Rising sea brings reality home

Taken from Papua Newe Guinea Post Courier

You don’t have to be an environmentalist or a natural scientist to see and simply understand the adverse effects of global warming that results in the rise of sea levels. As a Highlander, the issue of rising sea levels and its effects did not bother me too much. However, I was inlightened when I had the opportunity to accompany National Planning and District Development Minister Paul Tiensten to a beautiful coastline village called Lawes in Manus Island recently on a fact-finding tour to the province. What I witnessed was the shocking reality of the destructive effects of global warming that is affecting innocent people, as a result of careless human actions.The beautiful village of Lawes is situated in the south-coast of Manus Island. With its pristine waters and scenic coastline, the village can be rightfully described as one of the pearls of the Pacific. It takes about 15 minutes by boat at the Loniu bridge (the bridge that connects Los Negros Island with Manus Provincial capital Lorengau) transit point to reach the village.The village is regarded by locals as the main supplier of seafood, particularly mud crabs and other garden produce such as yam and taro to the main market in Lorengau. The hospitality and friendliness of the Lawes villagers made the Minister’s small delegation feel right at home from the start when our dinghy arrived until the moment we waved good-bye to the villagers to return to Lorengau and back to Port Moresby via Kavieng on the weekly Air Niugini flight.But amid the happy innocent smiling faces of the Lawes villagers lay one sad but real scenario that they have to live and face up to at present and beyond. This is the reality of the continuous threat posed by rising sea levels, a direct result of global warming. This phenomena now threatens the earth with catastrophy and has already claimed and destroyed some of their once precious hunting grounds and continues to pose even more threats to their beautiful coastline village. The sad fact about this situation is that it is not the making of these innocent villagers that they have to face up to this scenario but it is the works of those rich and greedy powerful industrialised nations of the world and giant corporate polluters who emit hundred millions of tons of carbon monoxides into the atmosphere this is the cause.During our visit a concerned Lawes village councillor Gideon Timothy said the small coastline village, which has a population of about 700 people, first experienced the threat of rising sea level 20 years ago, in 1987. Pointing to an area now covered under the sea, Timothy said, “We used to hunt for cuscus and harvest sago around this area when I was a young boy but now it is buried under the sea water”. And he fears that the worst is yet to happen with the whole of Manus Island slowly sinking. New Manus Open MP and Inter-Government Relations Minister Job Pomat and Administrator Wep Kanawi confirmed Councillor Timothy’s fears with separate statements alluding that in fact the whole Manus Province is slowly sinking under the water. Timothy said most of the villagers in Lawes relocated further inland after first experiencing the threat of rising level but this threat has increased now and has already affected some of the villagers’ food gardens, coconut trees including the Lawes top-up primary school grounds.“We do not know where our children will hunt for protein or harvest sago, plant cocoa or palm oil 10 to 20 years from now because every moment the sea level is rising. It’s currently low tide but you can still see the effects. During high tide period, the threat gets even worse for us,” Timothy said. A young lad by the name of Pokawas Malakai took us on a tour of the affected areas of the village. Sadly young Pokawas pointed to one of several houses affected by sea water telling us that this was his home and where he grew up with his older siblings. “My parents are planning to move our house further inland because as you can see water is slowly covering up the land area where our house now stands,” 10-year-old Pokawas said, while pointing to his family home. Lawes, like many other coastal villages and islands in PNG and around the world are facing the eminent threat of being submerged by sea water as a result of rising water levels aided by wild weather due to increases in global warming.Councillor Timothy said the issue of global warming must become an important concern for governments, industries, communities and individuals in both developing and developed countries alike because it affects everyone from the Queen of England to the United States President, right down to the simple villager like himself.Fellow Lawes villager Morgan Yowat supports Timothy’s views adding that governments at all levels must respond to growing concerns about climate change by taking drastic policy actions to reduce greenhouse gas emissions “It is therefore vital that policymakers and society take into account the wider social and economic implications of climate change and policies,” he said.According to a global energy report released by Exxon Mobil in early 2006, increasing population and prosperity in developing countries will drive up global energy demand. This will result in substantial increases in greenhouse gas emissions, particularly from developing countries, which will account for about 85% of the growth in CO2 emissions from 2000 through 2030.The Exxon Mobil report says that until recently, the climate policy debate focused primarily on near-term emissions reductions in the framework of targets and timetables set by the Kyoto Protocol. “The first compliance period under the Protocol will start next year and end in 2012 (2008-2012). But, among those nations ratifying the Protocol, only the European Union has been most active in seeking to implement it,” the report stated.The Mobil report further states that most nations who ratified the Protocol are not on track today to meet their 2008-2012 Kyoto targets with necessary domestic actions which means that the total shortfall several hundred million metric tons of CO2 per year. And Australia under the Howard Government is strongly opposed to the Kyoto Protocol saying that a new approach to global climate policies is still necessary, one that includes giant emitters like the United States and China who have not signed onto the Kyoto agreement. Australia is adamant that both the US and China must be serious participants if there was to be any moves towards agreeing to reduce greenhouse gas emissions on a global scale. But how serious countries like the United States is in addressing the climate change still remains a question. According to a October 24 2007 report “the White House significantly edited testimony prepared for a Senate hearing on the impact of climate change on health, deleting key portions citing diseases that could flourish in a warmer climate, documents obtained by The Associated Press showed. The White House on Wednesday denied that it had ‘’watered down’’ the congressional testimony that Dr. Julie Gerberding, director of Centres for Disease Control and Prevention, had given the day before to the Senate Environment and Public Works Committee. But a draft of the testimony submitted for White House review shows that six pages of details about specific disease and other health problems that might flourish if the Earth warms were not delivered at the hearing”. The report on the White House alteration of CDC testimony further added that in another deleted section of the testimony it said ‘’Climate change-driven ecological changes such as variations in rainfall and temperature could significantly alter the range, seasonality and human incident of many zoonotic and vector-borne diseases.”The international debate on what climate policy actions to take in order to reduce greenhouse gas emissions now continues, but the outcome is uncertain. But one thing is for certain, the future of youngsters like Pokawas Malakai and his innocent andbeautiful coastline village of Lawes lies in uncertainty with its fate already sealed,, along with those many islands and coastal villages in the Pacific and other parts of the world. In fact, it has already claimed a large part of his father’s once precious hunting grounds and now threatens his family home as a direct result of careless and greedy human actions in the industrialised and developed to come. Pokawas now can only surrender as the sea chips away at his beloved Manus Island in quiet whispers.

