Archives For shipping container

Customs officers in Hong Kong seized 7.2 tons of ivory from a shipping container arriving from Malaysia on July 4.

The seizure was made at the Kwai Chung Customhouse Cargo Examination Compound, and once its weight is confirmed, the haul could become a record seizure – the largest ever recorded in the Elephant Trade Information System (ETIS) database – narrowly surpassing the 7.138 tons seized in Singapore in 2002.

According to a government media release, the consignment was declared as “frozen fish” and the tusks hidden beneath frozen fish cartons.

The massive seizure underlines both Malaysia’s and Hong Kong’s role as key smuggling hubs in the international trafficking of ivory. Three people – a man and two women were arrested in connection with the seizure.

The ETIS database is managed by the NGO TRAFFIC on behalf of Parties to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). It contains tens of thousands of elephant-product seizure records dating back to 1989.

Under CITES guidelines, any seizure of 500kg or more is considered indicative of the involvement of organized crime. All parties making such large-scale seizures are obliged to examine them forensically as part of follow-up investigations.

Dr Yannick Kuehl, TRAFFIC’s Regional Director for East Asia, said, “No doubt Hong Kong’s geographic location coupled with the currently relatively lenient penalties in place for anyone convicted of wildlife crime are reasons behind the shipment coming through the port. The case for increasing penalties has never been stronger.”

Hong Kong is currently reviewing its legislation regarding wildlife crime and the Legislative Council is currently debating plans to phase out the territory’s domestic ivory trade over the next five years, a timescale that is out of step with neighboring mainland China which intends to end its domestic ivory trade by the end of 2017. Source: Maritime Executive/TRAFFIC/HongKong Government – Photo’s: Alex Hofford/WildAid.

Blockchain

T-Mining is currently working on a pilot project that will make container handling in the port of Antwerp more efficient and secure. Using blockchain technology, processes that involve several parties – carriers, terminals, forwarders, hauliers, drivers, shippers etc. – are securely digitised without any central middleman being involved.

Just getting a container from point A to point B frequently involves more than 30 different parties, with an average of 200 interactions between them. Given that many of these interactions are carried out by e-mail, phone and even (still, nowadays) by fax, paperwork accounts for up to half of the cost of container transport.

“We aim to do something about this,” says Nico Wauters, CEO of T-Mining. This Antwerp start-up has developed a solution for a recognised problem in the port. When a container arrives in the port it is collected from the terminal by a truck driver or shipper. To ensure that the right person picks up the right container a PIN code is used. However, the PIN code is transmitted via a number of parties, which of course is not without risk. Somebody with bad intentions can simply copy the PIN code, which naturally can cause great problems.

“We have developed a very secure solution for this,” explains Nico Wauters. “Currently, when we want to transfer a valuable object we generally make use of a trusted intermediary to carry out the transfer. For instance, when you want to sell a house the notary not only carries out all the paperwork but also ensures that the money lands safely in your bank account while the buyer receives full title to the property, without any unpleasant surprises for either party. But this intermediary naturally does not work for free, and furthermore the additional step causes extra delay.”

The blockchain solution overcomes these issues, permitting safer and faster transfer of valuable objects, fully digitally and without a middleman. “With our blockchain platform the right truck driver is given clearance to collect a particular container, without any possibility of the process being intercepted. Furthermore our blockchain platform uses a distributed network, so that the transaction can go ahead only if there is consensus among all participating parties, thus excluding any attempts at fraud or undesired manipulations.”

A pilot project is currently running in the port of Antwerp with a limited number of parties. “We want to test whether it all works smoothly in practice,” says Nico Wauters. “Together with PSA, MSC, a forwarder and a transporter, we ensure secure handling of the first containers on our blockchain platform. Thanks to the City of Antwerp we even have an office in Singapore where we are working hard to introduce our solution there too. Our ambition is to serve the first paying customers by the end of this year,” Nico Wauters concludes. Source: Port of Antwerp

For thousands of years, maritime authorities have relied on tip-offs, patrols, investigations and random inspections to find smuggled goods. Today they have a variety of additional methods at their disposal, and one of the most promising is also the most intuitive: looking at every vessel’s historical behavior.

Israeli firm Windward was founded to collect, vet and analyze AIS, along with a variety of other commercial data sources on maritime traffic. Just having access to the massive quantity of data that the world’s fleet generates is not sufficient: it could take weeks for a human operator to sift through the records of just a few hundred ships, and law enforcement agencies need actionable intelligence in real time.

