2012 COMPASS Meeting Newsletter

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Nov 18, 2013 (4 years and 7 months ago)



2012 COMPASS Meeting Newsletter

We held our 2012 COMPASS Meeting at the Fairmont Chateau Laurier in Ottawa,
another of the magnificent former Canadian Pacific hotels that dot the
major cities of Canada.

We thank our CSSA friends for their part in guaranteeing the success of this meeting.

Although our number of attendees was down
somewhat, we think due to the August dates, those
at the meeting rated the business meeting subjects

and social activities very highly, making this
meeting one of the best and worthwhile.

We continue to book speakers to our
meetings that address subjects that are important and pertinent to both our ship suppliers and our
associate members. This year w
as no exception. Our subjects were

debt collection, strategies
and tips and how to use social media in our industry. Both presentations including Q & A took
up almost the entire Friday Business Session. We will post the outlines of each presentation o
the NAMS and COMPASS websites, the bones of the presentations, but the meat is eaten when
you are actually there. When you are not there, you miss a lot.

In this newsletter, we will attempt to give you some of the information that fleshes out
the outl
ines of both speakers.

Our first speaker, Bruce Hailey, for more than 20
years, has been working as a lawyer focused on shipping
related matters. He has done work for a broad range of
clients including ship suppliers, various product suppliers,
agents, ship managers and shipyards. Much of his work
is in the area of debt collection involving ship arrests
worldwide in 40 different countries. He is also ISSA’s
General Counsel, makes presentations at their conventions
and offers ad hoc advice to me

His presentation was set out in these sections:

The Basics

Due diligence and know your customer

i.e. the way the fleet is

new ship/old ship, how long not under way & why; try to
determine what shape the company is in.


Terms & Conditions


Is your relationship with customer long or short term. Short term

to terms and conditions in the quote; the delivery note & invoice are
considered a contract document. (Inquiry

quote & acceptance are a
contract. A sta
mped de
livery note is important

Choice of Law

the seller location determines which law will apply

Timely action

don’t let the debt linger

a year old is difficult. Time

barred is a statute of limitations


2 years. Greek law is 1 year time

limit for a maritime lien. Arrest

1 year from Dec. 31 of the year’s

supplied. Check limitations on place of arrest.

Ship Arrests


Don’t wait for the return of the ship to U.S. or Canada


lawyer’s fees

court fees

translation fees (particularly the
Middle East
) are expensive, maintenance fees (feed crew, port fees,
insurance. POA’s
& COI’s notarization.

Threshold to Arrest

it depends on where the arrest is to be made, the
h of the ship




ends on where you are on the li
st for settlement if ship is sold and for
how much

more due diligence.

Threat of Arrest is sometimes sufficient and effective.

Questions asked

Now dealing with Ship Managers

how to ap
proach a problem.


even if it is a 3


the contract is with the owner; Manager

is an agent.

The ISSA conditions of sale say goods ordered by agents

agent and

owner are liable. If the ship manager goes bust, the owner is stil
l liable.

It’s an owner problem

go after the owner. Managers use their

purchasing power to drive down prices, but they are buying for owners. If

a manager claims an owner has not paid him email the owner that an arrest

is imminent if yo
u are not paid by the manager. Get to the owners. In

dealing with ship managers, the onus is on the ship supplier to determine

the credit worthiness of the owner.

Catering Companies

Usually this involves 2 contracts

one with the owner and
one with the

ship supplier. You can’t arrest the ship but the smaller amounts usually

involve $20,000

$30,000 is an advantage with the threat of a maritime

lien, assuring the ship will return to the arresting country.


database for catering companies?



Information re catering companies is usually shared on an

informal basis.


Should there be separate terms and conditions for catering



Caterers are subcontractors a
ppointed by owners as agents


action is the threat of arrest or sues

the caterer.


substantive proceedings

after an arrest, before 18 days there
is need
to issue
a substantive proceeding document by a lawyer or
arrest will lapse; be
aware of
lapsing’s arrest to keep it valid.

