Maritime Global Pandemic Confronts

First published in 1891 April 2020

thedcn.com.au

The voice of Australian shipping & maritime logistics

Maritime confronts global pandemic How the sector is responding to COVID-19

26 Clouds over liner trades 34 Developments in 48 Maritime insurance: to north and east Asia digitalised shipping cover for disasters

DCN0420_Cover.indd 1 31/3/20 11:51 am DCN0420_Allads.inddDCN0219_Allads.indd 15 2 25-Jan-1930/3/20 10:02:54 1:56 AM pm DCN0219_Allads.indd 15 25-Jan-19 10:02:54 AM DCN0420_Allads.inddDCN0219_Allads.indd 15 2 25-Jan-1930/3/20 10:02:54 1:56 AM pm DCN0420_Allads.inddDCN0219_Allads.indd 15 3 25-Jan-1930/3/20 10:02:54 1:57 AM pm XXXXXX

Contents

26 16 34 FEATURES The impact of COVID-19 on shipping 16 DCN looks at the current and potential impacts of the global pandemic Liner trades to north and east Asia 26 Dale Crisp’s wrap-up of the liner trade business on the northern route Digitalised shipping 34 How digital tech is transforming the way we transport goods globally Maritime insurance 48 An examination of insurance cases after a series of unfortunate events COLUMNS 48

8 A word from the minister 42 Feature: PNG 60 Interview: John Lloyd Trade minister Simon Birmingham The latest on the maritime services CEO of The Nautical Institute addresses the Asia Society scene in Papua New Guinea speaks with DCN on his recent visit 20 Industry opinion 54 Trade law 62 Out and about Logistics sector far from ‘ship Brexit still creating uncertainty DCN’s monthly wrap-up of events shape’ on cybersecurity 56 MIAL 64 Mission to seafarers 22 Women in maritime Our strategic maritime capability The Sydney Mission continues to A response to the gender gap 58 Maritime law offer support during COVID-19 24 Industry opinion Batteries “hazardous waste” 66 The grill Container management regulation prosecution thrown out Legal trailblazer Alison Cusack

4 April 2020 thedcn.com.au

DCN0420_Contents.indd 4 1/4/20 9:46 am XXXXXX

Contents

DOWNLOAD THE ANL APP

26 Access your bookings with ease by downloading the ANL app. With our new platform, you can view all aspects of your cargo movements in real- time by way of shipment tracking, fast and easy 16 34 schedule information and the latest news. Check It Out! FEATURES The impact of COVID-19 on shipping 16 DCN looks at the current and potential impacts of the global pandemic Liner trades to north and east Asia 26 Dale Crisp’s wrap-up of the liner trade business on the northern route Digitalised shipping 34 How digital tech is transforming the way we transport goods globally Maritime insurance 48 An examination of insurance cases after a series of unfortunate events COLUMNS 48

8 A word from the minister 42 Feature: PNG 60 Interview: John Lloyd Trade minister Simon Birmingham The latest on the maritime services CEO of The Nautical Institute addresses the Asia Society scene in Papua New Guinea speaks with DCN on his recent visit 20 Industry opinion 54 Trade law 62 Out and about Logistics sector far from ‘ship Brexit still creating uncertainty DCN’s monthly wrap-up of events shape’ on cybersecurity 56 MIAL 64 Mission to seafarers 22 Women in maritime Our strategic maritime capability The Sydney Mission continues to Find us: A response to the gender gap 58 Maritime law offer support during COVID-19 anl.com.au/ linkedin.com/company/ANL 24 Industry opinion Batteries “hazardous waste” 66 The grill Container management regulation prosecution thrown out Legal trailblazer Alison Cusack

4 April 2020 thedcn.com.au

DCN0420_Contents.indd 4 1/4/20 9:46 am DCN0420_Allads.indd 5 23-Mar-20 1:37:31 PM EDITORIAL

ISSUE NUMBER 1257 April 2020

Publisher Lloyd O’Harte [email protected] Editor David Sexton [email protected] Deputy Editor Paula Wallace [email protected] Creative Director Lee McLachlan Production Manager Grant Lopez [email protected] Electronic Services From the editor Linda Saleh Advertising Sales Director Lindsay Reed [email protected] When we wrote our editorial for the month of March, the impact Tel: 0431 956 645 of coronavirus still seemed relatively distant. The full health effects Subscription Manager James Hayman [email protected] are still to become apparent in Australia – though the experiences Tel: 02 9126 9713 of China and Italy give us a guide - but with shops, bars and places

First published in 1891 of worship across the country shutting down, the damage that is April 2020

thedcn.com.au

being done to our economy is now becoming painfully apparent. A The voice of Australian shipping & maritime logistics recession seems certain and the business landscape post-pandemic looks likely to be much changed from the one we have grown used to since the early 1990s. Maritime confronts To the extent it is possible in the rough and tumble world of global pandemic How the sector is responding to COVID-19 COVER IMAGE

48 Maritime insurance: cover for disasters 34 Developments in digitalised shipping 26 Clouds over liner trades business, DCN urges creditors to show compassion towards those to north and east Asia 31/3/20 11:51 am Avigator Fortuner

DCN0420_Cover.indd 1 business and individuals who may be struggling to make ends meet. The effects upon national public policy are also likely to be profound, possibly for as much as a generation. Stimulus packages and the welfare needs of the unemployed/underemployed will have to be paid for. Talk of surpluses – seemingly the definition of economic good management in some people’s eyes - is likely to be Published by shelved. Will new taxes eventually be required and, if so, at whom PARAGON DCN PTY LIMITED ABN: 73 627 186 350 will they be targeted? PO Box 81, St Leonards, NSW 1590 In these difficult times, it is also important that we acknowledge Tel: +61 2 9126 9709

the role of transport and logistics, with supermarkets stocked CEO with vital supplies and shipping lines bringing in crucial imports Ian Brooks [email protected] as required. There have been a few arguments about which sector www.thedcn.com.au The Daily Cargo News is available to interested should be doing what better, but overall our supply chain seems parties throughout Australia and overseas via to be functioning reasonably well – a silver lining in an otherwise subscription. cloudy sky. For enquires please call 02 9126 9713. The publisher welcomes editorial contributions from interested parties, however, the publisher David Sexton and Paragon DCN accept no responsibility for Editor, Daily Cargo News 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. INDUSTRY.. Unless explicitly stated otherwise in writing, by providing editorial material to Paragon DCN, including text and images, you are providing NEWS permission for that material to be subsequently To keep up to date with all COVID-19 developments, used by Paragon DCN, whole or in part, edited or unchanged, alone or in combination with other visit the Daily Cargo News website at: material in any publication or format in print or online or howsoever distributed, whether produced by Paragon DCN and its agents and thedcn.com.au associates or another party to whom Paragon DCN has provided permission. Photographer Aun

6 April 2020 thedcn.com.au

DCN0420_Editorial.indd 6 31/3/20 11:59 am EDITORIAL

ISSUE NUMBER 1257 April 2020

Publisher Lloyd O’Harte [email protected] Editor David Sexton [email protected] PECS: Your on-line Freight Forwarding Solution Deputy Editor Marine Cargo Specialists Paula Wallace [email protected] PECS: YourPECS: on-line Your Freighton-line Forwarding Freight Forwarding Solution Solution Creative Director Lee McLachlan MarineMarine CargoCargo Specialists Specialists for Marine Cargo Insurance Production Manager We offer a comprehensive range of risk protection Grant Lopez [email protected] for Marinefor MarineCargo Insurance Cargo Insurance Electronic Services WeWe offeroffer a a comprehensive comprehensive range range of riskof risk protection protection Introducing the Panoptic Electronic Certi cation System or PECS, developed speci cally Linda Saleh for Freight Forwarders, Road Transport Operators, for the Freight Forwarding industry. PECS enables you to oer competitive marine From the editor Advertising Sales Director for Freight Forwarders, Road Transport Operators, Introducing Introducingthe Panoptic Electronicthe Panoptic Certi cation Electronic System Certi cation or PECS, developedSystem or speci callyPECS, developed speci cally Lindsay Reed [email protected] for Freight Forwarders, Road Transport Operators, for the Freightcargo Forwarding insurance industry. quickly PECS and enables easily. you to oer competitive marine Tel: 0431 956 645 and Warehouse Operators. Underpinned by over for the Freight Forwarding industry. PECS enables you to oer competitive marine When we wrote our editorial for the month of March, the impact cargo insurance quickly and easily. of coronavirus still seemed relatively distant. The full health effects Subscription Manager and Warehouse Operators. Underpinned by over cargo insurance quickly and easily. James Hayman [email protected] and Warehouse Operators. Underpinned by over are still to become apparent in Australia – though the experiences 40 years of experience and global networks. Developed by experts in marine risk and the Freight Forwarding industry, PECS is a Tel: 02 9126 9713 Developed by experts in marine risk and the Freight Forwarding industry, PECS is a of China and Italy give us a guide - but with shops, bars and places 40 years of experience and global networks. Developedcomplete, real-time by experts system in marine for issuing risk and marine the Freight cargo insuranceForwarding policies. industry, PECS PECS guides is a you

First published in 1891 40 years of experience and global networks. of worship across the country shutting down, the damage that is April 2020 complete, real-timethrough system the creation for issuing of amarine policy cargo entirely insurance online. policies. PECS guides you thedcn.com.au through the complete,creation of real-timea policy entirely system online. for issuing marine cargo insurance policies. PECS guides you being done to our economy is now becoming painfully apparent. A The voice of Australian shipping & maritime logistics Freight Forwarders Liability recession seems certain and the business landscape post-pandemic Freight Forwarders Liability through the creation of a policy entirely online. looks likely to be much changed from the one we have grown used • FFrreighteight Forwarders Forwarders Liability to since the early 1990s. Freight Pak Business Insurance Select the type of goods, You can issue a Certi cate of Maritime Freight Pak Business Insurance Select the type of goods, You can issue a Certi cate of confronts To the extent it is possible in the rough and tumble world of global pandemic & Custom Brokers Liability Insurance instantly and email it to How the sector is responding to COVID-19 COVER IMAGE loading portsloading and destinations, ports and destinations,Insurance instantlyYou and can email issue it toa Certi cate of Freight Pak Business Insurance 48 Maritime insurance: Select the type of goods, cover for disasters 34 Developments in digitalised shipping 26 Clouds over liner trades business, DCN urges creditors to show compassion towards those to north and east Asia 31/3/20 11:51 am Avigator Fortuner Road Transport Operators Liability DCN0420_Cover.indd 1 Road Transport Operators Liability and PECS calculatesand PECS an accuratecalculates an accurateyour customer directlyyour customer from PECS. directly from PECS. business and individuals who may be struggling to make ends meet. loading ports and destinations, Insurance instantly and email it to • FRoadreight Transport Pak Business Operators Insurance Liability premium. premium. The effects upon national public policy are also likely to be Warehouse Operators Operators Liability Liability and PECS calculates an accurate your customer directly from PECS. profound, possibly for as much as a generation. Stimulus packages premium. • RWarehouseoad Transport Operators Operators Liability Liability PECS converts foreign currencies And when the policyAnd iswhen the policy is and the welfare needs of the unemployed/underemployed will Marine Cargo Cargo PECS converts foreign currencies have to be paid for. Talk of surpluses – seemingly the definition of to Australian dollars in real time nalised, Panoptic Underwriting PECSto Australian converts dollars foreign in currenciesreal time And nalised, when Panoptic the policy Underwriting is economic good management in some people’s eyes - is likely to be Published by Marine Cargo using a built-in currency converter. Agency pays you a commission. • WMarinearehouse Liability Operators Liability using a built-in currency converter. nalised,Agency pays Panoptic you a Underwritingcommission. shelved. Will new taxes eventually be required and, if so, at whom PARAGON DCN PTY LIMITED Marine Liability to Australian dollars in real time ABN: 73 627 186 350 will they be targeted? using a built-in currency converter. Agency pays you a commission. PO Box 81, St Leonards, NSW 1590 • MMotorMarinearine Vehicle Cargo Liability Fleet In these difficult times, it is also important that we acknowledge Tel: +61 2 9126 9709 Motor Vehicle Fleet Who is Panoptic Underwriting Agency? the role of transport and logistics, with supermarkets stocked CEO CharterersMotor Vehicle Liability Fleet Who is Panoptic Underwriting Agency? with vital supplies and shipping lines bringing in crucial imports Ian Brooks [email protected] • Marine Cargo Facility Backed by certain underwriters at Lloyd's, Panoptic Underwriting Agency specialises Charterers Liability Backed by certain underwriters at Lloyd's, Panoptic Underwriting Agency specialises as required. There have been a few arguments about which sector www.thedcn.com.au in marine underwriting.Who is AliatedPanoptic with Midas Underwriting Insurance Brokers andAgency? with more than The Daily Cargo News is available to interested forCharterers Freight ForwardersLiability in marine underwriting. Aliated with Midas Insurance Brokers and with more than should be doing what better, but overall our supply chain seems parties throughout Australia and overseas via 40 years experienceBacked onby itscertain side, we underwriters understand atthe Lloyd's, Freight PanopticForwarding Underwriting insurance Agency specialises to be functioning reasonably well – a silver lining in an otherwise subscription. Contact the Midas team for all your insurance needs. needs of importersin40 marine years and experience underwriting. exporters. on its Aliated side, we with understand Midas Insurance the Freight Brokers Forwarding and with insurance more than cloudy sky. For enquires please call 02 9126 9713. • MotorContact Vehicle Fleetthe Midas team for all your insurance needs. needs of importers and exporters. The publisher welcomes editorial contributions 40 years experience on its side, we understand the Freight Forwarding insurance from interested parties, however, the publisher Get underwayneeds with of importers PECS and exporters. David Sexton and Paragon DCN accept no responsibility for 1300Contact 664 the Midas272 or team [email protected] for all your insurance needs. Editor, Daily Cargo News the content of these contributions and the views To learn moreGet about underway streamlining with your PECS insurance processes or oering marine cargo contained therein are not necessarily those of the Contact1300 the664 Midas 272 team or [email protected] for all your insurance needs. insurance contact us on 1300 731 252 or email [email protected]. publisher or of Paragon DCN. The publisher and For further information visit our website www.midas.net.au GetTo learn underway more about with streamlining PECS your insurance processes or oering marine cargo Paragon DCN do not accept responsibility for any 1300 664 272 or [email protected] claims made by advertisers. Toinsurance learn more contact about us streamliningon 1300 731 your252 or insurance email [email protected]. processes or oering marine cargo INDUSTRY.. Unless explicitly stated otherwise in writing, by For further information visit our website www.midas.net.au providing editorial material to Paragon DCN, 1300 664 272 or [email protected] insurance contact us on 1300 731 252 or email [email protected]. including text and images, you are providing For further information visit our website www.midas.net.au NEWS permission for that material to be subsequently To keep up to date with all COVID-19 developments, used by Paragon DCN, whole or in part, edited or For further information visit our website www.midas.net.au unchanged, alone or in combination with other GLOBAL RISK MITIGATION FOUNDED ON LOCAL EXPERTISE visit the Daily Cargo News website at: material in any publication or format in print or online or howsoever distributed, whether Seeing the bigger picture produced by Paragon DCN and its agents and GLOBAL RISK MITIGATION FOUNDED ON LOCAL EXPERTISE thedcn.com.au associates or another party to whom Paragon DCN has provided permission. Photographer Aun GLOBAL RISK MITIGATION FOUNDED ON LOCAL EXPERTISE Seeing the bigger picture Seeing the bigger picture 6 April 2020 thedcn.com.au 332516A_Midas Insurance I 2242.indd 1 15/01/2016 10:32 AM

DCN0420_Editorial.indd 6 31/3/20 11:59 am332516A_MidasMidasFeb20.indd Insurance 17 I 2242.indd 1 31-Jan-2015/01/2016 11:24:44 AM 10:32 AM

332516A_Midas Insurance I 2242.indd 1 15/01/2016 10:32 AM WORD FROM THE MINISTER

Australia’s ongoing partnership with India Simon Birmingham noted in a recent address that despite a troubled global trading environment, opportunities abound for closer links between India and Australia

IT’S A PLEASURE TO ONCE AGAIN suggest that at times of a threat, nations address the Asia Society and to do so here should look inwards. But it is through in India from Mumbai. I am confident you looking outwards, particularly by supporting will do an exceptional job in continuing to global markets and international trade, that further the Australia-India relationship. the world has lifted hundreds of millions of The Australia-India Business Exchange people out of poverty. is the start of a six-month engagement Modern Australia is a nation that is that we’re going to continue to fuel consistent when it comes to supporting across education, tourism, energy and those policies of looking outwards and resources, premium foods, infrastructure embracing open trade and markets. We and investment. It recognises that our know, as a medium-sized economy and an relationship is an ongoing relationship. island nation with long distances to many What I’ve been struck by in my time here is of our markets that the overwhelming the enthusiasm, not just for the Australian characteristic that supports our economic visitors and businesses to engage with growth and our vibrant Australian society India, but of our Indian counterparts’ and is to have an open and stable international their engagement with Australians. environment. One in which we can We see those links from everything, predictably make our way in which the from the foundations of our earth to rules that grow are well understood and Simon Birmingham, Minister for trade, tourism fuel our agribusiness sector, through to all players, big and small, work fairly to and investment the horizons in space in terms of the support international growth. opportunity in aerospace and beyond. As we all know we’re living through and India’s investment are crucial inputs to What Australia and India offer each other challenging times. Challenges also rich and Australia’s ongoing success. really is economic depth and huge potential laden with opportunity – rapid technological But the change and transformation taking for us to keep helping each other as India transformation, global power re-alignment, place across the Indo-Pacific is far broader continues to grow. So, as India is growing climate change, challenges to existing than any two countries. That’s why Australia it’s not only great for India, it is also financial or economic architecture, slower engages so strongly on international trade important for Australia. than hoped for growth in cases – these are and investment, and particularly within But we do this indeed at a time of global all real 21st Century challenges. our region. It is why we pursued and have shocks. The coronavirus outbreak, or the Australia and India, with open delivered on the Trans Pacific Partnership. COVID-19, is inflicting pain on the global agreements, we’ve begun to make up for the It’s why we continue to participate in economy right now, in addition to terrible lost time. Our two-way trade, pleasingly, the Regional Comprehensive Economic human cost and public health challenge. has doubled in the last five years. So too, Partnership and it’s why we are engaged in From an Australian perspective the near have our two-way investment flows. Our numerous bilateral agreements or, of course, cessation in the movement of people out of economies are more complementary amongst the world’s most active participants China is having profound impacts. A crash than they are competitive. Australian in the World Trade Organization. in Chinese consumption is flowing through resources fuel India’s need to expand These frameworks of international into numerous premium agricultural its manufacturing base. Our education collaboration and co-operation in trade are products. Disruption to the supply chain is services deliver the fuel to expand the central to two pillars that Australia holds impacting parts of our resources trade and industries like the technology sector. dear when it comes to the trade landscape – increasingly, many other parts of economic Our investment is delivering India more openness and rules. Openness reduces costs activity in Australia. modern infrastructure. And as India’s by allowing the most efficient distribution It’s imperative that we don’t lose sight of consumer base continues to grow, our of resources. Openness encourages the economic policies that have delivered premium producers of food, wine and competition that fuels innovation and the world far greater economic growth wellness products are all well placed to productivity. Openness fosters integration and therefore human prosperity in recent meet India’s growing demands. Equally, that enhances understanding between

decades. It’s always tempting for some to India’s manufacturing, India’s technology nations and peoples. supplied Image

8 April 2020 thedcn.com.au

DCN0420_Minister.indd 8 31/3/20 10:18 am WORD FROM THE MINISTER Hapag-Lloyd Navigator: Australia’s ongoing Everything at a glance. partnership with India Simon Birmingham noted in a recent address that despite a troubled global trading environment, opportunities abound for closer links between India and Australia

