the dcn.com.au First published in 1891 The voice of Australian shipping & maritime logistics 26 Update on the North American liner trades 32 Biosecurity: keeping the bugs at bay 48 Towards a more sustainable shipping industry September 2022 WesternAustralia The state of freight in the west
www.dpworldaustralia.com.au WE CONNECT THE WORLD TO WHAT’S POSSIBLE DP World Fremantle is investing in our future and our community with a $35 million transformation project to deliver improved efficiency, additional capacity and service reliability to create a clear pathway for Western Australia’s importers and exporters.
A WELL CONNECTED HUB & KEY TRADE GATEWAY TO ASIA
the dcn .com.au4 September 2022 XXXXXX Contents FEATURESCOLUMNS 16 Industry opinion Crime in the supply chain 18 Industry opinion The changing face of border regulation 20 Analysis Saving Portland Bay 22 Industry opinion Are autonomous vessels a pipe dream or reality? 24 Industry opinion Developments in shipping competition protections 56 Trade law Productivity Commission research casts light on our trade performance 58 Industry analytics A look at container demurrage and detention 60 Maritime country profile Panama 62 Out & about Welcoming Pacific Encounter 64 Maritime history The global wheat shortage in September 1922 66 The grill DCN sat down with seafarer Jamie Lee Baim 26
Our trade with the Americas has been hit hard by congestion 32 Biosecurity & quarantine Outbreaks and incursions highlight biosecurity risks to Australia 38 Western Australia A closer look at Western Australia’s sea freight task 48 Green shipping Sustainability beyond environmental targets 26 48 38 32
Liner trades to the Americas
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EDITORIAL
It’s brown marmorated stink bug season
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Daily Cargo News acknowledges the Cammeraygal people, the traditional custodians of the land on which this publication is produced. We pay our respects to their elders past and present. We extend that respect to all Aboriginal and Torres Strait Islander peoples today.
And also, dear reader, in this issue (on page 26) you can read all about the container liner trades to North America. Our correspondent Dale Crisp does a deep dive into the ins and outs of port and supply chain congestion in Pacific ports, and what it means for us in Australia.
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September marks the start of brown marmorated stink bug season here in Australia, meaning those of our readers who deal with imports have another headache to deal with for the next eightAndmonths.asidefrom these pernicious little critters, biosecurity has been in the mainstream media recently with a vicious incursion of the varroa mite, apparently from the Port of Newcastle, and an outbreak of foot and mouth disease in Indonesia.
ISSUE NUMBER 1266
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In this edition of the DCN magazine, on page 32, we have an examination of the biosecurity situation in Australia. While biosecurity compliance may be a costly hassle for importers, the alternative could be devastation in some of our export sectors.
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the dcn .com.au6 September 2022
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And green shipping and reducing carbon emissions is a hot topic these days and will do nothing but become hotter in the coming months and years. On page 48, we take a look at measures that some are taking to reduce carbon emissions in the supply chain – from using biofuel in containerships to instituting “green corridors” for the iron ore trade.
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Fair Work Commission proceedings commenced on 26 July at a conciliation conference, but a second conference scheduled for 5 August was postponed until 29 August.
“In truth, the delay in negotiations is entirely within the control of the MUA, for reasons best known to them they seem to want to avoid timely engagement with the industrial umpire,” Mr Dummett said.
Darwin Port workers launched industrial action against their employer in August with a series of strikes and indefinite work bans.
However, Darwin Port acting CEO Peter Dummett said port management had “developed an improved wages offer” and was committed to the timely resolution of enterprise bargaining negotiations.
“But, as previously noted TasPorts commenced proceedings in the Federal Court of Australia against CSL Australia (CSL), the owners of the cement carrier Goliath which allied with the tugs, to guard against the possibility of proceedings being commenced in a less suitable jurisdiction.”
“The company has developed a pattern of behaviour here in which delay, distraction and dishonesty have become the norm,” MUA deputy national secretary Warren Smith said.
Mr Donald said the insurers and the highly experienced salvors (United Salvage) said it was one of the most complex salvage operations they have undertaken.
News in brief
“But we believe that the commencement of proceedings is a prudent step to take to protect our rights,” he said.
Darwin Port workers strike
Darwin Port is owned by Landbridge Group
The AAL Melbourne departed from Port of Devonport on 16 August with the salvaged York Cove and Campbell Cove wrecks on board.
TasPorts CEO Anthony Donald estimated that more than 100 people had been working on the salvage operations throughout the past seven months.
Employees at Darwin Port stopped work for an hour at 1300 each day for a week and planned to continue with indefinite work bans until an agreement was reached.
Mr Donald said the final damage bill was unknown at this stage.
Full details at thedcn.com.au
“The salvage work ... was slow and deliberate, and ultimately successful, and reflects the detailed and collaborative planning that was required to complete the work,” he said.
the dcn .com.au8 September 2022
Mr Donald said it is not TasPorts’ intention to progress the proceedings unless it becomes necessary to do so.
York Cove tug wreck salvaged from Mersey
DevonportRiver tug salvage operation ends
The MUA said port management had offered workers a wage increase of slightly more than 2% after the Fair Work Commission raised the national minimum wage by 5.2%.
“Management and the privateers, on huge wages, are having a privatisation party and expect their workers to pay for it – they will not.”
Burnett;RobAckerman;Ian
The union suggested the increase offered to employees therefore amounted to a pay cut, and that the company had “failed to make good” on commitments to table a pay offer to form the basis of a new employment agreement.
The industrial dispute was set in motion when the Maritime Union of Australia, the Australian Maritime Officers Union and the Australian Manufacturing Workers’ Union accused Darwin Port of seeking to cut its workers’ pay under a new employment agreement.
The two tugs sank in January when the cement carrier Goliath allided with the two berthed vessels.
“The wrecks were located in the middle of a city port that remained open. In addition, in the Mersey River we not only had the challenge of what the tide was doing but we also have natural eddies in the area,” he said.
The Australian Maritime Safety Authority on 23 July banned Liberianflagged oil tanker AG Neptune from Australian ports for six months.
Svitzer said it is facing competition from other players which are unburdened by the “restrictive” terms and conditions of EBAs.
A Kiwi logistics company has acquired a general cargo ship to launch a new trans-Tasman service later this year.
AMSA executive director of operations Michael Drake said the seafarers were repeatedly not paid at regular intervals and two crew members had expired seafarer employment agreements.
AMSA inspected the ship in the Port of Gladstone in June after receiving a complaint regarding the underpayment of seafarers.
It is also understood a seafarer was not provided with adequate medical care after being injured.
AMSA found evidence the food and drinking water were not of appropriate quality, quantity and nutritional value for seafarers.
The Fair Work Commission hearing, previously scheduled for 8 August, was pushed back after the Maritime Union of Australia, the Australian Institute of Marine and Power Engineers and the Australian Maritime Officers Union obtained a four-month adjournment.
It is 100.62 metres in length and 16.2 metres in length.
If Svitzer was successful in terminating the agreement, proceedings in early August could have seen the company’s Australian tug workers receive a 47% pay cut.
During the inspection, AMSA found evidence the employment agreement with 21 seafarers on board the ship had not been met and the crew members were collectively owed approximately $123,000.
Proceedings that could have seen Svitzer Australia terminate its enterprise bargaining agreement with three unions representing the company’s maritime workforce have been pushed to the end of this year.
Firstly, they called on Svitzer to return to the negotiating table and “bargain in good faith” for a new enterprise agreement; secondly, they called on the federal government to change the Fair Work Act to disallow the termination of bargaining agreements; and thirdly, they called on the CEO of Svitzer to “show some leadership” and participate in bargaining with local managers.
Dale Slade, general manager of Move Logistics’ ocean business, said the new service would allow the company to offer a “true door-to-door supply chain”.
The towage company said it believes the unions sought to delay the cancellation “in the hope, and perhaps in the knowledge” that the government might change the law before the case has reached its conclusion.
NEW TRANS-TASMAN SERVICE TO LAUNCH THIS YEAR
“Australia has zero tolerance for the underpayment of crew. This type of behaviour is unethical and in contravention to the MLC,” Mr Drake
“AMSA takes the MLC seriously and actively ensures seafarers’ health and well-being is upheld on all ships in Australia.”
MUA assistant national secretary Jamie Newlyn said the unions had arrived at three priorities and demands during a virtual town hall meeting.
AMSA detained the ship for multiple breaches of the Maritime Labour Convention and the operator was directed to pay the outstanding wages and address the deficiencies.
Svitzer Australia said the company was disappointed the unions had continued to “take advantage of a broken bargaining system” to stall the process.
the dcn .com.au 9September 2022 WilliamsAbby
Move Logistics has entered an agreement to acquire a vessel, Atlas Wind (IMO 9126704). The vessel is a geared general cargo ship flagged in Malta. It was built in 1997 and has a cargo capacity of 5196 DWT tonnes.
stall Svitzer’s EBA termination process by four months AMSA TANKERLIBERIA-FLAGGEDBANS
UnionsAMOU
“It is an outrage, in this day and age, that the company are allowed to do this,” Mr Newlyn said.
“We know they want to delay the Fair Work Commission process. They are banking on the federal government to make change aimed at strengthening their position,” a Svitzer spokesperson said.
(Left to right) Paul Garret, MUA; Jamie Newlyn, MUA; and Mark Davis,
“Shipssaid.visiting Australian ports are on notice that if we find deliberate underpaying of crew they can expect penalties.
Move Logistics said its new transTasman service will call regional New Zealand ports including Bluff, Nelson, New Plymouth and Timaru. And in Australia, the company said the service would visit ports in Tasmania and “other east-coast ports in Australia”.
“New Zealand’s regional businesses make up the backbone of our economy; we are delighted to be able to provide further support for their growth and success.”
AFP Detective Inspector Luke Wilson said the ship had called ports in central and South“WeAmerica.arestill investigating where the drugs were loaded and who was planning to collect them in Australia,” DetInspector Luke Wilson said.
“The pilot conducting the ship called nearby tugs to assist and then took it to an anchorage outside the port, where it was subsequently reported to be taking water into two ballast tanks,” ATSB said.
the dcn .com.au10 September 2022 NEWS IN BRIEF
“The One Rail acquisition is aligned with Aurizon’s growth strategy and provides the platform to expand into new markets and geographies,” Aurizon managing director and CEO Andrew Harding said.
“The interception of this amount of drugs would be
“This seizure demonstrates the technical expertise of our dedicated ABF officers who made the initial detection and stopped this large shipment of cocaine from entering our Superintendentcommunity,”Yeatssaid.“WecontinuetoworkwithourlawenforcementpartnerstoensuretheAustraliancommunityiskeptsafefromtheimportationofdangerousdrugs,”shesaid.The3460-TEU Maersk
Inverness is on Maersk’s OC1 service, which calls the ports of Manzanillo, Cristobal, Cartagena, Philadelphia, Charleston and Balboa, in addition to Sydney, Melbourne Tauranga and Port Chalmers.
Aurizon’s $2.35-billion acquisition of One Rail Australia was completed on 29 July. The acquisition includes two businesses. The first comprises bulk rail haulage and general freight assets in South Australia and the Northern Territory, along with the 2200-kilometre Tarcoola-to-Darwin railway line.
ABF detained goods NSW Superintendent Joanne Yeats outlined the ABF’s role in disrupting the criminal network’s supply of drugs into Australia.
AFP investigators later seized 28 denim bags, each holding about 25 kilograms of cocaine in brick form.
business is a coal haulage operation in New South Wales and Queensland, known as East Coast Rail (ECR).
ECR is to be divested under the terms of an undertaking given to the ACCC. Aurizon has commenced a dual-track process for the divestment, to be completed via a trade sale or demerger. Until divestment, ECR will be held and operated separately to Aurizon, with an independent board and management and an independent manager approved by the ACCC.
Police uncover 700 kilograms of cocaine in container on Maersk Inverness
Police estimate the drugs are worth at least $280 million.
a significant blow to a well-resourced syndicate and prevents millions of dollars of drug profit flowing back into the syndicate to fund their lavish lifestyles or next criminal venture.”
In October 2021 Aurizon announced it had signed an agreement with Macquarie Asset Management to acquire ORA.
Forensic examination of the drugs identified different emblems on the bricks of cocaine, including the numerals “5” and “365” and the word “Netflix”.
Aurizon completes acquisition of One Rail
AckermanIanAurizon;
According to the bureau, the ship was outbound at 0140 WST on 9 April when it was reported to have had an issue with its steering due to faulty rudder indicators in its wheelhouse.
ATBULKERINVESTIGATESGROUNDINGPORTHEDLAND
The Australian Transport Safety Bureau launched an investigation into the grounding of bulk carrier Hagen Oldendorff in Port Hedland in April.
In late July and August, the ATSB obtained additional information that indicated that the ship had grounded on the western side of the channel and had moved along the edge of the channel for several hundred metres.
After obtaining further information from the port authority and the pilot company, the ATSB decided to investigate the incident.
The company said it would integrate this business into the existing Aurizon BulkThebusiness.secondORA
The officers discovered the drugs on 22 July, the day after the vessel docked at the port. The drugs were packaged in denim bags inside a shipping container described as containing wood products.
Australian Border Force officers discovered 700 kilograms of cocaine while inspecting containers on the containership Maersk Inverness at Port Botany.
Maersk Inverness at Port Botany ATSB
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Darwin Port acting CEO Peter Dummett said he was pleased to see iron ore moving through the port.
“The kayaker requested assistance as he was taking on water due to the sea conditions and was unable to pump it out as his bilge pump was broken,” AMSA said in a statement.
provide support while the rescue aircraft maintained contact with the kayaker.
“AMSA sincerely thanks the crew of the Haizhu Flourish for their assistance with this rescue,” AMSA said.
DARWIN PORT FACILITATES IRON ORE EXPORT
“Darwin Port supports the growth of trade from the Territory and is excited to see Hoa Phat’s plans to export iron ore through the port.”
The recent shipment is stage one for the Roper Valley iron ore project, which expects to see 300,000 tonnes of iron ore exported from Darwin Port this year.
Stage two of the project involves a recommencement of mining in 2023 and plans to transport the commodity to Darwin Port by rail.
“This will allow us to extend our elevated customer service offering nationally. FFS is an attractive opportunity, the businesses operating philosophy is highly aligned with Silk’s offering and will deliver operational efficiencies as well as further revenue growth,” he said.
The Australian Maritime Safety Authority in August coordinated the rescue of a kayaker in the Indian Ocean with the help of a nearby bulk carrier.
Iron ore exports are ramping up at Darwin Port with the first outbound shipment of iron ore sourced from a mine in the state’s Roper region.
Industrial manufacturing group Hoa Phat, trading as Northern Territory Iron Ore, began storing iron ore at the port in May this year. The company is the largest steel producer in Vietnam.
Melbourne-based Silk Logistics has acquired Fremantle Freight & Storage Group for $23.6 million upfront, and a further $7.8 million contingent on achieving financial milestones over the next year.
The arrival of the first 100-tonne iron ore truckload in May was followed by around 580 more truck arrivals from the mine
Silk Logistics is an ASX-listed company that specialises in port logistics.
“We believe this will be the first of many exports of iron ore for Northern Territory Iron Ore, which is great for local industry, and Northern Australia generally,” Mr Dummett said.
An ASX announcement from Silk Logistics said the acquisition would add immediate scale to Silk’s WA footprint. Further, the acquisition is expected to unlock demand from Silk’s existing blue chip customer base as well as other potential cross-selling opportunities.
“Silk also gains an exceptional team at FFS, who are the key to their success and will continue to drive significant value for FFS and the broader Silk business.”
AMSA’s Perth-based rescue aircraft Challenger was dispatched to the scene and made contact with the kayaker. AMSA said merchant shipping in the area was also diverted to
AMSA said its response centre received a distress notification at around 1900 on night of 19 August. It then established communication via satellite phone with the kayaker, who was around 630 kilometres south-east of Christmas Island.
The aircraft helped Singapore-flagged bulk carrier Haizhu Flourish locate the vessel. The ship dispatched a rescue boat just after daybreak and brought the kayaker on board.
NEWS IN BRIEF The Harmony at Darwin Port
Silk CEO Brendan Boyd said the acquisition establishes Silk’s port logistics capabilities in Perth.
