DCN April 2019 Edition


First published in 1891

April 2019


The voice of Australian shipping & maritime logistics

The troubled

route north

Crisis in liner trades to north and east Asia

38 Sustainability focus for

major Victorian ports

46 The impact of limits to

liability on insurance

56 Benefits of preparing

your business for failure



MSC Mediterranean Shipping Company is proud to be celebrating 30

years in Australia.

We would like to take this opportunity to thank our customers for their

ongoing support.

For more information contact our Sydney office:

+61 2 8270 4000 or AUS-SYDinfo@msc.com








Liner trades to north and east Asia

Latest trends in container trade to and from the north

38 Victoria

Sustainability focus for major ports and supply chains



Maritime insurance

The impact of shipowners and carriers limiting their liability

Maritime law

Exploring the types of control for risk management




8 A word from the minister

Deputy PM McCormack

discusses freight transport

18 Industry opinion

Senate inquiry into shipping


Teresa Lloyd explores the hallmarks

of a sustainable industry

22 Women in maritime

Recent reports on gender equality

24 Industry opinion

Llew Russell reflects on the value

of international experience

26 Aust Logistics Council

Wrap up from the ALC Forum 2019

52 Industry opinion

The influence of customer

demand on logistics technologies

54 Trade law

Digital trade and SMEs

58 Workplace law

Labor and plans for Fair Work Act

60 Industry analytics

Examining the decline in fatal

heavy truck accidents

62 Out & about

Naming of Victorian Reliance II

66 The grill

The new vice-president, Oceania

at Kalmar: Tom Holyman

4 April 2019


Australia’s best connected gateway port

First published in 1891

April 2019



ISSUE NUMBER 1245 April 2019

The future of Australian-flagged shipping is much debated

From the editor

It is often said that we are in an age of polarisation. We’re seeing

that in shipping policy to some extent. Labor’s plans for a locallyflagged

fleet of tankers to ensure fuel security in the event of a

crisis have been hailed as visionary by some and lunacy by others.

Similarly, opposition leader Bill Shorten’s pronouncements of

plans to restore Australian shipping more generally have produced

widely disparate reactions, with sceptics suggesting it is a sop

to the Maritime Union (or the CFMMEU). This topic produced

some entertaining clashes between politicians and industry group

representatives during a recent conference in Melbourne.

It’s probably too much to hope for, but it would be great to see

some sort of consensus on what we should be aiming for. Even if

Australian-flagged shipping may take a long time to return, we

should start with defending, and then expanding, the important

maritime ‘clusters’, the many business and training facilities that

relate to maritime trade more generally.

Meanwhile, we are now a quarter of the way through the

calendar year and can take stock somewhat of what has occurred.

The issue of the brown marmorated stink bug has continued to

wreak havoc. And, the announcement of a steering committee to

examine the federal biosecurity levy has done little to quell debate

in that contentious sphere.

We haven’t yet come to arguably the most interesting event of

the year, the federal election which is tipped to occur next month.

This will no doubt generate some interesting news which we look

forward to bringing you in the weeks to come.

David Sexton

Editor, Daily Cargo News

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The voice of Australian shipping & maritime logistics

The troubled

route north

38 Sustainability focus for

major Victorian ports

Crisis in liner trades to north and east Asia

46 The impact of limits to

liability on insurance

56 Benefits of preparing

your business for failure

DCN0419_Cover.in d 3 28-Mar-19 2:54:04 PM


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6 April 2019


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Piloting a vessel into Newcastle Harbour,

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Helping future freight

pull greater weight

The data is in the details for the future of Australia’s freight task, which is growing

at break-neck speed, writes Deputy Prime Minister Michael McCormack


or the country, in a house, a high-rise or a

farm, freight supply chains affect us all.

When freight moves efficiently, we are

all winners. Fresh produce and other goods

are delivered quickly and safely, businesses

can operate and freight vehicles move

smoothly in and out of town. When our

supply chains are interrupted all of this is

at risk of falling apart.


The need for an efficient and productive

freight transport system to keep

our economy moving cannot be

overemphasised. The nation’s population

is growing and the demand for freight is

growing even faster.

As cities grow, some freight corridors

and logistics facilities will pose planning

challenges unless we act now. It is

reasonable to expect governments at all

levels to be able to plan ahead to ensure we

can meet the need for both efficient freight

and liveable, residential communities. Data

plays a key role in this planning.

The Liberal and Nationals government

recognises the importance of ensuring the

freight sector is efficient and productive in

keeping Australia moving. That is why we

have been developing a National Freight

and Supply Chain Strategy with state,

territory and local governments, as well as

industry. The strategy will set an agenda for

collaborative and integrated government

action on freight and supply chains during

the next 20 years.


As part of the 2018 industry expert

panel-led Inquiry into National Freight

and Supply Chain Priorities, a scenario

planning project was undertaken to help

future proof the strategy. This project

involved developing four potential future

scenarios, designed around different

levels of progress of automation, among

various other factors, to assist in long term

planning for our freight sector.

Across all scenarios, it became clear

improved data sharing and use is needed if

we are to better plan for future disruptions

and maintain the performance and

competitiveness of supply chains.


Following the inquiry, the Australian

government commissioned iMove

Cooperative Research Centre to do a

research study of the freight sector’s data

requirements to improve decision-making

and performance. The study found five key

barriers facing the freight sector which

prevent better sharing of data.

These barriers were: inadequate

protection of competition and confidential

data; excessive legal and contractual

requirements; resource-intensiveness in

terms of costs, time and human resources;

institutional weakness, in particular a lack

of governance around data; and a lack of

co-ordination and compatibility when it

comes to types of data.

In short, we need to enable the freight

sector to cut through the red tape and

technical discrepancies surrounding data.

The freight sector should be able to use

data, communicate and share data, and

protect the data which actually needs


While the final version of the iMove

study has yet to be released, initial findings

suggest the government should develop a

national policy on freight data in Australia

– a project which is already underway –

and establish a national data office as a

trusted central co-ordination point for

hosting freight data. Conclusive findings

and recommendations of this study have

yet to be released.


The government’s role in developing the

National Freight and Supply Chain Strategy

Michael McCormack, Deputy Prime Minister

and minister for infrastructure and transport

for Australia – combined with increased

accessibility and efficient management of

freight data – is positioning the freight

sector to meet significant future growth

in the freight task. Our freight sector, its

workers and customers, will be supported

to meet increased overseas demand

for Australian resources and produce,

especially in growing Asian markets.

We will also be able to better

support increased domestic demand

from Australia’s growing population

through a unified, national approach to

freight planning. A national approach is

essential to ensure freight systems and

infrastructure work across state and

territory borders to enable the efficient

delivery of goods across Australia.

Our government understands this and is

investing in this national, evidence-based

approach right now.

I look forward to ongoing industry

engagement as we work with all involved in

the freight supply chain sector. There will

be great weight to pull in the future, but

the rewards will be even greater.

8 April 2019










he said.

las term of office.

shipping industry,” Mr

Albanese concluded.

“It is vital for our

is also vital for people

like the 70 Australian

outrageous decision.”

when they a rived at

Sydney Airport.

Mr Crumlin criticised

the negotiation stage.

in June this year.




Letters to the Editor



Opposition infrastructure spokesman Anthony Albanese

used Parliamen to condemn BHP for its decision to no

longer use Australian-crewed ships in moving iron ore from

Port Hedland to Port Kembla.

BHP has argued the decision was forced by changes to its

business in recent years, but in the House of Representatives

Mr Albanese disagreed.

“BHP has made a decision to abandon the Australian flag,

to abandon Australian seafarers and Australian jobs and

replace [them] with foreign-flagged vessels with foreign

workers being paid foreign wages,” he told the House.

“The ‘big Australian’, as it is ca led, has been exposed to

having a li tle heart and no soul when it comes to looking

after the national interest.”

Two of the redundant workers were in the parliamentary

ga lery to hear the speech.

Mr Albanese said it was in Australia’s national interest “to

have the Australian flag on the back of ships with Australian

“It is in the interests of our national security because

we’ve had nothing from [the government] to say abou this,”

“It is in the interests of our environment and it is in the

interests of our economy.”

He took a swipe a the government for seeking to

implement ‘Work Choices on water’, a reference to industrial

relations laws introduced by the Howard government in its

“We need an Australian

14 March 2019

national interest, but it

seafarers who los their

jobs with this ca lous and

Earlier, Maritime Union

national secretary Paddy

Crumlin ca led upon Prime

Minister Sco t Mo rison to

meet mariners from the

MV Lowlands Bri liance

the government, saying it was “directly responsible for the

loss of these last iron ore vessels”.

“Sco t Mo rison should front up to Sydney Airport, meet

these workers, and te l them why his government has

rubber-stamped BHP and BlueScope replacing them with

exploited foreign seafarers who are paid as li tle as $2 an

hour,” Mr Crumlin said.

“The Liberal National Coalition has spen the last five

years in government actively undermining what is left of

Australia’s shipping industry and now wants to make it even

easier for multinational companies to replace Australian

seafarers with exploited labour.”

The government has previously argued tha the case is a

private one for BHP and BlueScope.

DPWA and Patrick finalists

for new Freo container

terminal leases

The tender for new leases to operate container terminals a the

Port of Fremantle was na rowed to the two cu rent operators, DP

World Australia and Patrick, with the proce s now moving on to

Th existing leases, which were awarded in 1997, are set to expire

The intent of the current process is to grant new seven-year

leases with options for extensions for two further periods up

to a total of 21 years at the discretion of Fremantle Ports, and

dependent upon state government decisions arising from the

Westport: Port and Environs Strategy.

Leases would start on July 1, 2019 and end on June 30, 2026 (or

on later dates if options were granted).

The process to secure new leases gives confidence to the industry

and the community that Western Australia’s expected trade growth

over the next decade can be accommodated.

Western Australia ports minister Alannah MacTiernan said

securing suitable container termina leases is importan to the

economy of Western Australia.

“Negotiations wi l focus on the ability to address investment

and operations plans to cater for expected trade growth in the

years ahead, but also th efficiency of land transport movements of

containers to and from the port,” she said.

“As part of this proce s Fremantle Ports wi l seek to further

improve the efficiency of land transport movements of containers

to and from the port, for the benefit of the community and

“The container trade is of enormous importance to Western

Australia and this tender proce s is being conducted in the context

of deliberations by the Westport Taskforce, which is examining port

and landside planning and development requirements to serve the

State in the decades to come.”

The two stevedores recently raised their infrastructure surcharges

a their terminals around the country, with DPWA’ surcharge

taking effect on 1 January and Patrick’s due to kick in on 4 March.

However, neither stevedore announced increases a their

Fremantle terminals this year, with DPWA’s surcharge remaining

$8.22 per container and Patrick’s remaining $7.50.


DCN0319_News.in d 14 22-Feb-19 2:06:39 PM

Ian Ackerman; Fremantle Ports



I was appalled to read Anthony Albanese’s

response to Rod Nairn (6/3/2019) and his

inference on the name Shipping Australia.

As a founder of SAL (and I might say

without my blessing it would not have

happened) I went out of my way to ensure

this new organisation did indeed represent

and acted in the interests of the Australian

shipping industry.

Some years ago when Mr Albanese was

Minister I made a speech at an AMSA

conference when I defined what Australian

meant and on all counts (I was chairman

of SAL at the time and one of my company’s

founders actually brought ANL into being)

SAL ticked off all the boxes. However we all

know the political games that are played

and at the time when Albanese was putting

together a new inquiry who was left out

of the equation? SAL. All Albanese’s best

mates were there and what was the

upshot? Nothing.

Yet here we go again.

Opposition leader Bill Shorten promises

the world with another panel of experts

to define what we need to revitalise the

Australian shipping Industry. Penny-toa-pound

SAL again will not be invited.

Yet his besties (doubtless on the behest of

Albanese) will be invited.

Albanese/Shorten prattle on about how

we need good Aussie seafarers for tankers

etc. But how many remember the days of

vessels being held up because the colour of

the ice cream was not right? Because crew

were missing from connecting flights? Or

the wild parties on oil tankers when only

good luck prevented serious accidents.

That was reality and while I appreciate

times have changed the context should

be remembered.

With the CFMMEU now in charge,

how can we trust there will be a positive

outcome? Let alone there are two other

unions to woo. Perhaps I should write a

book on all of the unions’ antics over

the years.

Michael Phillips

Former chairman, Shipping Australia




Agriculture minister David Littleproud

recently established a Biosecurity

Levy Steering Committee to make

recommendations on the implementation

of this new levy.

The Customs Brokers and Forwarders

Council of Australia has a long history

of working with the Department of

Agriculture and Water Resources on

biosecurity policy.

The CBFCA is one of the peak industry

associations representing service providers

in international trade logistics and

supply chain management, in particular

those service providers who undertake

border clearance activities through

the departments of Home Affairs and

Agriculture, these being licensed individual

customs brokers or licensed corporate

customs brokerages where the individual

licensed customs broker is a nominee for

that corporate entity.

Licensed customs brokers are accredited

by DAWRS under the Broker Accreditation

Scheme to undertake in co-regulatory

arrangement documentation assessment

activities for non-commodities/commodities

and freight forwarders are accredited under

the Approved Arrangements Scheme.

In this capacity, the CBFCA has provided

commentary to a variety of government

and regulatory inquiries as to policy,

equity, compliance, cost recovery and

process improvement on biosecurity

matters. The CBFCA as an active member

of the Department of Agriculture Cargo

Consultative Committee and the Import

Industry Finance Consultative Committee

and works with the Department on a variety

of idealistic biosecurity process outcomes, is

very disappointed with the Minister and his

advisors for excluding the CBFCA and other

key industry associations and stakeholders

from the steering committee.

What is interesting to note is the CBFCA

was involved in past biosecurity import levy

meetings and industry workshops but was

still overlooked, despite our long history

working with the Department.

During departmental workshops we

often heard from industry that their

preferred collection model was via the Full

Import Declaration which is currently

in place and is facilitated by the customs

brokers and freight forwarders who pay the

fees and pass on to their clients. If the new

committee is to push for this collection

model the CBFCA is most qualified to

represent and make commentary on behalf

of members. In the absence of the CBFCA

we question if our specific industry sector

will be appropriately represented.

The CBFCA understands that Australia’s

border biosecurity protects our food supply,

agriculture industry and our way of life.

However, we have concerns about whether

the money collected will even be used for

biosecurity, as the current cost recovered

Imports Program is in desperate need of

additional resources to manage the brown

marmorated stink bug.

The CBFCA strongly opposes this

proposed new tax as unfair, wrongly

targeted and highly inefficient, however we

support adequate funding for biosecurity.

The Department claims that biosecurity

is a “shared responsibility”. This is often

spoken about, but unfortunately not

practiced enough. The CBFCA believes

any additional funding should provide a

modern, seamless border clearance that

also manages biosecurity risks, as only in

partnership with industry the biosecurity

risks can be better managed.

Paul Damkjaer


10 April 2019


News in brief

Full details at thedcn.com.au

New Patrick manager

for Fremantle

Rita Antranik has received a significant

promotion at Patrick Terminals

Patrick Terminals have announced the

appointment of Rita Antranik as its

terminal manager for Fremantle.

Ms Antranik has experience across

several roles having worked with Qube,

Smit Lamnalco Towage and the Qube

general stevedoring business as operations

manager at Port Kembla.

“Patrick Terminals is proud to make the

first appointment of a female to the role of

Terminal Manager in Australia, particularly

as it coincides with International Women’s

Day,” the company said in an online


Patrick Terminals is one of the big two

container terminal operating companies in

Australia and handles more than 3m TEU

a year.

Patrick operates container terminals

at four key ports around the Australian

coast. Qube, as part of the Qube/Brookfield

consortium, owns 50% of Patrick Terminals.


Work on widening the outer harbour shipping

channel and swing basin at Port Adelaide is set to

proceed, following the issuing of a licence by the state

Environment Protection Authority.

This project is seen as essential in underpinning

the port’s ongoing effective operations.

Flinders Ports chief executive Stewart Lammin

said the company was committed to minimising any

environmental impact.

“We have been working with representatives of

the EPA, Primary Industries and Regions SA and

the South Australian Research and Development

Institute, to identify any risks and establish strategies

and protocols for addressing them,” Mr Lammin said.

“Central to that is the use of state-of-the-art

equipment to minimise turbidity, loss of seagrass

and any impact on fauna, adherence to an

agreed seasonal window and the imposition of

comprehensive risk management protocols.”

The Department for Environment and Water has

also approved a Native Vegetation Clearance permit

to allow Flinders Ports to clear what it says is “a small

amount of seagrass” as part of the expansion of the

outer harbour channel.

Flinders Ports has contracted international dredge

contractor Boskalis to do the channel widening.

Dredging is due to start in early June and should last

about three months.

Mr Lammin said the channel widening program

was necessary to ensure Port Adelaide’s continued

global relevance.

The $80m project is to widen the shipping channel

and swing basin to accommodate the world’s largest

cruise ships and the larger ‘post panamax’ container


The expanded channel is also expected to open

Adelaide up to larger cruise ships and underpin a

stronger tourism industry.

South Australian exports through the port exceed

$8bn annually with imports valued at about $6.5bn.

Reneefairhurs; Patrick/Qube

12 April 2019


Sea Swift and Puma Energy renew their vows

Northern Australian shipping company Sea Swift has

renewed a long-term contract with Puma Energy to deliver bulk

diesel across the Northern Territory.

Sea Swift general manager Scott Ezzy said the contract

would provide the continuation of sustainable services by

barge to remote NT coastal communities and islands, powering

businesses, schools, health centres and homes.

“We are also able to deliver more fuel and freight due to our

extensive network throughout the Northern Territory, and we

believe local residents feel the benefits,” Mr Ezzy said.

The contract aims to ensure Sea Swift’s fuel distribution

across NT will reach sites such as Galiwinku, Gapuwiyak,

Maningrida, Milikapiti, Milingimbi, Milyakburra, Minjilang,

Wurrumiyanga, Numbulwar, Pirlangimpi, Ramingining,

Umbakumba and Warruwi.

The fuel storage of Sea Swift’s 26 vessels and mobile assets

serve the power generation, fishing, retail, defence and mining


Sea Swift’s 30-year operations throughout NT and the

Aboriginal and Torres Strait Islander communities stem from

depots in Darwin, Gove, Groote Eylandt, Cairns, Weipa, Seisia,

Horn Island, Badu Island and Thursday Island.

The SeaSwift vessel Arnhem Trader plays an important role in the Top End.

Senate Committee examines shipping

Image supplied

Policies, regulations and taxes affecting

Australian shipping are under the

microscope of a Senate Committee.

