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COS Weekly News - 19 February 2010

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COS News – Week ending 19 February 2010
Issue No. 94

 

POTENTIAL UN BAN ON PAYMENT OF RANSOMS TO PIRATES

As detailed in the attached circular from the International Chamber of Shipping, it is becoming clear that the United States, possibly with the support of the U.K. is contemplating an approach to the U.N. Security Council seeking a ban on ransom payments to pirates. This would incorporate sanctions against companies and vessels agreeing to make ransom payments to secure release of their vessel, cargo and crew. We would welcome COS membership views on this subject for our Board consideration towards our writing formally to the Government of Canada on this sensitive issue. The Hong Kong Shipowners Association has already written to the Chinese Government arguing that the U.S. proposal not be supported. 

 

ASIAN GYPSY MOTH FOUND ON CONTAINERS IN OAKLAND

U.S. Customs and Border Protection issued a news release advising that agriculture specialists discovered Asian Gypsy Moth (AGM) egg masses on two shipping containers on a vessel that arrived from China last week at the Port of Oakland.  Please be reminded that the high risk period for AGM in Canadian ports is between March 1 and October 15.

 

PACIFIC COAST SHIPBUILDERS ESTABLISHES INTERIM BOARD

John Shaw, a Vice-President with the Washington Marine Group has been elected to serve as the Chairman of the Pacific Coast Shipbuilders Association’s interim Board of Directors.  The appointment follows a meeting of owners and leaders of firms representing a large majority of British Columbia’s shipbuilding industry and union leaders representing the vast majority of workers in the shipbuilding sector.   Two working committees - Communications and Finance – were also established.



FATALITY AT TILBURY TERMINAL

An employee of Seaspan Coastal Intermodal died earlier this week when the ramp at Berth 4 at Tilbury Terminal in Delta collapsed unexpectedly and fell into the water.  Efforts to revive him once he was located and retrieved from the water were unsuccessful.  An investigation is underway.  The name of the employee has not been released.

 

BRAZILIAN NAVY RESCUES PASSENGERS FROM SV CONCORDIA

A Canadian-based student ship sank off the coast of Brazil on Friday but all 64 passengers have been rescued. The tall ship SV Concordia sank about 555 kilometres off the coast of Rio de Janeiro in rough seas on Thursday night. All 64 passengers and crew had been safely rescued by the Brazilian navy with the assistance of Japanese merchant ship, Hokuetsu Delight. 

The SV Concordia is a 57.5-metre ship with a 35-metre mast and 15 sails belongs to the West Island Class Afloat alternative school in Montreal. The ship was carrying high school seniors and first-year university students on an educational voyage.  The Prime Minister has released a statement.

 

 

Government News

 

PACIFIC LEADERS TAKE ACTION ON CLEAN ENERGY, TRANSPORTATION, AND OCEAN CONSERVATION

Leaders from British Columbia, California, Oregon, and Washington signed onto a series of joint actions that will help create jobs, strengthen the Pacific Coast economy, advance action on climate change and clean energy, and protect the marine environment.

The actions were ratified during the inaugural Leaders’ Forum of the Pacific Coast Collaborative. Established by British Columbia’s premier and Pacific Coast governors in June 2008, the collaborative’s founding agreement pledges the participating governments to forge a partnership for leadership, co-operative action, and a common voice on issues affecting the Pacific coast region.

Two action plans were signed by the leaders today: Innovation, the Environment and the Economy; and Ocean Conservation and Coastal Climate Change Adaptation.

The Action Plan on Innovation, the Environment and the Economy sets out a series of co-operative initiatives to promote renewable and low-carbon energy and energy conservation, including developing Interstate 5/Highway 99 as a green transportation corridor. It also promotes development of high-speed rail from San Diego to Vancouver and the move to “Green Ports” through co-operation to reduce local air pollutants and greenhouse gas emissions.

The Action Plan on Ocean Conservation and Coastal Climate Change Adaptation focuses on co-operation on invasive species, reductions in toxins and other pollutants, promoting sustainable fisheries management and research into impacts from climate change and adaptation options.