This is where Windward excels. Its system uses proprietary algorithms to find specific ships that may be involved in illicit activity based on a number of “red flag” behaviors. Loitering just off of a village or an uninhabited bay may be a sign that a vessel is engaged in tendering goods or passengers from shore. Similarly, when a ship turns off its AIS transmitter or changes its AIS reporting name near smuggling hotspots, it may be taking on contraband. And a ship with a well-established trading pattern that suddenly heads to a troubled region may be engaged in a new (and not entirely legitimate) line of business.

These behaviors are obvious when Ami Daniel, Windward’s CEO and co-founder, walks through a few examples in a live presentation. The novel development isn’t the signal pattern – it is the fact that his firm can automatically find it, without knowing which ships to examine in advance. It doesn’t matter if a vessel is operated by a reputable company or a known North Korean front – Windward’s system analyzes records for the entire fleet, and if a vessel looks suspicious, it gets flagged.

A few cases illustrate the potential of this approach. In Windward’s best-known example, a Cyprus-flagged reefer with a history of trading between Northern Europe and West Africa headed to a port in Ukraine – well outside its normal pattern. It returned towards the Strait of Gibraltar, but before passing through to the Atlantic, it lingered off of Algeria and Morocco for 12 days. It turned its AIS on and off multiple times in busy shipping lanes during this loitering period. Windward notes that this region is at high risk for the smuggling of arms and narcotics.

After passing through the Strait of Gibraltar, the vessel headed north towards Scotland, where it arrived on January 14. It loitered again for half a day in a small bay off the isle of Islay – an area without a port for a 4,200 dwt ship. Windward’s system flagged this behavior as a potential sign of a smuggling drop-off, though it is also possible that the ship anchored up to wait out foul weather or to time its arrival.

This particular case made headlines in the UK when Windward told media that hundreds of vessels with suspicious records entered British waters in the first two months of 2017. The story was picked up by the Global Mail, Sky News and the Daily Record, and Scottish politicians called on the authorities to look into the matter: “This requires investigation, certainly by the police and, I suspect, by the security authorities to clarify what’s going on,” said member of Scottish Parliament Mike Russell.

These results capture attention, and Daniel says that the firm is marketing the system’s abilities to multiple government agencies. The kind of smuggling/trafficking behavior that it can identify is often associated with organized crime and the financing of terrorism, so it has a great deal of appeal for intelligence applications as well as maritime security / maritime domain awareness. He suggests that for now, commercial users (traders, brokers and others) are not a target market, nor does he foresee branching out into similar offerings for trucking or air freight. Windward does one thing well – very well – and Daniel expects that it will invest in its core strength for some time to come. Original article published in The Maritime Executive.

International trading involves many participants all around the globe. These participants may not necessarily have the needed trust of all parties, especially at the initial stages, when newcomers join the trade. Blockchain can provide the needed trust to capture key transaction activities as immutable records, as well as storing and sharing encrypted legal and financial documents.

Visibility of transaction records and documents are tightly controlled by blockchain, permitting sharing only among entrusted and allowed parties. In this demo, IBM demonstrates how blockchain may support such an application.

The blockchain solution being built by the two companies is expected to be made available to the ocean shipping industry later this year, according to a joint statement from International Business Machines Corp and the container unit of A.P. Moller-Maersk. It would help manage and track the paper trail of tens of millions of shipping containers globally by digitizing the supply chain process from end to end.

This will enhance transparency and make the sharing of information among trading partners more secure.

When adopted at scale, the solution based on the Linux Foundation’s open source Hyperledger platform has the potential to save the industry billions of dollars, the companies said.

“Working closely with Maersk for years, we’ve long understood the challenges facing the supply chain and logistics industry and quickly recognized the opportunity for blockchain to provide massive savings when used broadly across the ocean shipping industry ecosystem,” said Bridget van Kralingen, senior vice president, industry platforms, at IBM.

IBM and Maersk intend to work with a network of shippers, freight forwarders, ocean carriers, ports and customs authorities to build the new global trade digitization product, the companies said.

The product is also designed to help reduce or eliminate fraud and errors and minimize the time products spend in the transit and shipping process.

For instance, Maersk found that in 2014, just a simple shipment of refrigerated goods from East Africa to Europe can go through nearly 30 people and organizations, including more than 200 different communications among them.

