Shipping and Freight Resource https://www.shippingandfreightresource.com THE definitive resource for the industry Thu, 13 Aug 2020 18:28:55 +0000 en-US hourly 1 https://wordpress.org/?v=5.5 https://i0.wp.com/www.shippingandfreightresource.com/wp-content/uploads/2017/12/cropped-SAFRES-Logo-Live.png?fit=32%2C32&ssl=1 Shipping and Freight Resource https://www.shippingandfreightresource.com 32 32 56701741 Just In Time arrival in maritime industry https://www.shippingandfreightresource.com/just-in-time-arrival-in-maritime-industry/ https://www.shippingandfreightresource.com/just-in-time-arrival-in-maritime-industry/#respond Thu, 13 Aug 2020 23:23:24 +0000 https://www.shippingandfreightresource.com/?p=115667 No, this article is not about the well-known concept of Just In Time in manufacturing..

But for interest, Toyota Motors created the Just In Time principle for their manufacturing plants based on which, they produce "only what is needed, when it is needed, and in the amount needed" eliminating waste, inconsistencies which results in improved productivity..

This JIT concept has been widely accepted and used by many other industries and has become synonymous with many supply chain processes of automotive, retail and fashion industries..

While not exactly the same, it seems this could also be applied in the maritime field especially in terms of the arrival of ships..

How..??

Go to full article >>>

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shipping and freight news - shipping and freight resourceNo, this article is not about the well-known concept of Just In Time in manufacturing..

But for interest, Toyota Motors created the Just In Time principle for their manufacturing plants based on which, they produce “only what is needed, when it is needed, and in the amount needed” eliminating waste, inconsistencies which results in improved productivity..

This JIT concept has been widely accepted and used by many other industries and has become synonymous with many supply chain processes of automotive, retail and fashion industries..

While not exactly the same, it seems this could also be applied in the maritime field especially in terms of the arrival of ships..

How..?? A bit of a background first..

 

Maritime Industry and GHG Emissions

The International Maritime Organization (IMO) which is the regulatory authority for international shipping, has been working to reduce the harmful impacts of shipping on the environment since the 1960s..

In April 2018, member states of the IMO adopted an initial strategy setting out a vision (with follow up action by 2023) to reduce GHG emissions from international shipping as soon as possible within this century..

This strategy identified various levels of ambition allowing time for the international shipping sector to adopt required technological innovation and also for the global introduction of alternative fuels and/or energy sources as these are integral to achieve the objective..

The various levels of ambition were

  1. reduce the carbon intensity of the ship through the implementation of further phases of the energy efficiency design index (EEDI) for new ships;
  2. reduce CO2 emissions per transport work, as an average across international shipping, by at least 40% by 2030, pursuing efforts towards 70% by 2050, compared to 2008; and
  3. reduce total annual GHG emissions by at least 50% by 2050 compared to 2008 while aiming for full decarbonisation

As part of IMO’s efforts to also reduce air pollution from shipping, on January 1st 2020 IMO’s MARPOL Annex VI (colloquially known as IMO2020) regulated to lower the current global limit of sulphur content in marine fuels from 3.50% to 0.50% was implemented..

 

Mandatory regulation of ship speeds

An open letter to the IMO Member States by NGOs stated that after the 2008 economic crash, reduction in the global fleet’s operational speed led to dramatic reductions in GHG emissions which then demonstrated the effectiveness of this method in helping to achieve emission reduction targets..

But studies have shown that ships are speeding up again as global demand recovers and if this trend continues, any GHG gains from slow steaming achieved over the recent years will disappear..

 

just in time arrival

 

The letter stated

The signatories to this letter unite in stressing the urgent need for shipping to make its appropriate contribution to addressing climate change.

As the initial step, we express our strong support for the IMO implementing mandatory regulation of global ship speeds differentiated across ship type and size categories.

Our preference would be to set maximum annual average speeds for container ships, and maximum absolute speeds for the remaining ship types, which take account of minimum speed requirements.

Such regulation should be implemented as soon as possible and the obligation for compliance should be placed both on shipowners and operators, including charterers.

and called on all parties at the forthcoming MEPC74 to support this move..

