Shipping & logostics Nov18

Page 1

shippinglogistics The Malta Independent on Sunday NOVEMBER 2018


2

NOVEMBER 2018

|

shippinglogistics

Seagrass, protector of shipwrecks and buried treasure For more than 6,000 years, seagrass meadows in Australia’s coastal waters have been acting as security vaults for priceless cultural heritage. Oscar Serrano, Carlos Duarte, David John Gregory, Dorte Krause-Jensen and Eugenia Apostolaki writes

S

eagrass meadows accumulate marine sediments beneath their leaves, slowly burying and safeguarding wrecks in conditions that museum curators can only dream of. It’s a process that takes centuries, as mats of seagrass and sediments cover the wrecks and all their buried treasure. Seagrass sedimentary deposits

also hold archives of wider environmental change over millennia and are important sinks for atmospheric carbon dioxide, known as Blue Carbon. But human development, climate change and storms are threatening fragile seagrass meadows around the world, and that risks the loss of the important cultural heritage they protect as well as some of the

world’s most productive marine ecosystems. Our research, carried out by an international team of scientists in Australia, Denmark, Saudi Arabia and Greece, shows that seagrass meadows, hidden beneath our oceans, gradually build up the seafloor over millennia by trapping sediments and particles and depositing those materials as they

grow. The organic and chemical structure of seagrass sedimentary deposits is key to its ability to protect shipwrecks and submerged prehistoric landscapes. These structures are extraordinarily resistant to decay, creating thick sediment deposits that seal oxygen away from archaeological sites, preventing ships’ timbers and other materials from rotting away. Seagrass meadows are under environmental stress due to climate change, storms and human activity. Recent disturbances and losses have exposed shipwrecks and archaeological artefacts that were previously preserved beneath the sediment. Once the protective cover of seagrass is gone, the ships and other sites begin to break down. If you lose seagrass, you lose cultural heritage. Seagrass meadow losses in the Mediterranean have exposed Phoenician, Greek and Roman ships and cargo, many of which are thousands of years old. Unless these effects can be stemmed, the frequency of exposures is likely to increase. This has already put European archaeologists and marine scientists in a race against the clock. Around 7,000 shipwrecks are thought to lie in Australia’s coastal waters. Seagrass disturbance led to the unearthing in 1973 of the James Matthews, a former slave ship that sank in 1841 in Cockburn Sound, Western Australia, and the Sydney Cove, which ran aground off Tasmania’s Preservation Island in 1797, forcing survivors to walk 700km to Sydney.


shippinglogistics

|

3

NOVEMBER 2018

Roman amphorae from a late Roman shipwreck in South Prasonisi islet, Greece, surrounded by seagrass meadows. T. Theodoulou., Author provided Artefacts and pieces of the James Matthews’ hull have been recovered and studied at the WA Museum. Meanwhile, the recovery of beer bottles from the Sydney Cove has led, remarkably, to 220-year-old brewing yeast being cultivated and used to create a new beer – fittingly enough called The Wreck.

Revealing wrecks We and our colleagues are aiming to match shipwreck data with seagrass meadow maps. From there, we hope new acoustic techniques for

below-seabed imaging will allow exploration of underwater sites without disturbing the overlying seagrass meadows. Controlled archaeological excavation could then be undertaken to excavate, document and preserve sites and artefacts. We also believe there’s significant potential to find archaeological heritage of early Indigenous Australians buried and preserved in seagrass meadows. Sea level around Australia rose around 6,000 years ago, potentialy submerging ancient indigenous settlements located in coastal areas, which may now be covered by

seagrass. The danger of not putting these protections in place is evidenced by treasure-hunters off the Florida coast, who have adopted a destructive technique called “mailboxing” to search for gold in Spanish galleons. This involves punching holes into sediment to find and then pillage wrecks, an action that damages seagrass meadows and archaeological remains. The accumulated sediments in seagrass meadows could also help build a record of environmental conditions, including fingerprints of human culture.

These archives can be used to reconstruct prehistoric changes in land use and agriculture, mining and metallurgical activities, impacts of human activities on coastal ecosystems, and changes associated with colonisation events by different cultures. Think of it as a coastal equivalent to polar ice cores. Seagrass records could even help us understand, predict and manage the effects of current environmental changes. But to do all this, we first need to realise what a truly valuable resource seagrass is. Granted, it doesn’t look spectacular, but it can do some pretty spectacular

things – from sucking carbon out of the skies, to underpinning entire ecosystems, and even guarding buried treasure. Oscar Serrano, Doctor of Global Change, Edith Cowan University Carlos Duarte, Adjunct professor, King Abdullah University of Science and Technology David John Gregory, Senior Researcher, National Museum of Denmark Dorte Krause-Jensen, Senior Researcher, Marine Ecology, Aarhus University Eugenia Apostolaki, Researcher, Institute of Oceanography, Hellenic Centre for Marine Research


4

NOVEMBER 2018

|

shippinglogistics

MORTGAGE AMENDMEN when are they required?

