News Blog
COS Weekly News - 3 May 2013

COS News – Week ending 3 May 2013
Issue No. 258
EMISSIONS CONTROL AREA – CANADIAN ENFORCEMENT
Transport Canada is expected to announce the implementation of the Emission Control Area on Wednesday next week.
REVISED EMAIL FOR 96 HOUR PAIR REPORTS
Transport Canada has requested that the Pre-Arrival Information Reports be directed to a new email address: This e-mail address is being protected from spambots. You need JavaScript enabled to view it . This will provide clients with direct access to TC Marine Security inspectors located at the Marine Security Operations Centre.
CHAMBER LAUNCHES NEW WEB SITE – SAFE SHIPPING BC
On May 1st we launched a new educational website at www.safeshippingbc.ca. The objective of the site is to answer questions related to the governance, safety and performance of shipping. Please let us have your feedback. In support of this we have also created a Facebook page entitled Safe Shipping BC, please feel free to like us.
GRIEG STAR CHRISTENS THE MV STAR LINDESNES
Grieg Star christened Hull No. 8077 at the Port of Mobile in Alabama. Grethe Hoyvik, vice president and general manager of Grieg Star, Atlanta, served as sponsor of the ship, and with one elegant swing of the axe, christened the Star Lindesnes. The Star Lindesnes is the third vessel in Grieg Star’s L Class, the newest generation in the company’s highly specialized open-hatch general cargo fleet. The L Class newbuilding program includes 10 vessels for delivery during 2012-2014, and also includes two new conventional Supramax bulk ships. Grieg Star’s newbuilding investment is at about US$560 million.
Government News
UPDATE RE CBSA CONVEYANCE ARRIVAL CERTIFICATION MESSAGE
This is to advise air and marine carrier clients that the Canada Border Services Agency (CBSA) will deploy system functionality for the transmission of the Conveyance Arrival Certification Message (CACM) and associated notification transactions under the Advance Commercial Information (ACI) program on June 9, 2013.
The testing environment will continue to be available for air and marine clients who have registered, or have yet to register, for the CACM process to ensure clients’ readiness once systems are deployed.
Carriers or their authorized service provider who have not yet registered with the CBSA’s Electronic Commerce Unit (ECU) to conduct client testing of the new arrival message and notification transactions are strongly encouraged to do so by contacting the ECU at:
Phone
1-888-957-7224 option 1 (calls within Canada and the U.S.)
1-613-946-0762 (for overseas callers between 08:00 to 17:00 ET)
1-613-946-0763 (for overseas callers between 17:00 to 08:00 ET)
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Thank you again for your patience in this matter. If you have questions on eManifest functionality for freight forwarders also being deployed on June 9, 2013, or on air and marine conveyance arrivals, please contact the eManifest Help Desk at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
LARGE SHIPMENT OF PRECURSOR CHEMICALS SEIZED BY CBSA
The Canada Border Services Agency (CBSA) announced that officers at the Vancouver Container Examination Facility (CEF) seized over 2,000 litres of precursor chemicals. On April 19, CBSA officers examined a shipment, declared as soy sauce, from China. Upon further investigation of the 384 pails in the marine container, CBSA officers noticed discrepancies in the load and conducted a full examination of the entire shipment.
During the examination, officers found that the contents of 139 of the 384 pails were not consistent with the declaration. Samples were taken and sent to the CBSA Laboratory for identification. The laboratory results later confirmed that the pails actually contained Hypophosphorous Acid, a precursor chemical used in the production of methamphetamine.
To import Class A precursor chemicals listed in the Controlled Drugs and Substances Act, a Health Canada permit is required. As the importer did not have a permit, and did not declare the chemicals in this shipment, the 139 pails, containing 2,627 litres of Hypophosphorous Acid, were seized with no terms of release.
SEARCH AND RESCUE CREWS TRAIN NEAR PRINCE RUPERT
Members of the Royal Canadian Navy and Royal Canadian Air Force joined members of the Canadian Coast Guard (CCG), United States Coast Guard (USCG) and United States Air Force (USAF) for a Search and Rescue Exercise held from April 29 to May 1 near Prince Rupert, British Columbia. The Canada-United States Hecate Strait Search and Rescue Exercise allowed Canadian and American search and rescue crews to practice working together in order to respond to an off-shore vessel in distress. The challenging and realistic training involved approximately 50 members of the Canadian Armed Forces, 25 CCG members, as well as 30 USCG and 30 USAF personnel.
The Government of Canada has announced new initiatives to improve search and rescue (SAR) capabilities, including a quadrennial review led by the Minister of National Defence, optimization of search and rescue readiness postures, improved search and rescue asset management system and $16.2 million for the development of satellite-aided search and rescue.
ROYAL CANADIAN NAVY ADOPTS NEW NAVAL ENSIGN

The Honourable Peter MacKay, Minister of National Defence, announced the adoption of a new Canadian Naval Ensign to be worn by Her Majesty’s Canadian Ships, naval vessels, Naval Reserve Divisions, and other designated units starting on Sunday, May 5. There are now two distinct symbols that signal Canadian nationality onboard Canadian warships and other naval vessels. The first is the Canadian Naval Ensign, which is worn at the masthead while at sea, or at the stern when alongside, moored, or at anchor. The second is the National Flag, also known as the Maple Leaf Flag, which is worn as the Naval Jack at the bow when the ship is alongside, moored, or at anchor. Additionally, while not specifically required by law or maritime custom, Canadian warships have historically displayed a Maple Leaf badge on or near the main ship’s funnel. The change will most importantly distinguish Canadian warships from other Canadian flagged vessels. It will also promote and strengthen the Canadian naval identity, while underscoring the unique commitment of our men and women at sea who serve as members of the Canadian Armed Forces in Royal Canadian Navy ships and vessels. The new Canadian Naval Ensign will now take rightful prominence as a significant national symbol for years to come.
NEW COAST GUARD VESSEL ACCEPTED BY DFO MINISTER ASHFIELD
The Honourable Keith Ashfield, Minister of Fisheries and Oceans and Minister responsible for the Atlantic Gateway, announced the acceptance of the fourth of the Canadian Coast Guard’s new Hero class vessels, the CCGS Constable Carrière. The Hero Class vessels are 43 metres in length with a displacement of 257 tonnes and a top speed of 25 knots.
International News
ATLANTIC CARTIER SUFFERS FIRE IN HAMBURG
The ACL container / ro-ro vessel Atlantic Cartier suffered a major fire in one of her car decks whilst alongside in Hamburg this week. The fire is reported to have enveloped around 70 cars destined for the US. While tugs were assigned to spray cooling water on the outer hull, around 200 local firemen were engaged in fighting the fire from within the vessel, an operation complicated by fears for the vessel’s stability. By the time the fire was extinguished in the afternoon May 2, some 12 cars were destroyed. As a precaution, several containers with hazardous materials inside were discharged during the firefighting operation. ACL trades exclusively between Europe and the East coasts of Canada and the US.
COST OF AUSTRALIAN LNG PROJECTS UNDER THE MICROSCOPE

