Maritime Industry Focus – Happag-Lloyd, CMA CGM, Evergreen, Mersk, MSC Mediterranean, Cosco and others
We live in a global society which is supported by a global economy – and that economy simply could not function if it were not for ships and the shipping industry. Shipping is truly the lynchpin of the global economy: without shipping, intercontinental trade, the bulk transport of raw materials and the import/export of affordable food and manufactured goods would simply not be possible.
Shipping is perhaps the most international of all the world’s great industries and one of the most dangerous. It has always been recognized that the best way of improving safety at sea is by developing international regulations that are followed by all shipping nations. Regulating the maritime industry to promote safety and security and prevention of pollution from ships worldwide has been the function of the International Maritime Organization since its inception in 1959. The work of IMO is well documented through its numerous conventions and codes and on the Organization’s website.
Of all the sectors that make up the global transport infrastructure, shipping probably has the lowest public profile and the least representative public image. Its importance is not well known although not a single area of our life remains unaffected by it. The IMO Council at its 93rd session in November 2004 endorsed the proposal of Secretary-General Mr. Efthimios Mitropoulos that the theme for World Maritime
Day 2005 would be “International Shipping – Carrier of World Trade”. The theme was chosen to provide an ideal opportunity to draw attention to the vital role that shipping plays in underpinning the international economy and its significant contribution to international trade and the world economy as the most efficient, safe and environmentally friendly method of transporting goods around the globe.
Companies in this industry provide deep sea transportation of cargo to or from foreign ports. Major companies include CMA CGM (France), COSCO (China), Crowley (US), Evergreen (Taiwan), Hapag-Lloyd (Germany), Mærsk (Denmark), and MSC Mediterranean Shipping (Switzerland).
Because of the nature of the deep sea shipping business, activity in the industry is spread throughout the world. The port of Shanghai was the largest container port in 2022, with a capacity of 47 million twenty-foot equivalent units (TEU), according to the Maritime Executive. The busiest container ports include Singapore, Hong Kong, Busan, Shenzhen, Guangzhou, Ningbo-Zhoushan, Qingdao, Tianjin, and Rotterdam.
The US deep sea shipping industry includes nearly 270 establishments (single-location companies and units of multi-location companies) with combined annual revenue of around $6 billion. US coastal and Great Lakes shipping, which includes deep sea shipping between US ports, is covered in a separate industry profile, as are cruise ship operations.
US East and Gulf Coast Port Strike Disruption
As you may be aware, the ongoing negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance, Ltd. (USMX) may not be resolved before the current contract between the ILA and USMX expires on September 30 and then may result in port strikes. To keep the public and stakeholders informed about the latest developments, USMX continues to provide regular updates on its website: USMX-ILA Negotiations Updates | USMX.
In the event of port strikes, MSC is ready to assist customers in exploring options to keep their supply chains moving smoothly through alternative routes, transport modes, or distribution schedules. To help you plan, please reach out to your local MSC representative.
MSC provides the following operational guidance regarding its temporary policies for U.S. cargo bookings, as well as its policies for demurrage, detention, and per diem charges for all cargo bookings on or after October 1st, to or from any U.S. East and Gulf Coast ports.
1.1 FOR NORTH AMERICA EXPORT CARGO VIA US EAST AND GULF COAST
CARGO BOOKING POLICY
If the port strike occurs, all U.S. East Coast and Gulf Coast export bookings for voyage on or after September 30th will be impacted. Booking adjustments including rolls to other vessels or cancellations may be needed.
New Export Bookings through US East and Gulf Coast ports:
MSC will continue to accept bookings for Dry cargo.
MSC reserve the right to not accept new refrigerated bookings via these ports where there is a risk to the refrigeration services due to the port strike for vessels departing on or after October 1st, 2024.
DEMURRAGE, DETENTION, AND PER DIEM POLICY
MSC urges customers to move equipment before October 1st, with many terminals offering extended gate hours. Check the terminal websites for updates.
Demurrage and Detention (port storage and container use inside the terminal)
MSC will follow terminal policy and only pass through at cost any Demurrage charges imposed by terminals during the strike.
MSC will stop the clock on Detention Charges during the strike and once the strike has ended will resume billing following its tariffs.
Per diem (container use beyond free time outside the terminal):
MSC will stop the clock on Per Diem Charges during the strike and once the strike has ended will resume billing following its tariffs.
MSC will refuse any liability arising from the strike and the impossibility to access the terminal.
RAIL RAMPS & IPI CARGO POLICY
MSC will align its policy to that of the rail ramp operators. If, the rail ramp operators cease to accept containers at origin ramps for US East and Gulf Coast bound ports, MSC will do the same.
1.2 FOR NORTH AMERICA IMPORT CARGOS VIA US EAST AND GULF COAST
MSC has implemented the following temporary policy for import cargo via U.S. East and Gulf Coast ports.
CARGO BOOKING POLICY
If the port strike occurs, all U.S. East Coast and Gulf Coast imports bookings for voyage on or after October 1st will be similarly impacted. Booking adjustments including rolls to other vessels or cancellations may be needed.
New Import Bookings through US East and Gulf Coast ports:
MSC will continue to accept bookings for Dry cargo.
MSC reserve the right to not accept new refrigerated bookings via these ports where there is a risk to the refrigeration services due to the port strike.
MSC will refuse any liability arising from the strike due to reefer containers left uncollected at terminals.
DEMURRAGE, DETENTION AND PER DIEM POLICY
MSC urges customers to pick up their import cargo before October 1st, with many terminals offering extended gate hours. Check the terminal websites for updates.
Demurrage and Detention (port storage and container use inside the terminal)
MSC will follow terminal policy and only pass through at cost any Demurrage charges imposed by terminals during the strike.
MSC will stop the clock on Detention Charges during the strike and once the strike has ended will resume billing following its tariffs.
Per diem (container use beyond free time outside the terminal):
MSC will stop the clock on Per Diem Charges during the strike. Once the strike has ended, MSC will resume billing following its tariffs.
MSC will refuse any liability arising from the strike and the impossibility to return empty containers to the marine terminal.
Should you have any questions, please contact your local MSC representative.
FMC to Use Investigatory Authorities When Reviewing Filed Agreements
The Federal Maritime Commission today issued a policy statement advising it may use existing administrative investigatory authorities when reviewing the competitive effects of cooperative agreements filed at the agency. Such agreements are exempt from the antitrust laws under 46 U.S.C. 40307 and are reviewed and monitored by the Commission.
Using its administrative investigatory authorities allows the Commission to more rigorously review filed agreements by gathering evidence via subpoenaing witnesses and documents, and by holding hearings. In addition to investigative reviews yielding more comprehensive examinations of filed agreements, the Commission will be better prepared under this process to present well-supported arguments in any court proceedings where it seeks to enjoin an agreement from going into or remaining in effect. The Commission will use its authorities under 46 U.S.C. 41302-41304 and all applicable regulations to conduct these investigations.
Not all filed agreements will be reviewed using the Commission’s investigatory authorities. The Commission has the discretion to determine which agreements warrant more careful screening than others.
The statement of policy was adopted by a vote of the Commission.
Ocean carriers or marine terminal operators can work cooperatively if they have filed an agreement at the Federal Maritime Commission. The Commission determines if a filed agreement is anticompetitive using the standards found at 46 U.S.C. 41307(b). If the Commission determines that an agreement is anticompetitive, the agency can seek injunctive relief from a U.S. District Court to halt the agreement’s operation, either temporarily or permanently.
