COS Weekly News - 10 June 2011
Friday, 10 June 2011 14:33
COS Weekly News - 10 June 2011
Issue No. 161
COS SPONSORS BIMCO 39 DAY
As part of the BIMCO General Meeting which took place in Vancouver this week, the Chamber of Shipping was pleased to organize and sponsor the BIMCO 39 day of education under the theme “Green Shipping seen from the perspective of Ports and Ship Owners”. The event which was attended by an audience of 80 people was moderated by Mr.Yudhishtir Khatau, Vice Chairman and President of Varun Shipping and Mr. Chris Ng, Manager Marketing and Sales for TSI Terminal Systems Inc.
Mr. Robert Allan of Robert Allan Ltd. at the podium during the morning session
Captain Jamie Marshall of BC Ferries at the podium during the afternoon session
Mr. Darrell Desjardin, Director Environmental Programs, Port Metro Vancouver
Mr. David Bolduc, Executive Director, Green Marine Program
Mr. Jonathan Turvey, Deputy Director, Strategic Plans and Analysis, Holland America Line
Dr. Mark Trexler, DNV Climate Change, Det Norske Veritas
Mr. Robert Allan, Robert Allan Ltd. Naval Architects and Marine Engineers
Mr. Timothy Wilson, Product Manager and Principal Specialist Engineer, Lloyds Register
Mr. Howard Seto, Manager, Environment. Teekay Shipping
Capt. Jude Correa, Operations General Manager, Seaspan Ship Management Ltd.
Capt. Jamie Marshall, Vice President Fleet Operations & Training, BC Ferries
Mr. Tom Hawkins, Maritime Lawyer, Bernard & Partners
Mr. Paul Topping, Manager Environmental Protection, Transport Canada
Mr. Raal Harris, Digital Manager, Videotel
Before leaving Vancouver, BIMCO members elected their first President to come from India. Mr.Yudhishthir Khatau, Vice-Chairman and Managing Director of Mumbai-based Varun Shipping, was made the 41st President of BIMCO. Mr. Khatau’s company specializes in LPG carriers, tankers and anchor handlers. UK ship owner Mr. John Denholm was elected President Designate, to succeed Mr. Khatau in two years’ time.
COS members and guests were also treated this week to a presentation by Peter Hinchliffe OBE, Secretary General of the International Chamber of Shipping. Peter spoke to the marine industry challenges of piracy, greenhouse gas emissions reduction policy and the implementation of Emissions Control Areas.
SULPHUR MAXIMUM LOADING PARAMETERS
Please find attached the latest edition of the Sulphur Maximum Loading Parameters for your kind reference. KMCT berths were recently dredged and the soundings have now confirmed a minimum draft alongside of 12.6m (41.34”) at berth no. 4. The new parameters are effective immediately, however not that this information is subject to change without notice and while correct to the best of our knowledge at the time of issue, it should be used as an approximate guide only with the user reconfirming directly with the various authorities prior to berthing.
EXPORT DEVELOPMENT CANADA’S REPORT ON COMMODITIES
The Commodity Analyst is a monthly report on activity in the commodity markets most relevant to Canadian exporters. The report includes the latest prices, charts, tables and commentaries highlighting recent trends as well as a short-term outlook.
May saw a $10/brl drop in the price of WTI crude and prices have been hovering around $100/brl ever since. Natural gas has traded below $4/MMBtu in four of the last ten months but is finally trending upwards and is approaching the $5 mark.
Disappointing economic data from around the world put a damper on prices during May, but prices are expected to regain some of these losses this month. May was a volatile, and overall weak month, for industrial metals as demand-side concerns dominated trading. Moving into June, however, most prices are rebounding, as supply-side factors are moving back into the spotlight.
A weakening outlook for the US housing sector put downward pressure on lumber prices in May.
Pulp demand remains firm, driven mainly by Chinese imports which rose 25% y/y in April.
Grain prices fell sharply Monday after favorable weather helped crops in parts of the United States and Europe. Wheat settled down 3.8 percent, while corn fell 2.9 percent. The outlook for Canadian agricultural production has deteriorated
ACCIDENT LEAVES CANADA WITHOUT OPERATIONAL SUBMARINE
Canada’s only fully operational submarine hobbled back to CFB Esquimalt after hitting the ocean floor Saturday.
The accident means all four of Canada’s subs are not in any shape to sail: HMCS Victoria is back in the water but is undergoing extensive testing, HMCS Windsor is undergoing repair and maintenance in Halifax, and HMCS Chicoutimi, which suffered a fatal fire in 2004, is at Victoria Shipyards.
Officers on board the HMCS Corner Brook, which was alone deep in the waters of Nootka Sound off the central east coast of Vancouver Island, were being put through their paces during advanced submarine officer training. Two of the 60 sailors on board suffered minor bruising in the accident
The 12-day exercise, scheduled to wrap up Friday, abruptly ended around noon last Saturday following the grounding.
