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Maersk Infuses $600 Million into Nigeria’s Port Infrastructure, Bolstering Maritime Trade Expansion

Maersk global trade rate

Maersk Infuses $600 Million into Nigeria’s Port Infrastructure, Bolstering Maritime Trade Expansion

A.P. Moller-Maersk (Maersk) has unveiled a substantial $600 million investment geared towards enhancing Nigeria’s port infrastructure, marking a pivotal step towards fostering additional container shipping services within Nigerian ports. The announcement was made by Robert Maersk Uggla, Chairman of Maersk, during discussions with Nigerian President Bola Tinubu on the sidelines of the World Economic Forum Special Meeting on Global Collaboration, Growth, and Energy for Development in Riyadh, Saudi Arabia, on April 28th.

President Tinubu lauded the investment, emphasizing its synergistic alignment with the administration’s ongoing commitment to refurbishing Nigeria’s eastern and western seaports, already earmarked for a $1 billion investment. Furthermore, Tinubu reaffirmed his administration’s unwavering support for port modernization initiatives and the implementation of the national single window project aimed at streamlining port processes through automation.

Read also: Maersk Completes $3.6 Billion Acquisition of LF Logistics

Expressing gratitude for Maersk’s contribution to Nigeria’s economic landscape, Tinubu highlighted the nation’s receptivity to foreign investment, citing Nigeria as a prime destination for lucrative business ventures. He underscored the country’s potential for robust revenue expansion and emphasized the imperative to minimize trans-shipments from larger vessels to smaller ones.

Uggla echoed Tinubu’s sentiments, underscoring Nigeria’s strategic significance in accommodating larger containerships along the West African coast. Recognizing the burgeoning demand for expanded logistics services, particularly in Lagos, Uggla outlined Maersk’s commitment to fortifying port infrastructure and facilitating the seamless operation of larger vessels. He emphasized the immense growth potential inherent in Nigeria’s maritime sector and reiterated Maersk’s steadfast dedication to nurturing mutually beneficial partnerships with Nigerian authorities.

In light of recent developments, the West Africa Container Terminal (WACT), operated by APM Terminals (APMT), has inaugurated a state-of-the-art four-lane in-gate facility at Onne Port, Rivers State, Nigeria, further augmenting the region’s maritime infrastructure and paving the way for enhanced trade facilitation.

nuvera

Nuvera Fuel Cells and HELINOR Energy Join Forces to Develop Zero-Emission Marine Power Solutions

Nuvera Fuel Cells, a leading provider of fuel cell power solutions, has formalized a technology development agreement with HELINOR Energy, a Norwegian technology and production provider specializing in next-generation hydrogen fuel cell and fire suppression modules. The collaboration aims to develop scalable zero-emission energy solutions for maritime applications, with HELINOR funding the integration of Nuvera’s next-generation high-power fuel cell engine technology into the maritime industry.

As the demand for zero-emission solutions in shipping grows, both companies see an opportunity to address environmental concerns and demonstrate the efficiency and reliability advantages of hydrogen fuel cell power solutions. Kedar Murthy, Chief Commercial Officer at Nuvera Fuel Cells, expresses enthusiasm for strengthening Nuvera’s presence in the maritime industry and collaborating with HELINOR to contribute to the decarbonization of sea-going transportation.

In alignment with the International Maritime Organization’s strategy to achieve net-zero greenhouse gas emissions by 2050, HELINOR is dedicated to accelerating the transition to zero-carbon shipping. HELINOR aims to achieve this by offering compact, lightweight, and powerful fuel cell modules that set new standards for safety at sea. Elling Helvig, Chairman of HELINOR, notes that Nuvera’s high-efficiency fuel cell engines are the ideal solution due to their high-power density, optimal use of limited on-board space, and demonstrated high-efficiency performance, resulting in longer range and lower operating costs.

Nuvera’s E-Series Fuel Cell Engines play a crucial role in enabling vessel and maritime equipment manufacturers to meet stringent emissions mandates. These engines are designed to support regulatory compliance and maintain economic competitiveness by delivering high-performance power solutions. The collaboration between Nuvera Fuel Cells and HELINOR Energy signifies a concerted effort to advance the development and adoption of zero-emission energy solutions within the maritime industry.

global trade ocean freight rate

KEELVAR SAYS ITS OCEAN AND AIR FREIGHT AI WILL REVOLUTIONIZE PROCUREMENT

Bots are everywhere these days. They play poker against you and help you order a pizza. They assist in getting you hotel reservations and chat with you when you contact customer service to find out why your pizza had extra onions instead of extra cheese. And now, thanks to Cork, Ireland-based Keelvar, they can all but take over a company’s ocean and air freight procurement.

There’s no question air cargo really needs help right now, given the volatility in the market. Capacity is down, way down—nearly 40 percent from China in mid-February, 20 percent over the last year as a whole. Ocean capacity has also dropped. Meanwhile, demand has been rising, due to the pandemic. Optimizing sourcing at a time when rates, transit times and carriers are changing so rapidly is challenging for even the largest firms. 

For Keelvar, there are few better times to unleash their bots.

“We’ve been helping shippers to find ways to bring the product to market faster,” says Keelvar CEO Alan Holland. “It’s automated—that’s what’s different about what we’re doing. A bot can go to work as soon as someone wants to move something, say, from Montevideo to New York. It’s always available. That’s the biggest competitive advantage.”

