DCN Magazine November 2022

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the dcn.com.au First published in 1891
26 Inspiring future maritime industry leaders 40 The issues facing freight forwarders today 48 Growth expected for the reefer trades November 2022 Bulk ports & trades Facilitating Australia’s mineral and agriculture exports to the world
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the dcn .com.au 4  November 2022 XXXXXX Contents COLUMNS FEATURES 48 40 34 26 26 Young achievers A look at several future industry leaders 34 Bulk ports & trades Developments in Australia’s all-important bulk export sector 40 Customs brokers & freight forwarders Staffing issues, problems at the border and a busy year 48 Reefer trades The state of play in the reefer sector 16 Analysis Shipping Australia on new IMO decarbonisation rules 18 Industry opinion Unconventional cargo risks 20 Women in maritime The new WISTA president 22 Analysis A strange incident on the Mississippi River 23 Industry opinion Funding seafarer welfare 24 Industry opinion MIAL on the path forward for decarbonisation 54 World maritime day Marking the day in Sydney 56 Out & About The 2022 Shipping Industry Golf Challenge 60 Maritime history Concerns about bigger ships arriving in Australia in 1922 62 Out & about Swire 150th anniversary 64 Decarbonisation The second Australian Decarbonisation Summit 66 The grill Captain Roger King

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From the editor

Decarbonisation in shipping is getting serious.

The IMO’s Carbon Intensity Indicator is coming into effect at the beginning of the year. This, according to pretty much anybody paying attention, will have far-reaching effects for the international shipping industry. And, the (as-yet non-enforced) rules around the indicator tighten every year.

There is debate around whether this is a reasonable way to achieve the desired outcomes, and whether it even makes sense. But, the bottom line is that rules and initiatives such as the CII indicate that the maritime industry must tread the long (and perhaps expensive) path to decarbonisation.

Here in this issue, you can read analyses of the decarbonisation situation and possible ways forward (on pages 16-17 and 24). And also, on pages 64-65 there is a round-up of MIAL’s most recent decarbonisation summit, held in Sydney last month.

Also in this issue, we have a feature looking at some of the bright future leaders of the Australian maritime and logistics industry (see page 26). It is important that young people know that a career in maritime is possible, and that there is a path to make it happen.

And finally, the DCN 2022 Australian Shipping & Maritime Industry Awards are being held this month in Melbourne. I am looking forward to seeing many of you there at this fantastic opportunity to recognise and celebrate the best in our industry.

Ian Ackerman

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Lloyd O’Harte lloyd.oharte@thedcn.com.au

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the dcn .com.au

6  November 2022
EDITORIAL
ISSUE NUMBER 1268
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News in brief

Full details at thedcn.com.au

Big ship at Botany and Melbourne

CMA CGM Estelle broke records in early October as the ship with the largest TEU capacity to visit the ports.

The Malta-flagged CMA CGM Estelle is 299.9 metres long vessel was built in 2018. It has a 14.5-metre draught and is 48.2 metres wide.

Its TEU capacity of 10,926 eclipses the previous record vessel, CMA CGM Ural, which visited Australia for the first time in June 2020.

CMA CGM Estelle is deployed on MSC/ CMA CGM’s NEMO service, which runs between Europe, the Indian Ocean and Australia.

In Sydney, the ship berthed at the Patrick terminal. In Melbourne, it berthed at the Victoria International Container Terminal at Webb Dock.

Patrick Terminals CEO Michael Jovicic said the vessel was an impressive sight alongside Patrick’s quayline.

“Patrick Terminals has invested significantly to accommodate the next generation of larger vessels and is well equipped to service these ships,” he said.

Port of Melbourne CEO Saul Cannon welcomed the arrival of the ship in Melbourne, noting the larger vessels being deployed by the global shipping fleet.

“It’s really exciting to see this vessel arrive at Port of Melbourne,” Mr Cannon said.

“We are investing across the port to ensure we can accommodate the larger vessels that are calling at Melbourne.

VICT chief executive officer Tim Vancampen highlighted the work being done to accommodate larger ships.

“VICT would like to congratulate the CMA CGM Group on their continued drive for efficiencies through deploying larger vessels with clear environmental benefits in the Oceania trades to support the demand of the economy and utilise the ability to increase economies of scale,” Mr Vancampen said.

“In partnership with PoMC in the Webb Dock Development, we are committed to supporting the Victorian shipping industry with our $235 million investment that will increase our ability to accommodate increasing vessel sizes.”

DEVONPORT CLOSES DUE TO FLOODS

Port of Devonport reopened to commercial shipping on 16 October after port operations were suspended due to severe weather.

TasPorts had halted shipping operations on 13 October due to the risk of flooding in the Mersey River catchment zone.

TasPorts chief operating officer Stephen Casey said the Port of Devonport had received approval from the harbour master to affect the return of commercial shipping.

He said operations would return in a way that balances the urgency for reopening critical supply chains and passenger access with the need to ensure the safety of port users, vessels and port infrastructure.

“The enactment of our recovery plan, which has included confirmation of channel marker condition, repair of current profiler, and the removal of large amounts of visible debris (including trees) has prepared the Port of Devonport to the point where we can safely manage the passage of vessels,” Mr Casey said.

He said the decision was based on the results of hydrographic surveys.

“As a result, we are confident major obstacles have been removed from the shipping channel which means TasPorts can safely facilitate vessel movement.”

A recovery operation on 15 October cleared the port of significant debris and recreational vessels that broke from moorings during the peak of the flood.

Specialist equipment was deployed in the port to remove obstructions including a significant one on the seabed in the middle of the shipping channel.

the dcn .com.au 8  November 2022
Patrick Terminals
CMA CGM Estelle at Port Botany

Government launches strategic fleet taskforce

The federal government on 20 October appointed a new taskforce to guide the establishment of a strategic maritime fleet.

The proposed strategic fleet would be made up of Australian-flagged and crewed vessels. The government says the goal of the fleet is to strengthen Australia’s economic sovereignty and national security.

Prime Minister Anthony Albanese proposed the establishment of a strategic fleet in January of this year. The concept sparked a robust debate across the maritime industry around the time of the 2022 federal election.

The newly appointed Strategic Fleet Taskforce is to guide the government on how to establish Australia’s fleet as quickly as possible and provide advice on what legislative or regulatory reforms are necessary to support the Strategic Fleet and Australian shipping.

John Mullen will chair the taskforce. He is to bring experience in international transportation and logistics and more than two decades in senior positions with large transport and infrastructure companies.

Maritime Industry Australia CEO and shipping policy specialist Angela Gillham will also be providing expertise to the taskforce, along with Maritime Union of Australia national secretary Paddy Crumlin and Woodside Energy’s Sarah Ryan.

Major-General Jason Walk from the Department of Defence, a senior military officer with wide-ranging command,

leadership and management experience will also be on the taskforce.

Ms Gillham of MIAL told DCN the taskforce will provide a strong base of expertise for the establishment of the fleet.

“[MIAL’s] involvement relates to providing the shipping industry perspective on the taskforce discussions,” she said.

“The taskforce is … drawing from expertise in the cargo space, so Dr Sarah Ryan has a lot of experience in the oil and gas industry, and Paddy Crumlin from the MUA will be providing that workforce input, and we’ll be providing input around the operation of a shipping business and what our members need in order to compete with foreign interests.

“I think the defence logistics aspect too will be really important to feed into that supply chain security [and] national disaster relief, all those things that have become so apparent as vulnerabilities for Australia over the last five years.”

But Shipping Australia cautioned against the development of a national fleet, arguing that many of the policy goals put forward for the development of a national fleet can be achieved at a lower cost by other methods or do not stack up.

“Workforce skilling can be addressed through education, training, cadetships on globally trading vessels, and immigration,” a SAL spokesperson told DCN.

“The depth of diversity in terms of

operators, crews, and routes (among other things) are what delivers resilience to external shocks.

“Fuel security arguments do not stack up as we are entering a transition in energy sources and it is extremely likely that Australia’s future energy needs will be met by electrification, domestic renewables and domestically produced fuels such as liquid ammonia and hydrogen.

The SAL spokesperson said job-creation arguments are rebutted by history, as nationalist shipping policies have caused Australian seafarers to be thrown out of work and Australian manufacturing plants to shut down.

“Economic arguments don’t stack up either, as analysis shows that national shipping policies tend to cause more economic harm than benefits,” they said.

The Strategic Fleet Taskforce will meet later this month to kick-start the work.

It plans to deliver its advice to government in two phases, with the first phase to report on high-level strategic objectives by the end of the year.

During this phase, shipping, maritime and other stakeholders will be able to make submissions to shape the vision for a strategic fleet through an open public consultation process.

This will be followed by a second phase to identify ships options and other needs for a strategic fleet of up to 12 vessels, expected to be complete by June 2023.

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the dcn .com.au 9 November 2022

Bill aims to “unshackle” Port of Newcastle to build a container terminal

A bill tabled in New South Wales Parliament has formalised a vision for Port of Newcastle to operate as a container port.

On 13 October, independent MP for Lake Macquarie Greg Piper introduced the Port of Newcastle (Extinguishment of Liability) Bill 2022 was introduced by Greg Piper.

The stated goal of the bill is to “extinguish certain liabilities of the operator of the Port of Newcastle relating to an agreement between the state and the operator of Port Botany and Port Kembla”.

In effect, it intends to undo a deal made in 2013 which capped the number of containers Port of Newcastle could handle before having to pay a fee on every unit exceeding the limit, which would be collected by the state government and paid to NSW Ports as compensation.

In a speech to parliament, Mr Piper said the bill aimed to fix what he described as “a very bad deal brokered by a former government to the great detriment of the state’s economic potential”.

“It was a deal that has become a deadweight on the state’s future, and it was a deal that put the Hunter’s potential into a straitjacket in order to deliver a shortterm windfall,” he said.

“It is my very firm view – and certainly the view of most in Newcastle and beyond – that that clause [limiting container throughput] constitutes a considerable restriction on free trade, is anticompetitive and creates a monopoly for NSW Ports to the detriment of the Hunter and other regional areas north of Sydney.”

Mr Piper described the challenges faced by farmers, producers and manufacturers who are reportedly negotiating costly bottlenecks and logistical challenges to export products because they are unable to ship through Newcastle without bearing extra costs imposed on the port.

“Let those people tell you about the extraordinary cost of sea freight, which has skyrocketed sixfold since the start of the pandemic,” he said.

“We must unshackle the port of Newcastle from a lazy deal that is good for no-one except the shareholders in New South Wales ports and their monopoly at Botany and Kembla.

“It was a bad deal and it would be far cheaper to get out of it now than face the restraints, losses and limitations that will cost us billions over that next 43 years.

“I believe there are very few members of this House who would not agree that the deals done back in 2013 and 2014 were genuinely deficient and anti-competitive.”

Port of Newcastle CEO Craig Carmody applauded Mr Piper for his leadership in “dealing head on with the serious barriers” facing the NSW economy and business in import and export trades.

A spokeswoman for NSW Ports said NSW Ports was not a party to the commercial agreement entered into by the Port of Newcastle in 2014.

“However, we note that many of the claims being made are not credible and ignore the realities of NSW’s container supply chains,” she said.

POSEIDON SEA PILOTS ENTER THE

MELBOURNE MARKET

Poseidon Sea Pilots on 10 October began offering pilotage services in Victorian ports.

A subsidiary of Australian Maritime Systems (AMS) Group, Poseidon Sea Pilots will operate in the ports of Melbourne, Geelong and Hastings.

Poseidon parent company AMS Group CEO Glen Marshall told DCN the move into Melbourne had been almost nine months in the making, building off mobilisation and operations in Brisbane.

He said there had been a great deal of enthusiasm around the Poseidon Sea Pilots’ arrival in Victoria, but acknowledged it is entering a competitive environment.

The company will be the third pilotage service provider to operate in Melbourne and Geelong, and the second to work in Hastings.

“The intent is to go in slowly but very methodically so that … we can demonstrate that our systems, processes and the training we’ve got for our people are second-to-none, and that we can always deliver on what we’ve promised,” he said.

Mr Marshall said each pilot in the initial team has been employed by Melbourne services in the past but are dual-qualified to work in Brisbane when needed.

“The intent is to build a pool of 45 pilots in Brisbane and have them cross-trained across multiple sites around Australia,” he said. “It’s going to be very exciting both for the clients we support … because it allows surge capacity in any of the ports, it provides greater flexibility for us as an organisation, and it also provides more professional development for the individual pilots.”

Mr Marshall said simulator training in Brisbane has enhanced the pilots’ knowledge of critical turns and components of navigation in Victorian ports.

“We’re also doing a lot of mentoring as well,” he said. “Some of the very experienced pilots are still engaging with the more junior pilots on the water.”

The company welcomed pilot cutters Trident and Yorke. The vessels can operate in each of the Victorian ports Poseidon pilots will work in.

the dcn .com.au 10  November 2022 NEWS IN BRIEF
Ben Jeayes Port of Newcastle
Keeping the ports of NSW
safe, secure and open to the world www.portauthoritynsw.com.au Follow us @portauthoritynsw
Sydney Harbour | Port Botany | Newcastle Harbour | Port Kembla | Port of Eden | Port of Yamba
Port
Boom deployment exercise
Kembla New South Wales

MUA celebrates 150th anniversary

The Maritime Union of Australia celebrated its 150th anniversary last week with a gala dinner on Sydney Harbour.

More than 600 guests attended the event, including Prime Minister Anthony Albanese, head of the Australian Council of Trade Unions Sally McManus and delegates from international trade unions.

The MUA said the event was an opportunity to join together to “celebrate 150 years of struggle, solidarity and unity”.

MUA national secretary Paddy Crumlin said the union was proud of everything it had achieved and stood up for throughout its history.

“We are proud that we are providing a strong base for working men and women to live better lives, just as we have for 150 years,” he said.

“The great thing about the trade union movement and particularly our beautiful union, is that if we made an achievement we never made it without wanting to reach out to someone else – whether it’s the union next door, or down the supply chain, or anyone else under pressure around the world.”

NEW REEFER CONTAINER SERVICE FOR KING ISLAND

Bass Island Line has announced it is introducing a new refrigerated container service. The company said it would help King Island residents deal with higher costs of living.

The intent of the new service is to allow retailers on the island to source goods from mainland Tasmania and provide more service options.

$55-million clinker import infrastructure at Kwinana announced

Fremantle Ports announced work would start next month on a new $55-million clinker import circuit facility at the Kwinana Bulk Terminal in the Outer Harbour.

The new facility is intended to streamline the importation of clinker, the principal element in cement. The facility will consist of a storage dome nearly 40 metres high and a covered conveyor network.

More than 1.1 million tonnes a year of clinker are imported through Kwinana Bulk Terminal, destined for domestic, commercial and industrial construction projects throughout Western Australia.

Around half comes from Indonesia, with the remainder from Japan, Malaysia, Philippines and the United Arab Emirates.

Fremantle Ports CEO Michael Parker said the new clinker circuit would link directly to the adjacent Cockburn Cement

plant and deliver efficiency benefits to the state’s other major clinker importer, BGC.

“Without clinker industry stops and every tonne of the commodity entering WA comes through Kwinana Bulk Terminal,” Mr Parker said.

Mr Parker said the storage dome would be able to hold an entire shipment of clinker – around 40,000 tonnes – with this project replacing cargo-handling assets that do not have the same capacity.

The facility is scheduled to be in use by the second quarter of 2024.

“This is a very exciting investment, because it not only offers our customers improved efficiencies and supports the construction industry in WA, but cargohandling will be faster, meaning there will be gains for our customers and also in terms of ship turnaround times at berth,” Mr Parker said.

Following an analysis of retail prices for perishable items, BIL found King Island residents were in some cases paying more than double what residents on mainland Tasmania pay.

BIL general manager Nigel Foss said the company has engaged directly with King Island retailers to determine interest in the possibility of a refrigerated container service.

“We will work with retailers and customers on King Island to assist to reduce the impact of cost-of-living pressures to the community on every day perishable food items,” he said.

“We see the introduction of refrigerated container service as one way to help with this.”

Mr Foss said the existing Devonport to King Island transhipment service has already proved beneficial to the community.

“BIL has doubled the average number of TEU carried per voyage since we ceased a direct Victorian port call and instead introduced a transhipment service using SeaRoad Shipping.”

the dcn .com.au 12  November 2022 NEWS IN BRIEF
The terminal is expected to be operational by mid-2024
; Fremantle
MUA
Ports
Anthony Albanese and Paddy Crumlin
DCN0221_Allads.indd 27

Spirit of Tasmania quay reaches new milestone

Construction has been completed on a key element of a world-first, three level access ramp at the Spirit of Tasmania Quay at the port of Geelong.

