COS Weekly News - 27 January 2012
Monday, 30 January 2012 11:14
COS News – Week ending 27 January 2012
Issue No. 193
DISNEY CRUISES RETURNS TO VANCOUVER IN 2013
Beginning May 27, 2013, the Disney Wonder will sail seven-night cruises from Vancouver to Tracy Arm, Skagway, Juneau and Ketchikan. The return of Disney Cruise Line to Vancouver as the hub for its Alaska cruises in 2013 was decided on several factors. Vancouver's closer proximity to Alaska provides for a better cruise itinerary with longer port stays in Alaska and passengers’ feedback on the “Vancouver experience” was very positive. Disney's new Alaska cruises have proven popular with customers, and the line is planning to stay in the region long term.
ILWU LOCAL 514 - UNION VOTE SCHEDULED
Longshore Foremen Local 514 has advised the BCMEA there will be a “stop work” meeting for the Lower Mainland areas of Vancouver and New Westminster. The meeting will be for the purpose of ratifying the Tentative Collective Agreement reached on January 14th, 2012. The “stop work” meeting is scheduled for Monday January 30, 2012 from 8am to 4:30pm. Operations will recommence in Vancouver/New Westminster Monday afternoon at 1630. Please note “stop work” meetings will NOT take place in Prince Rupert and on Vancouver Island.
CANADIAN PORTS CLEARANCE ASSOCIATION WINDS DOWN
In view of the changes to the Canadian Wheat Board, the Canadian Ports Clearance Association has announced that the CPCA will terminate its operations across Canada effective August 31, 2012.
CN SAYS LOCOMOTIVE ENGINEERS IN CANADA RATIFY NEW AGREEMENT
CN announced today that members of the Teamsters Canada Rail Conference (TCRC) have ratified a new collective agreement covering approximately 1,800 CN locomotive engineers in Canada. The three-year contract, retroactive to Jan. 1, 2012, provides wage increases along with standard benefit improvements to the TCRC-represented locomotive engineers.
CANADIAN PACIFIC GAINS MAJOR EXPORT POTASH CONTRACT
Canadian Pacific Railway signed a 10-year agreement this week with Canpotex to haul the majority of the major potash exporter’s shipments to a terminal in Vancouver. Under the agreement, CP, in conjunction with Union Pacific Railway, will also ship potash loads to Portland, Oregon. The agreement, which takes effect July 1, comes after CP announced a plan to spend up to $1.2 billion on capital improvements over the next several years.
PORT METRO VANCOUVER’S TRAFFIC PILOTS ENDS
The Truck Traffic Pilot Program ended on January 25th. The City of Vancouver will be introducing a number of turn restrictions for port destined container truck and reducing the speed limit on Nanaimo and Renfrew Streets to 30km/hr for all commercial trucks.
MISSION TO SEAFARERS ROBERTS BANK FACILITY UPGRADE FORMALLY OPENED
Thanks to the support of Vancouver’s maritime community, the upgrade to the Mission to Seafarers Roberts Bank facility is now formally open for business. An unexpected last minute generous donation from the Forest Legacy Foundation has ensured that the cost of the upgrades is now fully covered. The Mission also wishes to once again acknowledge the financial support of the following organizations:
Teekay Foundation, OOCL Shipping (Canada) Ltd, Valles Steamship (Canada) Ltd, Chamber of Shipping of British Columbia, Methanex Corporation, Enbridge Northern Gateway Pipelines, Empire Shipping Agency Ltd, TSI Terminal Systems Incorporated, Port Metro Vancouver, Westshore Terminals, Westward Shipping, International Sailors' Society Canada, All Saints Anglican Church Women, Christian Reformed Church and the many other organizations which supported the International Maritime Week fundraiser dinner held in September 2011 at the Royal Vancouver Yacht Club.
Individual personal gifts from: Captain Bert Bjorndal, Captain R. M. Hansen, Captain G.D. Ruddick, Maurice Fellis, Captain Todd Hillier, Captain C.J. Soderberg, John Floren, Captain P.D. Jull, Captain S. Turpin, Captain H.N. Forward, Captain Ed Lein, Captain Ken Wright, Captain Roy Haakanson, Victor Monasch, Hans Verhoeff, Hank Hamstra and Captain Ken Robinson.
In his speech to an assembly of donor representatives, Mission Board of Directors Chair, Capt. Bert Bjorndal, also paid tribute to the active support of Deltaport and Westshore Terminals. Both he and Senior Port Chaplain Nick Parker, offered thanks to these terminals for their support of a facility which has become highly popular and appreciated by seafarers from around the globe.