■ Lara Saguna Axiaq

A

mortgage over a Malta-flagged vessel may be drawn up to secure the payment of a principal sum and interest, an account current (ie, an

indebtedness arising and determinable in accordance with an underlying obligation) or the performance of any other obligation – including a future obligation – due to a creditor by the debtor. Shipowners may register a mortgage to secure not only

their obligations, but also those of a third party. Notably, the shipowners' obligation to register a mortgage must always arise from an underlying obligation reflected in an underlying security document. The mortgage narrative must refer to the underlying security doc-

ument and specifically refer to the obligation which is secured by the mortgage. The parties to an underlying security document may enter into negotiations resulting in changes to the terms set out in the security document. The question that therefore arises is

whether a mortgage amendment should be registered to reflect the new terms.

When should mortgage amendments be registered? The Merchant Shipping Act

Maersk transformation sees MCC SEAGO folded into SEALAND BRA

I

n the ongoing transformation of the A.P. Moller-Maersk Group, the Asia regional line MCC Transport, European regional line Seago Line, and its Americas regional brand Sealand have been unified under one brand, Sealand – a Maersk Company. “Operating in different parts of the world, MCC, Sealand, and Seago Line have built a similar value proposition and close relationships with customers.” The three companies will continue to operate independently, as they will operate as Sealand Asia, Sealand Europe & Med,

and Sealand Americas. Consequently, the three teams in three locations, Singapore, Copenhagen and Miami respectively would remain unchanged. The integrated commercial organisation will operate with one management team, one sales force, a product organisation and one customer experience organisation. The simplified naming structure for these brands will help strengthen brand recognition and ensure clarity of choice for customers. “They are all standing for speed, agility and care – values that have proven to be core driv-

ers for the customers of all three intra-regional brands,” a Maersk statement claimed. “As part of the larger Maersk family we will continue to be your regional partner with the benefit of their global scale and reach. Because the only thing changing is our name”, Sealand – A Maersk Company said in its press release.

About Maersk Line Maersk Line has been known for its reliable, flexible and eco-efficient trans-


shippinglogistics

NTS –

(Cap 234 of the Laws of Malta), as amended, gives clear guidance as to when a mortgage amendment must be registered. The act sets out that while a mortgage amendment may be effected for any purpose, the registration of such amendment is mandatory if it aims to: increase the amount secured

C and AND portation and logistics services. Today, it provides end-to-end transportation to every corner of the globe. They number 630 vessels and 33,000 employees, with 306 offices in 114 countries. Thomas Smith Group was appointed as the local agent of Maersk Line in 2009. Maersk is renowned internationally not solely for being the most secure and reliable container shipping company, but also the most environmentally friendly.

|

5

NOVEMBER 2018

by the mortgage; or extend the mortgage to secure, whether as principal or surety, another obligation of the mortgagor to any other person, in favour of the mortgagee. Where an amendment increases the amount secured by the mortgage, the law clarifies that certain agreements are not considered "an increase in the amount secured by the mortgage" – in particular, agreements to amend or vary: • the rates of interest payable; • the modalities for calculating interest, including any indices, margins or market mechanisms;

• the repayment schedule; or • the currency in which payment is to be made. In other words, loan restructurings do not warrant the execution and registration of a mortgage amendment. Alternatively, in cases where the amendment aims to extend the mortgage to secure another obligation of the mortgagor, the law provides that where a new obligation qualifies as a 'future obligation' of the mortgagor secured by the mortgage, such amendment need not be executed and registered if the new obligation falls within the maximum sum by way of principal as stated in

the mortgage deed. While registration of a mortgage amendment in the cases above is specifically required by law, an amendment for any other reason remains optional and at the discretion of the parties. However, an amendment may not be registered after the obligation secured by the registered mortgage has been satisfied. A mortgage deed can be amended by the mortgagor as long as the mortgagee's written consent is included in the amendment deed; this consent must be attested by a witness. Further, if other mortgages are already registered over the ves-

sel, the amendment may be registered if all of the registered mortgagees whose interests may be prejudiced by the said amendment provide their written consent to the registrar of ships. Once an amendment has been registered, this forms an integral part of the original mortgage and the priority of the original mortgage is not affected. For further information on this topic please contact Lara Saguna Axiaq, a Senior Associate at Fenech & Fenech Advocates by telephone (+356 2124 1232) or email (lara.saguna@fenlex.com).


