DCN Magazine January 2023

The winds change of

Offshore wind is coming to town

From the editor

Welcome to the first edition of the DCN magazine for 2023. The new year looks to be an interesting one in the Australian maritime world.

The IMO’s CII regime has just come into effect, making emissions reporting compulsory and mandating consequences for ships with bad grades. While the regime has attracted considerable (and valid) criticism, it is still a step in the right direction. Anything that encourages a decrease in pollution of any kind is good.

And here in Australia, this year is looking to be significant on the policy front. There will be movement in the strategic fleet space in the coming months. Whether or not the idea is a good one, it has prompted serious discussions about training of Australian seafarers. I think everyone can agree that the pipeline of young maritime talent in this country is dangerously dry. On page 22, Tony Cousins lays out a plan to get more young Australians trained as seafarers.

And also in this issue (on page 28), we have an in-depth feature on cybersecurity. This is a subject that nobody in this day and age can afford to take lightly. There have been innumerable serious cybersecurity incidents over the past few years, but these came nowhere near realising the destructive potential that such attacks can cause. Be careful out there.

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

Editor Ian Ackerman ian.ackerman@thedcn.com.au

Journalist

Abby Williams abby.williams@thedcn.com.au

Creative Director Lee McLachlan

Production Manager

Grant Lopez grant.lopez@thedcn.com.au

Electronic Services Linda Saleh

Advertising Sales Director

Lindsay Reed lindsay.reed@thedcn.com.au

Tel: 0431 956 645

Subscription Manager

James Hayman james.hayman@thedcn.com.au Tel: 02 9126 9713

Daily Cargo News acknowledges the Cammeraygal people, the traditional custodians of the land on which this publication is produced. We pay our respects to their elders past and present. We extend that respect to all Aboriginal and Torres Strait Islander peoples today.

Published by PARAGON DCN PTY LIMITED

ABN: 73 627 186 350 PO Box 81, St Leonards, NSW 1590 Tel: +61 2 9126 9709

CEO Ian Brooks ianb@paragonmedia.com.au www.thedcn.com.au

The Daily Cargo News is available to interested parties throughout Australia and overseas via subscription.

For enquires please call 02 9126 9713.

Ian Ackerman Editor, Daily Cargo News

The publisher welcomes editorial contributions from interested parties, however, the publisher and Paragon DCN accept no responsibility for the content of these contributions and the views contained therein are not necessarily those of the publisher or of Paragon DCN. The publisher and Paragon DCN do not accept responsibility for any claims made by advertisers.

Unless explicitly stated otherwise in writing, by providing editorial material to Paragon DCN, including text and images, you are providing permission for that material to be subsequently used by Paragon DCN, whole or in part, edited or unchanged, alone or in combination with other material in any publication or format in print or online or howsoever distributed, whether produced by Paragon DCN and its agents and associates or another party to whom Paragon DCN has provided permission. the dcn .com.au

the dcn .com.au

Cybersecurity threats lurk in many places

COVER IMAGE David Maddock

Live a life on the high seas.

Study Maritime Operations.

At TAFE NSW our goal is to help change lives. With maritime operations and marine engineering experts as your teachers, you will advance your practical seafaring abilities using high quality simulated training equipment. TAFE NSW also utilises operational boats for near coastal real world experience and assessments, out on the water. The maritime industry offers exciting career choices with the option to travel the world.

+ Diploma of Maritime Operations (Master less than 500 GT) (MAR50320-01)

+ Diploma of Maritime Operations (Master less than 80 metres Near Coastal) (MAR50320-02)

+ Diploma of Maritime Operations (Watchkeeper Deck) (MAR50320-03)

+ Or explore a range of courses to help build your near coastal certification, from a general purpose hand through to a Master up to 35 metres.

Ready to change your life? Enrol now for Semester 1, 2023 with TAFE NSW, a leading provider of lifelong learning.

News in brief

Full details at thedcn.com.au

Australia-India free-trade deal progresses

The Indian government recently completed its domestic requirements to enable the implementation of the AustraliaIndia Economic Cooperation and Trade Agreement (ECTA).

Coming into effect on 29 December 2022, the agreement aims to deliver new market-access opportunities for Australian businesses and consumers.

Australia finalised its domestic requirements for the trade agreement in November last year with the unanimous passage of the government’s bills through Parliament.

Tariffs on 85% of Australia’s exports to India would be eliminated from 29 December and high tariffs on a further 5% of goods would be phased down.

As part of the agreement, two tariff cuts were to come in quick succession: one as the agreement comes into effect and a second on 1 January 2023.

According to a statement from the federal government, the ECTA will save Australian exporters around $2 billion a year in tariffs, while consumers and business will save around $500 million in tariffs on imports of finished goods, and inputs to our manufacturing sector.

Prime Minister Anthony Albanese said Australia and India are increasingly working together as strategic and economic partners.

“We elevated our relationship with India to a strategic partnership in 2009 and to a comprehensive strategic partnership in 2020,” Mr Albanese said.

Rod Sims speaks at NFF Leaders’ Summit

Former ACCC chair Rod Sims said in November importers and exporters lose out when governments treat infrastructure as cash machines.

During a speech to the National Farmers’ Federation Leaders’ Summit at Parliament House, Mr Sims said Australia must treat its infrastructure as an important economic asset; he said privatisation in Australia went well in the late 1980s.

“Qantas, the Commonwealth Bank and other assets were sold because politicians realised that these assets would perform better in private hands, and I think history shows this was correct.”

“Over the last 20 years, however, privatisation has largely gone wrong as governments have sought to maximise the sale price by limiting competition to the asset being sold, or selling a monopoly without any regulation, knowing that the new owner would raise prices to recoup the large price paid for the privatised asset. Indeed, often those who will raise prices the most post sale won the bid for the asset.”

Mr Sims said examples of this abound and he pointed to port privatisations.

“The Australia-India Economic Cooperation and Trade Agreement is the next step in elevating our relationship with India, the world’s fastest growing large economy.”

Minister for trade and tourism Senator Don Farrell said the ECTA’s two tariff cuts in quick succession intensify the up-front benefits of this agreement for exporters.

“Businesses are encouraged to get on the front foot and prepare themselves now to take advantage of the substantial improvements in market access to India under the new agreement,” Mr Farrell said.

“Austrade can assist existing and potential exporters benefit from the lowering of trade barriers into the Indian market,” he said.

“The Victorian government sought to sell the Port of Melbourne and at the same time increase land rents at the port by nearly 800% to boost the sale price. They also put a 50 year non-compete clause over the future container port at Hastings. Both provisions were watered down in response to the public outcry in part led by the ACCC,” he said.

“The NSW government sold potential competitor ports Botany and Kembla to the one owner, and inserted provisions in various sale agreements that prevented any future container port competition from the Port of Newcastle. This has recently been unwound a bit.”

Mr Sims said our ports are essential gateways and most other countries want them as efficient as possible to benefit their economies. He said port-on-port competition is an important way to do this.

“Australia has gone down the path of unregulated privately owned monopolies instead. In Australia we seem to bias to treating our infrastructure as cash machines and importers and exporters are the losers,” he said.

Former ACCC chair Rod Sims

MONSON ACQUIRES MERIDIAN

Australian port agency Monson acquired Meridian Port Agencies in a move that the company said would build its scale and international network.

A statement from Monson said the acquisition would expand its pan-Asian footprint, adding a physical presence in new areas: Indonesia, Malaysia, Vietnam, Thailand and Myanmar.

“Combined with Meridian, Monson will be the leading dry and wet bulk agent across APAC, covering some of the fastest growing bulk export and import markets – Australia, South East Asia, and China,” the company said in its statement.

Monson is headquartered in Fremantle and has offices in most significant bulk ports around Australia.

Before the acquisition, Monson had international offices in several locations across Asia.

Shipwreck artefacts believed to be musket balls were returned to the Western Australian Museum

Shipwreck artefacts returned to WA museum

Artefacts believed to be from the ship Vergulde Draeck, wrecked off the coast of Western Australia in 1656, have been returned to the Western Australian Museum.

Vergulde Draeck struck a reef south of Ledge Point on 28 April in 1656.

The wreck was the first of the Dutch and English East India ships found on the Western Australian coast. It was discovered by five spearfishermen in April 1963.

Culture and arts minister David Templeman accepted the artefacts from finders Leon Pule and Hanneley Tredoux on behalf of the museum on 24 November.

The finds may confirm the existence of another shore-based site related to the possible fate of the Vergulde Draeck survivors.

The WA Museum’s maritime archaeologists plan to further investigate the artefacts, which are believed to be musket balls and spring shot.

Mr Templeman thanked Leon Pule and Hanneley Tredoux for returning the artefacts to the museum.

“This will enable our expert maritime archaeologists to examine the artefacts, and the site where they were found, to learn more about the fate of the Vergulde Draeck and its crew,” he said.

FIREFIGHTING HELICOPTER ARRIVES, TAKES OFF FROM PORT BOTANY

The Coulson Aviation chopper arrived at Port Botany on board the Synergy Busan from the US. Engineers assembled the water-bombing aircraft on the terminal before it took off from the dock, bound for Bankstown Airport.

“Port Botany is a key international trade gateway that manages the state’s container trade, bringing in essential imports from across the globe to support NSW communities,” NSW Ports CEO Marika Calfas said.

“We are proud to play a role in delivering vital firefighting equipment ... it was certainly a spectacular sight to see the chopper lifting off from Patrick Terminals.”

“Patrick Terminals has the largest ship-to-shore cranes in Australia and has invested significantly in equipment, infrastructure and technology to efficiently manage the import of vast goods for the people and business of NSW each day,” he said.

NSW Ports and Patrick Terminals; Western Australian Museum

A CH-47D Chinook helicopter sent to join New South Wales’ firefighting arsenal for the bushfire season arrived at Port Botany’s Patrick Terminals in late November.

Patrick Terminals CEO Michael Jovicic said managing the Chinook helicopter shipment demonstrated the business’ capacity and versatility to manage critical imports.

The Chinook helicopter assembled on the wharf at Port Botany

Port Botany Christmas gift appeal

Every year, Sydney marine pilot Michael Kelly spearheads an effort to raise money to purchase Christmas gifts for 1700 seafarers who call into Port Botany over the festive period.

In December a cross section of the Sydney maritime community gathered at Sister Mary’s office to pack the gifts. Wharfies, pilots, a Manly ferry skipper, the harbour master, Stella Maris volunteers, port officers and seafarers participated.

With the help of donations from Engage Marine, Port Authority of NSW, Sydney pilots and cutter crews, DP World wharfies, Svitzer, Tas Bull Foundation and individual donations to Sister Mary, the group put together packs that contain a koala, magnet, deodorant, hair shampoo and lip balm.

The most important gift is the Christmas card handwritten by a volunteer telling the seafarer how important they are.

Mr Kelly said the joy on the seafarer’s face seeing the group come up the gangway with the red Santa sacks made it worthwhile.

“Imagine been stuck on a ship for eight months and on Christmas day you don’t get a thing, whilst these seafarers bring all our Christmas gifts from around the world and keep the world ticking over,” he said.

“We are seeing fewer seafarers get ashore these days as they have inspections, less time in port and when you work six hours on six hours off in port you need to sleep.”

Mr Kelly said with the help of the pilots and cutter crews more than 60 ships will receive the Christmas gifts.

QLD COMMITS $21 MILLION IN FUNDING FOR LOCAL MARITIME INDUSTRY

The Queensland government has announced the launch of a $21-million grants program to stimulate investment in the state’s maritime industry.

The Backing Queensland Maritime Jobs program aims to see government and industry work together to target new coastal shipping services, maritime employment and training opportunities.

Transport and main roads minister Mark Bailey said the goal is to create more maritime jobs and improve the state’s coastal shipping industry.

“What I want to see is more local workers and local crews doing the heavy lifting at Queensland ports, and a real a revitalisation of the Queensland coastal shipping industry,” he said.

“The pandemic has shown that our long-term success will depend on our ability to build local capacity in our state’s economy.”

Mr Bailey said the $21 million in funding is intended to help industry create start-up projects or build on existing businesses to regenerate Queensland’s “maritime expertise”.

“That is an economically and strategically important objective,” he said.

DRUG BUST AT SYDNEY FREIGHT DEPOT, LOGISTICS EMPLOYEE ARRESTED

Authorities seized about 60 kilograms of cocaine from a Sydney freight depot and arrested a logistics worker in November for allegedly monitoring drug imports.

The man was one of eight people arrested during a joint-agency police investigation that uncovered more than 300 kilograms of imported cocaine and methylamphetamine.

Detectives from the NSW Police Force’s State Crime Command, the Australian Federal Police, and Australian Criminal Intelligence Commission commenced an investigation in 2021.

Investigators identified several transnational organised criminal networks working together to import drugs into New South Wales.

Detectives working on the operation, with assistance from the Australian Border Force and international law enforcement partners, found the 60 kilograms of cocaine inside pieces of machinery at the Sydney freight depot.

International Forwarders and Customs Brokers Association of Australia CEO Paul Damkjaer told DCN criminal syndicates are becoming smarter and are finding more creative ways to import drugs into Australia.

He said companies along the supply chain need to be aware of how an employee can use their position and access to systems to monitor and facilitate illegal imports.

“All international freight forwarders and customs brokers need to have due diligence as they employ workers,” he said, noting that most companies already do.

Michael Kelly; NSW Police Force and Australian Federal Police

Christmas celebrations at Sister Mary’s office

A logistics worker is arrested for allegedly monitoring drug imports

New STS cranes arrive at Lae

Two new ship-to-shore cranes were delivered to the South Pacific International Container Terminal (SPICT) at the Papua New Guinean port of Lae.

The ZPMC post-Panamax cranes have a reach of up to 17 rows across and can service vessels of up to 6000 TEU.

According to International Container Terminal Services, SPICT’s parent company, the cranes are the largest port equipment in PNG.

ICTSI South Pacific CEO Robert Maxwell said with the improved productivity the new cranes will bring, Port of Lae will soon become an important transhipment hub for the Pacific Islands region.

“As we plant the seeds to create sustainable port cities and communities, it is our hope that this new equipment will further sustain Papua New Guinea’s economic growth and expanding international trade over the coming years,” he said.

ICTSI said shipping lines can expect quayside productivity gains and shorter port stays after the cranes are operational.

NEW REPORT REJECTS PC MARITIME LOGISTICS INQUIRY FINDINGS

The Productivity Commission’s maritime logistics draft report was “ideologically motivated” and missed the mark on port productivity, according to an assessment from the Australia Institute.

The return of cruise in Townsville

Port of Townsville welcomed its first major cruise vessel in more than two years when Viking Orion berthed on 2 December.

The vessel carried 930 passengers and nearly 500 crew.

Queensland minister for tourism Stirling Hinchliffe said the government had worked closely with the cruise industry to get ships back on the water after Covid.

“With more ports and anchorages, great weather and unbeatable, world-class onshore visitor experiences, Queensland is Australia’s cruise ship capital,” Mr Hinchcliffe said.

“Onshore visitor experiences have always been important, but now more cruise ships are also taking on food and provisions in Queensland ports-of-call, which is terrific for local suppliers.”

Port of Townsville chief executive officer Ranee Crosby said Viking Orion would kick off a strong recovery for Townsville’s cruise industry.

“Townsville will welcome 12 cruise ships to the mainland and Magnetic Island this cruise season,” Ms Crosby said.

“This is a tremendous bounce-back from a two-year hiatus, and already we are on track to see a record number of vessels visit the Port of Townsville in the 2023-24 cruise season.”

Ms Crosby said after Townsville hosted the Australian Cruise Association conference in September, the cruise industry is excited about the town, as well as the port’s capacity to accommodate larger vessels – up to 300 metres – when the Channel Upgrade project is complete in 2024.

Its report, titled Lost at Sea, was published on 12 December. The Maritime Union of Australia commissioned the report.

In the report, economist Phil Toner challenged the methodology and conclusions of the PC report, which he believes “failed to properly interpret its own data”.

Lost at Sea noted several indicators of performance at Australian container ports, such as a 7.8% annual compound growth in the number of containers handled.

It also highlighted a 3.6% annual compound growth in containers handled per hour of work and a 5.9% annual compound growth in equivalent container units handled per crane.