Government Updates
FEDERAL GOVERNMENT SUPPORTS SHORE POWER FOR PORTS
The Honourable Denis Lebel, Minister of Transport, Infrastructure and Communities, launched the Shore Power Technology for Ports Program earlier this week in Vancouver. The $27.2 million program will help Canadian ports install shore power to reduce air emissions from ships. A call for proposals will be issued this spring.
CANADIAN COAST GUARD CELEBRATES 50 YEARS OF SERVICE
Yesterday the Canadian Coast Guard kicked off its 50th Anniversary celebrations across Canada.
Vija Poruks, Assistant Commissioner for the Pacific Region, welcomes Randy Kamp, Parliamentary Secretary to the Minister of Fisheries and Oceans, to the 50th Anniversary celebrations in Victoria, B.C.
The Canadian Coast Guard owns and operates the federal government’s civilian fleet, and provides key maritime services to Canadians. As a Special Operating Agency of Fisheries and Oceans Canada (DFO), the Canadian Coast Guard helps DFO meet its responsibility to ensure safe and accessible waterways for Canadians. The Canadian Coast Guard also plays a key role in ensuring the sustainable use and development of Canada’s oceans and waterways.
CBSA CELEBRATES INTERNATIONAL CUSTOMS DAY 2012
Yesterday, Canada Border Services Agency celebrated the 2012 annual International Customs Day and recognized the efforts of the Canada Border Services Agency (CBSA). This year's theme –Borders Divide, Customs Connects – recognizes the importance of co-operative border management in the global context, where strength is derived from partnership and joint innovation. The day comes under the auspices of the World Customs Organization (WCO) in which Canada has been an active member since 1971.
Other News
COSTA CONCORDIA
The latest casualty count is 16 dead and a similar number unaccounted for as Italian divers relentlessly continue to search for the bodies of those still missing. The Italian authorities have clearly done everything possible to accommodate the relatives of the dead and missing including taking them out to the vessel for private services of remembrance. Removal of bunker fuel from the vessel is also now underway.
Costa has formally tabled a compensation package of $14,460 per uninjured passenger for “indemnification, covering all patrimonial and non-patrimonial damages, including loss of baggage and personal effects, psychological distress and loss of enjoyment of the cruise vacation”. This is in addition to reimbursement of passengers for the value of the cruise, travel expenses to reach the port of embarkation and to return home, medical expenses and expenses onboard during the cruise. However the American legal system is in full swing and is said to be seeking a minimum of $160,000 per uninjured passenger “on the grounds of the entire trauma associated with the incident”. This figure will inevitably be far higher in the case of death and injury.
EU PLOTS COURSE ON SHIPPING CO2 EMISSIONS
The European Commission has initiated its long threatened move to address shipping’s CO2 emissions. The EU target is to reduce industrial CO2 emissions by 20% by 2020 however, the EU Commissioner for Climate Action continues to insist that the preference is for an international solution brokered by the IMO. Last year aviation was forced to join the EU trading scheme despite the US and China fighting it tooth and nail. Options being considered for shipping are a compensation fund, an emissions trading scheme or a fuel or emissions tax in combination with a mandatory emission reduction per ship.
EUROPE TURNS THE SCREW ON IRAN’S OIL EXPORTS
The European Union this week formally adopted an oil embargo against Iran over its nuclear program. The agreed sanctions involve an immediate ban on all new oil contracts while existing contracts must be terminated by latest July 1. Given that the EU currently relies on Iran for some 20% of its oil imports this is a significant move in the ongoing efforts to bring Iran to the negotiating table. However, Tehran has countered this by tabling a law which would effectively ban Iran from exporting to the EU before any embargo could come into force. Meanwhile the International Atomic Energy Agency, the UN's nuclear watchdog has confirmed it is sending another team to Iran at the end of January "to resolve all outstanding substantive issues". Only last November the IAEA said it had information suggesting Iran had carried out tests "relevant to the development of a nuclear explosive device".
US Aircraft carrier USS Abraham Lincoln
Simultaneous with the EU announcement, the USS Abraham Lincoln carrier group as well as the British Royal Navy HMS Argyll and a French warship, have passed through the Straits of Hormuz at the entrance to the Gulf without incident. The USS Carl Vinson carrier group is also on station in the Indian Ocean.