The bots that Keelvar and many other companies make these days are simply software that automates specialized tasks. Keelvar calls the artificial intelligence (AI) bots it makes Sourcing Automation, which it defined in a June 2018 white paper as “a new category of software that leverages intelligent systems to automate complex human reasoning that exceeds expert standards.” 

Holland likens his bots to those that entered the world of online poker a few years ago. The earliest poker bots could play the game well, but couldn’t best professional players. But as the software evolved, the AI learned how to play better. Today, even the best poker champions in the world can’t beat the latest generation of poker bots. Holland’s goal, which he articulated in the white paper, is creating software that performs sourcing work for companies better than the experts in the field.

“The sobering fact is that AI is defeating the best human experts in most tasks where the boundaries and constraints on decision making are well-defined closed systems,” states the Keelvar white paper. “It would be a mistake to assume that AI won’t be competitive in the task of strategic sourcing and then ultimately overtake humans in this role. Once the boundaries of decision making are communicated, then the game-theoretic reasoning for optimizing the mechanism for sourcing goods and services becomes just another complex but the tractable calculation for Artificial Intelligence.”

In other words, Keelvar says their bots can automate all bidder communications in sourcing: opening, feedback generation, data cleansing, closing, termination-criteria monitoring, and activation. They basically run a company’s sourcing events, though logistics officials are always free to override the bot’s preferred course of action. Sourcing events can be complex and require the labor of many employees, some with years or decades in the procurement field, but Keelvar’s sourcing automation can basically handle it all.

“This process is tedious to execute manually and the more bidders there are, the more onerous the tasks above become and also the more likely that short-cuts are taken, and mistakes are made,” states Keelvar’s white paper. “Furthermore, the slow pace in manual events leads to curtailment of the rounds of bidding and inevitable lost savings opportunities due to the frictional effect of manual operations.”

What’s more, Keelvar’s ocean freight bots can even account for the pollution emissions of cargo vessels when conducting sourcing events (a feature that will eventually be available on the company’s air cargo bots). “Humans can’t get to that level of detail to do emission-sustainable options,” Holland said.

While the ocean freight bot has been around a year or so, the air freight bot only became available in January. Keelvar says the bot can automate 90 percent of a company’s tactical sourcing processes.

“It’s a natural evolution from our first bot, the ocean freight bot,” Holland said. “There’s a finite set of airport codes, but different logic around recommendations in air freight. Bid sheets are different, and cargo tends to be weight-based, rather than container-based, which is how ocean freight works.”

For Felix Plapperer, a venture capital investor and CEO of Paua Ventures, Keelvar’s sourcing bots will “dominate” the procurement market. Not merely because the bots are inherently more efficient than manual labor, but also because they learn the sourcing job better every time they operate. 

“When a tender/auction is conducted by a bot, the number of actions is between eight and 20, depending on the complexity,” Plapperer wrote in a June 4, 2020, post on Medium on why he invested in Keelvar. “If each bot action costs less than $1, then the cost per event is roughly one or two orders of magnitude (yes, that is 10x to 100x times) cheaper than for an event operated by manual labor. Now, these cost savings only capture the value driven by process automation. As ‘mini-tenders’ are not run by sourcing experts, little to no optimization takes place (in fact, often personal relationships drive the outcome). Sourcing bots, in contrast, analytically optimize each and every event based on business priorities. Thus, they create additional value in reduced spend—every time they are at work.”

Of course, the bots aren’t replacements for a company’s procurement teams, but were designed to work alongside them. Major companies such as BMW, Novartis, Siemens and Coca Cola are already using Keelvar’s bots for their procurement.

Another of Keelvar’s recent customers, McKesson Corp., is an Irving, Texas-based healthcare and pharmaceutical company founded back in 1883. According to Keelvar’s marketing materials, McKesson was on track to save 6 percent of its global freight budget prior to the pandemic, and had already saved 6 percent the year prior, through the use of sourcing optimization products from Keelvar.

“Excel is nice, but it’s not where we need to be,” said Tad Strong, McKesson’s Vice President of Global Operations during a March 2021 webinar hosted by Procurement Leaders. “And over the next few years, we’ve some pretty big plans on making that shift into a more automated, more robust system.” 

So, what does the future hold? Holland wouldn’t comment on whether his company is developing a bot to handle ground freight logistics (though that would be a logical step for the company), but he did say the next generation of artificial intelligence bots are just on the horizon.

“This is all level four automation, but level five automation systems in the future will have more autonomy,” said Holland. “We want the bot to autonomously decide on new carriers. There’s a lot of strategy on negotiating rates. You learn by experience which strategies are best. In level five, the bot learns new strategies.”

Holland said the first of examples of his level five AI bots in ocean freight should appear in the fourth quarter of this year. 

containers

CONTAINER PRICES SURGE IN EUROPE AS CARRIERS FAVOR LOADING EMPTIES

For European exporters looking to source shipping containers, existing shortages could deteriorate significantly in the coming weeks, according to the latest data from Container xChangethe world’s leading online platform for the leasing and trading of shipping containers.

Most pricing and availability indicators now suggest carriers are continuing to favor shipping empties back to Asia as fast as possible to maximize yields on front-haul services rather than wait for less lucrative backhaul loads.

The upshot for shippers is rapidly rising prices in Europe for containers even though CAx availability readings point to higher availability of boxes in European hubs – Container xChange figures do not track empty moves.

