Freight, Ports, Shipping and Supply Chain Futures Summit

16 August 2017
FPSSC Regulation
What’s changed and what’s changing
Freight, Ports, Shipping & Supply Chain Futures
Summit
www.anthonyharper.co.nz

Theme: More freight, fewer trucks, lower compliance
costs, but - higher penalties for offenders
• Vehicle Dimensions and Mass Rule 2016
• Land Transport Amendment Act
• Land Transport Amendment Regulations
• Pyramid Trucking v Police
Heavy Vehicle Regulation

Vehicle Dimensions and Mass Rule 2016
• When: Applies from 1 February 2017 – no amnesty period
• What: Small increases to height and width limits:
From 2.5m width (+ load securing devices) to 2.55m all incl.
From 4.25m height (+ load securing devices) to 4.30m all
incl.

Changes to gross mass limits (only on approved routes until
30 November, but general access thereafter):
• 7-axle combinations with a minimum wheelbase of 16.8m
from 44,000kg to 45,000kg
• 8-axle combinations with a minimum wheelbase of 17.4m
from 44,000kg to 46,000kg
• Approved over-length simple trailer combinations (subject
to specified requirements) from 36,000kg to 40,000kg

• Over dimension vehicle/load changes
• Performance based standards in the future?

Land Transport Amendment Act 2017
• Mandatory off-loading of overloaded vehicles – tolerance reduced to
lesser of 10% or 2 tonnes
• Weighing of heavy vehicles – Police may redirect to weighbridge up to
10km (up from 5km)
• More targeted enforcement – specific vehicles can be stopped for
inspection
• More expensive to get it wrong:
 Maximum infringement fees increased from $10,000 to $15,000
 Increased penalties for breaches of dimension limits

• Reduced weighing tolerances before penalty
(Land Transport (Offences and Penalties) Amendment Regulations)
Other HV regulatory changes (from 1 Feb)
 500kg for gross mass (down from 1,500kg)
 500kg for all individual axles or steer axles
 1,000kg for other axle sets (e.g. a tri-axle set at the rear of a
semi-trailer)
• Fees for overweight and over dimension permits consolidated
(Land Transport (Certification and Other Fees) Amendment Regulations)
 No changes to fees levels

Pyramid Trucking v Police [2017] NZHC 613
• Overloading = strict liability offence. Only defence = “total
absence of fault”
• Containers weighed on customer weighbridge and sample
weighing carried out, but scales defective. Pyramid didn’t know
• “Impractical” for each truck to be weighed
• Court: Must take all reasonable steps to ensure compliance.
• At minimum – weigh each truck axle by axle with first load of day
• But not enough if significantly overloaded

Maritime Transport Amendment Bill
“Clear Heads” = Drug and Alcohol Management Plan:
• Random testing for safety sensitive workers (anyone doing any
activity that could significantly affect the health or safety of anyone
on board)
• Response plan if test result not negative (including a refusal to
undergo testing)
• 2 year transition period
• Employment and contractor agreements need to
permit testing
• Potential future changes to Civil Aviation Act/rules

Maritime Transport Amendment Bill
• Increased compensation for
major oil spills from oil tanker in
NZ waters ($377m to $1.4b)
• Limitation of liability for wreck
removal, cargo removal and
damage from hazardous
substances/noxious substances?
 Select Committee says no…

Hazardous Substances Regulations
• Changes to regulator:
 EPA = approval and classification of hazardous substances
 WorkSafe = administration and enforcement of workplace requirements
• New Health and Safety at Work (Hazardous Substances) Regulations come
into force on 1 December 2017:
 Not wholesale change, but timely to review your processes
• Hazardous substances on board foreign flagged vessels and foreign
crewed aircraft also required to comply with new Regulations

Commerce Act changes
• International shipping currently exempt from Commerce Act
• Commerce (Cartels and Other Matters) Amendment Bill
removes special treatment
 subject to Commerce Act (with new cartel prohibition) after 2 year
transitional period
• Widely criticised: Does collaborative activity exemption apply
to vessel sharing agreements?
 Obtaining clearance = delay and cost

Commerce Act changes
SOP 343 (5 July): new targeted ‘block exemption’ from s27
(substantially lessening competition) and new cartel provisions:
• Co-operation on regular, scheduled international liner shipping
services permitted
• Specified activities only (co-ordination and sharing of vessel capacity
or equipment and ship pooling to create a network)
• Price fixing, unreasonable capacity limitation, market allocation,
sharing of commercially sensitive information about independent
services to shippers, will not be exempt

Other changes – Maritime Rules
Maritime Labour Convention (from March 2017)
• Applies to:
 New Zealand-flagged ships and foreign flagged ships
visiting NZ ports
 Commercial ships over 200 gross tonnage operating outside
inshore limits
• Minimum standards for seafarers re employment conditions;
accommodation; recreational facilities; food and catering;
health care; medical care; welfare; and social security

Other changes – Maritime Rules
• New Part 300: Ballast Water Management (not yet in force)
• Recently completed consultations (June 2017)
 IMO Conventions and Codes, including changes to codes
for ships carrying solid bulk cargoes, changes to codes
for ships carrying dangerous chemicals in bulk
 Part 40 (ship design, construction, equipment)

Other changes…
• Carriage of Goods Act Part 5, Subpart 1 of Contract
and Commercial Law Act (1 September 2017)
• ILO Code of Practice on Safety and Health in Ports (March
2017):
 Will it be adopted by WorkSafe?
 c.f. NZ Code of Practice for Health and Safety in Port
Operations (last updated May 2004!)

New technologies: EV
• Government EV program – 64,000 vehicle goal by end
2021
• Energy Innovation (Electric Vehicle and Other Matters)
Amendment Act 2017 (June 2017):
 RUC exemption for heavy vehicles (>3,500kg gross
mass) until 2% of heavy vehicle fleet
 EVs can access bus and high-occupancy vehicle lanes
• MV register to be updated to record EVs (to enable
enforcement of special vehicle lane usage)

New technologies: AV
• Government looking to encourage testing of semi and fully
autonomous vehicles and other Intelligent Transport Systems
technology in NZ
• Driverless trucks are coming…?
• NZ law does not require a driver to be present, but issues could
arise about fault if they crash
• MoT working on clarifying legal position for AV testing (but will not
consider liability for general use)
• No immediate plans for AV specific laws – NZ will monitor
international developments and follow

Future change: Government priorities
• Regulation 2025 – what will NZ look like???
 MoT – “difficult to predict”
• GPS 2018:
 Infrastructure for high growth urban areas
 Support regional freight and tourism movements
 Improving how freight moves by high quality and resilient
connections
 Encourage investment in innovative or new technology
 One-transport system approach – multi modal with seamless
connection

Freight, Ports, Shipping and Supply Chain Futures Summit

Recommended

Recommended

More Related Content

Similar to Freight, Ports, Shipping and Supply Chain Futures Summit

Similar to Freight, Ports, Shipping and Supply Chain Futures Summit (20)

Recently uploaded

Recently uploaded (20)

Freight, Ports, Shipping and Supply Chain Futures Summit