Although no agreement was reached at the MEPC74, during discussions many comments relating to the regulation of ship speeds were made, prominent among which was this below comment

proposals for mandatory reduction in ship speed were dubious as the claim that speed reduction would reduce GHG emissions had not be demonstrated, and could not be applied to all ships including those carrying seasonal cargoes or those required to have a cruising speed; a uniform coefficient of energy efficiency could not be applied to all categories of ships and would depend on the operational regime; mandatory application of EEDI to existing ships would lead to significant costs for the shipowner to calculate and it should be the shipowners who decided independently for each ship what measures to take;

But what has happened since then, is that a Just In Time Arrival Guide which aims to provide both port and shipping sectors with practical guidance on how to facilitate Just In Time Arrivals has been developed and released..

In a press statement, the IMO revealed further details relating to the Just In Time Arrival Guide as below..

The Guide has been developed by the Global Industry Alliance to support low carbon shipping (Low Carbon GIA), based on research and discussion amongst its membership, and the Guide documents the findings of a series of industry roundtables which brought together nearly 50 companies and organizations who are key stakeholders in the port call process.

Widely recognized as a means of increasing port efficiency and port call optimization, the successful implementation of JIT Arrivals can have a significant environmental impact through reduced GHG emissions from optimizing the ships speed to arrive just in time.

The concept is based on the ship maintaining an optimal operating speed, to arrive at the Pilot Boarding Place when the availability is assured of: 1. berth; 2. fairway; and 3. nautical services (pilots, tugs, linesmen).

JIT Arrivals also contributes to reduced time at anchorage and therefore reduced congestion in the port area. It is estimated that ships spend up to 9% of their time waiting at anchorage, which could be reduced through the implementation of JIT Arrivals.

The Guide provides a holistic approach to Just In Time Arrivals, considering contractual aspects to its implementation as well as operational. The Guide is envisaged as a useful toolkit for many stakeholders including shipowners, ship operators, charterers, ship agents, shipbrokers, port authorities, terminals, nautical and vessel service providers.

All these actors ultimately play a key role in implementing the necessary changes and facilitating the exchange of communication required to realize JIT Arrivals.

The Guide provides guidance for all shipping segments. However, it suggests that JIT Arrivals could be implemented for the container segment first, as there are fewer contractual barriers and containerships often run on more predictable schedules with shorter port to port distances.

The Guide then provides next steps on how efforts can be scaled-up, replicated and adapted, with a view to implementing JIT Arrivals across other sectors.

The Guide considers in detail the port call business process, and how the exchange of key information and data that is required for JIT Arrivals can be improved.

It highlights the need for harmonized standards, acceptable to the IMO, and their implementation by all stakeholders involved in the port call process.

The work is aligned with recent developments achieved by IMO’s Expert Group of Data Harmonization (EGDH), which agreed to include new operational data elements in the IMO Reference Data Model which relate to the concept of Just In Time Arrival.

The additional dataset is expected to be approved by IMO’s Facilitation Committee. This is seen as an important step towards facilitating the implementation of the JIT concept and will allow for digital exchange of data between the port and ship.

Such exchange is in line with resolution MEPC.323(74), which invites Member States to encourage cooperation between the shipping and port sectors to contribute to reducing GHG emissions.

Global Industry Alliance to support low carbon shipping (Low Carbon GIA)

The Low Carbon GIA is a public–private partnership with the aim to identify and develop innovative solutions to address common barriers to the uptake and implementation of energy efficiency technologies and operational measures.

The Low Carbon GIA was originally established under the framework of the GEF-UNDP-IMO Global Maritime Energy Efficiency Partnerships Project (GloMEEP Project), and since the conclusion of the GloMEEP Project at the end of 2019, the Low Carbon GIA has been operating under the framework of the IMO-Norway GreenVoyage2050 Project.

