COS Weekly News - 18 March 2011

Issue No. 149

 

 

SEVERAL JAPANESE PORTS CLOSED INDEFINITELY

Several of ports on Japan’s North Eastern coast that were damaged by last week’s earthquake damage and subsequent Tsunami are closed indefinitely and in some cases probably permanently. As seen from the below map the affected ports are Kashima, Hitachinaka, Hitachi, Onahama, Soma, Sendai, Shiogama, Ishinomaki, Kesennuma, Ofunato, Kamashi, Miyako and Hachinohe had all suffered serious damage from the earthquake.

The implications of the disaster are being felt across the nation on account of the government trying to simultaneously manage humanitarian, nuclear and financial crises. The four most severely affected prefectures (states) in the northeast, Iwate, Miyagi, Fukushima and Ibaraki account for about 6 percent of Japan's economy. Power supply has failed in the worst affected areas whilst steel plants and oil refineries have been forced to suspend operations. The northeast is also a major center for car production, with a myriad of parts suppliers and a network of roads and ports. The major car manufacturers have been forced to shut down manufacturing until component supply lines are re-established and this will have a significant impact on the international auto carrier trade.

Lloyds Intelligence data recorded approximately 3,300 vessels off the east coast of Japan, one of the busiest sea lanes in the world at the time of the earthquake. Gearbulk’s Emu Arrow broke free from her berth when the Tsunami hit the port of Kashima but despite reported extensive hull damage she remained afloat a short distance from her berth. The K-Line Capesize “China Steel Integrity” was swept ashore whilst anchored off the same port.

Other significant vessels impacted by the Tsunami were:

CS Victory, a Handysize, was carried toward the breakwater and now rests on the bottom at Ishinomaki.

Three NYK Panamaxes – Shiramizu, Shirouma and Coral all sustained varying degrees of hull damage

the incredible aftermath

 

See the link for more before and after pictures http://www.abc.net.au/news/events/japan-quake-2011/beforeafter.htm

 

The US Maritime Administration (MARAD) issued an Advisory stating that, due to radiation leaks from the damaged nuclear power plant near Fukushima, Japan, vessels are urged to avoid transiting within 50 miles of that site (37-19 North, 141-01 East). This cautionary area may expand depending upon prevailing wind and weather. In the event that a vessel bound for the United States has transited within the cautionary area, the master should submit transit information, including the date and total time within the cautionary area, to the cognizant USCG Captain of the Port (COTP) using the comment block on the 96-hour advance notice of arrival (ANOA).

 

 

WESTSHORE ANNOUNCES CAPITAL EXPANSION

For the two months ended February 28, 2011, Westshore loaded 3.9 million tonnes as compared to 4.0 million tonnes for the same period in 2010.  Based on the information currently available, Westshore anticipates volumes in 2011 will be in excess of the 24.7 million tonnes shipped in 2010.

 

The Corporation also announced today that it will be proceeding with a further capital upgrade to the site involving the change out of the existing single dumper with a double dumper together with related equipment improvements.  The anticipated costs for this project will be approximately $43 million (to be financed by bank debt) and will take until the end of 2012 to complete. Once complete, it is anticipated that the rated terminal throughput capacity will be approximately 33 million tonnes, up from the current capacity levels of approximately 28-29 million tonnes. The project is subject to certain required permit approvals being received.

 

 

SEASPAN MARINE CORPORATION JOINS GREEN MARINE

Seaspan Marine Corporation, which operates more than 150 tugs, ferries and barges, has become the first major West Coast shipowner to join the Green Marine environmental program. The company is enrolling its marine fleet and shipyards in Green Marine. The inclusion of Seaspan Shipyards also represents another significant FIRST for Seaspan and Green Marine.

 

In October 2010, the Prince Rupert Port Authority was the first west coast participant to join Green Marine and in January this year, Quickload CEF in Prince Rupert added their name to the list of participants.

Established in 2008, Green Marine aims to improve the Industry’s environmental performance beyond regulatory compliance by encouraging member participants to apply additional best practices, set reduction targets and/or introduce new technologies to improve their record in areas such as invasive species, air emissions and greenhouse gases, cargo residues, and oily waters among others.

 

 

SEASPAN PLACES MAJOR NEW ORDER FOR LARGE CONTAINER SHIPS

Seaspan has placed a significant new shipbuilding order worth more than $2bn for up to 22 vessels (including options) of 10,000 TEU capacity with Chinese shipyard “Yangzijiang Shipbuilding. The new class of vessel will be of post 2014 Panamax dimensions, with a beam of 48.2m, and will be up to 30% more economical in terms of fuel efficiency and load capability than current designs. The transaction was confirmed at the same time that a new joint venture was unveiled between the closely associated Seaspan, Carlyle, and Tiger Groups aimed at providing finance for up to $5Bn of further new build investments having primary focus on bringing together Chinese shipbuilders, lenders and state-owned companies to support China’s policy of increased control over cargo movements.

