A California man has pleaded guilty to one count of attempting to damage a maritime facility after dropping a Holland America cruise ship’s anchor into the ocean and faces 20 years in prison and a $250,000 fine.

Tampa, FL, federal prosecutors said that the man in question, 45-year-old Rick Ehlert, pleaded guilty to the charge almost a year later from his ill-fated November cruise on the MS Ryndam, while travelling from Costa Maya, Mexico back to Tampa. Ehlert was caught on a security camera breaking into a control room area and sending the 18-ton anchor into the Gulf of Mexico.

Authorities on the ship confronted Ehlert where he told them he was drunk at the time and that the anchor on the cruise ship was similar to the system on his 50-foot recreational boat.

Ehlert’s lawyer, Daniel Castillo told USA Today that Ehlert is guilty of “felony stupidity” but doesn’t think this should be considered a federal crime.

Luckily, AP reported that the 1,260-passenger Ryndam did not suffer damage due to the anchor not hitting the sea floor.

Germany plans to lobby other European Union countries to allow the deployment of private armed guards on their merchant ships in high-risk areas as a piracy crisis escalates, ministry officials said.

But analysts said the initiative was likely to face legal and practical difficulties. Somali piracy is costing the world economy billions of dollars a year, and international navies are stretched to combat the menace in the Indian Ocean due to the vast distances involved. In desperation, more shipping companies are considering deploying private armed guards on their vessels, Reuters reported.

The German government is looking into changing the country’s weapons laws to allow security personnel to bear firearms on ships in high-risk areas. It could also certify those private security companies that could be used on merchant vessels, a government official said.

“Our goal is to develop a coordinated approach to be presented at the International Maritime Organization (IMO) meeting in September, and EU governments are the main partners to bring on board,” said Jan Gerd Becker-Schwering with the German economy ministry. “To go this alone would not be beneficial.”

The European Union said allowing private armed guards on merchant vessels was a decision to be made on a national level, adding that ships should have best management practices (BMP) in place, including measures to prevent pirates from getting onboard and to protect crew members.

“The implementation and execution of these BMPs, however, is the responsibility of the ship owners,” an EU spokesman said. “These private security contractors operate under the law of the flag state.”

Separately the IMO said such a move was up to national governments but warned of a potential escalation in violence. “IMO does not endorse the use of privately contracted armed security personnel on board ships … and operators should take into account the possible escalation of violence,” the UN’s maritime agency said.

J. Peter Pham, with the Atlantic Council think tank, said the German plan could encounter legal setbacks, both domestically and abroad.

“Despite the apparent reasonableness of the German proposal, it will face several hurdles,” Mr Pham said. “It needs to pass both houses of the German parliament, where there will be opposition from the left, which tends to look askance on (what politicians tend to view as) ‘mercenaries’.”

He said it could prove difficult to convince foreign port authorities to allow armed groups into harbours.

“Even if Chancellor (Angela) Merkel’s government gets the necessary laws enacted, it will be an uphill battle to convince the authorities in ports to allow the security teams in, much less to get other countries, especially in Europe, to follow.”

International Chamber of Shipping Secretary General Peter Hinchliffe said the German plan was helpful in setting a precedent for approving armed guards in flags where they were not currently allowed.

“But it must not create a mechanism for governments to abrogate their responsibility under UNCLOS to protect trade routes,” he said, referring to an international convention that tasks nation states with tackling piracy on the high seas. German ship owners’ association VDR said private armed guards were a “second-best solution” to deploying police or military forces. The German government has ruled this out. “Using sovereign forces would not only pose financial and capacity problems, but we could only use them on ships that sail under the German flag,” Becker-Schwering said.

The North Atlantic Treaty Organisation (NATO) has launched a new and improved website for its NATO Shipping Centre (NSC), with the aim of delivering wide-reaching information about pirate activity for the shipping community.

Providing comprehensive and relevant data at just the click of a button, the NSC website has a fully scalable map which plots the latest pirate attacks, allowing vessels to avoid piracy hotspots. The map covers the Gulf of Aden, Horn of Africa and Indian Ocean and it is hoped that through a more interactive and simplified site layout, crew can keep up-to-date with pirate activity quickly and without difficulty. 

Having received a briefing on the new website, Admiral Sir Trevor Soar, Commander of MC Northwood, said: “Piracy is a serious threat for the shipping community and anything that can be done to deal with and overcome this issue is to be welcomed. The NATO Shipping Centre has listened to their users and responded to their needs with a new, more interactive and relevant website demonstrating that NATO and the shipping community are working together to tackle the scourge of piracy.”

The new website address is: www.shipping.nato.int

Rickmers-Linie, the Hamburg-based company specialising in liner services for the transportation of break bulk, heavy lift and project cargo, has extended its executive board with two new appointments.

Rüdiger Gerhardt has been appointed Managing Director while Ulrich Ulrichs has become Deputy Managing Director.

The company, which forms part of the Rickmers Group, has a history spanning 175 years and currently owns or long-term charters 13 specialist vessels. On demand, Rickmers-Linie also adds further capacity to its fleet through spot charters and specialises in cargo such as yachts, transformers, railways, generators, locomotives and brewery tanks.

