Boomerang

Australian shipping makes a comeback

First of three new Australian licensed and crewed vessels comes onto the Australian coastal trade

It was a proud moment as the aptly named Boomerang I sailed into Sydney Harbour on her maiden voyage heralding a comeback for the Australian coastal fleet. Pan Shipping Australia had defied the odds and decided to take on the cut-rate Flag of Convenience shipping companies which have been taking over Australia's domestic cargo trade under the permit system.

Not only had the Australian company got Canberra on side, successfully lobbying to get the Navigation Act changed back to restrict foreign vessels picking up domestic cargo on continuous voyage permits, Pan has committed to an all Australian crew under a collective agreement rather than taking advantage of the new IR regime and employing non-union labour on individual contracts or bringing in guest workers.

PAN managing director and chief executive Paull Van Oost and his team trumpet the company's use of unionised crew. An image of a ship on its website sports the the MUA logo and initials (see www.panlogistics.com.au).

Boomerang got a warm welcome in Darling Harbour. As the ship glided in under the bridge, workers, union officials and management mingled, MUA flags waving, to greet the arrival of the first new Australian licensed ship into the harbour in more than a decade.

"This is a turning point in Australian shipping," said MUA National Secretary Paddy Crumlin. "The Australian blue water fleet has seen only decline in the past decade with widespread abuse of the permit system allowing cheap substandard FoC shipping onto the coastal trade undermining the security of investment for Australian shipowners."

Pan has bareboat chartered the 1700 TEU Boomerang I for three years with a full Australian crew. Two more ships, Boomerang II and III were scheduled to join the fledgling fleet on the coast in May, providing jobs for around 50 Australian seafarers. MUA members on the three vessels are all employed under the ASP MUA Dry Cargo Enterprise Agreement. PAN, with the help of the Australian Shipowners Association and the MUA, is exploring the placing of four trainee seafarers on each of the Boomerang ships.

A two-vessel operation will run 21-day voyage Sydney-Melbourne-Fremantle-Brisbane with Adelaide included in May. And when the third vessel is in place, Brisbane will be added to the voyage.

Tasmanian ports are also on the agenda. With Toll Holding's takeover of Patrick requiring the divestment of the two Bass Strait ro-ros Searoad Tamar and Searoad Mersey, PAN is also in the running for these vessels.

Up the Gangway

It was a poignant moment when the Filipino crew came down the gangway of Boomerang I and the Australian crew went on board. Usually it's the other way around.

"I lost my virginity on these wharves," said veteran IR Louis Jacomos. "That was back in 1958. Those days the wharves were made of wood and we'd walk the Hungry Mile protesting the Menzies Government. This government is no different. They treat us with contempt. But this ship shows there is still a grudging respect for the MUA -- someone prepared to show a bit of patriotism instead of the usual multinational parasites. This ship is an exciting starting point. We can build on this and show how well we can do the job."

Chief Cook Mick James has sailed 47 ships in his 26 years at sea.

"This is good for Australia and Australian workers," he said.

"Congratulations to the MUA," said IR Sam Kelly. "It's great to see a new ship coming into the Australia fleet, despite a hostile, anti-union government."

Waterside workers too were committed to the new ship - so committed they were prepared to take a stand when a foreign vessel poached the Boomerang's cargo at East Swanson Dock.

Wharfies' Stand

While the ship was in transit from Sydney, the foreign flagged Kota Ekspres beat her to the container stack, almost sparking an industrial dispute.

Melbourne wharfies were standing guard over their seafaring comrades' jobs. They threatened to down tools rather than let the foreign ship make off with the Boomerang's cargo.

At the commencement of midnight shift at 11pm on Saturday, March 18, the wharfies voiced their unwillingness to load the boxes earmarked for Fremantle onto a foreign vessel apparently in breach of Australian maritime law.

The Kota had a continuous voyage permit allowing it to trade on the Australian coast if an Australian-crewed ship was unavailable. But the Boomerang was due in the next night, well within the three days required to ensure the cargo was hers.