AWWA Awarded EPA Grant to Bolster Water Workforce Leadership
The U.S. Environmental Protection Agency (EPA) announced today that the American Water Works Association (AWWA) has been awarded a $852,000 grant to support the Transformative Water Leadership Academy (TWLA), a collaborative effort between AWWA and WaterNow Alliance (WaterNow) that cultivates and develops the next generation of water utility leaders.
“Today’s announcement is great news for the future of water,” said David LaFrance, AWWA CEO. “EPA’s grant ensures the Transformative Water Leadership Academy can offer more water professionals the opportunity to develop the leadership skills they will need to address the complex challenges the water sector faces today and into the future. By investing in these emerging leaders, we, together with EPA, are investing in the future of water systems and the communities they serve each and every day.”
The TWLA’s 10-month, cohort-based experiential leadership development program prepares water leaders to address emerging one water challenges through the foundations of sustainable community leadership. The TLWA’s focus on foundational pillars, such as diversity, action and community engagement help ensure a strong and sustainable water workforce that helps communities thrive.
“We are delighted to be continuing our partnership with AWWA in producing the Transformative Water Leadership Academy,” said Cynthia Koehler, executive director, WaterNow. “TWLA is unique with its focus on environmental sustainability, innovation, equity, and community trust building to support development of the water sector’s Next Gen leaders, and we are very grateful for EPA’s support for the program.”
With the EPA grant, AWWA will fund two additional TWLA cohorts in 2025 and 2026. In addition to the core curriculum, the grant will allow for expanded mentorship opportunities to support the continued professional development and growth of program participants and graduates.
“Collaboration is essential to creating a sustainable and resilient water workforce,” said Barb Martin, director, engineering and technical services, AWWA. “The TWLA builds networks to support exchanging knowledge and best practices to address the water challenges of today, and into the future. We are grateful to EPA for providing funding support to advance the TWLA program.”
The TWLA program is designed to:
Enhance leadership skills: Participants engage in a comprehensive curriculum covering topics such as public health protection, environmental stewardship, community engagement, and innovative problem-solving.
Embrace diversity and inclusion: The program actively recruits a diverse cohort of participants, reflecting the communities they serve.
Build a network: TWLA connects participants with a network of mentors and peers from across the water community, fostering collaboration and knowledge sharing.
Drive community impact: Participants complete capstone projects that address real-world water challenges in their communities.
EPA’s Innovative Water Workforce Development Grant Program provided more than $20 million in funding to support water workforce development and advancement through initiatives including apprenticeships, regional collaboration and leadership development.
Applications will be accepted for the 2025 TWLA cohort from Aug. 1 through Sept. 25. For more information about the TWLA program and application process, please visit awwa.org/TWLA.
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Established in 1881, the American Water Works Association is the largest nonprofit, scientific and educational association dedicated to managing and treating water, the world’s most vital resource. With approximately 50,000 members, AWWA provides solutions to improve public health, protect the environment, strengthen the economy and enhance our quality of life.
AWWA recognizes rising stars in water sector with 5 Under 35 Award
The American Water Works Association (AWWA) recognized the five recipients of its 5 Under 35 – Outstanding Young Professional Award at its recent ACE24 event in Anaheim. The award, which debuted in 2021, recognizes and honors AWWA members under the age of 35 who have demonstrated outstanding service to their Sections or the Association through leadership and active participation in young professional (YP) programs.
The 2024 award winners are:
Jessica Agsalda, Hawaii Section
Project Manager, The Limtiaco Consulting Group, Honolulu County, Hawaii
2020 recipient, Outstanding Section Member
Past Section At-Large Trustee
Past Section YP Chair, Vice Chair and Secretary
Past Section Chair, Youth Education Committee
Section Chair, Newsletter Committee
Member, Section Water Conference Committee
Past Chair, Section YP, Community Service Committee
M.S. and B.S., Civil Engineering, University of Hawaii at Manoa
Lillian Meighan, Virginia Section
Communications Specialist, Western Virginia Water Authority, Roanoke
Past YP Trustee, Section Board
Past Chair, Section Water Awareness & Outreach Committee
Co-creator, award-winning educational video series for City of Lynchburg’s Water Resources Department
B.S., Natural Resources & Conservation, Virginia Tech; M.S., Agricultural & Environmental Education, University of Georgia
Lily Lopez, California-Nevada Section
External Affairs & Sustainability Director, Walnut Valley Water District, California
2023 Graduate, Transformative Leadership Water Academy
2023 Young Professional of the Year (Section)
Vice Chair, Section Inclusion & Diversity Committee
Member, Section YP Committee
Founder, Young Professionals Development Program for regional water agencies
Board Member, Water Education Foundation
B.A., Political Science, University of California, Santa Barbara
Lindsay Anderson, Atlantic Canada Section
Research Engineer and Post-Doctoral Fellow, Centre for Water Resources Studies, Dalhousie University, Halifax, Nova Scotia
Section Board, Technical Director
Past Section Board, Member Involvement Director
Past Section Chair, YP Committee
B. Engineering, MASc. and Ph.D., Civil Engineering, Dalhousie University
Pooja Chari, New England Section
Water Infrastructure Engineer, Woodward & Curran, Canton, Massachusetts
Member, AWWA YP Committee (YPC) and Co-Chair, YP Leader Training
Past Chair, YPC Student Outreach Subcommittee
Past Chair, Vice Chair, YP Summit Programming
Past Chair, Vice Chair, YP Summit Planning
YP Liaison, International Council; Past YP Liaison, Technical and Educational Council
Member, New England YP Committee
Past Ohio Section Chair, YP and Communications Committees
B.S., Chemical Engineering, Institute of Chemical Technology; M.S., Environmental Engineering, University of Cincinnati
“AWWA is lucky to have such incredible talent and passion in our Young Professionals community,” said AWWA President Cheryl Porter. “The future of water hinges on their dedication, innovation and leadership, and we’re proud to recognize their achievements and support them as they blossom into the next generation of water leaders.”
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Established in 1881, the American Water Works Association is the largest nonprofit, scientific and educational association dedicated to managing and treating water, the world’s most vital resource. With approximately 50,000 members, AWWA provides solutions to improve public health, protect the environment, strengthen the economy and enhance our quality of life.
American Waterways Operators Releases Video Highlighting American Waterways HERO Award
ARLINGTON, Va. — The American Waterways Operators has produced a new video showcasing the American Waterways Honor & Excellence in Rescue Operations (HERO) Award. The HERO Award, established on March 1, 2023, documents and recognizes rescues undertaken by AWO member company employees that demonstrate selflessness, skill and bravery.
The two-minute video, The American Waterways HERO Award: Honoring Industry’s Heroic Mariners, highlights the bravery of Award recipients as well as the important role that tugboat, towboat and barge industry mariners play in keeping our waterways safe. The video also features several awardees who shared their insights on their rescue efforts and on the industry’s dedication to safety culture. “If somebody goes in the water, we’re going to go get them,” explains one mariner. “I didn’t do anything that anybody else on any one of these boats wouldn’t have done.”
Examples of the rescues honored since the HERO Award’s founding include rescues of persons who fell overboard, assistance of disabled vessels, prevention of collisions, response to recreational boat sinkings, and much more.
AWO President & CEO Jennifer Carpenter commented: “The HERO Award was created to recognize the heroism, professionalism, and selflessness of the men and women of America’s tugboat, towboat and barge industry. Their actions prevent harm and save lives on the water every day. We are so proud to share these stories, which exemplify the industry’s commitment to safety, and to shine a richly deserved light on the people who make the waterways safer for all.”
