Ten trade organisations, representing the owners and forwarders of cargo, port terminal operators and other parts of the supply chain dependent on container shipping, are demanding an immediate start to the review of European Union’s Consortia Block Exemption Regulation for the container shipping industry.

 

The Regulation exempts container shipping lines from many of the checks and balances of EU competition law and permits them to exchange commercially-sensitive information to manage the number and size of ships deployed and the frequency and timing of sailings on trade routes around the world.

European businesses and other parties in the supply chain have suffered huge disruption to the movement of goods by container shipping since the Regulation was last renewed in April 2020, with many sailings being cancelled or diverted to other ports, and ports being bypassed (‘skipped’) at short notice. At the same time shipping rates have more than quadrupled on many routes and continue to remain 3 to 4 times higher than in 2019 before the pandemic.

The effects of lockdowns on the production of goods and the shifts in demand due to the effects of the Covid pandemic were certainly significant. But the ability of the shipping industry to collectively manage these impacts, and at the same generate profits totalling over $186 billion in 2021, at the expense of the rest of the supply chain, and ultimately Europe’s consumers, demonstrate that something is wrong. The benefits of the exemptions from general competition law enjoyed by the shipping lines are not being shared fairly between the lines and the rest of the economy, and this in itself constitutes a compelling reason why the Block Exemption should be reviewed urgently.

In their letter to the Commission the signatories point to the revelations and recommendations of investigations conducted in the United States by the Federal Maritime Commission, resulting in May in the passing of a new Ocean Shipping Reform Act, addressing many of the grievances of users and services suppliers to the container shipping lines.

The Regulation’s review will allow all interested parties to submit evidence and arguments as to how the Commission should act to ensure the deep-sea container shipping market operates in a way that is fair and transparent to all parties in the maritime supply chain. This should include consideration of new measures and mechanisms and should allow sufficient time for these to be considered and implemented before the expiry of the current regulation in April 2024.
Source: Global Shippers Forum


The International Association of Ports and Harbors (IAPH) welcomes the international agreement reached last Friday July 22 to establish a humanitarian maritime corridor which should enable ships to export essential cargoes of grain and foodstuffs from Ukrainian seaports. These products are critical in terms of addressing the global food crisis and alleviating the suffering of millions of people around the world.

IAPH commends Ukrainian port workers, represented through the Maritime Transport Workers’ Trade Union of Ukraine and the Ukrainian Sea Ports Authority, who are making every effort to prepare the ports of Odesa, Chornomorsk and Pivdennyi for the resumption of maritime traffic under extraordinarily difficult circumstances.

The missile attacks which struck the port of Odesa less than 24 hours after the signature of the international agreement gravely undermine these efforts and seriously jeopardize the reliability of such an accord.

The terms of Friday’s agreement determines that the Russian Federation should not undertake any attacks against port facilities and merchant vessels engaged in the export of critical cargoes.

The safety and security of all port workers and seafarers who enable maritime traffic from Ukrainian seaports should be absolutely guaranteed if the agreement is to achieve results within the planned deadline.

IAPH and The Seafarers’ Charity appeal to maritime industry to support Ukrainian port workers
IAPH has been working to support port workers and their families impacted by the humanitarian disaster caused by the war in Ukraine. This emergency appeal is being coordinated by IAPH and The Seafarers’ Charity. Funds raised are being distributed to appropriate delivery partners operating in Ukraine including the Maritime Transport Workers Trade Union of Ukraine (MTWTU) and its welfare fund Mortrans.

Call by Ukrainian Seaports Authority for applications to join cargo convoys
The Ukrainian Seaports Authority have in the meantime issued a communique advising that preparations are being made at the Ukrainian ports of Odesa, Chornomorsk and Pivdennyi for cargo operations, requesting applications for the inclusion of those vessels which will be led by convoy to and from these ports.

Source: https://maritimefairtrade.org/russia-attacks-odesa-port-after-signing-agreement-casting-doubts-on-its-reliability/


Earlier this year, a group of female students at Korea Maritime & Ocean University filed a complaint with the Human Rights Committee against the university for gender discrimination.  They alleged they were not given a fair opportunity to participate in the field exercise program for marine technicians.

This work placement program is run by shipping companies partnered with the university.  Traditionally, the ratio of female students has always been lower than male students. However, in the past five years, 80 percent of the male applicants received an offer while only 39 percent of female applicants did.

This led to a disparity in the employment rate between the genders. During the same period, the employment rate of male graduates reached over 80 percent but the rate of female graduates recorded just above 61 percent. The rate of female graduates who completed the field exercise program was way above that at 85.2 percent.

