AUSTRALIA Our longest naval mystery SOLVEd LNG we’re girt by gas and sea! Wine exports up Women in shipping MY THERESE BLANK – Maersk Line Oceania. PROFILE ANTHONY JONES, Group CEO of LINX GENERAL AVERAGE Cargo Handling Group EXPLAINEd INTROduCING - dARREN duMBLETON, Quay Shipping Autumn/winter 2018 Increase productivity Reduce incidents orking on a vessel can be etreely high-risk, with seafarers reportedly up to . ties ore likely to suer work-related fatal inuries copared to the general shore-based workforce. A recent study uncovered new insights into seafarer safety and wellbeing and found that looking after your crew results in less incidents and better productivity. Manage fatigue ne in ve seafarers eperience acute and chronic fatigue. pleent a fatigue risk anageent syste to anage fatigue and ensure crew get enough sleep. Rules and procedures Make sure rules and procedures are clear, practical and up-to-date. hen inforation is easy to understand and relevant, crew are ore likely to follow rules and procedures. ncluding seafarers in the developent of rules and procedures iproves copliance, perforance and wellbeing. ork deands and support eafarers are reuired to uickly switch between onotonous tasks and etreely deanding tasks. uer the negative eects of these work deands by prooting positive and open interaction between crew and people in higher- level roles. As the leader, set high safety standards and show your crew that their safety is ust as iportant as operational cost. Co-worker support Crew that have eotional support and are euipped to deal with work pressures perfor better. ploying the sae crew on the sae vessel helps by allowing the to develop support networks and enoy ob security. hese things increase wellbeing and reduce the rate of ental health issues. he nal report Assessing the determinants and consequences of safety culture in the maritime industry is available at asa.gov.au amsa.gov.au CONTENTS AutumN / wiNter 2018 14 16 106 12 02 FROm THE bRIDGE 08 VIEWPOINT 46 the Blue Highway is ready and free to use 10 PROFILE ANtHONY JONeS, Group CeO, LiNX Cargo Handling Group 12 WOmEN IN SHIPPING mY tHereSe BLANK, Australian sales and country manager, maersk Line Oceania. 14 INTRODUCING DArreN DumBLetON, managing director, Quay Shipping Australia 16 LNG FEATURE 16 Now we’re girt by gas as well as by the sea! 20 Critical mass moment in sight 24 AUSTRALIAN WINE Global demand on the rise 28 ECONOmY Shanghai of the tiger? Doing business in China 30 bUSINESS 30 tarifs: the good, the bad, the ugly 32 what’s your exposure to FX? 34 COASTAL SHIPPING 48 54 Changing the coastal trading rules 38 LOGISTICS 38 Blockchain in the supply chain 51 FILm REVIEW 40 How blockchain can safeguard Australian food and beverage the mercy on the supply chain to China 42 Developing a national trade Community System 52 THE SCENE 46 LINER SHIPPING 54 NAVIGATION winds of change in Liner Shipping the Panama Canal 48 LEGAL/INSURANCE 56 NAVAL HISTORY General Average explained Solving the mystery of HmAS AE1 50 bORDER AGENCIES 58 ALC FORUm 2018 2018 customs compliance priorities towards a National Freight and Supply Chain Strategy THE OFFICIAL JOURNAL OF Shipping Australia Ltd Level 1, 101 Sussex Street, Sydney NSW 2000 PO Box Q388 Sydney NSW 1230 Front Cover: P: 02 9266 9911 F: 02 9279 1471 Shell’s foating liquifed W: www.shippingaustralia.com.au natural gas (FLNG) facility PUbLICATIONS COmmITEE Chairman: Ross McAlpine Prelude on station, 475km Vice chairman: Frank Needs Executive editor: Rod Nairn north north-east of Broome Executive assistant: Sharyn Flood Feature writer: Archie Bayvel Image: Shell Australia Graphic designer: Sarah Abrahams E: [email protected] Advertising Co-ordinator: For advertising contact Steve Moxey P: 0400 473 200 E: [email protected] PO BOX 43, Woonona NSW 2517 Shipping Australia Magazine is published for Shipping Australia Ltd by Ontime Publications Ontime Pubications. Autumn / Winter 2018 I Shipping Australia Limited 1 From the bridge he frst part of 2018 has been a the peak shipper body. this provided historic one for liner shipping in standardisation between lines and tAustralia. the sudden withdrawal of predictability for the shipper. Now, without lines from the major Discussion Agreements DAs to limit them, the major lines can operating between Australia, New Zealand simply set their own surcharges on a global and the uSA was quickly followed by a basis and can change these surcharges similar exodus from the north Asia trade as they see ft, with no minimum notice Facilitation Agreement and the southbound periods. So much for predictability. Asia Australia Discussion Agreement. this brings us to uncharted territory with respect Let me make it clear that not all to liner shipping and leaves Australia’s Discussion Agreements have been peak exporting shipper body, the Australian abandoned. DAs remain an essential Peak Shippers Association, scratching their umbrella