DCN September Edition 2019

First published in 1891 

September 2019 

thedcn.com.au 

The voice of Australian shipping & maritime logistics 

LESS 

means 

MORE 

Fewer carriers but greater 

volumes Australia-Europe 

38 Solid investment and 

growth in WA ports 

46 Special feature on 

global reefer trades 

60 Implications of bigger 

ships at our ports

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Contents 

32 

24 

FEATURES 

24 

32 

38 

46 

Liner trades to Europe 

Liner services reduced despite reasonably good volume growth 

Customs broking and freight forwarding 

The changing roles of forwarders and brokers in a digital world 

Western Australia 

WA’s ports in a strong position to capitalise on future prospects 

Reefer trades 

Global reefer container market predicted to continue expansion 

COLUMNS 

38 

46 

8 Word from the minister 

Deputy PM McCormack 

discusses the advent of IMO 2020 

9 Trade minister’s update 

Trade minister Simon Birmingham 

on the container revolution 

18 Freight & Trade Alliance 

Getting more from ATT program 

20 Women in maritime 

Celebrating the IMO’s 2019 theme 

23 Industry opinion 

The new digital industry alliance 

52 Maritime law 

Signing of the Poseidon Principles 

53 Maritime law 

A case about coffee that lies at the 

heart of the Hague Rules 

54 Trade law 

Can the “Blue Highway” remedy 

some of our supply chain issues 


Interesting technology in maritime 


The implication of visits from two 

Bosporus-class container ships 

62 Out & about 

The monthly round up of events 

66 The grill 

Jason McGregor talks coal shipping, 

surfing and dining hotspots 

4 September 2019 

thedcn.com.au

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First published in 1891 


thedcn.com.au 

EDITORIAL 

ISSUE NUMBER 1250 September 2019 

From the editor 

Revitalising coastal shipping is a great idea in theory but one that 

tends to founder on the rocks of detail. 

Just about everyone says coastal shipping would be great – 

environmental benefits, help decongest roads - but there is little 

agreeance on how to get there. 

DCN has reported on private sector efforts to start coastal 

services that are still to materialise. 

The Council of Australian Governments National Action Plan 

mentions “regulatory reform to improve the viability of coastal 

shipping”, something highlighted by Ports Australia. 

According to Ports Australia, COAG support for coastal shipping 

will now give cause to all states and the Northern Territory to 

examine whether such a proposal could work in their jurisdictions. 

Some of the states are in the process of preparing coastal shipping 

policies. On this front, we’re sceptical – the success or failure of 

coastal shipping ultimately will relate to the federal sphere. 

Nonetheless, any interest is to be welcomed. 

In this edition, trade lawyer Andrew Hudson adds to the coastal 

shipping debate. Usually someone who specialises in navigating the 

shoals of international tariffs, Mr Hudson’s is a fresh perspective 

and one worth reading. 

Overall DCN supports the concept of coastal shipping. But for it 

to return in a meaningful way, much work and, importantly, good 

will, is necessary from many parties. 

David Sexton 

Editor, Daily Cargo News 

Stay up to date with the latest industry news and insights 

by subscribing to one of our subscription packages! 

thedcn.com.au 

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Lindsay Reed lindsay.reed@thedcn.com.au 

Tel: 0431 956 645 

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James Hayman james.hayman@thedcn.com.au 

Tel: 02 9126 9713 

The voice of Australian shipping & maritime logistics 

LESS 

MORE 

means 

Fewer carriers but greater 

volumes Australia-Europe 

38 Solid investment and 

growth in WA ports 

46 Special feature on 

global reefer trades 

60 Implications of bigger 

ships at our ports 

DCN0919_Cover.in d 1 2-Aug-19 1:24:04 AM 

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WORD FROM THE MINISTER 

Australia well prepared for 

Sulphur 2020 

Deputy Prime Minister Michael McCormack says federal authorities 

and industry are preparing for the advent of sulphur emissions restrictions 

THE GLOBAL COUNTDOWN TO 

Sulphur 2020 is on and I am pleased to 

report Australia’s maritime industry is well 

advanced in its preparation, due in part 

to the extensive consultation campaign 

undertaken by the Australian 

Maritime Safety Authority and 

Maritime Industry Australia 

Limited. 

Airborne sulphur 

oxides are one of the 

major contributors to 

respiratory illnesses, 

as well as acid rain 

which has a significant 

effect on crops, 

livestock and buildings. 

The cumulative impacts of 

air pollution, even away from 

the coastline and shipping routes, 

add up in economic costs. 

The International Maritime 

Organization has been progressively 

tightening sulphur oxide emission 

standards for ships since 2005. From 1 

January 2020, ships and vessels operating 

anywhere in the world will be required to 

use fuel containing a maximum of 0.50% 

sulphur, down from 3.50%. This represents 

a reduction of more than 85% in sulphur 

emissions, which is a substantial change. 

I know concerns have been raised 

regarding flow-on effects such as an 

owners to meet the new sulphur limit – for 

example low sulphur fuel oil, exhaust gas 

cleaning systems, or alternative fuels. 

The short-term price impacts on diesel 

are likely to be smaller than global crude 

oil price fluctuations over recent years 

given that bunker fuel demand 

from the shipping industry 

constitutes just over 4% 

of global oil demand. 

Regarding supply, an 

IMO review completed 

in 2016 concluded that 

sufficient compliant 

fuel oil would be 

available globally for the 

shipping industry to meet 

the 2020 deadline. And 

as more vessels are expected 

to transition towards the use of a 

compliant low sulphur fuel in the last 

quarter of 2019, any indications of diesel 

price impacts are likely to be observed 

towards the end of the year. 

In Australia, marine fuel oil demand 

comprises less than 3% of total liquid fuel 

demand and the majority of Australia’s 

domestic fleet already use compliant 

fuels. Australian refineries have indicated 

there will be no shortages in the supply of 

compliant fuels for ships across Australia’s 

six major bunkering hubs. As Australia is a 

relatively small bunkering market, the price 

and solutions on implementation with 

the maritime and fuel supply industries. 

In the lead up to 1 January 2020, AMSA 

has stressed that ships should report any 

issues with compliance preparations to 

their flag state, recognised survey and 

certification organisations and the coastal/ 

port state. Also important after that date 

is early notification of any issues with fuel 

availability so AMSA can assist with a 

timely and appropriate regulatory response. 

In the coming months, the Liberal and 

Nationals government will continue to 

pursue measures which will put in place the 

IMO ban on the carriage of high sulphur 

fuel oil for ship propulsion from 1 March 

2020. The carriage ban aims to support 

compliance with the sulphur standard and 

ensure a global level playing field for the 

maritime industry. 

I have every confidence that through 

our work with the IMO, as well as AMSA 

and MIAL’s thorough groundwork and the 

willingness of our maritime industry to 

meet these improved standards, we are well 

on track to be Sulphur 2020 ready. 

The cumulative impacts of air pollution, 

even away from the coastline and shipping routes, 

add up in economic costs 

increase in fuel costs and changed supply 

and demand in the diesel-reliant landbased 

sectors. It is difficult to estimate the 

extent and duration of diesel price rises 

as they are dependent on refinery output 

responses, changing demand from landbased 

consumers and options taken by ship 

of marine fuel oil and diesel is determined 

by the international market. Indications 

worldwide are that refineries have been 

investing in plant upgrades to produce 

sufficient volumes of low sulphur fuel. 

Since 2017, AMSA and MIAL have 

held roundtables to discuss problems 

Michael McCormack, Deputy Prime Minister 

and minister for infrastructure 

Image supplied; Michele Ursi 


thedcn.com.au

WORD FROM THE TRADE MINISTER 

Shipping containers 

a trade secret success 

Minister for trade Simon Birmingham reminds us of the significance 

for Australia of the advent of containerisation 

Image supplied 

WHILE CELEBRATIONS MARKING 

the Apollo 11 moon landing have captured 

headlines, another influential 50th 

anniversary has gone relatively unnoticed. 

On 28 March 1969 – a few months 

before Neil Armstrong’s one small step 

– the Encounter Bay sailed quietly into 

Fremantle Port. It was the first purposebuilt 

container ship to visit Australia 

and in the decades since, the humble 

shipping container has helped revolutionise 

international trade. 

Although a simple invention, these large 

reusable steel boxes made freight cheaper 

and faster. Products could be moved with 

ease across countries and continents, 

transferred seamlessly between train, truck 

and ship. 

In few places was this more important 

than Australia. By making transport easier, 

the shipping container helped Aussie 

exports overcome the tyranny of distance 

and terrain. 

Australian consumers benefited too. 

Before shipping containers, the price of a 

traded item in Australia was between 5% 

and 10% more expensive because of the 

higher handling and maritime transport 

costs. The arrival of the container and the 

efficiencies that followed saw these costs 

fall to around 1.5%, meaning cheaper items 

at the checkout. 

I encourage you to see the Australian 

National Maritime Museum’s exhibition 

Container — The Box that Changed the World, 

which has toured the nation. It tells the 

story of the shipping container and the 

impact it has had on our entire economy. 

INFLUENCE ON TRADE AGENDA 

In many ways, our trade agenda today 

builds on the global success of the 

shipping container. 

Whether by advocating for reforms to 

modernise global trading rules or pursuing 

trade deals, the Morrison government is 

making it easier for farmers and businesses 

to sell their goods and services overseas. 

Over the past five years, we have laid the 

groundwork for deeper regional integration 

with our most important trading partners 

through a comprehensive free trade 

agreement agenda. 

We have concluded major bilateral trade 

deals with China, Japan and South Korea, 

and the Comprehensive and Progressive 

Agreement for Trans Pacific Partnership 

(TPP-11) with 10 other members, including 

Singapore, Malaysia, Vietnam, New 

Zealand, Canada and Mexico. We have 

also recently concluded negotiations for 

agreements with Hong Kong, Peru and 

Indonesia are working to bring them into 

force as quickly as possible. 

Before shipping containers, the price of a traded item 

in Australia was between 5% and 10% more expensive 

This year we share the Association of 

Southeast Asian Nation’s aim of concluding 

the Regional Comprehensive Economic 

Partnership. With 16 economies, including 

India and China, and accounting for 

about one-third of the global economy, a 

deal would create a trading bloc greater 

than any other single trading agreement 

currently in place. 

Our trade deal with Indonesia is a 

particularly important major step to 

strengthen our critical relationship with 

our largest neighbour and foster its growing 

appetite for Australian exports. We are 

working with Indonesia on entry into force 

as soon as possible. 

Negotiations are also progressing on our 

free trade agreement with the European 

Simon Birmingham, Minister for trade, tourism 

and investment 

Union, working to achieve a deal that 

delivers more opportunity for Australian 

exporters. Together this ambitious trade 

agenda could see around 88% of Australia’s 

trade covered by agreements by 2022, up 

from just over one quarter in 2013. 

Our strategy provides Australia the best 

possible protection against the headwinds 

in the global trading environment and the 

frictions between the US and China. 

Our focus on free and open trade 

also supports millions of jobs. One in 

five Australians are in trade-related jobs, 

many across the shipping and transport 

industries. 

Today, $1.2bn worth of goods pass 

through Australian ports every day. In fact, 

trade in goods has increased a staggering 

84-fold since 1969, when the shipping 

container first arrived in Australia. 

So while we remember the incredible 

achievement of the moon landing, I ask 

that you also spare a thought for the 

humble shipping container and the impact 

that trade has had on all aspects of our 

everyday lives. 

thedcn.com.au September 2019 9

News in brief 

Full details at thedcn.com.au 

IMO secretary-general says transport 

essential to sustainable future 

IMO secretary-general Kitack Lim 

IMO secretary-general Kitack Lim 

addressed an industry group in Sydney 

in support of the IMO’s 2019 theme 

“Empowering women in the maritime 

community”. 

It was the first time that an IMO 

secretary-general had visited Australia. 

Kitack Lim was in Sydney at the invitation 

of the Australian Maritime Safety 

Authority. 

While he believes the shipping industry 

has “much to be proud about” and is now 

“safer and more secure than ever before”, 

Mr Lim said the industry was focused on 

helping the United Nations achieve its 2030 

agenda for sustainable development. 

“The 2030 agenda… will only be 

realised with a sustainable transport sector 

including shipping,” Mr Lim said. 

“I am very pleased that the IMO theme 

this year is… empowering women in the 

maritime community,” he said, adding that 

this aligns with Sustainable Development 

Goal 5: Gender Equality. 

According to the UN, “gender equality 

is not only a fundamental human right, 

but a necessary foundation for a peaceful, 

prosperous and sustainable world”. 

“To celebrate the IMO theme we are 

undertaking a range of initiatives such as… 

a social media campaign,” Mr Lim said. 

He spoke about the IMO’s impending 

2020 fuel sulphur regulation, which will 

see a limit on the sulphur content of 

bunker fuel lowered to a maximum of 0.5% 

from January 1, 2020. 

“I have worked hard with member 

states and industry to support the 

implementation of this important global 

initiative which will have a far-reaching 

beneficial impact on the human race,” 

Mr Lim said. 

RAIL OPERATOR CALLS FOR END TO FREIGHT ACCESS CHARGES 

Pacific National CEO Dean Dalla Valle says excessive 

government charges applied to rail freight services and a buildup 

of red tape is suffocating the haulage of goods between 

Australia’s two biggest cities. 

Mr Dalla Valle said less than 1% of 20m tonnes of palletised and 

containerised freight transported between Melbourne and Sydney 

is now hauled by trains. 

The Australian government taxes operators like Pacific National 

an ‘access charge’ to run freight trains on railways. Current access 

charges do not account for extensive taxpayer funding of roads 

(and hence support for trucks) compared to significant commercial 

demands on rail freight. 

Pacific National calculated access costs of hauling a 20-foot 

container between Melbourne and Sydney by a freight train or 

B-double to be $94 and $55, respectively. 

“In terms of accessing the freight corridor between Melbourne 

and Sydney, that’s a massive 70% cost penalty for rail – this rips the 

guts out of our industry,” Mr Dalla Valle said. 

KDS Photographics; Eskinder Debebe 


thedcn.com.au

Autonomous shipping discussed at UK Club 

A presentation by Filip Koscielecki of the 

UK Club entitled Autonomous Shipping – 

Revolution by Evolution took his audience 

through the issues from the progression 

towards more autonomous ships. 

Among other 

considerations explained 

was the seaworthiness and 

navigating capabilities of 

unmanned or restricted 

crew vessels. 

There was also discussion 

of greater exposure to cyberattack, 

the consequences of 

robotic and AI control of ships and legal 

responsibility and liability. 

“The benefits of autonomous shipping 

are many and will drive the future progress 

of such technology in what may, in the 

TasPorts to keep King Island 

shipping service 

future be termed revolutionary,” Mr 

Koscielecki said. 

“However the wide-spread ramifications 

that will surely disrupt the traditional 

shipping environment will have to 

be carefully managed. 

“Therefore, evolutionary 

steps towards autonomy will 

characterise the path of such 

progression.” 

The event was organised 

by WISTA UK as part of its 

regular program of networking 

meetings accompanied by an 

in-depth lecture on a shipping issue of 

the day. 

It was hosted by Thomas Miller managed 

insurance mutuals, the UK P&I Club and 

the UK Defence Club. 

TasPorts, the owner/operator of the Bass Island Line that operates between 

Geelong, Grassy and Devonport, has committed to enhancing the service after a 

market sounding exercise failed to identify a suitable commercial operator. 

After an initial market sounding process late last year, in April this year current 

and potential Bass Strait operators were invited to submit indicative proposals to 

participate in the delivery of the BIL. 

“Following an extensive evaluation process, a panel comprising representatives 

from TasPorts, BIL and the Department of State Growth did not shortlist any of the 

market participants,” TasPorts chief Anthony Donald said. 

“This decision was taken on the basis that the evaluation panel considered none 

of the market participants sufficiently demonstrated that their proposals were able 

to independently achieve an improved BIL Service outcome without substantial 

ongoing involvement and support from TasPorts.” 

K-LINE FINED $34.5M 

FOR CRIMINAL 

CARTEL CONDUCT 

In the largest criminal fine ever 

imposed under the Competition 

and Consumer Act, Japanese 

shipping company K-Line has been 

hit with a $34.5m fine for criminal 

cartel conduct. 

The Federal Court ruled Kawasaki 

Kisen Kaisha (K-Line) engaged in price 

fixing as part of an illegal cartel with 

other shipping companies for the 

transportation of cars into Australia 

between 2009 and 2012. 

This involved some 106,247 new 

cars being transported to Australia 

from the United States, Asia and 

Europe. 

“This decision is a serious warning 

to businesses and will deter others 

seeking to join or start a cartel,” ACCC 

chair Rod Sims said. 

“The penalty imposed on K-Line 

should send a powerful message 

to multinational corporations that 

conduct business in Australia that 

anti-competitive conduct will not 

be tolerated and will be dealt with 

harshly,” Federal Court judge Michael 

Wigney wrote in his judgment. 

K-Line faced a maximum fine of 

$100m but the Federal Court reduced 

the penalty because the shipping 

company pleaded guilty early and 

was cooperative. 

Judge Wigney wrote the cartel 

conduct of K-Line is “inimical to and 

destructive of the competition that 

underpins Australia’s free market 

economy. 

“It is ultimately detrimental to, 

or at least likely to be detrimental 

to, Australian businesses and 

consumers,” he said. 

Mr Sims said that cartel conduct 

cheats consumers and other 

businesses through inflating prices 

and costs but also restricts healthy 

economic growth and discourages 

innovation. 

Bass Island Line; Roman Tiraspolsky 


NEWS IN BRIEF 

YM EFFICIENCY CLEAN UP 

EXPECTED IN 2020 

The Australian Maritime Safety Authority announced 

the next step in the recovery of shipping containers lost 

overboard from the YM Efficiency off the NSW Central Coast 

mid-last year. 

The Liberian-flagged container ship lost 81 containers 

over the side in heavy weather about 30km southeast of 

Newcastle. 

AMSA has opened a tender for salvage and offshore 

construction operators to remove containers for safe 

disposal onshore. 

The closing date for tenders is September 19, with the 

clean-up expected to begin early next year. 

The successful operator will work closely with AMSA to 

mitigate any identified risks to the marine environment. 

AMSA and NSW Maritime will host public information 

sessions to give members of the community an opportunity 

to learn more about the salvage operation and how they will 

be managing waste. 

YM Efficiency 

Qube wins safety award 

A reduction in injuries has resulted in logistics services provider 

Qube Group winning an icare Aware Award. 

“Qube’s story is a great example of how creating a culture of 

wellness, coupled with good safety practices, can help prevent 

accidents and injuries at work,” icare’s injury prevention manager 

Jennifer Cameron said. 

Recognising the implications of an unhealthy workplace, Qube 

has been on a journey over the past five years to reduce injuries and 

illnesses at work. Qube’s lost time injury rate has dropped by 65% 

and, where an incident has occurred, employees are returning to 

work faster with the average days off work dropping by over 17% 

since 2016. 

The company has also seen a substantial drop in workers’ 

compensation claims across some of their high-risk sites, with the total 

number of claims dropping by more than 40% over the past two years. 

“Like many employers, the combination of an aging workforce 

and deterioration in community health and lifestyle standards can 

pose a significant risk to workplace health and safety,” Qube group 

manager health and wellbeing, Joe Toohey, said. 

VICT calls for delay on Port of Melbourne’s container levy approval 

Stevedore Victoria International 

Container Terminal has called for the 

state government to delay its decision 

on the Port of Melbourne’s $15 a 

container levy on the port’s imports. 

The levy was proposed to fund its 

planned port rail shuttle to Swanson 

Dock. The port rail shuttle is the first 

major initiative proposed by PoM since 

its acquisition in 2016 by the 

private financial consortium, 

Lonsdale Group. 

VICT says the shuttle will 

have “little prospect of taking 

trucks off Melbourne’s roads 

in the near future and as 

planned will not mitigate the 

much greater truck congestion 

expected as time goes on”. 

Webb Dock, located outside 

the West Gate Bridge, is, 

according to VICT, expected to provide 

the lion’s share of the future growth 

of the port because it can berth larger 

ships, being unconstrained by the height 

of the bridge. 

“The logical step would be to connect 

Webb Dock to intermodal freight hubs 

in greater Melbourne areas, such as 

Dandenong and Altona,” VICT said. 

