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US frets as China pushes to head IMO 

, Zhang Xiaojie, China's candidate for IMO Sec.Gen
The eyewitness reporter with agency report
The United States of America (USA) is getting uneasy over the latest move by China to head the International Maritime Organization (IMO) as its Secretary General.
China has thrown its hat into the ring in the race for the exalted position as its candidate, Zhang Xiaojie, is set to take over from Kitack Lim of South Korea, who will relinquish the position in December 2023.
The anxiety of the USA over the ambition of China to lead the IMO is hinged on the possibility of China using the position to hurt the shipping interests of the USA in the global market, especially in the area of exports, fishing, and navies.
It could be recalled that there is no love lost between the two countries in terms of trade as the USA is weary of the dominance of China in the world economy.
This rivalry came to the fore during the administration of Donald Trump when his government tried to cut down the influence of China on the American domestic market.
Maritime experts and commentators have warned the USA of the economic consequences of China’s emergence as the IMO scribe.
Both countries are category A members of the IMO which have the largest interests in providing international shipping services.
However, Brett Schaefer, a Jay Kingham Senior Research Fellow at Margaret Thatcher Center and his counterpart, Steven Groves, a Margaret Thatcher Fellow, both asked the US president, Joe Biden, to stop the ambition of China to head the IMO.
In their report, the two scholars claimed China will use the position to protect and further consolidate its interests in the global shipping trade to the detriment of the USA.
According to them, China is seeking greater influence inside U.N. agencies as it entered the race to head one with authority over global shipping rules.They said though the IMO operates in relative obscurity, its actions have a substantial if indirect, impact on standards of living worldwide.

“There is no question where Zhang Xiaojie the Chinese Candidate for the IMO secretary General position,  will fall on any issue of import to Beijing.

“This should be highly troubling to the U.S. and like-minded governments.

“We have seen what the Chinese Communist Party (CCP) is capable of when awarded such a leadership position.

“One need only look at how it handled the International Civil Aviation Organization (ICAO), which adopts codes, conventions, and guidelines governing procedures and practices for air traffic.

“As ICAO Secretary-General from 2015 to 2021, Chinese national Fang Liu undermined the mission and integrity of the organization.

“Specifically, she used her influence to block Taiwanese participation, undermine accountability, and conceal a Chinese cyber-attack on the ICAO that spread malware to member governments and private industry.

“This is only one example. Whenever Chinese nationals have led U.N. specialized agencies—whether at the International Telecommunication Union, the U.N. Industrial Development Organization, or the Food and Agriculture Organization—they have used their influence to benefit China in defiance of their responsibility to be neutral international civil servants.

“Now the CCP wants to do the same at the IMO, which sets standards for the safety, security, and environmental performance of international shipping.

“The agency also has a role in maritime-related legal matters such as compensation, liability, and facilitation of sea traffic.

“As was made clear at ICAO, China seeks leadership positions in U.N. organizations not from altruistic fidelity to their missions or to bolster their effectiveness, but to advance CCP policies and priorities. Over and over, when a Chinese national assumes a position of authority in the United Nations system, Beijing demands that they support and advance Chinese interests.

“So now that China has put forth a candidate to lead the IMO, we must ask why China wants this position and how it serves Beijing’s interests.

“Though the IMO operates in relative obscurity, its actions have a substantial, if indirect, impact on standards of living worldwide. More than 80 percent of global trade in goods is delivered by sea, meaning that every person benefits from safe, secure, and timely shipping.

“Beyond the consumer, the IMO also impacts national interests.

“The IMO has focused increasingly on combating air pollution and decarbonization related to shipping, including a “rapid shift from today’s predominant use of fossil fuels to zero-carbon alternatives,” and combatting illegal and unregulated fishing.

“The IMO also sets rules and standards that affect military maritime movement through key international waterways such as the Straits of Malacca and through strategic archipelagic sea lanes in Indonesia and the Philippines.

