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21TINIG NG MARINOJANUARY - FEBRUARY 2017

Japan Gov’t salvages MOL, NYK, K-Line after operating losses in 2016

By: Raffy ayeng

EFFORTS has been made by the Japanese government to extend its aid with the ailing maritime

industry in the country, after three of its giant shipping lines, MOL, NYK and K-Line suffered a collective loss amounting to half a million dollars in the first half of 2016. According to reports from Japanese dailies, Japan's Big Three—MOL, NYK, and 'K' Line, recently recorded a collective half-year operat-ing loss of $484 million and reported revenue declines of more than 20 per-cent year-over-year, not to mention their downgraded full-year earnings forecasts. Japan’s shipping industry had sought favorable government tax re-forms to provide them more leeway for navigating the market downturn and the largest beneficiaries will be MOL, NYK, and 'K' Line, which in October 2016 announced plans to merge their container operations so they could remain competitive with-in an industry newly dominated by large, consolidated carriers. “Japanese oceangoing ship-ping firms will make further efforts to try and maintain their international competitiveness,” said Taizo Kudo, chairman of the Japanese Shipowners’ Association and NYK Line chairman, in a statement. The measures will take effect in April 2017, when the Big Three, along with Hapag-Lloyd, launch the Transport High Efficiency Alliance,

pending regulatory approval. Three of Japan’s key tax measures, the “special depreciation system,” the “reduction entry system,” and the expansion of Japan’s tonnage tax system, will be a benefit to the Big Three, according to Kudo. The special depreciation sys-tem enables a company to depreciate its vessels at a higher rate than usu-al. This means that the company can book more depreciation costs and re-duce its taxable corporate income. With the reduction system, companies can deduct government subsidies for the acquisition of ships or other fixed assets from their origi-nal cost, which enables the companies to defer subsidy-related tax payments. Typically, such subsidies are treated as taxable revenue. The special depreciation and reduction entry systems for environ-

mentally friendly ships were set to ex-pire in March, but the special depre-ciation system will be expanded and extended for two years, and the re-duction entry system will be extended for three years. The tonnage tax reforms will expand Japan’s tonnage tax system to cover more foreign-registered vessels owned by overseas subsidiaries of Jap-anese companies. The system, introduced in 2009 for Japanese-registered and -owned ships, enables shipping com-panies to pay corporate taxes based on the net tonnage of their fleet, in-stead of actual profits. To be eligible for that system, Japanese shipping companies had to submit detailed plans to increase the number of Jap-anese registered vessels and sailors. In 2013, the system was ex-panded to cover foreign-registered

vessels that are owned by overseas subsidiaries of domestic ocean-going shipping firms after Japan’s shipping companies said the system had put them at a disadvantage amid tough international competition. The language in the 2017 tax bill on the tonnage tax system says, “vessels that are effectively owned by Japanese ship owners through their overseas subsidiaries if they meet cer-tain requirements.” Japan’s tonnage tax system lags behind similar systems in other major shipping nations, which cover all operated vessels. In order to enable Japanese ocean-going shipping firms to com-pete on a level playing field with their foreign rivals, the nation’s tonnage tax system must be further expanded to cover more vessels, the shipowner’s association has said.

2222 TINIG NG MARINO JANUARY - FEBRUARY 2017

THE UNHOLY ALLIANCECourt of Appeals reverses VA grant of permanent disability

benefits to seafarer for a Grade 11 disabilityBy Ruth CeRvantes

Seafarer Dexter de Andres lost the hearing of one ear, which according to POEA-SEC is

equivalent to grade 11 disability compensation. But the Voluntary Arbitrators (VA) decided to grant his claim for permanent disability, with the exception of Engr. Nelson Ramirez who dissented. Aggrieved by the VA deci-sion, Cargo Safeway Inc., the local agency where De Andres is under contract, appealed to the Court of Appeals. The appellate court reversed the VA decision. Disability Claim De Andres was hired as a Bo-sun for M/V Ever Excel, through the services of Cargo Safeway, Inc., in July 2013. Sometime in August of the same year, he allegedly fell off a ladder while making repairs on the ship. His head hit the ship’s railings which pur-portedly caused a ringing in his left ear. He was brought to a hospital in Japan and was diagnosed with Tin-nitis and bad hearing, but declared “fit for duty.” The company-designated physician, Dr. Natalio Alegre II de-clared respondent’s illness as work-re-lated, and assessed a “final disability grade of 11, Ears #3, complete loss of the the sense of hearing on one ear.” De Andres however claimed that he is permanently disabled, based on the assessment of Dr. Enrico Do-nato and Dr. May Donato-Tan, whose services he engaged. Instead of referring the matter to a third doctor for final de-termination, De Andres lodged his complaint with the union AMOSUP and rejected Cargo Safeway’s offer of compensation in the amount of US$ 14,325.85 (based on the corre-sponding compensation for grade 11), and claimed that he is entitled to a full disability compensation of US$93,154.00, instead.VA Decision In its 25 March 2015 Deci-sion, the Panel of Voluntary Arbi-trators ruled in favor of De Andres, saying that Dr. Donato’s certification

that he is unfit to work as a seaman “remained uncontroverted,” and that he was likewise assessed by Dr. Do-nato-Tan to be “permanently unfit xxx.” The VA held, “Thus, in con-sideration of the foregoing, and apply-ing the ‘permanent unfitness clause of the parties’ CBA, We rule and so hold that complainant is entitled to 100% compensation, or the amount of US$93,154 as total and permanent disability benefits.”Petition for Review Aggrieved by the VA deci-sion and the denial of its motion for reconsideration, Cargo Safeway, Inc. filed Petition for Review before the Court of Appeals. In its petition, Cargo Safeway assailed (1) the grant to De Andres of permanent disability compensation, and (2) the finding that Grade 11 disability assessment is equivalent to total and permanent disabilty, among others.

Cargo Safeway also averred that the complaint was premature for failure of complainant to comply with Section 20 (A) (3) of the POEA-SEC (Philippine Overseas Employment Agency-Standard Employment Con-tract), which provides that a third doctor be agreed jointly between the Employer and the seafarer, if a doctor appointed by the latter disagree with the company designated-physician’s assessment. CA reversal Upon review, the Court of Appeals reversed the VA decision. In its 15 November 2016 Decision, penned by Justice Jane Aurora C. Lantion, the appellate court held that De Andres “is enti-tled to grade 11 disability benefits only, and not to permanent and to-tal disability benefits,” and ordered Cargo Safeway, Inc. to pay De An-dres the amount of US$14,325.19 as compensation for the latter’s Grade 11 disability.

The CA upheld the assess-ment issued by the company-desig-nated physician over that of De An-dres’ chosen physicians, for his failure to avail of the procedure laid down in the POEA-SEC and the CBA. The CA cited the Supreme Court ruling in Veritas Maritime Corp. v. Gepanaga, Jr. (G.R. No. 206285, 4 February 2015) where it was held that in the absence of a third doctor’s opinion, the compa-ny-designated physician’s finding will prevail over other medical find-ings. The CA also deleted the awards of moral damages, exemplary damages, and attorney’s fees, absent any finding of bad faith on the part or respondent manning agency. In its Decision dated 25 March 2015, the VA ordered Cargo Safeway Inc. to pay complainant De Andres US$ 93,154.00 or its peso equivalent of P200,000, as disability benefits.