Burnie base for climate change research

Posted November 30, 2007 08:20:00
Map: Burnie 7320
International scientists have chosen Tasmania's north west coast to be the Southern Hemisphere base for new climate change research.
The Southern Hemisphere's first Satellite Laser Ranging system opens today in Burnie.
Chris Watson from the University of Tasmania says the equipment will help NASA use its satellites to measure climate change and sea level rise.
"The main outcome from this research is hopefully going to be more accurate estimates of sea level rise," he said.
"So that's really important, particularly for a country like Australia where so much of our population lives near the coast.
"What we're trying to do is really refine how accurately we can measure sea level rise in our area of the world."
Dr Watson says it is an incredible opportunity for Tasmanian researchers.
"Burnie so happens to be one of very few calibration sites for a particular sort of French and joint NASA satellite that measures sea level change," he said.
"And it so happens that Burnie is right underneath that satellite and what we are hoping to do is measure to those satellites with those laser systems."

Tasmanian markets want GM ban to stay: Minister

The Tasmanian Government says it will be much harder to maintain the state's moratorium on genetically modified (GM) crops now that Victoria and New South Wales have announced they'll lift their bans on GM canola.
Those states say the move will allow farmers to compete on a level playing field with overseas producers.
The Tasmanian Government is currently reviewing the state's moratorium.
But the state's Primary Industries Minister, David Llewellyn, says the overwhelming feedback has been that the ban should remain.
"Consumers, food manufacturers, some farmers and indeed our markets in Japan in particular are indicating that they want the moratorium extended - not lifted," he said.

Western Australia and Tasmania urge States to maintain GM moratoria

David Llewellyn, MHA Minister for Primary Industries and Water
Kim Chance WA Agriculture and Food Minister
Monday, 26 November 2007

WA Agriculture and Food Minister Kim Chance and Tasmania Primary Industries Minister David Llewellyn have jointly called on Victoria, New South Wales and South Australia to maintain their moratorium on the commercial production of Genetically Modified (GM) crops.
The Ministers urged the governments of these states to respect the wishes of Australian consumers, food manufacturers and farmers for the moratoria to be maintained.
“If Victoria, New South Wales and South Australia lift their GM moratoria, it will increase the risks to Western Australia and Tasmania’s GM-free agriculture and threaten Australia’s overseas markets,” Mr Chance said.
“Opening up other parts of Australia to GM crops could lead to large-scale contamination, subsequent risks to market access and price premiums currently enjoyed by Australian canola farmers, while imposing higher costs on them for product segregation.”
Mr Llewellyn said that the likelihood of contamination of non-GM canola crops throughout Australia would undoubtedly be increased by any decision to lift the moratorium.
“In 2004, GM canola managed to contaminate crops in all canola growing states of Australia despite the fact that each state had a moratorium in place,” Mr Llewellyn said.
The ministers said that the safest and most secure future for Australia’s farmers and consumers was in the production and consumption of GM-free foods and not in pursuing GM food crops that had been rejected by consumers because of health concerns.
Mr Chance said Australian farmers currently produced food of the highest quality and safety for local consumption and export to a range of overseas markets.
“We are heavily reliant on our export markets and lifting the GM moratorium could jeopardise this trade relationship,” he said.
Mr Llewellyn said it could damage Australia’s international reputation as a source of reliable, safe quality and GM-free food.
“Clearly Australian consumers are concerned about the food they eat, and value Australia’s “clean and green, GM-free” status,” he said.
“Unless consumers tell us otherwise, WA will not be changing its policy on GM food,” Mr Chance said.
Currently in Tasmania a Joint Select Committee is reviewing its Genetically Modified Organisms moratorium, which is due to end in mid 2008.
Mr Llewellyn indicated that is was very untimely for NSW and Victoria to lift their bans due to the result of Federal Labor being elected as this is an area of national policy we need to review for our Australian brand and market advantage internationally.
“The moratorium supports Australia’s ‘clean and green’ status and is also reflective of overwhelming public opinion in WA and consumer sentiment around the world.”
Further information:
Tasmanian Government Communications UnitPhone: (03) 6233 6573