The Rural and Regional Affairs and

Transport References Committee has

already received a series of written

submissions from key industry players, with

a formal report due on 13 August 2019.

Hearings were held in Melbourne

with representatives from ANL, Freight

and Trade Alliance, Maritime Industry

Australia, the Tasmanian Logistics

Committee and the Maritime Union

among those speaking.

Further submissions were made by

AMSA, the Australian Maritime Officers

Union, Toll Group, Department of

Infrastructure and the Department of

Home Affairs.

Particular reference is being paid to:

new investment in Australian ships and


a maritime cluster in Australia;

• the establishment of an efficient and

commercially-oriented coastal ship

licensing system and foreign crew

visa system;

• the interaction with other modes of

freight transport, non-freight shipping

and government shipping;

• maritime security, including fuel security

and foreign ship and crew standards;

environmental sustainability;

• workforce development and the seafarer

training system; and

• port infrastructure, port services and

port fees and charges.

As part of the hearings, the MUA

proposed a series of measures aimed at

salvaging Australian shipping. The union

measures included tax incentives to

support investment in ships, ship-related

infrastructure, and local seafarers. It also

suggested reform of the seafarer visa system

and reform of legislation and regulations

governing coastal trading.

The MUA also wants to see the creation

of a national strategic fleet to guarantee fuel

security and enhance the nation’s economic

security. In addition to the development of

a strategic approach to maritime workforce

development; and better ship safety and

pollution reduction measures.

“There’s no question that Australian

shipping is in crisis,” MUA national

secretary Paddy Crumlin said.

“Since 2013, we’ve lost more than half

our remaining coastal fleet, leaving the

country with just 12 large trading vessels to

carry our growing coastal cargoes.

“With the right political leadership and

policy settings, this dramatic decline can

be arrested and our shipping industry can

be rebuilt.”

thedcn.com.au April 2019 13


Wharfies vote for

“rolling industrial action”



Australian exporters of milk, honey, beef and carrots are

among those set to benefit from the Indonesia-Australia

Comprehensive Economic Partnership Agreement.

That was the view of National Farmers Federation chief

executive Tony Mahar who joined trade minister Simon

Birmingham in Jakarta for the signing ceremony.

“IA-CEPA will deliver improved market access for live

cattle, feed grains, beef, sheepmeat, dairy, sugar, fruit,

carrots, potatoes and honey,” Mr Mahar said.

“Indonesia is the world’s biggest importer of Australian

wheat and Australia is Indonesia’s largest supplier of red

meat. Australian dairy products and sugar are also highly

valued by our neighbour.”

Some features include immediate elimination of a 5%

tariff for milk and cream. This is on top of the immediate

elimination of 5% tariff for grated or powdered cheese; and

elimination of a 5% tariff after 15 years on Australian honey.

The tariff on carrots will be immediately cut to 10% from 25%

for 5000 tonnes per year, with the tariff further reduced over

time, down to zero after 15 years for an unlimited volume.

Mr Mahar also reflected the benefits for Australian

grains, saying international competitors were increasingly

challenging Australian agriculture’s market share in

Indonesia, including wheat from the Black Sea and red meat

from the Americas.

“In many instances, IA-CEPA will strengthen Australia’s

role as the preferred supplier to the burgeoning south-east

Asian economy,” he said.

“For example, IA-CEPA will significantly grow the quota

for Australian cattle to be exported with duty free access for

575,000 head of live male cattle per year, growing at 4% per

year to 700,000.”

Mr Mahar said carrots were at the forefront of the


“The tariff relief represents an extra $5 million to $10

million to Australia’s fresh vegetable exports per annum,”

he said.

Mr Mahar said it was up to the Australian Parliament

to ratify the agreement and some segments of the union

movement had already expressed concerns.

“It is a matter of significant national importance that free

trade agreements… enjoy bipartisan support and rapid

passage through both houses,” he said.

“In the face of drought and floods, it is vital that the future

interests of farmers are not compromised by short-term

partisan politics.”

Waterfront workers at the DPWA terminals in Sydney, Melbourne,

Brisbane and Fremantle voted to take “rolling industrial action”,

following a breakdown in negotiations on a new enterprise agreement.

The Maritime Union (now part of the CFMMEU) accused

the company of seeking to strip workers of income protection

insurance unless they accepted the company’s demands.

But in a statement, a DPWA spokesman said “we have always

been clear that we will not negotiate the EA under threat of or

during industrial action”.

Maritime Union national secretary Paddy Crumlin said the

ballot sent “an overwhelming message”.

“We will not be intimidated, we will not roll over and accept

your unfair agreement, and we are willing to take every step

possible to fight for a fair outcome,” Mr Crumlin said.

MUA assistant national secretary Warren Smith said the ballot

“overwhelmingly endorsed wide-ranging industrial action”.

“Workers are extremely angry at DPW for the attack on income

protection and are prepared to use that action to achieve some

justice,” Mr Smith said.

A spokesman for DPWA said their leadership was preparing for

enterprise agreement negotiations on 26 March, but were cancelled

“following the notice of intent to take protected industrial action.”

The four enterprise agreements with the union at DPWA

container terminals nominally expired on 28 February 2019

without replacement terms.

In a statement to employees, new DPWA managing director

and chief executive Glen Hilton talked of a difficult operating


“Recent decisions by shipping lines along with a weak outlook of

volume growth are, and will continue to have a profound effect on

the financial performance of DPWA,” Mr Hilton said.

“A3 Central (COSCO, OOCL and ANL) decided to cease calling

at Melbourne in August last year.

“In addition the AAS consortium (Maersk and MSC) will also

cease calling at Melbourne before the middle of the year. This

will have a combined effect of reducing volumes by 210,000 units

compared to the prior years. EAX is also considering options for

future calls at our terminals from the third quarter of this year.”

He said this volume loss had been compounded by weak export

volumes, driven in part by ongoing drought in parts of New South

Wales and Queensland.

“In the face of this, DPWA chose to make a very reasonable offer

to your representatives to roll over all EA’s on current terms which

included a wage increase of 2.6% from 1 March,” Mr Hilton said.

“This was a generous wage offer and is almost 1% higher the

current CPI.”

He said they also offered the continuation of income protection.

“The CFMMEU’s wage claim of 5%, plus 5% plus 5% over

three years as well as IP was predictably rejected by DPWA as it is

completely out of touch with the financial outlook of the company

and unsustainable in our competitive industry,” Mr Hilton said.

Australian Peak Shippers Association secretariat Travis Brooks-

Garrett said any industrial action would have an immediate

impact, particularly with delays to trucks and extra costs for

importers and exporters.

14 April 2019


Largest tanker at

Newcastle follows

big investment

Tony Corbett from Port of Newcastle, Gordon Lasker

from Stolthaven and Ben Serong from Stolthaven

Terminals with Pro Alliance in the background

The largest fuel tanker to enter Port of

Newcastle in its 220-year history arrived

in mid-March. The 244metre tanker Pro

Alliance berthed at Stolthaven’s Mayfield 7

bulk liquids terminal, a facility purposebuilt

for such vessels.

According to Port of Newcastle,

receiving vessels of this size is possible only

due to a four-year collaborative project

between Stolthaven, Port of Newcastle, Port

Authority of NSW and Svitzer to expand

channel capacity and accommodate deepdraft

inbound tankers of up to 245 metres

load on arrival.

Project partners committed to increasing

the port’s capacity via several activities,

including detailed channel simulation,

adding active escort tug capability to

the port’s fleet and the development of a

dynamic under-keel clearance system for

deep draft inbound ships.

Port of Newcastle executive manager

marine and operations Keith Wilks said

the Pro Alliance’s arrival was significant,

delivering supply chain flexibility and

efficiencies for the oil industry.

“We are proud to have facilitated the

arrival of Pro Alliance at Stolthaven’s bulk

liquids terminal at Port of Newcastle this

morning,” Mr Wilks said.

“In our 220th year of commercial

shipping, milestones such as this signify

the evolving role of the port in facilitating

global trade through our harbour and

driving growth in the regional, state and

national economies.”

Stolthaven managing director Gordon

Lasker said the company made a significant

investment in its fuel terminal facility.

“The arrival of our first LR2 tanker is the

realisation of a long-term investment in the

dedicated bulk liquids precinct at Mayfield

7 berth,” Mr Lasker said.

“We are grateful for the proactive

approach by Port of Newcastle to support

not only our current business but also our

future expansion plans.”

Stolthaven Australia has been operating

a bulk liquids precinct at Newcastle since

December 2013. A further 10 hectares

is currently under development and is

expected to deliver an expected capacity

build of 450,000 cubic meters of bulk fuels

and chemicals storage.

Littleproud announces steering committee for biosecurity levy

Port of Newcastle; Image supplied

David Littleproud, Minister for Agriculture

Veteran corporate leader David

Trebeck has been announced as the

chairman of the biosecurity levy

steering committee.

Mr Trebeck currently chairs

Australia’s Oyster Coast Ltd and has

been a non-executive director of six

ASX-listed companies during the past

two decades, including GrainCorp and

Incitec Pivot. He also has links with

shipping going back to the mid-1970s.

The steering committee also includes

Paul Zalai from the Freight Trade Alliance;

Margie Thomson from the Cement

Industry Federation; Mike Gallacher

from Ports Australia; Mike Sousa from

Qube Holdings; Rod Nairn AM from

Shipping Australia; Brian Lovell from the

Australian Federation of International

Forwarders; and Tony Mahar from the

National Farmers Federation.

The committee is expected to

design the levy and assist with its


“Australia’s border biosecurity

protects our food supply, 300,000 jobs,

the $60 billion agriculture industry and

our way of life,” Minister for agriculture,

David Littleproud said.

“Those creating biosecurity risk should

contribute fairly to addressing that risk,

remembering pests and diseases arrive

on the hulls and decks of ships and not

just in the imported product itself.

“If the taxpayer alone bears the burden

of protecting Australia then companies

being bailed out by the taxpayer are

unlikely to take our biosecurity seriously.”

Mr Littleproud said he was also

glad that his Labor counterpart Joel

Fitzgibbon had supported the rationale

for a biosecurity levy.

thedcn.com.au April 2019 15


Svitzer welcomes new tugs

Svitzer Australia is set to welcome two new vessels to

its fleet this year, as two UZMAR-built RAstar 3200 series

tugboats begin their journey from Turkey.

A delivery ceremony was hosted by UZMAR recently for

the two tugboats, Svitzer Ruby and Svitzer Redhead, designed

by Canadian naval architecture firm Robert Allan Ltd.

The 85-tonne bollard pull tug, Svitzer Ruby, is to join Port

Kembla in May 2019, and the 80-tonne bollard pull tug,

Svitzer Redhead, is to join the team in Fremantle in late April.

According to Svitzer, the two escort towage capable

vessels feature render recovery winches, FiFi1 class notation

for firefighting, LNG operational protection package and a

rear winch for over the stern towing operations.

Svitzer Australia managing director Nicolaj Noes said they

were always “working closely with our stakeholders, and

importantly, local port authorities to understand how we

can best meet their requirements, now and into the future,

with our national and diverse fleet of vessel types and


Svitzer Newton, welcomed to Fremantle last year, is to sail

to the east coast to join the Newcastle fleet.

“To that end, we have been working closely with our port

stakeholders Fremantle Ports and Port Authority New South

Wales to determine port operations requirements,” Mr Noes


“We look forward to welcoming Svitzer Ruby, Svitzer Redhead

and Svitzer Newton to their respective ports.”

With the new additions, Svitzer’s tug fleet will number

more than 432 vessels in over 100 locations worldwide.

Svitzer Ruby soon will be in operation at Port Kembla, New South Wales

WiseTech goes

to market

Pursuing a global growth strategy is behind WiseTech Global’s

latest share offering, chief executive and founder Richard White

has indicated.

The freight forwarding/tech giant announced an underwritten

$250m institutional placement to be followed by the opportunity

for eligible shareholders to participate in a share purchase plan

or offer.

The move necessitated a trading halt.

“Growth is our primary driver and, across the global logistics

industry, the opportunity now available to WiseTech is vast,” Mr

White said in a statement to the market.

“Through the offer

announced, we add

further strength to

our balance sheet and

increase the capacity at

which we can accelerate

our long-term organic

growth, through

relentless innovation

and the acquisition of

strategically valuable

assets in important

new geographies and

key adjacencies.”

Mr White said they

would continue to

execute on smaller, but

important, European

economies and key

WiseTech founder Richard White is looking

remaining markets

to pursue a strategy of aggressive growth

in Asia.

“As we expand geographically, we have also been widening our

reach into and across the supply chain,” he said.

“We are building out rapidly from our stronghold of

international logistics and complex cross-border compliance,

to leverage our innovation pipeline and put in place the key

technologies and assets to start building unassailable ecosystems.”

According to a statement on the WiseTech website, the

placement to raise $250m is underwritten by Goldman Sachs

Australia and Morgan Stanley Australia.


2019 EVENT

1-3 May Victorian Transport Infrastructure Conference 2019, Melbourne vicinfrastructure.com.au

23-24 May AFIF 2019 national Conference and Gala Dinner, Melbourne afif.asn.au

10-13 Sep Australasian Coasts & Ports 2019, Hobart coastsandports2019.com.au

8-10 Oct Pacific 2019 International Maritime conference, Sydney pacificexpo.com.au

28 Oct-1 Nov AMPI Pilotage & Ports Logistics Conference, Sydney ampi.org.au/AMPI2019

14 Nov 2019 Australian Shipping & Maritime Industry Awards, Melbourne dcnawards.com.au

To notify DCN of events please email us at editorial@paragonmedia.com.au

Image supplied; WiseTech Global

16 April 2019


Terry O’Connor resigns from Darwin Port

Port of Darwin chief executive

Terry O’Connor has announced his


However Mr O’Connor, who has

been CEO since 2011, is to remain at his

post until a replacement can be found.

Mr O’Connor was chief executive

before Landbridge’s acquisition

of the port in 2015 and has led its

transformation from a government

business to a privately-owned entity.

In a public statement, Landbridge

Australia managing director Mike

Hughes praised Mr O’Connor for his


“Terry has made a significant

contribution to Landbridge and to

Darwin Port over the last eleven

years,” Mr Hughes said.

“He was instrumental in ensuring a smooth

transition from public to private management

and more recently has led Landbridge’s

investment in port infrastructure and ongoing

transformation into a world-class port

capable of supporting the growing demands of

Northern Australia.

“On behalf of Landbridge, I would like to

thank Terry for his dedication, expertise

and exceptional leadership over his

years at the Port.”

Before joining the port,

Mr O’Connor served in the Royal

Australian Navy and held positions

with the federal government as a

maritime specialist. He also

worked in the private sector

in logistics and facilities


Terry O’Connor, CEO, Darwin Port

Export centres mooted for rural Queensland

Agricultural export centres soon could

be operating in the Queensland cities

of Toowoomba and Cairns, with the

state government seeking private sector


For Toowoomba, the government has

invited Wagner Group Holdings to submit

a business case for a possible agricultural

export distribution centre at Toowoomba

Wellcamp Airport.

Wagner Group famously developed this

airport from scratch.

Meanwhile in Cairns, the government

has invited Air Freight Handling Services to

submit a business case for a similar concept

at its airport.

State development minister Cameron

Dick said the government made an election

commitment to provide up to $10m for

each project from the $150m Jobs and

Regional Growth Fund.

“The delivery of this election

commitment will support the development

and construction of an agricultural

export distribution pilot centre in regional

Queensland,” Mr Dick said.

“Wagner Group Holdings will now start

work on a business case for Toowoomba

after progressing through the Regional

Export Distribution Centre Pilot expression

of interest process, which attracted detailed

proposals from across Queensland,” he said.

“An export distribution centre of this

type is new for Queensland, and we are

taking our time to get it right.”

Agriculture minister Mark Furner said

agricultural exports continued to generate

huge results.

“The export of Queensland’s premium

agriculture products contributed almost

$12 billion to our economy last financial

year,” Mr Furner said.

“Initiatives like the Regional Export

Distribution Centre Pilot will ensure

we can build on our reputation as a global


Member for Cairns Michael Healy said

valuable space on passenger flights could

be better utilised for agriculture exports.

“This is an excellent opportunity to

not only grow our agricultural output and

export, but to strengthen our tourism

industry by increasing economic viability

of airlines,” Mr Healy said.

LLA; ChameleonsEye

Cairns Airport, Queensland

thedcn.com.au April 2019 17


Inquiry gives shipping

national attention

The Australian Peak Shippers Association was among those who presented to a recent

Senate Committee examining some of the issues related to Australian shipping



Senate brought forward an inquiry into the

The first recommendation of FTA/APSA to

policy, regulatory, taxation, administrative

the committee related to the strengthening

and funding priorities for Australian

of minimum levels of service for Australian

shipping. As the world’s largest island,

shippers. We proposed that given the

and for an economy totally dependent on

non-use of Part X by many shipping lines

maritime trade, shipping deserves a place

(due to consolidation), these requirements

in the national conversation. However, for

should sit outside of the Part X regime. This

an industry weary with the coastal shipping

should include a non-negotiable minimum

debate, very few organisations lodged

notification period for the introduction

submissions, in fact only 15 submissions

of new rates and charges, or changes

were received in all, five of which were

to existing rates and charges, which is

provided by government agencies.

equivalent to the protections that already

exist in the United States for shippers.


The botched rollout of the Emergency

The interesting feature of this inquiry was

Bunker Surcharges in 2018 is a prime

the breadth of the terms of reference. It

example of why such protections are

recognised the complexity of the shipping

needed. In some cases, Australian shippers

sector and its interrelationship with freight

policy, trade policy and even competition

issues. The terms of reference included

were given four days’ notice before the

introduction of the EBS, while the same

shipping lines provided US shippers with

Travis Brooks-Garrett, director, Freight &

Trade Alliance and secretariat, Australian Peak

Shippers Association

an examination of “port infrastructure,

the same notification, except with a

freight supply chain. As has been widely

port services and port fees and charges”

30-day lead time. The extra lead time

discussed in Daily Cargo News, industry has

and “the interaction with other modes

was in deference to the strength and

seen a continuing deterioration of empty

of freight transport”. The committee’s

enforceability of the Federal Maritime

container management in this country.

interest in these areas, particularly the

Commission regulations.

