Shipping
(updated 26 08 24)
Review of Coastal Trading Act and Shipping Registration Act
(uploaded 26 08 24)
AIMPE will prepare submissions in relation to both the Shipping Registration Act and the Coastal Trading Act following the announcement on 20th August the Minister for Infrastructure and Transport of two independent reviews of some of Australia’s critical shipping legislation. The Australian Government has appointed Ms Lynelle Briggs and Prof Nicholas Gaskell to co-chair the reviews of the Shipping Registration Act 1981 and Coastal Trading (Revitalising Australian Shipping) Act 2012.
Minister Catherine King said “Ensuring the Acts reflect modern regulatory best practice for shipping registration and coastal trading will be critical to supporting the long-term sustainability of Australia’s maritime industry and Strategic Fleet.
The Government committed to reviewing both Acts as part of its response to the Strategic Fleet Taskforce report.”
AIMPE was highly critical of the Coastal Trading Act in 2012 and ahead of the passing of the Act by Parliament, AIMPE predicted that the scheme would lead to the withdrawal of more ships from the Australian coast. This was exactly what happened in the following years. The Coastal Trading Act does nothing to protect and promote the Australian flag shipping operators but allows for unlimited “Temporary Licences” to be issued to carry domestic cargoes. The policy seems to be that tax free international operators can carry Australian cargoes but Australia operators must pay corporate income tax and Australian seafarers have to pay Australian income tax. A totally inequitable situation.
The Shipping Registration Act meanwhile is long overdue for reform. The Shipping Registration Act requires vessels owned by Australians or Australian legal entities to be registered in Australia. Perversely this allows Australians or Australian companies to own foreign registered companies and register ships in foreign countries then seek “Temporary Licences” to operate in Australia with foreign crews. Also, the Shipping Registration Act does not prevent foreign registered vessels from operating in Australian waters for unlimited periods of time. An Australian person or company owning a truck or a bus cannot have it registered in a foreign country and operate it on Australian roads.
The first phase of the review will be required to be completed in six months from 20th August 2024 meaning it will have to be provided to the Minister by 20th February 2025.
Terms of reference for the two reviews can be found here:
Terms of Reference Coastal Trading Act Review;
Terms of Reference Shipping Registration Act Review.
Strategic Fleet vessels – coastal tankers
(uploaded 09 03 24)
AIMPE and AMOU have again argued coastal tankers should be at the top of the list for expressions of interest from cargo owners for participation in the Strategic Fleet. The two Officers unions have made out the case based on the latest figures which show the amount of refined product being moved around the Australian coast – fuel which is vital to the operation of the Australian economy and society. The case has been made in a submission provided to the Strategic Taskforce unit in the Department of Infrastructure and Transport. The submission can be read in full here:
240223 AIMPE AMOU Submission on Strategic Fleet Implementation Consultative Paper Cargo Owners
In the AIMPE/AMOU submission to the Strategic Fleet Taskforce in December 2022, attention was drawn to the USA’s Maritime Security Program (MSP) which provides Federal Government financial support for a fleet of 60 privately owned and commercially operated vessels. This is comprised of mainly containerships (34) and roll-on/roll-off ships (18) with some heavy lift ships as well.
The USA has now implemented another program – the Tanker Security Program (TSP) which provides Federal Government financial support of US$60 million per annum for 10 product tankers to be available to meet national defence and other security requirements.
AIMPE and AMOU note that Bureau of Infrastructure and Transport Research Economics (BITRE) data confirms that 100% of Australia’s coastal liquid fuel distribution task is carried out by tankers operating under Temporary licences. These tankers are all foreign flag vessels with foreign crews.
In 2023 the amount of petroleum product cargoes (not crude) carried under Temporary Licences totalled 1,379,787 tonnes. This was carried in over 190 parcels with 88 cargoes originating in Geelong and unloaded mainly in east coast and Tasmanian ports, 77 cargoes originating in the Port of Brisbane and discharged in north eastern ports with most of the balance being loaded in Kwinana for ports along the west coast. The three major cargo owners involved were Ampol, Viva and BP.
Bulk liquid fuel is required by all three arms of Australia’s Defence Force and it is required in a wide range of locations all around the Australian continent. At the moment that fuel is largely distributed by foreign flag ships with foreign crews.
Liquid fuel is also a vital input for civilian society too. Transport operators in all sectors currently rely on liquid fuel to keep their operations ticking over. Most individual car owners (excepting the electric vehicle owners) also rely on liquid fuel.