Australia’s Browse LNG project (left) – a floating replacement is under consideration and Exxon’s proposed Scarborough floating LNG (center)
Runaway labour costs are driving a review of Australia’s LNG export development strategy with more developers looking to follow Shell’s $12 billion Prelude model with their floating liquefaction plant as an alternative to hugely expensive land based developments. ExxonMobil Corp. has announced plans to build a $15 billion floating plant even larger than Prelude which when completed in 2017 would already be the world’s largest floating structure. Having abandoned its Browse landside project (concept picture above), Woodside Petroleum Ltd. is also said to be considering a similar option in addition to the company’s plans to develop the Sunrise floating LNG venture in the Timor Sea.
Meanwhile it has been announced that French energy company GDF Suez will sub-charter the 145,000-cbm GDF Suez Cape Ann (above right) to China National Offshore Oil Corporation (CNOOC) for a five year period to operate as a Floating Storage and Regasification Unit (FRSU) off the port of Nanjiang. The vessel is currently undergoing conversion in Singapore. Global demand for LNG was around 240 million tons last year and this is forecast to rise to 400 million tons a year by 2020.
IS THE NEXT SHIPPING CRISIS ALREADY TAKING SHAPE?
Despite continuing basement level markets, Capesize new build orders in the first four months of 2013 have already exceeded the total for 2012 with 57 Capesizes ordered to date compared to 33 for the whole of 2012. In the container sector, China Shipping this week disclosed that is in the final stages of negotiations for an order for five 18,000 TEU vessels at a South Korean yard. Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering are all believed to be in the running. Speculation is that the work hungry yards will come in with bids of around $140 million per vessels compared to the $190 million contracted by Maersk for similar sized high specification vessels in 2011.
PROJECT TO RAISE BAYONNE BRIDGE
The need to fix the problem of air draft under New York’s 1931 built Bayonne Bridge has long assumed high priority as a U.S. infrastructure project. The 151 foot restriction has for some time impacted access for larger container vessels to service terminals in New York and New Jersey leading to the announcement in 2010 of a “Raise the Roadway” project. The proposal is to raise the bridge by 64 feet to provide for a future air draft of 215 feet. Last week, the Port Authority's Board of Commissioners awarded a $743.3 million contract to undertake the work which will also create 12 foot wide lanes, including a bicycle and pedestrian lane, and install a median divider and shoulders. It has been estimated that the project which will complete in 2016 will generate a $3.3 billion national benefit.
IMPATIENCE GROWING WITH HKG STRIKE
Mr. Li Ka-Shing, owner of Hong Kong International Terminals has moved to end a four-week strike affecting his terminals by, hiring replacement workers and demanding that protesters vacate his company’s headquarters in the city’s Central District. The replacement workers combined with the return of some strikers to work has cut the waiting time for ships to an average 20-25 hours, compared with about 60 hours when the strike was at its peak. HIT this week claimed to be operating at about 90% of capacity. The Union of Hong Kong Dockers (UHKD) reports that some 530 workers are on strike, including more than 80% of the checkers and lashers in the terminals. Attempts by the Hong Kong government to mediate in the dispute have not been successful
KDB TO THE RESCUE OF STX GROUP
The Korean Development Bank (KDB) is poised to rescue the STX Group as a going concern. STX Group has been actively trying to sell assets to reduce its debt burden of around $10bn, much of which matures this year. STX Offshore & Shipbuilding was last month unsuccessful in selling its stake in STX Pan Ocean forcing creditor banks to provide KRW 600bn in emergency loans while a restructuring plan is finalized. STX OSV has already been sold off to Italy's Fincantieri but the group is said to be also considering a plan to sell STX France and STX Finland to raise around $1.8 billion.
ALGOMA PREVAILS IN LONDON OVER CANCELLED NEW BUILDS
A London tribunal has concluded that Canada’s Algoma Tankers was legally entitled to walk away from a $91 million contract with Jiangxi Jiangzhou Union Shipbuilding for three 16,500 DWT products carriers following lengthy delays in construction. The order was placed in 2007, cancelled in 2010 and went to arbitration in 2012. Algoma will now seek to recapture its down payment.
SOMALI PIRATES RELEASE ABDUCTED CREW MEMBERS
Following 28 months of captivity, Somali pirates have this week released six crew members previously abducted from the Danish general cargo vessel MV Leopard. Pirates attacked the vessel in January 2011 but after failing to take control they kidnapped the six crew members being two Danes and four Filipinos. Their time in captivity was described as “inhuman and exhausting” a fact well known following the release of disturbing video footage six months into their captivity. A ransom described as “several millions” was paid to secure their release. Somali pirates still hold 2 vessels and around 54 hostages.
REVISED ATHENS CONVENTION SET FOR 2014 DEBUT
Having achieved the required 10 ratifications, the Athens Convention relating to the Carriage of Passengers and their Luggage by Sea 2002, which substantially raises the limits of liability for ship passengers’ death or personal injury, is to enter into force on April 23, 2014. The 2002 protocol revises and updates the 1974 convention, which established a regime of liability for passengers killed or injured at sea. Significant fines will also apply where a vessel is either uninsured or a certificate is not obtained along with a direct right of action for each passenger against a vessel’s insurer up to 250,000SDR.
JONES ACT PERSPECTIVE
An interesting video was released this week wherein Mr. Ken Schoolland, Professor of Economics at Hawaii Pacific University speaks to the impact of the Jones Act on the economy of Hawaii http://www.youtube.com/watch?v=UhQ4d8g3tHc
Market Update
Other than Capesizes showing a pulse, this was a week watching paint dry as the Baltic Dry Index was again steady as she goes, closing on Thursday at 873 points compared to 872 points last week and 885 points the week previously.
Cape Size Panamax Supramax
Index 1322 1010 880
Last week 1220 1121 904
Spot time charter $5,400/day $8,100/day $9,200/day
One week ago $4,300/day $8,900/day $9,500/day
Upcoming Events
NOTHING TRIVAL ABOUT CBP’S NEW “RESIDUE” RULES
May 7 – The National Industrial Transportation League will presents a webinar on Tuesday, May 7, 2013 11:00 a.m. - 1:15 p.m. PDT on CBP’s new requirements for residual cargo. Based on a 2009 legal ruling, US Customs and Border Protection (CBP) will soon put into place new requirements making an importer of record responsible for manifesting residual cargoes that remain in containers, trucks, railcars and tanks that enter and are released into US commerce. In advance of the new requirements, CBP will conduct a "residue pilot" to test the new program for implementing the ruling without intentionally placing significant burdens on transportation providers' costs or US trade. CBP Branch Chief Amy Hatfield and CBP Trade Liaison Michael Schreffer will jointly conduct a League webinar detailing the new pilot program and how transportation and trade will be impacted by the new manifest requirements. The program is free but attendees must preregister prior to 11:00 a.m. PDT on May 7 at the following link: https://www2.gotomeeting.com/register/616176834
BUSINESS OF SHIPPING COURSE
May 9 – The next full day course for the Business of Shipping will be on May 9th at the Vancouver Club. Topics include an overview of the marine industry, port governance, ship source oil pollution and response, towage and salvage, marine pilotage, and shipbuilding prospects. To register see the attached form.
NAUTICAL INSTITUTE BC BRANCH – PASSENGER VESSEL SAFETY CONFERENCE
May 9-10 – The Nautical Institute will host a two-day conference on passenger vessel safety, recent innovations and programs for continuous improvement. For more information or to register visit: http://www.nibcconference2013.com/
PLIMSOLL CLUB GOLF TOURNAMENT
May 14 – The Plimsoll Club will host its annual golf tournament at the University Golf Club on Tuesday, May 14, 2013 – shotgun start at 13:15 hrs. Please see the attached information and booking form for more information.
VMAA PRESENTS ‘LINER TERMS VS. OTHER TERMS OF CARRIAGE’
May 16 – Save the date for the Vancouver Maritime Arbitrators Association’s next lunch seminar on Liner Terms versus other Terms of Carriage. Details to follow.
COUNCIL OF MARINE CARRIERS TOWBOAT CONFERENCE 2013
May 23 – The 2013 Conference will be held from May 23rd through to the 25th at the Victoria Conference Centre at The Fairmont Express Hotel. For more information visit: http://www.comc.cc/conf/20Conf.html.
GREEN TECH 2013 ANNUAL CONFERENCE
May 29-31– Save the date for Green Marine's annual conference on green technologies and innovation for marine transportation in Vancouver for the first time with the IMO's environmental chair as keynote speaker.
BUSINESS OF SHIPPING COURSE
Jun 6 – COS is now accepting registration for the half-day course on Laytime and Letters of Indemnity scheduled for June 6th with guest speakers Mike Jekyll and Peter Swanson. See attached for information.
DAY OF THE SEAFARER BANQUET
Jun 26 – Save the date for the Mission to Seafarers fundraising banquet scheduled for June 26th at the Stanley Park Pavilion. Details to follow.
May 8 COS Ship & Port Operations Committee @ 11:30
May 9 Business of Shipping Full Day Course
May 9 Nautical Institute – Passenger Vessel Safety Conference
May 14 Plimsoll Club Golf Tournament
May 16 VMAA Lunch Seminar
May 17 COS Navigation & Pilotage Committee
May 17 WMCC Annual General Meeting
May 22 COS Liner Committee Meeting @ 10:00
May 23 VMAA Board Meeting
May 23 Council of Marine Carriers Towboat Conference 2013
May 29 WMCC PACMAR / NANS Meeting
May 29 Green Tech 2013 Annual Conference
May 30 Transportation of Dangerous Goods Course (tbc)
Jun 3 BC Marine Vessel Air Quality Work Group Meeting @ 09:00
Jun 5 COS Board of Directors Meeting @ 11:30
Jun 6 Business of Shipping – Half Day Session
Jun 25 Day of the Seafarer
Jun 26 Mission to Seafarers’ Seafarer Banquet
Ship of the Week
Pacific Egret – nuclear fuel carrier
Pacific Egret is a INF Class 3 nuclear waste carrier. The vessel can carry in her four cargo holds up to 20 nuclear flasks used to contain spent fuel, highly active waste or recycled MOx fuel assemblies. Extensive safety features include a double hull around the cargo holds to give a “crumple zone” in the event of a collision.
Built in 2010 by Mitsui Engineering and Shipbuilding Tamano shipyard, Japan
Owned by Pacific Nuclear Transport Limited (PNTL)
LOA 103.9M
Beam 17.3m
GRT 6776 tons
DWT 4408 MT
Service speed 14 knots
Sister ships: Pacific Heron and Pacific Grebe
Pacific Egret left the port of Cherbourg in northern France last week with a shipment of radioactive nuclear fuel for Japan, the first such shipment since the Fukushima disaster. The shipment of mixed oxide fuel (MOX) is controversial in Japan, where public opposition to nuclear power and reactor restarts remains strong after the March 11, 2011 disaster. France’s state-owned nuclear group, whose activities range from uranium mining and enrichment to reactors and waste recycling, advised that the shipment will be routed via the Cape of Good Hope and then through the south-west of the Pacific Ocean. Similar cargoes are soon to be shipped on Pacific Egret’s sister ships Pacific Heron and Pacific Grebe.
Having recently returned to power, the Liberal Democratic Party of Japan has said it will reassess the previous government’s decision to abandon atomic power after Fukushima. The MOX shipment is destined for Kansai Electric Power Co’s Takahama nuclear plant west of Tokyo (above right) and since MOX contains around 7% plutonium, it is perceived as a national security threat requiring special precautions to be taken during transportation. The Fukushima crisis prompted the gradual shutdown of all Japan’s 50 nuclear reactors until there were none left operating by May 2012. The two reactors at Kansai Electric’s Ohi plant near Takahama are the only ones to be restarted so far.
COS Weekly News - 3 May 2013