IT’S A PLEASURE TO ONCE AGAIN suggest that at times of a threat, nations address the Asia Society and to do so here should look inwards. But it is through in India from Mumbai. I am confident you looking outwards, particularly by supporting will do an exceptional job in continuing to global markets and international trade, that further the Australia-India relationship. the world has lifted hundreds of millions of The Australia-India Business Exchange people out of poverty. is the start of a six-month engagement Modern Australia is a nation that is that we’re going to continue to fuel consistent when it comes to supporting across education, tourism, energy and those policies of looking outwards and resources, premium foods, infrastructure embracing open trade and markets. We and investment. It recognises that our know, as a medium-sized economy and an relationship is an ongoing relationship. island nation with long distances to many What I’ve been struck by in my time here is of our markets that the overwhelming the enthusiasm, not just for the Australian characteristic that supports our economic visitors and businesses to engage with growth and our vibrant Australian society India, but of our Indian counterparts’ and is to have an open and stable international their engagement with Australians. environment. One in which we can We see those links from everything, predictably make our way in which the from the foundations of our earth to rules that grow are well understood and Simon Birmingham, Minister for trade, tourism fuel our agribusiness sector, through to all players, big and small, work fairly to and investment ONE REAL-TIME IMPORTANT CUSTOMIZED the horizons in space in terms of the support international growth. opportunity in aerospace and beyond. As we all know we’re living through and India’s investment are crucial inputs to SCREEN DATA 24/7 DOCUMENTS VIEW What Australia and India offer each other challenging times. Challenges also rich and Australia’s ongoing success. really is economic depth and huge potential laden with opportunity – rapid technological But the change and transformation taking View all your shipment Check the live status Have all your Add or remove for us to keep helping each other as India transformation, global power re-alignment, place across the Indo-Pacific is far broader information on one of your shipments and important shipment- columns based on the continues to grow. So, as India is growing climate change, challenges to existing than any two countries. That’s why Australia single screen. bookings at any time. related documents in information you would it’s not only great for India, it is also financial or economic architecture, slower engages so strongly on international trade one place. like to see. important for Australia. than hoped for growth in cases – these are and investment, and particularly within But we do this indeed at a time of global all real 21st Century challenges. our region. It is why we pursued and have shocks. The coronavirus outbreak, or the Australia and India, with open delivered on the Trans Pacific Partnership. COVID-19, is inflicting pain on the global agreements, we’ve begun to make up for the It’s why we continue to participate in economy right now, in addition to terrible lost time. Our two-way trade, pleasingly, the Regional Comprehensive Economic human cost and public health challenge. has doubled in the last five years. So too, Partnership and it’s why we are engaged in From an Australian perspective the near have our two-way investment flows. Our numerous bilateral agreements or, of course, cessation in the movement of people out of economies are more complementary amongst the world’s most active participants China is having profound impacts. A crash than they are competitive. Australian in the World Trade Organization. in Chinese consumption is flowing through resources fuel India’s need to expand These frameworks of international into numerous premium agricultural its manufacturing base. Our education collaboration and co-operation in trade are products. Disruption to the supply chain is services deliver the fuel to expand the central to two pillars that Australia holds impacting parts of our resources trade and industries like the technology sector. dear when it comes to the trade landscape – increasingly, many other parts of economic Our investment is delivering India more openness and rules. Openness reduces costs activity in Australia. modern infrastructure. And as India’s by allowing the most efficient distribution It’s imperative that we don’t lose sight of consumer base continues to grow, our of resources. Openness encourages the economic policies that have delivered premium producers of food, wine and competition that fuels innovation and the world far greater economic growth wellness products are all well placed to productivity. Openness fosters integration and therefore human prosperity in recent meet India’s growing demands. Equally, that enhances understanding between Hapag-Lloyd Navigator. decades. It’s always tempting for some to India’s manufacturing, India’s technology nations and peoples. supplied Image Everything at a glance. https://hl.ag/navigator 8 April 2020 thedcn.com.au

DCN0420_Minister.indd 8 31/3/20 10:18 am DCN0320_Allads.indd 23 03-Mar-20 9:32:20 AM XXXXXX

News in brief Full details at thedcn.com.au

Commonwealth stimulus plan welcomed but more needed to support supply chains

The Commonwealth government Australian Logistics Council CEO Kirk announced a $17.6bn economic stimulus Coningham said the economic stimulus package in an effort to mitigate the measures were welcome, but must be impact of coronavirus. Under the plan, the matched by other practical actions to government is expected to put $11bn into ensure supply chains remain resilient. the economy between now and July, welfare “Many aspects of the federal recipients are to get $750, and tax breaks government’s stimulus package today are to be offered to small businesses. will be welcomed in the logistics sector, “The biggest beneficiaries of that will be in particular the extension of the instant pensioners,” Mr Morrison was quoted as asset write-off which can be used by saying by the ABC. businesses to modernise equipment and “They comprise around half of those who vehicles, delivering a range of safety and will receive those payments, but they also will productivity benefits,” Mr Coningham said. be extended to those in family tax benefits.” “However, economic stimulus measures Mr Morrison also said casual workers need to be matched by a commitment to who contracted COVID-19, or had to isolate additional practical actions in order to themselves, would be eligible for a Newstart meet some of the supply chain challenges welfare payment while out of work. that the COIVD-19 situation is presenting.” Scott Morrison, Prime Minister

Port of Tauranga reports Port of Tauranga announced what it says was “stable profitability” for the first six months of the 2020 financial year, despite total cargo “stable profitability” volumes dropping 4.2% to just under 13.3m tonnes. Group net profit after tax was NZ$48.3m, 1.4% lower than the same period the previous year. Adjusting for the impact of adopting new accounting standard NZ IFRS 16 for leases, which reduced profit after tax for the period by NZ$587,000, comparative earnings were 99.8% of the prior corresponding period. Container numbers rose 3.4% to 642,209TEU for the six months to December 2019. Transhipment, where cargo is transferred from one ship to another at Tauranga, rose 3.7%. Port of Tauranga chair, David Pilkington, said the mid-year results represented another solid financial performance. “Total trade was down 4.2%, but we managed to increase revenue 1.2% to NZ$154.8m for the six months,” Mr Pilkington said. “The longer-term outlook remains for cargo growth, particularly in containerised cargo, so our next stage of capacity expansion is already under way.” According to management, the trade outlook for the second half of the 2020 financial year remains uncertain and dependent on the duration of the market shutdown in China. Port of Tauranga; image supplied image Tauranga; Port of supplied image GPC;

10 April 2020 thedcn.com.au

DCN0420_News.indd 10 31/3/20 3:40 pm XXXXXX

Woomera signals start of work at Gladstone ports News in brief Gladstone Ports Corporation’s Clinton Vessel Interaction Project has entered the next phase of work, Full details at thedcn.com.au with Hall Contracting’s backhoe dredge Woomera arriving in Gladstone. The arrival of the Woomera signals the creation of 37 jobs for Gladstone locals, together with job opportunities for the region as the project continues. Hall Contracting is the principle contractor for this project. GPC acting CEO Craig Walker welcomed the Woomera and what its arrival meant for locals and the region. Commonwealth stimulus plan welcomed Dr Michelle Grech “The arrival of the Woomera signals the start of a project that will ensure the safety of shipping transiting the but more needed to support supply chains Clinton Channel,” Mr Walker said. AMSA releases fatigue guidelines “Spanning a massive 65 metres in length, the Woomera The Commonwealth government Australian Logistics Council CEO Kirk is a Backacter 900 model that was designed in the to prevent accidents at sea Netherlands and recently completed similar work in Cairns announced a $17.6bn economic stimulus Coningham said the economic stimulus for Ports North.” package in an effort to mitigate the measures were welcome, but must be The Australian Maritime Safety Authority released “a practical set The project has strict controls and will be closely impact of coronavirus. Under the plan, the matched by other practical actions to of guidelines” for managing and reducing the risk of fatigue at sea monitored so as not to cause any disruption to commercial government is expected to put $11bn into ensure supply chains remain resilient. in a push to improve the safety and wellbeing of seafarers. or recreational marine traffic. the economy between now and July, welfare “Many aspects of the federal According to AMSA, fatigue is described as a threat to the “The project will be delivered under stringent recipients are to get $750, and tax breaks government’s stimulus package today wellbeing of seafarers and increases the risk of accidents at sea. environmental guidelines and, in a first for GPC, are to be offered to small businesses. will be welcomed in the logistics sector, Research has identified fatigue as the primary cause in more environmental monitoring data will be available on our “The biggest beneficiaries of that will be in particular the extension of the instant than 11% of collisions at sea, with the actual percentage likely to be website,” Mr Walker said. “We will be monitoring water turbidity (water clarity) pensioners,” Mr Morrison was quoted as asset write-off which can be used by higher due to under-reporting. and light at a range of sites across Port Curtis,” he said. saying by the ABC. businesses to modernise equipment and One of the most infamous incidents in Australian waters was “We will closely monitor sensitive receptors like “They comprise around half of those who vehicles, delivering a range of safety and the grounding of the bulk carrier Shen Neng 1 on Douglas Shoal seagrass, and take action as required to ensure the will receive those payments, but they also will productivity benefits,” Mr Coningham said. 90km from Gladstone in Queensland, in April 2010. integrity of our marine ecosystem.” be extended to those in family tax benefits.” “However, economic stimulus measures The Australian Transport Safety Bureau investigation found a Work is expected to finish in the second half of 2020. Mr Morrison also said casual workers need to be matched by a commitment to lack of fatigue management processes onboard the ship contributed who contracted COVID-19, or had to isolate additional practical actions in order to to the grounding, with the chief mate having only slept 2.5 hours themselves, would be eligible for a Newstart meet some of the supply chain challenges in the 38.5 hours prior to the incident. welfare payment while out of work. that the COIVD-19 situation is presenting.” Scott Morrison, Prime Minister AMSA manager of vessel operations Dr Michelle Grech said the demanding nature of shipping meant seafarers were often required to work long or irregular hours, in unpredictable and changing weather conditions. Port of Tauranga announced what it says was “stable profitability” Port of Tauranga reports “In 2018 we completed the first major study into safety culture for the first six months of the 2020 financial year, despite total cargo “stable profitability” volumes dropping 4.2% to just under 13.3m tonnes. in the maritime industry in Australia and we found that about Group net profit after tax was NZ$48.3m, 1.4% lower than the 20% of seafarers surveyed reported experiencing chronic fatigue,” same period the previous year. Dr Grech said. “That was deeply concerning for AMSA as a safety Adjusting for the impact of adopting new accounting standard regulator, noting the well-established link between fatigue and Dredge vessel Woomera in action NZ IFRS 16 for leases, which reduced profit after tax for the period safety incidents at sea.” by NZ$587,000, comparative earnings were 99.8% of the prior corresponding period. Container numbers rose 3.4% to 642,209TEU for the six months to December 2019. Transhipment, where cargo is transferred from one ship to INDUSTRY.. another at Tauranga, rose 3.7%. Port of Tauranga chair, David Pilkington, said the mid-year results represented another solid financial performance. “Total trade was down 4.2%, but we managed to increase revenue NEWS 1.2% to NZ$154.8m for the six months,” Mr Pilkington said. “The longer-term outlook remains for cargo growth, particularly To keep up to date with all COVID-19 developments, in containerised cargo, so our next stage of capacity expansion is already under way.” visit the Daily Cargo News website at: According to management, the trade outlook for the second half of the 2020 financial year remains uncertain and dependent on the duration of the market shutdown in China. thedcn.com.au Port of Tauranga; image supplied image Tauranga; Port of supplied supplied image image GPC; GPC;

10 April 2020 thedcn.com.au thedcn.com.au April 2020 11

DCN0420_News.indd 10 31/3/20 3:40 pm DCN0420_News.indd 11 31/3/20 10:15 am NEWS IN BRIEF

CMA CGM HAPPY WITH 2019, BUT VIRUS LOOMS LARGE IN YEAR AHEAD An improvement in profitability for the 2019 fourth quarter was driven by a development strategy and an ability to cut costs, CMA CGM chairman and chief executive Rodolphe Saadé says. The French shipping behemoth and parent company of ANL recently released its results for both the 2019 fourth quarter and the full year. Full year 2019 revenue was up 29% to US$30.3bn compared with 2018, driven by the acquisition of logistics company CEVA, which contributed US$7.1bn. Uniqlo joins new logistics Excluding CEVA, however, revenue was down slightly by 0.8% mainly due to “the trend in geographic mix and the hub in Melbourne’s West transfer of CMA CGM LOG’s business to CEVA Logistics”. Management of Charter Hall Prime Industrial Fund say they have Group EBITDAA was US$3.8bn, giving a margin of 12.4%. secured a 46,000sqm pre-lease to Uniqlo Australia on a 10-year The Group incurred a net loss of US$229m, mainly due term starting early next year. to the negative International Financial Reporting Standards impact of US$329m, and the US$140 million negative The land is within the 60ha Midwest Logistics Hub in Truganina contribution from CEVA Logistics. in Melbourne’s west. CMA CGM reported its shipping segment delivered a Charter Hall head of development, industrial and logistics, robust performance in 2019 but Mr Saadé warned of the Andrew Simons, said the pre-lease to Uniqlo further reinforced the impact of coronavirus. changing nature of retail supply chains. “These results were driven by our development strategy, “The facility will consolidate their operations into one purpose- particularly in short sea lines, and our ability to cut costs,” Mr built facility featuring cross dock operations with a super awning, Saadé said. 14.6 metre warehouse clearance height and container rated “The beginning of 2020 has been impacted by the hardstand,” Mr Simons said. coronavirus epidemic. The Group has taken specific measures to protect its employees worldwide. This health CPIF fund manager Richard Mason said CPIF was “extremely crisis has also affected global trade and we have therefore pleased with the early leasing success of the Midwest Logistics Hub, adapted our shipping services.” with over 50% of the estate now committed, reflecting that the Mr Saadé said they were seeing an upturn in business estate is the preferred location for national distribution centres in China, with production ramping-up in factories and due to its proximity to the port and customers and the area’s large important exports increasing. investment in road infrastructure”. He said the fourth quarter revenue in the logistics Uniqlo worked with specialist supply chain and property business was affected by “weak growth” in the logistics firm TM Insight to develop the business case, run the property market, caused mainly by a decrease in global air freight procurement and project manage the construction. volumes and exchange rate effects. The company is also taking up efforts to accelerate the energy transition in shipping and logistics. Mr Saadé said to comply with low sulphur rules applicable since 1 January 2020, the group was focusing on using a low- KUEHNE + NAGEL SELLS MAJOR sulphur fuel (0.5%) for its fleet. PART OF ITS UK PORTFOLIO The cost of this new regulation reportedly has been International logistics business Kuehne + Nagel has passed on in prices charged to customers and therefore has announced it has entered into “a definitive agreement” to not been listed as affecting the group’s margin. sell a major part of its United Kingdom contract logistics The year 2020 is to see the delivery of the first 23,000 portfolio to XPO Logistics. TEU container ship powered by The scope of the transaction includes the drinks logistics, liquefied natural gas under a food services and retail and technology businesses. nine-vessel order. These operations generated a turnover of about 750m Swiss francs in 2019 and are backed by 7500 employees. Chief executive Dr Detlef Trefzger indicated the deal was part of a review of their operations. “One year ago, we first announced the strategic review of our contract logistics business to improve profitability and focus on our core, scalable solutions,” Dr Trefzger said. “We have now reached a major milestone in this effort, having secured an agreement to sell significant non-core assets in the UK,” he said. “With XPO Logistics, we are pleased to have found a good new home for our customers and employees.” Ian Ackerman; EQRoy Ackerman; Ian

12 April 2020 thedcn.com.au

DCN0420_News.indd 12 31/3/20 10:15 am NEWS IN BRIEF

12 April 2020 thedcn.com.au

DCN0420_News.indd 12 31/3/20 10:15 am DCN0420_Allads.indd 13 31/3/20 12:21 pm NEWS IN BRIEF

Freight task demands rail response, says Vic minister

Victorian freight minister Melissa Horne says rail will be crucial in the future of container movements in and around the Port of Melbourne. Addressing the Victorian Transport Association State Conference at San Remo, Ms Horne said with the freight task in Melbourne set to triple over the next 30 years, infrastructure had to keep up. “The port rail shuttle is on its way. The Melbourne Market site expression of interest is now open and is protecting the future for ports and freight use,” Ms Horne told the gathering. “Later this year we will be releasing the business cases for the Upgrade to the Port of Western Interstate Freight Terminal and Beveridge Interstate Freight Terminal. Townsville now underway “Negotiations are underway with the Commonwealth on the The $193m port upgrade at Townsville is underway with ARTC lease and Inland Rail.” the first rocks laid this month for a new protective wall. Ms Horne also talked of how crucial it was to ensure farmers Construction is progressing on the 2.2km protective rock were able to easily get their exports to ports, while also addressing wall, which is set to pave the way for up to six new berths. the issue of truck levels near Port of Melbourne. Federal minister for population, cities and urban “The Port of Melbourne is an economic asset for the whole state, infrastructure Alan Tudge said the upgrade would be the port’s largest expansion. it contributes $6bn to our economy [annually],” the minister said. “It means cruise and commercial vessels up to 300 metres “Under a business as usual scenario, port traffic would grow in length will be able to safely access the Port of Townsville,” from 11,000 trucks per weekday in 2016, to about 24,000 in 2050 Mr Tudge said. – it is simply unsustainable, both from an operational perspective “It’s a massive change that will generate jobs and boost and also from an economic perspective.” the local economy.” “The Australian community needs reassurance about the Transport and main roads minister Mark Bailey said the availability of essential day-to-day items, and the best way to Townsville is the gateway for projects as far away as Mount provide that reassurance is to make certain products are available Isa and the investment would benefit the entire North Queensland economy. when consumers need them,” she said. “We’ve seen trade at the port increase 4.7% with 7.68m “Economic stimulus is important – but we also urgently need tonnes of freight going through its gates, alongside 16 cruise an injection of common sense around some of the planning and ships visited the city bringing with them 20,000 visitors,” Mr enforcement provisions imposed on freight movement throughout Bailey said. the supply chain.”

DP WORLD TO WORK WITH RENAULT F1 TEAM Stevedore DP World and the Renault F1 Team announced an agreement making DPW the racing car team’s global logistics partner and team title partner. Under the partnership, teams from DP World, Renault Sport Racing and Groupe Renault are to leverage the F1 global marketing platform and explore opportunities to increase their supply chain efficiency. Renault Sport Racing chair, Jérôme Stoll, said they were “delighted and honoured” to welcome DP World to the Renault family. “This is an extremely interesting and exciting collaboration across multiple disciplines,” Mr Stoll said. “We look forward to working with DP World, a leading global logistics provider, to explore ways of improving our efficiency and mitigating our environmental impact.” Mr Stoll said Formula One wanted to become carbon neutral by 2030 and they were evaluating ways to reduce both their carbon footprint and turnaround time. “We expect that working with DP World will reveal opportunities for tangible solutions to some of the logistical challenges faced by our F1 team’s supply chain and by extension, the automotive industry at a larger scale.” DPW group chairman and CEO, Sultan Ahmed Bin A Renault F1 vehicle Sulayem, said a strategic objective was to develop with DPW sponsorship innovative logistics solutions for the automotive sector. Renault; Port of Townsville

14 April 2020 thedcn.com.au

DCN0420_News.indd 14 31/3/20 10:16 am 100% AUSTRALIAN OWNED & OPERATED

Why Independent Customs Services Australia (ICS)?