MUA Victorian Secretary Kevin Bracken informed Patrick of the union's concerns. But Patrick demanded the labour load all cargoes received that had been cleared by customs.

"Management threatened that any employee who would not load freight, would be sent home off-pay and be in breach of the Trade Practices Act," he said.

Before loading the Kota Ekspres under protest, MUA members passed the following resolutions:

"In regards to loading domestic containers on the Kota Ekspres, we believe we are being asked to work in contravention of Australian Government transport regulations. We protest at being placed in this position. We request that Patrick contact the Department of Transport and Regional Services to ascertain that all clients of Patrick abide by regulations in place, in regards to the coastal cargoes."

To the Master of the Kota Ekspres: "We will not work this ship if it continues to ignore Department of Transport and Regional Service regulations in regards to coastal shipping."

Waterfront workers then loaded the 13 containers onto the foreign ship under protest.

Their stance was soon vindicated by the Department of Transport and Regional Services (DOTARS) the next day and the ship's agent ordered Patrick not to load any more coastal cargo. But the DOTARS order to remove cargo already on board the vessel before sailing was ignored.

That week as the Boomerang sailed light to Fremantle, the MUA announced to the world it would campaign against multinational ship operators highjacking Australian cargo.

"We will be working with the department and the owners of Boomerang to closely monitor loading at our ports," said Paddy Crumlin. "PAN shipping's performance and growth will depend on them being able to pick up cargoes being carried by unlicensed vessels under single-voyage and continuous-voyage permits."

The National Secretary said the union was assisting PAN in their dealings with the department to facilitate Australian shipping and crewing in the trade.

"Australia is an island nation totally dependent on maritime transport," said Kevin Bracken. "Yet we have no presence in the international container trade and very little in our own domestic container trade. The Maritime Union of Australia is willing to work with companies prepared to invest in the industry and will fully support Australia's presence in this vital trade."

"Two years ago, Australia outlaid 14 billion dollars to international shippers," he said. "Our country has had three successive record trade deficits; if that money was reinvested into Australian ships, significant progress would be made in correcting the imbalance."

Under Question

While the department is considering what action it can take against the Kota Ekspres, Boomerangis continuing to expand its trade regardless, with rail freight contracts coming through.

Even so Kerry O'Brien, ALP member of the Senate's Rural and Regional Affairs and Transport Committee has undertaken to push the permit issue at the Senate estimates sittings in May. He will the government among other matters, on

• what action the department has taken, or proposes to take, against the agent, shipping line and/or permit holder in relation to the loading of containers on the Kota Ekspres, and the failure of those responsible to unload already loaded containers in defiance of a request by a departmental officer to unload those illegally loaded containers.

• why the new restrictions do not include vessels on single voyage permits.

Also under question is the foreign flagged Don Giovanni which is reported to have been carrying coastal cargo without a valid permit.

"We already have written undertakings of support and assurances from both the Department [of Transport] and the Minister [Warren Truss], and we are working within both the Navigational Act 1912 and the Ministerial Guidelines associated with that Act," Van Oost told Lloyd's List. "No Single or Continuous Voyage Permits will be issued by the Department for containerised cargo movements between the ports of Sydney, Melbourne and Fremantle."

With caveats, that point is supported by a spokeswoman for the minister, who says: "The introduction of PAN Australia Shipping's two licensed vessels is likely to have the practical effect of eliminating the need to issue most permits for the general cargo trade covering Sydney-Melbourne-Fremantle.

"That said, there may be occasions where shippers can demonstrate that the service provided by PAN is unsuitable to meet their needs."

Meanwhile PAN Shipping has informed the union that the second vessel contract has failed and a time charter vessel with a foreign crew will fill the gap until a vessel can be bareboat chartered with this trade for Australian crew. And ANL has also applied for foreign crewed container vessels to be licenced to carry coastal cargo.