Blockchain Solution for Shipping has Ports, Container Lines, Forwarding Agents and Customs On Board

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However Not All Are So Enthusiastic About Who Handles Their Data

DENMARK – US – WORLDWIDE – Having initially announced their collaboration on a blockchain technology project two year’s ago, partners in the arrangement AP Möller Maersk and IBM, have finally go round to christening it, TradeLens, and since formally launching the ‘joint collaboration’ as they call it, at the beginning of this year, it seems they have been busily signing up interested parties, from port operators to logistics agencies, customs authorities and even rival ocean container freight carriers.

So far ninety four different organisations have put their faith in the project which is being marketed as a neutral platform which, having been trialled up to this point, is intended to become commercially viable by the end of the year. To emphasise this is not a joint venture in the true sense of the term each of the two founding partners will retain the revenue from the operations which they sign up.

Whilst TradeLens is what is becoming the classic model for a blockchain project within the industry, and based on the well proven Linux open source operating system coupled with Linux developed Hyperledger technology, similarly open sourced, doubtless not everybody will be comfortable with the management strategy. Maersk and IBM say the system establishes a single view of a transaction en route whilst maintaining security enabling participants to establish the exact status of a consignment.

The information is as detailed as possible, with sensors checking and relaying geographical, temperature and mass information remotely whilst establishing customs status, document and data specifics etc. The delays inherent in current systems could be seen immediately by all interested parties and Maersk and IBM claim delays reduced on trial shipments amounted to up to 40% time savings, with consequent cost reductions.

Obviously with Maersk and subsidiaries Hamburg Süd and APM Terminals involved the amount of data which has been processed since trials began is huge. Over 150 million shipping activities have been recorded on the platform in the one year period and the partners now say this has grown to approaching one million events every day.The system has received praise from some of its earliest participants which include freight forwarders and logistics specialists Damco, Agility and Ceva. Xavier Urbain, CEO of Ceva Logistics commented recently:

“We see great potential in TradeLens because it provides real-time access to all parties involved in the supply chain. It’s a big step in building a global market standard for blockchain solutions.”

However not everyone who is a possible stakeholder is quite so enthusiastic at handing over all their confidential data to a potential rival, particularly in the light of the cyber attackswe have seen against major players, including Maersk, in the industry of late. Both CMA CGM and Hapag Lloyd have expressed reservations about TradeLens in its current form with Hapag-Lloyd CEO Rolf Habben Jansen commenting:

”Technically the solution could be a good platform, but it will require a governance that makes it an industry platform and not just a platform for Maersk and IBM. And this is the weakness we’re currently seeing in many of these initiatives, as each individual project claims to offer an industry platform that they themselves control. This is self-contradictory, without a joint solution, we’re going to waste a lot of money, and that would benefit no one.”

Source: Handy Shipping Guide.

Barcelona, the gate to Europe and the Mediterranean

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The Port of Barcelona will lead, from 9th until 17th November, a trade mission to Viet Nam. The delegation, integrated of companies importing and exporting, logistics and port will visit two major cities: the capital, Hanoi, and Ho Chi Min, which concentrates the largest commercial activity in the country.

Viet Nam was chosen by the port community of Barcelona for being considered as a strategic market, in addition for being the country that presents the greatest growth of Southeast Asia, and the second of all far East. It is seen by these companies as a stable country that is developing an ambitious reform plan to promote the internationalization of its economy.

Strategic location, productivity, quality and connectivity

Barcelona is presented to Vietnamese companies as the South Gate to access the European market and the platform of distribution for the Mediterranean and North Africa. It is the capital of Catalunya, the most dynamic region of Spain and one of the four industrial engines of Europe. Its economy, which presents a high degree of openness, represents 20% of the whole of the State, while exports exceeded 30% of the Spanish total.

El Port de Barcelona, which currently offers 5 regular maritime lines that connect it with 18 Vietnamese ports, offers a complete range of logistics solutions and reliable transport of importers and exporters highly competitive. It is of one of the ports with the highest productivity in Europe, technologically advanced and with an excellent quality of service. Likewise, has an excellent maritime connectivity, interoceanic lines of high capacity with America and Asia, and daily services of short sea shipping to Italy and North Africa. The Port – located just 160 kilometers from the French border- also has regular rail services to the Iberian Peninsula and Europe and offers customers complete logistic services prepared for serve any kind of merchandise and transport.