So much so that Australian transport

effectiveness of Part X of the Competition

operators have rolled out industry-wide

and Consumer Act, infrastructure charges,


surcharges in response.

and even the Biosecurity Levy, was

FTA/APSA’s second recommendation

Unfair detention and demurrage

clearly evident in the hearings and in the

related to the spiralling situation regarding

practices also remain a persistent

questions raised by the senators.

terminal infrastructure charges and

issue, particularly with unforeseen

terminal handling charges, which are

and unprecedented events such as the


increasingly independent of each other.

brown marmorated stink bug emergency

Freight & Trade Alliance and the Australian

While shipping lines have been the

measures. When there are disputes over

Peak Shippers Association provided a

beneficiaries of increased competition in

invoices, they are impossible to navigate,

formal submission to the Rural and

stevedoring, it is now clear that Australian

with the opaqueness, or complete absence,

Regional Affairs and Transport Committee

shippers have not seen any of those

of any dispute resolution process or policy.

on 5 March 2019. To date, it is the only

benefits and now are paying twice for

We need to once again follow the lead of

submission that has been lodged on behalf

container terminal services. This is an

the FMC and establish fair and reasonable

of cargo owners.

area where some intervention, or some

industry practices in these areas.

Based on member feedback, the

formal rule-setting, is needed. There are

submission focused on detention and

very few people, who aren’t beholden to


demurrage practices; minimum levels of

infrastructure interests, who disagree.

FTA/APSA would like to thank the Senate

service; empty container management;

shipping line surcharges; dispute

mechanisms; and infrastructure charges/

terminal handling charges.


FTA/APSA’s third recommendation

requested stronger oversight of the sea

Committee for their time and interest in

these areas. We welcome the opportunity

to have shipping at the centre of a national


Image supplied

18 April 2019


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Building a shipping industry

in its own right

Actions must be taken to create a sustainable industry that enables

the nation’s maritime potential to be realised, writes Teresa Lloyd


overarching position concerning shipping

policy in Australia is that we ought to have

a sustainable, viable shipping industry.

This shipping activity can occur anywhere

and should encompass anything, including

freight, tourism, passenger movement,

port and harbour services, offshore oil and

gas, construction, scientific/research and

government services.

The potential breadth of Australia’s

shipping industry would be the envy of any

nation in the world such is the diversity of

the maritime task that naturally exists in

our region. We say, “would be the envy”

because Australia has thus far failed to

capitalise on the natural advantages that

our shipping industry presents.

Australia needs a maritime and shipping

policy that focuses on encouraging a

shipping industry in its own right - to

deliver the economic multiplier effects

that are universally cherished by maritime

nations (often known as maritime clusters)

and the maritime skills development so

many nations need.


The benefits that nations accrue from

having a strong shipping industry include

the creation of skills and know how;

control of strategic assets and ability to call

upon them for national support; a degree

of supply chain security; and economic

diversity and returns to the nation

generated from the sector.

As the world’s largest island nation,

Australia requires maritime skills more

so than most other countries. From the

requirement to ensure trade is facilitated

via Australian ports without incident,

to ensuring we meet our international

responsibilities as a country with one of

the largest port state control tasks, the use,

retention and development of maritime

expertise is vitally important.

The Australian maritime sector has a

projected shortage of seafarers of 560+

personnel by 2023 – a large proportion of

which is in the deck and marine engineer

officer skill sets. Further, the sector has

identified 80% of employers require more

than base level qualifications – they

require higher order skills and, critically,

experience. That experience importantly

must be on certain types of ships, tanker

experience being the most sought after.

Australia cannot rely solely on immigration

to fill those roles given the global imbalance

in supply and demand for quality seafarers

with projected shortages of 18% by 2025.

Much of the commentary regarding

shipping policy in Australia focuses on

domestic freight, however shipping policies

from leading maritime nations do not

draw a distinction between what the ship

is doing – rather the focus is encouraging a

shipping industry in its own right.


MIAL is an advocate for a fiscal and

regulatory regime that makes it attractive

for shipping and maritime businesses

to exist in Australia and affords those

Australian businesses every opportunity

to compete for work and participate in

maritime activity worldwide.

A report prepared by PwC shows

that in Australia in 2012-13 the total

(including the direct and induced impacts)

contribution of the shipping industry was

$21b in GDP; 45,000 jobs; and $1.3b in tax

revenue. The report went on to identify,

that with positive shipping policies those

figures rise to $25b in GDP; 54,000 jobs;

and $2.1b in tax revenue.


The impact of the economic cluster that

develops around a robust shipping industry

cannot be underestimated. Economic

diversity is provided not only via direct

shipping activities but also through the vast

array of technical disciplines and service

Teresa Lloyd, CEO,

Maritime Industry Australia

industries that provide necessary ancillary

support. This is the economic multiplier.

Actions must be taken to create a

sustainable maritime industry and enable

the nation’s maritime potential to be

realised. Increasing training without

securing opportunities to work to gain

experience, will not result in growing the

skills and know how to fill the strategic

shore-based roles Australia relies upon.


Australia needs a minimum number of

assets available to provide the training

and work opportunities. And that is why

MIAL supports the concept of a strategic

fleet. Such a fleet would provide adequate

training and work opportunities to secure

the skills base, provide stability for key

supply chains and offer strategic support to

the nation should they ever be called upon.

All nations with an indigenous shipping

capability either protect, subsidise or

incentivise the sector. Australia must do

likewise to create a pool of assets to train

our essential maritime skill set.

20 April 2019



WISTA members in Melbourne with

umbrellas to mark IWD

Empowering women at work

WISTA Australia held two events on 8 March 2019 to recognise International’s

Women’s Day. Alison Cusack examines some of the key lessons


Don’t shy away from the traditional men’s

ASCI’s future leaders program to celebrate

director of Insync Personnel, addressed a

type events either but also keep an eye out

International Women’s Day and address

sold out event in Victoria on International

for the WISTA events or similar.

the day’s global theme: #balanceforbetter.

Women’s Day, hosted at the offices of

Finally, continue to build your skills,

Audience members heard keynote

Norton Rose Fulbright. She focused on two

whether via more formal education or a

addresses from three experts who shared

key issues: how to ask for a pay increase

variety of short courses to focus on specific

their involvement in supply chain and how

and how to put your best foot forward to

skills, such as improving public speaking.

it has impacted their careers.

achieve an internal job promotion.

Speakers at the event included Marcia

There was a fantastic and lively round


de Almeida, supply-chain improvement

table discussion afterwards with participants

If you are in charge and want to help

superintendent iron ore/integrated

sharing their experiences and encouraging

facilitate the careers of women, there are

production and remote operations for BHP,

others to step up into their careers.

several factors to consider.

as well as Ella Cahtarevic, capacity manager

There were several lessons from the day.

To start with, are you conducting

Australia/New Zealand, MSC and WISTA

annual reviews to see how your employees

Western Australian chapter committee


are engaged? What are their future goals

member. The final speaker at the WISTA/

A key message was the simple one of

within the company?

ASCI event was Andrea Macau, investment

updating your CV so that you’re prepared

Ask yourself, do your female staff get the

analysis officer, Water Corporation

for those internal job opportunities (this

same opportunities to attend networking

and ASCI Western Australian chapter

also helps you track your successes for your

functions (golf days, events, continuing

committee member.

annual review).

professional development etc) as the men

Also don’t be afraid to ask for that pay

in your office? If not, maybe a formal policy


rise, but ensure you’re prepped with facts

should be in place to ensure a fair and

Meanwhile WISTA QLD recently held an

and figures. Ensure you’ve booked in a

balanced approach.

event in late February with renowned voice

formal review discussion with your boss so

Create an environment to facilitate

coach Lisa Lockland-Bell which allowed

they’re also prepared for the conversation.

conversations around career progression. Not

audience members to workshop their vocal

Getting a mentor is a great idea, whether

only conversations based around salary but

skills and present with added confidence.

internally in your business, or externally.

also access to further education, conference

Since July 2018 WISTA International has

It can be through a formal program or

attendance and innovative projects.

enjoyed consultative status with the IMO.

informal through your networks (stay

The IMO’s theme for 2019 is “Empowering

tuned for WISTA’s mentoring program later


Women in the Maritime Community”.

in the year).

WISTA Australia together with WISTA

I’d encourage all people and businesses


Then there’s the need to build your

networks and attend networking events.

Association partner ASCI, held an event

in Perth hosted by KPMG as part of

in the maritime community to aim towards

this goal in 2019.

thedcn.com.au April 2019 21


Korean VTS operators with delegates from a recent IALA

meeting, including VTS committee chair Monica Sundklev

from the Swedish Maritime Administration

Paving the way for

gender equality

Achieving gender equality within the maritime sector has been a slow process,

however, there has been progress in some areas, writes Jillian Carson-Jackson



expressed and therefore can’t be addressed.

out of recent reports on the status of

It isn’t enough that laws don’t prohibit

The panels that are setting agendas and

gender equality. The Maritime Industry

gender equality, they need to promote

making the decisions should have female

Australia Seafaring Skills Census 2018

equality. This includes recognising and

representation. The goal should not be to

reported the overall percentage of female

addressing harassment and discrimination.

fix women so they fit in, but to ensure the

seafarers at 5%. The details, however, show

It also means valuing work through

work environment promotes and engenders

only 3% for deck and 0.4% for engineers

transparency in wages, and supporting

equal participation.

with “other” at 23%. Looking at the

women in the workplace. This requires

employment of seafarers ashore, the overall

ensuring women are not discriminated


percentage of women drops to 3%. Masters

against if they wish to start a family, or

The news isn’t all bad. The MIAL census

and deck come in at 3%, engineers at 1%

decide to transition to another role.

shows an increase in female seafarers.

and “other” at 5%.

There are pockets of focus activity around


the world – for example, in South Korea


At a macro level, the ILO report highlights

17% of vessel traffic services officers are

On the eve of International Women’s Day,

the benefits of gender diversity in the

female. The ILO report shows women

the International Labour Organization

designing, planning and implementation

tend to rise to the role of manager faster

released its report, A quantum leap for

of infrastructure activities. Budgets need to

and with more advanced education.

gender equality – for a better future of work

respond to the priorities of women, be set

Some 44.3% of female managers have an

for all. While there are some gains, the

by women, and this needs to be reflected in

advanced university degree, compared with

report notes that there has been little or no

the formulation of policies – at the national

38.3% of male managers. However, the

improvement on narrowing the gender gap

and the industry specific level.

top job of CEO is still elusive, with the G7

over the past 20 years.

country data showing from between 0%

“Progress in closing gender gaps has


(Germany) to 4.6 % (US) of female CEOs.

stalled, and in some cases is reversing,” the

In the maritime industry we know women

What we know is that the journey is far

report notes. “The gender gaps with respect

change roles, going from ship to shore

from over. While governments, workers

to key labour market indicators have not

and sometimes back onboard again. What

and employers claim they are progressing

narrowed in any meaningful way for over

initiatives are in place to support women

gender equality agendas, this is not

20 years.” The report highlights that, over

through different work environment

supported by the data. How can we develop

the past 27 years, the gender employment

transitions? Some practical measures could

a transformative and measurable agenda for

gap has been reduced by less than 2%.

include implementing mentoring programs,

gender equality in the maritime industry?

The underlying thread in the report is

encouraging continuing professional

We all need to overcome stereotypes related

that current action is not resulting in

development, and providing opportunities for

to women in non-traditional roles and put

meaningful change. A “transformative and

education through focus programs and grants.

in place policies that are aimed at seeing

measurable agenda” is urgently needed, and

the report presents several key paths.

Without equal representation, the

needs of women cannot be properly

tangible results. Words are not enough;

2019 is a year for action.


22 April 2019



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Making Australian shipping

more competitive

Llew Russell examines some of the overseas trends that could be relevant

to the Australian maritime scene


from full time work in 2013 was the

opportunity to travel overseas on occasion.

Last year my wife and I cruised around the

Mediterranean, Scandinavia and the

Baltic States.

You might ask ‘what has all this to do

with the title of this article?’ The answer is,

the two cruise vessels we were on. The first

was Le Lyrial, a 264-passenger vessel owned

by the French cruise company Ponant

registered in France. The other, Silver Spirit,

was a 600-passenger vessel owned then

by the Italian cruise company Silver Seas

registered in the Bahamas, being an open

registry or what some would term a ‘flag of

convenience’ registry.


Le Lyrial had French officers, both on

deck and in the engine room, and foreign

ratings. A number of the “hotel” crew were

also French. The Silver Spirit had Italian

deck and engine room officers, ratings of

other nationalities and a smaller number

of hotel crew were also Italian. Other

than the officers, the majority of the

remainder of the crew were Filipinos but

there was a mixture of other nationalities.

Subsequently the Silver Seas Cruise

company was bought by Royal Caribbean



I wondered what lessons Australia

could learn from the international

competitiveness of these shipping

companies? Could these concepts be

translated into types of shipping other than

cruise shipping lines? If the right regulatory

environment was in place, I could not see

why it was not viable.

I recall almost two decades ago, the

Australia Japan Container Line (a joint

venture between P&O and Swires) had two

vessels in the Australia to North and East

Asian trades with Australian officers and

foreign crew.

There is every reason for new shipping

companies to emerge in Australia in

the right regulatory environment. It is

understood Australian officer wages

and conditions are competitive with

those overseas, especially those of many

European nations.


The Australian International Shipping

Register (AISR), which was established under

the Rudd/Gillard Labor government, does

not have one vessel registered. Details of the

requirements can be found on the website of

the Australian Maritime Safety Authority.

The objective of the Register is to be

competitive with other similar registries

overseas. It has clearly failed. There could

be a number of reasons but importantly it

does provide for mixed crews on registered

vessels. However, the vessels must have a

collective agreement with the seafarers

There is every reason for new shipping companies to

emerge in Australia in the right regulatory environment.

bargaining unit and it can (therefore not

necessarily) be based on the International

Transport Forum standard collective

agreement. In addition, the minimum

wage and minimum requirement for

compensation insurance is established

by ministerial determination. These

requirements are likely to be barriers to

registration but there is another major one.


Internationally, seafarers involved in

overseas shipping for 180 days or more do

not pay income tax. In Australia, the tax

Llew Russell AM

laws require payment of income tax by all

Australian residents. An exception will have

to be made if the dream of encouraging

Australian shipping to thrive is to be

realised. The removal of the tax barrier is

also important if an Australian shipping

company was to use an open registry with

mixed crew but with Australian officers

who would reside in Australia.


If the regulatory regime was improved

in these respects, one can envisage more

start-ups with every prospect of financial

success. This success could also see more

training cadets and an enhanced maritime

training regime in Australia.

The fulfilling of future placements in

the maritime industry such as port pilots,

tug crews, harbour masters and other land

based jobs requiring maritime experience

would be enhanced. There is also the

prospect of a critical mass being established

which could see more opportunities for

Australian ratings to emerge. The old adage

“if you can’t beat them join them” could be

very relevant here.


24 April 2019


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Logistics industry returns to the

MCG for debate and discussion

The famous Melbourne Cricket Ground was the setting for the Australian Logistics

Council Forum 2019, an event that brought together industry heavy hitters



Shipping Australia chief executive Rod Nairn

raised concerns over Labor shipping policy,

suggesting it could amount to handing over

fuel security to the Maritime Union.

Labor is on record as wanting to ensure a

strategic fleet of Australian-flagged tankers

that could be requisitioned during a conflict

or national emergency.

During one session, Mr Nairn

questioned Labor infrastructure spokesman

Anthony Albanese about the policy.

“My first concern is that I don’t see how

putting our fuel supplies into the hands

of a known militant union is a way of

improving resilience,” he said.

“I thought we would be better off to have

multiple flags, providing that from all over

the world from different sources and also

increasing our level of reserves to give us

that resilience.”

But Mr Albanese stood by the policy.

“I say yes we need multiple flags, unless

we act we won’t have one [Australia] flag

will be missing. Let’s not pretend that’s not

happening,” he said.

“The fact that your organisation, with

respect, is called Shipping Australia,

even though they’re the non-Australian

[shipping businesses], is in my mind a

recognition that there is actually a

Melissa Horne MP, Victorian

minister for ports and freight

national interest in having an Australian

shipping industry.

“That is the giveaway, the fact that you

have chosen that [name].”

Mr Nairn earlier praised Mr Albanese for

his support in connecting inland rail to the

ports of Brisbane and Melbourne and for

his intervention on the biosecurity levy.



Opposition infrastructure spokesman

Anthony Albanese hit out at the

government over its handling of the

proposed biosecurity levy, describing the

controversial policy as “a revenue grab”.

Mr Albanese, a former minister, was a

keynote speaker. He noted the levy arose

from the review of the inter-governmental

agreement on biosecurity.

“The review proposed a levy of $10 on all

shipping containers to take effect from July

1,” Mr Albanese told the gathering.

“But the government is attempting to

impose a general import levy based upon

volume on all shipping movements – this

appears to be a revenue grab,” he said.

“It has created understandable concern

about whether the money collected will

even be used for biosecurity because of

course, it is no hypothecated – no tax ever

really is.”

Mr Albanese said biosecurity was

important and had to be paid for.

“But the government has completely

botched this process.”



Progress towards gender balance in logistics

suggest participation parity is a century

away, according to director of the National

Association of Women in Operations

Louise Weine.

Ms Weine argued the case for “balance

for better” and said gender disparity within

logistics was no secret.

She noted an overall increase in female

representation in the sector from 25.9% in

2014 to 26.4% in 2018 and the percentage

of women in key management positions has

increased by 5% to 22.2%.

“I think it is fair to say that progress to

balance has been or is patchy and slow,” Ms

Weine said. “In fact, at the current rate of

progress it has been estimated that we are

over 100 years to balance.

“That is 100 years. So my goal for my

daughters to work into an environment

where they don’t feel like they are in the

minority is still quite a long way away.”



Victorian Minister for Ports and Freight

Melissa Horne says rail is imperative in

handling a burgeoning freight task around

the Port of Melbourne.

Ms Horne spoke at the ALC Forum

2019, one of her first industry events since

becoming minister following the state

election late last year.

“The port’s dependence upon road is

in a large part due to the fact that import

containers travel such short distances and

most are bound for the metropolitan area,”

the minister said.

“Of all capital city ports, only Adelaide

moves its import containers a shorter

distance than Melbourne – 87% of imports

and 52% of exports have metropolitan

destination or origin.”

Ms Horne was giving one of her first

public addresses since becoming minister

following the state election late last year.

“’With projected growth, this could

rise to over 30,000 trucks a day within the

term of the [50-year] lease – it is simply

unsustainable,” she said.

Ms Horne said Freight Victoria was

assessing a proposal by the Port of

Melbourne to deliver an on-dock rail

solution by integrating stevedore and rail

terminals at Swanson Dock.