The new blockchain solution would enable the real-time exchange of original supply chain transactions and documents through a digital infrastructure that connects the participants within the network, according to IBM and Maersk. Source: Reuters

containeryard

The U.S. National Retail Federation (NRF) and a coalition representing retailers, manufacturers, truckers, transportation intermediaries and other business groups has asked the Federal Maritime Commission to set new policy preventing terminal operators and ocean carriers from charging unfair fees when uncontrollable incidents such as storms and strikes keep cargo from being picked up from ports on time.

“Recent events involving port congestion, labor strife, an ocean carrier bankruptcy, inclement weather and other disruption events have had crippling effects on U.S. ports and the stakeholders who rely on the efficient movement of goods,” the 25-member Coalition for Fair Port Practices said in a petition filed with the commission. During the incidents, storage and use charges have continued “even though shippers, consignees and drayage providers had no control over the events that caused the ports to be inaccessible and prevented them from retrieving their cargo or returning equipment.”

Cargo owners and trucking companies are normally given a certain number of free days to pick up containers of imported goods from ports after they have been unloaded from ships. After that, they can be charged demurrage, a fee intended to ensure that containers are removed quickly and efficiently. In addition, detention and per diem fees can be charged if the cargo containers and chassis used to haul them are not returned within a specified time.

That system was thrown into disarray this fall when the bankruptcy of South Korea’s Hanjin Shipping left cargo owners unable to pick up containers on time and later prevented them from returning containers and chassis, says the NRF.

Delays have also occurred during other port disruptions cited in the petition, including the 2014-2015 labor slowdown at West Coast ports and Hurricane Sandy on the East Coast in 2012.

The coalition said millions of dollars in fees have been charged during such incidents:

  • A retailer was charged $80,000 because it took up to nine days to retrieve containers when only four free days were allowed.
  • A trucking company was charged $1.2 million after long lines at New York and New Jersey ports kept it from returning containers on time.
  • A transportation company was charged $1.25 million after containers it tried to return were turned away at West Coast ports. The amount was eventually reduced to $250,000 but only a year after the company was forced to pay the fees upfront.

“Shippers, consignees and drayage providers do not create and cannot avoid these events,” the group said. “They cannot control the weather. They do not choose the terminals that carriers use. They are not parties to port labor collective bargaining agreements.”

The federal Shipping Act requires that the fees and related practices be “just and reasonable.” The petition asks the FMC to adopt a policy that would require free days to be extended during times of port congestion, weather-related events, port disruptions or delays caused by government actions or requirements beyond the control of the parties picking up or returning containers. Demurrage and similar fees charged during such incidents would be declared “unreasonable.” In some cases, “compensatory” fees could be charged provided that they did not exceed actual storage or equipment use costs. The proposed policy would apply to ocean carriers and marine terminal operators. Source: Maritime Executive

containersThe following was penned by a long-time customs acquaintance Aires Nunes da Costa, who has kindly permitted me to post his article titled “Why unpack containers in Durban if you can have containers at your door step in Gauteng within 24 hours?” which first appeared on LinkedIN.

The Tambo Springs initiative involves creating a significantly improved intermodal capability for the movement of freight to and from Gauteng. This is to be achieved by the operational twinning of the inland port with other seaport, inland and cross border locations. The connectivity i.r.o. these twinned locations is achieved via sea, rail, road and air linkages, ideally involving seamless movement of freight between modes.

The Tambo Springs development incorporates a next generation inland port with a state of the art rail terminal facility designed to be developed in phases, with an ultimate capacity of 1 m TEU’S p.a., as well as, a sprinter freight land bridge.

The key elements are as follows:-

Direct Traditional Rail Link to Durban Harbour

The Tambo Springs Terminal will be linked to the Durban Container Terminal which currently handles the bulk of all container freight moving in and out of Gauteng, via an efficient rail service. The fixed rail infrastructure for this link already exists to the Tambo Springs site. This state of the art Terminal facility is designed to significantly increase the rail capacity for container freight to/from Gauteng, while simultaneously reducing real costs and significantly improving levels of service via:

  • a new technology “greenfields” terminal being more efficient;
  • a reduction of congestion issues in and out of the new inland port due to its location;
    improved efficiency of port operations;
  • having the facility serviced by improved rolling stock commissioned by Transnet;
    Sprinter Freight Rail Link to Ngqura Harbour In the Coega IDZ (Port Elizabeth)

In addition to the direct rail link with Durban harbour, the initial phase of this programme involves the twinning of the Coega IDZ and its adjoining Deep Water Container Terminal at the Port of Ngqura with Tambo Springs. This is to be undertaken by means of a Public Private Partnership type structure which utilizes the Transnet capability between the two locations as well as the participation of SARS.