Mr Gerhardt is well-acquainted with the Rickmers Group, having worked there since 1978. Prior to accepting his current position, Mr Gerhardt was Director for Human Resources, Administration and Finance and his new role will include heading up the Logistics Services business division at Rickmers Group.

Mr Ulrichs has been in charge of Line Management since 2005 and has been Director of this division since 2008. Both men will remain responsible for their previous business areas. Jan Boje Steffens, Managing Partner and Chief Executive of Rickmers Group, remains President and Chief Executive of Rickmers-Linie.

Standard & Poor’s has upgraded the ratings outlook on The Swedish Club from ‘stable’ to ‘positive’ and the Club’s BBB rating is affirmed. Its decision is based on The Swedish Club’s continued progress in strengthening its capitalisation and performance.

Commenting on the upgrade, Lars Rhodin, Managing Director of The Swedish Club, said: “This report from Standard & Poor’s has a warm tone which underlines the progress made over the past few years. It identifies a series of positive markers and, in particular, notes that the Club continues to build a strong capital base and has important qualities of financial flexibility.

“The outcome, with an upgraded ‘Positive’ outlook, is both an encouragement to The Swedish Club’s management team and a spur to further progress. We have a clear programme to continue to strengthen the Club’s finances, grow the business selectivly and diversify the portfolio. In the latter area, we are pleased by the early progress made by our new Energy business, centred on Oslo,” he said.

Dutch law firm AKD says that, while beleaguered ship owners may be looking increasingly to Chapter 11 filings in the US to protect their financial interests, the fact is that Chapter 11 does not enjoy the force of law throughout the world, and certainly not in The Netherlands.

Haco van der Houven van Oordt, Head of the Shipping & Offshore team at AKD’s headquarters in Rotterdam, said: “Nobody, and that includes the banks, wants to see shipping companies forced out of business. On the other hand, one cannot expect the banks to forgo the opportunity to ring-fence their losses in cases where they deem this to be the most propitious course of action.

“Some observers have predicted an increase by owners in the use of bankruptcy protection filings, and evidence from the banks suggests that a number of owners have indeed threatened to take such steps absent an agreement to restructure their debt.

“In this respect it is worth noting that Chapter 11, or similar protection, does not enjoy worldwide currency. It works in those countries – including the US, the UK and in fact many others – which adopt a universal approach to cross-border insolvencies. But there are other countries, most notably The Netherlands, which adopt a territorial approach to bankruptcy.

“Banks can take action against the assets of a debtor in The Netherlands, even if the debtor is in liquidation or subject to similar proceedings. Under Dutch law, it is possible to act for banks and to auction vessels in The Netherlands, despite insolvency and/or liquidation proceedings being in place in other countries. Such proceedings do not prevent a bank from enforcing a mortgage in The Netherlands.”

The Netherlands is also a jurisdiction in which very few claims enjoy priority over mortgage claims. Moreover, it is widely recognised as a haven for those looking to attach ships and/or to arrange for their swift judicial auction, and counter-security is seldom required. There are very few legal hurdles to pass in order to obtain leave for attachment and, in addition, there is no obligation for the claimant to pursue its claim in the courts of The Netherlands following the attachment.

Haco van der Houven van Oordt added: “While most mortgages are enforced in Rotterdam, a significant number are also dealt with in Amsterdam. All ships proceeding to Antwerp have to transit the River Scheldt, where they are also subject to Netherlands jurisdiction. And so it is that a number of mortgagees are known to have taken active steps in the past to direct vessels to ports in the Amsterdam – Rotterdam – Antwerp range for the specific purpose of bringing themselves within the jurisdiction of the Dutch courts.

“In the light of recent events, many observers are predicting a rush on the part of ship owners to seek Chapter 11 protection. But The Netherlands is a place where creditors can still pursue the attachment of assets despite a Chapter 11 filing,” he concluded.

As many as 60% to 80% of ship owners are in favour of arming their vessels even though the cost can be as high as $50,000 per passage, a leading Danish ship owner has claimed.

“We took the decision three to four months ago that we could not defend our ships without contracting-in armed guards with light machine guns and who will shoot back,” said Per Gullestrup, CEO & Partner of Clipper Ferries/Ro-Ro.

“I hear that 60% to 80% of owners are in favour of arming their ships, which is a lot, and if you figure out that every time you do, it costs an owner between $30K and $50K to put armed guards on each passage then you are talking about a lot of money,” he said.

Mr Gullestrup has built up first hand knowledge of dealing with pirates after he negotiated with Somali pirates over the release of the CEC Future back in 2008. Pirates held the CEC Future for 71 days, and only released the ship after negotiations and the payment of a ransom of nearly DKK 9 million.

Per Gullestrup was heavily involved in negotiating with the pirates in 2008. A Somali pirate now faces a 25 year prison sentence in the US after he was convicted. “Despair is a good word,” to describe the way ship owners feel about the whole piracy issue, he told SMI.