The university told the Human Rights Committee during investigation that the inclination to select more male candidates is due to the “vocational characteristics of the shipping industry”. As the shipping industry has long been a male-dominated one, it is claimed the companies running the program do not have sufficient facilities for women, such as toilets or locker rooms on their ships.

On June 13, the Human Rights Committee found that the university’s “sexist customs” are “systematically excluding women in the maritime labor market” and therefore, made the recommendation for the school to be more inclusive via a change of policy.  The Committee also recommended that the Ministry of Oceans and Fisheries, which has a seat at the university’ board, to conduct a check on the partnering shipping companies and report on the gender ratio of crew members who have marine technician licenses.

The university accepted the Committee’s finding and said it will work towards a sustainable solution.

Deep-rooted male-dominant culture

Han Chul-hwan, international logistics professor at Dongseo University, pointed out that this case showed the “very anachronistic tradition” in the industry. “It’s appalling that an educational institution that trains aspiring marine technicians keeps an outdated, sexist tradition like that,” he said during an interview with Maritime Fairtrade.

Prof. Han attributed this tradition to Confucianism.  He also suggested that the labor-intensive nature of the shipping industry, where perceived male qualities such as strength, toughness and stamina are valued, could have worsen the situation.

“South Korea is a society where the male-centered Confucianist culture is deep-seated,” he said. “The culture has been long established in many industries, and the shipping industry is one of them. So-called ‘macho’ culture still exists throughout the industry, for example, frequent after-work gatherings and drinking sessions led by men. It is not an environment that welcomes women.”

He added: “The shipping business has traditionally been about sailing in the ocean, by fighting against any bad weather conditions. This is why men, who are considered to be stronger than women, have been more preferred. Many of the existing cabins and facilities on ships are built for men. If shipping companies were to hire more women, they need to pay an extra cost to build facilities for them.”

Prof. Han said it will take time to change mindset as the process involved upending long-held tradition and culture.

“I admire the committee’s decisions, but we all need to have a new mindset to solve the gender inequality problem in the industry,” he said. “We hear about gender equality or diversity, but many businesses, even educational institutions, still maintain male-centered traditions.”

He noted that there is now less demand for manual work because of automation and technology advancements and this development is good for leveling the gender discrimination playing field.

“Ports and ships are becoming smarter than before with the help of information technology,” he said. “Traits like being careful and multi-tasking abilities, other than just brute strength, are now prioritized in the field. The shipping companies also should find ways to actively hire more female talents following the changing trends.”

Han added that hiring more female talents will also be a solution to the labor shortage caused by the aging population and low birth rate in South Korea.

Source: https://maritimefairtrade.org/korean-female-maritime-students-file-complaint-against-university-for-gender-discrimination/


The United States government, through the Defense Threat Reduction Agency (DTRA), in partnership with the National Coast Watch System (NCWS), concluded July 15, its one-week review of facilities, equipment, and training programs provided to enhance the Philippines’ maritime domain awareness.

The in-depth review allowed DTRA to better understand the various aspects of the NCWS and further enhance DTRA experts’ knowledge of specific regional maritime security challenges through meetings with personnel from the Philippine Coast Guard (PCG), Coast Guard Weapons, Communications, Electronics, and Information Systems Command (CGWCEISC), and NCWS in Manila, Negros Oriental, Palawan, and Cebu.

These site visits also enabled DTRA to witness the integration and cooperation between NCWS personnel and PCG District Visayas Stations and observe the effectiveness and condition of communication and sensor equipment to guide future upgrades for each site.

During a visit to the National Coast Watch Center (NCWC) in Manila, DTRA briefed CGWCEISC Coast Guard Deputy Commander Arnoldo M. Lim on the outcomes of the visit which are expected to contribute to a more effective and capable NCWS.

“Our common goal is to achieve optimum maritime domain awareness,” NCWC Director Rear Admiral Roy Echeverria said.

“This review’s outcomes are critical because maritime domain awareness requires precise coordination and communication to execute the mission successfully. Optimal enforcement often requires cooperation between multiple agencies within the Philippine Government or foreign partners,” DTRA International Project Officer U.S. Navy Commander Bryan Kroncke said.

“DTRA understands these requirements and is proud to partner with the Philippines, through the NCWS, to provide the tools necessary to address maritime security threats.”

A long-time partner of the Philippine government, DTRA played an important supporting role in establishing the NCWS. DTRA was responsible for constructing the NCWC in Manila, Regional Coordination Centers (RCCs) in Cebu and Palawan, and many other manned and unmanned sites around the archipelago.