Australia's new PM Rudd acts swiftly on climate

Reuters
Sunday November 25 2007
(Recasts with Rudd climate agenda, adds China and financial market reaction)
By Rob Taylor
BRISBANE, Nov 25 (Reuters) - Australia's new prime minister, Kevin Rudd, made climate change his top priority on Sunday, seeking advice on ratifying the Kyoto pact and telling Indonesia he will go to December's UN climate summit in Bali.
Rudd, who swept aside 11 years of conservative rule by John Howard in Saturday elections, also spoke to U.S. President George W. Bush by phone, but would not say when he planned to start a promised withdrawal of 500 Australian combat troops from Iraq.
"I emphasised to President Bush the centrality of the U.S. alliance in our approach to foreign policy," Rudd said in his first media conference on Sunday as prime minister elect, adding he would visit Washington early next year.
Rudd, 50, presented himself to voters as a new-generation leader by promising to pull troops out of Iraq and ratify the Kyoto Protocol capping greenhouse gas emissions, further isolating Washington on both issues.
But while he intends to immediately overturn Howard's opposition to the Kyoto pact, Rudd has said he would negotiate a gradual withdrawal of Australian frontline forces from Iraq.
Rudd, a Mandarin-speaking former diplomat, said he discussed Kyoto ratification with his British counterpart Gordon Brown, as well as Indonesia's President Susilo Bambang Yudhoyono.
"President Yudhoyono formally invited me to attend the Bali conference, which will of course deal with climate change and where we go to now on Kyoto. I responded positively," he said.
Rudd, a staunch Christian, attended church on Sunday and planned talks with officials and advisers about administrative arrangements for ratification of Kyoto as soon as possible.
The surge in voter support to Labor left Howard's Liberal Party in disarray, with up to six conservative ministers, including Howard, likely to lose their seats in only the sixth change of government since World War Two.
Howard was in line to become the first prime minister in Australia since 1929 to lose his own constituency. Compounding the Liberal Party's problems, Howard's heir apparent Peter Costello said he would not seek the party leadership.
Labor is set to hold up to 86 seats in the 150-seat parliament and Rudd said he would name a cabinet later this week.
CLOSER TO CHINA
Rudd is expected to forge closer ties with China and other Asian nations and has said he wants a more independent voice in foreign policy, with past Labor governments more supportive of an energetic United Nations and global organisations.
China's official Xinhua news agency on Sunday carried reports of Rudd greeting Chinese President Hu Jintao in fluent Mandarin in September and of his posting to China in the 1980s.
"This period of history gave him close contact with China and a chance to observe and understand China's politics, economy and culture," the report said.
Chinese Premier Wen Jiabao sent a separate message to Kevin Rudd, congratulating him on his election victory.
Bush congratulated Rudd on his election victory, and praised the leadership of his close friend Howard, who once claimed to be Bush's "deputy sheriff" in Asia.
"The United States and Australia have long been strong partners and allies and the president looks forward to working with this new government to continue our historic relationship," the White House said in a statement.
Rudd also pledged unity at home and an end to controversial offshore detention of illegal immigrants.
Labor would also care for Aborigines after a conservative intervention this year to seize control of remote outback indigenous communities with troops and police in order to stamp out child sexual assaults and alcohol abuse.
But Labor could be frustrated by a hostile upper house. The conservatives will have a Senate majority until July next year, possibly delaying Rudd's agenda and his promise to dump unpopular labour laws which supercharged his victory.
Centre-left Labor will have to negotiate with diverse minor Senate parties including the left-leaning Australian Greens and the conservative, Christian values Family First party.
Outgoing Foreign Minister Alexander Downer glumly said it had been hard for the conservative government to present itself as fresh and new after more than 11 years, despite 16 years of economic expansion and unemployment at 33-year lows.
It is likely to be business as usual for Australian financial markets on Monday, with the decisiveness of the Labor victory and Rudd's promise of continuity of economic policy removing uncertainty for investors. (Additional reporting by James Grubel in Sydney; editing by Roger Crabb)

Tasmanian Business Wins National Export Award

The Premier has congratulated Liferaft Systems Australia on winning a top national award at the Australian Export Awards in Brisbane last night.
Liferaft Systems Australia, based in Derwent Park, was named the 2007 Small to Medium Manufacturer.
This follows its success in the Tasmanian Export Awards, where it won the 2007 Tasmanian Exporter of the Year and the 2007 Tasmanian Small to Medium Manufacturer award.
Mr Lennon said he was proud to see Liferaft Systems continue the pattern of Tasmanian businesses gaining recognition at the Australian Export Awards.
“In the past four years, three Tasmanian businesses have become national export award-winners,” Mr Lennon said.
“Tasmania is an island of innovation and this award recognises the superb products and services that we export throughout the world.
“Tasmanian exports are at a record high and are growing at three-and-a-half times the national rate.
“Liferaft Systems Australia has been one of Tasmania’s top export performers for well over a decade.
“It has built a reputation for quality, reliability and design excellence in its marine evacuation systems.
“This business has done an exceptional job of growing and expanding its international markets and now employs 60 people.”
Liferaft Systems Australia Managing Director Michael Grainger said: “In the past financial year, we have increased export sales by 40 per cent and in the forthcoming year, we expect to expand into new markets such as Scandinavia and Europe.”
Mr Lennon said Liferaft Systems Australia was expected to continue as a key player in Tasmania’s manufacturing industry and major contributor to the local economy, with a number of innovative products in the pipeline.

