UNCTAD

Trade Logistics Branch, Division on Technology and Logistics

Transport Newsletter

No. 50 Second Quarter 2011

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NOTE Thispublicationisnotsubjecttoformalediting. The designations employed and the presentation of the material in this publication do not imply the expressionofanyopinionwhatsoeveronthepartoftheSecretariatoftheUnitedNationsconcerningthelegal statusofanycountry,territory,cityorarea,orofitsauthorities,orconcerningthedelimitationofitsfrontiers orboundaries. UNCTAD/WEB/DTL/TLB/2011/3 Publishedbythe UnitedNationsConferenceonTradeandDevelopment(UNCTAD) TradeLogisticsBranch,DivisiononTechnologyandLogistics PalaisdesNations Geneva http://www.unctad.org

Transport Newsletter # 50

Editorial
DearReaders, Welcome to the 50th issue of the UNCTAD Transport Newsletter. The Trade Logistics Branch of the UNCTAD Division on Technology and Logistics has been busy this past quarter, preparing the 2011ReviewofMaritimeTransport,developingseveralcapacitybuildingprojects,andsupportinga numberofintergovernmentalmeetings.BelowaresomeofthetopicsaddressedbytheBranchin thelastquarter. UNCTAD's Trade and Development Commission met during 610 June 2011 to assess the evolution of the international trading system and to discuss key issues in the postcrisis period, as well as UNCTAD's role in addressing them. Agreed conclusions of the Trade and Development Commissionwithregardtoglobalsupplychainsandtradefacilitationarepresentedonpage4. On shipping related matters, the Transport Newsletter offers three timely articles. With internationalacceptancegrowing,the2004BallastWaterManagementConventionmaysoonenter into force. We consider the main features and requirements of this Convention on page 8. Recent amendments to IMO Codes for the safe carriage of goods by sea are also described (page 17). Followingtheadventofthefirstcontainerderivativetradelastyear,thedebateonwhetherfinancial derivatives will stabilise or destabilise the container shipping market has intensified. Some of the argumentsforandagainstcontainerfreightderivativesarepresentedonpage13. Highlights of the recently signed MoU to strengthen cooperation between UNCTAD and the UnionofAfricanShippersCouncilsappearonpage16. As usual, the UNCTAD Transport Newsletter provides a space for UNCTAD and its partners, including international organisations, NGOs and academic institutions, to share information on recentandupcomingeventsandpublicationsoninternationaltransportandtradefacilitation.News briefsaregatheredonpages19andonwards. Feedback,aswellascommentsandsuggestionsforournextTransportNewsletter,arewelcome until September 2011. Please contact Jan Hoffmann, jan.hoffmann@unctad.org, or Nishta Jogoo, nishta.jogoo@unctad.org. TheTradeLogisticsBranchTeam,Geneva,July2011

(sizeofwordcorrespondstoitsfrequencyinthenewsletter)

Content

UNCTADAdHocExpertMeetingonClimateChangeImpactsandAdaptation:AChallengeforGlobalPorts 2930September2011,Geneva...........................................................................................................................5 UNCTAD'sTradeandDevelopmentCommissiontakesonGlobalSupplyChainsandTradeFacilitation.................5 The2004BallastWaterManagementConventionwithinternationalacceptancegrowing,theConvention maysoonenterintoforce....................................................................................................................................8 TheDebateonContainerFreightDerivativesintensifies .......................................................................................13 MemorandumofUnderstandingsignedbetweenUNCTADandtheUnionofAfricanShippersCouncils .............16 RecentamendmentstoIMOCodesforthesafecarriageofgoodsbysea.............................................................17 MaritimeEconomics&LogisticsJournal,Volume13,Number2 ...........................................................................19 MaritimePolicy&ManagementJournal,Volume38,Issue3 ................................................................................19 MaritimeCommerceandSecurity:TheIndianOcean ............................................................................................19 TheoryandPracticeofShippingFreightDerivatives ..............................................................................................20 AppliedTransportEconomics .................................................................................................................................20 ImprovingEconomicRegulationinTransport.........................................................................................................20 SingleWindowImplementationFramework(SWIF)...............................................................................................20 PaperlesstradeandSingleWindowinitiatives,GoodpracticesinAsia..................................................................21 TransportOutlook2011launched ..........................................................................................................................21 HarmonizedSystemNomenclature2012nowavailable ........................................................................................21 UNECERosterofPPPExperts..................................................................................................................................21 ASYCUDANewsletter,June2011issue ...................................................................................................................21 PortManagementAssociationofEasternandSouthernAfricaenewsletter ........................................................22 ASYCUDAmentionedintheEACSourceBookforOneStopBorderPosts .............................................................22 IMLofferinganExecutiveMasterinGlobalSupplyChainManagement................................................................22 AsiaPacificTradeFacilitationForum,45October2011........................................................................................22 InternationalConferenceonLogisticsandMultimodalTransport,911October2011 .........................................22

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UNCTADAdHocExpertMeetingonClimateChangeImpactsand Adaptation:AChallengeforGlobalPorts2930September2011, Geneva

With over 80% of the volume of world trade carried by sea, international shipping and ports providecruciallinksinglobalsupplychainsandareessentialfortheabilityofallcountries,including thosethatarelandlocked,toaccessglobalmarkets.Atthesametime,portsarelikelytobeaffected directly and indirectly by climatic changes, such as rising sea levels, extreme weather events and rising temperatures, with broader implications for international trade and for the development prospects of the most vulnerable nations, in particular in the least developed countries (LDCs) and smallislanddevelopingstates(SIDS). Giventheirstrategicrolefornationaleconomiesandglobaltrade,adaptingportsandtransport systemsindifferentpartsoftheworldtotheimpactsofclimatechangeisofvitalimportance.Agood understandingofrisksandvulnerabilitiesisapreconditiontowelldesignedandeffectiveadaptation response measures that enhance the resilience of systems, structures and processes and minimize theadverseeffectsofclimaticfactors. Tohelpadvancetheimportantdebateonhowbesttomoveforward,anUNCTADAdHocExpert Meeting themed Climate Change Impacts and Adaptation: A Challenge for Global Ports is scheduledtotakeplaceon2930September2011,inPalaisdesNations,Geneva.Themeetingwill providepolicymakers,keypublicandprivatesectorstakeholders,internationalorganisationsaswell asscientistsandengineerswithaplatformfordiscussionandanopportunitytosharebestpractices. Furtherdetailswillbepostedat: http://www.unctad.org/Templates/meeting.asp?intItemID=1942&lang=1&m=21884&info=highlights FormoreinformationcontactHassibaBenamara,hassiba.benamara@unctad.org,orReginaAsariotis, regina.asariotis@unctad.org,TradeLogisticsBranch,DTL,UNCTAD

UNCTAD'sTradeandDevelopmentCommissiontakesonGlobal SupplyChainsandTradeFacilitation
ThethirdsessionoftheUNCTADTradeandDevelopmentCommission,heldon610June2011, emphasised the resurgent and critical role of trade in recovering from the global recession and in raisingthelivingstandardsoftheworld'sbillionsofpoor.Amongstthemaintopicsdiscussedwere transportandtradefacilitation,andglobalsupplychains. Accordingtotheparticipants,countriesabletoenterGlobalSupplyChains(GSCs)acquiredmore opportunitiesforexportleddevelopment.Severalcaseswerepresented.AspartofaGSC,producers were able to obtain information on productive knowhow, quality standards and technology. They alsolearntaboutdemandinhighincomemarketsandconsumerpreferences. However, entering GSCs was often difficult for developing countries. Labour costs advantages andpreferentialaccessneededtobeweighedagainsthighertradeandtransactionscostsandhigher businessrisks.Furthermore,smallandmediumsizeenterprises(SMEs)indevelopingcountrieswere oftenconstrainedbysupplycapacity,lackofmanagementskillsandpooraccesstoinformation,and thuscouldnotparticipateinGSCs. Africandevelopingcountriesespecially,comparedtotheirAsiancounterparts,hadlessleverage in creating strong working relationships with leading regional and multinational firms. In general,