SEASPAN STEPS UP CAMPAIGN FOR PART OF $35 BILLION SHIPBUILDING CONTRACT
British Columbia Premier Christy Clark and Pat Bell, Minister of Jobs, Tourism and Innovation, are going to Ottawa this month to promote Seaspan's bid and to discuss other issues including forestry, improving BC representation in the House of Commons, and Asia-Pacific trade.
A joint federal-provincial caucus would add a sense of importance to BC's mounting efforts to support Seaspan's bid to win a share of the $35-billion of federal shipbuilding contracts for its Vancouver Shipyards and Victoria Shipyards.
In the meantime, Royal Caribbean’s Radiance of the Seas completed a 21-day stay in the Victoria Shipyard. This was the Radiance of the Seas first major revitalization since it started sailing 10-years ago and includes $20 million in refurbishments.
BCMEA/ILWU FOREMEN LOCAL 514 NEGOTIATIONS UPDATE
The BCMEA and Longshore Foremen Local 514 bargaining committees met on Monday and Thursday of this week. Due to the lack of availability of Mediator Bill Lewis and the ILWU Local 514 bargaining committee, contract talks between the parties are now scheduled to resume on Monday, June 20th.
NOMINATIONS FOR WOMEN IN TRANSPORTATION
2011 marks the sixth year of Women In™, the annual luncheon to celebrate and honour women for their excellence in leadership, philanthropy and service in a specific field. This year the Minerva Foundation is honouring Women In™ Transportation. The nomination process is now open, and you can nominate your Women In™ Transportation today! Please click here for the full nomination package.
SPECIAL CONGRATULATIONS TO OUR CAROL JENSEN
This week, Carol Jensen, was advised that her illustration was selected as one of the images to be used in the BC Children’s Hospital annual Holiday Card fundraising campaign this year. Carol’s image will be among 4 or 5 offered in the campaign that supports the purchase of new equipment, research and education programs at BC Children’s Hospital. Further details on how you can purchase her work and support this great cause will be released within the next few months.
STRATEGY ON CORALS AND SPONGES IN PACIFIC WATERS
To mark World Oceans Day on June 8th, the Honourable Keith Ashfield, Minister of Fisheries and Oceans, announced the release of a Pacific Region Cold-Water Coral and Sponge Conservation Strategy to help conserve the health and integrity of cold-water corals and sponges in our Pacific waters.
Restrictions may be placed on areas available for potential expansion of aquaculture or log dump sites based on the potential for sedimentation impacts on adjacent cold-water coral and sponge habitat. No restrictions on the movement of commercial vessels are anticipated.
US CBP RELEASES MESSAGE SET FOR OTHER GOVERNMENT AGENCIES
Earlier this week the US Customs and Border Protection agency released the final Participating Government Agencies (PGA) Message Set for Automated Commercial Environment, its future umbrella computer system.
The PGA Message set is a harmonized set of information needed by federal agencies to approve imports of cargo. CBP enforces import laws for nearly 50 agencies. CBP expects to finish building the technology to enable the collection of the PGA Message Set later this year while additional work to reform policies, processes and regulatory changes is ongoing to streamline data submission and allow for a paperless system when ACE Cargo Release capabilities begin deploying in 2012.
JAPAN TO ESTABLISH ANTI-PIRACY BASE
In a radical move, Japan is to establish a base in Djibouti in support of its anti-piracy naval operations in the Gulf of Aden. This new base, which will be Japan’s first overseas base since World War II, will be fully equipped for maintenance and training. Following criticism of its contribution to anti-piracy patrols, Norway is also believed to be intent on setting up its own set up a base in Mozambique. The Royal Thai Navy will also next month send two warships to the Gulf of Aden after the hijacking of several Thai-flagged vessels by Somali pirates.
The major Dutch ship owner Dockwise is urging that the Netherlands’ government review its policy prohibiting its home flagged ships from contracting armed guards to protect vessels from pirate attacks. The company has threatened to re-flag its fleet if the country’s politicians continue to maintain legal impediments. The point was underlined when armed guards repelled attacks on two vessels earlier this week.
The Save our Seafarers campaign plans to step up pressure on national governments to take action against piracy by appealing directly to the public with advertising that graphically illustrates the human impact of piracy.
Leading industry organizations that have contributed to the campaign have established a steering committee, which held its first meeting last week. The organizations include Intertanko, Intercargo, the International Chamber of Shipping, BIMCO, InterManager, the International Transport Workers Federation and the International Maritime Employers Committee.