The service level to be achieved for the movement of the freight via this land bridge has a goal of “24 hours” as opposed to the current 3 to 5 days service level achieved at City Deep. This is to be achieved by capitalizing on the creation of high efficiency intermodal activities integrated with the port functions and feeder network.

Truck Freight Movement

The Tambo Springs Inland Port will function as a multimodal logistics gateway serving the Gauteng Catchment area. It therefore provides ease of movement between individual transportation modes in addition to facilitating manufacturing, warehousing and distribution activities.

The operational plan is therefore designed to accommodate long distance (FTL) truck traffic in addition to regional (LTL) freight movement.

The principle truck markets the inland port will attract include:

  • FTL long distance movement of time sensitive freight from other ports or metropolitan areas. This includes both cross docking and stuffing/de-stuffing facilities within the inland port;
  • Rail/truck (intermodal) movement where product utilizing the rail links is transferred to truck in order to each its final destination;
  • LTL truck and Van short distance movement of freight, including a regional metropolitan distribution function.

The next generation inland port therefore capitalizes both on rail and road transportation modes with a focus on increased movement of long distance freight by sprinter rail.

Intermodal Movement

In order to achieve seamless intermodal movement of freight between sea, rail, road and air transport, it is essential to link Tambo Springs with other inland port and hub locations. The creation of such a twinned Inland Port Network provides a means to effectively participate in the Global Supply Chain in a manner which optimizes both existing and new facilities to enhance capacity. Hence, for example, Tambo Springs would be linked to City Deep via rail and road linkages and to other hub locations in Gauteng and elsewhere.

A principle element of this approach is to create an efficient transportation service between all the individual entry/exit ports providing an improved level of service over and above that provided by a traditional network. The key to this is to rethink existing processes with a focus on efficiency savings in terms of the inbound and outbound process flow at Tambo Springs. This has been incorporated into the operational concept and addresses both operational and customs and regulatory efficiency issues as part of the supply chain. Source: Aires Nunes da Costa (Customs & Excise Specialist)

Panama inaugurated the long-awaited Panama Canal expansion on Sunday, 26 June 2016 with the ceremonial transit of the China Shipping Panama through the new neo-panamax Agua Clara locks on the Atlantic side.

The $5.25 billion Expansion Program is the largest improvement project in the Canal’s 102-year history, and included the construction of new, larger locks on both the Pacific and the Atlantic sides and dredging of more than 150 million cubic meters of material, creating a second lane of traffic and doubling the capacity of the waterway.

Despite challenges facing the global shipping industry, the larger canal is anticipated to open up new routes, services, and market segments, such as liquefied natural gas (LNG). Source: gCaptain.com – Pictures courtesy of Panama Canal Authority

MCA LogoThe UK Maritime and Coastguard Agency has dropped the tolerances it was considering for weighing equipment used to weigh a container for the new SOLAS VGM requirement.

One of the issues that has been holding some terminals back from investing in equipment to weigh containers is the lack of any clarity over the accuracy standards that equipment must meet. SOLAS says only that equipment must “meet the applicable accuracy standards and requirements of the State in which the equipment is being used”.

The UK Maritime and Coastguard Agency (MCA) had been consulting on a proposal for two weighing tolerances for equipment used to generate a Verified Gross Mass (VGM) using method 1 (weighing the container):

  • +/- 400kg up to 20T then +/- 2%
  • +/- 300kg up to 15T then +/- 2%

Sources involved in the process say some port operators and weighing equipment suppliers had expressed concerns these tolerances were unreasonable. MCA has this week issued new guidance on the VGM requirement, including a procedure for applying for approval to use Method 2 (weighing cargo items and calculating the total weight of a container).

The MCA has dropped any requirement for a specific accuracy level, opting instead to set an enforcement level. It stated: “The verified gross mass should be as accurate as reasonably practical taking into account methodology and operational variances. The MCA has set an enforcement tolerance of ±5% or ±500kg, whichever is the greater value to avoid disruption within the supply chain, however this value is for enforcer’s guidance only and it is the shipper’s responsibility to be as accurate as possible”.

