Wednesday Sep 08

COS Weekly News - 11 December 2009

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COS News – Week ending 11 December 2009

Issue No. 85

  

MARINE NAVIGATION SERVICE FEES

As previously advised, COS was not successful in being awarded the contract to collect Marine Navigation Service Fees on behalf of the west coast marine industry out of an RFP issued by the Canadian Coastguard in July 2009.  COS met with the parties in Ottawa on December 8 following which it has been decided to launch a formal appeal. We cannot share more at this stage but there is a determination by the Board of COS that we should see what we believe to be a significant injustice through to conclusion.

Also in Ottawa this week, Stephen had the opportunity to address the BC Liberal Caucus on proposed expansion of tanker traffic on the north coast.

 

VANCOUVER BOARD OF TRADE – CERTIFICATES OF ORIGIN

The Vancouver Board of Trade will be closed for the holidays from December 24 to January 4, 2010.  However, please note that the VBT has confirmed that a staff member will be available on December 31 from 8:30 am to 5:00 pm to process any Certificates of Origin required within this period.

 

PACIFIC COAST SHIPBUILDERS ASSOCIATION FORMED

On November 27th shipbuilders located on the West Coast of Canada formed an unprecedented alliance to provide a unified voice to all levels of government in an effort to promote BC’s shipbuilding industry.  The new entity named the Pacific Coast Shipbuilders Association (PCSA) is chaired by John Shaw and the members will be working together to deliver programs to meet the needs of the Federal fleet renewal. 

 

PORT METRO VANCOUVER NEW WESTMINSTER OFFICE RELOCATE

Effective December 15, 2009, Port Metro Vancouver’s New Westminister office will be closed.  All employees at the location will be transferred to the downtown Vancouver office. 

The direct phone number and email address of our port employees remain unchanged and the main telephone number is 604-665-9000.

  

NAIKUN OFFSHORE WIND ENERGY PROJECT APPROVED

NaiKun Wind Development Inc. (the proponent) has received an environmental assessment (EA) certificate for its proposed offshore wind energy project (project). The Council of the Haida Nation has a limited partnership agreement with the proponent to operate and maintain the project after construction.

 

  

Government News

BC AND CANADA INVEST IN NEW FERRY TERMINAL AT KLEMTU

Premier Gordon Campbell and Stockwell Day, Minister of International Trade and Minister for the Asia Pacific Gateway today announced $25 million in joint federal/provincial funding to improve ferry access to Klemtu through the construction of a new ferry terminal. 


CBSA AUDITS EMANIFEST DEVELOPMENT IN PROGRESS

The objective of the audit was to provide assurance that the project management framework and data management practices for the eManifest Project are adequate and effective.  The findings recommend streamlining the governance structure for the eManifest team and improvements to project planning and management.

 

 

Other News

GREEK BULK CARRIER “ARIANA”

Referring to an item we made covered a couple of weeks ago whereby a 12 year Ukranian girl is reported to be amongst those held by Somali pirates on the bulk carrier Ariana, it was reported that after seven months of detention, a ransom for release of the vessel was finally paid yesterday. Subject to having adequate bunkers, the vessel is expected to depart Somali waters for Iran to discharge a cargo of soya bean meal.


MAERSK IN BOLD SCOTTISH PUBLIC RELATIONS MOVE

Maersk recently found itself at the wrong end of public opinion when six container ships were laid up in Loch Striven, Scotland. There were heated exchanges and local hostility when the ships first arrived, with residents complaining of disruption to their peaceful way of life.

 

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Maersk Sealand ships laid up in Loch Striven 

The 4,200 teu Maersk Brooklyn, plus Maersk Boston, Maersk Beaumont, Maersk Bentonville, Maersk Baltimore, and the slightly smaller Sealand Performance, arrived for lay up last July. After conducting an acoustic survey, Maersk decided that noise levels could be reduced, but company went one further recently by inviting the locals onto the Maersk Beaumont for a tour and reception hosted by captain and crew. The ice was broken and 30 vociferous locals accepted the invitation since when relations have been much improved. It is unknown whether any of the locals required assistance to leave the vessel.

maersk_cows 

Loch Striven is a sea loch which lies west of the Firth of Clyde, north of the Isle of Bute. The loch has good sea access and has long been used as a sheltered anchorage where vessels can safely layup. The loch has also been used for military training and testing. During World War II, it was used for training of midget submarine crews due to geographic similarity with the Norwegian fjord in which the German battleship Tirpitz was moored. 
 