15th POSH Sea Staff Seminar: Excellence through SafetyBy JuDy DOMIngO

Being always after the quality and excellence, the PACC Offshore Services Holdings Pte Ltd or

POSH organized their 15th Sea Staff Seminar on Nov. 30 – Dec. 2, 2016 at the Heritage Hotel, Manila. Participated by over 50 crew members, the 3-day seminar was filled with educational topics that fit their seminar theme. Among the top-ics tackled were Building a Positive Culture Onboard, Effective Commu-nication in Safety, Using Different Safety Leadership Styles, Safety In-tervention, HSEQA Case Studies and Case Study on Safety. Distinguished speakers pres-ent were Keong Kok Teo, Director Sim Hee Ping, Capt. Pandey, Capt. Sunil, Capt. Ken Bales, TH Ng and SL

Tan. A l l throughout the seminar the im-portance of safe-ty onboard was deeply instilled into the minds of the participants along with their “One Team” tagline. “If we are one team, we think the same, we can help each other, together we can attain the zero human error,” says Mr. JH Chan, general manager of POSH. “If you come to work for POSH, you should know and follow the 10 Golden Rules for Safety,” he further added.

On the third day, a team build-ing was pre-pared for the participants which has secured their strong bond with each other. The af-ternoon was reserved es-

pecially for Children Christmas Fun

& Games and the Family Night, which the crews and their families enjoyed. P A C C Offshore Services Holdings Limited (POSH) is the larg-est Asia-based in-ternational operator of offshore support vessels, and one of the top five global-ly. With a young and diverse fleet of over 100 offshore vessels servicing multiple segments of the offshore oil and gas value chain, it is known as the best-in-class service provid-er with a well-earned reputation for operational excellence, teamwork, integrity, accountability, safety and market focus. Their highly experienced team is consistently recognized by customers for professionalism, and commitment to service quality and safety, in the operation of offshore supply vessels, transportation and

installation, offshore accommoda-tion and harbor services and emer-gency response. POSH is known for continuously raising the bar in off-shore marine services and its prov-en international track record makes it the partner of choice for clients. POSH's impressive track record in complex and high-profile projects is set to continue with the award of the transportation and installation contract of the Ichthys Central Pro-cessing Facility which is expected to be the world's largest when com-pleted.


Maritime registry firm eyes robust business in PH

The International Registries, Inc. (IRI) and its affiliates, an administrative and technical

support provider to the Republic of the Marshall Islands (RMI), is expecting more huge business this year after its one-year operation in the country. Capt. Robert A. Fay, senior vice president, Maritime Operations, IRI Reston stated, around 700 seafar-er documents are being processed by the Manila office every week and this prompts the fast growth from only four personnel to 12 in its first year, which includes a full-time Fleet Op-erations and Technical Officer. IRI's Manila Office regular-ly services two dozen or more filing agents locally. IRI's Manila, Hong Kong and Mumbai offices are in coordination to ensure relevant documentation pro-duction in Asia. “We are thrilled at the progress and productivity personnel in our newest office here in Manila have shown in such a short period of time,” said Fay. “Leo Bolivar has done a ter-rific job of assembling a talented staff of knowledgeable professionals and we look forward to providing quality services to our local agents and sea-farers for many years to come. Recently, the company celebrated their first anniversary of its Manila Office's opening. The RMI Registry is one of the largest registries in the world, and it surpassed 138 million gross tons and 3,956 vessels at the end of October 2016. The newest seafarer docu-mentation office provides local sea-farers to receive documents quickly and more modern. The office's em-ployees also took part in the seminars within the seafaring community in Manila, specifically the local crewing agents and shipowners. The seminars are conducted to inform the rele-vance of communication in the ship-ping industry, especially to the people they affect. “As the founding member that started the office from scratch, it’s very rewarding to see how much we have grown and accomplished in the past year,” said Leo Bolivar, Coun-try Manager, IRI Manila. “We are dedicated to our core policy of decentralization that

allows us to provide tailor-made ser-vices to our customers in the Philip-pines.” With more than 65 years of experience as a maritime and cor-porate registry service provider, has established offic-es in Baltimore, Dalian, Dubai, Ft. Lauderdale, Geneva, Ham-burg, Hong Kong (Harbour Road and Gloucester Road), Houston, Imabari, Istan-bul, Long Beach, London, Ma-nila, Mumbai, New York (mid-town and down-town), Piraeus, Rio de Janeiro, R o o s e n d a a l , Seoul, Shanghai, Singapore, Taipei, Tokyo, Washing-ton, DC/Reston and Zurich, with capabalities to register a yacht or vessel, includ-ing those un-

derconstruction, record a mortgage or financing charter, incorporate a company, issue seafarer documen-tation and service clientele. IRI has expanded its worldwide coverage to include representation in Chile, Li-

By RICK haLOg

massol, Oslo, and Port Said, in order. IRI focuses only on administering the RMI flag, providing a wide spectrum of registry-related services for the shippimg and financial services in-dustries.

Photo shows (from left) Capt. Robert A. Fay (SVP, Maritime Operations of IRI-Reston); Leo Bolivar (Country Manager of IRI Manila); Capt. John Hafner (VP, Seafarer Manning & Training of IRI-Reston); Mark Van der Graaff (Fleet Operations/Technical Officer of IRI Manila).


nananatili kang may utang sa anak ng developer dahil hindi mo pa bayad ang bahay at lupa na binili mo mula sa kaniya. 3. Ang mga dokumento ang basehan ng mga legal na pagsisiyasat. Kung sinasabi ng developer na hin-di kailangang buwisan ang kinikita mong interes, ibig sabihin, pasan nila ang obligasyon na magbayad ng bu-wis sa gobyerno. Kaya naman, kung sakaling siyasatin ng BIR ang libro ng real estate developer, kailangang mak-ita nang maliwanag na sila ang nag-babayad ng buwis para sa iyo. Dahil kung hindi, baka maipit ka pa sa mga problema sa buwis. 4. Muli, depende pa rin sa mga dokumento ang maaari mong bawiin sa developer kung sakaling malugi sila. Kailangan mo ng le-gal na payo sa bagay na iyan. Pwe-deng-pwede nilang sabihin na ang loan nila mula sa iyo ay isang equity investment para sa kanilang negosyo. Kung gayon, dapat kang makiramay sa kita at sa pagkalugi, kaya naman wala kang mababawi sa kanila kung sila’y malugi. Kung kailangan mo ng abogado, may maipapayo kaming mahusay at patas na abogado. 5. Kailangang bigyang lin-aw ang 19.55 percent na interes kada taon. May uri ng investor na tinata-wag bilang lending investor. Ibig sabi-hin nito, limitado ang kita ng lending investor sa ipinangakong interes. Sa iyong kaso, masyadong mataas ang garantisadong interes na 19.55 percen kada taon. Pero kung ituturing ang investment mo bilang kapital para sa negosyo at hindi bilang loan, maaar-ing makamit ang 20 percen kada taon pero mataas pa rin ang panganib dito. 6. Hindi ko masyadong nau-unawaan ang ibig sabihin ng “piling investor”. Ilan ang kanilang “piling investor”? Magkano ang kanilang proyekto? Magkano ang kanilang hiniram mula sa mga piling inves-tor? May kopya ka ba ng pinakabago nilang audited financial statement? May permiso ba silang humiram ng pera? 7. Tiyak ka bang hindi sila humihiram ng pera para bayaran

ang dati nilang mga investor? Ti-yak ka bang hindi nila kailangang humiram ng pera sa iba upang ma-bayara ka kapag dumating na ang panahong ipapa-palit mo ang tseke? Kung hindi mal-inaw sa iyo kung paano tumatakbo at kumikita ng cash ang negosyo nila, kaduda-duda ang 19.55 percent na garantisadong interes. Baka sop-istikadong uri lang ito ng pandaraya na “kiting.”

