Monday, April 08, 2024

 

Something Is Starting to Smell Fishy About the Global Seafood Supply Chain

Boarding team inspects the holds of a reefer ship off the Galapagos Islands (USCG file image)
Boarding team inspects the holds of a fishing-fleet tender vessel off the Galapagos Islands (USCG file image)

PUBLISHED APR 7, 2024 7:06 PM BY IAN URBINA

 

 

The past half year has seen a steady stream of disturbing reports about serious human rights abuses tied to industrial fishing. First came a long expose about forced labor at sea tied to hundreds of Chinese fishing ships that supply many of the biggest restaurant and grocery store chains in the US and Europe. Then the investigations moved on land, exposing the widespread use by Chinese processing plants of state-sponsored forced labor — specifically North Korean and Uyghur workers, both of which are strictly banned from being tied to any products imported into the US. 

Then last week this harsh spotlight shifted to India. A whistleblower, named Joshua Farinella, leaked thousands of pages of internal documents, invoices, emails, recorded zoom calls, security footage, whats app exchanges tied to a shrimp processing plant where he was the manager. The story was important for Americans since a third of the shrimp they eat comes from India. The documents seem to back up the whistleblower’s statements and raise a variety of serious concerns about human rights abuses tied to workers at the Indian plant as well as food safety issues relating to shrimp possibly having been shipped to the US that tested positive for antibiotics. 

The whistleblower is an American and a longtime seafood industry executive, and he showed unusual bravery in leaking the documents since he likely just threw his entire career away in doing so. Aside from talking to reporters, he followed other proper channels, by filing federal whistleblower complaints to law enforcement officials at the State Department, Customs and Border Patrol, the Labor Department and the FDA, who have already spoken with him and begun investigating. 

Congress last week also formally wrote the whistleblower to request the documents as they too intend to investigate the plant. That is often a precursor to hearings. For the risks taken and bravery shown in leaking the documents, podcasters have dubbed the whistleblower, the “Snowden of Seafood”, and he has also been hailed publicly as a “superhero” by a variety of advocates and others, including the Hulk. (The actor Mark Ruffalo posted a message saying the whistleblower was a real-life superhero for his actions). The company at the center of the disclosures takes a different view and has categorically denied that it did anything illegal or unethical. 

The story about conditions at the shrimp plant in India come against a broader backdrop. The same week that the whistleblower documents were published, the Corporate Accountability Lab, which is an advocacy group of lawyers and researchers, released a report detailing severe cases of captive and forced labor as well as environmental concerns often tied to wastewater at a variety of other shrimp plants in India.

It’s worth remembering the history here. Labor abuse tied to seafood is not a new problem. The New York Times and the Associated Press covered the issue extensively a decade ago, especially tied to Thailand. Even before that, a human rights NGO called the Environmental Justice Foundation revealed in 2013 widespread problems with forced and child labor in Thai shrimp. The EJF report and subsequent news coverage spurred a series of sweeping reforms by the Thai government to better protect workers from such abuses. But these reforms came with a price, leading to escalating labor costs in Thailand right when nearly half of the country’s shrimp production was wiped out by a disease. India emerged to fill the void, with help from its government which bolstered subsidies and loosened laws restricting foreign investment. By 2021, India was exporting more than $5 billion of shrimp globally, and was responsible for nearly a quarter of the world’s shrimp exports.

And yet, here we are again: the seafood problems previously highlighted in Thailand are now being widely revealed in China and India.

Part of the problem with global seafood is that companies and governments barely know where these ships are working, much less how they are behaving. A new study published in the journal Nature in January 2024 revealed that 75 percent of the world’s industrial fishing fleet are not publicly tracked. The study, using machine learning and satellite imagery, detected vessel activity at sea that was previously “dark” in marine protected areas and in countries' waters that previously showed significantly less of a fishing footprint. If we dont know where the ships are, we surely dont know if the workers on them are trafficked. 

