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Shipping firms face USD 2 mil fine after pleading guilty for dumping oil at sea

Prive Overseas Marine LLC and Prive Shipping Denizcilik Ticaret pleaded guilty to conspiracy, knowingly violating APPS and obstruction of justice related to falsification of Oil Record Book of tanker “PS Dream”.

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PS Dream vessel

Two related companies that operated the motor tanker PS Dream – Prive Overseas Marine LLC and Prive Shipping Denizcilik Ticaret – pleaded guilty on Tuesday (21 May) to conspiracy, knowingly violating the Act to Prevent Pollution from Ships (APPS) and obstruction of justice related to the falsification of the tanker’s Oil Record Book, which is a required log.

According to the US Department of Justice, the guilty pleas were entered in federal court in New Orleans.

If the court approves the plea agreement, the companies will be fined a total of USD 2 million and serve four years of probation. Separate charges have been filed against Captain Abdurrahman Korkmaz, a Turkish national who was the ship’s master.

The criminal case stems from the report of a crew member who, on Jan. 11, 2023, contacted the Coast Guard in New Orleans, which was the next port-of-call, and shared a video showing oil being pumped overboard and trailing behind the tanker. When the ship arrived in New Orleans two weeks later, this individual and another crew member blew the whistle and provided evidence to the Coast Guard. Video and photographic images were filed in court today by the prosecutors.

“Deliberate pollution from ships, intentional falsification of records and obstruction of justice are serious environmental crimes that will be vigorously prosecuted to the full extent of the law,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Maritime laws regulating pollution from ships are intended to ensure that ocean waters are not used as a dumping ground.”

“This case involved deceit and willful pollution, and this prosecution is intended to hold both the corporations and individuals accountable,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Criminal prosecutions are needed to deter deliberate efforts to circumvent our Nation’s anti-pollution laws. Importantly, $500,000 of the criminal penalty will go toward environmental protection of the marine environment in our area.”

“Today's outcome sends a powerful message: those who falsify logs and take deliberate actions to conceal pollution will face significant consequences,” said Captain Greg Callaghan, Deputy Commander of U.S. Coast Guard (USCG) Sector New Orleans. “The Coast Guard and our partners remain steadfast in our shared commitment to safeguarding our waters and holding accountable those who threaten our marine ecosystems. We encourage individuals to continue reporting any suspicious activities, as each report plays a crucial role in protecting the marine environment."

“It is long past time for the maritime industry to meet its obligations under international law and stop illegal pollution from ships,” said Assistant Administrator David M. Uhlmann of the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance. “Illegal ocean dumping and falsifying records to conceal those violations will not be tolerated by EPA and our federal law enforcement partners.” 

The falsified logs, presented to the Coast Guard during its inspection, were intended to conceal the fact that the crew had dumped oil-contaminated waste overboard on the voyage to New Orleans and was not complying with MARPOL Annex I, an international treaty regulating oil pollution from ships. 

According to court documents, the ship’s master ordered crew members to pump overboard from the residual oil tank, which contained oily waste. A portable pump placed inside the tank and connected to a long flexible hose was used to discharge directly into the ocean without any required pollution prevention equipment or monitoring. 

The waste oil, including sludge, originated in the engine room and had been improperly transferred into the residual oil tank on the deck of the ship by a prior crew. Senior managers at Prive Shipping were aware that the oil-contaminated waste remained in the tank and were informed by the ship’s master that it had been dumped overboard.

The proposed USD 2 million criminal penalty includes USD 500,000 in organisational community service payments that will fund various maritime environmental projects in the Eastern District of Louisiana. Those projects will be managed by the congressionally established National Fish & Wildlife Foundation. The court also has authority to award up to USD 500,000, half of the APPS portion of the fine, to the whistleblowers that provided evidence leading to conviction.

Prive Overseas Marine is based in Dubai and Prive Shipping is based in Turkey. The corporations were charged with four felonies: conspiracy, an APPS violation and two counts of obstruction of justice. Captain Korkmaz was charged with two counts: a violation of APPS and obstructing the Coast Guard’s inspection of the ship.

 

Photo credit: büra keskendir / MarineTraffic
Published: 23 May 2024

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Vessel Arrest

Malaysia: MMEA detains tanker for anchoring without permission near Port Klang

Tanker was anchored 5.9 nautical miles west of Pulau Pintu Gedong; Second Deck Officer and Second Engineer were taken to the Pulau Indah marine police jetty for further action.