Sumagot muli si Mr. XYZ:

Maraming salamt sa iyong email. Binili namin nang cash ang bahay at lupa. Sa palagay ko, nag-babayad ng buwis para sa akin ang kumpanya nila at nabawasan na ng buwis ang anumang tinatanggap ko mula sa kanila. Tungkol naman sa mga dokumento at iba pang katanun-gan, tatanungin ko nang direkta ang developer dahil hindi ko alam ang mga iyon sa kasalukuyan. Gayunpaman, sa tingin ko’y mainam na unti-unti ko nang ipa-palit bilang cash ang mga investment ko sa kanila. Ilalagay ko na lamang

sa equity UITF o sa equity mutual fund. Sa ngayon, parang lumalago ang mga ganitong fund nang higit sa 20 percent kada taon. Mas mababa ang panganib doon kaysa kung na-ka-invest lang sa iisang real estate developer lamang.

Ito ang aming huling sagot kay Mr. XYZ:

Mainam na hugutin mo na ang iyong mga investment mula sa real estate developer. Pero tandaan na may panganib na kaakibat ang mga mutual fund at UITF. Kung pipili ka ng mahuhusay na fund manager, napapababa ang panganib. Gayun-

paman, laging mas mainam na ikalat at ibsan ang panganib, maging lehiti-mo man o hindi ang real estate devel-oper na iyon. Kung mayroon kayong im-portanteng tanong sa akin, mahalaga na bigyan ninyo ako ng kumpletong impormasyon tungkol sa kalagayan ninyo sa buhay (edad, asawa, anak atbp.) at ang inyong Statement of Assets and Liabilities and NetWork (SALN), detalye ng Ari-arian at Utang atbp. bago ako makakasag-ot. I-friend ninyo ako sa FaceBook at Twitter at kung handa na kayo sa mga tanong at impormasyon ninyo, bibigyan ko kayo ng pribadong email address.

from page 18PISOBILITIES

MGA TANONG AT PAYO TUNGKOL SA

REAL ESTATE


WISH LIST FOR 2017

from page 4

agement Level Officers. Nothing concrete has happened so this will stay in our list on its 10th year. The wish includes the responsibilities of maritime schools to provide berth for their cadets. The Philippines as Mari-time Training and Assessment Cap-ital of the world (since 2007). The Philippines has been enjoying its status as the Manning Capital of the World; the challenge of going be-yond and becoming the Maritime Training and Assessment Capital of the World is on. This may as well be a challenge to the leadership of Philippine Association of Maritime Training Centers, Inc. (PAMTCI). This stays in our list on its 10th year and for the last time. Manning may evolve to Ship Management (since 2007). With all of its challenges and con-fusion, the experience of the Philip-pines is more than enough to evolve its manning business to Ship Man-agement where the return is more than ten times as in manning. We have seen positive developments in this area recently. This stays in our list on its 10th year. Philippine Ship Registry becoming the preferred flag regis-try in the world (since 2007). The Philippine registry is definitely NOT growing. This stays in our list on its 10th year. Less if NOT zero maritime disasters in Philippine domestic waters (since 2007). Maritime dis-asters in Philippine waters keep on menacing us again and again and again. This year, many domestic vessels were grounded for ‘safety standards’ reason, which is a very good development. Our soundings continue and this wish stays in our list on its 10th year. Filipino seafarers as the world’s best (since 2008). Filipino seafarers are the number one in the world in terms of supply, however, nobody is claiming yet that the Fil-ipino seafarers are the world’s best. We are still taking soundings. This stays in the list on its 9th year.

From “Blame Culture to Safety Culture” (since 2009). That the Philippines’ maritime culture may evolve from blame culture to safety culture. This will mean that all concerned, particularly the au-thorities, will focus on solutions to prevent maritime incidents/ac-cidents from happening again via new policies, standards, and realis-

tic rules and regulations. This stays in our list on its 8th year. “NO TO ANY FORM OF CORRUPTION”! (2014) This is a written policy displayed where they can best be seen all over Malacañang Palace, The Senate, The House of Representatives and all government agencies and offic-es. This appeared for the first time

three years ago! This stays in our list on its 3rd year! “The illiterate of the 21st century will not be those who can-not read and write, but those who cannot learn, unlearn and relearn.” — Alvin Toffler, futurist. PEACE, SUCCESS AND HAPPINESS ahead of us all in 2017.


MAAP bags international recognitionBy RICK haLOg

The Maritime Academy of Asia and the Pacific (MAAP) has been internationally

recognized for their dedication for the enhancement of global maritime excellence. They were granted with full membership at the International Association of Maritime Universities (IAMU). Hosted by Vietnam Mari-time University, the event featured the awarding of a huge gold-plated plaque of membership to MAAP President Vice Admiral Eduardo Ma. R. Santos AFP (ret.) from IAMU Chairman Dr. Neil Bose. Present to grace the event were IAMU Executive Director Take-shi Nakazawa and other maritime ed-ucators. Executive Director Nakazawa represented IAMU Honorary Chair-man Yokei Sasakawa, who is also the chairman of the Nippon Foundation (Japan), a top and major supporter of IAMU. Dr. NeilBose emphasized

in a statement that through the im-plementation of the Tasmanian Statement in 2014, the IAMU has strengthened its objectives to “create a well-educated global maritime work force and leaders of the future; to be the author-itative voice of maritime education, training and research; and to create a network and forum to communicate and exchange the best mar-itime ideas, practices and scientific likely solu-tions.” He also revealed that with an expectation for a far-reaching effects on the community of maritime universities, education, training and research, IAMU is cur-rently working on its key projects: Two working groups for Curricula

for Officers’ licenses with academ-ic degrees and on-board training; a peer-assisted Self- Evaluation Scheme in the Philippines; and a pilot project to establish Performance Indicators

for Maritime Universities. “Given the vastness of the oceans, and the global nature of both the shipping industry and the regula-tory agencies. It is critical that in the

future we strength-en our connections to the industry as-sociations and to the International Maritime Organ-ization (IMO). These linkages will ensure that IAMU and its members remain responsive to the changes be-ing implemented and overcome the challenges of pro-ducing graduates that are fully pre-pared to lead our sector forward to the future,” Dr. Bose stated.


