UN Agencies issue plea to Governments for facilitation of crew changes

Press Release - Shipping and Freight Resource

The restrictions for crew change due to COVID-19 is unsustainable for the safety and wellbeing of over 150,000 seafarers who will require international flights to be changed over to and from the ships they work on from the middle of June 2020. These seafarers are having to extend their service onboard ships after many months at sea, unable to be replaced or repatriated after long tours of duty.

This is the message from The Secretary-General of the International Civil Aviation Organization (ICAO), the Director-General of the International Labour Organization (ILO) and the Secretary-General of the International Maritime Organization (IMO) who issued a joint statement to enlist the support of Governments for the facilitation of crew changes in ports and airports in the context of the COVID-19 pandemic.

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Containers falling off ships while at sea – who is responsible..??

containers falling

2019 was quite the year for maritime disasters with ships on fire, containers falling off ships etc.. 2020 seems to be hitting the industry in other ways which could also be considered a kind of maritime disaster..

But in what may be the first reported case of containers falling off ships in 2020, the APL England a 5,780 TEU capacity containership lost around 40 containers off the coast of New South Wales in Australia.. It has also been reported that around 74 containers are lying in a collapsed state within the stacks on board the ship..

Such incidents bring to the fore the question whether the ship register or ship registry is liable for containers falling off a ship and who is really responsible..

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The beginning of the end for the Paper Bill of Lading

My Opinion

Many things have changed in the last 30 years in shipping and freight..

Many positive new developments have taken place with things from the vintage days of shipping either obsolete to almost obsolete now..

If you look at many of the news items about the industry recently, there has been a certain buzz and intensity around the electronic bill of lading..

I am fairly confident that people entering the shipping and freight industry in the next decade will be told that 2020 was the year that saw the beginning of the end for the paper “Bill of Lading” and the year in which the switch to “Electronic Bill of Lading” (eBL) began in earnest..

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4 industry executives look into the future of global supply chains

Webinar

COVID-19 is probably the world’s most disliked word currently due to the rampant economic disruption it has wreaked on the world. All countries and all businesses around the world have been affected by this pandemic.

The supply chain industry is one industry that has also been affected severely. The industry has seen a massive drop in volumes, congestion both on land and at sea, job losses etc, although ironically this is one of the industries that has and is helping to fight this pandemic through its movement of essential goods like medical supplies, food and PPE.

At the end of March 2020, we set up a short survey sponsored by Ocean Insights to analyse the impact of the pandemic on the industry and its preparedness.

12,000 clicks of that survey and the analysis and a 95% engagement rate told us that in times of strife, people want to come together, understand what is going on and help each other out of this situation.

So, we got together a team of executives to discuss these issues in a webinar moderated by an equally celebrated and astute industry journalist.

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Don’t be caught out with an unseaworthy container – follow this checklist and avoid cargo damage

unseaworthy container

There are several reasons that cargo inside a container could damaged. It could be due to improper packing of cargo inside a container, incorrect container used for the cargo carried, but one of the main reasons for cargo damage inside a container is the condition of the container itself.

  • Wet damage due water ingress (rain, seawater etc) into the container ;
  • Wet damage due to condensation inside the container when an incorrect type of container is used like using a normal container instead of a ventilated container ;
  • Contamination due to adjacency risk or odor transfer ;
  • Infestation damage

are some of the common types of damages reported on cargoes that are packed in containers.

As a general rule, shipping lines reject these claims confirming that the gate out documents of the containers were clean at the time of release to the shipper. Insurance companies use Unseaworthiness and Unfitness Exclusion Clause stated in ICC (A) not to cover similar claims either, unless the insured can prove that he was not aware of the condition of the container at the time of loading.

Obviously, this situation causes a lot of frustration, feelings of injustice, and could result in absorbed losses among shippers globally.

So should the shipper simply accept this rejection of claims and move on?

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IMO, ITF and ILO driven intervention helps save seafarer’s life

shipping and freight news - shipping and freight resource

The COVID-19 pandemic has put seafarers around the world in precarious situations. Travel restrictions mean some cannot leave their ships, be repatriated home, or even get urgent medical assistance. Other seafarers have seen their contracts unilaterally terminated or have been quarantined on board ships for more than 14 days, without getting paid.

A large number of seafarers, as well as their spouses and family members, have reached out to IMO to share their concerns about a variety of difficult situations caused by the COVID-19 pandemic.

IMO has established an internal team to help resolve individual cases, often working alongside other organizations like the International Labour Organization (ILO), the International Transport Workers’ Federation (ITF) and the International Chamber of Shipping (ICS).

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FAK it.. A deep dive into FAK rates and how it works..

FAK Cargo - Rates - Shipping and Freight Resource

The process of global trade is simple to look at, especially if you look at it from the outside..

  • There is a buyer who needs a product ;
  • There is a seller who sells this product ;
  • They discuss and agree on a price ;
  • The buyer pays the agreed price ;
  • The seller arranges for the product to be transported to the buyer

End of trade..

Simple, right..?? Many would wish it was so..

While there are several processes and documentary flows involved in trade negotiations, there are even further processes involved in the actual movement of the goods from Point A to Point B..

One such process in the movement of goods that influences product pricing is the process of freight negotiation and freight quotation in which there are several types..

Let us take a deep dive into FAK rates and how it works..

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Understanding a freight quotation and tips to ensure an accurate quote

freight quotation

If you are in the business of trade and shipping, you would have surely heard of/dealt with freight quotations along the way..

A freight quotation is a document that outlines the charges involved in the movement of cargo from Point A to Point B..

Many customers have lost $$$ on their transactions because of unclear, incomplete or incorrect freight quotations or they do not understand what a freight quotation entails and what it covers..

Here are some tips on how to understand a freight quotation and how to ensure that you get an accurate one..

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What the Final Interpretive Rule by the FMC on demurrage and detention says

causes of demurrage and detention

The issue of what the Federal Maritime Commission (FMC) may consider in assessing whether a demurrage or detention practice is unjust or unreasonable has seemingly been put to rest with FMC having the final word..

On the 28th of April 2020, the FMC issued its final rule on its interpretation of the Shipping Act prohibition against failing to establish, observe, and enforce just and reasonable regulations and practices relating to or connected with receiving, handling, storing, or delivering property with respect to demurrage and detention..

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Panama and Suez Canals offer cost reductions for COVID-19

shipping and freight news

While the COVID-19 pandemic continues to affect and disrupt industries, jobs, lives, and economies around the world, there also seems to be a good fightback from the various industries, governments, and organisations.

Shipping lines have been offering time-sensitive cost-saving options for COVID-19 along with some relief in demurrage and detention charges etc.. Governments have been given tax breaks and business rescue packages to those most affected.

Now it seems to be the turn of the two main canals that serve the shipping and freight industry – the Panama Canal and the Suez Canal.

These canals save shipowners costs in terms of the transit, in terms of fuel costs, and also assists in reducing the carbon footprint of the transiting ships but of course both these canals have toll charges for the transit of ships.

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