“The confluence of theoretical high availability and soaring prices for boxes strongly indicates that container lines are prioritizing empty containers over export cargo from Europe,” said Dr Johannes Schlingmeier.

“There were signs of this even before the Suez Canal closure in late March. The latest figures suggest the additional disruption this caused has exacerbated the situation and made it even harder for exporters to find empties.”

The latest container trading data reveals that between January and April average prices for used 20 ft. containers across Europe rose 57% from $1348 to $2119.

In April, price increases for 20 ft. containers were especially severe. In Antwerp, prices jumped by 30% compared to March. In Hamburg they rose by 16% over the same period while in Rotterdam they increased 12%.

Since the beginning of May, average prices for 20 ft. dry containers in Europe softened slightly to $2249 from $2110 in April. However, prices for 40 ft. dry containers have again increased this month, up 13% to $3112 from $2750 in April.

In Container xChange’s Container Availability Index (CAx) an index reading of below 0.5 means more containers leave a port compared to the number which enters. Above 0.5 means more containers are entering the port.

At the port of Genoa, the average CAx reading for a 20 ft. box in 2021 is 0.71, up from 0.26 through the first half of 2020. At Hamburg, in 2021 the average CAx reading has so far this year is 0.75, compared to 0.39 in 1H 2020, while at Rotterdam the reading is 0.71 so far this year, versus 0.46 a year earlier.

After a short dip in incoming containers to Europe due to the Suez Canal closure as measured by Container xChange’s Container Availability Index (CAx), inbound volumes are expected to increase again.

CAx readings for week 19 decreased by on average 4.5% to values of 0.85 across dry-container sizes in Hamburg, 0.79 in Rotterdam, and 83.5 in Antwerp, indicating an ongoing surplus of incoming boxes.

“According to Container xChange forecasts, an increase in incoming shipping containers by 4-5% over the next weeks is likely to not only increase CAx readings but also contribute to slowly decreasing container prices again,” said Dr Schlingmeier.

“These are good times for equipment owners across Europe as indications are that even if container prices dip slightly, scarcity will remain until carriers change tack and start looking for more backloads. As a result, container prices are likely to remain at elevated levels for some time, although we do think availability for exporters will improve in the coming months.”

charleston

Port of Charleston Completes Record Volumes in April

Following the most successful all-time cargo record for March, South Carolina Ports Authority confirmed earlier this week the Port of Charleston broke the April record for cargo handled. More than 225,000 twenty-foot equivalent units (TEUs) were moved in April from Wando Welch Terminal, North Charleston Terminal and Hugh K. Leatherman Terminal, representing an upward growth trend of 27.8 percent in a year and 2.09 million TEUs in fiscal year 2021 so far.

“Companies needing to quickly import and export goods benefit from the available capacity at SC Ports,” SC Ports CEO Jim Newsome said. “We have invested significantly in our infrastructure, including enhancing Wando Welch Terminal and opening Leatherman Terminal, to ensure Charleston can handle the biggest ships and growing cargo volumes coming to the East Coast.”

Vehicles, containers, and inland ports were among segments of business growth in April. Loaded imports accounted for a 27 percent increase for the month along with a 30 percent surge in loaded exports. Manufacturing and automotive industries in the region were cited as main drivers behind the increase.

April also saw a 143.1 percent increase in vehicles. SCPA reported 21,966 vehicles rolled the docks at the Columbus Street Terminal, representing the 209,598 vehicles handled so far for the fiscal year (a 14.5 percent increase).

“Our entire maritime and motor carrier community kept freight moving during the past year. We owe them much gratitude for keeping our shelves stocked and businesses running during the pandemic,” Newsome said. “As the global supply chain continues to feel strained, it is evident that SC Ports invested in the right infrastructure at the right time. We have the capacity, big-ship capabilities and deep harbor today to handle cargo influxes.”

lamar

LAMAR UNIVERSITY’S CENTER FOR PORT MANAGEMENT MASTER’S PROGRAM SHARPENS LEADERS’ SKILLS

Editor’s note-In this exclusive interview with Erik Stromberg, executive director of Lamar University’s Center for Port Management, we discover how the center’s advanced and continuing education programs are taking professional development in the port industry to the next level. 

Global Trade: What can professionals anticipate with a master’s degree in Port and Terminal Management from Lamar University?

Erik Stromberg: In brief, the goals for our graduates are, one, to improve their management skills and perform their current job better and, two, to increase their opportunities to grow their port and terminal management responsibilities. 

Allow me to step back and talk about public port management, and the skills and aptitudes required for success. I should say that I am more familiar with the challenges of managing a public port than a private marine terminal, but there is overlap, as well as a significant difference. 

Both require, to varying degrees, management skills and familiarity with the technical aspects of the industry, from planning, engineering and risk-based property and asset management, to business development; from government and public relations to terminal operations, safety and security; from IT and digital technologies to HR. In other words, both public and private port managers need to know how to run a business. While most port authorities lease out terminals and other facilities, many have decided their best interest lies in operating the terminals they own.  

The most profound distinction, however, between a port authority and a private terminal operating company lies in their ultimate stakeholders. Private terminals are owned by family, management or investors, or if publicly traded, its shareholders. A port authority is a public enterprise ultimately owned by and accountable to the taxpayer.  

