agreement as to assistance or salvage entered into at the moment and under the influence of danger may, at the request of either party, be annulled or modified by the court, if it considers that the conditions agreed upon are not equitable. It is reasonably clear from this that the convention was intended to apply to salvage contracts only.
However, the provision was subtly changed in the 1989 convention. Article 6 provides that the convention applies, in rather broad terms, to “salvage operations”. Article 7 then provides that “A contract or any terms thereof…” may be annulled or modified by the court if its various tests are met.
In other words, the convention draughtsmen did not specifically restrict the scope of this narrowly to salvage contracts.
Reading these two articles together, does a contract entered into for the purposes of or in the context of a salvage operation fall within the ambit of the convention so as to give a court the power to modify or annul?
If so, then potentially every contract for services entered into between a salvor and a sub-contracting third-party supplier may likewise be caught. Of course, the applicant is still required to show that the contract was entered into under undue influence or influence of danger and the terms are inequitable terms, or that the payment is in an excessive degree too large or too small for the services actually rendered. These are fact dependent and quite high threshold tests.
Nonetheless, this is or should be a concern for the salvage industry and in particular their sub-contractors. Salvors frequently have no choice but to pay exceptional rates to local contractors either because time does not permit haggling or the contractor is the sole provider of essential craft or equipment or simply because the action is taking place in a difficult corner of the world.
Is it desirable that salvage contractors might agree to those terms in the knowledge that the agreement can be revisited in due course? Of course it might cut both ways inasmuch as that same threat might temper the financial ambitions of the less scrupulous suppliers just as it might assist P&I clubs in keeping a lid on runaway Scopic expenditure where not all salvors, conscious of their 25% mark-up on expenses, might go that extra mile to negotiate the best prices.
A final point lest this is not entirely clear. The convention will be applied by the tribunal chosen under the sub-contract, not the LOF arbitrator.
Returning to the litigation in New Zealand, the sub-contractor tanker owners applied to strike out the claim on grounds that the convention was never intended to apply to third party sub-contracts. The judge at first instance decided that there was a triable issue, and so the case goes on.
As it is unlikely that a similar case will crop up, and this is the first on the point since the 1989 convention came into force, the salvage and P&I world is, or should be, looking closely at the outcome.
Simon Tatham is a solicitor and partner of Tatham Macinnes LLP and Mike Allen is a consultant with TugAdvise, a specialist legal service advising those concerned in the tug and OSV markets.
Saturday, 16 June 2012
Demobilisation
Tuesday, 12 June 2012
Rena salvage demobilisation
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| No more boxes |
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| Longitudinal girders gone |
With the salvage ended this is probably the last post until the TAIC report is released. It's been an interesting ride, with big thanks to a my mates who 'flipped the bird' to MNZ's media relations team and the draconian 'non disclosure'. Everyone's a reporter now...
The closing post wouldn't be complete without a plug for 'Black Tide' by John Julian. The book explores the 'what could have been' with expert opinion from salvors and mariners who incidentally weren't part of the good news spin cycle. A good read with no agenda and plenty of informed dialogue.
Antipodean Mariner
Thursday, 31 May 2012
Where's the Monaro?
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| Holden Monaro HQ - an Aussie classic |
Not great news I'm afraid, Troy.I had a look at some of the close-up photos and Bay 9 is aft of the hull break. She folded at Bay 6, so Bay 9 is about 20 metres underwater with the after end. AM on Astrolabe Reef Towies
Oh that doesn't sound good, I am not in the shipping business but is a "hold" different from a "bay"? I looked at a container loading diagram and the numbering sequence for 20 ft containers is bay 1,3,5,7,9 etc. and 40 ft containers is bays 2,4,6,8 etc . Which are in turn divided into the holds of the ship. So my theory was that my container is in hold number 3 under the row in which that Mercedes came from..... on Astrolabe Reef Towies
Here's the shot of the airborne Merc with Rena in the background. Troy, you are spot on with the 20 foot cell numbering convention. Your Monaro should be in Bay 9 at the aft end of Hatch 3, Slot 03 is two slots to starboard (even Port, odd Starboard) of the centreline and Tier 04 is second height (tier 02, hold bottom, tier 04 second height). Assuming 2 metres of mangled double bottom structure and 2.5 metres for the 1st tier container, your Monaro should be about 4.5 metres above Astrolabe Reef.
Keep us posted...
AM
Saturday, 26 May 2012
O TAIC, where art thou?
This is not rocket science. No-one died, the ship's charts and records were recovered intact and the Crown Prosector has brought the case to a concluding trial and sentencing in this period. The Root Cause Analysis fundamentals of determining unsafe actions and unsafe conditions are pretty straight forward for a skilled investigative team.
The reason for the AM's "pissed off" attitude is that with the close of the criminal case against the Captain and Second Officer, the other players in this tragedy can slink off behind their respective corporate anonymity with some confidence that their roles will not garner too many headlines when the findings are issued.
The AM cannot dispute the facts of the grounding or condone the individual actions of the two mariners. However, mariners don't deliberately set out to have a grounding, spend months under detention separated from family and and then jailed. Mariners for the most part are the 'pointy end' of casualties and criminalisation because commercial imperatives make unsafe acts a viable solution.
While the TAIC report remains 'work in progress', the individual and collective contributions to the grounding the Rena will fade from the public's memory and Captain Balomaga and 2/O Relon will be immortalised as the only villains to be publicly punished for their actions on the morning of October 5th 2011.
The Antipodean Mariner
Saturday, 5 May 2012
Ingots
Packs of aluminium ingots were flown off the Rena, apparently 'none the worse for wear', over the past few day and will join the valuable salved property in the bonded Yard in Tauranga. The current price of aluminium is about US$1,900 per tonne so there will be some positive financial contribution.
The Antipodean Mariner
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| Aluminium ingot pack on its way |
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| And stowed ready for off-loading |
Tuesday, 1 May 2012
Astrolabe Reef Towies
Every person at Astrolabe Reef has been reminded again of the blanket non-disclosure of text, commentary, opinion, photos or video footage of the salvage operation. Funny to think that this is New Zealand and not Stalinist Russia.
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| The world's most expensive two truck |
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| Merc slung under the McDermott chopper for the short ride home |
Wednesday, 4 April 2012
Seagate/Timor Stream and Rena
The bow of the Timor Stream has penetrated right in to the engineroom of Seagate,taking what would likely be the Officers Mess and Ship's Office on the starboard A Deck.

