GMISS 08 Summary Report

Tab 4: GMISS Summary Minutes (continued)

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Global Maritime Information Sharing Symposium

Notes from presentations and discussions

The views expressed in the symposium and in this summary are solely those of individual experts who attended the symposium, and do not necessarily reflect the analysis, views, or opinions of any individual speaker, company, consortium or U.S. government agency.

Table of Contents

Working Group Sessions

Working Group A: Can government information requests to shipping companies be consolidated, streamlined, standardized or reduced?

Lead: CDR James Feldkamp, USN, Office of Global Maritime Situational Awareness

Co-Lead: Mr. Andrew Grasso, American Roll-on/Roll-off Carriers

Ms. Kathy Metcalf, Chamber of Shipping of America briefed on information requests and their impact on the shipping industry.

• The Chamber of Shipping of America is the industry advisor to the IMO
• On 9-11, the public wanted to know how it happened. Since then many have commingled legitimate public information needs and concerns with politics. Sometimes in Washington facts don't matter.
• This resulted in a flurry of uncoordinated activity with everyone trying to avoid being the person the let the next 9-11 happen.
• The demanded information flow is from industry to government. We see a one way information flow from us to them.
• We need a two-way flow so we can be the first line of defense.
• Information requests often involve the same information from many agencies.
• One system with 2-way communications should fill needs of both the public and private sectors.
• In industry, there are several ways we get and send information.
• AIS is line of sight. LRIT is really the system we've been looking for that tells where the ships are. Politics are this are big.
• We need to move from need-to-know to responsibility-to-share.
• Government has to be less sensitive about classified. Industry needs to be less sensitive about proprietary. If it can be found somewhere unclassified/unpropriatary, share it.
• The Coast Guard has been active bringing in other federal agencies, including the International Trade Data System (ITDS) which streamlines data from over 20 government agencies.
• At this point, the master of a ship needs about four office managers to handle all the paperwork: the ballast water reporting system, federal, all the states.
• If you pass three states on West coast, you need to submit about 12 sets of paperwork. It's all the same information.
• Tomorrows challenge is how to hook into existing systems. Do we give up the existing ones and create a new system?
• We need a cultural shift to shared information that more is powerful than close hold information.
• Mitigate territorial issues between agencies.
• Find a way to translate classified information to unclassified.
• We need to integrate industry into these programs. Some parts will be government owned, managed and controlled. But we can be more than data points.
• At CBP, the culture was oriented toward independence of field offices. Do what you need to do and we have your back.
• The Coast Guard is very big on consistency. They looked for ways to correct inconsistency.

Ms. Metcalf gave an example of arrival notification being sent to the Coast Guard, but CBP didn't get the word. That delayed the ship for three hours at port. The seamen were restricted to the ship. All because information was not transmitted or received between the Coast Guard and CBP. She said the trend in government is not to aggregate data, but to develop systems to share data. The process for granting access to classified information is too slow and domestic only.

Mr. David McGuire? , Kinder Morgan briefed on the impact of information requests on terminal operations.

Kinder Morgan gets threat information from various government sources. We send threat information immediately to Kinder Morgan personnel via cell/blackberry through Emergency Response Level (ERL) messages. Issues include:

• Several agencies oversee facilities: USCG, local police, FBI, State agencies, FRA.
• Recently received three calls from different parts of Coast Guard for same information within a couple days.

Concerns about TWIC:

• Contractors and truck drivers.
• Small organizations may not be ready.
• Kinder Morgan is ready, but contractors, truck drivers still don't have TWIC cards.
• For small companies, can be onerous.

Kinder Morgan's efforts are complicated by multiple agency notification during incidents. It would be better if there could be one number we call to provide single notification quickly.

• There is conflicting/unclear guidance from various agencies.
• Need additional guidance - never know what's gong to happen next.
• Maritime Security (MARSEC) as the threat level goes up, it has effects on operations. It slows down trucks coming in and product going out.
• There is inconsistent application of guidelines across inspectors, etc. A new inspector shows up and suddenly $60,000 in hose changes are required.

Special Agent Kevin Hayes, Customs and Border Protection briefed on CBP information requests.