Port of Melbourne industrial area 

VICT said a delay in assessing the 

proposal would enable stakeholders 

to take a rigorous look at the future of 

the port and seek more effective ways 

to get trucks off Melbourne’s roads 

while at the same time lowering costs 

for all users. 

“VICT wants a genuine rail 

solution for the port, like all industry 

stakeholders do,” CEO Anders 

Dømmestrup said. 

“But the solution must include 

Webb Dock, which is on the right 

side of the bridge,” he said. 

“This is critically important 

for the future of Melbourne 

and Victoria. We are asking 

for three months to work with 

the government and the Port 

of Melbourne to deliver a rail 

solution that considers all 

parties.” 

Image supplied; Ian Ackerman; Michael R Evan 


thedcn.com.au

NEWS IN BRIEF 

Port of Melbourne container terminal 

Victorian port access 

pricing review announced 

The Victorian Department of Transport 

said it had engaged Deloitte Access 

Economics to undertake a review of port 

access charges. It comes in response to 

industry concerns regarding increasing 

infrastructure charges by stevedores at the 

Port of Melbourne. 

The review is to assess port pricing/ 

charges at, and access issues into and out of 

the Port of Melbourne to ensure any review 

of charges is carried out in the context of 

the overall Port of Melbourne container 

supply chain. 

Container Transport Alliance Australia 

has also welcomed the review. 

“There are many issues of access between 

road (and rail) operators and container 

stevedores at the Port Melbourne beyond 

the unregulated nature of the landside 

infrastructure charges levied by the 

stevedores on transport operators,” CTAA 

director Neil Chambers said. 

“We hope that this review will peel 

back the ‘layers of the access onion’ and 

recommend ways to make the interface 

fairer, more efficient, more productive and 

price competitive,” he said. 

Freight & Trade Alliance director Paul 

Zalai said he hoped the Victorian government 

would “champion the cause to support 

Australian exporters and importers”. 

“I don’t blame the stevedores for 

looking for alternate models as the 

introduction of infrastructure surcharges 

is obviously a lot easier way to remain 

profitable,” Mr Zalai said. 

“While there’s no suggestion of collusion 

between the parties, it is clearly a case of 

‘follow the leader’ with each stevedore 

taking it in turn to ratchet up the pricing.” 

HEDLAND TOWER TO 

STEER GROWTH OF 

WORLD’S LARGEST 

BULK EXPORT PORT 

A new high-tech shipping control 

tower has opened in the port of 

Port Hedland providing industry in 

Western Australia with world-class 

maritime facilities. 

The Hedland Tower Integrated 

Marine Operations Centre houses 

high-tech equipment and emergency 

response facilities that will direct the 

movement of vessels through the 

harbour for the next 50 years. 

To reflect the rich cultural and 

maritime history of Port Hedland, 

four rooms in the Hedland Tower are 

named after people and words with 

connections to the local community. 

The Incident Control Room will 

be named the Kariyarra Room after 

the traditional owners of the land on 

which the Hedland Tower is built. 

The Operations Room will be 

named the Thurla Room. Thurla is 

the Kariyarra word meaning eye and 

reflects the bird’s eye view from the 

top of the building. 

One meeting room will be named 

the Stanton Room after a wellregarded 

Port Hedland identity, 

Merv Stanton. Another meeting 

room will be called the Monks Room 

after Port Hedland’s first Harbour 

Master, Geoff Monks. 

The Hedland Tower is one of 

three projects funded by the Port 

Improvement Rate, a temporary levy 

charged on vessels entering and 

exiting the harbour. 

IMO 2020 TO IMPACT HEAVY LIFT: AAL 

AAL says switching to low-sulphur fuel will impact the economics of its 

operations. The breakbulk, heavy lift and project cargo specialist said it had decided 

the best option for IMO 2020 compliance would be to use low-sulphur fuel, but all 

variants were currently more expensive than standard marine bunkers. 

“In consideration of the wide variety of cargo and trades that we handle and 

manage worldwide, we will be implementing various calculation methodologies to 

fairly share the increased cost of low sulphur fuel usage with our customers,” AAL 

said in a statement. 

“These measures will come into effect from September 1st 2019, as we start the 

arduous task of preparing our fleet for low sulphur fuel and begin bunkering same 

with the intent of being fully compliant with the IMO regulation by year’s end.” 

The company said it welcomed the impact the new regulations would have on the 

environment and the health of current and future generations. 

Jordi C; Image supplied 


thedcn.com.au

THE NEXT WAVE IHMA 2020 CONGRESS 

YOUNG MARITIME PROFESSIONALS 

INNOVATION PITCHING COMPETITION 

Do you have a game-changing idea or innovation 

that could disrupt the maritime industry? 

The IHMA Young Maritime Professionals Innovation Pitching 

Competition invites all maritime professionals, 35 years and 

under, to submit an innovative idea that could disrupt the 

industry with the next wave of change to shape a better 

future. 

This is your opportunity to take centre-stage and directly 

engage with an audience of decision makers and people with 

the resources to drive your idea and career. 

Finalists will have the opportunity to present their ideas to 

industry leaders at the IHMA 2020 Congress with the winner 

announced at the Gala Dinner. 

In addition to unique networking opportunities, finalists will 

also receive complimentary attendance at the IHMA 2020 

Congress and 5 nights’ accommodation at the Congress 

venue, the Hotel Grand Chancellor. 

If you have an idea that may increase the industry’s safety, 

improve engineering or maintenance practices, better industry 

connectivity or ultimately offer suppliers and customers an 

improved service – we want to hear from you. 

Visit the website to submit your innovative idea, large or 

small and contribute to a better future for port operations. 

Deadline for competition entries: 20 September 2019 

Proudly Sponsored by 

www.globalportoperations.com/pitching-competition

NEWS IN BRIEF 

INTEGRATED 

NATIONAL FREIGHT 

STRATEGY ADOPTED 

Ban on sheep exports to 

the Middle East extended 

The Department of Agriculture extended 

a ban on live sheep exports to, or through, 

the Middle East to 22 September. 

In making the decision, the department 

said it had considered the “best available” 

science and evidence, and feedback from 

public consultation. 

The interests of the industry, animal 

welfare and government policy were also 

taken into account. 

A statement from the Department of 

Agriculture said evidence indicated the 

risk of heat stress for voyages departing 

Australia in the first three weeks of 

September are comparable, or higher 

than June. 

“The department determined conditions 

in June (along with July and August) are 

too hot for sheep exports. The industry 

came to a similar conclusion,” the 

Department of Agriculture said in a 

statement. 

“Furthermore, sheep departing Australia 

in early to mid-September are acclimatised to 

cooler Australian temperatures and therefore 

less heat tolerant than sheep departing in 

Australian summer or autumn months.” 

When trade resumes, shipments to the 

Middle East must comply with the same 

conditions that applied in May when the 

ban started. 

These include verification of the 

ship’s pen air turnover, a heat-stress 

management plan, stocking sheep properly 

and collection of environmental data to 

report to the department. 

Deputy Prime Minister Michael 

McCormack announced the adoption 

of the National Freight and Supply 

Chain Strategy. 

The strategy and its associated 

action plan, developed by all 

Australian governments with industry 

input, will integrate the different 

transport modes for the first time. 

“With our freight volumes 

expected to grow by more than a 

third by 2040 and online shopping 

growth at over 20% a year, we need 

to increase the productivity of our 

freight system,” Mr McCormack said. 

The strategy commits to national 

action in the areas of: smarter and 

targeted infrastructure investment; 

improving supply chain efficiency; 

better planning, coordination and 

regulation; and better freight location 

and performance data. 

Jurisdictions will report back 

to COAG in November with their 

implementation arrangements for 

delivering the strategy. 

The strategy was welcomed by the 

Australian Logistics Council. 

“The development of this strategy 

has been a long-term policy objective 

for ALC and has been enthusiastically 

supported by industry participants,” 

ALC chief Kirk Coningham said. 

Chief of NSW Ports Marika 

Calfas said she was pleased to see 

the commitment to keep industry 

engaged throughout the strategy’s 

ongoing delivery. 

INDUSTRY EVENTS 

2019 EVENT 

7 Sep 30th Anniversary Australian Freight Industry Awards, Melbourne http://vta.com.au/all-events 

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

16-24 Sep Official ICC Incoterms ® 2020 Aust. workshops, various capital cities 

within that time period 

www.australianchamber.com.au/international/ 

incoterms2020workshops 

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

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

29-30 Oct Regional Ports, Newcastle www.informa.com.au/event/conference/regional-ports 

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

22 Nov Australian Supply Chain & Logistics Awards, Sydney https://sclaa.com.au/events 

2020 

23-26 Mar 12th International Harbour Masters Congress, Hobart www.globalportoperations.com 

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

Jordi C 


thedcn.com.au

Our Architects, DJAS Canberra impression of 

the four (4) new concrete blades that will bear 

the names and respective vessels of Australian 

Merchant Navy men and woman who sacrificed 

their lives for their country in WWI & WWII 

The Merchant Navy 

War Memorial Fund 

(MNWMF) 

NATIONAL FUND-RAISING APPEAL 

The MNWMF is seeking donations for construction of new works to 

the Merchant Navy War Memorial, Kings Park Canberra 

that will see the installation of the names of Australian Merchant Mariners 

that sacrificed their lives for their country in WWI (184) & WWII (678) 

For more information: 

www.mnwmf.com.au 

CONTRIBUTIONS MAY BE MADE TO: 

The Secretary, 

Merchant Navy War Memorial Fund Ltd 

PO Box 3058, Rosemeadow NSW 2560 

or by EFT to: 

Bank: WESTPAC Banking Corporation 

Account Name: MNWMF Project Development Fund BSB: 032 197 

Account No: 477 684 Reference: Include your name & organisation 

Please note: If paying by EFT please forward an email with your name, organisation, address and phone number to 

secretary@mnwmf.com.au A receipt will be forwarded for all donations received. MNWMF is currently pursuing an 

Application for registration as a Deductible Gift Recipient (DGR). 

I would like to take this opportunity to express our thanks and appreciation for the FINANCIAL SUPPORT to date, of the AUSTRALIAN SHIPPING & MARITIME 

INDUSTRY, for this NATIONAL FUND-RAISING APPEAL. Most sadly, due to the passing of the years the number of Australian WWII Merchant Navy Veterans, 

has significantly reduced. We are however very pleased that this project of Respect and Recognition, will see the names of those Merchant Mariners, who 

gave their lives for the freedom that we enjoy today, permanently recorded on the Merchant Navy War Memorial, Kings Park Canberra. Our motivation is to 

ensure that the ‘national memory’ of the courage and heroism of the critical role played by our Merchant Navy, in WWI & WWII, does not continue to fade 

and to ensure that the Australian Merchant Navy “A title emblazoned in battle and honoured in freedom” is recognised as an important part of Australian 

Maritime History and Social Culture. David Field, FAICD, Chairman, The Merchant Navy War Memorial Fund Ltd

INDUSTRY OPINION 

Getting more out of the ATT 

The Australian Trusted Trader program as an important initiative, writes 

Travis Brooks-Garrett, but there is opportunity for more tangible benefits 

SINCE ITS INCEPTION, ATT HAS 

seen growth in the participation of logistics 

service providers. While they have been 

rewarded with use of the ATT branding 

and other advantages, feedback from FTA 

members is that they believe an opportunity 

exists for more tangible direct benefits. 

To support the member engagement 

process, FTA recently hosted two “advisory 

group” workshops with key ATT accredited 

logistics service providers. The aim being 

to identify and prioritise future benefits for 

consideration by the Department of Home 

Affairs and the Australian Border Force. 

IMPORTANCE OF SERVICE PROVIDERS 

FTA conservatively estimates that 70% of 

Australia’s inbound containerised trade 

is facilitated by freight forwarders and 

logistics service providers. Importantly, 

freight forwarders and licensed customs 

brokers are responsible for a higher share of 

SME enterprise import volumes. 

For the ATT program to be truly 

representative and inclusive of those SMEs, 

accredited logistics service providers must 

play an enhanced role in the delivery of 

benefits to SMEs. 

The FTA advisory group has observed that 

many service providers are primarily using 

their ATT accreditation as a marketing tool, 

without seeing direct operational benefits. 

With more than half of all current ATT 

members being logistics service providers, it is 

important for policy to also deliver meaningful 

benefits directly to service providers. 

LACK OF AG INVOLVEMENT 

The continuing lack of involvement of 

the Department of Agriculture in the ATT 

program has been a longstanding matter of 

concern to FTA members. 

The department is now exploring 

its own “trusted” regimes under their 

Biosecurity 2025 and Beyond initiative, 

as well as the expansion of the Food 

Importer Compliance Arrangements and 

the re-introduction of BMSB Safeguarding 

Arrangements. Some of these programs 

include the allocation of an “account 

manger”, representing a serious duplication 

of federal government resources. 

The advisory group notes that US 

Customs and Border Protection includes 

biosecurity parameters in its Authorised 

Economic Operator scheme. 

While FTA understands that the 

department has made approaches to the 

Department of Agriculture, we now believe 

that this matter warrants intervention by 

senior government representatives. 

THE DEFERRAL OF DUTY AND OTHER 

LIABILITIES 

The advisory group unanimously agreed 

that duty deferral should be available to 

accredited service providers to allow for 

SMEs to access benefits. 

While ATT Policy has expressed 

concern regarding the risk associated with 

extending the benefit to non-accredited 

cargo owners, the advisory group believe 

that many ATT accredited service providers 

would consider assuming duty liabilities on 

behalf of SME cargo owners. 

ATT already requires accredited service 

providers to perform financial due diligence 

and other forms of due diligence with 

their clients. Moreover, many freight 

forwarders are already offering credit terms 

to their clients, some up to 60 days. With 

the accredited service provider assuming 

relevant duty liabilities in the event of nonpayment, 

there would be no added financial 

risk to the Australian government. The 

advisory group believes that this warrants 

serious consideration by the department. 

An opportunity also exists to extend the 

duty deferral benefit to SMEs for other border 

charges, including the Import Processing 

Charge, Wood Levy and other charges levied 

via the Full Import Declaration. 

Travis Brooks- 

Garrett, director, 

Freight & Trade 

Alliance 

the Modern Slavery 

declaration, on a client-by- 

RECOMMENDATIONS OF THE FTA ADVISORY GROUP 

• reporting screening times 

for ATT accredited entities. 

• Introduce a specific ATT client basis. 

application for logistics • 

service providers. 

• 

ATT Policy must provide 

formal guidance on 

differentiated compliance 

approaches, including 

the application of the 

Infringement Notice 

Scheme, for ATT accredited 

entities. This differentiated 

compliance approach must 

also apply to accredited 

logistics service providers. 

• 

Align sea freight cargo 

reporting screening 

times to airfreight cargo 

Improved reporting 

functionality for ATT 

accredited service providers. 

• A differentiated process for 

advising minor variations 

of s.77G licenses. 

• Consider a broad 

Community Protection 

declaration, similar to 

Exemption letters for nonroad 

vehicles should not be 

required on a transactional 

basis, if the service 

provider, as the declarant, 

is accredited under the ATT 

program. 

• 

Account Managers of 

ATT accredited service 

providers should be 

available to assist certain 

issues even when the cargo 

owner is not accredited 

under the scheme. 

• The department issues a 

self-assessment template 

for the CoO waiver 

requirement. 

• The department 

commence engagement 

on potential operational 

reforms in managing 

Border Holds and 

interaction with ATT 

service providers. 



thedcn.com.au

MARITIME HISTORY 


The sinking of 

the Wollongbar II 

Stephen Westfield remembers the fate of the Australian 

Merchant Navy ship and the bravery of the crews who 

served under the Red Ensign during WWII 

“LOOK OUT, SUB TO PORT!” 

These were the fateful last words of 

Captain Charles Benson on the bridge 

of the Australian Merchant Navy ship 

Wollongbar II on the afternoon of 29 April 

1943. As his ship, laden with food supplies, 

steamed six nautical miles off Crescent 

Head on the mid-North coast of New 

South Wales, an I-180 Japanese submarine 

pulled alongside it and fired two torpedoes. 

The projectiles hit their mark, sinking the 

ship and killing Captain Benson and 32 of 

the vessels complement of 37, including a 

16-year-old youth. 

World War II was well and truly on 

Australia’s doorstep. The sinking of 

the Wollongbar II was one of many wartime 

tragedies that have been largely forgotten. 

While our island continent was not 

invaded, our coastal waters most certainly 

were. Between December 1941 and August 

1943, 58 Japanese submarines sank 38 

merchant ships in Australian waters and 

hundreds of lives were lost. Due to the 

strict government censorship laws during 

World War II, most Australians were 

unaware of the extent of warfare within 

our coastal waters. 

With the growing threat of Japanese 

attacks, Captain Benson had every reason 

to be worried about what was to be his last 

Wollongbar II 

voyage. Earlier in the week, the Wollongbar II 

had spent time searching for survivors of 

another Merchant Navy ship, the Union 

Steamship Company’s SS Limerick that had 

been sunk. 

FATE OF THE “WHOLLY” 

The previous day in Byron Bay, the 

“Wholly” had been loaded with 18,000 

cases of butter and several tons of bacon, 

valuable supplies bound for Sydney. During 

peacetime, the 2,239-ton steel steamer, 

belonging to the North Coast Steam 

Navigation Company and traded weekly 

between Byron Bay and Sydney and could 

accommodate 150 passengers. The deadly 

attacks put a stop to civilian travel but the 

shipping line and the federal government 

agreed the vessel should continue to carry 

vital refrigerated cargoes. 

Captain Benson was anxious about his 

passage towards Sydney. What he did not 

know was he would soon cross a deadly 

Japanese submarine 200 nautical miles 

south and that he and most of his men 

would go down with the ship. 

Just five crew survived the sinking, 

clinging to a badly holed lifeboat until 

rescued by the fishing trawler XLCR, 

owned and manned by Claude Radley, 

and his crew. 

The story of the sinking of the 

Wollongbar II is a stark illustration of the 

extent of the perils on the Australian 

coastline and in the Pacific during World 

War II. The bravery of the crews who 

served under the Red Ensign has often 

been omitted in recording our wartime 

history, as has those who gave their lives 

in the Merchant Navy effort. Unescorted, 

unarmed merchant ships often travelling at 

speeds less than 10 knots, carried personnel 

and essential cargoes of foodstuff, supplies, 

ammunition and other items in short 

supply in those difficult times. It was the 

Merchant Navy’s duty to keep supplies 

coming at any cost, and it did. 

MEMORIAL FUND ACTIVITIES 

The Merchant Navy War Memorial Fund 

has embarked on a national fundraising 

appeal, to recognise the bravery of those 

crews with a project, covering new and 

remedial works, to the Merchant National 

War Memorial, in Kings Park, Canberra. 

The new works will include four concrete 

blades on a new section of pavement. The 

new blades (two on each side) will have the 

names of Merchant Navy seafarers who lost 

their lives in World War I and World War II. 

The governor-general, His Excellency 

General the Honourable David Hurley 

AC DSC (Retd), has been invited as guest 

of honour to deliver the 2019 address on 

October 20 and unveil the commemorative 

plaques. All are welcome to attend. 

Find more information at: www.gofundme. 

com/f/mnwmf-national-fundraising-appeal 

Stephen Westfield, board member Australian 

Merchant Navy Memorial Fund and chairman 

Young Shipping Australia NSW 


WOMEN IN MARITIME 

A chance to celebrate 

#womeninmaritime 

Jillian Carson-Jackson, senior vice-president of the Nautical Institute, writes about the 

significance for women of the International Maritime Organization secretary-general 

Kitack Lim’s recent visit to Australia 

WHEN WAS THE LAST TIME YOU 

visited the United Nations website on 

Observances of International Days? I 

suggest you take a look – there are quite 

a few amazing days to celebrate. In 

September alone there are 14 different 

international days listed. September 21 

celebrates the International Day of Peace, 

the 26 promotes the Total Elimination 

of Nuclear Weapons and September 

28 encourages Universal Access to 

Information. September seems to truly be 

a month of peace, empowerment and new 

beginnings. 

It seems fitting, then, that the last 

Thursday in September is World Maritime 

Day. Without shipping, without a healthy 

maritime environment, life would be very 

different. Although WMD officially falls 

on September 26 this year, WMD is often 

celebrated throughout the year. As you 

likely already know, the theme of WMD 

is “Empowering Women in the Maritime 

Community”. 

