Wednesday Sep 08

COS Weekly News - 15 January 2010

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COS News – Week ending 15 January 2010

Issue No. 89

 

 

NOMINATIONS FOR 2010 COS BOARD OF DIRECTORS

Our Nominations Committee is now accepting nominations for the 2010 Board of Directors.  With the revisions to our By-laws, each of our incumbent directors will seek either a one or two year terms as the standard term will become two years after this year’s election.  New candidates put forward this year are eligible to stand for a one-year term.  Nominations must be submitted to the Nominations Committee in writing c/o Corporate Secretary ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it ) no later than 5 pm on Friday, January 29, 2010.

 

 

RAIL FREIGHT SERVICES REVIEW

Please be reminded that the deadline for submissions to the Rail Freight Services Review Panel is February 26, 2010.  COS met with Port Metro Vancouver earlier this week to discuss elements of PMV’s submission.  

 

 

BUSINESS OF SHIPPING – JAN 21 COURSE

We have a small number of spots remaining for anyone still considering and a registration form is therefore attached. The Education Committee appreciates the support of companies and organizations sponsoring participants registered for next week which in alphabetical order includes:

ACGI Shipping, Asia Pacific Gateway Skills Table, BC Coast Pilots, BCIT, BCMEA, Bernard & Partners, BMT Fleet Technology, Bull Housser & Tupper, Canada Border Services Agency, Compass Marine, Dept. of Fisheries & Oceans Canada, GTH Logistics, Grieg Star Shipping, Montship, Moresby Consulting, Port Metro Vancouver, Pacific Pilotage Authority, Parrish & Heimbekker, Transmarine Consultants, Transport Canada, Trealmont, TSI, Valles Steamship Canada, Western Stevedoring, Westward, WWF Canada.

 

 

TRANSPORTATION OF DANGEROUS GOODS TRAINING

The British Columbia Safety Council is no longer offering the Transportation of Dangerous Goods Training Course.   Members requiring new certificates for 2010 may sign up for the on-line Transportation of Dangerous Goods training program offered by the Canadian Association of Provincial Safety Councils (CAPSC).

 

 

CIRB APPOINTMENTS

The Governor-in-Council has approved the appointment of a part-time Vice-Chairperson and two part-time members of the Canada Industrial Relations Board in British Columbia. They are Allan Hope as Vice-Chair, Terry Lineker as Employer Member and Cindy Oliver as Union Member.

 

 

OLYMPIC UPDATES

The following websites are available for those interested in obtaining more information on the upcoming road restrictions and marine areas of interest during the 2010 Winter Games.

 

§     Western Marine Community CoalitionBC Marine Olympics Blog

§     Port Metro Vancouver2010 Olympic Planning Handbook

§     Travel Smart 2010

§     VANOC 2010

 

The Western Marine Community Coalition is hosting a blog where members of the community can provide an immediate update to the website on traffic conditions and delays by sending an email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

 

Note that our core office hours for the Chamber of Shipping between February 12 – 26th will shift to 7:00 am to 3:00 pm PST.

 

 

CUSTOMS AFTER HOURS & WEEKEND SERVICES

Canada Border Services Agency will not be amending its operational hours at 333 Dunsmuir for marine documents during the 2010 Winter Games.    CBSA hours of operation for the Marine Front Desk are Monday to Friday 8:00 to 16:30 hrs.  CBSA will process inward and outward reports 72 hours in advance.

 

For after hours emergency marine service only, such as ships stores, vessel inwards and outwards clearance, re-manifesting and export B13’s contact CBSA dispatch at 604-713-9840 for further assistance.

 

The Chamber of Shipping (COS) has issued new parking passes for 15 minutes stays in the courier spots to assist members with parking at the 333 Dunsmuir.  If you require a new pass, please contact COS.

 

 

 

Government News

 

GOVERNMENT OF CANADA FACILITATES SHORTSEA SHIPPING

The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today announced completion of the Southern Railway of British Columbia (SRY) rail barge ramp, a shortsea shipping project at the marine rail terminal on Annacis Island in Delta. This project was made possible by $4.6 million in federal funding under the Asia-Pacific Gateway and Corridor Initiative.