DIVERTED BULK CARRIER RESCUES KAYAKER
Bulk carrier The Harmony departed the port of Darwin on 29 July carrying 57,750 tonnes of iron ore to port of Dung Quat, Vietnam.
And, FFS operates in four sites in metropolitan Perth. It provides wharf cartage, warehousing, quarantine, fumigation and other complementary portrelated services.
The kayaker had encountered bad weather on a journey from Broome to Christmas Island.
Silk Logistics acquires Fremantle Freight Storage
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“The commencement of construction remains subject to the satisfaction of certain conditions, including Viva Energy taking a final investment decision with respect to the project and the minister for planning’s assessment of the environmental effects of the project under the Environment Effects Act 1978 (Vic) that the project will have acceptable environmental outcomes enabling it to proceed.”
A similar message was later issued by Port Nelson in New Zealand, suggesting ports across NZ were collaborating to tackle noise generated from ships, namely Safeen Prime.
NZMollyGeelongPort;
GeelongPort and Viva Energy have inked an agreement for the construction of pier and berthing infrastructure for the proposed Viva Energy Gas Terminal in the Port of Geelong.
GeelongPort will build the extension to the existing Refinery Pier and license the pier to Viva Energy. Viva Energy will construct the related infrastructure including a gas pipeline and treatment facility to enable gas to be supplied into the network.
NOISY NUISANCE SHIP NIGGLES NEIGHBOURS
GeelongPort and Viva Energy sign agreement on gas import terminal
It said it had been communicating with the vessel operator to address the noise issue.
A statement from Viva Energy said the agreement reflects an important step in approval and development of the terminal.
“[The agreement] provides a clear pathway to the construction and delivery of the necessary infrastructure underpinning the project,” the company said.
Viva Energy CEO Scott Wyatt welcomed the signing of the agreement. He said it was an important milestone in the development of the gas terminal project.
Ports are reportedly working together to share information and experiences within their communities, and even working with acoustic consultants to address the issue with the shipping line.
NSW Ports’ environment manager engaged with residents to identify the source of the noise, and traced it back to Safeen Prime.
The agreement involves the construction of an extension to the existing Refinery Pier to provide an additional berth for a permanently moored floating storage and regasification unit which will be capable of receiving LNG imports from visiting vessels.
A noisy containership has left a trail of complaints across Australian and New Zealand ports and apologies to disturbed residents of port communities.
“The vessel left Port Botany on Thursday evening and noise levels immediately subsided,” NSW Ports said.
Safeen Prime is operated by ANL/CMA CGM. The ship was reportedly contracted by ANL to increase cargo capacity for New Zealand’s regional importers and exporters.
Port Nelson in NZ
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“We are working with the shipping line to rectify the issue, and a plan has been put in place.”
NSW Ports issued a statement in July apologising to residents around Port Botany who were disturbed by noise emitted from the port.
The issues appears to have brought the Australasian port community together to deal with the unwanted noise.
Viva Energy said the facility would provide a flexible and reliable supply of gas to meet South East Australia’s ongoing energy needs within the backdrop of rapidly declining local gas production.
“The additional capacity resulting from Safeen Prime will highly benefit the region’s importer and exporters; however, the consequence is a vessel that requires additional design to mitigate the noise it generates,” Port Nelson chief executive Hugh Morrison said.
The statement from Port Nelson indicates the shipping line is committed to installing a reactive silencer.
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Trade in illicit tobacco is a major issue and logistics providers can unknowingly move it through the supply chain, ABF Commander Special Investigations Greg Linsdell writes
Crime in the supply chain: illicit tobacco in Australia
Australia has one of the strongest borderrelated regulatory regimes for tobacco in the world after the implementation of a range of measures to strengthen our ability to combat the illicit tobacco trade. This includes the requirement for all duties on tobacco to be paid immediately on import; the classification of tobacco as a prohibited import (without permit); and the establishment of the ABF-led multi-agency Illicit Tobacco Taskforce (ITTF) in 2018.
The ABF uses advanced technology to screen and examine goods prior to entry into the Australian market, applying an intelligence-informed approach in identifying smuggling methodologies of criminals and in targeting prohibited goods at the border. In the 2021-22 financial year, the ABF seized more than 1 billion cigarettes and 890 tonnes of loose-leaf tobacco at the border with an estimated value of more than $2.6 billion in evaded duty.
The creation of the ITTF recognises that the trade in illicit tobacco is a global problem that is best combatted through a co-ordinated effort across all sectors including government, law enforcement, and community and industry groups. Together, these measures target major sources of illicit tobacco entering the Australian market supported by legislation that provides a maximum penalty for tobacco smuggling of 10 years’ imprisonment and/or a fine of up to five times the amount of duty evaded.
the dcn .com.au16 September 2022 ABF INDUSTRY OPINION
The ITTF are working hard every day to combat the illicit tobacco trade. We encourage those in the trade, logistics and freight sector to use your commercial expertise to help us protect the Australian community by reporting suspicious importation details and behaviours.
Illicit tobacco is a major focus for the ABF
Illicit tobacco undermines Australian government health initiatives and defrauds the Commonwealth of significant revenue, which can impact the funding of vital community programs. The Australian Border Force and other government agencies are committed to the fight against this harmful challenge to our economy and communities.
Illicit tobacco includes imported tobacco (both branded and unbranded) for which no customs duty has been paid or tobacco that has been grown, manufactured and/ or produced in Australia without an appropriate excise licence, even if the tobacco is intended for personal use.
OCGs. Because of this, it is often used to complement their syndicate’s criminal activities, magnifying the harm they inflict on our country. The market is fuelled by the greed of OCGs and the demand created by Australians looking to save money on cigarettes, often without a full appreciation of the economic and social implications.
The taskforce brings together officers from the ABF, DHA, ATO, Australian Criminal Intelligence Commission, AUSTRAC and Commonwealth Director of Public Prosecutions to form a powerful and focused enforcement capability.
ENFORCEMENT
THE ILLICIT TOBACCO TRADE supports serious organised crime groups, weakens Australia’s economic recovery and damages legitimate businesses.
Greg Linsdell, Commander Investigations,SpecialABF
Significant resources are deployed by the ABF in relation to detecting and addressing the importation of illicit tobacco into Australia, maintaining supply chain
integrity and managing the collection of duties and taxes on legitimate tobacco imported. These efforts are supported through enforcement, investigations and prosecution activities.
You know your environment. If it doesn’t seem right, report it. Don’t put yourself or your business at risk.
WHAT IS ILLICIT TOBACCO?
Every year large quantities of tobacco are illegally imported into Australia by air, sea and mail; however, illicit tobacco can also be moved throughout Australia by unsuspecting freight and logistics providers.
Suspicious activity can be reported anonymously to Border Watch. Our investigations are often initiated or supported from this form of reporting, and while we are unable to provide a result on each report given to us due to operational and legal constraints, you can be assured that we review and incorporate all information received.
THE REGULATORY REGIME
Dealing in illicit tobacco may be perceived as a relatively low-risk, highreward activity by criminal enterprises, making it attractive for established
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Today, the electronic environment we operate in limits opportunity for faceto-face interaction to build relationships with key border and biosecurity officers and to discuss policy and process issues. Centralisation of functions, closing of service counters, removal of staff contact lists and the introduction of national call centres have made it more difficult for customs brokers to contact key border and biosecurity officers and areas within the departments to address any policy and process issues.
The biosecurity system needs to be better funded to ensure more timely, comprehensive and transparent reporting to the Australian public and industry on departmental performance and biosecurity system improvements.
• improved inspection efficiency and posttreatment releases;
The diversion of resources for crisis management from other parts of the biosecurity system is not sustainable and will imperil Australia with risks of other severe pest or disease incursions, and with further trade disruptions.
It is virtually impossible to email or talk directly to a person at DAFF nowadays.
• removal of arbitrary staff caps for cost-recovered and critical biosecurity assurance and oversight functions.
Increased risks and delays for biosecurity clearance at the border are increasing costs to an already expensive supply chain, Zoran Kostadinoski writes
THE ELECTRONIC REVOLUTION IS fast changing our industry – it is also fundamentally changing the way we interact with regulatory agencies such as the Department of Agriculture, Fisheries and Forestry (DAFF).
A recently retired IFCBAA member said: “My biggest regret is that industry has lost the human contact with the regulators”.
Doing more with fewer resources is no longer viable to facilitate trade and has unfortunately resulted in reduced service levels to industry that pays fees for service.
THE SERVICES IMPERATIVE
IFCBAA advised DAFF that the future biosecurity system will require
INDUSTRY CONCERNS
ADVOCACY
The areas of most impact on IFCBAA members and importers are in the areas of assessment, inspection, treatments and client contact groups.
IFCBAA consistently states as a monopoly provider of biosecurity regulatory functions (services) DAFF has a moral obligation to provide timely, practical, cost-recovered services 24/7, 365 days a year, as the international trade logistics supply chain never sleeps. It is important to note that exporters rely on imported goods for local manufacturing or agricultural use.
In the past, regulatory agencies’ reliance on manual documentation and interface meant there was more personal, faceto-face interaction with these agencies, Naturally, industry had better access and better working relationships with officers looking after customs, trade and biosecurity matters.
• further strategic investment in both people and systems improvement, with surge capacity to handle biosecurity emergencies, while maintaining the ongoing business;
The International Forwarders and Customs Brokers Association of Australia has expressed concern that DAFF has made a conscious decision to use switchboard phone numbers and generic email addresses to either avoid accountable conversations or manage client workload demands to meet its needs ahead of business and industry needs.
Accredited customs brokers help the DAFF with biosecurity clearance and they need direct access to experienced biosecurity officers in the policy, operations and compliance divisions to address urgent issues.
What is clear from the import community and IFCBAA assessment is that the DAFF must deliver their regulatory functions in a timelyIndustrymanner.findsit
• improved internal and external co-ordination, and especially improved biosecurity resourcing and interface with those they regulate; and
DAFF is a key regulatory agency with which customs brokers and freight forwarders interact to facilitate trade at the Australian border.
the dcn .com.au18 SeptemberINDUSTRY2022OPINION
• review of client service standards to meet the needs of the fast-paced trading community;
IFCBAA has been advocating to the minister, secretary, senior executives and the inspector general of biosecurity for reform to identify short- and long-term solutions for the improvement of the end-to-end biosecurity system and service to the industry, while managing the emerging risk.
The biggest change our members would like to see implemented right now is the ability to liaise with senior DAFF biosecurity officers.
difficult to understand why the department cannot or will not deliver timely regulatory activities for which it recovers the full cost. It is clear the business sector understands what services means within their sector and the competitiveness drivers that lead to a dynamic rationalisation of those businesses that can provide timely, good quality services from those that cannot.
• improved entry assessment and processing efficiency;
The different, generically named email addresses across divisions and regions make it inefficient, and nearly impossible, for customs brokers to know whom to contact. Issues could be resolved faster if customs brokers could liaise directly with the assessment officers or team leaders.
The changing face of border regulation
This is what the IFCBAA has been advocating for a long time; however, we are now beginning to see progress on the biosecurity reform within the biosecurity cargo operations division across several initiatives.IFCBAA commends DAFF for driving these initiatives as part of the reform, because putting on additional human resources without modernising the systems may not be a viable future solution.
The diversion of resources for crisis management from other parts of the biosecurity system is not sustainable and will imperil Australia with risks of other severe pest or disease incursions, and with further trade disruptions.
A NEED FOR COLLABORATION
The industry would support better ongoing biosecurity awareness campaigns and mandatory training for accredited persons who operate as biosecurity industry participants and would support investigation of methods to differentiate between reputable suppliers and others, with differentiated levels of inspection activity then applied.
Licensed customs brokers are subject to a significantly higher degree of regulatory control as a result of changes to the customs broker licensing regime by the Department of Home Affairs under the Customs Act and the modernised Biosecurity Act
IFCBAA is of the view that, where the industry is a partner in biosecurity management, there is a stronger commitment to implementing strategies that will maintain Australia’s biosecurity status, including incorporating biosecurity measures into business processes.
The perception of the import industry as risk creators and/or risk mitigating partners requires further discussion.
the dcn .com.au 19September 2022 IFCBAA
The acts enable the regulators to impose additional conditions on a customs broker’s licence or biosecurity accreditation at any time if the regulators consider the conditions to be necessary or desirable for the protection of the revenue, border security and biosecurity risk management to ensure compliance with the acts.
THE SINGLE WINDOW
IFCBAA will continue to work with the regulatory agencies to ensure that effective border and biosecurity outcomes are delivered without unnecessary impediments to trade by facilitating efficient and effective border and biosecurity regulation across Australia’s border
modernise the biosecurity systems and is about putting a protective ring around Australia to safeguard the industry as well as the rural and regional communities that depend on it.
A single window to trade has the potential to also lower processing time and costs for traders. Digital transformation is
To operate in an electronic environment, the IFCBAA believes Australia needs a single window to trade that would create a secure digital interface between government and industry and provide a single data touch point for Australian businesses to meet all regulatory requirements of international trade.
IFCBAA understands the prime role of the regulatory agencies is to regulate, however we believe the regulators have a moral obligation to support the customs
IFCBAAcontinuum.supports the former minister for agriculture David Littleproud calling for Labor government to pick up the ball and run with the biosecurity funding strategy the coalition was in the process of developing. Funding is required to
Zoran Kostadinoski, former head of border biosecurity,and IFCBAA
The complexity of international trade and border clearance can be attributed to regulatory intervention and the involvement of various stakeholders in the supplyThischain.iswhy the trading community needs to foster a better understanding of the way the supply chain operates. This understanding will help them maximise benefits, ensure the efficient flow of containers in the international trade process, and be aware of their regulatory compliance requirements at the border.
IFCBAA believes DAFF would be able to provide the level of biosecurity services essential for businesses if it did not face staffing caps, recruitment freezes, slow recruitment processes, limited digital transformation investment and a management attitude that seems determined to maintain regulator distance and avoid becoming “service” oriented.
Import sector members generally understand that it is the collective responsibility of the supplier, the importer and the government to ensure that goods entering Australia meet biosecurity import requirements. The sector members do not see themselves as risk creators.
critical for regulatory border agencies for data analytics, border security, biosecurity risk management and border compliance, and to reward compliant importers with reduced intervention at the border.
brokers and forwarders by providing modernised border clearance systems, resources and services at the border to facilitate trade and manage risks.
Given that IFCBAA members have the knowledge, experience and expertise, our members are willing to work collaboratively with DAFF to devise more workable and effective solutions for their specific risk pathway or industry-based sector. There is a need for collaborative, ongoing partnerships between DAFF and industry to identify and discuss operational and regulatory issues and develop workable systems improvements and solutions to mitigate biosecurity risk.
No other profession – including accountants and lawyers – is subject to the number of mandatory licence obligations and conditions imposed on customs brokers.
As border and biosecurity is the shared responsibility, customs brokers require more support from regulatory agencies, as they support the border agencies to facilitate trade.
On most harbour tugs in Australia, there is a crew of three: the tug master, an engineer and a deckhand. The best crews operate as efficient self-managed teams. They largely manage, maintain and operate their tug themselves. It is not a high-profile job in the port pecking order, but it is a good job, and most tug crews sit comfortably with the working-class tag of a seaman.
the dcn .com.au20 September 2022 SundinMark ANALYSIS
What can be learned from the Portland Bay incident, and how can the risk of future marine casualties in Australia be mitigated, Australian master mariner and industry expert Tony Cousins asks
THE ESSENTIAL SKILL Seamanship – the art of doing things properly and safely at sea, looking after your ship so the ship can look after you – is a long time in the learning. Not surprisingly it takes time to learn respect for the ocean. Seamanship is not just acquired in deep sea, plenty of yachties have it, fishermen won’t last long without it, and tug crews have it in spades.
THE INCIDENT
MANY PUNDITS HAVE EXPRESSED opinions about why the Portland Bay found herself dragging anchors onto a treacherous lee shore in extreme conditions south of Sydney in early July.
Some tugs are specifically designed for sheltered waters work, but harbour tugs can also be multifunctional, incorporating
Some may point the finger at foreignflagged ships. While no ship owner is beyond reproach, the operators of the Portland Bay, Pacific Basin Shipping, are a leading international player with some 250 ships employing more than 4000 seafarers.