Former soviet aircraft carrier Varyag
Consistent with the country’s policy of strengthening its navy, China has moved a step closer to launching its first aircraft carrier with senior generals in the People's Liberation Army confirming the existence of an aircraft carrier. The vessel is a defunct Soviet-era carrier formerly named the Varyag that was bought in 1998 from Ukraine by a Hong Kong company on the pretext that it would be used as a floating casino off the shores of Macau. Instead it has been upgraded at China's Dalian naval shipyard with combat sensors and defensive weapons and painted in the colours of the People's Liberation Army. The existence of the 67,500 ton vessel is not easily concealed and in recent months photographs have appeared in the media.
PARIS MOU AND US PORT STATE PERFORMANCE PUBLISHED
The Paris Port State MOU has published its annual rankings with Bermuda topping the white list table of good performance followed by Germany, Sweden, the Netherlands and the UK. The worst five flags on the black list are Montenegro, Sierra Leone, Togo, Libya and North Korea. The U.S. Coastguard has also published Port State Control statistics showing a marginal reduction in detention rates. In September last year the US introduced a formal policy of banning vessels with a record of repeated non-compliance, especially those showing disregard to implementation of a safety management system. The USCG said that in the four months that the policy was in force at the end of 2010 three vessels were banned. The most common deficiency was related to firefighting equipment, accounting for 19%, followed by machinery, with 15%, pollution with 11% and those concerned with the International Safety Management Code at 10%. Six flag administrations have been added to its Qualship 21 programme for 2011 — Cayman Islands, Hong Kong, Liberia, Russia, UK and Vanuatu, bringing the total to 20. The program gives vessels accepted into the scheme a reduction in Port State Control examination frequency.
SUSTAINABLE SHIPPING AWARDS 2011
The shortlist of 40 contenders for the 2011 Sustainable Shipping Awards which are to be published in London on July 7 has now been published.
WAL-MART STILL THE NO.1 IMPORTER
Wal-Mart remained the No.1 importer of containerized ocean cargo according to the Journal of Commerce top 100 US Importers and Exporters with almost 700,000 TEU in 2010. The company also was No.39 on the top exporters 2010 list with 28,000 TEUs exported from the US. Second place on imports went to Target with 455,000 TEU. Wastepaper remains the leading export commodity
Terminal operators in Los Angeles and Long Beach have meanwhile raised the bar for participation in the PierPass program increasing fees by 20% to cover increased labour costs. Members of the West Coast Marine Terminal Operators Agreement have announced that effective July 4 an increase of the “traffic mitigation fee” from $50 per TEU to $60/TEU, pro-rated for FEU. The not for profit company “PierPass” was established by the terminals in 2005 and is a levy on container handling during straight time which is designed as an incentive to switch to off-peak night gates. Night shift labour rates have increased 31% since 2006.
Staying with the theme of port costs, a just released OECD report estimates there will be a need for more than $800bn in capital expenditure for port infrastructure by 2030. The overall report which looks at airport, port, road, rail, energy and water investment says that better funding and financing arrangements will be needed in most countries, due to their deficit and debt levels and “other demands on budget resources”. The initial report estimates that maritime container volumes could quadruple by 2030, with the largest TEU throughput rises in China, followed by the US and India. The report goes on to warn that current infrastructure is not adequate to handle a 50% increase, let alone a doubling or tripling of passenger and freight in 20 years. Port infrastructure capital expenditure alone will require total annual investment of $33bn up to 2015, rising to $40bn a year to 2030.
Clearly intent on being an important component of this trade growth, Seaspan has this week confirmed an order for seven 10,000 TEU containerships valued at $700m, with options for a further 18 vessels. Were all 25 vessels to be delivered, the contract is worth $2.5bn. The ships will be built at the Jiangsu Yangzi Xinfu Shipbuilding and Jiangsu New Yangzi Shipbuilding in China, both part of Yangzijiang Shipbuilding. Just this week, the Seaspan owned 13,100 TEU vessels COSCO Glory and COSCO Pride were delivered by Hyundai heavy Industries, South Korea.
GREEK PORT PRIVATIZATION RILES UNIONS
The Greek government’s decision to privatize the country main ports is not sitting well with the country’s labour unions and disruption seems inevitable as workers resist government plans, which they have branded as “Thatcherite” and “criminal” to privatize the country’s largest gateways. Piraeus and Thessaloniki, the two largest ports have been prioritized for privatization in a program which the government is hoping will provide some $70 billion in revenues for the country’s empty coffers. Trades unions are bitterly opposed to this move on account of the likely impact on job security. Under an agreement reached last year, Cosco Pacific operates three berths in Piraeus, the country’s largest container port, under a 35 year, $4.2 billion contract. The European Union and the International Monetary Fund are currently preparing a second major bailout package for Greece to give the debt-ridden country more time to put its finances on a sustainable path. One of the conditions of continued debt financing is an aggressive program to privatize state assets.
