AGRI PRODUCTS ON THE RISE

PORT COSTS UPDATE <>Digitalisation of shipping PROFILE ANIL BHATIA, AUSPORT MARINE SEAFARER WELFARE

WALLENIUS WILHELMSEN 125 YEARS SPRING/SUMMER 2020

CONTENTS SPRING/SUMMER 2020

25 34 59

FROM THE BRIDGE TRADE ASSOCIATIONS From COVID success to waterfront turmoil - A single voice for customs brokers and forwarders a reminder of Australia’s secret war 2 in Australia 38

VIEWPOINT Supporting the development of international trade – the ITDFund 40 Cash grab: Unfair double-dipping port charges are unprecedented 6 ANTARCTIC INNOVATION Global pandemic leads to innovative solutions for PROFILE Australia’s new icebreaker 42 ANIL BHATIA, managing director, Ausport Marine 8 RISK MANAGEMENT WOMEN IN SHIPPING Mitigating risks of uncollected 44 DANELLA WILMSHURST – navigating around the maritime legal world 12 CYBER-SECURITY Preventing the ghost in the machine 46 FEATURE: AGRI-PRODUCTS Australia - ripe for regionalisation 14 DIGITALISATION OF SHIPPING Digital interoperability key to future-proof efficiency in Demand proves strong for Australian citrus as industry container shipping 48 meets challenge of COVID-19 16 Emergence from adversity 19 PORT COSTS Resilience and reinvention Australian Grains Industry 2020 Port pricing variances 50 Conference – forecasting opportunity from diversity 21 MARITIME SAFETY Fletchers - meat and farm products from Australia to the world 23 A time of reminders 52 Oil and water do mix! 25 Insurers pinpoint the complex causation of container casualties 55 EXPORTS Trade at the cross-roads 28 LEGAL Bunker supply contracts – key considerations for the buyer 56 COMMUNICATIONS Defects in vessel’s passage planning and working chart – A step-by-step guide to reputation management after The CMA CGM LIBRA litigation - Part 1 58 a disaster at sea 30

SEAFARER WELFARE BOOK REVIEW Captain James Cook and Governor Phillip: Against the odds - maritime industries work to protect Reading between the lines 59 seafarers’ health 32

MEMBER SPOTLIGHT Celebrating 125 years of partnership: WALLENIUS WILHELMSEN in Australia 34

AUSTRALIA

THE OFFICIAL JOURNAL OF SHIPPING AUSTRALIA LTD Level 6, 80 William Street, Publications Commitee Ross McAlpine Woolloomooloo NSW 2011 Frank Needs FRONT COVER PO Box Q388 NSW 1230 Executive Editor Rod Nairn AGRI P: 02 9167 5838 Executive Assistant Sharyn Flood PRODUCTS Silos at Port Pirie ON THE RISE W: www.shippingaustralia.com.au Graphic Designer Paul Ortiz-Gomez Image: Grain Trade Australia PORT COSTS UPDATE Advertising Co-ordinator Steve Moxey <>Digitalisation P: +61 400 473 200 of shipping E: [email protected] PROFILE ANIL BHATIA, AUSPORT MARINE SEAFARER WELFARE Shipping Australia LimitedShipping AustraliaI Spring/Summer Magazine is published 2020 for Shipping Australia Ltd by Ontime Pubications. WALLENIUS WILHELMSEN 125 YEARS SPRING/SUMMER 2020 1 FROM THE BRIDGE

Fromthe

MSC Elma making a perfect picture in Port Botany bridge Image: MSC

From COVID success to waterfront turmoil - a reminder of Australia’s secret war1 By ROD NAIRN AM, CEO, Shipping Australia Limited

One of the notable successes More Australian services are regularly policies in most States, ships’ crews of the Covid-19 crisis has seeing big container ships running have been denied shore leave, forced through Australian ports, and the ships to remain onboard well past their been the resilience shown by continue to get bigger. This is due to employment contracts and in many Australia’s freight and more and more megamax ships phasing cases refused access to medical and network. Throughout the crisis, into the world’s first-tier east-west loops, dental services. But it seems that some causing additional cascading of 9,000+ State Premier’s don’t care as long as despite international and State TEU tonnage into the Australia and New they get their cargo! See our detailed border closures and restrictions Zealand services. This will be ongoing, commentary on seafarers’ welfare on on international flight arrivals, and ports across the country have page 32. Australian international shipping prepared with upgrades to cranes and Now a bit further down the track, equipment. After a big drop in container and the entire freight logistics Australia is in the grip of its worst volumes through April and May, trade economic crisis for generations. The chain have fared reasonably well. volumes have exceeded all expectations Government is handing out generous We have been getting our imports since June, though falls in terminal job-keeper and job-seeker payments to in and our exports out, thanks to efficiency at the major capital cities has prevent an unemployment avalanche, had a negative impact. but the maritime union has chosen a nationally coordinated effort to to paralyse our waterfront container Unfortunately, the successful prioritise freight and recognise terminals with selfish industrial action. continuation of efficient sea freight that to keep the country has come at the expense of seafarer Just like in WWII, the maritime union functioning all freight is essential. welfare. Because of restrictive health has shown that they are willing and able

1 Australia’s secret war: how trade unions sabotaged Australian military forces in WWII by Hal Colebatch, Quadrant Books 2013

2 Shipping Australia Limited I Spring/Summer 2020 to do what the enemy/pandemic could ships being delayed by as much as I reserve my strongest condemnation for not. That is to cripple the waterfront and 18 days and then being limited in the the MUA’s ruthless intimidation tactics strangle the flow of goods upon which all number of container moves they can and their mindless followers who seem Australians rely. At a time when global make. The result has been a log jam to be frightened of the consequence of and national economies are reeling, at a of empty containers, exports being honest workers doing a proper job for an time when Australians are being forced delayed, and imports being delayed honest wage, and will go to any lengths out of work, at a time when many people or unloaded at other ports, with even to stop them. are struggling to find the money to keep greater delays. Shipping lines have Meanwhile, international trade relations a roof over their head and food on their taken action to reduce their loses by have also taken a hit – they say that plate, their actions are out of step with by-passing Port Botany, introducing bad things always happen in threes but the reality of today. congestion surcharges, cancelling ship this time it might be fours. After China’s calls and even ceasing to take orders It is no accident that the enterprise tariff increase on barley and restrictions for imports bound for Australia. Clearly agreements at all the major container on some Australian meat producers, we this is a crisis for Australia’s economy stevedores have expired at the same are seeing delays of up to three months which relies 99 per cent on sea freight. It time, I suggest that this has been the unloading Australian coal at northern really is time to recognise the essential orchestrated plan of the union bosses China coal ports and now the Chinese nature of container trade and regulate to for years. Negotiations have been attention has turned to wine. classify it as an essential service. Again, ongoing at DP World for around two years and twice, when on the cusp of there has been a last-minute rush for a Australia’s wine sector is in the early signing an agreement, the union has temporary peace deal, but the outcome stages of its response to China’s reneged. At SICTL the maritime union remains uncertain as we go to print. investigations into anti-dumping and countervailing duties (subsidies). The keeps pressing for greater benefits, With all the public focus on the container anti-dumping investigation was launched while the Hutchison overseas parent terminals, there is another disgraceful on 18 August and the countervailing is still generously footing the bill for action by MUA henchmen that has duties investigation on 31 August. the local loss-making business. The gone virtually unnoticed. Union bullies Australia’s national association of grape workers should be thankful that the and thugs have been serially intimidating growers and winemakers, Australian company continues to operate and do the non-unionised workers of mooring Grape & Wine, is coordinating responses what they can to keep it going, not keep services company Port and Harbour to these investigations and will assist on trying to strangle the golden goose. Services, who are trying to earn a living those companies that are participating, Most recently in June, the EA at Patrick and provide a competitive service in Port as well as providing their own expired and this allowed the CFMMEU Botany. Since the company commenced submissions. to up the pressure and take protected operations on 21 September, union industrial action at all three terminals in members have employed blatant Australian Grape & Wine has advised that, Sydney and , at the same time standover tactics of verbal abuse, “one of the misconceptions is that these – effective but unconscionable if you physical intimidation and online investigations are solely targeted at the take the parlous state of vilification, which are clearly illegal and ten companies named in the complaint. economy into account – IF. so threatening that they have drawn the This is incorrect - the complaint is made Shipping Australia provided formal New South Wales Police in to protect the across the entire Australian wine sector, support to DP World’s application to P&HS workers. As a result, the company including all producers and exporters. the Fair Work Commission to have the has had to suspend operations due to The complaint was made by the Chinese union industrial action at their Botany site fears over the safety of their workers. Alcoholic Drinks Association (CADA) who terminated on the grounds of damage to Australia’s economy. However, at the eleventh hour the union offered to withdraw all action at the terminal and provide an undertaking of no further action before November. As a result, the hearing did not proceed. Since then there has been progress with negotiations and some optimism that an agreement will soon be signed. Fast forward two weeks and Shipping Australia has now provided support to Patrick in their application for suspension or termination of industrial action at their terminals nationally, again on the grounds of damage to the Australian economy. This damage is Australia’s wine producers under review Image: Safe Quadrant very real, union bans effectively reducing productivity by 30 or 40 per cent, and

Shipping Australia Limited I Spring/Summer 2020 3 charts and electronic navigational charts that enable all ships to navigate safely and with confidence in Australian waters. You will recall we provided a story of their past 100 years in our last magazine. I must admit I have a close personal connection with the AHS, as the longest serving Hydrographer of Australia during that 100 years, and if you are interested in their maritime history, I draw your attention to two hydrography podcasts recently published by the Australian Naval History section available at https://soundcloud. Agri-exports are important to Australia’s economy Image: Safe Quadrant com/australian-naval-history. One other anniversary this year is the sestercentenary of the arrival of seek a 200 per cent tariff + import duties. are still studies to be concluded but Captain James Cook in his bark HMS The details of these investigations, Government has indicated that the Endeavour. Cook’s discovery and including FAQs and key messages are transition will occur either in one step by charting of the east coast of Australia available on Australian Grape & Wine’s 2032, or over a phased period that will has been the source of some controversy website www.agw.org.au “. see both ports share the freight task for over the years, from the whereabouts of around a further 15 years. Our feature on agricultural exports Point Hicks, and his apparent missing commences on page 14, and despite All users of ’s three container of Bass Strait, to his interactions with new tariff barriers, our agri-products terminals are now paying for on-dock the indigenous inhabitants. Our book are looking strong. Delays at the rail upgrades for Swanston terminals review on page 59, courtesy of Stuart waterfront are the major concern, in Melbourne with the $9.75 per TEU Hetherington, brings together two particularly as we expect a strong charge coming into force on 1 June. chapters in Australia’s maritime history grain harvest ahead. This will lead to a I am sure port users are all looking linking an intriguing explanation of serious bottleneck in this export sector, forward to the benefits that the project Cook’s voyage and the exploits of New as current backlogs are unlikely to be will bring to getting freight onto rail South Wales first Governor, Arthur Phillip. cleared before Christmas. more efficiently at Patrick and DP World It is definitely worth a read. terminals. But there is no plan yet to With all the focus on pandemics and Finally, I would like to acknowledge the extend that rail to VICT at Webb Dock in industrial action, it would be easy contribution of Ken Fitzpatrick (Asiaworld the foreseeable future. to overlook the fact that there is still Shipping) to Shipping Australia over the plenty going on across Australia in the One investment that would improve past 14 years, until his recent retirement and infrastructure spectrum. the VICT capacity is the removal of the in June. Ken was appointed to the Board The Department of Infrastructure and ‘knuckle’ at the northern end of their in 2006 and served as chairman between Transport has released another coastal quay. This hangover from a by-gone 2011 and 2016. Ken provided strong shipping discussion paper with the RoRo facility restricts VICT to only be leadership for the company and support to aim of reducing the red tape associated able to berth one large vessel at a time, me personally, during his time as chairman. with the licencing regime. It includes thus limiting their capacity to 800,000 He continued to actively represent SAL Shipping Australia’s recommendation TEU per year. Shipping Australia as a director until his retirement. Captain to allow general licence holders to considers the removal of the knuckle a Sunil Dhowan (Wallenius Wilhelmsen nominate which shipping routes they potential win-win-win for the terminal, Ocean) has been appointed to the board wish to operate on, and what the port and for shipping lines. It will to fill the casual vacancy. and volumes they could carry. This allow VICT to handle two 15,000 TEU protects Australian vessels who intend vessels simultaneously, unlocking to operate but allows temporary licence an additional 700,000 TEU capacity, holders to operate where there are no bringing the total to 1,500,000 TEU per general licence holders. It also removed annum. The additional capacity will also the requirement for a five-voyage assist Port of Melbourne to maintain Correction Autumn/Winter minimum for temporary licences. Legal its position with the largest container 2020, page 37 and operational implications of these volume throughput in Australia. proposals are still to be considered. The We are advised that the In this edition we have introduced a recent closure of State borders has given investigation into the Maersk “Member Spotlight” and we turn the a boost to the importance of coastal Honam fire has not been spot onto our longstanding member, shipping, particularly for domestic concluded and that our Wallenius Wilhelmsen’s as they container cargo movements. caption should be classified as celebrate 125 years of association specualtion. The Western Australian Government has with Australia. Read about this also endorsed the independent Westport interesting chapter in of the company’s Shipping Australia apologises Taskforce’s recommended location and Australian history of the company on for this inaccuracy and amends design for a future container port at page 34. the caption to read “Confusing Kwinana. The new port is intended dangerous goods codes may The Australian Hydrographic Service also to meet Western Australia’s long-term have contributed to the fire celebrated its 100th birthday on 1 October. freight needs and remove container onboard Maersk Honam”. The AHS is responsible for surveying trucks from ’s suburbs. There Australia’s oceans and producing nautical

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Shipping Australia Limited Spring/Summer 2020 I www.hamburgsud-line.com 5 VIEWPOINT

Cash grab: Unfair New South Wales double-dipping port charges are unprecedented

By MELWYN NORONHA

been forced to leave port may temporarily go to an anchorage, or where anchorages are unavailable, they drift off the coast before re-entering the port. Temporarily leaving and re-entering a port happens at Ports Jackson, Botany and Kembla, as suitable anchorages are not available within their boundaries. Port Kembla formerly had anchorages within the port boundary but regulatory amendments in 2008 put those anchorages outside the port. So temporarily leaving and re-entering a port is a fairly typical operational procedure at ports worldwide.

Unfairly charged twice (or more) Port Kembla breakwater - ships must now leave the port limits to proceed to anchor But in New South Wales, when a ship returns to a port after being forced to temporarily depart, the shipping Most businesses provide incentives for NSW Ports, a private port operator for company is then unfairly slugged with a returning customers. But not in New Port Kembla, is also classified as a demand from the port authority to re-pay South Wales. Here, the relevant port “relevant port authority” in relation to this the Navigation Service Charge! authorities apparently much prefer to statutory charge; it is allowed to fix and Shipping companies are forced to pay collect the charge. penalise their customers by double- again even if the vessel is still on the charging them. same voyage and even if the ship does A Navigation Service Charge is a statutory Forced to depart berths not travel to any other port. Ships around the world are sometimes, for charge levied by port authorities on ships Requiring shipping companies to pay the reasons beyond their control, required by that enter a port. It is a reasonable way to port Navigation Service Charge twice (or port authorities to temporarily depart port. charge for access to a port. But it is not more) for what is effectively one port call They may be required to go elsewhere to reasonable for shipping companies to be is unconscionable, especially as vessels load cargo, or in the case of the tanker forced to pay it twice. incur additional pilotage and towage trades, to load and/or discharge different charges when their ships are forced to In this situation, the “relevant port parcels of cargo. Ships in the bulk fuel move by the port authority. authorities” doing the double-charging trade may also be required to depart and are the Port Authority of New South return to the port with the high tide or And at a cost of up to $60,000 a time, it’s Wales and also NSW Ports. because of congestion. Ships that have a pretty costly practice.

Disclaimer: Readers are advised that Shipping Australia Limited and the Publisher cannot be held responsible for the accuracy of statements made in advertising and editorial, nor the quality of the goods or services advertised. Opinions expressed throughout the publication are the contributors own and do not necessarily reflect the views or policy of Shipping Australia Limited or the Publisher. While every reasonable effort has been taken to ensure the accuracy of the information contained in this publication, the publisher takes no responsibility for those relying on the information. The Authors, Publisher and Shipping Australia Limited disclaim all responsibility for any loss or damage suffered by readers or third parties in connection with the information contained in this publication. Nothing in this publication should be construed as personal or professional advice and should be read as general information only. Warranty and Indemnity: ADVERTISERS and/or advertising agencies upon and by lodging material with the Publisher Ontime Publications for publication or authorising or approving of the publication of any material indemnify Shipping Australia, the Publisher, its servants and agents, against all liability claims or proceedings whatsoever arising from the publication and without limiting the generality of the foregoing to indemnify each of them in relation to defamation, slander of title, breach of copyright, infringement of trademarks or names of publication titles, unfair competition or trade practices, royalties or violation of rights or privacy regulations and that its publication will not give rise to any rights against or liabilities in the Publisher, its servants or agents and in particular, that nothing therein is capable of being misleading or deceptive or otherwise in breach of Part V of the Competition and Consumer Act, 2010 (Cth).

6 Shipping Australia Limited I Spring/Summer 2020 An unfair double-charge In 2002, to formalise this longstanding The single-charge practice continued The inherent unfairness of this double- practice, the Ports Corporatisation & after the 2013 privatisation of Port charging practice can be revealed by a Waterways Management Regulation Botany and Port Kembla. Shipping simple example. Consider the luncheons 1997(NSW) (now the Ports and Maritime companies and agents received a hosted throughout the year by Shipping Administration Regulation 2012) was commitment from NSW Ports that Australia. We charge a single ticket price amended to exempt movements the Navigation Service Charge would for drinks, networking, lunch, speakers, between Port Jackson and Port continue to only be applied once. and entertainment. We don’t re-charge Botany from payment of any additional the ticket price every time a person nips Navigation Services Charge. The intent Cash-grab was to treat the two Sydney ports as one out of, and then returns to, the luncheon Clearly, this new, unfair, and hall to make a phone call. port for the purposes of the Navigation Services Charge. It acknowledged opportunistic cash-grab departs from Double-charging also unfairly penalises that the separation of Sydney’s berths long-established precedent and ignores the shipping company for the port’s and services should not substantially the fact that ships are forced to move limitations in not being able to provide a disadvantage ships which call at both by the port authorities because of the standby berth, anchorage, or other such Port Jackson and Port Botany. limitations at their ports. necessary facilities. At the time, the regulation did not Shipping Australia has appealed to the specifically provide an exemption for various relevant authorities, including Background: history ships departing and re-entering the same the portfolio Minister, and is seeking an Ports were formerly Government entities port on the same voyage. As shipping amendment to the existing legislation that operated under the old Maritime traffic increased and new berth facilities so that the longstanding, sensible and Services Board. They were transformed were built, the Port Authority (and its fair practice – of charging just once – into corporate entities in 1995. predecessors) routinely exempted becomes law. vessels that were required to temporarily Before, and even after corporatisation, depart and re-enter the port from being only one payment of the Navigation double-charged. Services Charge was ever required to be paid for a ship’s entry into the port.

Shipping Australia Limited I Spring/Summer 2020 7 PROFILE

Anil Bhatia, managing director, Ausport Marine By JIM WILSON

Originally hailing from the Indian town Humbling responsibility a voyage and an oil cargo on another. The of Pune, about 100 kilometres from the Onboard ship, he most enjoyed being idea of course, was to maximise profit through reducing sailing in ballast, and ocean, it was not exactly pre-ordained a watch-keeping officer. He was through being optimally-traded. that Anil would have a maritime career. fascinated by being able to control the ship, by steering it and by carrying out Unfortunately, they were just too difficult More than a bucketful anti-collision manoeuvres. In those days, to operate, especially with the increased “I’d never seen more than a bucketful of sailors did not have GPS and so they awareness of the importance of water!” he laughs. However, Anil went to would have to navigate through position- preserving the environment. fixing and astronomical sighting. sea at the remarkably young age of 16. “Cleaning out the tanks was a big “It was something my friend did. [An challenge. It was a big ask to clean, to put all the wash water in the sump tanks, apprenticeship] was not easy to get, but I and then later discharge it over the side. went after it and I got it. It was tough. 16 You had to make sure those tanks were is a young age. I was a bit too wet behind completely free of oil. Believe you me, the ears and I had to grow up quickly”. we had to take dinghies into the tanks It was a very different time. Unacceptable and every day you would find blobs and behaviour today was merely just how clumps of oil. It was all too much risk… things were done back then. you’ve got the US Coast Guard and their helicopters hanging over you, waiting for “I got bullied at sea. Cadets were bullied you to lose a thimbleful of oil. Then the by seniors,” Anil recalls sadly. US Department of Agriculture is waiting It’s a hard physical job too, and there was for you to issue a notice of readiness to one big problem for the growing Anil. load grain. It was all in 48 hours, it was a big ask. It was tough. And it was not “As a young man, working long hours long after the Exxon Valdez, so if there and hard work, you were constantly was any oil spill they would lock you up hungry. But there were only three and throw away the key,” he says. designated meals. It’s not enough There are hardly any OBO carriers on the when you’re doing hard physical labour high seas anymore. – painting decks, going up and down ladders. You went out there and you “When I went to sea, the world was worked your backside off. And of experimenting with them and, when I left, course, there was no Uber Eats! You “It was a sense of achievement and the world decided to stop building the couldn’t even go and open the family responsibility when I was pretty young. things,” he chuckles. fridge!”, he exclaims with mock outrage. It was interesting and quite humbling, especially when you see the scale of the Brutal and relentless Nonetheless, Anil seems to have been vessel, when you have responsibility for able to put up with the bullying, arduous lives and the value of the cargo,” he says. Life at sea has its perils, and especially labour, and hunger. He also undertook a in the northern part of the northern truly mammoth-sized swing of duty. He When he became second-in-command, hemisphere. As any mariner will tell you, needed 36 months of sea time to qualify he found he enjoyed carrying out up there the sea is cold, the wind is fierce for the second mate’s exam and he got activities such as passage planning and and the waves are huge. cargo intake. it done in one go. For various reasons, Anil recalls a consecutive voyage charter he ended up on the far side of the world from Sullom Voe, an oil terminal on the from India, in Brazil, sailed to Japan Industrial experimentation and a remote Shetland Islands, on the border on an iron ore haul, and ended up in big risk of the North Sea and the Norwegian Sea, Singapore doing a dry dock. Industrially, it was an innovative and to Quebec in Canada. “I left as a boy and came back as man. experimental time, and the shipping “There were three or four depressions I had grown up, grown out and had industry was experimenting with Ore-Bulk- around us, no escape route. You came grown a beard. When I got back to Oil ships. They were incredibly complex out of one storm and straight into my community, no-one recognised me and sophisticated multipurpose vessels another. It was absolutely roaring, man. except for my dog!” he laughs. that could carry a dry cargo on one leg of There were 12 to 15 metre swells. There