This commitment to quality and efficiency has led to position itself as the European port with a higher growth of traffic in the year 2017, with 61 million tons (+ 26%) and 3 million TEU (+ 32.3%). Traffic between the Port of Barcelona and Vietnamese ports also has had an excellent evolution: On year 2017, the container traffic of Catalan infrastructure with origin or destination in Viet Nam outpointed the 27,300 TEU, which is an increase of 19% over the previous year. With regard to the volume of tons, trade amounted last year to 362.412 tons, an increase of 18.5%. This positive trend is being maintained in early 2018 and, between January and June, container traffic between the Port of Barcelona and Viet Nam has increased 34%.

Catalan Viet Nam exports increased in 2017 for the third consecutive year to exceed 121 million euros, 27.3% more than the previous year. Coffee, machinery, textiles, food and furniture are among the main goods exchanged between Barcelona and Viet Nam.

Business mission of the Port of Barcelona: a model of success

Viet Nam welcomes the 20th mission business of the Port of Barcelona, which has been organized with the collaboration of the Generalitat de Catalunya, VOCI, Foment de Treball Nacional, PIMEC, Casa Asia, the Institute of foreign trade of Spain, the Embassy of Viet Nam in Spain and VISABA. In this edition, the Catalan delegation will be chaired by the Minister for territory and sustainability (Minister of infrastructures), Damià Calvet and the President of the Port of Barcelona, Mercè Conesa.

The missions aimed at strengthening business and institutional links between the port and logistics communities of Barcelona and of the receiving countries, generating new business opportunities and contributing to the internationalization of their economies.

In both cities Hanoi and Ho Chi Minh, business meetings will be celebrated. In addition, a technical seminar of customs will be held in Ho Chi Minh, which has been particularly valued by participants in previous missions.

The technical seminar of customs, which will count with the participation of representatives of entities linked to the port-logistics sector and of responsible for the customs services of both countries, will deal with those innovations that can improve the customs management in the Port of Barcelona – the figure of the economic authorized operator, the expansion of the functions customs related, telematization of document processes, etc.- and the specificities of the customs system of Viet Nam.

Subsequently, the participants will benefit from an agenda of bilateral contacts aimed at the development of new business.

Nineteen previous editions, which have visited countries of America, Asia and Africa, have been particularly valued by participants since they have generated significant growth in traffic and they have been the starting point for various Professional and Institutional collaborations that have been consolidated over the following years.

Custom contacts agendas

The Organization of the mission offers Vietnamese companies the possibility of preparing a personalized agenda of contacts, in accordance with their interests and objectives, to facilitate the detection of counterparts and business development. These agendas are being prepared by the ICEX – Office for economic and commercial of the Embassy of Spain in Viet Nam.

Source: Port de Barcelona News

Blockchain use for fuel supply traceability

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Blockchain technology looks set to increase transparency and traceability in the marine fuel supply chain to create better compliance and stronger governance.

A new consortium will demonstrate the application of blockchain as a means of facilitating transparency as part of the maritime-focused Maritime Blockchain Labs (MBL) initiative

“We are delighted to be involved with a consortium that could play an important role in realising the transformative potential of blockchain within shipping, beginning with a timely and relevant first use case in the bunker industry,” said Grant Hunter, head of contracts & clauses at BIMCO, one of the consortium partners.

“Blockchain “Smart Contracts” based on harmonised terms and conditions like the BIMCO Bunker Terms 2018 could be a stepping stone for the industry to achieve greater transparency and efficiency.”

Evaluation

The consortium will bring together Lloyd’s Register, Precious Shipping, Bostomar, BIMCO, International Bunker Industry Association (IBIA), and GoodFuels.

It will evaluate how blockchain technologies could help to provide an efficient, tamper-resistant and auditable chain of custody on quality and quantity recording activities, together with a reputation system of the compliance of fuels prior to purchase, benefitting both buyers and regulatory bodies.

Such characteristics help to provide greater confidence in the fuel being purchased, ultimately resulting in reduced safety risk and creating a more trustworthy framework for accurately monitoring emissions from shipping such as sulphur and carbon.

The project represents the initial stage of the Lloyd’s Register Foundation-funded MBL initiative, the first true industry collaboration for the creation of blockchain technology in the maritime space.

Source: The Motorship

The Propeller Club Barcelona plans activities for 2018 and 2019

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On Thursday, the 5th of June, the Board of Directors of the Propeller Club Barcelona met to review the activities of the past year and to approve meetings and activities for the second half of 2018 and 2019.