COS News – Week ending 3 May 2013
Issue No. 258
EMISSIONS CONTROL AREA – CANADIAN ENFORCEMENT
Transport Canada is expected to announce the implementation of the Emission Control Area on Wednesday next week.
REVISED EMAIL FOR 96 HOUR PAIR REPORTS
Transport Canada has requested that the Pre-Arrival Information Reports be directed to a new email address: This e-mail address is being protected from spambots. You need JavaScript enabled to view it . This will provide clients with direct access to TC Marine Security inspectors located at the Marine Security Operations Centre.
CHAMBER LAUNCHES NEW WEB SITE – SAFE SHIPPING BC
On May 1st we launched a new educational website at www.safeshippingbc.ca. The objective of the site is to answer questions related to the governance, safety and performance of shipping. Please let us have your feedback. In support of this we have also created a Facebook page entitled Safe Shipping BC, please feel free to like us.
GRIEG STAR CHRISTENS THE MV STAR LINDESNES
Grieg Star christened Hull No. 8077 at the Port of Mobile in Alabama. Grethe Hoyvik, vice president and general manager of Grieg Star, Atlanta, served as sponsor of the ship, and with one elegant swing of the axe, christened the Star Lindesnes. The Star Lindesnes is the third vessel in Grieg Star’s L Class, the newest generation in the company’s highly specialized open-hatch general cargo fleet. The L Class newbuilding program includes 10 vessels for delivery during 2012-2014, and also includes two new conventional Supramax bulk ships. Grieg Star’s newbuilding investment is at about US$560 million.
Government News
UPDATE RE CBSA CONVEYANCE ARRIVAL CERTIFICATION MESSAGE
This is to advise air and marine carrier clients that the Canada Border Services Agency (CBSA) will deploy system functionality for the transmission of the Conveyance Arrival Certification Message (CACM) and associated notification transactions under the Advance Commercial Information (ACI) program on June 9, 2013.
The testing environment will continue to be available for air and marine clients who have registered, or have yet to register, for the CACM process to ensure clients’ readiness once systems are deployed.
Carriers or their authorized service provider who have not yet registered with the CBSA’s Electronic Commerce Unit (ECU) to conduct client testing of the new arrival message and notification transactions are strongly encouraged to do so by contacting the ECU at:
Phone
1-888-957-7224 option 1 (calls within Canada and the U.S.)
1-613-946-0762 (for overseas callers between 08:00 to 17:00 ET)
1-613-946-0763 (for overseas callers between 17:00 to 08:00 ET)
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Thank you again for your patience in this matter. If you have questions on eManifest functionality for freight forwarders also being deployed on June 9, 2013, or on air and marine conveyance arrivals, please contact the eManifest Help Desk at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
LARGE SHIPMENT OF PRECURSOR CHEMICALS SEIZED BY CBSA
The Canada Border Services Agency (CBSA) announced that officers at the Vancouver Container Examination Facility (CEF) seized over 2,000 litres of precursor chemicals. On April 19, CBSA officers examined a shipment, declared as soy sauce, from China. Upon further investigation of the 384 pails in the marine container, CBSA officers noticed discrepancies in the load and conducted a full examination of the entire shipment.
During the examination, officers found that the contents of 139 of the 384 pails were not consistent with the declaration. Samples were taken and sent to the CBSA Laboratory for identification. The laboratory results later confirmed that the pails actually contained Hypophosphorous Acid, a precursor chemical used in the production of methamphetamine.
To import Class A precursor chemicals listed in the Controlled Drugs and Substances Act, a Health Canada permit is required. As the importer did not have a permit, and did not declare the chemicals in this shipment, the 139 pails, containing 2,627 litres of Hypophosphorous Acid, were seized with no terms of release.
SEARCH AND RESCUE CREWS TRAIN NEAR PRINCE RUPERT
Members of the Royal Canadian Navy and Royal Canadian Air Force joined members of the Canadian Coast Guard (CCG), United States Coast Guard (USCG) and United States Air Force (USAF) for a Search and Rescue Exercise held from April 29 to May 1 near Prince Rupert, British Columbia. The Canada-United States Hecate Strait Search and Rescue Exercise allowed Canadian and American search and rescue crews to practice working together in order to respond to an off-shore vessel in distress. The challenging and realistic training involved approximately 50 members of the Canadian Armed Forces, 25 CCG members, as well as 30 USCG and 30 USAF personnel.
The Government of Canada has announced new initiatives to improve search and rescue (SAR) capabilities, including a quadrennial review led by the Minister of National Defence, optimization of search and rescue readiness postures, improved search and rescue asset management system and $16.2 million for the development of satellite-aided search and rescue.
ROYAL CANADIAN NAVY ADOPTS NEW NAVAL ENSIGN

The Honourable Peter MacKay, Minister of National Defence, announced the adoption of a new Canadian Naval Ensign to be worn by Her Majesty’s Canadian Ships, naval vessels, Naval Reserve Divisions, and other designated units starting on Sunday, May 5. There are now two distinct symbols that signal Canadian nationality onboard Canadian warships and other naval vessels. The first is the Canadian Naval Ensign, which is worn at the masthead while at sea, or at the stern when alongside, moored, or at anchor. The second is the National Flag, also known as the Maple Leaf Flag, which is worn as the Naval Jack at the bow when the ship is alongside, moored, or at anchor. Additionally, while not specifically required by law or maritime custom, Canadian warships have historically displayed a Maple Leaf badge on or near the main ship’s funnel. The change will most importantly distinguish Canadian warships from other Canadian flagged vessels. It will also promote and strengthen the Canadian naval identity, while underscoring the unique commitment of our men and women at sea who serve as members of the Canadian Armed Forces in Royal Canadian Navy ships and vessels. The new Canadian Naval Ensign will now take rightful prominence as a significant national symbol for years to come.
NEW COAST GUARD VESSEL ACCEPTED BY DFO MINISTER ASHFIELD
The Honourable Keith Ashfield, Minister of Fisheries and Oceans and Minister responsible for the Atlantic Gateway, announced the acceptance of the fourth of the Canadian Coast Guard’s new Hero class vessels, the CCGS Constable Carrière. The Hero Class vessels are 43 metres in length with a displacement of 257 tonnes and a top speed of 25 knots.
International News
ATLANTIC CARTIER SUFFERS FIRE IN HAMBURG
The ACL container / ro-ro vessel Atlantic Cartier suffered a major fire in one of her car decks whilst alongside in Hamburg this week. The fire is reported to have enveloped around 70 cars destined for the US. While tugs were assigned to spray cooling water on the outer hull, around 200 local firemen were engaged in fighting the fire from within the vessel, an operation complicated by fears for the vessel’s stability. By the time the fire was extinguished in the afternoon May 2, some 12 cars were destroyed. As a precaution, several containers with hazardous materials inside were discharged during the firefighting operation. ACL trades exclusively between Europe and the East coasts of Canada and the US.
COST OF AUSTRALIAN LNG PROJECTS UNDER THE MICROSCOPE