Independent Customs Clearance Service

Tailored to our Freight Forwarder Customer Requirements

Dedicated Licenced Customs Brokers

Small Business Specialists

Overflow & Regular Customs Clearance Solutions

Over 100 Years Combined Customs Experience

icsaust.com

P: 02 9316 6969 E: [email protected] Leave the Customs to ICS… Zed Markovski M: 0404 388 188

ICS.indd 5 28-Feb-20 5:00:54 PM SPECIAL REPORT | COVID-19 MARITIME LOGISTICS IN THE TIME OF CORONAVIRUS

The COVID-19 pandemic is wreaking havoc with all aspects of society and the economy. The Australian maritime and logistics industry is stepping up and doing what it does best in this time of crisis, writes Ian Ackerman. Lauritta; Ackerman Ian

16 April 2020 thedcn.com.au

DCN0420_F_Coronavirus.indd 16 31/3/20 12:27 pm he world is undergoing a profound change in this day basis. In mid-March the Australian Border Force time of pandemic. The novel coronavirus and the issued a directive saying crew arriving from abroad disease it causes, COVID-19, have triggered an would be permitted to enter Australia, provided the upheaval in human society on a scale not seen ship hasn’t been in port for the past 14 days. If the crew since the Second World War. has been at sea for a shorter period of time, they would TAt the time of writing, worldwide there are more be permitted to leave the ship, but would have to make than 700,000 confirmed cases of the virus, with nearly up the time in isolation off the ship. 34,000 deaths from the disease. Maersk, in mid-March suspended all crew changes for In Australia, there are nearly 4000 cases, with Maersk-operated container vessels until at least 14 April. 16 deaths. These numbers will certainly have risen A statement from the company said the decision was significantly by the time this edition of the DCN based on the need to keep crew safe while maintaining magazine arrives in mailboxes. operations as normal as possible. The pandemic has upended the global financial “Keeping our people safe is paramount to A.P. system and sent unemployment spiralling. Some Moller – Maersk and given the current situation we estimates say Australia’s unemployment rate will be at can better protect our seafarers by suspending the 12% this year, up from 5.2% in 2019. exchange of crew, as this lessens the number of social In the best of times, imports are Australia’s interactions they need to have,” the statement reads. economic lifeline. But in times of global strife, our “The rapid changes to global travel poses a risk of island’s connections to the outside world are of stranding seafarers in transit, in locations from where paramount importance. they are unable to leave or get sufficient assistance.” The Australian maritime and logistics industry has Likewise, Höegh Autoliners has issued a statement swung into action to keep trade flowing, and shelves confirming travel restrictions has made crew changes stocked. Ports are sending office workers home to impossible and prohibited seafarers on its ships from work. Marine pilots are wearing personal protective taking shore leave. The company said this means crews equipment. Precautions are taken with seafarers have had to extend their time at sea. coming in from abroad. Here in Australia, AMSA has said the travel restrictions aimed at inhibiting the spread of THE OCEAN CARRIERS COVID-19 may trigger a breach of the Maritime The major ocean carriers are seeing the pinch from Labour Convention 2006, however AMSA points out the effects of the pandemic. While most have issued that it is important that the measures to limit the statements proclaiming that business was going on as spread of the virus are adhered to. usual, some carriers are blanking sailings in response Australia is a member of the Tokyo Memorandum to depressed demand. There are also reports that other of Understanding, a 21-member port state control carriers are looking at blanking sailings in the future. organisation in the Asia Pacific region, which has Maersk announced adjustments across many of its services. It announced it would be suspending its AE2 (North Europe) and AE20 (Mediterranean) services on Thousands of maritime workers – including the Asia-Europe network during the second quarter of tug crews towing ships, linesmen tying 2020, effective from week 15. By the time this article is in print, there are sure to them up, and wharfies loading and unloading be more such announcements from other carriers. them – are on the front line. In the ro-ro sector, the news is likewise dire. In a MUA statement, Wallenius Wilhelmsen admitted service Paddy Crumlin, demand is unlikely to follow normal patterns, and schedules and capacity would be adjusted accordingly. issued guidance for dealing with this issue. In a “The current situation indicates an overcapacity statement from the Tokyo MOU, it said members had in the Wallenius Wilhelmsen fleet of 10-15 vessels,” agreed to deal with the circumstances in a “pragmatic the statement read. “This will be solved through a and harmonised” approach. combination of re-delivery of chartered vessels to AMSA said, as the port state control authority for tonnage providers, early recycling and cold-lay-ups.” Australia, it would consider requests from shipowners and operators where foreign seafarer repatriation THE SEAFARERS and service periods have been impacted by travel The measures countries are putting in place to restrictions and quarantine measures, including for contain the spread of the novel coronavirus have put the extension of a seafarer’s service period beyond the many seafarers in a situation where they cannot be maximum 11 months allowed under the MLC. Requests repatriated home after their service or join a ship at a are to be considered on a case-by-case basis. foreign port. The International Transport Workers’ Federation has Specific measures regarding people entering called on flag states to protect the health of seafarers

Lauritta; Ackerman Ian Australia from abroad have been changing on a day-to- during the pandemic.

thedcn.com.au April 2020 17

DCN0420_F_Coronavirus.indd 17 31/3/20 12:27 pm SPECIAL REPORT | COVID-19

The Ruby Princess allowed passengers to disembark in Sydney on 19 March after which many tested positive for coronavirus

ITF seafarers’ section chair Dave Heindel called CRUISE INDUSTRY attention to the failure of flag states to protect After numerous high profile incidents of coronavirus seafarers’ and passengers’ health. outbreaks on cruise ships, the industry in mid-March, “Under international law, the onus for the health announced it would suspend services. and safety of the crew and passengers, and for the P&O Cruises Australia and Carnival Cruise Line wider public that could be impacted, is on the flag state both confirmed a halt, following advice from public governments,” Mr Heindel said. officials that mass gatherings should be limited to no “Flag states should ensure that companies more than 500 people. whose vessels fly their flag abide by national and For P&O, the 30-day pause allows for a planned international legislations since flag states have resumption on April 12 and is to affect cruises on Pacific sovereignty over their vessels.” Explorer, Pacific Dawn and Pacific Aria that were scheduled Meanwhile, the Maritime Union of Australia said to depart Sydney, Brisbane and Adelaide respectively. protecting supply chain workers from the virus is For Carnival, the pause will affect operations across of vital importance, as Australia relies heavily on its fleet of ships in Australia as of 15 March and will imports for essential medical supplies, food and fuel. resume them on 13 April, 2020. MUA national secretary and ITF president Paddy President of P&O Cruises Australia, Sture Myrmell, Crumlin said the scale of the crisis places a collective said the responsible course was for P&O to support the responsibility on the vital industry to show leadership, efforts of federal and state governments and senior find consensus, and implement immediate solutions health experts. that can protect lives and prevent disruptions to the “Cancelling or reducing the length of a cruise is supply chain. the last thing we would ever want to do but these are “Thousands of maritime workers – including tug extraordinary times and we have no hesitation in crews towing ships, linesmen tying them up, and putting the health and wellbeing of our guests, crew wharfies loading and unloading them – are on the front and the wider community first,” Mr Myrmell said. line ensuring the current health and economic crisis P&O has offered a refund for guests whose future isn’t exacerbated by the breakdown of supply chains,” voyages have been cancelled during the 30-day period. he said. In a statement, Carnival Cruise Line said while “While our members remain committed to ensuring Carnival they had not had a diagnosed case, the freight continues to move smoothly during this situation was bigger than the cruise industry. pandemic, this can only be achieved if the industry “We will continue to do our part to support public embraces appropriate measures to prevent the spread of officials to manage and contain this unprecedented COVID-19 on worksites. public health challenge,” the statement read. “Not only could this be potentially catastrophic for “We are very sorry that this decision will disrupt the workers who catch this virus, but any illness will cause holiday plans for our guests… We can only do that with substantial disruptions as highly-skilled workers are the support of our outstanding onboard team members

lost from their vital roles.” who have been nothing short of amazing.” James D. Morgan/Getty Images

18 April 2020 thedcn.com.au

DCN0420_F_Coronavirus.indd 18 31/3/20 12:29 pm Despite the cancellations by Carnival and P&O, chemicals continue to flow,” the statement reads. “At another cruise ship operated by Princess Cruises docked port Kembla, imports of cars, construction materials in Sydney on 19 March and 2,700 passengers were and other bulk goods continue.” allowed to disembark although several people on board Port of Melbourne CEO Brendan Bourke said it being tested for coronavirus. was important that the complete port supply chain, Almost 200 passengers from the Ruby Princess have including maritime and stevedoring activities, subsequently tested positive for COVID-19, including a continue to operate during the shut-down of non- 77-year-old woman who died in hospital. essential activities. “We will also continue to advocate for the port Mike Gallacher, THE PORTS supply chain to be viewed as an essential service as CEO, Ports So far throughout the pandemic, Australia’s ports have governments assess further stages beyond the current Australia continued to operate, with cargo moving through all of shutdown measures,” Mr Bourke wrote in a letter. them as usual. However, all ports in Australia are taking While many industries deemed non-essential are precautions and changing their businesses in response to being shut down for the duration of the pandemic, the measures to check the spread of the virus. freight and logistics services have been deemed Port office workers are working from home, if they essential and therefore should not be shut down. can, and marine pilots are using personal protective In a statement, Maersk noted that freight would equipment when boarding ships. continue in a lockdown situation and acknowledged Port of Newcastle CEO Craig Carmody in a letter supply chain requirements would evolve throughout wrote that the port’s focus is to ensure it continues these “unprecedented times”. to operate smoothly while working with government “To ensure we assist with the continuity of moving agencies and industry partners to implement customers products, Maersk is operating multiple preventative measures. forward storage hubs across major routes to Australia “We continue to work with our customers, supply including Spain, Morocco, Oman, Egypt and Malaysia,” chain partners and all agencies involved in the the statement reads. “These hubs provide customers movement of vessels, crew and cargo through the port with the ability to slow down the inflow of cargo, to ensure operations continue,” Mr Carmody wrote. relieving pressure on storage facilities.” “While there is yet to be a significant disruption to All port authorities in Australia are adapting to the vessel movements and operations, Port of Newcastle measures to contain the outbreak as they are brought continues to work behind-the-scenes to assess and into force, while ensuring trade continues to flow into manage potential risks relating to COVID-19.” and out of the country without hindrance. NSW Ports has said the ports it manages, Port The maritime and logistics industry in Australia is Botany and Port Kembla, are essential services and taking up the challenge that this pandemic presents. would remain operating to keep the economy moving Goods are still moving, shelves are still stocked, and and vital imports coming in. life goes on, albeit differently. But complacency must “At Port Botany, container ships are arriving be avoided. Maritime and logistics workers must be regularly, carrying supplies including food, beverages, protected from contracting the virus, and employers goods to stock our retail shelves and manufactured must step up and ensure this happens. We all must stay items, while bulk liquid imports of petrol, LPG and safe and stay well.

PORTS AUSTRALIA CALLS FOR PORT RECOGNITION AS ESSENTIAL SERVICE PORTS Australia has been in contact open and their personnel allowed to running between our member ports with the Australian Government keep working.” and government officials,” he said. to discuss making ports and their Ports Australia says while there “On behalf of Ports Australia, I’d personnel an “essential service” to are encouraging signs coming from like to encourage the government to achieve the best outcome for “the safety overseas where the numbers of expediate their consideration of this of port staff and livelihood of Australia”. shipping containers full of goods determination as time is critical. “As the necessary safety measures are starting to show early signs of “The government response ramp up around the nation, we rely recovery, this must be matched with measures are expanding every day as on our essential services to keep the appropriate workforce inside the the likelihood of limiting the movement Australia running, whether they be our port-gate ready to do the job. of people throughout community medical staff, emergency services or Ports Australia CEO Mike Gallacher grows ever closer. supermarkets,” Ports Australia said. acknowledged the good work already “From ships arriving to unload at “Our supply chains are critical to being done. our ports, right through to trucks ensure fuel, food and other much “It’s great to see sectors coming delivering much needed food and needed essential commodities are together at a time where unity is goods ... an unbroken supply chain is being delivered around the nation and paramount. Ports are no different – critical for community confidence at it is imperative that our ports stay we’ve got a constant stream of dialogue this time,” Mr Gallacher said. James D. Morgan/Getty Images

thedcn.com.au April 2020 19

DCN0420_F_Coronavirus.indd 19 31/3/20 12:29 pm INDUSTRY OPINION

has put more systems online without the who suffered under a data breach left the advantage of building a security framework company concerned. from the ground up, therefore making those systems vulnerable to various attacks. RANSOMWARE ATTACK More so, the mainstay of legacy equipment In February, the Australian transportation – clunky desktops and Windows 97 – used and logistics company Toll Group suffered a as a foundation for a company’s network, ransomware attack infecting its “sprawling without properly developed security technology systems”. Although the overall software, will be unable to keep track of cost has yet to be determined, Toll refused and monitor more current technological to pay the ransom. However, reporting for devices such as smartphones, tablets, the Australian Financial Review, technology automated cars and even drones. editor Paul Smith wrote, “The huge Logistics sector far from Considering each device is a potential expected costs to Toll and the impact of the entry point for a cyberattack, unaccounted attacks on the broader supply chain, have for devices are easy backdoors for hackers led experts to warn that other Australian ‘ship shape’ on cybersecurity to exploit. Like a garden shed at the bottom companies are sleepwalking towards the of the garden, a logistics company seen same calamity”. Given the astronomical from afar can appear orderly and neat. costs to A. P. Moller-Maersk and FedEx TNT Industry must prepare for the next wave of attacks from Only, when you step inside and turn on the Express in 2017, the total financial cost to cyber criminals, writes Jonathan Sharrock light, the shed becomes a haven for disorder Toll could exceed $100m. and disarray. Thankfully for Toll, their response to the attack has been quick and honest. The PHYSICAL HARM reputational loss Uber suffered after paying CYBER CRIMINALS CONTINUE TO Ignoring the issues of outdated cyberattacks against logistics companies Global in reach yet fragmented by varying off a ransomware attack in 2016 without haunt the logistics industry. Since the equipment and devices linked to the in the last couple of years. The Canadian levels of technological equipment, and informing its customers of the attack for WannaCry/NotPetya attacks in 2017, Internet of Things, it was revealed robotics firm Level One Robotics exposed sometimes unable to account for devices over a year, seriously contributed to the logistics companies have come under the greatest problem was employee itself to an attack in 2018 by uploading connected to a network, the potential risk CEO’s resignation and the corporation’s increasing pressure to ensure that their vulnerability. Attacks were found to be more than 157 gigabytes of sensitive data to the logistics industry lies not only in a flatline in growth. far-reaching supply chains are protected less sophisticated, high-volume forms of from more than 100 manufacturers to a data breach or system hijacking, but also in Although seemingly difficult, effective against cyberattacks preying on legacy attacks in 2019, predominantly using the publicly accessible server (rsync). Although physical harm. cybersecurity starts with company policy, technology and potentiIally unaccounted “dropper” malware Emotet to impersonate it did not contain employee passwords, for network devices. valid emails, accounting for 26% of total the combination of documents such as malicious detections. ZIP files accounted those requesting for ID badges and VPN The inability of employees to accurately detect RISING CRIME for 34% of compression format attacks credentials on an online server that was With a 50% increase in attacks on the where human error of judgment meant a not restricted by IP or user made the malicious emails has encouraged the sort of email- logistics industry between 2018 and 2019, release of malware. company extremely vulnerable to social orientated attacks that cyber criminals are using it is no wonder that Eyefortransport stated, engineering attacks. “The logistics industry is still not seeing OPPORTUNISTIC ATTACKS Jonathan Sharrock, CEO, Cyber Citadel and more frequently against logistics companies. security as a primary part of business Moving into the first quarter of 2020, 9% of MORE THAN HUMAN ERROR strategic partner to Freight & Trade Alliance operations”. Their findings included a opportunistic attacks (3.4m in total) were Human error, however, is not the only surprising level of neglect to cybersecurity found to be across the transportation, storage threat to logistics companies. In general, logistics companies are embedded within For transportation and logistics firms which is dictated by the leadership across the industry as a whole: only 35% of and delivery sector. These types of attacks irrespective of company size, most logistics production facilities controlling inventory who deal with assets in motion, there’s and decisions of company board service providers had a chief information use well-known malware and are a relatively companies are at risk because of their inter- and handling on-demand needs of a plant. always a risk of bodily injury and property directors. Whether implementing a full security officer; only 43% of shipping low effort for attackers to implement. As regional or trans-national scope, whether For a potential hacker this means, instead damage. A network intrusion could lead cybersecurity audit, employing outside companies had a CISO; only 21% of analysis-based on email traffic, Mimecast’s physically or digitally. The distribution of targeting a large company that may have to numerous problems, including traffic professionals to test a system, installing logistics companies believed they needed a findings for the last quarter of 2019 and of a single container will likely involve tight cybersecurity protocols, they can gain accidents, loads exceeding weight limits, new hardware and software throughout CISO; and at least 55% of logistics industry the first quarter of 2020 – together with the information and goods transfer with at access via a third-party service provider and hazardous materials being transported a network, or simply basic employee employees felt ill-equipped to identify and statement made by Eyefortransport – point least ten different stakeholders, including with less stringent security. to an incorrect destination. training, realising the importance of deal with a cyberattack. to one major vulnerability in the logistics the shipper, the consignee, a shipping line, Ultimately, cybersecurity in the cybersecurity is a top-down process. According to Mimecast, companies industry: a lack of cybersecurity training. It origin and destination ports, a trucking CLUNKY SYSTEMS logistics industry is key, namely because specialising in the transportation, storage is often stated that the first line of defence company, and banks, as well as customs This aspect of interconnectivity, with little cyberattacks can incur huge financial costs LOOKING FORWARD and delivery sector were among the top against a cyberattack is the user. The inability and border authorities if the item is shipped system segmentation, compounds the as well as debilitating reputational losses. Although the notion is starting to sound three targets hit hardest by cyberattacks of employees to accurately detect malicious outside the country. problem of legacy hardware and software In 2017, Centrify did an assessment like a broken record, it is time that during the fourth quarter of 2019. emails has encouraged the sort of email- It is this interaction between large and prevalent among many logistics companies. of 113 publicly listed companies, all of the logistics industry starts to invest Mimecast’s report cited the threat as orientated attacks that cyber criminals small companies in the logistics cycle that In recent years, the logistics industry which suffered data breaches. They found in cybersecurity in the same way that a global issue, analysing cyberattack are using more frequently against logistics contributes to the cyberattack process, and has been in the process of automating the companies’ stock values declined 5% companies in the banking and financial campaigns from 209 billion emails across companies worldwide. leaves companies only as secure as their systems, turning paper into digits and on average after disclosing a data breach, sectors do. The costs to logistics companies, Australia, Germany, South Africa, the More broadly, human error has weakest link. Complex logistic chains are using advanced analytics to stay on top taking between seven and 90 days to their employees and their customers could

United Kingdom and the United States. contributed to some of the worst created around manufacturers, and often Gorgev Gorgev supplied supplied Imaage Imaage of needs of their customers. In turn, this recover their stock prices; 27% of customers be some of the worst yet to come.

20 April 2020 thedcn.com.au thedcn.com.au April 2020 21

DCN0420_FTA.indd 20 27/3/20 10:39 am DCN0420_FTA.indd 21 27/3/20 10:40 am has put more systems online without the who suffered under a data breach left the advantage of building a security framework company concerned. from the ground up, therefore making those systems vulnerable to various attacks. RANSOMWARE ATTACK More so, the mainstay of legacy equipment In February, the Australian transportation – clunky desktops and Windows 97 – used and logistics company Toll Group suffered a as a foundation for a company’s network, ransomware attack infecting its “sprawling without properly developed security technology systems”. Although the overall software, will be unable to keep track of cost has yet to be determined, Toll refused and monitor more current technological to pay the ransom. However, reporting for devices such as smartphones, tablets, the Australian Financial Review, technology automated cars and even drones. editor Paul Smith wrote, “The huge Considering each device is a potential expected costs to Toll and the impact of the entry point for a cyberattack, unaccounted attacks on the broader supply chain, have for devices are easy backdoors for hackers led experts to warn that other Australian to exploit. Like a garden shed at the bottom companies are sleepwalking towards the of the garden, a logistics company seen same calamity”. Given the astronomical from afar can appear orderly and neat. costs to A. P. Moller-Maersk and FedEx TNT Only, when you step inside and turn on the Express in 2017, the total financial cost to light, the shed becomes a haven for disorder Toll could exceed $100m. and disarray. Thankfully for Toll, their response to the attack has been quick and honest. The PHYSICAL HARM reputational loss Uber suffered after paying Global in reach yet fragmented by varying off a ransomware attack in 2016 without levels of technological equipment, and informing its customers of the attack for sometimes unable to account for devices over a year, seriously contributed to the connected to a network, the potential risk CEO’s resignation and the corporation’s to the logistics industry lies not only in a flatline in growth. data breach or system hijacking, but also in Although seemingly difficult, effective physical harm. cybersecurity starts with company policy,

The inability of employees to accurately detect malicious emails has encouraged the sort of email- orientated attacks that cyber criminals are using

Jonathan Sharrock, CEO, Cyber Citadel and more frequently against logistics companies. strategic partner to Freight & Trade Alliance

logistics companies are embedded within For transportation and logistics firms which is dictated by the leadership production facilities controlling inventory who deal with assets in motion, there’s and decisions of company board and handling on-demand needs of a plant. always a risk of bodily injury and property directors. Whether implementing a full For a potential hacker this means, instead damage. A network intrusion could lead cybersecurity audit, employing outside of targeting a large company that may have to numerous problems, including traffic professionals to test a system, installing tight cybersecurity protocols, they can gain accidents, loads exceeding weight limits, new hardware and software throughout access via a third-party service provider and hazardous materials being transported a network, or simply basic employee with less stringent security. to an incorrect destination. training, realising the importance of Ultimately, cybersecurity in the cybersecurity is a top-down process. CLUNKY SYSTEMS logistics industry is key, namely because This aspect of interconnectivity, with little cyberattacks can incur huge financial costs LOOKING FORWARD system segmentation, compounds the as well as debilitating reputational losses. Although the notion is starting to sound problem of legacy hardware and software In 2017, Centrify did an assessment like a broken record, it is time that prevalent among many logistics companies. of 113 publicly listed companies, all of the logistics industry starts to invest In recent years, the logistics industry which suffered data breaches. They found in cybersecurity in the same way that has been in the process of automating the companies’ stock values declined 5% companies in the banking and financial systems, turning paper into digits and on average after disclosing a data breach, sectors do. The costs to logistics companies, using advanced analytics to stay on top taking between seven and 90 days to their employees and their customers could

Gorgev supplied Imaage of needs of their customers. In turn, this recover their stock prices; 27% of customers be some of the worst yet to come.

thedcn.com.au April 2020 21

DCN0420_FTA.indd 21 27/3/20 10:40 am WOMEN IN MARITIME

A response to the growing gender gap A transformative and measurable agenda is urgently needed in the maritime sector, writes Jillian Carson-Jackson