Natures way of saying "Have a nice day"

Smart card enrolment centre for US port workers extends to Savannah

UP to 30,000 port workers, including truck drivers, employed at the Port of Savannah and the Port of Brunswick, are expected to enrol in the US Transportation Security Agency's Transportation Workers Identification Credential (TWIC) programme, according to the Georgia Ports' Authority.
The announcement from port authorities follows the recent opening of a TWIC enrolment centre in Savannah.
Created by the Department of Homeland Security, TWIC is a federal initiative that requires all workers who have unescorted access to secure or restricted areas of seaports across the US, as well as access to vessels at berth, to undergo background checks and fingerprinting to qualify for the common identification credential.
Port workers who clear the enrolment process will be issued with a smart card by the Transport Security Association that will contain a template of the worker's fingerprint and photograph to verify the individual's identity against that on the card in his/her possession.
The enrolment fee for the TWIC card is US$132.50 and the port credential will be valid for five years.
Total container scanning blasted by ex-US Customs chief
FORMER US Customs Commissioner Robert Bonner has criticised legislation that calls for all US-bound air and sea freight to be scanned at overseas ports, warning that it will cause serious logistical problems.
Mr. Bonner, in office at the time of the 9/11 terror attacks, slammed the legislation, which was signed into law in August as a "simpleton's approach" to improving the security of the global supply chain given that up to 600 foreign ports export goods to the US, according to a report in New Zealand's Dominion Post newspaper.
The legislation to scan all US-bound containers at ports of origin overseas with imaging and radiation detection equipment for nuclear weapons is scheduled to be implemented within five years at seaports and within three years for all air freight.
"It's a terrible idea. It hasn't been implemented ... and I hope reason will prevail," Mr Bonner said.
Mr Bonner denied claims by supporters of the bill that the scanning of all cargo at the port of origin had been recommended by the 9/11 Commission.
His view that the legislation if implemented would be unworkable was supported by comments made by Stewart Milne, executive director of the Board of Airline Representatives of New Zealand. Mr Milne said the proposed legislation would cause delays and exporters would find it difficult to meet their contractual requirements.
"Air cargo has a different imperative, a lot of it is fresh - seafood, flowers - so it's going to cause major problems," he said.
At present, export containers that are identified to pose a risk to US security are scanned at foreign ports, which means about 5-10 per cent of US-bound containers are now being scanned.

UN finds climate truth 'terrifying'

By Joe Ortiz in Valencia
November 18, 2007 12:49am
Article from: Reuters

UN climate change delegates agree on findings
"Deep cuts" needed in greenhouse emissions
"Crystal clear" science finds humans at fault
GOVERNMENTS must do more to fight global warming, spurred by a new UN scientific report and damage to nature that is already as frightening as science fiction, UN Secretary-General Ban Ki-moon said.“This report will be formally presented to the (UN Climate Change) Conference in Bali,” Mr Ban told delegates from more than 130 nations in Valencia and praised them for agreeing an authoritative guide to the risks of climate change.
“Already, it has set the stage for a real breakthrough - an agreement to launch negotiations for a comprehensive climate change deal that all nations can embrace,” he said.
Mr Ban singled out the US and China, the world's top two emitters of greenhouse gases, which have no binding goals for curbs, as key countries in the process. He welcomed initiatives by both and urged them to do more.
“I look forward to seeing the US and China playing a more constructive role starting from the Bali conference,” Mr Ban told a news conference. “Both countries can lead in their own way.”
Mr Ban said he had just been to see ice shelves breaking up in Antarctica and the melting Torres del Paine glaciers in Chile. He also visited the Amazon rainforest, which he said was being “suffocated” by global warming.
“I come to you humbled after seeing some of the most precious treasures of our planet - treasures that are being threatened by humanity's own hand,” he said.
“These scenes are as frightening as a science fiction movie,” Mr Ban said. “But they are even more terrifying, because they are real.”
Delegates at UN climate change talks reached agreement on the 26-page document about the risks of warming, blamed mainly on human burning of fossil fuels, after several days of talks.
The document, which summarises the latest scientific knowledge on the causes and effects of climate change, will be put before environment ministers in Bali, Indonesia, next month - a meeting likely to agree a two-year strategy to negotiate a successor to the Kyoto Protocol whose first period ends in 2012.
The summary says human activity is causing rising temperatures and that deep cuts in greenhouse gas emissions, mainly from burning fossil fuels, are needed quickly to avert more heat waves, melting glaciers and rising sea levels.Bali meeting
Scientists and government officials from the 130-state Intergovernmental Panel on Climate Change (IPCC) have boiled down the findings of three reports of more than 3000 pages issued this year on the risks of warming.
Delegates from the environmental movement appeared relatively happy the synthesis had not watered down the message from the scientific advisers, as they had feared it might.
“The strong message of the IPCC can't be watered down - the science is crystal clear,” said Hans Verolme, Director of environmental group WWF's Global Climate Change Program."The hard fact is we have caused climate change, and it's also clear that we hold the solution ... in our hands."
Delegates said the US delegation had been at the centre of some of the fiercest debate this week.
Sources close to the discussions said the US had tried to change or even remove a key section of the report which lists five main reasons for concern about the effects of warming.
“This has been a very tough week and we've had to debate and defend everything we wanted but the draft report that we submitted has remained intact and has even had additions made in terms of emphasis and even facts that have come to light,” IPCC Chairman Rajendra Pachauri said.
“When you're on strong scientific ground, you don't yield any ground. "We have to make sure that scientific truth is not supressed.”
The Kyoto treaty obliges 36 industrial nations to cut emissions by at least five per cent below 1990 levels by 2008-12. A new deal would aim to involve outsiders led by the US and China, which have no Kyoto goals.Additional reporting by Alister Doyle in Oslo