8 Shipping Australia Limited I Spring/Summer 2020 Anil as a young man at sea

was a crack on the fore peak tank, and of those hard-learned lessons was to well, we’ll let Anil explain the scientific in those days it was single skins and trust in the value of experience, and to consequences… this crack was about a foot above the perhaps not completely trust what is “Liquids do not flow upwards against water level. The ship was pitching and written in academic textbooks. gravity,” he reflects. heaving. The crack started growing. Anil was trying to load a ship to take the The only way to arrest the crack was to “I had to go to the captain and explain maximum cargo. So far, so good. He drill a hole on each side of it and then followed the instructions in the book and that we were two centimetres down at patch it up. As the vessel was pitching applied the tables, following the notes that the head. I was terrified he was going to and heaving under and above the water, ships can be loaded by a certain amount fire me. But he didn’t. The book said to you only had a limited time to drill. We got at the head, and then by a certain amount do it. So I did it. Apparently, everyone the crack arrested, changed speed, and in the next hold, and the next and then it all else had the universal knowledge not to eventually got it welded up. We limped evens out. In theory anyway. do it. They were all like, ‘didn’t you know into the St Lawrence River,” he says. that? You idiot!’,” he chuckles. “I found out it does not happen that Anil’s vessel was one of two identical way,” Anil chuckles. “You have to go by Fortunately, there was a workaround and sister ships making the same run at the stern first”. Anil had a new lesson to remember. One the same time. The sister ship, which he has evidently not forgotten after all got into port about eight hours ahead these years. of Anil’s ship, appeared to have had A lesson in advanced gravitational an even worse time of it. “Their ship physics High point achieved and a change had cracks on the deck plates and The reason is simple. Pipelines in ships there was crude oil all over their deck. tend to start near the prow and run of focus The crew couldn’t even stand on the towards the stern, where the engine is Over time Anil progressed in his chosen deck. The power of ocean. Brutal and located. Anyone with a rudimentary career until he reached a high point – it relentlessness. I developed a respect for experience of gravity will intuitively was when he received his first command. it,” Anil says. understand that fluids will tend to flow “Every young cadet dreams from the first downhill. So, if the vessel is loaded of having his first command. It gives you By the book… correctly – starting with the stern – then a sense of achievement of having been the ‘downhill’ orientation in the ship will successful in reaching the peak of your Being at sea was a big learning quite happily deliver fluids to the engine. chosen career,” he says. experience. In hindsight, Anil recalls that there were many decisions and actions But do it by the book with a resulting Jumping forward a bit in space, time and that could have been done better. One decline that runs from stern to prow and, personal circumstances, and Anil had

Shipping Australia Limited I Spring/Summer 2020 9 been a ship master for a while. He’d for someone. I was in my mid-40s, and “The minute we decided to start in been taking his daughter sailing with him, I’d always wanted to do it. And I thought, Sydney, the biggest and most valued but she was getting of an age where she if I don’t do it know, I’m never going to do clients all started and came out and needed to be with her peer group and in a it. My wife supported me in that decision. supported us, as soon as they were regular school. It was time to go ashore. So, I took the plunge!” he says. free to do so. It was a very humbling A new learning experience followed, as It was a bold move but it worked out. experience. Questions were being he became a supervisor in a container He started small and his efforts were asked of us: can you go to this port, or terminal and he learned a lot about the rewarded by industry. Eventually he was that port? It showed there is trust in container business, and about business invited to set up a tug company. In 2001 us, which we are grateful for, which we generally. That was followed by a spell he started a business called Australian appreciate and which we want to ensure at a ship management company where Maritime Services, although he later exited is maintained”. he learned how to tout for business, after a few years. Anil has, over time, been Reflecting on his time building a how to analyse and assess, how to do involved in several businesses. business in Australia, Anil is thankful marketing. to the industry which he has served. It was quite a daunting task, there was a And the rest, as they say, is “Thank you for being such a dignified, learning curve. But it got easier. I loved history… gentlemanly crowd. The industry is full it! It was my world,” I was continuing in He also started a mooring business in of wonderful people, and it is a pleasure the same industry, operating ships from 2001, called Ausport Marine, which went to work within it,” he says. ashore, he says. hand-in-hand with towage. The business has flourished and has expanded around Ausport Marine provides a wide range of services including surveys, management, Going into business Australia. Anil says that the biggest success is winning the trust that the superintendency, insurance claims and Over time he naturally leaned toward clients have put in the company, and in handling, chartering consultancy, and being in business for himself. In his mid- developing a team and the corporate offshore vessel operations. Shipping 40s he took the leap into business. ability to deliver. Anil gives a good Australia was pleased to welcome “I felt a bit concerned, anxious. I’d never example of how the industry has come to Anil’s company, Ausport Marine, as an done it before in my life. I’d always worked trust his company. associate member earlier this year.

Ore-Bulk-Oil carrier berthed in Quebec

10 Shipping Australia Limited I Spring/Summer 2020 SECTION HERE

Shipping Australia Limited I Spring/Summer 2020 11 WOMEN IN SHIPPING

Danella Wilmshurst – navigating around the maritime legal world By JIM WILSON

Maritime lawyer, Danella Wilmshurst, is Early days mid-1991 – and Danella recalls collecting well-known in the Australian maritime Danella’s original path was neither law “reams and reams” of paper. and maritime-legal community. She is nor maritime. She started an Arts degree Norton Smith was a great place to work. internationally recognised in a wide range but it didn’t hold her interest. A friend of areas including vessel finance and All the partners of the firm socialised suggested that law might be the topic mortgage. Having acted for a wide range together and they ate and drank in the and career of choice for her. So Danella of clients in protection and indemnity canteen along with everyone else. The enrolled in an undergraduate Diploma of insurance, hull and machinery insurance partners subsidised a massive buffet lunch Law at Sydney University. and having handled international trade, for everyone. “The managing partner charterparty and commodities disputes, Study of the law did not initially grab her would sit down and eat lunch with the mail there are few areas of maritime law that interest either – until the course began clerk,” Danella says. Danella hasn’t seen, acted in, and given covering international law. Trainees and lawyers could go and sit her expert advice upon. “I was very interested in it. You had this and talk to the partners and find out But it wasn’t always thus. fairly complex set of intellectual rules to about the law, the practice of the law and find a practical solution to a complex how it had changed. In the very earliest part of her career in a job interview, the interviewing lawyer situation. Quite a number of cases were “It was a very healthy firm at the time. asked Danella what she knew about about shipping but I didn’t realise there When you come across anyone who was shipping law. was an opportunity to practise in that there, there is a great nostalgia,” Danella area,” she explains. says. “And to my eternal shame, I said, ‘Isn’t that about boats and stuff?’,” she laughs, Danella was fortunate enough to land a job rolls her eyes to the ceiling and shakes with Norton Smith & Co, which at the time Caught in the spotlight: one baby her head. had one of the largest shipping practices. lawyer But the fact that she had been working Her journey towards becoming an expert One of Danella’s first cases involved for a large insurer while she studied, maritime lawyer had begun. nothing less than the collapse of the and had done liability claims, was to her Soviet Union. When a geo-political credit in her interviewer’s eye. Loving the legal life superpower comes to an end it sets a multitude of ripples in motion. “I think the company was hoping that I Danella loved the life at Norton Smith might stay on and do trade practices law and Co. It was the mid to late-90s, and One such set of ripples involved the in an in-house capability. I worked with a she remembers coming into work at collapse of, and subsequent litigation lawyer who had a suburban practice. He about seven each morning to collect the over, a Soviet maritime company called was a thespian and I remember going to telexes. Fun fact – the web-part of the Baltic Shipping. It was one of the see his plays,” she recalls. internet only became publicly available in biggest cases of embezzlement on the

12 Shipping Australia Limited I Spring/Summer 2020 planet, and ships were arrested all over “From where I sat, I was with the best change in the complexity of work you the world. firm in the world. Why would you mess do… but when you become a partner with that?” she says. that changes because you need to “It was such a spectacular collapse have some understanding of running a and there were multiple claims that The big issue was that, back then, a huge business. And then you have the issue outweighed the value of ships. We amount of work was referred into Australia of how to manage staff. It’s a really big asked for sworn affidavits that they by the Protection & Indemnity Club and transition!” she explains. hadn’t made claims in other jurisdictions. their lawyers. The lawyers in the merged These things are just global. It was a entity were now linked to an overseas mad case. Every lawyer in Sydney was firm and, naturally enough, international Abandoned ship, the Great Barrier sitting around the table,” Danella recalls. lawyers would not send work to the Reef… and the onset of cyclone Australian affiliate of a global competitor. Two vessels were arrested in Australia season and were then sold. Danella particularly remembers a case New plan: Norton White that came through from a Singapore Claims were made, the case was heard A blueprint for new, fully-specialist law firm. A ship had been anchored and but judgment was reserved. That abandoned off the Great Barrier Reef. It happens when a judge wants to take transport law firm, Norton White, was created. It would link to high profile had fuel onboard and it was the beginning a bit of time before giving judgment of the cyclone season. to reflect upon the evidence, to study specialists in Australia and New Zealand. complex precedents and to particularly The firm was attractive to the P&I Club, There was a lot at stake, huge consider and review the judgment. As and Danella recalls it was a “really busy responsibilities – Danella’s firm was it happens, the judge in the case was practice”. As a completely new start-up, basically acting as a ship manager – immediately pre-retirement and he was it had some quirky ways. and there were huge risks. Without writing his final judgment. “We had no office fit-out. It was just insurance, the ship could not be moved. one floor. One of the senior partners She was also personally liable for the Danella and her firm had been given costs of the arrest. instructions to enter the case at the last would sometimes practice yoga in the minute, with a view to re-open the case. office! It had no phone or fax lines, they “We were all sitting there just watching Unfortunately, counsel (an outside expert were going to some pub in the Rocks. It the cyclones forming offshore. The lawyer hired by the law firm) had, for was one of the most profitable months Admiralty Marshal told me he barely had some reason, been delayed and hadn’t we had! We had different people – a any sleep,” she says. made it to the court. commercial law specialist, a finance specialist, it was a very good model. But Danella was able to shepherd the So, there was the firm – and Danella It was fabulous. I became a senior vessel through the sale process in about of course – trying to re-open a associate at time,” Danella recalls. four months. That’s an incredibly speedy tremendously lengthy and complex case timeframe. before a judge who was looking forward Working for the opposition and to his retirement, and there was no Back to Norton White specialist expert to present the case. becoming a partner Danella moved on in her career and went Inevitably, in any working life, there is far “The judge spied me in court. I’d been a to Ebsworth Lawyers (now HWL Ebsworth more than can be recounted in a short solicitor for literally two minutes and he Lawyers), along with several of her profile. So, here, we will jump forward in cried out, “I can see a solicitor there!” It colleagues. It was a funny move because time, and Danella has recently become a was such a complex issue! I was caught Norton and Ebsworth had a long history partner at a well-known, Sydney-based like a bunny in the headlights!” of acting for opposing sides in the same law firm. Luckily the opposing solicitor had a case. So, when I was asked to go work It’s Norton White. The firm she joined early compassionate streak. He intervened at Ebsworth, I replied, “You want me to go in her career, when it was a start-up. and was able to persuade the judge to work for the opposition ?!?!?” “I do feel I have circumnavigated the wait for counsel to show up. “It was like going back to work at world!” she says. “I rather now suspect that the judge Norton. Ebsworth had the last tea-lady Norton White has a broad set of wasn’t really determined to have me in Sydney!” Danella chuckles. commercial and corporate merger and appear in court – he couldn’t really It was during her time at Ebsworth that acquisition skills, and it is focused on the determine the case on a baby lawyer’s she was made a partner. She had gone transport sector. That means it offers the submissions. I think he was having a overseas for a holiday and when she kind of work that Danella wants to do. bit of fun with me. I was later waiting came back it was to a ton of mail and at the train station and the judge articles from the legal press on her desk. “There have been fabulous matters to shuffled up behind me and said, “I One of those letters appointed her to work on here, since we have arrived,” hope you’re not planning to arrest partnership. she says. that train, Ms Wilmshurst!” I couldn’t fathom that a judge would even know “At the time of joining, I said I wanted Danella is really pleased. my name,” she chuckles. to be a partner, I wanted to be fully “It is like coming home”, she says, “it invested in what I was doing. It is is awesome. I’m really delighted. It is that sense of investment…to broader An end to a beautiful time great to come to a firm with an existing strategic matters, or resourcing. I felt it talent pool of solicitors to work with. It’s For good or bad, nothing in life ever was that investment that I needed. It’s very, very, nice to be here,” she says with stands still and the Norton Smith & Co’s the biggest change in your working life. a smile. time was coming to an end. A merger After you start as a baby lawyer, right with an international firm happened and through to your last day of work before the culture changed. you retire, there’s not necessarily a vast

Shipping Australia Limited I Spring/Summer 2020 13 : FEATURE: AGRI-PRODUCTS

Australia - ripe for regionalisation

By ASH SALARDINI, general manager, Trade and chief economist, National Farmers’ Federation

The ongoing restrictions associated food staples remaining steady. Similarly, manufacturing close to the point of food with the Coronavirus pandemic have regionally based food processors and production, not near the markets and demonstrated the significant risk manufacturers have fared better than other economic infrastructure of capital cities. posed by the absolute concentration of manufacturers located in our capital cities. There are further opportunities to develop economic activity in our two major cities. Our big cities are more susceptible to synergies with other complementary This shock has put the regionalisation large-scale shocks including pandemics, industries, including provenance-based agenda firmly back into the public food and wine tourism. In 2019, the spotlight, with rural industries, such as physical security threats, cyber-attacks NSW Farmers’ Association put forward agriculture, largely shielding Australia to critical infrastructure, and chronic an ambitious economic development from a much more severe economic over-population and congestion. agenda for New South Wales’ Central malaise. While the likelihood of these events is extremely low, the coronavirus pandemic West centered on agriculture, value- The regionalisation agenda is no longer just has shown that their impacts can be added food and fibre processing, the nice to have, it is imperative to ensuring a socially and economically devastating. production and marketing of high value robust and resilient Australian economy. Some degree of decentralisation of provenance-based food, and food-and- Agriculture can be the linchpin industry economic activity would make sense to wine-based tourism. The Future Food for this regionalisation agenda. Noting address this sizeable risk. Systems Cooperative Research Centre agriculture’s heavy reliance on exports, the highlights significant opportunities in state of our ports, shipping services and Australia is particularly susceptible to the developing agricultural systems to tap land-freight systems will largely determine impacts of such shocks, being one of the into the highly lucrative ‘nutraceuticals’ whether this ambitious regionalisation more urbanised advanced economies in market – food produced and marketed agenda will come to fruition. the world. As an example, over 70 per for its health and medicinal benefits. cent of Australians live in our major cities, The reinvigoration of the Regional Deals compared to just 60 per cent in the United framework can be the catalyst to ensure States. The comparison becomes starker The role of ports, shipping and success of the regionalisation agenda by given that most Australians live in and freight coordinating industry, local, State and around just three major cities. Given the export orientation of the Federal planning processes, regulatory agricultural sector, all these opportunities reforms and infrastructure investments Agriculture as a lynchpin to are reliant on effective, reliable and that will remove barriers to regional affordable to move development. revitalise the regions these goods to port, and then onto Agriculture underpins the economies of international markets. The current The case for regionalisation and most of Australia’s regional areas, and state of our freight and logistics system decentralisation agriculture is generally in the top three acts as a major barrier to seizing industries in terms of contribution to these significant opportunities, and Industries in our major cities have been regional gross value of product. It is a kickstarting the agricultural-led ravaged by the responses to curb $60 billion industry that is fundamentally regionalisation agenda. the Coronavirus pandemic, whereas reliant on regional and rural Australia, regionallybased industries have on the with ambitions of becoming a $100 The freight sector is made up of diligent most, fared much better. While the and hardworking individuals and billion industry by 2030. broader Australian economy is forecast to organisations that ensure Australians are shrink by 4.75 per cent in the fiscal year The opportunities that agriculture provides clothed and fed, and businesses, such as 2020-21, forecast agricultural production go beyond the farmgate, and can be farmers, can get their goods to domestic for the same period is set to exceed that of utilised to supercharge the regionalisation and international markets. The problems the previous two years, with both domestic agenda. There are significant opportunities associated with the cost and reliability and international demand for Australian to colocate food processing and of freight movements, is a systemic one

14 Shipping Australia Limited I Spring/Summer 2020 that is beyond the action or inaction of targeted regions, beyond straight line and supercharge the significant interest any one individual or organisation within extrapolations, with input from industry, and investment in regional development by Government or the freight supply chain. local industries and local government; all levels of government. The New South Wales Government is developing Special Australia has one of the highest landside Identification of likely future regional Activation Precincts to identify regional freight costs in the world. The cost of industries and commercial activities, areas with such potential and begin the landside-transport and logistics can including local and State planning master planning process. The Federal represent more than 35 per cent of the provisions to facilitate the colocation of Government has provided significant final price of grains, while landside freight these future industries; ongoing funding to Regional Development costs represent two thirds of total freight Integrated transport, energy, Australia to coordinate potential regional costs for the export of vegetables, such telecommunications and water opportunities, while local governments as beetroot. The lack of affordability infrastructure planning; have established various regional alliances and reliability acts as a major barrier that recognise the benefits of working at to international competitiveness Implementing broader policy and a regional rather than local level. The and col-locating food processing regulatory reforms that stifle a truly Regional Deals could leverage and and manufacturing close to farms, world-class freight supply chain, reshape the direction of these various necessitating colocation near domestic including a more robust competition programmes to ensure they are all markets and ports. policy framework; and pushing in the same direction. The situation is equally challenging for A workforce, education and social strategy The final element of the Regional port-side freight movements. There has to ensure these regional activations are Deal is investment in the required been a significant escalation of port-side places people seek to live and work. infrastructure and policy and regulatory infrastructure charges. As an example, reform processes that would bring stevedoring costs by a Melbourne Regional deals – bringing together to life Regional Deal proposals that provider increased from $3.50 to over have demonstrated viability, and most $85 per container, in under three years! all the ingredients for successful importantly demonstrated significant and Coastal shipping regulations that reduce regionalisation active support by local communities, competition amongst service providers A reinvigorated and focused Regional industry and governments. not only increase the cost of freight but Deals programme can become damage the viability of coastal shipping the vehicle to bring together the From a transport perspective this could as compared to landside transport. various ingredients to ensure that an potentially mean significant investments agricultural-led regionalisation agenda in road and rail infrastructure to sea The provision of port infrastructure suffers becomes a reality. This is why the and airports, including funding for local a similar fate. As an example, restrictions National Farmers Federation (NFF) has governments to deal with first and last placed by sState Government on the called for a prioritised list of Regional mile journey issues, investments in development of a container facility at Deals across Australia as part of digital infrastructure to facilitate real- the port of Newcastle to increase the its Get Australia Growing economic time traceability and quality assurance sale price of the Sydney Ports assets, recovery plan. for the freight journey from paddock to has come at the expense of freight international plates, and expansion of users, such as farmers. A container This new approach to Regional Deals our port and sea freight capacity. port facility at Newcastle would have should take a bottom-up and top- provided significant increased capacity down approach in identifying regional Just as the Western Sydney City Deal and competition for the provision of development opportunities. Federal is reinvigorating the economic and containerised freight movements, and State governments should identify social fabric of Western Sydney through increased access to containerised freight potential deal candidate regions with industry and community coordination, services to New South Wales grain reference to: master planning, and once in a generation growers, and put downward pressure on investment in infrastructure such as • Current and potential industry port infrastructure costs. the Western Sydney Airport, road and capabilities and competitive rail connections, and energy and water Containerisation also provides greater advantages within each region; infrastructure, Regional Deals can finally access to markets in Asia, with shallow • The potential for enabling soft and harness the massive potential of our ports that are not amenable to bulk hard infrastructure (transport being a regional communities and economies. movements. priority area) or policy and planning AgriFutures and Acil Allen are expected Issues with real-time traceability and reforms to remove any impediments to release a report on the intersections quality assurance of freighted goods for the region to achieve the economic of agriculture and regional development, are completely outside the control of development and growth sought; and and the identification of growth the freight supply chain, limited by the • The existence of local partners opportunities by the end of 2020, which availability of digital infrastructure. who are willing to develop plans will be of great value in progressing the Addressing these problems requires and progress the Regional Deal conversation on regional development. more than just investing in new transport programme (preferably a consortium The will is there to develop vibrant and infrastructure, which is only one element of local governments, industry and viable regional economies and the NFF to the solution. It requires: community groups). believes that targeted and focused The development of ambitious local The proposed Regional Deals Regional Deals programmes will provide production possibility scenarios for programme should leverage, coordinate the way.