The ramp uses a complex steel structure built specifically for Spirit of Tasmania’s current ships and new, larger vessels due to arrive in 2024.

It has been designed to provide streamlined and more efficient access

for cars, caravans and trucks entering the ro-pax vessels.

Local engineering and fabrication company Thornton Energy Australia completed the key element of the access ramp.

The gantry legs, triangulated truss, deck platforms and link spans were fabricated in nearby Corio using 510 tonnes of steel – the same amount of

steel used to create 32 school busses, according to GeelongPort.

The Spirit of Tasmania Quay site in Geelong will also include a passenger terminal, a vehicle marshalling area for 600 cars and caravans, more efficient passenger vehicle check in, security facilities and public amenities.

The new facility will also feature a dedicated freight terminal.

Incident reporting regulations to change for pilots and VTS officers

Changes in the Transport Safety Investigations Regulations will require pilotage providers and VTS to report transport safety occurrences to the Australian Transport Safety Bureau.

The changes designate pilots and vessel traffic service authorities as “responsible persons” required to report occurrences.

“The TSI Regulations set out the ATSB’s safety occurrence reporting scheme and prescribes what occurrences must be reported to the ATSB, the ‘responsible persons’ who are required to make a report, and the particulars to be included in a report,” ATSB Chief Commissioner Angus Mitchell said.

“This is to cover occurrences which would otherwise not be reported because a ship leaves port and no other relevant entity with knowledge of the occurrence would be in a position to report to the ATSB.”

For the marine industry – AMSA is nominated to receive occurrence reports, which are then transmitted to the ATSB.

“Capturing additional reporting from pilotage providers and VTS authorities will establish a more accurate dataset for safety analysis conducted by the ATSB,” Mr Mitchell said.

In consultations with industry and AMSA, some pilotage providers and VTS authorities already voluntarily submit reporting to AMSA, according to the ATSB.

The amendments have now been approved by the relevant minister. The amendments have been proposed to the Executive Council for endorsement in coming weeks.

INDUSTRY EVENTS

TASKFORCE UNCOVERS 300 KGS OF DRUGS IN AIR CARGO

Two men were arrested in Melbourne last month after authorities seized more than 300 kilograms of liquid MDMA hidden in an air freight consignment of French wine bottles.

An investigation was launched in late September after ABF officers examined a shipment of wine bottles labelled as 2016 Bordeaux, sent from France.

Officers identified a viscous liquid inside 270 of the bottles, which allegedly contained liquid MDMA.

The drugs were removed and investigators from the Victoria Joint Organised Crime Taskforce (JOCTF) tracked the consignment as it was delivered to a self-storage facility on 5 October.

The JOCTF comprises the Australian Border Force, Australian Federal Police, Victoria Police and the Australian Criminal Intelligence Commission.

JOCTF detectives arrested a 25-year-old man from Roxburgh Park and a 21-year-old man from Cranbourne after police allegedly identified the Cranbourne man checking the consignment.

editorial@paragonmedia.com.au

the dcn .com.au 14  November 2022 NEWS IN BRIEF
10 Nov 2022 2022 DCN
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Artist’s impression of the Spirit of Tasmania terminal
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The coming green shipping requirements

New rules from the IMO around carbon dioxide emissions reporting are to come into effect at the beginning of next year and these will have some widereaching consequences for the maritime industry, Jim Wilson writes

EFFORTS TO REDUCE THE CARBON

intensity of shipping will receive a major boost early next year when a new suite of regulations take effect.

Global maritime greenhouse gas emissions stand at about 1076 million tonnes per year, according to the IMO. If global maritime was a country, it would be a little bit ahead of Germany and at number six in a list of countries ranked in order of how much they emit.

The IMO’s Greenhouse Gas Strategy ties in with the 2015 Paris Agreement and aims for a cut of emissions on average by 40% by 2030, a cut in total emissions of 50% by 2050; working towards a 70% cut by 2050 and a complete phase-out by century’s end.

CARBON INTENSITY INDICATOR

Several regulatory tools and policies have been developed by the IMO to meet these. But we are going to focus on one specific

regulatory policy that could be a major driver of shipping decarbonisation: the Carbon Intensity Indicator.

Following amendments to MARPOL, the IMO has mandated that as of 2023, there will be a Carbon Intensity Indicator (set with reference to 2019 data) and that ships must be assessed against that indicator.

In 2023, ships will be required to hit a CII (the attained CII) that has 5% fewer emissions compared with the benchmark. The attained CII is based on the operational performance of the ship, so the assessment will likely require expert analysis.

Ships will be given a grade of A through E – A is the best and C is a pass grade. Any ship with a D grade three years in a row, or E in any year, will have to take corrective action to get the ship back to a pass grade.

Then, each year thereafter, the standards will be toughened a little bit and ships must, each year, meet that tougher

standard. So, a ship could get a pass mark in one year, but it could fail the year after.

This process will continue until 2026, when the CII will be 11% lower than the 2019 benchmark, and a review of the system is scheduled.

DOES IT HAVE TEETH?

At the moment there are few official sanctions for non-compliance with the CII. There are no flag state or port state penalties. Shipping Australia understands that port state control measures have been discussed at the IMO but, so far, these have not been green-lit. If there were to be port state control in the future, it could be that ships get detained for non-compliance.

The shipping industry is opposed to the implementation of this penalty; however, as the CII system is entering into an initial review period, which must complete by 1 January 2026. It will not be clear whether

ACRONYM OVERLOAD A guide to decarbonisation acronyms and initialisms

CII Carbon Intensity Indicator. A reference carbon intensity indicator benchmark is set with reference to the year 2019 (see SEEMP Part 2). A specific CII must be calculated each year for each ship based on the ship’s actual carbon intensity, and that attained CII must beat the benchmark CII. There are two elements of the CII that may drive decarbonisation of shipping: (a) the attained CII must be re-discovered and re-calculated each year; and (b) the benchmark CII reduces every other year relative to 2019. It will reduce until it reaches an 11% reduction in 2026.

EEOI Energy Efficiency Operational Index. A key performance measurement system used to measure the energy efficiency of a ship. Particularly used in

recent years for reporting data to the IMO – and can still be used for that purpose –but it is likely to fall out of favour with the introduction of the CII.

EEDI Energy Efficiency Design Index. Entered into force in 2013. An index for new ships. A reference, or benchmark, EEDI is set and new ship designs must attain a one-off efficiency that is better than benchmark, which reduces every few years. The IMO states that ships built in 2025 will be “a massive 30% more energy efficient than those built in 2014”.

EEXI Energy Efficient Existing Ship Index. The counterpart to the EEDI, it sets a reference point or “benchmark” for ships that exist and those ships must attain a one-off efficiency (“attained

EEXI”) that is better than the benchmark. The benchmark reduces over time. Ship owners can use an approved EEDI file as the EEXI technical file and no further action is required. The EEXI comes into force in January 2023 and is one of the recent amendments to MARPOL Annex VI

IMO International Maritime Organization. A specialist United Nations organisation that regulates the global maritime sector. Membership of IMO is limited to countries that accept the IMO Convention and pay the applicable fees (based on tonnage in the merchant fleet). There are about 175 countries that are IMO members, there are about 66 inter-governmental organisations (e.g., the Indian Ocean Commission) that have observer status, and 85

the dcn .com.au 16  November 2022 Image supplied ANALYSIS

DECARBONISATION: HOW TO

GHG counter- Scale of GHG measure reduction

Power & Propulsion systems 5-15%

Fleet management, logistics 5-50%

Voyage optimisation 1-10%

Concept, speed, capability 2-50%

Extensive speed optimisation 1-75%

Go fully electric* 50-90%

Bio-LNG/LPG 35%

Biofuel (3rd gen) 90%

Synthetic fuels** 80-100%

Energy management 1-10%

Hull and superstructure 2-20%

Hull biofouling management 5-25%

* for smaller, near-shore, commercial vessels –tugs, ferries, small coastal tankers ** e.g., green hydrogen, green ammonia, green methanol

Source: IMO; notes by Shipping Australia

the system is functioning in an accurate and fair manner until then.

Meanwhile, CII ratings will be confirmed against annual data returns. In between the annual submissions, it will be impossible to know what a ship’s annual rating will be – because of seasonal variations. Unless a port state inspection coincides with the end of an annual CII reporting period, or at some point thereafter, it would be impossible for a Port State Controller to fairly judge whether a ship will fully complete its plans or ultimately achieve or exceed a C rating at the end of a given annual reporting period.

It is likely that there will be market sanctions for non-compliance.

Major shippers – such as IKEA, Target and the like – have declared ambitions for zero-emission vessels by 2040. It is unlikely that such major players would charter vessels or do deals with shipping companies that cannot at least hit a C grade.

Age, the freight rate environment and the amount to be spent on corrective actions will likely be major factors. Ships generally have a life of about 20-25 years. Elderly ships that get low scores, and are faced extensive retrofitting or repair work, are likely to be scrapped instead. They would be unlikely to ever earn back the cost of expensive corrective actions.

Any new ships would then be subject to the Energy Efficiency Design rules, which mandate that new ships are highly efficient.

HOW TO CUT EMISSIONS

Ship owners and operators have a wide range of tools to cut their emissions. The key to understanding how can be found in the CII concept calculation: (Annual fuel consumption x the carbon dioxide emissions factor) divided by (annual ship distance travelled x ship’s capacity).

Ships are generally built to a given size and dimensions to match the volumes and distances of a given trade (e.g. large bulkers are built for the WA – north Asia trade; small box ships are deployed on the Asia – ANZ trade), so there is little that can be done cut emissions by focusing

on the latter half of the CII calculation. But the top half of the calculation – fuel consumption and carbon dioxide emissions factor (i.e., related to the type of fuel chosen) are both controllable.

Annual fuel consumption can be cut either by running ships more efficiently (through better management) or by installing fuel saving technology (such as kites, sails, waste heat recovery systems). Then choose a lower emissions fuel such as green hydrogen, green ammonia, biodiesel or methanol, and you’re basically done.

There’s still a lot of research and development to be done on future fuels, and the likely industry-wide winner is, as yet, still uncertain. In the near-term, over the next 10 to 15 years, ocean shipping will heavily rely on ship management practices to make existing operations more energy efficient. As vessels become elderly and inefficient, they will be sent to the scrapyard and their replacements will likely be equipped with all the energy saving bells and whistles while we await the debut of clean fuels.

Jim Wilson, policy and communications officer, SAL

non-governmental organisations with consultative status (e.g., the World Shipping Council). The main assembly meets every two years and, inbetween, a council of 40 nations acts as a governing body. The technical work of the IMO is carried out by a series of committees and sub-committees, which are attended by government delegates from around the world. The IMO Secretariat consists of about 300 international civil servants and the Secretary General. See also: MEPC, MARPOL/MARPOL Annex VI

MARPOL/MARPOL ANNEX VI

MARPOL is a portmanteau of the words maritime and pollution. MARPOL refers to the “International Convention for the Prevention of Pollution from Ships, 1973”, which was signed in 1978. It entered into force in 1983. About 156 or so countries have signed up to MARPOL; they account

for about 99.4% of the world’s merchant fleet. MARPOL Annex VI regulates airborne emissions from ships such as nitrogen oxides, sulphur oxides, volatile organic compounds, particulate matter, greenhouse gases and carbon dioxide. Australia implements MARPOL through the Protection of the Sea (Prevention of Pollution from Ships) Act 1983 and the Navigation Act 2012

MEPC Marine Environment Protection Committee. The IMO produces a large volume of work through its committees and sub-committees. One of the most important committees in recent decades is the MEPC, which tackles environmental issues in the IMO’s area of responsibility. The MEPC meets once or twice a year and may also have inter-sessional meetings too. The MEPC is empowered by MARPOL to make international maritime

environmental law regulations. See also: IMO and MARPOL.

SEEMP The Ship Energy Efficiency Management Plan. An IMO-mandated plan that must be placed aboard every ship. It links high level international policy on energy efficiency, company policy, and the activities of and aboard a ship. The SEEMP sets out how the ship is supposed to be operated in a way that meets company and international policy goals. Is split into three parts. Part 1 – for monitoring and improving ship’s energy efficiency. The IMO recommended tool to set goals and monitor Key Performance Indicators under Part 1 was / is the EEOI. Part 2 – mandated the collection and reporting of fuel consumption data to the IMO; reporting took place in 2019. Part 3 – this brings the CII into being. See entry for CII for further details.

the dcn .com.au 17 November 2022  SAL

Risks of unconventional cargo carriage

With more and more bulk-carrier operators considering carrying cargoes that would usually be containerised, John Southam and David Richards of North P&I Club outline the risks associated with this unconventional method of cargo carriage

AMID A SHORTAGE OF CONTAINER

ship capacity and soaring container freight rates, carriers are increasingly exploring breakbulk alternatives, and the potential for conventional dry bulk carriers to ship cargoes in bags, flexible intermediate bulk containers or intermediate bulk containers.

However, not all containerised cargoes are suited to this method of shipment, and bulk operators offered the opportunity to carry cargoes as breakbulk that would usually be containerised should be aware of the associated risks.

COFFEE

For example, bagged coffee is commonly considered for break bulk. Coffee is a highvalue commodity, with current prices around US$6 per kilogram for arabica beans and roughly half that for robusta. Carrying coffee beans using any recognised method presents challenges for the carrier. The beans are highly hygroscopic, which means they absorb a significant amount of moisture from the air, making them vulnerable to condensation that then wets the bag and encourages fungal growth. This risk is exacerbated when the coffee beans – grown in warm, humid regions – are transported to cooler climates, as is frequently the case.

Condensation that forms on steel structures is the primary source of wetting. Even when carrying bagged coffee using dry containers as per standard industry practice, the same risk is present; with limited ventilation, moist air is not properly expelled.

Cardboard or kraft-paper lining is often used to protect the cargo, but the effectiveness of this method is disputed. Similarly, the effectiveness of building ventilation channels into the stow is unproven, while hold ventilation may also be limited in its efficacy. Dunnage can prevent cargo-to-steel contact but applying enough to have the desired effect can prove challenging.

Such is the risk of wetting damage and the difficulty of preventing it that cargo expert BMT advises against carrying bagged coffee in cargo holds altogether.

A further risk in transporting bagged coffee in break bulk is the crushing damage caused by the weight of the cargo loaded above.

CHEMICALS

Some chemicals that have traditionally been carried in containers, such as sodium metabisulphite, are now being carried in jumbo bags as break-bulk cargo.

If overloaded or poorly stowed, jumbo bags can split, causing their contents to leak into the hold. This not only presents a health hazard to those working in the hold but can also cause damage to adjacent cargo and the surrounding steel structure.

SEEKING ADVICE

Although adapting to new customer requirements and solving capacity issues to keep trade flowing is nothing

new in the shipping industry, requests to carry cargoes in an unconventional manner should be carefully scrutinised, particularly when dealing with dangerous or high-value cargoes.

Given reported shortages in reefer capacity, there are particular concerns around high-value cargoes requiring temperature control, such as some pharmaceuticals. Carrying this kind of cargo in IBCs laid across the top of a bulk stow of grain, for example, may prevent effective fumigation and ventilation and lead to contamination.

Cover may be prejudiced where unconventional cargo arrangements mean a cargo cannot be carried in accordance with a safe and proper system, or if the carriage is imprudent for some other reason. The carriage of rare and valuable cargo may require advance approval from the vessel manager, and any change in risk due to the carriage of an unconventional cargo requires prompt disclosure to the P&I club to ensure that cover remains in place.

Legal advice should be sought when a charterer requests a carrier to transport cargo using unconventional methods. Depending on the charterparty terms, such an order may be illegitimate, particularly where compliance would be impossible or unsafe. Owners may wish to explore taking a Letter of Indemnity from a charterer who requests unconventional carriage arrangements.

the dcn .com.au 18  November 2022 Images supplied; stockphoto-graf
John Southam, loss prevention executive, North P&I Club David Richards, director (claims), North P&I Club
INDUSTRY OPINION
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In conversation: Becoming WISTA president

Newly appointed WISTA president Monika Lemajic has a vision for reviewing, resetting and refocusing the organisation’s efforts to support the maritime industry’s shift towards diversity, equity and inclusion, Jillian Carson-Jackson writes

ANNUAL

GENERAL MEETINGS. We’ve all been to them – possibly ran them – and we know what the preparation for these meetings entails. In August, the Australian branch of the Women’s International Shipping & Trading Association (WISTA) held their AGM and elections, including for the role of WISTA Australia president.