Method 1 equipment includes “weighbridges, or lifting equipment fitted with load cells, or other approved weighing equipment to determine a loaded container’s Verified Gross Mass (VGM)”. Unlike other jurisdictions the MCA has not stated that it requires two 20ft containers on a trailer to be weighed separately, or said anything about how the weight of the truck and trailer is to be obtained. It stated only that “Calculations may be used as part of the method 1 process”, so these items do not in fact need to be weighed as part of the VGM process.

With regard to certification and enforcement, the MCA states: “ Method 1 users are required, on request by the MCA or other body, to provide both of the following:

  • Evidence that the weighing equipment has been supplied/maintained for the purpose of determining the VGM of a loaded container and is capable of producing a ticket (electronic record). Each ticket must include the container number, the VGM of the container, and the procedures for, and records of, any calculations which have been made. If this information is produced as an electronic record, it is essential that it is able to be produced without delay as a paper document.
  • Records kept of maintenance and verification (calibration) procedures, including any corrective / remedial actions taken.

The full guidance and other documentation can be found at this link. Source: WorldCargoNews

PSA Singapore Terminals

Two new container berths capable of serving large container ships will be operated by COSCO-PSA Terminal in Singapore in 2017.

COSCO-PSA Terminal (CPT), a joint venture company formed by COSCO Pacific Limited and PSA Corporation, is investing in the new berths, and will move from its current two-berth terminal to three new mega berths as part of a Pasir Panjang Terminal expansion project.

A few of the planned 15 berths in Phases 3 and 4 of the Pasir Panjang Terminal are already operational. The rest of the S$3.5 billion ($2.6 billion) project is scheduled to be completed by the end of 2017, pushing Singapore’s annual container handling capacity to 50 million TEUs.

All the new berths at Pasir Panjang Terminal are designed to be able to handle container ships with capacities larger than 10,000 TEUs.

PSA Singapore currently operates 57 berths at its container terminals in Tanjong Pagar, Keppel, Brani and Pasir Panjang. The terminals at Pasir Panjang are PSA’s most advanced. The berths at Pasir Panjang Phases 3 and 4 are up to 18 meters deep and equipped with quay cranes able to reach across 24 rows of containers to serve the world’s largest container ships. They also feature the latest port innovations such as a zero-emission, fully-automated electric yard crane system.

Singapore is the world’s second busiest container port after Shanghai in China, which took over Singapore in 2010. Source: Maritime Executive

World Cargo News reports  – While the Coast Guard maintains the US will be compliant with the SOLAS amendment on container weighing, US Shippers are interpreting guidance from US Coast Guard Rear Admiral Paul Thomas as confirmation they can continue with existing practice to declare the weight of their goods rather than weigh containers.

Following to the fallout over his comments at the Trans Pacific Maritime conference in Long Beach this month, Rear Admiral’s Thomas issued further guidance on the SOLAS amendment that requires containers to have a Verified Gross Mass before they are loaded on a vessel from 1 July.

The US Coast Guard (USCG) has since confirmed that SOLAS is binding on US shippers, but stated that how shippers work with carriers to obtain and report a VGM is a commercial matter for those parties to determine.

Some US shippers, including the US Agriculture Transport Coalition (ATC), have made it known it is not practical for them to supply, and be responsible for anything other than the weight of the cargo, as they do today. The Coast Guard appears to be facilitating this approach, and the ATC last month told its members it “received confirmation” from USCG that shippers can continue to verify the weight of the goods they own, while lines remain responsible for the weight of the container.

On March 14 some 49 groups and associations representing US primary producers, manufacturers, importers and shipper groups wrote to Coast Guard Commandant Paul Zukunft saying they support its “interpretation” of the SOLAS amendment, as presented by Rear Admiral Tomas in his blog.

“Specifically, we support the Admiral’s view that if the shipper provides the cargo mass weight, to which the carrier adds the weight of the container, then the intent of SOLAS is achieved. In fact, several ocean carrier executives have advised that such a process would be practical.”

Some carriers, however, have rightly pointed out that this does not meet the SOLAS requirement, as the letter then notes: “The reason for our concern, and appreciation of Admiral Thomas’ guidance, is that some ocean carriers, citing this SOLAS amendment, are demanding that the shipper certify both the cargo and the carrier’s container. This is contrary to the practical realities of our US export maritime commerce and fundamentally flawed conceptually. (It would be similar to demanding that a soybean shipper certify to the railroad the weight of the railcar itself.)”