The celebrations began on January 1 

and will continue throughout the year. The 

year 2019 is truly a chance to celebrate the 

amazing diversity in the maritime industry, 

and empower women in maritime. 

IT’S ALL ABOUT EMPOWERMENT 

All over the world we are seeing a focus on 

the benefit of diversity, including gender 

diversity, in the maritime environment. 

Over the course of this year you have had 

a chance to learn about the astonishingly 

low percentage of women in the maritime 

industry, and also to meet some of the 

incredible women who are making waves. 

On July 29, the Australian Maritime 

Safety Authority welcomed the IMO 

secretary-general Kitack Lim to Australia, 

providing an opportunity to showcase the 

efforts at the international, regional and 

local level to address the significant gender 

imbalance in our industry. 

The evening event included a series 

of keynote presentations from IMO, 

AMSA and inspirational women in 

the industry. With an opportunity for 

informal discussions, the evening event 

was firmly focused on empowering 

women in maritime. 

In opening the event, AMSA CEO 

Mick Kinley highlighted many issues 

in supporting diversity in the industry, 

stressing that it isn’t just right for social 

justice, it is good for business outcomes. 

Records show that 57 AMSA STCW 

certificates have been issued to female 

masters, with 20 certificates active. 

Looking at the lower levels, there were 

only 14 chief mate certificates and 22 

deck. This highlights the need to do more 

to support those in the system, and also 

the need to address the decline in seafarers 

and skill set by encouraging women, and 

men, into the industry. 

Within AMSA itself, Mr. Kinley noted 

that there had been a 39% increase in 

female employees since 2014 throughout 

all areas of AMSA, with women now 

comprising 22% of senior managers. 

THE INTERNATIONAL LEVEL 

Mr Lim arrived in Australia after a tour 

of the South Pacific states, where he met 

with the Pacific Women in Maritime 

organisations. While highlighting the 

challenges experienced by the region, he 

conveyed his appreciation to Australia 

for the strong support they provide in 

the region, and in the global maritime 

community. 

A particularly memorable comment from 

his speech noted that the work of the IMO 

continues to focus on “the wellbeing of the 

planet and all human kind”. With the rapid 

developments in the industry, including 

the radical new trends of digitisation, he 

highlighted the need to adopt solutions 

that are effective within the maritime 

industry, taking the human element into 

consideration. 

The human element includes the support 

of diversity – and the empowerment of 

[l-r] Mick Kinley, AMSA; Teresa Lloyd, MIAL; Kitack Lim, IMO; Alison Cusack, 

WISTA; and Jeanine Drummond, Port Authority of NSW 

[l-r] Meghan Arnott, Jeanine Drummond, Jillian Carson-Jackson 

and Holly Saunders 

AMSA 


thedcn.com.au

women in maritime. Mr Lim expressed 

amazement at the overwhelming support 

for the social media campaign around 

the WMD theme, and the initiatives that 

are being taken by the member states of 

the IMO. This includes preparing an IMO 

resolution to continue the promotion of 

women in the maritime industry, and the 

development of a network to co-ordinate 

the activity, after 2019 when the WMD 

theme is gone – but not forgotten. 

IF YOU CAN’T SEE IT, YOU CAN’T BE IT 

At the AMSA event, keynote presentations 

were made by influential women in the 

maritime industry including Teresa Lloyd, 

Alison Cusack and Jeanine Drummond. 

The overwhelming feeling from these 

presentations was “if you can’t see it, you 

can’t be it”. Representing different aspects 

of the industry, these three women all 

highlighted concerns over the slow rate of 

change, with many women in the industry 

today continuing to experience the same 

issues, and tell the same stories, as those 

experienced decades ago. 

Women in a male-dominated 

environment often feel pressured to fit in, 

to adapt – yet it is their diverse viewpoints 

that are critical to support a vibrant 

maritime industry. 

So how can we work to see actual gains? 

To achieve diversity and empowerment there 

is a need for strong support at all levels, 

afloat and ashore. Stressing the positive, 

yes, but recognising the negative; putting 

in place opportunities for women within 

the industry and realising that there will 

be imperfect progress, but progress none 

the less. Small steps, such as calling out 

inappropriate behaviour; recognising and 

encouraging efforts; thinking consciously 

about each small effort that we can take, 

every day, towards gender equality. 

This also includes increasing the visibility 

of women in maritime, through initiatives 

such as the Nautical Institute South East 

Australia Branch #womeninmaritime 

365 day challenge. With visibility comes 

responsibility, the need to provide mentoring 

and networking opportunities, leveraging 

on the work being done in so many discrete 

areas of the industry and providing a steady, 

co-ordinated approach to improving diversity. 

In the words of Ms Drummond, “We 

need to see a future when there is no longer 

a female seafarer, there are just seafarers”. 

Our challenge is how quickly we can 

achieve that? 

THE FEARLESS PURSUIT OF IMPERFECT PROGRESS 

The “Fearless pursuit of imperfect progress” was the title of Alison Cusack’s 

address at the event with the UN secretary-general Kitack Lim to celebrate 

women in maritime. 

Ms Cusack, who is national president of WISTA and manages her own law firm, 

challenged the audience not to fall for the “utopian fallacy that for a solution to 

work it must address all issues at once and be perfect”. 

“Instead, look to how the IMO approaches difficult issues and how they work 

to change mindsets as our pathway to success,” she says. 

She reflected that it took the industry just one year, nine months and six 

days from the sinking of the RMS Titanic to sign the first version of the SOLAS 

Convention. “To conceive it, draft it, discuss it, agree it and sign it.” 

“Has it stayed the same over the last one hundred and five years? Of course 

not! It is updated and adapted as and when needed,” Ms Cusack says. 

She believes we should be fearless in our pursuit of this “imperfect progress” 

when it comes to gender equality. 

“In the shipping industry we are capable of achieving difficult tasks and having 

difficult conversations; it’s in our DNA,” she says. 

She cited several examples of “difficult things” including cutting a stricken ship 

in half, putting it onto another ship, sailing it halfway around the world in order 

to put it together again. 

She also suggested that it may have been a difficult conversation for whoever 

called carmaker Porsche after the fire and sinking of the Grande America to let 

them know that their last production run of the 911 GT2 was in fact not going to 

make it to its destination but rather was lying on the ocean floor. 

“Change does not happen in one speech, one evening, one year of a theme, but 

rather through small consistent effort,” Ms Cusack says. 

“The challenge I issue to you all is this: for the next one year, nine months 

and six days, do one small thing daily towards gender equality, towards that 

imperfect progress.” 

She says this might include asking who isn’t in the room for important 

conversations and then inviting them or checking who isn’t on the list for a 

promotion but should be. 

“When someone makes an inappropriate comment, don’t let ‘it’s just a joke’ be 

an excuse,” Ms Cusack says. 

“Be brave and ask the women in your office what is one small change you can 

make to move towards gender equality.” 

She suggested at the end of that one year, nine months and six days, we 

should all report back to her. 


GLOBAL TRADE & MARKETS 

Update on international markets 

and trade wars 

Paul Bettany takes a combative look at the state of international markets 

and the factors driving them 

THE US/CHINA TRADE WAR HAS 

prospects. It is in reaction to these threats 

continued and has driven the fear scale 

that central banks are reverting back to 

north, hitting global growth prospects. 

‘dovish’ monetary policy. The reversal 

Central banks have anticipated the hit to 

in monetary policy by the Fed and other 

their own economic growth prospects and 

Central Banks have crashed global bond 

acted accordingly. The RBA has been the 

yields and sparked a huge rally in equities 

leader of the pack and was quick off the 

and investment. 

mark, after the re-election of the Liberal/ 

National Coalition government. They 

CENTRAL BANK ACTION 

cut a record twice in two months in an 

The Federal Reserve halted their 

effort to stimulate flagging economic 

quantitative tightening policy and resumed 

growth. This, however, has undermined 

neutrality calling for ‘patience’. The Fed 

the currency, although rival central bank 

is expected to cut rates over the next cycle 

conformity to loose monetary policy, has 

in reaction to global growth threats and 

mitigated the losses. 

under huge pressure from the White House. 

President Trump is a major opponent of 

US/CHINA TRADE WARS 

tight monetary policy and has waged a 

The US/China trade war has continued 

Twitter war against the Federal Reserve, 

unabated, although there have been 

their policy and Chairman Powell. 

Paul Bettany, director, Collinson & Co 

interruptions in the negotiation process. 

Central banks around the world are 

The Chinese and the US have been involved 

expected to employ monetary stimulus, 

AUSTRALIAN SCENARIO 

in intense and comprehensive negotiations 

over the next cycle, which will stoke the 

The surprising re-election of the Liberal/ 

to arrive at a broad-based, inclusive 

fires in a new emerging currency war. The 

National Coalition brought some certainty 

agreement. The negotiations were close to a 

rivalry between central banks and their 

back to the economy and provided a boost 

conclusion until it hit a big problem, Huawei, 

actions will drive global currencies. The 

to a challenged housing market. The seas 

which seemingly crashed the process. 

US domestic economy remains strong, so 

may be calm, but the economy is under 

President Trump warned western nations 

fundamentals probably point to a rising US 

serious threat, with global growth concerns 

not to select Huawei as a 5G provider as it 

Dollar, despite rate cuts. The British Pound 

hitting the trade exposed economy. 

is a subsidiary of the Chinese Communist 

may suffer some short-term volatility, but 

The ongoing US/China trade war is 

Party, giving the Chinese access to all the 

the ascension of Boris Johnson and the 

upsetting the supply chain and beginning 

recipient country telecommunications. This 

prospect of more certainty, should enhance 

to impact the domestic economy. Economic 

is a security issue and Trump imposed a 

its prospects. 

growth is sluggish and is manifesting 

technical supply embargo on Huawei. The 

itself in the form of economic data. The 

Chinese reacted immediately and called off 

EUROPEAN UNION 

RBA has been quick to act. This should 

negotiations. This derailed the talks and 

The European Central Bank has little 

encourage investment and hopefully stave 

it was not until the Tokyo G20 meeting 

option but to stimulate the European 

off recessionary pressures. It does not assist 

that they resumed. Presidents Trump and 

economy with accommodating monetary 

the Australian Dollar, with the only saviour 

Xi attended the meeting and an interim 

policy, but interest rates are already at 

possibly coming from the actions of the 

agreement was reached. China agreed to 

virtually zero, thus limiting their influence. 

Federal Reserve. 

increase US agricultural imports, while the 

They can increase liquidity, but this will 

To avoid currency volatility, exposed 

US agreed to partially lift the embargo on 

probably end up in a state of flux if we look 

companies need to employ orthodox risk 

Huawei and suspend any tariff increases 

at the Japanese experiment for a historical 

management techniques, to ensure pricing 

until a deal is reached. 

lesson. The currency will remain under 

certainty. Currency risks can be managed 

Trade negotiations are ongoing, but are 

highly complex and comprehensive. The 

impact of these trade wars are far reaching 

and threaten global trade and growth 

pressure and any extended trade war may 

expand to a US/EU trade impasse, which 

could seriously threaten the very existence 

of the union. 

effectively, by accurately forecasting 

foreign currency cash flows and mitigating 

the risks, with effective and available 

management tools. 

Collinson & Co 


thedcn.com.au


New industry group 

to set digital standards 

Peter Creeden writes about the significance of the establishment 

of the Digital Container Shipping Alliance 

David Sexton 

IN THE PAST FEW MONTHS, THE 

shipping industry has taken a step forward 

towards meeting the expectations of the 

digital world by establishing a neutral and 

non-profit association whose aim is to set 

industry wide standards. Hopefully, this is 

the first step towards getting all transport 

sectors to have a common focus in sharing 

and improving data standards. 

Four of the world’s largest container 

lines - Maersk, Hapag-Lloyd, Mediterranean 

Shipping Co and Ocean Network Express 

- have joined forces to establish digital 

standards. This new association is called 

Digital Container Shipping Alliance 

[www.dcsa.org] and will be based in the 

Netherlands. The DCSA’s focus will be on 

improving standardisation, digitalisation 

and interoperability. The association’s aim 

will be to publish and make available all 

standards to external parties. The DCSA 

also will be open to all ocean carriers. 

The appointment of Thomas Bagge, ex 

Maersk, as the CEO of the DCSA is a good 

start. Having a dedicated organisation 

focused on driving common standards 

will go a long way towards overcoming the 

lack of a common foundation for technical 

interfaces and data interoperability. This 

foundation is needed to support emerging 

technologies such as blockchain and the 

Internet of Things. The DCSA will not 

develop or operate any digital platform 

of its own. This will allow for effective 

collaboration with the wider supply chain. 

On 14 May, 2019, the DCSA announced 

in a press release that Thomas Bagge was 

successful in getting CMA CGM onboard 

as a founding member. In addition, DCSA 

also announced that Evengreen, Hyundai 

Merchant Marine, Yang Ming and Zim 

joined as members. 

NOT A NEW IDEA 

The DCSA isn’t a new idea. The first 

association that tried to establish 

standards for the shipping industry was the 

International Transport Implementation 

Guidelines Group. This group of specialised 

individuals, mostly IT experts, engaged 

in the development and implementation 

of UN/EDIFACT standard messages for 

electronic trading in the transport industry. 

This group was established in 1995 and 

focuses on ensuring there is a standard in 

Electronic Data interchange messages. The 

establishment of www.smdg.org and the 

BAPLIE message standard has been a great 

accomplishment for the industry, which 

still refers to these standards today. 

Unfortunately, SMDG only defined the 

messaging types and didn’t address the 

The industry needs to continue to evolve and adapt, so 

it can find common ground with the wider supply chain. 

underlying issues about data quality and 

data ownership. This has led each industry 

player to establish individual connections, 

or ‘one to one’ connections, where both 

parties must agree on each data sets. This 

lengthy and subjective process has been a 

hindrance to innovation and has resulted 

in poor data quality throughout the supply 

chain. Finding a path to support digital 

platforms that support a ‘one to many’ 

connection will be an important step 

forward for the industry and how it interacts 

with the wider supply chain community. 

THE CHALLENGES 

The challenge facing shipping lines is not 

just poor data quality. The biggest challenge 

facing shipping lines is the wider supply 

chain industry is moving quickly ahead 

in setting their own digital standards and 

pursuing true supply chain transparency. 

A great example of the wider supply chain 

industry collaboration was the GS1 led APEC 

report about ‘Export Supply Chain Visibility 

Project’. This project focused on establishing 

the digital connection between a product, a 

pallet, and a container and how to link the 

data sets across all industry players in the 

supply chain. The responsibility of DCSA 

should be focused on eliminating the data 

silos separating the transport sectors and to 

support the development of automation. 

In a recent report by McKinsey & 

Company, ‘The future of automated ports’, 

it was found that data-infrastructure 

applications have huge potential. The 

current limitations of data quality and lack 

of data analytics are the biggest constraints 

on automated terminals. This is primarily 

because the data analytics aren’t strong 

enough to run automated ports efficiently. 

The data analytics were hindered by the 

lack of data quality and missing agreed 

upon standards. Having efficient ports 

eliminates a big bottleneck and allows for 

efficient vessels, trucks, and trains. 

While the creation of the DCSA is a good 

start for the shipping industry towards 

taking a leading role in standardising data, 

it is just the beginning. The industry needs 

to continue to evolve and adapt so that it 

can find common ground with the wider 

supply chain and create a foundation to 

harmonise systems. This is how digital 

platforms of the future will be created 

and how the shipping industry can retain 

relevance in a fast-changing digital world. 

This is an updated version of an article that was 

first published in Shipping Australia magazine. 

Peter Creeden, 

director, MPC 

International 


LINER TRADES TO EUROPE 

And then 

there were 

two 

Direct services between 

Australia and Europe 

have been on the 

threatened species list 

for years and this month 

the number of survivors 

shrinks from three to 

two, despite reasonably 

strong volume growth. 

Dale Crisp reports. 

I 

told you so.” 

Each year as the ANZ-Europe liner trade feature is being compiled DCN checks with a 

veteran waterfront watcher for a dispassionate view of the state of play. 

Reliably, for the last six years – or maybe more – our weathervane has confidently predicted 

the demise of one or more of the direct services, on the basis that such expensive-tomaintain, 

long-legged, thin-profit services are ever-vulnerable to competition from transhipment 

providers and hard-headed internal accountants. 

But despite a few wobbles over this time the status quo has been maintained: two direct services 

via Suez, and one via Panama. 

Until now. Finally our pundit has reason to crow, with the end of September seeing Hapag- 

Lloyd’s withdrawal from the EAX service (jointly operated with CMA CGM, who label it NEMO) 

in favour of relay over south-east Asian hubs. 

Rumours that changes were afoot began circulating early this year but it was the first week of 

March when MSC – rather than CMA CGM or Hapag-Lloyd (HLL) - broke cover. 

BlackMac 


thedcn.com.au

Ship in Miraflores Locks, Panama Canal 



We must have the double- and tripledip… 

These services would not survive 

in either direction without it. 

Port of Hamburg 

Dear Customers, 

MSC is upgrading its Australia Express Service between Europe/ 

Indian Ocean and Australia. 

Starting during the month of September 2019, a new partnership 

will be implemented between MSC and CMA CGM to operate a joint 

service linking the North West Continent and the Mediterranean to 

the Indian Ocean and Australia on the southbound leg and Australia to 

Southeast Asia, India Subcontinent and Europe on the northbound leg. 

The Australia Express service will operate with a fleet of 14 ships of 

9500 TEU capacity, of which 9 will be provided by MSC.The rotation 

will be: London Gateway – Rotterdam −Hamburg −Antwerp − Le 

Havre – Fos-sur-mer −La Spezia – Genoa − Gioia Tauro − Pointe des 

Galets – Port Louis – Sydney – Melbourne – Adelaide – Fremantle 

−Singapore – Colombo – Valencia − Sines − London Gateway.The 

Australia Express will continue to provide a premium direct service 

between Europe and Australia as well as fast transit times from 

Australia and South India to Europe. 

Soon after, CMA CGM offered its version: 

The CMA CGM Group, a worldwide leading shipping group, 

reinforces its Europe/Indian Ocean & Australia offering by 

upgrading its NEMO service, which liaises North Europe and the 

Mediterranean to the Indian Ocean Islands and Australia on the 

southbound leg and Australia to southeast Asia and Europe on the 

northbound leg. 

This upgraded service will be effective in September 2019 (subject to 

applicable filing requirements) and operated in partnership with MSC. 

This new offer will feature an upgraded fleet and provide expanded 

port coverage through a better utilisation of hubs offering dedicated 

feeder services. The CMA CGM Group will thereby offer a premium, 

direct service between Europe and Australia as well as faster transittime 

from Australia, south-east Asia and south-east India to Europe. 

With this unique offer, CMA CGM pursues its ambition to 

strengthen its direct service from Europe to the Indian Ocean Islands 

and Australia. 

CMA CGM confirmed the port rotation but did not specify 

vessel size, and DCN understands that initially, at least, it’s 

unlikely to match MSC’s 9500 TEU deployment – but then 

again, on past history, MSC itself will offer a range of vessels not 

necessarily of matching capacity. 

Subsequently, Hapag-Lloyd released the following, headed 

“Europe – Australia & Indian Ocean Islands - Restructured and 

enhanced Service Network in Q3, 2019”: 

Hapag-Lloyd is going to improve its Australia product by introducing 

a new competitive and reliable service concept via Singapore, 

providing faster transit times to all major ports in Australia. 

The new product will offer an increased sailing frequency to/from 

Australian ports, with more connections and shipping options in 

both directions. 

This enhanced network will start with the first southbound sailing 

from Europe during 3rd Quarter 2019 and will gradually replace the 

existing EAX service. 

At the same time, we will also provide new service coverage for Pointe 

Des Galets, La Reunion and adjacent islands. Further service details 

will be communicated in due course. 

And so for the Australia to Europe via Suez route this month 

(September) two becomes one. 

NO REAL CAPACITY LOST 

Depending on who one listens to, HLL’s exit from the direct service 

was either its own initiative or a consequence of an unwillingness 

to participate in others’ upgrade plans. 

“HLL made it known they did not necessarily have the appetite 

to move to larger vessels, as CMA wanted,” one source says, while 

another avers the German operator “made it abundantly clear they 

no longer wanted a direct service to Australia and would transition 

entirely to transhipment”. Just who gave notice to whom about the 

ending of the NEMO/EAX service, and when, is also unclear. 