Mr Toner’s report suggested the claims that Australian ports are not technically efficient rests on a “faulty methodology” that assumes ports should minimise their use of productive inputs to meet any given volume of traffic.

It argued that other criteria such as ship turnaround time and ability to respond to fluctuations in demand are more essential for shippers.

A performance on the wharf to welcome Viking Orion

The two new STS cranes at Lae aboard Zhen Hua 28 on 29 November 2022

Port of Townsville ; ICTSI

Your ship, is our ship.

You keep our world moving, we keep you in business.

Shipping is the lifeblood of our country and it's our job to keep you working safely and hassle free. Trusted. Experienced. Certified Commercial Marine Surveyors™.

Find a surveyor at www.aimsurveyors.com.au Email us at info@aimsurveyors.com.au or call us on 02 6232 6555

or call us on 02 6232 6555

Become a marine surveyor

Diploma courses start from just AU$544 per unit

Become a marine surveyor

Diploma courses start from just AU$544 per unit

In the Australasian region, private commercial marine surveyors work across the entire spectrum of shipping, encompassing all categories of surveys from cargo, insurance, salvage and towing, domestic working vessels to recreational vessel insurance and pre-purchase surveys. Units delivered by distance learning. Online study, including prescheduled tutorial webinars, and 1:1 sessions with assessors and industry experts. You may also be required to undertake practical survey tasks. If you are working in the industry, we can tailor practical tasks to suit your workplace environment, however you must organise your own access to a vessel.

In the Australasian region, private commercial marine surveyors work across the entire spectrum of shipping, encompassing all categories of surveys from cargo, insurance, salvage and towing, domestic working vessels to recreational vessel insurance and pre-purchase surveys. Units delivered by distance learning. Online study, including prescheduled tutorial webinars, and 1:1 sessions with assessors and industry experts. You may also be required to undertake practical survey tasks. If you are working in the industry, we can tailor practical tasks to suit your workplace environment, however you must organise your own access to a vessel.

Scan the QR or visit: www.aimsurveyors.com.au/Diploma-Courses Email us on training@aimsurveyors.com.au or Call us on 02 6232 6555

Scan the QR or visit: www.aimsurveyors.com.au/Diploma-Courses Email us on training@aimsurveyors.com.au or Call us on 02 6232 6555

Port Kembla handles first vehicle in light rail fleet

Port Kembla recently handled the first Parramatta Light Rail vehicle for an infrastructure project in Western Sydney.

The vehicle arrived at Australian Amalgamated Terminals (AAT) aboard ro-ro vessel Boheme. The 45-metre-long, dual electric vehicle was then transported to Parramatta.

NSW Ports commercial and business development general manager Campbell Mason said Port Kembla is well-positioned deliver large and unique operating equipment such as the Parramatta Light Rail vehicles.

“The light rail project is all about serving Greater Sydney’s growing population – a task undertaken daily by NSW Ports and logistics providers operating in Port Kembla,” Mr Mason said.

“The port handles hundreds of bulk and general cargo vessels each year carrying a diverse range of imports and exports.

“The direct road and rail links between Port Kembla and Greater Sydney help ensure productive and efficient supply chains for the people and businesses of NSW.”

Each light rail vehicle has the capacity for more than 400 passengers, which is expected to result in fewer cars on local roads.

BUNBURY WELCOMES NEW TUGS

The Bunbury port community welcomed its two newest Svitzer tugboats in December with a traditional maritime naming ceremony.

Svitzer Koombana and Svitzer Marlston were introduced earlier in the year but were officially named at the ceremony.

Agents, customers, community stakeholders, employees, Southern Ports representatives and Svitzer’s local crew attended the event.

Deputy Mayor of Bunbury City Council and member of Bunbury Port Community Consultation Committee, Cr Tresslyn Smith was naming mother for the event.

Southern Ports and Svitzer employees suggested the names, inspired by Koombana Bay, where Bunbury is located, and nearby hill Marlston, which overlooks the Bunbury and Koombana Bay.

Jodie Ransom, Svitzer’s general manager harbour towage – west, said Svitzer was proud of being a local company in the communities it operates in.

“Our local crew do an incredible job delivering safe, reliable and efficient towage operations,” Ms Ransom said.

Ms Ransom said the Bunbury crew in November reported its highest emissions savings in its short period of operations, under Svitzer’s carbon reduction program.

CONTAINERSHIP ASSISTS STRICKEN YACHT IN GREAT AUSTRALIAN BIGHT

The Australian Maritime Safety Authority co-ordinated the response to a distress beacon activated one afternoon in December.

The beacon was registered to a yacht that had lost rigging and had no fuel to motor back to safety. It was about 430 kilometres south of Esperance, Western Australia.

AMSA diverted two merchant vessels in the area – MV Conti Conquest and MV OOCL Texas to the yacht and tasked the AMSA Perth-based Challenger rescue aircraft to the scene.

MV Conti Conquest was the first to reach the yacht and eventually managed to transfer fuel to the vessel on the second attempt in six-metre

seas and 25 to 30-knot winds. The fuel allowed the yacht to make its way to safety around midnight.

AMSA said the incident was a reminder to all vessel owners and masters of the importance of making sure their vessels are prepared. AMSA thanked the master and crew of Conti Conquest and OOCL Texas.

Grand Chancellor Hotel, Hobart, TAS

Sheraton Grand Mirage Resort, Gold Coast, QLD

Sydney, NSW

Parramatta Light Rail vehicle offloaded in Port Kembla

Guests at the tug-naming ceremony in Bunbury

Wharf Structures Condition Assessment Manual

Overview

-A recognised asset management tool to help ports, terminals, local councils, engineering consultants with inspections of their static structural assets

- Guidance on a risk/criticality based approach to determine the frequency of inspections

- Information on inspection methods and data collection

Benefits

- Improve the sustainability of your infrastructure

- Take a standardised approach to inspections

- Enable repeatable and comparable inspections

-Ensure inspections are at appropriate intervals informed by risk/criticality

Lessons to learn

The Australian Transport Safety Bureau detailed issues that led to the loss of 50 containers in wild weather off the New South Wales coast in 2020, Ian Ackerman writes

APL ENGLAND ’S FIXED CONTAINER

securing arrangements on deck were in a poor state of repair when it lost 50 containers overboard in heavy weather in 2020, according to the Australian Transport Safety Bureau’s final report on the incident.

The incident occurred as the Singaporeflagged 5780-TEU ship was making its way down the east coast of New South Wales, bound for Melbourne. It had 3161 containers onboard (5048 TEU) and had departed Ningbo on 11 May.

In the early morning of 24 May, the vessel underwent a series of heavy rolls that resulted in containers falling overboard and shutdown of the main engine. The incident occurred about 40 nautical miles east of Sydney.

Sydney ports were closed at the time due to the adverse weather, so the ship was directed to Port of Brisbane, where it was brought into berth safely.

IMPORTANCE OF MAINTENANCE

The ATSB’s final report notes the importance of vessel fixtures being regularly maintained to ensure they are secure and stable. It said the strength of many securing fixtures was severely reduced by corrosion when the incident occurred.

“Our investigators found this condition would have taken several years of poor maintenance to develop,” ATSB Chief Commissioner Angus Mitchell said.

“This showed the ship had not received the scrutiny from crewmembers, shore management, or other agencies that a ship of its age or condition required.”

Mr Mitchell said in conducting these investigations, the bureau initially establishes what occurred at the time, what the environmental conditions were, the experience and competence of the crew and the state of the machinery and onboard equipment before looking at what contributed to the incident.

“One of the things [on APL England ] was the corrosion of the deck fittings,” he said.

“Having corrosion on seagoing ships isn’t something that is new. We are all well aware of the harsh environment that vessels operate in. This particular vessel was launched in around 2001, it was around 20 years old. We know that in many cases, particularly in these particular deck fittings, you can expect in a highly corrosive environment, they can lose up to a millimetre per year.”

Mr Mitchell said there was evidence that some of the fittings were 10 millimetres corroded.

“This wasn’t something that came about in a couple of months – this was years in the making, the state of these particular fittings that were involved,” he said.

“But that wasn’t the only thing that was at play here too. We certainly uncovered the ship wasn’t set up for the weather it was experiencing.”

In this particular incident, we know that all the other vessels in the APL fleet were inspected for the particular issues that we picked up here, and were subsequently repaired.

The investigation found procedures for adverse weather were not followed.

“Had these procedures and associated assessment tools been used, navigational and operational decisions could have been made, which would have better prepared the ship for the conditions encountered,” Mr Mitchell said.

“In the maritime environment … there are various procedures that you go through,” he said.

“There are things – and we also saw this in YM Efficiency as well – around making sure that lube oil is at sufficient levels so that when you do get excessive rolling, you’re not likely to bleed tanks dry or to be sucking in air, which then obviously leads to, as we’ve seen in this case and in others, shutting down of machinery. Once you lose propulsion, you’re really at the mercy of the sea.”

THE WEATHER

Mr Mitchell said other procedures weren’t followed in the lead up to the incident, including bringing on extra machinery such as secondary steering motors.

Angus Mitchell

Angus Mitchell, chief commissioner, ATSB

“These are the sorts of things we would expect ships to go through when they come into adverse weather, and we certainly have evidence that that was not followed, certainly not to the degree that the procedures would have indicated,” he said.

Mr Mitchell also said the vessel and its crew were relatively inexperienced with the type of weather that frequently occurs on the east coast of Australia.

“One of the crew members was sufficiently concerned that he pulled out his emersion suit in that weather,” he said.

“This leads us to believe that the ship and the crew weren’t really expecting that kind of weather and or weren’t as experienced in setting the ship up for it. They are contributing factors that we look at.”

IMPORTANCE OF REPORTS

Mr Mitchell said the intent behind ATSB reports is to find out systemically where improvements can be made.

“In this particular incident, we know that all the other vessels in the APL fleet were inspected for the particular issues that we picked up here, and were subsequently repaired, and we certainly don’t have evidence to suggest that many other vessels were in the same state as this one, but that’s certainly a good outcome for us as well,” he said.

“Having ships ready for the conditions that they’re likely to experience … that’s something that we’ve seen that’s come out of this particular report for this operator.”

APL also implemented additional safety action regarding planning and navigation in heavy weather.

“This incident should be a reminder to all ship masters and crews of the importance of adhering to the cargo securing manual, and of following specific procedures and guidance material ahead of – and during – adverse weather,” Mr Mitchell said.

“Identifying what’s gone wrong – that’s the easy part of the job. It’s then looking at all those elements that have contributed, and where we can make recommendations that are actually going to lead to a safer environment going forward.”

Mr Mitchell also welcomed an update in July 2022, from shipping classification society DNV, to include a new section in the relevant class guideline providing requirements on the allowable wear and tear of container supporting structures and container securing equipment.

APL England approaching Brisbane after the incident in May 2020

Landside fees boosting profits

The latest ACCC stevedoring report shows a changing balance between quayside and landside revenues for stevedores – and burgeoning profits, Paul Zalai writes

FREIGHT & TRADE ALLIANCE AND the Australian Peak Shippers Association were privileged to be given the opportunity to present at the Productivity Commission’s public hearing on 4 November in a part of its review of Australia’s maritime logistics system.

The questioning focused on stevedoreimposed terminal access charges.

SAL’S ATTACK ON TRUCKS

The commentaries from all witnesses make for interesting reading; however, one of the more fascinating highlights was the onslaught from Shipping Australia against “dirty” road transport operators providing the rationale for stevedores to maintain TACs. This messaging was clearly not made in the heat of the moment but was a deliberate scripted position representing the views of their shipping line members – a position reiterated in a recent SAL public commentary titled Trucking industry should bear its full costs; further subsidies for trucking is bad policy

While we do not want to again write War and Peace in response to these statements, it is sufficient to note the ACCC stevedoring monitoring reports referencing the fact that shipping lines are the beneficiaries from a reduction in stevedore quayside rates, which are largely being offset by stevedore landside charges.

This year’s ACCC report (see page 26 for further analysis) highlights the balance of quayside and landside revenues with shipping lines being the clear beneficiaries.

“In the first 10 years of the ACCC’s monitoring, stevedores recovered an average of 87% of their revenue through quayside charges to shipping lines,” the report says. By 2021-22, this had fallen to 59%, with the incumbent stevedores recovering 41% of their revenue through landside charges to transport operators.”

It is also important to note that TACs are not just imposed on road transport operators, they are also applied to rail.

Adding salt to the wounds are the empty container parks quickly catching up to

the stevedores with their vehicle booking charges, notably during December 2022, the first has just crept over the $100-percontainer mark.

In a nutshell, it is clearly a means of shipping line-contracted entities gaining revenue from third parties without having to enter negotiations with their commercial client. Foreign-owned shipping lines are clearly the winners, with savings adding to multi-billion-dollar profits proudly reported in recent years.

commercial clients. Similarly, stevedores and empty container parks should be forced to either absorb operating costs or pass these on to their commercial client (shipping lines). Shipping lines then have the choice to absorb or pass those costs onto exporters, importers and freight forwarders through negotiated freight rates and associated charges.”

REFORM TO SCRAP TACS

Whilst we remain confident that the commission will support the FTA/

In accordance with the National Voluntary Guidelines’ 60-day minimum notification period, DP World Australia released its Public Tariff Schedule outlining a wide range of price increases (effective 2 February 2023) in Fremantle, Brisbane, Sydney, and Melbourne.

Following the Patrick lead and effective 2 February 2023, DPWA is also introducing a “Pondus” charge for weight misdeclarations at their Melbourne facility.

Furthermore, a new “energy charge” will also apply and be paid by transport operators, again effective 2 February 2023.

VOLUNTARY GUIDELINES

The National Voluntary Guidelines are a waste of time, offering no ability to influence price on landside charges.

It is a purely bureaucratic process giving stevedores tacit approval to deploy TAC increases, albeit with 60 days’ notice.

The FTA/APSA submission to the Productivity Commission summarises a consistent position advocated to both state and federal governments over many years:

“All businesses face a dilemma of how to deal with unavoidable costs such as rent, infrastructure, labour and power. Those same businesses are then forced to either absorb these costs or pass them on to their

APSA position by retaining its draft recommendation for regulation against TACs, we will need the federal government to support this with legislated reform.

In an encouraging development during an address delivered in the Senate on 23 November, Senator Glenn Sterle was particularly agitated by the SAL public policy position that attacked road operators and appeared supportive of the Productivity Commission’s draft recommendation to regulate against TACs.

FTA/APSA has maintained its close liaison with the Productivity Commission and will be escalating its engagement with key stakeholders in Canberra during the first quarter 2023 focussing on necessary legislative change to deliver fairer operational conditions for the international trade sector and to assist in Australia’s broader economic recovery.

Adding salt to the wounds are the empty container parks quickly catching up to the stevedores with their vehicle booking charges.

Paul Zalai, Director, FTA; secretariat, APSA

Maritime SheEO – making waves

Jillian Carson-Jackson summarises the key moments from the recent Maritime SheEO conference, held both virtually and in person this year

WE KNOW WE NEED TO DO MORE for diversity, equity, inclusion, and acceptance in the maritime industry. If you want to know how you can make a difference, you only need to look to Sanjam Sahi Gupta, founder of Maritime SheEO.

Launched in 2019, during the IMO focus year for empowering women in maritime, Maritime SheEO is a focus platform for driving change in a continually maledominated maritime industry. Throughout the challenges of the global pandemic, Maritime SheEO continued to make waves. When the first-ever Maritime SheEO conference was affected by the global pandemic, the organisers brought together global maritime experts on the TOOL Aquarium digital conference platform 23 November 2020.

Conceptualised by Sanjam Sahi Gupta, and supported by Birgit Marie Liodden, the founders of Maritime SheEO and TOOL, the conference focused on “Diversity and Sustainability: The Business Case”. The event saw more than 2400 participants join virtually from 77 countries, with 60 speakers from 25 countries. In 2021 the

conference, again online, was able to reach over 3600 participants with more than 100 speakers.

THIS YEAR

This year the conference was held in a hybrid manner, with a physical conference held in Mumbai, India and online participation. The energy was palpable with over 150 people in the room, and more than 1300 attending and following the event virtually.