GERMAN NAVY CAPTURES PIRATE MOTHERSHIP
FGS Lueback closes in on the dhow
EU NAVFOR warship FGS Lueback has freed a dhow and its 15 Indian crew after three days of cat and mouse across the Indian Ocean. Unfortunately, to secure the release of the hostages, naval forces allowed pirates injured in a recent attack on the dredger Flintstone to be transferred to Italian product tanker Enrico Levoli, also prowling the ocean as a mother ship since being hijacked in December. Enrico Levoli was escorted back to the coast of Somalia where her unfortunate crew are also no doubt hoping for early release.
Two foreign aid workers, a US woman and a Danish man, kidnapped in Somalia last October have been freed by the US military. US Navy Seals were parachuted into Somalia earlier this week to carry out an overnight rescue operation. The two hostages were freed uninjured but nine of their captors were killed.
IMO Secretary General Koji Sekimizu is meanwhile pushing for high-level participation from the UN at the organization’s anti-piracy events this year. Mr Sekimizu met last week with UN Secretary General Ban Ki-moon in New York to review UN and IMO efforts to combat Somali piracy. A counter-piracy capacity-building conference is scheduled for May 15 at IMO headquarters in London followed by a policy debat on the carriage of arms the next day.
DEBATE ON US HARBOR MAINTENANCE TAX RUMBLES ALONG
“House Ways and Means Subcommittee on Oversight” and the “Subcommittee on Select Revenue Measures”, this week announced that a subcommittee has been struck to convene hearings on Harbor Maintenance Funding and maritime tax issues with a focus on Harbor Maintenance Tax, maintenance underfunding and the tax treatment of foreign shipping operations. The Harbor Maintenance Tax Trust Fund (HMTF) provides funding for the United States Army Corps of Engineers (Corps) to dredge federally maintained harbors to their authorized depths and widths. In recent years, HMTF expenditures have remained flat while revenue has continued to increase with rising imports. The HMTF’s uncommitted balance therefore continues to expand and reached an estimated $6.1 billion at the beginning of fiscal year 2012. In fiscal year 2010 alone, $1.2 billion in Harbor Maintenance Taxes were collected, while only $793 million was spent on dredging and related maintenance.
OOCL IN MEGA DEAL AT LONGBEACH
Orient Overseas Container Line (OOCL) has secured preliminary approval for a $4.6bn 40-year lease on the Middle Harbor property at the Port of Long Beach. As part of the deal the port is committed to invest $1.2bn to develop the new 300 acre terminal whilst OOCL will invest approximately $500m in cargo handling equipment to bring the terminal up to a handling capacity of 3m TEU per year. Subject to final approvals which are expected in February, this would be the largest such contract for any port in the United States. Construction time is estimated to be eight years.
DUTCH TEENAGER COMPLETES SOLO ROUND THE WORLD VOYAGE
Guppy being escorted back into At. Maarten Laura Dekker voyage track
The 16 year old Dutch teenager Laura Dekker who set out to become the youngest solo around-the-world sailor has completed her voyage. Laura was greeted by a cheering crowd as she sailed back into the St Maarten harbour in the Caribbean after a year at sea. She left on 20 January 2011 aboard her 11.5m (38ft) boat Guppy. At the age of 14, Laura and her father had fought a legal battle with Dutch social services, who had argued that the voyage could harm her emotional and social development. Her mother had expressed concerns about the solo voyage, but later lifted her objections.
Laura was born on a yacht off the coast of New Zealand during a seven-year world trip and began sailing solo when she was 10. On her return from her epic voyage, Laura spoke of her wish to settle permanently in New Zealand. The Guinness Book of Records decided to stop recognising records for "youngest" sailors after the controversy surrounding her bid.
COS MEMBER RATES AT THE COAST HOTELS
The Chamber of Shipping has negotiated member rates with the Coast Hotels & Reports. To access these rates 1-800-663-1144 or 604-682-6278 within Vancouver or by going on-line to www.coasthotels.com and using your Internet booking code, CSBC68. The rate sheet is attached for your information.
Market Update
Markets have been on life support with barely a detectable pulse over the Chinese New Year holiday. As a consequence, the index closed down further on Thursday at the “jump from the window” level of 753 points, compared to 893 points last week and 1105 points the week before. Matters are not helped by the deliberate roll-over of vessel deliveries by shipyards to register them as “2012 models” which has resulted in around 1.3 Capesizes delivered each day of the year to date.