Shipping Australia Limited I Spring/Summer 2020 15 : FEATURE: AGRI-PRODUCTS

Demand proves strong for Australian citrus as industry meets challenge of COVID-19

By NATHAN HANCOCK, COVID-19 proved a disruptive influence in with the harvest, required extensive lobbying chief executive officer, the Australian citrus industry this year but from Citrus Australia with Government, and Citrus Australia. strong domestic and international demand further significant work with Federal and for our world class fruit has provided a silver State government departments. lining. Pressure on the Government was COVID-19 made an immediate impact, instrumental in gaining bridging visas for when Prime Minister Scott Morrison closed Working Holiday Makers and Islanders Australia’s borders, stopping Pacific Islanders already in the country. about to board flights to Australia to work Weekly meetings (daily at the onset under the Seasonal Worker Programme of restrictions) with State and Federal (SWP). Government departments would continue These workers are critical to harvest each for months, as Citrus Australia sought year. Fortunately, there were already Working clarification on announcements that affected Holiday Makers (backpackers) and Islanders the workforce of our citrus businesses. in Australia under the SWP. Those businesses in Queensland were What seemed like a logical solution in harvesting fruit while having to apply new extending visas for these workers to help COVID-19 requirements to their workplace

16 Shipping Australia Limited I Spring/Summer 2020 and employee accommodation. discussions with the New South Wales Businesses in the southern citrus Agriculture Minister, the decision was regions had more time to prepare these overturned for seasonal workers. The requirements. citrus harvest in New South Wales resumed in July with minimal damage With so much information to absorb inflicted. and adopt, Citrus Australia dedicated resources to a one-stop information Growers working around the clock portal on its website, and produced minimised damage caused by the worker the agricultural industry-leading guide, restrictions. Support from packers ‘Guide to Covid-19 in the Orchard & ensured quality fruit was delivered to Packing Shed’. domestic and export markets. This Guide provided a template The National Cabinet (comprising the for citrus businesses to create a Federal, State and Territory governments) working environment that would meet agreed in August to develop a national government requirements and, more code to allow cross-border travel for importantly, protect the health and safety agricultural workers. of their employees and family. Citrus Australia is contributing to the Businesses did an exemplary job national code, which will involve a creating distancing measures, monitoring consistent set of rules for the agriculture slight decline in mandarin exports in the health of their workforce, increasing supply chain to cross State boundaries first six months of 2020. cleaning and documenting every aspect more freely. As of 30 June, both Japan and Greater at significant cost to themselves. Since the National Cabinet decision, China had imported 26 per cent of Our industry was in a uniquely prepared the South Australia, Queensland and Australian oranges. Japan imported 25 position for this change, given our New South Wales governments have per cent of Australian mandarins, with adoption of food safety principals, which eased their strict border closures, Greater China importing 16 per cent. are the spine of any sound COVID-19 which prevented workers and Japan’s imports had increased compared plan, and the wide spread of knowledge employers from crossing the border to the same period in 2019, while China’s and awareness of biosecurity principles. without written exemptions, which were decreased. Due to the size of the crop, State Government border closures difficult to obtain. there has been less fruit available overall and intrastate travel caused significant that suits the China market specification. challenges throughout the season. Domestic demand Last year’s record year was characterised Unfortunately, the pain and angst these Despite the additional work created by by an on crop, large volumes of fruit, an decisions caused border communities COVID-19, there was a silver lining in increased volume of smaller size fruit. could and should have been avoided. increased demand, particularly in the domestic market, with retailers revealing We also saw an increase in mandarin Closures issued by most States were all citrus category sales had increased exports which isn’t a great surprise given done with very little warning and did significantly. the number of new plantings we’ve seen not seem to be based on evidence of in the past decade. potential COVID-19 risk in the border Citrus Australia has been active in communities. promoting the health and nutritional This year the crop volume has been benefits of all citrus categories through down depending on the variety and The crippling effect of health ministers timing, but sizing has been good. and departments with city-focussed online campaigns this year. policy making had a severe impact on It may be that COVID-19 recalibrates The industry has adjusted to operating borders around the country and the community sentiment toward our sector under different conditions than in the movement of ag workers. as the realisation dawns on some that past – a virtual marketing space - due to COVID-19. So much of this could have been fresh produce is relatively cheap and resolved with proper consultation, abundantly available in our country. There hasn’t been the opportunity to visit and if it was not driven by the health This could well be a fresh produce the market, to view the fruit and to get a departments alone. renaissance where industry is able to sense for the flow of product, so trust in relationships has been important. The decision by the New South Wales claw back some of the ground lost to Government to close the New South ‘functional’ and ‘fortified’ foods. There has also been increased risk that Wales-Victoria border in July prevented at any time a market may close or a seasonal workers based in Victoria from Exports port may be heavily congested due to working on New South Wales farms. COVID-19 regulations, in the importing Australian citrus exports have had a country. After ten days of lobbying, significant positive start to the season despite the work with the New South Wales uncertainty caused by COVID-19, with Despite this, demand for citrus Department of Primary Industries and increased orange exports offsetting a globally has been very strong. Since

Shipping Australia Limited I Spring/Summer 2020 17 the beginning of the pandemic many markets saw a sharp rise in demand and this has continued through to our season too. Demand has been strong from a range of Australia’s key markets. Pilot project on traceability to Demand from Japan has been strong all strengthen consumer confidence season, as have other markets such as New Zealand, Singapore and Malaysia for oranges, and the Philippines and Thailand for mandarins. Agriculture Victoria has engaged Citrus Australia to undertake a $200,000 pilot We predicted the 2020 citrus season programme aimed at improving traceability in horticulture supply chains. would be smaller in volume than last year The pilot traceability scheme will demonstrate the application of emerging but it seems certain varieties have been technologies to a horticultural business in a real-time environment – from application lower in volume than we first thought, of unique codes to individual packs, through to tracking them in the marketplace. particularly early and mid-season Navel The scope and audacity of IP theft costs individual citrus businesses and the wider oranges and Murcotts. citrus industry millions of dollars every year. However, Citrus Australia is still optimistic The citrus industry relies on its quality and the safety of the product we produce here it will be a reasonably strong export in Australia. We have a premium product in our export markets, and we need to be season given strong demand domestically able to prove to our end supplier the origin of our product. and across our export markets. Under the pilot project, Citrus Australia has engaged technology companies Laava ID, provider of Laava Smart Fingerprint technology, and Trust Provenance, a provider of Looking forward blockchain technology, to develop a traceability system for export citrus fruit supply chains. The Federal Government announced in August the reopening of the Pacific Laava ID uses advanced computer vision technology developed in collaboration with Labour Scheme and Seasonal Worker CSIRO to produce a unique ‘fingerprint’ that can be scanned by any smartphone. Programme. Unlike barcodes or QR codes, which have been used in the past, Laava’s Smart The Federal Government has assured Fingerprint technology is much harder to impersonate or replicate (a technique known the horticulture industry it would approve as ‘spoofing’) and much more secure, making it more resistant to counterfeiting. the visa applications, but it now depends Trust Provenance have built an integrity system that allows multiple data points to be on each State and Territory to “opt-in” to linked into the one data platform. the reopened schemes and administer Fruit grown by Nu Leaf IP near Mildura, Victoria, and packed at Mildura Fruit their arrival into the regions. Company has been labelled and landed in China. Boxes and 1 kilogram pre-packs We welcome the Government are now being sold in stores with the Laava Smart Fingerprint technology. The announcement and look forward to trial has shown that the unique Fingerprint technology can integrate with existing systems, in this case, MFC. working with State governments to ensure all growers have a full workforce Nu Leaf IP is the master licensee in Australia for Tang-gold, a high value seedless for the 2021 harvest and into future mandarin variety bred by the University of California, Riverside, USA. seasons, as Australia tracks its way to Using the digital fingerprint labelling on packaging and through the blockchain will recovery from the pandemic. help protect brands and allow the customer to directly access proof of origin and the Citrus Australia is working with all State features of the fruit. Government departments, advising It also helps give consumers confidence they are buying a premium variety with the them of the importance of their help features they desire. in administering these schemes, and By scanning the Laava Smart Fingerprint with their mobile phone, consumers can supplying necessary data on required authenticate the products that they buy, learn more about their products, and engage worker numbers in each citrus region. deeper with the brands that made them. We will also work with our citrus The benefit of blockchain in traceability is that any data point that is stored on the businesses on collating information on just blockchain cannot be changed. how many workers are required across the Bringing all these data sets together on the one platform also enables a number country for every month of harvest. of business efficiencies and ultimately that brings a fresher and better quality This information provided by our product through to the consumer, who will have confidence they’re buying authentic businesses will help us in our meetings Australian-grown produce. with Government, and in turn help In this project, we’re integrating data points from the grower, the pack shed, the Government create appropriate policy in logistics company, the food safety certification body and from data loggers which a timely fashion. have got GPS and temperature data points throughout the journey.

18 Shipping Australia Limited I Spring/Summer 2020 FEATURE: AGRI-PRODUCTS

Emergence from adversity

I am happy to report the 2020-21 season crop is harvested and the east coast supply Australian winter-based grain crop is is replenished. These shipments have been generally very favourable as compared to the required to meet domestic demand for human recent drought ravaged seasons. consumption, such as flour milling and malt production, and for animal feed. Reversing the Given the total rainfall between February and supply chain into eastern Australian ports and April was above average in most cropping regions in the eastern states and South back up the supply chain has certainly had its Australia, and with the three month seasonal challenges. outlook (June to August) above average in The number of vessels arriving on the east most cropping regions we are expecting coast of Australia during this period has increased activity for the shipping industry been quite amazing. The Australian Crop from grain exports in 2021 than in prior years. By PAT O’SHANNASSY, Forecasters,’ James Maxwell, said the bulk of chief executive officer, ABARES supports this forecast, as its winter the imported shipments have been from South Grain Trade Australia crop production is forecast to increase by 53 Australia and Western Australia, with 349 per cent in 2020-21 to 44.5 million tonnes. bulk vessel interstate movements recorded This forecast is 11 per cent above the ten- and 16 cargoes imported from Canada up year average to 2019-20. until the end of July 2020, for a total tonnage discharged of 7.6 million tonnes. Normally an export-oriented business, this is great news for Australia, as over 70 per cent Drought has not been the only challenge facing of Australian grain production is exported the industry, with the geopolitical landscape annually, with the Asian region accounting creating a very bumpy ride for industry and for over 50 per cent of these exports. This especially barley growers. The industry is return to a more normal season will be deep disappointment with the announcement important to Australia’s economic growth, by the People’s Republic of China to place especially to rural and regional economies. punitive tariffs on Australian barley exports to China. This follows an anti-dumping and One thing these favourable conditions are countervailing subsidy investigation initiated by anticipated to reverse is the recent trend where China in November 2018. bulk shipments of grain, instead of loading, have been discharging at the major ports all The World Trade Organisation (WTO) along the east coast. This has been occurring definition of dumping is when exports are from late 2017 and will continue until the new sold at a price lower than the exporting

Shipping Australia Limited I Spring/Summer 2020 19 vast potential of economic cooperation Water and the Environment (DAWE) and between business, communities and GTA to review and improve the Standards individuals. It will reduce non-tariff for Food Quality Shipping Containers. This barriers to trade, simplify paperwork is an important resource for the industry and will allow 99 per cent of Australia’s and the refreshed and updated version will goods to enter Indonesia duty free, or be well received. with significantly improved preferential arrangements. It includes the The review of the Standards for Food introduction of volume quotas on the Quality Shipping Containers is part of export of Feed grain to Indonesia. a larger project and focus aimed at improving the process and administration I wish to loudly acknowledge and of exporting grain in containers. In the country’s domestic market, and/or lower applaud all supply chain participants and past the grain container supply chain than production costs, which results especially those involved in the shipping has had its issues, with the slow and in ‘injury’ to the importing country’s industry for the expedient and practical inaccurate transfer of data associated domestic production. steps taken to ensure COVID-19 has not with export consignments. Working with impacted the grain supply chain. It has These punitive tariffs impose a dumping DAWE, GTA and an industry working been outstanding to see the collegiate margin of up to 73.6 per cent and a group has and continues to remove approach to managing issues and subsidy margin of up to 6.9 per cent bottlenecks and improve processes. overcoming hurdles. In fact, there are on all barley imported from Australia, some unanticipated flow on benefits Similar projects that may be of interest effective from 19 May 2020. The from the adversity with the crisis leading to Shipping Australia readers is the industry is deeply disappointed these to the speeding up of positive change. development of a Mobile Bulk Loading tariffs will disrupt and, most likely halt This is evident in shipping related trade Guideline and the assessment of the exports by artificially increasing the support functions with electronic trading use of body cameras to audit vessel price of Australian barley imported to and shipping documents becoming more inspections. Both these projects are China, until the situation is resolved. It readily used during the COVID-19 period. joint DAWE and industry projects, with is estimated this dispute could cost the GTA providing industry facilitation. Australian grain industry and notably Positive change is a goal for GTA and rural and regional economies at least assists GTA’s primary focus to facilitate The use of mobile bulk vessel loading $A500 million per annum. trade. One approach GTA takes is to conveyors is a relatively recent occurrence in the industry, with vessels For several years China has been proactively work with governments and now having loaded in Victoria and in Australia’s largest barley export market other industry associations and groups to South Australia. Being able to more and Australia is the largest supplier of achieve its objectives. Working with other closely manage the timing of vessel barley to China. This imposed duty makes like-minded industry associations towards Australian barley less competitive into the common objectives is a great way to break loading when you may have a dozen Chinese market and has placed significant down barriers and to create value. One exporters all wanting to use the same downward pressure on barley values example of this is a joint project currently export terminals, is driving the use of offered to Australian growers. Grain Trade underway involving Shipping Australia hiring public berths and using mobile Australia (GTA) has called on the Australian Limited, the Department of Agriculture, equipment to load bulk grain cargoes. Government to support Australia’s farmers and exporters by engaging deeply with China in a respectful and meaningful way, to resolve the issue and to concurrently and immediately pursue the WTO Dispute Settlement process to the fullest extent possible. On a positive note, GTA would like toacknowledge the collaborate industry and government approach that has resulted in the signing and commencement of the Free Trade Agreement (FTA) with Indonesia. This is of great benefit to trade between our two countries and will support sales of Australian feed grain into Indonesia. The FTA is the Indonesia Australian – Comprehensive Economic Partnership Agreement (IA-CEPA). The IA-CEPA creates a framework for Australia and Indonesia to unlock the

20 Shipping Australia Limited I Spring/Summer 2020 FEATURE: AGRI-PRODUCTS

Resilience and reinvention Australian Grains Industry Conference – forecasting opportunity from diversity

By A SPECIAL CORRESPONDENT

The Australian grain industry has come opportunities were all real. Delegates that – despite the challenges being together with an information-packed day were able to interact, network and chat experienced the world over – we can still at its annual conference AGIC 2020 LIVE through the specifically tailored virtual bring our industry together for this one, on 30 July 2020. on-line conference platform. very beneficial day.” Due to the COVID-19 pandemic, this year, the decision was made to hold About AGIC 2020 LIVE The industry experts the annual Australian Grains Industry Focusing on the topics of resilience and Local and international industry experts Conference virtually. It was the first reinvention, AGIC 2020 LIVE offered a provided delegates with the latest time the Australian Grains Industry dynamic programme, including keynote insights, learnings and opportunities. Conference (AGIC) was held exclusively presentations, panel discussions and The impressive line-up of keynote online – yet the change-up to this year’s curated workshops from local and speakers, who focused on this year’s format did little to dampen the sparks of international experts. theme of resilience and reinvention, industry inspiration that delegates have included: come to know and expect. The virtual venue was designed to closely resemble a traditional conference, • The Hon Alexander Downer AC, retired Grain Trade Australia (GTA), co-hosted including: Minister for Foreign Affairs and former the popular conference alongside Pulse Australian High Commissioner to the Australia and the Australian Oilseeds’ • Welcome Lobby United Kingdom, Federation. Though our first virtual • Auditorium conference, it’s AGIC’s 21st year of • The Hon David Littleproud, Minister for bringing the grain industry together to • Exhibitor Hall Agriculture, Drought and Emergency connect, learn and engage.. Management, • Network Hub And, once again, the feedback is that it • The Hon Senator Simon Birmingham, Before the event, Andrew Goyder, didn’t disappoint. Minister for Trade, Tourism and chairman of GTA, said, “We know this Investment, While the format and delivery were is going to be a different experience to virtual, the insights, learnings and past years, but we’re genuinely excited • The Hon Barry O’Farrell AO, former

Shipping Australia Limited I Spring/Summer 2020 21 Premier of New South Wales speakers forecasting they will be a structures, its ‘rule of law’ and internal and current-day Australian High primary health factor and but also an culture. Australia and the Australian Commissioner to India, economic factor for most grain exporting grain industry appear well placed when and importing countries for some time. we exit the pandemic crises. • Richard Yetsenga, chief economist at ANZ, The threat of protectionism and nationalism were discussed and the The feedback • Simone Austin, sports dietitian and impact on the grain market, including president of Sports Dietitian Australia, Delegates tuned in both from across 50 nations implementing trade related the country and internationally, keen • Alison Watkins, group managing subsidies under the premise of to connect with colleagues, potential director, Coca-Cola Amatil, and COVID-19. customers and suppliers when it’s been • Richard Crump, managing partner, Delegates heard the importance of India challenging to do just that. HFW Singapore as a ‘market of the future’ with pulse Nick Goddard, CEO of Pulse Australia demand likely to grow as high as 40 and Australian Oilseed Federation million tonnes by 2050. The insights commented “the conference today - dare I say, probably the best I have attended Minister Birmingham in his opening Delegates also heard that opportunity in 11 years! Outstanding speakers and address stated the agricultural industry comes from diversity. Despite the just about the right balance between and in particular the grain sector should current pandemic and global trade ‘grain’ topics and broader ‘economic, be congratulated on keeping supply tensions delegates were informed the trade and social issues”. lines and secure food programmes open long-term prospects are still bright for through the Covid-19 pandemic. grain. This is based on strong economic “It’s a great feeling to know that, despite growth factors and emerging lifestyle the challenges we all face right now, The topic of Resilience and Reinvention trends in Asia. we were still able to bring together our was a strong focus of the international industry and its people,” says Andrew and local speakers whose messages Similarly, delegates heard that crisis Goyder. included positive supply messages as may lead to the speeding up of positive the world grain supplies are generally change. This is evident in trade support “And the added bonus is that delegates solid and industry, the market and functions with electronic trading and will be able to access all of the governments are finding ways to work shipping documents becoming more presentations, Q&A sessions, and through the pandemic issues. readily used during the COVID-19 period. resources for the next 30 days”, Mr Goyder added. Geopolitical tensions and resultant Individual countries future economies market impacts were a hot topic with and trade capability is likely to be a result of the strength of its leadership, political

22 Shipping Australia Limited I Spring/Summer 2020 : FEATURE: AGRI-PRODUCTS

Fletchers - meat and farm products from Australia to the world By JIM WILSON

Family-owned Fletcher International Fletcher International Exports’ logistics Q. You’re well known for your sheep Exports is a well-known Australian farmer, division moves, in excess of 18,000 and lamb products. What are the processor and export of lamb, sheep meat twenty foot equivalent unit containers a major markets for sheep meat? and other agricultural products. The group year by train to Sydney, and by road to A. All continents on Earth have demand has two plants, one in Dubbo, New South Fremantle. Fletchers owns a train that is for sheep meat. Historically, there Wales, and the other near Albany, Western operated by Southern Shorthaul Railroad. has been a place for sheep in all Australia. Together, the two plants The train runs up to three times a week, and the group can run extra services. The major societies for both food and process more than 90,000 sheep and fibre, and this stands true today. lambs a week – that’s over 4.5 million train calls at DP World, Patrick Terminals, head of livestock a year. and Hutchison in Sydney. The train Q. Are volumes for sheep meat and stables at Fletcher’s private 1.35 kilometre products rising, declining, staying Roger Fletcher started the group in double-ended loop siding. There is over flat? What are the trends? 1967, focused on droving livestock and 700 metres of hard-stand train loading trading sheep. In 1973, the company area, and container exchange on the train A. There has been a downward trend in started processing and marketing meat, is done with two heavy Hyster forklifts, the global population of sheep in the and that’s still the core of the business a Hyster reach stacker and a 16 tonne past 50 years, due to competing fibres today. Fletcher International Exports Toyota container handler. and land use. There have been great also farms more than 90,000 hectares steps forward in the eating quality The company’s operations span New of land. The group’s pastoral holdings and productivity of lamb production, South Wales, Queensland, and Western combined with highly sophisticated include more than 25,000 hectares of Australia. cropping, 2,500 hectares of irrigation processing technology and global container shipping. We can sell the and more than 62,500 hectares of Shipping Australia chatted to Fletcher right cut to many more markets than livestock grazing land. International Exports’ managing director and founder, Roger Fletcher, to find were ever possible, and this has driven The group has expanded into agricultural out more about its products, overseas increased volumes of lamb production. logistics. It has invested in its grain markets, transport, logistics and how handling and intermodal freight terminal. Australia’s agriculture industry copes Overseas markets Set on a 200 acre site adjacent to the with natural disasters. Dubbo processing plant, the grain Q. Why do you sell domestically and overseas? handling facility has more than 63,000 Q. What products do you sell? tonnes of silo and 250,000 tonnes of A. We are a diversified agri-business A. We sell domestically, and we export, bunker grain storage. It can also store and we ship meat, co-products, as different products are demanded and containerise all grades of wheat and wool, skins, wheat, cotton, barely, around the world, depending on pulses ready for export. chickpeas and other commodities. culture and cooking technique. Some

Shipping Australia Limited I Spring/Summer 2020 23 products that best suit consumers. Coping with natural disasters This helps create better farm gate Q. What have been the effects on your returns. export business, or your sector, of Q. What is the benefit of your industry the Australian drought? to Australia? A. This last drought put rural and A. The meat processing industry is regional Australia under massive a huge employer and creator of strain. Australia was well-positioned manufacturing jobs. Wages, farmer with our market access, to enable returns, foreign earnings and many farmers’ returns on sheep and lambs taxes are earnt by our industry. to remain at relative high levels. We witnessed our farmer suppliers adopt many techniques to ensure Transport and logistics our customers continued to be Q. How are your products shipped? consistently supplied with high quality A. All products are containerised. We products. With the drought breaking transport from Dubbo to the port over major areas of eastern Australia, at Sydney, with company-owned we are seeing many farmers focus on 3 x C44 locomotives and rolling restocking and, importantly, drought stock. The locos are 4400 horse preparedness. power, each capable of 6100 metric Q. What have been the effects on the tonnes of trailing tonnage with 62 export business of bushfires? wagons, 186 TEU. This makes our freight movements some of the most A. Bushfires did not impact the sheep efficient anywhere in the world. In production to near the extent it did Western Australia we use company other industries. It was a devastating road trains in c-double, or road train blow to rural and regional Australia cultures prefer legs, some shoulders, configuration, to transport container on the back of the long running some racks and loins, and others flap freight from Albany to the port of drought. The bushfires did have an meat and bones. Fremantle. Sydney and Fremantle extreme impact on our ability to reach Sydney port through rail corridors. Q. How do your company’s products are our biggest ports, but we do ship They showed that there is a lack of fundamentally cater to demand in small volumes from Melbourne and preparation and mitigation of fuel load overseas markets? Brisbane, if the schedule suits. We then use shipping lines to transport around these vital arteries of regional A. Our role is to ensure the right economies. our goods around the globe. product is with the right customer Q. What have been the effects on your anywhere in the world, when they Q. As a customer of the ocean-going export business or your sector want it. If this can be achieved, we shipping industry, what, in your (volumes/value/market share) of are able to deliver the best returns opinion, does the ocean-going COVID-19? for our producer suppliers. Festivals, shipping industry do well? seasons, and celebrations form a A. COVID has given us many challenges, A. It allows exporters to deliver the exact large part of the demand around the with the food service markets of cut at the right time, consistently and world at different times of the year. fine dining, cruise lines and airlines efficiently anywhere in the world. You We operate in a global market that suffering nearly total loss of business. cannot overstate the contribution this changes daily. These industries are major consumers has made to the Australian economy, of Australian lamb. COVID has had Q. Has there been a change in the and particularly to rural and regional a massive impact on the entire food composition of trade? Australia, over the past 50 years. We service sector around the world. We need to work together to ensure the A. Markets are changing all the time, for would predict recovery in this sector right containers are in Australia at the reasons such as season, economy to take a significant amount of time. and demographics. We need to right time, for exporting our farmers remain close to our customers to products. Many agricultural products Q. How do you see your business, ensure we are adapting our product- are heavy bulk and therefore 20 foot and your sector, adapting to, and offer to match consumer demands. reefer and dry containers are required recovering from, these disasters? in high volumes to allow these A. We are working with all our Q. Are there any other issues with any exports to take place. given overseas markets? customers in all sectors to help drive Q. What ONE message would you recovery and growth in sheep meat A. The goal of our industry and give to the ocean-going shipping consumption. It will take some time, Government must continue to be industry? but it can be done. about market access and free trading agreements. Free trading agreements A.  Keep driving efficiencies on every Further details about Fletcher allow us to work with customers in part of our business and the supply International Exports can be found at country, on a direct basis, and create chain, if we are to remain competitive. www.fletchint.com.au

24 Shipping Australia Limited I Spring/Summer 2020 : FEATURE: AGRI-PRODUCTS

Grain Corp Bulk Loading Facility - Port Kembla, NSW Image: MSMMilling

Oil and water do mix!