The groups maintain that they “fully understand our responsibility to accurately disclose the weights of cargo tendered to the ocean carriers. In fact, advance submission of accurate gross cargo weight is a well-established practice mandated by US Customs and Border Protection, by numerous intermodal (trucking and rail) weight requirements, and presently found in Shipper’s Instructions to carriers to meet so-called “no doc, no load” cargo cutoffs for entry into marine terminals. In addition, an Occupational Safety and Health Administration (OSHA) Rule, in place since 1983, assures that the accurate weight of combined cargo and container be known to the carrier prior to loading.”

Despite SOLAS, the shipper groups do not see a need to weigh individual containers and suggest other solutions can be found: “for instance, shippers are willing to provide to their carriers an annual written confirmation in the service contract (or other mutually-agreed document) that our cargo weights are accurate”.

One of the major concerns is liability, in particular the requirement that someone now sign a VGM document. Shippers say carrier demands for this are being rejected. Many US Corporations will not allow their employee to certify the weight of and assume liability for equipment that the corporation does not own, manage, control and in fact may not even see.”

The Coast Guard, for its part, does not appear to be pushing the issue of current practice not meeting the new SOLAS requirements.

In his testimony at the US House Committee on Transport and Infrastructure’s hearing for the Coast Guard’s 2017 Budget request Admiral Paul F. Zukunft, Commandant, USG made the following statement: “Foreign carriers are pretty much all in compliance today. When I was at the container terminal in Long Beach a month and half ago all the containers that come on to that yard are already weighed before they go in. So I am not seeing a sky is falling panacea playing out around us, but we need to make sure that there aren’t unintended consequences. That is why we are continuing to reach out with the many exporters…that container shows up on a manifest before it is loaded on a ship. What is needed is that final weight, but by and large most of these manifests already have that weight filled in in that column.”

The US, it appears, intends to continue to follow current practice where the shipper provides a declared weight of the cargo, leaving it to the carrier to determine the final weight of the container. Source: World Cargo News

MarEx APM Tangier 2016Maritime Executive reports that the world’s third largest port operator APM Terminals said it will invest 758 million euros ($858.3 million) in a new transhipment terminal in Tangier, Morocco, that will be the first automated terminal in Africa.

APM Terminals, a unit of Denmark’s shipping and oil group A.P. Moller-Maersk, has been named as the operator of the new container transshipment terminal at the Tanger Med 2 port complex. The group already operates the APM Terminals Tangier facility at Tanger Med 1 port, which started operations in July of 2007 and handled 1.7 million TEUs in 2015. The new terminal will have annual capacity of five million TEUs.

Maersk Line, also a part A.P. Moller-Maersk, will be an important customer of the new terminal. The new terminal is scheduled to open in 2019, under the terms of a 30-year concession agreement with the Tanger Med Special Agency (TMSA), which has responsibility for the development and management of the Tanger Med port complex.

The Tanger-Med port complex is strategically located on Africa’s northwest coast near the mouth of the Mediterranean Sea on the Strait of Gibraltar, where the Atlantic Ocean and Mediterranean Sea meet. Tanger-Med is the second-busiest container port on the African continent after Port Said, Egypt. The new APM Terminals MedPort Tangier terminal will increase the port’s total annual throughput capacity to over nine million TEUs.

APM Terminals MedPort Tangier will have up to 2,000 meters of quay length and will feature the technology pioneered at the APM Terminals Maasvlakte II Rotterdam terminal which opened in 2015.

For APM Terminals the Western Mediterranean is an important market. APM Terminals Algeciras, on the Spanish side of the Strait of Gibraltar, operates in tandem with APM Terminals Tangier as an integrated Western Mediterranean transshipment hub. APM Terminals Algeciras handled more than 3.5 million TEUs in 2015, and has completed a major upgrading of its cranes and quay infrastructure to accommodate ultra-large container Ships of 18,000 TEU capacity and above.

The location of the Tangier and Algeciras facilities provide a natural transshipment location for cargoes moving on vessels to and from Africa from Europe and the Far East on the primary East/West shipping route through the Mediterranean Sea; over 200 cargo vessels pass through the Strait of Gibraltar daily on major liner services linking Asia, Europe, the Americas and Africa.