Qualifying events for the award include, among others: rescuing commercial or recreational mariners; responding to a medical emergency onboard; recovering a person who has fallen overboard; responding to a person in distress while traveling to/from the boat; and other selfless service actions that reflect the safety culture of the American tugboat, towboat and barge industry. Companies wishing to nominate employees for an American Waterways HERO Award can visit our website to fill out an informational form: https://c212.net/c/link/?t=0&l=en&o=4184380-1&h=357444794&u=https%3A%2F%2Fwww.americanwaterways.com%2Fhero-award&a=our+website
American Waterways Operators Elects Kelly Teichman of T&T Marine Salvage as Chair
ARLINGTON, Va. — The members of the American Waterways Operators, the national tugboat, towboat and barge industry association, elected a new slate of leaders last week during the association’s Spring Convention and Annual Membership Meeting.
Kelly Teichman, Executive Chairman, T&T Marine, was elected Chairman; Patrick Sutton, Chief Operating Officer, American Commercial Barge Line, was elected Vice Chair; and Brian Hughes, Vice President Operations & Sales, Hughes Bros., Inc., was re-elected Treasurer. Ms. Teichman succeeds outgoing Chairman Rick Iuliucci, Vice President, the Vane Brothers Company.
AWO President & CEO Jennifer Carpenter commented:
“We are energized to begin this next year of AWO’s 80-year history with Kelly at the helm. We have been so fortunate to have a succession of strong, dedicated member leaders, including our outstanding Immediate Past Chairman Rick Iuliucci, and I have no doubt that Kelly will continue this successful track record in her leadership.”
Ms. Teichman, AWO’s first female Chairman of the Board, highlighted the importance of fundamentals in her first remarks as Chair:
“Over the years I have found that the importance of building a strong foundation for a strong future rings true not just at my company, but across our entire industry, and for AWO, our industry’s advocate, resource and united voice. It is an approach that all of us together have collectively applied to our priorities as an industry, and it has effectively positioned us to navigate today’s challenges and create tomorrow’s opportunities.”
She also underlined the industry’s career pathways, which are open to anyone willing to put in the effort, and touched on the rising role of women:
“There is a place here for anyone who is committed to working hard, being part of a team and having a meaningful impact on our country and its supply chain. If you have what it takes, you are not only encouraged to join this industry, but to rise through the ranks and thrive within it no matter where you come from, no matter your background. In that regard, I’m especially excited for the continuing prominence of women in this industry, whether on the boats or shoreside, and I look forward to contributing positively to their experience however I can,” she explained.
Ms. Teichman concluded:
“My goal is to make sure we avail ourselves of the solid foundation we have built together, by positioning Jennifer for continued success as our President & CEO and as the highly effective leader of the AWO staff team; by positioning the staff to continue to excel and draw from the range of skills and experience of this talented group; and by ensuring all members are heard and have the opportunity to contribute in the ways that work best for them, because the strength of our united voice resides in the operational diversity of our industry.”
Testimony of Chairman Maffei before Congress: Review of Fiscal Year 2025 Budget Request for the Coast Guard and Maritime Transportation Programs
Statement of
Daniel B. Maffei
Chairman
Federal Maritime Commission
On
“Review of Fiscal Year 2025 Maritime Transportation Budget Requests, Pt. 1:
Maritime Administration and Federal Maritime Commission”
Before the
Subcommittee on Coast Guard and Maritime Transportation
Committee on Transportation and Infrastructure
U.S. House of Representatives
Good afternoon, Chairman Webster and Ranking Member Carbajal. I appreciate having this opportunity to appear before you today to discuss the Fiscal Year 2025 budget request of the Federal Maritime Commission.
America’s importers and exporters are having to adapt to rapidly changing circumstances around the world that impact ocean shipping. They deserve a Federal Maritime Commission that is also able to adapt as rapidly as possible to the varying challenges that can affect the cost, availability, reliability, and competitiveness of ocean shipping available at container ports throughout the United States.
As many of you know and some have probably experienced, changing the capacity, priorities, and culture of a government agency is not always as simple or as quick as we would like. Nonetheless, thanks to five devoted Commissioners, a professional staff truly dedicated to helping American shippers, and a clear message from Congress and from the President, the Federal Maritime Commission in just a few years has changed course to actively address many of the pressing issues in ocean shipping that became so evident during the COVID-related supply chain crisis.
Informed by our experiences during the pandemic and empowered by the Ocean Shipping Reform Act of 2022 (OSRA 2022), the Commission is more active than ever, leaning into unfolding events, and increasingly serving as a venue that shippers turn to for assistance.
Our consumer affairs team remains busy, averaging more than 100 contacts monthly from individuals seeking help. Since June 2022, our Office of Consumer Affairs and Dispute Resolution Services (CADRS) has responded to approximately 2,400 requests for assistance, the great majority related to issues with commercial cargo shipments. CADRS is often successful in resolving matters quickly and amicably, and in a way that helps the parties avoid costly formal legal proceedings.
Matters before the Office of the Administrative Law Judges are triple what they were in 2019, the last full year prior to the global spread of COVID-19. Almost 100 cases have been filed at the Commission since June 2022, which is an unmatched level of litigation in the agency’s recent history. Nor is there any indication that the pace of work is lessening. In assessing year-to-date statistics, the Commission is on pace to meet or exceed the number of complaints it received last year. That even two years after the end of the COVID-linked supply chain disruption, the Commission remains a venue for shippers to bring matters for assistance and adjudication demonstrates that the need for, and value of, FMC services is strong. This suggests that one legacy of COVID is that the public and the industry are more aware of the FMC, and that American shippers view the FMC as the agency that can resolve their concerns and have a positive impact on their businesses.
The Commission continues to build a robust enforcement capability with the wherewithal to conduct complex investigations, encourage compliance for regulated entities, and prosecute cases against even the most well-resourced potential violators. Effective enforcement creates meaningful deterrence to illegal behavior and assures the compliant businesses that we will not allow their competition to get ahead by breaking the rules.
Our Bureau of Enforcement, Investigations, and Compliance (BEIC) is already rigorously reviewing the conduct of, and holding accountable, regulated entities. We have gone from assessing virtually no penalties in 2020 and 2021 to assessing $2.0 million in penalties in fiscal year 2022, which followed on with $2.8 million in penalties assessed in fiscal year 2023. Our enforcement program continues to investigate many cases against foreign-based ocean carriers and other large companies that are accused of violating the law, and BEIC now is seeking penalties in the millions, and sometimes tens of millions of dollars. We expect to see to see at least a similar level of penalties assessed before the end of fiscal year 2024.
The Bureau of Trade Analysis and the Bureau of Certification and Licensing (BCL) do critical work in ensuring marketplace integrity through oversight, analysis, and compliance of regulated entities. The efforts of these two bureaus are invaluable to protecting the public from unfair and deceptive practices, as well as guaranteeing a competitive and reliable international ocean transportation supply system that supports the U.S. economy. BCL also does important work to ensure cruise companies operate with the appropriate consumer protections in the event they fail to provide the service they promise.
The Commission’s ability to better serve American importers, exporters, and consumers was greatly enhanced by the additional authorities and resources contained in the Ocean Shipping Reform Act of 2022. As we approach the second anniversary of the legislation’s enactment, I can report that the Commission has implemented, or made significant progress toward completing nearly all the mandates contained in the statute.