The public aspect of managing the port creates a special challenge. It is my view that most public port industry leaders think of themselves as business people doing the public’s business, rather than public administrators trying to run an organization like a business. This is why our program is supported by Lamar’s Business College, as well as our Industrial Engineering Department. But the public aspect of port management must be abided. It doesn’t guarantee success, but ignoring public concerns is a risky strategy. And for every port authority, there are multiple public constituencies, further complicating matters. 

Global Trade: Why should professionals pick this program to enhance their career?

Erik Stromberg: Simply put, there is no program devoted to the advanced education of port and marine terminal managers in the hemisphere. The asynchronous program is fully online, facilitating access by students from wherever they live. We have designed flexibility into the program to help our students accommodate a significant demand on their work and personal lives. 

Taking one course per term, it typically takes two years to complete. Our program is affordable, at just over $14,000 for the master’s degree. Furthermore, based on the MOU Lamar has with the American Association of Port Authorities (AAPA), students with the Association’s Professional Port Manager certification can waive up to 15 credit hours toward their master’s degree. 

Stepping back, a fundamental question is: “Why a master’s degree?” In the continuum of professional education and training, a master’s degree represents a commitment and a focus not available with continuing education or an undergraduate degree. Our students enter Lamar’s advanced education in port management program seeking the “mastery” of a set of interdisciplinary skills and knowledge for the purpose of their application in the management of ports and marine terminals. In other words, theoretical study is valued to the extent it can be applied in practice. 

Our online platform facilitates not only access by working professionals entering the program as students, but also to the world of industry experts who sign up as adjunct faculty eager to teach what they’ve learned throughout their careers. Our students come from within the port and terminal operating industry seeking to enhance career opportunities, along with those from outside the port industry wanting to enter the exciting field of port and terminal management. Lamar’s interactive, online learning platform also facilitates the ability of students to learn from each other as well as from our faculty.

Global Trade: Can you briefly review what the student should expect in the way of course work?

Erik Stromberg: To start with, the 12-course program does not stretch the student’s quantitative skills (i.e., no calculus), but it’s still pretty intense. We have had exceptions, but one course per term seems to be enough for our working professional students to handle.   

The port master’s degree curriculum pulls in business and industrial engineering courses that provide both technical knowledge and “soft-skills,” management education. 

A summary of our degree program would mention the following:

-comprehensive and in-depth study and understanding of the public port and private marine terminal operating industry and the environment in which it operates

-analytical and decision-making skills

-leadership and team building skills

-lessons learned and best practices from industry experts, including student/faculty and student/student interaction 

-online, asynchronous learning

-latest advances in technology and management 

-focused and facilitated study opportunity of port and terminal operating industry

Global Trade: How does Lamar select the faculty for this program?

Erik Stromberg: Industry experts serving as adjunct faculty members teach fully half of our 12-course curriculum. I guide our students through Introduction to Port Management with a preponderance of guest lecturers. These industry veterans have an abiding interest not only in sharing their knowledge and experiences, but also continuing to learn and explore with our working professional students. 

The remaining courses are taught by faculty from the Industrial Engineering Department and the College of Business. Every course is populated with guest lectures given by subject matter experts from outside the university. 

Besides my Introduction to Port Management class, courses taught by our adjunct faculty are: Strategic and Facility Planning; Security and Emergency Management; Port Asset and Property Management; and Freight Transportation Logistics. Guest lecturers are used throughout the curriculum. 

The center’s Advisory Board members play a very helpful role in both serving at times as guest lecturers, as well as suggestions for curriculum content and adjunct faculty.

Global Trade: Have Lamar Business and Industrial Engineering faculty been able to create or adapt existing graduate-level courses to accommodate the needs of a port management curriculum?

Erik Stromberg: Absolutely. With the addition of industry experts serving as guest lecturers, these courses blend theory and practice. Included are the following courses: Capital Planning and Implementation; Legal Framework of Ports and Trade; and Marine Terminal Operations.

Global Trade: How is Lamar University handling challenges with the pandemic while still providing educational excellence?

Erik Stromberg: The current crisis has disrupted the traditional classroom experience. However, the pandemic has spotlighted successful, remote learning platforms, including Lamar’s, which has been utilized for over a decade.

Given that access to potential students as well as adjunct faculty and guest lecturers is facilitated by online learning, the challenges presented by the pandemic have been minimized. 

Center for Port Management Students Speak for Themselves

“I find the program challenging and providing new skills for how I manage my port projects and my decision-making process. I already see the value of the program as a tool to advance my career.” 

-Ron Coddington, port engineer, the Port of Palm Beach

“It made me a better manager, broadening my perspective and forcing me to think more analytically about the issues I regularly deal with.” 

-Larry Kelley, CEO, Port of Port Arthur (and the program’s first graduate)

“It is the only port-specific graduate program in the country that is focused on developing the interdisciplinary skills required of effective and impactful port managers. This means that students are exposed to every aspect of the port business, from business administration to engineering, economics to operations, and everything in between.” 

-Sean Fairchild, U.S. citizen currently working as a port industry consultant in Bogota, Colombia

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To learn more about Lamar University’s Center for Port Management master’s degree program, and other continuing education opportunities, visit lamar.edu/port management.

supply chain issues

What Warehouses Can Do to Minimize Supply Chain Issues

While the integral Suez Canal supply channel is no longer blocked, other supply chain issues remain. In fact, according to a recent report, 24 container ships – with a combined maximum carrying capacity nearly 10 times that of the Suez Canal ship – were recently anchored off the coast of Los Angeles and Long Beach holding up millions of dollars worth of cargo.1 While both instances of bottlenecks took place within days of each other, these traffic snarls are not the primary culprit of clogged supply chains. 