While African ports at present account for only 4.5 percent of global port throughput (including transshipment cargoes), the United Nations 2015 World Population Prospects Report projects that more than half of the world’s population growth between 2015 and 2050 will occur in Africa, with the African population more than doubling from 1.1 billion to 2.4 billion over the next three and a half decades.

Significant investment in port and transportation infrastructure will be required to meet the anticipated needs of the expanding African population and corresponding economic growth.

APM Terminals is the largest port and terminal operating company in Africa by equity-weighted container volume, with 12 facilities operating in 10 countries and three more terminals under construction. Source: Maritime Executive

Verified Gross MassThe US Coast Guard has told American shippers that it will not delay implementation of the SOLAS Chapter VI amendment requiring containers to have a verified gross mass before they can be shipped.

The US Agriculture Transportation Coalition (AgTC), representing most of the country’s agricultural and forestry products exporters and thus accounting for a huge slice of US shipping exports, argued that confusion over the VGM could lead to business being lost and threatened supply chain turmoil.

It called for a one-year delay in implementation of the new rules, due to take effect on 1st July, to allow time for government and industry to work together to solve the problems. AgTC cited SOLAS Article VIII(b)(vii)(2), which allows for a Competent Authority [in this case the USCG] to give notice to the IMO of an intention to delay implementation of any SOLAS regulation for up to one year at any point before the entry into force.

However, at a special public meeting convened on 18th February at the offices of the Federal Maritime Commission in Washington, DC, Rear Admiral Paul Thomas, the USCG’s Assistant Commandant for Prevention Policy, said a delay to implementation would not be entertained.

Thomas pointed out that that the VGM is not a US regulation or law, but arises out of international agreement within IMO. As such it will be enforced by flag states, where ships are registered, and any signal that the US was unready or unwilling to comply with the new rule would be interpreted by flag state authorities to mean that loading US export containers on their ships is unsafe. He added that most US exports are carried on foreign flag ships.

This should be the end of the matter. However, the IMO mechanisms allow the US (or any other IMO member-state) to give notice any time up to 30th June. The US could also introduce an “AOB” paper at the next IMO MSC meeting scheduled for May.

At the meeting last week, shippers were reassured that if they used “Method 2” (VGM by calculation), they are legally entitled to rely on the container’s CSC plate as providing an accurate empty tare weight. Source: World Cargo News

APM Terminals has released drone footage of its Rotterdam Maasvlakte II terminal. The terminal set a loading record last month on the Madison Maersk with 17,152 TEU loaded, including ten high above deck stowage.

The facility launches the world’s first container terminal to utilize remotely-controlled ship-to-shore (STS) gantry cranes. The cranes move containers between vessels and the landside fleet of 62 battery-powered Lift-Automated Guided Vehicles (Lift-AGVs) which transport containers between the quay and the container yard, including barge and on-dock rail facilities.

The Lift-AGV’s also represent the world’s first series of AGV’s that can lift and stack a container. A fleet of 54 Automated Rail-Mounted Gantry Cranes (ARMGs) then positions containers in the yard in a high-density stacking system. The terminal’s power requirements are provided by wind-generated electricity, enabling terminal operations, which produce no CO2, emissions or pollutants, and which are also considerably quieter than conventional diesel-powered facilities.

The facility, constructed on land entirely reclaimed from the North Sea, has been designed as a multi-modal hub to reduce truck traffic in favor of barge and rail connections to inland locations.

Construction began in May 2012, with the first commercial vessel call in February 2015.

2015 and 2016 are the years of ramping up operations and refining the terminal operating system. The 86 hectare (212 acre) deep-water terminal features 1,000 meters of quay, on-dock rail, and eight fully-automated electric-powered STS cranes, with an annual throughput capacity of 2.7 million TEU.

At planned full build-out, the terminal will cover 180 hectares (445 acres) and offer 2,800 meters of deep-sea quay (19.65 meters/64.5 feet depth), with an annual throughput capacity of six million TEUs. Source: Maritime Executive

Smuggled Ivory

In January 2014, while x-raying a Vietnam-bound container declared to hold cashews, Togolese port authorities saw something strange: ivory. Eventually, more than four tons was found, Africa’s largest seizure since the global ivory trade ban took effect in 1990. [Photo: Brent Stirton, National Geographic]

Last year, one of Kenya’s most adored elephants, Satao, was killed for his ivory. Poachers shot the bull elephant with a poisoned arrow in Tsavo East National Park, waited for him to die a painful death, and then hacked off his face to remove his massive tusks.