Beekeepers bitterly disappointed

Bob Davey Saveyourleatherwoodhoney Association MR
• The Premier is asked to intervene to ensure the Group delivers the necessary result, to which there has been no response. • Aug 2007 Forestry Tasmania announces to Apimondia, ( the World Beekeeping Conference in Melbourne ), that they are now changing to a new harvest plan process which takes into account the leatherwood in all coupes. • Aug 2007 Forestry Tasmania advise that 3 coupes in the Derwent District containing leatherwood must be clearfelled to produce urgently needed veneer timber for local mills. No leatherwood is to be retained. • 0ctober 2007 a ground audit of the Derwent coupes is carried out and reveals that there were significant stands of leatherwood the loss of which translate into a loss of hive carrying capacity of 60 hives. This irreplaceable loss of the leatherwood resource is now beginning to impact on the pollination services the effected beekeeper can deliver.
• 2005 Forestry Tasmania agrees to use voluntary guidelines for The Management of Leatherwood on State Forest.
• 2006 Huon District coupes are harvested retaining most of the leatherwood content, yet to be checked on the ground.
• All of 2006 and 2007 the Apiary Working Group set up with Government initiative works on the leatherwood resource issue part of which is to consider an enforceable leatherwood protection protocol, (ie a change to the Forest Practices Code) - there has been no progress to date on the “ enforceable” component or the solution, due to resistance from members of the Group wanting only a voluntary protocol.
• The Premier is asked to intervene to ensure the Group delivers the necessary result, to which there has been no response.
• Aug 2007 Forestry Tasmania announces to Apimondia, ( the World Beekeeping Conference in Melbourne ), that they are now changing to a new harvest plan process which takes into account the leatherwood in all coupes.
• Aug 2007 Forestry Tasmania advise that 3 coupes in the Derwent District containing leatherwood must be clearfelled to produce urgently needed veneer timber for local mills. No leatherwood is to be retained.
• 0ctober 2007 a ground audit of the Derwent coupes is carried out and reveals that there were significant stands of leatherwood the loss of which translate into a loss of hive carrying capacity of 60 hives. This irreplaceable loss of the leatherwood resource is now beginning to impact on the pollination services the effected beekeeper can deliver.
• Nov 2007 appeal to the Premier and and Forestry Tasmania to reassess the remaining 2 coupes to retain the leatherwood content.
• There was no prior consultation with beekeepers concerning the harvesting plan and the leatherwood content.
• There was no leatherwood assessment other than for Forestry Tasmania to state that the guidelines would be followed (letter 2006 to the Southern beekeepers).There was no streamside reserve protection.
• A Forest Planner confirms that while the leatherwood content of the coupes is acknowleged, instructions “from above”, are to obtain the veneer timber as the first priority. This essentially precludes selective harvesting according to Forestry Tasmania.

Oil price rise prompts AADA to hike bunker surcharges November 30

MEMBER container shipping lines of the Asia Australia Discussion Agreement (AADA) that serve the trade between China, Hong Kong and Australia will raise bunker fuel surcharges November 30 to reflect increases in world oil prices.
A statement issued on behalf of participating lines said the bunker surcharge for shipments from China and Hong Kong to ports in Australia will be raised to US$400 per TEU and US$800 per FEU for dry and refrigerated containers.
AADA members are: ANL Singapore, China Shipping Container Line (HK), Cosco Container Line, Hamburg Sud, Hanjin Shipping, HMM, "K" Line, Maersk Line, MSC, MOL Line, NYK Line, OOCL and Gold Star Line (HK) and ZIM.

Dollar tumbles to 88 US cents

November 13, 2007 07:48am
Article from: AAP

THE dollar opened more than one US cent weaker today, to start the day below US89 cents for the first time in three weeks, as carry traders deserted high interest rate currencies.
At 7am AEDT, the dollar was trading at $US0.8836/38, down sharply from yesterday's close of 0.8967/72.
This was the currency's lowest opening since October 4 when it started at $US0.8828/34 and the first daily debut below $US0.8900 since October 23 when it began the local session at $US0.8860/65.
Overnight, the dollar traded between a low of $US0.8790 and a high of 0.9020.
Macquarie Bank associate director of foreign exchange, Joanne Masters, said carry traders who usually sell low-yielding currencies like the Japanese yen for high interest rate tender were now selling out of the Australian and New Zealand dollars as a mood of risk aversion continued.
"It's basically risk reduction right across the board," she said. "We've seen that in most asset classes.
"The US dollar and yen are stronger." The latest episode of risk aversion started late last week after major US mortgage lenders updated their loss forecasts.
Ms Masters said investors were worried about the effect this would have on global economic growth.
US Federal Reserve chairman Ben Bernanke also testified to a US Congressional committee last week that losses from the subprime mortgage market could stack up to $US150 billion ($170 billion).
The dollar is tipped to trade between $US0.8790 and 0.8890 today.
"It's been a pretty significant fall through significant levels," Ms Masters said.
"I think investors are going to be fairly wary."