For these reasons AIMPE and AMOU urge that fuel distribution by coastal tankers should be at the top of the list for expressions of interest from cargo owners for participation in the Strategic Fleet.
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Just Transition and Safety for Seafarers
(uploaded 08 11 23)
The safety of seafarers was the central focus of a presentation made to the recent General Meeting of the UK based union Nautilus International. The presentation was prepared and delivered by Odd Rune Malterud the Assistant Director & Technical Manager, Norwegian Union of Marine Engineers.
The presentation included links to a wide range of source documents covering many aspects of the move to further reduce greenhouse gas emissions. Issues covered include:
New fuels/energy sources;
Fire and explosion barriers;
Toxicity;
Fire-fighting systems;
Bunkering;
Scrubbers;
De-rating; and
Weight storage and stability.
The presentation represents a very good resource for anyone interested in these issues especially as it contains hyperlinks to a host of relevant documents:
Just Transition and Safety for Seafarers
The paper builds on the earlier work by the ITF Maritime Safety Committee which had previously produced a tabulated summary of the various fuel types and the characteristics of these fuels - many of which are extremely hazardous for seafarers:
ITF MSC Safety dynamics of ships energy sources
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IMO adopts new greenhouse gases reduction strategy & targets
(posted 10 07 23)
The International Maritime Organisation (IMO) has adopted a new strategy including new targets for the reduction of greenhouse gases from international shipping. The decision was taken in London in the first week of July.
There has been negative coverage of decision with some of the Pacific Island states criticising the decision as not going far enough to address the problem of climate change and the problem of rising sea levels.
For the international shipping industry it may involve slower speed voyages and the use of alternative fuels including biofuels, and other less polluting fuels as well as the deployment of "sails" to assist on some routes at certain times.
The decision was taken by the IMO's Marine Environment Protection Committee (MEPC 80).
The Marine Environment Protection Committee (MEPC) addresses environmental issues under IMO's remit. This includes the control and prevention of ship-source pollution covered by the MARPOL treaty, including oil, chemicals carried in bulk, sewage, garbage and emissions from ships, including air pollutants and greenhouse gas emissions. Other matters covered include ballast water management, anti-fouling systems, ship recycling, pollution preparedness and response, and identification of special areas and particularly sensitive sea areas.
MEPC 80 met 3-7 July 2023 at IMO Headquarters in London. It was attended by some 1,800 delegates (in person and remotely).
Here is a link to the text released by the IMO:
Just Transition plan for Seafarers
(posted 10 11 22)
COP27 is very much in the news this week.
On 9th November the Just Transition for Seafarers plan was released at COP27.
It is a broad plan for seafarers globally that has been developed by ITF, ICS and the UN Global Compact group.
The Nautilus Federation was involved in its preparation too.
There are 3 scenarios addressed, a number of key findings arising from these scenarios and a 10 point plan for the transition.
Although these may seem far off the major changes will be to fuel types & propulsion systems. The human impact will be primarily on the marine engineer workforce.
The relevant key findings are:
Key Finding 3: There are a number of safety challenges related to alternative fuels in
shipping. These include pressurized storage, low flashpoint and toxicity. Hydrogen, for
example, is substantially more flammable than diesel. Ammonia, a method of chemically
storing hydrogen for propulsion, is toxic to humans and the marine environment. With the
exception of hydrogen, which was until recently only transported in packaged form, most
of the alternative fuels are currently carried as bulk marine cargo. The shipping industry
is therefore both knowledgeable and experienced with regard to their handling. However,
seafarers will need additional training concerning the particular risks associated
with using these fuels for propulsion in order to ensure not only their safety but the safety
of the environment and local communities.
Key Finding 4: Training seafarers to support shipping’s decarbonization is already subject
to several constraints. These include: slow pace of regulatory development and lack
of clarity surrounding the viability and uptake of alternative fuel options and decarbonization
trajectories, which makes investment in seafarer training challenging; a need to
increase investment in training centres and up-to-date equipment; a lack of competent
trainers; and a shortage of experienced seafarers.
As a global plan this is focussed on international shipping. Few of AIMPE’s members are involved in international shipping and paradoxically the LNG tanker fleet is due for withdrawal in 2024.
But inevitably the net zero target will see other sectors of the maritime industry [apart from international shipping] affected by the changes ahead.
We have other immediate priorities – Fair Work Act changes, Strategic Fleet development including training, Svitzer dispute and Offshore negotiations – but the big picture issues being discussed at COP27 will also have an impact sooner or later.