 

Hong Kong based OOCL is also reported to be on the verge of ordering 6 vessels and 4 options of 13,000 TEU capacity with Samsung.

 

 

Government News

RAIL FREIGHT SERVICES REVIEW – FINAL REPORT RELEASED

The Minister of State (Transport) released the Panel’s Final Report on March 18, 2011. The Government of Canada has also announced its response to the Rail Freight Service Review.

To request a copy of the Final Report, please visit the Transport Canada Webstore.

 

 

Other News

LYTTLETON RESUMES COAL EXPORTS

Just three weeks after the second devastating earthquake to hit the City of Christchurch and the neighbouring Port of Lyttleton in New Zealand, coal exports have resumed from the country’s largest coal export terminal, albeit from a fixed point loader. Coal trains from the west coast of New Zealand have been stockpiling product at the port since the beginning of March. Lyttelton this week lifted its emergency status and moved into the planning phase for long-term rehabilitation of its damaged facilities

the picturesque port of Lyttleton NZ

 

 

INDIAN NAVY DETAINS 61 PIRATES

The Indian navy announced this week that it detained 61 pirates and rescued 13 crew members from a mother ship operating in the Indian Ocean. The Mozambique registered fishing vessel, Vega 5, was hijacked last December. Two Indian navy ships intercepted the ship in the Arabian Sea and engaged the pirates in a gun battle before prevailing. A large number of small arms and heavy weapons were seized onboard. However, not to be deterred, the Vega 5 was promptly replaced following the successful hijacking by around 30 pirates of the small Indonesian multipurpose vessel Sinar Kudus, which within hours was in use as a mother ship for an unsuccessful attack on the bulk carrier Emperor.

 

 

EUROPEAN SHIPOWNERS “WILL FAIL TO MEET 2015 ECA STANDARDS”

The European Community Shipowners Association (ECSA) is continuing to maintain that its members will not meet the Emission Control Area 2015 standard of 0.1% sulphur content in fuel, or equivalent, and are calling for a more lenient approach from authorities. The main ECA is in North Europe and includes the Baltic Sea, North Sea and English Channel. By the time the 2015 rules come into force, Continental North America will also be an ECA and subject to the same standards. To meet the low sulphur emission requirements it is generally accepted that owners have to opt for one of three options - low sulphur distillate fuels, exhaust gas cleaning systems or the use of natural gas as a fuel. ECSA is calling for more time to evaluate the options. Meanwhile, Cyprus was this week taken to task by the European Union for failing to enforce maritime environmental directives i.e. the allowable 0.1% sulphur content in fuel for ships at berth.

 

 

BELUGA CHARTERING GOES UNDER

Following several weeks of inner turmoil, Bremen based Beluga Chartering, the company’s key business unit, filed for insolvency this week as a “result of considerable irregularities with regard to turnover and liquidity”. KG funds in the interest group “Charter Ships Beluga” have cancelled their management and charter contracts leaving the company with very few remaining ships.

Also this week, TBS International, a major U.S. based tween-deck operator which has been under financial pressure since the 2008/09 recession, has warned that its ability to continue as a going concern is again in jeopardy. The company renegotiated loan covenants only two months ago but weak market conditions continue to drag the company down.

 

 

EXPORT DEVELOPMENT GUIDE TO DOING BUSINESS IN CHINA
The rise of China to its current rank of a global economic powerhouse is not an anomaly but, in fact, a return to the norm. For most of its long history, China had been a cultural and scientific world leader. This updated guide serves as a practical, hands-on guide designed to help Canadian companies learn about the Chinese marketplace and how to do business there. Download the guide now.

 

 

Market Update

The Baltic Dry Index fell for the fourth consecutive day, as Capesizes saw a 8% drop over the week in spot rates amid an oversupply of vessels made worse by reduced Japanese demand for dry cargo after infrastructure damage wrought by the earthquake and Tsunami. The Index closed on Thursday at 1533 points compared to 1538 points last week and 1317 points the week previously.

 

Cape Size             Panamax            Supramax

Index                                1702                   2110                    1567

Last week                         1856                   2120                    1522

Spot time charter      $19,400/day          $17,000/day        $16,400/day

Last week                   $10,500/day          $17,000/day         $15,900/day

 

 

 

 

 

Upcoming Meetings and Events

 

IMDG DANGEROUS GOODS COURSE

March 30 - The Chamber of Shipping is hosting the first of two Dangerous Goods Courses on March 30^th. This is a full day session – details of the course content, venue and cost are attached. The second session is tentatively scheduled for April 28^th. Space is limited for the March 30^th class.