Seagate

Depth of penetration into the accommodation

Part of Seagate's lifeboat davit draped over the bow


Thursday, 8 March 2012
Release of the interim Rena report
Despite being an interim, the report appears to identify most of the contributing factors. The vessel lost time on her schedule in Napier, due to another vessel having a priority for the berth and stevedores. When she sailed from Napier, reporting an ETA Tauranga of 0230 on the 5th, the Master shortened the course around the Mahia Peninsular to make up time.
At midnight on October 5th, Port Control told the Second Mate that the ship's ETA of 0300 at the Pilot Station was right at the end of the tidal window for entry. Between 0100 and 0200, the course was progressively altered to port in small increments.

Chart of the Bay of Plenty and the vessel's track from TAIC's Interim Report
While the Master and Second Officer are squarely in the gun, the Antipodean Mariner continues to hope that TAIC's full report will look at the overt commercial pressures put on Masters to meet schedules published weeks earlier by Owners and Charterers. One thing for certain is that the Master and Second Officer will probably spend a lifetime asking themselves on how they ended up on Astrolabe Reef.
Tuesday, 6 March 2012
Astrolabe Reef update


Sunday, 4 March 2012
Storm passes
With the decks clear of containers, the Salvors are reported to be cutting into the boxes below decks to unload their contents in situ.


Friday, 2 March 2012
Storm at Astrolabe Reef
Winds are forecast at 40 knots, gusting to 60 knots, and Smit Borneo has been berthed in Tauranga to avoid the worst of the weather.

The calm before the storm - Smit Borneo and Go Canopus (LOC/Maritime NZ)
The condition of the two parts are being monitored as the heavy swells could cause the stern to drop into deeper water - the bow seem to be well grounded and has apparently not moved since October.

Any change in status will be posted but this weather system is the worst forecast since Rena sank on 10th January.
Wednesday, 29 February 2012
Rena's Master and 2/O plead guilty
The Rena hit the Astrolabe Reef in October last year causing an environmental disaster - spilling oil and containers into the water and killing masses of sea animals. The stricken ship broke in two early this year.
The captain pleaded guilty today in the Tauranga District Court to charges laid under the Maritime Transport Act, Crimes Act and Resource Management Act.
The ship's navigation officer, whose name is also suppressed, also appeared in court today and he pleaded guilty to a charge laid under the Maritime Transport Act and three Crimes Act charges.
Both men face the same charges; under the Maritime Transport Act 1994 for operating a vessel in a manner likely to cause danger, under the Resource Management Act 1991 for discharging a contaminant and on three charges under the Crimes Act for altering ship documents.
The captain faces one additional charge under the Crimes Act for altering ship documents.
The charges under the Crimes Act each carry a maximum penalty of seven years imprisonment.
The RMA charge is under section 338 (1B) and (15B) relates to the 'discharge of harmful substances from ships or offshore installations'.
It carries a maximum penalty of a fine of $300,000, or two years imprisonment and $10,000 for every day the offending continues.
The Maritime Transport Act carries a maximum penalty of $10,000 or a maximum term of imprisonment of 12 months.
Sentencing for both men is scheduled for May 25 at the Tauranga District Court.
The navigation officer is scheduled to reappear in the Tauranga District Court on May 22 where more pleas are expected.
Source: http://www.stuff.co.nz/environment/rena-crisis/6498529/Rena-captain-pleads-guilty-to-all-charges
Sunday, 19 February 2012
Recovery