David Sexton

26 April 2019


Josephine Laduzko from the Department of Agriculture, Paul Zalai from Freight and Trade Alliance

and Teresa Lloyd from Maritime Industry Australia, discuss the finer points of the biosecurity levy

This, she said, would be “a game changer

for rail, overcoming a key operational

constraint on using trains to move export

containers from regional Victoria to

overseas markets”.

“Better use of rail is one of the

conditions imposed by the government in

our lease of the Port of Melbourne,” the

minister said.

“However it is also a key step in

maximising the capacity of the Port of


Ms Horne also noted a commitment

in the Victorian Freight Plan to look at

regulating access charges at the Port of

Melbourne, “in particular, to making sure

the charges for trains do not disadvantage

exporters who opt for rail over road”.



Deputy Prime Minister Michael

McCormack has pledged to protect the

nation’s freight corridors from urban


Mr McCormack also discussed the

National Freight and Supply Chain

Strategy and also talked of the big projects

transforming the country including inland

rail and the Western Sydney Airport.

“Given that we are shaping the future of

all Australians, it is important that we get

it right,” Mr McCormack said.

“Amongst the priorities must be

the protection of freight corridors and

precincts from urban encroachment and/or

incompatible developments, that’s critical.

“We all know that. Governments of all

political persuasions are always pressured

by people who may just move into an area,

who may… then build a house and wonder

about planes going overhead or have a farm,

have it broken up into several blocks and

then wonder why the freight train wants to

have a line there.

“We need to protect those freight

corridors at all cost.”

He said the government “had the runs

on the board” leading into the next federal

election, particularly with the turning of

the first sod on the inland rail project.

Responding to criticism by Labor’s

Anthony Albanese about the lack of

connectivity between Acacia Ridge and

the Port of Brisbane, Mr McCormack

I don’t see how putting our fuel supplies into

the hands of a known militant union is a way

of improving resilience.

Rod Nairn

said the government would work with the

Queensland government to make inland

rail operate effectively.



QUBE general manager Maurice James

heaped praise upon the New South Wales

government for supporting the growth of

rail in and around Port Botany.

He contrasted this performance with

Melbourne where he argued too little

had been done to reduce the dependence

on trucks.

“What we have seen in Australia for the

last five to 10 years is one government with

a focus on rail and that has been the New

South Wales government,” Mr James said.

Mr James noted the NSW government

had pushed the federal government to

commit to duplication of the track into

Port Botany.

“I contrast that with Victoria over the

last 10 years until the last six to 12 months

that wasn’t really focussed on rail in a port

sense,” he said.

“We had a port authority in government

ownership that really didn’t believe in

metro port shuttles.”

Times were, he said, finally changing.

“We now have a privatised port (of

Melbourne) with, as part of legislation, an

objective to go back to government with a

rail strategy and it is very encouraging to

hear,” Mr James said.

Nationwide, Mr James said rail had

been efficient when it had been verticallyintegrated,

particularly evidenced by the

mining industry.

“The reality is the majority of the rail

networks are fragmented, multi-user,

multi-customer networks,” he said.

“What we have seen are governments

generally rating rail much lower than road.

We heard [earlier], road upgrades are often

driven by passengers or by votes and rail

wasn’t driven by that.”

Mr James said more freight on rail was

an important part of ports’ social licence

to operate.

“What we’ve seen is ports being

privatised, we’ve seen ports with plans

to significantly increase their volume,”

he said.

“Their social licence to operate in

the communities around them is driving

them and this will drive a modal shift

around road to rail in order to satisfy that

social licence.

“Rail will never exceed road in and out

of our ports. It will though, play its part in

significantly growing the volumes that go

in and out of our ports.”

thedcn.com.au April 2019 27


They say timing is everything. Buoyed by bumper

volumes both northbound and southbound in

2017/18 carriers ramped up capacity in the north

and east Asia trade last year, only for export

volumes to collapse and import rates to dive as

the year rolled on. Dale Crisp reports.

Osaka urban city sea port, Japan

Xxxxxxxxx Image supplied

28 April 2019




Who’d be in liner shipping?

Container trade analysts say history suggests that if

carriers have two good years in 10, they’re doing well – and

even that may be optimistic. The trade between north and

east Asia and Australia is the nation’s biggest and most

important, which is why over time it has attracted players like the

proverbial moths to the flame. But when the flame flickers …


In calendar year 2018 the southbound trade produced one of

its strongest growth years, at 7%, helping to explain why some

carriers thought an extra service and bigger ships could be justified.

Volumes from China grew 8%, while Japan receded 4%, Korea grew

1%, Taiwan slipped 1% and Hong Kong dropped 6%, although it’s

hard to know how much of the latter was simply business shipping

directly from South China instead of, as previously, moving via HK

transhipment. All in all the southbound N&EA trade hit 1.684m

TEU, of which China accounted for 1.45m. “This does not mean

North Asia services will end,” a carrier executive was quick to

assure, despite the huge importance of China continuing to grow

year on year. Japan still provided 62,000 TEU of southbound cargo,

Korea 75,000 and Taiwan 63,000 – although liftings from Japan

and Korea were hit by the demise of car manufacturing

in Australia.

Despite instinct suggesting otherwise, northbound trade from

Australia to N&EA actually grew in 2018, by 1.8% - but this growth

was almost entirely thanks to reefer cargoes which shot up by

9.7% on the back of strong demand for citrus, grapes and meat.

Dry cargo liftings were hit, with, most notably, grain, cotton and

wastes all in sharp reverse. Total northbound trade grew around

12,000 TEU in 2018 but still only reached 807,000 TEU – and that

growth went to China where liftings reached 484,000 TEU while

Japan (125,000), Korea (101,000), Taiwan (62,000) and Hong

Kong (32,000) were stable or slipping. That reefer growth also went

mostly to China, with Japan and Korea stable.

Xxxxxxxxx Songquan Image Deng supplied


One of the bright spots for carriers in recent years has been the

increasing Chinese demand for Australian wine but that looks to

have plateaued in 2018, with the N&EA total reaching 19,000 TEU

in 2018, just 500 TEU up on 2017. However, this compares with just

8500 TEU in 2015. The big year was 2016, when shipments doubled;

since then growth has been more incremental. Of course the

fundamental takeout from these overall figures is that the N&EA

trade remains harshly imbalanced, in the ratio of 2:1 southbound

over northbound, which means there’s a core structural problem

that lines are powerless to overcome. With those northbound

staples falling away carriers have had to revert to their earlier

practice of evacuating empties at every opportunity, either by filling

otherwise unused (paying) northbound slots or by chartering ships

to sweep up the empties (see accompanying article). “Our mantra

is ‘get the boxes out’,” says one trade manager. “That is, if you can

get them into and through the terminals in the first place.”


He notes the fall-off in southbound business at Chinese New Year –

generally expected but much more severe in 2019 than 2018 – saw

12 round voyages cancelled “which means 12 lost opportunities to

reposition empties”. And it is this fall-off in southbound business,

thedcn.com.au April 2019 29


combined with a simply terrible outlook for agricultural exports that

is, in the view of many in the industry, pushing things to a crisis.

As already noted, during 2018 Asian imports to Australia stayed

unexpectedly robust. But that 7% boost came against a capacity

increase of 19% as Korea’s Hyundai Merchant Marine found enough

friends to start its new A1X weekly service, the A3 group upsized

its ships from average 5700 TEU to 8000+ TEU and others took

advantage of shifts in charter markets to add 500-1000 TEU extra

space per ship. In no-one’s dreams were 19% more slots ever going to

be filled – not southbound and certainly not northbound.


Some sources say present southbound utilisation is running at no

more than 60% and carrier projections of quite reasonable import

growth in 2019 have been slowly slipping, from originally around

7%, to 5%, and now “we might have to re-think that pretty soon”.

There’s simply not enough cargo to go around, and after freight

rates survived a good part of 2018 at buoyant levels – up to twice

that of non-peak 2017 – they’ve since been heading south much

faster than the ships. The situation carriers find themselves in is

amply illustrated by the two key indices, the China Containerised

Freight Index and the Shanghai Containerise Freight Index, both

published by the Shanghai Shipping Exchange. The CCFI reflects

average indexed freight rates (all-inclusive spot and long-term

rates, excluding THCs) of 15 different carriers for shipments from











WA (Fremantle) Boomerang Thu 31 33 34 - -


(Port Adelaide)




(Port Botany)






Boomerang Wed 25 27 28 - -









































































































































































Much of the grain bound for export markets, such as that stored at

Kwinana Western Australia (pictured), is being diverted to eastern

states of Australia due to the drought there

Dalian, Fuzhou, Guangzhou, Nanjing, Ningbo, Qingdao, Shanghai,

Shenzhen, Tianjin and Xiamen. The overall index (01/01/1998 =

1,000) is based on both spot and long-term rates.

The December 2018 CCFI for the China-Australia/NZ route

stood at 787.54, down from 824.69 in November, and 13.3% below

December 2017’s 908.40. At the end of January 2019 the CCFI had

again eroded, to 766.94; by the end of February it was 718.82. The

SCFI reflects average USD spot rates (all inclusive, but excluding

THC) of 15 different carriers for shipments from Shanghai, to base

ports in the area of destination. The overall index (16/10/2009

= 1,000), is based on spot rates only, and shows a much more

alarming (for carriers) decline.

On the Shanghai-Melbourne route the December 2018 SCFI

fell to US$587.00/TEU, compared with 676.80 in November.

However, the comparison with December 2017 is stark: a 50.4%

fall from 1,184.20. By the end of January 2019 the index had fallen

further, to 532, and a month later was just 383. As this review was

completed in mid-March carriers were reporting spot rates from

central China had totally collapsed, to just US$250/TEU. With

northbound prices permanently stuck in the doldrums “we might

as well sail the ships both ways empty,” one exasperated executive

said, “we’d certainly lose less.”


While late-2017 rates were buoyed by the very strong southbound

volumes that saw carriers extract maximum returns as bookings

exceeded capacity and cargo was rolled, the 2018 peak failed to

meet price hopes – hopes that are now easily seen as unrealistic in

the context of the additional supply of slots.

In the early years of this decade, carriers in the N&EA/

EA-Australia trades, mostly under the auspices of the Hong

Kong-based Asia Australia Discussion Agreement, organised

variations of a slack-season capacity management program that saw

co-ordinated withdrawal of tonnage – that, in one notable year of

chronic over-capacity, ran from end-November to mid-August. But

now there is no AADA, nor any equivalent northbound discussion

ZakS Photography

30 April 2019


Northbound, things are looking “a little dire and miserable,”

says our master of the understatement. Absolutely no export

grain is moving from eastern states – because there isn’t any –

and a lot of Western Australia’s bumper crop is being diverted to

eastern domestic markets, and mostly in bulk carriers. And the

outlook is simply terrible. In its February crop report ABARES

revised downwards forecasts made as recently as December 2018,

such that it now expects the drought to cause the total area of

summer crops planted in 2018-19 to have fallen by 23%. ABARES

reports the complete failure of Queensland sorghum crops will see

production fall 9%, while cotton production is forecast to fall by

42% because of an estimated 44% contraction in the planted area.

Rice production is forecast to dive by 83%.


And there’s no carry-over from winter. Total Australian winter

crop production is estimated to have decreased by 20% in 2018–19

to 30.4m tonnes. Production of all the major crops is estimated

to have fallen, wheat by 19%, barley by 7% and canola by 41%.

Amongst other crops, chickpea production is estimated to have

fallen by 76% and oats 21%. The Bureau of Meteorology’s climate

outlook is for worsening dry conditions across most of the growing

agreement (covered by Part X of the Competition and Consumer

Act 2010), and so no officially-sanctioned forum to establish,

maintain and monitor a capacity management program. As at the

time of writing only two measures had been announced to deal

with the massive overcapacity: most significantly, Maersk (with

partners MSC and ONE) is cancelling the YoYo service between end

March and July (at least 12 sailings) and A3 is downsizing three of

the six central loop ships from 8500 TEU to 5700 TEU.


“We’re on the verge of a fun quarter,” a line manager says drily. “It

is clear 2Q 2019 is a lost cause and all our hopes are with 3Q and

4Q, but …” Another suggests his line still expects ships to be full

in the August-December peak and shippers will then be grateful

all that additional capacity came onto the berth in 2018: “After

the chaos of late 2017, when Christmas goods were still sitting

on docks in China, there’d have been hell to pay if we hadn’t


Several key people who spoke to DCN took the view that

although southbound rates were in carriers’ rather than shippers’

favour in 2018 it was shippers who had benefitted. “Customers

should be pretty happy,” one said, “time and again they tell us they

prefer rate stability and things were pretty steady during the year.

Compare that with 2017, when rates for 40-footers fluctuated from

US$600 post CNY to $2800 pre-Christmas.” Last year was far more

disciplined, he notes, while another suggests carrier consolidation

in the form of Maersk/Hamburg Süd, COSCO/OOCL, and ONE

contributed noteworthy stability.


Supply and demand fundamentals are ruling in 2019. “We’ve

known for months this was coming,” an insider confesses. “From

our perspective it’s not controllable so we have to structure

policy accordingly.” He is highly sceptical an announced 1 April

southbound GRI of US$300/TEU would garner more than a few

dollars, if that.





Key: N = Nansha, X = Xiamen, Y = Yantian







WA (Fremantle) Boomerang Mon 28 26 25 - -


(Port Adelaide)




(Port Botany)






Boomerang Thu 24 22 21 - -























































































































































































thedcn.com.au April 2019 31


One of the bright spots for carriers in

recent years has been the increasing

Chinese demand for Australian wine

but that looks to have plateaued...

consortium/service – and there’s rumour and conjecture

everywhere. The reality of the situation demands attention.

“As well, as new tonnage keeps pouring in to east-west container

trades carriers are under new pressure to cascade tonnage into

north south,” he notes, and another representative confirms “There

are a lot of studies within and between N&EA groups re upsizing to

consolidate but they’re going nowhere.”

areas of Queensland, NSW and Victoria. “Just how much the

impact of the flow-through of this drought has on Australians’

purchasing power is obviously of major concern for the inbound trade,”

one nervous line manager says. “Some carriers could always rely on

picking up a few dollars’ contribution to costs by “taking out the

rubbish” northbound but there’s now no meaningful tonnage in

recyclables. We’re dabbling more in logs but the rates are so poor

it hardly seems worth it, given the damage inflicted on boxes and

consignees’ inclination to require the logs in obscure places from

which it is costly and time-consuming to retrieve the containers.”


The more key players DCN tapped for this review, the gloomier

the atmosphere became. “This is really serious,” one wellconnected

observer claimed. “There’s real agitation amongst lines

and, overseas, everyone is talking to everyone about remedial

measures. Certain carriers have been pushing hard for structural

change – including the complete dissolution of one long-standing


“The world’s a strange place right now,” our pundit suggests. “The

whole Trump/China thing, and Brexit, are disrupting trade patterns

and we might like to think we’re insulated down here but we’re not.

Add in the effects of our federal election, an apparent slowing of

the economy, drought, stagnant wages, falling house prices and the

effect that has on consumer confidence. For container lines there’s

no light on the horizon.”

Another manager concurs. “We’re in a pretty stressful situation

in this trade,” he confesses. “Rates are as low as they’ve ever been

and it’s just not sustainable. It just seems to get worse every week.

Something has to give, but it’s going to take a lot to turn this



Final word goes to a line manager overtaken by fatalism. “They say

there are many right answers in shipping … one always has to live

in hope.”









Key: K = Keelung; T = Tokyo


WA (Fremantle) Boomerang Thu 27 25 29 -


(Port Adelaide)

Vic (Melbourne)


(Port Botany)

Qld (Brisbane)





Boomerang Wed 21 19 23 -
















































































































WA (Fremantle) Boomerang Mon 33 34 31 -


(Port Adelaide)

Vic (Melbourne)


(Port Botany)

Qld (Brisbane)





Boomerang Thu 27 28 24 -

























































































































Tables derived from carrier schedules and websites and compiled week ending March 15. © Dale Crisp.

32 April 2019


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Capacity lurch saturates trade with space

Last year this review opened with an observation of 12 months

of stability in the N&EA-Australia trade – in hindsight, a sure

indicator that things were about to change. Within weeks of

publication rumours began to circulate of a completely new

service starting, driven by Hyundai Merchant Marine’s (now

re-branded as just HMM) return as a vessel operator, and with at

least two partners, possibly including one newcomer to the trade.

Soon sources were confidently conveying news HMM would

be joined by Taiwan’s Evergreen Marine Corp and the CMA CGM

Group’s APL. The partners would provide two, two and one ship

respectively in the 5200-5800 TEU range (APL’s share was said to

be relatively modest). Port rotation would be Ningbo, Shanghai,

Yantian, Sydney, Melbourne, Brisbane with the first southbound

sailing expected to depart mid-August, just as peak import season

got underway. Some sources claimed Taiwan’s Wan Hai was set

to be the third member of the group and had gone so far as to

make inquiries with agents and stevedores - until APL stepped in,

presumably in the collective interest of keeping a newcomer out of

the trade. HMM and APL had both been unhappy since May 2017’s

Hamburg Süd/Maersk-led rejig of the AAUS group, which saw them

‘evicted’ and searching for new homes. The then financially-fragile

HMM could only manage to obtain slot charters while APL was able

to join NEAX with one ship, but both ended up with substantially

reduced allocations from China. HMM (enjoying new-found

bullishness thanks to the backing of the South Korean government)

also obtained slots on NEAX - necessary since, somewhat ironically,

the new service does not call at a South Korean port. There was

already space exchange between and some common members of

NEAX and CAT; it was said the Taiwanese lines for some time had

been keen to replicate the successful three-loop product of the

A3 consortium (ANL, COSCO Shipping Lines, OOCL) with its

targeted but overlapping northern, central and southern strings.


On 14 June 2018 the new weekly operation formally broke cover,

designated A1X (HMM), CAE (EMC) and CA6 (APL) by the

respective carriers, and said to employ five traditional panamax

ships, at average 4600 TEU - smaller than previously indicated.

