COS Weekly News - 8 October 2010

Monday, 11 October 2010 15:11

COS News – Week ending 8 October 2010

Issue No. 127

 

 

 

CN REACHES TENTATIVE 3-YEAR DEAL WITH TCRC

CN reached tentative collective agreements with the Teamsters Canada Rail Conference - Conductors, Trainmen and Yardmen (TCRC-CTY) late Friday last week averting a potential strike or lockout. Upon ratification, CN will have labour stability with this group for the next three years. Details of the three-year labour contracts are being withheld pending ratification.

 

The TCRC-CTY represents approximately 2,700 CN conductors, yard-persons and traffic coordinators on CN's network in Canada.

 

 

NANAIMO HABOUR PATROL BOAT OUT OF SERVICE

It has been brought to our attention that the NH Patrol II is out of service, with no fixed date for return. As a result there is no local service provider for stationary or in-transit pilot transfers at Nanaimo.  Tymac Launch Service and Gulf Island Water Taxi are trying to accommodate requests.  There is an attempt to certify another provider for stationary pilot changes.

 

 

WATSON ISLAND BID

The City of Prince Rupert announced on Wednesday that a joint venture between the Metlakatla Development Corporation, the Prince Rupert Port Authority and the Lax Kw’alaams band is considering acquiring the Watson Island property currently owned by the City.

 

Under the proposal the joint venture, which is said to include local, regional and national entities, will cover the monthly maintenance costs of the site in exchange for exclusivity rights as it relates to acquiring the former pulp mill site.

 

It is anticipated that due diligence and a feasibility study by the group could take six months to a year, but the idea has the support of the City of Prince Rupert.

 

TECK AND CANADIAN PACIFIC ANNOUNCE 10-YEAR AGREEMENT FOR COAL EXPORTS

Canadian Pacific Railway Limited and Teck Resources Limited announced today a 10-year agreement to transport Teck's steelmaking coal from its five mines in southeast BC to Vancouver area ports.

 

The agreement reflects the companies' commitment to work together to achieve growth in the volume of coal shipped through a range of economic and marketplace dynamics and provides for flexibility over the long term. The agreement provides for investments by CP that enhance coal handling capacity to provide for Teck's volume growth.

 

RECORD DRAFT OUT OF VANCOUVER HARBOUR

On the evening of September 23^rd the Unique Carrier departed from Neptune Terminals at a record breaking draft of 17.76 M.  The 177,876 DWT bulker was loaded with 164,989 MT of Teck’s metallurgical coal bound for Shasteel, China.  Seasonal tidal variation allowed lading to the fully declared tonnage.   The previous record hold for the deepest draft vessel in the Inner Harbour was the Star Europe in May 2004 with a 17.54 M draft.

 

 

 

Government News

 

COOPERATION BETWEEN LAW ENFORCEMENT LEADS TO $9M SEIZURE

The Canada Border Services Agency (CBSA) announced today that border services officers at the Port of Vancouver recently seized a combined total of 275 kilograms of suspected cocaine and suspected methamphetamine. The drugs were turned over to the Royal Canadian Mounted Police (RCMP) for investigation resulting in criminal charges.

 

CSBA officers made the first discovery of narcotics on September 13, 2010, while searching two 40-foot marine containers shipped from Mexico. The containers' contents had been declared as crafts, however upon further examination border services officers found stone bricks and lawn ornaments.

 

While examining the shipment, anomalies were detected in the stone bricks. Concealed within 238 of the 6000 bricks shipped, were cellophane-wrapped packages. The contents of the packages tested positive for suspected cocaine.

 

On September 17, 2010, border services officers examined a separate shipment of five marine containers that were also from Mexico. Officers again found anomalies that led to the discovery of suspected cocaine and suspected methamphetamine concealed in stone bricks.

 

The seven marine containers combined concealed a total of 212 kilograms of suspected cocaine at a value of $7.6 to $8.5 million and 63 kilograms of suspected methamphetamine at a value of $1.2 to $1.3 million.

CBSA, RCMP and VPD officers work closely to deter the smuggling of illegal drugs into Canada to protect Canadians and deter organized crime.

 

 

GOVERNMENT OF CANADA APPROVES DUTY REMOVAL FOR SHIPS

A long standing COS policy objective was partially realized last week when the Department of Finance announced the cancellation of the long standing 25 per cent import duty on certain classes of vessel of LOA 129m and above. The formal Privy Council announcement is attached. In seeking clarification, we are advised that the term cargo vessel also includes container vessels.

 

The removal of duty on ships imported into Canada for use in Canada's coasting trade is an important measure to help maintain the competitiveness of Canadian industry, particularly in Canada's industrial heartland along the Great Lakes/St. Lawrence marine highway. Duty removal will encourage new marine transportation initiatives in Canada to take advantage of the underutilized marine highway and relieve congestion currently experienced on ground-based modes of transport.

 

New vessels will provide important gains in efficiency thus ensuring that those Canadian manufacturers and resource producers that rely on marine transportation are competitive both within Canada and around the world. New vessels will also ensure the continued employment of thousands of Canadians who work onboard vessels and onshore to support the Canadian domestic fleet.

 

Full details on the duty relief announced in this message will be published in the Canada Gazette, Part II on October 13, 2010.