Court & lawyer efficiency

need to have an involv
ed lawyer


Counter Security

When arrests are made, some cour
ts have counter security requirements


20% of the claim from the claimant. Decisions to arrest are based on the costs

maritime costs, translation costs, original documents, POA’s/COI’s, ownership

transcripts, getting the ship released t
o save costs.

Risks for Arrest

Wrongful arrest

a ship sold in the intervening period can stop a valid arrest

Costs of the conditions required for Counter Security

Change in Ownership

if mortgage is a priority claim on a ship sold


suppliers are low on the list.

If a ship is abandoned

forget about it.

High maintenance cost

high risk

Ships arrested by the mortgage bank of the ship

forget it.

Preferred Jurisdictions for Arrest

The good jurisdictions have no requir
ements for counter security, powers of

attorney and costs are lower.

The bad jurisdictions

are OK with some complications such as

power of

attorney; amounts paid up front by the filer, lawyers are OK but courts are a


The ug
ly jurisdictions

don’t use them

difficult for ship suppliers


the lists on the websites)

Current Issues


Bank foreclosures on ships

they were tolerating defaults as the market is poor

to sell ships, but is now changing more likely to
foreclose but if you are below

the mortgagee

don’t arrest

not worth it.


if pirates go on board, ship suppliers

chances of collecting are low.

Court Regulated Restructuring

U.S. courts will recognize other courts restructuring

can sue for damages but

must be careful.

Laid up vessels

It is difficult to expect pressure on the owner

no sense to

arrest these.

Vessels for destruction

a list is available onlin
e. Keep an eye on this


“ships for destruction”

member Trade

One ship supplier a
sks another to supply the ship

owner goes bust

be clear before and agree who chases, who takes the risk.

Alternative to Ship Arrest

Bank Account “Freezing” in Greece

only can use when a Greek owner is using

a Greek bank. The U.S court stopped this in the U.S.

Project “Watchdog”

Bruce Hailey discussed a new ISSA project that basically is an information

sharing effort, in
volving credit information sharing by ISSA members in order to

assist in decision making. We will monitor the progress of this project.

Bruce Hailey can be reached via email at
. We thank

him for an outstanding presentation on this subject.

Social Media for Business

Our second presenter on Friday, Nathalie Carrier addressed the need to explore the
business use of social media. Nathalie opened the
Kismet Agency in 2007
and has been involved in the
Entertainment Marketing industry for more than 15
years. In addition to managing Kismet Agency she
shares her business and marketing expertise as a
business consultant at the Ottawa YM/YWCA advising
how best to use the Social
Media as a new marketing
tool for niche industries like ours.

Nattie outlined her presentation with these points:

What does your online profile say about you


Search Engine Optimization (SEO)

Tracking your traffic and success

Understanding platforms


What is social media?

It includes web
based and mobile based technologies which are used to turn
communication into interactive dialogue among organizations, businesses and individuals

Your Online Profile

Can you be found and are you current?

Are you credible and easy to do business with?

Do you measure up to your competition?

Are you up to your industry standard?

Nathalie Carrier profiled two websites in the Associations and pointed out differences
and strengths in both to emphasize what was

needed to upgrade the websites, i.e. coding issues
affecting formatting and navigation; site links often broken or misdirected; SEO needs attention.

A question raised

will this technology made the ISSA Register obsolete? The answer


the Registe
r provides credibility to the m
embers included in the Register and is a good
marketing tool.

A social media industry report of April 2012 indicates the benefits of Social Media
marketing including increased exposure


increased traffic 69%

ed market place
insight 61%

generated leads 58%

grew business partnerships 51%

improved sales 40%.
Commonly used social media sites


92%, Twitter

82%, LinkedIn

73%, Blogs


SEO (Search Engine Optimization)

SEO is the process of

improving the visibility of a website in search engines. The higher
ranked you are on a search results page and more frequently a site appears in the search results
list, the more visitors it will receive and as a result

more customers find you.

h Engine Optimization

Tips and T


Create meaningful and lasting content


Use keywords

as many as possible in your content to raise your
visibility/ranking on searches.


Ensure your social media platforms point to and reflect your site.


Think about wh
at your customers might type when looking for you or your



Update your site frequently.


Point to credible sites and have sites point to you.