 

 

CANADA’S ECONOMIC ACTION PLAN – MARKET ACCESS FOR CANOLA

The Government of Canada is investing in the development of a comprehensive market strategy for Canada's canola sector and examination of current legislative, regulatory and administrative trade barriers.

 

The strategy will outline a rapid joint industry and government approach to be implemented when market access challenges arise as well as develop a strategy to avoid potential market access challenges. In addition, the strategy will highlight industry best practices which will help farmers boost their bottom line by meeting the standards of importing countries.

 

In addition to the Government's contribution, the Canola Council of Canada will contribute another $1.2 million for a total of $9 million.

 

 

E-MANIFEST UPDATE

The Electronic Commerce Client Requirements Document (ECCRD) for the highway mode has been completed.  To obtain a copy of the ECCRD, please contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  The focus of eSPN consultations will now shift to secondary reporting and will involve significant discussions with freight forwarders. 

 

The eManifest section of the CBSA’s Web site has been updated to include new content including eSPN meeting summaries and eManifest client support and contact information.  This new information can be viewed at the following URL: http://www.cbsa.gc.ca/prog/manif/menu-eng.html

 

 

 

Other News

 

HAITI EARTHQUAKE

Port facilities in Port-au Prince did not escape the wrath of the powerful earthquake which hit the island of Haiti this week, First reports indicate that the port is largely destroyed and approximately 30 stevedores were drowned when a dock collapsed alongside the ship they were working. All business is suspended which serves to make the situation ever more complex as the world attempts to provide emergency relief to hundreds of thousands of desperate people.

 

 

2009 PIRACY STATISTICS

The International Maritime Bureau has published a summary of Gulf of Aden & Somalia pirate attack statistics which are attached to this newsletter.

 

 

EU MARCO POLO INITIATIVE PROMOTES SHORT SEA SHIPPING

The European Commission (EU) continues to aggressively promote short sea shipping in preference to trucking through the so called Marco Polo Initiative. The current program is funded 2007-13 but inevitably many shippers are still to be persuaded of the benefits. Even so, some 40% of intra-European Union cargo is already moving by sea, up from 35% in 1992 and the EU believes there is ample room for further growth if remaining bureaucratic obstacles can be resolved. New measures just introduced for to boost the Initiative include a modernised and simplified e-maritime commerce system and increased funding but inevitable higher operating costs resulting from Emissions Control Area (ECA) fuel standards for shipping may yet throw Marco Polo into reverse. 

In the US, the need to switch cargo from road to sea was identified some years ago, but the high costs associated with the Jones Act, requiring vessels transporting domestic US cargoes to be built, owned and operated in the US and crewed by US seafarers, acts as a major disincentive resulting in only 2% of US domestic freight being moved by water. The American Recovery and Reinvestment Act of 2009 includes $1.5bn in discretionary funds for capital investment in the surface transportation system, however, the economic viability of expanding short sea shipping remains doubtful. One recent report makes the case that a significant shift from road to rail would require political agreement to allow up to 500 foreign built ships with lower operating costs to replace the inadequate and uneconomic Jones Act qualifying tonnage. Interestingly, it is estimated that if politics did not stand in the way, such an investment could be paid for by fuel import cost savings within about two years.

 

 

STENA BOOKS SUEZMAX NEW BUILDS

stena_bulk

Taking advantage of hungry for work shipyards, Stena Bulk of Sweden has ordered two new Suezmax tankers (158,700 DWT along with two options) from Samsung Heavy Industries for delivery in late 2011 at a bargain price of $136m, a discount of some 30% from the height of the market. The two tankers are intended to operate in the expanding Stena-Sonangol Suezmax pool, which Stena operates in conjunction with the Angolan state-run oil company of the same name. Stena is committed to training Angolan officers and ratings for the pooled vessels. The new builds will be named Stena Superior and Stena Supreme which with the benefit of engine upgrades are designed to achieve fuel consumption reduction of 10% compared with a conventional Suezmax. The Stena tanker fleet currently comprises 72 vessels totalling 7 million tons DWT

 

 

 

Market Update

The Baltic Dry Index closed on Thursday on 3235 points, up a whisker from 3149 points last week and 3005 points at close of markets on December 24.