 

REGULATIONS AMENDING THE CONTRAVENTION REGULATIONS

The Regulations have been published in the Canada Gazette Part II – February 5, 2010 and take effect immediately.  The amendments increase the fine amounts for certain existing contraventions and designates additional offences, primarily for pleasure craft operators, under the Vessel Operation Restriction Regulations and also amend existing contraventions under the Collision Regulations.

The general objective of this amendment is to ensure that all enforcement partners in marine safety across Canada, namely police forces and other designated enforcement agencies, can effectively carry out their mandate at the beginning of the 2010 boating season.

 

REGULATIONS AMENDING THE PRIVATE BUOY REGULATIONS

The Private Buoy Regulations are amended to reflect the transfer of authority for the Regulations from the Minister of Fisheries and Oceans to the Minister of Transport in 2004.

 

 

Other News

NEW ORDERS FOR PRINCESS CRUISES

After months of negotiation, Carnival Corporation has signed a Memorandum of Understanding to build two new 3,600 passenger capacity vessels with the Italian State owned shipbuilder, Fincantieri, for their Princess Cruises brand. At 139,000 GRT the new vessels will be the largest in the Princess fleet, delivery being set for 2013 and 2014. As with most of the world’s ship builders, there is concern at Fincantieri that beyond 2012 the current huge order book would be exhausted so any sign of life by way of new orders is significant. The new Princess ships are prototypes that are likely to be followed by a number of sister ships.  Princess currently operates a fleet of 17 cruise ships on world wide itineraries.

RIVER SCHELDT DREDGING BEGINS AT LAST

Dredging of Antwerp’s River Scheldt began this week after nearly 15 years of negotiation between Belgium, in which country Antwerp is located, and Holland, in which country the Schedlt flows and therefore in which dredging will take place. Dutch and Belgian politicians jointly pushed the button to begin dredging which will take 15 months and eventually allow vessels up to 14,000 TEU to call at Antwerp. Tide independent navigation will increase from the present draught of 11.90 m to 13.10 m allowing vessels to sail safely with the tide at a draught of at least 15 m including 12.5% under keel clearance.

 

CONFLICT OVER PILOTAGE FEES IN FLORIDA

The shipping industry in Florida has again raised a protest at the state’s allegedly “monopolistic” harbour pilot system, and demanded an immediate overhaul based on a finding that bringing pilot fees down to a more reasonable level could save the industry $35m a year. A study, released by the Florida state legislature’s Office of Program Policy Analysis and Government Accountability, has given new impetus to complaints against the state’s system of pilotage administration. The “Florida Alliance of Maritime Organisations” (FAMO) formed last year represents 33 cruise and other international shipping companies and has since been stepping up their campaign. FAMO numbers indicate that an average pilot’s salary is $368,000 and that Florida’s 94 active harbour pilots essentially control waterborne maritime commerce in the state. Another complaint is the abscence of transparency in the process of pilotage licensing.  

In response, Florida pilots claim that the current system “provides the greatest benefit to the public and some of the change options presented are unworkable”.

 

CALIFORNIA BALLAST WATER PROPOSED RULEMAKING

The California State Lands Commission proposes regulations adding Section 2297.1 to Title 2, Division 3, Chapter 1, Article 4.7 Performance Standards for the Discharge of Ballast Water for Vessels Operating in California Waters. The proposed amendments would require the submission of information, on forms developed by the Commission, regarding the installation and use of ballast water treatment systems on vessels operating in California waters. Comments on the proposed amendments must be submitted to the Commission by 5:00 pm on March 22, 2010.

 

Market Update

The Baltic Dry Index show a slight pulse this week closing up on Thursday at 2704 points compared to 2575 points last week and 2685 points the week before.