The focus for Maritime SheEO 2022 was “Changing Leadership Paradigms”, and the conference itself was held on November 16 – the international day for tolerance. With a 50/50 gender ratio, the support from allies highlighted the move to a tolerant and diversity focused maritime industry.

The conference provided an opportunity to hear insightful sessions from eminent maritime leaders, including Dr. Jose Matheickal, Chief, Department of Partnerships and Projects at the IMO; Shri. Amitabh Kumar, Director General of Shipping, Government of India; Mr. Ottar Ostnes, Director General of the

Department of Maritime Policy and Coastal Development, Norway; and Dr. Cleopatra Doumbia Henry, President of the World Maritime University.

Birgit Liodden, Founder of The Ocean Opportunity Lab, moderated the day, highlighting the need – and opportunity – for networking, mentoring and peer support to change leadership paradigms in maritime.

As we have seen over the years of the focus columns in DCN, diversity in maritime faces many challenges –structural, cultural, operational, and practical. As noted in the opening session, the tendency in the industry is to promote men on their potential, while we promote women based on their track record. This is a systemic limitation, as the opportunities afforded to women are limited – women must work harder than men to find opportunities to develop their potential to be able to provide a track record and then be considered for promotion.

SNAPSHOT OF THE SESSIONS

Following an inspiring opening session, the Leadership Accelerator Program (LEAP) was introduced, with testimonies from those who were part of the first Maritime SheEO LEAP. With support from the IMO, the aim of this program is to equip women in maritime across all aspects – afloat or ashore – with the skill sets to make better decisions and be better leaders. The core focus of the program is on a growth mindset, strategic acumen, leadership development and personal branding.

The conference also saw the launch of the new TOOL female candidate pool by Brigit Liodden. The session highlighted why it matters to have women in leadership and on boards. While we know the business case for diversity, most boards in the maritime industry remain very male-dominated. As the industry looks to embrace DEI, many claim it is challenging to find enough women for boards and leadership roles. Initiatives such as the

Jillian Carson-Jackson (Australia), Fabiana Martins (Brazil), Ilona Denisenko (Russia), Reshma Nilofer (India)

female candidate pool, the MCA speakers pool and, more recently, the IMO speakers bureau – with the aim to amplify diversity of voices in maritime provide an opportunity to bring this diversity of expertise to the fore.

The panel on courageous women provided an opportunity to showcase the resilience and vision of women in nontraditional roles – including a race car driver, maritime pilot, marine surveyor, WISTA president and managing director. Their passion is truly inspiring. A wide range of topics with expert discussion panels included a focus on sustainability in shipping, sustainability through the legal lens and supporting best practices in diversity.

The event also was a great opportunity to launch the Gender Diversity (second edition) handbook. WISTA International, Anglo Eastern, ISWAN and ICS conducted a public, online survey which examined how women seafarers perceive “discrimination”, and how it manifests onboard. As Michael Sandaluk, Chief Human Resources Officer for AngloEastern Ship Management says in the forward, “the most important thing for us all to do is act – whether you are a captain, officer, manager or employee –think about what you can do to leverage the full diversity of your team, create a workplace which is inclusive and where everyone feels safe”.

AWARDING DIVERSITY AND INCLUSION

A highlight of the conference was the awards – with awards from across the industry. Awards included SheEO Leads: Katharina Stanzel (managing director at INTERTANKO) and Dorothea Ioannou (CEO of American P&I Club) and Champion of Diversity: Capt. Arvind Shankar (culture and capability manager at A.P. Moller – Maersk).

The newest category for awards is the Most Diverse Board – for companies that have the most diverse boards with a minimum requirement of 50% (or more) women to be considered for the award. Unfortunately, there were no entries for this award, but it is something to look for in the future.

Maritime SheEO is making waves in many ways, and the 2022 Conference just continued to show the importance of sharing the vision, seeing the change we want and being the agents of that change.

Today, the only thing that separates women from reaching leadership positions is opportunity. We all need to champion diversity. Diversity what makes our industry special.

Sanjam Sahi Gupta, founder of Maritime SheEO

Sanjam Gupta and audience

Sanjam Gupta (Maritime SheEO) , Arsenio Dominguez (IMO), Jillian Carson-Jackson, Rajesh Tandon and Ondrilla Fernandes (ICS)

Some of the audience

A way forward for Australian seafarer training

While the Strategic Fleet Taskforce considers a range of options to secure sovereign shipping capability, Tony Cousins details a way to open seafarer training pathways to support the entire Australian maritime industry

AUSTRALIAN MANNED VESSELS

need qualified Australian seafarers which, despite recent Productivity Commission assertions, are in critically short supply.

Fundamentally, this is because there has been less and less investment in seafarer training in Australia over the past 20 years.

Traditionally, shipowners employed new-entrant trainees in the form of deck and engineering cadets, but the demise of Australian flag shipping has resulted in precious few shipping companies having the capacity or inclination to invest in seafarer training of any description.

The Maritime Union of Australia may have seen this coming and took the initiative to form Maritime Employees Training, which gave many young integrated ratings a start, but even that has dropped off in recent years, in part due to the lack of Australian ships that can provide training berths, let alone future employment.

The shortage of training berths has been a catch cry of the Australian maritime sector for many years, but in my experience, it is not the core issue.

THE CRUX

At the heart of the matter is that the maritime industry cannot continue to

rely upon shipping companies, domestic or international, to shoulder the training burden on their own. Good shipping companies will always employee cadets, trouble is there are too few shipping companies – let alone good ones – and hardly any that draw their seafarers from Australia.

What is required is a paradigm shift such that the entire Australian maritime sector appreciates it must play its part in developing the future skills they need for their businesses to survive and flourish.

Oil and gas majors; iron ore and coal exporters; state government port authorities; private port lessees; pilotage companies; tug operators; stevedores; marine surveyors; classification societies; and safety regulators all draw on experienced professional seafarers, often in the prime of their career. Little wonder the shipping companies are left frustrated and disinclined to invest in training, seeing their best and brightest walk down the gangway into plum shore jobs.

These end users of maritime skills may say they don’t have access to ships or training berths necessary to provide qualifying sea service. That could well be the case, but they certainly have access

to clients who do, clients in the form of shipping companies, many of whom are open to discussion about providing training berths, if not employing the trainees themselves.

Recent experience has shown some international shipping companies are prepared to take Australian cadets onboard – which is positive but begs the question: should we as an Australian industry be reliant upon foreign vessels to facilitate the training of Australian seafarers? Hardly sounds strategic.

A SOLUTION

What if these supposedly elusive blue water training berths on Australian vessels were not so hard to find?

What if, for example, federal government policy required all government-controlled vessels – such as Nuyina, Investigator, Sycamore, Coral Knight, Ocean Protector, Ocean Shield and others – to have cabin space for Australian deck officer, engineer and rating trainees? These berths could be available to host trainees funded by other industry stakeholders under a co-ordinated program that affords the broadest possible sea going experience. That program could be integrated with the mainstream Australian

merchant fleet, encouraging shipowners to participate by providing training berths for third-party-sponsored trainees while rotating their own trainees through an industry wide scheme.

The scheme might also include an exchange program with the Royal Australian Navy, whereby merchant trainees go to sea on suitable RAN ships and naval personnel get experience on merchant vessels, naval supernumeraries being common place not so long ago. This would unlock substantially more training capacity with the added benefit of increasing potential access to future shore-based maritime skills by breaking down the perception of long-standing barriers between merchant and regular navy skillsets.

Several Australian ports have already taken the initiative to employ a handful of officer cadets under standalone schemes. If the difficulty of finding seatime can be sorted as part of a national program, it is hard to imagine Australian ports, resource majors or shipping interests of any real scale not wanting to sponsor local trainees in such a system.

operators are in place, along with the requisite insurances and safeguard compliance with minimum terms and conditions under the Maritime Labour Convention , all subject to AMSA approval.

The GTO would organise training berths with participating vessel operators and arrange trainee travel, while encouraging their respective membership and other industry stakeholders to sponsor trainees. Shipping Australia, primarily representing international ship owners might also participate, offering berths on some of their membership’s foreign-flag vessels, which is happening in a sporadic fashion already, to bolster domestic training berth capacity. Time on an international trading foreign vessel would only add to the learning experience.

Maritime unions can also play an important part independent of the GTO by championing the opportunity for quality Australian seafarers, providing mentors for trainees, working with industry to attract new entrants and ensuring the viability of the program by not seeking excessive terms and conditions. There would also be renewed opportunity for current

funded by the industry, would also support Australian maritime training institutions, including the Australian Maritime College, regional TAFE colleges and sail-training vessels with a steady stream of students moving through the system, including streamlined pathways from DCV to blue water qualifications.

Having endorsed a new, industry-wide national training scheme, AMSA could also demonstrate its commitment to the program by sponsoring trainees from the outset, affording the new system significant international credibility, with the effect of encouraging more industry players to provide training berths and/ or sponsor trainee positions. Any new Australian-flag tonnage brought about by the broader strategic fleet deliberations will only bolster national training capability.

A WAY FORWARD

The old system is broken and what is required is a very different approach, whereby the maritime industry does not rely on shipping companies alone to train seafarers. The end users of maritime skills in Australia, of which there are plenty, should take up the reins by sponsoring trainees through a sustainable GTO formed by peak industry bodies that employs trainees and coordinates the availability of training berths with participating ship owners.

Further, state and federal government marine services supply contracts – for example for port pilotage, towage, dredging and marine construction – could require proponents to include maritime industry training commitments in tender responses, just as they do for local content, indigenous participation and regional procurement. This would systematically shift the responsibility for training away from the ships to the shore-based users of maritime skills.

HOW COULD THIS BE PULLED TOGETHER?

Peak industry bodies, including Maritime Industry Australia Limited, Ports Australia and the Australian Resources & Energy Employers Association could come together with the Maritime Unions to form a group training organisation (GTO) that would employ the trainees. This organisation would ensure the appropriate contractual arrangements with vessel

integrated ratings to pursue deck officer or engineering qualifications.

CLOSER TO HOME

Not all seatime has to be completed on blue water commercial trading vessels. Valuable seamanship skills are acquired on tugs and barges, pilot boats, dredges, workboats, ferries, tallships, charter vessels, superyachts and the likes.

Historically, AMSA approval of qualifying sea service has at times appeared ad hoc, complicated perhaps by the avalanche of Domestic Commercial Vessels (DCVs) under transition to a single national law. AMSA could now take the opportunity to clarify what constitutes alternative qualifying sea service, such that these, often more readily available inshore training opportunities can be incorporated in a new system with significantly enhanced capacity and flexibility.

Once established, a co-ordinated national training system, largely self-

State and federal governments and the national safety regulator can show leadership by mandating training berths on government controlled vessels, and requiring respondents to government and Port Authority marine tenders to commit to industry training investment. By provided a structured industry wide training solution, with a clear pathway for deck, engineer and rating trainees in collaboration with the national maritime sector, Australia can attract and retain the sovereign maritime skills that will enable Australia to continue to prosper as a proud maritime nation.

Jim Wilson

Once established, a co-ordinated national training system, largely self-funded by the industry, would also support Australian maritime training institutions.

Tony Cousins, principal, Anteres Marine; nonexecutive director, VICT

Plusses and minuses

Shipping Australia’s Jim Wilson examines some points from the ACCC’s Container Stevedoring Monitoring Report

SHIPPING AUSTRALIA WELCOMES

most of the positions in the recent Container Stevedoring Monitoring Report from the Australian Competition and Consumer Commission (see page 26 for further analysis).

We largely agree with the ACCC’s position on Australia’s container ports: they have little to no regulatory oversight, and – given both their pivotal importance to Australia and the fact they are regional monopolies – we absolutely agree that Australia’s container ports should be subject to regulatory oversight.

We agree with the ACCC comments that there needs to be a regulatory framework extended over all privatised container ports and that it should extend to all forms of pricing by a port (and not just land rents). We note and support the comments that an industry-specific negotiate-arbitrate model should be implemented at all container ports to assist port users.

BENCHMARKING REGIME

For the same reasons, we agree with the ACCC that there should be a benchmarking regime set up to monitor the performance of Australian container ports.

Ports are far too important to the wellbeing of Australians to be operating without scrutiny.

We also agree with the ACCC that it is right to benchmark container port performance against international comparators and we assert that the most appropriate comparison is that published by S&P/the World Bank.

We note the many criticisms of that report (Shipping Australia does not necessarily agree with those criticisms); however, it is the first and only global report of its kind. It is the only international comparator that exists. We therefore urge all parties to work with S&P/the World Bank to make the global comparative container port performance report the best that it can possibly be.

CONTAINER HIRE FEES

We feel the ACCC’s comments about ongoing hire fees are unreasonable.

The starting and end points here are that ocean shipping containers are the property of ocean shipping companies. Those companies bear the financial burden of having boxes manufactured, having them sent to the right place at the right time, and for keeping them in good repair. Ocean shipping companies have the absolute right to charge a fee for the use of their boxes.

as a whole if problematic behaviour by a small number of bad actors is deterred. As the Productivity Commission has previously noted, reducing the ability of suppliers to deal with such bad actors can result in changes to the terms and conditions upon which a product is supplied.

While Shipping Australia does not discuss the commercial dealings of our members with their customers, we would be wholly unsurprised if the terms and conditions of the supply of a

Secondly, the Australian economy needs boxes to be returned to shipping companies so that boxes can be re-filled with cargo that the Australian economy needs.

Some shippers and consignees need to be incentivised to return boxes to their owners. It is well known that some shippers view containers as a gift – take a tour around some of the Pacific Islands and you will see a wide variety of unusual and creative uses to which shipping containers have been put. Other shippers sometimes like to use containers as a cheap form of storage space.

INCENTIVISING BOX RETURNS

The way to incentivise the shipper community to return boxes is to charge an ongoing hire fee. We note the comments made by the ACCC about incentivisation. There are two sets of incentivisation that ought to be borne in mind.

Firstly, individual companies may need to be incentivised. Secondly, the sector as a whole needs to be incentivised. As the Productivity Commission has previously noted, there can be benefits to consumers

container were to change in response to any restrictions on the ability of ocean shipping companies to charge for the hire of boxes.

We also note that transport operators, shippers and consignees have a wide range of ways to avoid ongoing hire fees – they can return boxes in good time, trucking companies can avoid competing for business on the basis that they will get the box back in time, trucking companies can change their own terms and conditions of business so that they are not liable for ongoing hire fees, shippers and consignees can buy and operate their own containers, insurance can also be obtained, extra free-time can be bought or requested from ocean carriers.

We ... agree with the ACCC that there should be a benchmarking regime set up to monitor the performance of Australian container ports.

Jim Wilson, policy and communications manager, Shipping Australia

Australian container stevedoring: the state of play

The annual Container Stevedoring Monitoring Report, compiled by the ACCC, provides an annual peek at the workings of the sector

IN ITS ANNUAL CONTAINER

Stevedoring Monitoring Report, the Australian Competition and Consumer Commission detailed disruptions in the supply chain stemming from the Covid19 pandemic and other developments. However, global shipping reliability has improved in the second half of the year.

A stevedore told the ACCC that as few as 10% of ships arrived within two hours of their designated berthing window in 2021-22, but that figure had improved to between 30-40% in recent months.

“Congestion in global supply chains means it’s still harder to move containers than it was pre-pandemic, but the situation has improved considerably this year,” ACCC Commissioner Anna Brakey said.

The ACCC has also heard that unreliable shipping schedules have caused vessel bunching at Australian ports, resulting in large peaks and troughs for stevedores’ container handling.

Between 2019-20 and 2021-22, the net ship rate – a measure of the number of containers moved on or off a ship in an hour – at Australia’s container ports fell by 18%, at least partly due to vessel bunching.

“Less reliable shipping schedules, an increase in the size of ships visiting our

container ports, and labour shortages across the whole supply chain have all impacted the efficiency of stevedores’ operations,” Ms Brakey said.

On average, stevedores are taking longer to move containers to and from ships.

BIGGER SHIPS AND CONGESTION

More large containerships are visiting Australian ports and fewer medium-sized ships are visiting. This, the ACCC says, causes a trend towards more lifts per ship.