Yuletide 2016, the Eagle Star way

By JuDy DOMIngO

As the country celebrates Christmas in 2016, marine recruitment and crew management agency Eagle Star

has correspondingly shown their dear sea-farers a delightful and meaningful way in ap-preciating their hard work and dedication to their chosen vocation, together with their families. The attendees, donned in cowboy outfits, were all elated with a “Wild West” themed Christmas Party held at Conrad Ho-tel Manila last December 6, 2016. In his Yuletide message, Eagle Star’s CEO Mr. Simon Heo, expressed his grat-itude towards their seafarers and staff for their untiring and unwavering perseverance in attending their daily obligations to their company. Beside the CEO, also present in the revelry is the company’s Chairman, Capt. Rajalingam Subramaniam, and Deputy CEO Capt. Siva Subramaniam Ganesan. To make the party merrier, seafarers and their families were entertained by the performances of the Bell Ringers from Sisters of Mary Girlstown and the serenading voice of Mr. Arthur Manuntag while everybody were having their sumptuous dinner. The night was also

filled with surprises as management raf-fled some gifts and injected fun games that brought partic-ipants with joy and laughter. Eagle Star Crew Management Cor-poration is a premiere marine recruitment and crew management agency based in the Philippines. The company was created through the merger of three maritime industry major players: recruitment specialist Parola Mari-time Agency Corp., global energy logistics provider MISC Bhd, and leading worldwide petroleum shipping company AET Ship-management. These companies have worked hand and hand to recruit, train, and manage

the best seafarers to man AET and MISC's top notch fleets, making Eagle Star Crew Manage-ment Corporation at the apex of the industry. With high expectations on opera-tions excellence and dependability prompted by the needs of big wheel stakeholders, Eagle Star Crew Management Corporation steps up to the critical role of getting the finest profes-sionals to man the ships. They assure innovative solutions and a progressive work environment through a proactive approach to recruitment and man-agement. Onboard, they offer total reward scheme, better training, improved facilities, and competitive salary packages. Simply put, Eagle Star Crew Manage-ment Corporation guarantees in finding and honing sought-after seamen.


Struggling shipping industry pummels South Korea

TWO South Korean shipping lines which are included in the world’s largest market

shares in seafaring industry continue to struggle amid the crisis besetting the business. First to collapse and fade into history is South Korea’s larg-est container line Hanjin Shipping. And now, Hyundai Merchant Ma-rine (HMM) is also experiencing turmoil after it was not allowed to be a member of the global shipping alliance. Hanjin is now facing liqui-dation after it was assessed that it is better to be shut down rather than letting it continue to operate its shipping business. On the other hand, HMM recently failed to become a full-fledged member of global shipping alliance 2M, making them impos-sible to secure a lend money for its rehabilitation program and debt re-scheduling from monetary multina-tionals. Reports from Samil Price-waterhouseCoopers (PwC) fur-nished to the Seoul Central District Court recently stated that liquidat-ing Hanjin Shipping is a better op-tion than letting it continue doing business. The court had been han-dling Hanjin Shipping's insolvency measures and appointed Samil PwC in September 2016 to assess the ail-ing container line's financial status after it filed for court receivership in August.

By Raffy ayeng

The court will soon make a final de-cision based on Samil PwC's assessment. An industry insider said the fall of the world's former sev-enth-largest shipping company has signaled a crisis in Korea's ship-ping industry. "Hanjin Ship-ping's court receiver-ship caused a massive logistics disturbance in the global shipping network with more than half of its ships stranded at sea out of fears they may be seized by creditors. It was a huge blow to the credibility of the nation's shipping industry," he said. "Shippers now do not want to take such risks anymore. This was the prime reason why 2M did not accept HMM's membership re-quest." Maersk Line, the world's largest container line under the 2M alliance, on their part said, howev-er, that it and Mediterranean Ship-ping Company (MSC) have instead entered into a strategic cooperative agreement with HMM, a coopera-tion "outside the scope of MSC and Maersk Line's 2M vessel-sharing agreement through membership in the alliance."

Due to HMM's high market shares on Asia-to-North America shipping routes, Maersk Line and MSC had considered to grant HMM membership in the alliance, but shifted their position as they have already increased market shares on the routes after the fall of Hanjin Shipping. According to Busan Port Authority, Hanjin Shipping's market share in the Asia-to-North America route was 7.78 percent in October 2015 but plunged to 1.1 percent in the same month this year. Like-wise, its share in the North Amer-ica-to-Asia route has nosedived from 8 percent to 0.01 percent over the same period. The government had count-

ed on HMM to fill the gap, but HMM was outbid in purchasing the assets of Hanjin Shipping's Asia-North America route, as well as its stake in a California terminal by mid-size bulk shipping operator Korea Lines.In the meantime, 2M's market share in the Asia-to-North America route increased by 3.5 percent to 17.5 per-cent while its share in the North America-to-Asia route rose by 7.8 percent to 24.16 percent. The national-flag container carrier Hanjin was founded in 1977 and once operated about 150 vessels to deliver via 70 global routes with around 5,000 employees across 60 countries. On the other hand, HMM was founded in 1976 and is consid-ered to be the world's 15th largest container line in terms of vessel ca-pacity.Korea Line to buy Hanjin In November 22, 2016, Ko-rea Line Corporation (KLC) said that it has signed a deal to take-over the trans-Pacific and intra-Asia net-works of the troubled Hanjin Ship-ping. Korea’s second largest op-erator of bulk carriers that has re-cently ventured into tankers and car carriers, said they will allot KRW37 Billion (USD 31.4 million) to acquire some parts of Hanjin Shipping, including five 6,500 TEU ships, 700 shore-based employees and logistics system. The funds will come from KLC’s internal resources and its parent, SM Group.


THE MARITIME INDUSTRY OUTLOOK and YOUR ANNUAL HOROSCOPE IN 2017

By engR. RaIneRO B. MORgIa MsC env

THE INDUSTRY According to worldmari-timenews.com “Shipbuilding

Industry Set To Pick Up After 2017” and quoting the forecast from Cas-trol Marine Trade Barometer, “de-spite a marginal deterioration in the growth outlook for the global shipbuilding industry, annualized five-year growth rates for the sector are still forecast to reach healthy 3 to 5 percent , before picking up substantially after 2017.” At least change is coming soon for the industry. One good thing is that the barometer predicts the growth will be driven largely by the Asia-Pa-cific region, but also Latin America and the Middle east. All European nations but the Netherlands face a downward trend until 2017. “The main growth in shipbuilding will come from the Asia-Pacific countries to 2019. These nations are well positioned to supply ultra-large vessels, which shipping companies are increasing-ly demanding for their fuel effi-ciency and economies of scale,” it says further. “Traditional shipbuild-ing nations, like Germany and the UK, will need to up their game if they’re to compete with the colos-sal shipyards and deep ports of the Asia-Pacific region”. Based on this report, Hong Kong seems to be the biggest suc-cess story, overtaking South Korea and China to become the world’s second largest ship-parts trading nation. It is one of the few top 10 trading nations in the sector to see a rise in forecast growth since the last report. Although China’s forecast annualized export growth to 2019 has dropped from 10.05 percent to 8.08 percent, the econom-ic powerhouse has displaced South Korea as the world’s top exporter of ship parts. The dip in growth may be associated with China’s on-going policy to move away from export-led growth toward domestic consumption. Algeria has jumped straight into the ten fastest-growing ship-parts trading nations at number one, following heavy investment in