Facebook for Business

This is a webpage for your company. Narrow your client base to those whom you might
want to do business. Ask them to like your page. Include
the notification feature that no
you have been visited and left a message

and if negative, you have the
opportunity to deal with
the problem.

LinkedIn for Business

LinkedIn is an interconnected network of experienced professionals from around the
world, representing 150 industries and 200 countries. You can find, be introduced to and
collaborate with qual
ified professionals that you work with. It is more suited for business as
twitter is not.

LinkedIn is more a tool to find someone that you want to connect with for business. It
would seem that with the up and coming generation who sit at their desks, p
rocessing the
quote/order in our business, this platform fits the profile.

Using social media is not free. It takes time and people to manage effectively to get the
results you expect. It takes an “every Monday” type of effort.

How can you measure soc
ial media results?

Businesses need to know what people/customers are saying about them and their
competitors. Google Alerts and Google Analytics provide a way for you to monitor and track
your efforts

who and how you are being found. They are free ema
il updates.

Social Media

Best Practices

Create Business profiles on different platforms but whatever platform you pick, stick to
it. If you opt in

engage your audience.

Your content and website speak for you

spend time developing it properly.

Layout is key

less is more

make your customer/client

have to


Social Med
ia is a

the ninth wave is the

largest. It is a tool you should consider just
to keep up. You should find someone to help you get involved or
if involved, have your website
reviewed. You can reach Nathalie Carrier, our presenter

. Her


Social Net
work Monitoring


Facebook, and LinkedIn, platforms that continue to be suspect in the area of credibility re

the information are now being monitored, for a fee, by
“reputation managers” who sift for negative information
by supposed users of business.
When anyone can post
anything re people/business without the necessary back
check, credibility issues pop up like mushrooms. In
industries like ours, which is a niche market, like
businesses are engaging in commerce to the benefit of
both. However, ship
supply is a highly competitive business, not immune to unscrupulous
tactics and social media is one area that offers pluses and targets.

We don’t know how many of our members are actively engaged

using social media, but
from what we have seen, websites

are common and the next step is the connection of buyer and
seller marketing using social media, with all its pluses and warts. Comments and experiences are
welcome here at NAMS World Headquarters.

COMPASS Golf Outing

Our golfers enjoyed the COMPASS G
olf Outing held at The Marshes Golf Club, one of
the finest in the Ottawa area. Our scramble format always offers a competitive, but social round
of team golf.

This year the low group was 4 under par:

Bill Robinson

Craig Bishop

Chad Lackey

ly Anderson

Second Low Group was 3 under par:

Bob Zeagman

Lester Catharine

Bruce Hailey

The golf outing is a great tradition for our meeting for many years. We find an excellent
course and make this a great social event for our meeting.

We are

grateful to George Contos owner of World Wide Metric for providing the golf
goody bags and some of the prizes. We always appreciate support for our meeting from our
Associate Members.

Spouse Tour


The Spouse Tour was a wonderful tour of the city of
Ottawa and Gatineau Park. The
ladies had a luxury bus take them first to the changing of the guards at the Parliament Buildings.
Our guide was a man with lots of credentials as he had
been a history teacher in the schools. The tour took in
Rideau Hall w
hich is the home of the Governor General
of Canada. We toured the grounds where we saw trees
planted by many of our presidents, in particular, John
Kennedy and first lady Jackie Kennedy. It was
interesting that these trees were planted in May 1963
just b
efore his death in November.

The tour went to Gatineau Park where we took
in Pink Lake and on to lunch at the wonderful Les Fougeres restaurant and beautiful gardens.
The ladies toured the Canadian War Museum, the Museum of Civilization, the famous Can
Founding Figures, and the Remic Rapids where we saw
the beautiful rock sculptures done by John Felice
Ceprano. He has to do these every year as the winter ice
carries them down the river each spring. At the end of the
full day tour, some were droppe
d off at the Byward
Market just a few blocks from our hotel. This was
considered by all as one of the best tours to date.


We welcome to NAMS membership, the following new members:

Horizon Air Freight

Ms. Jackie Ellis, contact


Houston, TX 77032

Cell Phone: (281) 770

Other: (800) 221


If you are in need of freight forwarding or any air freight solutions.