We continue to elaborate on the Incentive Principle interpretive rule in the manner prescribed by Congress. The Incentive Principle rule – authored by Commissioner Rebecca Dye and approved unanimously by the FMC in Spring 2020 – established that for a detention or demurrage charge to be reasonable, it must help promote the efficient movement of cargo and/or equipment and not be for some other purpose.
In February, a Final Rule on Demurrage and Detention Billing Practices was published following a unanimous vote of the five commissioners. The rule establishes requirements for how common carriers and marine terminal operators must bill for demurrage and detention charges and provides clarity on who can be billed, within what timeframe, and specifies the process for disputing bills. The rule is scheduled to take effect on May 28, 2024.
As you know, OSRA 2022 mandates three other rulemakings: Unreasonable Refusal to Deal with Respect to Vessel Space Accommodations; Shipping Exchange Registries; and Unfair or Unjustly Discriminatory Methods. The Commission’s staff is working hard on completing these remaining rulemaking requirements. I anticipate there will be an announcement on Unreasonable Refusal to Deal within the next few months and one on Shipping Exchange Registries by the end of the calendar year. Parts of the rulemaking on Unfair and Unjustly Discriminatory Methods – specifically the provision prohibiting carriers from unreasonably denying space accommodations to U.S. exports – will be incorporated into the rulemaking on Unreasonable Refusal to Deal. The remaining areas not included in that rule will be addressed in a separate rulemaking.
The OSRA 2022 Charge Complaints process continues to be a popular avenue for shippers to seek relief from inappropriate bills and invoices. Since June 2022, almost $2.5 million in charges or fees have been waived or refunded by common carriers. This total only reflects results from Charge Complaints filed at the Federal Maritime Commission. It does not include any fees or charges waived or refunded by either direct shipper to common carrier communications or through the efforts of an independent third party, such as an attorney outside of those filed with the FMC. In short, this provision of OSRA 2022 is having a consequential impact by giving shippers an expedited, simple process to address an erroneous invoice.
In recent months, the Commission has repeatedly demonstrated an ability to be dynamic in responding to events impacting shipping and supply chains. The Commission held a hearing on February 7, 2024, examining how events in the Red Sea and Gulf of Aden are affecting maritime trade and U.S.-based companies. The Commission issued two industry advisories putting regulated entities on notice that notwithstanding disruptions to regular vessel deployments in the Middle East or the inability to call Baltimore, all statutes and regulations administered by the FMC remain in effect. Common carriers and marine terminal operators were specifically reminded about the Commission’s reasonableness standard for assessing demurrage and detention bills.
Further, the Commission is using its Audit Program to engage the nine largest-by-volume ocean carriers calling the Port of Baltimore to remind them of their responsibilities and obligations in adjusting their operations. We are scrupulously examining fees and surcharges implemented following the disruptions that have taken place resulting from the events in Baltimore, Panama, and the Gulf of Aden and Red Sea region to ensure they comport with the law. Our Office of Consumer Affairs and Dispute Resolution Services is prepared to help informally resolve issues shippers are having resulting from these disruptions. Our Bureau of Enforcement, Investigations, and Compliance will pursue any substantive allegations of misconduct, and the Bureau of Trade Analysis continues with its review of carrier conduct and marketplace conditions.
Global trade on our oceans continues to grow. Nonetheless, shifting ocean carrier alliances, international emissions regulations, changes in the geography of supply chain sourcing, and geo-political developments all will affect oceanborne commerce. A capable, well-resourced Federal Maritime Commission is necessary to guarantee U.S. companies and consumers have access to reliable, efficient, and affordable ocean transportation services for both import and export trades.
That said, there is no desire – at least not on my part – to put the Commission on a path where it seeks continuous growth and additional jurisdiction. The Commission has had to grow to meet the vision of Congress and be a potent regulator of international ocean transportation. That growth was reflected in OSRA 2022, and the FMC’s budget requests have followed the budget and staff trajectories included in that legislation. If the Congress does decide to give us additional qualitative responsibilities, I only ask that you give us the additional resources to fulfill those new demands or understand when implementation is delayed or when other vital capabilities are cut.
The Commission is requesting $48,452,000 to fund its Fiscal Year 2025 operations. This is just slightly less than the sum authorized authorized by the Ocean Shipping Reform Act of 2022. This is $4,732,000 more than the $43,720,000 we requested—and was authorized by OSRA 2022—to fund our Fiscal Year 2024 operations. It is $8,452,000 more than what was provided by the Consolidated Appropriations Act 2024.
As is usual with an FMC budget request, the great majority of our funds will pay for two categories of costs – personnel and rent. These two expenses combined will cost the Commission $40 million in FY 2025. As also is typical, costs in both categories continue to rise each fiscal year. The Commission has budgeted $35,871,000 for salary and benefits, which is a $5 million increase from FY 2024. Similarly, the rent and building security costs are rising by $1,341,000 to a total of $4,076,000 for the coming fiscal year.
The Commission has also budgeted $5,877,000 for information technology operations and for modernization projects. Substantial upgrades to the Commission systems and networks are necessary to defend against malicious cyber activities and enable the Commission’s systems to serve the public in the way that business is conducted today.
The Commission has established priorities and built plans based on authorizations contained in OSRA 2022. The Commission will carry out its duties to the best of its ability with whatever sum it is appropriated, but not being funded at authorized levels means that difficult decisions about resource allocation must be made. The Commission had planned programs and activities based on authorizations contained in OSRA 2022. Appropriations at less than these levels will necessitate changing objectives and goals. Progress in expanding the capabilities of our offices most involved in protecting the public and overseeing regulated entities will be threatened.
The Federal Maritime Commission has delivered on the investment made in it two years ago. That said, we still have much to do to fully execute on the changes we started and successfully position the agency to continue its mission in the long run. Now is the time to continue laying the foundation for the inevitable future needs of Americans who rely on ocean-linked supply chains. As events in Baltimore, Panama, and the Red Sea have shown, the world of ocean shipping can change in an instant in disruptive ways. A strong and engaged FMC is a vital component of ensuring some stability for American importers and exporters in a world filled with uncertainty.
Thank you again for this opportunity to appear before you, for your attention, and for any questions you might have about my testimony or the work of the Federal Maritime Commission.
Hapag-Lloyd And IKEA Collaborate To Advance Cleaner Shipping
Hapag-Lloyd has entered a cooperation with IKEA Supply Chain Operations to decarbonise the Hapag-Lloyd container shipments originating from Asia, marking an important step towards a more sustainable maritime industry.
For the period March 2024 to February 2025, both companies have agreed to use Hapag-Lloyd’s highest product option for biofuels “Ship Green 100”, which relies on waste- and residue-based biofuel instead of conventional marine fuel oil. The expected result for IKEA during this period is a CO2 emission reduction of around 100,000 tonnes.
“IKEA stands as one of our valued customers, known for its unwavering commitment to sustainability. By joining forces, we are reducing CO2e emissions significantly”, said Danny Smolders, Managing Director Global Sales at Hapag-Lloyd. “Ship Green is an important aspect of our decarbonisation journey and brings us one step closer to our goal of net-zero fleet operations by 2045.”
The IKEA goal is to reduce the relative GHG emissions from their product transportation by 70% by 2030 and to only use zero emission heavy duty vehicles and ocean vessels by 2040.
“It’s through efforts like this one that we can reduce immediate emissions from ocean shipping in the short-term”, says Dariusz Mroczek, Category Area Transport Manager, IKEA Supply Chain Operations. “However, biofuel is not the ultimate solution and we need to continue to collaborate to make the necessary shift toward zero emission fuels and technologies.”