In the experience of the author, Pacific Basin is a professional owner and operator of a modern, well-maintained fleet.
Interestingly, Pacific Basin has also invested in the Australian towage sector, employing many Australian seafarers in the heady days prior to the GFC as the owners of PB Towage. The company was subsequently acquired by Smit Lamnalco
Saving the Portland Bay – good luck or good measure?
AMSA and the Australian Transport Safety Bureau will deliver their findings in due course, but the simple sailor’s take is, as long as there are ships putting to sea, they will continue to break down.
The saying goes that working on harbour tugs is 98% boredom and 2% way too much excitement. Tugs put themselves between big ships and danger. Huge forces are in play – helping ships in and out of port is at times a heavy contact sport. Obviously, the tugs are built for it; however, all tugs are not the same.
Portland Bay off the coast of the Royal National Park in Sydney on 4 July 2022
Considering the result, it is apparent the seamanship demonstrated by the master and crew of the Portland Bay should be lauded along with the tugs.
and in an uncanny coincidence, it was a former PB Towage tug, the SL Diamantina and her gallant crew, that first responded to save the day for the Portland Bay.
Australian master mariner and industry expert
The Portland Bay was brought safely to berth in Port Botany on day three of the incident. The system worked and, with a healthy dose of good luck and a fair degree of good measure, a catastrophe was narrowly averted.
assist vessels in danger of grounding, sinking or causing pollution. There are three tiers of emergency towage capability under the National Plan for Maritime Environmental Emergencies.
Without … sovereign capability, Australia is at risk of losing the ability to successfully respond to incidents of this nature, not just onboard the tugs, but in key roles across the ports and shipping network.TonyCousins,
knowledge that, along with seamanship comes from years in the industry.
AMSA is responsible for national arrangements for emergency towage to
It was still blowing when more help arrived the following afternoon, in the form of Svitzer Glenrock, a designated emergency towage vessel (ETV) from Newcastle under the direction of the Australian Maritime Safety Authority. Glenrock is set up for just this work, well equipped with a full complement of well drilled ocean towing crew, she soon had a second line up to the casualty and everyone could breathe a little easier.
Level 1 is a dedicated emergency towage vessel patrolling the Great Barrier Reef, Level 2, harbour tugs with ocean towing capability that normally work in port operations and Level 3, vessels of opportunity that can be directed by AMSA to assist as required.
While we cannot control the weather, a port’s capacity to respond to a marine casualty on their doorstep should not be left to Sensibly,chance.most ports in Australia regulate towage. Port authorities can specify tug numbers, specifications and service standards through a towage licence. Very fortunately, for everyone, the Port Botany towage licence calls for 24/7 manned tugs and ocean-towing capability. However, this is not the case in all Australian ports.
Without this sovereign capability, Australia is at risk of losing the ability to successfully respond to incidents of this nature, not just onboard the tugs, but in key roles across the ports and shipping network. These essential maritime skills cannot simply be imported, without the risk of critical decision-making being made without the context and in-depth local
bow and stern winches that allow them to provide berthing assistance in port as well as towing capability in open waters.
That preparation includes experienced seafarers, willing to put their personal health and safety at risk to help others, but how can you ensure you have the right people in the right place at the right time to respond to such emergencies?
The cavalry consisted of two more multipurpose harbour tugs, SL Martinique and Bullara, with the benefit of a few short hours’ preparation, heavier gear and additional hands. The Martinique took over from Diamantina and was soon joined by Bullara and together, with guidance from the incident control team ashore, they managed to inch Portland Bay clear of the coast to then anchor off Cronulla. Bullara lost her towline that evening and it was left to Martinique to hold the ship under static tow as the East Coast low persisted overnight, throwing everything at the stricken vessel and brave tug holding her off the beach.
It was just that capability and experienced, willing crews that came to the rescue of the Portland Bay
The master of the Diamantina, in communication with the shore-based salvage experts calmly assessed the situation, spoke to his crew and went to work. Despite their tug being ill-equipped for the job, they got a line up and arrested the movement of the Portland Bay towards certain peril and, notwithstanding multiple broken lines and reconnections, managed to hold her until the calvary arrived a few hours later.
BE PREPARED
But the biggest respect must go to the tug crews who risked their lives to save others. The seamanship they displayed was nothing short of incredible, a credit to themselves and their industry. It hopefully serves as a reminder that those skills must be developed and preserved while all ports need to ensure they are ready, willing and able to respond to maritime emergencies when, inevitably, they next occur.
The AMSA Emergency Towage System, which works in conjunction with
When Sydney VTS made the call to the duty tug in Port Botany, advising a ship was in distress and asked if they could help, the skipper did not hesitate. It was apparent fellow seafarers were in serious trouble and they had to try and help.
SL Diamantina and her three-man crew mobilised post-haste to find the Portland Bay practically under the cliffs with a petrified crew, some of whom were looking to abandon ship.
the dcn .com.au 21September 2022 WilsonJim
This has to be a key learning from the Portland Bay incident: that it is highly likely that a designated ETV will not reach a disabled vessel in time and the nearest port should ensure there is emergency towage capability in their tug fleet that can provide a first-strike response and buy time until help arrives. All ports should ensure they are prepared when their time comes.
state maritime authorities, is generally acknowledged as world-class, but given the size of the Australian coastline, there is no guarantee a vessel in distress will be reached by an emergency towage vessel of any description in time to prevent a disaster.
THE EMERGENCY TOWAGE SYSTEM
Well done to all concerned, particularly Engage Towage, Svitzer, United Salvage, the Port Authority of NSW and their incident control team, including the harbour master, pilots and Sydney VTS who, together with AMSA, all played their critical part in what was a well-coordinated, professional response.
The answer is a vibrant maritime industry that invests in training local seafarers at every level, from tinny to tanker in domestic, coastal and international trades. All are part of a strategic fleet.
During my time the unmanned machinery space was introduced, which meant the engine room was usually only manned during normal working hours. More sophisticated electronic systems such as automatic radar plotting aids and electronic navigation systems became more common on ships. Currently an average ship’s complement is about 15 to 20, depending on the type of vessel and trading pattern. If autonomous vessels became the norm, their complement could be anywhere between zero and five.
IN THE 1970S, WHEN I COMMENCED my seagoing career as a deck officer, a cargo ship’s complement was about 50. In the 1980s, when I finished my time at sea, this figure had halved.
LEGAL QUESTIONS
the dcn .com.au22 September 2022 suppliedImage INDUSTRY OPINION
One of the first companies to consider introducing an autonomous vessel was Norwegian fertiliser producer Yara which, together with maritime technology firm Kongsberg Gruppen, developed a fully electric and autonomous container feeder vessel (capacity of 120 TEU) to replace road transport of their product.
Automation is happening across all links in the supply chain. There is still a long way to go, as the technology and legal frameworks in which these new technologies can operate are playing catch-up. Connectivity is expensive and issues still exist. Recent cyber-attacks on shipping lines show that serious and costly disruption can easily occur. We also have to deal with the human factor; maritime and other unions have shown their reluctance to adopt automation.
The vessel, Yara Birkeland, is now undergoing trials. It moves fertiliser from Yara’s production plant to the port for export, a voyage of seven nautical miles in a Norwegian fjord. Once fully autonomous, the ship will be controlled by an operational centre which will handle emergencies and exceptions, condition monitoring, decision support, surveillance of the ship and its surroundings, and all other aspects of safety.
However, as an ex-seafarer I find it hard to imagine that a crewless vessel could safely transit the English Channel or the Straits of Malacca. Ocean crossings yes, but in congested waters, I doubt it!
THE BUSINESS CASE
During the trials, these vessels currently still have crews on board to meet legal and operational requirements; however, the intention is for these vessels to become fully autonomous with back-up provided in remote control centres which could be based anywhere.
Maritime law involves legal systems across multiple jurisdictions, ranging from international law to regional and national rules. In turn, the prospect of unmanned ships will require changes to many laws and regulations. The 1982 United Nations Convention on the Law of the Sea concerns itself with jurisdictional rules laying down states’ rights and obligations. The International Maritime Organization covers technical issues such as safety, environment, training and watch-keeping standards.
these innovations is the drive to reduce labour costs and make interactions between heavy equipment and humans safer.
Other examples are the LNG carrier Prism Courage, which recently completed a trans-Pacific voyage relying on autonomous technology; a large Japanese car ferry which completed a 240-kilometre autonomous trip in Japanese coastal waters; and the container vessel Mikage, a 95-metre-long vessel owned by Mitsui O.S.K. Lines. Mikage travelled 161 nautical miles in the Sea of Japan recently.
I was a sceptic when Patrick Terminals, my employer at the time, commenced developing driverless straddles. But, I was proven wrong, so I’m not one for predicting the future. Automation will play a major role in years to come.
Peter van Duyn as third officer in 1974
Business models involving autonomous ships need to deliver commercially viable applications, as well as engineering concepts, acceptable to both the shipping industry and the public. This will involve shipyards, shipowners, ship operators, ports and cargo owners.
Autonomous applications in the shipping and cargo handling industries are already widely used. They include driverless straddle carriers, automated stacking cranes, remote controlled ship to shore cranes and automated guided vehicles. Spurring on
While the thought of crewless ships may strike fear in the general population, one only has to realise that these days most passenger jets fly (and sometimes land) predominantly on autopilot while being guided by traffic controllers sitting in control rooms with massive amounts of data at their fingertips.
AUTONOMY IS ALREADY HERE
The issues to be overcome for autonomous shipping are largely due to public perceptions, but the business side has to stack up as well. Marine industry players will need to focus on issues such as cost, efficiency and safety gains.
Small numbers of autonomous ships are already plying waters around the world, but what is the future for this technology, Peter van Duyn asks
IT’S COMING
Autonomous vessels – pipe dream or reality?
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“But the ability of the shipping industry to collectively manage these impacts, and at the same generate profits totalling over $186 billion in 2021, at the expense of the rest of
between 10 international trade organisations has seen demands made for an immediate start to the review of the European Union’s Consortia Block Exemption Regulation for the container shippingOrganisationsindustry.backing the approach
DISRUPTIONS IN THE EU
the dcn .com.au24 September 2022 Aerial-motion INDUSTRY OPINION
In their letter to the commission, the signatories point to the revelations and recommendations of investigations conducted in the US by the Federal Maritime Commission. In May, the investigations resulted in the passing of a new Ocean Shipping Reform act, addressing many of the grievances of users
movement of goods by container shipping since the regulation was last renewed in April 2020, with many sailings being cancelled or diverted to other ports, and ports being bypassed or “skipped” at short notice.The following is an extract from a media release distributed by the peak international trade bodies:
“... shipping rates have more than quadrupled on many routes and continue to remain 3 to 4 times higher than in 2019 before the pandemic. The effects of lockdowns on the production of goods and the shifts in demand due to the effects of the Covid pandemic were certainly significant.
the supply chain, and ultimately Europe’s consumers, demonstrate that something is wrong.“The benefits of the exemptions from general competition law enjoyed by the shipping lines are not being shared fairly between the lines and the rest of the economy, and this in itself constitutes a compelling reason why the Block Exemption should be reviewed urgently.”
include the Global Shippers Forum, CLECAT, the European Shippers’ Council, FEPORT, FIATA, the European Tugowners Association, the European Barge Union, the International Union for Road-Rail Combined Transport, FIDI Global Alliance and the International Association of Movers.TheEuropean Union regulation exempts container shipping lines from many of the checks and balances of EU competition law and permits them to exchange commercially sensitive information to manage the number and size of ships deployed and the frequency and timing of sailings on trade routes around the world.
In a tale of woes similar to that experienced in Australia, European businesses and other parties in the supply chain have suffered huge disruption to the movement of goods by container shipping … with many sailings being cancelled or diverted to other ports.
Freight & Trade Alliance and the Australian Peak Shippers Association are engaging with the Global Shippers Forum and associated trade bodies to advocate for reform to international shipping competition protections, Paul Zalai writes
International developments in shipping protectionscompetition
A COLLABORATIVE APPROACH
In a tale of woes similar to that experienced in Australia, European businesses and other parties in the supply chain have suffered huge disruption to the
REGULATORY REVIEW
At the time of writing, we were waiting with eagerness in Australia for the release of the Productivity Commission’s draft report and recommendations as a part of a review of Australia’s maritime logistics systems.Itwill be fascinating to see how their findings align with the above international developments and more importantly, whether the new federal government has a genuine appetite to grasp this opportunity to lead supply chain reforms.
This should include consideration of new measures and mechanisms and should allow sufficient time for these to be considered and implemented before the expiry of the current regulation in April 2024.
promotion of a robust ocean transportation market that best serves the international maritime trade of US businesses.”
The regulation’s review will allow all interested parties to submit evidence and arguments as to how the commission should act to ensure the deep-sea container shipping market operates in a way that is fair and transparent to all parties in the maritime supply chain.
20th Maritime Art Prize & Exhibition September 30th-October 16th 2022 May 1st-August 31st 2022 ENTRIES gallery.missiontoseafarers.com.auOPEN $30,000 in Prize Money 20th Maritime Art Prize & Exhibition September 30th-October 16th 2022 May 1st-August 31st 2022 ENTRIES gallery.missiontoseafarers.com.auOPEN $30,000 in Prize Money 117 Flinders St, Docklands VIC 3008
US ANTITRUST LAWS
focussed discussion by the NITL Ocean Transportation Committee for several months, since Congressman Jim Costa introduced H.R. 6864, the Ocean Shipping Antitrust Enforcement Act , which would protect US businesses by ensuring that ocean carriers are subject fully to US antitrust laws.
Paul Zalai, director, FTA; secretariat, APSA
We understand that shipping competition reform has been under
The National Industrial Transportation League is the US peak industry body representing the nation’s import and export sector and is a fellow member alongside FTA/APSA with board representation on the Global Shippers Forum. Through this network, NITL has proven to be a strong advocate for the removal of antitrust immunity for ocean carriers.
“To be clear, the League recognizes that value can be achieved through ocean common carrier operating agreements, often referred to as “alliance” or “consortia” agreements, to the extent those agreements facilitate efficiencies for the benefit of the shipping public and bring natural economies of scale resulting in service enhancements for US shippers[.]“However, removal of antitrust immunity would not preclude ocean carrier vessel sharing or similar agreements that are pro-competitive and result in operating efficiencies.“Thecontinued protection of ocean common carriers operating under the cloak of antitrust immunity is therefore unnecessary and, we believe, detrimental to the
NITL released a formal statement incorporating the following commentary:
ALIGNING WITH INTERNATIONAL DEVELOPMENTS
and services suppliers to the container shipping lines.
WilsonJim the dcn .com.au 25September 2022
Hapag-Lloyd’s Seattle Express is already equipped to use shore power
the dcn .com.au26 September 2022 CrispDale LINER TRADES TO THE AMERICAS
If this is reading uncomfortably like last year’s review of the ANZ-North America trades, that’s because it is.
F
From NZ, lines carried 81,825 TEU northbound in 2020, comprising 51,675 TEU of drys and 29,950 TEU of reefers. In 2021 the total was 77,726 TEU (49,863 TEU dry, 27,863 TEU).
the dcn .com.au 27September 2022
Let’s start by comparing calendar year 2021 with its predecessor.In2020,total northbound volume from Australia to North America was 111,970 TEU – broken down to 79,134 TEU of dry cargo and 32,836 TEU of reefer. But for 2021 the total slipped to 108,312 TEU, of which 76,904 TEU was dry and 31,328 TEU reefer.
ive days awaiting a berth in Port Botany. Eleven days awaiting a berth in Auckland, and in Seattle. Twenty-five days awaiting a berth in Long Beach. Direct calls omitted for months at a time. Diversions to outports. Ships delayed by COVID outbreaks onboard. Schedules slipped by a week, and then another, and another. Rotations trimmed, modified, bastardised.
Into the third year of COVID-19 importers/ exporters and container lines might hope to have awakened from a bad dream but the nightmare rolls on, with only faint glimmers of better times just starting to emerge.