But no matter: whatever trigger the outcome is a new 

partnership between two of the world’s top four carriers that 

guarantees the continuation of a direct-via-Suez link, maintains 

Jonas Weinitschke 


thedcn.com.au

BIG JUST GOT BIGGER 

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almost all of the previous port calls offered and, thanks to the 

increase in size from NEMO/EAX’s 6300-7300 TEU and AES’s 

6250-7500 TEU to the mooted 9500 TEU, little real capacity will 

be lost, especially given the reality of how much of this capacity 

actually serves the Europe trade anyway. 

One coincidental change, a product of internal group 

re-organisation of brands rather than service rationalisation, is that 

ANL will no longer participate (obtaining slots from parent CMA 

CGM) in the Europe trade. However, the ANL and CMA CGM sales 

and agency teams are being integrated in Australia and in Europe, 

so customer relationships will be maintained, the carriers say. 

MULTI-SECTOR PRODUCTS 

According to the UK-based Container Trade Statistics, which draws 

its data from information furnished by select carriers, Australasian 

exports to Europe grew by a strong 5.5% to 52,100 TEU in the first 

quarter of 2019, while imports rose by 2.5% to 173,800 TEU. Freight 

rates in both directions were, at best, subdued in the first quarter of 

2019. (Q2 2019 figures had not been released at time of writing). 

For calendar 2018, exports rose an impressive 8.3% over 2017, 

to 199,300 TEU, according to CTS, while imports jumped 6.5% 

to 735,900 TEU. Northbound and southbound rates lifted, but 

patchily and insubstantially. 

CTS figures come with the usual asterisk: “it should be noted 

that CTS statistics may be substantially revised afterwards, 

when new information and corrections are processed”, and the 

underscore that carriers of this end of Australasian trades often 

find poor correlation with the figures compiled in the northern 

hemisphere. 

CTS figures – and those collected by others, such as ports - do 

not distinguish between containers carried by direct services and 

those transiting via relay. But it is indisputable that the trade is 

severely imbalanced: the stats above indicate southbound volumes 

are more than three times northbound, and direct service carriers 

say it’s more like five times for them. 

Which all goes to explain an essential characteristic of the ANZ- 

Some think it’s [IMO2020] the Y2K of 

shipping, others think it will leave some 

lines – especially the smaller ones – 

hanging by a thread. 

Europe-ANZ direct services, one which we repeat every year but 

which bears re-iteration: these are not really direct services. They 

are multi-sector products that, while enabling shippers to have the 

goods remain on board for the entire journey (excepting changed 

operational circumstances) the ships themselves are servicing 

multiple markets. 

Thus, the CMA CGM/Marfeet PAD/NASP service is really made 

up of the following legs: southbound, NW Europe/UK-East Coast 

North America (ie trans-Atlantic), NW Europe/UK-South Pacific, 

NW Europe/UK-ANZ, ECNA-South Pacific, ECNA-ANZ, ANZ- 

ECNA, ANZ-NW Europe/UK, ECNA-NW Europe UK. And you 

could probably throw in links over Caribbean/Panama hubs to 

Central and South American markets. 

The current Suez services, CMA CGM/Hapag-Lloyd NEMO/ 

EAX and MSC Australia Express Service, can be similarly sectioned, 

into Australia-SE Asia, Australia-Indian Sub-Continent, Australia- 

Middle East, Australia-Mediterranean and Australia-NW Europe/ 

UK, with supplementary roles played by intermediate combinations 

of which ISC-Med/Europe is the most important. Southbound, 

routes follow a NW Europe/UK, Mediterranean, Indian Ocean 

islands, Australia format – again with intermediate legs of varying 

importance. 

The poly-market nature of these services is, as carriers 

regularly remind, essential to their viability (and continuation): 

“We must have the double- and triple-dip,” one executive says. 

“These services would not survive in either direction 

without it.” 


thedcn.com.au

Container ships at the Port of Rotterdam 

Anna Krasnopeeva 

SUBSTITUTIONS AND REPLACEMENTS 

It is instructive, then to look at Hapag-Lloyd’s substitution plans 

when EAX abandons the ‘direct’ structure. From Australian 

exporters’ and importers’ perspective the important news is that – 

as per HLL’s March 9 advisory - the carrier is going to provide what 

it characterises as a faster, more frequent service. 

Curiously, at the time of writing HLL had released no further 

detail of the replacement product. As it already has an Australia-SE 

Asia service, in the form of ASAL (now a straight partnership 

between HLL/UASC and OOCL/COSCO SL), increased sailing 

frequency would require duplication of that operation or, more 

likely, a slot deal with another service. It is assumed that just such a 

deal with Triple A members OOCL/COSCO SL underpins recentlyannounced 

improvements to the two Triple A SEA strings, with the 

(Bight) loop re-tonnaged with larger and one additional ship and 

the (Torres) loop confined to the East Coast and re-configured to 

offer fast Singapore-Melbourne transits and reversed port order. 

In conjunction with the end of the current EAX Europe- 

Australia-Europe format service and in-part to cover other legs, 

HLL has launched new products. 

At the beginning of October HLL will inaugurate its Middle 

East-India-Africa Express service, jointly operated with Japan’s (and 

fellow THE Alliance member) ONE, which will also provide Indian 

Ocean coverage via relay over Jebel Ali and Colombo. 

ISC-Europe will now be served by a new weekly East India- 

Europe Express, mounted in conjunction with COSCO SL, ONE 

and Yang Ming, using 9 x 500 TEU vessels, commencing at the end 

of October. Many ports of call are those of EAX. Thus a service of 

many parts is being replaced by many services to the same parts. 

The remaining direct Australia-Europe via Suez players say 

simply the only hope for longevity is scale. 

“Bigger ships mean huge savings in slot costs,” a trade manager 

insists, “and that means a much higher chance of viability, and that 

means a logical route to sustainability for customers. 

“It also means a much softer blow when IMO 2020 [low sulphur 

fuel/reduced emissions regulations] comes in. 

“We’ve got to do everything we can to minimise the impact – 

which we really don’t yet know the extent of, for us or shippers, 

but we know fuel costs are going up sharply. 

“We need to spread those costs over more containers [on the 

bigger ships].” 

What of the diminution of competition, and a shrinking of 

shipper options? 

“You’ve got to be joking,” a forwarder suggests. “MSC and CMA 

are always at each other’s throats and I can’t see that changing just 

because they’re on the same ships. 

“As for choice, there are always half-a-dozen relay operators in 

the market and now Hapag is joining them. We already see them 

very active in Europe, offering a lot of rates and trying to retain as 

much business as possible. 

“There’s always space on the east-west backhaul ships into Asia 

and if volumes fall off on the headhaul leg, like has happened this 

year, the carriers are down here knocking on doors looking for 

whatever they can get.” 

FUTURE OF PAD/NASP 

So with the Suez services consolidating, what of PAD/NASP? 

On the back of a three-year contract with NZ kiwifruit exporter 

Zespri PAD/NASP was upgraded from fortnightly to weekly 

frequency in early 2018, taking the number of ships employed to 

13 in the 2500-2800 TEU range. 

Round voyage time was shortened from 98 to 91 days, somewhat 

of a challenge with at least 18 port calls across 10 countries (this 

proved unachievable and a couple of port calls were dropped or 

reverted to fortnightly). 

However, despite strong endorsement of the improved frequency 

by shippers and carrier representatives in last year’s DCN review 

it quickly became apparent that the cost of the weekly operation 

couldn’t be sustained by available volumes, year round, and after a 

couple of extra months propped up by unexpectedly high European 

demand for kiwifruit (and a strong harvest) PAD/NASP reverted to 

fortnightly from October 2018 to February 2019. 



Shipping and container terminal, 

at the port of Genoa, Italy 

For 2019-20 the seasonal pattern will be repeated, with the last 

weekly southbound sailing already well on its way to Australia and the 

last northbound due to be that of Seatrade Blue from Melbourne on 

October 1. No date has been advised for resumption, at time of writing. 

However, the number of blanked sailings during the 2019 peak 

export (northbound/eastbound) season has again raised questions 

over the long-term viability of the weekly service, notwithstanding 

the excuse given of a shortage of suitable tonnage. 

Sources say the future of the entire service is again being 

revisited in Marseilles with those impending IMO 2020 regulations 

adding to the cost burden of operating a total of 13 small 

containerships over a very long rotation. 

The seasonal fluctuations in volume are “challenging”, to say 

the least, and as has been noted in the last few years’ reviews PAD/ 

NASP has become increasingly NZ export-focused, such that there 

have been frequent suggestions the Australian East Coast port 

The point is that whatever shippers pay 

today, they must be prepared to pay 

much more or everything will fall apart. 

calls at Brisbane, Sydney and Melbourne could be axed, especially 

given similar transit times to/from Europe available via Suez. 

(This, however, ignores the importance of the ECNA connections.) 

Ructions at the Australian stevedore of choice, DPWA, haven’t 

helped, either. 

“NZ-driven arrangements for the service have not necessarily 

been to Australian preferences,” an insider frankly offers.” It’s 

understandable given the importance of making Zespri’s crucial 

dates northbound but if there are any delays at all southbound out 

of Europe, ECNA or the Pacific the inevitable casualty is at least one 

Aussie port call.” 

The other consideration said to be threatening PAD/NASP’s 

viability is the gradual erosion of French Pacific territories’ loyalty 

to European sourcing of goods, in favour of closer and cheaper 

Asian products: what was the southbound service’s golden goose is 

rapidly turning into Peking duck. 

Nevertheless, “everything is always under review in Marseilles”, 

one insider suggests, dismissing talk of any immediate cessation: 

PAD/NASP is certain to continue until the end of the Zespri 

contract, which has another year to run, and the same alternate 

weekly/fortnightly sequence will continue, to cope with the Kiwi 

export seasons. 

THE Y2K OF SHIPPING? 

Alas, the uncertainties of the impact of IMO 2020 loom large here, 

too, and in the words of one executive “underline the fragility of 

the service”. 

“There are widely divergent views,” he says. “Some think it’s the 

Y2K of shipping, others think it will leave some lines – especially 

the smaller ones – hanging by a thread. 

“The cost differential between different carriers will be quite 

wide, due to the relative [fuel] buying power of large versus small. 

Smaller carriers may not be able to fully pass on the additional 

costs thanks to the big guys’ market power. 

“And it’s still not entirely clear what the cost-recovery 

mechanisms will be, and how they’ll be applied. Included in BAFs 

or separate? Prospective or retrospective? There are the leaders 

who’ve already tried to set the agenda but there’s not really 

commonality there, anyway. And then there will be the followers, 

who will have to be very fleet of foot or they’ll be left with very 

little ability to cost recover.” 

Another senior Europe trade carrier executive expresses bigger 

picture concerns: “People in general are pointing at the shipping 

industry as polluters and do not understand that as long as we burn 

the residues left over from producing gasoline, they can drive their 

cars. Soon they will discover the equation may turn against them. 

“The point is that whatever shippers pay today, they must be prepared 

to pay much more or everything will fall apart. They will have to pay the 

bill or relinquish their historic freedom to buy from anywhere. 

“Something has to give.” 

Luca Rei 


thedcn.com.au

Keeping the ports of NSW 

safe, secure and 

open to the world 

Sydney Harbour | Port Botany | Newcastle Harbour | Port Kembla | Port of Eden | Port of Yamba 

www.portauthoritynsw.com.au 

Follow us @portauthoritynsw 

Port Authority cutter crew 

Port Botany, New South Wales

CUSTOMS BROKING & FREIGHT FORWARDING 

Changing times 

The roles of freight forwarders and customs brokers are changing in line with 

increased digitisation and different ways of entering the sector, writes David Sexton 


thedcn.com.au

The role of the freight forwarder is ever changing. New 

technologies and innovations are influencing the ways that 

business is done. For some insights into this sector, Daily 

Cargo News spoke with the peak body Down Under the 

Australian Federation of International Forwarders. 

In a conversation with DCN, AFIF chief executive Brian Lovell 

reflects a little upon the role of the freight forwarder. 

“The role of the forwarder is really, according to the world body 

FIATA, as the architect of the transport movement. They sit in the 

middle but they have to understand carrier movements in both 

shipping and air freight,” Mr Lovell says. 

“They [forwarders] have to understand whether it is best to 

move the goods by air or sea, something the customer doesn’t 

necessarily know. They have to know about the world freight 

networks. Geography is really important but also what goes where, 

how and when. They need to be able to plan and help the shipping 

department of an exporter plan the movement of freight.” 

Mr Lovell notes also the need to understand how to facilitate the 

movement of shipments classified as ‘dangerous goods’. 

“Freight forwarders have to have a great understanding of 

documentation, how you prepare it, customs requirements, carrier 

requirements and government regulated areas such as biosecurity,” 

he says. 

“So it is about understanding geography, understanding world 

trade systems, understanding carriers and rating structures 

and documentary processes for both transport and government 

requirements.” 

OPPORTUNITIES AND THREATS 

There are a variety of issues impacting upon the role of the 

forwarder. These include geopolitical tensions, trade wars and the 

Shippers and consignees that 

utilise freight forwarders are now 

putting a lot more pressure on... 

to be able to provide that visibility 

in the supply chain. 

Stuart McFarlane, AFIF 

SENSE OF COMMUNITY CRUCIAL 

FOR CUSTOMS BROKERS 

Customs Brokers and Forwarders Council of Australia chief 

executive Paul Damkjaer believes there is a bright future for 

those interested in a career in customs broking, 

But Mr Damkjaer also believes this important sector has 

some challenges. And he argues the sector needs to retain a 

sense of community, even while ensuring there is no hint of 

anti-competitive behaviour. 

He notes changes in entry levels, with some of the junior 

roles having disappeared owing to the advent of electronic 

and digital technology. 

“We lost the entrance level into customs broking, that was 

the ‘runner’, the customs house clerk where you’d clear all 

the bills of lading and go get the mail and the milk,” he says. 

“So all the bills of lading are now cleared electronically. 

“Then you’ve got the next stage that we used to do which 

used to be the compiler.” 

Such tasks are now often off-shored in such places as 

Malaysia, the Philippines, China and India. 

“Even small to large businesses are doing it and there 

are different opinions on whether to keep it in Australia,” 

he says. 

Mr Damkjaer says in days gone by, one would become a 

compiler and then a classifier and “then you’re almost ready 

to go for your licence”. 

“In our customs broking course we have 20% to 25% of 

students not employed in the industry,” he says. 

“Unfortunately there are not the positions for a junior. 

That in itself is [a concern].” 

He notes also the trend towards older brokers. 

“Some 190 brokers gave in their licence in July last year 

(the renewal point) and the average age for a practising 

broker is 54.9,” he says. 

“It is a bit like the truckies. It is also important to retain 

that sense of camaraderie and that it is what we have tried to 

foster at the CBFCA. 

“We know there are anti-competition laws and we 

state that but if we can get people to talk, we don’t 

talk price, but we want to talk about issues with the 

regulatory departments [Home Affairs and Department 

of Agriculture). This is why we have the regional [CBFCA] 

gatherings in each state.” 

Gyn9037; David Sexton; Smith Channon; Ian Ackerman; 

Stuart McFarlane, 

AFIF 

Martin Bourn, 

Smith Channon & Co 

Brian Lovell, 

AFIF 

Paul Damkjaer, 

CBFCA 



freedom of shipping in such places as the Middle East and South 

China Sea. 

But as well as these grander themes, the traditional forwarder 

has had to evolve in terms of the transmission of information. 

It’s a theme taken up by AFIF business affairs manager Stuart 

McFarlane. 

“Shippers and consignees that utilise freight forwarders are 

now putting a lot more pressure on freight forwarders to be able to 

provide that visibility in the supply chain,” Mr McFarlane says. 

“Then the disrupters are coming into play; the digitising of the 

freight forwarder service. Those platforms are evolving… 

“I think ‘cracking that nut’ is probably the ultimate aim 

but is also a difficult one because of all the value-added 

services that traditional freight forwarders offer. Things like 

coordinating the customs clearance and labelling or storage or 

distribution of the goods.” 

Mr McFarlane talks of the freight forwarder as being “a fixerupper” 

of many issues. 

“When it moves to larger, box-type freight, there are 

myriad issues in terms of physical transportation but also the 

governmental requirements for the export country,” he says. 

“So I think that it is important, from the traditional freight 

forwarders’ perspective to recognise that the demands for the 

customer and the market are evolving and digitisation is reality.” 

Mr McFarlane talks of the need to be able to provide “greater 

digitisation or a platform for customers to access that provides 

visibility, transparency, reliability and cost effective movement of 

their goods door to door. 

“I understand some of the software providers are doing a lot in 

that space to provide digitisation of the information and the doorto-door 

services that freight forwarders can offer.” 

Mr McFarlane also notes increased merger and acquisition 

activity in the sector, due to tighter margins. 

EMERGENCE OF ONLINE FREIGHT FORWARDERS 

• Online freight forwarders guarantee reliable 

tracking for customers 

• 24/7 check of the status of shipments and 

payments online 

• Relationship with carriers for best pricing and 

securing space 

• Door-to-door fixed pricing per shipment to 

simplify quotations 

• Ease of access to overseas markets 

Source: 

AFIF 

“Scale is important, so bigger companies get bigger and we’ve 

seen that with DSV and Panalpina,” he says. 

“You see the likes of CMA CGM and CEVA now getting together. 

There is quite an evolution occurring.” 

FINAL THOUGHTS 

Summing up, Mr McFarlane says most traditional freight 

forwarders are well aware of what is required in terms of the 

information age and being able to match their service to that. 

He notes other future challenges including the advent of 

blockchain technology, biosecurity issues in dealing with brown 

marmorated stink bugs, giant African snails and whitespot disease 

in prawns. 

“Then there’s the cost of doing business. You’ve got port charges, 

infrastructure levies, Biosecurity Import Levy on the horizon, yet to 

be finally announced,” he says. 

“So there are a lot of things that freight forwarders have to be 

across and have to be nimble about in the big picture.” 

INDUSTRY PERSPECTIVE 

Port Adelaide business Smith Channon & Co is one of the longest-established freight forwarding and 

customs brokerage firms in Australia. In 2014 it was acquired by Autocare Services, a division of LINX 

Cargo Care Group. General manager Martin Bourn had a chat recently with DCN editor David Sexton. 

What are your observations about the modern customs 

broking sector? 

Increasingly we are seeing the majority of licenced brokers 

pooling and operating out of the big cities like Melbourne 

and Sydney and even a few organisations have tariff 

compilers offshore to reduce overall employment costs. 

There are brokers licenced under the Commonwealth even 

lodging entries offshore so technology has significantly 

changed the way freight forwarders and customs 

brokerages operate in Australia. 

You have been in business for a long time? What are some 

of the benefits of that longevity of perspective? 

We’re one of the oldest customs brokerage and freight 

forwarding companies where we continue to operate in 

house from an imports and exports perspective. It allows us 

to maintain an open communication channel and establish 

a positive working relationship with customers, understand 

their imports and on many occasions, we find ourselves 

giving business advice to our clients to achieve efficacy and 

more importantly reducing overall costs and make a win-win 

situation for both parties. 

What are some of the opportunities for customs brokers 

moving forward? 

Being a licenced broker comes with obligations and risks, 

personal integrity and compliance concerns are heavily placed 

against a licenced broker from a government department’s 

perspective and at the same time, brokers are each other’s 

fierce competition. Through industry bodies, we have been 

working with government agencies to collaborate with us 

through industry contacts and allow adequate resources 

together with customs brokers in protecting Australian 

borders. As brokers ourselves, we need to give each other an 

opportunity to set industry standards. For growth to occur, 

there needs to be change in the way licenced brokers are 

promoted or presented in the supply chain. 


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AM for industry legend: 

Kent Heazlett 

Kent Heazlett was recently made a Member of the Order of Australia (AM) for services to customs 

broking. He spoke with DCN editor David Sexton about his background in the industry and thoughts 

on the future. 

When and how did you get into customs broking? 

It was 1968. I started with a company called George Cornish Pty 

Ltd. I got into it because my father was at the time the shipping 

manager of department store David Jones in Sydney. 

What are your early memories? 

Back in those days it was very much paper-based. We had 

to attend Customs House in person to lodge customs entry 

documents and pay customs dues etc so it was a lot of leg 

work. As the industry evolved, the electronic side of things 

came into play. I saw a couple of ads in the newspaper for what 

was called, back then, a customs agent. I applied for two jobs 

and was offered both. I got home and said, ‘what do I do now?’ 