This partnership represents a significant step forward in the maritime industry, where collaboration and innovation intersect to create a greener, more sustainable future for global shipping. Both Hapag-Lloyd and IKEA are committed to leading the way in environmentally conscious practices, setting a benchmark for the industry.
Hapag-Lloyd has launched the Ship Green product to offer its customers emission-reduced ocean transports. Based on biofuel, Hapag-Lloyd’s customers can choose between 100%, 50% or 25% CO2e emission avoidance. Ship Green is available for all shipments, including standard, reefer, hardtop, or tank equipment.
About Hapag-Lloyd
With a fleet of 266 modern container ships and a total transport capacity of 2.0 million TEU, Hapag-Lloyd is one of the world’s leading liner shipping companies. In the Liner Shipping segment, the Company has around 13,500 employees and 403 offices in 140 countries. Hapag-Lloyd has a container capacity of 2.9 million TEU – including one of the largest and most modern fleets of reefer containers. A total of 113 liner services worldwide ensure fast and reliable connections between more than 600 ports on all the continents. In the Terminal & Infrastructure segment, Hapag-Lloyd has equity stakes in 20 terminals in Europe, Latin America, the United States, India, and North Africa. Around 2,900 employees are assigned to the Terminal & Infrastructure segment and provide complementary logistics services at selected locations in addition to the terminal activities.
Setting Sail for the Future: Hapag-Lloyd unveils its new Strategy 2030
Hapag-Lloyd today announces its Strategy 2030, a comprehensive roadmap charting the course for the company’s pursuit in quality leadership, sustainability, innovation, and operational efficiency in a rapidly evolving maritime industry.
Developing Strategy 2030
Over the past five years, the company has made significant progress in customer satisfaction, financial stability, and market expansion, particularly in key growth regions such as India and Africa. Building on the momentum of Strategy 2023, which cemented Hapag-Lloyd’s reputation as a customer-centric carrier, Strategy 2030 is the result of in-depth market analysis and customer insight, as well as extensive internal collaboration, including input from the company’s global experts. It is dedicated to delivering outstanding customer service, while prioritising environmental responsibility and innovative digital solutions to navigate the ever-changing global landscape.
The Five Core Pillars of Strategy 2030
Hapag-Lloyd’s Strategy 2030 is built on five core pillars:
Pure Play Plus: Hapag-Lloyd continues to invest in its fleet and service network to further strengthen its core liner business while expanding its terminal portfolio, backed by a new Terminal and Infrastructure Division. In addition, the carrier aims to increase its share of inland transport in direct support of its core business.
Top 5 Global Container Line: With a focus on strategic growth initiatives, Hapag-Lloyd aims to cement its position among the top five global container lines and reinforce its presence in key markets, including Africa, India, Southeast Asia, and the Pacific trade by growing above market.
Undisputed Number One for Quality: Hapag-Lloyd will double down on its quality strategy, aiming for an on-time delivery rate of more than 80% and strengthening operational excellence, customer care, and ease of doing business. The Gemini Cooperation with Maersk will be an important step towards this goal, as will the strengthening of internal processes.
Sustainability Driver: Fully embracing to environmental responsibility and contributing to keeping global warming within the 1.5°C target of the Paris Agreement, Hapag-Lloyd is committed to reducing absolute greenhouse gas emissions by around one third by 2030 and achieving net-zero fleet operations by 2045. This will be achieved through a range of measures, including fleet modernisation, new propulsion technologies, and the use of alternative fuels.
Top Performing Carrier: Hapag-Lloyd aims to remain an industry frontrunner by leveraging cutting-edge IT solutions, increasing productivity, maintaining a razor-sharp focus on performance and cost optimisation, developing the workforce, and attracting talents.
“We are very proud of our Strategy 2030, a testament to our unwavering dedication to quality, sustainability, and customer satisfaction,” said Rolf Habben Jansen, CEO of Hapag-Lloyd. “We operate in a very dynamic industry marked by shifting customer needs, so a resilient strategy is essential. Strategy 2030 positions us to thrive and lead as one of the top global container lines. With it, we will not only enhance the value we deliver to our customers and partners, but also make a meaningful contribution to the decarbonisation of our industry. It is our most ambitious strategy to date.”
About Hapag-Lloyd
With a fleet of 266 modern container ships and a total transport capacity of 2.0 million TEU, Hapag-Lloyd is one of the world’s leading liner shipping companies. In the Liner Shipping segment, the Company has around 13,500 employees and 403 offices in 140 countries. Hapag-Lloyd has a container capacity of 2.9 million TEU – including one of the largest and most modern fleets of reefer containers. A total of 113 liner services worldwide ensure fast and reliable connections between more than 600 ports on all the continents. In the Terminal & Infrastructure segment, Hapag-Lloyd has equity stakes in 20 terminals in Europe, Latin America, the United States, India, and North Africa. Around 2,900 employees are assigned to the Terminal & Infrastructure segment and provide complementary logistics services at selected locations in addition to the terminal activities.
FMC Publishes Final Rule on Detention and Demurrage Billing Practices
A Final Rule issued today by the Federal Maritime Commission establishes new requirements for how common carriers and marine terminal operators (MTOs) must bill for demurrage and detention charges, providing clarity on who can be billed, within what timeframe, and the process for disputing bills.
A key provision of this rule determines that demurrage or detention invoices can only be issued to either: (1) the person for whose account the billing party provide ocean transportation or storage of cargo and who contracted with the billing party for the ocean transportation or storage of cargo; or (2) the “consignee,” defined as “the ultimate recipient of the cargo; the person to whom final delivery of the cargo is to be made”. Demurrage and detention bills cannot be issued to multiple parties simultaneously.
The rule also requires vessel-operating-common carriers (VOCCs) and MTOs to issue detention and demurrage invoices within 30 calendar days from when charges were last incurred. Non-vessel-operating common carriers must issue demurrage and detention invoices within 30 calendar days from the issuance date of the invoice they received.
Billed parties have at least 30 calendar days to make fee mitigation, refund, or waiver requests. If a timely filed request is made, the billing party must attempt to resolve the matter within 30 calendar days, unless both parties agree to a longer timeframe.
The new rule will advance the Commission’s goal of promoting supply chain fluidity by ensuring a clear connection between the failure to pick-up cargo or return equipment in a timely manner and the appropriate fee. The rule ensures that billed parties understand the demurrage or detention invoices they receive by requiring certain identifiable information be included by the billing party on the invoice. Failing to include any of the required information in a detention or demurrage invoice eliminates any obligation of the billed party to pay the applicable charge. Of course, if an invoice does comply, a charged party does have an obligation to pay charges billed. The new rule will provide relief to parties who should never have received a bill for detention or demurrage.
Most of the rule takes effect on May 26, 2024. The “Contents of Invoice” section 541.6 involves information collection and must be approved by the Office of Management and Budget. The Commission will announce the effective date of section 541.6 once approved.
Recording of FMC Hearing on Red Sea Available
The recording of an Informal Public Hearing held by the Federal Maritime Commission examining impacts from attacks on merchant shipping in the Red Sea and Gulf of Aden is now available for streaming on the Commission’s YouTube channel: https://www.youtube.com/watch?v=e8kUde7brEM.
The hearing was held on February 7, 2024, and the Commission heard from ten participants representing the perspectives of shippers, ocean common carriers, and ports.
The prepared statements of hearing participants, as well as statements submitted by other interested parties, can be found on Regulations.gov.