• CBP's proposal for importer security filing, 10 + 2, is almost ready for launch.
• Container Security Initiative (CSI) - officers around the world examine containers overseas so they don't have to be examined here. It improves security and free trade.
• Customs-Trade Partnership Against Terrorism (C-TPAT) follows the supply chain to improve free trade.
• There is a perception that "Customs only looks at 2% of cargo" We only physically look at it. But we review all cargo that comes in.
• 10 + 2 asks for more data than 24 hour manifest rule: 10 elements from importer or agent and two data sets from the carrier.
  • Importer
    • Manufacturer (supplier) name/address
    • Seller (owner) name/ address
    • Container stuffing location
    • Consolidator (stuffer) name/address
    • Buyer (owner) name/address
    • Ship to name/address
    • Importer of record
    • Consignee number
    • Country of origin
    • Commodity HTS-6
  • Carrier Requirements
    • Vessel stow plans
    • Container status messages
• New data elements better secure our border Need information to target high risk cargo And not allow dangerous cargo to lade on vessels bound for US.
• The information will be included on ITDS, which included 44 participating government agencies, so others won't need to come back to ask same questions.
• 10+2 provides a single report location. Initially just containers. (Representatives from the dry-bulk industry raised the concern is that non-containers still have to work under old system without single information stop.)
• People issues cause more delays than cargo issues. TWIC does not apply to foreign ships and foreign mariners.

Working Group Discovery Items

• Ballast Water -- too many different reporting requirements
• Need to get a handle on what information everyone is asking for.
• Same crew list goes with 96 hour notification and also to local office.
• Australia has model that already submits most of what you need electronically

Working Group Action Items

• Define baseline reporting requirements
• Single reporting electronic format
• Standardize timing and reporting procedures
• Website/CD for industry access that sends confirmation that everything is received and okay.
• Define baseline reporting - what's required from each agency (globalize)
• Website/CD for industry access

Working Group B: What is the Law Enforcement/Industry model for an International/Domestic Maritime Information Sharing Center?

Lead: Chief Dale Jones, National Oceanic and Atmospheric Administration Marine Fisheries

Co-Lead: ENS Tony More, USCG, Office of Global Maritime Situational Awareness

The working group broke up into 3 groups with one representative from industry in each group:

Sub-Group 1: Mr. Bruce Martin

• There is a large volume of information. How do we correlate it into one cohesive entity/network?
• How do we keep information out of the wrong hands?
• Top down as policy or bottom up as recommendation = what approach are we looking at?
• There is useful information from the Department of State. Recommend OSAC as a model.

Sub-Group 2: Mr. Ken Clark

• Use Operation Seahawk as a model.
• Continue to follow the ISAC model (privately owned).
• Ensure virtual, international interface with government/industry security offices.
• What is the value added? Limit inspections, time in port, and other uncertainties while in port.
• Tier line (metrics) to make determination of security threats
• Leverage existing programs to share information
• Privately owned ISAC vs. federally run OSAC

Sub-Group 3: Mr. Don Hosso

• Do not need bricks and mortar structure.
• Domestic is perceived as easier than international.
• Has to be industry driven.
• Totally transparent system may not work due to criminal capacity to leverage system to their advantage.
• Not all info is critical/important.
• Current system is not perfect but it does help to protect ports. The US does talk to other nations and does act on it. The current system can be improved but it's not broken.

Recommended goals for the next six months:

• Identify data.
• Who runs the data?
• Identify who has the lead
• GMAII, where are they coming from situationally? What is the final picture requested?

Working Group C: What does the Maritime Industry want from the World's Navies and Coast Guards?

Lead: CAPT Andy Bjork, USN, Naval Cooperation And Guidance for Shipping (NCAGS)

Co-Lead: CAPT Kevin Coyne, General Maritime Management, LLC.

CDR Greg Hitchen, USCG, Chief of Response, USCG Sector NY briefed the concept of a blue-water 911.

