MIG MLAANZ Seminar Series

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The Innocent Stevedore(or how I came to better
understand the Waterfront)

• MIG MLAANZ Seminar Series
• Sydney

February 2007
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Agenda

• Introduction
• Seminar objective
• Why the Innocent Stevedore?
• Australian Stevedoring context
• The Transport Logistics Chain
• Principal locations
• Service providers
• Industry issues
• Stevedoring risk management key issues
• Legal considerations for stevedores
• Summary
• QA

Source Patrick Terminals
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But first another great claim
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Introduction Seminar objective

• Objectives
• To understand legal claims in the context of
  Australian stevedoring industry
• Opportunities to reduce claims involving the
  waterfront

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Introduction Why the Innocent Stevedore?

• Fact or fiction - does the Innocent Stevedore
  exist?
• Stevedores place in transport/logistics chain
  exposes them to a variety of risks, many (not
  all) beyond their control.
• Demands of transport/logistics chain require
  stevedores to invest heavily in
• Capital equipment
• Technology
• Facilities
• Trained labour
• Procedures
• Customer demands drive stevedoring efficiency,
  costs and reliability
• Stevedores requirement to balance these demands
  with safety and vessel/cargo care considerations
• Stevedores may not be (quite) perfect, but above
  factors combine to require stevedores to invest
  heavily in risk management strategies to avoid
  WCI and vessel/cargo damage claims

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2. The Australian Stevedoring Industry
context - the Transport/Logistics Chain
Source Sydney Ports Handbook, March 1995
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2. The Australian Stevedoring Industry context -
principal locations
Source PO Ports Ltd
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2. The Australian Stevedoring Industry context -
Australian stevedoring service providers
A. General Stevedoring Operators Port coverage
summary
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2. The Australian Stevedoring Industry context -
Australian stevedoring service providers
B. Terminal Operators equipment overview
Approx estimated replacement value AUD 715M
Sources Various
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2. The Australian Stevedoring Industry context -
Australian stevedoring service providers
B. Terminal Operators 2004/05 2006/06 5 Port
Performance Indicator Summary
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2. The Australian Stevedoring Industry context -
Australian stevedoring service providers
B. Terminal Operators the future outlook
Source BTRA Working Paper 65 Container Ship
Movements through Australian Ports 2004/05 to
2024/25 (08/2005)

• Australias total containerised trade
• increased by 8 over the past 5 years
• is forecast to grow over next 20 years by 5.4
  pa (from 5.2M TEUs to 14.9M TEUs in 2024/25
  (286)

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2. The Australian Stevedoring Industry context -
Australian stevedoring service providers
B. Terminal Operators the port interface

• Transport/logistics chain
• efficiency driven by
• player interfaces
• distance
• location
• mode

• The more interfaces, the more risk

• Stevedores rely on performance of other players

Source SPC Handbook 2006
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2. The Australian Stevedoring Industry context -
Australian stevedoring service providers
C. Industry issues

• Performance
• Reduce vessel turnaround time
• berthing windows, minimise restows,
• increased equipment cranes, straddles,
• improved technology (terminal management systems,
  automated yard equipment)

• Reduce truck turnaround time
• Match RD shifts to vessel working shifts
• Improved technology processing (1Stop VBS,
  PRAs)
• Improved terminal handling (efficient terminal
  layouts, new equipment)

• Maintain labour productivity
• Bonus vs OHS/WCI
• Training, career opportunities

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2. The Australian Stevedoring Industry context -
Australian stevedoring service providers
C. Industry issues

• Competition
• Reduce costs/increased efficiency?
• increased investment/labour, same throughput
• interface coordination (ships/terminal/trucks/trai
  n/cargo owners)

Source Patrick Terminals
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2. The Australian Stevedoring Industry context -
Australian stevedoring service providers
C. Industry issues

• Future development
• Terminals
• Reduced berthing windows/
• larger vessels
• Improved stack density
• Improved road/rail interface
• Port land cost