My parents asked, ‘who did you like?’ It was Cornish so that was 

that. I started working at Cornish and lasted about 14 years. I 

left there and later worked for a couple of the multi-nationals 

for 10 years or so. Then later on, with a friend, we bought 

Cornish in 1989. We held it for 25 years and then sold it in 2014. 

What was your first task? 

The first task I was given was to do what was called ‘a survey’ 

down at the wharves in Sydney. It was an importer of South 

American multi-coloured woollen cardigans. I went to the 

wharf and spoke to the fellows who looked after the damaged 

cargo, I went into what was called the ‘dead house’. I saw this 

guy in there wearing one of the cardigans (laughs). It was fairly 

obvious where they were damaged, probably here in Australia. 

With containerisation, all of those issues of damage and loss 

largely became a thing of the past. 

So when did the electronic revolution take place? 

The first electronic system that was introduced was a thing 

called COMPILE (late 1970s, early 1980s). That was the first 

electronic system for preparing customs entries. Customs 

entries probably took three or four days back then to be 

processed by the department. Today it’s like 30 seconds. 

You have a long connection with air cargo, what are some 

early memories? 

When I was starting out it was very early days of air cargo. The 

air cargo industry was going in Sydney. There was a block of 

buildings no longer than 100 yards outside the airport and that 

was it for the air freight industry. Nowadays you’ve got DHL 

and others with hundreds of acres of warehouse space. 

What are some of the other big changes you’ve seen in 

your time in the industry? 

I think the ‘customs’ part of the job has become easier with 

the electronic revolution whereas the focus on biosecurity 

has increased and that’s understandable. Overall the biggest 

changes have been in the area of converting what was a paper 

process into electronic systems. Containerisation was the 

other, it was equally as big a change as the electronic side. 

You were made a Member of the Order of Australia (AM). 

What was that for and what does it mean to you? 

The AM was for significant service to business and 

international trade. Some of my colleagues and peers got 

together – why they picked on me I don’t know (laughs). They 

made the submission unbeknownst to me. It revolved around 

my time working with the industry associations over probably 

a period of 30-something years. Back in the early days I taught 

at TAFE part-time after hours and became involved in the 

Customs Agents Institute which was basically the training side 

of the industry associations. Later I became chairman of the 

NSW Customs Brokers’ Council. 

Is the current working environment a good one for 

customs brokers? 

Good customs brokers are still doing very well. They have 

had to change their service to encompass the provision of 

freight forwarding services and the like. They have done that 

pretty well. But there are still a large number of successful, 

Australian-owned businesses that started out as customs 

brokers alone and then have developed into trucking or 

warehousing businesses as well as international freight 

forwarding. The business has changed a lot but the need 

for a customs broker is certainly still there. An experienced 

customs broker can save a client a hell of a lot of money, not 

just in customs duties. With free trade agreements I think we’ll 

eventually find customs duties are a thing of the past. 



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WESTERN AUSTRALIA 

Taking the long 

A year of quiet but solid growth 

and significant investment has 

put Western Australian ports in 

a strong position to capitalise on 

future prospects, writes Janine Hill 


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view 

Fremantle Port 

Fremantle Port 

New mining projects, capital expenditure, a positive climate 

for exports, increasing demand for imports, and a burgeoning 

cruise market bode well for WA ports over the next two years. 

The teeming Port of Port Hedland in the Pilbara and 

the more modest Port of Geraldton in the mid-west region 

area, although different in size, are leading the charge into the 

next decade. 

Pilbara Ports Authority CEO Roger Johnston says plans that 

have been years in the making across the Pilbara are poised to 

come to fruition. 

At the Port of Port Hedland, work on the channel, tidal 

modelling, new technology and construction of a ground-breaking 

integrated control centre have positioned the PPA’s premier port 

well on the cusp of a “mini boom’ in mining. 

The $120m Channel Risk Optimisation Project which began at 

Port Hedland last year, funded by a special levy on vessels entering 

and leaving the port, is due for completion this month. 

The CROP has provided deeper, larger safety bays and an emergency 

passing lane to the 42-kilometre unidirectional shipping channel and 

has removed high spots in the outer section of the harbour. 

Mr Johnston says the project will allow the port to better cater for 

ships of bigger draft which have become more common during the 

last five to 10 years. 

The project has increased the channel’s capacity by about 40 

tonnes to about 615 tonnes. 

Mr Johnston says the improvements in holding areas and the 

passing lane will allow better risk management and improve safety 

but also allow for gains in efficiency. 

“This allows us to plan better in terms of getting vessels out and 

passing,” he says. 

The gains made through the CROP have been supported by a 

channel marker replacement program which will provide a safe, 

reliable navigation system for vessels entering and departing Port 

Hedland for the next 25 years. 



Port Hedland is the largest port by tonnage in Australia 

In addition to CROP, ground-breaking modelling has increased 

declared depth availability at Port Hedland by 71 centimetres. 

A Dynamic Under Keel Clearance system, which takes a wider look 

at tidal variations, combined with Portable Pilot Units which gives 

pilots the ability to see exactly where they are while transiting, have 

allowed for a minimum clearance of 90 centimetres under vessels. 

Mr Johnston says that extra clearance will make the port more 

attractive to customers given that every 10 centimetres of clearance 

equates to an extra 1200 tonnes of cargo on a large iron ore carrier. 

The infrastructure at the Port of Port Hedland has also been 

boosted by a state-of-the art Integrated Marine Operations Centre 

which will replace the old shipping control tower. 

Mr Johnston says the capital expenditure in the harbour sends a 

signal to landside infrastructure operators that the port is ready to 

do bigger business. 

“They are not going to invest unless it can be proven we have the 

channel capacity. What we are doing is showing that we have the 

capacity to handle much more,” he says. 

Total throughput at the Port of Port Hedland for 2018-19 was 

down 1% year on year to 513.3 million tonnes, slightly better than 

the Port of Dampier, where the total throughput was down 2% year 

on year to 172.9 million tonnes. 

The figures were not helped by Cyclone Veronica, which shut 

down the Port of Port Hedland for 92.5 hours, the Port of Dampier 

for 132 hours, and the Port of Ashburton for 109.5 hours. 

“There was no damage. You get minor damage but nothing very 

serious. But that’s one of the biggest shutdowns I’ve seen in eight 

and a half years,” Mr Johnston says. 

“Right across the Pilbara, the effect was pretty sizeable in terms 

of stopping shipping for 10 or so days.” 

But barring cyclones, things are likely to be on the increase for 

the Pilbara ports, where projects like Fortescue’s Eliwanna mine 

and railway has been launched. The rail is expected to first load of 

iron ore to Port Hedland in December 2020. 

Mr Johnston is reluctant to comment on specific mining 

projects but the PPA is well positioned to take advantage of what he 

described as renewals of mines in the region. 

“I think we’ll start to see right across the board a significant uplift 

in project cargo and associated cargo in the next year or two,” he says. 

MIXED BAG FOR MID WEST 

The 2018-19 financial year was a year of small but hard-won gains 

for the Port of Geraldton where strategies have been put in place for 

significant growth into the future. 

At the Port of Geraldton, the number of a vessel movements rose by 

13 in the last financial year to 414 and total throughput was 15.905m 

tonnes, up on 15.886m tonnes the previous year. 

The port has had to dig deep since the completion of Mount 

Gibson Iron’s mining operations at Mount Gibson, which exported 

from Geraldton. 

Mid West Ports Authority CEO Rochelle Macdonald says a 

breakdown at a mine site also led to a reduction in iron ore trucks 

delivering to the port. 

But Dr Macdonald says an increase in grain shipments offset the 

decrease in iron ore shipments. 

The Port of Geraldton also picked up lower grade cargo, such as 

haematite, which made up for some of the lost business. 

However, in what can be a frustrating game of swings and 

roundabouts, weather events towards the end of the financial year 

obstructed the port’s ability to make up for lost ground. 

DIVERSITY IN PORTS 

Mid West Ports Authority’s CEO Rochelle 

Macdonald does not see her appointment as a 

sign that gender ratios in Australian ports are 

about to change. 

Dr Macdonald says ports are still an “old school 

industry” but the number of women working in 

ports is increasing. 

She says women are winning positions based 

on merit rather than their gender and cites the 

executive team of Mid West Ports as an example. 

“I have myself and three other women and two 

gentlemen. We have more females than males. 

I don’t know of any other panel in Australia that 

has that gender diversity,” she says. 

But Dr Macdonald says diversity is not just 

about numbers. She says businesses 

can best respond to the community 

by having diversity of opinion, 

which requires diversity within the 

workforce. 

Dr Macdonald does not promote 

any particular path for women into the 

industry. 

“In my port, women can do anything. 

If they want to become a sparky, a 

boilermaker, it’s open. It’s all about the 

best person for the job,” she says. 

The Mid West Ports Authority will 

hold an open day later this year to 

promote career opportunities. 

Dr Rochelle Macdonald, CEO, 

Mid West Ports Authority 

Philip Schubert; Mid West Ports Authority 


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Gateway to trade and tourism 

in regional Australia 

Mid West Ports Authority has been overseeing safe, secure and efficient port and 

marine services in the Mid West region since 1969. MWPA manages one of WA’s most 

diverse operations in the Port of Geraldton, facilitating trade to 27 countries and the east 

coast of Australia 

www.midwestports.com.au 

Tel: 08 9964 0520 I PO Box 1856 I 298 Marine Terrace I GERALDTON WA 6531


Geraldton Port 

Operations at the Port of Geraldton can be disrupted by tidal 

surges which force vessels out to sea. 

“Surge did impact on the last few days of the year when you’re 

trying to get out as much as you can,” Dr Macdonald says. 

About 98% of vessels in and out of the Port of Geraldton are 

cargo vessels, with iron ore by far the main commodity, backed up 

by grain, while mineral salts, base metal concentrates, fuel and 

fertiliser also make up a very mixed bag. 

The loss of a major player like MGI, which used Geraldton as 

its main iron ore export base, has prompted the Mid West Ports 

Authority to spread the port’s business roots. 

In 2018-19, iron ore comprised 75% of the Port of Geraldton’s 

trade but diversification is on the agenda. 

“Part of our strategy is to increase other trades so that iron 

ore is 50%. In our first year, we’ve got that down to 69%,” Dr 

Macdonald says. 

“Grain was a huge player in that this year, but we are starting to 

actively look at what other trades we otherwise would have.” 

Mid West Ports is now focused on developing what it calls 

more “outward looking” strategies and a range of collaborative 

arrangements. 

“We’re already seeing a number of new commodities come 

online which will assist in carrying us through.” 

“We’ve got a lot more interest in the port. A lot of organisations 

didn’t know they could import through the Port of Geraldton. 

Things like steel, motors.” 

Dr Macdonald says the port of Geraldton could benefit 

from a number of significant new mining projects under 

development, producing commodities such as rare earth 

minerals, lithium and manganese. 

I think we’ll start to see right across 

the board a significant uplift in project 

cargo and associated cargo in the next 

year or two. 

Roger Johnston, Pilbara Ports Authority 

But Dr Macdonald has her eye on diversifying beyond 

commodities to create a more sustainable future for the town of 

Geraldton as well as its port by growing visits by cruise ships. 

“The impact on the town from a cruise ship is huge. If you get 

2000 people coming into town, having a cup of coffee, looking at 

souvenirs, the town sparks up. It’s really, really good. 

“The economy in Geraldton is quite depressed so the more cruise 

ships we can get, the better. 

“We had eight cruise ships and one submarine last year. This 

year, we should have 10 and we’re trying to pick off as many as we 

can as they go past,” she says. 

Dr Macdonald says Geraldton has much to offer as a destination 

for cruise ships, including the HMAS Sydney Memorial, rated as 

one of the top 10 memorials in Australia and the St Francis Xavier 

Cathedral. 

The area is also an ideal launching pad for tourists wanting 

to visit the Abrolhos Islands, which was recently proclaimed a 

National Park, or seeing some of WA’s much-lauded wildflowers 

and fauna. 

Mid West Port Authority; Illuminaphoto 


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Dr Macdonald says a program using the local knowledge of 

about 32 mostly retired and semi-retired volunteers to promote the 

town has also reaped rewards with visiting cruise ships. 

“Geraldton is regarded as one of the friendliest ports in 

Australia. When the passengers arrive, they are greeted by our 

wonderful volunteers who are absolutely amazing.” 

Dr Macdonald says Geraldton is also a safe berth and able to 

accommodate cruise vessels when conditions are not favourable in 

Broome or Exmouth. 

Geraldton found favour with Azamara Cruises when it turned 

on the works for a vessel that could not visit Broome because of 

tidal restrictions but Dr Macdonald says it could take some time to 

reap the rewards as cruise schedules are set two years in advance. 

But the Kimberley Ports Authority is working hard to ensure the 

Port of Broome loses as few vessels as possible. 

RECYCLING AT FREMANTLE 

A portion of the waste from some cruise ships visiting 

the Port of Fremantle is being diverted from landfill to 

be recycled. 

The recycling initiative began after Fremantle Ports 

research found that all of the waste from cruise ships was 

going to deep burial and none was being recycled. 

The research found the ships were already segregating 

waste but had limited opportunities to offload their 

recyclables once in Australia. 

Fremantle Ports environmental advisor Rebecca James 

says all of the ships’ waste was being buried to comply with 

Australia’s strict biosecurity requirements. 

Fremantle Ports hosted a workshop between the 

Department of Agriculture and Water Resources, resource 

contractor SUEZ, shipping agents and stevedores in a bid to 

come up with a workable solution to sending the recyclables 

for recycling. 

The solution has been to have DAWR officers inspect 

the recyclables to ensure they are clean and that all 

biological material has been removed before they are 

sent for recycling. 

The biological material is now sent to deep burial while 

the recyclables are sent to recycling. 

“Since November 2018, SUEZ has been sending approved 

recyclables from some cruise ships offloading in Fremantle 

to recycling, rather than them ending up in landfill,” Ms 

James says. 

The recycling initiative is carried out with some cruise 

ships but the Fremantle Ports Authority hopes to extend this 

to all cruise ships and is also investigating the recycling of 

waste from other vessels. 

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BIGGER SLICE OF CRUISE MARKET 

A Channel Optimisation Project at Broome aims to improve access 

in time for the 2019 cruise season, so that ships do not have to 

berth at irregular hours due to navigational hazards. 

The WA government chipped in an extra $8m in funding for the 

project when it was realised that more rock needed to be removed 

than originally estimated. 

WA transport minister Rita Saffioti said the funding increase 

was necessary to ensure the best result from the dredging. 

“Providing unrestricted cruise ship access to Broome, along with 

the creation of cheaper airfares from Perth to Broome, is creating 

real opportunities for more people to visit the Kimberley,” she said. 

“Cruise liners are eager to include Broome on their itineraries 

and the local benefits are obvious – Carnival alone contributes 

about $32m in economic benefits by visiting places like Broome, 

Albany, Busselton and Geraldton.” 

The Channel Optimisation Project follows significant upgrades 

and renovations last year at Broome through the $24m Wharf 

Extension of Life Project. 

Like the Kimberly and Mid West Ports Authority, Fremantle 

Ports is also actively chasing a bigger slice of cruise market. 

The Port of Fremantle can accommodate the largest cruise ships 

visiting Australia, as demonstrated when the Ovation of the Seas, 

the fourth largest cruise ship in the world at 1138 feet long, a 

gross tonnage of 168,666 tonnes, and a carrying capacity of 4905 

passengers, visited late last year. 

Fremantle Ports worked with Royal Caribbean to prepare for 

the ship’s visit and the ports authority is continuing to work with 

The economy in Geraldton is quite 

depressed so the more cruise ships we 

can get, the better. 

Dr Rochelle Macdonald, Mid West Ports Authority 

cruise lines and industry bodies to increase the number of cruise 

ship calls. 

The passenger terminal has been revitalised at a cost of $3.25m 

which included a new foyer, decorative glass and new furniture. 

The cruise market is promising given that iron ore exports have 

ceased from Fremantle’s outer harbour, which contributed to a 1% 

decrease in total port trade in 2018-19. 

Other growth areas for Fremantle are imports, up 2.2% in 2018, 

and container trade, which increased by 2.3% or 18,044 TEU in 

2018-19. 

While truck movements at Fremantle have presented a 

community issue, the increased in container trade has not 

had a flow-on effect, possibly mitigated by significant use of 

rail and the container terminal and empty container spaces 

extending operational hours to allow container movements 

outside of peak times. 

Fremantle Ports continues to work towards being Australia’s best 

maritime gateway but clearly, given the investment and initiatives 

underway at WA’s ports, it is not alone. 

PORT HEDLAND INTEGRATED MARINE OPERATIONS CENTRE OPENS 

A new shipping control tower incorporating state-of-the-art 

technology has opened at the Port of Port Hedland. 

The Hedland Tower – Integrated Marine Operations Centre 

replaces the old shipping tower, built in 1968, and has been 

designed to serve the port for the next 50 years. 

Pilbara Ports Authority CEO Roger Johnston says the centre, 

with the level of innovative technology incorporated in it, is 

beyond comparison. 

“There’s nothing like this anywhere in 

the world,” he says. 

The IMOC, funded by the Port 

Improvement Rate, a temporary levy on 

vessels using the port, accommodates 

dredging, management, port security and 

marine pilot facilities. 

The 45.2-metre tower includes 1-tonne 

glass panels for line-of-sight viewing 

of the harbour but it is the technology 

within that sets it apart from other 

similar facilities. 

The IMOC features 23 new CCTV 

cameras, a 6.4-metre radar scanner, and 

three microwave links which mean the 

port’s channel and water zones have 

100% coverage. 

The IMOC has also been equipped 

with a Vessel Traffic Service, a marine 

traffic control system using CCTV, VHR 

radio and automatic identification 

The recently opened Hedland Tower 

replaces the old shipping tower [in 

background] built in 1968 

systems to track vessel movements and ensure safe navigation 

in the port channel and waters. 

Mr Johnston says computer screens in the IMOC would be 

able to split into 18 panels, meaning users could view the entire 

port operations at once. 

The IMOC also has a purpose-built incident control room to 

facilitate a fast and effective response to any emergency. 

The IMOC was officially opened on 31 July and was 

expected to be fully operational by 

the end of August. 

Four rooms in the IMOC have 

been named to reflect the cultural 

and maritime heritage of the area. 

The incident control room will 

be known as the Kariyarra Room, 

named after traditional owners of 

the land where the port is built. 

The operations room will be 

named the Thurla Room, meaning 

birds-eye view. 

One meeting room will be named 

the Stanton Room after Port Hedland 

identity Merv Stanton and another 

will be named the Monks Room in 

honour of the port’s first harbour 

master, Geoff Monks, after whom the 

old shipping tower was named. 

The old shipping control tower will 

be dismantled. 

Port of Port Hedland 


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Helping economies grow 

and customers prosper. 

We enable smarter trade to 

create a better future for all.

REEFER TRADES 

Container leasing company Seaco is constantly investing in new reefers to add to its sizeable global fleet 


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Global trade uncertainties 

and environmental 

regulations have hardly 

dented a relatively 

strong market for reefer 

containers, writes 

Paula Wallace 

Stronger 

for 

longer 

Seaco 

Compared to other areas of the shipping sector, the market for 

reefer containers is strong and has good long-term prospects. 

In 2020 and beyond, seaborne reefer trade is expected to grow 

at a higher rate than the previous few years due primarily to 

the decline in specialist refrigerated shipping services, which 

many think will be hit hard by the IMO 2020 sulphur emissions 

rules coming in next year. 

“At the beginning of this year everyone was getting excited about 

6% growth but I think what’s happened is, even though people 

need to eat and there is a growing need for perishable product… the 

trade wars and uncertainty with various economies has slowed that 

down a bit,” John Bannister, VP refrigerated and tank containers at 

Seaco, tells Daily Cargo News. 

“Everyone was forecasting that this year would be a bumper 

year,” he says. “I see signs this is slowing. But once the uncertainty 

starts to disappear I can see that growth coming back again.” 

Mr Bannister says growth estimates for this year are now sitting 

at around 4-4.5%. 

The container leasing company has been investing in its fleet, 

adding 12,000 new reefer containers in 2019. 