While shipping and data today are an important part of building successful logistics operations, these areas alone cannot solve real-time supply chain issues. If logistics operators and organizations don’t have the proper visibility into their warehouse data and operations, they are unable to make quick changes in response to supply chain snarls and backlogs. The lack of complete end-to-end visibility was also a reason so many manufacturers and suppliers suffered during the pandemic.2 Unfortunately for many organizations, this real-time visibility gap starts in the warehouse. 

Bridging the Gap Starts in the Warehouse

Various factors are being blamed for the recent supply chain disruptions – the size of ships and containers, congestion at the ports, and how narrow the canal channels remain. In fact, the Port of Los Angeles in North America is one of the busiest channels, but can’t regularly receive 20,000-container vessels due to the lack of infrastructure.3 Even so, fixing any one of these factors will not truly solve the primary causes of supply chain backlogs. 

Enhanced visibility technology into the warehouse, yard management and labor resources is yielding both time and cost savings for companies dealing with supply chain backlogs. For example, real-time access to data to determine which trucks have been sitting and for how long has become key to prioritizing and assigning tasks within the distribution center to improve customer fulfillment, minimize risks, and avoid costly and unnecessary fees. But without real-time visibility into the yard, appointments can get de-prioritized, delayed or missed. The warehouse is the heart of the supply chain, yet very few end-to-end tools are solving the problems of warehouse visibility and labor management. 

Shifting Supply Chain Strategies

While the warehouse is already the most technologically advanced area of the supply chain, it’s the transportation network within the supply chain that usually incorporates real-time data tools, leaving a massive gap in end-to-end supply chain visibility. Most operations find that there are simply too many data points and too much information to process to create real-time views that don’t time out and that are actionable when distribution teams need to make point-in-time decisions. Warehouse data without science is just noise, and analytics without actionable insights is just a spreadsheet. Shifting the strategy to fill the gap includes a series of industry-standard KPIs, live operations views, productivity metrics, inventory visibility, and labor management that’s actually helpful to enhance Warehouse Management Systems (WMS) already in place.  

As evidenced with the recent blockages, the impact of this lack of real-time warehouse visibility on the global supply chain is still in critical condition. What’s more is that even without substantial issues like canal blockages or a global pandemic, the supply chain regularly suffers from thousands of “mini disruptions” that both distribution operations and customers end up suffering from as a result.4 Without supply chain visibility tools for the warehouse, manufacturers, and suppliers suffer the same consequences from that of a channel backlog or global pandemic, but on an ongoing and daily basis.  

Supply chain executives must incorporate real-time warehouse visibility in their end-to-end supply chain optimization strategies to increase overall distribution efficiencies and reduce risks associated with problems from within the warehouse that arise not only from blocked canals, but from unseen blockage within their own four walls.  

________________________________________________________________

Alex Wakefield is the CEO of Longbow Advantage with over 20 years of experience in supply chain technology and implementations including leadership roles at IBM and Blue Yonder (formerly JDA/Red Prairie). His focus is on enabling distribution teams to better manage, leverage and action their data across the supply chain through the use of Rebus, the only real-time warehouse visibility and labor platform purpose-built for the supply chain. 

vessel

View from the US Gulf: Veteran Surveyor Details the Pitfalls of the Vessel Draught Survey

In this article, Chris Zeringue, Owner, MTS Marine Technical Surveyors, and a longtime worker on US Gulf waters, explains the pitfalls in Vessel Draught Surveys, and how prevailing water conditions and accessibility differences can result in ‘guesstimations’ rather than precise answers. He looks back on a long career on the water and explains where his passion for cargo surveying started.

The key to accuracy in a vessel draught survey may very well be found in a hole in the ship. I boarded my first vessel at the age of 17 in 1975. I was hired out of the local shape-up yard for the night shift aboard a bulker loaded with imported sugar. My job was to shovel sugar out of the vessel hold ribs(trimmer) so that the bulldozer/tractor could push the cargo to the crane bucket. My neighbour was the lead superintendent on the job and his son and I would ride to the shape-up yard with him and put our names on the list to try to get hired for a day or night. If there were not enough Union Hands for the job, they would then call out the names of the non-union hands (aka rabbits). On the days/nights that we did not make the cut, we would hitchhike or walk home, meaning we would have to cross the Mississippi River Bridge by foot at times. My other job during school was working nights and weekends for a mooring company.

The more I worked, the more I liked the waterfront. While shovelling cargo in the bottom of ship holds, my neighbour (the superintendent) would throw an apple or orange down to me to eat. Looking up one day there was a man standing next to him just observing. When I went up out of the hold for a meal break, I asked my neighbour, Papa Deck, “who was the guy with you?” His answer was, “he is a surveyor, and his job is to verify cargo quantity and quality.” I knew from that moment that I would someday trade my shovel position to be a Surveyor.

In 1978, I was hired at my first Surveying (training) position. Now fast forward 42 years and I am one of the owners of a survey company specializing in Ag and Fertilizer products at Marine Technical. Surveyors. I have travelled the world surveying and monitoring customers’ cargoes and solving customer issues.