                                      Cape Size           Panamax          Supramax 
Index                                 3570                  3138                  2053
Last week                          3224                  3045                  2076
Spot time charter          $33,400/day      $25,200/day        $21,500/day
Last week                     $30,700/day      $25,000/day       $22,700/day

Tankers:   VLCCs from the Arabian Gulf to Europe have fallen to the range of $15-20,000/day compared to $20-25,000 last week whilst Arabian Gulf to Far East is healthier at $25-30,000/day compared to $30-35,000 last week. Overall, until the mao tai stops flowing and the welcome to the Year of the Tiger is complete, markets are generally quiet.

 

 

Upcoming Events

CHAMER OF SHIPPING ANNUAL GENERAL MEETING

March 8th - Mark your calendar for our upcoming Annual General Meeting at 10:30 hrs at the new Fairmont Pacific Rim Hotel.  We’re pleased to announce that the Honourable Stockwell Day, President of the Treasury Board and Minister for the Asia-Pacific Gateway, will be our guest speaker following the completion of our annual business.  To confirm your attendance, email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

 

Feb 25              COS Owners Committee Meeting @ 12:00
Feb 28              Closing Ceremony for the Winter Olympics
Mar 3                COS Board of Directors Meeting @ 11:30
Mar 8                COS Annual General Meeting @ 10:30
Mar 9                CIABC Board of Directors Meeting @ 10:30
Mar 9                VMAA Board of Directors Meeting @ 12:00
Mar 12              Ship & Port Operations Meeting @ 10:30
Mar 17              Liner Committee Meeting @ 10:00 (tbc)
Mar 18              Navigation Services Meeting @ 10:00
Mar 18              Owners Committee Meeting @ 12:00
Mar 23              ISSC Board of Directors Meeting @ 12:00

 

Ship of the Week

94_Kruzenshtern_srb

                 Kruzenshtern

The Russian sail training ship, Kruzenshtern now berthed in North Vancouver for public viewing is a four masted barque and tall ship built in 1926 in Germany and originally named Padua. She was handed over to the then USSR in 1946 as part of Germany’s war reparations and renamed after the early 19th century explorer Adam Johann Kruzenshtern (1770-1846).

  • Home ports: Hamburg (as Padua, 1926-1946), Riga (1946-1981), Tallinn (1981-1991), Kaliningrad (since 1991)
  • Length: 114.4 m (376 ft)
  • Width: 14.02 m (46.0 ft)
  • Height: 51.3 m (168.3 ft)
  • Depth (draft): 6.8 m (22.1 ft)
  • Sail surface: 3,400 m² (36,600 sq ft)
  • Crew: 257
  • Tonnage: 4,700 tons
  • Engines: 2 x 1,000 hp (diesel)
  • max. speed: 17.3 kt (32.0 km/h)

Launched in 1926. Padua was commissioned as a cargo ship, used among other things to ship construction material to Talcahuano, Chile, returning with saltpeter around Cape Horn. Later she transported wheat from Australia. In 1946 she was handed over to the USSR and moored in Kronstadt harbour until 1961 before undergoing a major refit. From 1961 to 1965 the ship performed many hydrographic and oceanographical surveys for the Academy of Sciences of the USSR and was also used as a training vessel for naval cadets. In 1965 she was transferred to the USSR Ministry of Fisheries in Riga to be used as a school ship for future fishery officers. From 1968-72 another refit major took place, installing her current set of engines and applying her current hull colours.

Kruzenshtern has participated in many international regattas and lead the international procession of tall ships into New York Harbour in 1976 when the United States celebrated its 200th anniversary of the signing of the Declaration of Independence. Following the fall of the USSR funding became a problem, so passengers are taken aboard for that purpose. In 1995-96 she circumnavigated the world and again in 2005-06 to commemorate the 200th anniversary of Adam Johann

Russian Prime Minister, Vladimir Putin, is expected to board the vessel when visiting Vancouver to attend the closing ceremony of the Olympic Games, Russia being the next Winter Olympics host country.

94_Finnish_Wasa

        Finnish Wasa

The picture of Kruzenshtern was taken by Stephen Brown in 1976 in mid-Atlantic when serving as 2nd Mate on the Salen bulk carrier Finnish Wasa, itself a war reparations vessel originally built by the Government of Japan and gifted to the Government of the Philippines