China-Australia Free Trade Agreement. Cheap Microwaves?

The China-Australia Free Trade agreement was signed on 17th of June this year after negotiations were wrapped up in November last year.

What is China-Australia Free Trade Agreement?

The China-Australia Free Trade Agreement, also known as ChAFTA will initiate a number of steps in order to further increase the already growing trade between the two countries. China and Australia are already very important trade partners with a major portion of Australia’s exports imported by China and vice-versa. In the year 2013-2014, $107.5 billion worth of Australian exports were imported by China while around $52.1 billion worth of Chinese exports were imported by Australia. Australian investment in China was close to $29.6 billion where as Chinese investment in Australia was close to $31.9 billion. ChAFTA would ensure that the exports as well as investment rises between the two countries to further strengthen the economies of both countries.

Outcomes at a Glance

China is one of Australia’s biggest trade partners with around 33% of Australia’s exports bought by China. China remains the biggest exporter of Australian exports in the fields of agriculture, services and resources. ChAFTA aims at cutting the tariffs on major export items to give more space to the Australian manufacturers, investors and businesses.

On agricultural products exported by Australia

– The tariffs would be completely removed on sorghum and barley

– The tariffs would be quickly reduced on seafood, pork and sheep meat

– The tariffs on dairy products would be cut by 20% in the next four to eleven years

– The tariffs on beef would be cut by 12 to 25% in the next nine years

– The tariffs on wine would be cut by 14 to 20% in the next four years.

On resources and energy products exported by Australia, 92.9% of the total exports to China would become duty free when the agreement would come into force while 99% of the total exports to China would become duty free when the agreement would be completely implemented. This means that

– The tariffs on gold, LNG and crude petroleum would lock zero tariffs

– The tariffs on coking coal would be removed completely

– The tariffs on thermal coal would be removed completely within the next two years

– The tariffs on unwrought zinc, aluminum and nickel would be cut by 10% as soon as the agreement comes into force

– The tariffs on pharmaceutical products like vitamins would be cut by 10% either by the time the agreement comes into force or within the next four years

– The tariffs on car engines and parts, opals and plastic products would be removed completely in the next four years.

On services exported by Australia

– China would provide access to Australian legal firms to form commercial partnerships with Chinese firms in SFTZ (Shanghai Free Transfer Zone).

– China would also offer access to Australian telecom companies looking to invest in telecommunication services in SFTZ.

– China would also list the names of 77 Australian educational institutions on its own Education Ministry website within one year.

– China would also allow Australian tourism and healthcare companies to operate their own offices in China.

– China would provide improved access to Australian service providers in the fields of engineering, banking, insurance, securities and funds management.

For investment in Australia, ChAFTA would increase the screening threshold for Chinese investment in sectors which are considered non-sensitive to $1,094 million AUD from $252 million AUD. Any investment below this threshold by enterprises not owned by the state of China won’t be screened by the Foreign Investment Review Board (FIRB).

Skilled workers from both countries will be able to travel without much hindrances while staying within the confines of each country’s existing immigration system.

Marine Transportation Service and Engineering and Construction Industry

Almost 13% of all Australian services exports were exported to China (this amounts of $7.5 billion) in the year 2013-14. ChAFTA would improve this statistic even further by ensuring that China would guarantee better access and give more space to Australia’s service industries to prosper in China.

When it comes to marine transportation service, ChAFTA binds China to provide the Australian maritime transport service providers the chance to establish completely Australian owned and managed enterprises in the SFTZ.

When it comes to engineering and construction services, ChAFTA binds China to grant approval to Australian construction and engineering companies to undertake joint projects with Chinese companies in Shanghai. There will be no restrictions on Australian construction and engineering companies in this regard with the companies allowed to start and complete a wide variety of projects with commercial appeal.

Seafastening Design and Knowing the Vessel Motions to Consider

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For those doing seafastening design for the first time, it is worth knowing the type of loads the secured cargo will be subjected to.

There are various guidelines and standards which depend on the mode and type of transport, however most codes share the same tips when it comes to ensuring that the cargo is transported safely.

1. Heave
Heave is simply the vertical motion of the vessel moving up and down. Translation in this direction causes the cargo to weigh more when the vessel heaves up, and weigh less, when the vessel heaves down.

2. Surge
Surge is the linear longitudinal (front/back) motion. This causes the cargo to want to move laterally to the front of the vessel and and the rear of the vessel.

3. Sway
Sway, much like Heave is the linear lateral (side-to-side) motion. This ignores any rotations of the vessel which we will cover later. This causes the cargo to want to move laterally across the deck in a port / starboard direction.

4. Roll
The roll of a vessel is the rotation about an imaginary axis running horizontally along the ships length.

5. Pitch
The pitch of a vessel is the rotation about the axis running across the width. Pitch motion can be thought of as an up-or-down movement of the bow of the ship.