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The changing landscape of shipping in global trade – The India Perspective https://www.shippingandfreightresource.com/the-changing-landscape-of-shipping-in-global-trade-the-india-perspective/ https://www.shippingandfreightresource.com/the-changing-landscape-of-shipping-in-global-trade-the-india-perspective/#comments Wed, 12 Aug 2020 23:23:32 +0000 https://www.shippingandfreightresource.com/?p=115600 Global trade is the backbone of any country’s economy. In this article, Kuljit Anand, a highly experienced and versatile Shipping & Supply Chain Professional based in Mumbai, discusses the changing landscape of shipping in global trade from an Indian perspective.

Go to full article >>>

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Government of IndiaGood luck struck me in 1997, when I started my journey in Shipping as a Customer Service Executive, later moving into Sales, and subsequently, moved into Freight Forwarding, Procurement and Product Management for US and Canada, eventually landing the role of a General Manager with a leading global logistics company

I have witnessed, first hand, the digital evolution of the industry.

For those of you who are not aware of vintage shipping and the way it was done, there were dot matrix printers, churning out continuous sheets of bills of ladings and they were individually signed.

Slowly, there was a shift to laser printers (which were much easier to manage) and today, the entire process is online.

I remember colleagues who had joined earlier than me, engaged in telex releases and spending long hours on faxing of documents. As a customer service personnel, I had to attend calls and manually acquire and provide information on sailing schedules, ocean rates, onboard confirmations, etc. – many of these details later moved to websites and then, to IVRS.

Customs documents gradually progressed from full manual processes (manual filling of forms) to electronic application and submission of custom documents – thus reducing the time and effort related to arranging of such documents at designated sites.

Introduction of DPD has eased the congestion at CFS along with facilitating the consignee with immediate receipt of the goods.

I have seen Desktops give way to Laptops and today, we see Tablets and Smartphones which I consider to be one of the biggest and most visible technology developments.

1997 was the year that I was introduced to mobile phones – the big bulky handsets in those days replaced the VHF we used, to communicate from the office to the port or to the Captain on the ship.

From websites for information to smartphone apps for realtime information, communication channels in shipping have seen tremendous changes – more so in the last decade.

Global trade is the backbone of any country’s economy – we can say that the GDP growth of any country is directly proportional to its EXIM and shipping is one of the major contributors to this trade. This industry is never on holiday or emergency leave.

The word “global” says it all and people associated with Logistics/Shipping work according to the Timezone of their Trade.

The APL name (my previous company), is synonymous with the Transpacific Trade, was the biggest carrier to and from the USA, and USA Trade is governed by the Federal Maritime Commission (FMC).

In order to ensure a shipment was within the guidelines of FMC, given the time difference between our countries, it meant sleepless nights so that you are not delaying shipments the next day.

With the devastating 9/11 situation and increasing threats, trade to the US was to be governed by further vigilance and so, they mandated the AMS or ACD filings (that meant that all containers prior to loading from the final port of call to the USA, have to be approved by US customs to load on vessels). This approach was later adopted by Europe and then, China and recently, India.

Execution of global trade is not only about maintaining the integrity of schedule but also needs a lot of discipline. As stated above, strict adherence to the regulatory framework of the country to where the shipment belongs – as well as (this is more recent) on sustainable practices is now the norm. Climate change has forced many bodies to impose regulations for reducing the carbon-print over the oceans.

The changing landscape is also more due to changing geopolitical equations.

Traditionally, global trade was seen as exports into America with China always leading the charge. However, in 2019, the USA imposed trade restrictions on imports from China. This compelled US retailers to shift their sourcing dependency from China to newer markets in Asia. Trade benefits of this were seen by the increase in exports from Cambodia, Thailand, Malaysia and India.

As global trade becomes competitive, with customers demanding details about every aspect of their shipment, shipping lines, forwarders and all related teams need to constantly innovate and come up with new tools and techniques to streamline and smoothen the supply chain.

There are many common platforms like which give the customer access to schedules and a booking platform for multiple carriers. We also see freight platforms which are making it convenient for customers to do a comparison on rates and product offerings across a plethora of service providers.

The dynamism of the shipping industry is very obvious with technological advances as well as the forward and backward integration that have been adopted over the years.

We see global shipping lines entering into financing of shipments and during COVID-19 pandemic, expanding their offerings to even road logistics in India. For example in India, Maersk has joined hands with Jindal Stainless Ltd, to optimise the flow of containerised imports and exports between JSL Jaipur and Vizag Container Terminal.