WORLD SHIPPING COUNCIL TO STEP UP INDUSTRY ADVOCACY

On behalf of all the world’s leading liner operators, the World Shipping Council (WSC) based in Washington DC has decided to ramp up their public awareness campaign. The campaign will aim to provide the public with a comprehensive explanation of the industry, its contribution to global economic health, and the status of current policy issues. In preparation for the launch of a new website, WSC has commissioned an independent assessment of the economic contribution of the liner shipping industry which when taking 2007 as a base year the contribution of the liner shipping industry in terms of GDP was $183.3bn and 4.2m jobs.

 

 Market Update

The Baltic Dry Index (BDI) was dragged down by the Capesize market and closed in London on Thursday on a bit of a low note at 3671 points compared to 4062 points last week and 4119 points the week previously. 

                                      Cape Size            Panamax          Supramax          

Index                                 5387                   3795                    2432
Last week                         6640                    3830                    2368
Spot time charter        $55,600/day          $30,500/day         $25,400/day
Last week                   $70,700/day          $30,800/day         $24,800/day

Despite the softer week for Capesizes, this has been a decent week for Panamaxes in the Pacific on account of a flood of coal fixtures to China and not so bad either in the Atlantic where ships in this category are achieving up to $40,000/day for a round voyage. Understandably at this time of year, owners are looking to avoid a last minute panic to have ships fixed over the upcoming holiday period and therefore a bit of cat and mouse activity goes on with charterers who also don’t want to be left with cargoes uncovered.

TANKERS:  It is becoming increasingly apparent that a number of VLCCs on order Asian yards will not be delivered to their original owners. Ships due for delivery in the next couple of years were ordered at the top of the price cycle hence many owners can and will save money by simply walking away from deposits. Of the 184 VLCCs on order, more than half were at prices above $130m compared to around $95m today. In the markets this week, VLCC owners have been turning the screw on charterers to achieve improved rates in all directions. Arabian Gulf to Europe rates increased from around $15,000/day to $25,000 day on account of a short term lack of available ships.

CONTAINERS: A new level of container ship layups was announced this week. The idle fleet is now estimated at 11.7% comprising 572 containerships with a capacity of 1.5m TEU. On a more positive note, rates in the trend setting Asia-Europe trades are starting to stabilise. Rate increases achieved over the past few months are sticking thanks to the decision of most lines to implement disciplined capacity constraints

 

 

Upcoming Events

Dec 14              BC Marine Vessel Air Quality Working Group Meeting @ 13:30
Dec 15              COS Ship & Port Operations Committee Meeting @ 12:00
Dec 16              COS Liner Committee Meeting @ 10:00
Dec 16              COS Customs Working Group Meeting @ 12:00
Dec 17              COS Navigation Services Committee Meeting @ 10:30
Dec 17              COS Owners Committee Meeting @ 12:00
Dec 24              Christmas Eve – COS Offices Close @ 12:00
Dec 25              Statutory Holiday – Christmas Day – COS Office Closed
Dec 28              Boxing Day Holiday – COS Office Closed
Dec 31              New Year’s Eve – COS Offices Close @ 12:00
Jan 1                New Year’s Day – COS Offices Closed

 

Ship of the Week

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OSV VIKING LADY

The major world theme this week being the COP (Conference of the Parties) 15 meeting in the Danish Capital of Copenhagen, we felt it may be appropriate to feature an interesting vessel which is part of the so called “Fellowship Project”.

The Offshore Service Vessel (OSV) Viking Lady is a ship comprised of a number of fuel cell packs intended to provide auxiliary power. As part of the Fellowship (Fuel Cells for Low Emissions Ships) project, this experimental vessel was first launched in 2003 and now is close to commercialization. This is a cross industry project managed by Det DNV Offshore, which includes the vessel’s owners Eidsvik, Wärtsilä Ship Power,  MTU Onsite Energy and Wärtsilä Ship Design. The project is also supported by the Norwegian Research Council and the German Federal Ministry of Economics & Technology.

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The progress of the project to date appears to demonstrate that fuel cell technology is close to a commercial application and is intended to address the future demands on our industry to reduce emissions. Fuel cell technology of this capacity has never before been installed in merchant vessels and the highly innovative project is unique on a world scale. Engine Manufactuers Wärtsilä has been involved in fuel cell technology since the mid-1990s and specializes in systems integration.

In Copenhagen this week, the IMO maintained its stance on retaining control over shipping’s emissions reduction policy. In a presentation to the conference, the IMO Secretary General pointed to a number of practical measures developed by the IMO to tackle emissions..