Impacts From Threats to Shipping
The Federal Maritime Commission is aware that ocean common carriers are adjusting vessel operations and deployments in response to threats to commercial shipping in the Red Sea and Gulf of Aden regions.
In doing so, carriers are announcing rate increases and/or instituting fees or surcharges ostensibly to recoup expenses associated with longer voyages and/or higher costs of insurance and security. However, these charges must meet strict legal requirements. Furthermore, competition among carriers must not be suspended and carriers and parties to vessel sharing agreements must continue to obey the Shipping Act, other U.S. competition laws, and all other applicable laws.
The Federal Maritime Commission is monitoring actions taken by ocean common carriers related to rates, fees, and surcharges to ensure their compliance with all statutory and regulatory requirements.
Commission Publishes Update of its Official Case Law Reporter
The Federal Maritime Commission has published on its website an update to Decisions of the Federal Maritime Commission, Second Series (Volume 6).
This publication provides a compendium of Initial and Final Decisions of the Commission and selected other orders that may be significant or establish legal precedent.
The volume now incorporates the period of January through June 2023.
Decisions and orders published in the volume may be cited by counsel and parties in Commission proceedings using the abbreviation F.M.C.2d. A proper citation will indicate the volume designation, the abbreviation, and the page on which the case report begins, such as:
D.F. Young, Inc. v. NYK Line (North America) Inc., 1 F.M.C.2d 135 (FMC 2018).
For the most current status and disposition of any proceeding, the docket activity logs remain available and are updated daily.
Any questions about this publication should be directed to secretary@fmc.gov.
IMO Has Welcomed the Adoption of a Landmark Agreement on a New oceans Treaty to Protect Marine Biodiversity on the High Seas
The new legally binding international instrument on the conservation and sustainable use of marine biological diversity in areas beyond national jurisdiction – known as ‘BBNJ’ – was adopted on 19 June, at the United Nations headquarters in New York, United States. It was adopted at the resumed fifth session of the Intergovernmental Conference, and will open for signature on 20 September. The treaty will enter into force after ratification by 60 States.
IMO Secretary-General Kitack Lim said:
“I congratulate all parties on the successful adoption of the new legally binding instrument on marine biodiversity in areas beyond national jurisdiction. This landmark achievement will no doubt reinforce efforts to protect biodiversity in line with the aims of the 2030 Agenda for Sustainable Development and the Kunming-Montreal Global Framework for Biodiversity. IMO has participated throughout the negotiations, given the organization’s mandate and expertise, and will continue to participate, in the implementation of the new instrument. IMO looks forward to further strengthening our cooperation with Member States, the UN family and all other stakeholders.”
The BBNJ treaty addresses, among other things:
the conservation and sustainable use of marine BBNJ;
marine genetic resources, including questions on benefit-sharing (MGR);
Area Based Management Tools (ABMT), including marine protected areas;
environmental impact assessments (EIA); and
capacity-building and the transfer of marine technology (CB&TMT).
IMO has been present throughout the negotiations and has actively cooperated with the UN, in particular with Division for Ocean Affairs and the Law of the Sea (DOALOS) of the Office of Legal Affairs of the United Nations; the International Seabed Authority (ISA) and with other specialized agencies like the Food and Agriculture Organization of the United Nations (FAO), Intergovernmental Oceanographic Commission of UNESCO (IOC) and the International Labour Organization (ILO).
IMO officials have outlined IMO’s experience in developing universally accepted regulations for international shipping to ensure shipping’s sustainable use of the oceans, through more than 50 globally-binding treaties.
Ships plying their trade across the world’s oceans are subject to stringent environmental, safety and security rules, which apply throughout their voyage.
IMO regulations are enforced through a well-established system of flag, coastal and port State control. Many IMO measures actively contribute to the conservation of marine biological diversity in areas beyond national jurisdiction, including the International Convention for the Prevention of Pollution by ships (MARPOL) and the International Ballast Water Management Convention – which aims to prevent the transfer of potentially invasive aquatic species – as well as the London Convention and Protocol regulating the dumping of wastes at sea.
IMO has adopted numerous protective measures, which all ships must adhere to, both in and outside designated sensitive sea areas (PSSAs) and in special areas and emission control areas. These include strict rules on operational discharges as well as areas to be avoided and other ship routing systems, including those aimed at keeping shipping away from whales’ breeding grounds. IMO’s Polar Code is mandatory for ships operating in the Arctic and Antarctic. IMO has also issued guidance on protecting marine life from underwater ship noise.
After more than a decade of preparatory works, the United Nations General Assembly decided, in 2015, to develop an international legally binding instrument under UNCLOS on the conservation and sustainable use of marine biological diversity of areas beyond national jurisdiction (UNGA resolution 69/292). The series of conferences to develop the new BBNJ legally-binding instrument under the United Nations Convention on the Law of the Sea (UNCLOS) began in 2018, and successfully concluded with the adoption of a new treaty on 19 June.
American Waterways Operators Commends Commonwealth of Kentucky on Passage and Signature of Jones Act Resolution
ARLINGTON, VA, The American Waterways Operators commends the Commonwealth of Kentucky on the legislature’s recent passage, and Governor Andy Beshear’s signature, of House Concurrent Resolution 5, recognizing the importance of the Jones Act to Kentucky and to the United States. The Jones Act is the federal law requiring that vessels transporting cargo between two U.S. ports be American-built, American-owned and American-crewed.
The resolution, sponsored by Rep. Randy Bridges, House Majority Leader Rep. Steven Rudy, and Rep. Chris Freeland, emphasizes that Kentucky’s “1,600-mile-long network of navigable waterways, including access to two the nation’s largest rivers, the Mississippi River and the Ohio River, makes it a critical hub in the transportation system of this nation,” and highlights the importance of a strong domestic maritime industry to Kentucky’s and the country’s economic prosperity and national security.
The resolution also notes that:
Kentucky is home to nearly 21,000 maritime jobs supported by the Jones Act, and the Jones Act fleet supports nearly 650,000 family-wage jobs nationwide.
The Jones Act fleet contributes over $154 billion in economic output nationally and $5.1 billion to Kentucky’s economy.
Justin Lampert, AWO’s Senior Manager – Midcontinent Office, commented: “American maritime – and the tugboat, towboat and barge industry that makes up the largest segment of it – is proud to be a major contributor to America’s and Kentucky’s economy, security, supply chain and quality of life. We applaud the Kentucky legislature and Governor Beshear for recognizing the impact our industry has on the Commonwealth and the nation, and for highlighting the central role of the Jones Act in serving as the statutory foundation that makes that impact possible.”
The resolution in its entirety can be viewed here.
The following Kentucky maritime leaders are available for interviews:
Caleb King, President, International Propeller Club – Port of Paducah
Angela Grett, Director of Corporate Affairs, Ingram Barge Company
About American Waterways Operators:
The American Waterways Operators is the tugboat, towboat and barge industry’s advocate, resource and united voice for safe, sustainable and efficient transportation on America’s waterways, oceans and coasts. Industry vessels move more than 665 million tons of America’s commerce each year on the U.S. inland and intracoastal waterways, the Atlantic, Pacific and Gulf Coasts and the Great Lakes.
The Government of Canada announces how it will change the way ports work to strengthen our supply chain and make life more affordable
HALIFAX, NS, – Canadian ports are an essential link in our supply chains to grow our economy, create good jobs for middle-class Canadians, and deliver affordable goods on time. It is a top priority for the Government of Canada to build the resilience, efficiency, and adaptability of Canada’s maritime supply chains to deal with the rising cost of living.