Among the topics covered in the meeting were:

  • Review of the current memberships of the Club
  • A summary of scheduled colloquium lunches in 2018 along with a list of invited speakers. In September this will include Miquel Camps (vice president of PIMEC and president of PIMEC Autónomos); in October Maite Osés (from Nafosa, Grupo Osés); and in November, Mercè Conesa, President of the Port of Barcelona)
  • A planning of the monthly lunches for 2019. Dates have been proposed for each of the months in 2019, pending confirmation
  • A summary of events to take place in 2018 and 2019 that directly impact the Propeller Club. These included the annual social and benefit event of the Club, the V award for the Propeller Club, and the 2019 General Assembly meeting
  • Finally the steps necessary to take by the Club in light of the new GDRP law that came into effect in May 2018 were summarised to the members of the board.

The Propeller Club Barcelona is a partner in the Escola’s Forma’t al Port project. For more information access the project website or visit the Club’s website.

Blockchain potential in Transport and Logistics

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Blockchain could become very useful in eliminating intermediaries in the supply chain and in improving collaboration with traffic authorities in the management of incidents and crises.

Blockchain can provide solutions today and in the near future in different areas, though in the case of transport it still has long way to go to become a useful technology.

This has been highlighted during the information day organised by the Center for Transport Studies in the Western Mediterranean, Cetmo, which seeks to deepen new practical applications in transport and logistics.

In the case of ports, this technology can make a big difference if the bill of lading is digitised, which would bring decentralisation, security and immutability and would significantly reduce the costs and risks in port operations.

In terms of electric vehicles, it can play a relevant role in both mobility and energy through smart contracts, which make management of last mile routes possible.

The application of this technology in the energy field is linked to the creation of solar communities that take advantage of the sun’s energy to complement their electricity consumption by creating community micro-networks. Taking advantage of this surplus energy to recharge electric vehicles, a really renewable source of energy for mobility would be created.

Open and decentralised mobility

In the transport sector, there are both small companies trying to gain market share and companies with a monopoly vocation. In this context, blockchain can contribute to the creation of an open, decentralised, multimodal and multi-provider mobility market.

Motorways, as well as roads in general, are undergoing a necessary process of digitisation that will help them address traffic growth, innovation in road technology and smart mobility.

Blockchain could be useful when eliminating intermediaries in the supply chain or for monitoring works, and to improve collaboration with traffic authorities in the management of incidents and crises. Finally, it will open the door to new payment systems that could be more accurate, applying discounts according to the weather or the state of the roads.

In the more immediate present, the processes have begun to have an impact in areas such as freight transport and logistics, thanks to the reduction of procedures, while in passenger transport, they do not cause prominent disruptions.

Source: Cadena de Suministro

Summer School on Port Operations

The first edition of the Summer School on Port Operations brings together professionals and students

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As announced earlier this year, the first week of July saw the conclusion of the first edition of the Summer School on Port Operations. This new course brought to light the activities that take place in the Port of Barcelona, offered a detailed analysis of the operations involved and included a case study on the primary actors and central infrastructures.

The course has a duration of 5 days (25 hours) and follows the Escola’s traditional format complementing theoretical lectures with practical workshops, all of which take place within the port community of Barcelona. The first day of the 2018 Summer School focused on the relationship between the port community and all of the operations that take place, as well as on the services offered to vessels stationed at the port. The subsequent three days were filled with visits to port installations: the participants could visit the pilot control tower, the headquarters of the port police; the MARPOL waste collection facilities of ECOIMSA; and the border inspection point. They could also observe some of the equipment most used in port operations such as the tugboats and the scanners used for container inspection. The theories that sustain the dynamics of the port community and its operations have been presented from the perspective of the maritime transport.

Finally, the security protocols of the port were presented, alongside its Efficiency Network quality label. To conclude the course, the participants explored the fundamental elements needed when designing the port of the future: the environmental aspects of port area management and the energy efficiency strategies applied by the Port Authority of Barcelona.

All of the participants appreciated the unique experienced: “It seemed to me to be very interesting, well thought-out and well-driven by the Escola and its team” said one attendee. “A very complete and didactic course, thanks to the visits we were able to experience first-hand all of the actors that constitute the port” summarised another member of the group at the end of the week.

The teaching staff of the Summer School comprised: Enric Cortada, Director of the Control Tower of Maritime-Port Operations; Bernat Baró, Director of Corporate Security at the Port of Barcelona; José Luis González, Head of Land Operations at the Port of Barcelona; Jordi Vila, Head of Environment at the Port of Barcelona; Carles Rúa, Head of Innovation and Strategy at the Port of Barcelona; Félix González, Head of Management of the Boder Inspection Point; Ramon Rull, Head of Quality at the Port of Barcelona and Eduard Rodés, Director of the Escola Europea.

The Escola Europea is grateful for the support and collaboration received from Tradebe, the Company responsible for the MARPOL waste management, Rebarsa Group, the Pilotage Association, and from the entire port community which is always ready and willing to support the organisation’s training initiatives, no matter how elaborate and ambitious.