Australia’s Browse LNG project (left) – a floating replacement is under consideration and Exxon’s proposed Scarborough floating LNG (center)
Runaway labour costs are driving a review of Australia’s LNG export development strategy with more developers looking to follow Shell’s $12 billion Prelude model with their floating liquefaction plant as an alternative to hugely expensive land based developments. ExxonMobil Corp. has announced plans to build a $15 billion floating plant even larger than Prelude which when completed in 2017 would already be the world’s largest floating structure. Having abandoned its Browse landside project (concept picture above), Woodside Petroleum Ltd. is also said to be considering a similar option in addition to the company’s plans to develop the Sunrise floating LNG venture in the Timor Sea.
Meanwhile it has been announced that French energy company GDF Suez will sub-charter the 145,000-cbm GDF Suez Cape Ann (above right) to China National Offshore Oil Corporation (CNOOC) for a five year period to operate as a Floating Storage and Regasification Unit (FRSU) off the port of Nanjiang. The vessel is currently undergoing conversion in Singapore. Global demand for LNG was around 240 million tons last year and this is forecast to rise to 400 million tons a year by 2020.
IS THE NEXT SHIPPING CRISIS ALREADY TAKING SHAPE?
Despite continuing basement level markets, Capesize new build orders in the first four months of 2013 have already exceeded the total for 2012 with 57 Capesizes ordered to date compared to 33 for the whole of 2012. In the container sector, China Shipping this week disclosed that is in the final stages of negotiations for an order for five 18,000 TEU vessels at a South Korean yard. Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering are all believed to be in the running. Speculation is that the work hungry yards will come in with bids of around $140 million per vessels compared to the $190 million contracted by Maersk for similar sized high specification vessels in 2011.
PROJECT TO RAISE BAYONNE BRIDGE
The need to fix the problem of air draft under New York’s 1931 built Bayonne Bridge has long assumed high priority as a U.S. infrastructure project. The 151 foot restriction has for some time impacted access for larger container vessels to service terminals in New York and New Jersey leading to the announcement in 2010 of a “Raise the Roadway” project. The proposal is to raise the bridge by 64 feet to provide for a future air draft of 215 feet. Last week, the Port Authority's Board of Commissioners awarded a $743.3 million contract to undertake the work which will also create 12 foot wide lanes, including a bicycle and pedestrian lane, and install a median divider and shoulders. It has been estimated that the project which will complete in 2016 will generate a $3.3 billion national benefit.
IMPATIENCE GROWING WITH HKG STRIKE
Mr. Li Ka-Shing, owner of Hong Kong International Terminals has moved to end a four-week strike affecting his terminals by, hiring replacement workers and demanding that protesters vacate his company’s headquarters in the city’s Central District. The replacement workers combined with the return of some strikers to work has cut the waiting time for ships to an average 20-25 hours, compared with about 60 hours when the strike was at its peak. HIT this week claimed to be operating at about 90% of capacity. The Union of Hong Kong Dockers (UHKD) reports that some 530 workers are on strike, including more than 80% of the checkers and lashers in the terminals. Attempts by the Hong Kong government to mediate in the dispute have not been successful
KDB TO THE RESCUE OF STX GROUP
The Korean Development Bank (KDB) is poised to rescue the STX Group as a going concern. STX Group has been actively trying to sell assets to reduce its debt burden of around $10bn, much of which matures this year. STX Offshore & Shipbuilding was last month unsuccessful in selling its stake in STX Pan Ocean forcing creditor banks to provide KRW 600bn in emergency loans while a restructuring plan is finalized. STX OSV has already been sold off to Italy's Fincantieri but the group is said to be also considering a plan to sell STX France and STX Finland to raise around $1.8 billion.
ALGOMA PREVAILS IN LONDON OVER CANCELLED NEW BUILDS
A London tribunal has concluded that Canada’s Algoma Tankers was legally entitled to walk away from a $91 million contract with Jiangxi Jiangzhou Union Shipbuilding for three 16,500 DWT products carriers following lengthy delays in construction. The order was placed in 2007, cancelled in 2010 and went to arbitration in 2012. Algoma will now seek to recapture its down payment.
SOMALI PIRATES RELEASE ABDUCTED CREW MEMBERS
Following 28 months of captivity, Somali pirates have this week released six crew members previously abducted from the Danish general cargo vessel MV Leopard. Pirates attacked the vessel in January 2011 but after failing to take control they kidnapped the six crew members being two Danes and four Filipinos. Their time in captivity was described as “inhuman and exhausting” a fact well known following the release of disturbing video footage six months into their captivity. A ransom described as “several millions” was paid to secure their release. Somali pirates still hold 2 vessels and around 54 hostages.
REVISED ATHENS CONVENTION SET FOR 2014 DEBUT
Having achieved the required 10 ratifications, the Athens Convention relating to the Carriage of Passengers and their Luggage by Sea 2002, which substantially raises the limits of liability for ship passengers’ death or personal injury, is to enter into force on April 23, 2014. The 2002 protocol revises and updates the 1974 convention, which established a regime of liability for passengers killed or injured at sea. Significant fines will also apply where a vessel is either uninsured or a certificate is not obtained along with a direct right of action for each passenger against a vessel’s insurer up to 250,000SDR.
JONES ACT PERSPECTIVE
An interesting video was released this week wherein Mr. Ken Schoolland, Professor of Economics at Hawaii Pacific University speaks to the impact of the Jones Act on the economy of Hawaii http://www.youtube.com/watch?v=UhQ4d8g3tHc
Market Update
Other than Capesizes showing a pulse, this was a week watching paint dry as the Baltic Dry Index was again steady as she goes, closing on Thursday at 873 points compared to 872 points last week and 885 points the week previously.
Cape Size Panamax Supramax
Index 1322 1010 880
Last week 1220 1121 904
Spot time charter $5,400/day $8,100/day $9,200/day
One week ago $4,300/day $8,900/day $9,500/day
Upcoming Events
NOTHING TRIVAL ABOUT CBP’S NEW “RESIDUE” RULES
May 7 – The National Industrial Transportation League will presents a webinar on Tuesday, May 7, 2013 11:00 a.m. - 1:15 p.m. PDT on CBP’s new requirements for residual cargo. Based on a 2009 legal ruling, US Customs and Border Protection (CBP) will soon put into place new requirements making an importer of record responsible for manifesting residual cargoes that remain in containers, trucks, railcars and tanks that enter and are released into US commerce. In advance of the new requirements, CBP will conduct a "residue pilot" to test the new program for implementing the ruling without intentionally placing significant burdens on transportation providers' costs or US trade. CBP Branch Chief Amy Hatfield and CBP Trade Liaison Michael Schreffer will jointly conduct a League webinar detailing the new pilot program and how transportation and trade will be impacted by the new manifest requirements. The program is free but attendees must preregister prior to 11:00 a.m. PDT on May 7 at the following link: https://www2.gotomeeting.com/register/616176834
BUSINESS OF SHIPPING COURSE
May 9 – The next full day course for the Business of Shipping will be on May 9th at the Vancouver Club. Topics include an overview of the marine industry, port governance, ship source oil pollution and response, towage and salvage, marine pilotage, and shipbuilding prospects. To register see the attached form.
NAUTICAL INSTITUTE BC BRANCH – PASSENGER VESSEL SAFETY CONFERENCE
May 9-10 – The Nautical Institute will host a two-day conference on passenger vessel safety, recent innovations and programs for continuous improvement. For more information or to register visit: http://www.nibcconference2013.com/
PLIMSOLL CLUB GOLF TOURNAMENT
May 14 – The Plimsoll Club will host its annual golf tournament at the University Golf Club on Tuesday, May 14, 2013 – shotgun start at 13:15 hrs. Please see the attached information and booking form for more information.
VMAA PRESENTS ‘LINER TERMS VS. OTHER TERMS OF CARRIAGE’
May 16 – Save the date for the Vancouver Maritime Arbitrators Association’s next lunch seminar on Liner Terms versus other Terms of Carriage. Details to follow.
COUNCIL OF MARINE CARRIERS TOWBOAT CONFERENCE 2013
May 23 – The 2013 Conference will be held from May 23rd through to the 25th at the Victoria Conference Centre at The Fairmont Express Hotel. For more information visit: http://www.comc.cc/conf/20Conf.html.
GREEN TECH 2013 ANNUAL CONFERENCE
May 29-31– Save the date for Green Marine's annual conference on green technologies and innovation for marine transportation in Vancouver for the first time with the IMO's environmental chair as keynote speaker.
BUSINESS OF SHIPPING COURSE
Jun 6 – COS is now accepting registration for the half-day course on Laytime and Letters of Indemnity scheduled for June 6th with guest speakers Mike Jekyll and Peter Swanson. See attached for information.
DAY OF THE SEAFARER BANQUET
Jun 26 – Save the date for the Mission to Seafarers fundraising banquet scheduled for June 26th at the Stanley Park Pavilion. Details to follow.
May 8 COS Ship & Port Operations Committee @ 11:30
May 9 Business of Shipping Full Day Course
May 9 Nautical Institute – Passenger Vessel Safety Conference
May 14 Plimsoll Club Golf Tournament
May 16 VMAA Lunch Seminar
May 17 COS Navigation & Pilotage Committee
May 17 WMCC Annual General Meeting
May 22 COS Liner Committee Meeting @ 10:00
May 23 VMAA Board Meeting
May 23 Council of Marine Carriers Towboat Conference 2013
May 29 WMCC PACMAR / NANS Meeting
May 29 Green Tech 2013 Annual Conference
May 30 Transportation of Dangerous Goods Course (tbc)
Jun 3 BC Marine Vessel Air Quality Work Group Meeting @ 09:00
Jun 5 COS Board of Directors Meeting @ 11:30
Jun 6 Business of Shipping – Half Day Session
Jun 25 Day of the Seafarer
Jun 26 Mission to Seafarers’ Seafarer Banquet
Ship of the Week
Pacific Egret – nuclear fuel carrier
Pacific Egret is a INF Class 3 nuclear waste carrier. The vessel can carry in her four cargo holds up to 20 nuclear flasks used to contain spent fuel, highly active waste or recycled MOx fuel assemblies. Extensive safety features include a double hull around the cargo holds to give a “crumple zone” in the event of a collision.
Built in 2010 by Mitsui Engineering and Shipbuilding Tamano shipyard, Japan
Owned by Pacific Nuclear Transport Limited (PNTL)
LOA 103.9M
Beam 17.3m
GRT 6776 tons
DWT 4408 MT
Service speed 14 knots
Sister ships: Pacific Heron and Pacific Grebe
Pacific Egret left the port of Cherbourg in northern France last week with a shipment of radioactive nuclear fuel for Japan, the first such shipment since the Fukushima disaster. The shipment of mixed oxide fuel (MOX) is controversial in Japan, where public opposition to nuclear power and reactor restarts remains strong after the March 11, 2011 disaster. France’s state-owned nuclear group, whose activities range from uranium mining and enrichment to reactors and waste recycling, advised that the shipment will be routed via the Cape of Good Hope and then through the south-west of the Pacific Ocean. Similar cargoes are soon to be shipped on Pacific Egret’s sister ships Pacific Heron and Pacific Grebe.
Having recently returned to power, the Liberal Democratic Party of Japan has said it will reassess the previous government’s decision to abandon atomic power after Fukushima. The MOX shipment is destined for Kansai Electric Power Co’s Takahama nuclear plant west of Tokyo (above right) and since MOX contains around 7% plutonium, it is perceived as a national security threat requiring special precautions to be taken during transportation. The Fukushima crisis prompted the gradual shutdown of all Japan’s 50 nuclear reactors until there were none left operating by May 2012. The two reactors at Kansai Electric’s Ohi plant near Takahama are the only ones to be restarted so far.
COS Weekly News - 26 April 2013