SHIPPING MAGNATE SAMMY OFER PASSES
The passing last week of Israeli billionaire Sammy Ofer at the age of 89 marks the transition of his shipping empire of more than 200 vessels to his two sons. Mr. Ofer’s interests include those of Zim Line, Zodiac Maritime, the biggest UK-flag operator; and Singapore-based Tanker Pacific, not to mention extensive interests in energy, manufacturing, real estate and emerging technologies
Born in Romania in 1922, he emigrated with his family to Haifa, then part of Palestine, in 1924. He acquired his first ship, a small general cargo vessel, in the 1950s but the Ofer brand was not born until the 1960s when the family changed its name from Hershkovotz. That is when Ofer Brothers Group was set up. Mr Ofer was expected to attend the official opening of the UK National Maritime Museum’s new Sammy “Ofer Wing” next month. He had donated $33m towards the cost of the new gallery and in Israel had given away more than $100m of his personal fortune to charitable causes. His family said he would be remembered for running “an enormously successful and closely-knit international shipping and business group, with fiercely loyal and devoted management and ships’ crew.”
Zim Line, which is wholly-owned by Israel Corp, is ranked 17th in the world with a boxship fleet of around 327,000 teu. Mr Ofer was ranked 12th place in Lloyd’s List’s top 100 most influential people in shipping in 2010. He was made an honorary Knight Commander of the Order of the British Empire in 2008 in recognition of his involvement in the London shipping community and contribution to the UK’s maritime heritage. Mr Ofer was also a high-respected art collector of impressionist and post-impressionist paintings.
The Baltic Dry Index closed slightly weaker on Thursday at 1428 points compared to 1489 points last week and 1467 points the week previously. A softening of demand for Capesizes and smaller sizes in the Pacific was somewhat neutralized by healthy demand for Panamaxes in the Atlantic.
Cape Size Panamax Supramax
Index 1767 1903 1355
Last week 1934 1795 1445
Spot time charter $ 9,800/day $15,300/day $14,200/day
Last week $11,500/day $14,400/day $15,100/day
Upcoming Meetings and Events
INSTITUTE OF CHARTERED SHIPBROKERS CENTENERY CELEBRATION
DAY OF THE SEAFARER 2011
June 25 – This year, the celebration will take the form of an online campaign, in which IMO is asking everyone to voice their support using social networks. On the Day of the Seafarer, people around the globe are encouraged to say “Thank you seafarers” on Facebook, via tweets, by posting a video on YouTube, discussing on LinkedIn, or even writing an inspirational blog.
Mission to Seafarers will be holding its annual barbeque on the official IMO Day of the Seafarer from 5pm at the Flying Angel Club located at 401 E. Waterfront Road, Vancouver, BC. To RSVP or for more information call 604-253-4421.
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. For more information visit: http://www.sustainableshipping.com/events/2011/vancouver/
Jun 14 COS Ship & Port Operations Committee Meeting @ 12:00
Jun 14 COS Liner Committee Meeting @ 10:00
Jun 16 COS Navigation & Pilotage Committee Meeting @ 10:00
Jun 21 BC Marine Vessel Air Quality Working Group Meeting @ 09:00
Jun 21 CIABC Board of Directors Meeting @ 10:30
Jun 21 Port Metro Vancouver Annual General Meeting @ 15:00
Jun 22 Lloyd’s / COS Seminar on LNG as a Fuel
Jun 22-24 NMSA Safety Innovation Forum 2011
Jun 23 ICS Canada Centenary Celebration
Jun 24 Vancouver Grain Exchange Golf Tournament
Jun 25 IMO Day of the Seafarer
Oct 12-14 Sustainable Shipping Conference
Ship of the Week
Royal Princess – debuts in 2013
The first "all new" ship design from Princess Cruises in almost a decade is coming in two years - the new Royal Princess; 141,000-tons and 3600 passenger berths, will debut in the spring of 2013. She will be the first of two new-generation ships for Princess which are being built by Fincantieri at their Monfalcone, Italy shipyard. The prototype design is an evolution of the line's classic style of ships, while including some new features and expanded signature spaces
The two most immediately noticeable innovations are the glass-bottom cantilevered public areas on the top pool deck. Both will allow passengers to walk out over the side of the ship and see straight down to the ocean, 128-feet directly below. On the starboard side the over-water Sea Walk extends from the edge of the ship by over 28 feet. It is glass enclosed all the way around; top, bottom and both sides, including the floor which creates a view of the ocean 128 feet directly below - as well as a commanding view of the entire ship from a vantage point usually only seen by the officers on the bridge.
The first Royal Princess was christened by Princess Diana, the mother of Prince William in 1984. She was widely-acknowledged as defining a new era in innovative cruise ship design and when she left the fleet in 2005, the name was assigned to one of Princess' smaller ships from 2007-10. Anyone taking bets on who will be invited to name the new ship?
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.
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