UNCTAD, Trade Logistics Branch

they were trying to get involved in GSCs through agricultural and some labourintensive products. Thesesectorsweremarkedbyinsufficientlinkagesbetweenproducersandsuppliers.Inthecaseof agricultureforexample,therewasoftendiscontinuityatthedifferentnodesofthesupplychain.A case study presented of the rice agribusiness showed post harvest losses for African farmers as a result.Figure1summarisesthe main problemsandconstraintsfacing Africandevelopingcountries tryingtoenterGSCs. Figure1:SupplyChainsinAfricaProblemsandConstraints
TRANSPORTCOSTS Lowtransportcostsarecrucialtoexpandedtrade.TransportcostsinAfricaarenotoriouslyhigh.Theycaterto primarilyhighvalueproductsthatlowertherelativeweightoftransportcostsinthesupplychainprocess.Transport costscanaddasmuchas20%oftradevalueforcoastalcountriesand40%forlandlockedcountries. Thecontinenthasinadequatecoldchainsnecessaryfortheoverlandtransportoffreshhorticulture.Massiveprivate sectorinvestmentisneededtorectifythesituation.Requireshighvolumesoftrade,coordinationofproduction programs,andconsolidationofshipmentsbyexporters. Accesstofinanceisapandemicproblemintheregion.Thereare toofewinstitutionsthatprovideSMEcreditand interestratesareastronomicallyhigh. Itisthesupplysidethatchallengestradeinmuchoftheregion.Thereiserraticandlowqualitysupplylargelydueto lackofcapacity. Barrierssuchasinefficientcustomsadministrationandpoorinfrastructurehampertrade. Thereisascarcityofinformationandtechnicalknowledgeamong exportersandfoodproducers. Thecontinentforthemostpartfacesinefficienttradepolicies andbusinessenvironments/

MARKETINGINFRASTRUCTURE andSERVICES

CREDIT

SUPPLYCONSTRAINT

NONTARIFFBARRIERS INFORMATIONASSYMETRIES ENABLINGENVIRONMENT

Source:AfricanDevelopmentBank,PresentationfortheTradeandDevelopmentCommission,7June2010

TheroleofexpressdeliveriesinGSCswasdiscussed.Expressdeliveryshipmentsgrewaround7 8%ayearbetween2003and2008,andcurrentlyaverage30millionaday.By2017,itispredicted that36%ofallshipmentsbyairwouldbeexpress.Accordingtothepresenter,timesensitivecargo rangingfromdocuments tohightechgoodsandpharmaceuticalswasincreasinglybeing movedby express shipments. Express carriers assumed endtoend custody of the shipment and offered an integratedservice,whichincludescustomsclearance.Figure2illustratestheexpressdeliverychain. Figure2:ExpressDeliverychain

Source:GlobalExpressAssociation,PresentationfortheTradeandDevelopmentCommission,7June2010

SMEsindevelopingcountriesdiduseexpressdeliveryservicestoensureintegrityandtimeliness of their exports to clients all over the world, according to a study commissioned by the Global Express Association. However, many developing countries could still not comply with express deliveryrequirements.Averageclearancetimeofshipmentswasmeasuredindaysratherthanhours andthecostsoftradingwerestillextremelyhigh. Tofacilitatedevelopingcountries'integrationinGSCs,severalpolicyoptionswerediscussed.For example, while trade liberalisation and improved market access have helped developing countries joininternationalmarkets,furtherliberalisingSouthSouthtradeandreducingtariffsonintermediate

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inputs could help them integrate more. Behindtheborder trade related issues also need to be tackled to increase participation in GSCs and should be addressed by targeted trade facilitation programs. Trade facilitation measures were empirically among the most effective at reducing trade costs, according to several recent studies. These studies confirmed that transport infrastructure and services, together with trade facilitation and modern customs procedures, were indispensable for exportcompetitivenessandforacountrysparticipationinGSCs.Ontheground,practicalsolutions oftenrequiredregionalorbilateralcooperation,includinginareassuchastransit,harmonisationof documents,recognitionofcertificates,transportinfrastructureandcoordinationatbordercrossings. Technical and financial assistance to support transport and trade facilitation had increased significantlyinrecentyears.However,mostofthisadditionalassistancehadgonetomiddleincome developingcountriesratherthanleastdevelopedcountries.Inleastdevelopedcountries,itseemed other priorities, such as health and education, competed. Delegates urged UNCTAD to continue its effortsinsupportingcapacitybuildingindevelopingcountriesfornationalprioritiesandstrategiesin theareasoftransport,tradefacilitationandinfrastructure. Enabling trade related policies were not sufficient for a successful entry into GSCs. A sound businessenvironmentandeffectivegovernmentserviceswerealsoimportant.Theymadedomestic firmsmoreattractivetoglobalnetworks.Humancapitaldevelopmentwasalsocrucial,especiallyin order to climb the global value ladder. Industrial policy could help but it needed to be targeted at sectorswherecomparativeadvantagesexisted. Inconclusion,theTradeandDevelopmentCommission: "Recognised that improvements in transport and trade facilitation, including in infrastructure, canassistalldevelopingcountries,withdueregardtotheirspecificneedstotradecompetitively, inparticulartheleastdevelopedandlandlockedleastdevelopedcountries", "Emphasisedthatoverthelastthreedecades,GSCswhereefficiency,includingcostreduction strategies, results in goods being produced with intermediate inputs originating from several countries,includingdevelopingeconomieshavebecomecommoninmanyindustries,andhave been accompanied by a spectacular growth of world trade in intermediate parts and components", "NotedthatparticipationinGSCsisviewedbymanydevelopingcountriesasanimportanttool for diversifying and increasing exports and for their value addition, as well as for attracting foreign direct investment. In this context, supportive trade and industrial policies can help integratedomesticfirmsintoGSCs,buttheyarenotsufficient.Inordertokeepcompetitiveness on track to integrate into GSCs, such policies should be complemented by trade facilitation measures and substantial improvements in the overall business environment, including those relatedtodevelopingtransportandinfrastructures,fosteringcompetitioninlogisticsandother traderelatedservices,enforcingtheruleoflaw,improvingcustomsprocedures,andinvestingin thehumancapitalnecessarytorisealongthevaluechain", "Expressed concern that enterprises of least developed countries as well as other groups of countries with special needs are frequently confronted with substantial disadvantages in integrating into GSCs, in particular due to higher transport and other trade costs, low skill and technologylevels,theoftensmallsizeoftheirenterprises,andweakermanagementskills.Inthis regard, trade facilitation that aims to reduce traderelated costs, including nontariff measures,

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shouldbefurtherstrengthened,andeffortsshouldbemade,includingtakingintoconsideration developmentassistanceanddomesticpolicies,toupgradehumanandsocialcapital",and "Encouraged UNCTAD, in accordance with the mandate of the Accra Accord, to analyse the evolutionofGSCsandthemethodologies,bothatnationalandinternationallevels,necessaryto ensure increasing involvement and benefits for developing countries and their enterprises, as wellasintermsofaddingvaluetotheirexports". 1

Forfindoutmoreandtodownloadpresentationsmadeatthemeeting,pleasevisit http://www.unctad.org/templates/meetingorcontactNishtaJogoo,nishta.jogoo@unctad.org,Trade LogisticsBranch,DivisiononTechnologyandLogistics,UNCTAD.