“China has a strong interest in these issues. When combined, China and Hong Kong rank first among the world’s nations in terms of ownership by commercial value and third in terms of shipping registries, so rules and regulations that require refitting or updates to vessels disproportionately impact China.

“Illegal and exploitative legal fishing by Chinese vessels, often held by state-owned enterprises, is extensive and conducted at an unprecedented scale. Historically, China has strongly objected when U.S. warships sail through the Taiwan Strait to enforce freedom of navigation principles.

“Beijing has an interest in shaping how the IMO will address these matters.

“China also has significant commercial and military interests in the South China Sea, over which it has claimed “indisputable sovereignty.”

“The Chinese navy regularly harasses foreign military ships in the South China Sea and has systematically built military bases through an unprecedented program of dredging and artificial island-building.

“The IMO plays a critical role in setting the rules of the road through the South China Sea” the two scholars submitted.

However, in July, the 40 member states of the IMO Council will meet to elect the next Secretary-General.

 The selection is then submitted for approval to all 175 member states later in 2023 and the new Secretary-General assumes office in 2024.

However, the maritime commentators believed that Zhang Xiaojie, tge Chinese Candidate, should be the greatest concern and worry for the US.

Zhang Xiaojie had served as head of China’s delegation to the IMO Council since 2015 and also served as Chair of the Council for 2018-2019.
This put him in a vantage position and made him well-known to the people that would elect the next Secretary-General.
Notably, he has served in numerous posts in the Chinese government, including Director of International Organizations and Multilateral Affairs in the Ministry of Transport.
“In short, he has worked in the Chinese government in various posts for over 30 years.

“Having been charged with advancing China’s interests in the IMO, he knows China’s agenda in the organization intimately.

The Margaret Thatcher Center scholars both claimed that Zhang Xiaojie will not have a free hand if elected as Secretary-General as he will be teleguided by his home government to advance Chinese interests through hiring and managerial decisions, just as Fang Liu did at the ICAO.

“Considering that the CCP expects Chinese nationals to advance its agenda even when serving as senior international civil servants—under threat of arrest and punishment—there is no question where Zhang Xiaojie will fall on any issue of import to Beijing.”This should be highly troubling to the U.S. and like-minded governments.

“China is already pressing countries to support Zhang Xiaojie diplomatically and, if past practice is any indication, offering economic incentives for support. Countering this push and ensuring that an alternative candidate becomes Secretary-General of the IMO will require the U.S. to apply its own pressure and work closely with allies” the maritime experts noted

The IMO Council is the executive organ of IMO and is responsible, under the Assembly, for supervising the work of the Organization.
 Between sessions of the Assembly, the Council performs all the functions of the Assembly, except that of making recommendations to Governments on maritime safety and pollution prevention.
The Assembly, which normally meets once every two years in regular session, is responsible, among other things, for electing the Organization’s 40-Member Council.The following countries were elected by the Assembly, at its thirty-second session, to be Members of the IMO Council for the 2022-2023 biennium:

Category (a)    10 States with the largest interest in providing international shipping services:

China, Greece, Italy, Japan, Norway, Panama, the Republic of Korea, the Russian Federation, the United Kingdom of Great Britain and Northern Ireland, and the United States of America.

Category (b)    10 States with the largest interest in international seaborne trade:

Australia, Brazil, Canada, France, Germany, India, the Netherlands, Spain, Sweden and the United Arab Emirates.

Category (c)    20 States not elected under (a) or (b) above, which have special interests in maritime transport or navigation and whose election to the Council will ensure the representation of all major geographic areas of the world:

The Bahamas, Belgium, Chile, Cyprus, Denmark, Egypt, Indonesia, Jamaica, Kenya, Malaysia, Malta, Mexico, Morocco, the Philippines, Qatar, Saudi Arabia, Singapore, Thailand, Türkiye and Vanuatu.