structure that enables a collection heads and wondering why they suddenly of smaller lines to collaborate to provide a have no carrier representative body to talk shipping service. the barriers to entry to to. providing a shipping service are very high indeed, a viable service needs reasonable Changes to this sector of the industry frequency and sufcient cargo to make it have been expected for some time, ever sustainable. that means multiple ships over since the european union removed their multiple ports, which demands a massive competition protections for shipping and capital risk. DAs can provide a means by replaced them with a vanilla favoured block which lines can share this risk and ensure exemption permitting only low market that a regular service is sustained while share consortia. Since then, a number of maintaining competition between the other regulatory regimes have done the contributing lines to prevent price gouging. lemming thing and followed blindly of the clif to weaken or remove anti-competition So where does this reduction in DA protections from shipping. Hong Kong and participation leave Shipping Australia? New Zealand are among the most recent, Shipping Australia Limited was formed and the sum of these changes have made in 2000 through the amalgamation of the an impact on the psyche of global shipping Australian Chamber of Shipping and Liner lines. the shipping industry has a lot of Shipping Services. Over the years the A sea inertia and major changes take time, but pendulum of our work efort has swung they eventually work themselves through. between liner services and shipping policy Changes to global competition protections matters. Staf levels have been continually over the past decade are at least partially adjusted to meet the work demand. in change responsible for the consolidation of the last few years, as the demand for shipping lines in recent years, though of liner services support has reduced i course there are other factors. i caution have reduced our workforce in the liner all regulators to be very careful when they services department. At the end of may, for liner consider tampering with a market that is after almost 30 years working at Shipping currently highly competitive and working Australia (and the former Liner Shipping well as “whatsoever a man soweth, that Services), Andrew Chittenden has taken shall he also reap”. Andrew Chittenden his retirement. Andrew’s reputation for provides a more comprehensive analysis expertise in liner shipping regulation is shipping widely known and respected throughout of the causes and efect of this historic change on page 46. the industry, and SAL is happy that he has agreed to continue to provide expert advice it is not coincidence that the demise when called upon. the SAL Board and his By rOD NAirN Am, CeO, of Discussion Agreements comes after Shipping Australia Limited work colleagues wish Andrew the very best the latest round of shipping industry for the next, more relaxing phase of his life. consolidation. the fve or six market His dry wit will certainly be missed around leaders are now strong enough to make the ofce. their own decisions and live by them. Perhaps the frst example of this is in global Despite these changes, Shipping Australia bunker surcharges. under a Discussion maintains the capability to support Agreement regime all the lines participating continuing Discussion Agreements, bunker in that agreement would normally negotiate calculations, regional trade statistics and their bunker base rates, indices and ongoing registration service for consortia calculation methods for surcharges with agreements under Part X. we will also 2 Shipping Australia Limited I Autumn / Winter 2018 continue to be the industry point of contact for the registrar of Liner Shipping, and provide advice and support on liner matters to our members. the policy and technical department remains unchanged and will continue to provide information, advocacy and training services to our members and the wider shipping industry as we have done for the past 18 years. On that note, Shipping Australia has commenced consultation with the ACCC over the requirements of the industry for the development of a potential class exemption to cover shipping lines. Our position has always been that Part X of the CCA already provides the appropriate level of competition protection, is low on regulatory compliance red tape and is supported by both carriers and shippers. But the future of Part X is not at issue here, that will be determined by the Government The ANMM Wooden boat festival at Darling Harbour was a ftting companion to the at some future date, not by the ACCC. the Container Exhibition still running at the museum ACCC has been tasked to develop a class exemption that best meets the needs of gas production in the national freight task supply chain. in an unprecedented sign shipping industry carriers and shippers.