February 2012

Piracy - Weapons & Armed Guards on Board Vessels in Egyptian Ports and Suez Canal

The European Union’s Emissions Trading System (EU ETS) was extended to cover emissions from shipping as of 1^st 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 Sir/Madam,

The following has been received from a local P&I representative in Egypt called Messrs. EMICS in respect of the above.

From: Ahmed Raafat [mailto:emics@emicsegypt.com]
Sent: Thursday, February 09, 2012 3:34 PM
To: elif.ozmen@omniltd.com
Subject: Re. : URGENT - Piracy - Weapons & Armed Guards on Board Vessels in Egyptian Ports and Suez Canal

Dear Elif,

Reference is made to our previous circular (attached) under the heading “Piracy – Weapons & Armed Guards on board vessels transiting Suez Canal “ dated October 2011, please note that the Egyptian Maritime Sector have issued some new regulations that were decided by the Egyptian Ministry of Defense regarding the handling of weapons on board vessels calling at Egyptian waters or transiting the Suez Canal.

The English Translation to these new regulations is as follows:

Maritime Transport Section

Date: 9/1/2012

Ref: N/3/1/46

Messrs / Alexandria Chamber of Shipping

Dear Sirs,

Please be advised that on 28/11/2011, we have received from the Ministry of Defense their letter dated 21/11/2011 and also the Naval Operations Department’s letter dated 3/12/2011 instructing with the following:

1- The Egyptian Government forbids the presence of any Weapons / Armed Guards on board of commercial vessels as per the rules and regulations of the International Maritime Organization.

2- In case of the presence of weapons on board commercial vessels calling at Egyptian ports, the Masters shall lock the weapons in a safe compartment on board and issue a certificate stating these weapons and delivering it to the pilot in waiting area, the certificate shall include a confirmation from the Master that weapons will be delivered to Port Police Forces once berthed to be locked after being inspected by the police forces and to be returned back to vessel before departing the port.

3- In case of not adopting the above regulations, the vessel will not be permitted to enter the port.

4- In case of vessels transiting the Suez Canal, the Port Police Forces will be receiving the weapons from the transiting vessels at points of entrance inland and will be returned back to the vessel at point of departure.

5- In case of presence of weapons on board vessels in territorial waters or in ports in waiting areas or during transit of the Suez Canal, the Master and crew will be in violation of the Egyptian Laws under which the vessel will be under arrest together with the Master and crew and the persons holding the weapons without permits and the law number 394 of the year 1954 and its amendments will be applied. This violation will be attended by the General Prosecutor where a Police Verbal Process will be issued accordingly.

Please apply these regulations provided by Ministry of Defense accurately and notify all shipping companies and agencies and all Masters of vessels calling at Egyptian Ports.

Yours Faithfully

Head of Maritime Transport Sector

( Signature )

Admiral / El Sayed Hamed Hedaya

Copy to:

- Portsaid Chamber of Shipping

- Red Sea Ports Chamber of Shipping

- Demietta Chamber of Shipping

- Ministry of Defense

- Naval Operations Department

- Alexandria Port Authority

Hope the above is in order.

Please don’t hesitate to contact the undersigned should you have any inquiries

Kind regards,

Ahmed Raafat

Egyptian Marine Insurance Consultations & Services

75 Sultan Hussein Street

Fifth Floor, apartment 13

Alexandria ,Egypt

Tel. : 002034837820

Fax. : 002034837838

Email : emics@emicsegypt.com

Website: www.emicsegypt.com

‍

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Piracy - Weapons & Armed Guards on Board Vessels in Egyptian Ports and Suez Canal

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

Piracy - Weapons - Armed Guards on board vessels transiting Suez Canal.pdf

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