• Road/rail
• Increase rail capacity to 40 total
• landside exchange
• Adequacy of track and road access
• Intermodal/inland terminal development
• Landbridging options East/West,
• Melbourne/Brisbane

Source Patrick Terminals
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2. The Australian Stevedoring Industry context -
Australian stevedoring service providers
C. Industry issues

• Port Security
• Terrorism legislation
• Vessel/Terminal/cargo security/access
• Increased regulation surveillance/disclosure

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3. Stevedoring risk management - key issues

• Managing the waterfront player mix operational
  services
• Vessels, terminal, trucks, trains, cargo owners
  operating rules
• Berthing windows
• VBS
• Rail windows
• PRAs

• Vessels fit for purpose
• Labour productivity vs safety
• Cargo care security, safety (hazardous
  cargoes/DGs)
• Data vessel stow plans, manifests, cargo
  documentation accurate timely provision
• Storage minimising terminal congestion
• RD reasonable cargo cutoffs

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4. Legal considerations for stevedores

• Customer warranties
• Is owner/authorised agent of vessel/container/good
  s?

• Has customer accurately fully described
  goods/containers provided all necessary
  info/instructions re handling/care control
  having regard to their nature?

• Do goods/containers/vessel comply with all
  applicable laws will customer provide stevedore
  with all assistance to enable compliance?

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4. Legal considerations for stevedores

• Customer warranties
• Are goods packed to withstand ordinary risks of
  stevedoring?
• Are customer vessel, containers, equipment in
  survey/fit proper condition for stevedoring?

• Has customer disclosed full description of any
  DGs or temperature controlled goods re
  stevedoring handling?
• Will goods be removed within 3 days after
  discharge (unless otherwise agreed)?

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4. Legal considerations for stevedores

• Customer warranties
• Will customer incorporate an effective Himalaya
  clause in the B/Ls, noting that stevedore will
  have benefit of the B/L provisions?

• Will no other party make a claim against the
  stevedore other than the customer for stevedoring
  services?

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4. Legal considerations for stevedores

• Stevedores rights
• Entitled to deliver goods to bearer of B/L

• If stevedore believes goods are DGs or
  vessel/container/goods do not meet statutory
  requirements or are unsuitable for stevedoring,
  it may refuse to provide services or take
  appropriate measures to ensure compliance or safe
  to handle

• Lien - stevedore can relocate or dispose of
  containers/goods not removed from wharf

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4. Legal considerations for stevedores

• Stevedores liability
• Generally relates to stevedores negligent
  act/omissions
• Excludes liability for inaccurate documentation
• Generally excludes consequential losses
• Subject to time bars (normally requires suit to
  commence 12 months from date of container/goods
  delivery or vessel arrival at facility or date of
  incident)

• Force majeure
• Broad definition
• Extends to include storm/wind damage

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4. Legal considerations for stevedores

• Liability issues
• Substandard vessel/container presentation
• Vessels AMSA Marine Orders
• Containers when is a unit too old?

• Reefer containers/cargoes
• Stevedores extensive reefer handling procedures
• PRAs
• vessel manifests
• receivals
• monitoring

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4. Legal considerations for stevedores

• Liability issues
• DGs/Hazardous Goods
• non/mis-declaration description, handling
• inappropriate presentation, packaging or stowage

• Inadequate container presentation
• overloading
• poor packing
• insufficient cargo packaging (protection
  secural)

• Truck damage
• understanding terminal procedures
• is truck suitable (ie, side lifters)?

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5. Summary

• Stevedores investing now for significant future
  growth
• Focus on cost-effective service delivery
• Interest in OSH vessel cargo care, with
• minimised injuries, and
• minimised damage to vessels cargo

• Stevedores part of dynamic transport logistics
  chain
• Relies heavily on other players performance a
  2 way street

• Stevedores operate in certain legal framework,
  with obligations clearly identified
• No new obligations, but details changing

• Reduce risk of waterfront damage
• Understand risks, improve procedures, educate
  staff

• The innocent stevedore your call!

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