6

NOVEMBER 2018

|

shippinglogistics

As ARCTIC SHIP TRAFFIC increases, NARWHALS and o UNIQUE ANIMALS ARE AT Most Americans associate fall with football and raking leaves, but in the Arctic this season is about ice. Every year, floating sea ice in the Arctic thins and melts in spring and summer, then thickens and expands in fall and winter. Experts Donna Hauser, Harry Stern and Kristin Laidre investigate

A

s climate change warms the Arctic, its sea ice cover is declining. This year scientists estimate that the Arctic sea ice minimum in late September covered 1.77 million square miles (4.59 million square kilometers), tying the sixth lowest summertime minimum on record. With less sea ice, there is burgeoning interest in shipping and other commercial activity throughout the Northwest Passage – the fabled route that links the Atlantic and Pacific oceans, via Canada’s convoluted Arctic archipelago – as well as the Northern Sea Route, which cuts across Russia’s northern seas. This trend has serious potential impacts for Arctic sea life. In a recent study, we assessed the vulnerability of 80 populations of Arctic marine mammals during the “openwater” period of September, when sea ice is at its minimum extent. We wanted to understand the relative risks of vessel traffic across Arctic marine mammal species, populations and regions. We found that more than half (53 percent) of these populations – including walruses and several types of whales – would be exposed to vessels in Arctic sea routes. This could lead to collisions, noise disturbance or changes in the animals’ behavior.

Less ice, more ships

More than a century ago, Norwegian explorer Roald Amundsen became the first European to navigate the entire Northwest Passage. Due to the short Arctic summer, it took Amundsen’s 70-

foot wooden sailing ship three years to make the journey, wintering in protected harbors. Fast-forward to summer 2016, when a cruise ship carrying more than 1,000 passengers negotiated the Northwest Passage in 32 days. The summer “openwater” period in the Arctic has now increased by more than two months in some regions. Summer sea ice cover has shrunk by over 30 percent since satellites started regular monitoring in 1979. Arctic seas are home to a specialized group of marine mammals found nowhere else on Earth, including beluga and bowhead whales, narwhals, walruses, ringed and bearded seals and polar bears. These species are critical members of Arctic marine ecosystems, and provide traditional resources to Indigenous communities across the Arctic. According to ecologists, all of these animals are susceptible to sea ice loss. Research at lower latitudes has also shown that marine mammals can be affected by noise from vessels because of their reliance on sound, as well as by ship strikes. These findings raise concerns about increasing vessel traffic in the Arctic.

ity, a combination of biological, ecological and vessel factors that may put a population at a higher risk. As an illustration, imagine calculating vulnerability to air pollution. People generally are more exposed to air pollution in cities than in rural areas. Some groups, such as children and the elderly, are also more sensitive because their lungs are not as strong as those of average adults. We found that many whale and walrus populations were both highly exposed and sensitive to vessels during the openwater period. Nar-

whals – medium-sized toothed whales with a large spiral tusk – scored as most vulnerable overall. These animals are endemic to the Arctic, and spend much of their time in winter and spring in areas with heavy concentrations of sea ice. In our study, they ranked as both highly exposed and highly sensitive to vessel effects in September. Narwhals have a relatively restricted range. Each summer they migrate to the same areas in the Canadian high Arctic and around Greenland. In fall they migrate south in pods to offshore areas in Baffin Bay and Davis Strait, where they spend the winter making deep dives

Sensitivity times exposure equals vulnerability

To determine which species could be at risk, we estimated two key factors: Exposure – how much a population’s distribution overlaps with the Northwest Passage or Northern Sea Route during September – and sensitiv-

Map of the Arctic region showing the the Northern Sea Route and Northwest Passage. Arctic Council/Susie Harder

Bowhead whale (Balaena mysticetus) in Disko Bay, West Greenland. Kristin Laidre, CC BY

A pod of narwhals (Monodon monoceros) in central Baffin Bay. Narwhals are the most vulnerable animals to increased ship traffic in the Arctic during September. NOAA/OAR/OER/Kristin Laidre


shippinglogistics

|

7

NOVEMBER 2018

other T RISK

Ringed seal (Pusa hispida) pup in Alaska. NOAA under the dense ice to feed on Greenland halibut. Many narwhal populations’ core summer and fall habitat is right in the middle of the Northwest Passage.