The partners labelled the service “premium express” and claimed

the market’s fastest transits from Yantian and Shanghai to Sydney

of 11 days and 14 days respectively. Hutchison in Brisbane and

Sydney and ICTSI’s VICT in Melbourne were chosen as Australian

terminals. The first southbound departure from Ningbo was

advertised as the 4571 TEU Hyundai Supreme (previously used on



ANL/Cosco Shipping/OOCL


Melbourne, Sydney, Brisbane, Yokohama, Osaka, Busan, Qingdao,

Shanghai, Kaohsiung, Melbourne



6 x 4760-

5780 TEU

Cosco Shipping/OOCL/ANL

A3Central (5) [PIL SAC (1)]

Sydney, Melbourne, Brisbane, Kaohsiung, Xiamen, Ningbo,

Shanghai, Ningbo, Sydney



6 x 8063-

8501 TEU

Cosco Shipping/OOCL/ANL

A3South [PIL SAS]

Sydney, Melbourne, Brisbane, Xiamen, Shekou, Hong Kong,




5 x 5668-

5888 TEU

ANL/Cosco Shipping/ OOCL/PIL


[APL NZ2, Hapag-Lloyd NZX] (1)

Hong Kong, Keelung, Shanghai, Ningbo, Shekou, Kaohsiung,

Brisbane, New Zealand, Hong Kong



7 x 4178-

4578 TEU

Hamburg Süd/Cosco Shipping/ ONE


Tokyo, Kobe, Busan, Shanghai, Yantian, Hong Kong, Brisbane,

New Zealand, Tokyo



6 x 3853-

4538 TEU

Maersk Line/MSC

YoYo/New Panda (4) [Hamburg Süd AAUS SL,


Kaohsiung, Xiamen, Nansha, Hong Kong, Yantian, Melbourne,

Sydney, Brisbane, Kaohsiung



5 x 4738-

5042 TEU


A1X/CAE/CA6 [Sinolines CAE]

Ningbo, Shanghai, Yantian, Sydney, Melbourne, Brisbane



5 x 4253-

5060 TEU

Maersk Line/ONE

Boomerang/AUS [MSC Wallaby, Hamburg Süd


Yokohama, Osaka, Busan, Qingdao, Shanghai/Yangshan, Ningbo,

Brisbane, Sydney, Melbourne, Adelaide, Fremantle, Southeast Asia,

Fremantle, Adelaide, Melbourne, Sydney, Brisbane, Yokohama



13 x 4544-

6976 TEU

Mariana Express Lines


Kaohsiung, Qingdao, Shanghai, Ningbo, Nansha, Hong Kong,

Surabaya, Darwin, Port Moresby, Townsville, Gladstone, Kaohsiung

Fortnightly 3 x 1800


ONE/Evergreen/Yang Ming/APL/Hapag-Lloyd


[HMM A2X, Sinolines NEAX, TS Lines NEAX] (2)

Melbourne, Sydney, Brisbane, Yokohama, Osaka, Busan, Qingdao,

Shanghai, Ningbo, Melbourne



6 x 4211-

5090 TEU

Yang Ming/Evergreen/TS Lines/Sinolines/PIL


[APL CA2, Hapag-Lloyd CAT, ONE CAT]

Sydney, Melbourne, Brisbane, Kaohsiung, Ningbo (3), Shanghai,

Shekou, Kaohsiung, Sydney



6 x 4211-

4444 TEU

*Ship operators, with service designations in italics. Slot charterers in square brackets. (1) Southbound only. (2) There are slot-swaps between specific members of these services.

(3) Ningbo dropped from end-March. (4) This service will be suspended from end March until July. (5) During southbound low season every second ship will be c.5700 TEU.

34 April 2019


Hyundai Supreme

the AAUS service when HMM was a full member, prior to May

2017) on 17 August. In announcing the new partnership HMM

noted that hitherto its only current China-Australia capacity was

through a slot purchase (on the YoYo/Panda/CAE/AAUS service),

while EMC said the expansion in service offerings was in response

to the increasing trade demand on the route.


HMM also announced it was in the process of elevating its

Australian agent (then a joint venture with Inchcape Shipping

Services) to a subsidiary status “to strengthen its position in

Australia and provide more stable service”. Simultaneously,

EMC was reported to be taking full ownership of its local agent,

Evergreen Shipping Agency (Australia) Pty Ltd, established in 2002,

which has branches in Brisbane, Sydney and Melbourne. Trade

watchers declared the new service would hardly be welcomed by

the East Asia-EC Australia trade’s existing players (and so it has

proved). But HMM, EMC and APL were encouraged not only by

2017’s southbound peak season – of which frenzied overbooking

and cargo rolling ex-China was a feature - but also by unexpectedly

long-and-strong southbound volumes in the first half of 2018, with

southbound rates holding at levels double the previous year’s.


However, it was immediately evident that 2018 northbound liftings

could not hope to match 2017’s grain-driven bonanza, and the

extra capacity on both legs would have an inevitable impact on

profitability (see accompanying article). Meanwhile, coincidentally

– or not – also on 14 June the A3 consortium announced moves

to quickly protect what it regards as the premium product in the

N&EA-Australia market by making adjustments to two of its

three weekly loops to provide “more competitive service in both

directions and comprehensive coverage”, also from August. While

the A3N (northern) loop remained unchanged, some port calls

were shuffled between A3C (central) and A3S (southern) strings

and extra calls added. A3C‘s port rotation added northbound

calls at Kaohsiung and Ningbo for a new rotation of Shanghai,

Ningbo, Sydney, Melbourne, Brisbane, Kaohsiung, Xiamen,

Ningbo, Shanghai, while A3S shed Kaohsiung to rotate Xiamen,

Shekou, Hong Kong, Sydney, Melbourne, Brisbane, Xiamen. While

it was unclear at the time of this announcement whether A3

intended to proceed with a long-mooted upgrade to larger tonnage

on the central loop, before long it became known the partners

would introduce 8000 TEU ships – and indeed add a sixth to

accommodate the additional port calls.

When A1X actually arrived it had none of the foreshadowed

tonnage. Instead HMM contributed the chartered 5042 TEU

Pamina and 5060 TEU MP The Edelman, Evergreen the 4353

TEU Ital Moderna and Ital Melodia (both previous N&EA service

participants) and APL (nominally) the 4253 TEU Navios Lapis. The

former AAX vessel CMA CGM Puget (4367 TEU) has recently taken

over from Navios Lapis.



Sheila Fitzgerald

Austral Asia Line (5,6)


Austral Asia Line (5)


Swire Shipping

APA (5,6)

Swire Shipping


Kobe+, Busan, Incheon, Tianjin, Bayuquan+, Shanghai, Kaohsiung, Brisbane,

Newcastle, Port Kembla+, Melbourne, Adelaide+, Portland+, Gladstone+, Mackay+,

Townsville+, Kobe+

Tianjin, Busan, Shanghai, Kaohsiung, Singapore, Darwin+, Port Hedland/ Dampier+,


Kobe+, Busan, Incheon, Tianjin, Bayuquan+, Shanghai, Kaohsiung, Brisbane,

Newcastle, Port Kembla+, Melbourne, Adelaide+, Portland+, Gladstone+, Mackay+,

Townsville+, Kobe+




2 x 2028 TEU

1 x 2118 TEU

2 x 969 TEU

2 x 2028 TEU

1 x 1158 TEU

Shanghai, Ningbo, Kaohsiung, Nansha, Lae, Port Moresby, Townsville, Kaohsiung 20 days 1 x 2564 TEU

1 x 2500 TEU

(5) Actual port calls may vary per voyage. (6) AAL and Swire Shipping operate these services under a VSA; each carrier has own port rotation. + Inducement calls

thedcn.com.au April 2019 35


In June CMA CGM Eiffel (4404 TEU)

suffered a hull crack and after repairs

in Melbourne was replaced by the 4353

TEU Cuckoo Hunter for one voyage.


A3C’s upsizing has seen larger tonnage on high rotation. While the

8063 TEU OOCL Seoul and OOCL Rotterdam have been constants,

ANL contributed the 8110 TEU APL Lativia which was soon

renamed, far more relevantly, ANL Gippsland. For its part COSCO

SL launched with the 8501 TEU Cosco Thailand, 8814 TEU Northern

Jade and 8465 TEU Lloyd Don Pasquale. But after one voyage

Northern Jade was replaced by the 8530 TEU Xin Fei Zhou, with it

too replaced after one rotation, by the 8501 TEU Cosco Indonesia.

Meanwhile, Xin Fei Zhou disappeared after one trip and the 8501

TEU Cosco Korea appeared. Now, with A3C partly downsizing for

the southbound low season, Cosco Indonesia is replaced by the 5762

TEU former MSC charter E R Sweden, Cosco Thailand by the former

5668 TEU ANL/AAX charter Xin Qin Huang Dao and Cosco Korea by

the 5446 TEU Cosco Hamburg. Nevertheless, the addition of A1X –

“which wasn’t needed”, the marked upsizing of A3C and the usual

capacity creep elsewhere resulted in a 19% increase in space in

2018 – which was never going to be filled.

er and Biosecurity Compliance Program

/20 - CPD and CBC

rade Alliance (FTA) is accredited by both the Department of Home Affairs and


tment of Agriculture and Water Resources to deliver Continuing Professional

ent (CPD) and The Continued A3 partners Biosecurity have migrated Competency the Northern (CBC) loop training. vessels up

incrementally, from the 4250-4500 TEU mark to just over 5000

es the following high quality, practical, cost effective and flexible solutions

TEU average, with ANL providing four, Cosco one and OOCL one.

ur annual customs broker licensing and import Biosecurity accreditation

nts. A3S (the southern loop) has remained relatively constant, anchored

by five ships of c.5800 TEU provided by Cosco and OOCL.

The CAT service has also been fairly consistent. In early June



the heavy-weather damaged YM Efficiency was replaced by the 4253

ing the following conference-style FTA offers extensive material via

TEU YM Vancouver, while YM Portland suffered engine damage near

e you will obtain 24 CPD points

www.ComplianceNetFTA.com.au with course,

te the mandatory PNG 2019/20 during CBC a southbound resources voyage in and late online July assessment and was replaced available at by

Session: the 4253 TEU Navios Dedication. listed prices. After just one trip back in CAT

.30am to 4.30pm) YM Portland was again withdrawn, FTA members to are be replaced offered unlimited by the CPD 4253 and TEU CBC

2019 – Novotel, Brighton Le Sands content for a price of $150 (excl GST) per person

Navios Delight but was back per after accreditation one missed period trip. (1 April Fleet to 31 composition


(8.30am to 4.30pm

remains at Yang Ming x 3, and one each from Evergreen, TS Lines

2019 – Novotel, Brisbane Airport Further discounts are offered to businesses with

and Sinolines. At the end of multiple March purchases CAT dropped with the calls option at for the an

E (8.30am to 4.30pm)

all-inclusive invoice for FTA Premium Membership

e 2019 – Hyatt heavily-pressured Place, Essendon Fields Ningbo market.

and CPD / CBC training – price on application to

mber and early bird member


ply -


, FTA will also offer additional CPD

BC training through a series of legal

kshops and online courses.

and Biosecurity Compliance Program

Border & Biosecurity Compliance Program

2019/20 - CPD and CBC

2019/20 - CPD and CBC

Freight & Trade Alliance (FTA) is accredited by both the Department of Home Affairs and

the Department of Agriculture and Water Resources to deliver Continuing Professional

Development (CPD) and Continued Biosecurity Competency (CBC) training.

FTA provides the following high quality, practical, cost effective and flexible solutions

to meet your annual customs broker licensing and import Biosecurity accreditation


Freight & Trade Alliance provides the following high quality,



practical, cost effective and flexible solutions to meet your

We are hosting the following conference-style FTA offers extensive material via

events where you will obtain 24 CPD points

www.ComplianceNetFTA.com.au with course,

and complete the mandatory 2019/20 CBC

resources and online assessment available at

Information annual Session: customs listed broker prices. licensing and import biosecurity

SYDNEY (8.30am to 4.30pm)

FTA members are offered unlimited CPD and CBC

Tues 9 April 2019 – Novotel, Brighton Le Sands content for a price of $150 (excl GST) per person

accreditation requirements.

per accreditation period (1 April to 31 March).

BRISBANE (8.30am to 4.30pm

Thurs 2 May 2019 – Novotel, Brisbane Airport Further discounts are offered to businesses with

multiple purchases with the option for an

MELBOURNE (8.30am to 4.30pm)

all-inclusive invoice for FTA Premium Membership

Wed During 19 June 2019 – Hyatt Place, 2019, Essendon Fields FTA and CPD will / CBC training also – price on application offer to additional CPD points and

Student, member and early bird member


discounts apply -

refer CBC www.ftalliance.com.au/upcoming-events training through a series of legal forums, workshops

During 2019, FTA will also offer additional CPD

points CBC training through a series of legal

forums, and workshops online and courses. courses.


NEAX has seen some tonnage shuffling, dating back to December

2017 when Hapag-Lloyd’s Seoul Express was involved in an incident

near Shanghai and was replaced by the 4620 TEU RHL Constantia

for one round voyage; Seoul Express departed NEAX again in

October to join the ‘new’ OVSA between ANZ and WCNA, with the

5060 TEU MP The Brady taking its place; in turn that ship has now

been replaced by former MSC/ANL/Maersk/APL charter SC Mara

(5050 TEU). In June CMA CGM Eiffel (4404 TEU) suffered a hull

crack and after repairs in Melbourne was replaced by the 4353 TEU

Cuckoo Hunter for one voyage. In September 2018 ONE’s Brooklyn Bridge

left NEAX, to be replaced in succession by the 5026 TEU Tianjin

Bridge and 4975 TEU RDO Favour before returning in February 2019.

The rest of the NEAX fleet comprises Evergreen’s 5652 TEU sisters

Ever Lirica and Ital Libera and Yang Ming’s 4253 TEU YM Seattle.

Maersk’s ‘premium’ Boomerang service fleet has seen a number

of substitutions, to be expected in a 13-strong deployment (an

extra ship was added after the SE Asian leg was extended to include

Laem Chabang in April 2018). Size has remained approximately

constant, at an average c.5500 TEU, although at the time of writing

Maersk had replaced two other c.5750 TEU units with smaller

4258 TEU-4544 TEU ships, in what may have been a seasonal

downsizing. Contrarily, also scheduled was the 6976 TEU Northern

Magnum. As for Maersk’s YoYo (more commonly known as AAUS

until Maersk replaced December 2017 acquisition Hamburg Süd as

the novated carrier under Part X) the fleet deployment can best be

described as bizarre, with only the MSC contribution, the 5043 TEU

MSC Anya, reliably employed. Maersk has scheduled everything

from the 2824 TEU Aldi Wave to the 6622 TEU Cap Arnauti, and

used the service to reposition five 3028-3364 TEU ships from the

OC1 service to China for drydocking and return. The YoYo service

is completely suspended from end-March until July, but not before

one voyage by the 6732 TEU Northern Magnitude, likely scheduled

with empties evacuation in mind. Maersk is covering YoYo’s

absence through slot purchases on A1X, A3C and A3C.

The two N&EA services that call only Brisbane, southbound en route

to New Zealand, have seen only modest changes. The ANL-led ANZEX

currently employs four ANL-supplied ships and one each from Cosco,

OOCL and PIL. In ANZL, where Maersk has taken over Hamburg Süd

rights as per YoYo and a number of other services, the 4658 TEU Maersk

Garonne and 4650 TEU Safmarine Mulanje have displaced the 4868

TEU German charters Cap Coral and Cap Cleveland. ONE supplies two

vessels (4538 TEU) as does Cosco (4178 TEU).


We are hosting conference-style events where you will obtain

24 CPD points and complete the mandatory 2019/20 CBC

Information Session:

BRISBANE Thurs 2 May 2019 – Novotel, Brisbane Airport

MELBOURNE Wed 19 June 2019 – Hyatt Place, Essendon Fields

Student, member and early bird member discounts apply



FTA offers material via www.ComplianceNetFTA.com.au with

course, resources and online assessment. FTA members are

offered unlimited CPD and CBC content for a price of $150 (excl

GST) per person per accreditation period. Discounts are offered

to businesses with multiple purchases. Price on application to


Sheila Fitzgerald

36 April 2019



Proud winners of the Liner Trade Award | Australia – North East Asia

At the 2018 DCN Australian Shipping & Maritime Industry Awards



On track to a

Aerial view of Swanson Dock container

terminal, Port of Melbourne


38 April 2019


cleaner future

With recent record

trade figures and an

expanding freight task,

Victoria’s two largest ports

want to grow their businesses

sustainably, writes Paula Wallace

thedcn.com.au April 2019 39


Brendan Bourke presides over what

is widely accepted as the largest

container port in the nation.

Following the release of recent trade

growth figures, it was no surprise that

he was in a bullish mood during a recent

conversation with Daily Cargo News.

“In the 2017-18 year we saw our total

trade grow 8.5%, the strongest recorded

in six years which is consistent with the

city and region’s population growth and

Victorian economic growth,” he said.

Based on this growth and future

projections, the Port of Melbourne is

preparing for a future where it will handle

almost 9m TEU by 2050.

“Our business focus and strategy for

2019 is preparing the port for growth

to meet the future freight demand and

working across the supply chain to drive

efficiencies and productivity,” Mr Bourke said.

In the first half of the 2019 financial

year, total port trade was up 4.6% with

commodity trade up 0.9%, with full

container imports the largest contributor.

Other cargo types contributing to the

increase were wheeled unitised cargoes (an

increase of 14.5%), liquid bulk imports (up

7.2%) and dry bulk imports (up 4.6%).


Mr Bourke emphasised rail would be crucial

in the future.

“Whilst our trucking transport sector is

coping with our current freight needs, rail

must play an increasing role in servicing

the port if this future growth in demand is

to be efficiently serviced,” he said.

Port of Melbourne is currently focused

on its “port rail solution” which aims

to provide a modal choice by improving

cost competitiveness and rail reliability.

The plan aims to improve rail access and

efficiencies into and out of the port, and

promote investment in outer metropolitan

intermodal rail terminals.

Late last year the Victorian government

made a public commitment to work with

the Port of Melbourne on a proposal to

progress a comprehensive “on-dock rail

solution”, providing efficient port access for

all container supply chain users.

“We are proposing a ‘port rail solution’

that includes infrastructure investment

from us and a new commercial and

operating framework that will meet

industry expectations and deliver a long

awaited rail solution,” Mr Bourke said.

“We want to take the cost out of the

supply chain and provide improved service

levels in order to maintain a competitive

supply chain,” he said.

“We also see our ‘port rail solution’

as a means of dealing with community

concerns over the increasing numbers of

trucks as the port’s volume grows.”


The Port of Melbourne services a

geographically diverse trade catchment.

In the context of a port that services

farmers, exporters and importers, Mr

Bourke reinforced the necessity of rail.

“We have positioned ourselves

historically with strong infrastructure

investment to be competitive in contestable

trade regions,” he said.

“We need to keep pace with competing

investments,” he said, adding the Port

of Melbourne had determined rail as a

more competitive choice to keep pace with

import and export demand.

“We are currently engaging with

industry in regard to the operating

framework of our proposal,” Mr Bourke

said, adding that rail was an immediate

solution, not one decades away.