DTRA also worked closely with the Philippine Coast Guard (PCG) and the Coast Guard Weapons, Communications, Electronics, and Information Systems Command (CGWCEISC) to ensure that the NCWS can meet current and future maritime security challenges.

Since 2012, DTRA has provided more than $64 million to the NCWS for the acquisition of advanced equipment and the training of personnel, enabling it to become the premier maritime security entity in the Philippines.

“This successful review would not have been possible without the cooperation of NCWC and their impressive and professional personnel,” Commander Kroncke added. “DTRA looks forward to continue supporting the NCWS in their efforts to become a regional maritime security leader.”

Source: https://maritimefairtrade.org/philippines-u-s-conduct-maritime-security-review/


Germany’s SAL Heavy Lift has placed an order at Wuhu Shipyard in China for four firm plus two options of 14,600 dwt heavylift multipurpose (MPP) vessels.

The 149.9 m long ships are each set to have two 800 tonne cranes fitted, with delivery due from the second quarter of 2024 onwards, according to Clarksons Research.

Hamburg-based SAL Heavy Lift, a member of the German shipping and logistics group Harren & Partner Group and the Jumbo-SAL-Alliance, is one of the leading carriers specialised in breakbulk and project cargo, operating a fleet of 30 heavylift vessels.

Financial details surrounding the latest order have not been disclosed.

Source: https://splash247.com/sal-heavy-lift-orders-up-to-six-multipurpose-heavylift-ships-in-china/


Australian maritime authorities have banned the Liberian-flagged oil tanker AG Neptune from entering its ports for six months for multiple breaches of the Maritime Labour Convention (MLC).

The Australian Maritime Safety Authority (AMSA) inspected the 105,405 dwt LR2 tanker in the Port of Gladstone in June after receiving a complaint regarding the underpayment of seafarers and welfare issues.

During the inspection, AMSA found evidence that the employment agreement with 21 seafarers on board the ship had not been met and the crew members were collectively owed approximately A$123,000 ($85,000).

AMSA inspectors also uncovered evidence the food and drinking water were not of appropriate quality, quantity, and nutritional value. It’s also understood a seafarer was not provided with adequate medical care after being injured onboard.

The vessel, controlled by Singapore’s AG Shipping and Energy and owned by Oaktree Capital Management, was detained and its operator was directed to pay the outstanding wages and address the deficiencies.

AMSA’s executive director of operations, Michael Drake, said the seafarers were repeatedly not paid at regular intervals and two crew members had expired seafarer employment agreements.

“Australia has zero tolerance for the underpayment of crew. This type of behaviour is unethical and in contravention to the MLC. The international conventions that protect seafarers’ rights are very clear,” Drake said, adding: “Ships visiting Australian ports are on notice that if we find deliberate underpaying of crew they can expect penalties.”

Source: https://splash247.com/tanker-barred-from-entering-australia-over-crew-mistreatment/


Those involved in the global transport of grain are watching the port of Chornomorsk, southwest of Odesa, closely today, looking for signs of shipments resuming across the Black Sea.

The port is located on the northwestern shore of the Black Sea at the Sukhyi estuary, some 30 km from Odesa. It is the fourth largest port in the country, capable of handling ships up to 239 m in length with a maximum draught of 13.1 m.

All Ukrainian sea ports have been closed since Russia invaded on February 24, however preparations are now underway to get last year’s harvest moving following a deal signed in Istanbul last Friday between Russia and Ukraine to establish a safe corridor to the Bosporus.

“We believe that over the next 24 hours we will be ready to work to resume exports from our ports. We are talking about the port of Chornomorsk. It will be the first, then there will be Odesa, then the port of Pivdeny,” deputy infrastructure minister Yuriy Vaskov told a news conference on Monday, saying that a first shipment could be made this week.

“In the next two weeks, we will be technically ready to carry out grain exports from all Ukrainian ports,” Vaskov said.

The United Nations (UN) is heavily involved in the operation to move the much needed grain out of the war-torn country.

The first ships may move from the country’s Black Sea ports within a few days, said deputy UN spokesperson Farhan Haq. Details of the procedures will soon be published by a joint coordination centre in Istanbul that is liaising with the shipping industry, said Haq.

Data from shipping analytics platform Sea/ shows there are currently 10 bulk carriers marooned at the port of Chornomorsk including the Emmakris III (pictured via satellite today below) with no indications that any other ships are making their way there at the moment.

At issue remains the safety of the region, strewn with mines, and insurers’ willingness to cover ships making voyages in the high risk Black Sea. Confirmed mine clearances and trial voyages are deemed as necessary before insurers take on the risk.