After four years of passion; breaking down barriers; being emphatic, inclusive and intersectional; getting a seat at the table and making sure the voice of diversity was heard, Alison Cusack stepped back from the role of president.

The baton has now been passed to Monika Lemajic, MNI. I had the pleasure of catching up with Monika in Canberra recently, and we discussed all things maritime, diversity, equity and inclusion, and her vision for WISTA for the coming two years.

Monika, we have known each other for a few years, and through a few different roles. I’d love to hear a bit more about what brought you into this great maritime industry.

It was really a bit of an accident. In high school, I didn’t know what I wanted to do. I was flicking through a book of jobs and said out loud, “I am going to be a ...” and put my finger down in a book and it landed on naval architect. So that is what I did. I became a naval architect. I got a job with Thales and just never left the industry!

I am always looking for new challenges and went from naval architect to assistant dockmaster. My passion for structure and progress project management seemed a perfect fit since I like structure, with a goal in mind.

I like to focus on four key questions: where are we now, where do we want to be, how will we get there, and how will we know we have arrived? Now I’m enjoying my current role in Transport for NSW, not only for the challenge of the role but also for their commitment and vision for DEI.

the dcn .com.au 20  November 2022 Image supplied WOMEN IN MARITIME
Jillian Carson-Jackson and Monika Lemajic at a café in Canberra
No matter how much I questioned my abilities, the support and encouragement from the WISTA team has helped me to be the best version of myself and I am very grateful for it.
Monika Lemajic, WISTA

Tell me about what WISTA is for you.

When I first started working as a trainee in this industry, I was bright eyed, naïve and eager to learn – well, I actually still am, but I’ve also had many struggles.

While my happy place was on the wharf at dawn, guiding a ship into wet berth, calculator in one hand and radio in the other, I also had to fight for basic things, like female-only change rooms and sanitary disposal boxes in the bathrooms. I often felt unsafe, alone and exhausted from trying to get just the basics for a safe workplace.

I felt for so many years that I was alone, that I couldn’t speak to anyone because no one would understand what I was going through. For me, the whole women in maritime movement and WISTA is a vessel for learning and growth. It is a safe place where I have a voice, where people will listen without shaming, and where I will be believed and supported.

What led you to take on the role of president of WISTA Australia?

I really didn’t think of putting my hand up for president; I was enjoying the role as international communications officer.

When Alison first put the idea of being the next president in my head, I was worried that I wouldn’t be good enough for this position. I actually enrolled in a leadership and communications course from the University of Cambridge to gain self-confidence.

No matter how much I questioned my abilities, the support and encouragement from the WISTA team has helped me to be the best version of myself and I am very grateful for it.

I know you have some plans lined up for the next two years. What is your starting point?

I really want to build on what Alison has done over the last four years. Putting my project management hat on, I’m looking at a revised version of the three Rs: reviewing, resetting and refocusing our efforts to ensure alignment with current and emerging maritime trends.

How do we support the workforce shortage? How do we educate organisations on diversity, equity and inclusion values? How do we address ongoing systemic and unconscious bias? How do we support our members in developing skills in emerging technologies?

I’m working with the WISTA team on our key action points for the year: aligning with the industry, with WISTA International and supporting our members. Our pillars of success will fall out of the strategy.

Any final thoughts on what it means to you to be president of WISTA Australia?

It is an honour, it is scary, it is a challenge, it is energising and – did I mention it is scary?

If I can support this organisation and this team; if I can be the extension of someone’s voice, then maybe somewhere, someone like me, will feel less alone in this world.

I hope I can support the growth of women, that I can be the lighthouse in uncertain waters and the homeport for those dealing with adversity. For me, the role of president of WISTA is a chance to generate change, to pave way for the generations to come, to make it easier and take steps towards equality for all.

A GLOBAL NETWORK FOR WOMEN IN MARITIME

The Women’s International Shipping & Trade Association was formed in 1974 as a global network of women in leadership and decision-making roles across the maritime industry. The organisation’s 52 National WISTA Associations connect more than 3000 women in shipping and trade sectors.

WISTA Australia, a member of WISTA International, was established in 2011 as a platform for the women of Australia’s shipping and maritime industry to come together and further Australian and international trade.

The national branch of the global organisation offers alternative networking, mentoring and educational opportunities to women in shipping. Regular meetings of WISTA Australia can involve visits to shipyards, ports and trade-related facilities. Seminars, events and webinars hosted by the branch also provide guidelines and information on industry-relevant topics.

On a global scale, each National WISTA Association aims to provide in-country and regional networking, business and skill-building opportunities and corporate visibility. Relationships within the industry are also an important focus.

THE IMO-WISTA WOMEN IN MARITIME SURVEY

In May this year, to mark the inaugural International Day for Women in Maritime, WISTA International joined forces with the International Maritime Organization to publish the Women in Maritime Survey 2021 report.

The report contained data on the proportion and distribution of women working in the global maritime sector. It found women account for 29% of the overall maritime workforce.

WISTA International president Despina Panayiotou Theodosiou said the knowledge gathered through the Women in Maritime Survey 2021 was an important step in ambitions to create holistic gender diversity.

“As a first snapshot, this survey gives telling evidence of how much work still needs to be done,” Ms Theodosiou said.

“But it also shows us where there are a few bright spots. The maritime industry can see for itself which sectors are pushing ahead with diversity, and which are not.”

The report highlighted variation among individual sub-sectors of the global maritime industry. Data gathered from IMO member states found search and rescue teams in national maritime authorities account for significantly fewer women staff (just 10%) as compared to female diplomats (33%) and training staff (30%).

Industry data indicated female seafarers made up 2% of the crewing workforce and work predominately in the cruise sector, while in ship-owning companies women accounted for 34% of the workforce.

the dcn .com.au 21 November 2022  Gumbariya

Lessons from unusual collision

It was a gusty November night on the Mississippi River when an unusual collision occurred: a train collided with a barge. Maritime expert Peter van Duyn looks at some of the lessons to be gleaned from the incident

ON 13 NOVEMBER LAST YEAR, A freight on the railroad track along the shoreline of the Mississippi River near Galland Iowa collided with a tow of four empty barges. One of the barges was overhanging the railroad track. Two locomotives and ten hopper cars loaded with coal derailed. Six of the derailed hopper cars landed in the river. Fortunately, the train personnel only sustained minor injuries. The collision resulted in US$1.9 million in damages to the locomotive and freight cars. The barge sustained minor damage.

THE BARGE

Towing vessel Baxter Southern was underway pushing four empty barges downbound on the Upper Mississippi River en route to Donaldsonville, Louisiana. During its transit, strong wind gusts during the evening made it unsafe to continue the voyage. The captain and river pilot identified an area along the riverbank (a so-called fleeting area) that they considered safe to push the barges against the bank and wait for the weather to abate. It is considered normal for tugs and barges transiting on inland waterways of the United States to push up against the riverbank – whether to wait for river traffic to decrease, bad weather to pass, for lock openings, or to conduct maintenance.

Using the vessel’s electronic chart system (ECS), the captain and pilot selected a location on the chart that they believed was a fleeting area and safe to push up against. But neither the pilot nor the captain clicked an exclamation point symbol (cursor pick) on the electronic chart, which would have showed that the area presented a “railroad collision and track bed erosion risk.”

THE TRAIN

That morning, a BNSF Railway Company train departed Burlington, Iowa, en route to West Quincy, Missouri, hauling 143 hopper cars loaded with coal, with a total

weight of approximately 20,000 tonnes.

At 2343 on the evening of 13 November, the lead locomotive collided with the overhanging barge. The locomotive derailed, tipped over and skidding on the ground, causing the second locomotive and 10 hopper cars to also derail. Six of the hopper cars landed in the river. The BNSF train’s conductor and the engineer evacuated the lead locomotive.

The US National Transportation Safety Board, in its recent report on the collision, determined that the probable cause of the collision between the Baxter Southern tow and BNSF coal train was the tow’s pilot and captain not correctly identifying a caution area on the electronic chart before deciding to push the tow up against the riverbank alongside a railroad track.

ECSs provide a wealth of navigation information to mariners. Depending on user settings and other conditions, they can display the same features in different forms (compared with paper charts, which

display the same information consistently) and are more up to date than paper charts. ECSs provide more information about a feature by querying through a cursor pick. For mariners, only recently introduced to electronic charts it is imperative to ensure they understand all symbols and applicable advisories identified in the ECS.

Incorrect interpretation of and reliance on electronic chart display and information systems, compared to the use of paper-based charts, has again resulted in a casualty. This time an unusual one, a collision between a barge and a train.

the dcn .com.au 22  November 2022
ANALYSIS
Image supplied; BNSF via NTSB
Incorrect interpretation of and reliance on electronic chart display and information systems, compared to the use of paper-based charts, has again resulted in a casualty
Peter van Duyn, master mariner and maritime expert, Deakin University Aerial photo of the derailment of the two locomotives and eight hopper cars. Two additional hopper cars are submerged in the river

Funding seafarer welfare: what’s at stake?

Without legislative backing, Australian seafarer welfare sustainability stands into danger of long-term failure, David Hammond writes

AT THE TIME OF WRITING, THE state of long-term sustainable seafarer funding throughout Australian ports stands into genuine danger of being side-lined and failing without the force of primary legislation behind it to assure a positive legal requirement to protect necessary income for the day-to-day running of shoreside port welfare facilities and associated activities.

This will affect some 200,000-plus seafarers and 24,300 vessels entering the 56 ports and anchorages per year. It amounts to a potential annual financial investment for onshore welfare services of circa $26 million to $40 million of public monies.

Since the precedent set by New Zealand in 2021 with the update to the Maritime Transport Act 1994 amended through the Regulatory Systems (Transport) Amendment Bill, and the consequential policy development to use maritime levy funds for welfare funding to be introduced by 2024, the international stage has been set to alleviate long-term financial concerns for welfare organisations.

GETTING IT RIGHT

The New Zealand Labour Party’s 2020 Election Manifesto demonstrably highlighted that: “Labour will ensure that Seafarer Welfare Centres provide services to the level required by the ILO Maritime

Labour Convention 2006 by amending the Maritime Transport Act 1994 to enable the maritime levy to fund the services required for seafarers’ wellbeing”.

The consequences of not getting this change right will put back the opportunity for Australia to capitalise upon the New Zealand government’s emerging model potentially for a decade. This would be a travesty of inaction and a clear missed opportunity.

For Australia to be a leading state assuring long-term seafarer welfare funding and thereby assuring safe, secure and well-run maritime supply chains, the focus is now on three key factors that will ultimately determine its success, or failure.

First, is political will to drive change and deliver financial security to the maritime welfare sector. This requires active civil servant support to enact.

Second, is the need for unity of purpose in delivering unified recommendations from welfare providers without bias by or towards any one organisation, through equitable means testing as opposed to internal historic controls of financial allocations and spend.

Third, are the wider ramifications across the maritime industry for not legislating and thereby securing effective assurance and enforcement of sustainable funding which could be replicated globally for the

benefit of the seafarers, their families and ultimately, the coastal state.

SETTING THE PRECEDENT

Noting the significant amount of Australian public monies being identified for use, the alternative is that if welfare organisations are not able to unify, show clear ability to govern resources and closely work together on an equitable basis, the government may otherwise put the financial distribution of maritime levy funds out to tender for competent third parties to administer, reflecting the need for public transparency and accountability.

In short, alongside political will, Australian seafarer welfare organisations now hold the main responsibility for the success or failure of this initiative.

It is they who will set the precedent in the Australian context of future seafarer well-being, and which requires a legislative update to assure success.

the dcn .com.au 23 November 2022  Motomoto sc; Image supplied INDUSTRY OPINION
David Hammond, chief executive officer, Human Rights at Sea

Keeping up with decarbonisation

After avoiding meaningful action for so long, Australia will now need to work on a sharper emissions-reduction trajectory to reach the common goal of net zero by 2050, MIAL CEO Angela Gillham writes

THE SHIPPING INDUSTRY IS somewhat unique, in that the reach of International Maritime Organization regulations extends to shipping activity on Australian shores. As such, new energy efficiency regulations that aim to reduce the carbon intensity of ships will enter into force from January 2023 and will apply to international shipping operating in Australia.

NEED FOR POLICY

One way in which operators can reduce the overall carbon intensity of ships is by using biofuels or renewable diesel. However, Australia does not have the necessary policy and regulatory settings in place to incentivise scaled-up production of biofuels and help to bridge the considerable price gap between conventional fuels and bioenergy, which is a major barrier to uptake.

intensity of the international fleet and individual ships through technical and operational means.

Ships will be required to be fitted with equipment that limits the possible power output to meet an efficiency baseline (known as the EEXI, or Energy Efficiency Existing Ship Index) according to ship type. Large vessels are also required to gradually reduce carbon intensity per tonne of transport work completed, continuously over time (known as the CII, or Carbon Intensity Indicator).

Most controversial of the two measures is the CII, which uses information ships are already reporting through the IMO Fuel Oil Data Collection System (DCS), a regulation introduced in 2019. The CII requires large ships to report their annual fuel consumption to IMO, and vessel cargo capacity to calculate operational efficiency.

may have minimal port development and shoreside equipment, and natural shallow bathymetry may require vessels of a specific shallow draft design to avoid extensive dredging. In these circumstances, the transport work cannot be completed by other ship types or modes of transport.

The CII calculation places vessels into a category from A to E. Categories A to C are the least carbon intensive, and E and D vessels are the most carbon intensive, or least efficient. Vessels in category E must develop and implement a corrective action plan that demonstrates measures that will be taken to increase energy efficiency, and vessels in category D for three consecutive years must do the same.

Unfortunately, due to their inherent characteristics and specific design and utility, many of these D and E vessels have very few options available to them, other than ultra-slow steaming, which will, in many cases, impact on the overall productivity of an operation.

THE NET-ZERO FUTURE

Good intentions and corporate ESG principles will only ever go a small way to reducing emissions. We need strong governments to make brave policy decisions that are in the nation’s long-term interest and that will help to ensure these fuels are available to the industries that need them.

Pressure on the industry to decarbonise has intensified with the new IMO regulations intended to drive shipping carbon intensity down and monitor for progress in the area.

NEW INTERNATIONAL REGULATIONS

The new regulations, designed to ensure the industry meets the carbon reduction targets outlined in the IMO Initial Strategy, focus on reducing the carbon

ONE SIZE DOES NOT FIT ALL

Shipping is highly energy efficient when carrying very large volumes of cargo over long distances, however not all seaborn transport has these characteristics, and factors such sea state can significantly affect the operational efficiency of ships.

Some trades or shipping routes require shallow draft vessels with smaller cargo capacity and shorter voyages between cargo loading and discharge. Some voyages, for a raft of reasons, also include longer waiting times and onboard cargo handling equipment with an additional energy requirement.

These trades are needed for a multitude of environmental, social, and economical reasons. Remote and isolated areas

Looking further into a net-zero future, policy and regulatory settings will be critically important in helping to drive investment in the manufacturing of zerocarbon fuels in Australia.

There will be an extraordinary demand across the economy for zero-carbon fuels to power the hard to abate shipping, aviation and manufacturing sectors, in addition to the renewable stationary energy requirement to decarbonise our everyday lives.

the dcn .com.au 24  November 2022 MIAL INDUSTRY OPINION
Looking further into a net-zero future, policy and regulatory settings will be critically important in helping to drive investment in the manufacturing of zero-carbon fuels in Australia.
Angela Gillham, CEO, MIAL
WHATSAPP SEAFARER HELPLINE +61 439 382 204 1800 554 654 FREE CALL 24/7 NATIONAL HELPLINE Supporting maritime workers & their workplace wellbeing for more than ten years www.hunterlink.org.au HunterlinkEAP hunterlinkeap

Risk, hard work and conflicting ideas are realities of modern cadetships, but the right attitude can make them valuable experiences for trainers and trainees alike, Abby Williams writes

FAST FORWARD

the dcn .com.au 26  November 2022
View from the ICS Silver Lining

When Captain Ian Anderson was announced winner of the Young Achievement Award at the 2021 DCN Shipping & Maritime Industry Awards, he did not cross the stage to receive his trophy. Mr Anderson was on a ship that night, doing the seafaring work he was being commended for.