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Malaysia: MMEA detains tanker for anchoring without permission near Port Klang

The Malaysian Maritime Enforcement Agency (MMEA) on Wednesday (23 April) said it detained a tanker for anchoring without permission at 5.9 nautical miles west of Pulau Pintu Gedong at about 3.15pm on 22 April. 

The ship was operated by a 36-year-old Thai captain with 16 crew members aged between 20 and 55 years, consisting of 13 Thais including two women, two Myanmar nationals and an Indonesian national.

The inspection found that the ship had committed an offence under the Merchant Shipping Ordinance 1952 by not obtaining permission from the Director-General of the Malaysian Maritime Department and for failing to fly the Malaysian flag. 

The tanker’s Second Deck Officer and Second Engineer were taken to the Pulau Indah marine police jetty for further action.

 

Photo credit: Malaysian Maritime Enforcement Agency
Published: 24 April, 2025

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Legal

BlackStone & Gold on causation in misdelivery cases: “Maersk Katalin”

Law firm provides an analysis on misdelivery claims and whether the pendulum has swung back in favour of the banks after a recent spat of successes for shipowners defending against misdelivery claims.

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Blackstonegold team MT 02 1

Law firm BlackStone & Gold recently provided Singapore-based bunkering publication Manifold Times its analysis on misdelivery claims and whether the pendulum has swung back in favour of the banks after a recent spat of successes for shipowners defending against misdelivery claims:

By Baldev Bhinder, Managing Director, and Ramandeep Kaur, Director of BlackStone & Gold 

The original bill of lading (“OBL”) represents the cornerstone of security for international trade finance. Lenders seek a right to the OBLs because it would give them a notional right to the cargo and in its absence, a claim for misdelivery against shipowners that released the cargo without presentation of OBLs. 

A series of decisions from Singapore and UK between 2021 and 2024 however signalled a weakening of misdelivery claims, with shipowners successfully resisting such claims (in summary judgment applications or on merits). 

These decisions have put the spotlight on the defence of causation of the loss, and in particular whether holders of OBLs like banks would have allowed discharge without presentation of the OBLs. This examination of the lender’s conduct in turn brings into focus the multiple layers of security in a trade finance structure and the lender’s knowledge of permitting cargo discharge without OBLs, thereby setting up a defence against misdelivery claims. 

The “Maersk Katalin” [2024] SGHC 282, provided an occasion for the Singapore High Court to analyse the issue of causation at trial. This case makes clear the highly factual nature of the causation defence – a shipowner resisting a misdelivery claim would therefore have to lead evidence that the bank making the misdelivery claim would have been consulted and would have permitted discharge without OBLs. 

From the bank’s perspective, this case underscores the need for banks to be alive to any conduct, which may undermine the value of the OBL as security – this is particularly so when straddling the different types of security interests that the bank takes.

Note: The full article by BlackStone & Gold can be read here

 

Photo credit: BlackStone & Gold
Published: 24 April, 2025

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Winding up

Singapore: Annual general meetings scheduled for Xihe Holdings subsidiaries

Development includes Da Xin Tankers, Dong Sheng Tankers, Dong Ya Tankers and Hua Zhong Shipping; meetings will be held electronically on 7 and 8 May, according to Government Gazette notices.

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RESIZED Drew Beamer

Several notices were published on the Government Gazette on Tuesday (22 April) regarding the annual general meetings of the companies and creditors to be held electronically on 22 April for Xihe Holdings subsidiaries.

The subsidiaries are Dong Sheng Tankers Pte Ltd, Da Xin Tankers Pte Ltd, Dong Ya Tankers Pte Ltd, and Hua Zhong Shipping Pte Ltd.

Annual general meeting for Dong Sheng Tankers are to be held on 8 May at the following times:

For the company: 2pm

Annual general meetings for Da Xin Tankers are to be held on 7 May at the following times:

For the company: 10am
For the creditors: 11am

Annual general meetings for Dong Ya Tankers are to be held on 8 May at the following times:

For the company: 10am
For the creditors: 11am

Annual general meetings for Hua Zhong Shipping are to be held on 7 May at the following times:

For the company: 2pm
For the creditors: 3pm

The agenda for all the meetings are:

  • To receive an update on the liquidation. 
  • To receive an account of the Liquidators’ acts and dealings, and of the conduct of the winding up

Manifold Times previously reported on the winding up of Da Xin Tankers, Dong Ya Tankers and Hua Zhong Shipping Pte Ltd and the appointment of the joint and several liquidators of the firms. 

Related: Singapore: Da Xin Tankers, Dong Ya Tankers, Hua Zhong Shipping to be wound up

 

Photo credit: Drew Beamer
Published: 23 April, 2025

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