COS News – Week ending 15 July 2011
Issue No. 166

 

PORT METRO VANCOUVER BOARD APPOINTMENTS

Metro Vancouver’s Port Cities Committee appointed Ms. Penny Priddy to the board of directors of the Vancouver Fraser Port Authority for a term of three years, effective June 1, 2011.

The Governor in Council also reappointed Ms. Anne Bancroft-Jones to the board of directors for another three-year term, effective June 23, 2011.

 

KITIMAT LNG TO PURCHASE EUROCAN INDUSTRIAL SITE

KM LNG Operating General Partnership (Kitimat LNG) announced that it has entered into an agreement to purchase the former Eurocan industrial site from West Fraser. The sale is subject to obtaining government approvals for the transfer of related permits and licenses.

KM LNG Operating General Partnership currently has an application for a 20-year export licence before Canada's National Energy Board.

PMV NOTICE OF FIELD STUDIES

As part of the Container Capacity Improvement Program, Port Metro Vancouver is undertaking a number of studies in and around Roberts Bank to gather information and data to assist in evaluating potential road and rail improvements at Deltaport. Ecology field surveys will be conducted in mid to late July 2011 and a noise monitoring field surveys between July and August 2011.

For more information visit the CCIP website.

  

Government News

GOVERNMENT INVESTS IN TRANSFORMATION OF CANADA’S FOREST INDUSTRY

The federal government is investing $53.5 million to advance the transformation and evolution of Canada’s forest industry. These investments are part of the government’s plan to improve the environmental performance and economic competitiveness of Canada’s forest industry by focusing on innovation and new product development. This will ultimately expand market opportunities for both traditional and novel Canadian wood and pulp and paper products, while protecting Canadian jobs.

 

CUSTOMS NOTICE 11-008 – SUN-SETTING OF POST AUDIT CARRIER PROGRAM

Canada Border Services Agency (CBSA) announces in Customs Notice 11-008 its intention to introduce changes to the post-audit carrier program as of August 1, 2014. As of this date, the post-audit carrier privileges will only be available within the Customs Self Assessment (CSA) carrier program.

Over the next three years, the import process will see changes resulting from the introduction of the 3rd phase of Advance Commercial Information (ACI). This is commonly referred to as eManifest. Further information on eManifest may be found at http://www.cbsa-asfc.gc.ca/prog/manif/menu-eng.html. Under this process, unless otherwise exempted, all trade chain partners will be required to provide advance cargo, conveyance (includes crew) and Advance Trade Data (ATD) to the CBSA for risk assessment purposes. Trade chain partners (TCPs) who do not provide the necessary information within specified timeframes may be subject to a penalty under the Administrative Penalty System (AMPS).

Under eManifest, only carriers who are trusted traders will be permitted, with CBSA authorization, to transport in-bond freight without ATD from the first point of arrival (FPOA) to an inland sufferance warehouse pending provision of missing ATD data. This includes transporting carriers participating in CSA, Partners in Protection (PIP) or Free and Secure Trade (FAST).

Post audit carriers who are not approved CSA participants by August 1, 2014 will revert to bonded carrier status at that time.

 

CUSTOMS NOTICE 11-007 CANADA-COLOMBIA FREE TRADE AGREEMENT

CBSA’s Customs Notice 11-007 advises that the Canada-Colombia Free Trade Agreement (CCOFTA) will be implemented on August 15, 2011. With the exception of a few agricultural goods, the CCOFTA will essentially eliminate the duties on all related imports, either immediately upon implementation of the agreement or through a tariff phase-out.

 

CUSTOMS NOTICE 11-012 - NEW “MODE OF TRANSPORT” CODE FORM B3-3

Canada Border Services Agency has issued Customs Notice 11-012 for the attention of importers and customs brokers who submit Form B3-3, Canada Customs Coding Form for the release and accounting of goods in the air and marine modes and there is no carrier code for the transporter of the goods.

The CBSA system normally requires a carrier code to be entered into Field 46, Carrier Code at Importation, of the B3-3 where the total value for duty is $2500.00 CDN or more in the air and marine modes. In certain situations, goods arrive in Canada in these modes and there is no applicable carrier code i.e. passenger on an aircraft carrying commercial goods. In these situations, the importer or customs broker is to use code 8 in field 7 of the B3-3. Field 46 is to be left blank.

 

Other News

IMO’s MEPC 62 MEETS IN LONDON

In his opening address to delegates at this week’s meeting on the all important Marine Environment Protection Committee, the Secretary General of the IMO, Mr. Efthimios Mitropoulos stressed the importance of sustainability in the marine industry. Specific reference was made to the so called Rio + 20 U.N. Conference on Sustainable Development to be held in June 2012 in Rio de Janeiro. See the attached full text of the speech. Being painfully aware of the potential high cost of failure, delegates were seemingly motivated by a greater willingness to compromise on various proposals tabled this week to achieve meaningful GHG emission reduction measures.