 

 

BUSINESS OF SHIPPING UPCOMING COURSES

March 31 - The next full day “Business of Shipping” course will be held on March 31 which is specifically customized for an Executive and Management audience is also close to a sellout.  Please see the attached flyer for program and registration details.

 

June 29 - Regular full day Business of Shipping course in Vancouver

 

 

NAUTICAL INSTITUTE ANNUAL GENERAL MEETING – VICTORIA, BC

June 2-3 – The Nautical Institute will hold its first Annual General Meeting and Command Series Conference to coincide with BIMCO’s General Meeting in Vancouver, BC on the following week. See attached flyer for more information.

 

 

BIMCO GENERAL MEETING JUNE 5-8

June 5-8 - The program and registration details for the BIMCO General Meeting in Vancouver this year is now available at http://gm.bimco.org. The Chamber of Shipping is hosting the BIMCO 39 session on Green Shipping seen from the Perspective of Shipowners. BIMCO39 is a networking platform for professionals under the age of 45 focusing on: Creating friendships, promoting cultural exchange, enhancing knowledge of the business/industry, and developing future business opportunities.

 

 

INTERNATIONAL SUSTAINABLE SHIPPING CONFERENCE OCTOBER 12-14

All Aboard: Collaboration for Change - 2011 marks the Sixth year of the annual Sustainable Shipping Conference, which leads the way in debating the next big issues within the industry, while focusing on the realities and practicalities of shipping. COS President, Stephen Brown, has been invited to Chair the Sustainable Shipping Conference 2011 that look to allay the fears of the industry by focusing on how collaboration can provide an advantageous and positive experience in meeting impending regulations. For more information visit: http://www.sustainableshipping.com/events/2011/vancouver/

 

 

Mar 22 ISSC Board of Directors Meeting @ 12:00

Mar 24 COS Owners Committee

Mar 29 VMAA Board of Directors Meeting

Mar 30 PACMAR/NANS Committee Meeting

Mar 30 COS IMDG Dangerous Goods Course

Mar 31 Business of Shipping Executive Course, Vancouver

Apr 4 BC Marine Vessel Air Quality Working Group Meeting @ 09:00

Apr 5 CIABC Board of Directors Meeting @ 10:30

Apr 6 COS Board of Directors Meeting @ 11:30

Apr 6 WMCC Meeting on eNavigation @ 14:30

Apr 6 Mission to Seafarers Annual General Meeting

Apr 8 Winter Contingency Planning Workshop

Apr 12 COS Ship & Port Operations Committee Meeting @ 10:00

Apr 13 COS Liner Committee Meeting @ 09:30

Apr 18 Plimsoll Club – Annual General Meeting

Apr 21 Navigation & Pilotage Committee Meeting @ 10:00

Apr 22 Good Friday – Office Closed

Apr 25 Easter Monday – Office Closed

May 5 CIFFA Annual General Meeting

May 8-10 International Pulp Week and Conference

May 10 Plimsoll Club Golf Tournament

May 25-27 Port Security Conference

May 26—28 Annual BC Tugboat Conference

Jun 2-3 Nautical Institute General Meeting

Jun 5-8 BIMCO General Meeting

Jun 22 Lloyd’s / COS Seminar on LNG as Fuel

Jun 22-24 NMSA Safety Innovation Forum 2011

Jun 24 Vancouver Grain Exchange Golf Tournament

Oct 12-14 Sustainable Shipping Conference

 

 

Ship of the Week

Star Kilimanjaro – Grieg Star Shipping

 

 

Built 2009, Hyundai Mipo Dockyard

LOA 208.7m

Beam 32.2m

DWT 49,862 MT

Container capacity 1450 TEU

2 x 70 MT gantry cranes with full rain protection

Speed 16 knots

Sister vessels: Star Kinn, Kirkenes, Kvaren

The company’s history goes back to 1884 when Joachim Grieg established a ship broking business in Bergen, Norway. In 2008, Star Shipping’s business and fleet was divided between shareholders the Grieg Group and Westfal Larsen Shipping. Whilst the company currently operates a fleet of 46 ships of about 2m tons DWT, in June 2010 the Group contracted for up to ten new-buildings of around 50,000 DWT each to be delivered to by the end of 2013.

 

 

Mount Kilimajaro is an inactive stratovolcano in north-eastern Tanzania and the highest mountain in Africa at 5,895 metres or 19,341 ft above sea level. It is the highest freestanding mountain as well as the 4th most prominent mountain in the world, rising 5,882 metres or 19,298 ft from its base.