 

                                          Cape Size            Panamax           Supramax          

Index                                   4142                     3847                   2545

Last week                           3824                      4188                    2375

Spot time charter            $39,200/day        $30,900/day         $26,600/day

Last week                       $35,500/day        $33,600/day         $24,800/day

 

Dry bulk markets remain relatively steady as China’s focus turns to the “Year of the Tiger” but the elephant in the room is the order book which if delivered has the potential to increase the number of vessels trading in this sector by 25-30% this year.

 

TANKERS: After a wretched 2009 for the sector, the major market news is that of VLCC rates surging up to 300% in less than a week. Only three months ago, many VLCCs were trading for less than $10,000/day, and rates are now in the $50-70,000 range and still climbing. Much of the demand is coming out of the Far East but the unusually harsh winter in Europe and the Eastern United States is also driving demand. With some 540 VLCCs currently employed and 80 scheduled to be added this year, there could still be a swing of the pendulum against owners however the actual number of deliveries still seems uncertain.

 

 

Upcoming Events

 

Jan 18               Official Opening – Deltaport Third Berth

Jan 18               Liner / Customs Working Group Meeting @ 14:00

Jan 19               CIABC Board of Directors Meeting @ 10:30

Jan 19               COS Ship & Port Operations Committee @ 12:00

Jan 20               COS Navigation Services Committee Meeting @ 10:30

Jan 20               ICS Board of Directors Meeting @ 12:00

Jan 20               Plimsoll Club Pub Night @ 17:00

Jan 21               Business of Shipping Course

Jan 26               ISSC Board of Directors Meeting @ 12:00

Jan 27               PACMAR/NANS Meeting @ 10:30

Jan 28               COS Owners Committee Meeting @ 12:00

Jan 28               VMAA Seminar on Bill C-7 @ 12:00

 

 

Ship of the Week

shropshire
M.V. SHROPSHIRE

BIBBY LINE SUPRAMAX 57,000 DWT BUILT 2009

 

Bibby Line was founded in 1807 by John Bibby the fourth of the five sons of an English farmer. The company remains in private ownership and is today is part of a diversified corporation also in Distribution and Financial Services. From the outset, all company ships were named after English shire counties. The company has three times achieved the Queen's Award for Export Achievement and in 2003 received a Corporate Honorary Fellowship from John Moore’s University Liverpool in recognition of outstanding contributions over almost 200 years to the history and economic development of Liverpool.

 

Historically, the company is made headlines for the loss of the OBO carrier Derbyshire in a typhoon in 1980 with all hands (42 crew and two wives). At 169,044 DWT she is one of the largest ships ever to have been lost at sea. The wreck was eventually located in 1994 and a formal investigation convened in 2000 which concluded that the ship sank due to of structural failure.

 

Bibby Line was also one of the last UK shipping companies to own and operate troopships on behalf of the UK Government, the last of which was Oxfordshire. When sold she became the Sitmar liner Fairstar the last ship to serve as a government subsidized emigrant liner operating between the UK and Australia  / New Zealand. Following the demise of emigrant liners, she then operated for 22 successful years as a cruise ship based in Sydney before being scrapped in 1997.

 

troopship_oxfordshire
TROOPSHIP OXFORDSHIRE

DELIVERED TO BIBBY LINE 1957

 

In 2007 the company celebrated its 200th birthday. In 2009, Sir Michael Bibby helped launch a free telephone referral service to support seafarers and their families in times of need.

 

 

 

For more information on the newsletter items, please call the Chamber of Shipping of British Columbia at tel: 604-681-2351 or visit www.cosbc.ca.