Poachers continue to kill an estimated 30,000 elephants a year, one every 15 minutes, fueled to a large extent by China’s love of ivory. Thirty-five years ago, there were 1.2 million elephants in Africa; now around 500,000 remain.

A recent documentary, 101 East, released by Al Jazeera, traces the poaching of elephants and smuggling of ivory from Tanzania’s port of Dar es Salaam through the port of Zanzibar to Hong Kong and Shanghai.

Hong Kong is one of the busiest ports in the world. It handled nearly 200,000 vessels last year and is a key transit hub for smugglers transporting ivory from Africa to China. Between 2000 and 2014, customs officials seized around 33 tons of ivory, taken from an estimated 11,000 elephants.

With the huge challenge faced by customs and other law enforcement agencies in West Africa, wildlife crime is on the rise. Regional traffickers and organized crime groups are exploiting weak, ineffective and inconsistent port controls throughout the region.

U.N. Action in Africa
To address the issue, the United Nations Office on Drugs and Crime (UNODC) organized a workshop in Accra, Ghana, from August 25 to 27 August, and in Dakar, Senegal, from August 31 to September 2. The objective was to provide training for national law enforcement agencies to better fight wildlife crime through the control of maritime containers. The workshop was led by trainers and experts from UNODC, the World Customs Organization (WCO) and the CITES Management Authority.

The Container Control Programme has been developed jointly by UNODC and WCO to assist governments to create sustainable enforcement structures in selected sea and dry ports to minimize the risk of shipping containers being exploited for illicit drug trafficking and other transnational organized crime. The implementation of the program is an opportunity for UNODC to work with governments in establishing a unit dedicated to targeting and inspecting high-risk containers.

UNODC, in partnership with WCO, delivers basic training programs and provides technical and office equipment. For example, the equipment connects the units to the WCO’s ContainerCOMM – a restricted branch of the Customs Enforcement Network dedicated to sharing information worldwide on the use of containers for illicit trafficking.
Sustainability.

UN Secretary-General Ban Ki-moon argues: “Illegal wildlife trade undermines the rule of law, degrades ecosystems and severely hampers the efforts of rural communities striving to sustainably manage their natural resources.”

Wildlife trade is a transnational organized crime that raises profits of about $19 billion annually. In addition, it is often linked to other crimes such as arms trafficking, drug trafficking, corruption, money-laundering and terrorism – that can deprive developing economies of billions of dollars in lost revenues.

Shipping
It’s hardly surprising that many of the big ivory seizures made in recent years have been detected in shipping containers, says Dr. Richard Thomas, Global Communications Coordinator for the environmental organization TRAFFIC. “Partly that’s due to the sheer quantity of ivory being moved (the largest-ever ivory seizure was 7.1 tons) – which from a practical and cost point of view makes sea carriage more attractive than air carriage.

“Also in the smugglers’ favor is the huge numbers of containers moved by sea. Some of the big ports in Asia deal with literally thousands of containers per day. Obviously it’s not practical or feasible to inspect each and every one, and that’s something the organized criminal gangs behind the trafficking rely upon.”

There’s lots of issues to be dealt with, says Thomas: For example, even when an enforcement agency makes a seizure, it’s not easy to find out who actually booked the passage for the container and who knew precisely what was in it and actually put it there. “That’s one area where transport companies can collaborate with enforcement agencies to assist follow-up enquiries. Obviously companies have records of where the container is headed too, obviously key information for follow-up actions,” says Thomas.

TRAFFIC recently ran a workshop in Bangkok under the auspices of the Wildlife Trafficking Response, Assessment and Priority Setting (Wildlife TRAPS) project, targeting the movement of illicit wildlife cargoes across borders.

“The transport industry can serve as the eyes and ears of enforcement agencies as part of a global collaboration to eliminate the poaching and trafficking of illegal wildlife commodities,” said Nick Ahlers, Leader of TRAFFIC’s Wildlife TRAPS project.

“To be successful, the entire logistics sector needs to be part of a united push to eliminate wildlife trafficking from supply chains. In particular, we would welcome participation from major shipping lines and the cargo and baggage-handling sector.”

If nothing is done to stop the ivory trade, Africa’s wild elephants could be gone in a few decades. Source: Reuters.

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