COS News - Week ending 26 April 2013
Issue No. 257
CANADIAN ECA ENFORCEMENT
Our sources suggest that there will be a Ministerial announcement on Emissions Control Area (ECA) enforcement in May - likely in Halifax. We understand that the announcement will confirm that the ECA legislation is in place, that agreements have been made to mitigate some of the impact on the cruise industry and will also be accompanied by safety bulletins including a form to be completed in the event of fuel non-availability. Nothing has thus far been released in writing and will not be until the announcement. As for enforcement, Transport Canada in the region has made it clear that there will initially be a period of soft enforcement to allow for vessels already bunkered for the current voyage but not having enough LSFO to meet the needs of the Canadian leg of the voyage
Maersk Line this week called for stronger allowable sulphur in fuel enforcement in Emissions Control Areas, in particular after the 2015 standard takes effect. According to the European Commission, Directorate-General Environment, the number of fuel samples tested reveals that sampling is on average just one out of every 1,000 ships.

Next ECA – Pearl River Delta?
CHANGES TO CBSA LONG ROOM OPERATIONS
Effective April 29th 2013 Hours of Operations for the Long Room will be 08:00–16:00.
Cash office: 08:00-15:30 - All entries submitted after 15:30 will be processed the next business day.
Manifest Desk: 08:00-15:45 – All entries submitted after 15:45 will be processed the next business day.
BUSINESS OF SHIPPING COURSE – MAY 9 (a few places remaining)
In conjunction with the Institute of Chartered Shipbrokers we have a revamped one day Business of Shipping course coming up at the Vancouver Club on May 9 featuring speakers on:
- The Global Marine Industry (Chamber of Shipping)
- Port Governance, Responsibility and Operations (Port Metro Vancouver)
- Ship Source Oil Pollution (Bernard & Partners)
- The structure and role of Western Canada Marine Response Corp (WCMRC)
- Towage and Salvage (SMIT Marine)
- Marine Pilotage (Pacific Pilotage Authority)
- Canadian Shipbuilding prospects (Seaspan)
Please see the attached registration form for more details or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it for more details.
HMCS WINNIPEG RAMMED BY US FISHING BOAT IN ESQUIMALT
The day of HMCS Winnipeg was spoiled this week when she was rammed by an American fishing boat which suffered an engine failure whilst making her way into dry dock in Esquimalt. The American Seafood Company fish factory vessel American Dynasty collided with the docked HMCS Winnipeg which has just undergone a mult-million dollar refit and mid-life upgrade. Whilst there were no serious injuries, six civilian workers on the Winnipeg were taken to hospital to be checked out. While a Transportation Safety Board investigation is underway, it has been suggested that a power failure and an unexpected engine restart on the trawler caused the collision.
This weekend Vancouver Harbour will host a number of US and Canadian navy vessels. In North Vancouver, two maritime coastal defence vessels, HMCS Saskatoon and HMCS Nanaimo, four ORCA patrol craft training vessels, along with USS Lake Champlain will be berthed at Burrard Pier, next to the Lonsdale Quay. The Destroyer Her Majesty's Canadian Ship (HMCS) Algonquin and the West Coast based Submarine HMCS Victoria will be docked at Canada Place. Guests are welcome aboard the ships for guided tours on Saturday, April 27th and more information on the tour times can be found at www.vancouverportvisit.com.
Following the Vancouver Port Visit, Canadian Fleet Pacific ships, along with Royal Canadian Air Force and Canadian Army will participate in Exercises Trident Fury and Jointex from May 3-19, 2013. The objective of these exercises is to achieve a joint, integrated, agile, and ready force that leads to success in operations at home and abroad.
FOSS MARITIME EXITS COLUMBIA RIVER
Seattle based Foss Maritime Co., one of three primary ship assist tug companies operating on the Columbia River, has sold its assets to Tidewater Barge Lines resulting in the layoff of around 60 staff. The sale will leave Tidewater to compete primarily with Shaver Transportation Co. The move has come as something of a surprise to the local marine community given the healthy level of business along the Columbia River’s ports despite continuing labour strife involving ILWU locals. Founded in the 1880’s, Foss is part of a privately owned family business that is the nation's largest coastal tug and barge company.
TESORO MULLS CRUDE OIL EXPORTS FROM VANCOUVER WASHINGTON
The Port of Vancouver Washington is the latest to be considered for west coast crude oil exports. Independent companies Tesoro and Savage have formed a joint venture to develop a terminal to handle around 120,000 bpd by late 2014 at a cost of $75m to $100m with the potential to expand to up to 280,000 bpd. Tesoro aims to build upon its success at the rail unloading facility at its Anacortes Wa. Refinery. Tesoro operates seven oil refineries in the western US coast with a combined capacity of about 675,000 bpd.
TWIC RENEWALS PROCESSING DELAYS
As we are experiencing in Canada, the five year renewals of Transportation Security Clearances (TSC) are proving to be a challenge to stay ahead of. South of the border, tens of thousands of Transportation Worker Identification Cards (TWIC) issued in 2008 and 2009 are generating a surge in renewals and the consequent extensive delays are being described as “a potential national disaster”. Some 60,000 TWICs in and around the ports of Los Angeles and Long Beach alone are required to be renewed this year and the advice is to file an application at least four months in advance of card expiration. Application for three-year extension costs $60, or a five-year renewal at $129.
LOUIS DREYFUS TO EXPAND CANOLA CRUSH
Louis Dreyfus Commodities plans to expand its Saskatchewan canola crushing plant capacity by 20 per cent, adding to a rapid industry expansion to produce vegetable oil. Several of the company's rivals have already announced expansions at their own crush plants in Canada, which is now the world's biggest grower and exporter of canola. The Yorkton will eventually reach 3,000 tonnes per day, up from the current 2,500 tonnes this summer and will be one of North America’s largest plant. Louis Dreyfus also bought back Japanese commodity trading firm Mitsui's 40 per cent interest in the Yorkton plant effective March 29, again giving Dreyfus full ownership.
In other news, PotashCorp, one of the world's largest potash producers, said Thursday it was abandoning efforts to take over Israel Chemicals Ltd. because of strong opposition in Israel. PotashCorp, which currently holds a 14 per cent stake in ICL, revealed its decision the same day it reported a stronger-than-expected 13 per cent rise in profit after renewed sales to China and India.
MDA CONTINUES TO PROVIDE OPERATIONAL SUPPORT
MacDonald, Dettwiler and Associates Ltd. (MDA) has signed contracts totaling CA$3.2 million with the Government of Canada's Department of National Defence (DND) to provide operations for the east and west coast RADARSAT-2 ground systems that support the deliverables under the Polar Epsilon project, the broad-area surveillance system delivered by MDA to DND in 2012. The Polar Epsilon surveillance system delivers space-based, day and night, all-weather maritime surveillance information of Canada's Arctic, Atlantic, and Pacific oceans and includes global high-resolution surveillance capabilities to support deployed Canadian Forces.
NEW A-1 MARINE SERVICES OFFICE IN NANAIMO
A-1 Marine Services Ltd. is expanding to Vancouver Island (Nanaimo) as of May 01/13. The new location in Nanaimo will be fully equipped with vessel repair equipment and a full stock of deck lashing components. For more information visit: www.a-1marineservices.ca.
ROBERT PACE APPOINTED VICE-CHAIRMAN OF CN
David G. A. McLean, chairman of CN announced that the Company's Board of Directors (Board) has appointed Robert Pace as its vice-chairman on April 23, 2013.
Government News
NEW D-3-1-1 POLICY ON IMPORTATION AND TRANSPORTATION OF GOODS
Canada Border Services Agency has released its updated version of Memorandum D3-1-1 yesterday. Included in the D-Memo are the new eligibility requirements for carrier codes. Unfortunately, in the definition of carrier under section 6, CBSA neglected to include our recommendation to also recognize conveyances transporting specified goods from Canada. We have been advised by CBSA that this will be corrected at some point.
NEW PROPOSED REVISIONS TO MARINE TRANSPORTATION SECURITY REGULATIONS
The latest revisions to Transport Canada’s Marine Transportation Security Regulations have been published in the Canada Gazette Part I, April 27, 2013. The proposed amendments address regulatory gaps and interpretation issues. We will be reviewing the proposed amendments through our various committees. Comments are due in 60 days.
PROPOSED AMENDMENTS TO THE DISPOSAL AT SEA REGULATIONS
Also published in the Canada Gazette Part I, April 27, 2013 for comments are proposed amendments to the Disposal at Sea Regulations. The purpose for the amendments is to increase certainty in the permitting process for disposal at sea.
International News
NORTH P&I CLUB WARNS OF BREABULK STOWAGE FROM CHINA
The Newcastle UK based North P&I Club has warned about break-bulk cargo storage problems particularly on ships loading in China. The Newcastle-based marine liability insurer says that it has experienced an increase in claims arising from the poor stowage. The full advisory can be found on http://www.nepia.com/publications/pressreleases/pandicargo/1346/
DNV-GL GROUP ANNOUNCE MERGED MANAGEMENT TEAM
Henrik Madsen
Det Norske Veritas and Germanischer Lloyd have announced the names of the new combined management team. Former DNV executives dominate the new management team with seven of the top ten positions. The new DNV-GL Group will be jointly owned by Mayfair, a company owned by the Herz family, and the DNV Foundation. DNV chief executive Henrik Madsen (picture above) becomes President and Chief Executive Officer of the new company.
WHO IS BUILDING ALL THE LNG CARRIERS?
Still with ship building, a recent slide in the value of the yen has revived interest in Japanese shipyards for new builds. The country’s yards secured 49 export orders last month, compared to just five in February. Depending on the type of vessel, the price differential with China has fallen to only 10%-15%, according to the Japan Ship Exporters Association. However, prices being contracted now match levels last seen in the mid 1980’s when adjusted for inflation.
In terms of LNG projects, the tide is turning increasingly negative for Australian projects on account of severe cost escalations. Woodside Petroleum, the proponent behind six of the seven LNG production facilities in Australia, this week called for government support to reduce development cost pressures. Only last week, cost escalations prompted the company to abandon its Browse LNG project in Western Australia when it was concluded that the project would not deliver the commercial returns required for a positive final investment decision. Australia is home to seven of the 13 LNG projects under construction globally.
GREENPEACE BOARDS AUSTRALIA BOUND COAL CARRIER
Greenpeace was at it again this week, the latest stunt being to boarded the Korean bulk carrier Meister bound for South Korea near Australia’s Great Barrier Reef in protest against the impact of the expansion of Australian coal exports on the World Heritage site. Greenpeace activists launched inflatable boats from the Rainbow Warrior and boarded the vessel to hand a letter to the Master explaining the reasons for the boarding. UNESCO is due to decide in June whether the Reef should be listed as an endangered World Heritage Site.
CONTAINER CARRIERS SUBSIDIZING PANAMA CANAL?
When it opens in 2015 the Panama Canal Mark 2 will be capable of handling ships of up to 13,000 TEU. However, it was pointed out this week that whilst container ships account for 25% of transits, they also account for 50% of the Canal’s revenues. As a consequence, it was predicted this week than an expanded Canal will not be the fundamental game changer for the US east coast ports that many are hoping for.
UNIQUE NORWEGIAN PROJECT TO CONSTRUCT MARINE TUNNEL