For more information you can visit the course page : https://www.escolaeuropea.eu/calendar/summer-school-port-operations/ or write to info@escolaeuropea.eu.

A sustainable maritime industry in a 2°C scenario – has the ship already sailed?

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Shipping has long been a fundamental enabler of trade, although its important role may go unnoticed. Think about where the clothes you are wearing were made and how they arrived here. What about your phone? How did its components all come together to reach your hand right now? It’s very likely that shipping played a role in both examples. How is this all made possible?

Containerisation, a system of multimodal transport storage, means that ships remain the cheapest and most efficient transport method. Today, they can carry tens of thousands of containers around the globe with only a small crew.

The industry has been growing at a remarkable rate. Already producing 2.5% of global carbon emissions, this industry is expected to grow by between 50% and 250% by 2050. Shipping fuel is often much more dense and polluting than that allowed on land, presenting an environmental challenge that needs to be met by more sustainable measures in the shipping industry.

WHERE ARE WE NOW?

The acclaimed Paris climate agreement in 2015 achieved great success in establishing binding carbon targets by sector. However, due to extensive lobbying of the International Marine Organisation (IMO), shipping was the only sector excluded from legally binding emissions reductions. This has impacted the drive towards developing more sustainable fuels and shipping systems, despite the IMO committing to some form of carbon reductions.

As a result, international shipping legislation around environmental impacts has been slow. But there has been some progress. A recent development was the introduction of a lower sulphur content cap for shipping fuels from 3.5% to 0.5% from 2020, with an aim to improve air quality near ports and shipping routes.

Environmental legislation is increasingly coming from regional and local levels, although its impacts are felt at a global scale. A notable example is the EU, which has declared that any ship over 5,000 tonnes must monitor, report and verify their annual carbon emissions from 1 January 2018. This drive for sustainability has come from individual ports as well. For instance, the Port of London Authority has introduced a 5% discounted green tariff for more environmentally friendly ships.

WHERE ARE WE GOING?

These examples look set to become trends, with increasing responsibility being taken by port authorities. The World Ports Sustainability Programme (WPSP) was launched in March this year, aimed at creating holistic sustainability plans for ports to shape the shipping sector thorough a series of tariffs, investment, efficiency improvements, and bans.

There has been much innovation regarding clean-energy shipping, including the soon-approaching world-first electric, driver-less barge; hydrogen-powered shipping; and a solar-powered bulk-carrier ship. However, these technologies are unlikely to contribute significantly to carbon reductions in the shipping sector any time soon. The near future of sustainable shipping therefore looks increasingly based around new fuel blends, efficiency measures, and taxes. Unlike road fuels, marine fuels are currently not taxed, and a CO2 tax is gaining momentum worldwide. This method helps to drive the cheapest emissions reductions, through optimisation of shipping speeds, fuel shifts and efficiency improvements.

The sector is facing some big changes, although the mechanisms remain unclear. If sustainable shipping is to make a tangible contribution to global climate targets, both international legislative pressure and bottom-up regional and port-led initiatives will need to be ambitious, economically viable, and aligned.

Action or inaction in the industry will also have significant consequences for the outcomes of the Sustainable Development Goals (SGDs), most notably SDG 13 on climate action and SDG 14 relating to life below water. The maritime industry will need to play an integral role in development that conserves our oceans and marine resources, an essential requirement for a sustainable future.

Source: Hellenic Shipping News

Port Reception Facilities: ESPO welcomes draft report but calls for stricter application of the “Polluter Pays” principle

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The European Sea ports Organisation (ESPO) welcomes the proposals put forward by the European Parliament Rapporteur Ms Gesine Meissner in the draft report of the Transport Committee on the review of the Waste Reception Facilities Directive (Com (2018) 33).  The Draft Report will be discussed in the Transport Committee meeting of 10 July.

The proposals of the Parliament’s rapporteur are aiming to better protect the marine environment and decrease the administrative burden for stakeholders. ESPO welcomes in particular proposals such as the definition of catering waste which would increase the quantities of recycled plastics and contribute to the targets of the European Plastics Strategy.

European ports believe however that the ‘polluter pays’ principle, which has been the cornerstone of the EU’s environmental policy, needs to be strengthened. Introducing a fee system whereby ships would deliver unreasonable quantities of garbage, including dangerous waste for a fixed fee would be a severe divergence from the ‘polluter pays’ principle. It risks to discourage reducing waste at the source.