Mr Anderson has worked in the Australian merchant navy for more than 16 years. He is the captain of general cargo ship ICS Silver Lining, which sails predominantly between Australian ports of Port Pirie, Hobart, Burnie, Bell Bay and Whyalla. Prior to his current job, Mr Anderson spent more than 14 years in the offshore oil and gas industry.

Speaking with DCN, he traced his maritime career back to pre-sea training at the Australian Maritime College when he was 19 years old.

“The reason I chose a career at sea is because it was something I grew up around,” he said.

“I was part of the navy cadets when I was in my teenage years. My father was in the Royal Australian Navy for around 35 years, so after taking a gap year from high school, it was a pretty easy decision to make to enter seafaring.”

Throughout pre-sea training, Mr Anderson was surrounded by peers in their late teens and early twenties. That didn’t last long. He recalled being the youngest by far when he went to sea and missing out on a lot of 21st birthday parties.

“When I started going to sea, I was most definitely the youngest person on the ship, sometimes by 15 years,” Mr Anderson said.

“It all depended on the ship I worked on at the time, but I was always the youngest by a long, long shot. It’s only in the last three or four years where I’m starting to see that I’m not the youngest on the ship anymore.”

ACCEPTING NEW PATHWAYS

Mr Anderson said his cadetship experience was largely a positive one. He described an onboard culture that was welcoming of young talent, apart from occasional disapproval – and in some cases dislike – from a captain or chief mate. But Mr Anderson said it wasn’t him they refused to accept; it how he got to where he was.

“It was due to the career path I was taking and their dislike for there being a cadetship program rather than an understudy program where integrated ratings (IRs) would work up through the deck and through the ranks. They didn’t like the shortcut avenue.”

Although Mr Anderson is confident the disagreements weren’t personal, he considers difficult encounters an important part of adapting to life at sea, and indeed any work environment.

“I do think that is actually, in hindsight, a good experience. It’s good to, in your 18 months sea service, experience captains that don’t like you or you don’t like them, because it’s a life experience to learn you can’t get along with everybody.”

On the flip side of failure to accept the new career paths available to young mariners, there are many captains who embrace the cadetship option. But there is a problem: eagerness to welcome a cadet onboard does not always mean captains and shipmates know what to do with them.

According to Mr Anderson, those who find a cadet in their care often struggle with outlining appropriate tasks, duty hours, mentoring opportunities and even navigational instruction for a newcomer.

He said lack of guidance is resulting in a lot of missed opportunities on both sides.

REFINING CADETSHIPS

Mr Anderson was receiving cadets onboard his vessel around 10 years after he completed his own cadetship. He soon realised the training issues he experienced a decade earlier had not improved.

“It was quite disheartening to see how much of a failure a deck cadet program can be when there’s so much potential for there to be a better standard of training,” he said.

A deck cadetship involves 18 months of sea service. Mr Anderson said he spent a majority of that time being a trainee IR.

“I spent most of my days chipping and painting, rather than spending time on the bridge navigating.

“It was just because some people didn’t know what duties or jobs to give a cadet at the time. When I was a cadet, I certainly wasn’t going to stand up and say, ‘Hey, this is what I’m meant to be doing’, because I’m a young 20-year-old kid, and I’m speaking to these big, bad seafarers. For me to see that years later, it was quite upsetting to see.”

During his first command, Mr Anderson welcomed a trainee onboard who had, by that stage, completed around 16 months of sea service.

“I said to her, ‘How many times have you actually steered a ship in and out of port?’ And she said, ‘None’. And I thought, ‘How could someone who has completed 16 months of sea service not have manoeuvred a ship at a wharf yet?’ What are they doing with their time?”

Mr Anderson said it is understandably frustrating for a captain to receive a fresh second mate who can’t steer properly, because they need extra supervision.

“I had [the cadet] shifting the ship up and down the wharf a few times. She was clearly good at it, so I let her depart port. I just said, ‘Okay, you’re good enough at it, you’re supervised, nothing will go wrong’. And I let her manoeuvre the ship out of port.

“It meant the world to her that someone was actually letting her drive the ship. I don’t know why people aren’t letting trainees do this, the whole purpose of having one onboard is to train them.”

TRUST ISSUES

Deficiencies in training often come down individual opinions and different ideas on how a trainee

the dcn .com.au 27 November 2022  Ian Anderson
YOUNG ACHIEVERS

should be managed, according to Mr Anderson. He acknowledged mistakes at sea can be dangerous but said little can go wrong if a cadet is offered proper guidance and supervision.

“Some captains may have a trainee onboard the ship and not want a trainee, and that’s fair enough; I understand,” Mr Anderson said.

“It’s a matter of only being five or six steps away from them, giving them enough space to concentrate on their own task, and if you monitor the gauges on the bridge and see that something’s not quite right, as a captain, you should step in immediately. You would do that whether it’s a deck cadet, a second mate, or a chief mate.

“There is a trust element there, but you have to take risks sometimes to achieve better skilled navigators.”

While guidance should be an inherent part of any cadetship, examples of missed opportunities suggest guidance is also necessary for those doing those supervising cadets.

“It could be … to create a standardised way of training people so that, if a trainee goes to a ship where the captain and the crew want that trainee, they know what to do with the trainee, and they are given some guidance on what needs to be done so they’re not lost when they try to motivate or mentor the trainee.”

EVEN YOUNGER ACHIEVERS

One of Mr Anderson’s accomplishments as a young achiever is his role in developing a program that exposes school students to the maritime industry and the various career options within it.

A volunteer for charitable organisation Offshore & Specialist Ships Australia, Mr Anderson helped build OSSA’s School Promotions Program. It involves visiting schools with presentations backed up by

a wealth of online resources designed to guide interested students into maritime roles that align with their passions and studies.

“We didn’t just create this program for the sake of seafaring careers or for the sake of telling people to have a job at sea,” Mr Anderson said.

“What it ended up evolving into was a program where we just want to educate people in the fact that maritime exists in Australia.”

A significant hurdle OSSA has faced in delivering the program is the initial phase of arranging to visit a school when the point of contact doesn’t know what the maritime industry is.

“The biggest challenge we have is reaching out to these schools. Getting contacts for the schools, getting in contact with the career advisors and letting them know what we can offer, because they don’t know we exist. We don’t know how to get in contact with them.”

Mr Anderson said he usually finds himself debunking the misconception that the merchant navy is the Royal Australian Navy.

“That’s what I try push with this school program. It’s not just about pushing people into jobs, it’s just educating people in the jobs available, so they know it exists. So, when they see a ship sailing through Sydney Harbour, they [recognise it as] a merchant ship.

“In years to come with the program, I don’t expect everyone to know about maritime straight away, but in 10 years’ time, maybe that student we spoke to at school last year will remember [and] they won’t look blankly at you in the face and go, ‘What’s maritime?’”

WHAT IT TAKES

There is an overwhelming call for young talent in the maritime industry right now, and while Mr Anderson hopes to see more young people take up roles at sea, he is mindful of a fine line between a shortage of recruits and an influx when there aren’t enough jobs available.

“It’s really hard to speak to [a young person considering a career in maritime] and assure them that they will get a job at the end of their cadetship,” Mr Anderson said.

A cadetship is a three-and-a-half-year commitment, and Mr Anderson assures them seafaring is a legitimate career option because he is confident there will be more jobs available in the future. But for now, he offers his encouragement with a trace of caution.

“With the limited jobs that are available, it’s very competitive to get a sponsorship. No company wants to invest in someone who’s turning up late to class. If you’re going to go to AMC, you have to be the person who shows a legitimate interest in working at sea. Study hard, ask good questions, and it will drastically increase your chances of gaining employment.

“It’s definitely worth pursuing a career at sea. It’s not for everybody – you have to take the good with the bad. There are elements like seasickness, but … there are perks to working at sea.”

the dcn .com.au 28  November 2022 YOUNG ACHIEVERS
Ian Anderson
Ian Anderson at the helm
Making marine operations safer and more efficient, every time, everywhere

Inspiring future leaders

Ashleigh Johnson is CMA CGM and ANL’s state manager for Tasmania. Her freight and logistics career began with a placement at TasRail while studying at the Australian Maritime College. As her graduation loomed, an opportunity came up to join ANL in Launceston as a junior customer service officer. She progressed quickly from placing stationery orders for the shipping company to managing its Tasmanian business.

“It’s as much an advocacy role as much as anything, to make sure that the local customers have a point of contact that they can trust,” she told DCN. “It’s something that our customers in Tassie really love, to be able to have someone they can call who speaks Tassie and understands the local market.

“We have a really great customer base down here.”

Ms Johnson said she had always aspired to become a manager. She will complete her ninth year with CMA CGM and

ANL in November, becoming state manager before she turned 30. Now, at 31 years old, she is the youngest member of the Tasmanian team by around 18 years.

Earlier in Ms Johnson’s career, as a young woman in leadership outnumbered by older colleagues –predominantly male – Ms Johnson was able to foster confidence in her own capabilities. She recalls a negative voice challenging her authority to lead, but said the voice was her own.

“The support from the business and from my peers and customers was fantastic, but I did have this sort of imposter syndrome for a period there, going, ‘Am I old enough or experienced enough to be doing this?’”

“But we have such a fantastic team that I don’t really get that anymore. Sometimes I do – little bits of it – but you just sort of quell the negative voice. It’s all in your head.”

SILENCING THE NEGATIVE VOICE

Ms Johnson is not the only young leader who has overcome internal barriers. Blake Kelly is NSW

the dcn .com.au 30  November 2022 YOUNG ACHIEVERS
Aleksey Sagitov ; Ashleigh Johnson
As a young person, you don’t have to have your whole life figured out perfectly, when you’re at university or even in the years after.
Ashleigh Johnson, CMA CGM and ANL DCN sat down with three finalists of the 2021 DCN Shipping & Maritime Industry Awards for a candid chat about leadership, elements of a supportive workplace and overcoming internal barriers

manager for customer development and experience (warehousing and last mile logistics) at Mainfreight. He joined the freight company as part of a graduate program. He now manages a team of around 15 customer development executives.

Mr Kelly told DCN he remembers a time, not long ago, when shipping, supply chains and logistics were barely on his radar.

“It wasn’t something I would say was at the front of my mind, especially when a lot of friends [were] going into commercial, corporate banking, consulting and everything like that,” he said.

But a major transition into leadership destabilised Mr Kelly’s confidence to a degree. He also faced the challenge of overcoming personal barriers.

“Anyone moving into a leadership position –especially when you’ve got team members that might be a lot older or more experienced or more knowledgeable in certain areas – can definitely face imposter syndrome,” he said.

“But at the end of the day, some of the ways that I’ve tried to work through that is understanding that I have been given the opportunity for a reason.

“I kind of find it’s having the mindset that everything will work out as long as you’ve got the determination and put in the hard work as well.”

NURTURING YOUNG LEADERS

Mr Kelly said Mainfreight’s dedicated program for graduates means it has a younger team across the board. The company has developed a structured mentorship program which aims to pair new recruits with a mentor during their first six months on the job. Mr Kelly said he thought beyond the list of potential mentors the company had compiled and aimed a little higher.

“I saw that as there was a list, so if there was a list I have a choice. I went off the list and I just went straight to one of the executives,” he said.

“I think they found that me having the initiative to hit them up and seek guidance resonated well.

“I found with their support and their guidance ... that there’s been a pretty smooth transition for me personally, and it’s allowed me to align my direction and brainstorm different ways to navigate the supply chain industry and Mainfreight.”

Mr Kelly said mentorships offer important advantages and a sense of comfort for young leaders, particularly when the complexity of a company and its operations becomes daunting.

“I found it was quite beneficial to have someone to align myself with on identifying what my strengths were, what my interests were, what opportunities were worth considering or taking and what were some of those additional areas of skills that if I wanted to get to, say, a next role,” he said.

“If I ever came across any complex problems, it was always good to be able to turn to someone to seek insight on how they would suggest [handling it].”

Even outside a formal mentorship, Mr Kelly encourages other young achievers to turn to other leaders or experienced colleagues for advice and support. A lesson he learned from his mentor was to set clear personal objectives of what he wanted to do and where he wanted to go.

“It’s beneficial to share those [goals] with others, because you’ll start to find people rally around you and support you and potentially opportunities will open up, but you do need to have that direction.”

EMBRACING OPPORTUNITIES

The value of supporting new recruits in the shipping and logistics industry is clear, but young leaders also recognised the importance of exposing the industry to people outside its well-established sphere.

Chanel Gibson is pricing manager in the regional ocean management team at Maersk. She told DCN she came to the company with little knowledge of shipping or logistics. Her background is in engineering.

“As a pricing manager, I’m constantly challenging the status quo, so I’m always asking ‘Why’ and looking at the way we work, and I’m also involved in several projects as well to improve data visibility, to really help us make more informed decisions,” she said.

“I love spending hours in excel and finding insights about data and looking at new ways of doing things.”

A job offer from Maersk landed Ms Gibson in the company’s admin department as a receptionist. Reflecting on nearly six-and-a-half years with the company, she said she is grateful for the opportunities to build her knowledge of shipping and logistics. Her passion now is digital transformation in the industry.

“I look at what has kept me in the industry all these years, and I think it’s the dynamic nature,” she said.

“There are no two days that are the same – it’s never boring, there are always things going on, always

the dcn .com.au 31 November 2022
It’s really exciting … to continue to develop as the industry develops and see the impact of the digital transformation.
Chanel Gibson, regional ocean management, Maersk
Chanel Gibson

changing, and I think it’s really exciting … to continue to develop as the industry develops and see the impact of the digital transformation.

“I’m really fortunate to be part of that transformation because that is something that personally I find really interesting and like to be a part of. It’s a really great career,” she said.

THE RIGHT ENVIRONMENT

Ms Gibson said her

experience as a young person in the industry has been enriched by people in the company who have surrounded her with support.

“It’s just an absolutely amazing environment to be a part of,” she said.

“There is such a value placed on fostering the young talent and building diverse teams as well, and in those cases that diversity with everybody bringing a unique perspective as well.”

“I think my own story is a testament to this; so not coming from just an engineering background, but having that talent recognised and [being] given the opportunity to work across all those different functions of the business.

“I think it’s not only made me more accomplished as an individual, but I can also view the situation from a different perspective.”

Considering the shipping and logistics industry more broadly, Ms Gibson said she has seen a strong effort to recruit and support young talent, though recognition of women is still an area for improvement.

“In my opinion it’s still viewed as a male dominated industry, but in my time at Maersk I’ve been able to see the first female promoted to our Oceania leadership team, which now several years later is dominated by women. It’s really great to see, but as an industry, my opinion, there is still a little bit more work to do.”

EXPOSURE, FAST

Ms Gibson said the supply chain has received organic exposure over a couple of challenging years, which has helped the younger demographic better understand global trade and the career paths it supports. She said

shipping should also be considered an ideal opportunity for those hoping to make an impact on the world.

“It’s pretty cool to enable the global trade and move the essentials like food and medicine to where they’re needed, and I find it very special to know you’re a part of something like that. I can’t stress enough the rapidly transforming industry – it’s a really great time to join.

“It’s just continuously evolving, and the more people to join us on this journey, the better.”

Ms Johnson of CMA CGM and ANL took a similar perspective, highlighting the need to better expose the demographic to the job opportunities across the entire transport and logistics industry – road and rail freight included.

“As a whole, there are certainly going to be some challenges that are already here with us now and are certainly only going to increase in the next couple of years, like recruiting and training young truck drivers, forklift drivers, people to drive trains,” Ms Johnson said.

“There is definitely some difficulty around the shortage that we’re seeing in those sorts of roles in the Tassie market and in Australia as well. There’s a lot of work going on to try and get the attention of kids in schools and go, ‘Driving a truck is a pretty great job’ and driving trains [and] forklifts.

“The ships will continue to get bigger; we can build the ports and the depots and do all these things, but it’s also about that final mile, getting it from the port to where it needs to go to. Every piece has to work together, otherwise the system falls apart.”

A WORD OF ADVICE

Ms Johnson left DCN with a message for new recruits, young leaders, and those considering a career in maritime and logistics. Her advice was to not be afraid to reach out and ask for help.

“I have quite a strong policy, there are no silly questions. I even ask some myself sometimes that sound really silly,” she said.

“As a young person, you don’t have to have your whole life figured out perfectly, when you’re at university or even in the years after. I was lucky that I fell into a role that I love, and a company that I love to work for.

“That keeps me challenged, but there’s nothing wrong with coming out of university if you’ve studied maybe a marketing degree, you do a year of that, and you go, ‘That’s not for me’.