The old adage of oil and water not mixing is with over a million tonnes of canola seed far from the truth when it comes to Australia’s processed domestically per year, into vegetable $3.5 billion oilseed industry. With over $1.5 oil and protein meal; and 2.31 million tonnes billion worth of exports each year, all of of seed, oil and meal exported per annum which are shipped by sea, the Australian (export statistics quoted in the article are 5 year oilseed industry is highly reliant on the global financial year averages to June 2019, unless shipping network to realise the full value of stated otherwise. Source: ABS). the industry - from the farmgate right through Other exported oilseed products include: to export-oriented food and feed processors. cottonseed, soybeans and soybean oil and The Australian oilseed industry, comprising the flour, sunflower seed and sunflower oil, production and processing of oilseeds such linseed, and safflower seed and oil, which By NICK GODDARD, chief as canola, sunflower, safflower and soybean, combined, make up around 200,000 tonnes. has a production footprint covering the length executive officer, Australian and breadth of the country, from south western Europe’s autobahn’s fuelled with Oilseeds Federation Western Australia to Far North Queensland; Australian canola and an export footprint ranging from the well- established markets of China, Japan and the Europe is the largest destination for European Union(EU), to markets as exotic as Australian canola seed, with the major ports Bermuda, Colombia and Madagascar. such as Hamburg, Rotterdam and Ghent, receiving on average one million tonnes of The Australian market is dominated by canola, Australian canola per annum as bulk cargo, due to the suitability of this crop as a profitable shipped mostly from Western Australian rotation crop in the winter cereal farming ports of Geraldton, Kwinana, Albany and systems. Consequently, the processing and Esperance, and South Australian ports of export capacity is geared towards canola,

Shipping Australia Limited I Spring/Summer 2020 25 and Port Lincoln. When the growing seasons are favourable, and the east coast of Australia produces a surplus of canola, ports such as Portland, Geelong and Port Kembla, also ship to Europe. Australian canola is highly sought after by the European biodiesel market, due to its certification as being grown in a sustainable manner. Sustainability certification is a legal requirement in the EU for any bioenergy feedstock, such as canola, if it is to be counted towards the EU Renewable Energy Directive. Once the canola seed is crushed for the oil Loading 20 litre drums of Auzure, destined for China Image: MSMMilling (to be further refined for biodiesel), the resulting meal is a highly valued protein meal for the EU feed industry. The ability of Australia to supply non-GM canola seed enables the canola meal to be sold into the EU non-GM dairy feed market, which further adds to attraction for Australian canola. These valuable attributes of Australian canola largely explain why Australia is a major origin for canola to Europe, despite other large canola producers such as Canada and Ukraine being geographically closer.

Asia hungry for Australian canola Growing consumption of vegetable oils is closely related to rises in standards of living, and as living standards of populations in countries such as China and Vietnam continue to improve, so too does their consumption of vegetable oils. The further up the economic and educational pyramid the population moves, so too does their preference for healthy oils such as canola. This has enabled Australia to ride the growth wave of demand for canola seed and oil, into many Asian countries. But long before the current opportunities arose in China and South East Asia, Australia began trading canola with Japan. It was as long ago as the early 1990’s that the Japanese oilseed crushers effectively underwrote the establishment of the West Australian canola industry by committing to purchase seed that was surplus to domestic requirements. Today, Japan stands as our longest serving customer for Australian canola, with ports such as Chiba and Yokohama familiar with the sight of Australian grain vessels Australian canola oil packed in retail bottles destined for supermarkets in China Image: MSMMilling discharging their loads. In the 5 years

26 Shipping Australia Limited I Spring/Summer 2020 to June 2019, Japan was Australia’s number one destination for canola seed in Asia, and is a market highly regarded by Australian traders due to the long- term and trusted relationship that has developed. Of growing importance for the Australian oilseed industry, is the opportunity to value-add on-shore and supply canola oil into nearby Asian markets. From Loaded containers awaiting collection - virtually nothing, Taiwan has emerged as MSMMilling, Manilda NSW Image: MSMMilling a prime market for Australian canola oil, with around 20,000 tonnes of Australian canola oil imported annually. This is Cottonseed the USA, fully appreciate both the quality of these Australian specialty oilseeds, as typically supplied in bulk, in one tonne Often the ‘forgotten child’ of the well as the shipping logistics required to pallecons or 20 tonne isotainer/bladders. Australian oilseed industry, cottonseed plays an important role as a valuable ship sometimes very small quantities to source of protein and healthy oils for specialty end-users. From farm to plate - Bathurst to stockfeed. In times of drought, demand Beijing is high in Australia for cottonseed for use Vessel inspection: Keeping A number of Australian oilseed by feedlots; but in times of plenty, there Australian oilseeds clean and green processors have developed retail are hungry markets in Asia ready buy Australia is known the world over for canola oil markets in foreign countries, Australian cottonseed for their feedlots, its ‘clean green’ reputation, and the with the processors buying direct from particularly in China, Japan and South ability to deliver grains and oilseeds farms, crushing the seed, refining the Korea. Around a quarter of a million in bulk, to destination markets free of oil, packing into retail PET bottles, and tonnes is exported annually in both pests, disease or other contamination. exporting as containerised goods, direct container and in bulk, to these markets, Ensuring clean holds and hatches in into retailer warehouses. Through this although exports were greatly reduced vessels is key to this reputation, and process, Australia has carved out a during the recent drought. vessel crews are very diligent to ensure unique market position for canola oil, cleanliness of holds and hatches with brands such as ‘Auzure’ and ‘Wagga Smaller oilseeds - bigger prior to loading. The Department Wagga’, in countries as challenging and opportunities of Agriculture and Water Resources complex as India and China. facilitates and certifies vessels as clean Australian has earned an enviable for loading purposes, and in an innovative The capability of Australian processors reputation for supply of quality specialty development, the department has been to value-add domestically, and deliver oilseeds and oils, such as soybean, trialling inspections at moorings to reduce competitively priced retail oils into safflower and sunflower. Always shipped turnaround times of vessels due to load foreign retail chains is testament to the in containers, as either grain, meal or with Australian grain. The early indications efficiencies of the supply chain, including packaged oil, markets such as New are that the trials are proving successful, international shipping. Zealand, Fiji, UK, India, South Korea and and if implemented, stand to further improve the supply chain efficiency and costs for exported oilseeds. Australian Oilseeds export market destinations The export future is bright for oilseeds With on-farm productivity yields increasing, and areas sown to oilseeds likely to grow in a domestic market with limited growth, exports will continue to be the driver of industry value growth as international markets fully appreciate the value of Australian oilseeds and their bi products. With all oilseed exports moved by sea-borne transport, the cost and time efficiency of the stevedoring and shipping process becomes increasingly critical. The global demand for vegetable oil and meals is projected to grow significantly, and Australia is ideally positioned to capitalise on this trend.

Shipping Australia Limited I Spring/Summer 2020 27 EXPORTS

Trade at the cross-roads By DIANNE TIPPING, chair, and TAMARA OYARCE, National Trade Policy and Research manager, Export Council of Australia

The Australian Government Two factors will determine the strength per cent and that international trade of our recovery—one, how quickly the will fall sharply in 2020. Even with an and others around the world pandemic is brought under control; two, ‘optimistic’ scenario, WTO economists are now certainly looking the policy choices governments make. predict the volume of global merchandise trade will fall by a staggering 13 per cent at the economic impact of Australia faces many challenges. We can compared to 2019. Covid-19. The externalities encourage enterprises to grow quickly from restrictive health to take advantage of new markets, These trade projections come on the especially as domestic spending backdrop of existing global trade measures to date are proving continues to contract, and help them to tensions, volatility in commodity prices, far costlier than initially adapt to a changed world. This means and increasing protectionist sentiments. perceived by authorities. What governments must revisit their policy The imposition of restrictions to trade and regulatory approaches, including and freedom of movements, as well as they do now, moving forward, ensuring these are further simplified and other barriers - though necessary to will be crucial to the livelihoods supportive of business objectives. respond to the current health crisis – may become more permanent protectionist of many, who are already We need to make businesses more measures that will prove disastrous in the internationally competitive and ensure struggling to put food on the longer term. those taking commercial risks are table and worrying about their adequately supported and rewarded. future. Many businesses, We need to focus on maximising Let’s talk Australia including small and medium growth, efficiency and productivity and Zooming into the Australian economy, sized exporters, have already encourage workforce participation. the situation is particularly grim. Some of the experts behind the modelling used shut down permanently and Australia is not alone. The rest of the world are also suffering. The World Bank to determine Australia’s coronavirus others are close to doing estimates that the global economy will response say the country is in a “lucky” the same. As the Australian shrink by 5.2 per cent this year, resulting position. Not sure what that exactly means. But there are significant risks in Government considers an in a 3.6 per cent decline in per capita income and millions of people falling continuing to fight COVID-19 without due economic recovery package, it back into extreme poverty. regard to other costs. must seriously take account of The COVID-19 pandemic is inflicting high Australia is officially in its first recession trade as a priority area. and rising human costs worldwide, with for almost three decades, with the June over 26,198,095 people infected by the quarter GDP numbers showing the virus and over 865,467 deaths to date, economy went backwards by 7 per cent we at the ECA are profoundly saddened — the worst fall on record, and worse by the loss of life that has occurred than most economists had predicted. around the world. This health crisis has As a consequence of the biggest quickly evolved to become an economic downturn since the Great Depression, crisis, with millions of people around the Australia’s seasonally adjusted globe losing their jobs and income. In unemployment rate edged up to 7.5 April 2020, concerning projections from per cent in July 2020, from 7.4 pef cent both the IMF and the WTO predicted in June, and compared with market the global economy will contract by 3 consensus of 7.8 per cent. This was

28 Shipping Australia Limited I Spring/Summer 2020 the highest jobless rate since November • Trade barriers – which include several Economic recovery will require 1998. According to Trading Economics, anti-dumping investigations by some leadership in trade ‘Looking forward, we estimate of our trading partners on Australian As the voice of Australian exporters, the unemployment rate in Australia to stand exports - mainly Australian agricultural Export Council of Australia calls on the at 7.90 per cent in 12 months’ time.‘ products. Whilst most of these Government to lead on trade issues, here investigations are being made by Trade, a key sector of the Australian and internationally, and take decisive China, there are other countries also economy - representing 21 per cent practical action. If economies do not commencing investigations, which of GDP – while having dropped, has start to open soon, many small and include Australia as a party in their kept the economy slightly afloat. And medium- sized businesses, family run/ claims. while recent ABS trade numbers are still owned business, SME exporters will shut encouraging, the numbers hide the real We believe much more can be done, down permanently. pain, especially among SME exporters. both at macro-Government level and The Export Council of Australia therefore at the firm level. For governments, encourages the Australian Government there are ways to keep supporting our Where we go from here to develop and implement trade exporters including: In the current uncertainty, there is hope initiatives, including: • Keeping trade lanes open and and the emergence of opportunity. In • convening key stakeholders to get promoting avenues for freer trade, the words of Roberto Acevedo, WTO’s transport and logistics systems outgoing Director-General: ‘[…] if the • Ramping up multilateral collaboration operating at close to previous levels, pandemic is brought under control and coordination between countries ensuring routes are open and prices relatively soon, and the right policies are as the current restrictions ease, and are brought down. in place, trade and output could rebound communicate those measures to the • facilitating the movement of goods nearly to their pre-pandemic trajectory as trade community, early as 2021.’ across State borders if those goods • Extending Government support in are part of a global value chain. In Australia, we have seen our the freight and logistics area, to other • identifying and expediting negotiations Government - both at the Federal and exporters beyond perishables, and of trade and travel bubbles with key State level - taking early decisive action expand the discussions to include sea economic partners. to protect Australians and the economy. freight, We applaud key trade-focused initiatives • engaging with the finance industry • Exploring the needs of the services like the International Freight Assistance to ensure exporters continue to have export sector (e.g. education and VET) Mechanism, the increased funding in secure and affordable access to trade which have less visibility in the overall the Export Market Development Grants finance. (EMDG) and the initiative by Export trade landscape. • enhancing funding assistance to SME Finance Australia. These are all critical For our exporters, some useful insights exporters to reduce costs associated with to provide a lifeline to cash strapped include: businesses – many of them SMEs – to be exploring new markets and alternative able to remain afloat through this crisis. • Take advantage of the current supply chains, including expanding Government initiatives and seek coverage of programmes such as Export Preliminary consultations with our support from industry bodies and Market Development Grants Scheme and members and the broader export relevant organisations to bring visibility SME Export Hubs programme. community indicate that some key to the issues that currently affect the • extending the innovative Seasonal challenges our exporters are facing today Australian exporter, relate mainly to: Workers Program beyond its current • Start to rethink the geographic pilot phase. • Freight and logistics – difficulties with diversity of your supply chains and • increasing international development availability, cancellation of most air explore alternatives for sourcing, if support to developing country trade freight routes and increased freight available, costs that further reduce already thin partners, so that similar actions can be margins, • Regroup to have a clear strategy to undertaken on their end. If our trade re-enter markets where recovery is on partners are not growing, we cannot • Supply chain issues – with problems the horizon and where demand will be do business with them. with sourcing, challenges managing increasing. the just-in-time system, cancellation of Now more than ever, we all need to contracts and constant delays, While domestically we are still in a work together. We must abandon old shutdown, some of our key trade excuses that constrain us from moving • Export documentation – the need to partners are re-emerging from this crisis, forward. We need to be flexible, digitise all certificates and the many and our exporters need to be ready to innovative and bold. export-related documents have posed deliver and take advantage of these The ECA looks forward to working challenges, translating in goods and opportunities, especially as big export constructively with the Australian cargo being held and creating all sorts markets, such as the US and the EU Government and other stakeholders to of issues across borders, which are remain in hibernation. hard to solve remotely, assist our fellow Australians.

Shipping Australia Limited I Spring/Summer 2020 29 COMMUNICATIONS

A step-by-step guide to reputation management after a disaster at sea

By ANTHONY TREGONING*, managing director, FCR

Far too often companies are caught off guard when dealing with media interest arising from an incident or crisis. The damage to a company’s reputation from a crisis can be just as devastating as the damage to its business operations.

Rena grounding attracted huge media attention

Information management and • They often result in dramatic Speed stakeholder communication are too photographs, which attract the attention It is important to determine and often forgotten during crises – giving of readers and viewers – indeed all of us, communicate your messages before local communities, environmentalists • They provide an opportunity for vested others take control of the agenda, so and other groups an opportunity to interests to secure publicity, you influence public perceptions before monopolise media coverage and risking opinions are formed. This requires damage to the reputation of those • The apparent lack of transparency. an agreed protocol, agreed generic responsible. When the owner, manager and messages, an available spokesperson, With social media and the 24-hour news charterer are different entities in and immediate access to social, online cycle, opinions are formed very quickly different countries, many assume and broadcast media. there is something underhand and – and once they are formed, they are A company needs to be able to contact difficult to change. The media angle is those involved are trying to dodge responsibility. its communication team directly, without usually settled in the first hours. leaving a voicemail message and In the case of an oil spill, if initial opinions So what should one do to influence wondering if it has been received. are negative, the reputation of the ship media coverage of an incident? or rig owners, operators, charterers or Social media managers, can be affected and there can Preparation Increasingly, those affected by a crisis be pressure on governments, which can The most important factor is to have a are using social media to pursue have an impact on eventual compensation. communication plan, so that everyone in their own agendas and to influence While the company cannot dictate the company knows the procedure they government, regulators and other what the media agenda will be, it can should follow when a crisis occurs. stakeholders. certainly take steps to influence how it With management focused on An organisation, therefore, should is represented, by proactively engaging operational issues, there should ensure it is able to monitor and respond with media – rather than ignoring or be a separate team responsible for immediately to critical commentary. avoiding it. stakeholder and media communication Social media also provide an opportunity There are multiple key reasons why the and protecting the organisation’s for the company that has caused the spill media are so interested in maritime or reputation… and it should have authority to seize control of the agenda – provided offshore incidents: to act, within agreed parameters. its protocol allows it to do so. It is vital

30 Shipping Australia Limited I Spring/Summer 2020 Image: Port of Tauranga

that a company fully integrates its online Give your company a human face In conclusion, as with every business platforms into the overall crisis response Impersonal statements place you at activity, planning and practice are critical. and ensures consistency of message a disadvantage when your company Crises tend to happen when one least across every channel. is being attacked passionately by expects them, and often at inconvenient environmentalists and those affected. times. If you have to handle one, you will Explain the facts Always appear human. Concern and be grateful you are well prepared. All communication during a crisis must sympathy are sentiments that are very be based on facts, which should be real in a crisis and can be communicated explained logically in simple language – without admitting liability. and possibly pictures or diagrams – so You should have a least two people understand the situation and spokespeople who are fully trained what you are doing about it. to communicate your messages Steer clear of using technical terms, sympathetically and calmly, without acronyms or jargon, and explaining the appearing flustered or defensive. differences between an owner, manager and charterer. Journalists may think you Encourage independent are trying to confuse them and probably commentary will get it wrong anyway. People are often more prepared to listen Importantly, never cover up or speculate. to commentators they trust - whether If you try to cover up, you are likely to journalists or academics – than to the be found out. And if you speculate and company involved. are wrong, you will be branded a liar. Blaming others should be avoided; no Anthony Tregoning founded communication agency Be flexible FCR in 1985. Today, FCR specialises in reputation one is impressed by a company trying to While you should stick firmly to the management in the maritime and offshore industries, escape responsibility while people’s lives and is the Australian arm of the MTI Network, the are being affected. agreed strategy and crisis communication largest crisis media management network dedicated procedures, be prepared to change them if to the shipping, energy and offshore industries. the situation changes – which often it does FCR has been involved with most maritime crises in Australian and New Zealand waters during the past during an ongoing crisis. 25 years.

Shipping Australia Limited I Spring/Summer 2020 31 SEAFARER WELFARE

Against the odds - maritime industries work to protect seafarers’ health By A SPECIAL CORRESPONDENT

Australians can be reassured that ocean There are also seven annexes that countermeasures, such as those outlined freight shipping companies are acting to address a variety of matters as: evidence below, when carrying out crew changes. protect the health of waterfront workers of seafarer status document(s); crew Some shipping companies have basically at the international, national, company health self-declarations; daily temperature adopted and applied the IMO protocols and ship levels. records; employer letters, and various crew on crew change. Of course, it should be change and travel information sheets. noted that the exact countermeasures The most pressing issue right now carried out will vary according to local is the unreasonable intransigence of This is not the only international law in each different jurisdiction. They governments that refuse to help crew guidance. There are many more will also vary from company to company. changes take place. guidance documents issued by a variety In practice, shipping companies may Globally, over 400,000 seafarers are of important bodies such as flag states, require seafarers to undergo COVID-19 either stuck on ships or in port, who the International Labour Organization, swab tests. Testing can be undertaken are either waiting to go home or to join the International Chamber of Shipping pre-deployment in the country of the their ship, according to the International and the World Health Organization, seafarer’s ordinary residence. Any Chamber of Shipping. among others. In addition to the crew change, there is guidance on a range symptomatic display, or the reporting of “The words ‘frustrating’ and ‘distressing’ of matters including, but not limited to, a COVID-19 positive test, would render a come to mind when describing the ensuring a safe interface between ship seafarer unfit to travel or to join a vessel. attitude of some governments to allow and shore-personnel, ship sanitation On-signing seafarers may be asked to seafarers to travel to join a ship or to go certificates, the protection of health of complete a COVID-19-specific screening home on completion of their onboard seafarers, and operational considerations questionnaire, health self-declaration, or contracts,” said Melwyn Noronha, deputy for the management of COVID-cases similar, before going onboard ship. On- CEO of Shipping Australia. onboard ships. signing seafarers may also be required to These guidelines and protocols have have their temperature taken and recorded International guidance and been created by a broad cross-section prior to embarkation, and, indeed, continue protocols of global industry associations from to have their temperature taken throughout It is especially frustrating given the across the transport industry. The fact their voyages. existence of extraordinarily detailed that these guidelines and protocols exist Shipping companies and agents will also guidelines and protocols to help shipping show, at an international level, just how have contingency plans ready for when companies and ship agents carry out seriously COVID-19 risk management is a seafarer is deemed unsuitable to board crew changes in a COVID-safe way. That to the ocean freight industry. a ship. Seafarers may be presented guidance has been endorsed and issued with pocket guides as a memory aid to by expert global bodies such as the Plans in action standard infection prevention measures. International Maritime Organization. Seafarers are also given, and do wear, Having guidance and protocols is all personal protective equipment. The exact The IMO document, “Recommended very nice but, as anyone with a practical personal protective equipment will vary framework of protocols for ensuring safe bent will tell you, having good outcomes from company to company. Shipping ship crew changes and travel during depends on people and companies Australia has seen examples of in-transit the coronavirus (COVID-19) pandemic” actually putting strategies, plans and seafarers wearing personal protective contains 61 pages of guidance. There tactics into action. are six main protocols addressing equipment that includes gloves, masks, seafarer behaviour and activities at each Happily, ocean freight shipping companies face shields and full-body disposable stage of a crew change journey from are very active in setting up and deploying coverings together with plastic booties. COVID-19 countermeasures. home to ship, including being at an Meanwhile, on ships, there are extensive ordinary place of residence, being at an Shipping Australia canvassed its sanitation, cleaning, and access-control airport of departure and being on the shipping line members, international ship protocols to ensure that ships remain aircraft, all the way through to joining management companies, and carried out largely COVID-19 free. the ship. A similar set of six protocols overseas research to find out what the sets out the same journey in reverse for maritime industry is doing to combat the off-signing crew from the ship all the way Seafarer logistics spread of COVID-19. back to the seafarer’s home. Each of the Arranging the logistics for international protocols is divided into several sub- Shipping companies have been personal travel can be difficult. protocols. observed to use a variety of COVID-19 International aviation capacity is greatly