INTERNATIONAL WOMEN’S DAY A TRANSFORMATIVE AGENDA falls on 8 March but every year is celebrated A true ‘transformative and measurable throughout March. This year’s theme agenda’ is needed. Do we have one for for IWD was ‘I am Generation Equality: maritime? The 31st assembly of the IMO Realizing Women’s Rights’. However, based adopted Resolution A.1147(31) aimed at on the Measure for Measure report on preserving the legacy of the WMD theme gender equality in Australia we are seeing a from 2019 and achieving a barrier-free growing gap. working environment for women in Australia is falling behind the rest of maritime. The resolution urges governments the world on the Economic Forum’s Global and industry to identify ways to overcome Gender Gap Index. In 2006 Australia constraints, with a focus on recruitment, ranked 15th in the world. Not bad. In 2020 training and capacity-building. This is being Australia is 44th. Yes, a drop of 29 places. implemented in many areas – an example is The report is available at weforum.org, the recent maritime charter announcement along with the ‘Mind the 100 year Gap’ in Denmark. Aimed at shipping companies, and the ‘Global Gender Gap Report 2020’. the charter identifies measures, such as ensuring someone at senior management is INTERNATIONAL PERSPECTIVE appointed to take responsibility for a strategy Looking at the four key areas used for the to increase the number of women working in Jillian Carson-Jackson FNI FRIN, senior vice- GGGI, Australia ranks 49th in economic their field. president, The Nautical Institute participation and opportunity, down from the ranking of 12 in 2006; 104th for health ARE QUOTAS THE ANSWER? final candidate pool, the odds of hiring a and survival, down from the ranking Include-Empower.com recently reported female candidate is 79 time higher. If there of 57 in 2006; and 57th for political on inclusive recruitment – the research are least two minority candidates in the empowerment, down from the ranking of they quote indicates that, if the final final candidate pool, the odds of hiring 32 in 2006. candidate pool has one minority candidate, a minority candidate jumps to 194 times Australia ranked first for education – they have a low chance of being hired. If higher. So, an initial step may be to set along with 24 other countries including there are two female candidates in the targets for candidates. Austria, Botswana, Canada, Colombia, Finland, France, Latvia, the Maldives and Nicaragua. This is the only category where Australia maintained its ranking IDEAS FOR INCLUSION from 2006. Women are working hard in Australia, If you were to develop a strategy to encourage and promote women in the maritime industry, ashore and afloat, what might it look like? I have a few ideas: but in more traditional roles of people and Visibility – it is hard to imagine a role in an industry if you are unaware of the culture, content production, marketing and industry. What can be done to raise visibility of the maritime industry? sales. Areas such as cloud computing have Education – include maritime transport as a key element of age-appropriate 12% representation, engineering is 19% curriculum. Link this with existing transport modules for lower grades, then provide and data and AI have 27% representation more of the science behind the maritime industry in the middle grades followed by by women. These figures are pretty much in career opportunities for years 10-12. line with global percentages. Culture – the maritime industry has a wonderful heritage but this should not Clearly there is much to do. inhibit inclusion. What can be done to promote a supportive and inclusive culture? We see ongoing reports that about 2% of Representation – this is about having women represented at all levels. The opportunity to influence policy decisions that, until recently, may not have been seafarers are women. Looking at the global developed with diversity in mind. Policies may have been developed to promote data from the World Economic Forum, women or minority groups, but these were developed by majority groups. It is time it shows that gender parity will not be to listen to those for whom the policies are being developed.

attained for 99.5 years. JCJ

22 April 2020 thedcn.com.au

DCN0420_Women.indd 22 27/3/20 10:04 am DCN full page ad.pdf 1 2017/02/10 13:42:29

CMY

DCN full page ad.pdf 1 2017/02/10RoRo 13:42:29 Automotive Breakbulk Efﬁcient, innovative and sustainable solutions

www.mirrat.com.au

CMY

RoRo Automotive Breakbulk Efﬁcient, innovative and sustainable solutions

www.mirrat.com.au

DCN0619_AllAds.indd 35 24-May-19 11:29:44 AM INDUSTRY OPINION

Regulatory compliance and container management In the second half of his analysis of container management, Zoran Kostadinoski explains how to stay on the right side of regulatory authorities

WHAT IS EMPTY CONTAINER DEMURRAGE? MITIGATING DETENTION RISK Container demurrage is commonly known in industry as container detention. Empty • Provide to your customs broker/freight forwarder all necessary documentation well before vessel arrival. container detention is a cost applied by Be aware of the date when free container detention ends. shipping lines for the late return of empty • • Take delivery of your container as soon as possible. containers to a nominated container park. • Unpack your container as quickly as possible (do not use it as a storage unit). In the majority of cases the return period is • Notify your customs broker/freight forwarder or transport company that the ten days from first day of availability at the container is empty and ready for collection, at least two full working days prior to container terminals. expiry of the detention free period. It is important to note some shipping • Timely payment of detention invoices is important to avoid further costs. lines start the detention clock from the date of vessel discharge not first day of availability, which further reduces the free container is de-hired. As most empty container parks. During this time the period. The decision of certain container container parks only open ten hours a day shipping lines pay fees to the ECPs to store shipping lines to reduce the free time during normal working days, it is often containers until they are relocated overseas. available for import containers to be difficult to de-hire the empty container But is the level of the charge appropriate? de-hired from ten calendar days to seven on the same day that the unpack is Charges should reflect the cost to the calendar days will increase international completed. Therefore, transport companies shipping line in regard to storage and trade costs in Australia for importers. The are forced to co-ordinate the staging of re-positioning. The CBFCA has advocated CBFCA does not support this practice. the importer’s empty container to meet shipping lines apply a consistent “rule” these time constraints. Such staging incurs of ten working days from the last day of WHO IS LIABLE FOR DETENTION COSTS? additional cartage, container lifts, yard availability. This would limit the effect Shipping Lines invoice such detention storage fees and booking notification fee at of weekend and public holidays on the costs to the consignee as referenced on the ECPs. Staging also absorbs “detention free” calculation of turnaround times. bill of lading. As the ultimate consignee time that may be left after unpacking the Shipping lines currently charge (cargo owner), the importer is responsible container is completed. detention daily (including weekends and to pay these charges. The importer is public holidays) however most empty also responsible for returning the empty REGULATORY DELAYS container parks are not open during these containers, with interiors clean, to the Further impacting on the available periods. Industry would also benefit if point or place designated by the shipping “detention free” time are the additional there was an online portal all industry line, and within the time prescribed. complexities and delays in regulatory participants could access. Should a container not be returned within cargo release after cargo availability. Trading community needs to foster a the prescribed time, the importer is liable More specifically, these delays have been better understanding of the way the supply for any detention, loss or expense. generated by increased Department of chain operates to maximise benefits, ensure Agriculture, Water and the Environment the efficient flow of containers and be MISMATCH OF OPERATING HOURS biosecurity intervention due to increased aware of compliance requirements. With 24 x 6 (and in some places and biosecurity risks, ongoing limitations in instances 24 x 7) operations by stevedores, the ABF Integrated Cargo System, late the mismatch of operating hours has been “targeted” containers for examination and Zoran Kostadinoski, exacerbated as importers limit operations an increase in containers selected by the head of border and to receive and deliver containers during ABF for X-ray and unpack requirements. biosecurity, Customs “normal” business hours. This mismatch Brokers and Forwarders Council of operating hours extends to the operating CALCULATION OF CHARGES of Australiaa hours of empty container parks. Australia’s import container volumes far Costs associated with the delivery of a outweigh exports; hence the majority of

shipping container, cease when the empty de-hired empty containers sit idle in empty supplied Image

24 April 2020 thedcn.com.au

DCN0420_CBFCA.indd 24 27/3/20 11:09 am DCN0819_Allads.indd 39 26-Jul-19 1:39:59 PM LINER TRADES TO NORTH & EAST ASIA

26 April 2020 thedcn.com.au

DCN0420_F_LinerTradesNthEstAsia.indd 26 27/3/20 10:55 am Curve balls The north and east Asia-Australia trade endured steeply contrasting halves in 2019 but that might have been mild medicine, given the challenges of the year ahead, as Dale Crisp reports.

fter the first six – maybe even eight – months TO THE YEAR AHEAD of 2019 carrier executives in the trade between If 2019 was “a little bit cray-cray” carriers consulted by Australia and north and east Asia were preparing DCN have decidedly mixed expectations for the year to throw themselves off cliffs. ahead, with big challenges on the horizon. Volumes both ways were very soft. Port “We are forecasting a four-to-six-week rush after statisticsA showed the inevitable result of retail China gets back into gear [post coronavirus]”, one doldrums and drought-ridden farms. Rates were trade manager says, “but after that we just don’t know.” rubbish. Prospects and promises of a solid southbound “Importers [such as major retailers] are predicting the peak kept slipping and slipping. status quo for peak season demand. If all goes well we Yet, surprisingly, while the year ended up in negative should see a gradual improvement”. volume territory it was not nearly as bad as the first Northbound, the situation is a little clearer as half foreshadowed. the impact of drought is known – ABARES reports Southbound trade from China slipped 3% and production prospects for summer crops in Queensland from north Asia by the same amount. The complete and northern New South Wales remain well below dominance of China and its relativity to other origins average, with substantial rainfall from late January in the N&EA trade is shown by declines of 2% by through to mid-February generally arrived too late for Japan, 6% by Korea, 9% by Taiwan and 12% by Hong additional planting and the outlook for follow-up rain Kong (likely to again reflect diversion of cargo to South “below average”. Indeed in the Bureau’s February Crop China ports), yet the total southbound fall was only Report the planted area is estimated to have decreased 3%. In TEU terms southbound dropped from 2018’s by 66% in 2019–20 to 357,000 hectares, a 33% 1.696m to 1.637m in 2019 (NB. all figures exclude downward revision from the forecast ABARES published Adelaide due to some data discrepancies). in the December 2019. Again, contrary to expectations and port data trends, Total summer crop production is forecast to fall by northbound declined by only 1.4%. Here too China 66% to around 878,000 tonnes, with steep declines in made the total look good: it increased by 2%, enough to grain sorghum (77%), cotton (72%) and rice. Winter counter export falls of 5% to Japan, 8% to Korea, 6% to crop production is estimated to have decreased by 5% Taiwan and 5% to Hong Kong. in 2019–20 to just under 29m tonnes and is well below Reefer exports made an outstanding contribution, average in all states with the exception of Victoria, registering growth 26% and driven by, surprise, where it is estimated to be 16% above the 10-year surprise, demand in China – for meat. This was mostly average to 2018–19. in the wake of swine flu’s decimation of Chinese Reefer exports are also expected to be hit, as better pig herds and by year’s end was showing signs of pasture growth prompts farmers to begin re-building abatement, with reports some protein importers were breeding herds rather than selling stock to market. abandoning reefers at discharge ports even after paying Growth in wine exports to China has plateaued after 30% deposit on shipments. several years of double digit increases. Northbound volumes for 2019 stood at around On a brighter note, carriers are projecting strong 808,000 TEU, compared to 821,000 in 2018. exports of citrus and grapes. And they’re beginning Overall, stats show China accounting for 90% of the to see a recovery in Chinese demand for logs, now 2019 N&EA trade. one of Australia’s largest containerised exports, as

thedcn.com.au April 2020 27

DCN0420_F_LinerTradesNthEstAsia.indd 27 27/3/20 10:55 am LINER TRADES TO NORTH & EAST ASIA

Busan, South Korea

backlogs at Chinese ports begin to subside. Bushfires The N&EA leg, renamed Dragon, rotates and floods had impacted log supply, too, although Yokohama, Osaka, Pusan, Qingdao, Shanghai, there are expectations salvage of fire-affected logs Ningbo, Brisbane (but see below), Sydney, will boost stocks. Melbourne, Brisbane, Yokohama and employs seven x 5500 TEU ships, of which Maersk provides SERVICE CHANGES five and vessel-operating service partner ONE two. This time last year low-season capacity management Slot-charterer MSC still uses the label Wallaby for was well underway. Maersk’s central/south China YoYo the revised service while ONE calls it AUN. service, mounted in conjunction with MSC and ONE, While this change did not result in material change was withdrawn at the end of March for an expected to tradelane capacity it did mean Maersk lost its direct 12 sailings, taking expected resumption through until N&EA-Adelaide and Fremantle connections, albeit July. The A3 consortium (ANL, COSCO SL, OOCL) was transits to/from the latter in particular were not downsizing three of the six Central loop ships from competitive with transhipment options. 8500 TEU to 5700 TEU. More recently following the introduction of the 14-day ex-China coronavirus quarantine rule, Maersk’s Dragon has dropped the southbound Brisbane call, We are forecasting a four-to-six-week with ships proceeding directly to Port Botany and then rush after China gets back into gear [post Melbourne and Queensland imports discharged on the northbound Brisbane call. This change is likely driven coronavirus], but after that we just don’t know. by Dragon adding southbound Hong Kong calls to cover the sustained post CNY cancellation of YoYo sailings, with the latter’s vessels noted performing feeder More significant service consolidation was voyages along the Chinese coast to HK. predicted, and expected, but instead – seemingly The same rule has also seen some modification counter-intuitively – carriers began cancelling sailings to port rotations on the NZ-focused ANZL and just on the verge of what should have been the ANZEX services in order to ensure the 14-day China- southbound peak. Brisbane spread. At the end of June, Maersk announced the YoYo suspension would be extended for a further five weeks STRUCTURAL CHANGES “due to continued soft market conditions”, and this It was not until November that structural change was further pushed out until mid-September, when five occurred. Evergreen announced it would withdraw 2800 TEU vessels finally resumed weekly frequency. from the NEAX service from the end of that month, Meanwhile, CAT, A1X, NEAX, A3N and A3S all with the last participatory sailing to be ex Ningbo on blanked at least one round voyage in the July-August- 28 November, and the last Australian port northbound early September period, and A3C’s Cosco-supplied Brisbane 17 December. This clearly presaged the end 8500s didn’t return to that service until late October. of the long-standing service, originally the domain Separately in late October, as a principal of the then individual Japanese carriers NYK, MOL consequence of the major re-organisation of south- and K Line, but more recently dominated by Taiwan’s east Asia-Australia services Maersk Line made a major Evergreen and Yang Ming. change to its premium N&EA service. The Danish Remaining members Yang Ming, APL, ONE and carrier de-coupled the SEA and N&EA legs of its weekly, Hapag-Lloyd maintained the service until slightly beyond 14-ship Boomerang service, which operated all the way year’s end, although there were several voyage blankings. from Yokohama to Laem Chabang and return via all Overall, members consolidated to the CAT and

major Australian container ports. A1X/CAE/CA6 services, with revised port rosters but Bugno Mariusz

28 April 2020 thedcn.com.au

DCN0420_F_LinerTradesNthEstAsia.indd 28 27/3/20 10:56 am PROACTIVE | RISK MINIMISATION | CO-DESIGN

DCN0220_Allads.indd 53 18-Dec-19 4:44:19 PM LINER TRADES TO NORTH & EAST ASIA

Container ship CMA CGM Puget

no direct calls in Japan (NEAX called Yokohama and Rumours this service plans to upsize vessels could Osaka) which, for interested carriers, is now served by not be confirmed at time of writing. transhipment. One executive praises the termination of NEAX Ningbo calls had already been restored to CAT, while but says “A1X was never needed in the first place”. A1X/CAE added Qingdao and Busan calls and employed Capacity supply and demand is now better balanced, a sixth ship, the 5000 TEU SC Mara, transferred from but “arguably there’s just too much in the low season NEAX and jointly-operated by ONE and Hapag-Lloyd. and just too little at peak”. HLL also transferred its nomenclature for NEAX, NAX, to A1X/CAE. ANL took over corporate sister STORY OF TWO INDICES APL’s allocation on A1X/CAE (which APL called CA6; After such an ordinary first half – “honestly, as bad as ANL took over all APL activity in Australian trades in I’ve ever seen it” – carriers’ nerves were stretched by a December 2019). The new rotation is Busan, Qingdao, very late-running southbound peak. As noted in the Ningbo, Shanghai, Yantian, Sydney, Melbourne, review of services, blankings were still prevalent deep Brisbane, Busan. into September – but then bookings jumped sharply and lines announced as series of GRIs, taking effect 15 September, 1 October, 15 October, 1 November and As for the impact of IMO 2020, carriers 1 December, ranging from US$300 to $500 per TEU. and shippers alike suggested a clear picture These gained some good traction as space utilisation increased, although the trade was never in the position was unlikely to emerge until at least the of significant cargo rollovers that occurred in late end of the second quarter of 2020. 2017; however, nor was it in the 2018 position of high utilisation but poor rates. The story is always best told through two key From mid-April some of the carry-over arrangements indices, the China Containerised Freight Index and the of the NEAX-A1X consolidation will end, with ANL Shanghai Containerised Freight Index, both published participation concluding and thus its CA6 ceasing. The by the Shanghai Shipping Exchange. line consequently loses Yantian from its Chinese port To remind, the CCFI reflects average indexed coverage but expects to make alternative arrangements. freight rates (all-inclusive spot and long-term rates, As a result of ANL’s departure ONE will step up to excluding THCs) of 15 different carriers for shipments become a full vessel operator in what it labels AUE, from Dalian, Fuzhou, Guangzhou, Nanjing, Ningbo, with HLL taking sole operational responsibility for Qingdao, Shanghai, Shenzhen, Tianjin and Xiamen. SC Mara and ONE supplying a replacement for ANL’s The overall index (01/01/1998 = 1000) is based on CMA CGM Puget. The last participatory round voyage both spot and long-term rates. for ANL starts when Ital Libera departs Yantian The December 2018 CCFI for the China-Australia/ in mid-April. A1X/CAE/NAX/AUE will then be NZ route stood at 787.54, down from 824.69 in populated by 2 x HMM, 2 x EMB, 1 x HLL and November, and 13.3% below December 2017’s 908.40.

1 x ONE vessels around the 5000 TEU mark. At the end of January 2019 the CCFI had again eroded, Vyacheslav Argenberg

30 April 2020 thedcn.com.au

DCN0420_F_LinerTradesNthEstAsia.indd 30 27/3/20 10:56 am 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.

THE MISSION TO SEAFARERS, Your financial support would be much appreciated. Sydney Donate now: BSB 062 074 Account 1000 8062 (Tax-deductible) 24 Hickson Road Millers Point NSW 2000 Tel +61 (0)2 92413009 [email protected] www.missiontoseafarers.org.au

MissiontoSeafarers.indd 1 01-Apr-19 3:18:48 PM LINER TRADES TO NORTH & EAST ASIA

Shanghai Yangshan Deepwater Port Container Cargo Terminal,Shanghai

to 766.94; by the end of February it was 718.82. At had almost doubled, to US$923. By mid-November the end of March it was down 18.6% year-on-year, to the SCFI stood at US$1164, up $43 from the previous 722.84. The average CCFI for June was 607.57, down week’s $1121, indicating the rate push was continuing 23.6% on June 2018, and at the end of July 2019 – the with measurable success. theoretical beginning of peak season – the index had “Rates held kept steady through most of the peak,” risen to only 646.62. one trade manager comments, “which is just as well as But by end-November the CCFI was up to 807.72. non-peak rates were lower than expected. There was a The SCFI reflects average USD spot rates (all slight dip in November but the withdrawal of NEAX in inclusive, but excluding THC) of 15 different carriers December kept things happy through to CNY, and the for shipments from Shanghai, to base ports in the area increased number of void sailings – mostly, genuinely, of destination. The overall index (16/10/2009 = 1000), due to the collapse in demand – enabled us to keep is based on spot rates only, and showed a much more vessel utilisations at around 95%.” alarming (for carriers) decline. The two main indices were not published for several weeks earlier this year during China’s coronavirus shutdown and so hard data is elusive. However, latest Reefer exports are also expected to be hit, indices available at publication deadline showed serious as better pasture growth prompts farmers erosion from the November position. The CCFI for ANZ was up from the previous week, although only to begin re-building breeding herds marginally from 802.87 to 809, against a combined rather than selling stock to market. index fall of 6%. The SCFI for ANZ was sitting at $771 for week-ending 13 March, down 64 from the previous week and compared to the combined index for all 13 On the Shanghai-Melbourne route the December measured tradelanes of a rise of 40.69. 2018 SCFI fell to US$587.00/TEU, compared to 676.80 Nevertheless, carriers consulted by DCN described in November. However, the comparison with December the rates as “not too bad” in the circumstances and 2017 was stark: a 50.4% fall from 1,184.20. By the end there was sufficient confidence in the resumption of of January 2019 the index had fallen further, to 532, ‘business as usual’ in China for some to notify a GRI of and a month later was just 383. The average for March US300/TEU from 1 April, especially as the low-season was 376.80, or 61.3% down year-on-year. downsizing took effect. The average SCFI for June 2019 was 264.25, 63.9% The China standstill saw carriers extend their 2020 down on the previous June, although there was a CNY voyage withdrawals week by week. In 2019 there substantial improvement in spot rates by the end of was a combined N&EA-ANZ CNY blanking of 12

July, to US$525, and by the end of September the SCFI sailings, but 2020 has seen 20 – and possibly more, as Jiankang Zhao

32 April 2020 thedcn.com.au

DCN0420_F_LinerTradesNthEstAsia.indd 32 1/4/20 9:48 am lines/groups have muddied the waters, so to speak, by sliding some schedules by a week, here and there, thus The A3C seasonal downsizing is already in disguising the exact situation. place and this year A3S is also shrinking, so As for the impact of IMO 2020, carriers and shippers alike suggested a clear picture was unlikely to emerge that at least two of the 5700 TEU ships will until at least the end of the second quarter of 2020. be replaced by 4500s until August. Notably, the spread between the price of ultra low sulphur fuel oil and ‘traditional’ heavy fuel oil had declined to under US$100/tonne at time of writing, “The big guys can just dial it down,” a CAT source from triple that amount at year’s beginning. indicated. “We just have an on-off switch.” “The LSS (low sulphur surcharge) has quickly turned Deadline for this review fell almost a month ahead into just another surcharge open to manipulation of publication and, rightly, few people in shipping line by shipping lines,” one shipper complains. “We’ll be land were prepared to make confident predictions about watching this very closely.” the year ahead in the N&EA trade. Managers were keenly scrutinising voyage manifests STATE-OF-PLAY for each vessel arriving from China, trying to decide if The outbreak of import-driven cancellations has put there was a genuine resumption of normal volume or pressure on the equipment supply in Australia although just carry-over cargo that was occupying slots. the situation is not nearly as bad as North America and “It hasn’t been a good start and I’ll be surprised if Europe, and varies between carriers. However, there’s it’s a good year,” one executive says. “Right now ships agreement that blanked voyages have starved lines of coming through are pretty solid, though, and I’m re-positioning opportunities and crimped supply of taking the optimistic line that will continue.” certain container types. “Northbound is going better than anticipated,” Although most carriers indicated no further another says, rather hopefully, “and rates are edging up”. blankings were anticipated after Week 11, Maersk’s But the situation is clouded by what would be YoYo appeared unlikely to resume at all while as this expected to be typical softness at this time of year. feature was being completed the CAT group announced And of course the great unknown is the local impact a further void sailing, for YM Enhancer ex China in of COVID-19. Week 13. Alas, a forwarder with a number of key import and Meanwhile, the A3C seasonal downsizing is already export clients was not so diffident: “You just have in place and this year A3S is also shrinking, so that to pull your head in, enter survival mode, and start at least two of the 5700 TEU ships will be replaced by planning for business recovery in 2021,” they said.