“It’s never too late to make a change.”

the dcn .com.au 32  November 2022 YOUNG ACHIEVERS Blake Kelly
Some of the ways that I’ve tried to work through [imposter syndrome] is understanding that I have been given the opportunity for a reason.
Blake Kelly, Mainfreight
Blake Kelly has earned several awards from Mainfreight

The the

BOTTOMLESS PIT & PADDOCK

Regardless of challenges, the world continues to view Australia as a reliable supplier of mineral and agricultural commodities. The nation’s bulk trades and ports continue to prosper accordingly, as Dale Crisp reports

the dcn .com.au 34  November 2022

There’s a kind of relentless and resilient optimism about the future of Australia’s raw materials, whether they be diggable or edible. Domestic or international, demand is not going to dry up anytime soon though peaks and troughs will continue to challenge from time to time.

A key component of the nation’s resource and commodity success is efficient transport and logistics. Bulk ports and the shipping that uses them plays a vital role. While not everything runs smoothly all of the time, the bulk sector has not been subject to the vicissitudes that have plagued the containerised supply chain in recent years.

In the September 2022 edition of the Resources and Energy Quarterly, the Office of the Chief Economist forecasts export earnings will reach $450 billion in 2022-23, surpassing last year’s record of $422 billion. Earnings are then forecast to fall to $375 billion in 2023-24 (still the third highest ever).

In the main, prices have remained high and while demand for some minerals has been crimped by a net drop in world supply of energy needed for smelting and processing purposes, at the time of writing the Chinese government was again taking action to support its domestic economy, meaning another spike in iron ore price and demand.

Meanwhile, the Australian Bureau of Agriculture and Resource Economics projects the value of the nation’s agricultural exports will reach a record $70.3 billion for 2022-23 (NB, forecasts were prepared before recent floods hit eastern and southern cropping areas).

Export volumes need infrastructure capacity, and there are projects a-plenty underway from one end of Australia to the other.

WEST PILBARA ORES NEAR LIBERATION

In Western Australia, there’s a solution in sight to the decades-long conundrum of economically accessing and exporting “stranded” iron ore deposits in the West Pilbara, with Mineral Resources and partners taking the final investment decision to proceed with the Onslow Iron project.

The project, formerly known as Ashburton Iron, is 150 kilometres east of Onslow. It is owned through an unincorporated JV (Red Hill Iron Ore JV) between MinRes, the project manager, Baowu, AMCI and POSCO.

MinRes describes Onslow Iron as one of the state’s largest ever iron ore projects and a company flagship as it transitions to “low cost, long life operations with compelling project economics through commodity price cycles”. Stage 1 consists of JV tenements which host mineral resources of 820 million tonnes, and 537 million tonnes in ore reserves.

“MinRes will deliver 100% of the mining services to the project under the largest mining services contract in Australia. The contract will draw on our innovative and proprietary suite of mining services assets including our NextGen crushers, autonomous 320 tonne jumbo road trains, and 20,000 tonne

transhippers, which are designed to process and move bulk commodities at a lower cost and with a reduced environmental footprint. The project will be dust free from pit-to-port,” the company said.

“We will also build, own and operate all project infrastructure including a private, 150-kilometre haul road, port infrastructure, transhipper wharfs and two Onslow Resorts which will accommodate the project’s workforce.”

The transhippers will operate from the port of Ashburton to load capesize bulkers moored offshore.

With FID confirmed at end August, the project is on track to meet key milestones, MinRes said. Early works are underway as part of the development phase, with all equipment expected on site by June 2023 and first ore on ship targeted as early as December 2023.

At time of writing MinRes had not released full details of the port logistics and transhipper operations, saying only that details were still being fleshed out.

However, the company, through subsidiary Minres Marine, is reported to have purchased three highpowered towing vessels in the past 12 months: firstly the Rampage 5000-type offshore/terminal tug Ares, acquired from Norwegian owners last year, and more recently two further offshore/terminal tugs, Uniwise Songkhla and Aline B. All three were reported idle in Indonesian waters in mid-October.

Separately, Rio Tinto and Wright Prospecting in mid-October reached agreement to jointly develop the Pilbara’s Rhodes Ridge, said to be home to one of the world’s largest and highest quality undeveloped iron ore deposits, with a total resource of 6.7 billion tonnes – approximately one-third of Rio Tinto’s existing resource base.

HAWSONS, FLINDERS PARTNER FOR MYPONIE

Elsewhere on the iron ore front, Queensland-based Hawsons Iron in June signed a non-binding MOU with South Australia’s Flinders Ports for the potential development and operation of a new port at Myponie Point on the Yorke Peninsula, for the export of 20 million tonnes per annum of magnetite concentrate.

Hawsons – which claims to have the “world’s best iron ore product” – is undertaking a new banking feasibility study to increase the proposed output of the project from 10 million tonnes per annum to 20 million tonnes per annum after investigations found “expected superior economics and investment appeal” based on a mineral resource upgrade to 400 million tonnes.

The Hawsons Iron Project is actually in New South Wales, about 60 kilometres south-west of Broken Hill. Hawsons proposes to build a slurry pipeline from the mine site to the new deepwater port on the eastern side of Spencer Gulf, from which it will ship the output from what it said “has been identified by independent analysts as the world’s leading undeveloped high quality iron ore concentrate and pellet feed project”.

Hawsons MD Bryan Granzien said the MOU envisaged that Flinders Ports would finance,

Christoph Schaarschmidt BULK PORTS & TRADES
35 November 2022

A new bulk port may rise on the Eyre Peninsula

construct, own and operate the Myponie Point Port, therefore reducing the Hawsons Iron project’s capital requirements.

“There is also an exciting opportunity for Hawsons to participate in the future growth of the port as its ‘cornerstone’ customer,” Mr Granzien said. At the time of the MOU signing the company said Myponie Port was expected to be ready to start exporting by the second half of 2024.

Flinders Port Holdings CEO Stewart Lammin said the MOU with Hawsons was another example of their commitment to facilitating large-scale export projects from South Australia, including exploring the development of new ports where necessary.

In early September the South Australian Government declared Hawsons an impact-assessed major project subject to a state-run process and determination of assessment requirements towards Environmental Impact Statement (EIS) obligations. “Significantly, this declaration reflects the importance and scale of the Hawsons Iron Project within South Australia and potential as the global steel industry aggressively pursues pathways to decarbonise,” Mr Granzien said.

The South Australian declaration follows the federal government’s decision in April to renew the project’s status as a major project for three more years in recognition of its potential to supply high-grade quality magnetite for the production of low emissions steel. The NSW Department of Planning and Environment has also similarly declared the project a state significant development.

However, in mid-October Hawsons advised it had “prudently” slowed the completion of the BFS “to examine escalating capital expenditure costs and all options to progress the project.

“The BFS will not be completed by the end of December 2022, but we have been left with no other choice given the current state of global capital markets and world economy,” Mr Granzien said.

“We absolutely believe in the value of our project as a source of high-grade magnetite concentrate and are fully committed to examining all options available to us.”

GRAIN PORT FLOATING ON EYRE

Development of a $250 million “grain first” port 70 kilometres north of Port Lincoln on South Australia’s Eyre Peninsula has moved a step closer after proponents Peninsula Ports secured new financial backing.

Commodity trader Aria Commodities, which already has investments in Western Australia, will be the principal funder after taking a major shareholding in PP. Free Eyre, a consortium of 488 farmer shareholders and the former parent company and proponent of the new Port Spencer, will remain a shareholder.

PP chair John Crosby said Aria Commodities was expanding in Australia and saw Port Spencer as the ideal location to support Eyre Peninsula farmers as they export their high-quality grains throughout the world.

“Once the deep-water port is built there will be significant benefits for the region, and we hope it will provide an economic boost to not just the Eyre Peninsula, but to the state as a whole,” he said.

There have been serious safety concerns in the Port Lincoln community about the increasing number of trucks carrying grain travelling through the city’s streets to access its port since the railway line grain service ceased in 2019. Mr Crosby said once the Port Spencer facility was operational, it would significantly reduce truck movements by providing an export alternative away from the city.

The planned new port, 20 kilometres north east of Tumby Bay, will have the capacity to store 800,000 tonnes of grain and is planned to be operational in time for the 2024 harvest. PP said the port has a number of geographic advantages: deep water (14 metres depth at 300 metres offshore) overcoming the need for barging; it is protected from the predominant west and southwest winds while onshore the land slopes gently to the location of site bunkers behind a protective hill.

the dcn .com.au 36  November 2022 BULK PORTS & TRADES Peninsula ports
Once the deep-water port is built there will be significant benefits for the region, and we hope it will provide an economic boost.
John Crosby, Peninsula Ports

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As a purpose-designed facility, PP said, Port Spencer enjoys a number of cost advantages and operational efficiencies. The bunker grain storage is located less than 300 metres from the port area – allowing the use of conveyers for grain transfer. Four 12,500 tonne silos allow the assembly of ship cargoes and on-site blending to meet customer requirements.

These factors contribute to Port Spencer’s low capital cost and the claimed lowest (world-competitive) operating cost in Australia. Mr Crosby said growers stand to save up to $20/tonne in farm-to-port costs.

PP believes Port Spencer is “a unique opportunity to tap into the world food market via a global gateway linking the plentiful supply of clean, green Eyre Peninsula-grown grain with growing demand from advancing Asian and Middle East consumers”.

Port Spencer is planned to be a multi-commodity, multi-user port and while its initial build is as a grain handler, it has been designed “for maximum operational effectiveness and efficiency”, and the purchase of an additional 283 hectares adjacent to the site will now provide the ability to separate commodities and loading requirements.

Best-in-class grain loading facilities will provide up to 30,000 tonnes per day receival capacity; 50,000 tonnes of silo storage for fast, un-interrupted ship loading; and 2400 tonnes per hour peak ship loading capacity.

The wharf will have the ability to accommodate a vessel on both sides with relatively minor modification and could carry a second conveyor or pipe if required. “Therefore, whilst it is not currently part of our plan, Peninsula Ports is open to exploring opportunities for other bulk commodities to move through the port if

the business case justified it and the required approvals were in place,” the company said. Feasibility studies and approvals would however need to be paid for by the proponents, not by growers.

The Port Spencer Project has major project status with the South Australian Government, and PP enjoys a good relationship with the Barngarla people and an Indigenous Land Use Agreement (ILUA) is in place. The project is “shovel ready” with all of the necessary environmental and planning approvals in place from the SA Minister for Planning.

It is anticipated the facility will be completed and commissioned ahead of the 2024 harvest.

Meanwhile, earlier Eyre Peninsula grain chain disruptor T-Ports has turned its attention to the Yorke Peninsula, having announced in August it was on track to receive grain at its new Wallaroo bunker site ahead of the 2022 harvest and opened shipping capacity at its transhipment port. The facility will have steel silos with 20,500-tonne capacity and a rock causeway with grain conveyed to a ship loader serving the transhipment vessel Lucky Eyre. A nearby site will have six bunkers with a capacity of 240,000 tonnes.

CEO Scott McKay said feedback from Yorke Peninsula and mid-north growers has indicated strong support for new competition in the supply chain and the company already had seven buyers on board at its Wallaroo and Lucky Bay sites for the 22/23 harvest.

“We’ll be using Lucky Eyre for shipping grain from Lucky Bay and Wallaroo and will look to manage logistics accordingly,” he said.

“We expect shipping from Wallaroo to commence later in 2023 and have been in regular communication with our clients to update them on the timelines.”

GRAIN PORTS CODE NEEDS REVIEW

The added export capacity will gladden the hearts of grain growers – and the Australian Competition and Consumer Commission.

The Commission’s recent review of the logistics of the record grain harvest in 2020-21, Bulk grain ports monitoring report – industry update, complemented the Bulk grain ports monitoring report – data update, released last December.

The reports, produced annually, detail the nature and concentration of export activity and capacity allocation at Australia’s bulk grain port terminals as part of the ACCC’s monitoring role on the effect of further deregulation of the industry and greater competition that has

the dcn .com.au 38  November 2022 BULK PORTS & TRADES
Ievgen Postovyk
using Lucky
shipping
and
We’ll be
Eyre for
grain from Lucky Bay and Wallaroo
will look to manage logistics accordingly. We expect shipping from Wallaroo to commence later in 2023.
Scott McKay, T-Ports

ACCC consultation with the bulk grain export industry has shown that grower representative groups and some exporters generally support regulation of bulk grain export supply chains, but port terminal operators largely do not. Grain exporters are, however, concerned about a lack of transparency in the way that port operators allocate capacity to them.

A key issue the ACCC consulted on was the suitability of the Bulk Wheat Code of Conduct, which is the regulation that ensures bulk wheat exporters all have fair and transparent access to port terminal services.

“The bulk grain export industry has undergone some significant changes over the last five years, so we need to consider whether the current regulation of exporter access to port terminals is still fit for purpose,” ACCC deputy chair Mick Keogh said.

“In recent years we’ve seen an increase in the number of port terminal service providers, a higher percentage of non-wheat grain bulk exports, and, at some ports, an increased market share of grain shipments by exporters associated with companies that operate the port terminal facilities.”

“While the grains industry has mixed views about the effectiveness of the current code, it’s clear it isn’t working optimally and a review is needed. The ACCC is especially mindful of the regulatory burden the code imposes on new port terminals,” Mr Keogh said.

The Australian Government first reviewed the code in 2017 and is currently required to commence a second review this year. The ACCC believes that, given developments in the market over the past five years, government and industry would benefit from a detailed review that considers whether the current regulatory approach is fit for purpose, and what changes are needed.

Consistent with the record year for bulk grain exports in 2020-21, port terminal service providers told the ACCC they experienced unprecedented demand for capacity.

“The massive harvest in season 2020-21 resulted in the largest ever volume of bulk grain exports, so it was a good test of both port capacity and the impact of reduced regulation in these markets over the last few years,” Mr Keogh said.

Several exporters raised concerns about access to port terminal facilities in 2020–21, and some of the smaller exporters said capacity constraints at established port facilities forced them to seek access at new ones or rely on mobile ship loaders.

But, some exporters say mobile loader operations are not substitutes for fixed-loader operations, and they questioned their value outside of high-demand years when capacity at larger facilities is constrained.

Some grains industry stakeholders have recently called for the ACCC to undertake a broader grains market inquiry. “It is a matter for the Australian Government to determine whether it wishes to direct the ACCC to conduct such an inquiry,” the commission notes.

NEW SHIPS ON THE FLY

P&O Maritime Logistics has expanded the fleet of unique vessels servicing the Ok Tedi copper, gold and silver mine in the Western Province of Papua New Guinea.

Ore is open-cut mined at Mount Fubilan in the Star Mountains, processed on site and the concentrate transported by pipeline to a stockpile and ship-loading facility at the port of Kiunga on the Fly River, From there, Dubai-owned POML’s fleet of hybrid bulk/container ships convey the concentrate 847 nautical miles downstream to the Gulf of Papua and Port Moresby Anchorage, to the silo/transhipment vessel Kumul Arrow for transfer to deepsea bulkers. The Fly River fleet then backloads containerised supplies and fuel from Port Moresby to Kiunga, including some cargoes shipped to Moresby by Ok Tedi Mining chartered vessel O.T. Ideaal from the company’s Brisbane logistics base.

With no road or rail links to the mine, POML has been a long-term partner in enabling the development of the mine, servicing the route since the late 1980s.

In September and October 2022, respectively, POML took delivery of the 5,600 DWT sisters Fly Enterprise and Fly Valiant , designed in partnership with Finland’s Wärtsilä Ship Design and built by China’s Fujian Mawei Shipbuilding. The bulk/container ships are 90 metres long and 23 metres wide, and can carry 229 TEU. POML said the vessels offer improved cargo lift, whilst also meeting the unique environmental requirements with a low wake profile to ensure that the communities and ecosystems on the Fly River are not impacted by the ships’ operations.

The addition of the vessels will bring the number of dedicated vessels POML operates in support of OTML to 11.

POML CEO Martin Helweg said the new vessels were part of the company’s long-term commitment to working with OTML, “where we are able to bring our expertise to transporting copper concentrate and general consumables through complicated marine environments such as the Fly River.

“We are continually striving to maximise the outcomes for our customers … our new vessels built and customised for operating on the Fly River are a testament to this approach: we put our customers first and invest in their success.”