port capacity, and in wider infrastructure and skills de-velopment. The country’s prox-imity to the EU, soaring energy trade and developing relations with China have also helped. T h e presence of Bra-zil, Mexico and Venezuela, a new entry at number seven, in the list of the f a s t e s t - g r ow -ing ship-parts trading nations indicates the rise of Latin America as an important region for the sector in the years to come. “Many Asia-Pacific nations have rapidly developing ports, im-proving infrastructure, low-cost communications and access to po-tential new customers via valuable shipping trade route. This plac-es them in a strong position for growth,” according to the report. The way it was reported means Philippines is included in this growth.YOU AND YOUR ZODIAC SIGN IN 2017 Welcome to the 2017 hor-oscopes section for the 12 zodiac signs. Get to know about your future courtesy of “The Sun Signs” and not Madam Auring’s. This hor-oscope 2017 will give you a clear insight into how the coming year is going to turn out for each star sign. What may work for you might not work for your friend. By reading this astrology forecast, one may be able to plan better what they want to do in life. That way you will be able to focus on the more impor-tant aspects of achieving your goals rather than sulking about your fail-ures. These horoscopes give you a clear idea about the coming year

will turn out for the 12 star signs namely : ARIES, TAURUS, GEM-INI, CANCER, LEO, VIRGO, LI-BRA, SCORPIO, SAGITTARIIUS, CAPRICORN, AQUARIUS and PI-SCES. Be it in your love life, career, or finance, get information about all aspect of your life. We hope you know your real zodiac sign and this is also the best way to know which areas you might be weak in and need to improve. Aries Horoscope 2017 – it will be a period of fun and adven-ture. This might be a good time to start a new business. Do not for-get to go for vacations with your loved ones in 2017. Health can be excellent if you are regular in your exercise workouts. Love life will be blissful for the Rams provided you do not make promises that you cannot keep. The 2017 horoscope pre-diction for the Taurus star sign forecasts a harmonious and peace-ful year for the bulls. Spiritually you will be inclined towards finding your inner peace. And do not let your fears spoil your well being. Love affairs have chances of be-coming permanent. Married cou-ples can plan for a baby. A healthy diet is a must if you do not wish to fall sick. 2017 is a major year chang-

es for the Gemini sun sign. Do not let your hyperactivity spoil your happiness this year. Be it career or finance, think long term before planning anything drastic. Your psychic abilities too might improve in 2017 which help you under-stand your life better. This time might be a year to find your right partner. For Cancerians, 2017 is a year of difficult choice. Be prepared for change in many aspects of your life. Do not go about splurg-ing money on expensive stuff that you don’t need. Your partner might need your help in overcoming their fears. Health and relationships for the Crabs will need a lot of hard work in order to be stable. Horoscope prediction for the Leo sun sign predicts a fabu-lous year. You will be blessed with good luck and happiness. Don’t keep waiting for the right moment in your job or relationships. Just en-joy the journey and learn as you go along. You never know, you might even win that lucky lottery that you have been buying so many years. Maintain the number. Diplomacy is needed in 2017 for Virgo. Some old decisions might create problems if you don’t

Continued on page 36


'Safety is my top concern to the country’s Maritime industry'—DOTr Usec. JudanBy: Raffy ayeng

The man behind the Department of Transportation (DOTr) for Maritime Affairs,

Undersecretary Felipe A. Judan has one big thing in mind during his tenure—this is to secure the safety of the riding public and later on impose stricter measures for the advancement of the shipping industry of the country. In a sit down interview with Tinig ng Marino writers, Judan has first presented his self to justify why he was tapped by Department of Transportation Secretary Art Tugade to head the sector of the Maritime Affairs. From 1987 to 1994, Judan was the President of the Nation-al Shipping Corporation of the Philippines (NSCP). He is also the chief operating officer and di-rector of the Southwest Maritime Group of Companies from 1993 until June last year, which made him well rounded in the shipping industry. He holds a Masters in

Business Management (MBM) from Asian Institute of Manage-ment (AIM); earned a BSBA (Ma-jor in Accounting) from the Uni-versity of the East, cum laude. He passed the board then became a certified public accountant (CPA) in 1969 and became an account-ing icon of the renowned firm Sycip, Gorres, Velayo (SGV).

His appointment as un-dersecretary for Maritime Affairs tasked him to oversee DOTr's attached agencies such as Philip-pine Coast Guard (PCG), Philip-pine Ports Authority (PPA), Cebu Ports Authority (CPA), Maritime Industry Authority (MARINA) and the Philippine Merchant Marine Academy (PMMA).

“ T h e w h o l e mar i t i me sector is my con-cern and it is con-sisted with three sec-tors: sea-farers, ship b u i l d i n g and ship operations.

About seafarers concern, we want to focus on some factors affect-ing them, from education, train-ing and employment. Remember that we are one of the top suppli-ers of seafarers in the world and we must maintain that. They give revenue to the country. We must value them.” Judan reiterated.Judan’s stand on marine safety

When asked of his goals

for the industry, Judan said he has his tenure’s goal of thrusting “safety, safety, safety!” “Beside drugs, one of the problems hounding the maritime industry is piracy. That’s why we have to equip our 9,000 Coast Guard personnel of useful and ample equipment. At the mo-ment, we have already acquired two multi role response vessels (MRRV) donated by Japan and the rest of the promised 10 is set to arrive November to December 2017.” Judan said.Shipbuilding, shipbreaking, dry-docking Judan explained that the focus in maritime industry must pertain to shipbuilding, shipbreaking, drydocking and repairs, transhipment of cargoes

and also expanding the Philip-pine Flag Registered Vessels. In shipbuilding, Judan explained that it has three major factors; shipbuilding capacity, fi-nancing and the classification so-cieties. “Are we capable of ship-building? This is one of the things that must be pondered. In financing, are the banks here in the country understand the shipping needs? We must know if they are ready in terms of fi-nancing. Before, only the Devel-opment Bank of the Philippines (DBP) is what we can say ready to lend shipbuilders. But now, more banks are eager in lending money for shipbuilders. Thirdly, the standards of the classification societies must be increased and international standards must be followed since implemented by independent, sovereign States.” Judan explained.Drydocking

Most of the vessels ply-ing the domestic route are more than 35 years old that has to be scrapped. But the big issue is, if we are going to scrap all the ves-sels of more than 35 years old, the economy of this country will collapse. Judan clarify that this is-sue must be considered because “42% of the vessels in the coun-try are now 35 years in terms of


'Safety is my top concern to the country’s Maritime industry'—DOTr Usec. JudanBy: Raffy ayeng

life span. While about 70-75% of our passenger vessels are 25-35 years old, over 50% are 30-35 years and over. We plan to get rid of those over 30, given notice of a year and a half, maybe for lead time to order new ones.” “Or, shipbuilders will be allowed to operate 35 years old ships but it will not be classified by international classificatory body, rather local classifiers. This may push the shipbuilders to go for new ships rather than second hand,” Judan said. Judan also mulls to check on financing like DBP credit windows similar to those in Ja-pan. Judan hopes newbuilts are ordered at the local shipyards to max economic turnovers. Connectivity of Islands Judan is partial to roll-on roll-off (RoR0) vessels. These are mandatories in a country sur-rounded by sea, stretching over 7,000 islands. “RoRos are cheapest; fare is already for both passenger and cargo. Container ships are for cargo only, more expensive as crane lift-on, lift-off is already about 40% of cost. With the Ro-Ros, port cost is about 8-10% only. Plus convenience to passen-gers coming and going.” “We also make sure that the highways are in good condition that’s why the DOTr is closely coor-

dinating to Department of Public Works and Highways (DPWH) to ensure the safety of passengers and the goods will be delivered accordingly.” Judan said.MARINA reorganization