 

 

 

Other News

 

IMO MARINE ENVIRONMENT PROTECTION COMMITTEE 61 – OUTCOMES

A comprehensive International Chamber of Shipping report on the outcome of last week’s meeting of the IMO Marine Environmental Protection Committee is attached to this week’s newsletter. Topics debated include:

§    GHG reduction measures

§    U.S. Territories ECA application

§    Future fuel availability

§    Specification of marine fuels

§    Ballast water treatment

§    Recycling of ships

§    Anti-fouling systems

 

Despite heavy pressure for a review, The European Commission has announced there will be no delay to the 2015 deadline for mandatory consumption of distillate fuels (maximum 0.1% sulphur content) within the Emission Control Area. In particular, Sweden and Finland are concerned for the additional cost of shipping forestry exports. On the other hand, Denmark has opposed any reconsideration of the legislation and is pushing the concept of an “LNG Cluster” to encourage the development of LNG powered vessels in short sea trades.

 

BALLAST WATER CONVENTION GAINS ANOTHER SIGNATURE

Malaysia is the latest country to ratify the IMO's International Convention for the Control and Management of Ships Ballast Water and Sediments. The ballast water convention was initially adopted in 2004 but has been significantly delayed awaiting ratification by the required 30 states, representing 35% of the world tonnage. The accession by Malaysia brings the total number of contracting parties to 27, representing 25.3% of world tonnage.

 

MEMORIAL FOR KAZUO JOHNNY ONODERA

A date for the memorial of Johnny Onodera has been set for Saturday, 30 October, 2010 from 14:00-16:00 at the Terminal City Club. 

 

MR. GIUSEPPE D’AMICO

Italy's oldest ship owner, Mr. Giuseppe d'Amico, President of Italian tanker owner Fratelli d'Amico, has died after nearly 70 years in shipping. Mr. Damico was believed to be 97 years of age. The company was founded in the early 1930s by young Giuseppe and his father Massimino Ciro d'Amico to service the family timber-trading business. Two of the company’s ships survived World War II which were supplemented by the purchase of a number of Liberty Ships. In recent years, the company has largely focused on the purchase and trading of a modern fleet of product tankers.

 d’Amico product tanker High Venture

 

 

 

Market Update

 

On the back of a late surge in capsize rates, the Baltic Dry Index closed stronger on Thursday at 2662 compared to 2446 points last week and 2737 points the week before.

 

                                     Cape Size        Panamax            Supramax

Index                               4019                  2372                   1885

Last week                       3370                  2462                    1847

Spot time charter        $39,900/day       $19,100/day        $19,700/day

Last week                  $31,900/day       $19,800/day        $19,300/day

 

In the tanker sector with roughly 3 VLCC’s available in the Middle East for every spot cargo quoted, rates continue at rock bottom, below operating costs. Unless there is a sharp uptake in activity ahead of the northern winter, it seems inevitable that there will be significant lay ups in this sector.

 

 

Upcoming Meetings and Events

 

BUSINESS OF SHIPPING – FULL DAY COURSE

October 28^th – The next full-day Business of Shipping course will be held on October 28^th.  For more see the attached brochure or contact Rose Bray at 604-681-2351.

 

MEMBERS APPRECIATION RECEPTION

October 28^th – Save this date for our annual Members’ Appreciation Reception at Steamworks Uber Lounge.

PLIMSOLL CLUB FALL BANQUET

November 5^th - This year the Plimsoll Club’s Fall Banquet will return to downtown Vancouver after four years at the River Rock Hotel and Casino in Richmond.   The banquet will take place at the Sutton Place Hotel located at 845 Burrard Street and will include live entertainment and several prizes.  The proceeds from the evening will go directly to the Greater Vancouver Food Bank. Tickets are priced at $120 each.  To reserve your tickets contact Andrew Yeo at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

 

 

Oct 11              Thanksgiving Day – Statutory Holiday – Office Closed

Oct 14              COS Ship & Port Operations Committee Meeting @ 12:00

Oct 14              Pacific Marine Advisory Board Meeting @ 13:00

Oct 19              VMAA Board of Directors Meeting @ 12:00

Oct 26              Plimsoll Club Board of Directors Meeting @ 12:00

Oct 27              PACMAR & NANS Meetings @ 10:30

Oct 28              Business of Shipping One-Day Course in Vancouver

Oct 28              COS Members Appreciation Reception @ 17:00

Nov 1-4             National Canadian Marine Advisory Committee Meetingsin Ottawa

Nov 5                Plimsoll Club Fall Banquet

Nov 9                COS Ship & Port Operations Committee Meeting @ 12:00

Nov 9                VMAA/IMCA Meeting @ 12:00

Nov 10              COS Liner Committee Meeting @ 10:00

Nov 11              Remembrance Day - Statutory Holiday - Office Closed

Nov 16              ISSC Board of Directors Meeting @ 12:00

Nov 18              COS Navigation & Pilotage Committee Meeting @ 10:30

Nov 18              COS Owners Committee Meeting @ 12:00

Nov 19              COS Board of Directors Strategic Planning Session

 

 

Ship of the Week

 

  

                                     Le Boreal

                                                           new expedition cruise ship

 

Built 2010 by Fincantieri, Ancona, Italy

Owned and operated by Compagnie du Ponant

LOA 142M

Beam 18m

GRT 12,500

Maximum passenger capacity 268 (224 normal)

Purpose built for Arctic and Antarctic cruising

Sister ship to be delivered IN 2011 L’Austral

 

 

 

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