DSD Shipping may appeal $2.5mn pollution fine

OREANDA-NEWS. April 13, 2016. Norwegian shipping company DSD Shipping may consider appealing a \\$2.5mn fine issue by a US criminal court for discharging oily water and tampering with witnesses.

Chief executive Ingvald L?yning told Argus the company is considering an appeal of the sentence handed down by a Federal court in Alabama last week.

"We of course will do the utmost to avoid any similar incidents in the future," he said. "Our group is very concerned related to the environment and we invest a lot in environmentally friendly solutions for sea transport. In this regard it is also bad for our reputation."

According to the Department of Justice, DSD operated the oil tanker M/T Stavanger Blossom from 2010 to 2014 without an oily water separator as required by law. In January 2010 in an internal memorandum the vessels engineer warned the shipowner that the pollution prevention equipment was not working, but DSD continued to operate the vessel for 57 months before the US Coast Guard identified the issue in November 2014.

Along with the fine, DSD is also placed on three-years probation and is ordered to implement an environmental compliance plan to ensure its vessels obey environmental regulations.

The chief engineer and the second engineer of the vessel were also sentenced to six months imprisonment each. The fourth engineer was sentenced to two months in prison. The three face loss of their engineering licenses and exclusion from merchant marine employment. Lawyers for the men had not responded to requests for comment.