Stevedores have told the ACCC that servicing larger ships presents more challenges and results in peaks and troughs in workloads. It makes it difficult for the companies to allocate staff and equipment.

“Higher peak volumes, coupled with limited flexibility in rostering staff, can

result in increased overtime costs and idletime where staff have little to do between ships,” the report’s authors wrote.

“In addition, stevedores have had to invest more in equipment, particularly larger cranes, to service higher peak volumes and larger ships.”

INCREASING PROFITS

The operating profit margin of Australia’s container stevedoring industry has increased by 14% since the start of the pandemic, according to the report.

The stevedores’ profit margin is at the highest level since before the Patrick and DP World Australia duopoly ended nearly a decade ago.

The report shows the industry operating profit margin of Australia’s five stevedores was 24% in 2021-22, up from 10% in 2019-20.

Between 2000 and 2013, Patrick and DP World (Sydney, Melbourne, Fremantle and Brisbane), and the Adelaide Container Terminal collectively achieved operating profits of between 21 and 27%; however, competition from Hutchison and VICT, combined with large infrastructure investments and other developments, led to their margins declining over the following seven years.

“Importers and exporters benefited from an injection of new competition at our largest ports several years ago, but we’re concerned that in the past few years those gains have been eroded to the detriment of

$346.1 ã 4.8%

importers and exporters, and, ultimately, Australian consumers,” Ms Brakey said.

The ACCC has not yet formed a conclusive view on the drivers behind the recent increases in stevedores’ operating profits. Severely constrained global shipping capacity throughout the pandemic made it harder for importers and exporters to change to a different shipping service, and by implication a different stevedore, which may have weakened price competition between stevedores.

“If stevedores’ higher profits are due to the recent shocks to the global container freight supply chain, we’d expect their profits to decline over time as shipping and terminal congestion eases,” Ms Brakey said.

“We’ll be closely scrutinising the stevedores’ charges and financial performance in the coming years to see if there are any structural or behavioural factors sustaining higher profits, and whether any further policy or regulatory responses are warranted.”

FREIGHT RATES FALLING FROM A GREAT HEIGHT

The recent slowdown in global trade has put downward pressure on global freight spot rates, which in November this year fell below US$2000 per 40-foot container according to the Platts Container Index produced by S&P Global Commodity Insights. However, this is still roughly double the average rate in 2019.

Global freight spot rates peaked in September 2021 at nearly US$8000 but fell to about US$5000 by the end of June 2022.

Elevated freight rates and generally higher costs for importers to use the supply chain have contributed to higher prices for Australian consumers and have put upward pressure on inflation.

PRIVATISED PORTS

The ACCC said the regulation of Australia’s monopoly container ports is ineffective, and the threat of further regulation in most states is not sufficiently credible.

The commission said there is currently the potential for privatised port companies to exercise of market power to exist undetected due to the inadequate level of regulatory scrutiny.

The report says that, at a minimum, Australia’s privatised container ports should be subject to greater regulatory oversight.

The ACCC said the Port of Melbourne is subject to more rigorous regulation than other privatised container ports.

However, the report said the Essential Services Commission of Victoria has found that the port has exercised its market power to set land rents and demonstrated non-compliance with its regulatory pricing requirements.

“Despite the significant nature of these findings, there has not been any material escalation in the level of regulation,” the ACCC report authors wrote.

“The regulatory oversight at other container ports does not appear to be sufficient to enable state regulators to proactively identify the exercise of market power. This is most pronounced at the Port of Brisbane, which does not appear to be subject to any active regulatory oversight,” the authors wrote.

“There is high potential for exercises of market power to go undetected if a regulatory regime is not designed to proactively identify and investigate them. If state regulators are not actively assessing whether ports are exercising market power, state governments cannot determine whether current regulation is adequate, and so the threat of further regulation lacks credibility.”

PORT CALLS BY CONTAINER SHIPS, BY TONNAGE: 2011-12 TO 2021-22

Small ships (less than 20,001 gross tonnage) Medium ships (gross tonnage 20,001-80,000) Large ships (greater than 80,000 gross tonnage)

2001-02

When

collideworlds

If the thought of a digital future is a glowing beacon for the maritime and logistics industry, then cyber threats will always follow it like a shadow. Data breaches in our industry and others in recent years remind us again and again of our vulnerability as digital and physical worlds converge.

Information technology’s integration with shipping and logistics has not come as a surprise, but its sudden acceleration did.

Jonathan Kempe, CEO of supply-chain technology company Shipz, told DCN this convergence has supported the transition from manual charting processes to satellite navigation and has enabled ships to communicate vital information with ports. It means vessels can be located in open ocean. Mr Kempe said

there are upstream and downstream benefits to this level of visibility, but there is a catch.

“As soon as you start increasing the visibility of things … you start to create a data trail,” he said. “The accumulation of that data trail and the volume of data that has started to be accrued by various players in companies has dramatically accelerated.

“Now you’re talking about a vessel that every couple of minutes is spewing a piece of information up through AIS or some similar system about where it is, how it’s operating, what tonnage it has, what sort of cargo it might be carrying, and so on.

“All of a sudden that one ship has gone from being dumb, dark and disconnected to being hyperconnected.”

Rapid convergence between IT and supply chains has created a digital battleground for the maritime and logistics industry, Abby Williams writes

The industry now has to consider an emerging threat landscape, but Mr Kempe said the threats are not adequately being addressed.

“Those threats are many and varied, and in the maritime domain, whilst there’s been instances of breaches and those sorts of things, it’s still relatively immature in terms of the depth of what those things can do,” he said.

“But regardless of how prolific those attacks may or may not have been in the past, they have a huge amount of impact on economies and companies.”

Mr Kempe said hyper-connectivity has had consequences for employees, the movement of cargo and how people think about security.

“The personnel involved in all of those interchanges have had to rapidly come to terms with the fact that their lives are now operational and digitised.”

He said the transition has been especially difficult for those in maritime and logistics workforces who are suddenly faced with unfamiliar, digitalised operations.

The transition has also impacted trade and how much is known about the commodities moving through supply chains.

As the landscape changes and vulnerabilities emerge, the industry needs to strengthen its cyber security posture.

“When you’re dealing with the movement of cargo of commodities, when you’re dealing with national security that hasn’t had digital components integrated into it, you can start to see that it becomes a melting pot of potential horrific activity.”

RISKS AT SEA

With ships online and defences down, there is a lot of room for things to go wrong. Mr Kempe said it is possible for a cyber actor to, for example, remotely log into a ship’s system, fill the ballast tanks on one side of the vessel and roll it in a harbour.

“You can backdoor in through a satellite communications link, which is connected to a piece of hardware, which is sitting in innocuously inside someone’s vessel,” Mr Kempe explained.

“You can get down to those operational systems, which do things like ballast management or power control, and you can dramatically impact a vessel.

“All of a sudden, you realise … that things are probably not configured in the way they should be for the current context that we’re in.”

Nation states and other actors have been known to obfuscate the locations of their ships based on AIS footprint. Mr Kempe said the motivation could be to evade sanctions or hide vessels from potential competitors, among other reasons.

He described a hypothetical scenario in which two competitors in commodity transport have ships on track to reach port at the same time. If one’s competitive commercial advantage were to depend on their vessel arriving first, they could manipulate the relevant systems to show their vessel running early, and their competitor’s vessel running late.

“What if what if I could spoof or deceive you into believing that the vessels that were there, weren’t there?” Mr Kempe said.

“What would that mean for my insurance? What would that mean for the downstream commodity purchaser who had contractual obligations to pay for something at a certain time? What it would mean is the entire landscape gets skewed around the digital footprint of a physical asset.

You’re talking about something that should strike the fear of God in people. You’re talking about something that will be crippling for months, not just days or weeks.

Jonathan Kempe, CEO, Shipz

massive bomb,” he said.

“[It could be] attached to a system which isn’t secure, which could be remotely piloted, which doesn’t have human intervention and ingenuity and wherewithal to potentially steer in the right direction when it gets off course.

“People talk about them as if they’re just natural extensions or evolutions of our current process, and they forget that they introduce inherent and critically endangering risks to all of us.”

WEAPONS OF MASS DISRUPTION

Mr Kempe said a simulated attack on critical port infrastructure in the United States some years ago (organised by government departments) exposed the weakness of port infrastructure. He said the Australian industry is also not ready for cyberattacks, partly because it lacks a direct plan to address significant concerns.

“If a vessel contains a bad USB stick that is left lying on the ground for you to pick up and plug into your computer, if it contains within its own infrastructure architecture, and digital systems, a ticking time bomb of sorts such that when it connects to a port system as it enters a harbour, and transmits that to cripple the port infrastructure, you’re looking at significant cost, significant downtime, a huge amount of disruption.”

Mr Kempe said dirty bombs and other weapons of mass destruction have a digital equivalent: weapons of mass disruption.

He said the latter does “almost exactly the same thing, if not worse”. However, there is very little infrastructure or skill in place to combat the digital threats when – not if – they go awry.

There is also a call for comment on foreign-built cranes positioned inside ports as critical components of the infrastructure, according to Mr Kempe. The questions should concern the firmware they’re using, the software they’re connected to, who has remote

access and whether any of those factors pose a threat to the operation of the port.

a basic degree of remote access to the infrastructure, it is within their scope to shut it down.

security incident … combined with a cyber security incident of some magnitude,” Mr Kempe said.

about something that should strike the fear of God in people. You’re talking about something that will be crippling for months, not just days or weeks.

“Think about that on a nation scale and realise … the degree to which these things are generally haphazardly deployed. And all of a sudden, you’ve got something that has the capability – and I say this hesitantly but knowing that it’s actually the truth –the capability and potential to start a world war.”

WELCOME

TO THE FUTURE

Severely disruptive attacks are possible, but Mr Kempe said they’re not happening regularly (yet) because of the degree of education needed to exploit the system.

“Operational systems are functionally complicated, and not only do you have to have that initial motivation, you have to be able to commandeer the system at the other end,” he said.

“The fact that they aren’t happening in any degree of frequency is pleasant. The fact that they can happen and may happen with more frequency is terrifying.”

Mr Kempe said the decision-makers are for the most part fixated on physical security but needs to have a mindset of investing an equal or comparable amount of resources in a digital equivalent for cyber security.

“Is that happening? Not in the slightest.”

Hypothetical scenarios offer a glimpse of what may come, but recent attacks against systems and

It’s every employee’s job to think about cyber security … especially senior management.

Peter Creeden, managing director, MPC International

infrastructure evidence the reality of the threat and just how much damage they can cause.

Ahmed Khanji, CEO of Sydney-based cyber security firm Gridware, said the Colonial Pipeline incident is an example of how and why cyber actors might target critical infrastructure. In May 2021, a major oil pipeline suffered a ransomware attack that took the system offline until the group behind the attack received US$4.4 million worth of bitcoin (now equal to around $6.4 million). The pipeline was shut down for almost a week.

“If it wasn’t a pipeline; if they had hit a major port in the United States, then maybe for a month, shipping containers wouldn’t be able to be processed or would have to be processed manually, with paper and pen,” Mr Khanji told DCN

Gridware has a partnership with supply-chain consultancy MPC International, whose managing director Peter Creeden recalled cyber-attacks against shipping companies in recent years. CMA CGM reported a data breach last year; COSCO was hit in 2018; and in June of 2017 a piece of malware called NotPetya caused chaos at Maersk.

“That was probably the biggest one in our industry from a cyber-security attack,” Mr Creeden said of the Maersk incident.

The malware destroyed 49,000 company laptops and 3500 servers. All 1200 Maersk applications were inaccessible and around 1000 destroyed. Mr Creeden said outdated legacy systems and poor management of IT infrastructure contributed to the severity of the situation, but the critical failure was that a person had allowed remote access to their computer.

“Because there were no firewalls between the local offices and their mainframe systems, the virus got into the mainframe and wreaked havoc on Maersk.”

EXPERTISE AND LACK THEREOF

Gridware and MPC International work together to help organisations, including ports, strengthen their cyber security to avoid incidents reflective of those seen in the past few years. They recalled one port assessment that revealed 250 cyber-security risks, warranting a three-year operation and dozen practitioners to address the risks.

Mr Khanji said one of the most unexpected cyberrisks is the use of legacy systems, heightening the risk of contagion.

“It’s surprising to see ports that have been operating for decades still using Windows XP,” he said.

“Windows XP has been fully decommissioned by Microsoft; there are no more security patches, and it has over 100 what we call CVE-10, which is the highest vulnerability possible that can give any hacker that utilises that exploit full rights to Windows XP. A Windows XP device is like an open book.”

Mr Creeden said he has found that cyber security in the port space is low.

“It’s not just the port authorities, it’s the terminals too,” he said. “All of these companies that are ports or stakeholders in the port space … have to understand that they are providing a service, and they could be the cause of an attack on someone else.”

The Australian Signals Directorate, the government agency that deals with national cyber security, has developed baseline strategies designed to make it harder for adversaries to compromise systems. Mr Khanji of Gridware said the so-called Essential Eight strategies are a valuable starting-point for organisations looking to uplift their cyber security.

The eight strategies are application control, patch applications, configure Microsoft Office macro settings, user application hardening, restrict administrative privileges, patch operating systems, multi-factor authentication and regular backups.

“Having appropriate backups of your critical files … sounds really obvious, but actually, most organisations aren’t doing backups in the most effective way,” Mr Khanji said.

He said he has also worked with organisations whose backup files are all located in the same network. The habit compromises the network, as it is one of the first things threat actors will look to destroy, along with any chance of recovery.

Mizzen; Travel man

Mr Kempe highlighted the challenge of misleading guidance from some dodgy practitioners. He warned of some professionals who peddle “half-baked, blinky-light solutions that don’t do anything”. He said there are practitioners who confuse businesses with examples of technologies that are “technically bankrupt”, “completely irrelevant” and which won’t actually achieve anything.

“When you have that as part of the fabric of the decision-making process, it becomes very difficult to mitigate those risks, firstly because you don’t understand; secondly, because available solutions promised one thing and then don’t deliver; and thirdly, that lack of understanding feeds into a lack of preparedness.

“If you aren’t willing to invest the time, effort or energy to understand how that convergence impacts you, and then rank your risks according to your own business needs, you’ll never understand or solve the problem.”

LET’S GO PHISHING

Mr Creeden said a typical cyber-security assessment involves gauging not only digital maturity, but also the executive management team’s interest in cyber security.

“There are more than a few times that I’ve heard senior managers say, ‘that’s the IT guy’s job’. And it’s every employee’s job to think about cyber security … especially senior management.”

MPC International and Gridware have observed a pattern of behavioural risks and the psychology of how people are tricked into falling for scams such as phishing. Mr Creeden emphasised the need for sophisticated passwords, and importantly, not writing them on post-it notes taped under the keyboard.

“The other thing is people share their logins to websites with different users,” Mr Creeden said.

“If that leaks out, if they send it over email or text, that gets corrupted that gets forwarded on, people can then use that to backdoor it into systems.”

Mr Khanji said threat actors can also enter a secure environment when employees click suspicious links and falling victim to phishing. He warned of plugging unknown USB drives into computers.

“You don’t need to break down the firewalls, and you don’t need to break down the security if you can get someone inside the company to just put your malware on the PC. So obviously, don’t plug in random USB sticks.”

Mr Creeden suggested companies introduce policies that don’t allow USB drives in the office at all. And to deal with phishing threats, he said it is important to look carefully at email addresses and verify requests – even if the urgent instruction to transfer money appears to be from the CEO.

“The amount of phishing that’s happened since 2017, so in the last five years, has gone up over 500%,” Mr Khanji added.

“The most surprising thing is … having a workforce that is not of very basic cyber awareness, training or not doing cyber awareness training.

“Organisations will spend a lot of money on the latest tools, and they’ll spend millions of dollars on the latest antivirus, but they’ll spend nothing on just training their everyday employee about what is a phishing link.”

CALLING THE SHOTS

Mr Kempe said the magnitude of these threats aren’t widely understood because IT and supply chains have converged so rapidly. However, he said cyber security can no longer be considered a novel extension to operational planning.

“Getting it wrong can destroy a brand,” he said. “This is no longer something that can be toyed with on the margins. It has to be front and centre.”