“The total fleet for reefers is close to 180,000 units that’s 

a sizeable fleet and we’re continuing to add to that,” Mr 

Bannister says. 

Other drivers of growth include the rise of developing markets 

and increasing spending power in those markets, which creates 

demand for more product and better quality food on a yearround 

basis. 

“That drives the market for better transportation and logistics to 

bring that food in and drives markets for reefers and reefer slots to 

carry that product,” Mr Bannister says. 


REEFER TRADES 

Shipping line MSC claims to have one of the largest and most advanced reefer fleets in the world 

“There is also a change in the trade routes… what you saw in 

past was a more significant trade route from south to north… but 

now it’s more east to west and more growth in inter-Asia markets 

which is sucking up equipment from more developed markets and 

keeping it there.” 

With 9.5% market share of the reefer business globally (Intra 

Regional Trade Asia trade excluded), Hapag-Lloyd achieved 

throughput of 781,000 TEU in 2018. It also invests in a new reefer 

building program, adding 13,420 to its fleet this year. 

“Hapag-Lloyd’s reefer fleet is about 100,000 units,” national 

reefer and special cargo manager for Hapag-Lloyd, Mehernosh 

Bhiwandiwalla, says. 

He tells DCN that the biggest trend in the reefer business 

globally is the modal shift from conventional refrigerated ships to 

reefer containers for perishable goods. 

“Is the demise of refrigerated ships going to be accelerated due 

to IMO 2020? That would force containership growth quicker than 

expected,” he says. 

Mr Bhiwandiwalla says IMO 2020 is also a challenge for 

shipping lines. 

“All the lines are working towards this so that we are ready by 

the start date and that is a significant cost to the liner business. 

This is mainly reflected in fuel costs and looking at other 

technology like LNG or EGCS.” 

The successful cost recovery is what Hapag-Lloyd calls the 

“marine fuel surcharge,” according to Mr Bhiwandiwalla. 

Although he could not provide any indication of what the 

surcharge will be, Mr Bhiwandiwalla says the process would be 

a “transparent and easy method of calculation” for customers 

to understand. 

Is the demise of refrigerated ships going 

to be accelerated due to IMO 2020? 

John Bannister, Seaco 

“That trend continues and also the high demand for foodstuffs 

due to the growing world population, driven also by the wealthy 

middle class in Asia mainly China keeps reefer trade in positive 

year-on-year trade,” he says. 

Reefer containers offer numerous advantages over refrigerated 

ships, mostly through access to the sheer number of containers 

and the number of ports that liner vessels visit. In addition, reefers 

enable easier transport at the other end, where containers can go 

straight from the wharf to markets or businesses. 

Mr Bannister says there are question marks over the implications 

of IMO 2020 and whether that will cause slow steaming which 

would in turn affect the demand for containers. 

VIEW FROM AUSTRALIA 

From the Oceania perspective, the reefer market is quite strong and 

mainly driven by exports, according to Hapag-Lloyd. 

“In 2018 we feel the export volume was 560,000 TEU, this 

is the volume mainly from Australia and New Zealand,” Mr 

Bhiwandiwalla says. 

“We are seeing the Oceania market growing positively by 4-5% 

annually and expect that trend to continue. The main reefer 

commodities continue to be meat, fruit and veg and dairy. We have 

seen new strong demand from markets in Asia. 

“Where we have seen there has been growth is in exports from 

Australia to China, almost 8% over the last few years, due to the 

population growth in the middle class in China. They have a great 

desire and appetite for Australian fresh produce - meat, wine, 

cheese, dairy – and that has continued to grow.” 

Richard Fedden, regional VP marketing Oceania at Seaco 

says, “Majority of the market in Australia is the 20-foot market. 

Domestically we use 1-2% of the [Seaco] reefer fleet but we also 

have reefers coming in through carriers like CMA CGM and MSC 

who move their reefers into the market.” 

MSC 


thedcn.com.au

THE MOST ADVANCED 

TECHNOLOGY TO DELIVER 

FARM FRESHNESS 

CARING 

BEYOND SHIPPING

REEFER TRADES 

Heidi Wittle, 

technical officer 

protected cropping team, QLD 

Department of Agriculture 

SOWING SEEDS FOR THE FUTURE 

OF REFRIGERATED EXPORTS 

A refrigerated sea container trial has been done at Port of 

Townsville, building capacity for horticultural exports direct 

from north Queensland. 

The three-week trial, with specialty melons, will provide 

primary information on optimal harvest time and shelf life 

validation for sea transportation of Burdekin-grown fruit to Asia. 

Port of Townsville’s trade development manager Maria 

James says, “At present growers in north Queensland send 

their produce south for export, which adds to their supply 

chain costs and delivery time. 

“The success of this trial could assist the region’s growers 

by reducing transportation costs and ensuring their 

customers are getting faster fresher produce, boosting 

the capacity and sustainability of north Queensland’s 

horticultural sector.” 

The project is funded through the Queensland 

Government Growing Queensland’s Food Exports pilot 

program and supported by global shipping line ANL that 

provided its reefer expertise and the use of a refrigerated 

sea container for the trial. 

Shane Walden, chief commercial officer of ANL says, 

“Australia has progressed to be thought of as the food bowl 

of Asia and we want to ensure our premium quality produce 

is enjoyed by all – it’s channels like these that help promote 

our grower’s product. 

“Leveraging ANL’s refrigerated containers and valueadded-services 

such as Controlled Atmosphere and Cold 

Sterilisation in Transit, exporters can protect the quality of 

their commodities by managing influencing factors like CO2, 

humidity, ventilation and temperature. 

“ANL’s broad coverage also provides opportunity for 

customers to export to south-east Asia and beyond. 

Servicing the major hubs of Singapore and Port Kelang, 

customers can tranship their cargo anywhere in the world, 

leveraging the CMA CGM Group’s global network.” 

The Department of Agriculture will now analyse the 

results of the reefer trial, which was just one part of a project 

investigating the logistics chain of specialty niche melons to 

the Japanese market. 

Ms James says she hopes trials like this will help build a 

case for the revitalisation of direct exports from Townsville 

to Asia. 

“Back in the 1990s, Townsville had direct lines coming in here 

from Japan… and we have a world-class cold storage facility on 

our doorstep with import licenses for China,” she says. 

“With the recent upgrade of Berth 4 at the port we are 

serious about developing container trade in the north. 

“This should be a regional hub, we’re two days closer 

to Asia [than Brisbane]… it’s really about getting people to 

change their existing supply chain practices.” 

Demand for reefers in Australia is influenced largely by seasonal 

factors, says Seaco. 

“We’re coming up to the Christmas peak with a lot of domestic 

bookings, that will pick up in the next six to eight weeks. We see 

steady growth,” Mr Fedden says. 

From Hapag-Lloyd’s point of view, it has a strong reefer presence 

in Australia and New Zealand with weekly direct service from main 

ports of both countries to almost all the main ports in Asia. 

“The challenge in Oceania, as an primary agricultural producer, 

is the weather and drought in terms of what is produced from time 

to time,” Mr Bhiwandiwalla says. 

“Another challenge is that exports are higher than imports so we 

can experience equipment challenges.” 

REEFER INNOVATION 

The latest research suggests that by the end of last year, around 

2.5% of the global container fleet had been fitted with smart 

technology – devices that show a container’s location in real time, 

as well as status information about the goods inside. 

That means around 250,000 units, largely reefer containers 

led by Maersk’s remote container management system, and other 

carriers have begun to follow suit. 

London-based consultant Drewry estimates that by 2023, nearly 

2.5 million units – 6.5% of the global container fleet – could be 

fitted with the technology. 

Key to this growth will be the development of a set of 

interoperability standards – one of the chief remits of the 

recnetly created Digital Container Shipping Association – that 

will allow carriers and others the opportunity to work with 

smart containers from different manufacturers and operating 

on different IT systems. 

We are seeing the Oceania market 

growing positively by 4-5% annually and 

expect that trend to continue. 

Mehernosh Bhiwandiwalla, Hapag-Lloyd 

One of Hapag-Lloyd’s biggest initiatives at present is in fitting its 

entire reefer fleet with technology for remote control monitoring. 

“Hapag-Lloyd LIVE is a significant initiative to fit the whole 

reefer fleet with remote monitoring technology. Obviously new 

reefers are already fitted with this technology including the 

reefers purchased this year. It’s in the final stages of testing,” Mr 

Bhiwandiwalla says. 

Part of Hapag-Lloyd’s 2023 goal to achieve about 10% of profitable 

reefer business globally (IRT Asia trade excluded), is to maintain the 

highest quality reefer fleet but also to serve niche markets. 

“An example would be our new Caribbean Express service which 

offers customers access to main markets in north Europe with 

weekly and fast transit times,” Mr Bhiwandiwalla says. 

“The company is focused on developing its offering in 20-foot 

reefers, solutions to pharmaceutical markets, value add of 

Controlled Atmosphere and Cold Treatment containers and in 

transportation of dangerous goods in containers.” 

Shipping line MSC believes it has a reefer fleet that is one of the 

“largest and most advanced” in the world. 

Dept. of Agriculture 


thedcn.com.au

Hapag-Lloyd’s reefer fleet totals 100,000 units 

In 2018, MSC transported more than 1.63m TEU of reefer cargo, 

including 45,000 TEU of Controlled Atmosphere and 25,000 TEU of 

Cold Treatment containers. 

Earlier this year, MSC made available to shippers in Oceania 

thousands of new Carrier Transicold NaturaLINE reefer containers 

with natural-refrigerant R-744 (CO2). 

“The CO2 refrigerant will enable us to avoid using intermediate 

refrigerant solutions that will need to be phased 

out in any case within the 15-year lifespan of the units,” a 

spokesperson for MSC says. 

The NaturaLINE reefer’s energy efficiency can reduce shipboard 

demand for electricity, thus conserving fuel and reducing 

emissions related to power generation. In addition, the zero- 

GWP polyurethane foam blowing agent technology used in 

the NaturaLINE unit offers high insulation properties without 

contributing to global warming. 

Another advantage for MSC is that when the NaturaLINE 

unit reaches the end of its useful service life, it is nearly entirely 

recyclable. 

MSC says that it maintains competitive advantage in the reefer 

market by offering a complete end-to-end, tailored solution 

through a global network. 

“We have the added ability to perform complex refrigerated 

protocols for various chilled commodities, which keeps MSC at the 

leading edge of reefer carriage,” MSC says. 

GREEN REEFERS 

Seaco started investigating the viability of different refrigerants 

several years ago including the CO2 technology. 

“We’ve added more CO2 units to the fleet, they are being used in 

Europe at the moment,” Mr Bannister says. 

“There is a growing demand in domestic markets for greener 

footprint containers and these units fit the bill. So far, we’ve seen 

the performance of the units as very good… what we’re hearing is 

that they’re operating well.” 

Mr Bannister says the market is taking a “wait and see” attitude 

in relation to what technology will provide a long-term solution 

once 134a is phased out. 

“Manufacturers of equipment are coming forward with interim 

and long-term solutions,” he says, adding that there isn’t a great 

push to change refrigerants right now. 

“At the moment 513A is considered an interim solution and for a 

longer-term solution everyone is still trying to come up with one,” 

Mr Bannister says. 

“What will happen is you’ll start to see that 134a prices will 

increase and 513A prices will decrease and you’ll see that shift 

when 513A comes in.” 

Mr Fedden says there are drivers for greener solutions in the 

Australian market. 

“We had a customer that wanted a CO2 solution, this was driven 

by supermarkets wanting to show carbon neutral policies and the 

technology works well in domestic markets. 

“Everyone has different thoughts on what refrigerants to use 

long term. The car industry is going down the CO2 path and we 

could see Coles and Woolworths installing chillers going down the 

CO2 route if not doing so already. We could see more use of CO2 

down here in the next six months,” he says. 

Seaco; Hapag-Lloyd 


MARITIME LAW 

The voyage to a green ocean 

The Poseidon Principles will likely drive the growth of sustainable practices across 

the shipping industry, write Stephen Thompson and Ranjani Sundar 

ON JUNE 18, 11 MAJOR GLOBAL 

banks signed the Poseidon Principles, 

being the world’s first sector-specific and 

sustainability-focused climate agreement 

amongst financial institutions. 

The Poseidon Principles are intended to 

integrate climate change considerations 

into financial lending decisions of 

signatories and seek to fulfil the IMO’s 

long-term goal of slashing the shipping 

industry’s total greenhouse emissions by at 

least 50% from 2008 levels by 2050. 

It is hoped the Poseidon Principles will 

change the conversation between shipping 

companies and banks, play a crucial part 

in bringing sustainable practices to the 

forefront of the shipping industry and 

encouraging responsible ship financing by 

the world’s major banks. 

THE PRINCIPLES 

The global framework led by Citibank, 

DNB, Société Générale, ABN Amro, 

Amsterdam Trade Bank, Crédit Agricole 

CIB, Danish Ship Finance, Danske Bank, 

DVB, ING and Nordea - who together 

represent 20% of the global ship-finance 

portfolio (equating approximately $100bn 

- will be applicable to lenders, relevant 

lessors, financial guarantors, and export 

credit agencies. 

The Poseidon Principles Association will 

calculate and publish the target carbon 

intensity for specific ship types and size 

classes each year. Under the Poseidon 

Principles, the signatories are required 

to publish in their annual institutional 

reports, by no later than November 30 

each year, their overall climate alignment, 

being the degree to which the greenhouse 

gas emissions of each institution’s shipping 

portfolio accord with the trajectory of the 

IMO’s 2050 climate target. 

Signatories to the Poseidon Principles 

will use this data to review and determine 

whether they will provide, or continue to 

provide, finance to individual shipping 

companies. Accordingly, shipping 

companies that fail to align themselves 

with the IMO’s targets may be refused 

financial lending by the signatories. 

The objective is for the Poseidon 

Principles to establish a baseline for 

financial institutions to assess and 

disclose the climate alignment of shipping 

companies and, by signing the climate 

agreement, all signatories undertake to 

apply the Poseidon Principles in the credit 

products they offer and to any vessel 

required to have an IMO number (i.e. the 

majority of vessels). 

IMPACTS OF THE PRINCIPLES 

The impacts of these Poseidon Principles 

are expected to be felt in the coming 

months, as shipping companies 

re-adjust their focus on sustainability 

and compliance with international 

environmental goals, in order to secure 

finance from the signatories. In that 

process, these companies are likely to incur 

increased up-front costs in identifying 

ways by which to control greenhouse gas 

emissions and improve sustainability 

practices across their business. 

In the short–term, in addition to 

implementing measures to ensure 

compliance with the IMO 2020, this 

may include upgrading older models of 

engines to be run at lower speeds and new 

propellers to run more efficiently. 

In the long–term, shipping companies 

may also look to embrace the use of lowcarbon 

fuels for bunkers, such as LNG, 

biofuels, hydrogen and ammonia to offset 

a vessel’s carbon emissions. No doubt 

these shipping companies will seek to pass 

these increased costs to related industries 

within the supply chain, such as logistics 

and commodities. 

FINAL THOUGHTS 

Globally, leading shipping companies have 

recognised that in order to fulfil the IMO’s 

goals (and considering that a vessel can 

have a typical lifespan of around 25-30 

years), it will be necessary to introduce 

commercially-viable vessels on our oceans 

by 2030 that, at a minimum, meet current 

international standards. 

This is an ambitious goal, towards which 

the Poseidon Principles are a major step but 

consideration may also need to be given 

to what further green initiatives can be 

established. 

Ranjani Sundar, 

senior associate, HFW 

Stephen 

Thompson, 

partner, HFW 

HFW 


thedcn.com.au

MARITIME LAW 

A strong shot of coffee 

Hazel Brasington, Ian Harris, Jonathan Lim and Kyriakos Tsoukalas from law firm 

Ashurst examine a landmark case in the UK Supreme Court that goes to the heart 

of the Hague Rules 

SOME COFFEE BEANS HAVE BREWED 

WHY IS THIS AT THE HEART OF THE 

is for the carrier to show that the relevant 

up a landmark case in the UK Supreme 

HAGUE RULES? 

damage occurred without fault in the 

Court. Volcafé Ltd v Cia Sud Americana de 

Cargo interests habitually rely on the general 

various respects set out in Article III.2, or 

Vapores SA [2018] UKSC 61 awoke an issue 

duty of cargo care for all carriers (Hague 

that an exception in Article IV.2 applies. 

that lies at the heart of the Hague Rules. 

Rules Article III.2). But there is an apparent 

The International Convention for the 

circularity within the Hague Rules. How can 

SO WHEN WILL THE ARTICLE IV.2(M) 

Unification of Certain Rules of Law relating 

a carrier rely on the inherent vice defence 

INHERENT VICE DEFENCE APPLY? 

to Bills of Lading 1924 is fast approaching 

of Article IV.2 where there is evidence that 

For a carrier to be able to rely on the Article 

its centenary. With the Visby Protocol, it 

carrier is in breach of its obligation in Article 

IV.2(m), the carrier must show either: 

is one of the most successful international 

III.2 to take proper care? 

- that the carrier took reasonable care 

commercial treaties ever signed. 

Yet how can the consignee succeed on 

of the cargo, thereby not breaching its 

The Hague Rules framework helps 

the basis of a carrier’s failure to take 

obligations under Article III.2, but the 

insurers of cargo or carriers’ 

care if there is evidence that the 

damage occurred nonetheless; or 

liability to allocate and 

damage to the cargo would 

- that whatever reasonable steps might 

price the risk of loss and 

have occurred anyway? 

have been taken to protect the cargo from 

damage to seaborne cargo. 

The whole 

damage would have failed in the face of the 

The result is a predictable 

carefully constructed 

inherent characteristics of the cargo. 

insurance environment 

architecture of risk 

If the carrier could and should have 

favourable to expanding 

apportionment becomes a 

taken precautions that would have 

world trade. 

conundrum requiring a “circuit 

prevented some inherent characteristic of 

The decision in the Volcafé 

breaker”. That circuit breaker is the 

the cargo from resulting in damage, that 

case may impact cargo claims large or 

legal burden of proof. 

characteristic is not an inherent vice. 

small, and not just where disputes are 

Did the Hague Rules change the legal 

governed by English law. 

burden of proof as it has always existed by 

WILL THIS DECISION AFFECT 

Relevant to Australia, Volcafé has called 

common law? 

AUSTRALIAN LAW? 

into question a well known decision of the 

No, said the Supreme Court in Volcafé. 

We think so. McHugh J in the Bunga Seroja 

High Court in Great China Metal v MISC 

The Hague Rules are silent on the issue of 

suggested that the Rules alter the burden 

(the “Bunga Seroja”) [1992] 1 LR 592. 

who bears the legal burden of proving that 

of proof established at common law. In 

there has been a breach of the carrier’s duty 

Volcafé, Lord Sumption said that is an 

WHAT HAPPENED? 

to take proper care under Article III.2, and 

“unexplained departure from the basic 

The coffee beans arrived damaged by 

whether the Article IV.2 exceptions (such 

principles governing the burden of proof 

condensation, although they were 

as the “inherent vice” exception) apply. 

borne by a bailee for carriage at sea”. 

originally shipped in good condition. 

The practical approach taken by 

International conventions ought to be 

The carrier’s defence was that the goods 

the common law of bailment provides 

construed, insofar as is possible, uniformly. 

were unable to withstand the ordinary 

the answer to where the burden lies. 

For this to be achieved, clarification is needed 

incidents of the voyage from warmer 

Remarkably, four centuries of cargo claim 

of the tension between Article III.2 and 

to cooler latitudes, so the carrier was 

cases have not (until now) reached a 

Article IV.2 in Australian law. The Bunga 

protected by one of the Hague Rules Article 

definitive answer on where the burden of 

Seroja concerned a different defence available 

IV.2 exceptions to carrier’s liability known 

proof lies. Volcafé determines that The 

to carriers under Article IV.2(c), the “perils of 

as the “inherent vice” exception. 

Hague Rules did not change common law. 

the sea” defence, possibly the defence that is 

By contrast the consignee’s claim was 

most often invoked in cargo claims. 

that the carrier had failed in its basic 

WHAT DOES COMMON LAW SAY? 