• Encompasses maritime safety, mobility, maritime security, protection of natural resources, and national defense.
• Three principal force structures:
• shore based,
• mobile maritime patrol forces,
• deployable specialized forces.
• 911 Reports:
  • radio, phone/ email/ (inmarsat);
  • EPIRB;
  • Ship security alert (new)
• Rescue Coordination Centers -- initial response -- Exclusive Economic Zones
• Maritime Operational Threat Response (MOTR)-Coordinated USG response
• Incident Command System - Sector level - consistent response, unified command
• Potential vessel owner participation
• Blue-water Response Challenges:
  • Distance
  • Weather
  • Available response assets
  • Jurisdictional Coordination
• Basic Info Needs for USCG
  • Position,
  • people onboard,
  • Nature of distress
• Longer term: Cargo drawings
• Question: Why doesn't the USCG have information ahead of time?
  • Sometimes we do. It is resident in databases already but not shared until the incident.
  • Smaller -- we may not have anything on it.
  • We go to Interpol
• Jurisdiction: USCG reaches back through the flag state and port security officer 100 miles out at sea.
• Question: Is there a framework similar to the Coast Guard's Amver (Automated Mutual Vessel Rescue System)?
  • No single framework
  • Driven by policies, international laws;
  • Very different in different regions of the world
• Question: What value would an additional IMB (the International Chamber of Commerce International Maritime Bureau) Center add? Regional 911 Centers
  • Having a central location is more helpful. When you spread it out, they might not call the correct center.
• Also see: GMVSS (Global Marine Vessel Safety System)
• There is a responsible MRCC (Maritime Rescue Coordination Center)

CAPT Jeffrey Flumignan, USN, Naval Cooperation And Guidance for Shipping (NCAGS) briefed on current challenges on the high seas.

• What are the greatest security challenges? Piracy? Terrorism?
• Opportunistic -- hit and run
• Kidnap for ransom - Somalia
• Pirates are likely to hijack the entire ship
• Typical attack team uses rocket-propelled grenade launchers (RPGs) and AK57s from a previously hijacked vessel;
• Typical attack involves: target selection, attack, visual intimidation, warning shots, shooting at the bridge, attempt to board with hook ladders
• Many in the industry are concerned about putting all world ships on a system and telling them your name, cargo and location. Ships can turn off their International Ship and Port Facility Security (ISPS) Code.

Captain Kevin Coyne, General Maritime, LLC. provided a tanker owner's perspective.

• We want assistance; competency and consistency,
• Help in times of emergency, i.e. medical emergencies at sea -- many times that assistance is life saving
• Navy and USCG are the only ones willing to be out there in the worst weather
• Competency and Consistency are most frustrating in dealing with the US Navy and USCG
• Everybody is being asked to do more with less
• Congressman Elijah Cummings: USCG needs 10K more people to accomplish the mission
• Same problem in the maritime industry:
  • Younger people are at higher levels
  • No time for training and experience-issue of competency
• Pulling people out and doing training means less people in the field. Putting people out there and training them while they are working is much more difficult on them and us
• Information sharing:
  • Tell us what you need, we'll be ready for it and we can all benefit from it
  • Time and mutual understanding and a cooperative approach should help remedy issues
  • More sharing between USN, USCG, Maritime Industry is absolute key to a better future
• The sharing of information is the key, and is very doable
• Navy needs to do better info exchange with the USCG
• US Customs C-TPAT is currently reaching an expanding maritime group. More information is on systems such as Neptune and Volpe's MSSIS
• There is a matrix on the systems that are in use today, which Guy Thomas of NMCO can share.
• The issue off the coast of Somalia -- three ships hijacked in the last 24 hours -- industry has to tell the Navy where they are. As owners you are going to start losing ships. This is a Global Strategic Issue.
• Industry knows that the Navy is strapped.
• Abused by criminal activities. Your insurance premiums will skyrocket. Money is the driving factor here.
• Tell ship owners to start jumping up and down.
• Ashore if we get robbed or burglarized the cops are there in minutes. Why doesn't industry take same stance and have a quick reaction force?
• Russian vessels shoot back. If we put machine guns on board-seafarers will refuse to go to the Gulf of Aden. Crews are already signing off the Gulf of Aden. Not cost effective to train crews to shoot back
• Military resources are seen as the answer - Naval and USCG resources. There is a great question about whether they will be available
• Somalia: we have ships there, it's about commitment and staying there all of the time

Commodore Niels Friis, North Atlantic Treaty Organization (NATO) briefed on NATO's Operation Active Endeavour.