As things stand today, a lot of manual intervention in activities is getting eliminated. The new catchphrase today is Robotics Process Automation (RPA). RPA is a powerful tool that can help to link data from various sources, reducing manual intervention, giving greater accuracy and accelerating tasks in Supply Chain, Demand Planning, Invoicing and Billing.

Presently, disruptive technologies – IoT, Blockchain transactions, the Digitalisation of the 21st century, have completely changed the way global trade was earlier done, creating the need for an up-skilled workforce.

The Make in India initiative is another attraction for global manufacturers to relocate their facilities into India. We have seen the Foxconn initiative to manufacture Apple phones in India, and it is predicted that many of the automotive giants will follow through.

As Honorable Prime Minister of India, Mr Modi said, “We have got the skills, talent and determination to do something. we want to give the world a favourable opportunity.” The 2020 initiative of “Atmanirbhar” or self-sufficiency and self-reliance is also a step forward to what India plans for the future. It is not alienation or isolation but working towards starting with self-sufficiency, moving to economies of scale and then exports.

Another recent development is the ONE Country ONE Tax structure, the implementation of GST (Goods and Services Tax) in 2017 and the inking of new trade deals with Japan including in fields such as civil aviation, trade, science and technology, and skill development, strengthening of the service and logistics sector, India is definitely making strides to enhance its global presence and the message is clear – there is a marked effort to shift from any external dependency.

India has the right mix of ecological balances to produce the right spices and seeds, technicians and engineers to get into manufacturing, artisans from generations to cater to the handicraft industry, designers for the apparel industry and an improving inland roadways and waterways infrastructure to ensure smooth sailings and global trade.

The only concern on Self Sustainability is it could upset the way global business and trade was earlier operating with factory-nations of exporting countries, having relocated factories at importing countries and thereby, contracting global trade volumes.

A recent example is that of India imposing restrictions on imports from China due to the current geopolitical tensions between the countries. The curb on imports of tyres from China is getting the German car-makers worried. At the same time, from the shipping lines perspective, there could be serious inventory (container) constraints in the coming months.

The past few years have also seen a major contraction in the number of carriers (Shipping Lines) – there were once 16 main shipping lines to today, due to the mergers and acquisitions, the number has been reduced to a “Big 6“ who control 80% of the Ocean Trade.

Lately, we are also witnessing a downsizing in the number of global forwarders through mergers and acquisitions. New players are entering the mercantile marine ventures like global e-commerce giants (Amazon), that are setting Global Terminal Operators (DP World / APLMT) into backward integration from core business digitalisation, rendering traditional business houses redundant if they are not upgradable.

If you ask for my opinion on working in Shipping, I will say that it is for those who love to work at all times to match the global time arrangements – it is for those who empathise with the customers, who consider the latter’s business as their own – to me, this only enhances your spectrum.

Visiting your customer’s factory can give you greater insights into the importance of the timeliness of deliveries and the impact on the production lines.

One also gets an understanding of the shipping workforce – the seafarers, who face all odds at sea, including piracy, weather changes and the recent pandemic-related challenges; the pandemic has also given us insights into the efforts of the port workers, who also faced all odds to keep trade moving.

Shipping provides you with a multi-national character, due to the fact that you have to deal with a “global community”. It grooms you into an individual who will have empathy towards the customer requirements at both ends – India and the Trading Partner.

It gives you many opportunities to provide out-of-the-box solutions as there are many facets to shipping and logistics than just moving cargo from one end to another (remember the impact this industry had and still has during the pandemic). It helps you develop an eye for detail in every aspect related to shipment and global trade. Empathy towards colleagues working out of the office or the mariners out at sea.

Even after over 20 years here, I can still say that I am learning.

The skill sets one attains in this dynamic industry are numerous and continuous. As I continue into forwarding even today, the learning curve does not stop. Each project makes you strive to excel and evolve, resorting to more learning.

Shipping is an industry, which is as vast and deep as the ocean, you can never proclaim yourself as having all the knowledge of this industry, as it is continuously changing and thereby, you are continuously learning.