Greater utilisation of rail at ports is also

supported by the Victorian Transport

Association, which counts among its

members freight operators across road, rail

and sea.

Such a large freight task around the

port throws up a host of issues for landside

operators as well.

“We applaud the fact that we’re building

the infrastructure and putting rail into

Port of Melbourne has

propsed a comprehensive

“on-dock rail solution”

Shuang Li

40 April 2019



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The removal of Toll’s shore

ramps at Webb Dock


Enhanced capacity and reliability are key objectives of Toll

Group’s investment in wharf infrastructure, allowing its two

new 700 TEU vessels that traverse Bass Strait to operate at

maximum capacity.

Toll executive general manager Tasmania and shipping

Steven Borg, said the company’s motivation in investing in

ships and terminals was to provide capacity for customers all

year round and not just provide a day-in, day-out service.

In February, Toll unveiled new ships Victorian Reliance II and

Tasmanian Achiever II.

This marked the latest stage in its $311m investment in the

Bass Strait trade, including $172m on the two new ships and

major upgrades to Webb Dock at Melbourne.

The 210-metre vessels were commissioned by Toll to move

freight between the Australian mainland and Tasmania,

increasing cargo capacity by more than 40% on each voyage to

meet anticipated demand for the next two decades.

The improvements to Webb Dock enable more efficient

docking and loading of the new ships and include upgrades to

the wharf infrastructure and terminal space.

“Toll has been fortunate to secure an additional seven

hectares of land, where we are currently undergoing

reasonably large civil works to expand the shipping terminal’s

footprint,” Mr Borg said.

“The terminal expansion will be finished by the end of

this year, while the upgraded wharf and shipping operation

commenced in March.”

Toll upgraded the wharf structure to suit the new vessels,

replaced the link spans, installed additional wharf furniture and

increased the size of the berthing pocket, which required some

dredging and installation of a new scour protection system.

In port, the new ships will connect to the local power

grid, eliminating the need to generate power from their

diesel engines.

A new wharf management system and customer booking

software will improve terminal operational procedures to

minimise traffic congestion and enable better freight tracking

and monitoring of refrigerated cargo.

“There was significant strengthening of the wharf,” Mr

Borg said.

“Link spans were replaced, and civil works were required in

the foundation to cater for those size ramps and link spans.”

A 350-tonne crane was needed to lift the new shore ramp

into place, which is 27 metres wide, 24 metres long and weighs

almost 100 tonnes.

In total, around 72,000 construction hours have gone into

the wharf upgrade at Webb Dock which also involved 100

hours of drilling, the demolition of 270 tonnes of concrete and

the excavation of 6750 cubic metres of soil.

Toll currently services a multitude of industries operating

across Bass Strait and Mr Borg expects the balance of cargo to

remain largely the same.

“From Melbourne to Tasmania we carry a significant

amount of FMCG and retail cargo… raw materials, packaging,

automotive, earthmoving and civil equipment.

“What we’re saying and what we’re building is the vessels

and the infrastructure to cater for all customer demands for

52 weeks a year, for many years to come,”he said.

“Customer and industry feedback suggests there are

restrictions on growth and this will provide greater opportunity

for those customers to grow and get more products to their

markets, more quickly.”

Toll Group

42 April 2019



Whilst our trucking transport sector is coping

with our current freight needs, rail must play

an increasing role in servicing the port.

Brendan Bourke, Port of Melbourne CEO

the network more strongly than it is,” VTA

chief executive Peter Anderson said.

“We’ve approached the government

with a landside project for ports that

would make operations more efficient and


The VTA also has a focus on reviewing

heavy vehicle licensing.

“We made a decision some time ago that

licensing is an impediment to our industry

because we want young people to get license

and they can’t do that under the current

system,” Mr Anderson said.

“With government we have initiated

a program where we put people under

instruction for eight days and then straight

into a job. Within eight days they have

enough skills to work professionaly in our


Some of the current issues for VTA

members include fees and penalties, asset

utilisation, vessel bunching, local rules,

container handling, duty payment process,

local community amenity and truck queue

waiting times.

“The industry has struggled immensely

with an unpredictable increase in costs

which has put pressure on businesses to

plan for the future,” Mr Anderson said.

“That has been interpreted through

industry charges, a doubling of tolls and

unregulated processes in ports that allow

individual stakeholders to put pressure on

certain elements of the supply chain.

“The landside sector of the port supply

chain is at the bottom of the food chain,

that means they are a taker of direction,

not a giver.”

Mr Anderson said access was another

key issue.

“The general population don’t

understand how supply chains work which

means there’s a natural tendency to dismiss

the truck on the road as an impediment,”

he said.

“A truck is a workplace… and to curfew

trucks off the road is like telling people

they can’t turn up to their office.”

A plan brokered by the VTA and the

Maribyrnong Truck Action Group is

intended as an example of the freight

industry’s strategy to address community

concerns about heavy vehicles and raise

its profile.

“It demonstrates the values and

efficiencies that can be gained by transport

companies renewing their fleet with

younger vehicles,” Mr Anderson said.

The Maribyrnong Cleaner Freight

Initiative, which requires government

support, is aimed at helping the transport

industry transition to permanent truck

curfews the state government plans for

roads after the West Gate Tunnel is built.

Under the plan, accredited operators

would have an additional hour every day

during the week to use roads where there

are truck curfews, with no change to access

on weekends. Unaccredited operators

would have their access reduced by two

hours per day during the week, and by two

hours on weekends.

To qualify, operators must use prime

movers that have low emission Euro 5

compliant or greater engines. Exhausts

would be fitted with emission control

systems, and dangerous goods placarded

vehicles required to increase visibility.

“We’ve come down the environmental

line…and this puts commercial pressure

on the industry to comply with what the

community really wants,” Mr Anderson

said. “We’re not banning trucks but better

managing trucks.”

Mr Anderson said the real issue for

industry going forward was sustainability.

“The road freight industry is going

through major reform, there has never been

so much pressure on operators to do the

right thing,” he said.


As the second largest port in Victoria,

Geelong handled more than 12m tonnes of

cargo last year, an increase in tonnage of

around 8% year-on-year.

The facility now trades under the name

of GeelongPort and chief executive Brett

One of the issues for VTA members is

truck queue waiting times at ports

thedcn.com.au April 2019 43


and manufacturers freight-cost efficiencies.

“It’s all about giving the importers

options. The use of the ‘blue highway’ as a

complementary mode to road and rail will

provide a positive national outcome,” Mr

Winter said.

Geelong is the second largest port in Victoria

and does an impressive bulk trade

Winter told DCN they had ambitious

freight plans.

“We have strong growth targets which

will see GeelongPort handle 18m tonnes

per annum by 2025… a decade earlier than

previous forecasts,” Mr Winter said.

This year, GeelongPort is focused

on developing and implementing an

environmental strategy to ensure plans

are in place to improve environmental

outcomes for Corio Bay, the community

and the region.

“We are also continuing our rollout of

our critical risk-control program which is

designed to ensure we are addressing those

risks in our business that can do the most

harm to our people,” Mr Winter said.

“We are also very keen to ensure that

there is a focus from all stakeholders on

improving freight connections across the

port precincts.”

The port freight links are currently under

review with the view of strengthening links

with road, rail andthe channel.

“This will require upgrading to facilitate

changes in the mode of transport, for

example larger ships, trucks and rail

connections into and out of the port,”

Mr Winter said.

“These upgrades will ensure we protect

the port’s connections to regional Victoria,

Avalon Airport and the west of Melbourne

as the Australian and global freight tasks

change over the coming decades.”

GeelongPort has also done a long-term

deal with Boral involving the construction

of a new clinker-grinding facility on

land near Lascelles Wharf. This is to be

commissioned by late 2020,” he said.

“GeelongPort has partnered with

wind farm companies such as Goldwind

Australia and Vestas to support renewable

energy projects in Victoria.”

The port already plays a crucial role in

the transport of cargo such as giant wind

turbines and blades, crucial for wind farms

in the south-west of Victoria.

One of the challenges for GeelongPort

is the limitation of the channel and it

is working with the Victorian Regional

Channels Authority on a channel

deepening study.

We have strong growth targets which will see Geelong

Port handle 18m tonnes per annum by 2025.

Brett Winter, GeelongPort CEO

“Increasing channel width and depth

will allow two-way movement and lead

to additional shipping activity providing

efficiencies for our customers, having

economic benefits for the community and

the region,” Mr Winter said.

One of the significant opportunities for

the port is the potential introduction of

smaller vessels for coastal shipping to move

between states thereby giving importers


The latest forecasts for Victoria predict

unabated economic growth over the next

two years, according to Deloitte Access Economics’

December Quarter Business Outlook.

It says Victoria can expect a rising

employment rate and solid business

investment growth, led by private

engineering, commercial construction and

equipment investment.

Deloitte has upgraded its own

employment expectations and forecasts

employment increases of 3.1% in 2018-19

and 1.6% in 2019-20.

The report says household consumption

and government infrastructure investment

will also be major contributors to the

Victorian economy this financial year.

Manager of macroeconomic policy and

forecasting at Deloitte Access Economics

Ben Guttmann said infrastructure

investment was key.

“Infrastructure investment is a

key driver of Victoria’s strong growth

performance. But growth is broader than

that,” he said.

“Business services, tourism and health

care are also contributing to Victoria’s

strong growth performance and continued

jobs growth.”

He noted business conditions had

improved, corporate profits had soared and

borrowing costs remained low, particularly

for large businesses.

“In addition, businesses are also starting

to hit capacity constraints following the

recent period of strong economic growth,”

Mr Guttmann said.

“That said, businesses may be slow

to start investing due to an increasingly

uncertain global economic outlook.”

Victoria also took out the number one

spot in the recent CommSec State of the

States report, a result underpinned by

high job numbers, a thriving construction

industry and buoyant retail trade.

The latest quarterly report shows the

state government’s infrastructure spending

as a major factor in bolstering job numbers

and construction levels, while delivering

important roads and rail infrastructure,

hospitals and schools.


44 April 2019



Manoon Pothanya

46 April 2019




Alexis Cahalan explores the circumstances where

shipowners and carriers can limit their liability and the

impact this can have on the marine insurance market.

thedcn.com.au April 2019 47


Shen Neng 1

The concept of limitation of liability is an important feature

in marine insurance. Not only does it regulate responsibility

between parties participating in a maritime adventure, it also

influences the cost of insurance to ship owners, charterers

and non-vessel operating common carriers.


Monetary limits of liability for shipowners are of particular

significance for vessels operating in environmentally sensitive

regions. In Australia, for example, there are a number of

marine environments that have been designated to be of special

significance. The Great Barrier Reef was listed as an UNESCO

World Heritage Area in 1981 and in 1990 the IMO declared the

Great Barrier Reef as a Particularly Sensitive Sea Area. In 2005,

the Torres Strait was also declared a PSSA. A similar designation

came into effect in respect of passage in the Coral Sea in June 2015.

This designation allows coastal states to environmentally manage

coastal areas while complying with the duty to provide freedom of

navigation through their Exclusive Economic Zone.

However, vessels operating in and through such areas

undoubtedly face an increased risk of exposure to damages in

the event of a casualty or vessel incident causing pollution. The

grounding of the vessel MV Solomon Trader in February 2019 near

Rennell Island in the Solomon Islands, highlights only too well this

exposure. The vessel is reported to be leaking 80 tonnes of heavy

fuel oil over a raised coral atoll located in a World Heritage Area.

With about 600 tonnes of fuel oil remaining on board, it will be a

costly exercise to remove the remaining oil and prevent further oil

spilling onto the reef.


Such increased exposure also starkly came to light on 3 April 2010

when the vessel MV Shen Neng 1 ran aground about 120kms east

of Rockhampton within the Great Barrier Reef Marine Park. At the

time the vessel sailing from Gladstone was a fully laden bulk coal

carrier. About 10 tonnes of bunker oil leaked from the vessel across

the reef. The Commonwealth Government commenced litigation

in 2013 against the vessel’s owners claiming up to A$194m or

alternatively the cost of remediation for the Douglas Shoal, the

area in which the vessel had run aground. Owners applied to limit

their liability for the bunkers spilled under the Convention on the

Limitation of Liability for Maritime Claims 1996 in accordance

with the limitation amount at the time based on the tonnage of the

vessel in the amount of A$25m.

The Commonwealth argued there were three separate incidents

and that therefore, three separate limitation amounts applied.

The Commonwealth asserted the first incident was the initial

grounding of the vessel due to navigational error, the second when

the master failed to notice the dragging anchor that led to vessel

movement and thirdly, the master’s decision to re-float the vessel

off the reef. Even if three limitation funds were held to apply, this

amount fell well short of the Commonwealth’s claim for damages.

The largest component of damages sought was in relation to the

costs of remediating the reef.


Ultimately the issue of the number of funds held to apply

in relation to the Sheng Neng I incident was never judicially

determined as the claim was settled when the Commonwealth

Australian Maritime Safety Authority

48 April 2019


accepted a payment of A$35m for the

remediation costs claimed and an

additional A$4.3m to cover costs incurred

in dealing with the incident immediately

after it occurred. Nor did it become

necessary to consider the fact that damage

was not solely caused by the release of

bunker oil, but also by noxious chemicals

from the vessel’s hull, together with

the action of the vessel on the reef. For

insurers, this situation potentially creates a

situation where damages for environmental

damage may not be caught by the existing

pollution limitation mechanisms.

a very limited range of complete defences

available to ship owners and thus their

insurers including where the incident is

caused by an act of God or act of war. The

limit of liability under the CLC 92 is set

according to the tonnage of the ship. For

example, a bulk carrier oil tanker with a

200,000 gross tonnage would currently

have a limitation amount of about

A$176,804,349 (SDR 89,770,000).

SDR is a reference to Special Drawing

Rights, a form of international money

created by the IMF and defined as a

weighted average of various convertible

currencies. This means that the SDR value



The principal source of establishing

a compensation regime in an oil spill

situation from an oil tanker is the

Alexis Cahalan, principal lawyer,

Thomas Miller Law

changes marginally in accordance with

global currency trends.

If damages exceed this first tier of

available compensation then claims can

be met from a second tier of compensation

International Convention on Civil Liability for Oil Pollution

Damage 1992 (the CLC 92), its precursor CLC 69 enacted into

Australian law by the Protection of the Sea (Civil Liability) Act

1981 (Cth). Liability under this legislation is strict but in exchange,

it is limited, except in certain circumstances. For example, the

limitation can be challenged where the incident is caused by an act

or omission committed with “knowledge that such damage would

probably result”, essentially wilful misconduct. There is otherwise

arising out of the 1992 International Oil Pollution Compensation

Fund enacted in Australia by the Protection of the Seas (Oil

Pollution Compensation Funds) Act 1993. The fund is created with

a levy imposed on oil companies calculated on oil imports and

exports. In the event that the claims exceed the limits under the

first and second tiers of compensation fund, a third tier is available

under the International Oil Pollution Compensation Supplementary

Fund 2003 given effect in Australia by the same Act.

Training for the barrier clearance, freight forwarding & international trade community

The Customs Brokers and Forwarders Council of

Australia, is one of the true innovators of online learning.

With the International Trade and Logistics College

(ITALC) it delivers interactive diploma courses, with

world-class virtual classroom technology. These courses

service the increased training needs for all participants

in the broader international trade community.

ITALC courses include:

Diploma of Customs Broking (TLI50816)

Diploma of Freight Forwarding (TLI50316)

ITALC also provides access to the Continued

Professional Development Program, short courses

providing commercial skills for busy professionals.

Why choose the CBFCA for your study?

The CBFCA is dedicated to ensuring the skills and

knowledge of graduates are at the highest standard.

The CBFCA, as a not-for-profit entity exits solely for

the good of its members. CBFCA recognises that the

best pathway is through the development of upcoming

personnel, preparing to move into senior positions

of the future. The pursuit of commercial return from

training is not what drives us.

CBFCA recruits the ’best of the best’ industry

personnel. Employers know CBFCA graduates have

the skills & knowledge required to perform their current

task and to be ready to take on the next level of

responsibility as required.

Students have access to leading edge technology,

24hr access to interactive learning

materials plus video and audio

conferencing. All courses are facilitated

by some of the most experienced

educators in the industry.

Image supplied


PO Box 3525, RAMSGATE NSW 2216

Phone: 02 9587 1986

Email: cbfcano@cbfca.com.au


thedcn.com.au April 2019 49



The types of damages recoverable can include clean-up costs,

damage to property, economic loss consequential on property

damage, pure economic loss, such as from a tourist hotel

operator and the reasonable costs of restoring the damage to

property. Some jurisdictions that take a narrow approach as

to what can be compensated under the CLC 92 have adopted

a narrow interpretation of such losses. In Landcatch Ltd v.

International Oil Pollution Compensation Fund the Scottish Courts

considered whether Landcatch Ltd, whose business involved

the rearing of juvenile salmon for sale to salmon farmers

in Shetland suffered compensable loss. An oil spill from the

The Great Barrier Reef was listed as a

UNESCO World Heritage Area in 1981

and in 1990 the IMO declared the Great

Barrier Reef as a Particularly Sensitive

Sea Area.

tanker Braer caused by the vessel running aground of the coast

of the Shetland Islands resulted in the prohibition of the sale

of Shetland salmon by the United Kingdom government. This

had an effect on Landcatch’s business in that the market for

juvenile salmon was severely reduced due to the ban. However,

the Scottish Court ruled that the claims were not compensable

under the CLC 92 in that “secondary” or “relational” damage

was not compensable for “reasons similar to those that have

led to the development of a rule against such claims under the

common law”.

Ultimately the number of funds held to apply in relation to

the Sheng Neng I incident was never judicially determined as the

claim was settled when the Commonwealth accepted a payment

of A$35m for the remediation costs claimed and an additional

A$4.3m to cover costs incurred in dealing with the incident

immediately after it occurred. Nor did it become necessary to

consider the fact that damage was not solely caused by the release

of bunker oil, but also by noxious chemicals from the vessel’s hull,

together with the action of the vessel on the reef. For insurers,

this situation potentially creates a situation where damages for

environmental damage may not be caught by the existing pollution

limitation mechanisms.


There are other instances where limitations can apply in the

maritime adventure. For example, the Amended Hague Rules as

enacted in Australia by the Commonwealth Sea Carriage of Goods

Act 1991 (Cth) imposes package and weight limitations in the

event of damage for goods carried under a bill of lading or sea

carriage document. This is not to say, however, that there is always

certainty as to how such package limitations might apply, is it per

container or do the words “said to contain” (STC) record the true

number of goods, packages or units for the purpose of calculating

the package limitation?