Mr Kempe said the decision-makers of the industry’s digital transition have typically not been adept in new technologies themselves. He said it is an understandable predicament, but the cyber-security community involved with maritime, shipping and supply chains are calling on chief executives to engage directly with the new landscape and emerging threats.

“When you have senior executives who are making decisions about what the operational, economic, financial, social and brand risks are for a company, if

they don’t understand a significant component of their operations because it sits inside this relatively odd digital realm, then how are they going to address the concerns? It’s very difficult.”

Mr Kempe emphasised the advantages of having a chief information officer, digital transformation officer or the like in an organisation’s executive team.

“If they don’t have the security professionals and the digital transformation people in the room, as they’re making determinations about operational and commercial risk, they are missing a critical part of how to protect and maintain cadence in their own operations,” he said.

“It’s critical for those people to be involved in the decision-making process. It’s no longer a separate discipline. Digital information security, physical security as it relates to cyber security; all of those things are critical components, they’re not sunk costs that we hope to avoid and use minimal compliance to get by.”

He advised companies to include the experts, listen to them, and invest time, effort, energy and resources at the appropriate decision-making level.

“You need senior decision makers to see this as a greater than existential risk and an existential set of threats and it needs to be addressed and then those risks need to be mitigated accordingly.”

While the executive team deals with the major changes, Mr Kempe said cyber security is everyone’s concern. Each employee plays an important part in securing an organisation’s systems, because one weak spot and one deliberate, disruptive action can enable an attack that destroys livelihoods.

“We should all be concerned about it because eventually, the lax posture of one individual player will impact most, if not all of us,” he said.

Mr Kempe highlighted a trend of carelessness around system access, permissions, protections, devices and personal information. He said if someone involved in the movement of cargo has this attitude, it is inevitable that they will suffer at the hands of even the most basic cyber-attack, and it won’t stop there.

“And so, when we get more sophisticated, we scale up to a global scale ... it goes from being novel to being disruptive to being horrifying, really quickly.”

DEFENCE LESSONS

Even stricter standards apply to the defence industry, which doesn’t allow phones in offices at all for security reasons. The reason is simple: phones have cameras in

them. Should a malevolent actor enter the office, they need only take a few photos to analyse later.

Gridware and MPC International engage with the defence industry, and though the industry is held to a much higher standard of cyber security, Mr Creeden and Mr Khanji agree the maritime and logistics industry can learn from it.

Mr Khanji said some organisations, while not necessarily manufacturing weapons, are working with supply chains for the defence industry or Defence Force. He said in Australia, an organisation can’t provide services or products to the industry, win a contract or be part of the procurement process without first demonstrating compliance with extremely stringent cyber-security standards.

“If you are doing supply chain for defence, you need to demonstrate how you’ve invested in cyber security and the tools that you’ve used,” he said. “You need to be demonstrating bank-grade cyber security of your environment.”

Mr Creeden considers the port industry to be near the bottom of the cyber-security maturity chain, and Mr Khanji said it needs to increase that maturity because cyber actors target ports.

“Because a cyber-attack at a port can have so much disruption, ports need to be held to a higher level of cyber security,” Mr Khanji said.

“It’s just not appropriate for ports to be all the way at the bottom of the chain in terms of how mature they are. They could definitely learn a lot from defence,” he said.

Mr Khanji noted that when the Ever Given blocked the Suez Canal in March 2021, a lot of attention was on the damage, the amount of ships waiting to pass and how much money was being lost every day the ship was lodged in the canal. But Mr Khanji said it doesn’t take a giant ship to stop a canal from working.

“You can do a lot of things from a cyber-security point of view … cyber security can play havoc to the port industry to the extent that [the Suez Canal incident] could look like a walk in the park.

“Imagine if every day, a different port was just taken down, or every day a canal was taken down in a nation state attack, which is a major concern.

“This is why the Australian government is changing its approach to cyber security,” Mr Khanji said.

“We now – for the first time – have a minister for cyber security … because the government’s realised, if we don’t help not just government but private organisations mature, then yes, this is a risk that we could face.”

They’ll spend millions of dollars on the latest antivirus, but they’ll spend nothing on just training their everyday employee about what is a phishing link.

Ahmed Khanji, CEO, Gridware

ALERT, NOT ALARMED

The unfortunate reality is, no matter how hard organisations and the wider industry work to strengthen cyber security and maturity, neither will ever be truly safe. The threats and actors are constantly evolving.

Mr Khanji recalled public outrage when Optus suffered a cyber-attack in September this year, but said the company spends millions of dollars on its cyber defences. Though genuine attempts at preparedness may not spare a business from a sophisticated attack in an evolving cyber landscape, there are advantages to proactive thinking.

But Mr Khanji said Gridware has worked with more than 600 organisations which experienced cyber-attacks, though none of which had an incident response plan.

He said an incident response plan could involve, for example, one person enacting the plan and running the meeting, another person taking minutes, and another managing actions.

Mr Creeden said the Australian Institute of Company Directors has also been pushing for companies and boards to take a more serious view on planning for cyber-attacks.

“Having an incident response plan is not just [a job for] the IT manager. It’s about the PR team. It’s about everybody. It’s all-hands-on-deck. When you have an

incident, everything’s affected. And it could, especially if you’re a public company … damage your share price.”

Mr Khanji said organisations should do more to test scenarios and run through simulations of cyberincident responses.

He said even a simple simulation can fire-up their thinking about the people they need on their team, such as lawyers or a cyber security company.

“It really is simple with the right team, it’s like we could get it done in a day or two, you can do a scenario, you can do a tabletop exercise,” Mr Khanji said.

“Cyber security is a journey, and it is a process,” Mr Creeden added. “It’s not a one-time thing. It’s not a set-and-forget thing. It’s a constant vigil.”

And Mr Kempe advised industry to be alert, but not alarmed. The threats are real, but he noted that supply chains have resilience because they are strengthened by hardworking people and employee ingenuity. Those people are highly adaptable, but they have distinct limitations.

“For all the effort, care, concern, and best practice that one supply-chain participant might exercise to protect their own needs and interests and defend their patch, it can be completely undone when an autonomous oil tanker full of explosive material, runs off course, and ploughs into that port at speed and then combusts. That future is here. There’s no other way to say it,” Mr Kempe said.

Who helps those who are key to our industry?

Piracy, shipwreck, abandonment and separation from loved ones are just a few of the problems merchant seafarers face. Around the world, The Mission to Seafarers provides help and support to the 1.5 million men and women who face danger every day to keep our global economy afloat.

Your financial support would be much appreciated.

Donate now: BSB 062 074 Account 1000 8062 (Tax-deductible) www.missiontoseafarers.org.au

THE MISSION TO SEAFARERS, Sydney 24 Hickson Rd, Millers Point NSW 2000 Tel +61 (0)2 92413009 enquiries@missiontoseafarers.org.au

The LNG carrier Woodside Rees Withers , which carried a cargo of LNG to Europe from Australia last year

A part of the North West Shelf project in Karratha

LNG & WIND

The future of offshore

Ian Ackerman writes

The offshore natural gas industry in Australia is in an upswing – it is the largest exporter of liquefied natural gas in the world and export revenues have been surging. However, forecasts show export values declining over the next year.

But there is offshore activity in the offing outside of the gas industry with the federal government pushing for the establishment of offshore wind farms.

THE GAS NUMBERS

According to the BP Statistical Review of World Energy 2022, Australia’s natural gas production totalled 147.2 billion cubic metres in 2021, up from 146 billion cubic metres the previous year, and 146.1 the previous year.

In 2021, Australia exported 108.1 billion cubic metres of LNG (20.9% of the world total LNG exports), making it the biggest exporter of LNG in the world, ahead of Qatar, which exported 106.8 billion cubic metres over the same year.

According to the BP review, Australia’s 2021 production was an increase of 1.9% on the previous year (106 billion cubic metres), and it has been increasing every year for the past decade.

All Australian LNG exports for 2021 went to countries in the Asia Pacific region, except a very small amount to Chile (less than 0.05 billion cubic metres) and 0.1 billion cubic metres to Spain.

The largest buyer of Australia’s LNG exports in 2021 was China, buying 43.6 billion cubic metres of Australian LNG. This was followed by Japan with 36.3 billion cubic metres, South Korea with 12.9 billion cubic metres and Taiwan with 8.6 billion cubic metres.

Looking at the value of Australia’s exports of LNG, export revenues are expected to reach $90 billion in

2022-23 on record-high global energy prices and a lower Australia dollar. However, earnings are forecast to fall to $75 billion in 2023-24.

This is according to the December 2022 edition of Resources and Energy Quarterly, published by the Department of Industry, Science and Resources.

The quarterly report said global LNG markets are likely to remain “highly volatile” over the next year as the ongoing fallout from Russia’s invasion of Ukraine has seen gas and LNG markets continue to reorganise.

Australia brought in $25 billion from LNG exports in the September 2022 quarter alone. This was the highest quarterly earnings on record, and slightly below the earnings for the full year 2020-21 (which was $30 billion), according to the quarterly report.

And for the December quarter, earnings are expected to reach $23 billion as rising export volumes are offset partially by decreasing spot prices.

Looking ahead, 2022-23 exports are expected to reach $90 billion, but earnings are forecast to decrease to $75 billion in 2023-24 as US supply rises and markets continue to re-organise.

GAS TO EUROPE

The importance of Australian LNG supply to the world was recently demonstrated when Woodside Energy shipped an LNG cargo to Europe on board the Woodside Rees Withers from Australia’s North West Shelf and delivered it to Germany’s Uniper Global Commodities.

The cargo of approximately 75,000 tonnes of LNG was delivered on 27 November to the Gate Terminal in Rotterdam and will contribute to natural gas supply in northwest and central Europe.

Australia’s LNG and offshore sectors are entering a time of change. The value of LNG exports may have just peaked, but production continues; meanwhile offshore wind energy developments are coming closer to being realised,

Australia is the world’s largest exporter of LNG

Woodside executive vice-president marketing and trading Mark Abbotsford said the company was pleased to have concluded the trade at a time when Europe is in urgent need of alternative sources of gas to replace Russian pipeline supplies.

“Events over the course of 2022 have shown that the world cannot take reliable and affordable supplies of energy for granted, particularly as we strive to decarbonise,” he said.

“At such times it is more important than ever that buyers and sellers work together to flexibly respond to market dynamics. Our relationship with Uniper is an example of such co-operation. The delivery of a North West Shelf LNG cargo to Europe also highlights the role that Australian LNG can play in supporting global energy security,” he said.

Uniper director LNG Andreas Gemballa said, “We continue to work on securing the much-needed gas supply into Europe from reliable sources like Australia and thus helping to strengthen security of supply during the ongoing crisis triggered by the Russian war.

“In addition to bringing online floating storage and regasification units in Germany, we are contracting LNG from diversified sources into existing and new regasification capacity in Europe. Woodside as a reliable supplier is helping us to bring additional LNG to Europe.”

IN THE WIND

In August, minister for climate change and energy Chris Bowen in August announced six proposed regions with wind-energy potential. These were the

At the time, Mr Bowen said Australia has some of the best wind resources in the world

“This new industry will provide opportunities to reduce emissions and fast track job and economic development opportunities for regional Australia particularly in clean energy generation and manufacturing,” he said.

“Many other countries have been successfully harvesting offshore wind energy for years, and now is the time for Australia to start the journey to firmly establish this reliable and significant form of renewable energy.”

And in late December, the federal government formally declared the Bass Strait off Gippsland as Australia’s first offshore wind zone.

According to the government, the windy Bass Strait and the grid across Gippsland and the La Trobe Valley mean the area has the potential to support more than 10 gigawatts of year-round wind energy generation.

The declared area covers about 15,000 square kilometres offshore and runs from Lakes Entrance in the east to south of Wilsons Promontory in the west. The area was developed after a consultation process beginning in August; the government said it took into account views expressed by community stakeholders, industry and experts.

Mr Bowen said, “Australia’s new offshore wind industry will start in Gippsland. It will support new jobs and economic development in the regions that have always powered Australia, and will power Australia into the future.”

Minister for industry and science Ed Husic said, “The Star of the South project alone will support more than 2280 jobs during construction and a further 300 direct jobs during operations.

Bass Strait off Gippsland, off the Hunter region (NSW), off the Illawarra (NSW), off Portland (Vic), off northern Tasmania and the region off Perth and Bunbury (WA).

Part of the North West Shelf project

Dedicated to the extreme

‘ Where safety meets efficiency’

Practice pays off. All the time spent in simulators, all the safety drills, the expert training on board; it’s well worth the effort. Because the more we put in, the more we get out. Working with a highly skilled and seasoned crew, and relying on first-class, purpose-built support fleets, we provide safe and reliable marine services to LNG terminal operations anywhere in the world. When push comes to shove, we are ready to do the job. No matter how challenging the conditions or how remote the location, we rise to the occasion. Discover the possibilities at smitlamnalco.com

The FPSO in Australia

of Offshore and Specialist Ships

Australia has been, and continues to be, one of the most extensive users of ship-based floating production, storage and offloading systems in the world oil and gas industry. There are more than 200 in operation around the world right now, of which seven are working in Australian waters. This might not seem a lot, but over the whole history of FPSO use in Australia, some 22 have worked here.

The vessels working here have frequently been leaders in technical innovation, size and production capacity. The remoteness and distance from existing infrastructure of the oil and gas fields on the North West Shelf and Timor Sea and the frequency of cyclonic weather conditions led to the use of FPSOs that are often equipped with disconnectable turret mooring systems. The size and production rates of some oil fields also encouraged the use of purpose-constructed very large units with high daily throughput capacities.

Woodside’s FPSO Northern Endeavour, introduced in 1999, had a production capacity of 180,000 barrels of oil per day (bopd), which was the largest in the world at the time and Shell’s LNG FPSO Prelude,

now operating, is the largest floating object ever constructed by mankind.

MARITIME PERSONNEL ON FPSOS

Many of the Australia-based FPSOs are classed as ships, in order to have the ability to sail away in the event of a cyclone, or in order to relocate to another field or for drydock under their own power. As such, they have employed full Australian marine crew as well as the oil and gas processing personnel typical of an offshore platform.

Most of the world’s major FPSO-owning and operating contractors have had offices in Australia, employing Australian personnel and directing the offshore activities of their FPSO vessels. These include MODEC, Bluewater, Teekay, and shortly BW Offshore. Others that have provided units have included Bumi Armada, Sea Production and Vanguard Floating Production.

Australia’s offshore oil and gas companies have sometimes chosen to build, own and operate their own FPSOs. These include Woodside, BHP, Santos and Shell. Typically this happens when the oil or

Serge Prakhov

Michael Barraclough, a member

Australia, examines the history of floating production, storage and offloading systems, better known as FPSOs, in Australia

Shell’s Prelude, off the coast of northern Australia

VISION STATEMENT

To ensure that the Australian Merchant Navy – a title emblazoned in battle and honoured in freedom – is recognised as an important part of Australian maritime history and social culture.

PRIMARY OBJECTIVE

Honouring the memory of Australian Merchant Navy Mariners who gave their lives in the service of their country in WWI and WWII and giving thanks for those that were able to return to their families.

The Merchant Navy War Memorial Fund Ltd (MNWMF)

HOW YOU CAN ASSIST

Donations, bequests, sponsorships of projects

DONATIONS MAY BE DIRECTED TO: The Secretary Merchant Navy War Memorial Fund Ltd (MNWMF) PO Box 3058, ROSEMEADOW NSW 2560

OR BY EFT TO:

Account Name:

MNWMF Project Development Fund

BSB: 032 197 Account No.: 477 684

Reference: Your Name

Please Note: If paying by EFT please forward an email with your Name, Address, Phone and Organisation (if applicable) to secretary@ mnwmf.com.au. A receipt will be forwarded for all donations received.

WHAT WE DO Making a

difference

Our aim in all that we undertake is to make a difference; we are guided by the following supporting objectives.

• Accepting the responsibility of our generation to ensure the greater recognition of the vital role undertaken by the Australian merchant navy in WWI and WWII.

• Identifying and partnering with other organisations that can assist our efforts to advance the cause of the greater recognition of the Merchant Navy.

