Mon 24 Oct 2016, 09:50 GMT

Shipping firms fined $1.3m for dumping oily waste and cover-up


Oily waste discharged on voyage to Seattle; false log books given to Coast Guard inspectors.



The ship owner and operator of the cargo ship M/V Gallia Graeca [pictured] were fined $1.3 million by a U.S court on Friday for the dumping of oily waste at sea and a subsequent cover-up.

The sentencing of ship operator Angelakos (Hellas) S.A. and ship owner Gallia Graeca Shipping Ltd. comes four months after the companies were found guilty in June for violating the Act to Prevent Pollution from Ships, falsification of records in a federal investigation and engaging in a scheme to defraud the United States.

The trial

According to records filed in the case and testimony at trial, the M/V Gallia Graeca travelled from China to Seattle in October 2015. During the voyage, a pollution-control device known as an oil water separator was inoperable.

On 16th, 26th and 27th October 2015, the defendants were deemed to have discharged overboard approximately 5,000 gallons of oily bilge water and concealing these incidents from the Coast Guard by making false statements to inspectors and making false entries and omissions in the ship's oil record book.

When Coast Guard inspectors asked the engineers to operate the oil water separator during the inspection, the engineers did so in such a way that the equipment appeared to be working properly, even though it was not.

The inspectors examined the oil water separator and found its filters were clogged with oil and found oil residue in the overboard discharge piping. Records indicated the oil water separator had not been serviced for months prior to the voyage from China.

The defendants presented the Coast Guard with an official oil record book stating that bilge water had not been discharged during the voyage to Seattle. However, the Coast Guard investigation discovered evidence that oily water had been discharged into the sea three times on its voyage from China.

Calling it 'a voyage of deception and pollution", prosecutors argued that the engineers tried to hide the pollution from the Coast Guard to avoid having the ship detained in Seattle. Keeping the ship on schedule was a benefit to the owners and operators who had a contract to move $25 million in goods out of Seattle. Shipping company executives were said to have been in contact with the engineers about how they should present the log book for the Coast Guard inspection.

"Through strong partnerships with the Department of Justice, the U.S. Attorney's Office and our Coast Guard Investigative Service, this case demonstrates our commitment to hold accountable shipping companies engaged in illegal activities," said Captain Joe Raymond, Coast Guard Captain of the Port Puget Sound. "The Coast Guard will protect our marine environment through coordination with international, national, regional and local partners and will promote sustainable development of our nation's ocean resources by enforcing pollution prevention laws and regulations and maintaining a robust vessel inspection program."

Sentencing

The companies were placed on five years of probation and required to have environmental compliance plans in place to ensure they abide by anti-pollution policies and regulations.

In addition to the $1.3 million fine, U.S. District Judge Coughenour ordered a $200,000 community service payment to be shared between the National Fish and Wildlife Foundation and the National Parks Foundation. The payment will go to fund marine restoration and preservation projects in the Pacific Ocean, the site of the pollution incident.

The two engineers who operated the ship's equipment and falsified the log books were sentenced to short prison terms before returning to Greece.

In imposing the monetary penalty, U.S. District Judge John C. Coughenour for the Western District of Washington said he hoped the sanctions "would resonate and cause other companies to pause when they think about creating a corporate culture that encourages deception."

"These companies promoted a culture of lies and lawlessness that left a trail of pollution in the Pacific Ocean," said U.S. Attorney Annette Hayes. "Knowing that the Coast Guard was going to do an inspection of their shipping vessel, corporate managers allowed the Chief Engineer to present falsified documents. The significant fines imposed in this case send a clear message that those who spoil our environment by putting their business interests ahead of our laws will be held responsible."


Factory Acceptance Testing (FAT) for X52DF-A-1.0 engine. WinGD completes factory testing of ammonia-fuelled engine for LPG carrier  

X52DF-A-1.0 engine tested in China ahead of installation on first of four vessels under construction.

Drift Energy energy-harvesting ship render. RINA awards first approval in principle for energy-harvesting ship  

Drift Energy receives certification for vessel design that generates clean energy at sea.

MSC World Europa vessel. MSC Cruises achieves flag state recognition for verified methane emissions data  

Bureau Veritas certifies actual methane slip values for two LNG-fuelled cruise ships.

IBIA and EENMA MoU signing. IBIA and Greek shortsea shipowners sign cooperation agreement  

The International Bunker Industry Association partners with EENMA to support the marine fuels sector.

Hapag-Lloyd and Scan Global Logistics logos. Scan Global Logistics and Hapag-Lloyd expand biofuel partnership to cut shipping emissions  

Collaboration claims to avoid 8,500 tonnes of CO₂e emissions through second-generation biofuels.

Lapis Ace ship-to-ship LNG bunkering operation. MOL signs first annual LNG bunkering contract for car carriers in Vancouver  

Japanese shipping company secures year-round fuel supply with Seaspan Energy at Canadian port.

Gasum's LNG bunkering vessel Coralius. Gasum’s maritime bio-LNG sales surge from 0.8% to 12.3% in 2025  

Nordic energy company attributes growth to FuelEU Maritime regulation introduced in 2025.

Port Authority of Valencia board meeting. Valenciaport gives LNG bunkering go-ahead to Shell and Axpo Iberia  

Port authority approves two LNG bunkering authorisations as part of its decarbonisation strategy.

Northern Purpose naming ceremony. BSM enters LCO₂ carrier segment with management of dual-fuel Northern Purpose  

Bernhard Schulte Shipmanagement takes over first liquefied carbon dioxide carrier for Northern Lights project.

Anna Cosulich vessel. Fratelli Cosulich takes delivery of methanol-ready bunker tanker Anna Cosulich  

Vessel built in China will head to Singapore to support group's bunkering operations.