Norway, a country where the shipping industry is the second most important after oil and gas, is considering a proposal to create the world's first “ship tunnel” linking the Norwegian Sea to the North Sea. The unique design calls for a tunnel 1.7 km (one mile) long, 45m high and 36m wide through Stad peninsula in the municipality of Selje on Norway’s north-west coast (see map above right). Instead of carving out a slice of the landscape for a canal, engineers would drill and blast through the rock at sea level before removing the dams so the sea can flood a 12m (39ft) deep channel for ships to sail through. The Stad peninsula is notorious for heavy weather and high wind speeds. Whilst such a project has been debated for many year, the tunnel was this year included in the country’s National Transport Plan for the first time.
IMO – ATHENS CONVENTION TO ENTER FORCE IN 2014
The IMO issued a news release stating that the Athens Convention relating to the Carriage of Passengers and their Luggage by Sea, 2002, will enter into force on 23 April 2014, following the recent ratification by Belgium. Ten ratifications have been received to date. The Athens Convention substantially raises the limits of liability for the death of, or personal injury to, a passenger on a covered ship. The Convention shifts the burden of proof to the effect that, to escape liability, the carrier must demonstrate that the loss was not due to its fault or neglect.
JAPAN IMPLEMENTS NEW MARITIME POLICY GUIDELINES
Amid its ongoing territorial dispute with China, Japan unveiled a raft of steps to boost security around its remote islands, unveiling new maritime policy guidelines that expand patrol and information gathering capabilities, while beefing up cooperation between the nation’s thinly stretched coast guard and its navy.
The government’s Headquarters for Ocean Policy released its latest five-year policy guidelines, which call for “appropriately dealing” with foreign vessels that anchor or stay in territorial waters without pressing reasons.
Market Update
The Baltic Dry Index was again steady this week and closed on Thursday at 872 points compared to 885 points last week and 859 points the week previously.
Cape Size Panamax Supramax
Index 1220 1121 904
Last week 1238 1180 898
Spot time charter $4,300/day $8,900/day $9,500/day
One week ago $4,400/day $9,400/day $9,400/day
Upcoming Events
BUSINESS OF SHIPPING COURSE
May 9 – The next full day course for the Business of Shipping will be on May 9th at the Vancouver Club. Topics include an overview of the marine industry, port governance, ship source oil pollution and response, towage and salvage, marine pilotage, and shipbuilding prospects. To register see the attached form.
NAUTICAL INSTITUTE BC BRANCH – PASSENGER VESSEL SAFETY CONFERENCE
May 9-10 – The Nautical Institute will host a two-day conference on passenger vessel safety, recent innovations and programs for continuous improvement. For more information or to register visit: http://www.nibcconference2013.com/
PLIMSOLL CLUB GOLF TOURNAMENT
May 14 – The Plimsoll Club will host its annual golf tournament at the University Golf Club on Tuesday, May 14, 2013 – shotgun start at 13:15 hrs. Please see the attached information and booking form for more information.
COUNCIL OF MARINE CARRIERS TOWBOAT CONFERENCE 2013
May 23 – The 2013 Conference will be held from May 23rd through to the 25th at the Victoria Conference Centre at The Fairmont Express Hotel. For more information visit: http://www.comc.cc/conf/20Conf.html.
GREEN TECH 2013 ANNUAL CONFERENCE
May 29-31– Save the date for Green Marine's annual conference on green technologies and innovation for marine transportation in Vancouver for the first time with the IMO's environmental chair as keynote speaker.
BUSINESS OF SHIPPING COURSE
Jun 6 – COS is now accepting registration for the half-day course on Laytime and Letters of Indemnity scheduled for June 6th with guest speakers Mike Jekyll and Peter Swanson. See attached for information.
DAY OF THE SEAFARER BANQUET
Jun 26 – Save the date for the Mission to Seafarers fundraising banquet scheduled for June 26th at the Stanley Park Pavilion. Details to follow.
May 1 COS Board of Directors Meeting
May 9 Business of Shipping Full Day Course
May 9 Nautical Institute – Passenger Vessel Safety Conference
May 14 Plimsoll Club Golf Tournament
May 23 Council of Marine Carriers Towboat Conference 2013
May 29 Green Tech 2013 Annual Conference
Jun 6 Business of Shipping – Half Day Session
Ship of the Week
USS Freedom – first in a series of Littoral Combat Ships
The US Navy’s first so called Littoral Combat Ship USS Freedom (LCS 1) sailed from her homeport of San Diego on her maiden deployment March 1 headed for Singapore where she is to be based for the next eight months of service in Southeast Asia. Her first deployment is intended to demonstrate her operational capabilities which the navy describes as “fast, agile, and mission-focused”. This new class of vessel will be equipped with modular mission packages that can be configured for either surface warfare, mine countermeasures, or anti-submarine warfare. USS Freedom is to be be initially manned by the 91 members of her “Gold” crew which includes mission package personnel and an aviation detachment to operate an embarked MH-60 helicopter. Midway through Freedom’s deployment, a crew swap will be conducted with her “Blue” crew.
En route to Singapore the vessel made port visits in Hawaii, Guam and most recently in Manila before arriving in Singapore last week where she will participate in the upcoming International Maritime Defence Exhibition and Conference (IMDEX). Under a fixed-price incentive-fee contract with Lockheed Martin, the navy is being gradually allocated funding for an initial series of 10 ships in a long term program which calls for 52 ships of the three variants in this class. Marinette Marine Corporation, a Fincantieri company, will actually construct the ships in Marinette, Wisconsin. The price for each ship will vary from $440 – 460 million per ship depending on detailed specifications.
Others vessels pre-named in this class of warship are:
LCS 2 USS Independence
LCS 3 USS Fort Worth
LCS 4 USS Coronado
LCS 5 Milwaukee
LCS 6 Jackson
LCS 7 Detroit
LCS 8 Montgomery
LCS 9 Little Rock
LCS 10 Gabrielle Giffords (after the the Tuscon, Arizona, congresswoman who survived a January 2011 assassination attempt).
COS Weekly News - 19 April 2013