No Australasian trade has been harder hit by port and supply chain congestion than that with North America – carriers and shippers alike are desperately hoping recent improvements can be sustained, as Dale Crisp reports
the dcn .com.au28 September 2022
There have been falls in each category, but carriers are still reluctant to ascribe the decline to a drop in
To/from the West Coast is the two-loop service of the Pacific Coast Vessel Sharing Agreement, provided by ANL/CMA CGM (three ships, service designation PCX), Hapag-Lloyd (two, WSN) and Maersk/Hamburg Süd (four, PANZ). MSC takes slots each way. Average nominal capacity of the nine ships is 4250 TEU. The PNW loop is also scheduled to call Tahiti northbound, about every three weeks.
To/from the East Coast there are two separate services, Maersk/Hamburg Süd’s OC1/Trident with 11 ships of 3100-3630 TEU, (on which MSC and HapagLloyd also take slots) and the CMA CGM/Marfret PAD/NASP service employing 13 ships of 2259-2600 TEU. To remind, the latter service originates in Europe, crosses to the East Coast and calls in South Pacific before Australia, returning through NZ and ECNA to Europe. Both services also call Central American hubs for transhipment purposes.
trade; they feel the situation remains clouded by the loss of capacity brought on by problems that continue to blight the trade. “Market stats are rubbish,” one manager spluttered, “there are just too many diversions, delays and distortions to hang much on the figures.”
Northbound to West and East Coasts the total shipped from ANZ was 186,038 TEU compared with 193,795 TEU in 2020.
NZ exporters have chartered reefer ships such as Cool Expreso to containerovercomespaceshortages
To NZ in 2020, it was 51,480 TEU in total (44,865 TEU dry, 6,543 TEU reefer) but again, figures notable eroded to just 37,792 TEU in 2021, made up of 38,051 dry TEU and 4009 reefer TEU.
Thus, combined, northbound trade in 2021 came to 185,858 TEU while southbound was 209,778 TEU.
Despite optimism expressed in last year’s feature, there’s been little let up in the pressures that bear
LINER TRADES TO THE AMERICAS
CONTINUED PRESSURE
IN THE HANDS OF THE SAME PLAYERS
The CMA CGM Group has recently long-standingacquiredPCXship WarrnamboolANL , ensuring its retention in the service
Southbound, lines lifted a total of 230,987 TEU from North America to Australia in 2020 (210,370 dry, 29,462 reefer) but in 2021 this slipped to 171, 986 TEU (153,671 TEU dry, 18,315 TEU reefer).
January-April figures, the latest numbers available at time of writing, show downward trends continuing, with only East Coast northbound picking up.
The bi-coastal split was 95,599 TEU West Coast northbound, 90,259 TEU East Coast northbound; 97,908 TEU West Coast southbound, 111,970 East CoastCombinedsouthbound.reefer totals were 18,003 TEU to the West, with 13,819 TEU coming the other way, and 41,188 TEU to the East with 8505 TEU headed south.
CalvertAlanCrisp;Dale
FULL SHIPS, NO WINDOWS
“There are a lot of shippers scrambling for every slot and every box and we’re using every slot and every plug. But we’re still falling short.”
“Once we drop ports, we then have equipment positioning issues, and ‘friendly’ carriers don’t necessarily have the transhipment space or timely sailings to meet shipper requirements.
How many ANZ shippers realise that US ports, local truckers, depots and warehouses don’t operate 24/7 ? It’s just crazy.
“The trade manager has a full-time job just doing the scheduling,” lamented a senior executive. “We’ll have five ships on top of one another and then nothing for three weeks. It’s a massive amount of work that doesn’t really create anything proactive, it’s just problem-solving.”Anothernotesthat the VSA has tried to keep port omissions to a minimum but virtually all ports “have had a turn” at causing delays, for one reason or another.
And while he sees some heat coming out of the market and some improvement in VSA schedules – “but we’re still a fair way off pro forma” – he nevertheless expects to lose 12 voyages before the end of the year: “At least, we’re hoping for something like that!”
“What are we supposed to do?” a prominent agricultural exporter asked. “The ships are full. There’s no such thing as a window. We get the shipment to port only to be told it’s been cascaded to the next sailing, so we have to take it back again and incur all the extra costs and disruption. We miss delivery dates for our buyers. We can’t bid for business because there’s no certainty that we can get goods to market.
Ironically, the well-reported congestion in West Coast ports – at one stage there were more than 80 container ships anchored off Los Angeles/Long Beach awaiting berths – had abated at time of writing (midAugust) but partly because carriers and customers were diverting services and cargo to East Coast ports, where congestion was growing day-by-day.
Falling short has forced shippers to make significant alternative arrangements – and the acknowledged risk to the traditional carriers in the tradelane is that these could become long-term.
“There’s quite a bit of contestable cargo and we think there’s been a quite measurable shift from West to East, and now that’s getting caught up. And the landside issues remain. How many ANZ shippers realise that US ports, local truckers, depots and warehouses don’t operate 24/7? It’s just crazy. The US government is trying to push things along but when LA/LB extended their hours nobody turned up!”
down on carriers, and thus shippers, through 2021 and into mid-2022. For example, in January-April of 2021 the PCVSA managed to complete 14 voyages but this year it was just 11. Round voyages scheduled at 63 days have been running at up to 100 days.
For the East Coast carriers, the schedule-keeping challenges have been almost as – well – challenging. The PAD/NASP service has maintained some reasonable semblance of reliable weekly frequency by omitting ports, most regularly in Australia due to the absolute necessity of meeting northbound loading dates in Tauranga for the key Zespri kiwifruit contract, but also in Europe.
“It’s a unique service through multiple continents so rotations are always under stress, and it’s a big task to find and keep the right ships,” an insider said.
WillemstadMaersk is the former Spirit of Shanghai
“The lines can’t just assume we’ll cop it.” What NZ exporters have done is, individually or as groups, charter their own tonnage. Zespri fixed 66 breakbulk reefer vessels in 2021 compared to 49 the year previously. In January this year ANZCO Foods, AFFCO NZ and Silver Fern Farms chartered the reefer vessel Cool Expreso to load palletised meat in Lyttelton, New Plymouth and Tauranga for Stockton, near San Francisco, and planned a further five voyages to both West and East Coasts.
the dcn .com.au 29September 2022
Maersk has bought some Trident:employedcharteredHamburgpreviouslySüd-tonnageonOC1/
Marius is Nordamelia one of 13 vessels on the PAD/NASP service
Coast. Theoretically it’s to be deployed only when space is unavailable on the regular North American services and chartered out when not required – but NPDL has already made three East Coast voyages and one to the West Coast.
“We’re still US$3000-4000 [per TEU] short of what lines get on other Australasian routes,” a commercial manager explained, “and that’s as good a reason as any why no new entrants have shown up in the container biz on these routes. Why would you?”
¸
In late April, Zespri joined T&G Global and Bostock New Zealand to launch a breakbulk reefer liner service for fruit shipments from Nelson, Napier and Tauranga direct to Los Angeles (to non-container berths), with a transit target of just 15 days. Six voyages were pledged, including to the East Coast.
“There’s a 10-year delay before ports and terminals can catch up with the infrastructure demand,” another said, “and who knows where we’ll be then?”
Pacific Direct Line has bought a 2500TEU geared containership to carry fellow Wonderful Company business Fiji Water’s product to the East
Transhipments through Asian hubs – which have been modest in recent years due to high demand on trans-Pacific and Asia-Australia/NZ services – are beginning to creep up again, to around 12% of the market.Neptune
As for rates, they’re up, and stable – but carriers say so much of the two-way trade is under contract that less than 20% is available for the kind of bonus spot bookings can bring, even when space is so tight.
CrispDale
What are the usual carriers to do? “It’s a total dilemma,” a tired-sounding manager declared. “Even if we could get them there’s no point in throwing in ships when you can’t get a berth.”
The final word goes to a frazzled manager seeking understanding.“Peopleseethis as an old trade lane that just keeps ticking over. Ships are full, companies are making a lot of money.“Well,believe it or not it’s really hard.
the dcn .com.au30 September 2022
FULL PORTS, FULL SHIPS
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Meanwhile, some shippers are using ANZ-Pacific Islands services to the Samoas and Tonga, where they’re transhipping to the Swire-Hamburg Süd Polynesia Line service to the USWC.
LINER TRADES TO THE AMERICAS
There are a lot of shippers scrambling for every slot and every box and we’re using every slot and every plug. But we’re still falling short.
“For the people in it, this industry is tough. We’re doing our best!”
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the dcn .com.au32 SeptemberBIOSECURITY2022 & QUARANTINE
According to a spokesperson for the Department of Agriculture, this is in addition to $1.5 million committed to supplying vaccines in Indonesia and $500,000 to support industry-led assistance through Meat & Livestock Australia.
“The Australian government is exploring all practical measures that can be taken at the border to
There was further concern when foot and mouth disease fragments were discovered in a dried meat shop in Australia, with National Farmers’ Federation president Fiona Simson calling for a further ramping up of Australia’s biosecurity systems.
Minister for agriculture, fisheries and forestry Murray Watt announced the release of the National Biosecurity Strategy in August, essentially seeking closer co-operation between the Commonwealth, states and industry.
reduce the risk of FMD entering the country and will implement evidence-based measures on a case-by-case basis,” the spokesperson said.
“While our system worked by picking this up, we must throw the book at those responsible if it is found that requirements were deliberately subverted and review the relevant high-risk pathways for any other examples of non-compliance,” Ms Simson said.
The strategy identifies six priority areas, including “shared biosecurity culture, stronger partnerships, highly skilled workforce, co-ordinated preparedness, integration supported by technology, research and data and sustainable investment”.
n outbreak of foot and mouth disease in Indonesia has caused alarm in Australia, with fears it could find its way across the Arafura Sea. Foot and mouth disease is a highly contagious virus that causes lameness in cloven-hoofed animals (typically sheep, cattle and pigs) and can lead to death by starvation. An outbreak in Australia would likely force a mass cull (as famously occurred in the United Kingdom) and wreak havoc on some of our most lucrative exports.
“Strong and efficient biosecurity is even more important as we respond to emerging challenges including diseases on our doorstep including foot and mouth disease, African swine fever, lumpy skin disease and Xylella,” Mr Watt said.
A foot and mouth outbreak in Indonesia, an incursion of varroa mites and the ever-present threat of brown marmorated stink bugs highlight the biosecurity risks to Australia, David Sexton writes
He said travellers were being made aware of their responsibilities, particularly with FMD reaching Bali, an island popular among Australian tourists.
the dcn .com.au 33September 2022 SchubbeScott
Australia’s chief veterinary officer Dr Mark Schipp said even though foot and mouth virus has not been detected in Australia for 100 years they were taking the threat seriously.
The Commonwealth is committing an initial $14 million in immediate funding to manage the threat of FMD, as well as the hideous lumpy skin disease.
The Indonesian foot and mouth outbreak contributed to an outbreak of politics, with some calling, somewhat outlandishly, for a halt to the movement of people between Australia and the holiday island of Bali (something rejected by business groups).
“The affected cattle would all have to be slaughtered and I would think in a huge radius of wherever the cattle are that are contaminated,” Ms Cullen told the media.
Fortunately, efforts to contain the virus in Indonesia appear to have enjoyed some success. Officials in that country have been quoted as saying they hope to have the outbreak under control by the end of the year via the use of vaccines.
A NATIONAL PLAN
Amidst the FMD brouhaha, the Commonwealth government announced a broader plan to prevent the spread of diseases that might threaten Australia’s lucrative agricultural exports.
Brown marmorated stink bugs, the cause of much angst amongst both the maritime communities.agriculturaland
A
Anne Cullen, a cattle farmer from Coonamble in northern New South Wales gave voice to the fears of many farmers when she told national media that an outbreak would have “a terrible, terrible impact on the farming situation”.
The Australian Bureau of Agricultural and Resource Economics and Sciences has estimated a large, multistate FMD outbreak would have an estimated direct economic impact of around $80 billion over 10 years.
“We have well-developed procedures in place,” Dr Schipp“Evensaid.though the risk to Australia remains low, our border protection measures are focused on imports of goods from high-risk countries.”
“This strategy has been under development for more than a year and I’m really pleased that a new spirit of co-operation between federal, state and territory agriculture ministers has seen the strategy finalised and released so soon after the change of government,” he said.
Stink bugs, should one need a reminder, have the potential to do terrible damage to Australian agriculture and have already spread from northeast Asia to Europe and North America.
For an up-to-date perspective, DCN approached the Department of Agriculture for further comment.
the dcn .com.au34 September 2022 BIOSECURITY & QUARANTINE TownsvilleofPort
A spokesperson for the department said the number of BMSB incidents each season during the past three years had been “fairly consistent”, with a slight downward trend last season.
DAFF spokesperson
Above: a biosecurity officer at the Port of Townsville
THOSE DAMN BUGS
“Current measures requiring mandatory treatment of target risk goods from target risk countries will continue for the next BMSB season,” the spokesperson said.
In other parts of the world, they have been known to devastate hazelnut production in such places as the Caucasus nation of Georgia.
“BMSB populations are influenced by weather, with mild winters and warm summers leading to greater numbers. Increased awareness and control of this pest, including safeguarding and mandatory treatment of goods, is keeping the numbers down.”
The launch of the National Biosecurity Strategy might seem timely because, apart from FMD, there are many other hazards. The threat of an invasion by brown marmorated stink bugs, for example, remains a clear and present danger.
This is done through department representation at industry conferences and information sessions.
“The department expects the coming season to be similar to the past few years, and few if any changes made to the country list,” the spokesperson said.
The departmental spokesperson said they were working with “a range of industry representative groups”, including shipping, to manage the BMSB risk.
Right: thwarting a feral bee infestation in Queensland
In a YouTube presentation, University of Missouri entomologist Dr Kevin Rice spoke of how the bugs came to the United States in the 1990s and became a real problem in the late 2000s.
While BMSB is not established in Australia, the fear is it will sneak across our borders hidden inside shipping containers or in a piece of machinery.
“[The bug] is an extreme generalist; it feeds on hundreds of different species of host plants and causes severe economic damage,’” Dr Rice said, noting their high dispersal capacity.
BMSB populations are influenced by weather, with mild winters and warm summers leading to greater numbers. Increased awareness and control of this pest, including safeguarding and mandatory treatment of goods, is keeping the numbers down.
The peak season for stink bugs is between September and April and this correspondent recalls the bugs as a focus of conversation at an industry Christmas party some years ago.
Biosecurity Import/ Export
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Generally, the treatment requirements
“For goods shipped as break bulk, in flat rack or open top containers then the treatment must be conducted offshore prior to arrival in Australia.”
VARROA MITES
1mm
Above left: looking for unwanted marine arrivals
The Department of Agriculture spokesperson said restrictions on the movement of bees, hives, honey and equipment were now in place across New South Wales, while other states and territories were reviewing their regulatoryEradicationarrangements.activitiesare also currently underway at infested premises.
According to the BeeAware website, hives with heavy varroa mite infestations cause scattered brood, crippled and crawling honeybees, impaired flight performance, a lower rate of return to the colony after
For some perspective, DCN spoke with Vedran Muratbegovic, Wallenius Wilhelmsen Logistics vicepresident sales for Oceania.
He welcomed some provisions made to acknowledge “current market dynamics”, but with the department adding “measured flexibility” in key areas.
Confirmed cases of varroa mites in New South Wales this year caused alarm, with fears for potential damage to Australia’s honey industry.
He noted China and the United Kingdom have been added to the group of emerging risk countries and vessels going to and from these countries would be subject to random inspections.
Vedran Muratbegovic, Wallenius Wilhelmsen
Above: a close-up view of a varroa mite, a threat to both the environment and the Australian honey industry
Wallenius Wilhelmsen undertook last season were deemed successful. This reflects a significant amount of collaboration between our operations and sales teams and our customers over the past few years.
Ultimately the colony collapses, with the upshot being zero honey.
foraging, a reduced lifespan and a significantly reduced weight of worker bees.
Goods shipped in six hard sided containers can be treated either offshore or onshore however the department “strongly recommends” offshore treatment to manage the BMSB risk offshore as well as provide a faster border clearance process.
So how do things stand now?
“NSW are leading the operational response and issuing regular updates to industry and the public.”