Vulnerable Arctic regions, species and key uncertainties The western end of the Northwest Passage and the eastern end of the Northern

Sea Route converge at the Bering Strait, a 50-mile-wide waterway separating Russia and Alaska. This area is also a key migratory corridor for thousands of beluga and bowhead whales, Pacific walruses and ringed and bearded seals. In this geographic bottleneck and other narrow channels, marine mammals are particularly vulnerable to vessel traffic. Among the species we assessed, polar bears were least vulnerable to September vessel traffic because they generally spend the ice-free season on land. Of course, longer ice-free seasons are also bad for polar bears, which need sea ice as a platform for hunting seals. They may also be vulnerable to oil spills yearround. Research in the harsh and remote Arctic seas is notoriously difficult, and there are many gaps in our knowledge. Certain areas, such as the Russian Arctic, are less studied. Data are sparse on many marine mammals, especially ringed and bearded seals. These factors increased the uncertainty in our vessel vulnerability scores. We concentrated on late summer, when vessel traffic is expected to be greatest due to reduced ice cover. However, ice-strengthened vessels can also operate during spring, with potential impacts on seals and polar bears that are less vulnerable in September. The window of opportunity for navigation is growing as sea ice break-up happens earlier in the year and freeze-up occurs later. These changes also shift the times and places where marine mammals could be exposed to vessels.

Planning for a navigable Arctic Recent initiatives in the lower 48 states offer some models for anticipating and managing vessel-marine mammal interactions. One recent study showed that modeling could be used to predict blue whale locations off the California coast to help ships avoid key habitats. And since 2008, federal regulations have imposed seasonal and speed restrictions on ships in the North Atlantic to minimize threats to critically endangered right whales. These practical examples, along with our vulnerability ranking, could provide a foundation for similar steps to protect marine mammals in the Arctic. The International Maritime Organization has already adopted a Polar Code, which was developed to promote safe ship travel in polar waters. It recommends identifying areas of ecological importance, but does not currently include direct strategies to designate important habitats or reduce vessel effects on marine mammals, although the organization has taken steps to protect marine habitat in the Bering Sea. Even if nations take rigorous action to mitigate climate change, models predict that September Arctic sea ice will continue to decrease over the next 30 years. There is an opportunity now to plan for an increasingly accessible and rapidly changing Arctic, and to minimize risks to creatures that are found nowhere else on Earth.


8

NOVEMBER 2018

|

shippinglogistics

2018 – A Milestone Year for EXPRESS TRAILERS

“R

eviewing Express Trailers’ performance over the past months, I can say that 2018 has been a milestone year for Express Trailers as the local logistics sector, positively correlated to the national policy of growth in the population continued to yield a heightened demand for consumer goods,” said Franco Azzopardi, Chairman and CEO of Express Trailers. Giving a round-up of the company’s major initiatives throughout the year, Mr Azzopardi referred to the warehousing operations that are now at full capacity and the company’s ongoing investment project in a new IT core system. “From an operational perspective, we consolidated our hubbing concept with the completion of a new 2,800sqm warehouse facility in Qormi, a

move that helped us centralize all our managed warehousing activity in one depot to cater for the increased business in this sector. We also set up our new company Express Trailers Engineering with the objective of serving our maintenance needs and to serve HammarMaskin of Sweden in rebuilding reengineered side-loaders.” “Internally, from an HR perspective, we set up our dedicated Express Trailers Training Academy with the aim of providing our employees with ongoing training and to develop the next generation of logistics employees based on a blend of theory, practice and experience. And as part of our CSR, we continued to assert our commitment towards road safety with the launch of a national Express Road Safety Campaign to promote safer roads for everyone.” “The roll-out of our new core logistics and transport IT plat-

Express Trailers’ ShipLowCost.com will be a priority during 2019 with the launch of a B2B service form will pose the most significant challenge for our people but it is a project to which we have been giving a lot of energy over the past three years. With the involvement of all key people, users, risk function, IT, project management, legal, and the board, I am very confident that this will continue to position Express Trailers as the foremost logistics operator on the island,” concluded Franco Azzopardi. Asked about the main challenges that the international logistics sector might be facing next year, Franco Azzopardi referred to Brexit as a potential main concern for the international logistics sector. “Brexit could be a concern for logistics operators especially if there is a melt-down of trade agreements, transit conven-

tions, security agreements and other currently available arrangements and facilities. Although the UK is aiming for a Facilitated Customs Arrangement (FCA) practice shows that this will be difficult to apply before the end of the transitional period,” he said. Referring to the company’s priorities and goals for 2019, Franco Azzopardi explained how from a commercial aspect, one of the priorities is going to be ShipLowCost.com’s B2B service which is now adding export service for online sales done by Malta-based retailers. Internally, our topmost efforts will be trained on the implementation of a 3-year IT project that will see our operations using best-of-breed logistic planning and administration core systems.


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.