Even on land, companies and governments are minimally informed about what is happening at the fish farms and processing plants partly because the audits that are meant to verify ethical and legal conditions tied to worker treatment, food safety, and ocean sustainability are deeply flawed. 

Labor researchers, unions, academics and industry consultants have warned that these concerns will keep popping up until major buyers — in particular the restaurant and supermarket companies — decide to fix their supply chains so that they know what is happening at every step along the way, from bait to plate. These experts also say companies need to stop relying on auditing firms that claim to be checking for things in places (like India and China) where they actually have limited capacity to do so effectively. 

Until then, the rotten smell inside this industry is likely going to get worse.  

Ian Urbina is the director of The Outlaw Ocean Project, a non-profit journalism organization based in Washington DC that focuses on environmental and human rights concerns at sea globally.

This essay originally appeared in Time and may be found in its original form here

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.

 

Contractors Remove 150-Tonne Section of Baltimore's Key Bridge

Baltimore bridge
Courtesy USACE

PUBLISHED APR 7, 2024 3:32 PM BY THE MARITIME EXECUTIVE

 

 

On Saturday, contractors for the U.S. Army Corps of Engineers completed the removal of a 156-tonne piece of Baltimore's Francis Scott Key Bridge, bringing the response one step closer to completion. The bridge's one-piece truss collapsed after the boxship Dali hit a pier on March 26, killing six and prompting a multi-month effort to reopen the shipping channel. 

The section removed Saturday was from Span 19, outside of the main channel. Contractors hoisted it onto a barge for later dismantling; the scrapping work will take place at the nearby Tradepoint Atlantic terminal. 

Salvor inspects the wreckage aboard the boxship Dali (USACE)

Image courtesy USACE

Divers recovered a third body from the wreckage on Friday, bringing the number of missing to three individuals. The victim has been identified as Maynor Yasir Suazo-Sandoval, 38, a member of the pothole-repair crew that was working on the bridge deck when the ship hit the pier. 

Suazo-Sandoval's body was recovered from inside a vehicle in the wreckage. The diver did not find any other bodies within or near the vehicle, Maryland State Police Superintendent Col. Roland Butler Jr. told local media. 

On Sunday, Maryland Governor Wes Moore confirmed the most specific timeline yet for the full resumption of shipping in and out of the Port of Baltimore: the end of May. 

“It is an aggressive timeline but we are going to work around the clock to make sure we hit this timeline,” he told CBS News. 

The U.S. Army Corps of Engineers issued a similar forecast last week, predicting that a 35-foot channel would be open by the end of April and that the fairway would be fully restored by end of May. 

Rebuilding the Key Bridge will take far longer, and will be far more costly. The White House has asked Congress to fully fund a replacement right away, while state and federal governments will look at legal options for recouping costs later (from the shipowner or the operator). 

 

 

X-Press Feeders Gears Up for Methanol-Powered Service in Europe

Two of X-Press Feeders' new green-methanol-powered boxships, in green livery (X-Press Feeders)
Two of X-Press Feeders' new green-methanol-powered boxships, in green livery (X-Press Feeders)

PUBLISHED APR 7, 2024 9:46 PM BY THE MARITIME EXECUTIVE

 

Plans by Singapore-based X-Press Feeders to launch green shipping corridors in Northern Europe are on schedule to commence in the third quarter of this year following the inking of a landmark agreement with six ports.

The liner announced readiness to begin the use of dual-fuel vessels powered by green methanol on the Scandinavia and the Baltic Sea routes after signing of memorandum of understanding with the ports of Antwerp Bruges (Belgium), Tallinn (Estonia), Helsinki (Finland), HaminaKotka (Finland), Freeport of Riga (Latvia) and Klaipeda Port (Lithuania).