• Military Structures of NATO

  • 3 military missions-collective defense
  • 4 standing fleets for NATO, not permanent
  • Sort of policing
• Sealines interrupted-need a filter and coordination
• Gap in the Atlantic -- NW Europe and E Africa and US and Canada -- Active Endeavor -- Article 5 -- we can board any ship anywhere in that area -- NATO agreed due to 911
• 482 chokepoints in the Med per day; also non NATO participation
• 95K hailings of merchant vessels-NATO provides most of the area coverage, 60% time at sea for NATO forces
• Joint Information Analysis Center pools and analyzes data
• NATO Shipping Center is the primary point of contact for commercial shipping, compiler of data on merchant shipping, support picture compilation, advisor to shipping,
• Support any NCAGs operation. Any MCC can support national ops, 2 parallel ops or exercises;
• Operation Active Endeavor: we try to get in touch with ships coming into Med; send email or telex
• Operation Veritas-UK MTO Dubai
• Lebanon Crisis, World Food Program- Counter Piracy
• Chasing AIS websites to feed data into MSSIS. NSC doesn't manage NCAGS; provision of a recognized maritime picture
• In what regions do risks materialize besides the obvious? Area protection or economic protection? Would rising risk levels allow more data sharing between industry reps?
• We have to have a concept.
• We want to have what the Maritime Industry Needs.
• There is a large number of these conferences going on, and we can't represent all. Mobilize your trade associations!
• The industry needs to stand up and say what it needs to say
• What we actually need at the moment are more blue water policeman at sea
• Cultural difference and geopolitical difference; USS Mayaguez would it be handled the same way today? ISPS alarms; contingency plans between nations-jurisdiction problem
• Multi-platform approach needed. I want you to create the program
• What organizations do you want us to go to?
  • Connecticut Maritime Association; Come to where we are-every March. Philadelphia Trade Association Dinner
• Show what the advantage is. Tailor the system to meet our needs;
• How do you get to me? Call the USCG. They will get me into direct line with what I need to know.
• First overture: area maritime security rep - USCG advisory committees
• Do you want industry interface? The challenge is to come to you with one voice.
• Bring it to industry rather than invite them in: Hong Kong Ship Owner's Association, Japanese Ship Owner's Association, etc. Tell them what we do at the hotspots of the shipping community, Hong Kong, Greece, London, Oslo.
• With MSSIS, is LRIT necessary? Who is going to pay for it?
  • Hits
  • Satellite time
  • Nations pay a user fee
  • Pay a per ping,
• Ships are required to report 4 times a day, flag states are required to pay in
  • Liberia
  • Panama. Panama goes into millions. Members aren't willing to carry the burden of the system
• Is LRIT the golden goose? US will stand up the International Data Exchange. US fronted the money to get it going. Is it valid?
• MSSIS: Government Sharing. 20 Nautical miles. Shore based
• CMA (Comprehensive Maritime Awareness):
  • Trade Associations, Bimco
  • Better to make a presentation in one of them, get interest and contacts
  • Make a video and DVD to send to everyone
  • Put on the Web, ie Tradewinds Web
  • Panama, Liberia, Marshall Islands, Bahamas

Working Group D: How do we create economic incentives for maritime information sharing?

Lead: CAPT Fred Evans, Global Maritime and Transportation School (GMATS)

Co-Lead: Mr. Eric Seither, Det Norske Veritas

Mr. Jack Ring, Century Shipping provided a commercial shipping broker's perspective.

• It is important to understand the magnitude of the amount of money involved n this industry.
  • 3000 tankers are register globally and they complete about five to six voyages per year.
  • There is a short fall of 34000 unqualified mariners and 84000 to be expected in the future
  • The Coast Guard is over tasked and under funded.
  • 20 years ago a voyage cost $10,000 a day and present time is $300,000 a day.
  • The reason for the loose in market value is because China is buying everything inside; they don't by anything from other countries so they don't have to import.
  • A new tanker vessel (250000 to 300000 tons) costs about $150 million.
  • Because they are making so much money per voyage, companies keep using the same ships they have instead of selling them for scrap.
  • New tankers are in the construction process and will be delivered in 2009/2010.
  • It is easier to finance tankers then cargo vessels.
• What can we do when we are sharing all the information of our cargo and of our position? This creates competition for commerce. The information sharing exercise cannot take the commercial sense away.
• If vessel come in late: $11,002 x 365 days 3 years $12.0 million.
• The CG has a reputation for holding up commerce because of inspections on vessels.
• Can we use the Navy to protect our vessels escorting them in the transit in to foreign ports, so our insurance premiums go down?