 

Kuljit Anand is a highly experienced and versatile Shipping & Supply Chain Professional based in Mumbai, India with 20+ years of experience in the industry.

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If a bill of lading is an evidence of contract of carriage, then what is a contract of carriage..?? https://www.shippingandfreightresource.com/what-is-a-contract-of-carriage/ https://www.shippingandfreightresource.com/what-is-a-contract-of-carriage/#comments Mon, 10 Aug 2020 23:23:01 +0000 https://www.shippingandfreightresource.com/?p=115250 A Bill of Lading is one of the most important documents in the shipping cycle and comes in different forms such as Negotiable or Order Bill of Lading, Seaway Bill of Lading or Express Bill of Lading and Straight Bill of Lading with further permutations and combinations such as Port to Port Bill of Lading, Combined Transport Bill of Lading or Multimodal Bill of Lading and Through Bill of Lading ..

As most of you may know by now, a Bill of Lading has 3 basic purposes or roles..

  1. Evidence of Contract of Carriage;
  2. Receipt of Goods; and
  3. Document of Title to the goods

In its role as Evidence of Contract of Carriage, the emphasis is on the term "Evidence" because contrary to popular belief, a Bill of Lading is neither

  1. a contract between the Seller and the Buyer nor
  2. a contract of carriage between the Carrier and Shipper

So if the bill of lading is the evidence of the contract of carriage, then what is the contract of carriage..??

This is the question in the minds of many in the industry and I will try to shed some light on this issue here..

Go to full article >>>

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types of bill of lading - shipping and freight resourceA Bill of Lading is one of the most important documents in the shipping cycle and comes in different forms such as Negotiable or Order Bill of Lading, Sea Waybill or Express Bill of Lading and Straight Bill of Lading with further permutations and combinations such as Port to Port Bill of Lading, Combined Transport Bill of Lading or Multimodal Bill of Lading and Through Bill of Lading ..

As most of you may know by now, a Bill of Lading has 3 basic purposes or roles..

  1. Evidence of Contract of Carriage;
  2. Receipt of Goods; and
  3. Document of Title to the goods

In its role as Evidence of Contract of Carriage, the emphasis is on the term “Evidence” because contrary to popular belief, a Bill of Lading is neither

  1. a contract between the Seller and the Buyer nor
  2. a contract of carriage between the Carrier and Shipper

So if the bill of lading is the evidence of the contract of carriage, then what is the contract of carriage..?? This is the question in the minds of many in the industry and I will try to shed some light on this issue here..

contract of carriage and bill of lading

Cornell Law School defines a Contract as

An agreement between private parties creating mutual obligations enforceable by law.  The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality.

As per the definition of many shipping lines,

Carriage means the whole or any part of the operations and services undertaken by the Carrier in respect of the Goods covered by their Bill of Lading.

A contract of carriage may, therefore, be defined as an agreement that is concluded between a carrier and a customer for the carriage of goods from Point A to Point B by the carrier against payment of freight by the customer..

As per this definition, one of the basic elements of a contract of carriage is a valid offer and acceptance..

In the case of an ocean freight shipping transaction, an offer and acceptance can start with a freight quotation by the carrier and acceptance of the same by the customer..

The acceptance can be in the form of an email confirming the acceptance of quoted rates or a booking placed with the carrier..

Traditionally, a contract of carriage is concluded prior to the issue of a bill of lading and the contract of carriage will provide clauses like below which says that the shipment shall be subject to the terms and conditions of the Bill of Lading..

This Booking Confirmation is issued at the request and for the convenience of the Merchant, but is nevertheless subject to the terms and conditions of the Carrier’s standard long term Bill of Lading for this trade which may be viewed online or a copy can be obtained from the Carrier or its agents.

This carrier is referring specifically to a “standard long term Bill of Lading” so that it is not confused with a “short-form Bill of Lading“..

The popularly used conventions and rules covering the Carriage of Goods by Sea define Contract of Carriage as below:contract of carriage

The relevant conventions that govern the carriage can be identified by referring to Page 1 (Terms and Conditions – usually referred to as ‘Reverse or back of the bill of lading’) of any carrier’s bill of lading..

