International Chamber of Shipping Emergency Events Call Thursday 18 January 2024 at 13:00 UK time

International Chamber of Shipping

Emergency Events Call

Thursday 18 January 2024 at 13:00 UK time

Red Sea 

John Stawpert, ICS
 

• Attacks continue on merchant shipping.
  
   
• In response to these attacks, Operation Prosperity Guardian was established by the combined military forces that operate from Bahrain in a US commanded mission, to act as a deterrent and a protective umbrella for shipping in the region.  It will not take direct action against the Houthis, and will defend the area.   It will not provide convoys.  There will be an increased military presence in these waters.  
  
   
• The EU is also looking at operation in the region, which is likely to be based on AGENOR (the European system in place for the Persian Gulf).
  
   
• The major development in the past week has been the US and UK strikes on Yemen. It is not yet clear as to how much impact this has had on the Houthis, although it is apparent that the Houthis are being resupplied.  
  
   
• There have been two attacks on the fringes of the operation that have successfully hit ships, and so the response will continue to evolve.
  
   
• There has been a varied response across shipping companies.  Major container lines have rerouted, which in most cases is a decision that predates the UK and US action ashore.  A number of oil majors have also made the decision to reroute around the Cape due to the perceived risk to their vessels following US and UK strikes.  However, it is worth noting that shipping is continuing through the Red Sea, so there will be disruption to the European and Asian market but it should not be as extreme as some media reports are quoting.
  
   
• It has been reported that insurance for ships has in some cases risen to 1% of ships value, which ICS believes to be an exaggeration, with figures actually having risen to 0.5 - 0.7%.  
  
   
• Another issue to consider will be the availability and cost of bunkers at Cape Town due to the increase in shipping taking that route.
  
   
• ICS has emphasised in media communications, that the priority is the safety of seafarers.
  
   
• The IMO Secretary-General held a meeting on the morning of 18 January, in which he highlighted his priorities as:
  1. Safety of seafarers;
  2. Freedom of navigation; 
  3. De-escalation of attacks.
     
      
• At this meeting, the industry reps raised concern over the use of diplomatic channels to secure the crew of the Galaxy Leader.  Reassurances were made that efforts are being made and that updates will be received at an appropriate point.  Negotiations are now more difficult, as the Houthis have been named as a terrorist organisation.
  
   
• Industry also raised concerns with respect to guidance.  One course of action that will happen is the revision of BMP to be on a threat basis.   IMO security guidance will be revised and will also cover the use of armed guards.
  
   
• ICS is grateful to the IMO Secretary-General for his efforts with the United Nations, after he made a statement at the UN Security Council.   The Secretary-General is also using his office to try and bring in regional states through the Djibouti Code to address the crisis in a more local way.
  
   
• Industry proposed the consideration of a corridor along similar lines to the grain corridor that was established as part of the Black Sea crisis.
  
   
• Also on 18 January, ICS attended an industry meeting with the UK Secretary of State for Transport.   The department gave a debrief of the intent of UK forces, which is to degrade and deter.  Reassurances were given that freedom of navigation is paramount.   The Secretary of State also advised that he had also met with the IMO Secretary-General.  
  
   
• Concern was raised over the advice that is being given to companies, and the ability of Masters to be able to transit the Red Sea.  The UK cannot issue guidance advising not to transit the Red Sea, and decisions should be based on risk assessments undertaken by companies.
  
   
• Industry security experts will raise this issue with NAVCENT.  After the attacks on 11 January, NAVCENT had issued guidance advising to pause Red Sea transits for 72 hours, but did not provide any follow up information.  More information and guidance is required in order to plan and navigate this region. 

• The Houthis have said that they will target Israeli, US and UK linked vessels.  Prior to 11 January, there was some disagreement over how accurate this was, although most recent targeting would bear out the Houthi statement.   

Phil Belcher, Intertanko

• The openness of both the IMO and DFT meetings was welcome, both were open to ideas and how to move forward on the agenda and diplomatically outside of the meetings.   One aspect that was raised was emergency response in the Red Sea.   