“It is a hard word but there are times in a quiet moment when you say, look what is going on here. It is 2011 and we are five years into this and we are still being run around by a bunch of criminals because that is all they are – extortionists, murderers and criminals. And even the largest naval powers in the world haven’t been able to do anything about it and they won’t until we do something fundamentally ashore in Somalia. Until then, we will not solve this problem,” he said.

“We now have the monsoon season and this will have a strong reflection on the level of activities going on. But even when the monsoon settles down, I suspect you will see a lot of the ships being armed now. But what will that do to the equation? Hopefully it will put a dampener on activities but it won’t solve anything. Because the pirates might start to lose too much money and the investors will stop getting the returns they want, they will retrench and ease off. The naval forces will then say the situation is better and the pirates will be back in action and we will be back where we started. We as ship owners are very frustrated. If this kind of criminal activity happened anywhere else on this scale something would have been done about it but 94% of the seafarers involved in this are from developing countries and that is the reason. If the 94% of seafarers were from Europe or the US, I guarantee we would not have been talking about it now. It is a disgrace,” he added.

The Jamaica Ship Registry (JSR)has appointed Mr Tang Shu Jia of the Isthmus Bureau of Shipping (IBS) China, to be its representative in Northern and Southern China and Taiwan.

Mr Tang, who has many years of ship registration experience, is supported by Jessie Zou and Elaine Yu who both also boast considerable experience in the registration of ships.

The new representative will complement the efforts of JSR’s Asian Regional Office, which is headed by Dr Aloysius Tay, Jamaica’s Trade Commissioner in Singapore. Mr Tang’s appointment signals the further expansion of Jamaica in the Asian region and follows the appointment of Captain Say Eng Sin (GMAPS Inspection & Survey Services Pte Ltd) last year as representative in Singapore and Greater Asia. Capt. Say is assisted by Jenn Lee.

Seymour Harley, JSR Registrar General of Ships, said: “The JSR is optimistic of the prospects for its growth and expansion in Asia. We welcome Mr Tang and his team and look forward to a successful and enjoyable collaboration.”

Leading accountant and shipping adviser, Moore Stephens, understands that Her Majesty’s Revenue & Customs (HMRC) has agreed to re-examine, in consultation with the shipping industry, its earlier intention to unilaterally reinterpret the UK Tonnage Tax rules to the potential detriment of many shipowners.

Widely disputed changes based on unspecified ‘legal advice’ were set out in HMRC’s tonnage tax manual in September 2009. These focused in particular on a reinterpretation of the strategic and commercial management tests that are fundamental to qualification for the tonnage tax regime.

UK tonnage tax is widely credited with having helped increase the UK fleet substantially since its introduction in 2000, when it was regarded as a model of clarity and stability. Then, as now, there was the need for a stable UK tax regime to both support British business and to encourage international businesses to operate and stay in the UK. Under the reinterpretation of the rules, some groups would not have qualified for the UK regime, despite having previously received HMRC clearance, with the result that internationally mobile shipping groups could consider leaving the UK.

Sue Bill, a tax partner with Moore Stephens, said: “HMRC’s reinterpretation of the rules created a lack of certainty and sent completely the wrong signals to international shipowners who had relocated to the UK to take advantage of its tonnage tax regime. It would therefore be excellent news if, as we understand to be the case, HMRC decides to consider the matter afresh, and to consult fully with the shipping industry. This would be seen as an indication that the government means to continue to act fairly and reasonably, not least by protecting shipowners who elected into the regime for a ten-year period based on the original HMRC rules and clearances.

“While no formal change to HMRC’s position has yet been confirmed, it is understood that any changes to the rules will now be assessed carefully. HMRC has warned that this re-examination may not result in any change in its position at all. But we are hopeful that HMRC and the UK government will let us have a more considered view.

“We have been working with the industry, and in particular the Chamber of Shipping, in campaigning for some time, and we are delighted at this positive development.”

The Korean Register (KR) – an IACS member classification society – has opened its Asia-Pacific Headquarters in Singapore. The new HQ will oversee the operation of the 15 branch offices and survey stations that are located throughout the region. By coordinating the activities of these outstations, KR will provide a more comprehensive and coherent service delivery to its customers in the Asia-Pacific geography.

KR Chairman & CEO, Mr Oh Kong-gyun said: “The creation of the Asia-Pacific Regional Headquarters in Singapore cements our presence in this region and re-confirms our commitment to our customers who operate here. Establishing a network of regional HQs is part of our ongoing strategy to raise quality and customer service throughout the world. We have already opened regional headquarters in China and in Europe and plan further enhancements next year”

Immediately prior to the opening, KR staged its 4th annual technical seminar in Singapore which was attended by more than 120 people representing shipowners, yards and designers. Issues covered included IMO conventions, PSC trends and the Energy Efficiency Design Index (EEDI).

The KR Asia-Pacific Regional Headquarters will oversee the operation of KR’s outstations located in Singapore, Johor Baru, Hong Kong, Dubai, Ho Chi Minh, Hanoi, Haiphong, Nha Trang, Sydeney, Perth, Taipei, Mumbai, Jakarta, Tehran and Bangkok.