KEEPING BUGS OUT OF MACHINERY
Left: an overseas case of lumpy skin disease, another illness authorities are determined to avoid affecting Australian livestock
the dcn .com.au36 September 2022 BIOSECURITY & QUARANTINE DAWE;Assiduousness
Ro-ro ships became the focal point for fears over brown marmorated stink bugs a few years ago, prior to COVID-19, and there is always the fear that the smelly critters will stow away in a piece of farm machinery.
Mr Muratbegovic said Wallenius Wilhelmsen Logistics believed this season’s measures (the Australian summer essentially) would be similar to previous years as the Department of Agriculture considered last year’s measures to be successful.
“With assistance from the Australian government and the bee keeping industry, NSW are now inspecting managed and feral honeybee hives and nests within 25-kilometre surveillance zones,” the spokesperson said.
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Mr Muratbegovic said operational costs had, therefore, certainly seen an increase.
“The close co-operation is particularly important when the NUFT season starts and certain exemptions to treatment requirements are in place,” Mr Muratbegovic said.
delays at the other end of their supply chain. In even worse scenarios, the customers’ products could be re-exported to the country of origin.
Wallenius Wilhelmsen has operations in 29 countries, China and the UK included.
the dcn .com.au 37September 2022
“Generally, the treatment requirements Wallenius Wilhelmsen undertook last season were deemed successful,” Mr Muratbegovic said.
“The initiative has led to a faster clearance process upon arrival, both for vessels and/or customers’ cargo.”
“But, by keeping business going and maintaining the quality levels, additional costs down the line that are caused by inefficiencies in BMSB treatment, are avoided,” he said.
BIOSECURITY DURING THE PANDEMIC Mr Muratbegovic said the pandemic had affected biosecurity as it had everything else, “particularly in terms of labour shortages at ports”.
As an example, Wallenius Wilhelmsen’s local team seeks to work closely with customers to help them meet BMSB requirements and avoid non-compliant cargo being loaded, which may result in operational
Mr Muratbegovic said the ability to successfully navigate through the BMSB season is of utmost importance to us “because of the far-reaching impact this has on our network; not only on our shipping services, but also logistics services offering”.
Wallenius Wilhelmsen deployed what was termed its “WalWil policy”, which seeks to limit the impact of BMSB within customers’ products and in their own assets such as vessels and terminals.
“Fewer workers due to absences as a result of COVID as well as strict policies designed to limit outbreaks which often resulted in lockdowns created challenges in the planning and execution,” he said.
“This also made cargo operations more challenging. We are proud to have kept operations running during this tough period and that the challenges faced were managed and did not have an impact on the quality of our operations or the treatment process. It simply prolonged stays at ports.”
“This reflects a significant amount of collaboration between our operations and sales teams and our customers over the past few years to ensure the BMSB seasonal measures are no longer a major disruption in the supply chain.”
“These sets of measures have clearly helped to mitigate the risk of disruption in the Oceania trade caused by BMSB,” Mr Muratbegovic said.
the dcn .com.au38 SeptemberWESTERN2022AUSTRALIA PortsFremantle
the dcn .com.au 39September 2022
Western Australia, from a freight standpoint, is dominated by the huge bulk export ports of the Pilbara and the main container port of Fremantle in the south west of the state. However, there are developments in the offing elsewhere in the state, Ian Ackerman writes
The state of freight
FREMANTLE TRADE
the dcn .com.au40 September 2022 WESTERN AUSTRALIA PortsFremantle
The state’s main container port at Fremantle is in the process of expanding and becoming more environmentally sustainable.
While the bulk trades are not waning in importance, there is certainly more to the sea freight task in the state.
A PORT PLAN
“This is about having fit-for-purpose port assets and supply chains that facilitate trade for the state,” he
W
Over this past financial year, total trade through the port has been slightly lower than the previous year, but it remains Accordingstrong.toFremantle Ports CEO Michael Parker, total trade came to 28.3 million tonnes – down 6.9% in 2021-22 on the previous financial year. This, he said was due to a decrease in bauxite exports, as well as a decrease in petroleum imports.
While trade volumes were down, the value of the merchandise that went through the port over the past financial year went up – from $31.3 billion in 2020-21 to $37.6 billion in 2021-22.
estern Australia is widely known for its bulk export ports – for good reason, the state is home to huge mining operations and attendant logistics infrastructure, which sends millions of tonnes of minerals overseas every year.
The port authority has this year launched a new strategic plan to guide its development into the future. The plan was announced in January and took effect in July.
want to be just a port operator or a port authority anymore – what we’re seeking to do with it is influence the supply chain beyond the port gate,” Mr Parker said.
“In response to a lot of the supply chain issues and constraints over the last couple of years, we saw this as a really pivotal time for us as Fremantle Ports to play a more active role in driving more efficient supply chains.”
Mr Parker said the strategic plan includes ambitious targets, not all of which can be delivered by Fremantle Ports alone.
“There’s a lot that we can do outside of the port gate, whether it be from a policy standpoint, whether it’s closer engagement with the importers and exporters, and understanding what their true experiences have been, and where those supply chain constraints and bottlenecks are.”
We don’t want to be just a port operator or a port authority anymore – what we’re seeking to do with it is influence the supply chain beyond the port gate.
Michael Parker, Fremantle Ports
Mr Parker told DCN the document is about Fremantle Ports expanding beyond its remit of being a port operator to being more influential across the supply
He said total container throughput was also down for the year (1.9% below the previous financial year), but full container throughput was up by 1.8%.
Port of Fremantle is Western Australia’s main container port
“Thesaid end users of these supply chains are the importers and the exporters, and they will be the judge on how well we’re doing this, and how well the port ecosystem is working together to drive efficient and reliable supply chains that they can sit there, and day in, day out, they can rely upon,” he said.
“Wechain.don’t
Mr Parker said the plan has five key areas of focus: safety; sustainability; efficiency and reliability; capacity; and engagement. And underneath those five themes, there are 12 strategic goals.
“We’ve got very aggressive targets to achieve by 2027, and those are broken down into annual milestones,” he said.
“Our trade picture here has a strong Asian focus on it, whether it be East or South East Asia – of our total trade, just under 70% comes out of Asia,” Mr Parker said.
MID WEST PORTS AUTHORITY www.midwestports.com.au MAXIMISATIONPORTPROJECTMWPA'sPortMaximisationProject(PMaxP)willincreaseefficiencies,storageandexportcapacitywithinthecurrentfootprintofMidWestPortsAuthority(MWPA)tocatertotheincreasednear-termdemandforportfacilitiesandservices.DevelopmentisinalignmentwithMWPA's2020PortMasterPlan,maximisingtheport'sopportunitiesthroughimprovementsinflexibilityandprovisionofmulti-userfacilities,settingupMWPAandtheMidWestregionforlong-termeconomicbenefit.Projectbenefits:Diversifiedcustomer&productbase;Accessfornewcommodityexporters;EconomicbenefitstoGeraldton&theMidWestregion;andImprovedinfrastructurereplacingexistingageingassets. PMaxP is a major infrastructure project in response to a significant projected throughput SUSTAINABLEPROVIDEincrease.A GATEWAY FOR TRADE & TOURISM
Pilbara Ports Authority general manager of development and trade Lyle Banks told DCN the key to the increase in trade through the ports is more efficient infrastructure.
Port Hedland Pilots has been safely guiding ships in and out of the port since it was established in 1995.
Mr Parker said this goal also extends to the electricity Fremantle Ports purchases on behalf of port tenants as well.
He said the project had strong support from Fremantle Ports’ customers as well as the state government for the investment.
A Port Hedland Pilots helicopter on a bulk carrier
CAPACITY EXPANSION
“It’s a shared teamwork mentality as to how the port operates. We have a lot of engagement outside of just piloting ships with the Pilbara Port Authority. We think we’ve got a very good relationship with each other and the other port stakeholders in it’s that teamwork focused attitude that achieves a lot of the port’s efficiencies.”
“There are things that we can work in partnership and in collaboration there – not just for us, but to help facilitate what the needs of the other supply chain participants.”
A BULK COLOSSUS AIMS FOR DIVERSIFICATION
“The shipping channel itself is approximately 20-odd miles long and it’s very narrow in comparison to a lot of shipping channels, with an average width in the narrower sections of about 180 meters,” he said.
He said front-end planning work is also going ahead for new Outer Harbour infrastructure.
the dcn .com.au42 September 2022 WESTERN AUSTRALIA PilotsHedlandPort
“Within the group, on average we’ve got about 10 years of experience of pilotage just in Port Hedland itself. So, as a group, we have over 250 years of combined knowledge of providing pilotage in Port Hedland.”
Captain Kelley said on an average day, there would be 17 vessel movements in the port with eight to nine arrivals as well as eight to nine departures.
Fremantle Ports is also looking to expand its capacity through its strategic plan. Mr Parker said the port authority is looking at what port infrastructure the state needs for the metropolitan port of the future.
“We’ve just been able to get funding approved, and we’re starting the ground-breaking work in the next probably 30 to 60 days on a new import circuit down in the Outer Harbor, at our Kwinana Bulk Terminal,” Mr Parker said.
“We can have convoys of up to eight outbound Capesize vessels sailing on a tide, and we have moved, or the port collectively has moved up to one and a half million tons of cargo on a single tide.”
“We’re looking at what bulk infrastructure we need, whether it’s just to facilitate the dry bulk trade or the bulk liquids,” he said.
Today the company employs 25 unrestricted pilots, with three in training. Over the past financial year, the company managed 6801 shipPortmovements.HedlandPilots managing director Captain Nathan Kelley told DCN as a group, they have more than 900 years of combined maritime experience.
“We’re obviously a highly specialised and skilled group of master mariners, and each pilot has got 20 to 40 years of maritime experience with 10 to 20 years of pilotage experience overall,” he said.
“To achieve the number of vessel movements on a daily basis, it’s very tight and co-ordinated scheduling and management between the Pilbara Port Authority, VTS, the tugboats and the pilots and the others in the port. Everybody’s working together as a team to achieve those efficiencies,” he said.
Pilbara Ports Authority is responsible for the biggest bulk export port in the world, Port Hedland, as well as several other ports in the area. And these big ports are handing more cargo throughput than they ever haveForbefore.the2021-22 financial year, PPA broke its annual throughput record with a total of 733.1 million tonnes of cargo over the 12 months.
“We’re looking to bring that all together with some recommendations in the next 12 to 18 months.”
In 2021-22, more than 42% of global iron ore trade and almost 7% of global LNG trade passed through PPA ports. This was achieved with 17,000 safe vessel movements, an average of 35 vessels per day.
As the world’s biggest bulk export port, Port Hedland has particular challenges for pilotage. The largest ships that call at the port can be can be up to 340 meters long and 60 meters wide. And Port Hedland consists of 19 berths, 15 of which can handle the CapesizeCaptainships.Kelley said the pilotage there is challenging, with a sevenmetre tidal range, and therefore strong tidal current.
MARINE PILOTAGE AT THE WORLD’S LARGEST BULK EXPORT PORT
He said the first expansion project is a new, $55-million development for the import of clinker at the Kwinana Bulk Terminal.
“It’s not just about us as the port authority looking to decarbonise, but I know that most companies that play in the maritime industry are looking to do the same thing,” he said.
Environmental sustainability is a major issue that nearly every link in the supply chain is attuned to. Within its strategic plan, Fremantle Ports has set out the goal of having net zero scope one and two emissions by 2027.
SUSTAINABILITY TO THE FORE AT FREO
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PPA also has plans to increase its capacity for general cargo with the addition of two new general cargo berths at Lumsden Point.
“We’ve just recently completed the review of the Port Hedland Port Development Plan, and that has flagged that there’s 660 million tonnes of iron ore exports that could go through Port Hedland alone,” he Oversaid. the calendar year 2021, Port Hedland exported 546.2 million tonnes of iron ore – 660 million tonnes would be an increase of more than 17%.
“There have also been infrastructure upgrades by some of the terminal operators.
the dcn .com.au44 September
WESTERN2022AUSTRALIA
GENERAL CARGO AT HEDLAND
PPA CEO Roger Johnston said: “This is a 41% increase to modelled capacity since the last review was undertaken in 2012 and enables a 25% increase in allocation to existing proponents.”
“It’s the benefits of our previous dredging programs where we’ve refined the channel, reduced high costs,” he said.
A bulk carrier at Port Hedland
“So, it’s really a combination of everything, but ultimately it all leads to a more efficient operation at theMrport.”Banks said the improvements in efficiency are continuing.
Michael Edwards, Gascoyne Gateway
An artist’s impression of what the Gascoyne Gateway port will look like when complete
GatewayGascoynePilots;HedlandPort
In a recent statement, Mr Johnston said the development of Lumsden Point is critical to facilitating forecast trade growth, supporting trade diversification, and creating new export pathways for the Pilbara.
Gascoyne Gateway is working towards building, and later operating, a new single-jetty, multi-user port about 10 kilometres south of the town of Exmouth.
“We’ll be providing 12 meters of water at the new berth at Dampier Cargo Wharf, and then the
“We expect to see significant growth in emerging markets, particularly with growing demand to import renewable energy infrastructure, including wind turbines and blades, as well as creating new export pathways for critical minerals and rare earths,” Mr Johnston said.
Mr Banks said PPA had received funding approval from both the state government and the Northern Australia Infrastructure Facility to undertake the dredging work for the project.
A NEW PORT PROPOSAL
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And PPA is also moving ahead with the Lumsden Point development with $78 million allocated in the state budget to enable construction of the sea walls, which Mr Banks said would enable more dredging to occur. He said this dredging program aims to enable Handymax-sized vessels to berth at the facility.
The group looking to develop the port expects it to attract a variety of vessel traffic. As the area has a developed tourism industry, cruise ships – both large and small – are expected to visit the port. The facility will
Exmouth is in a secluded corner of Western Australia. It is home to the famous Nigaloo Marine Park and other protected natural wonders. Because of these natural assets, it is a popular destination for travellers, and tourism is its main industry. However, if a proposed port development for the area goes ahead, economic diversification may bring benefits to the area.
Kimberley Ports Authority operates as a Western Australian (WA) Government Trading Enterprise. The principal role of Kimberley Ports Authority (KPA) is to facilitate trade through the commercial management of efficient, sustainable, safe, and customer-focused ports and to return a dividend to the WA Government
WE’RE HIRING!
Fremantle Ports is working to move more containers by rail rather than road
“The ultimate development of a multi-user facility and logistics hub will facilitate the export of battery metals such as lithium and copper concentrates,” he said.“These projects will support long-term growth at the port, facilitating trade diversification, import of renewable technology and export of battery metals while increasing the total volume of trade through ourFMGports.”iscurrently operating at the site, with a temporary offloading facility for its Ironbridge Project.
And looking west of Port Hedland, PPA is working on an expansion of the cargo wharf at the Port of Dampier.MrJohnston said the Port of Dampier is also set to expand, with the construction of a new multi-user wharf to support the proposed $4.3-billion Perdaman project, which is to open access to a world-wide market for urea.
extension is an approximately 200-metre-long new wharf,” he said.
ABOUT KPA
Kimberley Ports is currently seeking applications for a Regional Harbour Master from appropriately qualified mariners, interested in a position based in Broome. The Regional Harbour Master is responsible for the Ports of Broome, Wyndham, Derby, and Yampi Sound.
the dcn .com.au 45September 2022 PortsFremantle
The jetty is expected to be about 900 metres long with a depth of 13.5 metres at its deepest berth. And, Gascoyne Gateway expects around 77 non-cruise vessel calls per year when the terminal is operational.
“Because it will be a multi-user facility, it’ll be servicing all sorts of user groups and we’ve got to be very flexible on what we provide,” he said.
LOCAL BENEFITS
Mr Edwards said he expected the port to play a major part in the establishment of renewable energy facilities in the region. He said there were significant windfarm development plans for the region with thousands of windmills planned.
reliant on tourism at the moment, and he said the new port would increase the number and diversity of jobs available in the town.
Mr Edwards said Gascoyne Gateway would be the “world’s first green port”. He said in building the port from the ground up, there was an opportunity to establish the port – from concept, design, construction and into operations – from green first-principles.
“We’re creating a regenerative infrastructure delivering positive environmental and multigenerational economic outcomes to both the community, state, and the nation,” he said.
Mr Edwards said the Exmouth industrial area was chosen from ten other options as the site for the port development with its location relative to these other ports in mind.