Judan commended MARINA Administrator Mar-cial ‘Al’ Amaro for a job well done in terms of the problems that before pummels the said institution. “We evaluated and re-organized MARINA and we found a good man for the posi-tion in the person of Amaro. He is a former mariner that’s why he knows what to do. He has programs to implement during his term.” according to Judan. According to Judan, one of the changes that you can feel in MARINA is that seamen now can secure their precious sea-man’s book for just three days due to the computerization ef-forts of the government. Even the renewal of seaman’s book will only take you half day, ex-plains Judan. “This is due to the good reorganization efforts being im-plemented by Sec. Tugade.” He said.Education Judan was also asked of his stand on the sprouting of substandard maritime schools in the country that are still op-

erating. “I have heard just 42 per-cent of those revealed substandard schools are operating. Others are eradicated because they lack appa-ratus such as navigating and simu-lator equipment that are essential for a seaman’s training. We are trying to resolve this issue.” Judan explained. The Maritime Industry Authority (MARINA) in Febru-ary, 2015 has produced a master list of accredited maritime schools that were also recognized by Com-mission on Higher Education. But up to this date, some undesirable and bogus schools mentioned in the list still operate throughout the nation each year, which churn out thousands of maritime graduates yearly, bearing a phony Transcript of Records (TOR), Special Order (SO) and Certification Authen-tication and Verification (CAV) from CHED.Anti-Corruption Judan is guided by Presi-dent Rodrigo Duterte’s marching order to eliminate corruption in the sector of transportation. “Both of us, DOTr Sec. Tu-gade and I were told by the Pres-ident that if you can’t eliminate corruption by 100 percent, at least eliminate it 101 percent. The Pres-ident is a straight shooter, to the point: between the eyes of the cor-

rupt.” said Judan.EMSA Assessment Mr. Judan meanhwile expressed his confidence that the Philippines will now pass the assessment of the European Maritime Safety Administration (EMSA). “Yes, we are confident be-cause we are now more prepared compared to the last assessment.” according to Judan. In 2013, the country failed the European Union (EU) standards on maritime educa-tion, training and competency certificates. The audit was in line with the Philippines’ commitment to the 1978 International Convention on Standards of Training, Certifi-cation and Watchkeeping for Sea-farers (STCW Convention).Things can be done Judan said that he is al-ready an old man and he thinks that he will eventually relin-quished his post two years after he imposed the needed changes in the Maritime sector. “Once I made these im-provements, I will train someone to pursue these needed reforms. I hope it is doable in two years. At the moment, safety and the im-provement of our country’s mar-itime industry is my concern.” Judan ended.


UNITED FILIPINO SEAFARERS REMAIN TRUSTED SEAMEN’S ORGANIZATION IN ITS 22nd YEAR

By: Raffy ayeng

IN its 22nd year, the United Filipino Seafarers Inc. (UFS) continues to be the most trusted and reliable organization in protecting the welfare of Filipino

seamen sailing throughout the world. During its anniversary celebration last December 12, 2016 held at the National Press Club in Intramuros Manila, alongside the 22nd year of UFS official newspaper Tinig ng Marino, and the 11th Tinig ng Marino Awards, UFS president, Engr. Nelson P. Ramirez was nostalgic on how the UFS has started 22 years ago. “It is still very fresh in my mind how the federa-tion started from an empty carton and yellow pad, then to a cart or kariton. More than those crude equipment, however, we were armed with a noble vision and strong determination to be of service to the cause and plight of the Filipino seafarers,” Ramirez said. He further not-ed that as a group of grizzled seafarers, UFS is aware of the life and challenges that Filipino seafarers face on board and ashore. “While many in the local maritime in-dustry, both in the gov-ernment and the private sector, have been throw-ing accolades and prais-es on our seafaring men, branding them as part of the so-called modern-day heroes, seafarers are often times considered mere business commodities in the very com-petitive industry,” the UFS president narrated. He also lamented that almost often, seafarers are deprived of the right and proper attention so much so that the UFS took it upon itself to help things make happen. Ramirez firmly believes that Filipino seafarers are the anchors of the manning industry and they deserve better so when the UFS was officially formed 22 years ago, it hit the ground running. “Our long list of accomplishments or contribu-tions to the Filipino seafarers are testaments of our sincere advocacy: the streamlining of seaman’s books processing and extending its validity; exemption from paying trav-el taxes and airport terminal fees that also benefited the land-based OFWs; ridding out unnecessary examination requirements on seafarers imposed by Panama Maritime Directorate, literally battling tooth and nail for the clo-sure of substandard maritime schools; taking the steam off the controversial Management Level Course and other unnecessary training requirements on Filipino seafarers; pushing for the walk-in examination system and two-level written examination system for marine officers; and ex-emption from payment of income tax and NAIA terminal fee. These are just some of the important milestones in the UFS chronicled history,” Ramirez emphasized.


UNITED FILIPINO SEAFARERS REMAIN TRUSTED SEAMEN’S ORGANIZATION IN ITS 22nd YEAR

By: Raffy ayeng

And as constant as the UFS commitment to in-itiate reforms and help make things better for the Filipino seafarers and their families, the woes, the problems and the challenges keep coming like clockwork so it nev-er lets its guard down, continuously serving as a vanguard in the indus-try, always willing and ready to dip its hand on issues and help set things

straight. For his part, former MARINA Deputy Adminis-trator, Atty. Nick Conti lauded Ramirez, the members of the Board, and 51,000 strong seamen members for contin-uing to be the frontline in protecting the rights of Filipino seafarers. Besides Conti, the event was graced by top execu-tives of different manning agencies and training centers.11th tinig ng Marino awardees In its 11th year, UFS official publication, Tinig ng Marino, has once again saluted some of the outstanding personalities in the Maritime industry who made a differ-ence in the seafaring world. And the first three who brought home the Tinig ng Marino Loyalty Award were Eagle Star Crew Manage-ment, SBR Marine Services Corporation, and the Seaspan Ship Management Ltd. These companies were chosen for their undying support as avid advertisers for Tinig ng Marino newspa-per cum magazine in its every issue. The Tinig ng Marino Humanitarian Award was given to Michaelmar Philippines Inc. in recognition to its dedication to fighting indifference, intolerance and injus-tice to seafarers. Meanwhile, bagging the Tinig ng Marino Out-standing Maritime Organization Award was Integrated

Seafarers of the Philipines, chosen after making a significant technological contribution to improv-ing maritime safety or the protection of the mari-time environment. The Maritime Safety Award went to Cap-tain Luis Laurente who currently holds the Master Mariner and Marine Superintendent posts at the SWAN Shipping Corporation. He has been an ac-tive mariner since 1999 to the present. The Outstanding Manning Agency was also presented to Technomar Crew Management Corporation for achieving the highest standard of Marine Personnel Recruitment and by supplying seafarers who meet the standards of trainings in accordance with Classification Societies Rules and Statutory Rules and Regulations. Also, the Outstanding Training Center was reaped by Navigator Maritime Training and As-sessment Center Inc. The said company was cho-sen for securing good and advantageous training that supports the quality and skills crew members. Individuals were also cited at the 11th Tinig ng Marino Awards. The Outstanding Mas-ter Mariner awardee was Capt. Reynaldo Casareo. He was picked for this year’s outstanding mariner for his dedication to help seafarers in his crusade versus ambulance chaser. Casareo was also a con-tributor in the Unholy Alliance section of Tinig ng Marino. Capping the awards night is the Outstand-ing Chief Engineer which was given to MARINA Administrator Marcial ‘Al’ Amaro III. Amaro was cited because in just 49 days as MARINA Adminis-trator, he has already accomplished great achieve-ments such as crushing the anomaly of the board examination and stopping its leakage and publish-ing of the licensure examination’s test questions; stoppage of the usurious uniform rental and the exorbitant selling of documentary stamps and en-velops; stopping the very expensive training for Electro Technical Officers which could have cost

seafarers more than half a million pesos and now making it as a free assessment. Furthermore, Amaro also adopt-ed solutions to the perennial problem of MLC and OLC; adopted solutions to the A.B. Deck and Engine Ratings to sea-farers for extra ordinary expenses; abol-ishing of the assessment of ratings with experience; and lastly, conducting inves-tigation on the 4,000 lost COP certifi-cates which landed in the hands of fixers at T.M. Kalaw. The night was filled with cheers and merrymaking, especially for old friends who were once again reunited af-ter some years.


