Cyber-attacks on one of the world’s busiest ports have nearly doubled since the start of the Covid pandemic.

The number of monthly attacks targeting the Port of Los Angeles is now around 40 million, the port’s executive director Gene Seroka told the BBC.

Los Angeles is the busiest port in the western hemisphere, handling more than $250bn (£210bn) of cargo every year.

The threats are believed to come mainly from Europe and Russia, and aim to disrupt the US economy, Mr Seroka said.

“Our intelligence shows the threats are coming from Russia and parts of Europe. We have to stay steps ahead of those who want to hurt international commerce,” he told the BBC’s World Service.

Seaports move billions of dollars in goods every year, making them a unique target for cyber-criminals.

They face daily ransomware, malware, spear phishing and credential harvesting attacks, with the aim of causing as much disruption as possible and slowing down economies.

Teaming up with the FBI
The Port of Los Angeles is now working with the Federal Bureau of Investigation’s cyber-crime team to prevent attacks and improve cyber-security.

The port has invested millions of dollars in cyber-protection, developing one of the world’s first Cyber Resilience Centres, which is part of the FBI.

“We must take every precaution against potential cyber-incidents, particularly those that could threaten or disrupt the flow of cargo,” said Mr Seroka.

The Cyber Resilience Centre provides enhanced intelligence gathering and heightened protection against cyber-threats within the maritime supply chain.

It is a hub for the port to receive, analyse and share information with those who operate on the dock, such as cargo handlers and shipping lines.

Supply chain blockages
During the pandemic global supply chains slowed down as lockdowns closed factories and workers were forced to stay at home.

The strain on supply chains has since eased, Mr Seroka said. In January 2022 there were 109 container ships queuing for more than two days to get into the Port of Los Angeles. Today there are around 20 waiting to dock.

But Mr Seroka believes the blockages won’t clear completely until 2023. “There’s so much cargo coming in and not enough space,” he said.

“The past two years have proven the vital role that ports hold to our nation’s critical infrastructure, supply chains and economy. It’s paramount we keep the systems as secure as possible,” he added.
Source: BBC

 


The Baltic Exchange’s main sea freight index slipped on Monday over declining rates in the capesize vessel segment.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, was down 32 points, or 1.5%, at 2,114 points.

The capesize index lost 100 points, or 3.7%, to 2,596 points, its lowest since July 11.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $836 at $21,526.

Meanwhile, iron ore futures soared, extending a rally spurred by hopes of an economic rebound for top steel producer and consumer China in the third quarter, and support for the country’s troubled property sector.

The panamax index was up for the fifth straight session, gaining 7 points, or 0.33%, at a two-week high of 2,100 points.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, increased by $62 to $18,900.

Top exporter Ukraine’s grain shipments in the first 24 days of July, the first month of the 2022/23 season, were down 39.5% year on year at 1.08 million tonnes, the agriculture ministry said.

However, Ukraine said it hoped a U.N.-brokered deal aimed at easing global food shortages by resuming grain exports from the Black Sea region would start being implemented this week.

The supramax index fell by 1 point to 2,079 points, snapping four sessions of gains.
Source: Reuters (Reporting by Deep Vakil in Bengaluru; Editing by Shailesh Kuber)


The dry bulk market could be entering a more bearish period in the coming weeks. In its latest weekly report, shipbroker Allied Shipbroking said that “it is without question that the dry bulk sector has been on a gloomy path these past few months or so, with the main benchmark freight figures being under pressure and losing considerable ground. On the other hand, even during a booming market regime, it is still normal to expect to see time intervals in which the market corrects. The important question to answer is as to when a periodical correction means more than the very word “periodical” denotes”.

 

According to Mr. Thomas Chasapis, Allied’s Quantitative Analyst, “when the market is feeling considerable pressure, downside risk is automatically on the rise as well. The graph below tries to give an indication of this with the use of the technical indicator Ulcer Index (UI). UI captures the depth and the duration in the correction of a price from previous highs. The heftier a correction is and the longer it takes to recover, the higher this metric is sustained. It is considered “superior” to other volatility metrics, given that it accounts only for negative volatility and increases in value through price depreciation”.

Chasapis added that “other classic statistical metrics like standard deviation can appear more confusing from time to time when trying to capture a rising risk environment (higher volatility), when the market can actually be quite bullish. Getting back to the graph, we calculate the UI for all benchmark dry bulk indices, and we extended the analysis from the start of the previous year. It is not the first time that this indicator prevails inflated for all separate size segments, but at this point, we have relatively stronger signs of downward resistance, with the market seemingly unable to recover, while constantly lagging well behind its moving 14-day highest value”.

Source: Allied Shipbroking

“The above technical analysis does not suffice to argue any bearish momentum within the dry bulk market. It is more of an indication to understand the fact that we may well be entering into a riskier market regime in the near term. At the same time, it is worth mentioning that what is shown by this graph is that this won’t be a privilege unique to the bigger sizes. Moreover, as the cost of borrowing is already in a transitional period towards higher levels, does it not automatically mean that the market’s risk has become more ‘expensive’ as well? “, Allied’s analyst concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide


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/


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/


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/


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/


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