The leading decision in Australia, El Greco (Australia) Pty

Ltd v Mediterranean Shipping Co SA had to determine which was

the relevant unit when assessing the limits to apply where

“200,945 pieces posters and prints” were damaged without any

salvage value. They were packed in one container and were made up

of 2000 packages and shipped from Melbourne bound ultimately

for Greece. The lack of sufficient enumeration of the packages in

the bill of lading meant that the container was the applicable unit

for the purpose of calculating the package limitation. The case does

serve to illustrate, however, that uncertainties can still arise when

trying to calculate the relevant package limitation.


Insurers also look outside the limitations which apply by reason of

statute to those which may contractually apply, take for example,

commonly seen NVOCC’s standard terms and conditions. The

importance of such limitations successfully responding to cargo

claims is an important consideration for marine insurers in their

assessment and characterisation of risk and as a result in the

calculation of insurance premiums bearing in mind that premium

reflects risk. An understanding of the circumstances in which

liability can be limited either by way of legislation or contract is as

important for the insurer as it is for the consumer of the marine

insurance product in assessing the overall costs and risks of the

maritime adventure.


Making the international shipment of

goods “simple, seamless and efficient” is

the aim of an insurance product recently

launched by French liner company CMA


was announced as part of company

chairman and chief executive Rodolphe

Saadé’s Shipping the Future strategy in

2017 and introduced to the Australian

market in October 2018.

A CMA CGM spokesperson said this

product was realised in partnership with

“one of the largest marine insurance

companies in the world”.

Features include covering damage

and loss due to almost all kind of

risks from door-to-door even in case

of merchant haulage and up to the

full insured value with no excess/


“Shipments in transit are subject

to many perils that could impact our

customer’s business operation, and

this is often beyond anyone’s will,” the

spokesperson said.

“Should loss or damage occur to

customer’s cargo, they will have to

go through a difficult and lengthy

administrative process with no

guarantee of the final outcome.

“Many of our customers are looking

for solutions to run their business

operation more effectively with reliable

partners. As their global shipping

partner, we know best their shipments

and how to secure it.”

According to CMA CGM, freight

forwarders would gain an advantage

partnering with a carrier that offered

more than just freight services because

they could propose different services

to customers.

50 April 2019



Image supplied

Such is the crucial nature of the bill

of lading that some may unduly panic

over its loss or misplacement. The bill

of lading has three primary functions:

evidencing the contract of carriage,

acting as a receipt for the cargo and

facilitating transfer of title to the

carried cargo.

There are occasions where documents

are lost and, given the functions of the

bill of lading, this has the potential to

give rise to some significant exposures

if not handled correctly.


The contractual nexus surrounding

any given bill of lading can be complex.

Care must be taken, therefore, when

handling situations involving lost bills

of lading to understand this nexus. In

maritime trade, the original bill of lading

effectively represents the cargo itself.

At its simplest, the shipper receives the

bill from the carrier, and transfers it to

the consignee in return for payment

for the goods. “Negotiable” bills may

be transferred between entities for

payment, together with the right to

receive the goods, while the goods are

in transit. The consignee or transferee

hands the bill of lading to the carrier

as evidence of the right to collect the

goods and for cancellation.


Equally, a bank may also have an

interest in the cargo, under a letter

of credit, holding the original bill

of lading until the debt is

satisfied. In this context, the bill of lading

represents the bank’s security for that

debt. This also serves to illustrate the

care required; release of goods without

an original bill of lading can lead to

financial liabilities to entities other than

the direct contracting parties. Shippers

or alleged transferees of the original bill

of lading may seek to press the NVOCC

to issue a duplicate for the purpose of

taking delivery; such requests must be

handled with great care. Anybody who is

holding an original bill of lading acquired

in good faith can claim delivery. Where

two sets of bills exist there is risk of two

entities with apparently equally valid

claims demanding delivery of the cargo.

Additionally, if the shipper has not been

paid he retains the right to dispose of

the cargo.

As the NVOCC or freight forwarder,

you can never be 100% certain what has

happened to the original set of bills. Have

they genuinely been lost or has someone

overlooked paying the seller? In releasing

cargo without firm evidence of the right to

take delivery, you act entirely at your peril.

As a matter of law, there is no

exception to the simple working rule that

delivery without production of a bill of

lading is at the NVOCC’s own risk. You

are not bound to deliver cargo to any

person other than the lawful holder of

the original bill, unless a court so orders.

Where a bill is absent and the importer

is demanding delivery, a recommended

solution is to require a bank

guarantee (or a company letter

Peregrine Storrs-Fox, TT Club

of indemnity countersigned by a bank)

in your favour. It is always a sensible,

practical precaution to check with the

exporter/shipper to make sure he or

she has been paid and has no objection

to the cargo being released.

One vital step, often overlooked,

is to communicate to the delivery

agent any new arrangement for the

release of the cargo, precluding the

risk that the agent meanwhile delivers

the cargo to a party in possession of

the void or cancelled bill of lading. In

the alternative, cargo interests may

apply for a court order, often known

as ’interpleader’. However, this course

of action inevitably takes more time

and increases costs, including potential

storage costs. Ultimately a claimant will

still be required to demonstrate their

entitlement to take delivery.

If there is a request for delivery but

the original bill of lading is unavailable,

take utmost care. Implement

appropriate training and escalation

procedures to ensure the approval for

irregular releases is authorised by a

senior manager. The whole question

of the delivery of cargo without

production of the corresponding

original bill of lading, whether lost or

otherwise, is fraught with potential

exposures for the NVOCC or other

issuer. No matter how strong or

important your commercial relationship

may be, simply do not accept promises

or bow to pressure. The law (and TT

Club) will support you if you refuse to

deliver until a valid bill of lading has

been surrendered.

thedcn.com.au April 2019 51


Technology key to

evolution in logistics

Thomas Hansen from Röhlig examines the influence of evolving customer

demand on logistics technologies


a limited manufacturing base means our

business is unique. We are predominately

driven by imports, yet we still face the

same challenges as the rest of the world: a

rising population with an increasing need

for logistics services, omnichannel growth

and a demand for 24/7, real-time, solutions

from both clients and consumers. For the

most part, it is technology that is driving

these changes, and it will be technology

that creates the solutions, both in the short

and long term.


It will be technology that underpins our

strategy over the next three years at Röhlig

Australia and New Zealand. In our efforts

to further streamline logistics processes

and the supply chain, as well as deliver

better service and solutions to customers,

we’re continuing the roll-out of Sirius VM

in the Australian/New Zealand markets.

Sirius is our cloud-based software as

a service platform for shipment tracking

and end-to-end supply chain management.

Developed by a company in Hong Kong,

we’ve redesigned this vendor management

system for the logistics industry, so it can

co-ordinate shipments, manage suppliers

and purchasing, as well as monitor and

report on KPIs/SLAs. While it’s still only

being trialled with a few customers, we are

already seeing a return on our investment.

Omnichannel retail is becoming ever more

prevalent and, in doing so, is creating new

challenges for logistics companies, but

we’re already seeing how those challenges

can be solved using the system.

It is also making life much easier for

customers, especially those who need to

manage a large numbers of suppliers and

sales channels. The online portal gives our

clients the visibility they need to distribute

goods much more effectively for the needs

of their business.

We believe that this type of system will

become the standard for managing logistics

requirements in the future.


More than ever, customers expect fast,

round-the-clock, real-time access to

shipping data. This can only be achieved

by developing technology that allows users

to track shipments in real time wherever

they are. It also can be used to pre-empt

bottlenecks and breakdowns before they

happen. Using technology to digitise,

automate and streamline these processes

isn’t only good for customers, it’s good for

the industry. It is pushing down the costs

of doing business and providing a better

service to end-users – all while responding

to new challenges being created by

omnichannel retail.

It makes sense that, as consumers

embrace new technologies, our industry

does the same in order to continue to offer

The online portal gives our clients the visibility they

need to distribute goods much more effectively.

services that are relevant. One example

of this is mobile app adoption. This is

continuing to grow and we must stay

abreast with developing trends so that

our services integrate with the devices

and end points used by customers. To this

end, technology has already given us the

capability to answer the ‘24/7 on-demand’

culture consumers expect.


Creating these solutions is one way in

which we can help our clients serve their

Thomas Hansen, regional director Australia

and New Zealand, Röhlig

own customers better, but they also help

us with our 3PL partners – they are already

being programmed to monitor agreed KPIs

and SLAs. It is important too that this

development is done in-house. The lazy

solution would be to outsource, but we

need to be able to customise these solutions

to the specific needs of our business. By

doing so, we will be enablers for our clients,

giving them better visibility over the

important aspects of their supply chain.

Regardless, other challenges lie ahead in

the form of 3D printers and driverless

vehicles. Soon we will feel the impact of

these on our industry. Big data will play its

role here. Advanced analytics solutions and

services will give us the insights we need

to make informed business decisions, so

we can create the systems required to meet

those challenges.

Ultimately, it is up to the private sector

to continuously innovate and push the

boundaries of what technology can do to

help us to deliver better services to our

clients and help them with their own

business goals.


52 April 2019







An agenda for digital trade

Lawyer Andrew Hudson writes about proposed developments in digital

transformation and enhancement of trade to assist the position of SMEs


to improvements in trade and is seen as

one means to facilitate improvements.

For example, many parties are looking to

blockchain as a means to enhance both the

speed and safety in the movement of goods.

Most contemporary free-trade

agreements include provisions to facilitate

customs procedures and trade as well as

chapters on assisting e-commerce. In one

excellent example, the DFAT Free Trade

Agreement Portal comprises up-to-date

information on the terms of our free-trade

agreements in a way which makes it easier

for parties to understand the agreements

and take advantage of them.


Government and its agencies are not

the only part of these initiatives. The

private sector is also involved, not only

in its commercial self-interest in selling

technologies, but to share in the benefits

from a secure and rapid supply chain.

Further, the government and its agencies

are working collaboratively with the private

sector to advance these initiatives.

One place that can be seen is through

the National Committee on Trade

Facilitation, which is convened by the

Department of Home Affairs to include

agencies operating in and around the

border and the supply chain such as the

Australian Border Force; the Department

of Agriculture and Water Resources; the

Department of Industry, Innovation

and Science; Austrade; the Department

of Foreign Affairs and Trade; and other

agencies. I am the chair of the privatesector

group at the NCTF comprising

associations and entities such as the

Australian Industry Group; the Australian

Chamber of Commerce and Industry; Ports

Australia; Shipping Australia; the Customs

Brokers and Forwarders Council of

Australia; the Export Council of Australia;

and the Food and Beverage Importers

Association. The NCTF has a number of

advisory committees including the Trade

Facilitation Initiatives Working Group.


TFIWG has a number of items in its

agenda, including the Australian Trusted

Trader program and the development of

the single window for trade and other

trade facilitation initiatives. At the most

recent NCTF meeting late in February

2019, the private-sector group proposed

several topics to be advanced as part of the

NCTF work program including a review of

recent reports and inquiries which have

recommended initiatives to enhance trade,

with a specific focus on bringing home

advances in the trading environment to

small and medium enterprises. This would

require review of the recommendations of

the parliamentary inquiry into trade and

the digital economy, the findings of the

joint research report Growing the Digital

Economy in Australia and New Zealand:

Maximising Opportunities for Small Medium

Enterprises (SMEs), as well as the report

from the parliamentary inquiry into access

to free-trade agreements by small and

medium-sized enterprises.


Relevant starting points are the

recommendations of the parliamentary

inquiry into trade and the digital economy:

• Recommendation 1 - The Australian

government, as a matter of priority,

should create a single portal of

information, with particular regard to

exporting digital goods and services.

• Recommendation 2 - The Australian

government, as a matter of priority,

should create a single window trading

system, with particular regard to

exporting digital goods and services.

• Recommendation 6 - The Australian

government should continue to promote


54 April 2019


There is a need to continue with the free-trade

agreement agenda with an emphasis on the

interests of SMEs and to embrace technological

change to assist SMEs

Ian Ackerman

Andrew Hudson, partner, Rigby Cooke Lawyers

digital trade standards, both technical

and regulatory, with an emphasis on

openness, technological neutrality and


• Recommendation 10 - The Australian

government investigate ways to assist

Australian SMEs to improve their cyber

security awareness and resilience levels.

• Recommendation 11 - The Australian

government should require all agencies

when developing policy, legislation or

trade agreements to consider whether

what is proposed is technologically

neutral and if it could create barriers to

the digital economy.


The review by the New Zealand and

Australian productivity commissions

subsequently endorsed similar recommendations

with a focus on assisting access for

SMEs by way of a single window and similar

interoperable functionality.

The recently released report of the

parliamentary committee into access

to free-trade agreements by SMEs again

endorsed similar recommendations

including the following:

• Continuing to embrace an expanding

network of high-quality free-trade

agreements (recommendation 1).

• Minimising non-tariff barriers affecting

SMEs (recommendation 2).

• Making free-trade agreements more

relevant to Australian SMEs by including

specific SME chapters or specific

obligations to assist SMEs to access

trade opportunities in future free-trade

agreements (recommendation 3).

• Reviewing the resourcing of agencies

and programs to assist Australian SMEs

(recommendation 5) including funding

for Austrade and assisting access to

export market development grants.

• Establishing a single trade window

for SME exporters to guide them to

education, products and services that

meet their needs, and improves the

access of SMEs to a centralised source

of trade resources, from government

agencies such as DFAT, Austrade,

DoHA, DAWR, EFIC, DIIS, and the

Department of Jobs and Small Business

(recommendation 6).

• Inviting the active participation of

industry representative bodies, such

as those representing customs agents

and freight forwarders, in free-trade

agreement awareness and education

programs to educate SMEs about the

export services their members provide

(recommendation 8).

• Embracing e-commerce as a key enabler

of trade and including e-commerce

as a key feature in future free-trade

agreements including delivering

simplified, user-friendly digital resources

and trade technologies to assist SMEs

by making it easier to find the export

information required for each trade

agreement (recommendation 9).

There are some consistent themes, there

is a need to continue with the free-trade

agreement agenda with an emphasis on

the interests of SMEs and to embrace

technological change to assist SMEs in

taking advantage of those benefits.

The crucial issue then becomes how

government and the private sector can

secure those outcomes.

There are certainly various technologies

available in the marketplace that assist the

providers of cargo movement services but

they are probably too sophisticated, too

complex and too expensive.

As a starting point, what is needed are

technology tools and procedures to assist

SMEs and to ensure they can secure the

benefits of free-trade agreements and

other initiatives.

These are not easy outcomes but the

private-sector group has referred the issue

to TFIWG with a specific recommendation

to develop a form of single window

containing all the basic necessary

information for SMEs on the regulation of

trade to allow them to engage in import

and export.

As an outcome it would be a starting

point before developing or facilitating more

sophisticated programs.


The groundwork has been researched and

the agenda has been set.

It is now vital for government, its agencies

and the private sector to continue to invest

and work in the work program with the

view of delivering the best outcomes for all

in a way which will survive political and

ideological change.

This friendly neighbourhood customs

and trade lawyer will continue to work

towards that end including spending lots of

otherwise free time on these issues, as the

outcomes are important for all those in the

supply chain and the wider economy.

thedcn.com.au April 2019 55


Preparing for failure

Looking on the dark side of life has legal benefits, writes Alison Cusack


seen general average declared on three

vessels in the Asia Pacific region: APL

Vancouver, Yantian Express and most

recently the E.R. Kobe.

When it comes to business, there are two

types of control for risk management. You can

control your internal processes which produce

your business output; and you can control how

your business responds to risk and disasters

outside the business control, but which have

financial and reputational risks.

There are two methods of control:

• Controlling internally - business processes,

data input, supplier selection etc.

• Controlling how you respond to the

inevitable downside to the marine

adventure - timely decisions, making the

right and cost effective decisions for all

concerned parties.

While you may have done all you can

internally to optimise your supply chain

and mitigate risks the marine adventure

element still comes into play. But have

you really done all you can do internally

to prepare to fail? There have been several

reports of uninsured cargo on these

GA-declared vessels, leaving businesses

and their owners and directors at serious

financial risk (see the GA article in DCN

February edition co-authored with Kerryn



Women’s International Shipping and

Trading Association Australia recently

hosted a panel at the New Retail ’19

convention covering these topics. One

example was where the key person who

usually looked after documentation was

away on leave. The person covering for

them was cutting and pasting from the

sale documents including the Incoterms.

By chance, when requesting the need for a

marine insurance certificate, the error was

uncovered by an external party. If it hadn’t,

there would have been $2m plus worth

of cargo being exported from Europe into

Australia completely uninsured by

all parties.


Is all your knowledge locked up in a few key

people’s heads? What happens if they are

sick, travelling, leave or retire?

Answer: Have a checklist for actions and

relevant people to contact and notify.

Have in place basic procedures for known

problems (abandoned cargo, damaged

cargo, GA events, cargo liens).


Do you have an external events checklist

that triggers a review of your key


Answer: Critical points that should trigger

56 April 2019


Sheila Fitzgerald; David Sexton

Alison Cusack, principal of Cusack & Co and

president of WISTA Australia

a review of procedures and checklists:

1 Have you sourced a new supplier?

2 If so, are the Incoterms the same (for

updating your insurance coverage)

3 Annual review of your freight forwarder

policy prior to renewal (yes – read all

the fine print terms and conditions and

more importantly, understand them)

4 Have any staff left, taking valuable

knowledge with them? If your de facto

claims handler has left, who is now in

charge of monitoring files and actioning



Do you have a disaster recovery plan and

checklist when things in the supply chain

go wrong? When it’s in your control to

make a decision, mitigation is a key factor

to your recovery success. Mitigation is not

only making the right decision, but making

the right decision at the right time.

Answer: Sit down with your team and

workshop the ‘top five’ ways you supply

chain could fail whilst the cargo and/or

ownership is still in your control. Once

you’ve pin-pointed the top five scenarios

(that may have already happened to

you or to a fellow merchant) then work

out what decisions you’d make in those

situations. Also work out why you’d make

those decisions. This can be impacted by

contractual obligations, quarantine and

inspection permits, insurance, constraints

of letters of credit or requirements to make

certain ETAs for greater supply chain.

Note: Don’t forget that ownership under

the Incoterms is different to ownership as

defined under the ocean (master) bill of

lading and can be different again when it

comes to the definition in relation

to customs.


Are you all speaking the same language?

Aside from actual different languages

spoken across your international supply

chain, are the shorthand and abbreviations

(not to mention acronyms) being used and

understood by all parties in the same way?