Zhao Jiankang Zhao 4500s until August. “This year is thoroughly effed.”

thedcn.com.au April 2020 33

DCN0420_F_LinerTradesNthEstAsia.indd 33 27/3/20 10:57 am DIGITALISED SHIPPING NESPIX

34 April 2020 thedcn.com.au

DCN0420_F_Digitalships.indd 34 30/3/20 1:53 pm ews coming out of the shipping sector in February told of another digital collaboration, this time between big shipping companies and ports. Its aim: to secure an industry-wide digital collaboration platform to benefit all parties in the global supply chain. Nine shipping Ncompanies and terminal operators have signed up to this Global Shipping Business Network, co-ordinated by logistics tech company CargoSmart Limited. But they aren’t the only ones working towards digital transformation. The container shipping sector has its own collaboration, which to date has released a number of industry-wide standards. For example, in January the Digital Container Shipping Association released its Interface Standard for Track and Trace, that puts forth a common set of processes, data and interface standards to Getting the enable customers to track containers across DCSA’s nine member carriers, with uninterrupted visibility. Another example is Pronto, a digital solution developed by Port of Rotterdam that went live in 2018. It enables ships – 30,000 of them call at the port annually – to share estimated arrival times and receive recommended speed adjustments to optimise their arrival at berth. According to the port, the application foundations will reduce waiting times by 20% and boost the utilisation of capacity. While there are many more companies digitalising their own operations to improve efficiency, reduce costs and create better customer experiences, once a transaction involves a third party, many of the benefits can disappear. Without industry-wide standards, the benefits of one company digitalising are not systemic as they are in other industries such as banking, travel, retail and telecommunications. While it’s widely agreed that RIGHTCATCHING UP breakthrough technologies In comparison with other industries, including in will require collaboration there transport and logistics, shipping has not been an early starter of digitalisation. But over the last two to three is still much work to be done years, significant progress has been made. on establishing common data “We still see differences between the different players with container liners being the most advanced, while standards, writes Paula Wallace other segments like tanker players, and even more bulk players are behind,” explains Camille Egloff, global transportation and logistics sector leader with Boston Consulting Group in Greece. “Ports who stand on top of a lot of data have made progress but are also trying to accelerate now,” she tells Daily Cargo News. The area where shipping has invested the most in the last five years has been in building a robust digital foundation with large programs in enterprise resource planning, essentially automating many important back office functions. The second area that has attracted investment is in digitalising the core business. “Here we see a number of initiatives still in the making or already bearing fruits. This includes digitalising the

NESPIX operations at sea with connected vessels using Internet

thedcn.com.au April 2020 35

DCN0420_F_Digitalships.indd 35 30/3/20 1:53 pm DIGITALISED SHIPPING

Mizzen’s online trends that will change our industry over the next 10 platform offers schedules and rates to 15 years. from 27 shipping lines “On this macro scale, the big technology trends are now becoming well known but there is still a big lack of understanding in our industry.”

AUSTRALIAN FOCUS Australia is well positioned on the digitalisation curve, according to Mr Creeden. We have some of the best freight tech companies in the world and many of our processes are partially digitalised. “We can take pride that there are some great home- of Things for maintenance, voyage management, or grown innovations. The best is the Patricks Autostrad consumption. Terminal,” he says. “Also, fleet centres have become more modern even Other local innovations include our vehicle booking Jon Charles, if shipping companies still lag behind the control systems at terminals and depots, and Matchbox managing director, Mizzen towers developed by airlines or mining companies. Exchange’s triangulation platform. “Efforts on the blockchain front are also evident in “The VBS process has partially digitalised the container shipping and this will have impact in two to interface between terminals/depots and the trucking three years,” Ms Egloff says. companies. Now we have to complete the process and Reportedly, US$4bn has been invested by venture get full integration between the TMS and TOS systems capitalist into 420 start-ups specifically focused on to avoid the manual slot booking frenzy that happens shipping. Angelist, a start-up investment platform, now every day,” he says. reports there are only 314 start-ups in the shipping “MBE’s platform is a great collaboration platform space but there are 487 that classify themselves as where it improves the supply chain efficiency, improves logistics companies. cost savings for all participants and allows multiple Peter Creeden from consultancy MPC International party exchanges.” says, “Blockchain, IoT, automation, and machine Mr Creeden recently joined the board of Mizzen. Its learning/artificial intelligence are the big technology software enables a shipping line trade/pricing manager

WORKING TOWARDS AUTONOMY One example of the rapid pace of place continuously to support the collision change is the drive towards vessel avoidance algorithm. autonomy. For power and technology “We are very proud to announce company Wärtsilä, the pursuit of greater that IntelliTug is the first commercial autonomy is driven by a desire to further Maritime Autonomous Surface Ship optimise operations, not reduce crewing. trialled in Port of Singapore waters.” “This is already evident in the car Wärtsilä believes that smarter ships industry, where data is used to optimise will allow operators to more effectively the usage of the battery and the engine control the movements of their vessels, in hybrid cars, and to help the driver reduce fuel consumption and lower to drive safely. It is similar in shipping,” emissions. This is not about going captain- Roger Holm, president marine power and free, rather, enhancing the capabilities EVP, Wärtsilä, tells DCN. of onboard crew as they traverse routes, One example of this approach is congested or restricted areas. ongoing work with harbour and towage “One year ago, we opened the doors operator PSA Marine in Singapore to to our Wärtsilä Acceleration Centre in develop a smart tugboat, called IntelliTug, Singapore with the ambition of fostering that incorporates multiple systems to deeper ties with partners and friends enhance safety and efficiency. within Singapore’s vibrant maritime “The Maritime and Port Authority of ecosystem,” Mr Holm says. Singapore fully supports such efforts IntelliTug is a case in point. The to enable autonomous ship operations Acceleration Centre has provided a within the world’s busiest transhipment creative space for the team to conduct hub,” Mr Holm says. user testing with a Wärtsilä digital IntelliTug’s system comprises an simulator before test bedding in the sea, integrated suite of hardware and while working alongside PSA Marine’s tug intelligent software to enable autonomous masters to develop a fit-for-purpose and Wärtsilä’s IntelliTug technology in action capabilities, while data collection takes useful system. Mizzen

36 April 2020 thedcn.com.au

DCN0420_F_Digitalships.indd 36 30/3/20 1:53 pm The driving force for efﬁcient and proﬁtable operations in the trucking industry. TRIP TMS

TRIP is a highly functional transport nO l i en o r ed r nemeganam t management system, delivering transport Fleet dispatching & movement management efficiencies at every exchange point, freeing up your fleet to take on more jobs, run remotsuC gniciovni & rd revi tnecni sevi more profitably and provide superior Dynamic planning service to your customers. Interfaced with Notifications (VBS) and CargoWise One

HELVETICA NEUE LT STD 87 HEAVY CONDENSED

www.containerchain.com

DCN0420_Allads.indd 37 27/3/20 2:09 pm DIGITALISED SHIPPING

to deliver dynamic pricing to maximise the profitability Mizzen has enabled every major carrier in this of each vessel voyage or shipment job. It is built for a market to receive and respond to a customer rate freight forwarder or shipping line that wants to create request online. It has built automated quoting their own digital channel on their website to allow a capabilities for eight lines with the ability to price customer to self service. dynamically. “Digital container freight sales are the ‘hottest’ “We have collaborated with the University of trend in our industry. It seems that after many years of Technology Sydney and 1-Stop Connections to create stagnation, this part of our industry is now becoming new data insights to the market to help shipping lines truly digital,” Mr Creeden says. make better pricing decisions and their customers Peter Creeden, managing “This is why I am excited to have joined the Mizzen procurement decisions,” Mr Charles says. director, MPC board,” he says. “We believe these data insights will also help International Managing director of Mizzen, Jon Charles accelerate the update of the new digital products says, “The growing digital divide between the few centred around booking certainly to help manage risk, driven real time market wide data views.”

We can take pride that there are some WHAT ABOUT THE DATA? great home-grown innovations. It seems data is the new gold but implementing technologies to extract value from data is not as simple Peter Creeden, MPC International as just ‘buying’ software and plugging it in, according to Mr Creeden. enabled shipping lines and freight forwarders and “This is the biggest challenge for our industry. We the realisation of the volume and growth potential need to move our organisations from doing the process this sales channel provides is the key driver [of to managing the process across the whole supply digitalisation]”. chain,” he says. Early mover carriers are reporting significant He believes the best advice to companies is to develop volumes of business being booked from their online a digital strategy that accepts where they are today and freight products between 9% and 12% of total liftings establish a two to five -year plan about how to change and forecasting further growth. their organisations to becoming data driven companies. “They are currently the only ones that can service and “Many companies have multiple databases stuck capture this digital market segment,” Mr Charles says. in departmental silos and the companies are not He says when Mizzen started business, digitalisation structured to have one source of truth. This leads was a “future concept”. to data integrity issues both internally and more “Only one line could service a customer’s rate importantly externally.” request from their own website. Ms Egloff says advanced analytics is one of the “Even 18 months ago when the Journal of greatest opportunities in the shipping and logistics Commerce surveyed the top 12 carriers capability, only sectors at present. two could instantly deliver a rate quote to customers “Beyond blockchain, advanced analytics has from their home page.” not been leveraged as much as possible by shipping companies and ports. TRACKER THAT STANDS OUT FROM THE “They sit on a wealth of data (vessels, trade, CROWD customers) and yet have not embraced advanced TRACKER STANDING OUT FROM THE CROWD analytics to really extract the value of it. While there have been many tracking solutions on the market, the “There are a number of use cases including cost and effort required to implement them has prohibited widespread routing and network optimisation, pricing, predictive adoption for the container industry. maintenance that can create a lot of value. Some use Australian company Spectainer is looking to challenge this by shifting cases have been addressed, but not in a systematic way,” the paradigm away from tracking containers to developing a “chain of she says. responsibility” around the movement of goods and global trade. What’s holding them back? The quality of data and Spectainer’s Sea Container Beacons (SEACONs) tackle container systems is one. But capabilities are really the core. tracking with the added benefit of trade efficiency, security of goods and reduction of criminal activity throughout the supply chain. “The collaboration between business and data SEACONs are an integrated system that measures, monitors and science is the way to unlock the power of advanced reports on location, security breaches and container handling. They analytics. operate predominantly on an IoT network but where a device cannot reach “Then, once algorithms are built, one should not a network (say at sea), the device has the capability to operate via GPS. underestimate either the changes in processes that are SEACONs have a battery life of up to five years with the potential for required for the data-based tools to be embedded in the 10 years based on usage. The functionality of ping times can be altered everyday life of employees. depending on client needs (i.e. more pings in a 24-hour period). Once “For example, it’s not enough to have an advanced an event is triggered, the container owner/user is notified through the online platform. pricing tool if the pricers still use their good old Excel

or do not believe in the tool,” Ms Egloff says. David Sexton

38 April 2020 thedcn.com.au

DCN0420_F_Digitalships.indd 38 30/3/20 1:54 pm THE 2019 DCN AUSTRALIAN Shipping & Maritime INDUSTRY AWARDS WINNER PROUD WINNERS OF CUSTOMS BROKER OF THE YEAR AT THE 2019 DCN SHIPPING & MARITIME INDUSTRY AWARDS

Australian owned, globally focused

All Ports International is proud to have been awarded Customs Broker of the Year. Professionalism and enhanced communication with our loyal customer base were crucial to our strong performance. Talk to us today and see how our specialist expertise, and innovative customer service, can make a real difference to your business.

allports.com.au 03 9933 3600

AllPorts.indd 5 20-Dec-19 3:09:46 PM DIGITALISED SHIPPING

Wärtsilä’s IntelliTug system comprises an integrated suite of hardware and intelligent software to enable autonomous capabilities

LAYING THE FOUNDATIONS Mr Bartnik favours an “open source approach” to The port is still the conduit where all the industry the issue and believes there are two distinct levels of players have to come together. The shift between development required to achieve effective digitalisation. landside and the bluewater highway is the most complex “There’s the underlying data store where we need and frustrating when it comes to digitalisation. to have some common standards and be able to share “There are some exciting things happening in the amongst different parties… but we all need to agree on the ship-to-shore space,” Mr Creeden says. definitions for that data and the mechanisms for sharing. “Improving the communication between the vessel, “That’s common property, no one owns that because port authorities, pilots, and tugs should be a key project if anyone tries others will be reluctant to participate. for Australian ports but it seems the tug companies are We saw this with TradeLens, because it was a Maersk pushing for innovations.” and IBM initiative they initially had trouble getting Having come into shipping just two years ago, other parties to accept it. Svitzer’s head of innovation David Bartnik believes he “The emergence of a common data standard will be can offer a relatively objective perspective on the digital a bit like drops of mercury on a tablet, ultimately they challenges facing the sector. will all coalesce in a single pool. The quicker we can make that happen, the better,” he says. Mr Bartnik says all parties in the freight chain need The collaboration between business to co-operate on standards for the data layer, but the and data science is the way to unlock the layer sitting on top of that, the application layer, is where companies can compete. power of advanced analytics. BCG believes that digital adoption can happen only Camille Egloff, Boston Consulting Group if it is led by a group of early adopters that represent a minimum of 25-30% of the market. In the case of blockchain, the BCG study from 2019 found that He believes moves towards digitalisation really stakeholders must develop an industry-wide ecosystem. began with initiatives from the International Maritime “An ecosystem is needed to foster trust and Organization around 10 years ago. collaboration and create a common standard that “They were looking for a successor to the ECDIS promotes scale and interoperability,” Ms Egloff says. charting system,” he tells DCN. “To catalyse the development of the ecosystem, “The European Union has spent around 70m Euro a company or group of companies must serve as an on a variety of projects, with the major one being the orchestrator… it is critical that they seek to promote MONALISA sea traffic management system. They are now value at the industry level, rather than pursue their working with the IMO, IALA and other organisations to own self-interest.” Camille Egloff, global formalise a series of standards for data exchange. But right now, even more with the advent of COVID-19, transportation “At the same time you’ve got Australian ports businesses are in a year of survival more than anything. and logistics thinking they should be doing something in this area. “However, there will be a day after and the winners sector leader, Boston There are a number of groups developing custom in five years from now will be the companies that have Consulting Group applications within their own silos… there’s a lot of embraced digital and advanced analytics in a bold way,”

duplicated effort in this area.” Ms Egloff says. Wärtsilä Corporation BCG;

40 April 2020 thedcn.com.au

DCN0420_F_Digitalships.indd 40 30/3/20 1:54 pm Dedicated to the extreme

Smit Lamnalco provides first-class, reliable and customised towage and marine services in Australia and PNG. No matter how remote or complex the operation, we are dedicated to exceeding expectations. Discover the possibilities at smitlamnalco.com

DCN0420_Allads.indd 41 23-Mar-20 1:36:16 PM PAPUA NEW GUINEA

Growing, diversifying Pacific Towing Pacific

42 April 2020 thedcn.com.au

DCN0420_F_PNG.indd 42 27/3/20 10:42 am Growing, diversifying & leading

A prominent PNG operator explains the nature of doing business there and prospects for the future. By David Sexton

acific Towing is a Papua New Guinea marine in the last few years when much of PNG’s business services business and a prominent player in the community has struggled, to “a highly committed Melanesian market. Based in Port Moresby but with and exceptionally skilled national workforce”, led by a operations scattered throughout the country it also predominantly nationalised management team. has separate businesses in Fiji and Solomon Islands. “PacTow invests hundreds of thousands of dollars PTowage, mooring, salvage, commercial diving and every year in high quality staff training programs life raft sales, leasing and servicing are PacTow’s for all of its employees, enabling us to ‘grow our own ‘core’ services. However, in recent years the company talent’ which includes growing our own managers,” has introduced additional niche services such as says finance manager Trudie N’Dresanei. hull cleaning and is increasingly sought out for its “Our training investment and deliberate strategy of capacity to design, engineer and implement a range of developing national managers means that… we are not customised and innovative marine solutions. ‘top heavy’ and therefore financially burdened by too PacTow has operated for more than 40 years and is many expatriates.” a division of the Steamships Group which is part of the international and diversified Swire Group. A full RECENT HIGHLIGHTS member of the International Salvage Union, it employs Marine operations manager Gerard Kasnari reports more than 200 staff, 94% of whom are PNG nationals. that three recent project highlights for the company The company has a fleet of 25 well-maintained were an open ocean towage of a barge from Micronesia vessels including fourteen tugs and a dedicated dive to Indonesia, the wreck retrieval of a container ship vessel which supports its hull cleaning service. Recently, from Fiji’s Suva Harbour, and also the commercial dive PacTow bought a barge fitted with a 150-tonne capacity team’s high altitude project at one of PNG’s largest crane to further increase its salvage capacity. mines. He points out that each project showcased the “expertise and ingenuity” of PacTow’s national staff. A GROWING FOOTPRINT Micronesia to Indonesia Ocean Tow: A 100% PNG As PacTow has grown and diversified its product range, team of twelve mariners expertly navigated their so it has expanded its geographic footprint. way from Micronesia to Indonesia, safely delivering “Not only do we have businesses established in three a stranded barge (128 M x 36 M) to its owners. The countries,” says general manager, Neil Papenfus. project covered 5,610 NM (10,389 KM) and took 44 “We are increasingly providing our services further days in total (including a detour on the way home to

A Pacific Towing afield in the broader regions of Oceania and south-east tow a stranded tanker to Port Moresby for repairs). hull and barge Asia,” he says. Fiji Wreck Retrieval: Container ship, the Southern

Pacific Towing Pacific Mr Papenfus attributes PacTow’s growth, especially Phoenix sank 140metres from the main wharf in Suva

thedcn.com.au April 2020 43

DCN0420_F_PNG.indd 43 27/3/20 10:42 am PAPUA NEW GUINEA

An underwater cutting operation Pacific Towing engineers hard at work

Harbour. PacTow mobilised equipment from PNG, High altitude commercial dive: The commercial Singapore and Australia to salvage cargo and re-float dive team, accustomed to salvage, oil spill response the hull, towing it out to sea where it could be safely and hull cleaning projects in warm coastal waters, sunk. This project showcased the diverse skillsets completed a technically and operationally challenging and expertise of staff from each PacTow division high altitude dive in PNG’s remote and mountainous and cleaned up one of the many wrecks that litter Enga Province early this year. Following the collapse of the economically and environmentally important a crane pad at one of the country’s largest mines, five waterways of Melanesia. The commercial dive team was divers successfully re-floated a pipeline submerged in central to this project which necessitated 1183 dives a tailings dam. Dive manager Ricky Leka reported the resulting in over 1000 hours bottom time. There were operation took place in water temperatures as low as six zero safety issues and lost time injuries. degrees at an altitude of 3200 metres above sea level.