X-Press Feeders is now on schedule to begin the operation of methanol powered vessels on two shipping routes connecting the six ports. The liner says that the development is significant because the services will be the very first scheduled feeder routes in Europe powered by green methanol, an alternative fuel that produces at least 60 percent less greenhouse gas emissions than conventional fuel oil. 

The company, which operates a fleet of more than 100 vessels, has 14 dual-fuel feeder vessels on order that will be delivered starting this year through to mid-2026. Each of the ships has a capacity of 1,200 TEU. The first vessel is preparing to make its maiden voyage from Shanghai’s builder Sumec Yangzhou New Dayang Shipbuilding Company to Rotterdam.

The ship will use bio-methanol, a renewable energy source produced from decomposing waste and residues, for her voyage to Europe.  X-Press Feeders has already signed a contract with Dutch fuel supplier OCI Global for the supply of green methanol at the port of Rotterdam. X-Press Feeders says that the vessels will save about 270 kilograms of CO2e emissions for every TEU carried when compared to a conventionally-fueled ship. 

“By working together – X-Press Feeders and the six partner ports – aim to efficiently implement green shipping corridors and lead the maritime industry in sustainability. We chose the Nordic and Baltic states as the first markets to deploy our green methanol powered vessels because we found the ports and our customers in these markets to be very receptive,” said Francis Goh, X-Press Feeders’ Chief Operating Officer.

The MoU covers joint development of infrastructure for green methanol bunkering and cooperative measures for supporting the green methanol supply chain. Other collaborations will include training programs for port workers and seafarers on handling methanol, as well as using digital platforms to speed up port calls. 

For green methanol and other sustainable fuels to meet the needs of the global maritime industry, production needs to scale up. However, X-Press Feeders thinks that the amount of bio-methanol available is enough to run ‘closed loop’ services in Northern Europe. This means about 95 percent of the entire round voyage can be powered by methanol, with a resupply of fuel at the bunkering port after every voyage. Over the long haul, X-Press Feeders wants to fully decarbonize by 2050.  


'Plan for the worst': Eclipse viewings expected to put pressure on cellphone networks

An annular solar eclipse

With Monday's solar eclipse expected to draw tens of thousands to regions along the path of totality in Eastern Canada, major cellphone and internet providers say they're ready to handle a surge in wireless traffic in those areas.

Cities such as Niagara Falls, Ont., and Montreal have been bracing for an influx of tourists this weekend as people hope to catch a glimpse - through their special protective glasses - of the phenomenon Monday afternoon. The rare alignment of the sun, Earth and moon means other cities and towns in Ontario, Quebec and the Atlantic provinces could also see unusually high visitor levels.

“As with any large event that brings high levels of visitation into a concentrated area, it is possible that cell signal may be compromised,” the City of Niagara Falls said in a post on its website.

The city said it is expecting up to one million visitors over the coming days which would be “by far, the largest crowd we've ever experienced.” In the post, it warned local businesses that visitors may have urgent requests to use their landline phones if cell service becomes spotty.

But Canada's largest telecommunications carriers say they have been preparing for the eclipse and are confident their networks will hold up.


Rogers Communications Inc., BCE Inc. and Telus Corp. said they would deploy additional infrastructure to certain areas to prevent any potential disruptions. For Rogers and Bell, that includes using portable mobile towers, known as Cell on Wheels, or COWs, to increase capacity.

The companies also said their technical teams would pause routine maintenance work that could potentially reduce service levels.

“This is a once-in-a-lifetime moment for many Canadians and we are getting ready to handle the potential increase in wireless traffic in communities along the path of totality,” said Rogers spokesman Cam Gordon in a statement.

“We have also conducted network health checks, completed targeted upgrades and are optimizing sites to add more capacity.”

Bell spokeswoman Jacqueline Michelis said a dedicated team would monitor network performance throughout Monday.

“In preparation for the solar eclipse, our teams are putting measures in place to ensure the network continues to run optimally in regions where we anticipate large crowds to gather,” she said in a statement.