Today, the Minister of Transport, the Honorable Omar Alghabra, announced the completion of the Ports Modernization Review, which aims to advance the role of Canada Port Authorities and optimize their current and future roles. In a constantly changing world, ports need modern and flexible tools that will allow them to respond to increasingly complex challenges. These new tools will enable ports to remain competitive, efficient, and sustainable.
The Minister also announced that the government intends to introduce legislative amendments in the coming months to update the way Canada’s ports are managed and operated based on the results of the Ports Modernization Review. The proposed legislative changes will achieve several key policy objectives, including:
Adjustments to port governance and financial management to provide ports with the tools to unlock greater performance, efficiency, and productivity in order to be effective instruments of public policy.
Ports ensure their continued competitiveness and are positioned as strategic enablers of trade and traffic given their central role as intermodal hubs that support supply chain performance and economic growth.
Strengthen relationships with Indigenous Peoples and local communities through structured engagement to foster alignment of port development and operations, and advance reconciliation
Ports assume a leadership role in advancing the greening of the marine sector by promoting environmentally sustainable infrastructure and taking action on climate change.
Port safety and security further protects the transportation system from threats while ensuring that goods move efficiently through the supply chain.
The proposed amendments will support the development of a new investment policy for Canada’s ports and port infrastructure to attract investment capital that is critical to the national transportation supply chain for decades to come.
The Government of Canada intends to update its approach to considering infrastructure investments of Canadian and international entities to ensure our ports continue to serve Canadians well into the future by remaining competitive and aligned with our economic prosperity and security.
Transport Canada will lead an examination of the complementarity of Canada Port Authorities with a view to supporting greater productivity of these key federal assets.
These upcoming changes will contribute to the government’s response to the Supply Chain Task Force’s recommendations, particularly around easing port congestion. The Government of Canada is committed to respond with both immediate actions and long-term initiatives. Today’s announcement is another step towards strengthening our supply chain.
Quote
“Thanks to the feedback gathered from ports, industry stakeholders, provinces, territories, and municipalities, as well as local and Indigenous communities through the Ports Modernization Review, we can now move forward to strengthen our marine supply chain and help Canadians with the rising cost of living. We plan to advance our current port system to be even more adaptable and agile, helping to build a more resilient, reliable supply chain system for both Canadians and our economy.”
The Honourable Omar Alghabra
Minister of Transport
Quick facts
Canada’s ports play a significant role in the lives of Canadians as they handle more than 88 percent of Canada’s international marine traffic.
More than 343 million tonnes of cargo were shipped through our ports in 2021 alone.
Launched in 2018, the Ports Modernization Review examined the port system to ensure it has the governance structure and tools needed to adapt to an increasingly complex operating environment, with a view to supporting trade, Canadians and stakeholders. During the Review, Transport Canada considered how potential policy, legislative, and regulatory changes could assist Canada’s Port Authorities to consolidate their position as key players in the Canadian economy. All actions taken as a result of the Ports Modernization Review will support Canada’s economic recovery and are essential to continued economic development and growth.
The Ports Modernization Review gathered input from important stakeholders, including Canada Port Authorities, local and Indigenous communities, industry representatives, labour groups, provincial and municipal governments, and the public.
Transport Canada released a What We Heard Report in October 2020 that summarized the feedback collected during the Review’s engagement process.
As set out in the Canada Marine Act, the Canada Port Authorities (CPAs) must be financially self-sufficient. They don’t receive federal funding to meet operating costs or deficits. CPAs finance their capital projects using their own revenues. But they can also collaborate with the private sector, borrow from a commercial lender or apply for certain federal contributions related to infrastructure, the environment or security.
Associated link
Backgrounder: Ports Modernization Review
What We Heard Report: Ports Modernization Review
Budget 2022 Backgrounder: Clean Air and a Strong Economy
Launch of Ports Modernization Review News Release
Read the full report
Transport Canada is online at www.tc.gc.ca. Subscribe to e-news or stay connected through Twitter, Facebook, YouTube, and Instagram to keep up to date on the latest from Transport Canada.
This news release may be made available in alternative formats for persons living with visual disabilities.
SOURCE Transport Canada
CONTACT: Nadine Ramadan, Press Secretary and Communication Advisor, Office of the Honourable Omar Alghabra, Minister of Transport, Ottawa, Nadine.Ramadan@tc.gc.ca; Media Relations, Transport Canada, Ottawa, 613-993-0055, media@tc.gc.ca
Bezos Earth Fund Announces First Commitments to Marine Protection at UN Ocean Conference
LISBON, Portugal, June 27, 2022 — The Bezos Earth Fund today announced its first investments dedicated explicitly to marine protection at the United Nations Ocean Conference, totaling $50 million in new grants. These grants further its commitment to the 30×30 initiative to protect 30% of the planet’s land and sea by 2030. Currently, only 7.93% of the ocean is zoned as marine protected areas.
The Bezos Earth Fund will provide grants totaling $30 million to support organizations working in Colombia, Costa Rica, Ecuador, and Panama in strengthening the Eastern Tropical Marine Corridor. By creating a network of marine protected areas covering more than 500,000-square-kilometers (193,000-square-miles) and a transboundary biosphere reserve, the four countries’ biological hotspots will be connected and protected. These grants are provided alongside those of other members of the Connect to Protect Eastern Tropical Pacific Coalition. The coalition will work alongside governments, local communities, non-government organizations, and scientists to help establish a regional governance structure, design, and implement marine protected areas and the biosphere reserve, and secure long-term sustainable financing.
“The ocean is our planet’s life support system and a major carbon sink,” said Dr. Andrew Steer, president and CEO of the Bezos Earth Fund. “Investing in the ocean can be a powerful solution to many major challenges. It can protect vital marine ecosystems, provide jobs, help local communities, improve food security, and address climate change. These commitments are the first of many the Bezos Earth Fund will make to support marine protection in this decisive decade.”
The Earth Fund’s $20 million grant to the National Geographic Society’s Pristine Seas will further advance the goal of protecting 30% of the ocean by 2030. With this support, the Pristine Seas team will explore, document, and conduct research in the central and western Pacific Ocean over the next five years. This region contains the highest marine biodiversity on the planet, most of which is unprotected from extractive activities.
“It is an honor to receive this grant. It provides us with an exciting opportunity to work with local partners to accelerate, scale, and finance permanent ocean protection,” said Dr. Enric Sala, National Geographic Explorer in Residence and founder of Pristine Seas. “This grant allows Pristine Seas to continue to provide countries and local communities with the assistance and support they need to create marine-protected areas and achieve their ocean conservation and economic goals.”
About the Bezos Earth Fund
The Bezos Earth Fund is Jeff Bezos’ $10 billion commitment to fund scientists, activists, NGOs, and other actors who will drive climate and nature solutions. By allocating funds creatively, wisely, and boldly, the Bezos Earth Fund has the potential for transformative influence in this decisive decade. Funds will be fully allocated by 2030—the date the United Nations Sustainable Development Goals must be achieved.
SOURCE Bezos Earth Fund
CONTACT: earthfund@gmmb.com
China Oceanic Development Foundation: Exploring New Observation Techniques: China and Thailand’s Cooperation on Protecting Marine Mammals
BEIJING, Dec. 6, 2021 /PRNewswire/ — The Irrawaddy dolphin Orcaella brevirostris is an endemic dolphin found in coastal waters in the South and Southeast Asia. Impacted by human activities, the population of Irrawaddy dolphin in the Songkhla Lake, Thailand is critically endangered and the species is considered vulnerable by the International Union for the Conservation of Nature (IUCN). In recent years, China and Thailand have deepened their cooperation in observation and research of endangered marine species, including Irrawaddy dolphins.