Ian Trebinski, V Ships

• Ian asked if there is initial perception around the threat shifting and whether targets are likely to change.   John Stawpert responded that ICS will raise this question with NAVCENT.
  
   
• The general perception for the Straits of Hormuz, is that Iran will not escalate tension in the region.  The IRTC is patrolled by warships so there is the potential for other forces to act against strikes and Houthi activity in those areas. 

Jason Zuidema, ICMA

• Jason asked if any of those on the call have wider seafarer welfare concerns that they should be aware of as a result of the events in the Red Sea.  Response from the group indicated no immediate concerns; V Ships for example have not received any requests to disembark, and noted that there are many options for safe ports in the area.  Potential issues that may arise may be delays in crew changes and taking on provisions.  
  
   

Peter Williams, Japanese Shipowners’ Association

• The US government released an NSCI alert on 15 January, advising ships to remain clear of the area.  The effective dates of this advice are 15 January to 5 February.  Some shipowners have come through the Suez Canal and are now holding north in the Red Sea, trying to transit to Asia, and are concerned about how they will exit the area.   All Japanese shipping majors are now rerouting.   Chris Oliver commented that the operation in the area is not operating escorts.  
  
   
• Peter commented that while ships are turning off their AIS , their satellite data is still on and asked if this could be used for targeting.  Chris Oliver advised that LRIT data belongs to the flag state and is supposed to be secure, so it should not be possible to use this for targeting, in principle.  Phil Belcher added that any coastal state is able to poll the data.
  
   
• A JSA member advised that they had seen a post appearing to be from BIMCO, advising to remain clear of the area, however this was not mentioned on the BIMCO website to support this.  Phil Belcher confirmed that Jakob Larssen had posted this on his personal LinkedIn page and it was a legitimate message, although had not appeared on BIMCO’s main website.  

Katalin Dobranszky, ECSA 

• The EU parliament adopted a resolution on 18 January calling for a naval operation and immediate actions in the area.  Implementation is expected to be by end of February at the latest.  The ECSA Secretariat is discussing the proposals and are working on a proposal that ASANAR should become an EU naval operation in the area. 

Peter Hawkin, Synergy

• One of their managed vessels was hit last night, fortunately without injuries.  Peter asked if there is any indication that the Houthis may change targeting or types of weapons, in order to inflict human casualties.  John Stawpert responded that it may be luck that we have not yet seen any casualties.  

Russell Pegg, OCIMF

• In response to Peter’s question, advised that a Blowfish USV was used in an attack last week.   Some reports suggested that this was a submersible craft, although this is unlikely.    Mines have not yet been used, and this would open a completely different threat vector. 

• What is of concern is what has been revealed the US seizure of the dhow, which has exposed some sophisticated technology including AI based cameras fit for warheads.  

Xianyong Zhou, Intercargo

• In the last four days, three bulk carriers have been hit, although it could be any vessel. 

Pierre-Antoine Rochas, (Armateurs de France) 

• The French navy has provided a certain amount of protection to merchant ships, but not as escorts.   Support provided by the French has been in relations to ships with French and foreign interests, in collaboration with the UK and US within the framework of Operation Prosperity Guardian.    
  
   

Phil Schifflin, Seamens Church

• While it is fortunate that no seafarers have been injured, high risk situations have a great impact on a crew’s mental health.  Phil encouraged the group to ensure that mental health provision is considered.

Captain Nittin Handa, Hong Kong Shipowners Association

• Nittin asked if it was expected that the target list for the Houthis would be expanded as other countries declare their support for Operation Prosperity Guardian.   John Stawpert responded that it seems to be the case that their target list is in response to Israeli action in Gaza, and then US/UK as the two countries targeting sites in Yemen.   There is no guarantee that this will remain the case.
  
   
• Nittin asked if there were any indications of heat seeking weapons, or similar, being found on the dhow.  In response, Russell Pegg of OCIMF shared the following link:
   https://www.thedrive.com/the-war-zone/yemen-bound-missile-parts-sensor-systems-seized-in-seal-raid 

Ukraine

Chris Oliver, ICS

As far as ICS are aware, the situation in Ukraine and the Black Sea remains as previously.  No further updates were received from the group.