Enhancing network capacity by deploying portable cell sites is one of the most effective ways that telecom companies can prepare for increased demand, said Manav Gupta, chief technology officer and Canada technical sales team lead at IBM Canada.

He said Cell on Wheels “can quickly provide additional coverage and capacity where needed.”

“Providers will want to prepare for a network traffic surge resulting from people using telecommunications services more heavily during the event by, for example, streaming the eclipse, sharing content on social media or making calls,” said Gupta.

Unlike its two largest competitors, Telus doesn't need to deploy Cell on Wheels, said spokeswoman Jacinthe Beaulieu. She said Telus has made “massive investments in our network” in recent years that will allow it to offer increased capacity on Monday.

“Our infrastructure can support the increased number of visitors that is expected during the eclipse,” she said.

Beaulieu said Telus held internal preparedness calls and was in touch with public safety and government officials leading up to the eclipse. It has a “contingency and emergency response process” ready in case there are issues Monday.

Quebecor Inc. said in a statement that the “strength and robustness of our network should ensure continuity of wireless service” on eclipse day for all Videotron, Freedom Mobile and Fizz subscribers. But it added it would monitor the situation before and during the eclipse and “intervene quickly if necessary.”

“Please keep in mind that the eclipse itself has no effect on telecom networks, unlike a solar flare which can affect airwaves and electronic equipment,” the company said in an unattributed statement.

“It should also be noted that the total eclipse route will distribute potential viewing sites over a relatively large area, reducing the risk of network congestion. However, temporary slowdowns remain possible if larger-than-expected crowds materialize at certain locations.”

The Town of Niagara-on-the-Lake said those in the area should “consider developing a communication plan with family and friends ahead of time, and ensure your phone is fully charged for the day of the eclipse.”

“If you regularly use cash or want some on hand, consider visiting your local bank or ATM beforehand,” the town noted on its website. “Due to increased cellular traffic, some ATMs that operate on Wi-Fi may be unavailable.”

Although phone signals and internet connections are not directly affected by solar eclipses, which do not emit radiation or energies that disrupt electromagnetic waves, Gupta said they could cause “minor disruptions” to satellite communications. This could potentially affect signals related to GPS and, to a lesser extent, cellular networks due to atmospheric change.

“My advice would be, as with any noteworthy events, to proactively plan for the worst,” said Gupta.

“Gathering data, developing a strategy, and preparing for any potential issues is sound practice no matter what the challenge or issue may be.”

This report by The Canadian Press was first published April 5, 2024.

BNN Bloomberg is part of Bell Media, which is owned by BCE


Coinbase becomes first foreign crypto exchange to be registered in Canada

Coinbase announced it is the first international cryptocurrency exchange to be registered as a Restricted Dealer by the Canadian Securities Administrators.

Coinbase called the news a “culmination of months of work” since expanding into Canada in March 2023 and marks Coinbase’s seventh international registration in the last year, behind France, Spain, Singapore, Italy, Ireland, and the Netherlands.

“This is a significant milestone in Coinbase’s journey in Canada,” Lucas Matheson, CEO of Coinbase Canada, said in a news release Thursday. “We’re excited to continue working with stakeholders across Canada to accelerate the adoption of digital assets, foster economic empowerment, and reshape the financial system.”

Coinbase has marked Canada as the third-most crypto-aware nation, with internal surveys showing that 29 per cent of Canadians would be interested in investing if there were more regulation in the industry.

“Regulation is critical to the success of the crypto industry and is essential for building trust,” Faryar Shirzad, chief policy officer at Coinbase, said in the release. “We applaud the Canadian securities regulators’ demonstrated commitment to bring clarity to the industry and are excited for what this next chapter holds for Coinbase in Canada.”

Coinbase CEO Brian Armstrong has been complimentary of the Canadian regulatory framework in past, saying that Canadian regulators have shown “great leadership” during a town hall event in Toronto back in November.