It will not be long before the next claim 

obligation by Hague Rules Article III.2 to 

The carrier is a bailee, and bailees have 

presents in an Australian court in which a 

keep and care for the goods properly. 

long been held to account by common law 

jolt of Volcafé coffee will be applied. Our 

Anucha Tiemsom 

As there was no clear or accepted 

commercial practice on what is adequate 

container lining when bagged coffee beans 

are carried in unventilated containers, this 

became a difficult case to adjudicate. 

for the simple and practical reason that it 

may be difficult or impossible for anyone 

else to explain what has occurred when the 

bailee is in possession of goods that suffer 

damage. So common law would say that it 

trusted framework for international trade 

deserves it. 

Always take legal advice before applying the 

general information provided in this story. 


TRADE LAW 

Improving trade 

through coastal shipping 

Can the “Blue Highway” of Australian coastal shipping provide a viable option 

to remedy some of our supply chain issues, asks Andrew Hudson 

EVEN WITH THE CURRENT POLITICAL 

only be prepared to make the investment 

shipping industry providing coastal 

pressures around global trade and the 

to provide those facilities subject to 

shipping services to move goods around 

supply chain, there seems to be little 

conditions providing a guaranteed return 

Australia which did not rely on overseas 

prospect that there will be no reduction 

on investment and flexibility in the way 

vessels and their services into Australia. 

in goods being moved through the 

they provide their facilities and services. 

However, over time the numbers of 

international supply chain. 

This can lead to an “imperfect” 

Australian-flagged vessels available for 

This places massive pressure on those 

competition environment, which can 

coastal shipping have dropped dramatically 

in the supply chain to work for outcomes 

include permissions for those providing the 

so that the majority of the movement of 

which will facilitate current and future 

facilities and services to work together to 

goods around Australia by sea is provided 

demands in a way which is effective, secure 

set rates and services in a way which will 

by overseas vessels as part of the “end” of 

and affordable. In terms of sea cargo 

guarantee that those facilities and services 

their shipping routes. This jeopardises the 

this has led to the development of larger 

are provided by collective action. 

markets for exporters and importers. 

and more sophisticated vessels as well as 

In Australia that can be seen in 

There have been a number of reasons 

necessary supporting infrastructure at the 

the “liner” exemption from normal 

suggested for this outcome, which include 

ports and then in road and rail to move 

competition laws and the ongoing tolerance 

the increased costs of vessels, the lack of 

goods once they are through the ports and 

by regulators and government of regular 

access to cargo facilities (which are focused 

stevedore facilities. 

increases in the costs to use stevedore 

on international trade), ongoing issues 

At the ports this has led to a variety of 

infrastructure at the ports. Government 

with road and rail infrastructure and the 

outcomes including additional dredging of 

and industry needs the facilities and some 

nature of the existing regulation of those 

the entrances to ports and the construction 

allowances are made. 

providing coastal shipping. 

of bigger and more advanced port facilities 

The current Federal legislative 

along with improved connections to 

GOVERNMENT RESPONSE 

environment is seen as too limiting. The 

improved road and rail facilities. 

Within this sensitive environment, all level 

challenges of that regulation are seen in 

of governments, their agencies and those 

the failure of the Coalition government 

IMPERFECT ENVIRONMENT 

in the private supply chain are regularly 

to secure the passage of reform legislation 

All of those requirements have resulted 

looking for the development of processes to 

before the last election and the uncertain 

in ownership of the supply chain 

improve trade in a secure fashion but which 

future of that legislation leaving in place 

infrastructure moving away from the 

still retain a spread of providers prepared 

a regulatory regime which may not be fit 

public sector into the hands of a small 

to provide those facilities and services at a 

for purpose for now and the future. 

number of wealthy participants in 

reasonable cost. 

The states are continuing their work on 

the private sector. Those holding that 

One aspect lies with the provision 

these issues. Freight Victoria is conducting 

infrastructure are in a strong position in 

the market. However those parties will 

of “coastal shipping” in Australia. For 

a number of years there was a separate 

a coastal shipping review at the moment. 

According to the Queensland trade 

Electra 


thedcn.com.au

Ian Ackerman 

Andrew Hudson, partner, Rigby Cooke Lawyers 

minister, a Queensland State Parliamentary 

Committee is considering reform of coastal 

shipping in the Queensland context. 

Further, the 20-year freight infrastructure 

strategy for reform recently issued by the 

South Australian Freight Council includes 

a review of developments with ports and 

related infrastructure and will no doubt 

form the basis for further review of coastal 

shipping in South Australia. 

However, even with the state reform 

work, it seems to me that the best outcome 

would be for the adoption of a national 

policy reform strategy for coastal shipping, 

perhaps as part of the current national 

transport infrastructure reform. While I 

can understand the need for different states 

to have their own agenda, coastal shipping 

is one area requiring a comprehensive 

national plan which incorporates specific state 

requirements as part of the national plan 

REFORM PLAN 

Some elements of the national reform plan 

for coastal shipping would include proper 

consideration and inclusion of the work 

and outcomes of the state-based work. Not 

all of those ideas would necessarily fall into 

the national work. Proper inclusion of all 

levels of government (federal, state and 

local) and their agencies which all have 

their own needs. 

Another element would be proper 

co-design between all levels of government 

and the private supply chain including 

those providing the services and the 

facilities and those working in that space 

(freight forwarders and licensed customs 

brokers for example). 

Proper consideration should be given to 

related concepts being developed elsewhere 

in the supply chain such as work in trade 

facilitation and cargo security along with 

impending changes such as those required 

by IMO 2020. 

Incorporation of other private sector 

initiatives such as single-window and 

blockchain should be included, and 

consideration of the development of vessels 

specific to the coastal shipping needs. 

Vessels of smaller size, using carbon neutral 

fuel and technological advances which can 

use less developed port and road and rail 

infrastructure and even unmanned vessels 

could be valuable options. Development of 

such vessels could also take into account 

export opportunities for the vessels to be 

used in other markets 

A national reform plan would also 

include the creation of a regulatory and 

competition regime specific to the needs 

of those involved in coastal shipping. This 

would take into account the needs for the 

private sector to receive a reasonable return 

on their investment while not allowing 

abuse of market position and would be 

consistent to the “co-design” of the regime. 

Finally such a plan would develop a 

national regime that at the same time 

includes recognition of state and local 

requirements whether geographical or 

commercial. That should also include the 

big question of whether all operations 

would be regulated by a regime where the 

Federal government is the prime regulator 

(by referral of powers from the states) 

or a regime to be developed by a national 

regulator whose regime is then adopted 

by the states (akin to the National Heavy 

Vehicle Regime). Whichever option is 

developed it will need to properly describe 

which party has jurisdiction in which 

area - where will the states have control at 

sea. This would also need to consider the 

important question of what aspects are not 

covered by the regime which would fall into 

the existing controls. 

FUTURE ACTIONS 

There is no doubt that this is an ambitious 

plan which will no doubt be “diced and 

sliced” even if the underlying concepts 

are accepted. However I believe it to be a 

necessary “evil” for such significant issues. 

In terms of “who” I would suggest that it 

would be a good project for the National 

Committee for Trade Facilitation to be 

referred to its “regulatory and reform 

sub-committee” with proper membership 

from all levels of government and the 

private sector. That would deliver a report 

back to the NCTF to be delivered back to 

government with national endorsement for 

agreed future action. 

BENEFITS OF IMPROVED COASTAL SHIPPING REGIME 

There are a number of potential benefits from an improved costal shipping regime 

including: 

provision of services tailored to the specific market at a lesser cost; 

development of specific vessels focused on local needs; 

• reduction in congestion in the land - side supply chain where goods are moved 

around Australia by sea as opposed to rail or freight; 

improvements in road safety from less congestion on the roads; 

reduction in pollution; 

assisting in revitalising regional Australia; 

• increasing Australia’s maritime skills shortage and not relying on those leaving 

the armed services; and 

• reduction in reliance on overseas vessels. 



Innovation key 

to meeting maritime 

challenges 

Former Shipping Australia CEO Llew Russell * looks at 

some interesting examples of the use of technology in 

the maritime sphere 

AN INNOVATIVE STRATEGY WILL 

don’t yet exist in a form that can be readily 

be essential in assisting shipping companies 

applied to international shipping especially 

meet current and foreseeable challenges. 

in deep sea trades. 

Such a strategy needs to be acceptable 

It is in the digital world that new 

in terms of the risk appetite in the line’s 

technological developments have been 

corporate strategy which should also foster 

most prolific. As Peter Creeden, director 

an innovative attitude. A strategy should 

MPC International, wrote in Shipping 

demonstrate knowledge of relevant new 

Australia magazine, “the shipping industry 

technologies and promote synergistic 

has taken a step forward towards meeting 

partnerships that can help accelerate the 

the expectations of the digital world by 

uptake of technology. Finally it should 

encourage standardisation among many 

establishing a neutral and non-profit 

association whose aim is to set industry 

Llew Russell, former CEO, Shipping Australia 

Limited 

participants to foster and facilitate 

wide standards”. 

implementation. 

The global association, comprising 

It is now progressing with a project to 

At the top of the current list of 

initially of Maersk, Hapag-Lloyd, 

develop a digital platform that will give 

challenges would be the new sulphur 

Mediterranean Shipping Co. and Ocean 

shipping industry participants live trade 

cap to be introduced in January 2020. 

Network Express, is called Digital 

lane visibility of short run cargo demand 

However, as the International Chamber 

Container Shipping Alliance and its focus is 

and supply of shipping capacity and 

of Shipping chairman, Esben Poulsson, 

on driving common standards. 

empty equipment availability to service 

pointed out in February this year, “the 

“The industry needs to continue to 

that demand. 

global sulphur cap is projected to starkly 

evolve and adapt, so that it can find 

MIZZEN’s partner in the project is 

change the economics of shipping for the 

common ground with the wider supply 

the University of Technology Sydney’s 

better by creating new reduction targets 

chain and establish a foundation to 

Department of Computer Science and 

for greenhouse gases. One such change 

harmonise systems,” Mr Creeden said. 

Centre for Artificial Intelligence supported 

would be achieving a commercially viable 

An interesting example is MIZZEN 

by the Federal government APRIntern 

zero carbon dioxide target in the 2030s”. 

which was launched in 2016 and today is 

Grant Scheme. As Jon Charles, Mizzen 

This would be considerably earlier than 

originally predicted. 

Mr Poulsson says over the next decade 

the industry is going to require massive 

investment in research and development 

of zero carbon dioxide emitting propulsion 

systems and other technologies which 

working with 11 shipping lines to distribute 

its container spot market price to customers 

online in the Australian market. Price data 

is captured from which is created a rate 

benchmark tool that provides shipping lines 

with more comprehensive price insights 

than existing solutions. 

managing director says, “As a carrier 

you will be able to make better-informed 

pricing decisions. As a freight-forwarder or 

cargo owner, you will see well in advance 

the periods where the greatest risk lies of 

not meeting your shipping expectations 

and managing the supply chain”. 

Shipping Australia Limited 


thedcn.com.au

Sea-Kit crewless vessel 

“We need to ensure containers and 

other hardware such as tracking devices 

and underlying technologies are treated 

as assets, not commodities,” Nick Press, 

managing-director of CEC Systems, said. 

“By re-orienting our thinking towards 

a system consisting of the physical, 

tracking, analytics and services, the 

combined effect will be a long-term 

improvement in operational efficiency, 

better return on investment and reduced 

environmental impact.” 

CEC; Sea-Kit.com 

MIZZEN, I submit, is a good example 

of the benefits of synergistic partnerships. 

In May this year, a new partnership 

was announced with Kontainers which 

provides MIZZEN with new channels to 

global markets and allows Kontainers 

to add dynamic price setting and rate 

management and distribution through its 

network of clients. 

“The partners have a shared vision 

for how digitalisation of our industry 

will evolve as a modern interconnected 

software solution stack, providing the next 

generation with simple to use customercentric 

freight software,” MIZZEN said. 

WHAT TO DO WITH ‘EMPTIES’? 

In the international container shipping 

industry, it is difficult to imagine a 

standard more readily adopted than the 20 

and 40-foot shipping container. However, 

with minor exceptions there has not been 

any major technological advancement, 

until now. 

The global shipping and logistics 

industry loses over $30bn annually on 

storing, handling and distributing empty 

containers. Some 40% of all containers 

leaving Australia in 2017 were empty. 

In response, CEC Systems has 

developed COLLAPSECON, the 

world’s first “beyond smart” semiautomated 

Collapsible-Economic- 

Container that enables four empty 

high-cube 40-foot containers to be 

collapsed and combined to form a single 

standard high-cube 40-foot container. 

Only one instead of four trucks is 

required for importers to return four 

unpacked containers to where empties 

are stored. This increased capacity to hold 

empties by making substantially more use 

of existing space means faster turnaround 

of vessels loading empties, increased 

utilisation of space for importers unpacking 

containers and so on. Savings are potentially 

available throughout the supply chain. A 

transportable frame is required which is 

simple to install and operate. The containers 

can be collapsed or expanded within 

There are many innovations on the horizon, 

not least crewless vessels as evidenced by the 

transport of a box of molluscs across the English 

Channel by an unmanned vessel. 

minutes and the design ensures the safety of 

operators who are trained by the company. 

Importantly the collapsed boxes can 

take more than 300 tonnes loaded on top 

so the boxes can be stored in most places 

on vessels and not be restricted to the top 

tier of containers as are standard empties 

which would impair vessel stability if stored 

below deck. This feature results in fewer 

empty container redistributions on deck 

and therefore reduces vessel lay-time 

costs, while more efficient stowage 

of full container lowers the carbon 

emissions per container. 

CEC Systems has 

developed COLLAPSECON 

ON THE HORIZON 

There are many innovations on the 

horizon, not least crewless vessels as 

evidenced by the transport of a box of 

molluscs across the English Channel by 

an unmanned vessel last May. This vessel 

was carefully watched by four people in a 

control centre in Tollesbury, Essex, England 

headquarters of Hushcraft, the company 

behind the design and development of the 

craft. UK and Belgian coastguards also 

closely monitored its progress. Their use 

in long-haul trades may well be a long way 

off but watch this space, at least in terms 

of more control of vessels from land-based 

operational centres, thus reducing the size 

of current manning levels at sea. 

Finding out about relevant innovative 

ideas is a challenge in itself but ship 

classification societies can assist. The 

Lloyd’s Register Foundation, for example, 

funds maritime blockchain labs which 

utilise demonstrator projects as a vehicle 

for building industry consortia, identifying 

safety focussed challenges and exploring 

blockchain as a smart solution. 

Whatever challenges arise in the future, 

an innovative savvy shipping company 

will be the best equipped to tackle 

them head on. 

* Llew Russell is a shareholder 

and non-executive director of 

CEC Systems Pty Ltd and 

from 2015 to 2019 was a 

non-executive director of 

the MIZZEN Group and remains a 

shareholder of that group. 



Cut to size: exciting 

new decision from the AAT 

Susan Danks analyses moves to reclassify goods to enable anti-dumping duties 

to apply and a decision by the Australian Administrative Appeals Tribunal 

REPORTS HAVE EMERGED THAT 

faced with similar quandaries. This 

imports of aluminium or steel parts are 

matter concerned the tariff classification 

being reclassified by the Australian Border 

of aluminium extrusions in profile form 

Force regarding the application of anti- 

imported by the Applicant, Solu Pty Ltd 

dumping duties. The situation appears to 

from China. 

occur when an import declaration is routed 

The ABF contended that the goods were 

red line on lodgement and the ABF then 

classified 7604. The importer contended 

determines the goods are properly classified 

that they were classified as furniture parts 

to, for example, 7604 as aluminium 

to 9403 or 8302 depending upon the 

extrusions rather than as parts. This is 

particular good. 

particularly concerning where the subject 

The ABF placed great store on the 

goods have until then been classified as 

requirement for the goods to be cut to size 

parts, not only because of the potential 

after importation and that as imported 

risk of penalties being imposed, but also 

they were in varying lengths. They claimed 

because of the consequential huge increase 

that the imported goods were “materials” 

in duties payable. 

as it was only after importation that they 

were further worked (i.e. cut) into “parts”. 

NEED FOR RULINGS 

If we ignore the need for all parties to be 

A RESPONSE FROM THE AAT 

Susan Danks, industry analyst 

properly trained in tariff classification and 

The AAT response: Firstly, heading 8302 does 

anti-dumping, how does a broker respond 

not provide that the classification of goods 

finger recess. As presented, at the time of 

to such a situation? As you know, while 

under this heading must be of a specific length 

importation, the incomplete or unfinished 

industry has often requested a ruling system 

or size. Secondly, while the subject goods are 

article has the essential character of the 

for anti-dumping similar to that which 

often cut to size after importation, the process 

complete or finished article. The goods are not 

exists for tariff classification and valuation, 

of cutting the subject goods to size or at an 

substantially transformed or worked before 

no such decision from the regulator is 

angle after importation does not alter the 

installation into cabinetry and are as such not 

available. Brokers can lodge applications 

design or use of the goods, and does not affect 

“materials” but “parts” for furniture. 

for tariff advice, however, this may not 

the classification of these goods as the complete 

be determinative and, as we have all 

or finished good… No further modification 

POSSIBLE APPEAL 

experienced, many importers are unwilling 

or working of the goods is required. They are 

It will be interesting to see if ABF appeal 

to pursue an appeal via s.273GA to the 

merely glued into place on installation (except 

this decision of the AAT. Meantime, given 

Australian Administrative Appeals Tribunal. 

for the Mounting Track) and in some instances 

this interpretation of “parts” v “materials” 

they can be installed into furniture in the size 

has been a long held practice of the ABF, 

IMPORTED GOODS AS “MATERIALS” V 

“PARTS” 

The decision in this matter will therefore 

be of great interest to customs brokers 

as imported… 

Cutting to size does not change or 

alter the design or use of the aluminium 

rails, aluminium edge profiles and cabinet 

it may be timely to review the tariff 

classification of materials/parts imported 

by clients that require only being cut to size 

before installation. 



thedcn.com.au


Win-win for Melbourne’s 

inner west 

Truckies and a community group have thrashed out a peace deal that 

will be good for both residents and industry, writes Peter Anderson 

THE VICTORIAN TRANSPORT 

After 18 months of lobbying, we 

Association and our former adversaries the 

welcome progress on implementation of 

Maribyrnong Truck Action Group notched 

our proposal in the form of the Smart 

up a significant victory recently, with the 

Freight Partnership – Inner West. 

Victorian government agreeing to proceed 

The Smart Freight Partnership is an 

with a variation of our innovative solution 

Australian first in terms of encouraging 

to addressing heavy vehicle movements in 

freight operators to modernise their fleets 

Melbourne’s inner west. 

and is seen by industry and the community 

For years, inner west residents in and 

as one way of reducing the age of Australia’s 

around suburbs adjacent to the Port of 

heavy vehicles. 

Melbourne – Australia’s busiest container 

With an average age of 14.9 years 

port – have waged a campaign against the 

Australia has one of the oldest truck fleets 

industry to reduce the amount of trucks on 

in the developed world, prompting industry 

local streets. Safety, traffic congestion and 

groups to come up with incentives for 

emissions were common themes in what 

operators to transition to new trucks that 

has often been a very public campaign, 

are quieter, safer and use less fuel. 

with the VTA on behalf of the industry 

The initiative is a great example of 

advocating for continued seamless access 

how traditional adversaries can work 

to the Port of Melbourne for operators 

to be able to remain productive, efficient 

constructively together to achieve solutions 

that benefit residents and operators. 

Peter Anderson, CEO, Victorian Transport 

Association 

and profitable. 

Industry and community groups can 

The Andrews Labor government 

achieve great things when they work 

Trucks manufactured on or after 

announcing permanent restrictions on 

together and acknowledge their individual 

January 1, 2010 that meet stricter 

key inner west streets after the West Gate 

needs and interests can be achieved 

emission control standards (Australian 

Tunnel is built, was one of many triggers 

through compromise and mature 

Design Rule 80-03 or EURO V equivalent) 

for us to engage directly with MTAG to 

discussions. 

will have three hours more access on 

end the long-running dispute and come 

weekdays than the older trucks and two 

up with an innovative solution that would 

A WAY FORWARD 

hours more time on Saturdays. 

incentivise operators to continue working 

It is encouraging the Victorian government 

Industry-led training is a key element of 

in the area while improving safety and 

has recognised the merits of the visionary 

the program which includes measures to 

amenity for residents. 

plan we developed with MTAG by 

deliver driver awareness training on local 

Our jointly developed Maribyrnong 

establishing the Smart Freight Partnership, 

access, safety and amenity issues. 