Environmental disaster as Russian tanker sinks·

1,300 tonnes oil flows into Crimea strait after storm · Habitat may take 10 years to recover say experts Luke Harding in MoscowMonday November 12, 2007

Russia and Ukraine were last night facing a catastrophe after a tanker carrying 4,000 tonnes of oil broke up yesterday in heavy seas off the Crimean peninsula, splitting in half and creating what one senior official termed an "environmental disaster".
The Russian ship broke up in a storm and high waves yesterday near the port of Kavkaz in the narrow Kerch strait south of the Sea of Azov, in one of the worst ecological disasters in the region for years.

Two freighters carrying sulphur also sank near the Russian port about 750 miles south of Moscow, and several other ships ran aground. At least two sailors died. One person was still missing yesterday. Operations to rescue the crews of all three ships had begun, officials said.
The oil tanker, the Volganeft-139, which had been loaded with about 4,000 tonnes (1.3m gallons) of fuel oil, was stranded about three miles from the shore. Stormy weather was preventing emergency workers from collecting the spilled oil. At least 1,300 tonnes, and probably more, had leaked into the sea, officials said.
"There is serious concern that the spill will continue," Oleg Mitvol, head of the state environmental safety watchdog Rosprorodnadzor told Russia's Vesti 24 TV. "The wind is now blowing in the direction of Ukraine's coast, so it is our common problem. This problem may take a few years to solve. This is a very serious environmental disaster."

Other environmentalists said that the region's delicate ecosystem could take 10 years to recover. "This is a large accident. I would call it a catastrophe. There are going to be huge consequences for sea life," Vladimir Sliviak, co-chairman of the Russian environmental group Ecodefence, told the Guardian. "The sea is going to be totally hopeless for the next decade."
Sliviak said that because of the heavy storms the oil was likely to sink. The toxicity would affect fish, birds and sea mammals, he warned. He also claimed the Russian authorities were unlikely to clean up the sea effectively. "More oil has been spilled into the sea than the 1,000 tonnes officially reported. Normally in Russia there is a tradition by officials of underestimating the consequences."

The Sea of Azov is already suffering from severe pollution, environmentalists said. Dead fish wash up regularly on the surrounding murky shores, analysis revealing that the water is contaminated with radiation, heavy metals and petroleum.
Maxim Stepanenko, a regional lawyer, said the oil tanker, designed in Soviet times to transport oil on rivers, was not built to withstand a fierce storm. Yesterday there had been six-metre high waves and winds gusting at 80 miles an hour. "All the captains in the strait were warned of the storm at 5.15pm (2.15pm GMT) on November 10. All of them had enough time to leave the dangerous area."

The damage to the Volganeft-139 happened in Ukraine waters in the strait between that country and Russia. The tanker was carrying fuel oil from the Russian city of Samara, on the east bank of the Volga river, to a port in Ukraine.

Yesterday a Georgian freighter and a Turkish ship were also stranded, near the Russian Black Sea port of Novorossiisk.The crews were safe, according to a report by the RIA news agency.

Singapore tops World Bank logistics ranking (Australia 17th)

SINGAPORE came in first in the World Bank Logistics Index this week ahead of the Netherlands (2), Germany (3), Sweden (4), Austria (5), Japan (6), Switzerland (7), Hong Kong (8), Canada (9), and UK. China placed 30th.
"All developed countries turned out to be top performers," said the World Bank communique. "There are also significant differences among developing countries with similar incomes."
Another finding of the survey of 150 countries was that developing nations where trade plays a central role in their economies, perform better than others with similar incomes.
Rankings of the top 50: Singapore (1), Netherlands (2), Germany (3), Sweden (4), Austria (5), Japan (6), Switzerland (7) Hong Kong (8), UK (9), Canada (10), Ireland (11), Belgium (12) Denmark (13), US (14), Finland (15), Norway (16), Australia (17), France (18), New Zealand (19), UAE (20), Taiwan (21), Italy (22), Luxembourg (23), South Africa (24) South Korea (25), Spain (26), Malaysia (27), Portugal (28), Greece (29), China (30), Thailand (31), Chile (32), Israel (33), Turkey (34), Hungary (35), Bahrain (36), Slovenia (37), Czech Republic (38), India (39), Poland (40), Saudi Arabia (41), Latvia (42), Indonesia (43), Kuwait (44), Argentina (45), Qatar (46) Estonia (47), Oman (48), Cyprus (49) and the Slovak Republic (50).
Ranking of the middle 50: Romania (51), Jordan (52), Vietnam (53), Panama (54), Bulgaria (55), Mexico (56), San Tome and Principe (57), Lithuania (58), Peru (59), Tunisia (60), Brazil (61), Guinea (62), Croatia (63), Sudan (64), Philippines (65), El Salvador (66), Mauritania (67), Pakistan (68), Venezuela (69), Ecuador (70), Paraguay (71), Costa Rica (72), Ukraine (73), Belarus (74), Guatemala (75), Kenya (76), Gambia (77), Iran (78), Uruguay (79), Honduras (80), Cambodia (81), Colombia (82), Uganda (83), Cameroon (84), Comoros (85), Angola (86), Bangladesh (87), Bosnia Herzegovina (88), Benin (89), Macedonia (90), Malawi.(91), Sri Lanka (92), Nigeria (93), Morocco (94), Papua New Guinea (95), Dominican Republic (96), Egypt (97), Lebanon (98), Russian Federation (99), Zambia (100).
Rankings of the bottom 50: Senegal (101), Cote d'Ivoire (102), Kyrgyzstan (103), Ethiopia (104), Liberia (105), Moldova (106), Bolivia (107), Lesotho (108), Mali (109), Mozambique (110), Azerbaijan (111), Yemen (112), Burundi (113), Zimbabwe (114), Serbia Montenegro (115), Guinea Bissau (116), Laos (117), Jamaica (118), Togo (119), Madagascar (120), Burkina Faso (121) Nicaragua (122), Haiti (123), Eritrea (124), Ghana (125), Namibia (126), Somalia (127), Bhutan (128), Uzbekistan (129), Nepal (130), Armenia (131), Mauritius (132), Kazakhstan (133), Gabon (134), Syria (135), Mongolia (136), Tanzania (137), Solomon Islands (138), Albania (139), Algeria, (140), Guyana (141), Chad (142), Niger (143), Sierra Leone (144) Djibouti (145), Tajikistan (146) Burma (147), Rwanda (148), East Timor (149) and Afghanistan (150).