The one thing that has always bothered me when it came to the accuracy of cargo accountability on bulkers was how to account for water conditions. On bulk cargo carriers, cargo accountability is determined by way of a Vessel Draught Survey, based on water displacement. Many factors go into the calculations and equations, but the one factor stated to be the most important (reference: The Naval Arch, Draught Surveys) yet least controllable, because of water conditions and accessibility, is the reading of the draught marks. The draught marks are stencilled at six positions on the vessel’s hull (forward/bow port and starboard, midship port and starboard, aft/stern port, and starboard).

These number stencils (usually in metres) are normally 10cm tall with 10cm space between each number. The numbers are usually in equal numerical stencils (2, 4, 6, 8 then the next metre number). As the water touches the bottom of the number 4 (using 4 as an example), the reading is 40cm, the middle of the 4 would be 45cm and the top would 50cm. Between 50 (top of the 4) and 60 (bottom of the 6), the surveyor has to make a visual judgment call. As in all surveys, the reading of the draught marks visually are judgmental calls. So, add in high swells, waves, chop, ice, obstruction, non-accessible points, and now you have guesstimations.

On bulk vessels of Handy and Panamax size, the vessel’s average in TPC (tonnes per centimetre) is approximately 50–65. So, this means that the distance in Draught from the bottom of the Draught Mark stencilled number to the top (10-cm) represents up to 650 tons.

Even in a light chop, there are 600–700 tonnes of possible error, noted in the photo at the bottom of p48. One could only imagine the judgment in 0.5 to 1m swells.

Or trying to read these in the dark of night, from a crew boat from a distance, or in heavy current. Because of anchors, buoys, and swift water, what we can see in the photo is as close as the launch boat can safely get.

And while one is riding around the vessel obtaining draughts, the remainder of the survey (ballast, voids, fuel, etc.) is out of the surveyor’s reach or control.

I once sent the photo at the top of p48 to a customer and said, “tell me where the water is and I’ll tell you what your tonnage
is.”

The Vessel Draught Survey consists of two parts, open and close, or light and heavy. The difference in water displaced between the two equals the quantity of cargo loaded (with adjustments made for ballast, bunkers, etc.). No matter the condition of the water which the vessel is sitting in, the show must go on. Time is always an issue with a vessel, and time is money. The draughts must be read, and from that, the calculations are made and the BOL (Bill of Lading) and Mates Receipt are set. Buyers and sellers trade on this number.

Many draught marks on the bow, stern, and offshore side are not accessible. I asked each of these guys in the first photo in this article (p47), what they had (without them saying out loud) and there was a large variance between each of their findings, and this was in calm water.

Try reading that draught from many metres away, looking down on it. The photograph below shows the vantage point for the guys in the first photo in this article.

Or try getting an accurate mid-ship draught, one of the most important readings of the survey, from the vantage point in swells (see photo, below).

Once the vessel is loaded, no matter what water conditions it’s loaded in, the vessel is to carry and deliver the BOL quantity (created by the Vessel Draught Survey). The seller sold the amount, the buyer bought the amount, and the vessel is paid freight on the amount. In many cases, the parties trading paper have no idea how the numbers were derived.

I guess this is why so many vessels now have a standard clause in their documents stating that they cannot guarantee the accuracy of the agreed-upon tonnage listed (verbiage differs, but generally states). It is stated that in optimal conditions, Vessel Draught Surveys are subject to 0.5% variances.

Now, as the vessel arrives for delivery, it is the position of the vessel to make sure that the arrival vessel draught survey matches the departure draught survey within close tolerances. If the cargo is delivered into a warehouse and the warehouse is not emptied and zeroed out immediately after the delivery, a loss/gain of cargo can’t be attributed to a certain vessel. In many cases, the tonnage on the ‘paper trail’ is kept in close tolerances, regardless of the cargo aboard or delivered. In some cases, common cargo warehouses may take more than a year (and many vessel deliveries) to zero out all cargo. In a case where a vessel delivers to another vessel or onto barges, there is an instant check and balance, a shortage or overage is noticed immediately. On an overage, you will not hear a peep, but on a shortage you, as the receiver surveyor are looked at as if you are responsible for the shortage, just for being the messenger of bad news. In my opinion, shortages outweigh overages manyfold, due to the vessel wanting to err on the side of caution to not exceed destination arrival draught restriction requirements, or carry cargo which they will not get freight. In most cases, the source of the problem can be attributed to the conditions of the water surface at the load port, yet is hidden in a paper trail.

How could this issue be eliminated? And is there a more accurate way to read the draughts? Well, devices have been made (such as freeboard indicators) but are not practical in all water, wave, and current applications. Years ago I invented such a device, which worked very well, but it would have to be attached to the hull at
the draught marks, which is not practical and can’t always be achieved. As I would say, when it is needed (in heavy sea swells and fast current) it couldn’t be used, and when it could be used (in perfectly calm water conditions) it is not needed. The one thing that keeps echoing in my mind is a hole in the ship (aka ‘The Zounding Tube’, named after the one who keeps thinking of it).

Having a sounding tube in the mid-ship point of the vessel (on a new build), or one port and one starboard, mid-ship, on a retrofit, through an existing ballast tank, which would go from keel to deck. With this, trim and list would not affect the readings because of their central location. In a perfect world, three tubes (one forward, mid and aft) could be added, to adust for hog and sag. A chart could be applied so that an ullage/outage could be taken (from a fixed given point to the water within the tube/pipe) and converted to draught. This draught reading would not be affected by waves, swells, etc., due to hydraulic pressure and the fact that water is calm below the surface. Accuracy could be achieved. I have always asked myself if this is possible and would it work?