SAVING LIVES PacTow’s life raft sales and servicing station has been ANL PREDICTS STEADY TRADE IN 2020 keeping people safe at sea for almost 30 years. Based at ANL has been a link between Australia and Papua New Guinea for Port Moresby’s Motukea Island, the station sells and decades and operates two services between the two nations. leases a variety of life raft brands to predominantly First is the Sofrana ANL - Westpac service with two 1000 TEU vessels business customers from both Papua New Guinea and on a 17-day frequency servicing Auckland/Tauranga/Noumea/Brisbane/ overseas as well. Townsville/Port Moresby/Lae/Kimbe/Rabaul/Honiara/Brisbane/ Life raft servicing is provided by a team of Auckland. Then there is a service with two 1700 TEU vessels on a 17-day internationally trained and audited in-house frequency servicing Port Kelang (Malaysia)/Singapore/Jakarta/Madang/ Lae/Kimbe/Rabaul/Port Moresby/Townsville/Port Kelang. This service technicians. Life raft brands stocked by PacTow include provides international connections via both ANL and parent company RFD and DSB from Survitec in the United Kingdom, the CMA CGM Group. Japan’s Fujikura and China’s Haining and HYF. Coastal David Pratt is ANL line manager for PNG/Dili, Darwin and the Pacific as well as international packed life rafts are available, Islands and he spoke with DCN about recent market trends. He notes as are a range of automatic and manual lifejackets 2019 annual import volumes were just over 100,000 TEU, similar to the from Crewsaver and S.O.S. Marine. The popular Zodiac year before, with export volumes from PNG over 32,000 TEU. brand from Survitec is to be introduced mid-year. “Overall market conditions are flat and the outlook for 2020 is no With more than 20 years in the industry, life raft great change to what we have seen in 2019,” Mr Pratt says. manager Morea Avuru is well positioned to understand He notes some important LNG and mining projects, albeit there have been delays as the government of PNG has sought “a better deal” from his customers’ varying requirements. project proponents. “We stock many different brands, as well as “One of the biggest issues impacting the country and trade is the different types of life raft, which means that we can availability of foreign currency that allows importers to secure USD to always provide businesses with what they need,” Mr pay for imports,” Mr Pratt says. Avuru says. “This situation has been going on for five years now and there is no “Furthermore, we hold stock and we have a quick sign of any improvement. If anything it is getting worse.” turnaround time.” He notes coronavirus cases have not been reported in PNG at the Shipping companies, defence force vessels and time of writing, so there has been no impact on volumes from south- east Asia or Australia “but things can change quickly”. commercial fishing operations utilise PacTow’s life

rafts and life raft servicing. Liferafts must operate with Towing Pacific

44 April 2020 thedcn.com.au

DCN0420_F_PNG.indd 44 27/3/20 10:43 am DCN0420_Allads.indd 45 23-Mar-20 1:35:15 PM PAPUA NEW GUINEA

Specialist boats near an offshore rig

100% effectiveness all the time if they are to save lives. fleet capabilities and service provision in the region. However, like all safety products, life rafts have a finite “As well as fleet expansion”, says Mr Kasnari, “fleet safe operating lifespan. maintenance is also a critical and integral part of any “Even the very best quality liferafts are only as good year for PacTow”. Neil Papenfus, as the technicians that service them,” Mr Avura says. The company’s team of engineers adhere to rigorous general manager, “PacTow liferaft technicians are trained in Australia, maintenance programs. The year 2019 witnessed the Pacific Towing China, Vietnam and Singapore, with its station run engine rebuild for the Pacific Salvor and the four-yearly to international standards and regularly audited by dockings of the Tuluman, Wanilla and Pacific Salvor. both suppliers and the PNG National Maritime Safety The Wanilla docking was particularly significant as it Authority,” Mr Avuru says. allowed the vessel to be further upgraded as a bespoke “Even if the customer didn’t buy their liferafts from surface dive support vessel. us we can still service them if they are a brand we The Yomba, PacTow’s Madang vessel, also underwent supply,” he says. an extensive full docking and rebuild. Although sales constitute the bulk of PacTow’s liferaft business, an increasing number of companies 2020 AND BEYOND PacTow continues to invest in high quality training opportunities for its staff including training in We are increasingly providing our classrooms and at sea, on short courses and on three to services further afield in the broader four-year cadetships. Together with program partners, PacTow has just regions of Oceania and south-east Asia finalised the third intake of female cadets for its Neil Papenfus, Pacific Towing Women in Maritime scholarship program. The second half of the year will see even more cadetships, which Mr Papenfus describes as “training opportunities are taking advantage of life raft leasing. Mr Avuru says of a lifetime” offered to young aspiring seafarers in leasing, importantly, takes the burden of servicing away Solomon Islands and Fiji. from the customer. “When a leased lifeboat is due for a service we simply DEDICATED TUG BASE swap it for another freshly serviced one,” he says. Mr Papenfus says the finishing touches to PacTow’s “It’s a service that our customers really appreciate.” new Motukea headquarters in Port Moresby will be completed mid-year. ‘PacTow HQ’ incorporates its ENHANCED FLEET CAPABILITY own staff and contractor camp and it is on track to An additional highlight for PacTow was its purchase of being managed to HACCP standards. Once the camp is

another ASD tug, the Waiowa, enhancing the company’s completed and together with a fully equipped workshop Towing Pacific

46 April 2020 thedcn.com.au

DCN0420_F_PNG.indd 46 27/3/20 10:44 am Pacific Towing staff working on a life raft

undergo an upgrade later in the year, helping better facilitate service provision in the north to both domestic and international clients.

SAFETY INITIATIVES AND LEADERSHIP Mr Papenfus says, “there is nothing more important at PacTow than working safely”. The company is rapidly approaching its fourth year of being loss time injury free and the recent appointment of a new safety manager further enhanced its safety credentials. PacTow also rolled out two new safety initiatives at the beginning of 2020. The first, a Staff Safety Awards program and the second, a program specifically aimed to maximise the workplace safety of women - Gender Smart Safety. PacTow is believed to be the only maritime business globally to have introduced this type of program. The company is to strengthen its health and safety capabilities mid-year when it introduces a more sophisticated and systematic approach to drug and alcohol testing. Despite several years of quiet shipping and a subdued PNG economy the business has thrived. PacTow has expanded not just its product offerings overseen by an in-house team of marine engineers but its geographic footprint and is now positioned as a and technicians, as well as multiple mooring and legitimate player in Oceania and south-east Asia. docking facilities, it will function as PNG’s (and indeed In addition to growing and expanding, PacTow is Melanesia’s) only dedicated tug base. It will service not also demonstrating industry leadership in terms of its only PacTow’s fleet but other tug operators as well. training and development of staff, its gender equality On the opposite side of the country, PacTow’s programs and its initiatives to maximise the workplace Northern Region headquarters in Lae is scheduled to health and safety of its female staff.

DISCUSSION FOCUSES ON SHIFT FROM DONOR-RECIPIENT RELATIONSHIP The Lowy Institute’s Emerging Minister Marape has made agricultural urbanised, with major cities along the Leaders report has outlined how the development a major focus of his new eastern coast growing quickly and Australia-PNG relationship is shifting government. struggling to adapt to demand for from one of “donor-recipient” to one The new Coral Sea Cable System infrastructure and affordable housing. based on more equal terms. The report between Papua New Guinea and Infrastructure was a major area of summarises discussions from recent key Australia was analysed and its potential discussion in the report, in particular meetings in Port Moresby. role in opening up new business the way that technologies like electricity According to the report, Prime opportunities. and telecommunications can enable the Ministers Scott Morrison and James There is also an opportunity for development of regional economies. Marape had sought to build a strong Australia to play a bigger day-to-day There are substantial opportunities relationship, with the visit to Australia by role in education in Papua New Guinea, through PNG and Australia working Mr Marape showing a strong personal and there is interest from a number of closely in their experience of these connection. Papua New Guinea’s provincial governments in having more developments. economic challenges were discussed Australian teachers work in PNG schools. Australia may be able to gain in the report and potential ways The two countries are working expertise and experience from that Australia could help the Marape towards development of a new implementation in Papua New Guinea, government deal with them. ‘comprehensive economic partnership’ and may be able to provide capital for Australia is providing short-term agreement which will provide further investment in some new technology, financial support for PNG’s budget but impetus for a recalibration of the for example, utilising blockchain in there was discussion of the need for bilateral relationship. Rural and regional renewable generation through to retail. further reform in some areas. development was highlighted as a key Developing and implementing small- Decisions on several resource issue for both PNG and Australia. scale renewables and microgrids may development projects are expected Some 80% of PNG’s population lives be a greenfield investment opportunity to be a factor in the future direction outside urban centres. In contrast, for Papua New Guinea to develop and of economic performance. Prime Australia’s population is increasingly export its expertise. Pacific Towing Pacific

thedcn.com.au April 2020 47

DCN0420_F_PNG.indd 47 27/3/20 10:44 am MARITIME INSURANCE

A series of unfortunate events

THE ROLE OF INSURANCE Traveller Martin; SvedOliver; Cat Box 48 April 2020 thedcn.com.au

DCN0420_F_MaritimeInsurance.indd 48 27/3/20 10:47 am Alexis Cahalan looks at the role of insurance in some cases where businesses have been affected by a series of unfortunate natural events

n recent times Australia has sadly borne the if occurring will affect the ongoing performance of brunt of a number of extraordinary, naturally- a contract. These can include, for example, weather occurring events - bushfires, floods and the arrival events, industrial action, natural disasters and in some of the coronavirus (COVID-19) - to its shores. cases the word “epidemic” specifically appears. Such a range and combination of unanticipated In common law countries a force majeure clause Ioccurrences has had an unprecedented and immediate cannot be implied into a contract. If it is, it will be impact on the Australian economy. interpreted strictly. If the event experienced is not In March 2020 the stock market plunged more than expressly included in the contract then the doctrine 30%, close to global financial crisis territory, and it is of force majeure will not apply outside the four walls possible by the time of publication that the sharemarket of a contract. If it does appear, then reliance on will have declined even further. the event must be proved by the party relying upon Supply chains are under stress due to a slowdown in the exemption to have not been in the reasonable production particularly in China, a major exporter to contemplation of the parties when the contract was Australia of consumables, construction and electronics. agreed and beyond the reasonable control of the party Airlines are reducing capacity, in the case of Qantas, relying on the clause. up to 90% on international routes. Cruise vessels are In the case of COVID-19, close consideration being prevented from entering scheduled ports and of the wording of the clause is required as it could borders are being closed with little warning. in fact be a government directive that is the force The knock-on effect is pessimistically awaited, majeure event. At the time of writing, governments despite the attempts of governments internationally around the world are imposing a range of travel bans looking to respond with a stimulus package to prevent and isolation requirements, which may be captured the economy heading towards recession. in contractual wording. While declaring a force majeure event may provide CONTRACT CLAUSES UNDER THE MICROSCOPE an immediate solution, it will not curb the longer term In the transport sector where long-term contracts for loss of income and cashflow issues that follow as a vessel charter and freight forwarding are not unusual, result. While businesses are looking at ways to manage contracts are being examined to anticipate what rights the impacts of these unanticipated events through their a party may have to suspend or terminate a contract. contract terms and government stimulus packages, Force majeure clauses are often seen in commercial this review should include considering what insurance contracts and are a typical get-out-of-jail clause in might respond in these circumstances. genuine circumstances. This article looks at the role of insurance in some Force majeure means literally “superior force” and cases where businesses have been affected by a series of

Traveller Martin; SvedOliver; Cat Box the clause typically describes a range of events which unfortunate natural events.

thedcn.com.au April 2020 49

DCN0420_F_MaritimeInsurance.indd 49 27/3/20 10:47 am MARITIME INSURANCE

INSURANCE FOR BUSINESS INTERRUPTION outbreak of the SARS epidemic in 2003, New World Business interruption insurance is not designed to Harbourview Hotel Co Ltd v Ace Insurance [2012] HKCFA cover loss from a catastrophe but from defined insured 21, the risk of disruption or closure of the business perils such as strikes, fire or subsidence, in other words was defined by reference to the event itself. The New it is not a guarantee to insure for loss of profit. World Development Group was the publically listed Cover for business interruption losses is often found owner, amongst other things, of hotels and convention in Industrial Special Risks insurance policies and will centres in Hong Kong. One of the policies taken out by cover items such as gross profit, professional fees and the hotel group covered losses resulting from physical increased costs of working. An insured will generally damage such as equipment breakdown. Another policy Alexis Cahalan, partner, Norton need to have suffered a physical loss, this means provided cover for losses resulting from “murder, suicide, White Lawyers damage to property, as a result of an insured event. infectious or contagious disease, food or drink poisoning Then there must be an interruption to the insured’s or contamination, and closure by a competent authority business as a result of that direct physical loss which due to vermin or pests all occurring on the Premises of the triggers the policy to respond. Insured or of notifiable human infectious or contagious disease occurring within 25 miles of the Premises”. CONTAMINATION COSTS The hotel group had sought indemnity for business Would the costs of disinfecting potentially interruption loss, loss of profits, suffered from the contaminated areas be covered by a business tourism downturn due to the SARS virus outbreak in interruption (ISR) policy? The facts in PMB Australia Hong Kong in 2003, which had occurred within 25 Ltd v MMI Insurance Ltd & Ors (2002) 12 ANZ miles of its premises. Insurance Cases 61-537 are illustrative. Kraft was the On appeal to the Hong Kong Court of Final Appeal, manufacturer of peanut butter. Throughout March and it was held that the policy was to indemnify against June 1996 it was discovered that peanuts provided by loss of actual revenue sustained by the business due to Kraft’s supplier, PMB, had led to peanut butter being the “notifiable human infectious or contagious disease”. contaminated with salmonella. PMB had to clean, test, This was held to be according to the date which the reclean and retest its manufacturing plant before it disease became a notifiable disease under government could despatch further product. measures rather than recommendations from health PMB made a successful claim under its ISR policy authorities. Timing in this case was important as for income lost during the testing and retesting stage. the cover continued for 180 days after the business It then set about incurring capital costs to upgrade the resumed and it was held that the insured’s loss of manufacturing plant to ensure similar contamination revenue depended on when the disease was notifiable and that this was when loss began to run. Had SARS not become a notifiable disease, the event triggering the Force majeure clauses are often seen in cover would not have occurred. commercial contracts and are a typical get- TRIGGERING BUSINESS INTERRUPTION out-of-jail clause in genuine circumstances. It is important to consider when the business interruption event is triggered. The NSW Supreme did not occur in the future. The insurers denied Court’s decision in Cat Media Pty Ltd v Allianz liability to pay further costs which it considered were Insurance Ltd [2006] NSWSC 423 resonates with incurred by reason of PMB putting in place future the current COVID-19 crisis. In this case Cat Media protective measures so that Kraft would recommence had a contract to distribute pharmaceuticals for ordering from PMB. It also denied liability to cover Pan Pharmaceuticals. Pan manufactured products costs incurred by reason of PMB appreciating it needed such as gel capsules, vitamins and topical creams at to take steps to reduce against the risk of future its premises in Moorebank in NSW. The Australian contamination which it considered had arisen from the Therapeutic Goods Administration (TGA) conducted incident. PMB was only able to recover the costs which an audit of these premises and found the cleaning were a consequence of the initial outbreak, in this case practices not up to the required standards. The TGA the cost of the stock which Kraft had returned and the issued a suspension of Pan’s manufacturing licence. associated transport costs. PMB was not entitled to However, some testing and analysis of the products the costs of taking steps in anticipation of an insured continued during the suspension. event, in this case the cost of capital works to avoid the Cat Media was insured under an ISR policy with risks of another outbreak of salmonella. Allianz. There was an extension clause in the ISR policy which triggered business interruption cover where: ECONOMIC LOSS DUE TO CLOSURE OF PREMISES “closure or evacuation of the whole or part of the In some cases the trigger for business insurance might Premises by order of a competent public authority not reference any actual physical damage occurring, consequent upon: and the precise wording of the insurance policy 1 human infectious or contagious disease occurring at the

will be important. In a case which arose due to the Premises; supplied Image

50 April 2020 thedcn.com.au

DCN0420_F_MaritimeInsurance.indd 50 27/3/20 10:49 am Stay up to date with the latest industry news and insights by subscribing to one of our SUBSCRIBE TODAY! subscription packages.

INDUSTRY PACKAGE Prices do not include GST

• Monthly Magazine • Daily newswire email 1 USER $795 • Website access – shipping data and news content UP TO 5 USERS $2385 • Online access to our extensive maritime directory UP TO 10 USERS $3975

NEWS PACKAGE

• Monthly Magazine • Daily newswire email 1 USER $590 • Website access – news content only UP TO 5 USERS $1770 • Online access to our extensive maritime directory UP TO 10 USERS $2950

ONLINE ONLY

• Daily newswire email 1 USER $675 • Website access – shipping data and news content UP TO 5 USERS $2025 • Online access to directory UP TO 10 USERS $3375

VESSEL ARRIVAL REPORTS

• Lists all vessels due to arrive at the major Australian ports 1 USER $1150 of SYD, MEL, BRI, ADE, FRE, PKB. Listed by vessel name, UP TO 5 USERS $3450 IMO number and agent UP TO 10 USERS $5250

CONTAINER REPORTS

• Lists containers imported into Sydney and Melbourne Displays depots, availability and storage charge dates, ensuring you have the information to help avoid unnecessary charges. 1 USER $1500

Corporate licenses are available for your whole team

For more information please contact... James Hayman, [email protected] or (02) 9126 9713 thedcn.com.au

DCN0419_SubsAd.indd 59 28-Mar-19 4:12:30 PM MARITIME INSURANCE

2 vermin or pests or defects in the drains or other sanitary insurance was to cover such loss occurring on a ski field arrangements at the Premises; or of an active volcano. Both the natural and ordinary 3 the outbreak of a notifiable human infectious or meaning of the clause and the commercial purpose of contagious disease occurring in the vicinity of the the contract supported this view. Alpine Lifts succeeded Premises”. in recovering the second category of losses. Cat Media claimed business interruption losses were triggered due to the defective sanitary arrangements EXTENSIONS OF INSURANCE COVER which contributed to the TGA suspending Pan’s In light of recent natural disasters, there are some policy manufacturing licence. It was held that the wording extensions that may be available to an insured such as of the extension clause was pivotal in determining an extension for Suppliers and Customer’s Premises. The whether Allianz was required to insure Cat Media effect of a break in the chain of supply where businesses under the policy. Further that nature of the three rely on the supply of goods, can be ameliorated if such occurrences or events referred to in the clause was the an extension exists to cover losses caused to the property relevant trigger. However, the Court held that the TGA (such as destruction by fire) of suppliers resulting in suspension was not a “closure” within the meaning disruption along the distribution chain. of the wording because the premises remained open Loss of Access extensions may be of some assistance for testing and there was no physical prohibition of where surrounding premises are damaged, but this is unlikely to assist where nearby premises are closed and prevent neighbouring businesses accessing their Businesses affected by recent natural properties, rather than physically damaged. Given the exceptional nature of COVID- 19, some policies which events and the fallout from COVID-19 provide for the costs of “Quarantine and Disinfection” should consider the types of losses may respond where such costs have not been incurred in the normal course of business. for which they are covered. Businesses affected by recent natural events and the fallout from COVID-19 should consider the types of losses for which they are covered, what triggers may have access to the premises. It was an unfortunate result been activated due to recent events and looking forward, for Cat Media not to have had the benefit of business at insurance protection as part of its suite of responses interruption cover in these circumstances when the to contractual claims which will inevitably arise. very nature of its business depended on goods being available for distribution. WHAT ELSE TO CONSIDER? Frustration of a contract may also be a basis for DAMAGE TO PROPERTY terminating a contract, however, the test for It is not always the case that the particular property frustration is stricter than that for force majeure. suffering damage need be specified. This was demonstrated The affected party must establish that the contract in a New Zealand case arising out of the volcanic eruption is so drastically different and that it is physically or of Mt Ruapehu- State Insurance Ltd v Ruapehu Alpine Lifts commercially impossible to fulfill the contract. It will Ltd (1999) 10 ANZ Insurance Cases 61-435. only be the most extreme cases that may be categorised Ruapehu Alpine Lifts was the operator of ski fields as one where a contract has been frustrated. Parties on the slope of the volcano. The volcano erupted during must also be conscious of asserting such rights as the 1995 and 1996 ski seasons causing volcanic ash to an incorrect assertion could amount to anticipatory be deposited on the ski fields making them unusable breach of contract allowing the other party to claim and causing significant disruption to the ski business. damages as a result. It is also important to be aware Alpine Lifts claimed under its business interruption that an affected party is required to mitigate its losses. policy for two kinds of losses. The first type, for losses Business contingency planning is now timely along when the mountain was closed for safety reasons, with a review of: this was paid by the insurer. The second, was claimed • specifically force majeure clauses in contracts, do they on the basis the damage to the snow rendered the ski expressly extend to cover recent natural events, do fields inoperable. State Insurance declined to pay this they provide for how to notify the other party of component of the business interruption claim. such an event? The issue was whether snow came within the • existing contracts and standard terms and meaning of “other property” and within the meaning conditions- are there clauses which guard against of the policy. The insurers argued that it did not. The delay and consequential losses or limit liability? New Zealand court emphasised that “it is a matter of • to what extent does insurance provide cover for ascertaining the intention of the parties to the insurance business interruption, what is the property insured contract from the words they used in their contractual and what events will trigger the cover? and factual setting”. The court held that it was obvious Recent events demonstrate that such an analysis

that the purpose of obtaining the business interruption now, may provide safeguards in the future. supplied Image

52 April 2020 thedcn.com.au

DCN0420_F_MaritimeInsurance.indd 52 27/3/20 10:50 am Do you really know your customers?