Container shipping to soar in coming years, says Evergreen chairman

BARRING unexpected disasters, the container market looks set to flourish in the years ahead, with China's economic boom continuing to drive growth in container transport and other industries, according to Arnold Wang, chairman of Evergreen Marine Corporation, who spoke at the World Shipping Summit (China) 2007 on November 2 in Tianjin.
Mr Wang noted that over the past decade China's remarkable economic growth has brought structural changes to global container shipping and other related industries, including shipbuilding and terminal operations.
"In 2006 container throughput in all Chinese ports reached 80 million TEU, or one-fifth of the global volume. For cargo from Asia to Europe and North America, China's exports have accounted for more than half of market volumes.
Over 10 years, the rise of Chinese mainland has forced changes in port operations and in shipyards, he said. The centre of world shipping centre is moving to the east Asia, he said and this has resulted in dramatic increase in mainland's throughput and has led to the reshuffle of the world's port throughput ranking. Statistics show that by 2015, Shenzhen and Shanghai will probably be the world's second largest ports at the same time.
He added that China's labour force is also making the local shipbuilding industry competitive. China, Korea, Japan and Europe are the four largest shipbuilders in the world.
In the latest ship order wave, the orders for 10,000-TEU ships have increased obviously, said Mr Wang. As to the first half of 2007, a cumulative total of US$51.2 billion had been invested in new vessels, 114 of which are 10,000-TEU ships or above. According to French shipping consultancy, Alphaliner, orders for such ships will surpass 150 by the end of this year.
The shipping consultancy's statistics show, from the third quarter of this year to 2011, the number of 10,000-TEU ships will increase from 6 to 152. These ships will mainly be deployed on Far East-Europe lines since volume on these trade lanes is expected to grow.
Commenting on the question of overcapacity, Mr Wang said that world trade will grow 6.7 to 7.4 per cent over five years, resulting in a cargo volume growth of 10 to 11 per cent, therefore supply and demand should be in balance unless there is an unforeseen disaster.

$A closes higher on back of rates rise

November 7, 2007 - 12:54PM

The Australian dollar has achieved another 23-year high after official interest rates rose and the US currency continued to cop a battering.
At 1700 AEDT, the Australian dollar was trading at $US0.9373/75, up almost one and a half US cents from Tuesday's close of 0.9227/32.
During the day, it traded between a low of $US0.9275 and reached a 23-year high of 0.9383 30 minutes before the close of local trade.
This was its highest level since April 4, 1984, when it closed at 0.9393.
Westpac chief currency strategist Robert Rennie said that in addition to Wednesday's interest rate rise by the Reserve Bank of Australia (RBA), the RBA governor Glenn Stevens' statement about interest rates pushed up the Australian dollar
"There were a couple of points, which really stuck out in traders' minds," Mr Rennie said.
"The most obvious was the fact the RBA was prepared to admit that underlying measures of inflation are likely to be above three per cent by March.
"The other point that was very clear was that aggregate demand growth will need to moderate to keep inflation in the target band."
The RBA lifted official interest rates on Wednesday morning by a quarter of a percentage point to 6.75 per cent, which took rates to their highest level since November 1996.
On October 31 the US Federal Reserve cut interest rates by 25-basis points to 4.5 per cent, which widened the interest rate differential between Australia and the United States.
In its accompanying statement, the RBA on Wednesday said headline and underlying inflation was likely to exceed the central bank's 2 to 3 per cent target band by the March quarter of 2008.
Mr Rennie said US dollar weakness against a range of currencies, particularly the euro, also helped the Australian dollar.
"The US dollar has been slammed today," he said.
Mr Rennie said he expected the Australian dollar to reach 96 US cents by the end of 2007 and tipped further rate rises in December and February. (The RBA board does not meet in January).
"I like the idea of the dollar continuing (to increase)," Mr Rennie said.
At 1600 AEDT, the Reserve Bank of Australia's trade weighted index (TWI) was at 73.0, up from Tuesday's close at 72.2.