Wednesday, 15 February 2012
Squaring Away
Squaring away is an old sailing ship term to describe the crew's final task at the end of the voyage, squaring up the yard arms on the masts and making ready to pay off. Squaring away in the context of the Rena will be the final reckoning of costs.
A recent report in the NZ media put the Rena's salvage bill at $130 million, of which about $28 million was on the Government's tab. With the sole tangible assets of the salvage to date being the container discharged off the deck - many of these empties owned or leased by MSC - the Antipodean Mariner wonders when the Insurers will say enough is enough!
Let's recap the layers of insurance and who has their hand out, by way of insurable interest.
The ship was beneficially owned by Costamare, and now that she is resting on Astrolabe Reef in two parts it is incontrovertable that she has become a Constructive Total Loss. It is therefore probable that Costamare have been paid the insured value under the Hull and Machinery Policy. As nothing was salved from the hull, the Insurers have nothing of value and effectively own the hulk along with the responsibility for wreck removal if this is successfully enforced (under the Resource Management Act?)
MSC lost equipment, in the empty and full containers both lost overboard and salvaged and now held as security by the Salvors at several container parks in Tauranga. They also 'lost' the bunkers that they, as Time Charters, had provided to the Rena. These will form the basis of a claim by MSC on their own insurance, and if the bunkers, lubricants and hydraulic oils can be re-refined there may be a small financial clawback for MSC's insurers.
The Protection and Indemnity insurance cover for oil recovery, pollution prevention has a way to run at over $1 billion, but the Swedish Club is obliged to act reasonably and in the best interests of the self-insuring Members who are paying the bills.
What the AM questions is the effort being expended salvaging water-damaged bags of milk powder off the bow section of Rena, and flying it ashore by helicopter to its inevitable end in a landfill. If the cost of recovery exceeds the (nil) salved value, who is paying for the fleet of maritime and aviation assets to engaged in the ever diminishing exercise?
The point must be fast approaching when the Insurers tell the Salvors and NZ Government that they have satisfied their obligations and that Rena poses no risk that further salvage can mitigate. While the AM is sure that the well intentioned agencies of Government will settle for nothing less than every trace of the ship and her cargo being removed from Astrolabe Reef, this is not practically achievable. The wreck poses no long term threat to Astrolabe Reef or navigation into the port of Tauranga, and is no doubt being populated by fish.
How the agencies of the NZ Government deal with 'expectations management', when the Smit Borneo is towed over the horizon, will make for an interesting space to watch.
The 'pot of gold' involved no digital alteration, just the photo-stitching of the fortuitous placement of Rena and the tug Singapore.
AM
Friday, 20 January 2012
Anchor handling
Smit Borneo, while a complex and sophisticated salvage asset, is a dumb barge and needs an attendant fleet of towage and anchor handling tugs to position her at Astrolabe Reef. The anchor spread enables the barge to winch herself to the work site and hold position in the prevailing sea and swell. Each anchor has a tail, enabling the anchor handling tug to dislodge and relay.
This sequence of GO Canopus deploying one of Smit Borneo's anchors and buoy.
AM
Wednesday, 18 January 2012
Digital confetti
The Antipodean Mariner has been following the general and specialist maritime media coverage of Costa Concordia. Black boxes, AIS, smartphones and even Facebook have been used to reconstruct the last hours of the vessel with incredible accuracy and insight into the minds of the main protagonists.
The digital confetti trail which follows ships, both formal and informal, is an indellible record immune to tampering but still highly transparent. The loss of Costa Concordia dwarfes that of the Rena but shows that with enough effort, information in the public domain can be reconstructed and disseminated ahead of any formal inquiry. AM believes that informed analysis will fill any information void left by officialdom, and hopes that TAIC will issue something substantive on Rena earlier than the promised mid-year statement.
AM
Sunday, 15 January 2012
Last word from Astrolabe Reef
The AM's travelling for a week and using the Android Blogger app on the Samsung Galaxy tablet. In what may be the final communique from Astrolabe Reef, a close friend of the Antipodean Mariner eloquently described his feelings as they put their stern to the Rena for the last time;
The Rena is just a hulk now, whose carcase will be picked over by salvors, divers, insurers, politicians and lawyers for years to come. She no longer has any grace, life, mystique or majesty - the love affair is over.
The AM will keep a weather eye on Astrolabe Reef but the prize of salvaging the Rena has been lost.
AM
Friday, 13 January 2012
Astrolabe Reef and 'no go' zones
Koraki and GO Canopus on opposite sides of Rena

Friday's isobar chart

A maritime expert has opined that New Zealand should introduce compulsory 'no go' zones to stop ship's taking short-cuts around the coast but the AM's smells a bit of self-promotion of a commercial product. Every ship's Safety Management System contains instructions to the Master and Navigating Officer on passage planning. While ships have schedules to maintain, 'no go' zones will be just another useless layer of unenforceable regulation.
AM



