Anwswer: Whether you write your

definitions into a contract (giving your

certainty), or you use long hand in all your

correspondence, it is worth periodically

checking you are all speaking the same

language. When you factor in all the

various parties to your transaction - your

ocean carrier, freight forwarder, buyer,

seller, customs broker, haulier, insurer,

broker - there is a lot of opportunity for

information to be lost.


Insurance. Does your insurer (and broker)

truly understand your business and do you

truly understand the scope and limitations

of your policy?

Answer: Make an appointment to sit down

with your broker and/or insurer and work

out in the event of a claim, what is required

of you (the insured) to be able to make

timely claims. There is no point paying for

insurance that doesn’t provide coverage

when the fires start burning.

Many thanks to Vanessa Rice (NTI) and Brodie

Collins (Mondiale) for their contribution to this

article via panel input.



The international shipping

community and insurers are wrestling

with an unusually high number of

fires aboard vessels at sea - four in

the past four months. The fires have

damaged several big cargo ships, cost

companies millions and taken the

lives of a number of seafarers.

The latest fire occurred on the

Grimaldi Lines-operated Grande

America, on March 10. The container

and automobile carrier caught fire

in the Bay of Biscay off the coast

of France and sank two days later,

carrying more than 2,000 cars with it.

Grande America was carrying 365

containers of which 45 contained

materials deemed to be hazardous

including 10 tonnes of hydrochloric

acid and 70 tonnes of sulfuric acid.

Another blaze occurred on board

the post-Panamax container vessel

E.R. Kobe (5,700 TEU) on its way

from Vietnam to China, when three

containers on deck loaded with

charcoal caught fire.

Although some are putting it down

to coincidence, others have raised

questions about the number of fires

and the safe handling of the large

quantities of goods that move on

increasingly big ocean-going vessels.

After the fire on board the Maersk

Honam in 2018, Maersk changed its

guidelines to improve the stowage of

dangerous goods.

Transport and logistics insurer

TT Club estimates that a major

containership fire at sea occurs, on

average, every 60 days. And, of the

60 million packed containers moved

each year, 10%, or 6m, are declared

as dangerous goods. The TT Club

says, “information from published

government inspections suggests

that 20% of these are poorly packed

or incorrectly identified, translating

into 1.3m potentially unstable DG

containers travelling around the

world each year”.

Across the intermodal spectrum,

some 66% of incidents related to

cargo damage “can be attributed to

poor practice in the overall packing

process”, according to the TT Club.

It says that poor practice is not

just in securing cargo but also in

cargo identification, declaration,

documentation and effective data

transfer, which costs insurers more

than $500m annually.

thedcn.com.au April 2019 57


Labor’s election platform and

plans for the Fair Work Act

A change of government at the next federal election is likely to result in considerable

changes to the industrial relations landscape, writes Chris Gianatti


federal election, the Australian Labor Party

has proposed several changes to the Fair

Work Act (refer to boxed out section). If the

proposals successfully pass the Senate, this

will change the industrial relations landscape

dramatically, back to a pre-1993 era.

Taken in combination, these proposals

would significantly re-regulate the

workplace in a way that will, I argue,

entirely defeat any capacity to compete on

the basis of cost arising from anything to

do with labour.

Modern award conditions and minimum

wages rates apply to all participants in an

industry. To have an enterprise agreement,

then the agreement must provide that all

employees are better off compared to the

Award. If you wish to resist pay rises under

enterprise agreements, protected action

will be simpler to obtain by employees to

compel you to give a pay rise or improved


Once an agreement is made, then it will

never be allowed to go backwards and will

always be just the new base platform for

further increases. If you don’t agree to an

“agreement”, the Fair Work Commission

will have more power to arbitrate the

agreement for you. If you wish to start

a new enterprise and go directly to new

employees for a new enterprise agreement,

this will be seen as a “sham” and you will

have to go to a union to get a “greenfields”

agreement. If you wish to outsource or get

labour hire, then transfer of business rules

Chris Gianatti, director, KHQ Lawyers




• A new definition of “casual”

employment to ensure that casual

work is strictly unpredictable and

intermittent only.

• Standardisation of long service leave


• A ban on pay confidentiality clauses

in employees’ contracts.



• Restoration of, and protection

against, further changes to penalty


• A greater emphasis on the needs

of the low paid in the setting of

minimum wages. (NB: A formal “living

wage” policy has not been set out,

but the ALP has made some noises in

that direction).


• Strengthened requirements for good

faith bargaining.

• Industry-level bargaining to be

permitted in at least low-paid sectors.

• A prohibition on employees going

backwards via the termination of

enterprise agreements.

• A ban on “sham” agreements – eg.

agreements made with three or four



• Simplification of the procedural

requirements to take protected

industrial action.

• Query whether the Fair Work

Commission will be given new

discretion(s) as to whether

unprotected action should be

ordered to stop and/or whether an

employer can sue a union in tort for

causing unprotected action.


• Abolition of the Australian Building

and Construction Commission and

repeal of the Building Code 2016.

• Likely restoration of the Road Safety


• Strengthened provisions against

sham contracting.

• Greater powers for the Fair Work

Commission to be able to arbitrate

(rather than just conciliate) disputes.

will ensure that your enterprise agreement

goes across to the outsourced provider. The

outsourced provider will also need to be

licensed and forever be at the mercy of the

licensing body. If you try to go offshore, you

will have to satisfy the government that

you have done local labour market testing

first. If you try to close the doors, this

could be a breach of general protections for

taking adverse action against the employees

because they were simply exercising their

workplace right to be in a union and

seek pay rises. A court can then issue an

injunction against your business to prevent

it terminating the employment of any



Until we know the timing and outcome of

election, it certainly pays to review your

enterprise agreement portfolio. Continue

to review your arrangements with your

casual employees in light of “Skene’s

Case” last year and the further expected

changes from the ALP. Also stay close to

your employees with the things that are

important to them.

58 April 2019



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Fatal heavy truck accidents

on the decline

Fatal accidents involving heavy trucks have decreased,

but more research is needed to prevent numbers from plateauing


trucks decreased by 20.5% in the 2018

calendar year, compared with 2017, from

171 crashes to 136 crashes.

The quarterly bulletin on fatal heavy

vehicle crashes in Australia published by

the Bureau of Infrastructure, Transport and

Regional Economics also revealed that fatal

crashes involving heavy trucks decreased by

an average of 6.1% per year over the three

years to December 2018.

Over the 2018 calendar year 154 people

died from fatal crashes involving heavy

trucks, including 89 deaths from 78

crashes involving articulated trucks, 74

deaths from 65 crashes involving heavy

rigid trucks and nine deaths from seven

crashes involving both a heavy rigid truck

and an articulated truck.

Taking a closer look at the data, we

find it reveals fatal crashes involving

articulated trucks decreased by 15.2% in

2018 (compared with 2017) from 92 to

78 crashes, and decreased an average of

7.8% per year over the three years to the

end of 2018.

And fatal crashes involving heavy rigid

trucks decreased by 26.1% in 2018 from

88 to 65 crashes, but decreased an average

of just 1.5% per year over the three years

to December 2018. Over the past 10 years,

fatal crashes involving heavy rigid trucks

showed no regular trend either up or down,

with an average increase of 1% per year

since 2009.


The National Road Transport Association

noted the numbers released in the BITRE

report, but the industry association said

more detailed research was needed to help

decrease heavy-vehicle road deaths further.

NatRoad president Allan Thornley said

the overall trend is in the right direction,

but there is a need to better understand

why improvements in the fatality rate for

rigid trucks is plateauing, decreasing 1.5%

per year over the past three years.

“The path to a better road safety

outcome is paved by evidence-based

research so we need to know a lot more

about the causes of heavy vehicle fatal

crashes,” he said.

“The government has underway a review

of who should be responsible for road safety

in Australia. That is a step we applaud.

Mr Thornley said government must

invest in research and data collection that

would help the heavy vehicle industry to

better understand the fatality rate and

what is behind it.

“Government agencies across Australia

must make a commitment to the more

effective collection of and easier access

to information provided by accident

investigations,” he said.

Measures which will help the community achieve

fewer road fatalities must be introduced and they

must be based on proper analysis and a deeper

understanding of what is behind the trends the recent

statistics highlight.

Allan Thornley, NatRoad president


60 April 2019














“At the same time greater scrutiny of the

causes of those accidents is needed, as well

as education of light vehicle drivers who

are at fault in more than 80% of fatalities

involving a heavy vehicle. A government

agency such as the Australian Transport

Safety Bureau or a newly created road safety

body should be given power to promptly and

fully investigate serious truck accidents.”



Articulated truck invovled

Heavy rigid truck involved



Source: BITRE


Mr Thornley said there is a need to share

the results and recommendations publicly

so all industry participants can take the

appropriate action to reduce the road toll.

“That role should also encompass better

research on trends and causal factors.

Currently both data and research are

inadequate to formulate benchmarks for

heavy vehicle incidents. That must change

and a government agency that is created or

re-structured must take on that task.”

“NatRoad has a deep commitment to

improving road safety,” Mr Thornley said.

“Measures which will help the

community achieve fewer road fatalities

must be introduced and they must be

based on proper analysis and a deeper

understanding of what is behind the trends

the recent statistics highlight.”


















Articulated truck invovled

Heavy rigid truck involved











thedcn.com.au April 2019 61


Opposition leader Bill Shorten (left) and

Toll Group chairman John Mullen

Crowds flock to naming

ceremony for Victorian Reliance II

Victorian Reliance II and sister vessel Tasmanian Achiever II are part of Toll Group’s

investment in Bass Strait shipping


flocked to Webb Dock for the official naming ceremony of new Toll

Group ship, Victorian Reliance II.

Indigenous elder Aunty Caroline gave a welcome to country

address before the presentation continued with addresses by

Opposition leader Bill Shorten, Japanese vice minister for foreign

affairs Norikazu Suzuki and Maritime Union national secretary

Paddy Crumlin, among others.

The ritual of cutting a rope to smash a bottle of champagne

against the ship was performed by lady sponsor Jacqui Mullen

(whose spouse is Toll Group chair John Mullen), ably assisted

by junior sponsor 11-year-old Lexi Rietveld from cancer charity


Ship’s master Captain Christopher D’Sousa later gave VIPs a

guided tour of the new ship.

A musical backdrop to proceedings was provided by the Darebin

City Brass Band.

Captain Christopher D’Sousa

explains the workings of the

ship to Bill Shorten

Toll Group; David Sexton

62 April 2019


Enjoying the opening ceremony

Labor infrastructure spokesman

Anthony Albanese with

MIAL chief executive Teresa Lloyd

On a hot day, it paid to wear sunglasses

Lady sponsor Jacqui Mullen

with junior sponsor Lexi Rietveld

Enjoying a maritime experience

The Victorian Reliance II at Webb Dock

thedcn.com.au April 2019 63


Operation Cruise

Terminal success

Overseas Passenger Terminal, Sydney

Reverend Un Tay explains efforts to ensure that

cruise line mariners are able to access services

provided to other sailors


seafarers struggle with isolation, loneliness,

note. It is exciting to see a record number

depression and mental health issues. At our

of seafarers from cruise vessels visiting

Mission Centre, we provide a sanctuary of

out Mission. Since our Mission moved to

hope for those struggling with personal or

Hickson Road in 2013, I was quite puzzled

work related issues and our compassionate

as to why so few seafarers from cruise

chaplains provide pastoral care on personal

vessels visited our centre. I have been

and confidential matters. We also visit

berth overnight. The seafarers on board

visiting the crew on board various cruise

seafarers in hospital.

have no means of travelling to the city or

vessels each year but not more than 10

A happy seafarer is a productive seafarer.

visiting the Mission. Therefore we are ready

seafarers visited the Mission each season.

Understanding the needs of seafarers is

to help them out by transporting them to

During this cruise season, and after

vital. Knowing that, we allow seafarers to

the Mission and allowing them to visit the

much consultation and deliberation, we

use our Mission address where their internet

beautiful city of Sydney.

decided to launch Operation Cruise Terminal

orders can be delivered. But they have to

We will request permission from relevant

on 29 October 2018. Our main objective

pick up their parcels personally from our

authorities to set up a facilitating station there

was to inform and raise awareness among

Mission. We have since had more than 100

to disseminate information regarding Sydney

seafarers working on board cruise vessels -

parcels delivered this season, some are small

Mission to Seafarers. We need volunteers to

who we are, where we are and what services

and some are big - really big.

partner with us in this initiative. If you are

we offer to assist them.

We believe Operation Cruise Terminal

available, contact us at (02) 92413009 or

can reasonably be called a success. Since

email us at Mission to Seafarers Enquiries


launching, we have had more than 150

- enquiries@missiontoseafarers.org.au

Our chaplains, staff and volunteers provide

seafarers visit the Mission. From experience

Alternatively, please visit our Facebook at

excellent care for seafarers around the

90% of seafarers on board cruise vessels

Mission to Seafarers - Sydney.

world with compassion. At our Mission, we

have not heard of Mission to Seafarers,

If you are a seafarer yourself or are a

offer an atmosphere of a home away from

the other 10% who have do not know

company connected with the shipping

home where mariners can come to relax

our location. We can proudly say that we

industry, I would like to inform you that

and call their family members back home.

have increased awareness of the Mission

International Seafarers’ Welfare and

We also provide a place of hospitality, by

among the seafarers via our presence at

Assistance Network (ISWAN) are seeking

providing free internet and Wi-Fi services;

the Overseas Passenger Terminal and by

nominees for the Best Welfare Centre and

listening to news updates in their own

visiting them on board the vessels.

Best Welfare Personality of the Year awards.

language; changing foreign currencies

Seafarers can nominate their welfare

or remitting wages to family members;

while enjoying a free cup of coffee or hot

chocolate. We too sell discounted tickets to

places of interest such as Sydney Aquarium,

Madame Tussauds Wax Museum, Wild Life

Park and Sydney Tower Eye.

Due to long contracts and stressful

working conditions on board vessels,


The next cruise season starts in September/

October 2019. We will continue our

Operation Cruise Terminal 2 at OPT. In the

meantime, we are planning a new initiative

called, Operation White Bay Cruise Terminal.

There are many cruise vessels visiting

White Bay Cruise Terminal and many that

heroes at www.seafarerswelfareawards.

org/nominate. People and organisations

involved with seafarers’ welfare can also

nominate for the two Dr Dierk Lindemann

Welfare Personality of the Year awards. If you

think we are worthy of such an award, we’d

be grateful if you could go to the website

and nominate us.

Mission to Seafarers; Aiyoshi597

64 April 2019



The grill

Tom Holyman, vice-president, Oceania at Kalmar,

talks about his new job, Tasmania and his love of rugby

How have you enjoyed your recent

move from ANL to Kalmar?

I am enjoying not only the change in

company, but also the more significant

change into a different industry sector.

It has been, thus far a refreshing change.

Some say a change is as good as a holiday.

Although it could be argued that Kalmar

is an OEM supplying (predominantly)

the ports, stevedoring companies and

intermodal container handling entities,

this business is nevertheless a number of

steps removed from the container shipping

businesses in which I had worked for almost

34 years. Kalmar is a part of a Finnish

company, so I am coming up to speed on

Finnish culture and business practices.

So how did you first get into shipping?

I am the fifth generation of my family

to be involved in the shipping business. I

guess I just followed my natural instincts

into shipping. My great-great-grandfather,

William, was a mariner who immigrated

to Australia from Barton-Upon-Humber in

England and established a shipping business

on the north-west coast of Tasmania

in the late 1850s. The company grew

through subsequent generations of family

involvement, from a Tasmanian coastal

shipping operation to offering services

across Bass Strait (the White Star Line).

Later, there was diversification into landbased

transport, domestic and international

freight forwarding, property ownership

and management of some islands in Bass

Strait (including Robbins Island), as well

as founding one of Australia’s first airlines

– which later became a partnership called

Australian National Airways (ANA) and

eventually, Ansett Airlines. Eventually in

the late 1970s, the shipping and logistics

business known as William Holyman &

Sons was sold to TNT. Despite this change

in ownership, the family name (and family

management of the business) was retained

and it was this company that I first joined in

the late 1980s. It was a great grounding in

the shipping, logistics and ports industries.

Where did you grow up?

After my first eight months living on a ship

at South Wharf in Melbourne, my parents

returned to Launceston, where I grew up.

Launceston was a safe, family-friendly

environment, with great schools and lots

of opportunities. It was safe for children,

whether out on the streets playing or

catching public transport, and our family

holidays were generally spent in Tasmania,

whether on my grandfather’s farm, at the

beach, or – memorably – in my father’s

home-built “recreational vehicle” (a

converted Ansett Airlines truck). Later my

family built a “shack” at the Great Lake in

the central Tasmanian highlands.

I was (and still am!) completely sportsmad

while growing up, so I spent every

moment I could playing whatever was

going – football (Australian rules), cricket,

basketball, swimming, tennis, athletics

and even golf.

How did you become a rugby referee?

I never participated in rugby as a player

(except for one game at university for my

college, as there weren’t enough rugby

players in the college to make up a full

team). However, I loved the game I played

and thereafter took an active interest in

rugby, including during the three years we

spent living in Japan in the early 1990s

where the sport was probably third in

popularity behind sumo and baseball.

In 2004, ANL sent us to London for

three years (we stayed for eight) and I said

to my three sons that if they wanted to

play Australian rules when they returned

to Australia, they should not play soccer

but rather rugby as the skills are more

easily transferred. They did, and through

stepping forward when perhaps I should

have stepped back, I volunteered to

become the referee for my youngest son’s

team at Woodford Rugby Club in northeast

London. This necessitated doing the

referees’ course run by the Rugby Football

Union (England), sitting exams and then

starting to referee on the pitch. Much to

my surprise I absolutely loved it. I am now

a part of the Victorian Rugby Referees

Association and was recently elected to my

second term as association president.

Some of the key attributes of a referees’

performance are skills and characteristics

which are directly transferable to the

work environment, including empathy;

clear and decisive communication; quick

decision-making; teamwork and leadership

(where there is a team including assistant

referees); and – where necessary – executing

disciplinary measures.

As with all sports officials, being a

referee/umpire also helps you deal with

criticism and develop a thicker skin. Of

course it helps that in rugby union there

is a culture developed from a young age

that referees are (largely) sacrosanct. It is

reflective of this culture that referees on

the pitch are only referred to as “Sir”, not

only by the players, but also by coaches,

managers and – sometimes – spectators.

This led to my favourite sledge by a

spectator, who yelled at me from beyond

the touchline after a decision: “For f--k

sake, Sir!”. I even chuckled at that one.


66 April 2019



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