Musje Werror, managing director and CEO of OTML, noted the importance of working with long-term, credible and competent partners to function in a remote and challenging location, and it is important that we work with competent and credible partners to support our operations. “It also provides the opportunity for more cadets from Western Province to get seat time training under P&O Maritime Logistics. We look forward to continuing this partnership with the addition of the new vessels to the fleet,” he said.

POML sponsors young seafarers through the PNG Maritime College, after which it offers cadet positions aboard state-of-the-art vessels, and it offers overseas training opportunities for its PNG staff base. This provides PNG residents with additional opportunities in the maritime sector and for exposure to new cargo opportunities – such as in Australia.

the dcn .com.au 39 November 2022
Image supplied
the dcn .com.au 40  November 2022 CUSTOMS BROKERS & FREIGHT FORWARDERS
Blue Planet Studio

A BRAVE, NEW, post-Covidworld

The customs broking and freight forwarding business is in a strange spot these days. Business is good, but staffing problems and issues with biosecurity delays at the border are causing pain across the industry, Ian Ackerman writes

While the worst of the coronavirus pandemic is seemingly over, ripples are still rocking boats in many sectors of the Australian economy, including in the freight forwarding and customs broking world.

Fortunately, freight rates look to be settling from the dizzying heights seen over the past three years. Air freight has stabilised, such that the Australian government ended the International Freight Assistance Mechanism at the end of June.

IFAM was an emergency support measure the government put in place to keep global air links open during the pandemic.

However, some problems persist – and an urgent issue many freight forwarding and customs broking companies are facing is around staffing.

the dcn .com.au 41 November 2022

International Forwarders and Customs Brokers Association of Australia CEO Paul Damkjaer confirmed that global freight and logistics markets are beginning to normalise after the past “frantic and rather traumatic” few years.

“But still, to a degree, the markets are disrupted. There are things like the war in Ukraine – who would have thought that could happen in a time like this,” he said.

“When these things happen, they have flow-on effects everywhere, creating a sense of unevenness in the world. It’s a perfect storm, these international factors, it’s not happening just in America or Europe –it’s happening everywhere.”

WHERE HAVE ALL THE STAFF GONE?

By all accounts, freight forwarding and customs broking businesses are facing fierce competition for staff, and an ageing workforce.

Freight and Trade Alliance head of border and biosecurity Sal Milici said salary expectations have skyrocketed over the past several years, exacerbating industry-wide staffing problems. He said the solution to this issue isn’t as simple as paying the market rate.

“If you bring someone into an organisation and pay them a higher salary, what does that do to the other people in the organisation that are on a lower salary,” he asked.

“What the new-hires are being paid may eventually come out, and that could cause issues with the existing staff.”

In an illustration of the labour situation, a search for the keywords “customs broker” on job search site Seek.com.au in mid-October turned up 156 jobs.

“I’ve never seen it like this before,” Mr Milici said.

“When I was on the front lines in the industry, before the pandemic, I would often search these sites and there would be only one or two jobs.”

Mr Milici told DCN customs broker annual salaries at the entry level could be around $80,000 to $90,000, with senior levels being in the low $100,000

range. But he in recent months had heard of people asking for up to $150,000.

“I daresay the salaries will keep going up,” Mr Milici said.

This issue of staffing highlights a pair of broader, and longer-running, issues plaguing the industry: the lack of a pipeline of new talent and a workforce that is getting older.

In a submission to a Productivity Commission report in 2021, IFCBAA said the average age in the customs broker workforce is 55, and those who retire are not being replaced by enough younger entrants.

The FTA’s Mr Milici said when he started working in freight forwarding and customs broking, there was a clear pathway into the industry.

“It was still document-based and you needed document runners – people who drive around, picking up documents, simply taking them from point A to point B,” he said.

“It was a very mundane job, but it was a brilliant entry into the industry – you got to learn so much. And then you progressed to doing basic tasks in the office, and onward you went. These roles don’t exist anymore; so that pipeline is gone,” Mr Milici said.

“At some point, something’s going to give. I don’t know what’s going to happen going forward if people keep retiring at the rate they are and there’s not the youth coming through to replace them.”

As a way to help mitigate these problems, IFCBAA provides diploma vocational training for young people who are new to the industry. The program focuses on school leavers who may not want to attend university.

“Not everyone wants to go to university,” Mr Damkjaer said. “We’re trying to help people have a a clear, defined path for a career in freight forwarding and customs broking.”

SHIPPING ISSUES

Outside of staff shortages, freight forwarding and customs broking businesses are facing other problems on the operational side. And this is where

the dcn .com.au 42  November 2022 CUSTOMS BROKERS & FREIGHT FORWARDERS Image supplied
Paul Damkjaer, CEO, IFCBAA
It’s a perfect storm, these international factors, it’s not happening just in America or Europe – it’s happening everywhere.

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organisations such as IFCBAA and the Freight and Trade Alliance do much of their work.

Mr Milici said the past 12 months have been busy on the advocacy front, with a focus on two clear areas: shipping and biosecurity.

“These are the two areas that have impacted our members the most,” he said.

“For a long time our focus has been to get a review from the Productivity Commission. We were pleased this was put in place by the previous Treasurer; we made quite a strong submission to it.”

The draft report on the Productivity Commission’s inquiry into Australia’s maritime logistics system was published in September.

“Most of what was in our submission was positively reflected in the draft report,” he said.

One issue that was reflected in the draft report, Mr Milici said, was that of terminal access charges.

“The issue of terminal access charges has been one of our main focuses for a long time. Container stevedores charge a fee to the landside transport company that accesses the ports – but the stevedores don’t have a commercial relationship with the transport companies at all,” Mr Milici said.

“We don’t have any issue with the stevedores charging fees to cover their costs. Our position is that they should be doing that with their commercial customer, being the international shipping lines.”

The Productivity Commission’s draft report deals with this issue in section 6.3. It points out that “neither the transport operators nor the cargo owners can directly shift their business if they are dissatisfied with the cost or quality of service from a container terminal operator”.

“Therefore,” the report says, “at each port, each container terminal operator is a monopolist supplying a service to many transport operators.”

Mr Milici said another area of advocacy FTA has been working on has been around Part X of the Competition and Consumer Act.

“Our submission was that it be repealed, and the draft recommendation of the PC report said that as well,” he said.

Part X regulates international liner shipping, and it allows exemptions from parts of the act, essentially allowing lines to engage in some cartel conduct.

In its draft report, the Productivity Commission recommended Part X be repealed.

“Like companies in other sectors, shipping lines should show that their agreements provide a net public benefit,” the report’s authors wrote.

However, Mr Milici said expectations need to be managed.

“The final report has yet to come out, and then government has to decide to act or not,” he said.

“There are many steps between here and reform ahead, but it is very positive where it’s at.”

ISSUES AT THE BORDER

And on the biosecurity side, Mr Milici called the situation a “crisis”.

“I think someone is going to pull me up one day on my use of the word crisis. Until that day comes, or service delivery is improved, it really is a crisis,” he said.

“We’re hearing stories of documents need to be assessed, they would normally be done within 24 hours, sometimes taking up to a week.”

Mr Milici outlined some of the issues freight forwarders are facing.

He said if the Department of Agriculture, Fisheries and Forestry needs to inspect a shipment, a booking needs to be made. He said a response used to come within 24 hours, but now people are waiting for up to five days for a response.

“When that response is finally received, that the next available inspection might be a month away,” he said.

“The costs are being felt by industry. The shipping lines have decreased the number of days to return a shipping container from 21 days to seven. If your container needs to be inspected, there is no way the shipping lines aren’t not going charge severe late fees.”

But in this arena, there have been some recent wins for freight forwarders and customs brokers, Mr Milici said.

“The department established a cargo service delivery rapid response team in late September,” he said.

We’ve been saying for a while that they need to look at fixing things. But, because there is a crisis here, the people we deal with are just unable to focus on any sort of reform when they’re putting out fires every day.”

Mr Milici said he applauds DAFF for establishing the rapid response team, which is focused solely on shortterm reforms.

Freight forwarders and customs brokers look to be in for another extraordinary year in 2023.

There is no end in sight for the tough labour market. But, while the pace of change in the government may seem glacial, there is progress towards greater efficiency.

And all the while the trade must flow and freight forwarders and customs brokers keep on doing what’s necessary to keep it going.

the dcn .com.au 44  November 2022 Image supplied CUSTOMS BROKERS & FREIGHT FORWARDERS
Sal Milici, head of border and biosecurity, Freight & Trade Alliance
At some point, something’s going to give. I don’t know what’s going to happen going forward if people keep retiring at the rate they are and there’s not the youth coming through to replace them.
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The year ahead

This month’s print edition of the Daily Cargo News includes a specific focus on the interests of licensed customs brokers and freight forwarders.

On that basis, I thought it may be of assistance to readers to identify a few selected issues which are likely to arise for licensed customs brokers and freight forwarders going into 2023.

IMPLEMENTATION OF NEW FREE-TRADE AGREEMENTS

As I write this article, current indications are that two of our proposed free-trade agreements are likely to come into effect on 1 January 2023, being the Australia-United Kingdom Free Trade Agreement (AUKFTA) and the Australia-India Economic Cooperation and Trade Agreement (AI-CETA)-the latter being the precursor to the more comprehensive FTA with India being the Australia-India Comprehensive Economic Cooperation Agreement (AI-CECA).

With likely commencement dates so close, there will be significant work to be undertaken by service providers to ensure that they are aware of the terms of the AUKFTA and the AI-CETA, the rules of origin before goods are entitled to preferential rates of duty under those FTAs, as well as other important requirements such as documentary requirements to claim preference and the restrictions on the way in which goods can be shipped to maintain their preferential status.

I have already provided commentary on the terms of both the AUKFTA and the AI-CETA at continuing professional development forums conducted by the International Forwarders and Customs Brokers Association of Australia, as well as in information sessions for the Food and Beverage Importers Association (FBIA) and for clients. I am currently involved in preparing additional education and assistance for members of IFCBAA and the FBIA providing more details on the operation of the FTAs so that importers, exporters and their service providers can secure the benefit of those FTAs from the commencement of the FTAs. In doing so, I am working with the Department of Foreign Affairs and Trade and the Australian Border Force to develop guides which will assist all those in the supply chain to properly use the FTAs.

For the remainder of 2023, Australia will continue to negotiate further FTAs including the AI-CECA with

the most significant other deal being the proposed FTA with the EU, following New Zealand, which completed a deal with the EU earlier this year. There are also some enhancements to our existing FTAs being considered including an update to the ASEANAustralia and New Zealand FTA and the possibility of the United Kingdom and other countries being permitted to accede to the Comprehensive and Progressive Trans-Pacific Partnership Agreement. With the CPTPP, Chile, an original signatory, has just resolved to implement the CPTPP.

MODERN

SLAVERY CONSIDERATIONS FOR GOODS IN THE SUPPLY CHAIN.

I have previously provided commentary on the rise of environmental, social and governance (ESG) issues in the supply chain. That process has continued and been discussed at length at various IFCBAA CPD forums. One of the issues with the most likely impact for those in the supply chain concerns the intervention against the movement of goods which are the product of modern slavery or forced labour (in part or in whole). While Australia has legislation regarding modern slavery, that is confined to requiring companies with turnover beyond a certain limit to register a “modern slavery statement” with the Commonwealth government identifying what steps are being taken to ensure that there is no modern slavery in its supply chain, although there are no penalties for failing to do so.

There has been commentary suggesting our provisions are inadequate and proposed legislation was introduced into the previous Parliament which would have banned imports of goods which are the product of modern slavery and enabling the ABF to seize such goods. That legislation did not pass through the last Parliament but is reportedly a focus of the new government. Further, our existing legislation is currently subject to a review which includes questions as to whether supply chain reporting should include an obligation to report whether goods are the product of modern slavery or forced labour.

Elsewhere in the world, concerns on goods which are the product of modern slavery or forced labour in the supply chain have driven significant legislative and policy changes aimed at stopping such trade. Both the United States and the European Union have passed, or are considering, legislation enabling

the dcn .com.au 46  November 2022 CUSTOMS BROKERS & FREIGHT FORWARDERS Image supplied
Trade law expert Andrew Hudson takes a look at how licenced customs brokers and freight forwarders can prepare for the near future

the seizure of goods believed to be the product of forced labour including recent US legislation which establishes a rebuttable presumption that the importation of any goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region of the People’s Republic of China, or produced by certain entities, is prohibited by Section 307 of the Tariff Act of 1930 and that such goods, wares, articles, and merchandise are not entitled to entry to the United States On the same topic, the United Nations released a report which included, in part, an assessment that more than 50 million people worldwide are living in conditions of modern slavery.

Based on these developments, I would suggest that the current review of our modern slavery legislation will result in a recommendation that licensed customs brokers (LCBs) be obliged to complete a question on a Full Import Declaration whether the goods are the product (in part or in whole) of modern slavery. The review would also include a recommendation that the ABF be given the authority to seize goods at the border which it believes are the product of modern slavery. Given Australia’s current relationship issues with China, I would not expect the changes to include a specific focus on products from Uyghur as in the US legislation, so the questions are likely to be more to do with the nature of production of the goods as opposed to their specific origin. A similar outcome could be achieved through adopting new “thematic” sanctions banning the import of goods from any country which are the product of modern slavery.

The likely changes in Australia will mean that LCBs and freight forwarders will need to question their clients as to the source of the goods and how they were produced. Hopefully, the provisions to be introduced will also reflect that the service providers have no liability if the declarations are incorrect where they have relied on instructions from their clients.

LICENSING OF LCBS AND OTHERS IN THE SUPPLY CHAIN

As described in my recent article, the ABF is proposing additional controls on those people working in “licensed places,” which go beyond those in management and control of those places. These controls have been deemed necessary based on findings of criminal activity in the supply chain.

Given that approach, there may be grounds to extend controls and “fit and proper” tests to all those working with LCBs, whether as employees or contractors and whether those people lived and worked in Australia or overseas.

Such new controls could be implemented on a “test” basis through the Controlled Trials Bill if that bill is re-introduced into the current Parliament. That Controlled Trials Bill could also be used to test new regulation on the position of nominees of LCBs so that the nominees could be “contractors” as well as employees of the LCB.

INTRODUCTION OF THE RESULTS OF THE TRADE MODERNISATION AGENDA

As readers would be aware, several government agencies are working on different aspects of the broadly-based trade modernisation agenda. This work includes work by the ABF, the Simplified Trade System Taskforce, the Department of Agriculture, Fisheries and Forestry, the Department of Finance and the Department of Industry, Science, Energy and Resources. This work has been proceeding for some time and during 2023, I would expect to start seeing the results of such work and there is no doubt that LCBs and freight forwarders will be enlisted to test the reform proposals and assist in their development into substantive and legislated change.

We will report back to you on those developments which do arise and how to prepare for those developments.

the dcn .com.au 47 November 2022
Ian Ackerman
Andrew
Hudson, partner, Rigby Cooke Lawyers
One of the issues with the most likely impact for those in the supply chain concerns the intervention against the movement of goods which are the product of modern slavery or forced labour (in part or in whole).

Freight rates on some reefer trades are now moderating as cargo owners push back on sustainable freight rate increases.

Despite fears of a global slowdown in trade, supply-chain disruption is expected to remain an issue well into 2023, according to the latest Drewry Reefer Shipping Annual Review and Forecast report.

Seaborne reefer trade growth is expected to accelerate over the coming years and expand to an average annual rate of 3% until 2026.

East-west routes have seen modest freight increases over the last four quarters as capacity pressure has eased, thanks to the softening pork trade from both Europe and North America to Asia.

The exception has been the westbound transAtlantic which saw volume jump as much as 9% this year to the second quarter, while average freight rates have doubled over the same period as early opening of the North American economy has boosted consumption in the hotel, catering and entertainment sectors.

Reefer container rates are expected to soften next year but to a much lesser extent than dry box pricing as reefer rates continue to lag that to the wider trade, according to the report.

Shippers and their ocean carrier partners are increasing their use of active controlled-atmosphere (CA) technology to extend the shelf life of perishable shipments.

PANDEMIC-PROOF

Reefer business has been remarkably resilient during the Covid-19 pandemic.

This has been, in part, due to an increasing demand for premium, fresh food.

Responding to the increasing need for fresh produce, the Mediterranean Shipping Company is one of the many carriers that continues to invest in reefer technology.

Using various cold treatment (CT) and CA systems with the support of technology providers, MSC has more than 1000 reefer experts working around the clock on reefers, ensuring cargo is in safe hands at every stage of its journey.