Iain Sharples explains how taking a pro-active, problem-solving approach to relationships with your customers can alleviate much stress

t goes without saying that every business operator DETECTING SUSPICION ACTIVITY should be close to their customers - because Another area where knowing your customer becomes knowing what’s important to them gives you a even more crucial is with the potential for fraudulent competitive advantage. For freight forwarders and activity and theft, as it is harder for a criminal to customs brokers, knowing your customer is even succeed when the forwarder and its customers are Imore important because it forms a crucial part of your working closely together. risk management strategy. Zurich, through its exclusive wholesale arrangement The current COVID-19 pandemic is an acute with Midas covering freight forwarders liability, example of this in practice - an unprecedented event has seen numerous examples over the last 25 years that is impacting all corners of the globe and just about where losses might have been prevented if the freight every industry. Particularly, the impact on the marine forwarder had been able to gain more knowledge of its and transport industry is proving highly stressful, customer prior to an event occurring. extraordinarily complicated, and it is evolving daily. Whether through cyber theft or more traditional means, the ability for a freight forwarder to call a PROBLEM SOLVING trusted worker at the customer’s offices, could swiftly For freight forwarders, understanding the overall cut off an attempted theft or fraud. Whether it’s an supply chain of your customers and knowing what unusual payment to another account or receiving a alternatives may be available, allows you to partner suspicious email, being able to pick up the phone and with them and problem-solve together, alleviating speak to someone you know is crucial, particularly with stress for all stakeholders. international transactions when you may never meet It’s crucial to understand your customers’ all parties. journeys from a commercial point of view too. A The rating of duty and ensuring import quotas are large percentage of insurance claims against freight not exceeded, is another area where knowing your forwarders are generated from cargo loss and damage, customer can help avoid large losses. Zurich Insurance and although the incident itself might be simple, the has seen large potential claims generated due to alleged background legalities can cause complications. Having incorrect classification of goods for customs brokers, a strong relationship with your customer means that with even larger losses incurred when cargo is not with the support of your insurance broker and insurer, collected. If customers go into administration, the you can confidently advise your customer on the legal freight forwarder can be left with both unpaid bills and steps to take, should a loss occur. the cost of disposing unwanted cargoes, highlighting However, a more proactive strategy is to work with the importance of understanding the financial position your customers to prevent losses occurring in the of your customer and taking steps to prevent over- first place. As a freight forwarder, if you know your exposure and mitigate risks. customer typically exports cargo of dangerous goods, but you receive notification with no declaration of MITIGATING LOSSES DG, you may be able to flag this and prevent a mis- Whilst it is impossible to prevent all losses, many declaration to the shipping line. issues and claims can be prevented or minimised by the This deeper knowledge around the exported forwarder knowing its customer’s business well. product type can help all parties involved when an At Zurich, we review standard terms and conditions issue arises. A recent example experienced by Zurich and carriage documents to ensure the liability were issues with goods from charities, where donated provisions meet the expectations of the insurance toys still included old batteries. This caused a fire policy, and when a potential loss occurs, our claims in one container and resulted in other containers team can step in to help guide the insured and protect being discharged at an unscheduled port for unpack, their position. Iain Sharples, inspections and re-pack. The costs incurred were However, when losses do occur, a strong customer national manager marine considerable, so a robust risk management strategy was relationship often results in a better outcome for all and transport devised between all stakeholders - the charities, their involved, because the forwarder can work with the liability, Zurich forwarders, the shipping lines involved and Zurich as customer and us as the insurer in a proactive and Financial Services Australia

Image supplied Image the insurer. positive way to mitigate losses.

thedcn.com.au April 2020 53

DCN0420_F_MaritimeInsurance.indd 53 27/3/20 10:50 am TRADE LAW

At last, the United Kingdom has finally started its process to depart the European Brexit has Union. However, there is uncertainty about what started but the will remain at the end of the departure process, uncertainty writes Andrew Hudson

remains ON 31 JANUARY 2020, BRITAIN formally resigned its position within the European Union. However, reports of the split as a “divorce” probably overstated the position given there were few immediate consequences with many of the details yet to be finalised and the parties largely continuing to live together until the details can be worked out. The next real deadline is the end of the year at which time the UK and EU would have negotiated a formal exit arrangement, agreed to an extension of time or, if not, moved to a version of a “no deal” Brexit in which default arrangements for “all other countries” will be applied by the UK to the EU. While there has been some confidence that a free trade agreement and other agreements governing the relationship with the EU can be secured by 31 December 2020 there is still no clarity on their form and content.

DEAL OR NO DEAL? A “no deal” outcome on trade remains a possibility if the EU and the UK fail to conclude a new trade agreement before 31 December 2020 and the transition

THE UK AND THE EU The current state of the arrangements between the UK and the whether some form of FTA or otherwise) based on the EU on trade is as follows: concepts contained in the “Political Declaration on the EU- • The EU (Withdrawal) Act has come into force in the UK UK future relationship”. commencing a transition period until 31 December 2020. • The UK can start negotiations on FTAs but they can’t start • The EU has passed a resolution accepting the withdrawal. UK until the transition is at an end. members of the EU Parliament have been withdrawn. • Those countries with an FTA with the EU can treat the • The UK became a separate WTO member from 1 February UK separately but aren’t expected to do so. For example, 2020 and no longer has to “sit at the back” of the room as an Singapore has already confirmed that it will continue to treat observer without a right of separate representation. the UK as part of the EU as part of its FTA with the EU. • The UK has now “opened for business” a number of separate • The transition will last until 31 December 2020. Under the trade representative offices around the world extolling the Withdrawal Agreement, it can be extended for up to two years virtues of business with the UK outside of the EU. if the EU and the UK agree to do so. However, at present, the • The EU and the UK will negotiate a new economic and UK government’s stated intention is not to seek or agree to an security relationship, (including a new agreement on trade, extension which is currently written into UK law. Lazyllama Ackerman Ian

54 April 2020 thedcn.com.au

DCN0420_TradeLaw.indd 54 27/3/20 10:03 am period is not extended. In that case, with for regulations remain but there seems to effect from 1 January 2021, the basis for be more fundamental concern around the EU-UK trade would automatically default European Convention on Human Rights. to WTO terms. The UK has indicated In many ways the debate reflects the that a priority would be to secure FTAs essential difference of opinion between with major trading partners such as the the EU and the UK. The EU is seeking EU, the US and Canada, together with its an ongoing legally-binding commitment “traditional friends” such as New Zealand from the UK to observe the ECHR and and Australia. to continue to submit to the European Prime Minister Boris Johnson has Court of Justice while the UK sees such stated the UK would prefer to have a commitments to be contrary to its “comprehensive” and “frictionless” FTA intentions to regain as much sovereignty with the EU like the EU’s deal with Canada as possible. As part of that approach the (which took years to negotiate). In lieu UK does not want to bind itself to the of such a deal, the British PM has stated ECHR or ECJ through a further Treaty he would even settle for a “bare bones” and will only agree to observe the ECHR FTA with the EU focused only on reducing through a “good faith” commitment. The tariff levels and customs issues “such absence of agreement on such fundamental as Australia has with the EU”, which is issues could lead to the failure to strike Andrew Hudson, partner, Rigby Cooke Lawyers an odd position for two reasons. Firstly, a comprehensive agreement – or no Australia does not have an FTA with the agreement at all. WHAT DOES IT MEAN FOR AUSTRALIA? EU. Secondly, describing our FTAs as “bare While the EU is an important trading There must be some practical concerns bones” only is somewhat misconceived. partner for the UK (around 49.1% of trade on the ability of the UK to conduct We would certainly describe our FTAs as valued at 659.5b Pounds sterling according negotiations beyond the EU and the US “comprehensive” and the best deals that to the UK International Trade Department), even with stated commitments to other could be done at the relevant time. the main UK aim remains to remove itself countries including Australia and New Any “frictionless” FTA with the EU from the regulatory burden of the EU. The Zealand. could be difficult to achieve as the EU has suggestion has been that by May 13 2020 The EU has already engaged in detailed already indicated a number of issues as (round 5 of negotiations) there may be more negotiations with both countries being fundamental to an FTA but which clarity on the UK’s position and whether the although for Australia, the issues of have previously been seen as unacceptable independence of freedom from the EU will geographical indicators and commitment by the UK. Beneath all the rhetoric there outweigh the intent of UK businesses to stay in to climate change policies acceptable to seems to be a real likelihood that there will an organised and known environment. the EU may slow the progress towards a be a “harder” trade border between the EU The UK recently announced it would comprehensive FTA. and the UK than has been in place for 48 present a draft of an FTA before the next set For Australian exporters and importers, much will depend upon the FTAs we can reach with the UK and the EU. There are There seems to be a real likelihood that there will already some smaller “mutual recognition” be a “harder” trade border between the EU and agreements in place to facilitate trade but any growth in trade would require the UK than has been in place for 48 years. substantial cuts to tariffs, quotas and barriers by the UK and the EU for our years. As time passes, a “no deal” outcome of negotiations starting on March 18 2020. farmers, investors and winemakers. Our for trade between the EU and the UK also It is reportedly based on other FTAs the EU exporters of aluminium and steel will also becomes more likely. already has with non-EU countries. need to be careful of the new UK Trade Remedies regime. The new border barriers, THE STATE OF EU AND UK NEGOTIATIONS THE UK AND THE US controls and standards promised by the UK As I write this commentary, the EU and the Probably the second – most important FTA will complicate the job for our exporters. UK have just completed their first round deal for the UK would be with the United Whatever happens the benefits may not of negotiations. Before those negotiations, States. The UK released its negotiating be as significant as has been predicted as, both the EU and the UK set out their objectives on 3 March 2020 and is seeking after all, the “tyranny of distance” has negotiation positions in public, both of to improve market access for its business always been the major impediment to trade which seemed to be at odds with one services, financial services, transport and with the EU and UK. another. The first round of negotiations digital sectors in talks with the US. The UK We also run the risk of missing out seemed to have been conducted in a has already stated that food standards and on the first “wave” of FTAs and the reasonably amicable manner although the National Health Service are “not open chance to be “first in the market” with not a lot of progress has been made. The for negotiation” and many in the UK are improved access. anticipated issues such as fishing rights and concerned about US – style “rules of origin” Stay tuned for more updates as the

Lazyllama Ackerman Ian the maintenance of a “level playing field” which should be no surprise. smoke (and virus) clear.

thedcn.com.au April 2020 55

DCN0420_TradeLaw.indd 55 27/3/20 10:03 am INDUSTRY OPINION

Australia’s strategic maritime capability MIAL plans to establish a compendium of maritime businesses and assets with key contacts, a list of assets, sailing routes and more, writes Teresa Lloyd

LET ME START BY AGAIN THANKING boats and many other assets and skills all the maritime businesses and workers are frequently called upon, but rarely that stepped up only too willingly to assist considered part of Australia’s strategic during the bushfires over the summer. marine capability. And of course, the Also, thank you to those who were not protection of our environment by ultimately utilised but were on stand-by. emergency towage and salvage capability is The spirit in which this was performed an essential function. and commitment shown by vessel owners, What we saw over the summer was the operators and their charterers is something responsiveness of the commercial maritime the entire maritime community can be very sector. The vessels were well suited to the proud of. The bushfires which we all know roles they undertook and the crews were caused so much devastation to so many able to be tasked at very short notice. The communities are the latest emergency event local civilian maritime industry proved that reminded us that the majority of our itself to be flexible, nimble, professional population lives on the coast – and that and highly capable. An island nation landside access isn’t always possible. cannot afford to continue to overlook and undermine an industry that provides so FLOODS, CYCLONES AND FIRES much support and capability to the country Teresa Lloyd, CEO, Maritime Industry Australia As has been the case on numerous occasions in times of need. Limited during floods, post-cyclones and throughout bridge outages, maritime assistance and A PUBLIC GOOD emergency response agencies to rapidly support was crucial to the safety and There is a clear and considerable public determine what is available in the area, wellbeing of affected communities during good element to having maritime assets what might be passing by, who to call and the fires. In the case of the bushfires this was and people across all the sectors – domestic importantly speak directly to those in a even more important given the restricted commercial vessels, bluewater, offshore, position to make quick decisions. aviation support due to persistent smoke. cruise, towage, etc. Each sector has played a MIAL will also start work immediately The benefits to the nation of having part in this, and other, crises and it is time on identifying the areas for improvement maritime companies and maritime to recognise the breadth and value of our when working in these emergency capabilities, including wharves and maritime industry and the willingness of situations. Streamlining communication maintenance bases as well as vessels, based these businesses to assist. channels, identifying regulations that in Australia must be recognised. Not just The government, as part of their duty may need some flexibility in emergency for the support that is provided at the to protect Australians and be ready for situations and ensuring plans are in place time of the crisis – which can be anything disasters, needs to encourage maritime to maximise the vast resource that is the from vessels being used for shelter, as businesses to have a significant Australian commercial maritime sector. a means of evacuation and to provide presence and to ensure the diverse range of essential supplies, through to the provision assets and skills required are available. FINAL THOUGHTS of gangway/jetty infrastructure to allow Improving the plans for the engagement of aid to be delivered - but for the role they A MARITIME COMPENDIUM civilian maritime resources, establishing play in rebuilding remote, regional and To assist our emergency response agencies contacts and relationships across the island communities after major events. in the future, MIAL will be establishing a business and government/emergency And beyond that, there is the critical work compendium of maritime businesses and response divide and gaining a solid of replacing channel markers, rebuilding assets. This compendium will include key understanding of the requirements from wharves and removing debris to ensure contacts within companies in the maritime both sides will lead to even more assistance that our ports keep operating and our trade sector, a list of assets available along in the future. MIAL looks forward to lanes are safe. with details of their capabilities, areas of discussing the measures required to secure Landing barges providing direct access operation, range, equipment available, Australia’s strategic maritime capability to

to beaches, versatile barge cranes, dive sailing routes and more. This will allow ensure it meets the needs of the nation. MIAL

56 April 2020 thedcn.com.au

DCN0420_MIAL.indd 56 27/3/20 10:29 am Providing personnel with the right skills and right fit for 20 years.

Impex Personnel. The supply chain placement specialists.

On January 1 2000, at the start of the new millennium, Impex Personnel set out to be the best personnel placement specialists in the supply chain industry. 20 years later, while our systems and processes have evolved, our commitment to provide the best people for your recruitment needs remains the same.

Our Placement Specialists know supply chain inside out. Today we are better placed, and more focused than ever to provide the people you need, with the skill-sets and experience you want.

Our thorough understanding of your business requirements ensures we will only propose people who have the right skills and the right fit for your needs and culture.

Our commitment to proposing only the best and most suitable people with our desire to build long-term exclusive collaborations with our clients make us the perfect placement partners to fulfil your recruitment needs.

Sydney • Melbourne • Brisbane • Adelaide • Perth • Auckland • Christchurch 1300 85 85 15 impexpersonnel.com

DCN0220_003_OSBC_ISBC_210x297.indd 68 29-Jan-20 3:59:16 PM DCN0420_MaritimeLaw.indd 58 58 Derek Lawyers Luxford, Hicksons consultant, April 2020 April MARITIME LAW MARITIME from Australia the exporter needs to apply apply to needs exporter the Australia from waste.” the of effects harmful the from are protected Australia, outside and within both environment, the and beings human that so manner sound environmentally in an managed is waste transited or imported exported, that ensure to waste hazardous of transit and import export, the regulate to is Act this of object “The reads: Act the 3 of Section environment. the to and people to harm preventing of aview with wastes hazardous of movement international the control to is Convention the of purpose The FRAMEWORK LEGAL THE no precedent. was there because Act the under provisions offence relevant on the ruling a judicial obtain to case the bringing was it that clear made prosecution The Australia. in Act the under prosecution first the was It Keady. Magistrate Court Local of judgment a Ltd, Pty E-Recycling vSims Prosecutions Public of Director Commonwealth The is judgment The waste”. “hazardous constituted batteries the that evidence any lead to failed had prosecution the basis on the Belgium to Australia from ion batteries lithium scrap of exporter Australian an against prosecution the dismissed Parramatta at Court Local 1989. Act Imports) and Exports of (Regulation Waste Hazardous the by Australia in force given Convention the of breaches alleged for Australia in none been had there Disposal their and Waste Hazardous of Movements Transboundary of Control the on Convention Basel known little the under offenders batteries thrown out thrown batteries involving prosecution waste Hazardous PROSECUTIONS OF ENVIRONMENTAL fail, Derek Luxford writes sector trade, sometimes but criminal prosecutions in this for offencesin international parties by shipping and are no Australian to strangers The prosecutions courts In order to export a hazardous waste waste ahazardous export to order In Wales South 2019 New July In the are rare internationally. Until 2017 Until internationally. rare are

Environment, as it was named at the time, time, the at named was it as Environment, done. duly was This waste. the of movement the approve must authorities those case). of Each this (six in route transit sea on the countries the all to as well as countries importing and exporting the in Convention the of authority administering the to exporter the by provided be to information detailed with mid-2016.in Belgium, Antwerp, to Sydney from shipped were batteries scrap of thousands many holding containers these of shipments Three containers. shipping four inside placed and drums into packed individually were batteries The Belgium. in recycling for ion batteries lithium scrap of quantities sea by export to company aBelgian with contracted exporter Australian The THE FACTUAL BACKGROUND waste. hazardous being as material voluminous this of any in anywhere mentioned not are ion batteries lithium note, should we Importantly, explode. to atendency as such hazardous substance the render may which characteristics of alist is there Also, mercury. and cadmium metals heavy the instance, for including, waste hazardous as defined are which substances many are There overlap. some with Decision OECD related the and Convention the to appendices and annexes various the in wastes hazardous non- and hazardous of lists voluminous are There Convention. the to it leaves it rather such, as waste hazardous define not does Act the (s.40).Act Significantly the of abreach is apermit without waste hazardous Exporting permit. aspecial for The Commonwealth Department of the the of Department Commonwealth The complex is permit export an for Applying the dcn .com.au 27/3/20 10:33 am

Huguette Roe; Hicksons which administers the Act in Australia the batteries were hazardous waste as a “hazardous waste”. It was crucial to the issued an export permit to the exporter matter of construction of the legal regime, judgment that the magistrate held the in March 2016 containing particulars the prosecution would fail on the basis there evidence of the Department’s employees prescribing the manner in which the scrap was “no case” for the defence to answer. that the batteries were hazardous waste was batteries were to be packed, the maximum At the end of the prosecution’s evidence purely an opinion based on assumptions weight of the total consignments, the route the defence asked the magistrate to rule and that it was not evidence that the the shipments were to take and various there was no case to answer. The only batteries were hazardous waste, and that no other details which had been set out by evidence to establish the scrap lithium such evidence was provided. the exporter. The Department approved ion batteries were hazardous waste were The magistrate commented that to the the application, as it had done with a prior two administrative employees of the contrary, the exporter’s employee called as shipment of the exporter’s scrap lithium ion Department who had been involved in the a witness by the prosecution told the court batteries to the same company in Belgium. permit application process and who had no that the batteries were not hazardous waste It is not as if the Department came up with personal expertise or training in relation under Convention code A 1170, the very code its own particulars, rather it approved the to hazardous waste or industrial chemistry. specified by the Department in the permit. particulars the subject of the application. No expert evidence was called. The judgment of the Local Court does Interestingly the prosecution called not mean lithium ion batteries are not SCRAP BATTERIES ABLAZE evidence from a senior manager of the hazardous waste. However, it is a clear Unfortunately, in June 2016 the second exporter with training and experience in finding that if the prosecution wants to shipment comprising two containers of industrial chemistry and who had been establish that a particular substance is the scrap batteries caught fire during cargo closely involved in the export application hazardous waste, then the prosecution trans-shipment while the vessel was in port process and in supervising the packing and must lead convincing evidence that the in Colombo, Sri Lanka during carriage of preparation of the scrap batteries into the substance is hazardous waste. The fact the the containers to Belgium. Investigations containers, who gave evidence the batteries prosecution called no evidence, as found by pointed to the cause of the fire being were not hazardous waste and rather fell the magistrate, was conclusive that there inadequate cargo handling and stowage of within the categories of non-hazardous was no case to answer. the containers in the vessel. Scrap lithium ion batteries must be carried on deck pursuant to the IMDG Dangerous Goods The judgment establishes that in order to assert a Code. Unfortunately, the containers were carried below deck and it was during the particular substance is hazardous waste the regulator process of being moved from below deck must do more than make assumptions. onto the quay and then back below deck in Colombo that the fire occurred. There was no harm to people nor the environment, which the Act and the Convention are waste where an export permit is not The judgment establishes that in order to designed to protect. required. The exporter through that same assert a particular substance is hazardous employee had conveyed that view to the waste the regulator must do more than THE PROSECUTION Department in its previous application for make assumptions, it must make adequate After the exporter informed the Department an export permit. inquiry as to why the substance is hazardous of the incident, the Department waste. In other words, the regulators and investigated. It decided there had been a THE JUDGMENT the prosecution must do their homework breach and sent a brief to the CDPP which The magistrate concluded the by making diligent inquiry and providing began proceedings against the exporter prosecution, which had to prove that sufficient admissible evidence of what is in July 2017 alleging negligent breach of the batteries were hazardous waste on hazardous waste. the permit. A finding of breach could have the criminal burden of proof of beyond resulted in hefty fines against the exporter. reasonable doubt, had provided no DISMISSED WITH COSTS The exporter pleaded not guilty and evidence the batteries were hazardous After having the prosecution dismissed strenuously refuted the allegations. It waste and hence failed to establish an the exporter applied for an order that it be is a prerequisite to obtaining an export essential element of the alleged offence. paid its professional costs for its successful permit under the Act that the goods being Therefore, the prosecution failed. In the defence. Under section 214 of the NSW exported are “hazardous waste”. This was light of his finding on the prima facie Criminal Procedures Act 1986 professional an essential element of the offences alleged case the magistrate did not need to hear costs can only be awarded against the under section 40 (2) of the Act. Apart from evidence from the exporter. The exporter prosecution in limited circumstances. denying each of the alleged offences the had pleaded not guilty to those charges. Such costs are rarely awarded to successful exporter took the position that the scrap defendants in criminal proceedings. lithium ion batteries were not hazardous IMPORTANCE OF THE JUDGMENT The magistrate held the criteria waste within the meaning of that term in The judgment contains succinct of section 214 had been made by the the Act, the Convention and the Decision. observations on the objectives of the exporter and awarded significant legal