This the reason that the Bill of Lading is termed as the “Evidence of Contract of Carriage” as the Contract of Carriage was already created when the carrier made the offer and customer confirmed acceptance and cargo was loaded on board before the bill of lading was even issued..

There are a few types of contracts that are made prior to the issue of a bill of lading – Charter parties, Contracts of Carriage, Agreements to arrange carriage or simple booking notes protecting space on board a ship..

There are also cases where Bill of Lading becomes a Contract of Carriage and cases where Bills of Lading refer to the contract of carriage for the terms and conditions..

Therefore, it is very important to understand the relationship between a Contract of Carriage and Bill of Lading and the effects of these two documents on the various parties involved..

 

Is there no tangible or visible Contract of Carriage..??

The bill of lading as evidence of the contract of carriage applies to shipments where shippers ship cargo in small quantities using either containerised service or break bulk service where there are no full charters or charter parties involved..

In the case of container shipments, an email or phone call by the customer to the carrier asking for a booking to be made or a booking confirmation sent by a carrier to a customer is considered to be a Contract of Carriage made on the basis of an offer and acceptance and governed by the terms and conditions referenced in the bill of lading..

But there are also cases where the Bill of Lading is considered to be a Contract of Carriage..

Image for Charter PartyWhere charter parties are involved, especially where the shipper charters the entire ship from the owner, the bill of lading issued along with a charter party does not evidence the terms of the contract of carriage between shipowner and cargo owner because in this case, the contract between them is governed solely by the terms of the charter party..

In cases where the contract is governed by the charter party, the Bills issued to a charterer acts merely as a receipt for the cargo received and shipped and as a document of title in case the charterer decides to sell the goods while they are still in transit..

The bill of lading will, however, typically identify the charter party which is applicable to the carriage of the goods by reference to the date and place of the charter party..

There are cases where it has been established that when reference is made to a specific voyage charter party in a bill of lading, a copy of that charter party should also be presented along with the bill of lading in the event the bill of lading is endorsed to a new holder as the voyage charter party is the Contract of Carriage..

If there are no references made to the charter party in the bill of lading or vice versa, this could be considered as two separate contracts between the same parties for the carriage of the same goods which means these two could be in conflict..

As per industry experts, where there is a conflict between incorporated terms and terms printed on the bill of lading itself, then the printed term will prevail over any incorporated term..

A bill of lading becomes a contract of carriage when it is endorsed to someone who is not a party to the voyage charter as that then creates a new contract between new parties..

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Insurers share details of webinar on causation of container ship casualties https://www.shippingandfreightresource.com/insurers-share-details-of-webinar-on-causation-of-container-ship-casualties/ https://www.shippingandfreightresource.com/insurers-share-details-of-webinar-on-causation-of-container-ship-casualties/#respond Sat, 08 Aug 2020 23:23:07 +0000 https://www.shippingandfreightresource.com/?p=115606 As I wrote in my previous article about the importance of proper lashing of containers onboard ships, there is increased concern and focus on the safety of the ship, its crew and the cargo..

The concern is especially amplified considering the many maritime disasters that have happened in the last few years, some of which have been reported in detail on this site..

A few of the incidents that involved containers falling of a ship have been attributed to the lashing of containers onboard or lack thereof..

Considering the intense strain that the extent and pace of growth in container volumes has placed on a wide range of operational procedures and the physical hardware employed to handle these volumes, the Thomas Miller managed insurance mutuals, container freight specialist TT Club and protection & indemnity insurer, UK P&I Club organised a Webinar to discuss the diverse range of factors important to safe container ship operations and the security of the container stacks they carry..

Here are the details..

Go to full article >>>

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lashing containersAs mentioned in my previous article about the importance of proper lashing of containers onboard ships there is an increased concern and focus on the safety of a container ship, its crew and cargo..

This concern is amplified by the many maritime disasters that have happened in the last few years, some of which have been reported in detail on this site..

A few of the incidents that involved containers falling of a ship have been attributed to the lashing of containers onboard or lack thereof..