“The business case that we pulled together doesn’t rely on all 12 to 15 revenue streams to make it viable. It relies on say three quarters of them, and that’s what makes it sustainable in the future for multigenerational economic outcomes for the environment, and for the community,” he said.
Port of Broome is a significant hub for offshore servicesvessels
“We’ll have 75 full-time local jobs at the port,” he said.
“For us, that means that we’re not reliant on a single commodity to sustain it.
Other environmental benefits the port will bring, the company said, included reducing long-haul trucks on the road, and thereby reducing road-freight emissions.
“But also, we need to move beyond conservation; conservation in its purest form is not the answer anymore.“Weneed to rehabilitate and regenerate – this is part of what we believe we need to roll out for our own social licence, but also our own moral and ethical pursuit of excellence.”
also be able to import fuel, accommodate small-scale container trade, as well as break bulk and project cargo.
“This is a massive, massive ambition and it won’t be supported trying to get it through Dampier or Geraldton because they’re so far away,” he said.
Gascoyne Gateway co-founder and managing director Michael Edwards said the plans as they were at the moment included mobile harbour cranes to service containers and break bulk cargo.
THE CARGO
Mr Edwards said while the marine infrastructure alone would provide significant habitat to sea life, the company had plans to rejuvenate the seabed grasses within the Exmouth Gulf and was planning to be carbon-negative in its operations.
the dcn .com.au46 September 2022 AuthorityPortsKimberly WESTERN AUSTRALIA
A “GREEN” PORT
Mr Edwards said diversification in the Exmouth economy was important because it was almost entirely
“If you consider the signals coming out of the Australian Government about coastal shipping, and you start talking about the necessity for Australia to be more resilient in its own shipping and capacity to move our own things, I’d say this is the right project, the right infrastructure, in the right place at the right time.”
Lyle Banks, Pilbara Ports Authority
“That’s the platform support vessels for drilling operations, primarily, in Browse Basin. And then the other vessels there were barges for Koolan Island that go to and from Derby.”
“That’s pearling, fishing and small cruise vessels,” he said. “There are a lot of cruise vessels that operate through the Kimberley, between here and Darwin, between Broome and Darwin.”
We’ve just recently completed the review of the Port Hedland Port Development Plan, and that has flagged that there’s 660 million tonnes of iron ore exports that could go through Port Hedland alone.
Additionally, the port plans to develop a solar farm and battery storage to power the facility. And also, it plans to use renewable energy to produce potable water. This water would be used in the port facility, and it will be available to the local community, and in line with the regenerative nature of this project, it would ultimately help replenish local aquifers.
The plan is for construction on the port facility to begin in mid-2023, with operations to start in 2025.
THE KIMBERLEY
The $160-million multi-user facility will include a floating wharf connected by a linkspan ramp to a causeway. The new facility is to be located south of the existing Broome wharf.
“Geraldton doesn’t do containers, for example, so you’re talking about Fremantle, which is 1300 kilometres away – starting to talk significant distances,” Mr Edwards said.
Mr Westlake said it is expected that the wharf will be 180 metres long and 55 metres wide.
“And then about 40% of our vessel traffic is oil and gas, or the Koolan Island mining operation related traffic. We had 379 oil and gas support vessels through Broome,” Mr Westlake said.
KPA acting CEO Luke Westlake told DCN 52% of the total vessel calls were small vessels.
To the north east of the state Kimberley Ports Authority runs several ports, the largest of which is the Port of OverBroome.thepast financial year, KPA handled 1662 vessel calls across its four ports. Broom handled the lion’s share with 1094 visits, Derby there was 400, in Wyndham 149, and Yampi Sound there was 19.
“This will give us more operating space in addition to the existing facility,” he said.
He said Border Force and Navy vessels, as well as private vessels are included in the small vessel numbers.
Earlier this year, TAMS Group announced it had won the contract to design and build the new Kimberley Marine Offloading Facility at Broome.
the dcn .com.au 47September 2022 STRONG REGIONAL PORTS, STRONG REGIONS. Contact us to find out more about trade opportunities. +61 9 9235 southernports.com.auenquiries@southernports.com.au8000
Mr Edwards said the company had reached the stage where it was looking for a joint-venture partner to look at the landside logistics and intermodal part of the “Earlyoperation.involvement of JV partners would be welcome – we’re Australian-owned at the moment, and we aim to deliver sovereign capability to the nation,” he said.
The
the dcn .com.au48 September 2022 ANL GREEN SHIPPING
The global shipping industry has risen to its decarbonisation task with dynamism, but the challenge has not overshadowed the reality that green shipping means more than setting environmental targets pollutionsolution
Green shipping ambitions are embodied by trials such as one recently undertaken by ANL. In April this year, the local subsidiary of the CMA CGM group completed a biofuel trial on a containership in Oceania, reportedly a first for the region.
Delegates representing departments of infrastructure, transport, regional development and communications were present at the inaugural Maritime Decarbonisation Summit Series event, along with representatives from the Department of Foreign Affairs and Trade.
Australia’s maritime industry is now faced with targets, indicators, new fuels, research, dedicated events and even an appropriate IMO World Maritime Day theme. But amid lots of discussion and genuinely good intentions, there is at least a localised
SHATTERING SILOS
“Let’s be honest … current commitments are not aligned with the 1.5 [degree Celsius] goal of the Paris Agreement,” UN Secretary-General António Guterres said at the time. “In fact, they are more consistent with warming way above 3 degrees.”
Ms Gillham said one goal as the series progresses is to understand the enabling environment needed to bridge a large cost gap, as even intermediate decarbonisation measures are more expensive than conventional fuels.
Earlier that month, the International Chamber of Shipping had submitted plans to the IMO detailing “urgent measures” to help the industry achieve netzero carbon emissions by 2050. Shipping companies have chosen to align their individual targets with those set for them or take matters into their own hands. Maersk announced in January this year it had brought its own target forward by a decade, to reach net-zero emissions by 2040.
Maritime Industry Australia (MIAL) in April this year launched a decarbonisation series built around information exchange, but with the goal of pushing participants beyond the discussion phase and bringing in support from outside of the maritime sphere.
understanding that it isn’t enough to come together and talk about it.
Ms Gillham said the collaboration seen at the event had the effect of “short circuiting” companies’ and organisations’ independent projects.
“There’s already a lot of investment coming down the pipeline, and if we have a stable policy environment that will just accelerate, and that’s what we really need as an industry.”
“Biofuels just aren’t economic at the moment for most businesses, so we need to look at how to bridge that gap and create the enabling environment to encourage investment in Australia to develop the lower and zero carbon options,” she said.
But environmental goals are coming to fruition in Australia, as visible achievements this industry can be proud of. Our nation’s shipping sector is working toward a greener future together.
APL Houston was the subject of biofuelANL’strial
the dcn .com.au 49September 2022
I
MIAL chief executive officer Angela Gillham told DCN she believes the decarbonisation challenge in Australia is “particularly vexed” because the nation doesn’t have policy frameworks in place to assist the transition. The summit brought together stakeholders prepared to build the framework.
“I personally felt like there was a lot of activity happening, but it was all happening in silos. There was a need to co-ordinate effort and to provide an opportunity for those people who are investing and working hard on the technical solutions to come together and network and collaborate.”
The Paris Agreement, the legally binding international treaty on climate change, entered into force in 2016 with the goal of limiting global warming to well below 2 degrees Celsius, preferably to 1.5 degrees Celsius. The United Nations criticised the International Maritime Organization in October last year for its target to cut emissions by 50% by 2050 (compared to those recorded in 2008).
BIOFUEL TRIALS
t seems nothing can dominate a 2022 conference panel or industry luncheon like decarbonisation can. Entire gatherings are structured around maritime decarbonisation – and rightfully so. The weight of the environmental challenge we face is rivalled only by the pressure to solve it.
THE FLIP SIDE
“The ANL biofuel trial occurred on the APL Houston and is an important part of our sustainability approach as it highlighted one of the ways we can directly decarbonise shipping in this region,” Mr Walden said.
The trial voyage was undertaken on ANL’s AAX1 service, which is a 42-day rotation departing from Brisbane and heading to South-East Asia before returning to Brisbane via the west coast of Australia.
“ANL is passionate about sustainability and about what alternative fuels can deliver in the fight against climate change however we were not alone in this motivation,” he said.
“It was an honour for ANL to be listed in the AFR Sustainability Leaders List alongside other influential players in the region,” Mr Walden said.
“I’m very proud of this accolade and glad to see shipping gaining profile as a responsible, forward focused, sustainable industry. Moving forward, knowing the advantages of this biofuel trial ANL is deploying more biofuel powered sailings on the AAX1 service.”
The ambition is encouraging, but recent discussions at MIAL’s Maritime Decarbonisation Summit identified a paradoxical challenge, that “the maritime energy transition must not compromise human safety and the protection of the environment.”
The message was one of three overarching themes at the inaugural series event. It may be perceived
The Queensland government’s Biofutures research unit and Woolworths Group company Primary Connect were also engaged in the outset of the project. The APL Houston trial secured ANL’s position among the logistics and transport “sustainability leaders” listed by the Australian Financial Review and the Boston Consulting Group.
This voyage was significant in that it was the first containerised shipping voyage to be powered by a biofuel blend in Australia and more broadly the Oceania region.
Mr Walden said commitments from Australia, Singapore, New Zealand and more than 20 other countries at the COP26 climate summit last year set a strong level collaboration between governments ports, terminals and carriers. He said ANL is in an ideal position to support green corridors, and in turn, continue the development of Oceania’s sustainable shipping network.
“Alternative energy and the embrace of new vessel design are key for us, but this is not a puzzle for carriers alone; terminals and ports have an important role to play as well, and we are well placed in this region to make a big difference in the next 12 months.”
“This voyage was significant in that it was the first containerised shipping voyage to be powered by a biofuel blend in Australia and more broadly the Oceania region,” Mr Walden said.
“The next 12 months will be key to scope the levers we must invest in to further decarbonise shipping both on water and on land,” Mr Walden said.
ANL managing director Shane Walden told DCN the CMA CGM group has committed to reaching net zero carbon emissions by 2050. The group currently operates 30 e-methane-ready vessels and plans to expand that fleet to 77 vessels by the end of 2026. He said ANL is in an opportune position to back the fight against climate change in the region.
APL Houston
ANL
Shane Walden, ANL
GREEN CORRIDORS
It appears the global shipping industry has not been crippled by the pressure to decarbonise but has risen to meet it with a strong and infectious drive.
The momentum building behind biofuel opportunities is shouldered by the emerging vision of green shipping corridors. So-called “green corridors” are (or will be) dedicated trade routes that support zero-emissions shipping. Green corridors are explored in greater depth on pages 54 and 55.
Biofueloperationsbunkeringon
the dcn .com.au50 September 2022 GREEN SHIPPING
TARGETING DEFICIENCIES
measures include better securing cargo to prevent loss of containers overboard.
“Of AMSA’s port state control inspections during 2020-21, 8.2% of detentions identified deficiencies related to pollution which were considered serious breaches with immediate consequences for the marine environment,” AMSA’s spokesperson said.
An important aspect of AMSA’s work in environmental protection is industry engagement. According to MIAL, AMSA was present at the Maritime Decarbonisation Summit in April. The authority’s spokesperson said dialogue with stakeholders at national levels as well as local and regional levels are important for a country as large and diverse as Australia.
The shipping industry’s environmental responsibilities extend beyond decarbonisation. Seaborne trade, by nature, places ships in vulnerable marine environments where pollution kills. The International Convention for the Prevention of Pollution from Ships (MARPOL) is the primary international convention
(Left to right) MacMillan,Crowther;AndrewAMOGEnergyColquhoun,LachlanMANSolutions;CherieHolland,Consulting;Tuite,IncatTimHolt,DNVandAdrianWoodsideatMaritimeDecarbonisationSummit
Angela Gillham, MIAL
At the time of writing, AMSA is gathering stakeholder feedback on proposed updates to Marine
On a national level, the Australian Maritime Safety Authority is responsible for implementing IMO policies and conventions to prevent pollution incidents. An AMSA spokesperson told DCN those preventative
addressing oil pollution, garbage, sewerage, air pollution and transport of dangerous chemicals at sea. Approaching 50 years since the adoption of MARPOL, the IMO has built its 2023 World Maritime Theme around the convention.
“Marine pollution is most effectively addressed through prevention and a large portion of AMSA’s mission is to work with the maritime sector to ensure we protect and preserve our marine environment, flora and fauna,” AMSA’s spokesperson said.
Ms Gillham said safety issues and environmental impact are intrinsically linked, and a safe ship typically has a lower environmental impact.
“As we develop new types of fuels, we need to be sure that all the systems and processes and training around handling them as bunker fuels are considered and well developed, because we don’t want to solve the decarbonisation issue and create a safety issue.”
MAINTAINING DIALOGUE
the dcn .com.au52 September 2022 GREEN SHIPPING MIAL
“However, in cases of pollution incidents, AMSA’s maritime casualty and pollution response capabilities are well honed and have helped avoid adverse impacts on various sensitive marine and coastal areas over the years.”AMSA’s port state control inspection regime for ships entering Australian waters focuses on deficiencies articulated in MARPOL. The inspections also work around several other conventions such as the International Convention for the Safety of Life at Sea and the Maritime Labour Convention 2006.
We don’t want to solve the decarbonisation issue and create a safety issue.
“It’s always important as a high-risk industry that we are cognizant for the potential safety issues with everything we do,” she said.
Ms Gillham noted that some new fuels, such as ammonia, are traded as a cargo but lack sufficient testing as bunker fuels. She said there are some concerns around how ammonia will impact marine environments in the catastrophic event of a fuel spill.
as suggesting ambitious targets and rapid progress, though necessary, are leaving environmental risk factors overlooked, potentially having a reverse effect.
“Some examples of these deficiencies include defective oily water separator discharge arrangements and procedures allowing oil to be discharged overboard into the ocean if not detected; garbage disposal not in compliance with MARPOL requirements, such as dumping waste too close to shore or in sensitive areas; [and] uncontrolled release of greenhouse gases emitted by onboard systems, causing damage to the atmosphere.”
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They signed a letter of intent in April to develop green corridors between Australia and East Asia, the obvious additional routes being South Korea, which bought US$4.35 billion worth of iron ore from Australia in 2020, and Taiwan (US$2.12 billion in 2021).
senior shipping executive told DCN, “The entire industry is behind this effort to reduce or completely decarbonise. It’s go green or go home.”
Shippers aren’t ruling out China, which continues to buy most of Australia’s iron ore (US$86 billion worth in 2021), as a potential collaborator on a green corridor with Australia.
The Next Wave predicts that “without a concerted, collective effort” emissions could rise by as much as 50% by 2050. The paper suggests joint ventures between miners, vessel operators and fuel producers, or new mechanisms allowing the costs and benefits of zero-emission fuel use to be transferred between fuel purchasers and other participants in the market, to mobilise demand for green shipping on the corridor.
“As a leading charterer, we recognise we have an important role to play in the decarbonisation of our own shipping and the broader industry. This collaboration is another important step towards accelerating the delivery of our climate commitments on shipping, as part of Rio Tinto’s broader goal of net zero emissions by 2050 and a 50% reduction by 2030.”
COP26 duly acknowledged this “call” in its so-called Clydebank Declaration signed by 24 governments, including Australia. The group behind the call to action included some of the world’s biggest carriers, charterers, ship builders and ports.
“A CONCERTED, COLLECTIVE EFFORT”
GREEN CORRIDORS AND THE RACE TO ZERO
Says Laure Baratgin, Rio Tinto’s Singapore-based head of commercial operations, “The green corridor collaboration is intended to lay some of the groundwork for real world implementation of the Australia-Asia green corridor, such as considerations on fuel offtake and bunkering solution development, in the near-term.
Green corridors are being considered as routes to decarbonisation while the maritime sector pushes to meet its environmental targets, Mark Westfield writes
The group declared at the time of the letter of intent, “We hope that our green corridor structure can help reduce some
The maritime industry’s push to develop the Australia-Japan iron ore trade route as a low-emissions green corridor is evolving into an important geo-political alliance between the two countries and their commercial shipping interests. Alliances of shipping companies, ship builders, charterers and ports, under the banner of the Getting to Zero coalition, are working to the target of zero emissions for the industry by 2050.