Prof. Gerhardt Muller, US Merchant Marine Academy Kings Point briefed on human resources in the maritime setting.

• Focus on the problem is human resources
• Time/Cost/Quality/Awareness
• What will the maritime industry look like in 20 to 30 years?
  • No nationality will be notice
  • Port will be a network of Ports.
  • The driving forces of the Port will be the companies managing the port business not the Port Authorities.
• We need a system that can deal with the development of human resources and awareness. Are the people and industry aware of what's going on?
• Where to get the right people? When do we start identifying this problem or crisis?
• The character of the maritime industry is changing. In the ports we find less and less people know what a ship is.
• Some terminals are warehouses and you don't need sailors to manage the facilities.
• Today's captain is a person who drives a ship back and forward and in the future the CO must be a business man too.
• Awareness & Attitude is the key to perform better.

Dr. Shashi Kumar, Academic Dean and Assistant Superintendent, US Merchant Marine Academy Kings Point briefed on the economic effects of maritime security.

• During the last 12 months, the salaries for European Tanker Operators have gone up three times up because of knowledge.
• Enhance Information Sharing
• Is it good for the maritime industry? Yes, by giving them incentives.
• The cost of operating the ships is escalating more every year.
• Eventually they will have to use fuel with less sulfur and it will be more expensive.
• The cost keeps going up base on training, accidents war zones etc.
• Must manage relationship between the Cost vs. Benefit
• The main reason is to make money.
• Are there sufficient economic incentives for the ship owner to comply with the regulations.
• Policy Options:
  • Lower the marginal cost of security related costs
  • Government subsid
• Benefit externality
• Social efficiency argument
• A combination of the above is what can make it better.

The following points were developed:

• Everyone benefits from the information sharing.
• C-TPAT Program
  • Useful despite the high cost
  • Average annual expense 38,400
• Direct benefits
  • Improved workforce security
  • Predictability in moving goods
  • Enhanced supply chain visibility
• Economic incentives are essential
• Highlight the big picture as well as the small

Working Group Feedback Session

Working Group A

• All agreed these are worth pursuing.
• Can probably get feedback system in place within a year, and an inventory of all the information being required of shipping companies.

Working Group B

• Google-like ability to search for maritime data.
• Already taking place in other nations, ie. Spain.
• Single portal concept. US is lagging far behind.
• Not cheap due to investments in legacy systems.
• Conference with federal CIOs showed they understood this but it is a massive project.
• Interior has flattened and has a single portal.
• ENOA already exists for this. Needs resources to expand it.
• Commercial organization could make this happen if funded to do so.
• Seahawk model has worked well for Charleston, so recommend looking at that for a larger model.

Working Group C

• Cultural sensitivities: MSSIS has been presented to many countries as openly shared information.
• Two questions most often asked:
  • Why is the US government doing this? We always end up giving to the US government, but we don't usually get anything back.
  • Why would we think this is anything different?
• When governments share data among each other, at what point do they share it with industry?

Working Group D

• Action Items:
  • Vessel of interest process must be standardized to make criteria predictable. Standardize internationally if possible.
  • Value of specific security requirements must be more professionally developed in US and other maritime nations.
  • Put together an industry poll or survey and get all your answers to use as a foundation of where to go. Come up with hard data to use to guide way forward.
  • Increased use of industry partnerships. They should have representation here and be involved in the survey.
• Comment: NORTHCOM has standardized VOI criteria published on line.
• Piracy: There are unreported incidents.
  • Comment: Steve Carmel was quoted as saying piracy is a nuisance for us more than a problem. Keep in mind the comment from Philip Shapiro: Maersk doesn't know everything.
  • How do I get the information I need: how to get through that area safely?

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- ChadHolmes - 26 Jan 2009