The2004BallastWaterManagementConventionwith internationalacceptancegrowing,theConventionmaysoonenter intoforce

Oneofthemajorthreatstobiodiversityistheintroductionofnonnativespeciesfollowingthe discharge of untreated ship's ballast water. Indeed, the introduction of harmful aquatic organisms andpathogenstonewenvironmentshasbeenidentifiedasoneofthefourgreatestthreatstothe world's oceans. 2 Even though ballast water is essential to ensure safe operating conditions and stabilityforvesselsatsea,itoftencarrieswithitamultitudeofmarinespecies,whichmaysurviveto establish a reproductive population in the host environment becoming invasive, outcompeting nativespeciesandmultiplyingintopestproportions. The proliferation of bioinvasions continues to increase in conjunction with the growth of seabornetrade,asapproximately10billiontonnesofballastwaterperyeararetransferredglobally, withpotentiallydevastatingconsequences.Forexample,theintroductionofAmericancombjellyto the Black and Azov Seas caused the near extinction of anchovy and sprat fisheries, and the introduction of the European zebra mussel to the Great Lakes cost the United States and Canada billions of dollars in respect of pollution control and cleaning of fouled underwater structures and pipelines. 3 InFebruary2004,theInternationalConventionfortheControlandManagementofShips'Ballast WaterandSediments(BWM)wasadoptedbyconsensusataDiplomaticConferenceheldunderthe auspices of the International Maritime Organisation (IMO) to prevent, minimise and ultimately eliminate the risks to the environment, human health, property and resources arising from the transfer of harmful aquatic organisms carried by ships ballast water from one region to another. 4 FourresolutionspertainingtotheConventionwerealsoadoptedattheDiplomaticConference 5 ,and

AgreedConclusions,TradeandDevelopmentCommission,Thirdsession,610June2011 http://www.unctad.org/en/docs/ci3rd2011conclusions_en.pdf.pdf 2 Theotherthreatsarelandsourcedmarinepollution,overexploitationoflivingmarineresourcesanddestructionofhabitat, http://www.imo.org/OurWork/Environment/BallastWaterManagement/Pages/BWMConvention.aspx. 3 ForfurtherexamplesofAquaticInvasiveSpeciessee http://www.imo.org/OurWork/Environment/BallastWaterManagement/Pages/AquaticInvasiveSpecies(AIS).aspx 4 FortheprecedingworkoftheIMO,seeMEPCResolution50(31),1991,andIMOAssemblyResolutionA.774(18),1993,both titled,GuidelinesforPreventingtheIntroductionofUnwantedOrganismsandPathogensfromShips'BallastWaterandSediment Discharges,andIMOAssemblyResolutionA.868(20),1997,Guidelinesforthecontrolandmanagementofships'ballastwaterto minimizethetransferofharmfulaquaticorganismsandpathogens.SeefurtherArticle196(1),UNCLOS1982andthe1992 ConventiononBiologicalDiversity. 5 Conferenceresolution1:FutureworkbytheOrganisationpertainingtotheInternationalConventionfortheControland ManagementofShipsBallastWaterandSediments;Conferenceresolution2:Theuseofdecisionmakingtoolswhenreviewing

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subsequently, various Guidelines have been developed by the IMO to encourage its uniform implementation. 6 The Convention appears to be receiving widespread support as, since February 2010, it has receivedsevenfurtheraccessions. 7 Asaresult,theConventionhasnearlysatisfieditsconditionsfor entryintoforce,havingreceived28outoftherequisite30ratifications,representing25.43%ofthe necessary 35% of world tonnage. 8 In addition to the significant efforts made by the IMO Member Countriestoestablishaninternationalregulatoryframework,manycountriesandevensubnational jurisdictions have unilaterally developed or are developing national or local legislation, 9 which remainsgenerallyconsistentwiththecurrentIMOGuidelinesrelatingtoballastwater.Itistherefore essential for shipowners and ship operators, along with those responsible for Flag State and Port Stateinspections,tofamiliarisethemselveswiththerelevantobligationsoutlinedintheConvention andrespectiveGuidelines.Astheinternationalregulatorylandscapeforballastwatermanagementis likelyto changesoon,otherStates may,too,wishtoconsiderthemeritsofaccession.Againstthis backgroundandtoassistintheunderstandingofthe2004BWMConvention,abriefoverviewofits keyfeaturesisprovidedbelow. Asalreadynoted,theConventionhastheobjectiveoferadicatingthetransferofharmfulaquatic organisms and pathogens, by regulating the control and management of ships ballast water and sediments. 10 WhentakingactionpursuanttotheConvention,ContractingStatesmustendeavournot toimpairordamagetheenvironment,humanhealth,propertyorresources,andmustensurethat ballastwatermanagementpracticesusedtocomplywiththeConventiondonotcausegreaterharm than they prevent. 11 Contracting States are also required to promote and facilitate scientific and technicalresearchonballastwatermanagement,andtomonitortheeffectsofsuchmanagementin watersundertheirjurisdiction. 12 TowhichshipsdoestheConventionapply? TheConventionappliestovesselsofanytypewhatsoeveroperatingintheaquaticenvironment, including submersibles, floating craft, floating platforms, floating storage units (FSUs) and floating production, storage and offloading units (FPSOs). 13 Even so, the Convention only applies to ships entitled to fly the flag of a Contracting State, or alternatively, a ship under the authority of a

thestandardspursuanttoRegulationD5;Conferenceresolution3:Promotionoftechnicalcooperationandassistance; Conferenceresolution4:ReviewoftheAnnextotheInternationalConventionfortheControlandManagementofShipsBallast WaterandSediments. 6 ForalistoftheGuidelines,see http://www.imo.org/OurWork/Environment/BallastWaterManagement/Pages/BWMGuidelines.aspx. 7 In2010,Brazil,Canada,theCookIslands,Croatia,MalaysiaandtheNetherlandsaccededtotheConvention.In2011,sofar,the IslamicRepublicofIranhasalsoaccededtotheConvention.ForthecurrentratificationstatusoftheConvention,see http://www.imo.org/About/Conventions/StatusOfConventions/Pages/Default.aspx. 8 Fortheconditionsforentryintoforce,seeArticle18,2004BWMConvention. 9 TheseincludeAustralia,Canada,Chile,Israel,NewZealand,theUSA,variousindividualStateswithintheUSAandvarious individualportsaroundtheworld,suchasBuenosAiresinArgentina,ScapaFlowinScotlandandVancouverinCanada.Forabrief overviewofballastwatermanagementarrangementsineachIMOMemberState,see http://globallast.imo.org/index.asp?page=country_profiles/intro.asp. 10 See Article 2(1), 2004 BWM Convention. For the purpose of the Convention, "Ballast Water" is defined as water with its suspendedmattertakenonboardashiptocontroltrim,list,draught,stabilityorstressesoftheship,whereas"Sediments"referto mattersettledoutofballastwaterwithinaship(SeeArticles1(2)and1(11)). 11 SeeArticle2,2004BWMConvention. 12 SeeArticle6,2004BWMConvention. 13 SeeArticle1(12),2004BWMConvention.SeealsoRegulationB3.BallastWaterManagementforships,whichdetailsspecific requirementsforballastwatermanagementinrelationtotheship'scapacityanddateofconstruction,andRegulationD2.Ballast Water performance standard, which sets out the amount of viableorganismsthatmay be discharged perset volume of ballast water.

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Contracting State. 14 Certain vessels are also excluded from the Convention, for instance, ships not designedorconstructedtocarryballastwater,orshipswhichonlyoperatewithinthejurisdictional area of a Contracting State. 15 Furthermore, ships participating in programmes approved by ContractingStatestotestandevaluatenewballastwatertreatmenttechnologieshavethebenefitof afiveyeargraceperiodbeforehavingtocomplywiththerequirementsoftheConvention. 16 The Convention requires that a standard of no more favourable treatment is exercised with regard to ships registered with nonContracting States. Specifically, the Conventions provides that "WithrespecttoshipsofnonPartiestothisConvention,Partiesshallapplytherequirementsofthis Convention as may be necessary to ensure that no more favourable treatment is given to such ships."17 Asaconsequence,itappearsthatshipsofnonContractingStatesmaybeobligedtoobserve thepracticesoutlinedintheConventionwhenenteringandleavingthewatersofContractingStates, therebycomplyingwiththeballastwatermanagementrequirements.Thisapproachaimstoensure the widestpossible application of the Convention and to prevent ships that are registered in Contracting States suffering from a competitive disadvantage, which may otherwise provide a disincentive to ratification. At the same time, it means that all ships engaged in trade with ContractingStateswouldbeaffectedbytheConvention,irrespectiveoftheflagthattheyfly. PhysicalObligations a)BallastWaterManagement The BWM Convention specifically requires that the discharge of ballast water must only be conducted through ballast water management. 18 Such management refers to the "mechanical, physical, chemical, and biological processes, either singularly or in combination, to remove, render harmless, or avoid the uptake or discharge of harmful aquatic organisms and pathogens within ballastwaterandsediments." 19 There are limited exceptions where the obligations under the Convention will not apply, for example,wheretheuptakeordischargeofballastwaterisnecessaryforthepurposeofensuringthe safety of a ship in emergency situations, saving life at sea, or, for avoiding or minimising pollution incidentsfromtheship.Accidentaldischargesofballastwaterresultingfromdamagetoashipare alsoexcluded,providedthatallreasonableprecautionshavebeentaken,andsolongasthedamage totheshipwasnotcausedwilfullyorrecklessly. 20 Inlimitedcircumstances,exemptionsmayalsobe providedbyContractingStatesinwaterswithintheirjurisdiction,forexample,toshipsonvoyages betweenspecifiedportsorlocations. 21 TheConventionrecognisesthatshipsdifferinrespectoftheirtype,sizeand,inparticular,their ballast water capacity, and therefore provides two standards of ballast water management: the ballastwaterexchangestandardandtheballastwaterperformancestandard.