32 Shipping Australia Limited I Spring/Summer 2020 reduced. So seafarers may have to take and vice-versa. Sadly, police escorts ‘A ship in harbor is safe,’ he wrote, ‘but a rather circular route, hopping flight-by- may also be needed – there have been that is not what ships are built for.’ flight from one country to another to get instances of vilification of seafarers by to an end destination. That is, assuming local populations. Key points: Australia’s seafarer all the flights go ahead and, if they do go Of course, there are variations in the ahead, further assuming that a seafarer crew change crisis model, or in proposed models, around the doesn’t get bumped off any of the flights • Australian families depend on ocean world. Some plans may involve seafarers by an airline en-route. Then there are shipping for the delivery of foodstuffs, being flown into remote international problems with mandatory quarantine, pharmaceuticals, medical equipment, airports and the airport then being caps on the numbers of people allowed medical supplies, and everyday subjected to extensive cleaning. Instead into a country if the borders are open goods, of hotels being used for quarantine, remote (flight caps into Australia are a particular mining camps may be used. In some • Ships and ports need to remain fully problem), getting visas and then variations, instead of quarantine in the operational to maintain continuity generally arranging matters to ensure source country, there is quarantine in the of Australia’s supply chain, so as to that ship-seafarer arrival times coincide. destination country, and so on. enable Australian families to buy vital All these problems compound to make goods, crew changeovers more difficult than Managing risk and remembering • Ships cannot operate properly and they would otherwise be, and so shipping what ships are for safely without fresh crew companies and agents only arrange travel when and where travel requirements and Protection of the health of maritime crew, • The world fleet needs to changeover regulations are known in advance. onshore workers, and the general public is hundreds of thousands of crew well considered through thoughtful plans members, and protocols. Health is also protected by Private travel networks robust shipping industry action. • Ships and their crews need to be To get around these problems, in identified and acknowledged as a vital It is now time for all governments, including certain places around the world, such component of Australia’s supply chain, all Australian governments, to recognise as Denmark, various parties have the risk mitigation measures put in place • Fatigue leading to an error in judgment been essentially developing privately- by industry, to show leadership, and to by seafarers could be either a causal run essential worker/seafarer transit ease the way for ships to change crew, or a contributory factor (or both) in a networks. Elsewhere, models for and seafarers to get to and from ships. maritime environmental disaster, so-called “safe corridors” are being proposed. Although there is far more Why? Because no matter who we are • Ships blocking ports, either because detail than can be provided here and and no matter how far away we live of being detained or because of crew although practices may vary, the basic from the ocean, we all depend upon leaving vessels, has cost implications for methodology roughly appears to be the the transport of foodstuffs, medicines, ports, importers, exporters and for the same in the models reported to Shipping medical equipment, medical supplies, general Australian economy. ,Ultimately, Australia. Essentially, seafarers from and everyday goods from across the sea. and in a variety of ways, everyday well-known seafaring nations, such as Officials and politicians in every sector Australians will pay these costs, India or the Philippines, are being flown and at every level of government should into, or repatriated from, a crew-change • Governments should not be so blind realise that, by operating overly stringent destination country. In the source to the grave risks to which they counter-COVID-19 rules, they are country, seafarers are asked to go into are exposing Australia by allowing swapping the risk of COVID-19 with the pre-deployment centres (quarantine- seafarers to suffer, risk of stopping ships. controlled hotels) for 14 days. During • A single set of State and Federal that time, seafarers are COVID-19 tested A stoppage of shipping will collapse policies and protocols for ships and, if illness-free, they are then flown economies (just think of the value of to access , ports and to promote out of the seafarer source country and Australia’s coal, iron ore, gas, and grain commercial maritime crew health into a crew change country. With further exports) and could lead to a shortage and welfare should be followed by all tests on arrival (temperature testing, of vital goods in the pharmacy and in governments, and by all government health-screen questionnaires and so on) supermarkets. departments and agencies, seafarers are bundled into private land Given that, only a few months ago, transport (people-carrier type vehicles) • Australia’s international reputation people were physically fighting in the and are either sent temporarily to a is being adversely affected by supermarket over a perceived shortage controlled centre (quarantine-controlled governmental insistence on neglecting of toilet paper, we can only shudder hotels usually) or are sent directly to the legitimate humanitarian needs at the potential for public unrest if the ship. A similar process happens, of seafarers and the legitimate medicines and foodstuffs ever actually but in reverse, to repatriate a seafarer. logistical needs of the supply chain. fall into short supply. During transit to/from the airport or Australia’s international reputation ship, seafarers may be provided with The author J.A. Shedd said it best, is also being adversely affected by packed lunches to minimise exposure perhaps, nearly 100 years ago, when he blatant governmental disregard for of seafarers to the local population wrote wise words about risk management. international law.

Shipping Australia Limited I Spring/Summer 2020 33 MEMBER SPOTLIGHT

Mathilde - the first ship acquired by Wilh Wihelmsen in 1865

Celebrating 125 years of partnership: Wallenius Wilhelmsen in Australia

By WALLENIUS WILHELMSEN OCEANIA

The Norway-based global RoRo shipping and logistics company has a long-standing trading relationship with Australia. When Captain JO Edvardsen first dropped anchor in Sydney in 1895, little did he know that it would mark the beginning of a long and fruitful trading history with Australia. Tiger carried timber from US West Coast to Sydney, and loaded wool and other general cargo destined for Europe. Fast forward more than a century since that maiden voyage, and Wallenius Wilhelmsen continues to Talabot - the first steamer acquired in 1887 support the people and businesses of Australia.

34 Shipping Australia Limited I Spring/Summer 2020 The company also exports used mining and construction equipment, cranes and steel products from Australia to key markets across the globe.

Connecting Australia with the world Wallenius Wilhelmsen vessels pay approximately 250 plus, port calls every year to the major Oceania ports of Auckland, Papeete, Noumea, Melbourne, Port Kembla Brisbane and Fremantle, and inducement calls to several ports based on customer’s requirements to the likes of Adelaide, Newcastle, Mackay and Gladstone, servicing major trade routes. Tiger - on her maiden voyage in 1895, was the first Wilhelm ship to arrive in Sydney Harbour. She carried timber from the west coast of the United States, then loaded wool and general cargo to Europe From Europe to Oceania, multiple sailings a month are offered, stopping at a number of key European ports via South Africa and North America, including Southampton, United Kingdom; Le Havre, France; Zeebrugge, Belgium; and Bremerhaven, Germany. The Americas to Oceania trade route again boasts multiple sailings a month, with port stops at Tacoma, Washington; Baltimore, Maryland; Savannah, Georgia; and Manzanillo, Panama among others. Meanwhile, for Oceania to Asia trade, there are two sailings a month to destinations including Singapore; Shanghai, China; Inchon and Masan, South Korea; and Kobe, Nagoya, Yokohama and Hitachinaka, Japan. Back on dry land, the Australian head Salome – part of Wallenius Wilhelmsen’s modern fleet offices for Wallenius Wilhelmsen’s Ocean and Solutions businesses are based in Melbourne, with 25 The company’s shared history with for the quickest passage to Europe with employees supporting ocean services Australia has many highlights. From the first wool of the season – breaking and 175 employees working across launching the first RoRo services records for the largest shipment on one land-based operations, including here in 1972 and founding Melbourne keel, in the process. at equipment processing centres in International RoRo and Auto Terminal These days, its vessels are more likely Melbourne, Sydney, Port Kembla, (MIRRAT) in 2016, to playing a pioneering to break records importing all manner of Brisbane and Perth. role in combating the brown marmorated products for global OEMs. This includes stink bug, it’s been an eventful 125 years. mining and construction equipment for Serving supply chains across the the likes of Caterpillar, Komatsu, Terex globe Supporting Australian industry and Liebherr; agricultural products for Wallenius Wilhelmsen operates eleven John Deere, Case New Holland and Today, Wallenius Wilhelmsen continues terminals at some of the largest RoRo Landpower; vehicles for BMW, Toyota, to support many of Australia’s most ports in the world, offering flexible Ford and Nissan; transport for Volvo, important industries, just as it has done processing, handling and storage, Scania and Mercedes-Benz Truck; and in years gone by. combined with strong inland connections other cargo, such as boats and yachts, via railroad and short-sea voyage. Back in January 1937 the company’s helicopters, aircrafts, mining equipment, vessel Thermopylae carried 40,011 defence equipment, power generation Last year alone, six million units bales of wool to Europe as part of the equipment, windmill blades, steel, cranes passed through its terminals, including ‘wool races’ – an annual competition and railcars. Melbourne’s MIRRAT.

Shipping Australia Limited I Spring/Summer 2020 35 MIRRAT Terminal in Melbourne

Operating as the only RoRo terminal Australia’s top performing terminal – including shipping lines, truckers at the port of Melbourne, MIRRAT In its first full year of operations (2017- and OEMs – both time and money by has a strong environmental focus. 2018), MIRRAT successfully absorbed allowing them to track cargo on their Sustainability is at the heart of the a 300 per cent increase in volume and smart devices. For example, truckers facility’s pioneering design, which boasts vessel calls, without a single vessel can see gate information and are notified LED lighting, a rainwater collection delay. In recognition, last year it was when their cargo is ready to be picked system and a 100kW solar array to awarded the Terminal of the Year prize at up, whiles OEMs can see when their power our administrative building. the Daily Cargo News Australia Shipping units are discharged from a vessel. Spread across 35.7 hectares are three and Maritime Industry Awards. In addition, MIRRAT recently introduced berths, indoor and outdoor storage At MIRRAT, avoiding delays goes hand- a new booking system to improve facilities and equipment solutions in-hand with enabling customers to keep cargo delivery and collection. By designed to deliver lifting capacity track of their cargo. Cue the terminal’s communicating real-time information of 120 tonnes. MIRRAT also offers cloud-based operating system, iTOMs, on the status of cargo moving through both short and long-term storage, which is currently being rolled out at the terminal, the system allows truck quarantine treatment for seeds and other Wallenius Wilhelmsen terminals operators to better plan their journeys, bugs, cargo surveying, crane lifts and across the globe, following a successful helping to prevent delays. This also has documentation preparation, as well as trial at MIRRAT in 2019. a positive impact for OEMs and freight cargo transhipment and distribution and forwarders, as it ensures cargo is being emergency mechanical work. The system saves terminal customers delivered and collected on schedule.

Wallenius Wilhelmsen in Australia: 1895 to today

1895 1972 1995 1997 1999 1999 Wilh Wilhelmsen First RoRo services Wallenius Lines Wilhelmsen Lines Wilhelmsen Lines WWL commences to Australia commences commences and Wallenius commences services to (ScanAustral joint services to direct services Lines merge to vehicle Australia​ venture with vessel Australia​ from Australia to form Wallenius processing in Tricolor)​ China​ Wilhelmsen Australia​ logistics (WWL)​

36 Shipping Australia Limited I Spring/Summer 2020 Sustainable logistics for a world in On land, 120 equipment and vehicle The company’s purpose-built heat motion processing centres handle millions of treatment facilities at Baltimore in the products each year. A wide variety US and Zeebrugge in Belgium, can Wallenius Wilhelmsen’s purpose is to of technical services are also offered, treat up to 120 and 540 cars a day build sustainable supply chains that including pre-delivery inspections, respectively. Meanwhile Zeebrugge’s enable more efficient, environmentally accessorisation, assembly and fumigation facility can treat 80 units of friendly solutions for land and sea disassembly and repairs – all of which rolling equipment or breakbulk cargo transport. are designed to improve speed to every day. Whether in the automotive, rolling market, reduce inventory costs and equipment or breakbulk industries, the lead times, and meet the needs of local Looking to the future company offers a range of services to markets and customers. help customers optimise their logistics, Much like the intrepid Captain Wilhelmsen, Wallenius Wilhelmsen meet market needs, cost efficiencies and Combating the threat of stink bugs environmental objectives, while forging takes a proactive approach to the most efficient path to market. Of course, building sustainable supply uncovering the future needs of its chains also means curbing the spread customers and markets. From A global network and high frequency of invasive species such as the brown delivering wool in the 1930s to sailing schedules – 125 vessels service marmorated stink bug. Ensuring becoming the first Australian line 15 trade routes to six continents – cargo is delivered pest free is a priority, to offer refrigerated cargo space in has helped to build a track record and the company works closely with 1949 to forging relationships with of quality, innovation and personal customers across the world to protect the the agricultural and heavy machinery service, bolstered by 158 years of environment in Australia and New Zealand. industry in the 80s, the company is shipping experience. constantly evolving how it trades in During the 2019-20 stink bug season, Australia. Last year, Wallenius Wilhelmsen there were no incidents of stink bugs in vessels made 1,200 sailings and cargo onboard Wallenius Wilhelmsen Australian partnerships have been 8,200 port calls, transporting 4.5 vessels bound for Oceania. central to the development of Wallenius million units of cargo in the process. Wilhelmsen - here’s to the next 125 From the strict requirements imposed The versatile fleet includes more years! than 50 RoRo vessels, capable of regarding certified treatment, to carrying cargo up to 6.1 metres continuous communication with high, 12 metres wide and 400 tonnes customers about the regulations, in weight, which is loaded using everyone involved in the supply chain specialist handling equipment via a is working towards the common goal of stern ramp – a secure and efficient minimising biosecurity risks, whether at process that avoids lifting products. terminals, during transit or on arrival at the destination port.

2000 2001 2016 2016 2017 2019 Wallenius The MV Tampa WWL opens WWL strengthens Wallenius MIRRAT awarded Wilhelmsen rescues 438 MIRRAT position as Wilhelmsen is Terminal of the commences survivors off the environmental created, merging Year by DCN heavy equipment Australian coast forerunner by Wilhelmsen processing 2016 moving to utilise and Wallenius services in WWL awarded Marine Diesel in assets and Australia​ Australian all coastal areas joint ventures, Biosecurity Award containing the for role in combating WW Ocean, WW Brown Marmorated Solutions and Stink Bug (BSMB) EUKOR brands

Shipping Australia Limited I Spring/Summer 2020 37 TRADE ASSOCIATIONS

A single voice for customs brokers and forwarders in Australia

By PAUL DAMKJAER, chief executive officer, International Forwarders & Customs Brokers Association of Australia

The Boards of the Customs years through the Customs Agents freight forwarding services, hence the Federation of Australia, the Customs reason that the former CBCA added Brokers and Forwarders Agents Institute of Australia, the Customs forwarders to become the CBFCA. Brokers Council of Australia Inc. and then Council of Australia The Boards of both entities recognise into the Customs Brokers & Forwarders they have provided advocacy and (CBFCA) and Australian Council of Australia Ltd (CBFCA). input from very experienced and Federation of International qualified individuals with the National Forwarders (AFIF) have AFIF - The Australian Federation of Regulators, as well as training their reached agreement to form International Forwarders (AFIF) was members. The merger with the CBFCA created in July 1996 following the will bring together more experience a single peak body and merger of two distinct organisations, in the Customs and Border area, and to change their current namely: The Australian Federation of continued focus on international freight Airfreight Forwarders - ‘AFAFF’, formed forwarding, logistics and training. business names to the (as a Federal body) in 1977, and The International Forwarders International Forwarders Association The Boards consider that a single peak of Australia -’IFAA’, representing the body will be better placed to respond to and Customs Brokers Seafreight Forwarders (formed in 1976). members’ issues and concerns, with far- Association of Australia The merger was deemed to be a natural reaching experience and a greater united progression which mirrored the business front for our industry. (IFCBAA) Ltd, which of its combined membership, most of IFCBAA will continue to operate as a commenced operations on whom were active in both air and sea not for profit organisation for the benefit 1 July 2020. transport. Existing and new members of members, offering a wider range of could elect to be represented in the Air services and products, with greater and/or Sea division of the new entity. economies of scale. History Future direction An interim IFCBAA board, comprising five current directors from each of both CBFCA - In Sydney on 30 August Having listened to members over recent AFIF and CBFCA (ten persons in total), 1904 fourteen businessmen came years, the Boards of both AFIF and will remain in place for the first two together to determine ways and means CBFCA have agreed that the industry years, until July 2022. for businesses to be appropriately requires a single peak body to represent represented in terms of customs and the commonality of interest between The chairperson will rotate annually during transport issues. At that meeting they international freight forwarding and this two-year period. At the conclusion of agreed: customs clearance functions, in the the two-year period, elections amongst the “A meeting of licenced custom house provision of international trade logistics combined membership will create a new agents be held for the purpose of and supply chain management services. Board of Directors. forming a Licensed Customs House This is also in recognition that when AFIF chairman, Paul Golland said, Agents Association.” both bodies were formed, their business “I believe a single peak body is The Customs Agents and Transport concerns were on a different path. something industry has been wanting Association of New South Wales was Since then, many AFIF members have for a number of years. It allows us born. The foresight of these strategic attained Corporate Customs Licences to speak for industry with a single thinkers was honed over the next hundred and employ Licenced Customs Brokers. voice when dealing with governments, Customs Brokerages have been offering airlines, shipping lines, suppliers,

38 Shipping Australia Limited I Spring/Summer 2020 and stakeholders in the international • WA Port Operations Taskforce The contemporary new IFCBAA logo and logistics supply chain. This has to be website represents the bringing together • Department of Agriculture Cargo advantageous for all of our industry“. of two not-for-profit specialist industry Consultative Committee (DCCC) bodies to form a single peak body to CBFCA chairman, Adam Butler said, • DCCC-BMSB sub-group represent the commonality of interest “Bringing together AFIF and CBFCA between international freight forwarding to form a single peak body was • Australian Border Force - NSW Trade and customs clearance functions, in the overwhelmingly endorsed by members. Facilitation Forum provision of international trade logistics IFCBAA will provide an increased • Australian Border Force - Victorian and supply chain management services. range of benefits for members and ABF Industry Engagement Forum enable international freight forwarders The merge will combine far-reaching and customs brokers to have a strong • Supply Chain Advisory Network experience in international freight representative voice in the areas (SCAN) forwarding, logistics, customs/ affecting their interests. Joining forces biosecurity border activities, including into a single peak body is a historic • Australian International Trade and unparalleled professional development achievement for our industry.” Transport Industry Development Fund and training for the benefit of members. (AITTDF) IFCBAA as a single peak body will deliver IFCBAA will represent and support a greater united front for our industry, members in dealing with the following • Australian Industry Training Group on better placed to respond to members domestic and international entities. Biosecurity (AITGB) issues and concerns. www.ifcbaa.com

Domestic International IFCBAA training • Customs Advisory Board (IFCBAA • International Federation of Freight The IFCBAA International Trade and CEO - ABF commissioner appointee) Forwarders Associations (FIATA) chair IFCBAA, Advisory Body Logistics College (ITALC) as the • National Committee on Trade International Affairs (ABIA) An IFCBAA Registered Training Organisation (RTO Facilitation (NCTF) representative on the FIATA Advisory 30772) will continue to deliver the Body, Safety & Security (ABSS) following training: • Trade Facilitation Initiatives Working Group (TFIWG) • Federation of Asia-Pacific Aircargo • Diploma of International Freight Associations - Secretariat and chair Forwarding • Trade and Customs Legislation (IFCBAA chair) Working Group (LWG) • Diploma of Customs Broking • International Air Transport Association • Trade and Goods Compliance • Continuing Professional Development (IATA) Advisory Group (CAG) (CPD) Program, ABF accredited • IATA Cargo Executive Council, SW • Air Cargo Security Industry Advisory • Continued Biosecurity Competency Pacific Forum (ACSIAF) (CBC) Program accredited by DAWE • The International Air Cargo Association • Australian Trusted Trader Industry • Other Dangerous Goods and Air/Sea (TIACA) Advisory Group (ATTIAG) Accreditation short courses required • International Federation of Customs for industry • ACSIAF International Working Group Brokers Associations (IFCBA) This is truly an exciting time with • ACSIAF Domestic Working Group The IFCBAA Mission is to be the single and both entities coming together into a • Rail Access Strategy - Port of most influential voice for the international single industry body with a combined Melbourne freight forwarders and customs brokers in experience second to none. Australia, and to promote the professional • Port Transport & Logistics Taskforce development of our members through (PTLT - NSW) education and training.

8,100 TEU ANL Gippsland passing K-Line Ro-Ro Image: CMA-CGM

Shipping Australia Limited I Spring/Summer 2020 39 TRADE ASSOCIATIONS

Supporting the development of international trade – the ITDFund By BRYAN SHARKEY, chairman ITDFund

The Australian International Trade and • Shipping Australia Limited, operations, but also guided school leavers into the trade and transport industry, where Transport Industry Development Fund • Conference of Asia Pacific Express previously these individuals may have (now known as the ITDFund) was Carriers, established by Tradegate as a not-for-profit sought their careers elsewhere. organisation to provide grants for projects • Export Council of Australia. aimed at delivering solid enhancement to Australia’s international trade and transport Objectives of the ITDFund Recently completed and industry. The ITDFund has made a significant contribution to the promotion of The Australian International Trade near completed ITDFunded and Transport Industry Development international logistics as a career, and the Projects development of more efficient international Fund is a not-for-profit organisation trade through its funded projects. whose objective is to provide grants to Australian international trade and AFIF Crucial Skills project The most recent and currently on- History of the Fund transport industry participants to promote, support and enhance: going project is the AFIF Crucial Skills During the days of industry interface project. This project offers, via Make • E-commerce projects in Australia with regulatory agencies through Your Move digital campaign (website, which benefit commercial, operational, a single reference point, Tradegate videos, and related social media), school Australia Limited represented information legislative, and regulatory processes leaver employment guidance to the technology interests of service providers supporting Australia’s International shipping industry. The strategy is to in international trade logistics and supply Trade and Transport Industry; provide support to careers advisers and chain management. With changing • Projects in Australia to assist industry in conjunction with a Make Your circumstances in relation to how business Australian industry to facilitate interfaced with government and regulatory Move, via a field officer. In addition, international trade with its trading agencies, Tradegate no longer perceived the provision of financial incentives to partners; the need for the function, which it had companies in our industry to trainees. carried out for over 25 years. • Projects in Australia that encourage more efficient international supply The Board of Tradegate resolved to IFCBAA ITDF Scholarship Program chain solutions for Australian industry; dissolve the entity and transfer any The International Forwarders and Customs available funds to an entity which Projects in Australia aimed at measurably Brokers Association of Australia (IFCBAA) represented the interests of industry in increasing the level of skills and training in partnership with the International Trade terms of project management and other in the international trade and transport and Transport Development Fund (ITDF) tangible deliverables. That fund was industry, including participants in that established the IFCBAA ITDF Scholarship the Australian International Trade and industry. Program in 2018, awarding scholarships in Transport Industry Development Fund 2019 and 2020. with a board made up of representatives from not-for-profit industry associations Successful applications The scholarships delivered by IFCBAA’s linked to the key areas of trade and Successful applications need to identify International Trade and Logistics transport, these being: demonstrable benefit to Australia’s College (RTO 30772) aim to support international logistics and transport the objectives of the ITDF, and to assist • Australian Federation of International industry and meet one of the objectives those who are committed to our industry Forwarders Ltd., of the ITDFund. Subsequently, there have sector but may not have the means to • Customs Brokers and Forwarders been several projects which have been invest in further education. The IFCBAA Council of Australia Inc., funded by the ITDFund that have assisted ITDF Scholarship Program offers two the industry to not only improve overall Diploma Scholarships as follows:

40 Shipping Australia Limited I Spring/Summer 2020 • TLI50816 Diploma of Customs Broking • Industry’s priorities and ambitions Air cargo, safety and in relation to the facilitation of • TLI50316 Diploma of International international trade. security Freight Forwarding Please note that the Single Window The IFCBAA ITDF Scholarship will Cargo Guardian Report was part of this Trade Facilitation announce the 2021 programme in Cargo Guardian is a technology solution Project. November 2020, accepting applications that will deliver a number of benefits to from member applicants until 15 Australia’s air January 2021, ahead of semester cargo industry, in relation to safety and commencement on 25 January 2021. Review of licensing provisions security compliance management. The facility also CSU Australia’s National This project is designed to review the provides a valuable tool to standardise security declarations in the industry, Committee on Trade appropriateness of the current licensing regimes applying to depots, warehouses, whilst also allowing Facilitation Project and agents and customs brokers, under the industry to rapidly embrace global the Customs Act and the Quarantine Act security initiatives designed to safeguard Centre for Customs and Excise and Regulations. the industry. Studies (CSU) Review of ‘Accredited Operator’ schemes The project seeks to develop an industry The end is in sight position for presentation to Government on the membership, mandate, and CSU Since its inception the ITDFund has governance arrangements of the NCTF. This project seeks to develop an industry been active over the 13 years supporting This will involve an analysis of the current position for presentation to Government various projects that meet the fund’s NCTF organisational arrangements, its on the various forms of ‘Accredited objectives. Whilst the ITDFund will priorities, work plans and activities to Operator’ schemes that are in place, continue to support projects as best it date, in the context of: under development, or being considered can given its diminishing resources, it by Australian agencies, including is now close to reaching the conclusion World Trade Organization (WTO) policies recommendations on how they should of its primary purpose. The eventual and recommendations: be progressed. In particular, it seeks to windup of the fund is envisioned by the end of 2021. • International trends and identify options that will guard against developments, any possible erosion of the Australian For further details on project funding international trade and transport application and completed projects, • The broader Government agenda with industry’s competitive position in the please refer to the ITDFund website potential linkages to trade facilitation, global marketplace. www.aittidf.org.au and

Shipping Australia Limited I Spring/Summer 2020 41 ANTARCTIC INNOVATION

RSV Nuyina arriving in Vlissingen to prepare for final commissioning in late 2020 Image: Damen

Global pandemic leads to innovative solutions for Australia’s new icebreaker

How do you respond when you’re in Serco Australia has led the design and “Thankfully, we had an expert team on charge of delivering one of the world’s build of the vessel for the Australian the ground, led by our Construction most advanced icebreaker vessels in Antarctic Division since 2016, and will and Commissioning manager, who has the middle of a global pandemic? This operate and maintain the ship when it overseen complex build projects around is the challenge Serco RSV Nuyina arrives in its home port of Hobart in 2021. the world.” project director, David Astbury, has A complex project in its own right, the Serco introduced a process to enable faced this year, with international travel build was nearing completion before the local shipbuilding team to transmit restrictions from COVID-19 requiring COVID-19 restrictions halted final live data between Romania and innovative thinking to keep Australia’s commissioning activities in the Damen Australia to allow the analysis of test new icebreaker moving forward. shipyard in Romania earlier this year. data by project representatives and One of the most advanced vessels of its technical experts, remotely. “The internal fit-out of the Nuyina was kind in the world, the RSV Nuyina is a complete, and we had just turned the In June, the team undertook remote scientific research platform, icebreaker starboard propeller for the first time testing of the incline experiment, a vital and resupply ship in one. At 160.3 before lockdown hit,” Astbury explains. test to measure the weight and centre metres long and 25,500 tonnes, the of gravity of the ship. The trial saw vessel will be powerful enough to break “Safety was our top priority. The build shipbuilders on the ground conducting 1.65 metres of ice at a continuous speed programme was paused, and we had to the testing activities, while Serco of three knots, quiet enough to allow start thinking about alternative strategies and the Australian Antarctic Division researchers to use acoustic instruments, to mitigate the impact of what was shaping monitored the physical trials using and large enough to resupply two of up to be an unprecedented pandemic.” video conferencing technology, survey Australia’s four Antarctic and sub- When construction safely recommenced, data and still and video images taken Antarctic stations in one voyage. the biggest challenge faced by the throughout the testing period. A $1.91 billion investment by the project team was access to the shipyard Australian Government, the Nuyina is the Over six days, hundreds of messages for the Australian Antarctic Division and centrepiece of the Australian Antarctic were exchanged across continents, while key project representatives responsible for Strategy and 20 Year Action Plan. the on-site team worked meticulously overseeing Harbour Acceptance Trials. to prepare the vessel and conduct the

42 Shipping Australia Limited I Spring/Summer 2020 testing. It is believed to be the first use of remote monitoring technology for such trial activities in the world. The remote trial proved successful, but the project still faced uncertainty about when the original equipment manufacturers, based in Western European countries, would be able to access the shipyard to test the Nuyina’s propulsion, electrical and navigation systems. These critical tests mark the final stage of harbour testing before sea trials. Faced with the possibility of months of further travel restrictions to Romania, the project team made the decision to tow the vessel to the Netherlands to enable work to progress. Prior to departure, 409 internal compartments underwent final inspection, Image: Damen and 680 kilometres of cable were laid throughout the ship. On 3 August, the Italian-registered tug Eraclea departed Galati for a 6,800 kilometre journey, travelling through the Black Sea, the Mediterranean Sea and the Strait of Gibraltar, before reaching the port of Vlissingen in the Netherlands in late August. The move to the Netherlands marked a significant step forward in the project and will enable final commissioning to be completed by the end of the year. Astbury said the challenges of working on a complex build in the COVID-19 era required an innovative and agile approach. “While the pandemic has delivered unprecedented challenges to the project, the team has worked in consultation with our customer the Australian Antarctic Division and shipbuilder Damen, to ensure Science office and adjoining science operations room Image: Damen final commissioning work can continue on the vessel in the Netherlands safely and effectively. “This move will ultimately ensure the Nuyina is ready for service next year.” Sea trials are expected to commence in the North Sea in late 2020, with ice trials taking place off the coast of Norway in early 2021. Despite the challenges of the project, Astbury said there was excitement building for the arrival of the vessel in Hobart. “The Nuyina is a state-of-the-art vessel that will deliver unprecedented capability to the Australian Antarctic Program. When she undertakes her maiden voyage to Antarctica in the 2021/22 Antarctic season, she will be the most advanced scientific research and supply vessel in the Southern Ocean. “The Nuyina truly is a ship of the future.” For more information, Image: Damen visit www.serco.com/icebreaker

Shipping Australia Limited I Spring/Summer 2020 43 RISK MANAGEMENT

Mitigating risks of uncollected cargo

By PEREGRINE STORRS-FOX, risk management director, TT Club

Uncollected cargo has long been a How to identify and prevent the risk It is prudent to implement sufficient challenge for stakeholders in the supply TT Club’s experience has shown that the management controls so that proactive chain. Notwithstanding the attention, freight forwarder’s first notice of an issue steps can be taken to prevent the debate and advice around the topic, is typically an approach by the shipping problem. It is worth collating data in it remains at the forefront of logistics line to claim their losses, either because relation to: operators’ minds. Every year the delay the forwarder is mentioned as shipper or • ‘risky’ uncollected cargo hotspots; or failure of the consignee to collect consignee on the ocean bills of lading or cargo, results in substantial storage, because it arranged the booking. The • non-reliable customers; and demurrage and detention costs. Such freight forwarder may be the only entity • commodities most likely to be issues are invariably complex and require that is traceable – and likely to have liability abandoned. expensive management time to resolve. insurance, increasing the prospects of Once the problematic trade routes Inevitably, there are many potential recovering the costs. While the forwarder or areas with frequent uncollected causes of cargo being abandoned at should always check the definition of cargo incidents are identified, the some point in the supply chain, but often “Merchant” on the ocean bill of lading, relevant departments (commercial and the resultant cost and headache lands in typically this is broad and consequently operations) need to be made aware, such the lap of a freight forwarder or logistics entitles the shipping line legally to demand that informed decisions may be taken operator. It could be a problem in the payment from the forwarder. regarding any bookings that present sale contract process, such that title to heightened risk. Certain socio-political the goods is uncertain. It could be that The freight forwarder circumstances (such as sanctions) might the consignment is no longer wanted. also influence the level of risk in certain However arising, appropriate risk may be the only entity that is jurisdictions. management procedures can be put in traceable – and likely to have place aimed at proactive resolution and liability insurance In the event that the business is minimising liability. accepted, it is advisable to establish

44 Shipping Australia Limited I Spring/Summer 2020 early contact with local agents and The shipper and the consignee need to to proceeding with the destruction or the correspondents at the port of discharge, be contacted immediately, put on notice auction of the goods. seeking their support and advice as about the situation, and given a short During the course of any negotiations to how to minimise the risk. It is also deadline to collect the goods and settle with cargo interests, take steps to prudent to keep up-to-date with trends any costs that have already accrued. explore options to minimise storage and developments at the destination. Reassurances may be given, but the and other costs. It is also prudent Consignees that have failed to collect logistics operator should remain on full to ensure that the shipper and the their shipments in a timely fashion in alert until the problem has actually been consignee receive regular updates on the the past are more likely to be repeat resolved. Formal notification must be breakdown of accrued/accruing costs. offenders; future bookings for the sent immediately after the expiry of the same client should be scrutinised and ‘free time’ and any provided deadline, When such situations arise, forwarders potentially declined. explaining the parties’ rights and should consider that cover may be obligations under the contract of carriage provided under their liability insurance, 201The8 most D frequentCN problematicSHIP PshipmentING & MARITIME and/or other incorporated trading and take steps to notify the insurer at the types include personal effects, scrap conditions, specifically warning that any earliest opportunity. TT Club provides INDand/orUS wasteTR (metals/paper),Y AWA usedR DS further delay or failure to take delivery global claims assistance through its tyres, used computer equipment and, will result in legal proceedings. own offices, its network partners and inevitably, illegal trades, such as wildlife correspondents; such local expertise trafficking and counterfeit products. If, notwithstanding these steps, the often facilitates alternative solutions and FRGeneralE counter-partyIGH risksT are cargo interests fail to take action, clear minimises costs. considered in this due diligence advice instructions must be sought from the document -. https://www.ttclub.com/ customer (often the shipper), such as FOnews-and-resources/publications/RWARDEchangingR theO nameF of the consignee, Conclusion stoploss/stoploss-21---due-diligence/ modifying the destination of the shipment Implementing well-considered or arranging the re-export of the goods procedures, resulting in taking action THQuickE reaction Y isE of theA essenceR to the port of loading. without delay, can prove critical when handling cases of uncollected As soon as there are indications that It may be that the cargo interests reach or abandoned cargo. While these collection may be delayed, it is important a decision to abandon the cargo. Where recommendations provide useful to react swiftly to minimise the potential this occurs, it is prudent to seek to general guidance, each case has to be exposure. Often concerning low value secure letters of abandonment from both LINKING AUSTRALIA TO considered on its own merits. Simple commodities, the associated costs can the shipper and the consignee, including message: be proactive and seek quickly exceed the commercial value, a clear undertaking that they are jointly assistance from local experts for specific THmerelyE increasingWO theR likelihoodLD the ANandD severally TH responsibleE for all accrued advice and practical recommendations. shipment remains uncollected. costs. WORLD TO AUSItT willR be necessaryALI toA arrange an We hope that you have found the above associated costs inspection of the cargo to ascertain interesting. If you would like further information, or have any comments, can quickly exceed the its condition and decide whether to proceed with disposal or salvage sale. please email us, or take this opportunity IMcommercialPOR value,T Smerely The shipper and the consignee should to forward to any colleagues who you increasing the likelihood ideally grant clear approval to deal with may feel would be interested. the shipment; otherwise a court order We look forward to hearing from you. EXPthe OshipmentR TremainsS may be necessary. Once a letter of uncollected abandonment on behalf of the cargo Peregrine Storrs-Fox DOOR-TO-DinterestsO hasO beenR obtained, it should be Risk Management Director, TT Club passed to the relevant authorities prior *First published in TT Talk, 2 June 2020 More than 100 Offices Worldwide Over 1400 Ports Covering 31 Countries The shipping industry association for ship owners, operators and agents

SAUSTRALIA hipping to & fro AUSTRALIAm Sydney/Brisbane Melbourne/Fremantle/Ade//l aPromotingide the shipping industry across the wider community // Trusted by government and industry for quality advice // Advocating policies that enable safe, sustainable and environmentally sound shipping operations Shipping Australia Limited BY SEA OR AIR// Contributing shipping advice to inform governments policy and regulatory development Annual Review2019 Shipping Australia Limted Annual Review 2019 // Supporting members with technical matters and regulatroy compliance WE'RE YOU'RE// ProvidingTE supportA servicesM for liner shipping TO GThe EfutureT of IT THEJoinR usE and have your voice heard POWER Membership enquiries - [email protected] Contact u s for your most competitive rates & servShippingice Australia Limited - We know shipping.

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AUSTRALIA Shipping AustraliaStarting a Conversation Limited on Nuclear Spring/Summer Power 2020 45 I SPRING/SUMMER 2019 WWW.GLOBELINK.COM.AU CYBER-SECURITY

Preventing the ghost in the machine

By JIM WILSON

It was a relatively newly-built ship. It had Malicious actors data or prevent the operation of assets, a power management system that could In the literature, there are several different pending payment. be connected to the internet for software categories of malicious actor, all of which Finally, there are those who seek to updates. pose a grave threat given that they could advance their political cause, whatever compromise safety of life at sea, the And it was riddled with malicious software. that may be. These could be a so-called preservation of the marine environment “hacktivist” (a portmanteau of the words The system was thoroughly and the protection of valuable property. “hacker” and “activist”) or, worse, they compromised with a “worm”, which Firstly, there’s the disgruntled or rogue could be terrorists. is computer jargon for self-replicating employee who wants to get revenge or malicious software (‘malware’). otherwise cause trouble for the employer Back to the ship and its dormant It could create its own files. It could or its suppliers/customers. worm create its own folders. It was actively Then there’s the hacker for fun-and-glory, It was discovered that the worm trying to connect to the internet. who is doing it for the amusement and had been installed into the power the test of their abilities. Dangerous management service by a portable USB- Why? It was trying to communicate with though they are, there are worse connecting device that had been used a “command and control” computer malicious actors lurking in cyber and during a software installation. A cyber- somewhere in the world so that it could physical-space. security firm discovered that the worm get its next set of instructions. had compromised all servers associated Another threat is from government with the system, and that the dormant- The only reason it did not actually connect intelligence agents or government- worm had been in the system for 875 days. to the internet was because it actually sponsored hackers. Knowledgeable and could not connect to the internet – that well-resourced, they seek to infiltrate Further details of this incident have facility had been disabled by design. systems, gather data and intelligence, not been provided in the document and potentially render assets vulnerable “Guidelines on cyber security onboard The ship operator’s IT department to attack at a later date. ships”, which has been jointly provided decided one day to visit the ship to test by industry bodies BIMCO, CLIA, ICS, Criminal gangs also pose a threat. They for vulnerabilities and to find out if it was Intercargo, Intermanager, Intertanko, IUMI, seek to infiltrate systems and collect safe to connect the power management OCIMF and the World Shipping Council. system to the internet. data, but they have the aim of collecting money through some kind of extortion. That’s when they found the worm. They could, for instance, seek to lock-up

46 Shipping Australia Limited I Spring/Summer 2020 A chilling incident by maritime administrations around the based systems has created an increasing The dormant-worm incident is chilling for world, which have translated it into national need for cyber risk management in the a host of reasons. Only two decisions law. So, for instance, in Australia, the maritime industry. Compared to other prevented the situation from being much Australian Maritime Safety Authority has industries such as military, financing, worse. Firstly, there was the original, given it legal effect in Marine Order 58 by airlines, cybersecurity related studies deliberate, decision not to connect the requiring owners of Australian and foreign- in the maritime industry are sitting system to the internet and, secondly, flagged vessels to comply with, among at the backseat (for example, ten to there was a decision to carry out an IT other things, the ISM Code. Ship operating twenty years behind other computer- audit before connecting the system to companies, and their safety management based industries)… cybersecurity in the the internet. systems, must be audited by a maritime maritime industry needs to be addressed administration or recognised organisation, in urgency,” they write. Then there’s the question of why the for compliance with the ISM Code. attack took place. Was it simply malware To err is… ? that had somehow randomly found its IMO guidance way onto a device that a technician Readers may be wholly unsurprised just happened to pick up and use that Back in July 2017, the International to learn that the root cause of a lot of day? Or was it a situation involving an Maritime Organization set out its compromised systems was nothing intelligence agent? A criminal gang guidelines on Cyber Risk Management in more than extraordinarily basic failures in member? A terrorist? MSC-FAL.1/Circ.3. computer security management. These included the use of outdated IT systems It defined “maritime cyber risk” as The incident also shows that the so and password-related failures. called “air-gap” (that is, not being a “measure of the extent to which a internet-connected) offers little technology asset is threatened by Companies need to have a layered protection. Then there’s the fact that a potential circumstance or event, defence. There are some cheap and a portable storage device could be which may result in shipping-related easy tactics that can be adopted, such plugged into the ship’s systems at all. operational, safety or security failures as as requiring longer and more complex As any seafarer will tell you, plenty of a consequence of information or systems passwords. Updating software in people come aboard ships brandishing being corrupted, lost or compromised”. computers and systems is vital, as is laptops, portable devices, USB sticks. The same document added that the goal having good anti-malware software on Customs agents, on-signing seafarers, of cyber risk management is to ‘support networks. safe and secure shipping, which is ship agents, inspectors of all kinds. Any But the biggest exploitable vulnerability operationally resilient to cyber risks’. of them – and others too – could well be is posed by the people that staff looking for a slot to plug in their devices. As computer and information technology companies and who crew ships. has advanced, bringing huge benefits Is that an innocent act? Or the beginning “We found that the most fierce kind of along the way, there has been somewhat of something more sinister? threat comes from phishing and human of a merger of information technology error. These include impersonation Unfortunately, the dormant-worm (technology that manages data) and emails, downloading of files. Phishing incident is no mere isolated event. The operational technology (technology that was the highest threat,” Dr Vera Zhang industry wide guidelines give plenty of uses data to monitor, control and operate told Shipping Australia. examples of computer malware causing physical processes and devices). Add potentially catastrophic problems. For in remote connectivity and networking of “An attack may happen because one instance, there was the technician who companies and ship-based assets, and person clicked one link or downloaded discovered computer viruses lurking in it is clear that ongoing automation and one attachment. It’s about awareness of a new-build ship’s electronic charting digitalisation has increased the cyber-risk cyber-security. In very large companies, display system. And there were ship to ships and the maritime industries. employees may receive an email from agents who accidentally infected a top management, and they may not have maritime company’s computer networks Academic study: an urgent need their awareness in place and they just with ransomware (software that encrypts click,” Dr Zhang says. data until money is paid to a criminal Dr Vera Zhang and Dr Wendy Shi of the organisation) by sending infected emails Australian Maritime College, along with “Based on our research, we found that to the company. researchers Changki Park, Christos respondents were aware of these cyber- Kontovas and Chia-Hsun Chang of security attacks and issues. They just Liverpool John Moores University in don’t realise that it is so serious. It has Cyber security – international the UK, recently carried out a study to not happened in their companies before. regulation evaluate maritime cybersecurity. Many just don’t have an awareness of It is because of such threats that, from 1 the critical nature of attacks.” January 2020, the International Maritime They were interested in the area, as there So, a vitally important step for any Organization’s Resolution MSC.428(98) appeared to be a dearth of published company is to create a culture of cyber- took effect. The resolution affirms studies and literature on the topic but security. That’s going to take education that an approved safety management there were plenty of media reports of and training. system should consider cyber risk maritime cyber security incidents. management in accordance with the What the academics found does not “Our message would be to boost cyber- objectives and functional requirements make for pleasant reading. security awareness among all levels of of the International Ship Management staff, and boost cyber-security culture. Code. Secondly, it encourages maritime “Risk management is fundamental to We have to enhance cyber security administrations to ensure that cyber risks safe and secure shipping operations… awareness. If everyone could have are appropriately addressed in safety it has traditionally been focused on such cyber security awareness then IT management systems. operations in the physical domain, can [do such things as] install malware but greater reliance on digitisation, protection,” Dr Zhang explains. This resolution has been given legal effect integration, automation and network-

Shipping Australia Limited I Spring/Summer 2020 47 DIGITALISATION OF SHIPPING

Digital interoperability key to future-proof efficiency in container shipping

By THOMAS BAGGE, chief executive officer and statutory director of Digital Container Shipping Association (DCSA)

COVID and the case for digital container shipping industry, providing simplify and clarify the booking process, standards unprecedented levels of efficiency, it will provide visibility into container innovation and customer service. But to whereabouts and status throughout the COVID-19 has resulted in unprecedented digitalise the supply chain from end to end, container journey, thus helping establish disruption to the mechanics of most IT solutions must be interoperable at every trust between all parties. Once trust economies, placing a major strain on the link in the chain. This requires widespread through transparency is established, real world’s supply chains, including essential adoption of digital standards such as those innovation can occur—innovation that will linkages relating to food and medicines. DCSA and its members and collaborators, enable industry-wide digital transformation. The current state of supply chain are working to develop. logistics has exacerbated this strain, DCSA digital standards enable creating unnecessary delays caused by manual and paper-based processes that Interoperability enables visibility interoperability with real-world are still used in some vital links in the and innovation benefits chain, including container shipping. Interoperability is the ability of computer With nine of the top eleven ocean systems or software to exchange and carriers as members, DCSA aims to Take for example the bill of lading make use of information. Currently, be the de facto technology standards (B/L). In the vast majority of container container shipping lacks end-to-end body for the container shipping industry. journeys, B/Ls are still being printed on interoperability because it lacks a Working in close conjunction with our paper and passed from hand to hand common approach to technology. This carrier members, select stakeholders, as the container passes from vehicle makes information exchange between solutions providers, industry regulators to vehicle, from land to sea, and from parties unnecessarily difficult and and other standards bodies, DCSA has country to country. As a result of the aggregation of data challenging. As several ongoing initiatives that address pandemic, cargo is getting stuck in ports a result, many container shipping some of the most impactful and urgent waiting for paperwork to be delivered by processes provide a digital experience needs in the industry. flights that have been delayed. Having that is far inferior to that of telco, banking Our initiatives can be grouped into five the electronic bill of lading (eBL) as the and more digitally advanced industries. dominant format for bills of lading would categories, with standards that are reduce or eliminate such delays. Take booking. Critical information published or targeted for publication by such as arrival times and available the end of 2020, listed below: Consider also that every year, the space is often unreliable. And during • Industry Blueprint—The DCSA mishandling of reefer containers results the container journey, transport chains Industry Blueprint establishes a in huge losses for companies that rely often appear as “black boxes” to cargo consistent vocabulary and proposes on cold-chain logistics. Currently, it is owners. Containers are lost from view standards for container shipping difficult for cargo owners to track the until they arrive at certain points along processes. Most DCSA standards whereabouts of containers and manage the supply chain. Not only does this leverage the definitions and standards the status of their contents from end to build high costs, inefficiencies and waste put forth in the Industry Blueprint. end. IoT (Internet of Things) solutions for into the supply chain, it creates a lack “smart containers” are needed to enable of trust between shippers, carriers and • Data & interfaces—Our data & an uninterrupted flow of container data other participants. interfaces initiative includes four sets throughout the journey. This will ultimately of standards: DCSA standards will enable end-to-end allow continuous remote monitoring and interoperability, allowing supply chain • The DCSA Information Model sets control over the quality of perishable items. participants to digitise data and send and the foundational data language and These are just two of many examples receive it in a way that is understandable logical data model for container of how digitalisation will transform the and usable for everyone. This will not only shipping.