“Canada can rightfully lord that over the U.S. that they are doing a better job creating regulatory clarity around crypto,” Armstrong said at the time.

“I'll take some pointers home from this trip for our U.S. counterparts.”

Coinbase’s Toronto office is its largest tech hub outside the U.S., with more than 200 full-time employees.

The announcement comes at a time of turmoil at Canada’s largest crypto exchange, WonderFi, which last week saw a major investor call for a C-suite shakeup after its stock fell 16 per cent in the past four months, but the price of Bitcoin climbed 60 per cent.

 

Apple lays off more than 600 workers in California in its first major round of post-pandemic cuts

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Apple is laying off more than 600 workers in California, marking the company's first big wave of post-pandemic job cuts amid a broader wave of tech industry consolidation.

The iPhone maker notified 614 workers in multiple offices on March 28 that they were losing their jobs, with the layoffs becoming effective on May 27, according to reports to regional authorities.

The workers were cut from eight offices in Santa Clara, according to the filings under the state's Worker Adjustment and Retraining Notification Act, also known as WARN. But it's not clear which departments or projects the employees were involved in.

Apple did not immediately respond to a request for comment early Friday.

The Cupertino, California, company had been a notable exception as other tech companies slashed their workforces over the past two years. There was a massive surge in hiring during the COVID-19 pandemic, when people spent more time and money online, and big tech companies are still larger than they were before the pandemic. Still, as growth slows, companies are focusing on cutting costs.

In a recent regulatory filing, Apple said it had about 161,000 full-time equivalent employees.

Amazon announced earlier this week a fresh round of layoffs, this time at its cloud computing business AWS. In recent months, video game maker Electronic Arts said it's cutting about 5 per cent of its workforce, Sony said its axing about 900 jobs in its PlayStation division, Cisco Systems revealed plans to lay off more than 4,000 workers and social media company Snap, owner of Snapchat, announced its slashing 10 per cent of its global workforce.

Apple explores home robotics as potential 'next big thing' after car fizzles

Apple Inc. has teams investigating a push into personal robotics, a field with the potential to become one of the company’s ever-shifting “next big things,” according to people familiar with the situation.

Engineers at Apple have been exploring a mobile robot that can follow users around their homes, said the people, who asked not to be identified because the skunk-works project is private. The iPhone maker also has developed an advanced table-top home device that uses robotics to move a display around, they said.

Though the effort is still in the beginning stages — and it’s unclear if the products will ultimately be released — Apple is under growing pressure to find new sources of revenue. It scrapped an electric vehicle project in February, and a push into mixed-reality goggles is expected to take years to become a major moneymaker.

With robotics, Apple could gain a bigger foothold in consumers’ homes and capitalize on advances in artificial intelligence. But it’s not yet clear what approach it might take. Though the robotic smart display is much further along than the mobile bot, it has been added and removed from the company’s product road map over the years, according to the people.

Embedded Image

The robotics work is happening within Apple’s hardware engineering division and its AI and machine-learning group, which is run by John Giannandrea. Matt Costello and Brian Lynch — two executives focused on home products — have overseen the hardware development. Still, Apple hasn’t committed to either project as a company, and the work is still considered to be in the early research phase. A spokeswoman declined to comment.

Apple investors reacted coolly to the news, with the stock paring earlier gains after Bloomberg reported on the robotics work. It was up less than 1 per cent at $169.51 as of 3:20 p.m. in New York. Shares of iRobot Corp., maker of the Roomba robot vacuum, jumped as much as 17 per cent.

Before the EV project was canceled, Apple told its top executives that the company’s future revolved around three areas: automotive, the home and mixed reality. But now the car isn’t happening and Apple has already released its first mixed-reality product, the Vision Pro headset. So the focus has shifted to other future opportunities, including how Apple can better compete in the smart home market. 