SeeArticle3(1),2004BWMConvention. SeeArticle3(2),2004BWMConvention. 16 RegulationD4.PrototypeBallastWatertreatmenttechnologies,2004BWMConvention. 17 SeeArticle3(3),2004BWMConvention. 18 SeeRegulationA2.GeneralApplicability,2004BWMConvention. 19 SeeArticle1(3),2004BWMConvention."Harmfulaquaticorganismsandpathogens"arethosewhich,ifintroducedintothesea, estuaries or into fresh water courses, may create hazards to the environment, human health, property or resources, impair biologicaldiversityorinterferewithlegitimateusesofsuchareas(Article1(8)). 20 SeeRegulationA3.Exceptions,2004BWMConvention. 21 SeeRegulationA4.Exemptions,2004BWMConvention.
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(i)BallastWaterexchangestandard To comply with this standard, ships performing ballast water exchange must do so with an efficiency of at least 95% volumetric exchange of ballast water. Ships must also carry out such operations,wheneverpossible,atleast200nauticalmilesfromthenearestlandandinwateratleast 200metresindepth.Ifthisisnotpossible,then,inallcasestheexchangeshouldtakeplaceatleast 50 nautical miles from the nearest land and in water at least 200 metres in depth; or in areas designatedbyContractingStatesforsuchpurposes. 22 (ii)BallastWaterperformancestandard Tocomplywiththisstandard,allballastwatermustbetreatedtoensurethatlessthan10viable organisms per cubic metre greater than 50 micrometres and less than 10 viable organisms per millilitre between 1050 micrometres is discharged. In addition, organisms classed as "indicator microbes"havespecificconcentrationsthatmustbecompliedwith. 23 For ships constructed before 2009, depending on ballast water capacity, the ballast water exchangestandardisacceptableuntil2014or2016.Thereafter,shipsmustmeettheballastwater performance standard, i.e. all ballast water will need to be treated. Ships constructed in or after 2009,butbefore2012,withaballastwatercapacityof5,000cubicmetersormore,mayalsomeet the ballast water exchange standard until 2016. All other ships constructed in or after 2009 must meettheballastwaterperformancestandard. Othermethodsofballastwatermanagementmayalsobeacceptedasalternativestotheabove standards, provided that such methods ensure the same level of protection to the environment, humanhealth,propertyorresources,andareapproved,inprinciple,bytheIMO. 24 BallastWaterManagementsystems BallastWaterManagementsystemsusedtocomplywiththeConventionmustbeapprovedby theAdministration,takingintoaccountGuidelinesdevelopedbytheIMO. 25 Thatis,unlesstheymake useofactivesubstance,forexample,chemicalsorbiocides,inwhichcase,theymustbeapprovedby theIMO. 26 Allsuchsystemsmustbesafeintermsoftheship,itsequipmentandcrew. AtthemostrecentmeetingoftheIMO'sMarineEnvironmentProtectionCommittee(MEPC)in October 2010, the Committee agreed to grant final approval to a further six ballast water management systems that make use of active substances, and to grant basic approval toa further three. 27 Such approval is likely to improve the prospects of the Convention gaining further ratifications,andsubsequentlysatisfyingitsconditionsforentryintoforce. b)SedimentManagement In relation to sediment management, the ship's Ballast Water Management plan (see below) must contain provisions for the removal and disposal of sediments from the ship's ballast tanks. 28 ContractingStatesmustalsoensurethat,inportsandterminalswherecleaningorrepairofballast

SeeRegulationB4.BallastWaterexchangeandRegulationD1.BallastWaterexchangestandard,2004BWMConvention. Seepara2ofRegulationD2.BallastWaterperformancestandard,2004BWMConvention.IndicatormicrobesincludeToxigenic Vibriocholerae,EscherichiacoliandIntestinalEnterococci. 24 Seepara7,RegulationB3.BallastWaterManagementforships,2004BWMConvention. 25 SeeforinstanceGuidelinesforapprovalofballastwatermanagementsystems(G8)(resolutionMEPC.174(58)). 26 SeeRegulationD3.ApprovalrequirementsforBallastWaterManagementsystems,2004BWMConvention. 27 SeeMEPC61/24,ReportoftheMarineEnvironmentCommitteeonitssixtyfirstsession(Secretariat),atpp.89.Forthefurther workoftheMEPCandtheBallastWaterReviewGroup,seeMEPC61/24,pp.716.Foranoverviewofthestatusofballastwater treatmenttechnology,seehttp://www.intertanko.com/Topics/Environment/Ballastwater/BallastWaterTreatmentTechnology/. 28 SeeRegulationB5.SedimentManagementforships,2004BWMConvention.
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tanks occurs, adequate facilities are provided for the reception of sediments, which operate efficientlyandprovideforthesafedisposalofsuchsediments. 29 DocumentaryObligations The Convention also requires that certain documents are on board the ship at all times. Accordingly,eachshipmusthaveaBallastWaterManagementplan,aBallastWaterrecordbookand anInternationalBallastWaterManagementCertificate. (i)BallastWaterManagementplan The Convention requires ships to have on board and implement a Ballast Water Management plan,which,interalia,detailssafetyproceduresfortheshipandcrewassociatedwithballastwater management,alongwithproceduresforthedisposalofsediments. 30 Suchplansarespecifictoeach shipandmustbeapprovedbytheAdministrationoftheContractingState. (ii)BallastWaterrecordbook Ships must also have on board a Ballast Water record book detailing each ballast water operation. 31 Forinstance,therecordbookmustreflectwhenwateristakenonboard;circulatedor treated for ballast water management purposes; and discharged into the sea or into a reception facility. Accidental or other exceptional discharges of ballast water must also be recorded. Record bookentriesmustbemaintainedonboardtheshipforaminimumperiodoftwoyearsafterthelast entryhasbeenmade,andthereafterintheCompany'scontrolforaminimumperiodofthreeyears. (iii)InternationalBallastWaterManagementCertificate To ensure compliance, ships of 400 gross tonnes and above that are under the authority of a ContractingStatemustbesurveyed 32 bythatStateinaccordancewiththeRegulationsprovidedin theAnnextotheConvention. 33 Followingsuccessfulcompletionofasurvey,shipsshouldbeissued an International Ballast Water Management Certificate by the Administration, via nominated surveyorsorrecognisedorganisations,foraperiodnotexceedingfiveyears. Ships may also be inspected by the port authorities of other Contracting States to ensure compliance. Generally, such inspections are limited to the verification of the ships certificate, inspectionoftheshipsballastwaterrecordbook,andsamplingoftheshipsballastwater.Amore detailedinspectionmaybecarriedouthowever,wheretherearecleargroundsforbelievingthatthe ships certificate does not correspond to the condition of the ship, or where essential shipboard proceduresrelatingtoballastwatermanagementhavenotbeenimplemented.Wheresuchdetailed inspections are carried out, the ship in question must be prevented from discharging ballast water untilitcandosowithoutpresentingathreatofharmtotheenvironment. 34