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Customs

Customs launches manhunt for killers of officer in Katsina attacks

Wale Adeniyi, CGC
—– warns those harbouring criminals to hand them over for justice 
The Eyewitness Reporter 
Apparently angered by the brutal murder of its officer, Customs Assistant II Auwal Haruna at the Gamji Makaho checkpoint in the Dankama area of Katsina State on April 17, 2024, the Nigeria Customs Service (NCS) has launched a manhunt for the perpetrators of the heinous act to bring them to justice.
In a statement signed by Abdullahi Maiwada, the National Public Relations Officer of the service, the Comptroller General of Customs, Wale Adeniyi has condemned, for the umpteenth time, violent acts against the officers and men of the service.
The statement further stated that  Adeniyi extended heartfelt condolences to the family and colleagues of CA II Auwal Haruna.
 He emphasised that the Nigeria Customs, in close collaboration with other security agencies, is tirelessly working to apprehend the perpetrators of this reprehensible act and ensure they face the full consequences of the law.
“The CGC asserts that violence against our officers is utterly unacceptable, and we will pursue every avenue to bring those responsible to justice.
” The safety of our personnel and the security of our borders remain paramount.
“We are committed to working with traditional rulers, government bodies, and sister agencies to combat this heinous crime against our personnel.”
The statement further said that the Service, under the leadership of CGC Adeniyi,is unwavering in its commitment to combating smuggling and other cross-border crimes.
” The Service will not falter in its mission to uphold the law and protect the interests of the Nigerian people.
“Intelligence available to us indicates that certain unpatriotic community members are harbouring suspected accomplices involved in this heinous crime.
“We implore these individuals to embrace patriotism by aligning with the law and refraining from condoning illegality.
“It is in the best interest of our communities and nation to collaborate with law enforcement agencies to root out criminal elements and ensure justice prevails.
The Customs therefore urged the public to join hands in the fight against these brazen criminals.
” We implore the public to remain vigilant and report suspicious activities of these daredevil smugglers to the nearest customs formation.
“Together, we can create a safer environment for our officers and a more secure nation for all” the CGC Adeniyi declared.
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Headlines

New wave of car imports set to hit terminals as new vehicle- carriers come on line

—– as shipping capacity set to increase by 42% in three years

An expected jump in the number of car-carrying ships is set to flood ports with vehicles, making congestion at terminals even worse, the head of the industry’s biggest shipping line has said.

Lasse Kristoffersen, chief executive of Wallenius Wilhelmsen, made the comments in an interview after the Financial Times reported that many European car import terminals had turned into congested “car parks” following a big surge in vehicle exports from China.

The situation would have been even more difficult if there had been enough capacity to ship all the vehicles that manufacturers wanted to, he said. “We’re not able to lift all the volumes that our customers want.”

Car shipping capacity has been flat for the past 10 years but the number of vehicles moved last year increased by 17 per cent on the previous year, filling nearly all the available ships.

In response, operators have placed orders for 198 new ships that are due to arrive by the end of 2027, according to maritime consultancy MSI. These deliveries will increase capacity by 42 per cent.

Kristoffersen said it was unlikely terminal operators would increase port capacity at the same rate and that as a result, congestion at ports would worsen. “We think the next big bottleneck will be terminals and distribution.”

His comments come in the week that MSC, the world’s biggest container shipping line, announced its first sizeable investment in the car carrier sector, with a NKr7.64bn ($693mn) cash offer for Gram Car Carriers, an Oslo-listed owner of 18 car carriers leased to other operators.

‘The Red Sea situation materialised — 5% of our capacity disappeared overnight” said Lasse Kristoffersen: ’
Wallenius Wilhelmsen, meanwhile, is trying to avoid the congestion by investing in its own dedicated terminals.

It has two in China and one each in Australia, South Korea, the UK, Belgium and Germany. On April 25, it signed a 20-year lease on a new car terminal in Brunswick, Georgia, giving it a total of three in the US.

Car-carrier companies operate a total of 776 ships for cars, trucks and other roll-on, roll-off cargo such as agricultural machinery. Wallenius Wilhelmsen operates 128 of the distinctive, boxlike ships.