The intense strain that the extent and pace of growth in container volumes have placed on a wide range of operational procedures and the physical hardware employed to handle these volumes,

Container freight specialist TT Club and protection & indemnity insurer, UK P&I Club, both Thomas Miller managed insurance mutuals, organised a Webinar to discuss the diverse range of factors important to safe container ship operations and the security of the container stacks they carry..

 

Press Release - Shipping and Freight ResourceLondon, 6 August, 2020

Container Casualties – the sum of the parts’ looked in detail at the complex range of moving parts involved in these operations and concluded that each must be considered individually and collectively in order to keep collapse of stow incidents to a minimum.

In chairing the session, UK P&I Club’s Loss Prevention Director, Stuart Edmonston set the scene,

Container loss incidents attract attention. Overall, the industry loses a relatively small amount of roughly one unit per 160,000 carried but each loss has significance to a range of stakeholders, including the ship operators, cargo interests, insurers and, not least to the natural environment both at sea and on shore.

A review of the webinar proceedings (https://vimeo.com/444176895) highlights the wide range of influences that can impinge on stack collapses on ships and the potential loss of containers overboard.

Peregrine Storrs-Fox TT Club’s Risk Management Director took the lead in summarising these.

“While adverse weather and the avoidance of it through to considered design and construction of container ships are clearly vital, the ‘moving parts’ of causation range through all aspects of container operations.

TT Club is involved in all aspects of the container supply chain, but uniquely concentrates its energies on those factors considered within the Cargo Integrity campaign that have bearing on this type of casualty, such as the correct declaration of cargo mass as well as the safe packing and securing of the freight within the container, together with the container structure and maintenance.”

Ship-board factors run from proper inspection and regular maintenance of deck fittings, locking bars, twistlocks and lashing bridges, to the use of accurate data to predict parametric rolling and other ship motions, and the incidence of a so-called ‘stiff ship’ situation, at the design and construction stage.

Neil Gardiner of casualty investigators, Brookes Bell lead the discussion on this area of causation.

“In addition to taking into account the bending motions of ships in heavy seas in the design of, particularly, the larger container ships of today, operational prevention of isolated and unnecessarily high stacks coupled with high GMs should be prioritised,” advised Gardiner. “The whipping action that ships often experience can have a significant effect on high and isolated container stacks that may have been left between interim discharge/load ports to avoid restowing.”

From the legal perspective Tom Starr, Senior Claims Director at UK P&I pinpointed the difficulties in establishing causation and liability.

“The very nature of the modern container shipping industry, the very large and sophisticated ships and the involvement of numerous parties means that evidencing seaworthiness, proper stowage and the cause of a casualty is a huge challenge,” explained Starr. “Add to this the variable investigation standards of flag states in conducting official investigations; it may be unsurprising that lessons learnt for the future can be speculative.”

From a plethora of audience questions, one was noteworthy: challenging the panel to suggest their most pressing improvement to oil the moving parts driving this issue.

“It is a shame that the MARIN report Lashings@Sea was only partially followed through; there are a number of outstanding recommendations,” was Storrs-Fox’s answer.

“That study itself was in relation to ships around 10,000 TEU, so less than half the capacity of the largest now in service. A second MARIN type research, picking up the unresolved actions, and drawing on developments in technology and the other factors would be valuable in increasing safety and certainty in shipping.”

For Gardiner, more accurate data on the physical forces at play on containers stacks to be used in calculations at the ship design and construction phase and for Starr better communication between all parties. “When these casualties occur and are under investigation, it is only through more transparency about the actions of the moving parts that future incidents can be minimised,” he concluded.

 

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Sound ship recycling project in Bangladesh given the go-ahead https://www.shippingandfreightresource.com/sound-ship-recycling-project-in-bangladesh-given-the-go-ahead/ https://www.shippingandfreightresource.com/sound-ship-recycling-project-in-bangladesh-given-the-go-ahead/#respond Wed, 05 Aug 2020 10:17:16 +0000 https://www.shippingandfreightresource.com/?p=115594 The third phase of an IMO-implemented project to enhance safe and environmentally sound ship recycling in Bangladesh has been given the go-ahead, with Norway committing approximately US$1.5 million (14 million Norwegian Kroner) to support improved ship recycling in Bangladesh.