SeeArticle5,2004BWMConvention. SeeRegulationB1.BallastWaterManagementplanandRegulationD3.ApprovalrequirementsforBallastWaterManagement systems,2004BWMConvention.GermanischerLloydhasproducedabookletonstandardoperationalguidancefortheplanning and management ofships' ballast water andsediments. The publicationdescribessafeproceduresfor handling ballastwaterin ordertocomplywithinternationalaswellasregionallegislation.Seefurtherhttp://www.glgroup.com/en/press/news_22949.php 31 SeeRegulationB2.BallastWaterrecordbookandAppendixI,2004BWMConvention. 32 SeeRegulationE.1.Surveys,2004BWMConvention.ThisRegulationdoesnotapplytofloatingplatforms,FSUsorFSPOs. 33 See Articles 4 and 7, 2004 BWM Convention. See also Section E of the Annex to the Convention for survey and certification requirements. 34 SeeArticle9,2004BWMConvention.
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Sanctions Contracting States must establish sanctions under their national laws for violations of the Convention,whereversuchviolationsoccur. 35 WhereshipshaveviolatedtheConvention,theymay bewarned,detainedorexcludedbyContractingStates, 36 however,allreasonableeffortsshouldbe madetoavoidashipbeingundulydetainedordelayed,andashipmaybeentitledtocompensation ifsuchundulydetentionoccurs. 37 Additional specified standards or requirements in respect of ballast water and sediment managementmayalsobeimposedbyContractingStateswhereitisdeterminedthatsuchmeasures are necessary, as long as such measures are consistent with international law. 38 In such cases, a Contracting State should consult with adjacent or other States that may be affected by such standardsorrequirements,andsuchintentionsshouldalsobecommunicatedtotheIMO. Given that the BWM Convention has nearly satisfied its conditions for entry into force, ships registeredinContractingStatestotheConvention,aswellasshipsengagedintradewithContracting States, will need to consider investing in one of the ballast water treatment systems currently availableandapprovedbytheapplicableAdministrationand/ortheIMO.Thecostofmodifyingan existing system or installing a new system is likely to be a significant factor when selecting the appropriate technology, and shipowners should ensure that the chosen system allows them to complyfullywiththecurrentregulations.Asnotedabove,therequisitedocumentationwillneedto bedevelopedforeachship,andshipswillalsoneedtobesurveyedtoobtainanInternationalBallast WaterManagementCertificate.Inaddition,crewmembersthatwillbeinvolvedintheoperationof theballastwatermanagementsystemwillneedtobeproperlytrainedtodoso. Forfurtherinformation,pleasecontactJenniferLavelle,jennifer.lavelle@unctad.org,orReginaAsariotis, regina.asariotis@unctad.org,TradeLogisticsBranch,DTL,UNCTAD

TheDebateonContainerFreightDerivativesintensifies
TherehasbeenmuchdebaterecentlyoverthedevelopmentanduseofContainerFreightSwap Agreements (CFSAs). Clarksons, the worlds biggest shipbroker and pioneer of dry bulk cargo derivatives in the early 1990s, made the first container derivative trade in January 2010. They estimatethat,bytheendof2011,containerderivativesmaybeworth510%ofthephysicalmarket. In principle, CFSAs offer shippers and carriers the opportunity to manage freight rate risk of containerisedcargooveragivenperiod.Theyweredevelopedfollowingtherecentvolatilityinprices (seeFigures3and4)andintroductionofabenchmarkindex. CFSAs are a hedge on future freight rates. They are price agreements between two counterparties (for example, on the supply side the shipping lines, and on the demand side exporters, freight forwarders and trading companies) for a certain volume of containers, on a particulartraderouteandoveraspecifiedfutureperiod(uptotwoyears).Attheendofthecontract period,thecounterpartiessettle(incash)thedifferencebetweenthepreagreedcontractpriceand theactualspotmarketpriceonthatday.

35 36

SeeArticle8,2004BWMConvention. SeeArticle10,2004BWMConvention. 37 SeeArticle12,2004BWMConvention. 38 SeeRegulationC1.AdditionalMeasures,2004BWMConvention.

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UNCTAD, Trade Logistics Branch

Figure3:FreightRateindicesofcontainercargooriginatingfromChina20042011*

Source:ClarksonResearchServices(2011),ContainerIntelligenceMonthly,June.*DataderivedfromtheShanghaiShippingExchangeand inclusiveofsomesurcharges.

Figure4:LinerfreightindicesforGermanownedcontainercargoes,20042010 (Monthlyfigures:1995=100)
140 120

100

80

60

40

20

ja nv -0 4 av r04

ju il04 oc t-0 4 ja nv -0 5 av r-0 5 ju il05

oc t-0 5 ja nv -0 6 av r-0 6

ju il06 oc t-0 6 ja nv -0 7 av r-0 7 ju il07

oc t-0 7 ja nv -0 8 av r-0 8 ju il08

oc t-0 8 ja nv -0 9 av r-0 9 ju il09 oc t-0 9 ja nv -1 0

av r-1 0 ju il10

oc t-1 0

Source:CompiledbytheUNCTADsecretariat,onthebasisofinformationinvariousissuesofShippingStatisticsandMarketReview, publishedbytheInstituteofShippingEconomicsandLogistics.

Ifthemarketgrowsstrongerandpricesincrease,fromthedateofthecontracttothedateofits conclusion,thebuyerofaCFSAwillbenefit.TheCFSAbuyerwillsellbackhispositionatthecurrent higherspotpriceandpocketthedifference.He/sheisthenfreetopurchasefreightservicesatthe spotpriceontheopenmarket.Thebuyerhaspaidlessfortheshipmentofthecontainerthanhe/she wouldhavedoneifitwaspurchasedonthespotmarketwhenthecargowasready.Thusthebuyer hassuccessfullyhedgedagainstanincreaseincostoftheunderlyingphysicalmarket.Ontheother hand,ifthemarketsoftensandpricesdecrease,theselleroftheCFSAbenefits. WiththecurrentCFSAs,settlementiseffectedagainsttherateoftheShanghaiContainerFreight Index (SCFI), published by the Shanghai Shipping Exchange. The index is comprised of freight rates from Shanghai to a number of mainline ports around the world, giving USD per TEU or FEU assessmentson15routes.Atthemoment,theSCFIonlyhasroutesoriginatingfromChina.Drewry Shippingconsultantsannounced,inMay2011,planstolaunchanewindexthatwouldreportweekly onotherroutes. TheeaseofexecutionandcashsettlementhavemadeCFSAsaninterestingoptionforshippers andothers.Sincethepriceissetbythemarket,itgivescarriersmoretimetoconcentrateontheir relationshipswithcustomersandtheservicestheyprovide.Yetmanycarriersdonotseethisasan advantage.Theywouldrathernotseecontainershippingbecomeatradablecommodity.Inorderto

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Transport Newsletter # 50

helpalleviateconcerns,moreinvestigationisneededintowhathappenswhenCFSAsarepurchased by those (i.e. speculators) who have no intention of using their hedged positions to buy freight servicesintherealmarketoncethecontractshaveconcluded. Derivativesingeneralarenotwellperceivedbymany,becauseoftheirroleintherecentglobal financial crisis. Carriers are on the whole resistant to the idea, arguing that speculative forces will destabilise themarket,makingitmoreliquid,and createevenmorepricevolatility. Similardoubts surfaced when Forward Freight Agreements (FFAs) for dry bulk cargo were introduced in the early 1990s.Themarketfortheseonlytookoffin2003,whenChinabegantoimportlargevolumesofraw materials. They are now fully established as an important market tool and are worth 40% of the physicalmarket.Brokerssaythat,wherefreightcostsaccountforabigfractionoftheretailprice,the abilitytohedgeshippingcostsisanactiveapproachtoriskmanagement.FFAsdidassistshippersin hedgingagainstpricevolatilityin2008whenthephysicaldrybulkmarketcollapsed. However,containershippingisseenaslesssuitedtofuturestradingthandrybulkshippingasit requiresthenegotiationoflongtermcontractsthatcontainspecificprovisionsotherthanpriceand volume (such as free use of containers and inland delivery). Such contracts are viewed as the best waytoprovidestabilityinthecurrentclimatewherefreightratesstillseemtobedecreasing.Brokers arguethatthesetypesofcontractsandderivativesdonothavetobeseenasexclusive,thatshippers andcarrierscouldnegotiateacontractandpegratechangestotheSCFIortoamoresuitableindex. Whilethedebateoncontainerisedfreightderivativescontinues,mostagreethattobringlonger term stability to container trades some indices are required. The Container Freight Derivatives Association,establishedtoactasaneutralandunifiedvoiceforusersoffreightderivatives,iskeen to engage all industry players in discussions about the role that these new risk management tools couldplayinthefuture.