Crewing issues to move out ships that have been trapped at these ports could be resolved soon. There are some 85 foreign cargo vessels sitting at Ukrainian ports, mainly abandoned with crew repatriated. To resolve the manpower shortage, Ukrainian politicians are expected to allow local seafarers to return to working on ships, having previously been forced to sign up for military service in the ongoing six-month conflict.

“While there remain some concerns around implementation, and there are a range of scenarios around how quickly exports may ramp-up, the deal [signed between Ukraine and Russia last Friday] should facilitate some increase in shipments from Ukraine, helping to free up storage space (already largely full with last year’s crops) ahead of this year’s wheat and corn harvests which are due in the coming months,” Clarksons noted in its most recent weekly report.

Source: https://splash247.com/all-eyes-on-chornomorsk-for-signs-of-grain-movement-out-of-the-black-sea/


Norway’s Kanfer Shipping, Egypt’s Leth Suez Transit and Egyptian Natural Gas Holding Company (Egas) are looking to join forces with commodity traders in order to establish a strategic and competitive liquefied natural gas (LNG) bunkering hub in the Suez Canal by 2025.

Egas has initiated the establishment of a joint venture that will charter the bunkering vessel, take care of the administration, including daily operation, and also purchase its LNG or from other sources to trade it to shipowners and the shipping industry.

Leth Agencies and Kanfer said they are now primarily seeking experienced joint venture partners within bunkering and commodity trading who can take an active part in creating a business model for this “high potential and attractive” project in Egypt.

Egypt’s natural gas resources and liquefaction facilities are said to be one of the key advantages for LNG bunkering, which puts the country in a competitive position against the key LNG bunkering hubs of the world. Egypt has LNG sources in Damietta, IDKU terminal and the FSRU stationed in Ain Sokhna that give flexibility and more opportunities for LNG bunkering in both Port Said and Suez.

“The key LNG hubs of the world must import the LNG to their terminals, which adds considerable cost to the end-users. We are confident that the JV can provide competitive prices to the key ports and hubs such as Singapore and ARA. We believe that this will attract shipowners and influence their decision-making on where they will replenish LNG,” said managing partner in Kanfer, Stig Hagen.

Egas said it is able to allocate a substantial volume of LNG to this growing segment in order to make the shipping industry, Suez Canal and Egypt greener. “This will be an important step for Egypt and attract more business to the Suez Canal,” added Admiral Osama Mounier Mohamed Rabie chairman and managing director of the Suez Canal Authority.

Kanfer noted that as more than 20,000 ships are transiting the Suez Canal annually and all ships have waiting time before the daily convoy commences, they can use the time efficiently to replenish bunkers in Port Said, Suez, or other important ports along the Egyptian Mediterranean coast.

Source: https://splash247.com/kanfer-egas-and-leth-agencies-look-to-establish-suez-lng-bunkering-hub/


Yesterday marked the second anniversary of the grounding of the Wakashio bulk carrier off Mauritius, the most high profile shipping casualty of the decade so far. Two years on, legal cases continue to mount.

A coalition of around 1,700 citizens living around where the giant vessel broke up are filing a case to the Supreme Court in Mauritius demanding the Japanese owner of the newcastlemax pay more in damages than the earlier agreed sum of $16.8m.

Latest data shows 2,321 local claims out of around 5,000 filed have been processed.

Preliminary findings of the Japan Transport Safety Board (JTSB) on the accident, which saw more than 1,000 tons of bunker fuel wash ashore when the ship broke in two, show a long list of errors. The captain hove to shore so his crew could get a wifi signal. Investigators also believe the ship did not have the right chart onboard. Moreover, the wrong chart was used and with the wrong scale as well.

Source: https://splash247.com/wakashio-claims-row-escalates/


The financial situation at the largest shipping company in the Philippines has been brought into focus after a sister firm defaulted on a $4m debt to banks last week.

Chelsea Logistics & Infrastructure Holdings is the shipping part of the sprawling Udenna Group, run by local tycoon oil trader Dennis Uy. Shipping brands controlled by Chelsea Logistics include OSV and tanker specialist Chelsea Shipping Corp, Trans-Asia Shipping Lines, Starlite Ferries, TASLI Services, SuperCat Fast Ferry Corporation, and Worklink Services.

A unit of Uy’s holding company was served with a default notice last week over a real estate development he is carrying out at Clark airport. The default has sparked concern about the scale of the debts at the group. Latest data from the end of 2020 show the group, which is also involved in casinos and telecommunications, had debts of $4.6bn, a figure that doubled in the space of three years.

The group stressed yesterday that it has resolved last week’s default issue.

Source: https://splash247.com/default-causes-alarm-for-the-largest-shipping-company-in-the-philippines/


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