handle them the right way. This is the right time to let go of relation-ship that haven’t been working out. And do not let stress get the better of you. The 2017 Libra horoscope predictions forecast that this will be your year of discovery side come to the forefront. Express your ideas to other so that they can under-stand your dreams better. You will be a leading example for everyone around you. And do not forget to spend quality time with your family and loved ones. Scorpio astrology sign fore-tell that this year you are in a hur-ry to put your past behind. You will take the initiative to make your goals and targets work our for you. Love affairs will be many but only few will be serious. Eat healthy if you wish to be physically and emo-

tionally fit. Sagittarius zodiac in 2017 will have the enthusiasm and will power to move ahead with a firm mind. Your social life will be amaz-ing. Career and business projects will be challenging but profitable. Skin allergies will need to be taken care of. Sex and romance will be all time high for the Archers in 2017. The 2017 astrology predic-tions for the Capricorn zodiac sign forecast year of peace and harmo-ny. Though you have a reputation of being practical, in 2017 the sea goats will see an innovative side to their personality. Love and ro-mance too will be an important part of your life. This is a good year to get married. Astrology 2017 for the Aquarius predicts a year of excel-lent and positive opportunities. Be it love or career you will flourish in anything you put your heart to. Work will be plentiful and so will the remuneration. The pregnancy horoscope 2017 forecasts birth of a child for the Water Bearers in 2017. The 2017 Pisces sun sign

predicts that it will be able to look at life in a positive and calm manner. This cool demeanor will be the secret to their success in personal and professional life. The career prediction in 2017 by date of birth warns you not to let your

dreams and illusions stop you from achieving your goals. Fulfill all your projects with utmost sincerity and integrity. That’s it. The best part of these predictions is that they are absolutely FREE!

from page 31

THE MARITIME INDUSTRY OUTLOOK and YOUR ANNUAL HOROSCOPE IN 2017


ELPIDIO C. NOLASCO, MD, FPCS, PACSGeneral & Cancer Surgeon, Laparoscopic SurgeonPresident & Medical Director, Nolasco International Medical & Diagnostic Clinic

HEALTH TIPS

What you need to know about Stomach Cancer

Stomach cancers are the 5th most common cancer types worldwide, and the 3rd lead-

ing causes of cancer death in the world. After food has been chewed and swallowed, it passes down a tube called the esophagus and goes into the stomach. The stomach is a sack-like organ that holds food and mixes it with gastric juice to begin the pro-cess of digestion. The stomach wall has five layers. It helps to know about these layers because as cancer grows deeper into them, the prognosis for the patient gets worse. These are the five layers, working from the inside out: 1. The innermost layer is called the mucosa. This is where stomach acid and digestive juices are made. It is also where most stomach cancers start. 2. The next layer is the sub-mucosa. 3. A layer of thick muscle called the muscularispropriamoves and mixes the stomach’s contents. 4. The outer two layers, the subserosa and the serosa, act as the wrapping for the stomach. Most of the time, stomach cancer starts in the inner lining of the stomach (the mucosa) and slowly grows out into the other layers. Stomach cancer tends to grow slowly over many years. Be-fore a true cancer starts, there are usually changes that take place in the mucosa. These early changes rarely cause symptoms and often are not noticed. Stomach cancer can spread in different ways. It can grow through the wall of the stom-ach and into nearby organs. It can also spread to nearby lymph nodes (bean-sized collections of immune system cells) and then spreads through the lymph system. When stomach cancer is more advanced, it can travel through the bloodstream to other organs like the liver, lungs,

and bones. If the cancer has spread, the outcome is not as good. By far, most cancers of the stomach are a type called adenocarcinomas. This cancer starts from cells that form the lining of the innermost layer, the mucosa. The terms stomach cancer or gastric cancer almost always refers to this type of cancer. Lymphomas, gas-trointestinal stromal tumors (often called GISTs), and carcinoid tumors are other, much less common, tumors that are found in the stom-ach. The treatment and prog-nosis for these cancers are different from that of adeno-carcinoma. Stomach cancer is a disease that mostly affects older people. About 6 out of 10 people found to have stomach cancer are 65 or older. The risk of a person getting stom-ach cancer in their lifetime is about 1 in 111, but it is slightly higher for men than for women. Researchers have found some risk factors that make a per-son more likely to develop stomach cancer. 1. Gender: Stomach cancer is more common in men than in women. 2. Age: Risk increases with age. 3. Ethnicity: In the Unit-ed States, stomach cancer is more common in Hispanic Americans, African Americans, and Asian Pa-cific Islanders than it is in non-His-panic whites. 4. Where a person lives: Worldwide, stomach cancer is more common in Japan, China, South-ern and Eastern Europe, and South and Central America. This disease is less common in Northern and West-ern Africa, South Central Asia, and North America. 5. Infection with the bacte-

rium called Helicobacter pylori (H. pylori). 6. MALT lymphoma of the stomach, which is also caused by in-fection with H. pylori. 7. Diet: An increased risk of stomach cancer is seen in people with diets high in smoked foods, salt-ed fish and meats, and pickled vege-

tables. The risk of stomach cancer seems to be lowered by eating lots of fresh fruits and vegetables. 8. Tobacco use 9. Being overweight or obese 10. Earlier stomach sur-