COS News - Week ending 19 April 2013
Issue No. 256
BUSINESS OF SHIPPING COURSE – MAY 9TH
In conjunction with the Institute of Chartered Shipbrokers we have a revamped one day Business of Shipping course coming up at the Vancouver Club on May 9 featuring speakers on:
- The Global Marine Industry (Chamber of Shipping)
- Port Governance, Responsibility and Operations (Port Metro Vancouver)
- Ship Source Oil Pollution (Bernard & Partners)
- The structure and role of Western Canada Marine Response Corp (WCMRC)
- Towage and Salvage (SMIT Marine)
- Marine Pilotage (Pacific Pilotage Authority)
- Canadian Shipbuilding prospects (Seaspan)
Please see the attached registration form for more details or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it for more details.
INTERVIEW WITH BUSINESS NEWS NETWORK
Stephen Brown was interviewed by CTV’s Business News Network this week and provided input on the federal review of tanker safety and oil spill response – view the clip at http://watch.bnn.ca/#clip908360.
PMV APPROVES RICHARDON INTERNATIONAL’S EXPANSION
Port Metro Vancouver has approved Richardson International's grain terminal 120-million expansion plans in Moodyville. Richardson will now be able to build a new bank of 54-metre (17-storey) high silos stretching 172 metres (560 feet) from the east side of the existing ones - big enough to hold an additional 80,000 tonnes of grain and oilseeds. The silos will be completed in 2015 and will include a dust capture system and new and quieter equipment. Full-time staff of 100 is expected to increase by another 40 to 50 positions.
BC FOREST COMPANIES SUFFERING FROM RAILCAR SHORTAGES
BC forest companies say they can no longer get enough railcars to move their products to market at a time when the U.S. housing market is going through a major recovery. US housing starts topped one million in March on a seasonally adjusted rate, more than double the low point hit during the recession, prompting a run on railcars that Canadian mills use to get their wood products to market. It's not just lumber that's being affected. Oriented strand board, plywood and even pulp inventories are building at the mills, forcing companies to turn to trucks - which are also in short supply.
Earlier this year, Canfor came within four hours of shutting down a pulp mill because of a railcar shortage. Pulp production is also up and because it is perishable, it cannot be stored outside, Hayes said. Canfor has erected a big-top style tent at one of its Prince George pulp mills to store inventory but so far hasn't had to use it. However, the railcar crunch is adding to costs, from additional trucking to causing ships to be delayed in port, he said. Full story.
BC’S CRUISE SEASON OFFICIALLY UNDERWAY
Yesterday Port Metro Vancouver officially opened the 2013 Alaska cruise season with a special ceremony at Canada Place recognizing Holland America Line’s 140th anniversary. With the return of the Disney Wonder to home port in Vancouver, PMV is expecting a 23 per cent growth over 2102 with more than 820,000 passengers travelling through the Port’s two cruise terminals, Canada Place and Ballantyne this year.
On Wednesday, Victoria also welcomed the MS Zaandam as the first of 210 scheduled cruise ship calls for this season. In total, 23 individual ships from 11 different cruise lines will call at Ogden Point.
BLACK’S REFINERY PROPOSAL FOR KITIMAT GETS BOOST FROM CHINA

The Industrial and Commercial Bank of China (ICBC) has expressed interest in supporting the development of the proposed refinery in Kitimat that would process oil from the Alberta oilsands. David Black, founder of Kitimat Clean, has signed a memorandum of understanding with ICBC for the proposed refinery that is estimated to cost $25 billion. The Kitimat refinery is stated to have the capacity to process the entire output of the proposed Northern Gateway pipeline and create 2,000 to 3,000 jobs. Full story from CBC.
MINISTER FAST INTERVIEWED IN HONG KONG

Minister for International Trade and the Asia-Pacific Gateway, Ed Fast, was interviewed last week in Hong Kong on the trade relationship between Canada and China in the context of Canada’s drive to export oil and gas to Asia. Minster Fast commented that China’s exports to Canada rose by 4.3% in the first quarter of this year while imports from Canada jumped 9.3% according to China’s official data. He also observed that to date Canada has approved twice as much LNG export capacity as the U.S.
MR. GEORGE WEYERHAEUSER 1953 -2013

Mr. George Weyerhaeuser Jr., has died at the age of 59 from a heart attack. Mr. Weyerhaeuser was the son of the late Mr. George Weyerhaeuser Sr., himself the grandson of the founder of the internationally well known, Federal Way based, forest products company that continues to bear his name. Mr. Weyerhaeuser was well known as a tireless Tacoma civic and business leader serving as president of the Thea Foss Waterway Development Authority, a board on which he had served for many years and as a Director of the local Museum of Glass. He was well known for his passion and commitment to science and the arts.
Following in the steps of his father, Mr. Weyerhaeuser served for 30 years in the family compan,y eventually assuming the position of President and CEO of Weyerhaeuser Canada from June 1993 to May 1998 when he stood down to became the company’s senior vice president of technology, procurement and transportation. In 2006, Mr. Weyerhaeuser was appointed to the World Business Council for Sustainable Development, based in Geneva, as a senior fellow before retiring in 2008.
BC CORONERS CONFIRMS IDENTITY OF SEAFARER
The BC Coroners Service has confirmed the identity of the seafarer who died after he collapsed aboard a ship moored in English Bay on April 11, 2013 as William Caefilan, aged 51, a resident of the Philippines. Mr. Caefilan was a second officer aboard the Osakana, a 199-metre (653-foot) long grain-carrier ship registered in Singapore that had been moored in English Bay.
On the afternoon of April 11, fellow crew-members found Mr. Caefilan unresponsive on the bridge deck of the ship, and called for assistance. Assistance was provided by the Canadian Coast Guard hovercraft from its base in Richmond, and by paramedics who attended to the ship on the Vancouver Police Department’s boat. However, Mr. Caefilan could not be resuscitated. Our thoughts and prayers go out to Mr. Caefilan’s family and friends.
ANOTHER NEW FACE AT THE CHAMBER
We are sad to advise members that Lana Tsurykava who has cheerfully served many of you with port-pass applications and renewals over the past six years has found it necessary to leave us for medical reasons. She will be missed by her colleagues.

Pending the appointment of a permanent replacement for Lana we are pleased to introduce Jag Diogan, a graduate of SFU who will take up law school in the UK in September. Left to right above is our current administrative team of Andrew Knapman (Sheffield University graduate), Jag Diogan (SFU graduate), Aleks Novakovic (UBC TLog President and co-op student) and Sean Lehodey (University of Dublin graduate).
Government News
NEW COAST GUARD RESCUE BOAT DEPLOYED IN VANCOUVER
The federal government has activated the new inshore rescue boat in Stanley Park, following the controversial closure of the Kits Coast Guard base. Tony Booth, with the Victoria Joint Rescue Co-ordination Centre, said the boat docked at HMCS Discovery was ready for service as of Monday at 4 pm. The inshore station will operate 24 hours a day seven days a week by three rotating Coast Guard staff using a rigid inflatable dinghy. Response times are expected to be 30 minutes or less, and the crew will service English Bay and Howe Sound.
International News
HONG KONG PORT STRIKE CONTINUES
Now entering the third week of their dispute, around 200 striking dock workers were this week camped outside the headquarters of Mr. Li Ka-Shing, owner of Hong Kong International Terminals and reputedly Asia’s richest man. Representatives of the strikers have vowed to remain outside Cheung Kong Centre in the city’s financial district in a bid to persuade Mr. Li to intervene in their dispute. The workers seek an increase of about 20% from the contractors who actually employ them whereas HIT has suggested that something closer to 7% would more realistic. Australian trade unionists have also flown in to lend their support.
VALEMAX VLOC FINALLY ACCEPTED INTO CHINA?