The table-top robotics project first excited senior Apple executives a few years ago, including hardware engineering chief John Ternus and members of the industrial design team. The idea was to have the display mimic the head movements — such as nodding — of a person on a FaceTime session. It would also have features to precisely lock on to a single person among a crowd during a video call.

But the company has been concerned about whether consumers would be willing to pay top dollar for such a device. There have also been technical challenges related to balancing the weight of a robotic motor on a small stand. The primary obstacle has been disagreement among Apple executives over whether to move forward with the product at all, according to the people.

Near its campus in Cupertino, California, Apple has a secret facility that resembles the inside of a house — a site where it can test future devices and initiatives for the home. Apple has been exploring other ideas for that market, including a new home hub device with an iPad-like display.

Apple’s pursuit of the “next big thing” has been an obsession since the Steve Jobs era. But it’s become harder to envision a product that could ever match the iPhone, which accounted for 52 per cent of the company’s $383.3 billion in sales last year. 

A car had the potential to add hundreds of billions of dollars to Apple’s revenue, in part because the vehicles were expected to sell for roughly $100,000 a pop. Few other products have that kind of growth potential, but Apple has a number of projects in the works, including an updated Vision Pro, touch-screen Macs, AirPods with built-in cameras, and new health technologies like a noninvasive blood sugar monitor.

Artificial intelligence is another major focus, even if Apple is playing catch-up in the realm of chatbots and other generative technology. That’s where there could be some overlap with the robotics work. While still in the earliest stages, Apple AI researchers are investigating the use of algorithms to help bots navigate cluttered spaces within people’s homes. 

If the work advances, Apple wouldn’t be the first tech giant to develop a home robot. Amazon.com Inc. introduced a model called Astro in 2021 that currently costs $1,600. But the company was slow to offer the device in major quantities, and it remains a niche product. The company debuted a more business-focused version of the rolling bot last year designed to work as a security guard.

Perhaps the most popular home robot remains the Roomba, which debuted more than two decades ago. Amazon agreed to acquire iRobot in 2022, but regulatory opposition ultimately doomed the deal. Other companies have also presented the idea of humanoid robots that mimic the size and movements of people. 

A silver lining to Apple’s failed car endeavor is that it provided the underpinnings for other initiatives. The neural engine — the company’s AI chip inside of iPhones and Macs — was originally developed for the car. The project also laid the groundwork for the Vision Pro because Apple investigated the use of virtual reality while driving. 

The robot work got a similar start, originating within Apple’s Titan car project around 2019. That’s when the effort was run by Doug Field, now a top EV executive at Ford Motor Co. 

At the time, Field tapped a series of executives to work on robotics initiatives, ranging from nearly silent indoor drones to home robots. The group included Lynch; Nick Sims, a former Google home products manager; and Dave Scott, who left Apple in 2021 to briefly run a mobile MRI machine company and then returned in 2022 to work on the Vision Pro. Hanns Wolfram Tappeiner, the co-founder of AI and robotics company Anki, is also involved.

Soon after Field left Apple in 2021, the robotics work was shifted to the home devices group. And at least one former hardware team from the shuttered car project was recently repurposed to the work on home devices and robotics. The car’s operating system — dubbed by some as safetyOS — could also theoretically be tailored for robots, according to people familiar with the effort. 

The original concept for the robot was a device that could navigate entirely on its own without human intervention — like the car — and serve as a videoconferencing tool. One pie-in-the-sky idea within Apple was having it be able to handle chores, like cleaning dishes in a sink. But that would require overcoming extraordinarily difficult engineering challenges — something that’s unlikely this decade.

On its website, Apple is advertising for robotics-related roles, indicating that it’s trying to expand the teams working on the project.

“Our team works at the intersection of modern machine learning and robotics to shape the AI that will power the next generation of Apple products,” according to the description of one job. “We are looking for innovative and hardworking ML and robotics researchers and engineers that help us research, define, and develop complex intelligent robotic systems and experiences in the real world.”