Continued on page 41


World’s Shipping industry uneasy over Trump’s plan to surge interest rates

Analysts in the world shipping industry have expressed its alarm on the chilling

effects of higher interest rates in the coming years and during the tenure of United States President-elect Donald Trump. During his campaign in the 2016 US elections, Trump vowed that he would be “the best jobs pres-ident God have ever created”, with gains of 25 million jobs for US citi-zens in the next 10 years. And in do-ing so, higher interest rates must be applied by the Federal government. Interest rate is a fundamen-tal factor for the world’s shipping industry due to two major reasons: • higher interest rates canerode shipping company owners’ cash balances; •itcandisturbtheeconom-ics of low steaming. Due to higher interest rates, shipping companies’ cash balances may stumble since they are often highly leveraged with long-term loans priced at a spread over the London Interbank Offer Rate (LI-BOR). If LIBOR increases by a sig-nificant degree and for a significant period, this may the intervening cause for a shipping company to erode its cash balances. While interest rates can up-set the economics of low steaming during the time the cargo is in tran-sit, which is an inventory cost driv-en by the interest rate. Economics of low steam-ing involve determining the most cost-effective speed, based on the bunker cost, freight cost, cargo cost, and interest rate. A significant and sustained rise in interest rates should theo-retically compel a higher speed, in-creasing effective vessel capacity. According to Fotis Gianna-koulis, analyst of Morgan Stanley, the global financial services firm and a market leader in securities, asset management and credit ser-vices, “it remains to be seen how the policies of the upcoming adminis-tration will affect the interest rate

environment.” “The shipping industry is highly capital intensive and many companies are burdened with heavy loads of debt, which make the con-sequences of any changes to [inter-est rate] policies very important.” Giannakoulis reiterated. Trumps strategy to impose tax cuts and massive infrastructure program to boost consumer spend-ing are expected to fuel inflation and raise future borrowing costs. It is also perceived by play-ers in the shipping industry that tax cut is an indication of more general shift away from monetary stimulus (lower interest rates, quantitative easing) and towards fiscal stimulus (lower taxes, higher spending).Effects of higher interest rates to general economy Here are the various effects of higher interest rates in global econ-omy: Increases the cost of borrow-ing- Interest payments on credit cards and loans are more expensive. There-fore this discourages people from borrowing and saving. People who already have loans will have less dis-posable income because they spend more on interest payments. There-fore other areas of consumption will fall. Increase in mortgage interest payments- Related to the first point is the fact that interest payments on variable mortgages will increase. This will have a big impact on consumer spending. This is because a 0. 5% in-crease in interest rates can increase the cost of a £100,000 mortgage by £60 per month. This is a significant impact on personal discretionary in-come. Increase incentive to save rather than spend- Higher interest rates make it more attractive to save in a deposit account because of the interest gained. higher interest rates in-crease the value of currency due to hot money flows.-For instance, in-vestors are more likely to save in British banks if UK rates are high-er than other countries) A stronger

Pound makes UK exports less com-petitive – reducing exports and in-creasing imports. This has the effect of reducing aggregate demand in the economy. Rising interest rates affect both consumers and firms-Therefore the economy is likely to experience falls in consumption and investment. government debt interest payments increase- The UK current-ly pays over £30bn a year on its own national debt. Higher interest rates increase the cost of government in-terest payments. This could lead to higher taxes in the future. Reduced confidence- Inter-est rates have an effect on consumer and business confidence. A rise in interest rates discourages invest-ment; it makes firms and consumers

less willing to take out risky invest-ments and purchases. Therefore, higher interest rates will tend to reduce consumer spending and investment. This will lead to a fall in Aggregate Demand (AD). If we get lower AD, then it will tend to cause: • Lower economic growth(even negative growth – recession) •Higherunemployment.Ifoutput falls, firms will produce less goods and therefore will demand less workers. • Improvement in thecur-rent account. Higher rates will re-duce spending on imports and the lower inflation will help improve the competitiveness of exports.source: Ihs fairplay/economics.help

By Raffy ayeng


The Ship Officer’s Career Path in the UK

Here at UFS and Tinig ng Marino, we’ve always been outspoken in saying that the 7-year career path of the Filipino Ship Officer is ridiculously and unnecessarily drawn out, not to mention ex-

ploitative. Rather than keep repeating the same arguments, we thought we’d take another tack by providing our readers with a glimpse into com-parative career paths designed by other countries, in this case, the Unit-ed Kingdom.

In the UK, the international commercial shipping industry is referred to as the Merchant Navy. It is made up of a large number of ship-ping companies who recruit civilians as crew (officers and ratings), who are known as merchant seafarers. Shipping companies vary greatly in the size and type of ships they operate, their cargoes and areas of operation. Their trade routes may take them to every continent and across every ocean on the globe.

The ultimate rank on a ship is Captain or Chief Engineer. There's a clearly-defined career path to achieving this.

Superyacht cadetship

The UK has introduced a new officer cadet training program specifically tailored to the superyacht industry. The programme follows the Merchant Navy deck officer cadet foundation degree route, with the fundamental MCA underpinning knowledge units such as bridge watchkeeping, chartwork, ship stability and cargo work, but includes ad-ditional superyacht specific units such as superyacht operations, paint care and hospitality.

What we could learn from the UK:

•A three-year program, as long as it is thoughtfully designed to combine valuable and relevant academic and practical training, is quite enough for officers wanting to get on the officer career path.

•Once a candidate has successfully finished officer cadetship, he or she is presumed ready to take on the responsibilities of a ship officer. No more need to send him back to school for “unfinished business”, because the program has been designed to teach him what he needs to know.

•Additional skill sets and capabilities should be required on a case-to-case basis. Don’t waste cadets’ and officers’ resources by requiring them to master duties and skills that they will not be needing within their scope.

By ChRystaL ventuRa

1.Enrolling on an officer cadet training scheme programme. - This is a fully sponsored three-year program resulting in a Foundation Degree or HND academic qualification in either navigation or engineering disciplines, and involves academic and practical training at a maritime college integrated with periods of hands-on training at sea.

2.The application to enrol on an officer cadetship is made direct to the shipping companies. The scheme is similar to an apprenticeship but it's full time and the course fees and often a living allowance are paid for by the shipping companies. Newly-qualified officers enjoy a starting salary of around £25,000 per year, and most are also tax exempt due to their time working abroad.

Nautilus secures UK’s retention in the EUNavfor

By KIMBeRLy fRIvaLDO

Due to an attack on a British-registered chemical tanker off Somalia in November,

Nautilus International sent a letter requesting from the UK government for a guarantee that UK will stay in the European Union Naval Force (EUNavfor) counter-piracy operation. Having the letter addressed to foreign secretary Boris Johnson, Nautilus asked for an assurance that UK will remain the EUNavfor’s op-eration commander. Major General Rob Magowan was also notified for constant alertness at sea. According to Major Gen-eral Magowan, the attacks indicates that the pirates still tend to attack ships for ransom and cause misery to seafarers and their families. He said that it is imperative that the international communi-ty remains vigilant. The EU Naval Force is working with counterpira-cy partners to coordinate efforts to ensure pirates do not once again terrorise the waters off the Somali coast. Meanwhile, Mark Dickin-son, General Secretary of Nautilus, stated that the incident had not come as a surprise.

The International Maritime Bureau (IMB) report shows that pi-racy and armed attacks on merchant ships around the world have fallen to a 20-year low; however, there is still a need for vigilance. “We have been very pleased to see the lack of pirate activity in the area — and feel that this is in no small part due to the success of EUNavfor’s Operation Atalanta. However, it has been very clear that there is no room for complacency, especially as the political situation ashore in Somalia can best be de-scribed as fragile,” Dickinson ex-pressed. Based on the IMB report, the first nine months of 2016 wit-nessed a total of 141 incidents, down to 25 percent from the same time last year, and down to 60 percent from the same period five years ago. Yet, the IMB still advised the industry not to drop the current security levels. Making a point that pirates armed with guns or knives took 110 seafarers hostage in the first nine months of 2016, and kid-napped 49 crew for ransom, it stated that hostage taking and kidnapping are still a major peril off the coasts of West Africa and SE Asia.

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Japan Gov’t salvages MOL, NYK, K-Line after operating ...unitedfilipinoseafarers.com.ph/wp-content/uploads/2017/02/Tinig-ng... · Japan Gov’t salvages MOL, NYK, K-Line after operating