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Press Release - Shipping and Freight ResourceThe third phase of an IMO-implemented project to enhance safe and environmentally sound ship recycling in Bangladesh has been given the go-ahead, with Norway committing approximately US$1.5 million (14 million Norwegian Kroner) to support improved ship recycling in Bangladesh.

The agreement between IMO and the Government of Norway to support Phase III of the project on Safe and Environmentally Sound Ship Recycling in Bangladesh (SENSREC) was signed on 24 July 2020.

This will pave the way for Bangladesh to move forward on its path towards becoming a party to the IMO Hong Kong Convention, the treaty that will set global standards for safe and environmentally-sound ship recycling.

The Agreement follows the successful implementation of Phase I (2015-17) and Phase II (2018 – 2020) of the SENSREC Project, both mainly funded by Norway.

With the additional funding, Phase III of the project will be implemented over 18 months, starting from November 2020.

SENSREC Phase III will focus on improving ship recycling standards in compliance with the Hong Kong Convention and enhancing capacity building for the Government of Bangladesh on legislation and knowledge management.

ship recycling

Specific technical assistance will be provided to the Government of Bangladesh to establish a facility for treatment, storage and disposal of hazardous wastes. There will also be a focus on evaluating the impact of Covid-19 on the ship recycling industry in Bangladesh.

The Ambassador of Norway to Bangladesh, Ms Sidsel Bleken, said that the SENSREC Project had already achieved significant progress, thanks to the commitment of the Government authorities as well as the ship-recycling industry of Bangladesh.

Norway is pleased to extend its support to Bangladesh and our thanks go to IMO for their important role in this Project. Through IMO, we will continue to support the authorities, the industry, and other stakeholders in strengthening their efforts to develop Bangladesh’s ship-recycling industry and the country’s economy. We hope to see more yards complying with the requirements of the Hong Kong Convention, so that Bangladesh can be ready to accede to the Convention in the soonest possible time,” Her Excellency Ms Bleken said.

The Agreement was signed by the Her Excellency Ms. Bleken and IMO Secretary-General Mr. Kitack Lim.

Thanking the Government of Norway for their generous contribution, Mr. Lim said, “The continuation of this project will greatly enhance national capacities for Bangladesh for safe and environmentally sound recycling of ships.

The success of this Phase III of the project will be seen in the crucial technical assistance role that will support the goals of Bangladesh to establish a facility for treatment, storage and disposal of hazardous wastes and ultimately support its aim to accede to the Hong Kong Convention.”

 

The Hong Kong Convention

The Hong Kong Convention1 covers the design, construction, operation and maintenance of ships to ensure they can be recycled safely and in an environment-friendly way at the end of their lives.

It also deals with how ships should be prepared for their final voyage to a recycling facility, without compromising their safety or operational efficiency.

Under the Hong Kong Convention, ships sent for recycling are required to carry an inventory of all hazardous materials on board.

Ship recycling facilities are required to provide a “Ship Recycling Plan”, specifying how each ship will be recycled, based on its particular characteristics and its inventory of hazardous materials.

The treaty will enter into force 24 months after three separate criteria have been met. It must be ratified by 15 States – but these States must represent 40% of world merchant shipping by gross tonnage, and a combined maximum annual ship recycling volume (during the preceding 10 years) of not less than 3% of their combined gross tonnage.

The number of States required has now been reached, but further tonnage and recycling volumes are needed before the convention can enter into force.

The top five ship recycling countries in the world, between them, accounting for more than 98% of all ship recycling by gross tonnage3, are Bangladesh, China, India, Pakistan and Turkey (of these, two are already Parties to the Hong Kong Convention – India and Turkey).

The Contracting States as at 28/07/2020 are: Belgium, Congo, Denmark, Estonia, France, Germany, Ghana, India, Japan, Malta, Netherlands, Norway, Panama, Serbia and Turkey. They between them represent nearly 30% of world merchant shipping tonnage.

More information can be found here.

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