A major player in the worldwide transportation of logistics and refrigerated cargo, MSC is present in 260 trade routes globally and at 520 ports.

“Demand for refrigerated cargo will likely continue to remain strong as the world population continues to rise,” an MSC spokesperson said.

“Moreover, demand for healthy food like fresh fruits and vegetables was further intensified amid the Covid-19 pandemic which sparked interest in both healthier diets and the immune system.

“During the pandemic specifically, MSC grew and brought much-needed capacity to the market, battling the complexities of supply chain disruption caused by the impact of Covid.

“MSC has continued to add reefer containers and has sought to address reefer equipment imbalances globally,” the spokesperson said.

“Meanwhile, port congestion and labour shortages have roiled global trade, meaning more equipment were needed to transport cargo around the world.”

By increasing its fleet to more than 730 ships and deploying the most advanced technology, MSC said it is well positioned to support the ongoing developments in fresh food markets.

TECHNOLOGY IS KEY

Last year saw the highest ever global production of reefer containers, with MSC increasing the number of reefer containers carried to 2 million TEU.

Using various reefer technologies such as CT and CA systems with the support of technology providers such as Star Cool, XtendFRESH, Liventus, Maxtend and Purfresh, perishable goods can spend longer on their journey. And this can open up an entirely new world of options for both importers and exports of fresh produce.

What the pandemic has shown is that ocean shipping, like many other industries, has embraced digitalisation.

Adding tracking and monitoring devices to containers and connecting them to the Internet is the future of the shipping, according to MSC.

“However, we do not believe that the market has produced solutions of sufficient quality and scope to satisfy shippers’ needs,” the company said.

“As a leading proponent of industry standardisation, we believe that new technological solutions will only be fit for purpose if they can be operated across multiple carriers, service providers and geographies; the key words being interoperability”.

the dcn .com.au 48  November 2022
REEFER TRADES
Reefer container freight rates across the global trades are up 50% on last year, matching gains in dry cargo pricing. Although reefer rates are expected to increase, there is hope for stabilisation Ruza Zivkusic writes

COLD, HARD on FACTS T he

the dcn .com.au 49 November 2022  Donvictorio

The carrier has invested in hardware, software and data analytics, turning its prototype into an internetof-things system, allowing containers to communicate with its reefer-monitoring teams while at sea.

“MSC is running pilots with customers to ensure we deliver a customer-facing solution that covers customer needs in different industries,” the company said.

SHORTAGE OF TRADES

IRS International is one of Australasia’s largest refrigeration services. It handles up to 25,000 containers each year.

With 193 staff, of which 150 are technicians, IRS’s demand is up by 20% as a result of Covid.

IRS managing director Peter Labbad, who’s been in the industry for 36 years, said this is the biggest growth he’s ever witnessed.

“The growing trend is massive at the moment,” Mr Labbad said.

“Quite often reefers would be up to 12 years old but now companies have containers that are up to 17 years old and are buying new ones because the food demand is rising.

“Trying to train kids to come to this industry is near impossible; there is a shortage of trades and more demand of reefers – they want a 24-hour service.”

Labbad’s technicians practice on containers, which are updated every three years and stored in Melbourne.

“Now a lot of vessels have antennas, and a lot of shipping lines have a motor so anywhere in the world you’d know where the container is,” he said.

“Every year I’m putting from five to 30 apprentices across the country.

“The unique thing about our industry is that no one knows about containers; it’s a powerful industry and it’s bullet-proof and through Covid we’ve gone upwards instead of down so the industry needs to be recognised as a very solid industry.”

A “NORMALISED” PEAK

Historically, peak shipping season occurs between the months of August and October as various holidays and events, including Black Friday, Cyber Monday and Christmas increase consumer demand.

As more importers try to guarantee space, capacity is strained, with demand and supply for container space scarce all year around.

Peak season has become the new normal due to Covid, according to Fremantle Ports’ digital leader for logistics solutions Dominique Thatcher.

“In this game of supply chain we work through peak season which is usually Christmas but in the shipping world to prepare yourself for Christmas you need to start doing so in September or October,” Mr Thatcher said.

“We believe this year there’s been no peak because there’s been peak right throughout the year,” he said.

“And the other thing that people need to understand nowadays with online shopping is that peak is no longer Christmas when you do online shopping.

“We all know that Black Friday, Cyber Monday and a series of online peaks are scattered across the year so

the dcn .com.au 50  November 2022 Fremantle Ports
It’s a powerful industry and it’s bullet-proof and through Covid we’ve gone upwards instead of down so the industry needs to be recognised as a very solid industry.
Peter Labbad,
IRS
REEFER TRADES
Fremantle is a hub for reefer container shipping in Western Australia
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the shipping still needs to feed those shelves to be able to manage those peaks that are scattered all over.

“We believe in the port industry that the peak has normalised; it’s no longer that everybody waits for Christmas – the only way that you can start to realise that is to look at your data, there is no strong peak anymore but a normalised trend where the peaks are aligned with the online shipping and online sales which is now up to 19% compared to brick and mortar retail.”

VARIED EXPORTS

Port of Brisbane handles up to 65,000 TEU of refrigerated products exported annually to global markets.

These volumes include approximately 99% of Queensland’s refrigerated beef.

At the Port of Brisbane, all container terminals, empty container parks, some logistics operators and the Brisbane Multimodal Terminal have reefer power points available.

What used to be only beef exports has expanded to all sorts of products; from fruit to pharmaceuticals, Port of Brisbane chief operating officer Peter Keyte said.

“We do everything from chilled to frozen including temperature-controlled product,” Mr Keyte said.

“We’ve seen an increase in demand – they’re all exporting all sorts of different products now.

“This has opened up other products that need a different style of refrigeration in order to make the transit time in good shape.”

With most refrigerated containers typically imported empty at the Port of Brisbane, shipping lines are responsible for ensuring they have enough equipment available to the market for export through the repositioning of the containers.

ANL Container Line has seen an increase in reefer demand over the past 18 months, according to its spokesperson.

On the back of strong market demand across the board for reefer cargo including meat, grapes, citrus and dairy, the demand was further exacerbated by general market equipment supply and schedule challenges.

“Ongoing political realities in China as a major demand market has also presented challenges throughout,” ANL said.

However, conflicts in Ukraine to date has not had any direct impact on major Australian reefer export commodities.

“Equipment flow and scheduling issues out of operator control have been challenging for exporter’s production and packaging schedules.

“We work as closely as possible with clients in this space to manage for this.”

ANL’s refrigerated containers run on controlled atmosphere and cold sterilisation in transit in order to prolong shelf life.

Exporters can protect the quality of their commodities by regulating influencing factors like oxygen and carbon dioxide levels, humidity, ventilation and temperature.

Cold sterilisation is a protocol which is needed for import into many countries which have large agricultural industries, it adds.

“This is a way to sterilise goods without the use of harsh chemicals.”

ANL uses the following:

Reeflex Liquid Ready – a solution for transportation of liquids in 20 foot and 40 foot refrigerated containers,

Pharma Reefer Division – a Good Distribution Practice system to preserve the integrity of pharma products during shipping, and

Smart Reefer cargo tracking and control powered by Emerson, providing full visibility of cargo

ANL stores reefer boxes where most appropriate to ensure they have access to plugs and so that they do not need to be re-stowed during the trip.

Within the container, cargo is stowed in a manner that does not restrict airflow and allows for uniform distribution of air throughout the container.

QUIRKY DEMANDS

Royal Wolf, which provides shipping containers in a range of sizes for hire, has seen a demand for sustainable containers by customers.

Viv Kennelly, general manager of sales at Royal Wolf, said clients are more focused on safety and remote control of temperature.

Normally, a container is up for hire between three to six months, but some go for up to 12 months, he said.

“The focus tends to be more on the safety aspect of the unit,” Kennelly said.

“We often get a request by the retail market sector for flat floors so they can wheel in pallets and assist them with productivity because you can’t when in a fully loaded pallet, you need to manhandle it, which impacts cost.

“The look of the box also comes at play; what they look like at car parks and warehouses, customers want it to be pleasing. It has to be sexy, even lighting internally – people want to be able to see the inside without taking a torch in so we fit our containers with LED lighting.

“So, there are some quirky demands.”

the dcn .com.au 52  November 2022 REEFER TRADES
In this game of supply chain we work through peak season which is usually Christmas but in the shipping world to prepare yourself for Christmas you need to start doing so in September or October.
Dominique Thatcher, Fremantle
Ports

World Maritime Day 2022

The Maritime Union of Australia continued its tradition of holding a seafarers’ memorial ceremony for World Maritime Day before turning to the task of greener shipping

WORLD MARITIME DAY 2022 WAS celebrated around the world on 29 September by maritime communities.

In Sydney, the Maritime Union of Australia met ahead of World Maritime Day to honour the sacrifices of merchant seafarers who crewed the world’s cargo ships during wartime. This year, that acknowledgement extended to crewmembers who served during Covid-19.

Veteran seafarers were the first to meet on the Pyrmont Bridge to march to the Australian National Maritime Museum, followed by a cluster of union members, friends, supporters and local members of parliament. The MUA has held annual commemoration ceremonies at the maritime museum since the early 1990s, with the exception of last year under pandemic circumstances.

Daryl Karp, director and CEO of the Australian National Maritime Museum, welcomed the group and acknowledged the story of Australia as an island nation and the role maritime workers have played –and still play – in that story.

“I am honoured to be here to reflect and to mark the great sacrifices made by merchant seafarers over the past decades, aeons,” Ms Karp said.

She said the maritime museum would mark World Maritime Day by illuminating the onsite lighthouse, as many other museums, organisations and government agencies would do with ships, monuments and buildings as part of their celebrations.

But “most importantly”, she announced, the museum would unveil the Wharfies’ Mural as an exhibition piece. The mural was painted by Sydney’s waterfront workers between 1953 and 1965.

“That is going to be a feature exhibition for us, along with all of the stories that

went into the last 100 years of this area … the stories of all of those people that make this place, this space, this wharf such an interesting, exciting and at this point in time, heartfelt time to be here.”

SACRIFICES

A strong theme throughout the day’s proceedings was how crews had been impacted during Covid. MUA Sydney branch secretary Paul Keating would later describe international seafarers as “the forgotten ones, still struggling for recognition” as the world begins to recover from the effects of the pandemic.

“… citations of foreign crew exploitation, ill treatment, wage theft,

the dcn .com.au 54  November 2022 Abby Williams WORLD MARITIME DAY
Union flags were flown as part of the World Maritime Day procession
It is now that we need to build and continue to fight for the changes so that our children and every generation after us has a future.

are among the very reasons why we commemorate and celebrate world maritime day,” he said.

“The world’s seafarers and maritime workers in general need a voice.”

Paul Garrett, deputy secretary of the MUA Sydney branch, outlined the difficult circumstances seafarers had endured since the onset of Covid.

“For a seafarer, a ship is not only their workplace, but their home,” Mr Garrett said.

“During the international Covid-19 health pandemic, we’ve seen seafarers denied basic rights of shore leave; a cruel form of home detention thrust upon these seafarers who go to work to trade international cargo every day of the year.”

Acknowledging the work of those at sea during the pandemic and the sacrifice of those manning ships and wharves during wartime, Mr Garrett invited guests to pause as wreaths were laid at the foot of the historic Seafarers Memorial Anchors.

“We pause to recognise those in the merchant navy, who served in times peace and in times of war,” he said.

“We pause to recognise those seafarers who continue to ensure the seagoing highways of the trade continue to be operated by merchant navy during those times of war.

“We pause to recognise those who gave the ultimate sacrifice as a result of going to war.”

GREENER SHIPPING

At the conclusion of the memorial ceremony, the event transitioned into a relaxed lunch and the launch of a report released that day, titled Robbed at Sea. The report explored theft of seafarers’ wages. It was commissioned by the International Transport Workers’ Federation.

Mr Keating then brought attention to the IMO’s theme for World Maritime Day 2022: new technologies for greener shipping.

“We live in a time where there’s never been such a threat to humankind as what we face with global warming,” Mr Keating said.

“It is now that we need to build and continue to fight for the changes so that our children and every generation after us has a future.”

Member for Swansea Yasmin Catley said World Maritime Day is an opportunity to recognise the importance of shipping in Australia for social activity and economic prosperity.

“On the one hand we’re talking about emerging technologies for ship propulsion, that already shipping is a cleaner and more sustainable transport technology than depending on our heavy use of road and rail,” Ms Catley said.

Right : Australian National Maritime Museum director and CEO Daryl Karp; far right : MUA Sydney branch deputy secretary Paul Garrett; below : Veteran seafarers

She said more should be done to diversify the modes of transport for Australia’s interstate freight networks.

“For instance, our colleagues in Western Australia are exploring possibilities of expanding shipping lanes between the west and the east. Of course, this will grow more jobs, but it’ll also mean that we are moving those items we depend on – commodities we depend on – around our domestic shores.”

Ms Catley also noted recent and potential future work in areas relating to offshore wind.

“We should also look at the role shipping and seafaring can play in opening up Australian opportunities to invest in renewable energy.”

the dcn .com.au 55 November 2022
Sister Mary Leahy, Stella Maris at Seafarers Memorial Anchors Veteran seafarer preparing for the World Maritime Day march

2022 Shipping Industry Golf Day

The shipping industry charity golf day teed off at the Long Reef Golf Club this year, in support of the Westmead Children’s Hospital cancer unit and its young patients

GOLF ENTHUSIASTS FROM THE New South Wales maritime and logistics community took over Long Reef golf course on 21 October to compete in the 2022 Shipping Industry Golf Day.

Traditionally held at the nearby Mona Vale Golf Club, the long-standing fundraising event was this year hosted by Long Reef Golf Club in Collaroy. Teams enjoyed friendly competition and sweeping ocean views, but the highlight of the day was the opportunity to raise funds for the Westmead Children’s Hospital.

Each industry golf event donates to the hospital’s oncology unit to support children undergoing cancer treatment. This year’s golf challenge was the 33rd fundraiser of its kind.

Participants arrived for an early start with breakfast rolls and coffee at the club café. Teams teed off under dark skies, but the incoming rain was light and – to much relief – didn’t interfere with the round.

Eighteen holes later, players made their way back into the membership house for lunch, presentations and a heated round of heads and tails.

Dr Geoff McCowage, senior paediatric oncologist at the Westmead Children’s Hospital, gave an insightful presentation explaining how leukemia impacts a child’s body and how it is treated.

He also shared an update from the children’s cancer unit and how years of financial support have benefited its young patients and their families.

“Having people who are in it with you for the long-haul is a very valuable thing –enormously valuable – so thank you,” Dr McCowage said.

And Peter Graham, whose son, Jack, was diagnosed with cancer at the age of six, described the emotional journey he and his family had been on while Jack was treated for cancer. He reminded donors of the lifesaving impact of their generosity.

The day concluded with an announcement of the winners and awards presented by Tony Cousins, managing director at Antares Marine. Mr Cousins confirmed the donations collected at the 2022 Shipping Industry Golf Day would push the funds raised over time upwards of three quarters of a million dollars.

the dcn .com.au 56  November 2022 OUT & ABOUT
Abby Williams
It was a slightly damp day on the golf course Driving a ball towards the fairway
the dcn .com.au 57 November 2022
Getting ready for a round of golf Royal Wolf team 2 The Shipping Industry Golf Day organising committee Winner of fundraising activity receives TV from Royal Wolf The Newcastle Stevedores team Tony Cousins handled MC duties Royal Wolf team 1 won Best Team Many who braved the weather played a fine game

Big year ahead for commodities

Australia’s commodity export earnings are forecast to skyrocket this financial year, according to a recent publication from the Office of the Chief Economist. However, earnings are expected to plunge the following year – not from decreased volumes, but a decline in prices

AUSTRALIA’S EARNINGS FORM

resource and energy exports are expected to hit a record $450 billion over the current financial year, according to the September edition of the Resources and Energy Quarterly.

The publication sets out forecasts from Office of the Chief Economist for the value, volume and price of Australia’s exports of major resources and energy commodities.

This year’s earnings forecast is an increase of 6.6% on last year’s record of $422 billion.

Global demand for energy is pushing Australia’s resources and energy export revenues to new highs, with an ongoing surge in demand for materials needed for low-emissions technology such as batteries, solar panels and electric vehicles.

Minister for resources and Northern Australia Madeleine King said the Resources and Energy Quarterly publication for the September quarter 2022 forecasts record earnings for Australian resources and energy exports in 2022-23. However, these profits are expected to ease to $375 billion the following year.