Technologies have changed dramatically over the last 45 years — but the extremely important issue of vessel draught surveys have been largely left behind. The safe carriage of cargo is the vessel’s first concern, and it should be, but tonnage accountability is also very important. When I started 45 years ago, the older guys were still hauling adding machines onboard vessels to do their calculations, then calculators, and now computers. Liquid and gas cargo vessels (for years) now use sonar, radar, and level gauges for cargo readings. Zounding tubes could be equipped with radar which could send accurate draughts back to the cargo control room, for continuous accurate tonnage monitoring. And of course, safety remains paramount. All this could be done on the deck of the vessel, rather than hanging off the sides or in a crew boat in traffic and current.

At this point, I would have to leave the idea with naval architects and Class Societies, vessel designers and builders, as I am not well versed in the stress and build-out of vessels. One would think that as a proof of concept, a simple temporary test could be performed using a PVC pipe on the outer hull at mid-ship to compare reading accuracy. I guess as one works a lifetime at his/her craft, they hope to leave it better than they found it and also hope to leave their mark, as did Plimsoll in 1876.

I do know that billions of dollars are traded based on Vessel Draught Surveys, which are subject to accuracy by the water which the vessel lays afloat.

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ABOUT CHRIS ZERINGUE: OWNER, MARINE TECHNICAL SURVEYORS (MTS)

Born in August of 1958, one of six children of a working class family, for Larry ‘Chris’ Zeringue, the old cliche of “born and raised on banks of the Mississippi River” could not be more true.

With his homes from birth to manhood being only yards from the river’s edge in the small town of Donaldsonville Louisiana — (all homesteads in a settlement called Smoke Bend).

The Mighty Mississippi became Chris’s playground as a child, passion as a young man and gateway to the world as an adult.

By the age of 17, Chris was working on the river — his passion and pride for his work were only outpaced by his energy levels and tireless efforts as a hard worker and businessman.

After many years of working on the river, in 1993 Zeringue founded and coowned Marine Technical Surveyors (with two other seasoned surveyors).

Zeringue worked day and night as a river rat and in suit and tie to see MTS to what it is today. MTS employs and has employed many great people, family and friends, over the past 28 years.

And like the waters of the river, and so many of its southbound vessels, Zeringue too would see his way across the world to many major ports.

Zeringue pursued that same passion on the behalf of his customers — representing their cargo and their reputations in numerous ports in countless countries.

The Zounding tube is only one of many ideas that Zeringue has arrived at in his efforts to better represent the most accurate accounts of cargo.

For Zeringue, it is not the recognition of an invention that bring his ideas to life — but rather the pride, passion and energy he takes and puts forth in the responsibility of accounting for another’s goods.

security

Mozambique’s Hi-Tech Security Could be Africa’s Model

The threat of piracy has waned around the Horn of Africa in recent years, a fact that mariners attribute to the “Djibouti rules.” Countries with coastlines on the West Indian Ocean and the Red Sea abide by the Djibouti Code of Conduct, a regional response to security, environmental and administrative challenges that have confronted shipping for many years.

In even better news, there’s now a chance for “Djibouti 2.” This wouldn’t be a diplomatic accord. Rather, advanced technology offers the promise of new dynamism to cooperation and surveillance, which we can see as a follow up to the Djibouti rules. A model for the kinds of high-tech equipment and systems that can help protect assets in the seas is now in the hands of a southern signatory to the code, Mozambique.

To be precise, the model in this case are the high-speed maritime security vessels and an accompanying set of seven unmanned radar sites and VSAT satellite surveillance services that Mozambique took delivery of a few years ago.

The wide range of threats to mariners and commercial enterprises on Africa’s East coast demand not only multinational cooperation but also real-time intelligence to inform and direct law-enforcement efforts. In its recent report on maritime security, DefenseWeb, notes that the Djibouti code has been amended to cover illicit maritime activity beyond piracy and armed robbery, such as weapons, drugs, human and wildlife trafficking; illegal waste dumping; illegal fishing; and crude oil theft. Satellite and radar are needed to pinpoint these threats.

International organizations like the U.N. Office on Drugs and Crime have focused resources on the Horn of Africa, specifically in Somalia and Somaliland. But trouble has a way of migrating down the coast. Indeed, the root causes of piracy are often ignored. According to the Africa Center for Security Policy, piracy is problem that is primarily  land-based with maritime symptoms. Many of the people who were involved in piracy and other criminal activity a decade ago are still engaged in maritime crime.  

These elements are converging in Mozambique’s Cabo Delgado province. With marauding terrorist gangs crossing Tanzania’s southern border into Cabo Delgado in northern Mozambique, spikes in violence have already been seen, including an attack there earlier this year on contractors for the U.S. energy giant Anadarko. One person was beheaded. As Anadarko and other oil and gas firms develop offshore natural gas fields, terrorists and criminals will no doubt put their sights on these target-rich environments at sea. That is the moment when satellite surveillance and radar arrays will prove valuable.

Mozambique has a state-of-the-art capacity at its disposal, even if the radar systems have not yet been deployed in some cases. This equipment, provided by the global shipbuilding company Privinvest, can be used to protect and monitor the estimated $30 billion worth of gas reserves now under development in Mozambique’s territorial waters.