Cleaner Freight Initiative was put to 

and we look forward to implementing it 

A key reason we were able to 

VicRoads in 2017 and represented a world- 

in conjunction with operators, residents, 

constructively collaborate with MTAG was 

first collaboration between previously 

Freight Victoria and local and state 

a shared willingness to compromise, and 

staunch opponents in the interest of 

governments. 

recognition by both parties of each other’s 

developing effective transport policy, 

As part of the Smart Freight Partnership, 

legitimate concerns. For our part, it was 

independent of government. 

an Environment Freight Zone covering 

vital that the rights of operators to be able 

The proposal would incentivise operators 

Somerville Road and Moore, Francis and 

to run productive and efficient businesses 

to upgrade their fleets to ‘cleaner’ lower- 

Buckley streets in Melbourne’s inner west 

was paramount, whilst MTAG were after 

emissions vehicles and require drivers 

would be established. Access times to 

improvements in safety and amenity. 

to complete specific training on local 

these roads would be reduced for trucks 

We were only able to reach a consensus 

transport and infrastructure. In exchange, 

that don’t meet current emission control 

because of mutual respect and a 

those operators would be granted access 

standards, resulting in a reduction of 

determinedness to get a positive outcome, 

Jim Wilson 

to presently curfewed roads for longer, 

providing a significant productivity 

dividend compared with other operators. 

two hours per day for the first two years, 

followed by a further two-hour reduction 

per day in subsequent years. 

and I applaud MTAG for their mature 

and respectful approach throughout our 

negotiations. 



MSC Elma 

Larger box ships - 

a regular sight or once-off? 

Maritime analyst Peter van Duyn examines the implications of the arrival 

in Australia of two Bosporus-class container ships 

THE RECENT ARRIVAL OF TWO 

as a number of cranes did not have the 

the global container fleets are in the 5000 

9400 TEU container ships, the MSC Elma 

clearance to go any higher. 

TEU to 15,000 TEU-range or smaller feeder 

and Maersk Skarstind, has heralded the 

The limitations on these ships were due 

vessels in the sub-3000 TEU-range. 

arrival of a new class of container vessel 

restrictions on the draft to which the vessel 

Maersk CEO Soren Skou, as well as 

to visit Australia. Both vessels are of the 

could be loaded at some of the ports. For 

other shipowners, thinks 20,000+ TEU is 

so-called ‘Bosporus’ class, so named as their 

example, the Westgate Bridge in Melbourne 

about the upper limit of container vessel 

overall length, 300 metres, is the maximum 

caused a problem for the MSC Elma. To 

size as there are only a small number of 

size for a vessel to transit the Bosporus Strait 

have sufficient clearance to pass under the 

ports which can handle these behemoths 

without special permission. The Bosporus 

bridge careful calculations and additional 

efficiently. One of the issues is that while 

Strait connects the Black Sea with the 

measures had to be taken. The Maersk 

the width (the MSC Gulsun can carry 24 

Aegean Sea and divides the City of Istanbul 

Skarstind however, had a collapsible mast 

containers wide on deck) and depth of 

into two halves. The Bosporus class vessel’s 

which made the pass easier. 

these vessels is getting bigger, the overall 

beam (width) is 48 metres that translates 

From comments made by the shipping 

length is approximately 400 metres, which 

into 19 containers wide on deck. 

lines involved and looking at their forward 

limits the number of quay cranes that can 

Both vessels have called at most major 

schedules it seems that these vessels were 

fit over the vessel whilst working alongside. 

Australian ports but with varied levels of 

once–off only and were used to test the 

This in turn affects the berth rate and 

success. The draft, the width and height of 

ability of Australian ports and stevedores 

how quickly these vessels can be turned 

the container stack on deck as well as the 

to handle vessels of this size. No doubt 

around whilst in port. To fill these vessels 

air draft (height from the waterline to the 

Maersk, MSC, port authorities, harbour 

also requires more port calls meaning an 

top of the mast) of these vessels have all 

masters and stevedores will be analysing 

increase in inventories costs. And let’s not 

been issues that have limited the efficient 

the results of the vessels’ calls and see if 

forget the logistical problems if one of these 

working of the vessel. Due to their size the 

using this type of vessels on a regular basis 

ships is involved in an incident such as the 

berthing and unberthing of the vessels in 

will be an option. Further simulations will 

grounding of the 19,000 TEU CSCL Indian 

some ports was restricted to daylight hours 

also be done to investigate whether vessels 

Ocean in the River Elbe in 2016, or if there 

only as well as light wind conditions. 

of up to 346 metres in length are able to 

is a fire on board. 

enter certain ports. Shipping lines will no 

Considering our market conditions and 

STEVEDORING CHALLENGES 

doubt want to keep bringing larger vessels 

port infrastructure I doubt if we will see one 

Patrick Port Botany and VICT at Webb 

to Australian ports due to the reduction in 

of these vessels in Australia anytime soon as 

Dock are currently the only operators 

cost per TEU. However, it’s unlikely that 

our container market is just too small to fill 

in Australia that have quay cranes large 

enough to reach 19-containers-wide, 

consequently the stowage of containers on 

deck had to be adjusted for other ports as 

the outer cell could not be reached. 

Both Patrick and DPWA have on order 

quay cranes that are able to reach in excess 

of 19-containers-wide. The first of these 

cranes are expected to arrive in early 2020. 

The stacking height of containers on deck 

had to be limited to seven-high in all ports 

this reduction will be passed on to the 

importers and exporters. 

GLOBAL PERSPECTIVE 

Globally it’s a different story. The largest 

containership presently afloat is the 23,000 

TEU MSC Gulsun, which recently entered 

service, the first one of a batch of six 

ordered by MSC in 2017. While the new 

building order market for 18,000+ TEU is 

currently healthy, the major workhorses in 

them, even 50 years from now. 

Peter van Duyn, 

maritime analyst, 

Centre for Supply 

Chain and Logistics 

(Deakin University) 

Ian Ackerman; Brett Patman, Lost Collective 


thedcn.com.au

DARWIN 

CONVENTION 

CENTRE 

29 - 30 

october 

SPONSORS AND PARTNERS

OUT & ABOUT 

International Maritime Organization secretary-general Kitack Lim 

addressing the AMSA event in Sydney on 29 July 

Celebrating women in maritime 

IN AN HISTORIC OCCASION THE 

secretary-general of the International 

Maritime Organization, Kitack Lim, visited 

Australia in July. It was the first time that 

an IMO secretary-general had done so. 

On 29 July, the Australian Maritime 

Safety Authority held an event in Sydney 

to celebrate the IMO 2019 theme of 

empowering women in the maritime 

community where Mr Lim gave an address 

along with a number of accomplished 

women in the industry. 

On 19 July, the Sydney Airport Ladies 

Association held its annual Christmas in 

July luncheon, a special event celebrating 

30 years of the association. The event was 

attended by more than 100 women from 

customs, quarantine, airlines, shipping 

lines, logistics and service providers. 

The CBFCA also organised a highly 

successful event at the Queensland 

Tattersall’s Race Day. It was a sellout event 

with members enjoying fantastic weather, 

great food and drinks at the Eagle Farm 

Birdcage. The day was such a success that 

CBFCA is now looking for a larger venue for 

next year’s event. 

Rob McTaggert, Colin Brame and 

Scott Carson, CBFCA race day 

Teresa Lloyd, Kitack Lim, 

Jeanine Drummond and 

Alison Cusack at AMSA event 

AMSA; Paula Wallace; Lindsay Reed; CBFCA 


thedcn.com.au

Rea Mihaka, Tamlyn Spencer and Candice Serra, CBFCA race day 

Megan White and 

Sue Danks, SALA lunch 

Helen Sun and Alison Smith, SALA lunch 

Emilie Donovan and 

Holly Saunders, AMSA event 

Suzy Gusset and 

Meredith Harvey, SALA lunch 

Jillian Carson-Jackson and 

Kitack Lim, AMSA event 



Youth empowerment – 

why does it matter? 

The vibrancy of youth can bring important benefits for freight and logistics, 

writes customs broker Sarah Vogler 

YOUNG PEOPLE BRING CREATIVITY, 

curiosity, energy, impatience, attitude and 

guts. They are generally confident, able to 

multi-task and are tech savvy. So, why is it 

so crucial we empower them, when it seems 

they already have it all? 

SOME CONTEXT 

It’s no secret that businesses are expanding 

every day, presenting new and exciting 

challenges, with plenty of work to go 

around. The logistics industry is no 

exception. With so many individuals 

working in this sector under the age of 

30, we are given an opportunity with 

endless possibilities. These fresh-minded 

people are eager to create a foundation for 

a long-term career path, keen to develop 

their knowledge pool and grow their 

bank balance. While experience is vital; 

reassurance, training and development are 

the three key aspects to assisting those who 

are eager to improve their skill sets. 

NEW TECHNOLOGY 

Technological advancements, 3D-printing, 

autonomous vehicles, these are just some 

of the areas that are expected to have a 

massive impact on the logistics industry. 

With so many potential prospects existing 

and young minds to actively contribute to 

the changes ahead, it seems only fitting 

we put our efforts into investing in these 

future leaders. If we can provide the 

resources and encouragement necessary 

for analysing issues that affect our working 

environment it will assist their minds in 

creating a safe space to explore ideas and 

ultimately giving them an enormous sense 

of self-worth and gratitude. 

GIVING A VOICE 

Giving a voice to our youth makes a huge 

difference. Expressing a thought or idea 

is one thing, but for someone to hear that 

opinion, is another. Although some won’t 

agree with this opinion piece, I believe youth 

are a necessary part of the backbone of this 

industry. Without them, there is no future. 

Let’s not get carried away here, it is 

crucial to clarify that not every idea is 

picture perfect. We want to encourage 

creative thinking mixed with a realistic 

understanding to ensure the foundation of 

the idea has a solid base to inspire growth. 

It is imperative that they also learn to 

appreciate failure. Failure is an essential 

building block in life. How are we expected 

to learn, if not from our mistakes? 

I encourage those who believe in our youth 

to listen, teach and inspire them to make them 

the representatives of change 

Good habits need to be presented and 

established early on to provide a sustainable 

platform for these youngsters. Essentially 

this process needs to start by shifting the 

current adverse mindsets of our more 

senior colleagues, giving them confidence 

in our youth to ensure they are seen as part 

of the solution, not part of the problem. 

It is vital we engage these minds and use 

them to our advantage. Moulding them 

to our needs, while still giving them the 

creative freedom to innovate change and 

seek revolutionary ideas. 

Our younger colleagues need to know 

that their senior associates believe that 

they have the potential and capability to 

triumph through any problematic situation 

they are presented with. 

INEVITABILITY OF CHANGE 

Empowering youth doesn’t just have 

to implicate youth. The benefits are 

Sarah Vogler, customs broker, Panalpina World 

Transport 

substantial, for both the industry and 

individuals involved. As we all know, 

change is inevitable, meaning we must 

work together as a cohesive team to protect 

the future outcome of the industries and 

world we live in. Through collaboration 

of experience, ideas, history and future 

forecasts; we can essentially walk into the 

future together, side by side. 

As a huge advocate of our youth, as 

well as being one myself, I believe it is our 

collective responsibility to learn how best to 

approach, provide motivation and support 

them. By providing them with the tools to 

self-develop, they should see it as their duty 

to personally advance themselves. 

I encourage those who believe in our 

youth to listen, teach and inspire them to 

make them the representatives of change 

they are so capable of being. I ask you, what 

could be more imperative to the future of 

our industry? 

In the words of Franklin D. Roosevelt, 

“We cannot always build the future for 

our youth, but we can build our youth for 

the future”. 

Panalpina 


thedcn.com.au

MISSION TO SEAFARERS 

LPG tanker Inge Kosan 

Crew of the LPG tanker Inge Kosan 

at the Mission to Seafarers’ Sydney office 

From an LPG tanker to 

paddling the Murray River 

Reverend Un Tay provides an update on recent activities and events 

at the Mission to Seafarers Sydney 

ON THURSDAY 11 JULY, THE 

Mission’s calendar and a souvenir to each 

Thank you, to all those who attended 

Mission to Seafarers received an email from 

of the crew. We had an overwhelming 

and assisted and special thanks to Silvia 

Matt Stannard, pilot manager and deputy 

response, with feedback and appreciation 

and Lido from Ventuno Pizzeria Restaurant, 

harbour master at the Port Authority of 

from the crew for providing prayers and 

Millers Point for donating their special 

NSW requesting our Mission staff to visit 

pastoral care to them. 

gourmet pizzas for the evening and to The 

Inge Kosan, an LPG tanker which was towed 

The crew are being kept very busy with 

Captain Cook Hotel on Kent Street who 

to Glebe Island for a major repair due to 

the major repair work being carried out, 

advertised it on their website. 

engine failure. 

but we are hopeful that they will be free to 

This inaugural information and drinks 

On boarding the vessel to visit the 

have some rest and relaxation time each 

night was an enormous success. For those 

captain and crew, I found out that the 

weekend. We will arrange for our bus to 

who missed out, we hope to organise 

vessel had a major engine breakdown in 

pick them up on the weekends to allow 

another evening some time towards the last 

April near Honiara, Solomon Islands. They 

them access to our Mission facilities and 

quarter of this year. 

had spent many weeks on the water being 

easy access to the city. 

towed, finally arriving in Sydney. 

As per the request from the captain, we 

PADDLE FOR THE MTS 

Obviously, the crew were all feeling 

conducted the Lord’s Supper for the crew on 

To all our supporters and friends, we 

exhausted having been at sea for a 

Sunday 11 August 2019. 

would like to draw your attention to our 

considerable length of time, in very 

fundraising event called the Massive 

difficult circumstances. This initial visit 

FIRST INFORMATION AND DRINKS EVENT 

Murray Paddle in November. Gary and Troy 

was very much welcomed by the captain 

Wendy our administration manager, 

both staff members and James a volunteer, 

and the crew. I explained about the 

suggested the idea of raising awareness of 

will be paddling a kayak for 404km on the 

services offered at the Mission and offered 

our Mission and the need for the services 

Murray River. 

to pick the crew up once a day and bring 

that we offer. As the first step towards 

We urge you to pray for them as they 

them in to the Mission to Seafarers Sydney 

this, we organised our first drinks and 

prepare for this epic journey. We also 

office. I also distributed newsletters, 

information evening on Tuesday 23 July, 

appeal to you for support, please donate 

magazines, local maps and brochures 

specifically aimed towards our local 

generously towards this fundraising event 

about places of interest. 

community in Millers Point. 

for our Mission. 

Since that first visit, our chaplains have 

We had a total of 40 people attend, 

As you know, we are a not-for-profit 

brought the crew of the Inge Kosan into 

including seafarers, staff and members of 

organisation. We depend on the generosity 

our mission centre on several occasions, 

our board of directors. This info evening 

of our supporters and friends. Your 

including to our information and drinks 

had aroused the interest of many and 

donations will go a long way to caring for 

Mission to Seafarers 

night, held on July 23. The captain also 

requested a service to be held on board for 

the crew. On Sunday 21 July, along with 

four volunteers, we conducted a service 

for the crew and gave out 15 Bibles, our 

created opportunities for our friends and 

neighbours to interact with seafarers, learn 

about the life of a seafarer and gain an 

understanding of the work of The Mission 

to Seafarers, what we do and why. 

the seafarers on whom we all depend. 

Please stay in touch and visit our website 

www.missiontoseafarers.org.au or like us on 

Facebook: missiontoseafarers-Sydney 


The grill 

Port Authority of New South Wales general manager, 

commercial and trade Jason McGregor talks coal shipping, 

surfing and reveals his dining hotspots in Sydney 

Where did you grow up? 

I grew up in Sans Souci in the southern 

suburbs of Sydney, and then moved to 

Cronulla. I now live at Woronora Heights, 

I’ve basically been in The Shire for most of 

my life and I do support The Sharks, like a 

true Shireman. 

What did you want to be when you 

were a kid? 

I’ve always been around the water either on 

it or under it. When I was young I was in 

North Bondi Surf Club, I started as a nipper 

at five-years-old and then continued into 

the senior club. I was surfing at Cronulla 

every spare moment, so my ideal job when 

I was a kid would have been either a life 

guard or professional surfer. But, then I 

grew up and realised to be a professional 

surfer I needed to be far better than I was. 

How did you develop a career in the 

maritime sector? 

I started in the maritime industry more 

than 20 years ago, firstly with Contship 

Container lines which was owned by CP 

Ships. My baptism into the maritime 

sector was at the same time as the 1998 

Australian Waterfront Dispute. I spent 

a number of years in the liner operation 

and then joined P&O Ports which at the 

time was one of the largest stevedoring 

companies in the world. P&O was acquired 

by DP World in 2006. I then went into 

the rail business with Pacific National in 

the coal division at a time when coal ships 

were queuing off Newcastle primarily 

due to vessels arriving quicker than coal 

could be moved from the mine to the 

port. With saltwater in my veins I then 

joined Sydney Port Corporation at a time 

when Port Botany was being expanded and 

the Landside Improvement Strategy was 

introduced. In 2013, the NSW government 

privatised Port Botany and Port Kembla 

and I then joined NSW Ports, a new 

business majority owned by Australian 

superannuation funds. At the start of 2019, 

I went back to the Port Authority of NSW. 

What do you find most rewarding 

about your job? 

The people would be first and foremost the 

most rewarding part of my job, I interact 

with shipping lines, stevedores, ports, 

landside operators, industry associations, 

government agencies, importers and 

exporters and most organisations 

associated with the supply chain. It’s a 

relatively small industry and people tend 

to stay within it so you do get to know 

people quite well from both a business 

and personal perspective. I have always 

found the people I deal with as committed, 

professional and genuine, which I think is a 

credit to this industry. 

Why is Sydney a great place to live? 

Sydney has so much to offer, our iconic 

harbour which I’m able to get out on 

regularly, the waterways around Port 

Hacking and Botany Bay, the beaches and 

National Parks. I think it’s a great place to 

live and work. 

What do you enjoy doing in your 

spare time? 

I enjoy being on the water, and being 

around it, so boating is what I enjoy the 

most, to me a day on the water is like a 

two-week break. I also do a fair bit of scuba 

diving, in Sydney we have a lot of very good 

shore dives from Sydney Harbour down to 

the Illawarra. 

What’s your favourite Sydney 

restaurant? 

I have two favourite restaurants, Wilsons 

Lebanese in Redfern, my parents first 

took me there when I was a kid. My wife 

and I have continued going there with 

our children. I have been going there for 

over 35-years so it has history and the 

restaurant has remained in the same 

family all this time. The other restaurant 

is Sea-level at Cronulla, the location is 

right on North Cronulla Beach and the 

food is always good. And, it’s on the site 

of the old Joes Milk bar which was an 

iconic landmark in Cronulla before it was 

demolished in the 1990s. 

Where will you be in 10 years? 

Difficult question, 10 years is a long time, 

I certainly enjoy what I do now both 

professionally and personally so if I can do 

more of the same I will be happy. 

What’s your favourite music? 

Alternative rock with a little grunge, Foo 

Fighters, Nirvana and Powderfinger are 

some of my favourite bands 

Is there an Australian (living or 

historic) who you find inspiring? 

I think Dick Honan the chairman of 

Manildra Group is inspiring. The Manildra 

Group has been investing in regional 

Australia for over 60 years and they 

continually evolve and develop. Dick’s 

passion for his business and how he will 

always question how things are done is a 

measure of the success the group has had. 

He always seems to be thinking of ways 

to do things more efficiently. I see Dick 

as enthusiastic, decisive, compassionate, 

competent and loyal. A true leader. 

PA NSW 


thedcn.com.au

THE 24TH ANNUAL AUSTRALIAN 

Shipping & 

Maritime 

INDUSTRY AWARDS 

Join us in the heart of Melbourne for the 24th annual 

awards and be among the who’s who of the industry for 

a night of excellent entertainment and networking. 

Have your say, nominate for an award now. 

SAVE THE DAT E ! 

Thursday 14 November 2019 

Plaza Ballroom, Melbourne 

Contact Lloyd O’Harte, 

on 0414 272 574 or email 

lloyd.oharte@thedcn.com.au 

dcnawards.com.au 

MAJOR HOST SPONSOR 

SPONSORS 

The Merchant Navy 

War Memorial Fund Ltd 

( MNWMF ) www.mnwmf.com

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DCN September Edition 2019

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