48 Shipping Australia Limited I Spring/Summer 2020 • The DCSA Interface Standard for status of their contents at any point DCSA strongly believes that container Track and Trace (T&T) establishes along the container journey. shipping can have the same success process, data and interface (API) in terms of digitalisation. Our long- • Cyber Security—The DCSA standards to enable customers to term ambition is to bring the container Implementation Guide for Cyber digitally track and trace shipments shipping industry to the level of these Security on Vessels facilitates vessel across multiple carriers. more digitally advanced industries. readiness for the IMO Resolution Benefits: This will simplify shipment MSC.428(98) on Maritime Cyber Risk Compare the eBL and the e-Air Waybill visibility across multiple carriers, Management in Safety Management for freight in the airline industry. In 2010, enabling shippers to better plan Systems. IATA introduced e-Air Waybills (e-AWB) and optimise shipment handling for airfreight. At present, adoption of • Benefits: DCSA cybersecurity best activities. e-AWB is over 68 per cent. By the practices help shipping companies end of this year (2020), DCSA will have • The DCSA Interface Standard for meet the IMO’s January 2021 released our first set of eBL standards. Operational Vessel Schedules enables implementation deadline to ensure If the container shipping industry starts automatic sharing of vessel schedule crew safety. Shippers and BCOs will adopting eBL standards in earnest, information between carrier VSA greatly benefit from having their goods we project that a 50 per cent adoption partners and operational providers. onboard a secure vessel. rate is feasible by 2030. At 50 per cent Benefits: Carriers can digitally • Port Call Optimisation (PCO) — DCSA adoption, we estimate that the industry publish their schedules, and their PCO standards will enable the just-in- can potentially save more than US$4 partners and operational service time port call by aligning operational billion per year, at a global economic providers can subscribe to their processes and data communication growth rate of 2.4 per cent through 2030, feed to automatically receive or between carriers, ports, terminals and as forecasted by the OECD1. retrieve updates as needed. This other stakeholders. will provide complete vessel • Benefits: These standards will enable Transforming container shipping schedule transparency, increasing better planning and greater efficiency requires collaboration efficiency and enabling better at ports and terminals. planning and optimisation of DCSA works in collaboration with a wide shipping activities. array of stakeholders to develop digital Investment in DCSA standards is standards and promote adoption. The • DCSA has also announced its intention an investment in the future more contributors and adopters we to work with industry stakeholders to have, the more useful the standards DCSA standards provide a safe develop eBL standards for data format will become. Our carrier members environment for technology investments. and transmission. This will enable are committed to implementing DCSA They are vendor and platform agnostic, an eBL to be safely and seamlessly standards as part of their digitalisation which ensures interoperability between delivered from end to end. strategy, and we actively seek input from all stakeholders. Any relevant party that all parties to gain insights into the needs Benefits: All stakeholders, has implemented DCSA standards can of specific markets. regardless of pre-existing be involved in a transaction. This allows relationships, can be involved in a intermodal transportation providers to As a non-profit, independent transaction as long as they have invest with confidence in IT solutions that organisation, we aim for full transparency implemented the standards. Having are backed by the major shipping lines. and publish our standards open source, a standard eBL will also make it free for everyone to use. Using an agile DCSA also works with many standards easier for regulators, banks and development process, we focus on and regulatory bodies to receive input insurers to accept it as a viable driving alignment among our nine carrier and achieve standards alignment. alternative to paper. members to rapidly publish standards, These include UN/CEFACT, BIMCO, solicit industry feedback and quickly • Internet of Things (IoT) for smart World Customs Organization, European iterate, if necessary. containers —The DCSA IoT Container Commission, International Chamber of Standards for network connectivity Commerce, IATA, and the US Customs If you are a customer of ocean carriers will enable interoperability of devices and Border Protection, among others. or work closely with container shipping, mounted on containers and gateways This ensures that stakeholders can your involvement in the standardisation in terminals, warehouses and implement DCSA standards while process is crucial to transforming vessels. Future releases will cover preserving their investments in existing this industry. As highlighted by data structure and handling, physical systems and processes. the pandemic, the need to replace device specifications, and security and antiquated shipping processes with access management. efficient, digital processes is more urgent Standardisation success stories Benefits: These standards than ever. And a standardised, scalable In banking, telco, entertainment, retail put carriers and supply chain approach is the only way to future-proof and media, digital standards have been participants one step closer to such a fragmented, complex and global creating value for some time. As a result, providing customers with an industry. We invite you to engage with these industries have produced a better uninterrupted flow of relevant us by subscribing to DCSA updates and customer experience, and a higher information regarding the making contact through our website, degree of efficiency and innovation. whereabouts of containers and the www.dcsa.org.

Shipping Australia Limited I Spring/Summer 2020 49 PORT COSTS

2020 Port pricing variances

The impact of COVID-19 is being felt c. The annual increase of 4 per cent on • MacKay Port reflects an average by consumers and businesses across both of the above, and increase of approximately 3 per cent, Australia, affecting key stake holders d. An unknown additional amount • Newcastle Port have increased along the logistic supply chain for both attributable to PoN capital investment. wharfage by 2.9 per cent, Navigation imports and exports. Services 13.1 per cent. The increase The Port of Newcastle sent letters to its Whilst there have been some in Navigation Services relates primarily stakeholders in January 2020 agreeing modifications to the shipping charges to coal vessels, where a 33.5 per cent to provide an interim discount to its Coal in some ports, there has clearly been increase was recorded. Non-Coal Navigation Service Charge, charged support to the industry in these difficult vessels recorded an average increase with respect to all coal vessels for the times by some major ports freezing or of 6.34 per cent. Site Occupancy has period from 1 January 2020 to 31 March deferring shipping charges, as a measure also increased by 5.8 per cent, 2020. The Navigation Service Charge to offer assistance to their customers, for all coal vessels during this period • Melbourne have increased their port and these ports continue to support the was $0.8121 per GT (ex GST) and not charges by an average of 2 per cent. industry during the pandemic. $1.0424 per GT, as first advised in Dec In addition, the POM has increased The ports that have frozen their charges 2019. their Port Rail Transformation for 2020 or deferred increases by at infrastructure charge by 8.81 per cent. Overall, ports have reported a standard least six months are: Port of Brisbane, However, it is worth noting that Port increase in charges that are relative to The Port of Townsville, Mid-west Ports Philip Sea Pilots have maintained no previous adjustments: Geraldton, and Sydney Ports. increase in their rates since 2018. • Albany recorded an average increase The Port of Melbourne increased import • Port Headland have reflected an of 2.8 per cent, except for the full wharfage on 12 June 2020 by $9.75 increase to their tonnage charge by Navigation Fee, which has increased per TEU to recover costs of their Port 10 per cent, which includes the Cape by 72.1 per cent due to the removal Rail Transformation Project, which was Size Vessel surcharge. However, Port of No 6 Berth from their tariff, and announced in January 2019. Headland also advertise (as below): now reflecting a single Cargo Vessels The Port of Newcastle announced (in Navigation Services charge of $0.826 ‘A discount of 50 per cent to tonnage fees December 2019) an increase in the (GST Incl,) will apply to bulk carriers entering the port Navigation Service Fee. The announcement of Port Hedland that use a PPA licensed • Darwin Port recorded an average sought to increase the Coal Ship Navigation Service Provider to bunker LNG. Vessels increase of 1.6 per cent, Service Fees by 33 per cent from 1 January that take on LNG bunkers using a PPA 2020 to $1.0424 per GT, unless the port • Fremantle Port have increased their licensed LNG Bunkering Service Provider user signs a 10-year deed which waives the fees by 2 per cent from 1 October for more than one port call shall receive right to object to matters within the deed 2020, a 50 per cent discount to tonnage fees and specifically accepts: applicable at the return port call. The • Finders (SA Ports) – Cargo Service discount will be reflected in the tonnage a. The initial NSC rate of $0.8121 per GT, Charge increase by 2.6 per cent, whilst fees invoice for the return port call.’ navigation and pilot charges have b. The initial Wharfage rate of $.0802 increased by 3.6 per cent, per RT,

Port Service 2020 2019 2018 2017 2016 Albany Navigation Fee 72.1% 2.3% 2.6% 0.5% 2.5% Berth Hire 2.8% 2.3% 2.6% 0.5% 2.4% Infrastructure Fee -1.3% 1.8% 2.4% 0.0% 2.5% Pilotage 2.8% 2.3% 2.6% 0.5% 2.5% Wharfage 0.0% 1.8% 1.9% 1.6% 1.7% Harbour Dues (reefers) 0.0% 1.8% 1.9% 2% 20% Port Access Charge 0.0% 0.0% 4.0% 3.1% 3.1% Berth Fisherman Island 0.0% 1.8% 1.9% 1.6% 1.7% Brisbane Security Charges 0.0% 1.7% 2.3% 1.8% 1.8% Towage 2.8% 2.8% 2.9% 3.5% 5.0% Pilotage all services 2.3% 2.3% 3.5% 3.5% 3.5% Vessel Utility Charge 0.0% 22.5% 2.0% 1.6% 1.9% Transfere Bulk Liquid App. Fee 0.0% 1.8% 1.9% 1.6% 1.7% Darwin Wharfage 1.6% 2.0% 1.9% 1.1% 0% Berthage 1.6% 2.0% 1.9% 1.1% 0% Pilotage 1.5% 2.0% 1.9% 1.1% 0% Port Dues 1.7% 1.6% 2.1% 0.8% 0%

50 Shipping Australia Limited I Spring/Summer 2020 Port Service 2020 2019 2018 2017 2016 Flinders (SA Ports) Cargo Service Charge 2.6% 1.6% 2.5% 2.2% 1.0% Harbour Services Charge (base) 3.2% 3.2% 3.4% 3.3% 2.0% Navigation Charges 3.6% 2.8% 3.5% 3.3% 1.9% Pilot Charges 3.6% 3.7% 4.2% 4.1% 4.5% Wharfage & Berth Hire 2.0% 2.0% 1.5% 2.5% 2.0% Mooring 2.0% 2.0% 5.0% 2.5% 2.0% Fremantle Pilotage 2.0% 2.0% 5.0% 2.5% 2.0% Dynamic Under Keel Clearance 2.0% 2.0% 1.5% 2.5% 2.0% Port Improvement Fee 2.0% 2.0% 1.5% 2.5% 2.0% Gladstone Harbour Dues 0.0% 1.5% 1.7% 1.9% 1.7% Tonnage/Wharfage 1.8% 1.5% 1.7% 1.9% 1.7% Mooring dues 3.0% 3.0% 3.0% 3.0% 3.0% Security Charge 1.9% 1.4% 1.7% 1.8% 1.7% Mackay Ship Charges (tonnage) 2.9% 3.0% 1.5% 2.1% 3.0% Cargo Charges 3.1% 3.1% 2.9% 2.1% 4.2% Service & Security Charges 3.5% 3.5% 3.0% 2.0% 3.0% Mid West Ports - Geraldton Wharfage /unit 0.0% 2.0% 1.0% 3% 50% Ship Charges -general 0.0% 2.0% 1.0% 3% 80% Ship Loading 0.0% 2.0% 1.0% 3% 32% Berth Hire 0.0% 2.0% 1.0% 3.0% 5.0% Newcastle Wharfage 2.9% 2.4% 2.4% 1.9% 4.0% Navigation Services Coal Vessels(90k GT) 33.5% 3.4% 3.4% 1.6% 3.9% Navigation Services Non-Coal 6.3% 1.7% 3.4% 1.9% 3.9% Site Occupancy 5.8% 1.7% 3.4% 1.7% 3.9% Melbourne Whafage (Containers export ) 2.2% -2.5% -2.5% -2.5% -2.5% Wharfage (Containers import) 11.3% 1.3% 1.9% 2.1% 1.4% Non Containerised / General Cargo 2.2% 1.3% 1.9% 2.1% 1.3% Motor Vehicles 1.9% 1.6% 1.6% 2.3% 1.0% Dry Bulk 2.0% 1.2% 2.1% 1.9% 1.5% Bulk Liquid 2.3% 1.3% 1.7% 2.2% 1.4% Channel Fees 2.9% 0.7% 1.9% 2.1% 1.3% Berth Hire 2.2% 1.3% 1.9% 2.1% 1.3% Wharf Access 1.9% 0.9% 1.9% 2.9% 1.0% Towage 2.8% 2.8% 2.9% 2.4% 6.8% Security 2.2% 1.3% 1.9% 2.1% 1.1% Infrastructure Fee 8.8% 1.4% Pilotage 0.0% 0.0% 1.4% 1.9% 1.2% Import container wharfage 0.0% 4.5% 186.3% 1.9% 2.0% Coastal full container (inwards) wharfage 0.0% 6.8% 90.5% 1.9% 2.0% Port Botany Transhipment container wharfage 0.0% 2.0% 2.2% 2% 155% Import general cargo wharfage 0.0% 4.5% 109.2% 2% 2% Coastal general cargo (inward) wharfage 0.0% 6.8% 79.2% 2% 2% Towage 2.8% 8.0% 2.9% 2.4% 7.9% Tonnage 10.1% 7.4% 22.9% 0% 0% Port Hedland Wharfage 3.0% 13.2% 12.2% 0% 0% Berthage 3.0% 7.5% 7.0% 0% 0% Temporary Storage 2.9% 7.9% 6.7% 0% 0% Wharfage non-container 0.0% 3.2% 3.0% 3.1% 2.9% Port Kembla Wharfage container 0.0% 3.0% 3.0% 3.0% 3.0% Site Occupancy 0.0% 3.3% 3.0% 3.0% 3.0% Navigation 0.0% 3.7% 3.0% 1.7% 2.1% Pilotage 0.0% 3.7% 4.2% 3.5% 3.5% Portland Port Tonnage 2.4% 1.9% 2.1% 2.0% 2.9% Wharfage containers 2.4% 2.7% 1.9% 2.1% 5.7% Berth Hire 2.4% 2.8% 2.9% 2.9% 3.0% Mooring 2.4% 3.9% 3.9% 3.9% 3.9% Pilotage 3.5% 4.9% 4.9% 5.9% 3.9% Towage 2.5% 2.9% 3.9% 3.9% 3.0% Sydney Navigation 0.0% 5.3% 4.0% 3.7% 3.5% Mooring 0.0% 4.0% 0.0% 3.5% 3.5% Site Occupancy 0.0% 3.0% 3.4% 6.6% 2.7% Pilotage 0.0% 3.6% 4.4% 3.2% 2.7% Townsville Cargo Charges 0.0% 1.8% 2.4% 2.6% 2.5% Project Cargo import 0.0% 1.8% 2.4% 22.4% 2.5% Services to Ship Charges 1.5% 1.6% 2.8% 1.0% 2.4% Pilotage 1.8% 2.2% 0.0% 0.0% 0.0% Towage (<50,000) 0.0% 3.4% 5.9% 3.0% 3.0%

Shipping Australia Limited I Spring/Summer 2020 51 MARITIME SAFETY

A time of reminders By MICK KINLEY, chief executive officer, Australian Maritime Safety Authority

Working in the world of safety regulation The COVID-19 pandemic has reminded us In the past two years, we have had is an immensely rewarding career. about many things. It has reminded us of reminders of the importance of following Over my time, I have witnessed how why we have quarantine and biosecurity proper cargo securing arrangements regulations, coupled with improved regulations. It has reminded us of the following the loss of cargo from container industry safety culture, have led importance of good hygiene, with the vessels off the Australian coast. Incidents to reductions in deaths, serious injuries, practice of regular hand washing – one like the loss of 81 containers off and environmental damage right across measure we may neglect in times of Newcastle by the YM Efficiency in 2018, the maritime sector. This positive work relative health and safety. It has reminded 50 containers off Wollongong by the APL does come with one big frustration, us of the importance of our health and England in May, and three containers from however. Inevitably, when things are how, even with all of the progress we have the Navios Unite off Cape Leeuwin in June, going well, people often wonder why made in medical science, a microscopic have caused significant environmental certain regulations exist in the first place. virus can still cause such profound damage to Australia’s iconic marine and consequences for society. coastal environment. These events affect In times of relative quiet, there is never the livelihoods and safety of commercial The pandemic has also reminded a shortage of people decrying the “red fishers and bring shipping to the front the world of the importance of the tape” and other perceived negative of community consciousness for all the international shipping industry. With effects regulations can have on their lives wrong reasons. and businesses. Forgetting why certain borders closed and planes grounded regulations exist is actually a rather good it has been seafarers who have kept Before these three incidents happened in problem to have, as it probably means our economies functioning in these quick succession, you have to go back they are working. Many regulations, unprecedented times. Seafarers more than a decade to find a similar and especially those in the maritime around the world have been placed in incident in Australia, with such serious space, can often be traced back to a extraordinarily difficult positions, many environmental and social effects – the single, or even a series, of tragic events. stuck on their vessels for months longer most recent being the 2009 loss of 31 Unfortunately, sometimes the events that than expected, away from friends and containers from the Pacific Adventurer. family. This vulnerability is a reminder preceded the introduction of a certain Incident investigations by AMSA into of the importance of the Maritime the three most recent events have regulation or other piece of public policy Labour Convention and why we must do discovered the improper stacking and are forgotten. everything we can to ensure seafarers securing of cargo, and poor maintenance We are currently living in a time of are treated with the respect and dignity of securing equipment are likely to have reminders. their contribution deserves. been contributing factors to these

52 Shipping Australia Limited I Spring/Summer 2020 incidents. In our inspections of these vessels and others over the last few years, we have discovered rusted cargo securing points, improper lashings, exceeded stack weight limits, and the stacking of heavy containers on empties. The most concerning thing we have found is that a number of operators appear to have been deliberately ignoring their ship’s cargo securing manuals, in order to speed up discharge at the expense of safety. This is a fool’s game, as any efficiencies gained by limiting container movements in port are quickly dwarfed by the costs associated with a large container loss event. This is not a hypothetical event and we have seen the costs associated with the clean-up of the YM Efficiency operation totalling tens of millions of dollars. Unfortunately, it seems ship operators still need a reminder of why they must fully comply with the international standards relating to cargo securing, laid out in Chapter VI of the Safety of Life at Sea (SOLAS) Convention. The SOLAS Convention itself was drafted in 1912 in response to the most infamous shipping tragedy of all time, the loss of the RMS Titanic, which killed of over 1,500 people. Those initial rules around safety of navigation, construction and the carriage of life-saving appliances were designed to try to prevent what happened to the Titanic from happening again. Since 1912 the SOLAS convention has evolved to cover a wide array of different topics and, just as with the very first version, this evolution has been shaped by tragedies and disasters along the way. There are many historical incidents playing a role in shaping SOLAS but, in regards to Chapter VI, we do not need to go back as far as the Titanic to be reminded of why these standards are so important. Events like the breakup of the MSC Napoli off England in 2007, which not only resulted in the loss of over 300 containers but the whole ship as well, played a significant role in some of the more recent changes to the verification of the weights of containers. AMSA launched a Focused Inspection Campaign in July, targeting cargo securing arrangements on container ships visiting Australian ports. This campaign will continue until the end of October, and we will be conducting standalone inspections on target vessels that have, or are required to have, cargo stowage and securing arrangements approved under regulation 5 of Chapter VI of SOLAS. Unfortunately, we have already found a number of vessels not heeding the

Shipping Australia Limited I Spring/Summer 2020 53 rules. At the time of writing, the Focused on Australia’s east coast beaches from damaged containers were discharged Inspection Campaign has conducted 66 both the YM Efficiency and APL England and physical damage to the vessel inspections of cargo vessels. Twelve of incidents. The large amounts of plastic repaired. A massive disruption to these inspections resulted in deficiencies contained in modern consumer products supply chains was caused at a time being issued for ships failing to comply with and packaging has a devastating effect when businesses were already feeling weight distribution within stacks, maximum on our marine ecosystem, both in the the pressure of the pandemic. Many permissible container stack weights, or short-term from mechanical actions and in stakeholders including the ship owners, poor maintenance of portable and fixed the long-term once plastic is broken down cargo lashing equipment. One of these into microplastics entering the food chain. insurers, cargo owners and local was so serious the vessel was detained. businesses suffered a lot of wasted time, The loss of containers can also pose money, and considerable stress. There is no excuse for vessels sailing a serious risk to a vessel. In the 2009 with corroded or inappropriate securing Pacific Adventurer incident, containers The many responsible operators in arrangements, or for stacking containers pierced the hull as they toppled off the the maritime industry must not only too high or too heavy. The proper ship, compromising the hull integrity and be aware of what regulations and maintenance of cargo fasteners are causing about 270 tonnes of oil to spill standards apply to their operations but not issues typically requiring dry- into the ocean. also understand why they exist. It is docking to fix, and should be inspected Quite apart from the serious damage particularly important that in the good and well maintained. Of course, the to the environment and the potential times – those times of relative peace ship’s crew need the full support of damage to the ship caused by container when oil spills, container losses and their management ashore in ensuring loss, the resulting disruption to cargo groundings are few and far between essential maintenance happens, and operations is extreme. When the ships are loaded safely, and the cargo – we remember that things can very APL England lost 50 containers off secured before they sail. quickly go spectacularly wrong. Wollongong earlier this year, it was not We have seen the consequences of just the owners of the lost cargo who And, in this time of reminders in which improper cargo arrangements in the were affected. The ship was laid up in we now live, we should take note, so we form of tonnes of rubbish washing up Brisbane for weeks, while dangerously do not need to be reminded again.