In addition, the country is losing an estimated $60 million in revenue each year to illegal fishing, mostly by foreign-owned ships, according to Mozambican minister of oceans and fisheries Agostinho Mondlane. Many millions more worth of ivory, minerals, alcohol, narcotics and sugar are smuggled out of Africa through scantly-monitored ports in northern Mozambique. Tighter monitoring of its ports and maritime traffic would help the country crack down on all these crimes.

Satellite and radar tracking would complement one another especially when it comes to monitoring the Exclusive Economic Zones of coastal states in Africa. Automatic Identification Systems (AIS) aboard ships, which track vessels, can also be picked up by satellite. Illegal fishing, smuggling or pirate vessels have every reason not to turn on their AIS systems. That’s where radar systems capable of running Vessel Monitoring Systems (VMS) become essential to law enforcement. Setting up VMS with equipment already purchased by Mozambique and running them through a unified command center would make Mozambique a model to be replicated across the continent.

The Djibouti Code of Conduct depends on meaningful contributions from its signatory states. By standing up its radar stations, operationalizing its satellite services and integrating its high-speed patrol boats and interceptors into this technology-driven network, Mozambique could provide the living blueprint for maritime security in Africa.

Gregory Tosi is an attorney practicing international trade law in developing countries. He also builds personal submersibles and small boats

Pros and Cons of Maritime Shipping

For a long time in human history, maritime shipping was the best way to transport your goods across the world. About 71% of Earth’s surface is covered in oceans. Therefore, transporting your goods on a ship to another continent was a relatively straightforward operation in comparison to land shipping. However, with the advancements in technology, air-shipping has become a dominant form of long-distance transportation. Still, this doesn’t mean that maritime shipping doesn’t come with its own unique pros that make it a better choice in some cases. Of course, the cons of maritime shipping exist as well.

The pros of maritime shipping

We’ll begin by discussing the positive aspects of maritime shipping. As we said, in some situations, these advantages will be enough to tip the scales in favor of choosing maritime freight services.

There’s a lot of room on vessels and they can transport heavy goods

One of the biggest advantages of maritime shipping is that ships can carry all kinds of rather heavy goods. You will have to use ocean freight services if you’re running a business that imports or exports heavy objects, as airplanes usually cannot transport such goods. And if they can, the cost of shipping will be very high. Automobiles, various machinery, industrial parts, and so on, are just some of the things you won’t be able to transport by air (if you don’t want to spend a fortune, that is). 

Generally, maritime-shipping companies provide their customers with much more space than their air counterparts. Not only can they transport heavy goods, but they can transport a lot of them. This makes for high competitive rates and allows maritime shipping companies to easily take care of large demands. Whether you’re transporting heavy goods or a very large amount of lighter goods, maritime shipping is your best option.

Maritime shipping is highly affordable

The fact that there’s so much space on cargo transportation vessels means that it’s not hard to find the space for your goods. Then, there’s also the fact that all businesses whose goods are being carried will share the cost of the specific vessel arriving at its destination. It is primarily because of these reasons that maritime shipping is among the most affordable ways to move your cargo. And when compared with its biggest rival in terms of long-distance shipping (we’re talking about air shipping options, of course), maritime freight services are much (much) less expensive. What’s more, with maritime industry reshaping its supply chain, more accurate cost models are now being introduced. 

Vessels are more eco-friendly

When compared with aircrafts, vessels also provide much better options for eco-friendly shipping. Aircrafts use a lot of petroleum, leaving a very large carbon trail. This, in turn, damages the atmosphere. Such carbon trails disrupt the ecological balance and contribute to the negative effects of global warming. Even the slight cirrus clouds that form behind aircrafts contribute to impact these negative effects on Mother Nature.

As vessels don’t use a lot of petroleum, they leave a small carbon trail. In most cases, this makes them a better option for business-owners who are concerned with helping the planet Earth.

The cons of maritime shipping

Now it’s time to talk about the cons of maritime shipping. Depending on the situation, the advantages we’ve discussed sometimes won’t suffice, as these cons could make you choose another form of shipping.

Maritime cargo transportation is slow

If you need to transport your goods quickly, then maritime shipping will prove to be far worse for your needs than air shipping. Vessels usually have a long way to travel and they’re much slower than aircrafts. In a situation where an aircraft would transport your goods in a day or two, a ship would need an entire month to do so (and that is if there are no delays). While the situation is improving and maritime shipping is becoming faster, if you need fast shipping – vessels won’t do.

The key here is in deciding whether faster shipping will bring you more profit. If a much slower transportation speed won’t negatively influence the profits, then opting for much more affordable maritime shipping seems like the right thing to do.

Ocean freight services can suffer from delays

However, keep in mind that ocean freight shipping options can sometimes make your customers unsatisfied, as they’re not as reliable as air shipping options. Namely, ships operate on weekly schedules and different problems often occur. There’s always a good chance that your deliveries will be delayed. And your customers definitely won’t be pleased with that. While you will save some money if you opt for maritime shipping, you better learn how to communicate bad news to your customers

While their goods won’t get damaged, the possible delays will sometimes make your customers choose another supplier. However, if you don’t have a strict deadline and you don’t need to transport the goods very quickly, then maritime shipping could be the best option for you.

About the author: Originally from New Jersey, Alex Durick has been working for bfslebanon.com for three years now. He specializes in freight services related to relocation and also shares bits of knowledge on his company’s blog. Six years worth of experience in the freight business has made him an expert in many areas related to freight shipping, and he’s happy to share his findings with anyone who’s willing to listen.