References
ENERGYRISK,"Containerswapderivativeclearingtoboostmarket",25June2010. THEECONOMIST,"Boxingclever:Arecontainerderivativespoisedforbumpergrowth?",print edition,19August2010. LLYOD'SLIST,"Freightfuturesbrokershitbackatboxderivativescritics",30August2010. REEDSMITH,"Containerfreightderivatives:thewayforwardforthecontainerindustry?",16 December2010. EUROPEANSHIPPERS'COUNCIL,"EuropeanTransportPolicyUpdate",21April2011. CLARKSONSECURITIES,ContainerFreightDerivativesOverview, clarksonsecurities.com/containers VincentValentine,vincent.valentine@unctad.org,andNishtaJogoo,nishta.jogoo@unctad.org,Trade LogisticsBranch,DivisiononTechnologyandLogistics,UNCTAD.

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UNCTAD, Trade Logistics Branch

MemorandumofUnderstandingsignedbetweenUNCTADandthe UnionofAfricanShippersCouncils
On10thJune2011,UNCTADsignedaMemorandumofUnderstanding(MoU)withtheUnionof AfricanShippersCouncil(UASC).TheMoUisaimedatstrengtheningtheframeworkofcooperation between the UASC and UNCTAD over the next three years through consultations and regular exchangeofviews. BuildinguponUNCTADrecommendationstoprotectshippers'interestsindevelopingcountries in the 1960sand 1970s, National Shippers' Councils were set up in various parts of the world. The UnionofAfricanShippersCouncilwasestablishedinJanuary1977bytheMaritimeOrganisationof West and Central African States. It is headquartered in Cameroon and currently has 16 members: Angola, Benin, Burkina Faso, Cameroon, Congo, Cote d'Ivoire, Gabon, Ghana, Mali, Niger, Nigeria, Democratic Republic of Congo, Senegal, Togo, Guinea Conakry and Equatorial Guinea. South Africa andKenyaaresettojoin. The UASC is mandated to provide assistance to African shippers and protect their interests throughout the transport chain. Its duties include, for example, strengthening the mechanisms for consultationandnegotiationwithmaritimeconferencesandshippinglineswhoseshipsserviceWest and Central African ports; reducing the effects of transportation costs on member countries; streamliningtrafficandoptimisingshippingservices;establishingandmaintainingrelationshipswith transportassociations,ports,shipperscouncilsofothercountriesandinternationalorganisationsand institutions;andreducingadministrativeredtapeininternationalmaritimetraffic.

UNCTAD will cooperate with the UASC under the new MoU through technical assistance, capacitybuilding,training,andresearchandanalysisonsubjectmattersofspecificinteresttoUASC members. UNCTAD staff and representatives discussed areas for potential collaboration with the UASCduringameetingheldon8June2011.Bothpartiesexpressedinterestin: The UASC becoming more involved in UNCTAD's Port Training Programme, either by providing financingandtrainingfacilities,asthecaseinseveralcountries,and/orbyparticipatingdirectlyin the training. The latter will build the capacity of UASC members to better understand best practices with regard to port functioning and the management and development of ports, and enablethemtobetterservetheirclients.

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Transport Newsletter # 50

UNCTADcontinuingtosupportWestAfricancountriesintheirnegotiationsoftradefacilitation issues at the WTO. Shippers Councils have already in the past participated in national and regional workshops organised and facilitated by UNCTAD in the West African region. UNCTAD andtheUASCwillidentifyissuesofcommoninterestwhichmaymeritfurtherseminarsorround tables. UNCTAD and the UASC working together to develop specific project proposals for external financing. These could be in areas such as transport corridor developments or institutional strengthening of the national Shippers Councils themselves (for example, capacity building to enable the delivery of a variety of tailored services, such as legal advice, to their clients). In particular,inUNCTAD'sendeavourstosupportlandlockedcountries,thereisacommoninterest inworkingwiththeUASCtofacilitatetransittradeanditstransport.UNCTADandtheUASCwill alsoincreasetheirexchangesofstatisticalinformation.

Forfurtherinformation,pleasevisit http://wwwdev.unctad.org/Templates/Page.asp?intItemID=6001&lang=1orcontactJanHoffmann, jan.hoffmann@unctad.org,orNishtaJogoo,nishta.jogoo@unctad.org,TradeLogisticsBranch,Divisionon TechnologyandLogistics,UNCTAD.

RecentamendmentstoIMOCodesforthesafecarriageofgoodsby sea
TheInternationalMaritimeSolidBulkCargoes(IMSBC)CodehassupersededtheCodeofSafe Practice for Solid Bulk Cargoes (BC Code), and is now mandatory for all ships carrying solid bulk cargoes,irrespectiveoftheirkeellayingdateorgrosstonnage. 39 TheIMBSCCodewasadopted by theIMOMaritimeSafetyCommitteeatits85thSessioninDecember2008,alongwithamendments toSOLASChapterVIthatmaketheCodemandatory. 40 Theseamendmentsenteredintoforceon1 January2011. The IMBSC Code aims to facilitate the safe stowage and shipment of solid bulk cargoes by supplying information regarding the dangerous nature of certain cargoes. The Code also provides detailed requirements that relate to their safe carriage, safe loading and discharge, and trimming procedures,alongwithadviceconcerningthesafetyofshippersonnel. The IMSBC Code is very similar to the BC Code although existing schedules have been fully updatedwithsomemodifications;newindividualschedulesforcertaincargoeshavebeenadded,as well as guidance on the safe carriage of cargoes that are not contained in the Code. Survey and certificationinrespectoftheIMSBCCodearenotmandatory,althoughownersmustbeawarethat Port State Controls and the Port Authorities of various States require that a valid Certificate of Complianceisavailableonboard.ClassificationsocietiesshouldbeabletoissuesuchCertificatesfor thecarriageofallcargoeslistedintheIMSBCCode. TheInternationalMaritimeDangerousGoods(IMDG)Codehasalsorecentlybeenamended,as partofitsregularupdatingprocess.TheIMDGCodeisoneofthekeyinstruments concernedwith the safety of merchant ships, as it provides a uniform international code for the transport of

39 40

Seefurtherhttp://www.imo.org/ourwork/safety/regulations/pages/bulkcarriers.aspx. ForfurtherinformationontheworkoftheMSCinthiscontext,seeMSC85/26,ReportoftheMaritimeSafetyCommitteeonits eightyfifth session (Secretariat). For the full text of the IMSBC Code, see Resolution MSC.268(85), attached at Annex 3, MSC 85/26/Add.2.

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UNCTAD, Trade Logistics Branch

dangerous goods by sea. 41 Detailed recommendations are given in relation to specific dangerous substances and materials, along with recommendations for good operational practice, including advice on terminology, packaging, labelling, stowage, segregation and handling, and emergency responseaction. The IMDG Code further supplements the regulations contained in Chapter VII (Carriage of Dangerous Goods) of the International Convention for the Safety of Life at Sea (SOLAS), 1974, as amended.AnumberofdangeroussubstancesincludedintheIMDGCodehavealsobeenidentified assubstancesharmfultothemarineenvironment,i.e.marinepollutants,forthepurposesofAnnex IIIoftheInternationalConventionforthePreventionofPollutionfromShips,1973,asmodifiedbythe Protocolof1978relatingthereto(MARPOL73/78). The IMDG Code has been mandatory since 1 January 2004 and is updated every two years to accommodate new dangerous goods and to supplement or revise existing provisions. At the 87th SessionoftheIMOMaritimeSafetyCommittee(MSC)inMay2010,Amendment3510wasadopted, which includes revisions to various sections of the IMDG Code and to transport requirements for specificsubstances. 42 Amongotherchanges,theAmendmentallowselectronicshippingpaperstobe used as an equivalent to the more traditional paperbased documentation, and a new provision requires the consignor and the carrier to retain Dangerous Goods documents for 3 months. The IMDGCodeasamendedwillbemandatoryfrom1January2012butmaybeappliedonavoluntary basisfrom1January2011.
Forfurtherinformation,pleasecontactJenniferLavelle,jennifer.lavelle@unctad.org,orReginaAsariotis, regina.asariotis@unctad.org,TradeLogisticsBranch,DTL,UNCTAD

41 42

Seefurtherhttp://www.imo.org/OurWork/Safety/Cargoes/Pages/DangerousGoods.aspx. ForfurtherinformationontheworkoftheMSCinthiscontext,seeMSC87/26,ReportoftheMaritimeSafetyCommitteeonits eightyfifthsession(Secretariat).Forthe2010amendments,seeResolutionMSC.294(87)attachedatAnnex8,MSC87/26/Add.1 (atpp.73158ofthedocument).