Scientists from China and Thailand were observing dugongs and dolphins at Libong Island. Photo provided by Dr. Zhang Xuelei
Scientists from China and Thailand were observing dugongs and dolphins at Libong Island. Photo provided by Dr. Zhang Xuelei
Thailand has attached great importance to the conservation of this Irrawaddy dolphin population in the Songkhla Lake and had accumulated experience for over ten years. However, the traditional observation methods that researchers used to apply, such as taking pictures from boats, were limited and inefficient. In 2011, China and Thailand reached consensus that modern technologies could be introduced to improve observing efficiency and promote scientific research.
What drew scientists from China and Thailand to the collaborative research is not only the endangered condition of Irrawaddy dolphins, but also their pivotal role in the marine ecosystem. Irrawaddy dolphins are at the top of marine food chain, which play a vital role in the healthy development of the marine ecosystem. Besides, Irrawaddy dolphins mean a great deal to local people in Thailand as well. They could help fishermen drive fish into nets in return for fishermen’s feeding. They also provide valuable non-material benefits to people. Some temples in Thailand would even worship the skeletons and specimens of Irrawaddy dolphins.
“As such, protecting Irrawaddy dolphins has both ecological significance and social and cultural value,” said Dr. Zhang Xuelei, head of the research team of marine endangered species from the First Institute of Oceanography, Ministry of Natural Resources, China.
Based on the application of unmanned aerial and sea surface vehicles, bio-acoustic technology and molecular biological techniques, researchers from China and Thailand have developed an integrated observation system, which can collect and transmit the data and images of the observed dolphins in real time.
These advanced technologies have been used in the observation and research of endangered marine species in Thailand. In May 2015, the research team made a breakthrough; with the aid of a DJI drone with camera, they successfully captured images of dugongs, also known as the legendary “mermaids”, in the water north of Libong Island, Thailand, which confirmed the species’ existence in this area for the first time and supported the establishment of conservation measures.
What impresses Dr. Zhang most is the experience of observing Irrawaddy dolphins with the application of this new observational mode in the Songkhla Lake, which validates its effectiveness. Due to the impact of past human activities, dolphins in this area are always sensitive to human existence, which makes it difficult to carry out scientific observation and acquire accurate information about the size of its population and the pattern of their activities.
To solve this problem, in May 2015, Dr. Zhang and his Thai colleagues performed a stereoscopic observation from the air, water surface and underwater in the Songkhla Lake, deploying an array of underwater bio-acoustic sensors and dispatching small sampans and man-piloted microplanes as well.
“We found that the time when dolphins appeared was exactly the time when we left and landed for lunch. We were surprised, yet realized how clever these sensitive animals were in response to ‘strange’ boat engines’ sound,” said Dr. Zhang. The research team then changed their schedule, stopped the engine and waited under the blazing sun on boats during lunch time. Sure enough, at noon, about 20 Irrawaddy dolphins came for their “safe lunch” assuming absence of strangers’ interference. The team then collected data that they wanted long time ago.
“By learning more about the population, home range and other important behaviors of these Irrawaddy dolphins, we can develop better protection strategies, which would also benefit the biodiversity and stability of marine ecosystem,” said Dr. Zhang.
Facing the challenges brought to in-situ collaboration of the international team from the COVID-19 pandemic, Dr. Zhang and his colleagues also attempt to conduct new observation methods. For example, by using satellite tags that can trace turtles and whales’ movement, they hope to get more valuable information about their habitat use and migration patterns.
“We hope the new unmanned observation platform can free researchers from those laborious tasks that do not require intense human intelligence, so that they can give full play to their innovation and creativity on more meaningful work, making greater contribution to the protection of Irrawaddy dolphins and other endangered marine species,” said Dr. Zhang Xuelei.
SOURCE China Oceanic Development Foundation
CONTACT: Chen Xue, +86-13716178184, xuec@cytslinkage.com
EU Maritime Security: Exercise in the Gulf of Guinea strengthens coordination in the fight against piracy and criminal activity at sea
BRUSSELS, 27 November 2021 — Grand Africa NEMO (GANO) is an annual regional air/sea maritime exercise, co-organised by France and the Yaoundé Maritime Security Architecture, for the benefit of the entities of the Yaoundé Process and the African partners of the Gulf of Guinea, with the aim of contributing to the fight against maritime insecurity. It also contributes to the EU Coordinated Maritime Presences initiative.
This year’s iteration of the GANO took place from 2 to 7 November and involved, together with Yaoundé Architecture’s Interregional and Regional Coordination Centres, all West Africa coastal states Navies from Senegal to Angola with their Maritime Operation Centres (MOCs) and assets. The Regional Navies were assisted in the conduct of the scenario-based exercises by French Survey Frigate FS Germinal, Brazilian Ocean Patrol Vessel BNS Amazonas, British Offshore Patrol Vessels HMS Trent, Portuguese Patrol Vessel NRP Zaire, and Italian Multi-Mission Frigate ITS Antonio Marceglia. France also participated with a Falcon 50 aircraft.
YARIS, an information sharing system developed by the EU GOGIN project, for and with the Yaoundé Architecture, was available to all these assets, which used a version of the system developed specifically to be used on board of vessels and aircraft. This enabled an unprecedented real-time collaboration between the partners’ naval forces and aircraft present in the area and the Yaoundé Architecture maritime operations centres.
The scenarios of the exercises comprised Illegal, Unreported, Unregulated (IUU) Fishing, Piracy, Pollution, Drugs trafficking, Arms Trafficking and Illegal migration events. The Direction of the Exercise (DIREX) staff was hosted in the premises of the Centre Regional de Securité Maritime de l’Afrique Centrale (CRESMAC), located in Pointe-Noire, Congo. The DIREX followed the many exercises conducted, at times simultaneously, in the vast Exercise Area, through the YARIS platform.
The full operational capability of the system was achieved in September 2020 and, since then, it has been available for the Yaounde Architecture Centres to use within their operational activity. GANO 21 was also the occasion to test the large-scale use of this secure platform. A simplified user guide of YARIS, distributed prior to the exercise, was also validated during GANO.
The French, Italian and Portuguese ships participating to the exercise are also contributing to the EU Coordinated Maritime Presences (CMP) initiative. The CMP enables the EU to use deployed member states naval and air assets in order to increase its capacity to act as a maritime security provider/partner.
Coordination among the Member States assets takes place on a voluntary basis, with assets remaining under the national chains of command. This light and flexible instrument allows EU member states present in areas of interest to share awareness, analysis and information through the Maritime Area of Interest Coordination Cell (MAICC) established within the EU Military Staff, using the MARSUR network, a technical solution developed by the European Defence Agency.
By building synergies between deployed EU Member States’ assets, the CMP mechanism will be beneficial to all Member States, and at the same time, it ensures a permanent and visible European maritime presence and outreach around the world. In particular, the CMP, through the four ships deployed in the Gulf of Guinea, will contribute to address the security challenges in the region, enhancing coordination between Members States’ assets operating in this area and fostering cooperation with the coastal States and the organisation of the Yaoundé Architecture to tackle piracy and criminal activity at sea.
Copyright European Union, 1995-2021
SOURCE European External Action