Allied Tube & Conduit

Ms. Carmen Samara, contact

16100 South Lathrop

Harvey, IL (708) 225

Night Ph: (708) 339


They are a brand of ATKORE and maker of Razor wire and Razor ribbon, fence
framework and perimeter security products.

Carmen is happy to reply to any inquiries you
might have.

Other making Associate Presentations and providing information:

Kerger Marine Electric

Hankje de Haas, General Manager of Kerger marine Electric located in Houston since
1985 updated the
attendees on Kerger’s products and services as the marine source for European
and Japanese electrical needs. The Houston warehouse carries more than 2400 different items
with 2 hour quote answers and same day shipping with email tracking information and s
shipping if needed. She distributed the new CD catalog and can email the latest version.

SOTA/Data floe

SOTA is a Communications Management Company offering a system to integrate
Telex/Fax configurations into

an email context. With SOTA


can direct all

Fax and Globe Email traffic to one email address.

Harvey Guttman of SOTA listed the various services offered including delivery and
confirmation, multiple routing options, with no contracts and no additional software.

A Report

CSSA President and ISSA Vice President Rocky Rocksborough
Smith gave the ISSA
report and made the following points:

ISSA’s PR campaign has now run its course
and will proceed on an ad hoc basis from now
on. It other words when we have somethin
g to
say, we will say it and not simply try and rustle
up news when there isn’t any.

The ISSA catalog new edition is to be published
on January 1

next year after further major
revisions for distribution in the 1


There is an on
going “discussio
n” with the Dutch as to whether their members who are
not listed in the ISSA Register can legitimately describe themselves as ISSA members.
We say not, they disagree.

Spencer Eade had an interesting visit from MI5 who demanded we terminate the
of an Iranian member who had been up to no good supplying parts for that
country’s nuclear industry. The member was dismissed immediately and Spencer was
not carted off to the Tower of London!

Two Regional Meetings are being planned: India in 2013 and Pa
nama in 2014.


There is an idea to launch something called Project Watchdog which will be a revived
credit information and debt recovery service managed by ISSA. No firm date has been
given as yet and the project is in embryonic stage.

The Membership of IS
SA continues to increase. There are now 1,676 member
companies. The Associate Membership

members in countries which have no national

is rapidly approaching 40% of the overall membership. Growth areas are
India Egypt and Indonesia.


the Cadiz meetings a study report by Saeed al Malik from UAE was presented on
the future of the ISSA Education Programme. It would seem that distance learning is the
favored route but the reality is that but the reality is that there is not much of a dem
within ISSA for a formalized education program so the whole idea may yet wither on the

The ISSA Quality Standard continues to prosper. All new Associate Members have to be
certified under the scheme. National Association take
up is patchy and m
any NAs do not
actually see the value in the scheme which is sad.

London will be the venue for the ISSA Convention for the next 3 years and for 2013 the
dates are 31

May and 1

June at the Park Plaza Hotel, Westminster Bridge right opposite
the houses of Parliament. The Convention website will go live on September 1

for you
to book.

COMPASS Meeting Dates for 2013

As you know, we have held our last two Annual COMPASS Meetings in August. These
last two have shown somewhat of a decline in attendance even though we had strong valuable
subjects for our Business Sessions and superior
hotels and destinations. Calls to s
ome who did not
attend indicated that timing of the meeting in
August did not mesh with travel plans that are
traditional in August.

Therefore, the COMPASS Group has made
the decision to go back to a spring time meeting,
late April to early May. The de
stination is
Jacksonville, Florida where we last met in 1990. We will let everyone know when the venue and
dates are in place.





We are very thankful for the support of our sponsors for this 2012 COMPASS Meeting.
r donations make possible a program that gives us the best opportunity to provide an
enjoyable experience for our attendees. We again recognize the various levels of contribution
as Platinum, Gold and Silver.


Philip Morris Duty Free

is sponsoring our Saturday evening Gala Dinner

Elaborate Communications/
Ship Supplier Magazine are sponsoring our
Saturday evening Gala Reception.

is sponsoring our Friday Delegate Luncheon


World Wide Metric

is providing golf goodie
bags and prizes for the golf
outing plus a sponsor of Thursday’s reception.