There are signs that the spat between China and Brazil’s Vale Group may be nearing quiet resolve. Vale Malaysia (DWT 402,285 tons), called at the port of Lianyungang in North East China this week and reportedly discharged 220,000 tons of iron ore. This was the first China call of this class of vessel since December 2011 which prompted strong protests from the China Shipowners Assoc. To counter the Chinese ban, Vale opened a transshipment centre in the Philippines in 2011 and another is scheduled to open in Malaysia in 2014.
EU BACKS DOWN ON SCRAPPING LEVY
The European Union’s Environment Committee was held in check this week when Parliament soundly rejected a proposal to impose a ship recycling levy on vessels calling at EU ports. The international marine industry came together as one to reject the plan which was announced without consultation and posed a unilateral regional challenge to “The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. Even so, the parliament called on regulators to propose by the end of 2015 an “incentive-based system” to encourage safe ship recycling so it appears that the controversy is not yet fully resolved.
TURKEY MOVING FORWARD WITH KANAL ISTANBUL
Turkey is moving forward with plans to ease traffic congestion in the Bosphorus Strait with plans for a new 45 kms ship canal, currently being prematurely named Kanal Istanbul, linking the Black Sea to the Sea of Marmara The canal would effectively turn the European side of Istanbul into part of a large island. There are also plans to use displaced earth in land reclamation to build a new airport and sea port. Some 50,000 ships a year including 8,000 tankers transit the Bosphorus Strait. In recent years, Istanbul has also become a popular port of call for cruise ships.
GREECE CRACKS DOWN ON FERRY MANNING LEVELS
ferries lined up in Piraeus
With the decline in regional tourism, the Greek Ferry industry is on its knees but that did not deter the Panhellenic Seamen’s Federation from staging a 24-hour strike on Tuesday this week in protest against new legislation designed to help stablilize the industry. With 50% of Greek seafarers already unemployed, feelings are running particularly high against a section of the new legislation which seeks to equate Greek flag terms of employment to those of the international Maritime Labour Convention and cut minimum crewing requirements for domestic fast ferries to international norms. Many ferry companies in Greece are reported to be well behind with payments of wages.
NIGERIA SCOUTS FOR NEW OIL MARKETS
Despite fluctuating production, rampant corruption and the ongoing security challenges West Africa’s oil industry is doing pretty well as one of the alternatives to sanctioned Iranian crude oil but has been significantly hit by the decline in U.S. imports. Nigeria alone is exporting around 100m tons a year of the region’s output.
The European imports from Nigeria have tripled since 2007 to 15 million tons in 2012 due in part to the popularity of the country’s light sweet crude.
INDIA UPS THE ANTI ON TRIAL OF GUARDS
The continuing dispute between Italy and India over the latter’s insistence on trying two armed guards who accidentally shot two Indian fishermen took another twist this week when India appointed its anti-terrorism agency to investigate the case. Despite assurances to the contrary, Italy voiced fears that the decision is designed to re-open the debate as to whether the guards are subject to a death penalty since under the same legislation India has recently hanged two men convicted of terrorism attacks.
Meanwhile, the latest estimate of the cost to the marine industry of Somali piracy is around $6 billion – see the above graphics. In its latest quarterly report on Piracy and Armed Robbery Against Ships the International Maritime Bureau (IMB) has recorded 66 incidents worldwide in the first three months of 2013 compared to 102 incidents reported in first three months of 2012. The first three months of 2013 also saw four vessels hijacked, 51 boarded and seven fired on, as well as four reported attempted attacks, 75 crew members were taken hostage, 14 were kidnapped and one died. The IMB warns against any complacency with respect to Somali piracy and expressed deep concern for security in the Gulf of Guinea.
NSW SELLS PORT BOTANY & PORT KEMBLA
Golfer Adam Scott – Aussie Rules
A good week for the Aussies after Adam Scott from Adelaide won the U.S. Masters. On the business front, the Government of New South Wales has announced the $5 billion sale of a 99-year-lease of Port Kembla and Port Botany to a consortium, headed by Industry Funds Management which is 80% Australian controlled. The remaining 20% is to be held by the Abu Dhabi investment authority. In order to pass the legislation through the Australian Senate, the government agreed to pass laws allowing duck hunting to appease the Shooters and Fishers Party, who hold the balance of power. You can’t make this stuff up any more.
Market Update
The Baltic Dry Index was largely unchanged this week and closed on Thursday at 885 points compared to 859 points last week and 866 points the week previously.
Cape Size Panamax Supramax
Index 1238 1180 898
Last week 1250 1080 900
Spot time charter $4,400/day $9,400/day $9,400/day
One week ago $4,500/day $8,600/day $9,400/day
LNG: Daily rates for LNG carriers are under a bit of pressure as the European weather finally warms and the peak of demand for LNG declines. Rates peaked at around $150,000 per day in January 2012 and are now closer to $100,000 per day. The other factor is that of new ships coming into service with the existing fleet of around 370 ships forecast to be increased by another 100 ships by 2017.
Upcoming Events
IMO TRANSPORTATION OF DANGEROUS GOODS COURSE
Apr 26 - The second IMO Transportation of Dangerous Goods course to members. This is a full day course with a Transport Canada certified trainer and participants will be issued certificates upon successful completion. Registration fee is $100 plus GST per person. For more information, email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it or contact Bonnie Gee at 604-681-2351. Space is limited.
BUSINESS OF SHIPPING COURSE
May 9 – The next full day course for the Business of Shipping will be on May 9th at the Vancouver Club. Topics include an overview of the marine industry, port governance, ship source oil pollution and response, towage and salvage, marine pilotage, and shipbuilding prospects. To register see the attached form.
NAUTICAL INSTITUTE BC BRANCH – PASSENGER VESSEL SAFETY CONFERENCE
May 9-10 – The Nautical Institute will host a two-day conference on passenger vessel safety, recent innovations and programs for continuous improvement. For more information or to register visit: http://www.nibcconference2013.com/
PLIMSOLL CLUB GOLF TOURNAMENT
May 14 – The Plimsoll Club will host its annual golf tournament at the University Golf Club on Tuesday, May 14, 2013 – shotgun start at 13:15 hrs. Please see the attached information and booking form for more information.
COUNCIL OF MARINE CARRIERS TOWBOAT CONFERENCE 2013
May 23 – The 2013 Conference will be held from May 23rd through to the 25th at the Victoria Conference Centre at The Fairmont Express Hotel. For more information visit: http://www.comc.cc/conf/20Conf.html.
GREEN TECH 2013 ANNUAL CONFERENCE
May 29-31– Save the date for Green Marine's annual conference on green technologies and innovation for marine transportation in Vancouver for the first time with the IMO's environmental chair as keynote speaker.
BUSINESS OF SHIPPING COURSE
Jun 6 – COS is now accepting registration for the half-day course on Laytime and Letters of Indemnity scheduled for June 6th with guest speakers Mike Jekyll and Peter Swanson.
DAY OF THE SEAFARER BANQUET
Jun 26 – Save the date for the Mission to Seafarers fundraising banquet scheduled for June 26th at the Stanley Park Pavilion. Details to follow.
Apr 17 CSBA Webinar on new Administrative Monetary Penalties @ 11:30
Apr 19 COS Navigation & Pilotage Committee Meeting @ 10:00
Apr 23 ISSC Board of Directors Meeting @ 12:00
Apr 24 PACMAR / NANS Meeting
Apr 24 Plimsoll Club’s Past Presidents Lunch @ noon
Apr 25 COS Liner Committee Meeting @ 10:00
May 1 COS Board of Directors Meeting
May 9 Business of Shipping Full Day Course
May 9 Nautical Institute – Passenger Vessel Safety Conference
May 14 Plimsoll Club Golf Tournament
May 23 Council of Marine Carriers Towboat Conference 2013
May 29 Green Tech 2013 Annual Conference
Jun 6 Business of Shipping – Half Day Session
Ship of the Week
HMY Britannia at her final home in Leith, Scotland
HMY Britannia was built at the shipyard of John Brown & Co. Ltd in Clydebank, West Dunbartonshire, UK, being launched by Queen Elizabeth II on 16 April 1953 and commissioned on 11 January 1954. This week was therefore the 60th anniversary of her launch.
LOA 126m
Beam 17m
GRT 5,769 tons
Propulsion 12,000 HP steam turbine
Speed 21.5 knots
Capacity 250 guests
Crew, 21 officers and 250 Royal Yachtsmen
Decommissioned December 1997 to become a museum ship in Leith, Edinburgh, Scotland

In July 1959, Britannia inaugurated the Saint Lawrence Seaway en route to Chicago, where she docked, making the Queen the first Canadian monarch to visit the city. U.S. President Dwight D. Eisenhower joined the Queen for the cruise. Presidents Gerald Ford, Ronald Reagan and Bill Clinton were also visitors to Britannia during their time in office.
a somewhat spartan bridge (left) by today’s standards and the royal barges (centre) and farewell Hong Kong (right)
Britannia’s final duty in July 1997 was to carry the last British Governor of Hong Kong and the Prince of Wales out of Victoria Harbour following transfer of sovereignty to the People's Republic of China. It was calculated that Britannia steamed 1,087,623 nautical miles (2,014,278 kms) during her 44 years of service.
Conveyance Arrival Functionality for Air and Marine Carriers
Message ACI13-024
This is to advise you that there is a change to the deployment date of system functionality for the Conveyance Arrival Certification Message (CACM) and associated notification transactions under the Advance Commercial Information (ACI) program.
To accommodate system adjustments that will ensure the best possible functionality of other components in this deployment package for all stakeholders, the CBSA is postponing the April 28, 2013, system deployment. The CBSA will inform you of the new deployment date as soon as it is confirmed.
The testing environment will continue to be available for air and marine clients who have registered, or have yet to register, for the CACM process to ensure clients’ readiness once systems are deployed.
Carriers or their authorized service provider who have not yet registered with the CBSA’s Electronic Commerce Unit (ECU) to conduct client testing of the new arrival message and notification transactions are strongly encouraged to do so by contacting the ECU at:
Phone
1-888-957-7224 option 1 (calls within Canada and the U.S.)
1-613-946-0762 (for overseas callers between 08:00 to 17:00 ET)
1-613-946-0763 (for overseas callers between 17:00 to 08:00 ET)
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
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