ALTERNATIVE ENERGY TECH MINERALS

Driving the rise in 2022–23 is the search for alternative sources of energy following

Russia’s invasion of Ukraine, and a surge in the US dollar against the Australian dollar.

Ms King said Australia is experiencing strong growth in demand for minerals that are crucial for low-emissions technology, such as lithium, copper and nickel. Prices for these minerals are also growing due to growing demand for electric vehicles, batteries and cleaner energy.

“The Resources and Energy Quarterly forecasts combined export earnings from copper, nickel and lithium … to reach around $33 billion in 2022-23 from $22 billion in 2021-22,” she said.

“Lithium exports are continuing to grow, on the back of demand for batteries and electric vehicles. Lithium export earnings are forecast to increase more

AUSTRALIAN RESOURCES AND ENERGY EXPORTS

the dcn .com.au 58  November 2022 INDUSTRY ANALYTICS
160 140 120 100 80 60 40 20 0 $
billion
Source: Resources and Energy Quarterly, September 2022 2020–21 2021–22 2022–23 2023–24
Iron ore LNG Others Metallurgical coal Thermal coal Base metals Gold

MAJOR

than ten-fold in just two years, from $1.1 billion in 2020-21 to almost $14 billion in 2022-23 before easing to around $13 billion in 2023-24.

“Lithium export volumes are expected to grow steadily as Australia maintains its position as the world’s largest lithium miner,” Ms King said.

“Russia’s unconscionable invasion of Ukraine has also led to record prices for LNG and coal exports, which are forecast to earn Australia $90 billion and $120 billion, respectively, in 2022–23.”

IRON ORE

The record forecast for overall exports comes despite easing iron ore prices. The report attributes lower iron ore prices over the past quarter to slowing global growth and weakness in China’s housing sector. Iron ore prices are expected to ease further, as world supply grows faster than demand.

Iron ore export earnings are forecast to ease from $119 billion in 2022-23 to $95 billion in 2023-24, reflecting moderating prices, more modest growth in global steel output, and rising iron ore supply.

According to the report, iron ore prices have fallen by about 20% in the September quarter alone. Demand has been dampened by Covid outbreaks and a weak housing sector in China.

Export volumes of Australian iron ore were just shy of 1% higher year-onyear in the first half of 2022, with new supply starting to come online. The report forecasts exports of iron ore to increase by 3.1% in 2023-24 to 937 million tonnes.

Lower prices will drive the value of Australia’s iron ore exports down from $134 billion in 2021-22 to $119 billion this year, and then down to $95 billion in 2023-24.

COAL

Prices for Australian metallurgical coal are to see a marked decline from the record

highs of the September quarter, according to the report.

Premium hard coking coal is expected to average US$400 per tonne in 2022. However, this is expected to fall to US$220 per tonne by 2024 as conditions normalise.

And thermal coal prices are likewise expected to tumble in the near-term. As more normal conditions return, the Newcastle benchmark price is expected to fall from an average of US$333 per tonne in 2022 to about US$125 per tonne in 2024, which the report points out is still well above historical averages.

the dcn .com.au 59 November 2022  EcoPrint
Australian iron ore export volumes are on the decline while value is going up – for now
140 JAPAN SOUTH
33 54 INDIA 27 TAIWAN 16 AUSTRALIA’S RESOURCE AND ENERGY EXPORT VALUES/VOLUMES 120 100 80 60 40 20 0 Index, 2022–23 = 100 Source: ABS (2022) International Trade in Goods and Services; Department of Industry, Science and Resources (2022) Volumes Values $ billion 480 400 320 240 160 80 0
MARKETS FOR AUSTRALIA’S RESOURCES AND ENERGY EXPORTS IN 2021-22 $ BILLION CHINA
KOREA
2007–08 2011–12 2015–16 2019–20 2023–24

Australia braces for bigger ships

Two articles published in DCN a century ago described Sydney as one of the greatest harbours in the world, but questioned other ports’ capacity for larger ships

THE DAILY COMMERCIAL NEWS ON

13 November 1922 published an article responding to an international “call for bigger ships” and the impact that call would have on Australian harbours.

“Recent announcements of shipping companies trading to Australia, in regard to the issuing of contracts for bigger ships for the Australian trade, shows that the financial man of the other side of the world recognises that the present dullness of trade cannot go on,” the article said.

It suggested nearly every Australian at the time was familiar with “the boasts” of the harbours of Sydney and Hobart, but it would soon become necessary to spend enormous sums of money on deepening the harbours.

“Sydney Harbour has been pointed to with pride by every type of Australian, but the day is not far distant when the Harbour Authorities will be looking at future expenditure with an unsteady eye.

“At present ships are trading to Australia which have but little to spare at low water times in the various main ports of Australia. The port of Hobart is the best off in this respect, with 40 feet alongside the wharves; but Melbourne, Adelaide, Brisbane, Fremantle, Newcastle, Darwin, and even Sydney, are not in too secure a position.”

BIG SHIPS, SMALL PORTS

Thirty-thousand-ton ships would soon sail on the Australian trade, and DCN believed the size of these vessels would cause some serious problems at Australian ports.

“There are ships on the Australian trade at the present moment which cannot enter many of Australia’s ports because of the lack of water, and as the cities of these ports progress the trouble is going to become more acute,” the article said.

“In a year or two there will be a 22,000ton ship on the Canadian-Australian run, but as this ship will only have to call at Sydney, the trouble of the smaller ports will be obviated.

“What the future will need in the way of harbour depth cannot be stated, and it is certain that Australia will soon have to set out on a policy of harbour deepening.

“Twenty-thousand-ton ships are now being built for the Australian trade, but when the time comes that the 30,000-ton ships must enter Australian ports, then the harbour authorities will be up against it from a financial point of view.

“The day of the bigger ship is coming for Australia, and soon the question of deepening our harbours will be a prominent one.”

JUST TO CLARIFY

Two days later, on 15 November, DCN returned to the story to clear up what could be perceived as a misunderstanding.

“Although this paper stated the other day that the Port of Sydney would possibly have to be deepened in certain parts some day, for the coming of the greater ocean liners, it must not be taken that there was any inference made as to any great discrepancies in the Port of Sydney.”

DCN said Sydney’s natural harbour had positioned it as the chief distributing centre for Australasia. Sydney and Hobart were considered the two great ports of Australasia at the time, but the article highlighted the natural facilities of Sydney Harbour that no other port in Australia possessed.

“Sydney has the finest of protection, and the advantage of increasing its berthing accommodation with but little outlay. There are no large rivers entering the harbour to bring down silt, consequently very little expense is incurred in dredging, other than for deepening permanently.”

The entrance at the heads was deep enough “never to be interfered with” but dredging operations had begun to expand the western channel beyond its width of 350 feet. In the year ending 30 June 1921, almost 1.5 million tons of sand, silt, mud and rock had been removed from the harbour. But, beyond that improvement, there was not much else needing to be done in Sydney to accommodate the largest vessel afloat.

“All that is needed is the deepening of the channels to accommodate such a vessel as the Majestic, and with a few minor improvements all woud [sic] go well.

“It is a lamentable fact that the other ports of Australia are not in the same position, and it is certain that, with the exception of Hobart, many Australian ports will have to be vastly improved to allow the huge vessels of the future to trade to these ports.”

the dcn .com.au 60  November 2022 MARITIME HISTORY
Cunard Line’s RMS Franconia berthed at West Circular Quay in 1927

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Swire Shipping celebrates 150 years

Swire Shipping invited stakeholders and supporters to celebrate its milestone anniversary at the Australian National Maritime Museum

PARTNERS, TEAM MEMBERS AND customers of Swire Shipping and Swire Bulk celebrated the 150 th anniversary of the establishment of the China Navigation Company on a balmy midOctober evening.

The occasion was marked with a soiree at the Australian National Maritime Museum with drinks, live music, dancing and a lavish spread of seafood, all against the glowing backdrop of Sydney’s skyline.

Guests explored the destroyer HMAS Vampire before formal proceedings began. Randy Selvaratnam, general manager, Pacific at Swire Shipping, opened the event with a welcome to those who had supported the company throughout its history.

“Your commitment and loyalty to the company is what has got us to where we are today, and we’ve got a fantastic generation of new managers coming through, which I’m really proud that are going to take us beyond the 150 [years] and another 150,” Mr Selvaratnam said to his local and international colleagues.

Chris Daniells, managing director of Swire Projects and chief commercial officer of Swire Shipping, gave a short talk that traced the company’s history back to a small trading house in Liverpool in 1816. Later that century, Mr Daniells related, in September 1871, British businessman John Samuel Swire quietly proposed the establishment of a steamship company on the Yangtze River.

“China Navigation has come a long way since we started providing liner and passenger services in Australia in the 1870s,” Mr Daniells said.

“Today, Swire Shipping and Swire Bulk remain heavily committed to Australia and the Pacific, operating more than 325 port calls alone in Australia so far this year.

“Despite the many challenges brought about by the pandemic, we continue to look to the future as we improve our network coverage, develop customer relationships and contribute to the sustainable future of the shipping industry, both globally and here in Australia.”

the dcn .com.au 62  November 2022 OUT & ABOUT
Ian Ackerman and Abby Williams A dramatic pyrotechnic display erupted when the 150th anniversary cake was sliced Swire Shipping general manager, Pacific Randy Selvaratnam gave an address
the dcn .com.au 63 November 2022
Swire Shipping CCO Chris Daniells The event took place at the ANMM in Sydney Many guests, including port CEOs, enjoyed the authentic paella The event offered the opportunity to catch up and ne twork Guests enjoyed entertainment and speeches from Swire dignitaries Tipples at sunset

The second MIAL Decarbonisation Summit

Over the course of the summit, members of the Australian maritime industry, the energy industry, academia and government stakeholders met for discussions on decarbonising the maritime sector

REPRESENTATIVES FROM THE MARITIME INDUSTRY, government and the energy industry gathered on 12 October to discuss the way forward for decarbonisation.

The event was the second in a series of summits, organised by Maritime Industry Australia, focusing on energy through a maritime-industry lens.

Through the summit series, MIAL said it aims to help build networks of key stakeholders in the maritime and energy industries – as well as government agencies and departments. The idea being that these networks would foster collaboration and co-ordination to move the maritime industry down the decarbonisation path.

This most recent summit comprised four sessions that continued throughout the day, with delegates delved into the details, analysing how the transition will work.

The Sydney Maritime Decarbonisation Summit was sponsored by Wartsila, CSL and the Australian Maritime Safety Authority.

The first decarbonisation summit in the series took place in Melbourne in April, and the next summit is scheduled to take place in May 2023 in Perth.

the dcn .com.au 64  November 2022
DECARBONISATION
MIAL; Ian Ackerman MIAL CEO Angela Gillham opening the Maritime Decarbonisation Summit in Sydney Ms Gillham spoke about the need for government leadership for an enabling environment that shares risks and accelerates action
the dcn .com.au 65 November 2022
Delegates were from a diverse range of industries GMF senior programme lead, first movers, Marieke Beckmann discussed a “green corridor” between the Pilbara and east Asia Wärtsilä general manager sustainable fuels and decarbonisation Kaj Portin spoke about the industry’s need for fuel-flexible engines Scaling Green Hydrogen Cooperative Research Centre interim CEO Paul Hodgson said ports are natural hubs for decarbonisation
“Let’s look at how the maritime industry can be part of the conversation; all the ingredients for decarbonisation both domestically and at sea congregate around ports.”
“Regulations and legislation need to come into effect so we can choose which clean fuel will be the best.”
“The green corridor concept is to help us break down some of the complexities we are looking at in value chains and policies.”
“What our job is, as a P&I club, is to look at the risks that industry take by using alternative fuels, and work out how we can be there to insure those risks.”
Captain Yves Vandenborn, director of loss prevention at Standard Club discussed how P&I clubs help facilitate the energy transition

What is your job and where does it take you?

I’m a master mariner, but now work as a marine consultant specialising in salvage and wreck removal. I’m a member of Lloyd’s panel of Special Casualty Representatives, one of 49 worldwide. When not attending marine incidents, I undertake high-level marine consultancy work. Apart from office-based instructions, my work largely takes me around the Oceania region.

Describe a typical day at work. There is no typical day. Usually, early morning or late at night I triage emails for urgent action items. I keep a bag packed downstairs for when I get emergency calls – I can grab it and be gone within an hour. Often these emergency calls come through late at night as news of an incident emerges, and by early morning I am already travelling to site. I don’t even count the number of anniversaries, birthdays and family events I’ve missed; the job comes first.

What epitomises a tough day at work?

You get a call late at night when a family weekend is planned, so by 0600 you’re on a plane towards an unheard-of destination in Oceania. My travel agent is trying to work out where it is, how to get there and where to stay. While travelling, you’re gathering casualty and site information as well as liaising with stakeholders. The initial stage is always quite chaotic until you can survey the casualty, develop process and mobilise resources. Owners and insures call me because out of the chaos, I can create order, save lives, protect the environment and salvage property.

The grill

What was your most dangerous experience on a job?

Where do I start? When we were doing the wreck removal for the Rena, we had a chain run away. We were passing the lifting chains through the accommodation, and there was an error with a chain puller. I was standing beside the puller when it let go of the chain. Instinctively I just ran –taking cover behind a container. The chain end was like a steel serpent as it swept barge’s deck demolishing everything before disappearing over the side. Amazingly, no one was killed.

What is a cultural nuance you need to consider while working in the Pacific?

If there is a grounding near the shore in the Pacific, or on a reef close to the shore, an important thing to remember is that a clan or landowner owns the land or reef. Anything that comes onto that land or reef is regarded as a gift from the sea and is therefore now their property. One must negotiate with the seats of power to ensure the casualty is not boarded or ransacked, that everyone is kept safe and even that salvage equipment doesn’t get ransacked.

Do you ever encounter language barriers?

It’s usually pretty good. The hardest job we had was in New Caledonia; we had a Franco-Kanak jurisdiction, Chinese contractors, and I’m Tasmanian. My French is rubbish, and my Shanghainese not much better, but you make it work. It’s more about developing relationships than it is about language. We focus on hierarchy in the west, whereas in the Pacific people like to know where you come from and who you are. You can

overcome any language barrier by finding common ground and displaying mana – an intangible presence which means power and influence. You can’t buy mana; you either have it or you don’t. Having a bit of personal mana goes a long way.

How did you end up in this industry in the first place?

I’m the son of a fisherman. I first went crayfishing with dad on the west coast of Tasmania when I was seven. I was the bait boy. All I ever wanted to do was go to sea. I went to sea with BHP as a deck cadet and spent 15 years with the company, then a couple of years in oil and gas and did some salvage as well. Then, I went abalone diving for 10 years and went back into salvage. I’ve always done what no one else wants to do and I’ve always gone where no one else will go.

If you ever get down time, how do you spend it?

I’ve got a fishing boat, so I go deep sea fishing. I also love fly fishing. I’ve got a sports boat which I’ve sailed in a world championship, and I spent a lot of time supporting my kids who are both elite athletes; one in rowing and one in sailing. Both are high achievers. Where would they get that from?

If you could only eat food from one region for the rest of your life, which would you choose?

I just cooked up a feed of Tasmanian white bait and hand-caught scallops on the weekend, for visitors. I still dive, so I caught the scallops. I would not relinquish the right to catch and consume Tasmanian seafood.

the dcn .com.au 66  November 2022
Image supplied
DCN caught up with TMC Marine director Captain Roger King for a chat about dangerous wreck removal jobs, Pacific culture and the value of having mana
Roger King in front of Kea Trader ’s propeller

Next month in

YEAR IN REVIEW

In every December issue, DCN looks back at the big stories that made headlines over the previous 12 months. You will be able to read about the triumphs, near misses and natural disasters of 2022 and the Australian maritime industry’s role in keeping freight moving.

INNOVATION IN MARITIME & LOGISTICS

Innovation is a big topic in the maritime logistics industry these days, with digitalisation changing the way we work and do business. This feature will delve into some new innovations that are gaining traction in Australia, with a focus on both landside and maritime logistics.

AIR CARGO

Being an island, Australia is reliant on air freight to import and export time-sensitive goods. DCN will take a deep dive into the world of airborne logistics and freight in Australia. We will examine new developments in infrastructure and connections and

NORTHERN AUSTRALIA

The northern regions of Australia are a unique place for maritime freight. A tremendous amount of bulk cargo is exported from the region, and there are growing trade direct trade connections to South East Asia outside of the traditional bulk exports. This feature will look at what’s happening in the north.

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