• Ensuring ongoing viability and vitality of the Annual Commemorations at Rookwood, NSW (April) and the National Merchant Navy War Memorial, Canberra, ACT (October) by further developing the partnership with the Rookwood General Cemetery and the National Capital Authority and encouraging increased participation, especially among younger generations.

• Supporting where possible other Merchant Navy War Memorials throughout Australia.

• Enhancing the close partnership developed with the Australian Maritime College through the Merchant Navy War Memorial Fund Scholarship and identifying potential areas of part and/or full-time sea going opportunities for AMC Cadets.

• Prudent management of the MNWMF Investment Portfolio, in partnership with our external Financial Advisor, to ensure that the Fund can meet the cost of its activities and maintain the value of the portfolio in real terms.

• Pursuing opportunities for federal and state grants, corporate sponsorship, bequests and donations to offset costs and assist to fund new initiatives.

• An ongoing three-year strategic plan that documents policies and procedures of key activities that can be followed and further developed by those who follow.

• Working with the Merchant Navy RSL Subbranch, the Merchant Navy Association (MNA) and the Company of Master Mariners Australia (CMMA) in the achievement of our joint objectives.

• Encouragement of the next generation to take up our and our predecessors’ passion and commitment to ensure that future Australian Merchant Navy recognition is as secure in the future as in the past and the present. We remain highly committed to continuing to work in what we believe is the best interests of our cherished Merchant Navy Veterans and the wider Australian Merchant Navy Community. For more information www.mnwmf.com.au

gas field is very large, with a production lifetime of 20 years or more. This allows the capital investment in the FPSO to be fully recouped over one project. Fields with shorter life are typically serviced by contractors, who will aim to relocate their units to other fields once the initial ones are depleted.

THE EARLY FPSOS

BHP Petroleum was a pioneer in the use of FPSOs in the Australian market. The very first was the Jabiru Venture, which began operations in 1986 in the Timor Sea. It was a converted tanker, permanently connected to a riser turret mooring. The riser mooring was installed with the assistance of the AOS anchorhandling tug supply vessel Lady Cynthia.

The Challis Venture came shortly afterwards and then the first contractor-owned and operated FPSO, the Acqua Blu, from Bluewater Offshore Productions Systems. This company was unique in the annals of the FPSO industry in being the only one 50% owned by a company in the AHTSV business, namely P&O Australia/AOS. For some years, I had the exciting and challenging task of running this business, which also included FPSOs in Indonesia and China.

Woodside entered the picture in 1995 with Cossack Pioneer and 1999 with Northern Endeavour. It was a

newbuild unit, the largest in the world at the time with the highest daily production rate of a massive 180,000 bopd and remained in operation for 21 years. Some issues have recently emerged around her removal and the abandonment of the oilfield by another operator.

POST-2000

In the post-millennium era, contractors became more prominent as suppliers and operators of FPSOs, with the likes of Sea Production, Modec, Maersk, Teekay and Vanguard all involved.

As managing director of Vanguard, I lost count of the number of trips I made from our office in London to Perth to secure the contract for the Four Vanguard to produce the Woolybutt field for Eni, and later to Singapore to monitor conversion at Keppel Shipyard.

The Four Vanguard, like the Acqu Blu back in the early days, had a dis-connectable mooring system, and thus was classed as a ship, with a full Australian marine crew, working alongside the oil and gas process operators. Because it provided a relatively low-cost solution for Eni, the vessel enabled production to continue for nine years from a small field that might not otherwise have been developed, one of the advantages FPSOs can provide. It also provided stable employment for many seafarers and helped give Eni the confidence to later develop other fields in Australia with FPSOs such as Kitan in 2011, using Bluewater’s Glas Dowr.

There are seven FPSOs in operation in Australian waters in 2022, and at least one other due in a few years’ time.

Perhaps the most notable is the Prelude, which is owned and operated by Shell, and produces gas and condensate (light crude oil). The produced gas is converted to LNG and exported direct from the unit to overseas markets in LNG carriers. Prelude is an amazing technological achievement, although not classed as a ship, because it has no propulsion and is permanently moored at the field.

THE CONTRIBUTION TO THE AUSTRALIAN MARITIME INDUSTRY

The 22 FPSOs that have worked, or are working now in Australia, have made a profoundly positive contribution to Australia’s energy exports, investment in infrastructure, government tax revenues, and training and employment opportunities for seafarers and process operators.

They have also created demand for the provision of support vessel services for both installation and operational support. New technological developments have also been stimulated by the need to meet the sometimes-severe climatic conditions in Australian waters, such as dis-connectable turret mooring systems and the latest very large fixed systems designed to withstand even the strongest cyclones.

It has been quite a success story over the past 35 years and I’m sure many new chapters are still to come.

The FPSO Northern Endeavour

Christening of the FPSO Glas Dowr

OFFSHORE & SPECIALIST SHIPS AUSTRALIA

Promoting recognition and significance of Australia’s Offshore and Specialist Ships

OSSA collects significant maritime artefacts and promotes maritime career opportunities, seagoing and shore based, through programs such as our very own School Promotions Program which is free for anyone to access.

OSSA also relies on the support of individuals and businesses through becoming members so that we have the funds available to continue promoting our vision.

offshorespecialistships.com

Strength in diversity

Data from the DHL Export Barometer shows exporters are finding ways to adapt to supply chain disruptions and large businesses are growing in confidence that sales will increase in the near term. DCN took a closer look at the survey’s findings

The DHL Export Barometer is an annual research report exploring the experiences of a broad cross-section of Australian export businesses. The report provides insights into emerging trends, export challenges and strategies employed by industry.

This year’s report shows Australian businesses are confident export sales will grow in the coming year. Many have implemented strategies to strengthen their global supply chains amid a fluid trade environment.

Positively, 70% of businesses surveyed expect export orders to grow over the next 12 months, recovering from a record low of 47% in 2020.

Gary Edstein, CEO and senior vice president, DHL Express Australia, told Daily Cargo News, “This year’s confidence level is the second highest since the annual study began in 2003 and above the 63% average”.

Looking back on the past year, one in two (54%) businesses reported an increase in actual export orders, rebounding from 45% in 2021 and 28% in 2020. And, in the coming year, 48% of businesses intend to enter a new market.

Since 2003, the DHL Export Barometer has surveyed Australian export businesses. This year’s edition was conducted by ACA Research, and surveyed 948 businesses between August and September 2022.

Respondents ranged from large companies with more than 100 staff to smaller operations such as small/ home office businesses.

KEY TAKEAWAYS

The research indicates that export businesses, following insight from the 2020 and 2021 surveys, have an increased awareness of potential business disruptions both directly and indirectly related to the COVID-19 pandemic.

“This year, research participants were again asked about the export challenges they experienced in the past 12 months,” Mr Edstein said.

The most pressing issues reported were the cost of freight impacting 64% of businesses, supply chain issues (28%), inflation (19%), and tariffs (18%).

With the re-opening of the country’s international borders in February 2022, the number of businesses still impacted by restricted international travel dropped from 43% in 2021 to just 10% at the time of the study.

Additionally, they were asked the question, “How, if at all, have you diversified your supply chains in the past 12 months?”

“From the answers to this question, it is evident that businesses have and will likely continue to diversify their operations and supply chains against future disruptions,” he said.

Some of the most common diversification strategies included sourcing from multiple or different suppliers undertaken by 47% of businesses, increasing stock levels (46%), sourcing products or raw materials from alternative markets (30%), and manufacturing or sourcing more domestically within Australia (23%).

Businesses that reported engaging in such actions are more likely to predict an increase in their 2023 export sales revenue.

“Recent global events have highlighted the interconnectedness of supply chains and the critical importance of logistics in ensuring the continuity of trade flows and supply of vital goods,” Mr Edstein said.

“With 70% of businesses indicating they are confident their export orders will grow in the next year, this signifies the steps taken to diversify supply

METHODS OF SUPPLY CHAIN DIVERSIFICATION (PAST 12 MONTHS)

%

%

%

%

%

Sourcing from multiple/different suppliers

Increasing stock levels

Sourcing products/raw materials from alternative markets

Manufacturing/sourcing more domestically within Australia

Setting up manufacturing in alternative markets

Joint ventures with other businesses

Introducing/strengthening ESG (environment, social and governance) compliance/due diligence measures

Relocating overseas offices to alternative markets/opening additional offices

%

None of these

chains have put them in a strong position for 2023,” he said.

Another interesting observation from the research is that the proportion of businesses generating export orders via e-commerce channels has maintained in the past three years (2022: 79%, 2021: 82%, 2020: 74%).

THE INFLUENCE OF FTAS

This year’s edition asked research participants about their utilisation of free-trade agreements (FTAs). In the years 2020 and 2021, a number of new FTAs came into effect such as those between Australia, Hong Kong and Indonesia, as well as the Pacific Agreement on Closer Economic Relations Plus, and the Regional Comprehensive Economic Partnership Agreement.

“As such, it was timely to explore which FTAs Australian businesses are using,” Mr Edstein said.

“The research revealed 79% of export businesses are taking advantage of the benefits FTAs have to offer, and that these businesses also anticipate growing export revenue in the coming year.

“One interesting finding was that despite a majority of exporters using an FTA, many export businesses

Confidence levels are at the 2 ND highest point ever recorded

More than half will expand their workforce

Most Australian exporters are optimistic about the year ahead and expect revenues to increase

Small businesses are the most optimistic, but larger companies have seen the biggest jump in confidence since last year

of traders plan to increase wages in 2022

Almost half plan to expand delivery into new international markets

KEY TAKEAWAYS FROM THE DHL EXPORT BAROMETER REPORT

were unaware that an agreement was in place for their main export market,” he said.

A quarter of companies trading with the US indicated that they were not aware of the existence of the Australia-United States FTA, while 21% trading with China did not know about the China-Australia Free-Trade Agreement.

“Businesses looking to optimise their international export strategy are encouraged not to overlook the benefits of FTAs,” Mr Edstein said.

“Research the agreements Australia has signed with your target market via the Australian government’s FTA Portal, check if the raw materials or manufactured goods you’re trading are included, and the customs documentation needed to satisfy the eligibility criteria for the preferential tariff rate.”

The most popular agreements utilised by Australian businesses include the ASEAN-Australia-New Zealand FTA used by 67% of exporters, the China-Australia FTA by 61%, and the Australia-United States FTA by 60%.

E-COMMERCE STILL PAYING OFF

While it was large businesses that saw the greatest jump in confidence related to growth in sales in the coming year, it was small office-home office (SOHO) and small businesses that were the most confident out of all categories, when compared to 2021 research.

SOHO (86%) and small businesses (86%) were also more likely to generate orders online, when compared to medium (68%) and large-sized (65%) businesses. Meanwhile, 44% of SOHO businesses generated 100% of their orders online.

With e-commerce removing traditional barriers to market entry – such as the set up costs associated with physical retail spaces and an ease of advertising overseas using social media and search engine marketing – smaller operators are likely experiencing faster sales growth than compared to a business setting up an overseas store or wholesaler agreements 20 years ago.

“For DHL Express, in the last 10 years we have experienced an increase in the number of B2C businesses choosing to partner with us for overseas direct to consumer deliveries,” Mr Edstein said.

The research showed consumer goods exporters were especially likely to benefit from web-based sales, with 54% of these businesses reporting an increase in online orders.

Pointing to a potential return on e-commerce investment, 55% of export businesses that expect revenue to increase in the coming 12 months had also seen their online orders increase during the past year.

DHL SUPPLY CHAIN INVESTS $150M IN WAREHOUSE ROBOTICS

Contract

logistics solutions provider

DHL Supply Chain will invest $150 million in warehouse robotics and automation at its Australian warehouses. This will support faster delivery to customers, improve operational efficiency, and reduce employee workloads.

This is the largest investment in robotics and automation DHL has made in AsiaPacific, with 1000 robots to be deployed by 2025.

In addition to the investment in robotics, DHL Supply Chain aims to grow its Australian workforce over two years and will provide re-training and development opportunities to existing employees.

The robotics solutions DHL Supply Chain will deploy by 2025 includes: • deployment of assisted picking robots in a multi-customer environment

• state-of-the-art picking platform, which increases storage density and order processing

• goods-to-person robots, which support teams’ ability to pack more customer orders

• an automated inventory management robot, developed by an Australian DHL employee

• point-to-point picking robots, which support a diverse range of picking strategies.

These robotics solutions will be able to locate and deliver items to pickers faster and will allow workers to dispatch more customer orders per hour compared to a manual environment.

One of the robotic picking systems being deploying uses the energy of a standard household toaster

TO & FROM MELBOURNE, SYDNEY, BRISBANE, FREMANTLE, ADELAIDE,

New legislation sets industry’s agenda for early 2023

Trade law expert Andrew Hudson takes a look at recent legislation and what it means for the year ahead

THE (RELATIVELY) NEW AUSTRALIAN

Federal Parliament has been busy with several critical issues since coming into office in the second half of 2022, including the introduction of new legislation which will be of interest to many in industry.

In several instances this has included the “re-introduction” of legislation which was before the previous Parliament but lapsed as it had not passed before that Parliament was dissolved prior to the last federal election.

A RISE IN THE VALUE OF PENALTY UNITS

The rise in the cost of living is not confined to the consumer price index. Legislation has recently passed through Federal Parliament increasing the value of a “penalty unit” from $222 to $275 per unit from 1 January 2023. Many of the offences to which those in industry are exposed (including infringement notices) are levied by way of multiples of penalty units. Those holding insurances against such liabilities should check with their insurers that their coverage is unaffected by this increase. Further, those providing services in industry should also advise clients that the value of penalty units has increased which

affects their liability and the extent of the indemnity they will be providing to the service providers will also increase.

THE “CONTROLLED TRIALS” LEGISLATION

One of the fundamental problems associated with the “trade modernisation” agenda is where modernisation proposals cannot be tested, as they would require parties to operate outside of the terms of the Customs Act 1901. The question arose as to how to properly test those proposals without compromising the essential aims of the act to preserve border security and not compromise the collection of revenue.

A mechanism to overcome this limitation was the creation of new “controlled trials” legislation to allow approved or invited parties to engage in trials of revised procedures outside of the terms of certain parts of the act. Legislation to permit such controlled trials was introduced into the previous Federal Parliament but lapsed as the Parliament was dissolved.

However, the new federal government subsequently re-introduced the former bill in the Customs Legislation Amendment

(Controlled Trials and Other Measures) Bill 2022, which will now move through the parliamentary process. Once enacted the bill will include a new “Part XB –Controlled Trials” to the act comprising sections 179A to section 179L of the act together with several other amendments to the act, the Customs Tariff Act 1995 and the Customs Regulation 2015. Essentially, the new arrangements will allow the Comptroller-General of Customs (and not a delegate) to make rules for the establishment of a controlled trial, the term of the rule (no more than 12 months) and the qualifications for parties to be involved in the controlled trial.

Of course, we remain interested to see the passage of the controlled trials bill and the way in which it will be implemented in relation to each of the relevant provisions. We look forward to engagement with the government agencies to discuss which areas may benefit from the controlled trials, who may be allowed to undertake the trial and which of the controlled trials are moved forward for adoption. Certainly, the new process will allow some “trade modernisation” advances to be tested and adopted.

THE “FORCED LABOUR” LEGISLATION

I have previously written in this publication regarding legislation introduced into the previous Federal Parliament seeking to ban goods which are the product, in part or in whole, of forced labour. The final iteration of those movements was the introduction of a Bill before the Senate to create a new section 50A to the act as follows: “The importation into Australia of goods produced or manufactured, in whole or in part, through the use of forced labour (within the meaning of the Criminal Code) is prohibited absolutely.”

That legislation did not provide detail on how the process, including whether the Australian Border Force would be given powers like those held by the US Customs and Border Protection to seize items believed to be in breach of the provision or whether a “community protection question” would be added to a full import declaration stating whether the goods were (or were not) the product of forced labour, in part or in whole.