The real drivers of the mounting efforts in the industry are the private commercial players, not governments, although governments know they will inevitably be drawn into the campaign.
The paper The Next Wave had input from more than 30 companies involved across the shipping value chain with 12 of them, including Rio Tinto, formally endorsing the report.
the dcn .com.au54 September 2022 suppliedImage GREEN SHIPPING
The shipping industry globally accounts for 3% of all carbon emissions, three times as much as Australia, and the equivalent of the world’s fourth largest economy, Germany.
The Getting to Zero coalition’s follow-up paper The Next Wave: Green Corridors, identified the Australia-Japan iron ore trade and the Asia-Europe container trade, the world’s busiest, as the two most ideal deep-sea routes for development into green corridors.
In the meantime, the private sector shipping and charterer groups know that if they don’t take the initiative and be seen to be making progress on reducing emissions, then the United Nations and poll-driven governments will step in and impose an agenda on the industry. One
REAL-WORLD IMPLEMENTATION
“While we will not be building a vessel as part of this letter of intent, we expect this project to be an enabler in supporting Rio Tinto’s commitment to introduce net-zero emission vessels in our portfolio by 2030.
The effort to decarbonise the US$4.4 billion Australia-Japan iron ore trade as outlined by Getting to Zero has been broadened to include other East Asian routes by four major players in the region’s iron ore trade. These are resource exporters BHP and Rio Tinto, and carriers Oldendorff of Germany and Greece-based bulk carrier Star Bulk Corp, all four being members of Getting to Zero.
The rising mood amongst the industry’s multitudinous players was perhaps first articulated in 2020 in a report by the Getting to Zero coalition (a partnership between the Global Maritime Forum and the World Economic Forum), The First Wave: A Blueprint for ZeroEmission Shipping. This was followed by a call to action by 200 industry leaders ahead of last November’s COP26 climate summit in Glasgow to decarbonise the sector by 2050.
The industry has avoided the sort of criticism that Australia has suffered from environmental groups and is moving very publicly to reduce its carbon output. Its objectives are both ambitious and complex, given the industry composed of hundreds of carriers and their charterer customers use deep-sea trading routes between dozens of large and complex economies and their governments.
Germany’s family-owned specialist dry bulk carrier Oldendorff will be looking at carbon-free fuels for its new vessels, with the nitrogen-hydrogen compound ammonia (NH3) firming as the most likely.
“We work with industry to ensure they are aware of and can comply with MARPOL regulations relating to both storage and disposal of equipment and waste and will continue to work in the IMO to address this pollution,” the spokesperson said.
“There’s a lot for this industry to be proud of in terms of its level of collaboration.”
THE COST FACTOR
Customers normally pay the carrier’s fuel bills via a surcharge, and this on top of sharply rising shipping costs (and profits for the carriers) over the last two years will prompt the customers to expect carriers to share these additional fuel costs during the transition to lower-priced “green” fuels.
“Furthermore, we continue to run a regionwide volunteering program called ‘The volunTEUs’ as a way to give back to local community – we see this as an essential way for our team members to embrace ESG on a personal level and build on sustainability as a part of our cultural fabric.”
Ms Gillham encouraged Australia’s maritime sector to stay on top of the research underway to keep companies and organisations on the same page, and to move forward together without duplicating efforts.
“The updates will give effect to the new Annex VI requirements to reduce the carbon intensity of international shipping by 40% by 2030, compared to 2008 levels,” AMSA said. “It is expected that this marine order will come into effect from 1 January 2023.”AMSA’s spokesperson also raised the issue of shipsourced plastic litter. It is still entering the ocean, although it has been banned under the MARPOL convention for many years.
the dcn .com.au 55September 2022
The Next Wave estimated an additional total annual cost of ownership of US$6 million to US$8 million (or a 50 to 65% incremental increase) per vessel compared with one powered by fossil fuels.
The Next Wave also hints at the need for governments to grant subsidies to the carriers using ammonia-fuelled ships to “lower the costs and risks for private stakeholders in both countries”. Companies active in Australia such as Fortescue Metals Group have announced plans to build 29 gigawatts of hydrogen electrolyser capacity by Combined2030.with a transparent stakeholder environment and the strong political collaboration between Australia and Japan, the path seems clear for the collaboration on incentives and regulations to enable zero-emission shipping from both the supply and demand sides.
of the complex variables and risks that otherwise delay the investment and commitments required to advance ammonia as a fuel for the future for shipping.”
THE TASK AHEAD
Although ammonia favoured by the study and the industry generally is in widespread production now, the Next Wave study reflecting the mood of the industry declares the ammonia of the future has to be “green”, that is, produced by renewable Importantlyenergy.–andthis is where the main difficulty in implementing green corridors lies – is that carbon-zero fuels such as green ammonia are substantially more expensive than conventional fuels. Yet The Next Wave warns they “need to be deployed at scale to unlock cost reductions and be adopted at a faster pace in the coming decade”.
This is where governments become involved, and in this case the support is coming from no lesser group than the four nations of the Quad alliance (comprising the US, Japan, India and Australia) which at its first energy meeting In July agreed “to promote technological development for clean-burning hydrogen and ammonia as fuels”.
Order 97 (Marine pollution prevention—air pollution), which deals with MARPOL regulations on air pollution from ships.
“Over the next 18 months we will tighten regulations on anti-fouling substances and garbage management, as well as introduce new requirements for the management of biofouling.”
BEYOND PLEDGES
ANL is among the local companies which have declared their support for conservation and protection of marine biodiversity in Oceania.
“It’s our belief that doing what we can today is as important to setting up for tomorrow, particularly where there is such biodiversity to protect here,” Mr Walden
“[Oursaid.sustainability strategy] has given rise to a number of initiatives in Oceania including the Reef Recovery Program, Turtle Preservation project and, of course, the ANL biofuel trial.
Ms Gillham said the industry still has a lot to learn about decarbonisation, but she believes it has healthy understanding of how far it has to go, and there is enthusiasm to get there.
The industry is making all the right early moves. It needs now to convert the pledges, feasibility studies, and letters of intent into action. That action will consist of numerous demandmanagement levers, such as curtailing traffic volumes, along with improvements in logistics, and upgrading ship design and propulsion systems in new fleets of zero-carbon vessels.
“While we don’t know everything, there’s a real understanding of that, and that’s really important. People acknowledge that there is a lot of work to do.”
“On a positive note, it seems that major oil spill incidents are trending down, and the standard of ships’ pollution prevention equipment and practices, such as sewage treatment plants and garbage management plans, are continuing to improve.
paper into the “Nuisance Costs of Tariffs” (Nuisance Costs Research).
Businesses and consumers are bearing the brunt of “obsolete” tariffs that will cost more
PC research casts light on our trade performance
the dcn .com.au56 September 2022 DayzGolden TRADE LAW
THE PRODUCTIVITY COMMISSION as the successor to the Industry Assistance Commission has a long history of “providing independent research and advice to government on economic, social and environmental issues affecting the welfare of Australians”. That research is conducted both in response to referrals from government and initiated on its own account and has included several topics directly relevant to industry including:
• regular reviews of the level of government assistance to trade and industry
• an inquiry into “Collection Models for GST on Low Value Imported Goods”
Trade law expert Andrew Hudson takes a look at recent reports from the Productivity Commission on Australia’s trade performance
• reviews of the benefits of our free-trade agreements (which the PC prefers to call preferential trade agreements)
On Friday, 5 August 2022, the PC released its results of two major studies which assessed the level of government assistance to trade and industry for 2020-21 (Trade Assistance Review) and a separate, although related research
The work of the PC is based heavily on its own gathering of relevant economic data supplemented by submissions by interested parties and public hearings. I have been involved in making submissions and appearing before the PC to give evidence and answer questions. Importantly, the work of the PC does not address political considerations and governments are not obliged to adopt the outcomes of the PC’s work and recommendations. In particular, the PC has previously found that our Anti-Dumping and Countervailing System is being used increasingly even though the outcomes are negative in pure economic terms.
Of these two studies the Nuisance Costs Research is probably of more immediate interest to industry, as it reveals the estimated costs of recovering “nuisance tariffs” both to government and to the private sector, noting that the costs to the private sector include the payment of the tariffs by the importers, the compliance costs to industry from complying with related regulation and the costs passed on to consumers. This includes the costs to secure preference under Australia’s freetrade agreements now in place and likely to come into effect soon.
• an inquiry into our Anti-Dumping and Countervailing System (2009) followed by a research paper into developments in Anti-Dumping Arrangements
NUISANCE COSTS RESEARCH
• a review into Australia’s supply chain stability; and
The headline summary from an article on the Nuisance Costs Research in the Sydney Morning Herald from 5 August 2022 is that:
• Calls to reform the WTO dispute settlement process continue, as the Appellate Body remains incapacitated. An interim appeals body is operational but has yet to hear any appeals.
For example, in Australia, errors, omissions and misstatements in reports to the ABF can attract penalties and infringement notices even if there is no underpayment of duty or no overpayment of refunds of customs duty or duty drawbacks.
Moresettings.tocome in the next print edition of the Daily Cargo News, by which time the PC may have issued its first draft report as part of its review of the Australian Maritime Logistics System.
Primary production and manufacturing industries received the most assistance (INDUSTRY ASSISTANCE) relative to their contribution (VALUE ADDED) to the economy.
• With the impending implementation of
Chapter 3 of the review addresses “Trade Policy Developments” and summarises them as:
to collect than they raise as Australia strikes new free trade deals, a review of the system hasProductivityfound.
products subject to measures has increased since 2010 and in 2021, there were 67 sets of measures in place and six new investigations initiated, contrasting to the world median of measures (20 in 2021) which mostly declined in the past decade. The Review did not address related issues such as exemption inquiries and inquiries to determine final duty paid by some importers which take significant additional time. The PC then made the further observation that reductions in activity, employment and investment in industries affected by measures can outweigh any benefits accrued to recipient industries. This does not consider the significant compliance costs to deal with theItmeasures.willbeinteresting to see how the (new) federal government responds to the research and conclusions of the PC, which are in no way binding on the government. Those are political decisions and earlier research by the PC
Andrew Hudson Partner, Rigby Cooke Lawyers
Of course, the Nuisance Costs Research goes into significantly more detail, describing the associated costs of the nuisance tariffs including the costs of seeking Tariff Concession Orders (to eliminate the payment of the tariffs) and the legal costs in the Administrative Appeals Tribunal (AAT) and Federal and High Courts (including the Pharm-A-Care decision of the High Court). However, that part the Nuisance Costs Research does not refer to is the costs of recent Full Federal Court decisions in Alstom and Hurley and the likely review of those decisions in the AAT and High Court respectively. The Nuisance Costs Research also provides detail on the numbers of Australian Border Force employees involved in the administration of the system and the amounts paid to those employees.
Commission research that puts pressure on the federal government to consider axing all remaining tariffs found the broad economic cost of collecting $1 in tariffs is likely to climb from between 57¢ and $1.59 today to almost $5.
the Australia-UK Free Trade Agreement and with negotiations progressing with the European Union and India, preferential trade agreements (PTAs) could soon cover a large majority of Australia’s imports. This raises questions about the role of tariffs, given the costs involved with utilising PTAs.
finding that FTAs and the anti-dumping and countervailing regimes did not add real economic benefits to the economy compared to their associated costs did not lead to fundamental changes to those areas. The political rhetoric of the new federal government has been to increase the amount of goods manufactured in Australia – which may provide political coverage for retention of the current policy
The PC does make the interesting observations that compliance costs could also be reduced by removing Rules of Origin from Australia’s PTAs (which is unlikely to happen) and by streamlining the interface between businesses and the tariff system (perhaps through the proposed Simplified Trade System). Further, the PC suggests that the reported leverage in FTA negotiations from reductions in our tariffs (often cited as grounds to keep those tariffs) is likely to be outweighed by the leverage to be gained by liberalising our barriers to the provision of services into Australia and reducing barriers to foreign investment. Again, this supports significant tariff reform.
The wider Trade Assistance Review is another in a succession of such reviews, which conclude that
the dcn .com.au 57September 2022 AckermanIan
Some of the other findings are that excluding the $90 billion of assistance related to the COVID-19 pandemic, $16 billion was received by industry assistance in 2020-2021 being an increase of $4 billion from that provided in 2019-20.
• Australia’s trade in goods and services began to recover in 2020-21 relative to 2019-20, though exports of services remained suppressed due to ongoing restrictions on international travel.
The work of the PC does not address political considerations and governments are not obliged to adopt the outcomes of the PC’s work and recommendations.
TRADE ASSISTANCE REVIEW
The review (at paragraph 3.5) then reviews anti-dumping and countervailing activity and found that the number of
• Internationally, carbon border tariffs (CBTs) have gained renewed attention and are being considered by some of Australia’s trading partners.
The chapter then goes into detail on these issues including an objective review of the future of Australia’s trade agreements and tariffs stating (at paragraph 3.4) that the argument for unilateral tariff removal has strengthened as the coverage of PTAs has grown and that it is “increasingly clear” that there would be considerable gains for unilaterally adopting a reform schedule to reduce import tariffs to zero, even though that would not reduce compliance costs to zero.
ACCORDING TO A REPORT FROM Container xChange, Demurrage & Detention: Annual Benchmark 2022, there was a major spike in demurrage and detention charges in 2021.
EXPERT OPINIONS
Ports have been clogged up with containers, causing delays that are no fault of the shipper, and shipping lines, which are raking in record profits, have increased detention and demurrage charges
the dcn .com.au58 September 2022
ABCDstock INDUSTRY ANALYTICS
A TRAFFIC JAM Container xChange co-founder and CEO Christian Roeloffs said: “We’ve always compared the flow of containers situation to a traffic jam. If there’s an accident and a traffic jam, even if the accident is cleared up it still takes a very, very long time for traffic to flow again … it’s not the case that you just resolve the blockage and then everything flows.”
Container xChange, which is a technology company that sells a container trading and leasing system, said it used publicly available data from 60 ports to gather more than 20,000 data points. The report only looked at standard containers: 20-foot dry containers, 40-foot dry containers and 40-foot high cube containers. And it looked at the accumulative charge for both import and export containers after two weeks.
The report says the average detention and demurrage charge for a standard container was US$585 in 2020, US$868 in 2021 and US$664 in 2022.
they’ve got a lot in their warehouse that they need to move, and demand is falling”.
Mr Griffiths said he the market is snarled up and it is going to take significant effort to fix it.
“I firmly believe if nobody wants to ship anything on a container in the next six months, we still wouldn’t fix the issues that we’ve got in the market at this point,” he said.
A look demurrageat and detention
Congested supply chains added to the mounting charges which in return made
And Drewry Supply Chain Advisors head of advisory Chantal McRoberts said: “There is massive inventory levels that have been building up, if you speak to shippers,
Discussing the scenario behind the hefty demurrage and detention charges, Mr Griffiths said: “Many, many carriers and operators have introduced strict free time parameters, and as a result these charges for delays have been levied against the shippers. They’ve become a significant cost centre for shippers. Previously, this was a transient cost, people didn’t really look at it. People didn’t pay that much attention to demurrage and detention. But now it has become a cause of concern”.
The report notes that from 2021 to 2022, many ports saw a decline in such charges, which degreased by 26% over the period.
S&P Global Commodity Insights editor, global container freight George Griffiths during the discussion said: “The shipping industry is going to see the freight rates stay flat for the rest of the year; however, it could see a little variance but might not fall off the cliff to the extent that we saw it rise when it did in 2020 and 2021.”
When releasing the report in July, Container xChange convened a panel of speakers from Drewry, S&P Global to discuss the impact of charges on shippers worldwide amidst the changing dynamics of demand and supply for containers on a globalForecastsscale. shared by the experts on the panel indicated a potential further flattening of demand into the peak season. However, they also emphasised that the impact of the disruptions will take time to wither irrespective of containers moving at a greater or slower pace into the coming holiday season.
According to the report, most major ports in the world saw an increase of demurrage and detention charges, with an average increase of 39% for standard containers from 2020 to 2021.
it harder to both extract containers from terminals and return empty equipment.