The problems in ports had been exacerbated, Kristoffersen said, by changes in carmakers’ distribution systems. Many new manufacturers do not have traditional dealer networks, he pointed out. Some — including Polestar, an electric vehicle brand owned by Volvo Cars — had Wallenius Wilhelmsen handle their distribution, he said.

“When we get a Polestar at our terminal in Belgium, we’re the ones checking that car, making it ready to be delivered to a customer,” Kristoffersen said.

The trend had contributed to the build-up of vehicles in ports, he added, with some being prepared there for delivery to customers.

Kristoffersen also pointed out that the industry was feeling the effects of the volatile geopolitical environment.

From the end of last year, many car-carrier operators were forced to divert sailing between Asia and Europe to a longer route around the Cape of Good Hope, to avoid terror attacks in the Red Sea by Houthi militants. Because this has lengthened many journeys, the diversions have cut the number of vehicles shipped this year.

“The Red Sea situation materialised — 5 per cent of our capacity disappeared overnight,” Kristoffersen said.

He also expressed concern about the risks of sailing through the Strait of Hormuz after Iran’s Revolutionary Guards seized the MSC Aries, a large container ship, on April 13. Vessels have to pass through the strait to reach Gulf ports such as Dubai.

These ports have grown busier in recent months as Saudi Arabia’s main port at Jeddah, on the Red Sea, has become harder to serve.

“Whatever happens off Yemen and in the Strait of Hormuz is a big challenge for our ability to deliver,” Kristoffersen said.

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Headlines

Maersk denies $600 investment claim in Nigeria

The Eyewitness Reporter
The Danish Shipping and logistics giant, Maersk, has denied the claim that it would invest the sum of $600m through AP Moller, the operator of Apapa port terminal.
President Bola Ahmed Tinubu, through his spokesman, Ajuri Ngelale, has claimed that the Danish Shipping giant has made its intention known to made the investment in Nigeria.

However, Maersk said such a claim appeared to be news to the company.

A $600m investment into Nigeria’s port sector from Maersk, announced personally by the West African state’s president Bola Tinubu on Sunday, appears to be less solid than the government initially claimed.

Despite a presidential statement from Tinubu detailing how he had secured the purported investment during a World Economic Forum meeting in Riyadh over the weekend, Maersk officials have confirmed that no such agreement is in place and no deals have been signed.

The Nigerian government statement detailed how A.P Moller-Maersk chairman, Robert Maersk Uggla, had discussed the investment with President Tinubu on the sidelines of a meeting discussing energy development and growth.

The statement even included a direct quote attributed to Uggla saying: “We believe in Nigeria, and we will invest $600 million in existing facilities and make the ports accommodating for bigger ships”.

But according to Maersk, that deal does not exist.

Accordingthe report by Lloyd’s List, Maersk officials said while Uggla did meet the president, no such deal had been signed.

“Maersk has been present in Nigeria for 35 years and, as a global provider of logistics services, we remain committed to developing opportunities for growth to people, the port sector and businesses locally,” the company said in a statement to Lloyd’s List.

“Therefore, it is natural to have an ongoing dialogue with the administration. However, we are not able to comment on any investment talks.”

Maersk is due to report first-quarter results on Thursday, meaning that management is in a regulatory quiet period limiting what they can say publicly about the company’s activities.

Nigeria has promised to revamp its ports, including in the commercial capital Lagos, to ease congestion.

Tinubu’s statement explained that his government would support the modernisation and automation of its ports to improve trade, reduce corruption and boost efficiency. He claimed that the purported Maersk investment would “complement the administration’s ongoing $1bn investment in seaport reconstruction across the eastern and western seaports of Nigeria”.

“A bet on Nigeria is a winning bet. It is also a bet that rewards beyond what is obtainable elsewhere,” he said. “We need to encourage more opportunities for revenue expansion and minimise trans-shipments from larger ships to smaller ships.”

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