The legislation has been introduced into the Senate again. The legislation replicates the provisions of the previous bill and contains similar commentary on its rationale in the associated explanatory memorandum. However, as before, it does not address the wider issue of the regulatory framework which would support the imposition of the new provision. The question remains whether the current federal government will move the forced labour bill into the House of Representatives for further consideration and movement or whether further consideration will await the completion of

the current review of our Modern Slavery Act 2018, which included reference to the need to consider reporting and handling of imported goods.

On the basis that the review may have an impact on the clearance of goods at the border, the International Freight Forwarders and Customs Brokers Association of Australia made a submission to the review to the effect that if there are any border implications, then freight forwarders and licensed customs brokers should bear no responsibility should the goods prove to be the product of forced labour, unless the freight forwarder or licensed customs broker has acted recklessly or deliberately in allowing offending goods to be imported.

The outcome of the issue is far from clear. However, it is instructive that the US has current legislation on the issue, the EU is moving on the issue and Australia has previously been at the forefront of the modern slavery/forced labour debate. Based on what has been represented by the current federal government before taking office, the better view is that we are likely to see some form of import controls on goods believed to be the product, in part or in whole, of forced labour. Extending that thought, then there should also be controls on the export of goods which have been found to include products of forced labour.

INCREASE IN BIOSECURITY PENALTIES

Late in September 2022, a new bill was introduced into the Senate to make amendments to the Federal Biosecurity Act 2015 to “manage the risk of pests and diseases entering, emerging, establishing or spreading in Australian territory and causing harm to animal, plant and human health, the environment and the economy”. The bill, titled Biosecurity Amendment (Strengthening Biosecurity) Bill 2022, has now passed through the Federal Parliament and received Royal Assent and is now Act 76 of 2022.

The act has several impacts, including • increasing protection from disease and pests by setting additional requirements for persons entering Australia and imposing additional controls on the entry of goods including restricting behaviours and reporting requirements,

• expanding requirements for pre-arrival reporting of vessels and aircraft,

• enabling broader information handling and sharing in government, and

• increasing significantly civil and criminal penalties for non-compliance up to 1000 penalty units.

Again, this increases obligations and associated risks for those in the supply chain, including for service providers arranging the movement of cargo. Those in industry already subject to the current provisions will need to review the changes, adjust their compliance management processes, advise clients of the increased risks and consult their insurance providers that coverage will increase to cover the increased liabilities.

LEGISLATIVE AND OTHER DEVELOPMENTS ON THE HORIZON FOR LATER IN 2023

There are also legislative and other developments likely to take place slightly later in 2023. These include

• the commencement of the Australia-UK Free Trade Agreement,

• the anticipated reform of the antidumping regime including the availability of “advices” to clarify uncertainty on whether goods are subject to dumping or countervailing duties,

• the outcome of the Productivity Commission review of the maritime logistics system and the response from the federal government including any new powers to the Australian Competition and Consumer Commission (or other agency) considering submissions to the Productivity Commission and the ACCC Container Stevedoring Monitoring Report 2021-22,

• the commencement of recent amendments to the Unfair Contracts Act including rendering such contracts both unenforceable and illegal, and

• the outcome of the promised review of the tariff concession system.

As always, we look forward to engaging with industry on these and other developments throughout 2023.

Tooykrub; Ian Ackerman

Federal Parliament has been busy with new legislation

Andrew Hudson, partner, Rigby Cooke Lawyers

Australian agricultural production on the rise

Agricultural production has seen big increases over the past year, and exports have risen apace despite global supply-chain issues, Ian Ackerman writes

AUSTRALIAN AGRICULTURE HAS seen an extraordinary 12 months, according to data recently released from the Australian Bureau of Agricultural and Resource Economics and Sciences.

The bureau estimates the gross value of Australia’s 2022-23 agricultural production to be $85 billion. And, the winter crop is forecast to be more than 62 million tonnes, the second-largest on record.

Australia’s agricultural exports are forecast to break records at more than $72 billion in 2022-23 due to high production and high commodity prices.

Australian agricultural exports have exceeded $5 billion in every month since November 2021, despite endemic supplychain issues.

Over 2022, wheat exports have accounted for more than $1 billion per month – world grain prices have been high due to disruption in the Black Sea region and persistent dryness in the US, EU and Argentina.

Minister for agriculture, fisheries and forestry Murray Watt said the Agricultural Commodities and Crop Reports showed high yields for winter crops and strong agricultural commodity exports were driving the industry forward.

“While heavy rain and flooding has impacted our eastern states, other parts of the country are experiencing their best winter crop on record,” he said.

Mr Watt said total production in Western Australia and South Australia are both forecast to reach new record levels and Queensland is forecast to reach the

second highest on record, despite parts of the Darling Downs being impacted by the floods early in the growing season.

“New South Wales and Victoria continue to be impacted by heavy rainfall, flooding and waterlogging so the crop harvest progress and grain quality in those states are uncertain,” he said.

“This is a timely reminder that our sector is beholden to climate conditions, and we need to continue to support the agricultural industry to prepare for and respond to the ongoing impacts of climate change.”

FORECAST WEATHER EFFECTS

There is a high chance that cropping regions in the eastern states and South Australia will see more rainfall than their median according to the latest three-month rainfall outlook from the Bureau of Meteorology. This ABARES said, poses further downside risks to production forecasts.

Western Australian cropping regions are likely to see average to below-average rainfall this summer.

ABARES said crop prospects in Western Australia and South Australia benefitted the most from conditions in the spring. Wet and cool conditions over the season contributed to record yield potentials in the states.

In the eastern states, spring weather was mixed following above-average prospects at the end of winter.

In Queensland, total production is forecast to reach the second-highest on record. In Victoria, ABARES forecasts record levels of plantings and yields for the state.

The bureau said record spring rainfall in New South Wales has led to saturates soils in most cropping regions and extensive crop losses are expected after widespread river flooding.

SUMMER CROPS

Looking ahead to summer crops, ABARES expects planting to decrease 9% to 1.4 million hectares across the country due to wet conditions and flooding across major production regions in New South Wales.

ABARES has forecast Australian cotton production to decrease 23% in 2022-23 to 4.3 million bales following a record 5.6 million bales in 2021-22. Again, the bureau points to the wet conditions in production regions in New South Wales as a driver behind this trend.

And the floods will also impact Australian rice production. ABARES forecasts rice production to fall by 51% in 2022-23 to 340,000 tonnes, largely driven by a 47% fall in plantings.

RISING INFLATION

The global economic outlook has worsened over the past quarter due to persistent inflation and low growth in China, according to ABARES.

Inflation has remained high across the major economies in the world and annual consumer price inflation in October was among the highest rates in 40 years in Australia at 6.9%.

ABARES said inflation among Australia’s major agricultural trading partners in Asia has also increased since early 2021.

The outlook for the Australian dollar is that it will average US$0.65 in 2022-23. This is a depreciation of 11% from the average in the previous year (US$0.73).

“A lower Australian dollar increases the competitiveness of Australia’s agricultural exports in international markets,” the bureau said.

“However Australian agricultural export contracts that are denominated in US dollars have become more expensive for importing countries in recent months because the US dollar has appreciated against most major currencies in 2022.”

BULK EXPORTS

In the annual Bulk Grain Ports Monitoring Report, the ACCC said Australia’s bulk grain exports were a record 40.6 million tonnes for 2021-22, exceeding the previous season’s record by 22%.

“Two consecutive seasons of record high-volume harvests created strong demand for export services, and most grain export terminals experienced either the same level or an increase in the number of exporters using their facilities compared to the previous year,” ACCC Deputy Chair Mick Keogh said.

A record number of 32 exporters participated in the national bulk grain export market in 2021-22. However, several facilities are predominantly being used by a small number of exporters.

“The addition of new mobile loader operations provided extra options and pathways to export Australian grain at a time of record demand,” Mr Keogh said.

Modern slavery in maritime supply chains

IN 2022 THE MARITIME UNION

of Australia and the UN Global Compact Network Australia collaborated on a publication aimed at managing modern slavery risks in supply chains.

Modern Slavery within Maritime Shipping Supply Chains is intended as guidance to help Australian businesses identify and mitigate adverse human rights impacts that may arise from their use of maritime shipping. The work focuses on key indicators of forced labour, seafarer perspectives and practical steps available to businesses.

The MUA and UN Global Compact Network Australia released their publication at a hybrid launch event in December. Representatives from both organisations addressed a diverse audience of companies and supply chain stakeholders both online and at the KPMG office in Sydney.

NECESSARY GUIDANCE

A common theme throughout presentations and conversations was an apparent lack of clarity around the shipping component of end-to-end supply chain processes, and how seafarers’ human rights fit into it.

Report co-author and UN Global Compact Network Australia human rights manager Chris Caskey explained from the outset how the modern slavery problem

applies to the seafaring workforce. He recalled figures from the height of the crew-change crisis – that an estimated 800,000 seafarers were unable to leave their ship, according to the International Transport Workers’ Federation.

“This created a situation where the work that was conducted on board those ships was considered to be forced labour,” Mr Caskey said.

“The UN Global Compact’s work at the time was to call to action business and cargo owners in particular to align with the expectation to respect the human rights of those within their value chains.”

Mr Caskey said the UN Global Compact Network Australia had boarded ships alongside the ITF inspectorate to speak with crewmembers as part of the research process. The goal was to ensure the tone of the publication aligned with seafarers’ perspectives.

He said seafarers highlighted power imbalances onboard, fatigue and a lack of available staff, ongoing challenges around

A COMPLEX INDUSTRY

Vanessa Zimmerman, director and chair of the business human rights workstream at the UN Global Compact Network Australia, recalled a time in recent years when many businesses would consider modern slavery in their supply chains but overlook the shipping component.

Even now, she said, many are still finding it difficult to engage with shipping partners, simply because they don’t know how. She discussed the UN Guiding Principles (UNGP) on Business and Human Rights – a corporate responsibility initiative – and how businesses need to focus on the shipping value chain when they consider their responsibilities under the UNGPs.

“It is important for companies to think about not just the reputational or financing or legal risks that it might be facing – but the very real risk that

mental health and isolation and issues with remuneration.

This created a situation where the work that was conducted on board those ships was considered to be forced labour.

Chris Caskey, UN Global Compact Network Australia

The Maritime Union of Australia and the UN Global Compact Network Australia in December launched a publication detailing how exploiting seafarers’ rights can amount to modern slavery at sea

seafarers might be facing as well,” Ms Zimmerman said.

“There needs to be an ongoing effort to make sure you understand the risks and to also make sure you really understand the context in which the risks are going on.”

Using charterers as an example, Ms Zimmerman said it is unlikely the charterer is causing modern slavery at sea. However, she said they might be contributing to harm by, for instance, mandating unreasonable conditions for the carriage of cargo which results in workers being exploited.

“What is a really important exercise for you to do, if you’re a charterer, is try and think about your own acts and omissions and your own kind of practices in relation to your shipping partners which might cause you to fall into the contribution bucket or the cause bucket.”

IDENTIFYING MODERN SLAVERY

Speaking on behalf of the MUA and International Transport Workers’ Federation, ITF inspectorate co-ordinator Ian Bray said the inspectorate’s team of five had carried out around 550 vessel inspections across Australia over 2022.

He said the team was also on track to have recovered between $6.5 and $7.5 million in unpaid crew wages by the end of 2022.

“Despite all of the good intentions and the willingness, particularly the activity around highlighting what goes on at sea …

it just goes to show that we’ve got a hell of a long way to go,” Mr Bray said.

He said publications such as Modern Slavery within Maritime Shipping Supply Chains and Robbed at Sea – a report on wage theft published in September – help businesses understand the forms modern slavery can take at sea.

“The more awareness around these things and the more that we do to try to eradicate it … the better off we’ll be and the better off the seafarers will be in terms of making their working lives a little bit more tolerable in probably one of the most isolated jobs on the planet.”

ENDING EXPLOITATION

MUA policy advisor and publication co-author Rod Pickette reiterated the publication’s relevance for cargo owners and procurers in terms of their obligations around modern slavery.

Mr Pickette discussed businesses’ ESG approaches and drew parallels between the environmental and social aspects. He said there needs to be goals in place for the social aspect of ESG, just as there are goals for the environmental aspect.

“What’s the goal here? It’s the elimination of exploitation of workers,” he said.

“Each piece of work we’re doing here is a building block towards getting us to those same sorts of goals: elimination of exploitation and dealing with those sorts of risks in supply chains.”

MUA national secretary Paddy Crumlin said the maritime industry is “dominated by a lack of transparency”. He explained the mechanics of the flag state system and how human rights problems can stem from registering ships under so-called flags of convenience.

“This is the first international industry that’s regulated across national boundaries other than compliance by recommendation or by convention,” Mr Crumlin said.

He reiterated the impact the crewchange crisis had on the seafaring community, and how the additional pressure had led to mental breakdown and high suicide rates.

“All of that translates into an industry in dire crisis. If shipping fails … it’s because the supply chain is so deregulated and that there were no controls. So, when it did break down under the unforeseen pressure of the pandemic, there were no risk mitigations.”

Mr Crumlin said it was not a matter of blame, but of sharing responsibility for addressing human rights issues in the maritime industry.

“This is everybody’s problem. It’s a commercial problem, it’s a political problem, it’s a human problem.”

When [the supply chain] did break down under the unforeseen pressure of the pandemic, there were no risk mitigations.

Paddy Crumlin, MUA

It is important for companies to think about not just the reputational or financing or legal risks that it might be facing – but the very real risk that seafarers might be facing as well.

Vanessa Zimmerman, UN Global Compact Network Australia

Report co-author Rod Pickette unpacked ESG principles

Paddy Crumlin spoke on behalf of the MUA

Stakeholders attended the hybrid launch event in person and online

A dangerous trend down south

In January 1923 DCN described two maritime mishaps in detail: a dark mass approaching a steamer in the waters south of Victoria and an allision in a Melbourne harbour

MARITIME INCIDENTS IN AND off Victoria received some attention in the pages of the Daily Commercial News a century ago. In January 1923, coverage of a collision off the coast was followed by news of an allision with a wharf in Melbourne. According to DCN, accidents in Victoria were not uncommon at the time.

THE COLLISION INQUIRY

On 8 January DCN covered an inquiry into a collision between American barque Muscoota and Norwegian steamer Yarra.

The ships had collided on Christmas night near Wilsons Promontory, the southernmost tip of mainland Australia.

Norwegian consul general Mr E Arents held the inquiry in Melbourne. He said the master, officer of the watch, lookout hand, helmsmen and others on the deck of Yarra couldn’t see the sailing vessel approaching. They “declared emphatically” the lights were not visible during the mishap.

“Captain Sorenson and members of his crew were convinced on that point, and were firmly of opinion that the collision would not have happened had the ordinary lights been showing,” DCN wrote.

“The night was dark, with a little rain falling, but the lights of passing steamers were plainly discernible. When near Wilson’s Promontory the lookout man suddenly saw a dark object looming before him.

Allan Charles Green

Muscoota and other ships lined up to receive coal

The White Star liner Gallic allided with a wharf in Melbourne in the 1920s.

Passengers amid the bustle of an Australian wharf in the days of sailing ships

“It was not far ahead, and proved to be the sails of the Muscoota. He then rang the bell as a warning. The captain was on the poop, and also saw the dark mass.

“In the absence of lights he could not make certain of the course which the other vessel was steering. With the object of clearing her he put the helm over. Just at that time the master believed that the sailor also altered her course, but he could not be sure, as there were no lights to guide him. As a result, the stern of the steamer struck the sailor forward as she was swinging. In the circumstances the collision could not be avoided by the steamer.”

Yarra sustained an estimated £6000 in damage. When the Melbourne Marine Board learned of the collision, they were “not competent to act” as both vessels were registered in foreign ports.

MISHAPS IN MELBOURNE

Another article published on 31 January suggests Sydney often received news from Melbourne about mishaps in the Yarra River. The frequency of incidents had apparently become “the cause of much worry” for shipowners whose vessels were headed for the Victorian port.

“The latest instance of this is given in the case of the White Star liner Gallic, which bumped into two coal lighters and then crushed into the South wharf in the Yarra, one day last week,” DCN wrote.

The article said the vessel was turning in Victoria Dock to face the river mouth for departure to Sydney. The ship had just left the mouth of the dock when something went wrong.

“The stern of the liner first struck the Adelaide Steamship Company’s lighter Norwester, breaking and denting the lighter’s bulwarks,” the article said.