BANKRUPT DAVIE SHIPYARD GETS ANOTHER LIFELINE

Following the failure of negotiations this week with Italy’s Fincantieri, SNC-Lavalin has stepped in to form a joint venture with the prospective new buyers of Davie Ship Yards in Quebec. Under the plan, Davie Yards’ assets would be acquired by a new entity held jointly by Upper Lakes Group and Daewoo of South Korea, with the aim of allowing the yard to be eligible to bid on the federal ship building contracts within the July 21 deadline under the National Shipbuilding and Procurement Scheme. Davie has been in creditor protection since February 2010 and currently employs two maintenance workers.

MAERSK COMMITS TO INNOVATIVE FEEDER SHIPS

Maersk has agreed to charter the first two units of an innovative 2000 TEU capacity container feeder vessel under construction in China for UK based Graig Shipping. The Jin Hai yard has signed an agreement with Graig for three vessels with the option for an additional three. The Maersk chartered vessels known as the Marlin 2000 Blue design and which will deliver in the fall of 2013, has been developed in collaboration with engine maker Wärtsilä, class society DNV and the ship yard. The company has developed additional designs namely Marlin 2500 Jade and Marlin 2500 Green, incorporating higher capacity, emission reduction and a dual fuel options including liquefied natural gas meeting Emissions Control Area requirements.

Meanwhile, consolidation in the liner sector has reached its highest level since the advent of containerization. Alphaliner estimates that the 20 largest carriers now control about 84% of the global container shipping market compared to 2000 when they had a combined market share of just under 70%.

 

CONTINUED WEAKNESS IN CAPESIZE MARKET ENCOURAGES SCRAPPING

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HMCS VANCOUVER DEPARTS FOR MEDITERRANEAN

   

HMCS Vancouver sailed from Esquimalt last weekend, destined for the coast of Libya. The Halifax Class frigate will replace her sister ship HMCS Charlottetown in support of the UN sponsored and NATO-led arms embargo on that country. Vice Admiral Dean McFadden, the Chief of the Maritime Staff lead the navy’s departure salute. HMCS Vancouver with 225 crew members is under the command of Commander Bradley Peats. Launched between 1988-1995, and commissioned between 1992-1996, Canada’s 12 City Class (now Halifax Class) frigates currently form the high end of its naval capabilities. Work began in 2010 on Canada’s FELEX (Frigate Life Extension) program which is scheduled to complete in 2017 with HMCS Halifax.

 

Market Update

Market optimism was decidedly lacking as the northern world takes to the beaches for the summer. The Baltic Dry Index closed down on the week at 1367 points compared to 1453 points last week and 1413 points the week previously.

                                  CapeSize             Panamax                 Supramax

Index                          1943                    1606                        1270
Last week                    2126                    1663                        1282
Spot time charter    $11,800 /day         $12,800/day              $13,300/day
Last week               $14,100/day          $13,300/day              $13,400/day

 

 

Upcoming Meetings and Events

Jul 19 COS Ship & Port Operations Committee Meeting @ 10:00

Jul 19 ISSC Annual General Meeting @ 12:00

Jul 20 COS Liner Committee Meeting @ 10:00

Jul 20 Plimsoll Club Event at Nat Bailey Stadium

Jul 21 COS Navigation & Pilotage Committee Meeting @ 10:00

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

Jul 27 COS Board of Directors Meeting @ 11:30

Jul 27 Institute of Chartered Shipbrokers Annual General Meeting @ 16:00

Aug 2 CIABC Board of Directors Meeting

Aug 6 An Evening at the Vancouver Maritime Museum Fundraiser

Sep 17 Mission to Seafarer’s 4^th Annual Cycle for Seafarers Event

Sep 21 Mission to Seafarers Dinner Fundraiser

Oct 12-14 Sustainable Shipping Conference

 

 

Ship of the Week

 

concept design of a new series of NSCSA general cargo vessels

The National Shipping Company of Saudi Arabia (NSCSA) has recently ordered four unique new general cargo vessels from Hyundai MIPO Shipyard. The 26,000 DWT vessels will be fitted with heavy lift cranes and will be used in the company’s liner service between the U.S. East Coast, the Red Sea-Arabian Gulf and the Indian subcontinent via Europe. Contract price for the four vessels, with an option for two more is approximately US$411 million. Delivery of the ships is expected to start begin at the end of 2012 and continue through the end of 2013.

NSCSA presently owns 17 VLCCs, 15 chemical carriers and 4 RoRo ships. By 2014, the fleet is expected to grow around 52 vessels.

            Saudi Hofuf in St. John NB last weekend

The National Shipping Company of Saudi Arabia (NSCSA) was formed by Royal Decree in 1979 as a Public Company, 28% owned by the Saudi Government and the remaining being held in public shares by Saudi Nationals.

The company has grown from a minor regional player operating multipurpose vessels to become the country’s national carrier and one of the biggest shipping companies in the world. During the course of diversification, the company has developed into the transportation of general cargo, crude oil chemicals and LPG.