“The report of Ms Meissner is clearly a step forward. Overall, the report pursues the objectives of the circular economy and aims to reduce administrative burden for authorities and stakeholders. We strongly believe however that the ‘polluter pays’ principle needs to be better reflected in the new Directive. We cannot accept a regime whereby ships are not incentivised to limit waste at the source and ports have to carry the costs of delivering unreasonable amounts. Additionally, we oppose an automatic rebate for “green” ships. Any green rebate, if not corresponding to a real cost reduction, will have to be borne by the port authority. Not all port managing bodies have the financial ability to cover this cost and to give such rebates. We plead for an efficient, but responsible management of ship waste. We count on the rapporteur and Transport Committee members to further optimise the Directive in that sense” says ESPO’s Secretary General, Isabelle Ryckbost.

Any mandatory green rebates for waste, as proposed by the Commission proposal, would prevent ports from addressing local environmental challenges. In some areas, waste pollution is a great environmental concern while in others it is air quality and emissions. Furthermore, mandatory rebates disregard the existence of different business and governance models in ports across Europe.

The Commission has been preparing an EU submission to the IMO proposing a 100% indirect fee without quantity thresholds at international level (here).  “I regret that a submission is being introduced to the Council when Parliament has not expressed any views, and negotiations with the Council have not even started. This initiative seems to bypass the ongoing democratic process and lacks legitimacy” adds ESPO’s Secretary General, Isabelle Ryckbost.

Source: ESPO Press Release

The Escola Europea trains professionals in intermodal railway logistics

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After the stellar successes obtained during the past editions of the SURCO series, the Escola has completed this summer’s SURCO Operations I course for Spanish professionals, which offered introductory training on intermodal railway logistics.

The course took place between the 2nd and the 4th of July 2018 in Barcelona. Designed for professionals of freight transport companies in the maritime and railway sectors and students of logistics and transport, it introduced an analysis of the different elements needed in order to offer efficient services in intermodal railway-maritime transport.

SURCO (Simple Use of Railway COnnections) courses aim to promote the use of railway transport by providing training and necessary information to those professionals who will decide on and manage logistics chains in the future in which the railway could be used as a viable alternative in terms of services, costs and time. They also work towards the promotion of co-modality as a viable and sustainable alternative to transport that relies primarily on the road.

During the 3 days the course participants had the opportunity to discover infrastructures and equipment involved in port-railway transport and learned about the regulations and documents necessary to manage rail freight transport services in intermodal interactions. The theoretical lectures covered maritime-rail transport and logistics, rail services required for freight transport, and rail terminals in ports. The July edition also offered a detailed analysis of the current situation in Spanish ports in terms of infrastructures, railway network characteristics, and the service zones, among other things. The theory was accompanied by practical visits to the Port of Barcelona (including trips to Hutchison BEST semi-automatic container terminal, AUTOTERMINAL car terminal and the solid bulk terminal Tramer, operated by ICL; a visit to a marshalling yard and to Logistainer, a logistic operator at CAN TUNIS complex; and a visit to ADIF’s integrated management centre.

SURCO Operations was carried out in collaboration with the Port of Barcelona, Adif, Autoterminal, FGC Ferrocarrils, ICL, Hutchison’s BEST Terminal, Transportes Portuarios and Transportes Tomás.

The educational focus of the Escola is based on research: students attend lectures and practical workshops that encourage collaborative work and group cohesion as a means to optimize the development of logistics chains.

For more information check out the SURCO section of our website.

Butransa Spain collaborates in Forma’t al Port with the Escola

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On the 3rd of July, the director of the Escola Eduard Rodés met with Francisco Cuartero, the CEO of Butransa Spain to cement their collaboration in the Forma’t al Port program. The program, sponsored by the Port of Barcelona, Barcelona-Catalunya Logistics Center, the Provincial Council of Barcelona (Diputació de Barcelona) and the Escola Europea, has completed the first semester of its second triennium (2018-2020).

The program, through which the port community approaches students of Transport and Logistics, and International Trade, ended the year 2017 with a record high participation rate. 419 students had had contact with the Port of Barcelona and the business in its community, compared to 2016’s 114 students.

The courses organised under the umbrella of Forma’t al Port encourage the incorporation of students into dual training schemes within the businesses of the sector, with the overall goal of helping to prepare a future logistics community that is able to meet the strategic challenges of the Catalan region.

Forma’t al Port has taken a break for the summer and will return in the autumn with fresh courses for local high school students. There are two Management courses scheduled in October and November respectively, set to take place both in Barcelona and Genova.

Thanks to its brilliant results, the program continues with the goal of helping position Barcelona and Catalonia in the first line of logistics activities in Europe and the world.

For more information go to the webpage of the project: www.escolaeuropea.eu/format or contact us at: formatalport@escolaeuropea.eu