Wuensch Sales

is sponsoring the Hospitality Suite.

Cambridge Agencies
is sponsoring the Accompanying Person breakfast.


The following companies are sponsors for our Thursday
evening Welcome

Diplomatic Marine Division

Henry Company

Drew Marine USA

Chandler Supply Company

Kerger Marine Electric

Van Steen Supply (VMS)

Viking Fasteners
, Inc.

We thank all our sponsors for their continuing support of our Annual COMPASS

Meeting and
interest in NAMS and CSSA throughout the year.

Officers and Board Elections

At the Annual Meeting of Members the following people were elected.

Officers for 2012

13 1 year terms

sident Max Goldberg

Kamil Shi
p Supply



Peter Gronbeck

Atlantic Cordage


Don Rush


Delaware Ship Supply


Nils Gjesteby

Klausen Gestby

Board of Directors

3 year term


Lester Catharine

Fuji Trading (America) Inc.

Alex Korakis, Jr.

Hellenic Ship Supply

Janet Santana

Philip Morris Duty Free

Law of the Sea Treaty

Our General Counsel, Edison Dick reported on the possibility of Congressional action on
the Law of the Sea Treaty, which the U.S. has not joined and ratified. There h
as been a push
from a number of large corporations

Exxon Mobil, AT&T, and Lockheed Martin to encourage

The Law of the Sea Convention secures each coastal nation’s sovereign rights over living
and non
living resources and the marine envir
onment of the 200
mile EEZ. The Convention also
provides favorable conditions for securing access to the continental shelf beyond 200 nautical
miles of ocean under U.S. sovereign rights

an area larger than the lower 48 states. The
onvention also prov
ides a mechanism for U.S. companies to obtain access to minerals of the
seabed floor, and would ensure that ships flying American flags travel safely and securely
through international waters. To date, 161 countries and the European Community have si
and ratified the Convention. Despite bipartisan support, the U.S. remains the primary
industrialized nation not to have ratified the Convention. Any remaining concerns

such as the
Convention’s broad, vague environmental provisions

can and should

be addressed by the
Senate during its advice and consent.

Although there is little or no impact on Ship Supplier Companies, the members at the
Annual Meeting voted to join the American Sovereignty Campaign as a participating
organization in the ratifica
tion of the Law of the Sea Treaty.

Food for Thought

This was the headline of an article in the July/August issue of Maritime Magazine in the

medical section. At the outset of the article it mentioned that with just two more member states
ratification, the M
aritime Labour Convention (MLC) 2006 would go into effect. Part
of the MLC has to do with compulsory requirements for food and nutrition for the crew. The
impact on ship suppliers is the necessity to request clear realistic requirements

and frameworks
in contracts between suppliers and companies.

In the article, Mr. Robert Steen Kledal, Managing Director of WRIST Ship Supply stated
that “Ship Supply plays a crucial role in ensuring crew welfare as well as maintaining
productivity, per
formance and generating efficiencies”.


We will monitor the MLC 2006 to inform you when these new requirements are to be put
in place.


from the conference

Parliament Buildings light show


Parliament Buildings light show


The Spouse Tour at Pink Lake Gatineau Park

Rock Sculptures at Remic Rapids

Rock Sculptures at Remic Rapids Ottawa River


Rideau Hall


Parliament Grounds


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Byward Market Vegetable Stand

Les Fougeres Restaurant and Garden

Lunch for Spouses in Gatineau Park

Museum of
Civilization Spirit Hall

Museum of Civilization


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Director’s Dinner



Bruce Hailey

ISSA’s General Counsel





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Jackie Ellis



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Town of Gatineau

Fairmont Chateau Laurier and Rideau Locks

Rideau Locks

Chateau Laurier from

Locks with boats going through

Hand cranking the locks

Gatineau Bridge from locks

Locks with Chateau on right from street in front of


Gala Reception Saturday Night

Gala Reception sponsored by Elaborate

Gala Dinner Saturday Night

Gala Dinner

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