Huguette Roe; HicksonsHuguette Roe; As a matter of law if there was no evidence Act and examination of the meaning of professional costs.

thedcn.com.au April 2020 59

DCN0420_MaritimeLaw.indd 59 27/3/20 10:33 am INTERVIEW

Working together to further the maritime industry

DCN’s Paula Wallace catches up with chief executive of The Nautical Institute, Captain John Lloyd, on his recent trip to Australia

ON A WHIRLWIND TRIP FROM THE the NI is based on proven qualifications the institute as an international centre London headquarters of The Nautical and experience and members are drawn of nautical excellence. As part of its Institute, Captain John Lloyd was visiting local from all aspects of the maritime world. international reach, the formation of NI branches of the international organisation With representation at the International branches is actively encouraged. open to all those with a professional interest Maritime Organization and the International The South East Australia Branch was in the control of seagoing ships. Association of Marine Aids to Navigation and formed in March 1998 and represented The trip wasn’t perhaps intended to be Lighthouse Authorities, the NI actively works NI members in the Australian Capital such a whirlwind one, but he landed in to represent seafarer and practical maritime Territory, New South Wales, Victoria, the middle of the coronavirus pandemic professional views at the highest level. South Australia and later, Tasmania. After hitting Australia. Due to the outbreak the The work of the NI includes influencing 21 years, in May 2019 the SA, VIC and much-anticipated International Harbour developments in e-Navigation, participating TAS members split off to form their own Masters Congress in Hobart where Capt. in IALA’s ongoing work and development Southern Australia Branch, with the SE Lloyd was due to present, was re-scheduled aids to navigation, including VTS and Australia Branch continuing to represent until October. developments in digital data exchange. NSW and the ACT. In the midst of the turmoil, DCN The NI monthly journal Seaways is well “The Australian branches are active in managed to get some time with Capt. Lloyd known throughout the maritime industry. local communities,” Capt. Lloyd says. to talk about his views on the impact of “The magazine has contributions from “They run technical meetings and COVID-19 on the maritime community members and talks about issues that affect interact with members and guests… it and a range of other issues. mariners today,” Capt. Lloyd says. delivers a forum in which people can listen He says that organisations such as The “We also publish books by members to experts speaking and dig a bit deeper in Nautical Institute play a valuable role in for members that aim to establish best understanding how different issues will developing knowledge amongst its 7000 strong practice and are peer reviewed and reflect affect their operations.” membership spread across 50 countries, as contemporary practice,” he says. well as the wider maritime community. “We’re also a non-government LOCAL KNOWLEDGE “It provides a source of reference organisation at the IMO which gives us a Capt. Lloyd has considerable insight into as a membership body for maritime forum to raise matters of concern either the Australian maritime landscape. Before professionals to get together and share on through our position as an NGO or through taking over from Philip Wakes as chief a whole range of issues… establish best our relationship with flag administrations to executive of the NI a few years’ ago, Capt. practice and improve operational efficiency talk about such things as fatigue, the impacts Lloyd worked in the National Centre but most importantly improve safety.” of automation, piracy and safety at sea.” for Ports and Shipping at the Australian The NI provides a wide range of The aim of the NI is to provide the Maritime College. He was at AMC for seven services and opportunities for members to strongest possible professional focus, years, with a two-year leave of absence enhance their knowledge and continuing dedicated to improving standards of those in to set up the Angolan Maritime Training

professional development. Membership in control of seagoing craft, while maintaining Centre in Africa. Iam_Anupong supplied Image

60 April 2020 thedcn.com.au

DCN0420_NI.indd 60 27/3/20 10:22 am “We delivered a fully operational on-site to be Australia’s own Jillian Carson- training facility and maritime college to Jackson, the current senior vice president of help develop nationally the skills of the the organisation. Angolan workforce so there was no need to “This will be our first female president send them overseas for training.” and we are delighted for the visibility she Not long after returning to Australia, will bring to the role. She’s incredibly Capt. Lloyd saw the opening to join the well-respected both nationally and NI and to “work for a leading professional internationally,” Capt. Lloyd says. body” and took the opportunity to move “We’re a global organisation and to London. nothing represents that better than having During his time here, Capt. Lloyd made a chief executive in London and a president some astute observations of the maritime in Australia.” sector in Australia. “Australia is highly regarded in the THE CURRENT DOWNTURN maritime community,” he says. With the downturn in international trade “It has a high reputation for its due to COVID-19, Capt. Lloyd remains seafarers and their qualifications and the upbeat in regard to the shipping sector. high standing of AMSA as the national “There’s no doubt that the shipping regulator… although there is a limited community remains the lifeblood of range of ships to do their training on.” international trade with many goods The key issue for Australia’s maritime moving by sea. In this downturn, sector, according to Capt. Lloyd, is perishables and other goods will be where the next generation of maritime fundamental to the needs of society. professionals are going to come from and “We salute the maritime and seagoing not just seagoing roles. colleagues who are carrying on in trying “The message for our community is how circumstances.” can we work as a professional body to attract While he admits there are “particular the right interest and talent and help them challenges” for cruise ships, Capt. Lloyd learn more about maritime careers.” says he is disappointed that in reporting He says “sea blindness” affects the there is rarely mention of the crews maritime community globally. working hard onboard these vessels. “One of the challenges we face is that “It’s not the passengers that are last often the only time that people see people to leave, but the crew and there can be a in the shipping industry is on a passenger thousand or more on a ship and they are Captain John Lloyd, CEO, The Nautical Institute ship or a cruise vessel… that’s just one part worthy of our attention. of a very busy sector. “There will be challenges in a number of Capt. Lloyd also worked for two years with “Otherwise it tends to be a a cargo ship sectors to rebuild confidence,” Capt. Lloyd the Vanuatu Maritime College. He started or tanker often associated with a collision says, after the current crisis. his career in 1975 in the United Kingdom, or fire, not associated with a good news He believes the impact of COVID-19 will and has past experience in Warsash story,” Capt. Lloyd says. be felt for some time to come. Maritime Centre. “There’s a long-established need to “When I look at the impact on shipping, Capt. Lloyd says he became aware of improve that message. Seafaring is a truly when I look around the whole of our the capacity building initiative in Angola exciting career with opportunities for community, every sector will be deeply through the NI. engaging with the latest technology and affected… as this cuts deeper and goes on “I became a member of the NI in 1988. visiting interesting places, that doesn’t exist longer, the more sustained that impact Many of our members are master mariners in many careers.” will be,” he says. and they know their audience and for The next president of the NI is destined “We must work together to resolve it.” specific projects they know the skillset they are looking for. “When I became aware of the project through the NI, it was a competitive AIMS & OBJECTIVES OF THE NAUTICAL INSTITUTE interview process and due to my previous 1 To provide the strongest possible professional focus, dedicated to improving experience in places like Vanuatu and standards of those involved in control of seagoing craft, while maintaining the Australia, I was delighted to accept the Institute as an international centre of nautical excellence. challenge of this particular initiative.” 2 To represent the professional views of the Institute’s members to and within the international, national and local bodies considering the safety and efficiency of Capt. Lloyd contributed to the shipping operations. construction and development of a maritime 3 To promote and co-ordinate in the public interest the development of nautical training facility in Sumbe, Angola in south studies in all the Institute’s branches.

Iam_Anupong supplied Image west Africa.

thedcn.com.au April 2020 61

DCN0420_NI.indd 61 27/3/20 10:22 am OUT & ABOUT

The team from Qube Logistics, Nathan Mills, Damian Wilson, Russell Webb and Newton Te Wao, after winning the SAL NSW golf day Autumn fun CORONAVIRUS LAID WASTE TO A HOST OF INDUSTRY- related social events scheduled during the past month. Nonetheless, there was still some enjoyment to be had with functions including the Victorian Transport Association State Conference, the Road Freight New South Wales International Women’s Day breakfast and the Shipping Australia (NSW branch) golf day. The VTA State Conference was held at San Remo near Phillip Island. There was plenty of serious discussion, but also a lively dinner and drinks on the first night of the event, topped off with a band and an evening presentation by Labor transport spokesman Senator Glenn Sterle. Christine O’Donnell and Hock Meanwhile, Road Freight New South Wales recognised and Soon Lee at the VTA conference celebrated the contribution women make to the transport sector at its sold out International Women’s Day breakfast. RFNSW CEO Simon O’Hara said the event had everything, including MC Kimberlie Smart who elaborated on this year’s International Women’s Day theme, “Equal4Equal”. There was also a speech by Carolyn Walsh, chair of the National Transport Commission, who shared both humorous and serious insights into her early career in the transport industry. Finally, Shipping Australia members from across New South Wales gathered at Little Bay for the 2020 Industry Golf Day. Heavy rain in the morning cleared just in time to provide perfect golfing weather. Eleven teams participated in a tightly contested event that saw the team from Qube Logistics take out the coveted Shipping Australia NSW golf trophy. Golf was also played in Victoria for the Cargo Club’s 5th Charity Golf Day, with just over $12,000 raised for Chinh Nuygen and Ian Davies at the VTA conference Cri du Chat research. Australia; Shipping David Sexton RFNSW; Cargo Club

62 April 2020 thedcn.com.au

DCN0420_OutnAbout.indd 62 27/3/20 10:17 am OUT & ABOUT

Shanti Jayamanne, Sheryn Paterson and Tony Kopestenski at the VTA conference Steve Lea and Justin O’Donnell at the VTA conference

John Cormack, Michael Hannah and Serge Boytsov John Tsoucalas, Kasie Smith and Gavin Hill at the VTA conference

Chris Perry, Leigh Benbow and Rick Halliwell at the VTA conference Golfers at the Cargo Club annual fundraiser

MC of the Road Freight NSW International Women’s Day breakfast Kimberlie Smart

Taking the time to network at the RFNSW IWD breakfast Shipping Australia; Shipping David Sexton RFNSW; Cargo Club

thedcn.com.au April 2020 63

DCN0420_OutnAbout.indd 63 27/3/20 10:17 am MISSION TO SEAFARERS

Caring for seafarers in times of crisis The onset of coronavirus poses new challenges for those caring for international seafarers, writes Reverend Un Tay from Sydney Mission to Seafarers

SINCE MY LAST ARTICLE IN MARCH, Australia is banning all non-citizens and delivered to our Mission. Each time the coronavirus has had a devastating non-residents from entering the country to seafarers arrive to collect their parcels, they impact globally. We have seen borders minimise the impact of the coronavirus”. are full of excitement and smiles. They close, international flights cancelled and The above regulations will certainly expressed their thanks and appreciation for cruise vessels stranded on the open ocean. restrict the movement of seafarers coming a simple and yet important service. We do Many ports around the world are refusing to shore. We at the Mission are taking a not charge them for this service. to berth cruise vessels. Both passengers and proactive and creative approach to continue At the same time, it is a difficult time for crew are understandably stressed, anxious to offer the best service and ministry to many of our frontline teams. Many centres and frustrated. seafarers. The team is constantly engaging have had to close (temporarily we hope) with the officers on board the cruise due to a variety of reasons: government RISING TO THE CHALLENGE vessels, offering either to ferry crew from requests, volunteers in self-isolation, During these difficult times, seafarers White Bay Cruise Terminal to our centre reduction of seafarers. There are many are undergoing tremendous challenges. and the city, as well as being willing to go problems in sustaining our services and yet Many were decommissioned and others on board to provide support, SIM cards, with your encouragement, prayers, support, have finished their contacts but are unable pastoral care, counselling and prayers. and donations, I believe together we will to get home; while others have had their sail through this most trying and difficult contracts extended but are still facing SPECIAL SERVICE crisis we have ever faced in recent times. uncertainty. Many seafarers are anxious I was on board a cruise vessel recently about their families and this is the time and sensed that many of the seafarers PRAYERS FOR SEAFARERS when it is crucial to provide them with were very stressed, anxious and frustrated I ask your prayers for seafarers, for their support. Presently many cruise vessels have due to the constraints and restriction, families, for our frontline team and our rescheduled their itinerary. They are not with no access to internet SIM cards. I Mission at every port in Australia and sailing out of Australian waters because am collaborating with shipping agents to around the world. May I request that we other nations have closed their borders. disseminate information regarding our pause for a moment to spare a thought and Secondly, if they sailed out of Australian Mission and request permission to go offer a prayer for seafarers across the world. waters, they might be unable to return as onboard ships. If you may, offer this prayer to God: our border will be closed. It is our hope that at this critical Loving God, we thank you for the abundant Our Prime Minister Scott Morrison moment, we are a beacon of hope, comfort blessings in our lives. We remember and pray recently announced that, “from 9pm on and strength to the seafarers. It is worth for all seafarers as they fulfil their duties and Friday, March 20, 2020 only Australian recalling that we offer seafarers a mail face the dangers of their calling: the officers; citizens, residents and their direct family collection service to our Mission address. men and women serving in the Navy; Coast members will be allowed into the country. This season we had more than 200 parcels Guard; police and fire rescue; the fishing fleet; the pilots; and all who carry out the services of docks and harbours. Hear us as we pray for them who endure hardship, danger and discomfort to bring us the goods we use each day. Keep them safe in the palm of your hand and bring them through sunshine and storm to their homes and loved ones. Through Jesus Christ who stilled the storm and called seafarers to follow Him. Amen. In the March issue of DCN, we invited you to our next community and information evening in April. Due to the current crisis and for the safety of all, we have decided to postpone the event until Seafarers in high spirits during their visit to the Sydney Mission

further notice. Sydney Mission to Seafarers

64 April 2020 thedcn.com.au

DCN0420_Mission.indd 64 27/3/20 10:25 am GeelongPortGeelongPort RegionalRegional gateway gateway toto Victoria Victoria

A majorA major hub for hub for EMPLOYMENTEMPLOYMENT & & ECONOMICECONOMIC ACTIVITY ACTIVITY LARGESTLARGEST REGIONALREGIONAL GeneratesGenerates more morethan than ManagesManages in excess in excess of of port inport Victoria. in Victoria. $7 $7BILLION BILLION 1,8001,800of tradeof trade Major Majorcustomers customers include include Viva Energy, Viva Energy, Midway, Midway, jobs acrossjobs across Victoria. Victoria. IncitecIncitec Pivot, BoralPivot, and Boral Terminals. and Terminals.

Port ofPort Geelong of Geelong handles handles over over 1212 MILLION MILLION TONNESTONNES of productof product annually. annually.

50%50% 25%25%

of Victoria’sof Victoria’s of Victoria’sof Victoria’s petroleumpetroleum exports.exports. distribution.distribution.

TradingTrading in crude in crudeoil, petroleum oil, petroleum Manages more than products,products, woodchip, woodchip, steel, grainsteel, grain Manages more than and projectand project cargo. cargo. 600600 VESSELS VESSELS EACH EACH YEAR YEAR linkinglinking the saltwater the saltwater highway highway to strong to strong road, road, rail andrail and air freight air freight links across links across the state. the state.

GeelongPortGeelongPort is a key is a gateway key gateway to the to regions the regions in south-east in south-east Australia.Australia. By 2035, By 2035, GeelongPort GeelongPort is expected is expected to handle to handle over over 18 million tonnes per annum. 18 million tonnes per annum. Working with you to move your bulk or project cargo. Working with you to move your bulk or project cargo. geelongport.com.au [email protected] geelongport.com.au [email protected]

DCN0220_Allads.indd1218_AllAds.indd 68 51 31-Jan-2028-Nov-18 2:24:34 3:48:43 PM PM The grill

Alison Cusack talks gender equality, the law, kicking goals and hobby farming

What is your job and what does it or which retailer is about to fold. It is tackles change. Ask yourself and your entail? also amazing to see on a global scale the managers the hard questions: Who isn’t at I am the principal lawyer at Cusack & Co, a impact different cultural values have on the networking function and should be? maritime law services firm. Essentially this how business is run. The political dance Who isn’t in the meeting and should be? means I am the business owner, the lawyer, that occurs between two different parties Who isn’t on the list for promotion and the finance director, head of marketing, to achieve the outcomes is different each should be? Are we excluding certain people and the office admin all rolled into one. I time and fascinating to see. from visibility by not praising their efforts, advise shippers, freight forwarders and cargo recognising their contribution? Ask the interests on how to mitigate their risk when Where did you grow up? What are some female staff in your business one barrier it comes to international containerised early memories? you could remove to make change. shipping. I am encouraging my clients to I grew up right here in Melbourne. I come take a proactive approach to managing their from a large family so we were always at my What do you enjoy doing outside of risk, instead of being caught short when it grandmother’s house celebrating someone’s work? comes to issues such as COVID-19. I love birthday. Early memories are playing with I love seeing my friends. Whether it is our helping my clients get the result they want my older siblings and usually accidentally monthly breakfast catch-ups or trips away and educate them on how they can protect getting them into trouble (like the time I down the coast, we have the best fun and I their business and themselves. jumped off the garage roof). play a mean game of 500.

How did you get into the world of Why are you so passionate about What makes Melbourne a great place maritime law? women in the maritime sector? to live and work? Like most in the industry, I fell into I was raised on the belief that gender For me it’s where most of my family live maritime law. I did a maritime law moot equality was going to be real by the time which will always make it special. I also (fake court) competition in law school I got to corporate life. Sadly, it isn’t, and love our multicultural food scene that and went to Brisbane to compete. It was I’m determined to do my part in helping means I can eat basically whatever cuisine through this that I even discovered such a our sector and community reach that goal. takes my fancy at any given moment. My concept as maritime law. Having something I’m passionate about this because I believe ‘go to’ place has to be Laksa King or I Love tangible to have a dispute over was such a that whether anybody, male or female, Dumplings (both in Kensington). Always refreshing change from IP, and concepts wants to stay at home with their kids, delicious and something I don’t have the like piercing the corporate veil. Once I have a comfortable 9-5 job or reach to be time to cook myself. did the moot I was hooked on maritime the top of their respective industry, they law and did everything I could think of to alone should get to make that decision. Are there any Australians who you progress my chances of practising it once I It shouldn’t be made for them by “society particularly admire? graduated law school. norms” or senior managers making My mum and dad. They have always assumptions for them on what they can encouraged me to go after whatever I What makes maritime law and trade or can’t achieve by virtue of race, gender, wanted to pursue in life and barriers be interesting? sexual identity, disability etc. damned. The people! The culture! Being in maritime and trade gets you the backstage How can we advance change in this Where would you like to be in 20 years? pass to the world’s engine room. You area? Assuming we survive coronavirus you know why those Christmas turkeys aren’t At last year’s IMO dinner (hosted by mean? Cultivating my own hobby farm getting here in time for Christmas, or AMSA) I advocated for ‘imperfect progress’ and mini toilet paper producing factory to

how the global economy is travelling on this issue, much like how the IMO corner the market. supplied Image

66 April 2020 thedcn.com.au

DCN0420_Grill.indd 66 27/3/20 10:36 am Complete supply chain specialists

Conveniently located at South Australia’s gateway to the world.

Contact us to discuss your tailored supply chain needs. Supply Chain Solutions Warehousing Distribution Customs Quarantine Transport www.flindersfwd.com.au | +61 8 8447 0611 | [email protected]

DCN0220_Allads.indd 57 18-Dec-19 5:01:46 PM Our value isn’t added. It’s already there.

At Hamburg Süd, the extra special service you get is a given. It’s in our culture. You don’t have to ask for personalised attention or local know-how. Our on-the-spot service is part of the service and it’s all about ease of business. You make one call.

So too with our fail-safe cargo care systems – they’re built in. It’s the same with our service reliability and supply chain connectivity. What you get is seamless, effortless throughput, from first mile to last. Hamburg Süd – better service, and better value.

No matter what.

www.hamburgsud-line.com

DCN0719_Allads.indd 7 27-Jun-19 2:17:07 PM