Mr Griffiths said: “In the US, for instance, carriers have been really incentivised to keep a tight leash on their equipment due to high freight costs, meet demand, and log jammed into modal networks; within their purview, they’ve taken the cost of the containers on board.
“They need to have their equipment back to keep the flow going and be able to reposition the containers.
LOCATION AVERAGE 1 New York 3182 2 Long Beach 2730 3 Los Angeles 2673 4 Oakland 2325 5 Savannah 2210 6 Taiwan 1349 7 Hong Kong 1062 8 Jakata 973 9 Bremenhaven 841 10 Hamburg 833 TOP 10 2022 HIGHEST D&D CHARGES Average charge after 14 days for standard container in USD Source: Demurrage & Detention: Annual Benchmark 2022, Container xChange
“And I think that’s an important nuance in the container market. So that’s why we’re starting to see these costs increase on detention and demurrage, it is because these charges are designed in such a way that it compensates carriers for the use of their containers.”
in detention and demurrage charges. If there’s a shortage of drivers, a shortage of physical people and vehicles to get the containers into the ports and out of the ports, it consequently increases the demurrage and detention charges.
the dcn .com.au 59September 2022 300025002000150010005000 202220212020 COMBINED DEMURRAGE AND DETENTION CHARGES ACROSS SHIPPING LINES AT DAY 14 (2020-2022) BelgiumAntwerp, KoreaSouthBusan, ChinaDalian, ChinaGuanghzou, GermanyHamburg, ChinaKong,Hong USBeach,Long (UAE)AliJebel USAngeles,Los ChinaNingbo, MalaysiaKelang,Port ChinaQingdao, NetherlandsRotterdam, ChinaShanghai, SingaporeSingapore, ChinaTianjing, ChinaXiamen, USDinchangeofAverage Time period: May of each year. Containers; 20DC, 400DC &40HC. Source: Demurrage & Detention: Annual Benchmark 2022, Container xChange
“These physical blockages had pushed up charges for shippers – and while the situation was easing, a full clearance of backlogs on the discharge front would not come until next year,” Drewry’s Ms McRoberts said.
Going further into an explanation of what she views to be the root of rising demurrage and detention charges, Ms McRoberts said: “It’s clear that supply chain disruptions are driving an increase
Widely considered the country’s economic backbone, the Panama Canal is a vital conduit for maritime trade. Cutting through the isthmus of Central America to connect the Pacific and Atlantic oceans, the canal facilitated more than 13,300 vessel transits in 2021.
LNG SHIPMENTS
The Caribbean Sea
PANAMA CITY CristobalManzanilloColón
Ports of Manzanillo and Cristobal on Panama’s Caribbean coast last year
THE MARITIME ENVIRONMENT
Panama is the largest flag state in the world, and its fleet is growing. The latest data from IHS Markit (reported by the Panama Maritime Authority) indicates there were 8587 vessels sailing under the flag of Panama at the end of July this year, amounting to 239.4 million gross tonnes. The most recent gross registered tonnage figures marked a 9.6% increase on those recorded in July 2019.
Panama
MARITIME CHALLENGES
Panama is Australia’s largest trading partner in Central America, according to the Department of Foreign Affairs and Trade. Panama has been one of the world’s fastest growing economies in the last decade with opportunities in mining, infrastructure and clean energy. Coffee, tea and spices were among Panama’s largest exports to Australia last year.
According to the Panama Canal Authority, around 30% of all transits through the waterway each year are by Panamax class vessels. As the name suggests, Panamax-sized ships were the largest the waterway could accommodate. When canal expansion works were completed in 2016 giving way to larger vessels, the New Panamax classification was created.
LNG shipments through the Panama Canal have gained some attention over the past several months.
The Panama Canal Authority said in August that the LNG tanker transits through the canal had fallen by 30% in the past nine months. Falling traffic levels were also influenced by the conflict in Ukraine, as LNG shipments typically sent from the US to Asia were being diverted to Europe to replace Russian gas.
In early 2022, the waterway experienced heavy congestion as ships carrying LNG from the United States to meet energy demand in Asia created bottlenecks, driving up the price of LNG and shipping rates.
PANAMA, A THREAD OF A COUNTRY holding two continents together on a world map, has established itself as a maritime powerhouse because it does the exact opposite. The vital Panama Canal effectively severs Central America to join two oceans, but the waterway is only one dimension of the nation’s maritime identity. Panama also boasts some of the largest container ports in the region and the world’s largest ship registry.
The Panama Canal Authority told Reuters the increased seasonal demand had created delays for vessels arriving without passage reservation. But in June this year, vessel traffic through the canal dropped after an explosion at an LNG plant in Texas reduced LNG exports from the Gulf Coast of the US.
NEWSTHEIN
The Panama Canal
Panama’s ports are some of the most significant in Latin America. Port of Colón on Panama’s Caribbean coast had the highest container throughput of any Latin American or Caribbean port in 2020, at 4.45 million TEU. Port of Balboa on Panama’s Pacific coast had the thirdhighest container volume that same year, at 3.16 million TEU.
recorded container handling capacities of up to 3.5 million TEU and two million TEU respectively. Port authorities reportedly plan to expand ports of Balboa and Cristobal, increasing handling capacities to 6.5 million TEU each, positioning them both as mega ports.
The growth of Panama’s registry began in the 1920s as shipowners switched flags to avoid higher workers’ wages and mandated working conditions. Flags of convenience are often criticised for poor safety records and lack of regard for workers’ rights. Panama’s ship registry is regularly scrutinised and criticised by maritime charities, workers’ unions and occasionally mainstream media.
Port of Balboa
the dcn .com.au60 September 2022 Solarisys MARITIME COUNTRY PROFILE
Ships transiting the Panama Canal
TRADE OVERVIEW
Pacific Ocean
Talk to James about a package to suit you… or your whole team! James Hayman, orjames.hayman@thedcn.com.au (02) 9126 9713 SUBSCRIBE NOW! INDUSTRY PACKAGE Monthly Magazine • Daily newswire email • Website access – shipping data and news content • Directory of Maritime & Logistics Services fromPackages$875 NEWS PACKAGE Monthly Magazine • Daily newswire email • Website access – news content only • Directory of Maritime & Logistics Services fromPackages$650 VESSEL ARRIVAL REPORTS Lists all vessels due to arrive at the major Australian ports of SYD, MEL, BRI, ADE, FRE, PKB. Listed by vessel name, IMO number and agent fromPackages$1265 CONTAINER REPORTS Lists containers imported into Sydney and Melbourne. Displays depots, availability and storage charge dates, ensuring you have the information to help avoid unnecessary charges. fromPackages$1650 KEEP UP TO DATE Prices do not include GST With the latest industry news and insights by signing up for one our tailored subscription packages
Engage Towage tugs Diamantina, Martinique and Fitzroy and Port Authority tug Shirley Smith escorted Pacific Encounter to the Overseas Passenger Terminal at the end of its 12-day voyage from Singapore. The decks were lined with the ship’s staff, and the galley team had gathered above the bridge to watch their arrival into Australia. Passengers on passing ferries also
Marguerite Fitzgerald, president of Carnival Australia and P&O Cruises Australia, described Pacific Encounter’s arrival as another step toward rebuilding Australia’s cruise industry.
On a bright morning in August, Sydney’s seafaring community welcomed the second international cruise ship to return to Australian shores since the pandemic brought cruising to a standstill
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Pacific Encounter was the second international cruise ship to arrive in
“It is hard to believe that as warmer weather returns, Australia is now on the way to having a near normal 2022-23 summer cruise season,” Ms Fitzgerald said as the ship sailed for Australia.
P&O CRUISE SHIP PACIFIC
G’day Encounter
Sydney after the pandemic put the industry on hold for more than two years. The first was Pacific Explorer in April.
Encounter was welcomed into Sydney Harbour by four local tugboats and a display of banners and water cannons.
enjoyed the maritime welcome, and likely some light salt spray from the tugboats’ waterWhilecannons.thetugs were decked out in flags and banners to welcome the cruise ship home, Pacific Encounter displayed the words “hero tugs” across its screen on the top deck. The message was a salute to the tugs and crews which kept bulk carrier Portland Bay from grounding on the coast south of Sydney in early July.
Pacific Encounter arriving at the Overseas Passenger Terminal
Engage tugs Diamantina (left) and Martinique (right)
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WilliamsAbby
Port Authority tugboat Shirley Smith
A FOREBODING OUTLOOK
“Without regard to the fact that there is probably a war looming in the Near East, the prediction that there will be a world’s shortage in all raw materials in 1923 is liable to make many downcast,” DCN wrote.
GLOBAL WHEAT STOCKS DROP
“‘The year 1923 is destined to repeat something like the experiences of 1315, the year of the worst and most general harvest failure known in European history, in the exclusively improbable event of my arithmetical analysis being complete and accurate in every particular’, says Sir William.
A Russian community during thecircafamine,1921
But as noted in the DCN report, global production and consumption of wheat had been below average for the past five years. The world was still recovering from war.
BUTTER, WOOL AND AGRICULTURAL trade reports were commonplace in the Daily Commercial News a century ago. But entering the second half of 1922, one market began to dominate the pages, and for reasons reflective of a situation the world is currently facing.
On 11 September, DCN published an article exploring Australia’s position as a wheat exporter in the context of a global grain
Towards the end of September, reports indicated the global wheat situation may have been improving, but “war clouds centring in the Mediterranean” presented a new threat. DCN explored a foreboding outlook on 19 September 1922.
AUSTRALIAN EXPORTS
A series of DCN articles from September 1922 offer a snapshot of a precarious global grain situation and a sense of déjà vu, Abby Williams writes
“If the Australian or Argentine crops should prove a failure in any sense of the term, the effect on the world’s supply would be bad, and thus create a serious shortage,” the article said.
Though Australia predicted a healthy 192223 harvest for the nation, European wheat crops experienced a shortfall, according to a DCN report from 14 September. The impacts were evident in restrictions on baking in some European countries.
the dcn .com.au64 September 2022 CollectionEverett MARITIME HISTORY
In September 1922, the world was navigating a global grain shortage.
“On the face of the evidence given by Sir William Beveridge, the fulfilment of the prophecy will be awaited with an interest akin to anxiety.”
Throughout August and September, DCN published regular reports titled World’s Wheat Situation, informed by the Lindley Walker Co-operative Wheat Company.
“The Americans feel this prediction as a nasty certainty, and when [British economist] Sir William Beveridge made the statement that the cotton crop of 1923 was going to be an absolute failure, American journals looked at the position as nothing short of disastrous.
“At the present moment the situation indicates that the world wheat stocks will be lower than for several years by July 1, 1922, as both Argentina and Australia have considerably less than last year,” the US Department of Commerce said in June that year, according to a DCN report dated 5 Russia,August.usually a major wheat exporter, had been pushed out of the trade by the severe Povolzhye famine of 1921-1922, which extended into Ukraine. The United States would have only a light carry-over from its wheat harvest, and demand for wheat was increasing in Europe though smaller crops were anticipated.
“Since the war there has been a close balance of the world’s wheat supply and the potential demand for it, so that the condition of each successive crop has been cautiously and anxiously watched by the wholeThoughworld.”
“The French Government already has passed a bill making it compulsory for bakers to use other cereals in the loaf, and it was reported that Germany had taken steps to substitute potatoes for cereals where possible to effect economy in the consumption of wheat,” DCN wrote.
“Australian wheat becoming scarce,” a cable received by the company said.
The 1922 wheat shortage
“Theshortage.Australian wheat crop in any season can affect the European market by a shortage or surplus, and … the only way in which we can save an enormous loss yearly is by a method of storing wheat,” the piece said. This potential effect, according to DCN, was the greatest point in support of the bulk-handling system of wheat.
DCN suggested Australia did not forecast an abnormal shortage for its crops that year, it said failed crops would carry dire consequences.
amsa.gov.au/seafarer-safety
Seafarers bringing ships to our ports and safely berthing, loading and unloading them, are key to the Australian and global economies.
Seafarers a vital link for Australia
Let’s give seafarers the support they need to keep delivering Australia’s supplies and exporting commodities for trade.
Now is the time for the shipping industry to prioritise and support seafarers, and to substantially improve their working conditions to a level already in place across other sectors.
AMSA is deeply committed to the wellbeing of seafarers and provides a variety of resources and support services.
Tell us about your work at sea and what you enjoy most about it.
The grill
The program provided the tuition for the cadet training course at the PNG Maritime College, and the partnership
I think it is important for a crew to have women in it because women usually have a different approach to bring to the table. Many of us are quite intuitive, if and when we are given a voice. Also, because the men are usually surrounded by masculine company, I’ve found when I work among them, they have felt more open to expressing themselves.
Why do you think female representation is important in a crew?
Do you still encounter barriers now?
Yes – there were instances when I felt my job security was on the line due to harassment, but these were all dealt with. But other than that, there were just a few. We were often questioned about why we joined, almost so frequently that I would sometimes question myself whether I had made the right choice. Sometimes, the males wouldn’t trust us to do a physically
with the shipping companies helped us do our required sea time. The program assisted us in dealing with any issues we encountered on board or at the college during our studies and training. It also involved us in workshops not necessarily related to the industry, but to general life skills we might need. There are so many highlights from the program, but one of them for me was having the chance to sail under my father’s command on a Consort Express Line vessel. Consort had never employed females before us, but through its partnership with PacTow and Australia Awards, it employed its first ever female officers at the beginning of this year.
What sparked your interest in working as a seafarer?
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My father. He is a semi-retired ship’s master, and a very skilful and knowledgeable one at that. I used to join him on board during school holidays and I loved my time on board. I would watch large vessels sail into Madang Harbour and dream that one day I would work on one of them.
I was recently working as third mate on one of Consort Express Line’s larger vessels and enjoyed the navigational watches most. I love the views from the bridge and putting the Rules of the Road to use for collision avoidance, although many would admit it isn’t much of a challenge here, because PNG waters are not as congested as they are in other parts of the world.
strenuous task; they would quietly take it on without asking us to get involved. Even though the job is strenuous and physically challenging, it’s rewarding.
No, I don’t. During the time I spent on board as third mate, the ship was a positive environment to work in. Yes, we have individual characters who exhibit certain disagreeable traits, but we’re all human. The work environment was positive because the males I worked with were supportive of me. They assisted me when I was unsure of something, and it was very uplifting.
What would you say to encourage another woman thinking about becoming a seafarer?
Jamie Lee Baim recently graduated from the Maritime Cadetships for Women program in Papua New Guinea. She told DCN about why she wants to see more women working at sea
Were there any barriers to working toward this role as a woman in a maledominated industry?
How did the Maritime Cadetships for Women program equip you for work in the industry?
I’m not going to water this part down – you will be expected to work on par. The sea is not for the faint-hearted, but other women have proven themselves capable of meeting and exceeding the expectations. When you believe you can do it, you can, and you will. One of the greatest satisfactions of working at sea is being able to do my job thoroughly and safely. Learn as much as you can, and when you don’t know, ask. I still make mistakes. I still don’t know a lot of things, but I’m teachable. The sea comes with a lot of unexpected challenges, but there’s always someone on board who knows how to handle them, and there will be people who are willing to help you. I would love to see more women at sea, and I certainly hope that there will be more coming. It’s not easy, but it is rewarding.
VICTORIA
DCN correspondent Dale Crisp takes a deep dive into the liner trades from Australasia to Europe. What’s happening with freight rates and capacity on the trades, and how does that affect Australian shippers? Read the DCN feature on liner trades to Europe to find out.
Home to the busiest container port in the country, Victoria is the linchpin of Australia’s maritime logistics system. The state is entering a period of tremendous development, with plans fomenting for significant intermodal infrastructure and new export commodities.
From sunken tugboats to near-groundings, the past year has seen several incidents and close calls that illuminate the challenging work of marine salvors. DCN explores incidents and salvage operations in greater depth in next month’s maritime engineering & salvage feature.
MARITIME ENGINEERING & SALVAGE
This feature will take a close look at several aspects of logistics in Australia, with a special focus on the containerise supply chain. We will also bring insight from some of the organisations that advocate for the Australian logistics and supply chain industry.
Next month in
LINER TRADES TO EUROPE
DCN will examine recent developments and look at what the next year has in store.
SUPPLY CHAIN & LOGISTICS