Funding Bonanza for Northern Roads and Rail

Jim Cox, MHA Minister for Infrastructure
Friday, 2 November 2007
Infrastructure Minister Jim Cox today welcomed Federal Labor’s major commitment to upgrade road and rail networks across Tasmania’s North, North-West and West Coasts.
Mr Cox said it was wonderful news for local communities in the northern half of the State.
“This is a great opportunity to work on the dedicated freight routes and local transport projects that are so important to these regional centres,” Mr Cox said.
Mr Cox said today’s announcement showed what could be achieved with a true spirit of co-operation between State and Federal governments.
He said the State Government would contribute more than $16 million towards the road funding package.
This included $8.5 million for North-East roads, $3.1 million for Illawarra Road, $3 million for Port Sorell Main Road and $1.3 million for the Bell Bay intermodel.
“This funding will go a long way towards addressing freight transport issues and improving road safety.”
“We look forward to working with a Rudd Labor Government to meet the ongoing road and transport challenges in Tasmania,” Mr Cox said.

Willard Estate Logistics Schedule Changes

For many months now Willard Estate Logistics have reported on the AAA service schedule failures. Exporters would be familiar with constant delays and notices from us updating the lateness of a vessel. We have reported on the reasons for the delays (weather, port congestion, missed berths, omissions etc) and have also voiced our concerns to the AAA service. We completely understand the frustrations of the AAA service operators and offer our understanding of the situation and sincerely wish for a swift return to normal circumstances for one of the only international direct calling services into Tasmania.

Willard Estate Logistics must think first and foremost of the success of Tasmanian Exporters. It is our belief that our LCL consolidation service is a contributing factor to our customer’s success and as such we have made the decision to change our service schedule. The reason in changing this schedule is to be able to offer Tasmanian Exporters a reliable schedule with sailing dates that will be within 24 hours of the scheduled published date. Further, Willard Estate Logistics will be able to provide accurate estimated arrival dates based on the fixed arrival dates of the vessels in Singapore (as opposed to estimated dates that vary considerably due to late departures ex Tasmania). Please take note of the proposed improvements to the Willard Estate Logistics service based on the change of vessel operator.

Schedule reliability is realized by using a vessel operator with proven fixed weekly sailings.
Cargo cut off remains Wednesdays in Hobart and Burnie and Thursdays in Launceston (ability to receive cargo Friday morning at our packing depot in Launceston is optional).
Vessel departure day is Saturday ex Tasmania and Shipped on Board Bills can be issued on Mondays.
Vessel arrival in Singapore is on a Sunday or Monday – allowing for better transshipment co ordination.
The handling of cargo remains the same – no additional transport handling of LCL cargo.
Rates do not change because of this change of vessel operator.
Cargo is still independently photographed and checked prior to loading by a Willard Estate Logistics employee.

PLEASE REFER OUR NEW LCL SCHEDULE AT WWW.WILLARDESTATE.COM - LCL SCHEDULE.

Willard Estate Logistics is committed to the success of our customers in developing international trade and as such are continually researching ways to improve the logistics aspect of business to further strengthen our customer’s supply chain to their trading partners. Some other aspects of our service improvements over the last three months include:

Appointment of MacNels Line to handle transshipment in Singapore.
Inclusion of a tracking tab on our website to enable exporters to tack their cargo online from anywhere in the world.
The creation of an online blog (link on our website) that is updated often with trade and logistics related information with the ability for customers and service providers to place their own comments.

Southbound BAF Increase

For importers ex South East Asia on the AAA service, please note that a Southbound Bunker Adjustment Factor increase will be applicable from vessels sailing on the 01st December 2007. The BAF rates are as follows:

20 FCL US$505.00
40FCL US$1010.00

As the price of oil goes above US$92.00 a barrel we expect to see further increases in this aspect of the shipping component.

Marine insurance costs to rise as claims hit 15-year high

THE increase in claims for protection and indemnity (P&I) insurance in 2006/7 policy year ending February 20 has the been the highest in 15 years, resulting in a record payout of more than US$550 million, reports the International Group of P&I Clubs' Pool.
Accordingly, company directors agreed to a general increase in premium ratings of 10 per cent. "An increase of 17.5 per cent was required," said a group communique issued after a board meeting in Bermuda recently. "However, a straight general increase would impact unfairly and it would be more equitable to reflect the cost of pool claims separately."
The increase in claims was attributed to a growing world fleet, larger ships, strong freight markets that pressures owners and charterers to deliver, problem in getting quality crews, sustained commodity prices, stormy weather and higher salvage costs, said group claims director Christopher Brown.
"There were a disproportionate number of groundings in the 2006 year following adverse weather, inappropriate crew response or mechanical troubles. Unusually, collisions were not the dominant form of loss and there was no major tanker spill. Salvage costs were particularly high," said Mr Brown.
"Clearly, there is an irregular but unmistakable upward cost trend. Claims appear to rise faster in real terms than the world fleet has increased. As more ships are launched, the P&I industry will need to monitor this carefully," he said.
Four new directors were elected to the UK P&I Club Board at the AGM in Bermuda on October 22. They are Faisal Ali of Kuwait Oil Tanker Co, SAK; Thomas Held of Neptune Orient Lines Limited; Takashi Kaneko of Nippon Oil Tanker Corporation and Zhang Liang of China Ocean Shipping Company. Tullio Biggi was unanimously re-elected chairman of the UK Club.