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Transport Newsletter # 50

MaritimeEconomics&Logistics Journal,Volume13,Number2
The Maritime Economics & Logistics is a quarterly journal dedicated to the methodological analysis of global supply chains, in particular, ocean transportation,ports,marine terminals and maritime logistics. This issue contains articles presented at the 2010 World Conference on TransportResearchinLisbon.It deals with topics stemming from recent trends in trade volumes and containerisation; increasedvolatilityofmaritime, port flows and vessel size; and chainintegration. Forexample,itexaminesthe extent to which port competition and complementarity can coexist, and whether these notionsareappliedbyshippingcompanies.Ittests whatbestexplainstheseaport'slevelofefficiency. The link is made in one article between vessel prediction capabilities and savings that can be made in allocating port resources. It shows how important such savings can be over the total volumeoftraffic.Onearticletriestominimisethe costs from vessels' late departure and maximise premiums from early departure. Another tries developing a tool to find the right vessel in terms of capacity, speed, etc for each type of business. The last article tests to what extent structural models, in particular non and semi parametric models,haveakeyroleinshippingmarketprices.
http://www.palgravejournals.com/mel/index.html

oligopolies. It deals with ro/ro shipping and its doubleloading problem. Four strategies to tackle uncertainty in product markets are identified. It discussesreasonsforportrelateduncertainty,and considers maritime logistics hubs, their functional forms and success factors. A port capacity and efficiencyindexisdeveloped.Italsoteststowhat extent port satisfaction, competitiveness and service delivery effectiveness are perceived as different concepts, and looks into different port governancesystems.
http://www.tandf.co.uk/journals/journal.asp?issn=0308 8839&linktype=1

MaritimeCommerceandSecurity: TheIndianOcean
NewpublicationbytheStimsonCenter The Stimson Center is a nonprofit with the objective of enhancing international peace and security through a combination of rigorous analysisandoutreach.Their early work in the Indian Ocean region depicted developments in the maritime sphere (resources, environment, governance and security) as critical to the broader regional security environment. Previous publications related to the region were The Indian Ocean: Resource and Governance Challenges (Stimson 2009) and Coastal Zones and ClimateChange(Stimson2010),whichfocusedon the environmental dimensions of the Indian Ocean. This current publication looks at the Indian Ocean as an increasingly vital maritime space. It examines the maritime agenda from an economic and shipping perspective, and factors in issues of security (from the safety of ships and their crews tothelargersecurityconcernsoflittoralstatesand major powers for whom the sea is a lifeline for prosperity and growth). The study is organised by three broad categories: Maritime Commerce, Maritime Infrastructure, and Maritime Issues and InternationalSecurity.Itusesresearchinthetrade and academic press, as well as field visits and interviews with scholars, government officials, regulators, mariners, port officials and business executives in several sectors of the shipping industry. The authors visited ports and other maritime institutions in Singapore, Malaysia, Indonesia, India, Bangladesh, Pakistan, the United Arab Emirates, Egypt, Tanzania, Kenya and Mauritius.
http://www.stimson.org/images/uploads/research pdfs/March4__Full.pdf

MaritimePolicy&Management Journal,Volume38,Issue3
The Maritime Policy & Management Journal provides the opportunity for publishing and exchanging views on topics such as business, organisational, economic, sociolegal and management issues at port, community, shipping company and shipboard levels. It also contains detailsofconferencesandbookreviews. Presented during the 2010 World Conference on Transport Research as well, the papers in this issue deal with aspects of maritime and port market power and competitiveness. More and more,portsandthemaritimechainareconsidered as sections of a longer logistics chain. It is clear that a chain is only as strong as its weakest link. Thus, all actors have an interest in the overall performance of the chain, even for the sections thatareoutofcontroloroutofreach. This issue looks into the power that shipping companies might have acquired through the existence and/or formation of monopolies or

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TheoryandPracticeofShipping FreightDerivatives
Book edited by Manolis G. KavussanosandIliasD.Visvikis This book presents the views on shipping freight rate derivatives of leading expert practitionersinthefield.Itoffers good practices from divergent and different points of view. As an inherently volatile industry, shipping is characterised by a high riskhigh return profile, making its rates and prices difficult to forecast. As a consequence business projects are less accurately budgeted. Therefore, the identification and management of any such business risks is imperative. It can make the difference between success or failure when contending with the adverse price movements of the market and the intense competition which existsinthisglobalindustry. Freightratesandtheirfluctuationconstitutethe mostsignificantsourceofbusinessrisk.Increasing recognition of this risk has brought about the development of more and more derivative products, which have begun to offer more effective, flexible and cheaper ways to manage risk. The issue of freight derivatives has become particularlypertinentfollowingtheglobalfinancial crisis.
http://riskbooks.com/theoryandpracticeofshippingfreight derivatives

ImprovingEconomicRegulationin Transport
"Better Economic Regulation: The Role of the Regulator"isthenewreportfromtheInternational Transport Forum, a transport policy think tank at the OECD. It focuses on how to achieve effective independentregulationoftransportinfrastructure and how to reconcile this independence with the legitimatecontrolofpolicybytheexecutivepartof government. The report is based on an exchange of views between experienced regulators and leadingexpertsonnetworkindustryregulation. Itarguesthatthetransparency created by a fully independent regulator is vital in ensuring that sufficient investment is forthcoming, while maintaining reasonable conditions for user access.Thereportconcludesthat there are opportunities to improve performance significantly in the aviation, rail and road sectors, by learning from successful experiences in improving governance structures in a range of countries.
http://www.oecdbookshop.org/oecd/display.asp?lang=EN&sf1= identifiers&st1=9789282103272

SingleWindowImplementation Framework(SWIF)
The UNECE's SWIF is an adaptation of the TOGAF Architecture Development Method to the specific requirements and features of Single Window projects. Part I of the SWIF provides the conceptualisation of the framework. For longrun success, Single Window implementations need to alignISandbusinessstrategieswithinthenational and international setting and developments. They typically follow a stepwise, phased approach and the SWIF provides a coordination mechanism between the overall project and subprojects. Based on prioritisation and impact, subprojects involveasmallersetofstakeholdersandmayfocus onasubsetofactivitiesoftheSWIFmethod. Part II of the SWIF presents a set of guidelines and techniques related to five areas that are essential for Single Window implementation: stakeholder management and interagency collaboration, business process analysis and simplification, data harmonisation, interoperability, and the realisation of the legal framework.
http://www.unece.org/cefact/SingleWindowImplementationFra mework.pdf

AppliedTransportEconomics
New book by Eddy Van de and Thierry Voorde Vanelslander This book covers topics such as the interface between transport business economics, transport policy and road pricing, welfare economics and costbenefit analysis, as well as the valuation of transport time. It looks at these topics from a management and policy perspective. It offers a collection of scientific contributions by prominent authorsfromthefieldoftransporteconomics,and complements the earlier handbook, 'Transport Economics'publishedbydeboeck.
http://hoger.deboeck.com/titres?id=80905_1