We are committed to supporting our communities and continuing to create brighter prospects for our people, state and nation.

gpcl.com.au

54 Shipping Australia Limited I Spring/Summer 2020 MARITIME SAFETY

Insurers pinpoint the complex causation of container casualties

By PEREGRINE STORRS-FOX, Risk Management director, TT Club

A webinar organised by the Thomas such as the correct declaration of cargo panel to suggest their most pressing Miller managed insurance mutuals, mass, as well as the safe packing improvement to oil the moving parts container freight specialist TT Club and and securing of the freight within the driving this issue. It is a shame that protection and indemnity insurer, UK container, together with the container the MARIN report Lashings@Sea was P&I Club, revealed the diverse range structure and maintenance. only partially followed through; of factors important to safe container there are a number of outstanding Ship-board factors run from proper ship operations, and the security of the recommendations. That study itself was inspection and regular maintenance of container stacks they carry. ‘Container in relation to ships around 10,000 TEU, deck fittings, locking bars, twistlocks and Casualties – the sum of the parts’ so less than half the capacity of the lashing bridges, to the use of accurate looked in detail at the complex range largest now in service. A second MARIN data to predict parametric rolling and type research, picking up the unresolved of moving parts involved in these other ship motions, and the incidence operations and concluded that each actions, and drawing on developments in of a so-called ‘stiff ship’ situation, at technology and the other factors, would must be considered individually and the design and construction stage. collectively, in order to keep collapse be valuable in increasing safety and Neil Gardiner of casualty investigators, certainty in shipping. of stow incidents to a minimum. In Brookes Bell, lead the discussion on chairing the session, UK P&I Club’s Loss this area of causation. “In addition to For Gardiner, more accurate data on the Prevention director, Stuart Edmonston taking into account the bending motions physical forces at play on containers set the scene, “Container loss incidents of ships in heavy seas in the design of, stacks to be used in calculations at the attract attention. Overall, the industry particularly, the larger container ships of ship design and construction phase, and loses a relatively small amount of today, operational prevention of isolated for Starr, better communication between roughly one unit per 160,000 carried but and unnecessarily high stacks, coupled all parties. When these casualties occur each loss has significance to a range with high GMs should be prioritised,” and are under investigation, it is only of stakeholders, including the ship advised Gardiner. “The whipping action through more transparency about the operators, cargo interests, insurers and, that ships often experience can have a actions of the moving parts that future not least, to the natural environment both significant effect on high and isolated incidents can be minimised. at sea and on shore.” container stacks that may have been left A review of the webinar between interim discharge/load ports to proceedings highlights the wide range avoid restowing.” of influences that can impinge on stack From the legal perspective Tom Starr, collapses on ships, and the potential Senior Claims director at UK P&I, loss of containers overboard. Peregrine pinpointed the difficulties in establishing Storrs-Fox TT Club’s Risk Management causation and liability. “The very nature director took the lead in summarising of the modern container shipping these. In summary: industry, the very large and sophisticated While adverse weather and the ships and the involvement of numerous parties, means that evidencing avoidance of it through to considered seaworthiness, proper stowage and the design and construction of container cause of a casualty, is a huge challenge,” ships are clearly vital, the ‘moving parts’ explained Starr. “Add to this the variable of causation range through all aspects investigation standards of flag states in of container operations. TT Club is conducting official investigations; it may involved in all aspects of the container be unsurprising that lessons learnt for supply chain, but uniquely concentrates the future can be speculative.” its energies on those factors considered within the cargo integrity campaign that From a plethora of audience questions, have bearing on this type of casualty, one was noteworthy: challenging the *First published in TT Talk, 6 August 2020

Shipping Australia Limited I Spring/Summer 2020 55 LEGAL

Bunker supply contracts – key considerations for the buyer By RORY BUTLER, partner, and LOUISE LAZAROU, senior associate, Holman Fenwick Willan

Regardless of whether a buyer purchases Bunker supply contracts – key specified in your bunker supply terms fuel directly from physical suppliers or issues checklist complies with IMO 2020 and that via brokers or traders and whether sale this also accords with charterparty • Due diligence with respect to the is under a global framework agreement requirements, so it is back-to-back. seller: considermarket reputation and or ad hoc on a port by port basis, a A further point to consider adding is financial standing of sellers, in terms common feature is that the seller’s terms an express term that the fuel is free of of financial standing and insurance generally prevail. contaminants, is fit for purpose and position (see below) and involvement complies with MARPOL. On 1 January 2020, the lower sulphur in previous supply issues . Are they limit imposed pursuant to IMO 2020 also a physical supplier or only an • Sampling and quality testing: the regulations came into effect. The new intermediary? How do they verify the contract should specify the agreed regulations have been written about quality of the fuel supplied? What are sampling and quality testing regime, extensively by Gard and others in the their supply chain quality management including for sulphur content. Ideally, shipping and insurance industries. procedures? a sample from each of the bunker However, the terms upon which bunkers • Due diligence with respect to the supplier and the vessel should be are purchased is perhaps not given the fuel: consider what information you analysed, as opposed to only the consideration it deserves need about the fuel and its origin. Are supplier’s sample. Again, insofar as possible, sampling and testing Sellers’ terms often incorporate fixed there any special parameters regarding requirements need to match the (often low) limits on sellers’ liability, storage, handling, treatment and use charterparty so the buyer is not exclusions for certain types of loss of the fuel on board? Do you require exposed to different test standards. (e.g. loss of time, profit, indirect or specific information in the Certificate Ideally, the sampling process consequential loss), short time bars for of Quality?Helpful Joint Industry should be set out in detail in the buyers’ claims, and evidential and law Guidance is available on the supply contract, together with the agreed and jurisdiction clauses in sellers’ favour. and use of 0.50 per cent-sulphur fuel: analysis regime that is to be used. There have been moves to try and work (https://www.concawe.eu/wp-content/ Consideration should also be given towards standard bunker purchase uploads/joint-Industry-Guidance-on- as to whether preferred accredited contracts with BIMCO introducing the-supply-and-use-of-0.50-sulphur- labs for testing should be identified BIMCO Bunker Purchase Terms in 2015, marine-fuel.pdf). in the contract. In the event there which were updated in 2018. These • Fuel specification: the contract is a dispute about the quality or contracts are more balanced than should identify the correct characteristic of the particular stem, typical sellers’ standard terms, and specification of the fuel - for example inability to agree to a lab for testing representatives from owners, charterers by expressly stating the relevant ISO may complicate and delay resolution. and bunker companies were all involved specification. For residual fuels, in the drafting process. the most widely used specification • Quality claims time bar: the contract should ideally include a quality claim From a commercial bargaining is ISO 8217 Table 2. The Table 2 time bar that allows sufficient time for perspective, it may be easier to negotiate specification for sulphur content is stated as per “statutory requirements” quality testing to be performed, taking more balanced terms if they are agreed and, since 1 January 2020, the global into consideration that testing might in advance as part of a worldwide MARPOL sulphur limit is 0.50 per need to take place at an accredited framework agreement to buy bunkers cent with lower limits set for SECAs. lab located at a place other than the from a single or small number of sellers. ISO 8217 is periodically revised and place of supply. In our experience, Taking the BIMCO Terms as a starting the industry guidance recommends bunker contract time bars are normally point, buyers may try to negotiate on some the most recent version, ISO 8217 far too short, especially given that of the following checklist key items: 2017. Check whether the fuel bunkers may not be immediately used

56 Shipping Australia Limited I Spring/Summer 2020 (for example bunker test results may sellers, the buyer will be entitled to purchased from the sellers. Similarly, a be required under the charter before withhold payment for the fuel until clause can also be included by which the bunkers are in fact used) and even the relevant court/tribunal determines the sellers warrant that no third party has when used promptly problems may whether sellers or the physical suppliers any right to claim against the buyer in not manifest themselves immediately. or any third parties have a claim directly relation to the fuel, or exercise any right We have seen cases where the bunker against the buyer/vessel. If there is such of lien, charge, encumbrance or arrest recourse claim against the supplier is a determination, the contract can also over the vessel or any sister vessels time barred before the bunkers have provide that payment to a party other in respect of the fuel. Lastly, consider been used. It is recommended to link than sellers for the fuel, as determined including a provision that if such a any time bar to 14 days after use of by the relevant court/tribunal, shall be claim nevertheless arises, the sellers the bunkers or alternatively to have deemed to subordinate the claim to the shall co-operate to allow interpleader a much longer time bar period, for rightful party in order to safeguard the proceedings. See also our comments on example 45 days. buyer from having to pay more than one the OW Bunkers issue above. party (and more than once!) for the fuel. • Limitation of liability: standard Exclusions: consider whether you wish bunker supply contracts usually Consider also making the contract to exclude indirect or consequential loss include a low mutual limitation of subject to the Sale of Goods Act 1979, (as this could extend to loss of time). liability figure (usually one, or at most so as to make the contract a contract of Be careful of broad term exclusions that two times the invoiced value of the sale (thus bringing in the Act’s protection are usually found in bespoke sellers’ fuel). Consider negotiating increased so far as fitness for purpose and quality contracts. Make sure that any exclusions limitation of liability sums to reflect the are concerned, and the requirement that apply mutually to both contractual fact that losses arising from loading the Sellers also have good title to the fuel parties if they are agreed. or consumption of off-specification at the time of sale to the buyer). Law and jurisdiction: avoid the fuel can be very high in value. It is Insurance: sellers should ideally have application of US law (due to maritime suggested that at least twice the value insurance in place and should be lien rights) and agree on a neutral law/ of the fuel or more should be targeted required to produce evidence of this. jurisdiction that is not necessarily the where possible. An alternative option Such insurance may for example include sellers’ choice. is to include reference to both a credit, professional indemnity and specific amount and at least twice the These suggestions come from our product liability insurance. value of the fuel provision, with the experience in disputes and litigation highest of the two applying. Lastly, Local rules and regulations: most involving bunker quality. It is make sure that any limitation agreed standard term contracts incorporate important for buyers to understand the applies mutually to both parties (rather local rules and regulations into the consequences of accepting sellers’ than just the sellers). bunker supply contracts. Local rules and terms and well worth the effort to regulations can bring about surprises attempt to negotiate a more balanced • The “OW Bunkers” issue: if buying that the parties to the contract might not contract. Even when the terms are not direct from a physical supplier there be aware of at the time of contracting. negotiable, risks can be mitigated by is less risk, but if purchasing via a Consideration is accordingly exercising due diligence before selecting broker or trader, there is a risk they recommended to be given to the the seller. may not have paid their counterpart exclusion of local rules and regulations, for the bunkers, which could, in * This article first appeared in Gard either in their entirety or to limit their the event of their insolvency, lead Insight and is reproduced with kind applicability to fuel sampling only. to competing payment demands permission of Gard AS. http://www.gard. and the risk for the buyer of having Uniform bunker supply terms: ideally no/web/updates/content/29830778/ to pay twice. (http://www.gard.no/ the same supply terms should be used bunker-supply-contracts-key- web/updates/contents/21081199/ across the board with all suppliers, considerations-for-the-buyer gard-alert-ow-bunker-english- so as to have certainty over the risk supreme-court-upholds-previous- allocation and to avoid the use of ad hoc decisions-that-ing-can-recover- supplier friendly terms. In effect, have a payment-from-shipowners). It is framework agreement/standard terms sensible to include provisions under agreed with major suppliers. which the sellers warrant they have Lien: try and avoid provisions that give paid for the bunkers and the buyer has the sellers a lien over the vessel or any a right to request evidence from the rights of action against third parties (e.g. sellers that they have paid any third the owner if the charterer is the buyer) as parties for the bunkers, before the this can cause serious issues under the buyer is required to pay the sellers’ charterparty. A further point to consider, invoice, such that if no evidence is is to add an express provision that the provided the buyer may withhold For further information please sellers must hold the buyer harmless and payment/hold sellers in breach. contact Gavin Vallely. indemnify the buyer in the event that a It is further prudent to include a term third party asserts a lien or encumbrance E [email protected] that in the event of bankruptcy of the on the vessel in relation to the fuel

Shipping Australia Limited I Spring/Summer 2020 57 LEGAL

Defects in vessel’s passage planning and working chart – exercise of due diligence and seaworthiness. The CMA CGM LIBRA litigation - Part 1

By PETER MCQUEEN FCIArb, independent arbitrator and mediator

This UK litigation deals with the scope of rendered the Vessel unseaworthy capacity as carrier, even if they are the obligation imposed upon a shipowner because neither recorded the necessary acts of navigation before and at the under Article III rule 1 the Hague/Hague warning derived from the relevant commencement of the voyage, and Visby Rules (the Rules) to exercise due Notice to Mariners that depths, which that the Owners are responsible for diligence to make the vessel seaworthy were shown on the chart outside the all such acts as a consequence of the before and at the beginning of the fairway on the approach to Xiamen, non-delegable duty under Article III voyage. It has important implications were unreliable and were shallower than rule 1 of the Rules. in respect of the issue of seaworthiness recorded on the chart. and its application to the allocation of Appeal to UK Supreme Court risk and liability in respect of the maritime Decision of English Admiralty transport of goods. The UK Supreme Court has recently Court - [2019] EWHC 481 (Admlty) granted the Owners permission to appeal Teare J found that these defects in the the decision of the English Court of Facts passage plan and the working chart, Appeal on the following grounds: In May 2011 the CMA CGM LIBRA, a which had been prepared by the master (i) that the passage planning constituted post Panamax container vessel (the and first officer, rendered the vessel a navigational decision rather than an Vessel) laden with 8,950 TEU, grounded unseaworthy, that the Owners had failed “attribute” of the Vessel, and therefore whilst leaving the port of Xiamen, to exercise due diligence so that they the failure to record the warning was a China. The Vessel, which was re-floated were in breach of the Rules, that that type of error in navigation that could not following a salvage operation, was breach was causative of the grounding render the Vessel unseaworthy; and found to have suffered little damage of the vessel, and that therefore the and continued on her voyage to Hong Owners’ claim for contribution in general (ii) that the obligation to exercise due Kong. The cost of her salvage was average failed. diligence was limited to acts by third US$9.5 million. The total claim in general parties acting in the capacity of carrier average was US$13 million. Whilst 92 and the failure by the master and Decision of English Court of per cent of the cargo interests paid their crew to navigate carefully was outside contributions to general average, 8 per Appeal - [2020] EWCA Civ 293 of the “orbit of responsibility” of the cent of those interests (which equated In a unanimous decision the English Owners. to contributions of approximately Court of Appeal, confirming the decision Part 2 relating to this litigation will deal US$800,000) refused and it is this of Teare J, found: with the decision of the UK Supreme amount which was claimed by Owners (a) that the defect in the passage plan Court once published. against those interests. (which included the working chart) The Owners argued that the cause of rendered the vessel unseaworthy the casualty was an uncharted shoal on because it did not contain the warning which the Vessel grounded. The cargo about the unreliability of charted interests argued that the cause of the depths outside the fairway contained casualty was the unseaworthiness of in the relevant Notice to Mariners; and the Vessel, which led to the master’s (b) that, once the Owners assumed negligent navigation of the Vessel. responsibility for the cargo as The central issue for decision was carriers, all the acts of the master whether defects in the Vessel’s passage and crew in preparing the Vessel www.petermcqueen.com and plan and the relevant working chart for the voyage are performed in the www.arbdb.com

58 Shipping Australia Limited I Spring/Summer 2020 BOOK REVIEW

Captain James Cook and Governor Phillip: Reading between the lines

latitude 40°S in the hope of finding the southern continent, he was then to turn west to New Zealand and see if it was connected to that continent. That was all his written instructions conveyed and the author argues that undoubtedly his return journey would have been subject to oral instructions, which allowed him considerable discretion. From New Zealand, Cameron-Ash suggests, he had three possible routes to take. To double back via Cape Horn and continue searching for the elusive continent in the higher latitudes of the Pacific; to sail directly west to the Cape of Good Hope, keeping south of New Holland; or to go north around New Lying for the Admiralty Arthur Phillip Sailor Holland through the Dutch East Indies to By MARGARET CAMERON- Mercenary Governor Spy the Cape of Good Hope. The last one, ASH, Rosenberg Publishing By MICHAEL PEMBROKE, she suggests, would have had the most Pty Ltd, 2018 Hardie Grant Books, 2013 appeal for the Admiralty strategists. She points out that in none of Cook’s three voyages did the Admiralty’s Whilst there seem to be some in our powers. During this time exploration instructions mention New Holland or community who do not appear to and discovery were rife and secrecy Van Diemen’s Land. She suggests the know the difference between Captains paramount. In his book: “Arthur Phillip reason for that was they did not wish Cook and Phillip, and seem intent on Sailor Mercenary Governor Spy” (Hardie to alert Dutch, Spanish, French or the rewriting history, it is a good time to Grant Books, 2013) Michael Pembroke East India Company of their intentions, remind ourselves of the achievements also refers to the clandestine activities remembering that Bougainville had been and accomplishments of both Captain that these nations engaged in and says: ordered by the French to chart the east James Cook and Governor Arthur Phillip, “spying on each other’s navies was coast of New Holland in 1766. particularly as this article was conceived the “great game” of the late eighteenth during Covid lockdown around the time century”. It is worth reminding It must also be remembered that France of World Hydrography Day (21 June), ourselves, as Michael Pembroke also had lost her colonies in Canada in 1763, and were clearly looking for new in light of reading during that period, recounts in this context, that Phillip’s locations from which to build influence the 2018 publication “Lying for the instructions were to secure Norfolk and trade. Britain did not want to be Admiralty” by Margaret Cameron-Ash Island as quickly as possible after his caught napping again, as it had been (Rosenberg Publishing Pty Ltd, 2018). arrival “to prevent it being occupied by subjects of other European powers”. when Bougainville had established The book poses the question: How a colony in the Falklands. From his could “Captain Cook, supposedly the Cook spent considerable time charting experiences in Canada, Cook would greatest navigator of his age have the East Coast of Canada to ensure have appreciated that had the islands of missed coastal features that even the that the few spoils that were ceded to St Pierre and Miquelon been joined by dullest sailor would have discovered, France at the end of those wars were an isthmus to Newfoundland it would features as obvious as the Bass Strait?” clearly identifiable. He had been sent never have been ceded to France in the to chart the islands of St Pierre and first place and French fishermen would The author answers them, convincingly, Miquelon in the summer of 1763, before have been forced to look further afield to the effect that he did not miss the handover to France, and spent the for their shelter. them - he did see them. She builds her next five years of summers surveying case by placing his voyages in their the Newfoundland coast. Those On such matters Cameron-Ash relies, historical context and reminding us of experiences, Cameron-Ash argues, to support the view that neither Cook the times the great navigator was living would have been front of mind when he nor the Admiralty would have wanted in, particularly the long-running wars undertook the tasks set him when he to publicise the existence of any potential islands in the vicinity of any between Britain and France, especially had carried out the observations which new discoveries he made. She shows in Canada, where Cook experienced he was required to make of the transit of forensically how Cook concealed the first-hand the expansionist rivalry Venus in the South Pacific. Those tasks existence of both Foveaux Strait in between those two European super were to leave Tahiti and head south to

Shipping Australia Limited I Spring/Summer 2020 59 New Zealand and the Bass Strait. Her Botany Bay.” Phillip, it will be recalled a better harbour than Botany, but given evidence in support of that is compelling referred to it as a “good harbour and the potential danger of travelling alone as is that relating to the most famous several islands” “ before he set sail with into the bush on such an expedition it alleged oversight of Port Jackson. the first fleet. Cook from two or three does seem likely that he would have miles off the coast and the harbour taken, at least Banks, with him. And, It is the chapter entitled “Deception protected by the South and North interestingly, Pembroke relates about the at Botany Bay” which sets the scene Heads was able to say it offered a “good plans for Phillip’s voyage that: “Banks and shows how Cook is likely to anchorage”. How did he know that and threw himself into many aspects of the have concealed the latter. It makes how was he able to suggest that there expedition and in the months before the engrossing reading. Quite simply, she were many islands, assuming he was the fleet sailed, Phillip frequently attended says, he was aware of the potential source of that information, which Phillip his home in Soho Square, London.” It of Port Jackson but did not disclose had acquired? may be that Phillip’s knowledge about it in his written records. The principal Port Jackson derived from the first- evidence for this is that slightly less than It is suggested by Cameron-Ash that he hand source of Banks, which may have 20 years later when Captain Phillip was chose not to visit such a harbour when corroborated whatever Philip Stephens, explaining to the Home Office, before his they had set sail from Botany Bay as he the first Secretary of the Admiralty, had departure, what his intentions were when wished to keep his own knowledge of it conveyed to him as to what Cook had he reached the east coast of Australia, a secret. It is interesting that he named told him nearly 20 years earlier. he wrote: “it must be left to me to fix at this harbour Port Jackson after his Botany Bay, if I find it a proper place - if friend and patron, Sir George Jackson, Pembroke also refers to Phillip’s, not to go to a port a few leagues to the a fellow Yorkshireman, in whose sister’s apparently discourteous failure, northward where there appear to be a household he had worked as a stable according to the mores of the time, to good harbour and several islands as boy and who Jackson had encouraged meet with La Perouse, who had arrived the natives are very expert in setting to join the Navy. He had been appointed in Botany Bay a few days after Phillip, fire to the grass. The having an island Deputy-Secretary to the Admiralty in the day before Phillip took his small party to secure our stock would be a great 1766 and Judge Advocate of the Fleet in to Port Jackson. This is more readily advantage and there is none in or off 1768. (Cook also named Cape Jackson understood if it is correct that Phillip had Botany Bay.” between Queen Charlotte Sound and secret knowledge which he would not Cook Strait, in the South Island of New want to be sharing with the Frenchman, Other commentators have suggested Zealand, after him.) especially before he had satisfied himself that Captain Phillip was referring to about the benefits of Port Jackson and Port Stephens but that seems unlikely The question therefore is how he gained safely established his fleet there. As given that it is about 30 leagues north of that knowledge when, on leaving Port Pembroke says: “his high opinion of the Botany Bay. It is indicative of the fact Botany on 6 May 1770, he travelled strategic utility of Port Jackson, which that Captain Phillip knew of the existence without stopping, to the tropic of had never been charted and was barely of the benefits of Port Jackson over Capricorn over 17 days, and did not stop known, explains his reluctance to allow Botany Bay that the day after the last to examine the harbours at Port Jackson, the French to appreciate its advantages. ships had arrived at Botany Bay he took Broken Bay, Newcastle, Port Stephens, He of course understood Whitehall’s a small party north in a long boat and Port Macquarie, Coffs Harbour, the inlets strategic and commercial objectives. two cutters, taking with them sufficient of the Clarence and Richmond Rivers, The reality is that the two commanders supplies for only about three days. That to name but a few of the settlements were circling each other in New South and what he had written to the Home that have taken place subsequently. Wales neither willing to reveal the true Office provides good evidence that Cameron-Ash points out that Cook’s scope of his expedition or the aspirations he knew that Port Jackson was likely Journal is extremely vague about his of his government.” to provide a more desirable place to activities during the week of 28 April to settle. In May 1788 Phillip, memorably 6 May 1770. That in itself supports the I strongly recommend both Cameron- described it thus: ‘We had the conjecture that he knew sufficient about Ash’s and Pembroke’s books to readers satisfaction of finding the finest harbour Port Jackson not to need to investigate of Shipping Australia as the former in the world in which a thousand sail further. debunks the suggestion that the great of the line may ride in the most perfect navigator Cook was ignorant about the The author builds a compelling case security.” merits or existence of Sydney Harbour, for her speculation that Cook walked, the Foveaux Strait or the Bass Strait, As Cameron-Ash demonstrates, no-one during the week he spent at Botany Bay, and the latter reminds us of the humanity else had ever been there before who from the north shore of Botany Bay to of Captain Phillip, who is on record (as had written about it, only Cook could the heights of what is now Oxford Street Pembroke recounts) as saying both: “Any have known and passed on verbally and down to the water’s edge at Sydney man who takes the life of a native will be that there were many islands (13 at that Harbour, in order to have viewed one of put on his trial as if he had killed one of time) in Port Jackson. When passing the world’s great natural harbours, which the Garrison. This appears to me to be Port Jackson in the Endeavour on the 6 he secretly reported to the Admiralty on not only just but good policy”, and also, May 1770 Cook had merely noted: “at his return. She does not debate whether “There can be no slavery in a free land noon we were...about 2 or 3 miles from he would have gone alone on such an and consequently no slaves.” the land and abreast of a bay or harbour expedition. It would seem to be unlikely. wherein there appeared to be safe She does however build a picture of anchorage which I called Port Jackson. Cook not being likely to trust any of the STUART HETHERINGTON It was 3 leagues to the northward of ship’s crew to silence should there be partner, Colin Biggers & Paisley

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