CircularsNews
April 2020

Piracy in the Gulf of Mexico

The European Union’s Emissions Trading System (EU ETS) was extended to cover emissions from shipping as of 1st January 2024.

The EU ETS is limited by a 'cap' on the number of emission allowances. Within the cap, companies receive or buy emission allowances, which they can trade as needed. The cap decreases every year, ensuring that total emissions fall.

Each allowance gives the holder the right to emit:

  • One tonne of carbon dioxide (CO2), or;
  • The equivalent amount of other powerful greenhouse gases, nitrous oxide (N2O) and perfluorocarbons (PFCs).
  • The price of one ton of CO2 allowance under the EU ETS has fluctuated between EUR 60 and almost EUR 100 in the past two years. The total cost of emissions will vary based on the cost of the allowance at the time of purchase, the vessel’s emissions profile and the total volume of voyages performed within the EU ETS area. The below is for illustration purposes:
  • ~A 30.000 GT passenger ship has total emissions of 20.000 tonnes in a reporting year, of which 9.000 are within the EU, 7.000 at berth within the EU and 4.000 are between the EU and an outside port. The average price of the allowance is EUR 75 per tonne. The total cost would be as follows:
  • ~~9.000 * EUR 75 = EUR 675.000
  • ~~7.000 * EUR 75 = EUR 525.000
  • ~~4.000 * EUR 75 * 50% = EUR 150.000
  • ~~Total = EUR 1.350.000 (of which 40% is payable in 2024)
  • For 2024, a 60% rebate is admitted to the vessels involved. However, this is reduced to 30% in 2025, before payment is due for 100% with effect from 2026.
  • Emissions reporting is done for each individual ship, where the ship submits their data to a verifier (such as a class society) which in turns allows the shipowner to issue a verified company emissions report. This report is then submitted to the administering authority, and it is this data that informs what emission allowances need to be surrendered to the authority.
  • The sanctions for non- compliance are severe, and in the case of a ship that has failed to comply with the monitoring and reporting obligations for two or more consecutive reporting periods, and where other enforcement measures have failed to ensure compliance, the competent authority of an EEA port of entry may issue an expulsion order. Where such a ship flies the flag of an EEA country and enters or is found in one of its ports, the country concerned will, after giving the opportunity to the company concerned to submit its observations, detain the ship until the company fulfils its monitoring and reporting obligations.
  • Per the EU’s Implementing Regulation, it is the Shipowner who remains ultimately responsible for complying with the EU ETS system.

There are a number of great resources on the regulatory and practical aspects of the system – none better than the EU’s own:

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02003L0087-20230605

https://climate.ec.europa.eu/eu-action/transport/reducing-emissions-shipping-sector_en

https://climate.ec.europa.eu/eu-action/eu-emissions-trading-system-eu-ets/what-eu-ets_en

Dear All,

We would like to bring to your attention the following news from Gard P&I Club informing piracy attacks on offshore support vessels observed in April.  Vessels sailing in that region as well as South and Central America and Caribbean waters are advised to take additional caution. The Club further provides recommendations as to these measures.

Piracy in the Gulf of Mexico

As the first three weeks of April 2020 has seen a high number of piracy attacks on offshore support vessels in the southern rim of the Gulf of Mexico we advise ships to exercise caution when operating in the region.

ALERT

22 APR 2020

The US Maritime Administration (MARAD) issued an <https://www.maritime.dot.gov/content/2020-004a-gulf-mexico-vessel-attacks>

Alert on 17 April 2020 warning that a maritime threat had been reported in the vicinity of Ciudad Del Carmen and Dos Bocas, Mexico, in the Bay of Campeche area in the southern Gulf of Mexico. The nature of the threat was a series of four piracy incidents that took place between 4 April and 14 April 2020. All four incidents involved attacks on offshore support vessels, some involved crew injuries and theft.

Masters are therefore advised to exercise additional caution when their vessels are operating in or transiting the Ciudad del Carmen region.

The security situation in the Gulf of Mexico

Each MARAD alert reports on an immediate threat in a specific region at a given point in time and these alerts are therefore short lived.

However, piracy and armed robbery incidents in the southern rim of the Gulf of Mexico is reportedly not uncommon. While the International Chamber of Commerce’s International Maritime Bureau’s Piracy Reporting Center ( <https://icc-ccs.org/index.php/piracy-reporting-centre/prone-areas-and-warnings>

IMB PRC) has recorded only four incidents in the Southern Gulf of Mexico in the previous 12 months, various <https://www.insightcrime.org/news/analysis/gulf-mexico-oil-industry-pirate-attacks/>

media reports describe a steep increase in the number of attacks on maritime oil infrastructure in Mexico since 2016 - some even refer to an average of 16 attacks a month between January and September 2019.

Although these numbers are unconfirmed, they do suggest that there could be a significant degree of under-reporting of incidents in the Gulf of Mexico.

According to the incidents recorded by the IMB PRC, the perpetrators typically use small boats capable of reaching high speeds, are armed and tend to be violent. Their targets are mainly offshore support vessels and the organization has not recorded any attacks on larger commercial vessels in Mexico in the previous ten years. The modus operandi seems to be a maritime extension of organized crime as sophisticated equipment is often stolen and resold and crews are robbed.

Incidents in South and Central America and the Caribbean waters

Piracy and armed robbery against ships are some of the modern day challenges of the maritime industry and are not restricted to only known ‘high risk regions’ such as Gulf of Guinea, waters of South East Asia and the Indian Ocean.

According to the IMB PRC, Peru was one of top five locations in terms of number of incidents recorded in 2019. Ten incidents were recorded at Callao anchorage in Peru in 2019, with five reported in the last quarter of that year. Three further incidents have been recorded in this location in the first quarter of 2020. There have also been reports of recent attacks in Ecuador. In the first half of April 2020, the IMB PRC recorded two incidents near Guayaquil, both involving attacks on container vessels underway.

Its latest five-year statistics for South and Central America and the Caribbean waters, shown in the figures below, indicates a tripling of the total number of incidents since 2015.

Warning to stay alert

Members and clients with vessels operating in South and Central America and the Caribbean waters are advised to:

*          Closely monitor the situation via the

<https://icc-ccs.org/index.php/piracy-reporting-centre/prone-areas-and-warnings>

IMB PRC website and by staying in close contact with their local agents as well as with regional authorities.

*          Carry out a voyage specific threat and risk assessments prior to

entering the region, review the Ship’s Security Plan and adopt relevant preventive measures, following the <http://www.gard.no/Content/25769261/Global%20Counter-Piracy%20Guidance%20BMP_LOW.pdf>

Global Counter Piracy Guidance for Companies, Masters and Seafarers.

*          brief the crew on the security arrangements identified in the Ship

Security Plan and conduct drills prior to arriving in an area of increased risk. Many attempted piracy and armed robbery attacks are unsuccessful, countered by ships’ crew who have planned and trained in advance. All ships are advised to report all attacks and suspicious sightings to local Authorities, flag state and to the IMB PRC as per <http://www.imo.org/en/OurWork/Security/PiracyArmedRobbery/Guidance/Documents/MSC.1-Circ.1334.pdf>

IMO MSC.1/Circ. 1334.

*          And last but not least, keep a proper, visual lookout! According to

the Global Counter Piracy Guidance, this is the most effective method of ship protection. It can help identify a suspicious approach or attack early on, allows defences to be deployed and, can serve as an effective deterrent to would-be attackers.

It is also important to cooperate with other operators, military forces, law enforcement bodies and welfare providers in the region when necessary - both before, during and after an attack.

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