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Transport Newsletter # 50

PaperlesstradeandSingleWindow initiatives,GoodpracticesinAsia
The United Nations Network of Experts for PaperlessTradeinAsiaandthePacific(UNNExT)is showcasing a series of briefs which cover critical issues to be tackled for the successful development of paperless trade and Single Window initiatives. They include good practices and lessons learnt in the region and beyond. The latest and 6th Policy Brief is entitled "Japan's developmentofaSingleWindowCaseofNACCS".
http://www.unescap.org/unnext/pub/brief.asp

application. Environmental issues are the main feature of the HS 2012 amendments (especially Chapter3andtheseparateidentificationofcertain speciesoffishandcrustaceans,molluscsandother aquatic invertebrates). The amendments should enhance the quality and accuracy of data relating totradeinthesecommodities.Inaddition,several new subheadings have been created and others deletedtoreflectcurrenttradepractices.
http://wcoomdpublications.org/harmonizedsystem 2012.html?selected=cat1

UNECERosterofPPPExperts
To tackle the chronic skills deficit within public administrations on PPPs, perceived as the main barrier to implementing PPPs in most countries, theUNECEhasovertheyearsbuiltalongstanding capacity programme and attracted many experts from around the world (through its UNECEs intergovernmentalTeamofSpecialistsonPPPs).In thisvein,itrecentlylaunchedacallforexpertsto joinits"RosterofPPPexperts". This follows a new initiative, the UNECE PPP centre of excellence (CoE), which is aimed at promotingandcoordinatingresearch,training,and knowledgesharing in PPP. The overall objective is to (i) assess PPP capability development in developing countries and assist governments in implementing best practice PPP policy, and (ii) promote and diffuse best practices internationally through the UNECE PPP Toolkit (an integrated system of documents designed to help governmentsdeveloptheirlocalPPPcapabilities).
Ifyouareinterestedinjoiningtheroster,pleasefollowthe surveylink:http://www.surveymonkey.com/s/RGNKXQD

TransportOutlook2011launched
The Transport Outlook 2011, by the OECD's International Transport Forum, reviews recent developments in the transport sector and discusses future scenarios, given a world population of 9 billion predicted by 2050. The latter, together with rising incomes, will cause globalmobilitytoexpandstronglythrough2050.If infrastructure and energy prices allow, there will be around 3 to 4 times as much global passenger mobility (passengerkilometres travelled) in 2050 asin2000,and2.5to3.5asmuchfreightactivity, measuredintonkilometres. This 2011 edition updates the work of earlier ones (2008 through 2010) to focus on five main topics: 1/ the development of global transport demand in the very long run (macroscopic view), 2/themodaldistributionoftransportdemand,3/ the interaction between transport demand, CO2 emissionsandtransporttaxrevenues,4/peakcar travelinadvancedeconomies,and5/international sea and air freight transportflows (pre and post crisistrends).
http://www.internationaltransportforum.org/Pub/pdf/11Outlo ok.pdf

ASYCUDANewsletter,June2011 issue
The latest biannual ASYCUDA newsletter was recently posted online. This first issue of 2011 presents several of the team's countryspecific projects, such as the implementation of ASYCUDAWorld in Djibouti and in Trinidad & Tobago.IthighlightstopicscoveredattheCustoms Directors meeting of the Oceania Customs Organisation (OCO) and the IT Conference and Exhibition, "Cloud Computing: A New Era for CustomsandTrade",bothheldinMay2011. The newsletter also describes the ASYCUDA team's cooperation with the World Customs Organisation and addresses, in particular, the question of ASYCUDA's compatibility with WCO datamodelversion3.
http://www.unctad.org/templates/Page.asp?intItemID=5784&l ang=1

HarmonizedSystemNomenclature 2012nowavailable
The Harmonized System (HS), from the World Customs Organization, is an international nomenclature used by more than 200 Customs administrations as a basis for their Customs tariff and collection of trade statistics. Over 98% of the merchandiseininternationaltradeisconsequently classified in terms of the HS Nomenclature. Both the public and private sectors use the HS as the sole means of identifying and codifying goods, in order to facilitate international trade and ensure proper and harmonised application of Customs rules. The 2012 version of the HS contains 220 amendmentsthatwillincreasetheprecisionofthe Nomenclature texts to ensure their uniform

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PortManagementAssociationof EasternandSouthernAfricae newsletter

The Port Management Association of Eastern and Southern Africa's ePMAESA Newsletter is a monthly newsletter covering maritime news and information on ports of Eastern and Southern Africa.ThisAprilMay2011issueofthenewsletter highlights past and upcoming meetings, the PMAESA 2011 Work Plan, a new antipiracy code, recordperformancesatNgquracontainerterminal, new plants to aid dust control at Saldanha Port, andsoon.
Forfurtherinformation,pleasevisit http://www.pmaesa.org/information/ePMAESA_newsletter/20 11.htmorcontactGeorgeSunguh,CommunicationsOfficer, PMAESA

IMLofferinganExecutiveMasterin GlobalSupplyChainManagement
TheInternationalInstitutefortheManagement of Logistics, a partnership between L'cole Polytechnique Fdrale de Lausanne and L'cole des Ponts ParisTech, organises each year in Lausanne and in Paris an Executive Master in GlobalSupplyChainManagement. This Executive Master provides all participants withtheknowhowandcompetencenecessaryfor planning and implementing logistical projects at the strategic as well as operational levels. The course is conceived for University graduates (Master'sdegreeorequivalenttitles)whowishto gain an additional special education in logistics. Continuingeducationalprogramswhichrespondto the Supply Chain training needs of national and multinationalcompaniesarealsoavailable.
http://iml.epfl.ch

ASYCUDAmentionedintheEAC SourceBookforOneStopBorder Posts

In its efforts to attain seamless border operations, the East African Community (EAC) organised a workshop in May 2011, bringing together around 100 stakeholders from the EAC, other regional organisations, the private sector and development partners. The aim was to introduce the draft of a Source Book with information on preparing regulations and operational guidelines for One Stop Border Posts (OSBPs).TheSourceBookreviewslessonslearntto date on introducing and operating OSBPs across Africa and highlights some of the latest thinking aboutOSBPmanagement. Under the OSBP concept, traffic will stop only onceineachdirection,bordercontrollawsofone countrywillfullyapplyinacommoncontrolzone betweentwostates,exitandentryprocedureswill beundertakeninthecountryofentryfromasingle location, border control officers will conduct joint inspections,andsoon. In this respect, the EAC is upgrading to UNCTAD'sASYCUDAWorld,whichbuildsuponthe successfulexperiencesofASYCUDA++(designedto function in difficult telecommunications environments, but also to operate through GSM networks that are already widespread in developing countries). Being webbased, the ASYCUDAWorld system will allow Customs Administrations and traders to handle most of their transactions (from Customs Declarations to Cargo Manifests and Transit documents) via the Internet.
FormoreinformationpleasecontactOworaRichardOthieno, othieno@eachq.org,CorporateCommunicationsandPublic Affairs,EAC

AsiaPacificTradeFacilitation Forum,45October2011
Under the auspices of the United Nations NetworkofExpertsforPaperlessTradeinAsiaand thePacific(UNNExT),theannualAsiaPacificTrade Facilitation Forum (APTFF) will be held in Seoul between4and5October2011.Thethemeofthe 2011 forum will be Trade Facilitation beyond Borders:InternationalSupplyChainEfficiency. Side events will include a Multimedia ExhibitiononTradeFacilitation,aStudyTourtothe IncheonPortandseveralUNNExTCapacityBuilding Workshops, for example, on data harmonisation andaddressingthelegalaspectsofsinglewindow andpaperlesstrade.
http://www.unescap.org/tid/projects/tfforum11.asp

InternationalConferenceon LogisticsandMultimodal Transport,911October2011

The International Multimodal Transport Association(IMMTA)isorganisingaConferenceon Logistics and Multimodal Transport in Las Palmas, Canary Islands, Spain between 9 and 11 October 2011. The conference will focus on the role of the Logistics Operator within different services (including insurance for the operators and cargo) and the international regulation of liability for multimodal transport, with special focus on the Rotterdam Rules (the new United Nations ConventiononCarriageofGoodsWhollyorPartly bySea2008).
http://www.immta.org/

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