6. Yaw
Yaw rotation of the vessel on its vertical axis. This is the axis running vertically through the ship and through its centre of gravity. Another way of thinking about yaw motion is side-to side movement of the bow of the ship.

 

Heave Vessel motion

Heave vessel motion

Surge Vessel Motion

Surge Vessel Motion

Sway Vessel Motion

Sway Vessel Motion

Yaw Vessel Motion

Yaw Vessel Motion

Roll Vessel Motion

Roll Vessel Motion

Pitch Vessel Motion

Pitch Vessel Motion

The 3 most important seafastening tips

Here are some of the most important things that you should think about before before performing any sea-fastening design.

1. Check for vessel appurtenances not shown on drawings.

One of the most important checks we should do before starting anything else is ensuring the cargo does not clash with appurtenances. A clash may be with vents, deck protrusions, or other miscellaneous steelwork on the deck. If it is found that the cargo must be relocated due to a clash, it can cause a number of costly issues.

Often the engineering calculations must be redone, and re-approved by marine warranty surveyors. The rushed manner in which this design rework is performed brings into question the quality and safety of the new design. There is also the issue of time. A vessels departure time may be seriously affected by having to relocate cargo to a new location due to a clash.

In order to avoid such issues it is important to seek out as many photos of the vessel and the location on deck. You cannot rely purely on the vessel drawings for showing all the potential clashes. Often vessel drawings will exclude various items. Check your photos and then, check them again.

2. Check the under-deck welds.

Under-deck welds are often overlooked in seafastening design. These are the welds from the deck plate to the under-deck beams. An “out-of-sight, out of mind” mentality can be dangerous regarding under-deck welds.

If the vessel is old, the under-deck welds can often be corroded, or display hairline cracks. Whenever welds are in poor condition they will not possess the full structural capacity which would normally be expected.

In particular, welds that are in tension tend to have less than the expected structural capacity which could lead to a catastrophic failure.

3. No Weld Zones.

“No Weld Zones” are defined as those locations on a vessel deck where welding should not be performed. This is often due to the presence of fuel and oil tanks or other combustible materials. Each vessel will generally have its own “No Weld Zone” drawing showing these locations.

It is extremely important that the person performing the seafastening design has access to this drawing in order to avoid welding in any dangerous locations.

These are some of the most important factors to consider when embarking on seafastening design.

Construction Accident Involving Faulty Winch Leaves Worker with Serious Injuries

This incident was reported by a worker that was aboard the ship at the time of the failure. On the day of the accident, the boat was on-shore unreeling pipe from an on-board reel. A winch was used to help with the removal of the pipe from the reel during the final phase. The winch was under tension just before the event occurred. It was at this time that the worker mentioned to their supervisor that they believed that the base plate under the winch was flexing. When the winch finally came to a complete stop the welds that held the winch to the deck suddenly came apart. This resulted in the winch breaking from its sea-fastenings and hurtling along the deck in such a way that the winch and base plate crushed his left leg.

There was an investigation by the members of the IMCA (International Marine Contractors Association). Their investigation discovered a few major pieces of information as follows:

•    About two months prior to the sea-fastening welds breaking, the base plate and attachments began to buckle underneath a load. The attempted fix was to add more weld to the base to hold it where it was.

•    There was initially a 32Te constant tension winch which was malfunctioning on multiple occasions. It was replaced with a 10Te winch.

•    The new 10Te winch that was installed was not constant tension, but also was not even fitted with a tension measurement.

•    If the Management of Change process was completed, it did not correctly identify that the new winch was inadequately fastened to the deck.

•    When the initial event occurred two months prior to the incident in question, it was not investigated and fixed in an acceptable way. This could have significantly contributed to the break on this particular day.

Here are some of the investigation teams ideas’ on how this situation could have been avoided.

•    One of the main priorities should have been to identify all problems with the Management of Change requirements, and fix these problems immediately.

•    When the winch was changed, a structural engineer should have been asked to check the position and sea-fastenings to ensure the load on the winch wire could be adequately transferred to the vessel deck structure.

•   In situations where welds are in tension, often the case for winches, all welds including under deck welds should be non-destructively tested (NDT).

The result is a very serious lost time injury which is going to require time, money, and medical attention to rectify. Had the event occurred just a split second earlier this accident could have easily resulted in death? Additionally, if the vessel was offshore at the time, it may have been impossible to get the required medical attention in a timely manner. An injury like this can remain with the worker for the rest of their life. A safety incident like this will remain with the company for a very long time.

This is just part of the investigation that was done by the IMCA the entire report can be read in the IMCA Safety Flash 12/14 Newsletter.
The incident detailed above could have been avoided by having Seafasten Offshore review the challenges at hand.  Seafasten Offshore is the world leader in engineering design of vessel seafastening solutions and sea transport. If you are unsure about the condition, or adequacy in which cargo or equipment has been secured to a vessel’s deck it is best to ask an expert. Contact Us @ seafasten.com