“The Norwester was forced on to the lighter Victorian, the sides of which were damaged and the rails carried away. Sheering off the lighters, the Gallic collided with the South wharf with a force which caused the liner to quiver from stern to stem. She remained fast among the wreckage of the wharf for more than an hour.”

In the meantime, three tugs were deployed in an attempt to tow the liner from its position.

“When these efforts failed, a line from the stern was made fast to the North wharf, the winches were set to work, and

by this means the vessel was gradually moved round to her berth.

“A diver who went down to examine the vessel reported that he could see only one blade of the propellers. It was discovered that the other blades were encased in mud and clay, and the propellers had to be given a few turns to clear them. There was apparently no damage below the water line, but slight damage was sustained above.

“It was stated prior to the vessel’s departure for this port, that she would have to be docked in Sydney for further examination.”

AN EVENTFUL VOYAGE TO MELBOURNE

In January 1923 DCN spoke to the crew of Melbourne Steamship Co. tug Tooronga. The vessel had stopped in Fremantle during a two-month voyage from Dartmouth to its home port of Melbourne. The crew told reporters the tug had endured some rather extreme weather.

“Those who travel across the ocean in comfortably equipped liners, and, perhaps, grumble about the weather passed through, would do well to follow the example of Captain Baxter, of the tug Tooronga, who, on arrival at Fremantle, when asked if they had had a good trip, answered, after all he had been through: ‘Not bad; a bit rough’,” DCN reported.

“Captain Baxter, master of the tug, spoke in glowing terms about his command, and the manner in which she had ridden the huge waves “like a cork.” He was very proud, too, of the eleven sturdy seamen, who, with himself, make up the tug’s complement.

“He did not, however, consider that the voyage was worth describing, and it was the second engineer who gave a reporter an impression of the voyage.”

The second engineer went on to describe bad weather in the Bay of Biscay and a waves like mountains passing over the ship, one of which caused some damage.

“The same wave carried some of the crew along with it, rolling them along the deck for nearly the length of the ship. One man finished up against some deck fixtures and was cut rather badly in the face and back. It did not, however, keep him from carrying on his duties,” the engineer said.

More bad weather in the Red Sea stalled the voyage by 10 days, and the weather continued to deteriorate as the vessel headed south. He said some of the crew dreamed one night that the tug would tow passenger liners or large sailing ships. Instead, it was to tow a “dirty, barnacled, old coal hulk” the crew was unimpressed with.

“The little tug, after her hard ten-thousand-mile voyage, is to tow the hulk over the remainder of her journey to Melbourne.”

The steam tugboat Tooronga

Frequent mishaps in the Yarra River in the 1920s caused some concern for shipowners

Japan

KOBE YOKOHAMA NAGOYA

key international ports. Other important players are Hanshin Ports, which includes ports of Kobe and Osaka; and Nagoya Port, which is one of the busiest ports in the country.

Port of Tokyo handled 2.27 million TEU in 2020, while Yokohama handled 1.13 million TEU and Osaka handled 1.12 million TEU. Nagoya handled 1.09 million TEU in the same period, and Kobe handled 0.96 million TEU.

In 2017 Japanese the container shipping divisions of shipping lines Nippon Yusen Kaisha, Mitsui O.S.K. Lines and K Line merged to become Ocean Network Express. ONE’s fleet is the seventh largest in the world, with a combined fleet capacity of more than 1.5 million TEU as of December 2022.

MARITIME CHALLENGES

MARITIME ACADEMICS TAKUMA

Matsuda and Masato Shinohara mark the Meiji era (toward the end of the 19th century) as the start of Japan’s modern maritime history. Western-style steamships started to arrive in the country, and shipping lines emerged. Some would eventually be positioned among the largest shipping companies in the world.

The late 1800s may have been a turning point for the country’s maritime industry, but some innovations in the past decade prove Japan’s progress is ongoing.

MARKET OVERVIEW

Australia and Japan have a mature bilateral partnership that is fundamental to both countries’ strategic and economic interests.

Japan was Australia’s third-largest trading partner by value in 2020, according to the Department of Foreign Affairs and Trade. Two-way goods and services trade between the two nations valued at $66.3

billion that year. Japan was also Australia’s second-largest export market (valued at $46.4 billion in 2020).

In 2020, Australia’s major merchandise exports to Japan included natural gas, coal, iron ore and concentrates, beef, copper ores and concentrates and aluminium. Japan’s major exports to Australia included passenger motor vehicles, goods vehicles, refined petroleum, transport services and civil engineering equipment and parts.

THE MARITIME ENVIRONMENT

Some 300 ports dot Japan’s coastline, and major international trade hubs are among them. Keihin Ports ranked 21st in the World Shipping Council’s list of the trop 50 container ports worldwide (based on 2019 data, updated for 2020).

Keihin Ports encompasses the ports within Tokyo Bay, including ports Tokyo, Yokohama, and Kawasaki. Though operated by different corporations, the three ports are together recognised as

As a major manufacturer and exporter of motor vehicles, Japan has had an interesting few years. The country ran its biggest trade deficit in a single month in eight years in January 2022, according to Reuters. Vehicle manufacturers were struggling with global supply constraints at the time, causing a decline in car shipments.

Manufacturers including Toyota Motor Corp and Suzuki Motor Corp were forced to temporarily close some plants at the time because of supply chain disruptions.

But by July 2022, Japan’s exports had grown 19% year-on-year, the Ministry of Finance posting 17 straight months of gains led by car shipments bound for the US and chip-related shipments headed for China, according to Reuters. As of December 2022, customers are still experiencing a wait-time on many vehicles being shipped from Japan.

In October 2022 Japanese bulk carrier Shofu Maru, equipped with a Wind Challenger hard sail, came into Port of Newcastle on its maiden voyage from Japan. Shofu Maru is to transport coal primarily from Australia, Indonesia and North America. Mitsui O.S.K. Lines and Japan’s Oshima Shipbuilding developed the hard sail to help the ship harness wind as a sustainable energy source on its voyages.

Hideyuki Irisawa, managing director of MOL Shipping (Australia), told DCN the company plans to expand the use of its Wind Challenger system. In August 2022 it announced plans to construct a second bulk carrier fitted with the hard sail.

“We are planning to launch the ammonia fuelled vessels and hydrogen fuelled vessels in the future. We have already planned to deliver an ammonia fuelled bulker in late 2025 and 2026,” he said.

Major ports and shipping companies are part of Japan’s maritime history, but unique exports and shipping innovations have truly modernised the industry

TOKYO

Sydney Bethel Union bicentenary celebration

Friends and supporters of the maritime charity met for drinks, conversations and some moving reflections on 200 years of service to the seafaring community

SYDNEY BETHEL UNION celebrated its 200th anniversary in November, a milestone marked with a special gathering at the Australian National Maritime Museum.

Reverend William Cowper established the Sydney Bethel Union Society in 1822 to care for crews coming ashore either side of long and dangerous voyages. Two-hundred years later, SBU funds Mission to Seafarers in Sydney, Newcastle, Port Kembla and Eden. A big discussion point at the celebration was how both charities responded to crew change and seafarer vaccination challenges in Australia in recent years.

SBU deputy chair Llew Russell welcomed some 140 guests to the event.

“There are not many organisations in New South Wales who can say they’ve continuously been operating for 200 years,” he said.

NSW Ports chief executive officer Marika Calfas congratulated the Sydney Bethel Union on two centuries of service to the seafaring community.

“It’s certainly an industry that’s seen a lot of change and probably more change

to come, but without doubt, it is still as essential as it has always been for our island nation,” she said.

Australian Maritime Safety Authority CEO Mick Kinley highlighted the role welfare providers play in supporting seafarers’ needs and rights, especially where those rights are abused. He emphasised the challenge of relying on donations to deliver welfare services.

“Two hundred years of Sydney Bethel Union catering for the welfare of international seafarers, sadly, probably

tallies with 200 years of seafarers being mistreated,” Mr Kinley said.

A highlight for many guests was SBU chair Clive Goodwin reading a letter received from Buckingham Palace. Princess Anne, president of Mission to Seafarers, personally commended the charity.

“In congratulating the Sydney Bethel Union on its 200 th birthday I would like to re-emphasise the vital role seafarers play in the economy and indeed survival of an island nation, even a continent sized one like Australia!” she wrote.

Figures from industry and government attended the event

Abby Williams

SBU chair Clive Goodwin prepares to present

Mission to Seafarers representatives attended the event

Port Authority of NSW CEO Phil Holliday gives a presentation

SBU deputy chair Llew Russell and guests

Catching up over drinks

Friends and colleagues caught up throughout the evening

Guests enjoyed the atmosphere at the Australian National Maritime Museum

Roslyn Rajasingam of Stella Maris with Melwyn Noronha and Jim Wilson of Shipping Australia

Abundance of Christmas cheer at SAL Sydney luncheon

The much-anticipated annual event was held in early December, with hundreds in attendance

‘TWAS THREE WEEKS BEFORE CHRISTMAS AND all through the city everyone was bustling about, and at the Hyatt Regency Sydney the miniature Christmas trees were placed on the tables with care.

When what to my wondering eyes did appear but Captain Melwyn Noronha and comedian Vince Sorrenti (from Punchbowl!) faster than eagles, like coursers they flew to the Shipping Australia (NSW) Christmas Luncheon.

Along with Mr Noronha and Mr Sorrenti, hundreds of shipping and logistics figures – from many corners of Australia – descended on the hotel ballroom for lunch, networking and a lunch of salmon or lamb (alternating seat by seat).

And the surprise entertainment was the infamous Mr Sorrenti, who kept the crowd laughing with jokes about nearly every Sydney suburb.

In keeping with tradition, there was a draw for a wide range of gifts and door prizes. Your correspondent has it on good authority that there were some fine wine glasses and at least one Google Nest smart hub.

When the afternoon came to an end and guests were ushered out, many dispersed to various venues around the city for further conversation and beverages.

The annual event was packed with happy lunchers

Greg Piper MP spoke about the Port of Newcastle

Abby Williams; Ian Ackerman

Peter Ernst and Trent Morosin

Shane Walden and Noel Dent

Greg Piper, Adrian Kemp, Matt Swan and Wayne Mabbott

Monika Lemajic, Aph Barton and Carlita Bloecker

Of course, it wouldn’t be a SAL Christmas luncheon without gifts Renee Connolly and Josina Meier

Scott Henderson speaking to gathered guests

Alfred Desouza provided the musical entertainment

Mission to Seafarers’ Christmas Thanksgiving celebration

A celebration in the lead-up to Christmas gave Mission to Seafarers Sydney and its supporters a chance to reflect on a year of serving the seafaring community

MISSION TO SEAFARERS SYDNEY celebrated Thanksgiving and Christmas last month with volunteers, supporters and the port community. Some 70 guests met at St Anne’s Ryde Anglican Church on a summer afternoon for a relaxed party. Conversations and speeches throughout the afternoon followed the theme of “compassion in action”.

Guest speaker Barbara Ward, deputy mayor and councillor at Ku-RingGai Council, thanked the mission for promoting the physical and mental health of crews coming into the ports of New South Wales.

“Your compassion, care and support to seafarers when they need it most is commendable,” she said.

“The global trade we enjoy would not happen unless these people came and provided us with the necessities that we are enjoying.

“It seems to me it is an industry that is neglected, a profession that is not taken seriously, overlooked, and not only by the international organisations but some of the countries as well. Seafarers are indispensable. They must get the respect that they deserve from us.”

Mission to Seafarers principal chaplain Reverend Un Tay outlined the scope of the charity’s work over the past year. He explained the achievements were a result of the mission’s partnership with the port community, industries and volunteers.

“Our emphasis today is on volunteers,” Rev Tay said.

“We value our volunteers, and volunteers are a gift to our community.”

And Port Authority of NSW CEO Phil Holliday said the organisation’s relationship Mission to Seafarers had been especially valuable over the past year and in difficult situations.

“We call on the volunteers from time to time when we come across things and don’t know what to do,” he said.

“I’m really pleased that we’re able to support that in the way that we do, and I look forward to continuing that support and strengthening that support as we go on.”

Barbara Ward, Peter Jannsen, Jack Starmans and Graham Lightfoot

Reverend Un Tay presents gifts to Mission to Seafarers’ hard-working volunteers

Barbara and Judith making beanies, scarves and socks for seafarers

Where are you in your career, and how did you get there?

I retired from full time work in 2013 as the inaugural CEO of Shipping Australia. I retained my board directorship of the Australian Mariners’ Welfare Society and looked to join boards and take on consulting work. I also embarked on a number of new directorships. My first directorship was with Mizzen group, which involved developing dynamic pricing programs for the shipping industry and trying to improve the IT side for shippers, importers and exporters.

What’s been the most significant part of your retirement?

It would be my time with MIRRAT. I got involved with them in 2016 and I’m still director there today. It’s a very progressive company, striving for excellence and testing ourselves globally. It’s been a great opportunity for me. I’ve enjoyed the challenges and seeing it develop into the company it is today. It’s probably been the one I’ve valued the most over that period.

Any other highlights of your career?

I was awarded Member of the Order of Australia in 2009 for services to shipping and trade industries and business organisations. I was very humbled by that. Although the award was given to me, it was a team effort, including my own family supporting me all the way. I was so grateful for that. It’s a defining moment and it really makes you proud to be Australian.

Where were you before you stepped into maritime?

I’ve had 32 years in the maritime industry, but before that I was in the Department of

The grill

Transport and headed up the liner branch. I’d finished an economics degree at the University of Queensland, back when there was only one university in the state.

I got a job at the Department of Trade and Industry before being promoted to the exports and transportation branch, and that’s really where I came into contact with the maritime industry. When the Whitlam government came in, the branch was transferred to the Department of Shipping and Transport.

What was it about the industry that kept you captivated?

The constant challenges, particularly from a policy perspective. People are coming up with ideas all the time, though not always the best ideas. I’m very interested in development of strategy. In working with industry associations like Shipping Australia – lobbying groups – I hope I took a broader perspective in developing that lobbying, particularly with state and federal governments. I was also interested in developing Young Shipping Australia. A lot of young people have enthusiasm for the maritime industry, which I had as well.

As a kid, what did you want to be when you grew up?

An adult. I really didn’t have a great ambition; I was happy to go along with life in Brisbane, where I’m from. I knew I was never going to be what my father was. He was a public accountant. In primary school, when people asked what your father did, I was very envious of those who said “policeman” or “fireman”. I had to say, “accountant”, but I didn’t have a clue what accountants did.

What was it like to grow up in Brisbane?

I just loved it. I went to boarding school in Toowoomba. In those days there were only four years of high school. I was a bit lazy at school. When I read back on old reports a lot of them said, “he could do a lot better”. I loved growing up in Brisbane in those days, it was probably more of a pumping country town back then. It all changed in 1988, when the city hosted World Expo. One of my cousins is an architect, and she designed South Bank for World Expo 88.

Which person in history inspires you?

The person who inspired me the most is Albert Facey. He wrote a book in 1980 called A Fortunate Life. He was born in the late 1890s and was basically abandoned by his mother and siblings. He faced so many obstacles in his life, including getting badly injured in Gallipoli. But he fought hard and stayed positive. In the end, when he looked back on his life and all those difficulties he had, he just thought about what a fantastic and fortunate life he’d had. I would encourage everyone to read his book.

What is one thing you’ve always wanted to learn?

I’m always learning, and as I get older I realise I know less. For many years I’ve been interested in what motivates people. I’ve been interested in a book called The Power of Now by Eckhart Tolle. It gave a realistic approach to mindfulness, which involves leaving your past mind and letting the future take care of itself. It sounds easy, but it’s extremely difficult when you’re thinking about tomorrow and how you’re going to tackle it. It relates to living in the moment and meeting things as they come.

DCN caught up with Llew Russell for a chat about his very productive retirement, growing up in Brisbane and rethinking life’s difficulties

www.portbris.com.au

Every year, approximately $55 billion in international trade flows through the Port of Brisbane, connecting Queensland with the world. As the Port grows, we are working with customers and stakeholders to facilitate trade and unlock supply chain to support more jobs and boost the Queensland economy.