Cape Size Panamax Supramax
Index 1477 863 721
One week ago 1559 1058 858
Spot time charter $ 5,700/day $ 6,900/day $ 7,500/day
One week ago $ 6,800/day $ 8,400/day $ 9,000/day
Containers: Drewry's trans-Pacific spot rate benchmark has managed to remain steady at $1,832 per FEU, the same as in the last two weeks. However, the number of laid up container vessels has increased from around 200 in early December to closing on 300 now, representing around 150,000 TEU of capacity.
Bunkers: The underlying political tension in the Gulf is keeping up the pressure on bunker prices with HFO 380 averaging around $730 per ton which is $4 up on last week.
Upcoming Events
EMISSIONS CONTROL AREA PRESENTATION
February 7 - Paul Topping, Manager Environmental Protection for Transport Canada in Ottawa will provide members and guests with an update on the implementation of the North America Emissions Control Area (ECA). Information flyer is attached.
NEXT BUSINESS OF SHIPPING COURSE
February 21 – This upcoming course will feature a full day focused on legal and chartering modules in the tanker, bulk and container sectors. Information flyer is attached and the secretariat is now accepting registrations.
COS ANNUAL GENERAL MEETING
February 24 – The Chamber of Shipping’s Annual General Meeting is scheduled for February 24th 10:30 hrs at the Vancouver Convention Centre West Building. Our guest speaker following the meeting formalities is Mr. Ian Anderson, President of Kinder Morgan Canada. Information regarding our AGM is attached.
PLIMSOLL CLUB PUB NIGHT
February 29 – The Plimsoll Club’s next pub night will be held at the Kingston Taphouse from 5:30 pm. Tickets are $25. To RSVP contact Renae at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or tel: 604-681-2351.
ICMA XVIII - REGISTRATION
May 13 – 18 - The Vancouver Maritime Arbitrators Association, (VMAA), invites you to the International Congress of Maritime Arbitrators, ICMA XVIII, to be held at the Pan Pacific Hotel, Vancouver British Columbia, Canada. ICMA provides a forum for arbitrators, national maritime arbitration associations, marine insurers, ship owners, charterers, cargo interests and the legal community from around the world to come together to exchange views and developments. After 21 years ICMA returns to Vancouver in 2012. For more information or to register, visit www.icma2012.com
Jan 30 Discussion on Bunkering Procedures @ 14:00
Jan 31 ICMA Planning Meeting
Feb 1 COS Board of Directors Meeting @ 11:30
Feb 2 COS Owners Committee Meeting @ 12:00
Feb 3 WMCC Meeting with Transport Canada
Feb 6 BC Marine Vessel Air Quality Working Group @ 09:00
Feb 7 COS Emissions Control Area Information Session @ 09:00
Feb 7 CIABC Board of Directors Meeting @ 10:30
Feb 9 PPA Financial Review Meeting @ 09:00
Feb 9 VMAA Board of Directors Meeting @ 12:00
Feb 9 Pacific Region e-Navigation Subcommittee Meeting @ 13:00
Feb 14 PNCIMA Socio-Economic Workshop @ 08:30
Feb 14 COS Ship & Port Operations Meeting @ 12:00
Feb 15 COS Liner Committee Meeting @10:00
Feb 16 COS Navigation & Pilotage Committee Meeting @ 10:00
Ship of the Week
Hardanger at Lynnterm this week
Inaugurating Westfal-Larsen’s entry into the BC to China forest products trade, M.V. Hardanger is this week loading the largest single hit export tonnage in Lynnterm’s history namely 44,600 tons of wood pulp for discharge in Qingdao, Shanghai and Changshu.
Built in 1995 by Daewoo Shipbuilding & Marine Engineering
Owned and Managed by Westfal Larsen, Bergen, Norway
LOA 213m.5m
Beam 31m
GRT 37,150 tons
DWT 50,058 MT
Speed 16 knots
in Norway Panama transit with wind towers on deck
M.V. Hardanger is a perfect example of the standard design features of today’s modern fleet of open hatch gantry crane vessels. The majority of these specialized, and relatively expensive vessels to build, are dedicated to carriage of forest products in break bulk on world-wide liner trades, usually under long term contracts of affreightment.
From a historical perspective, H. Westfal-Larsen, born in 1872, established his own shipping company in 1905 when he took over the management of the new buildings S.S. "Hardanger"and S.S. "Venezia" designed for coastal timber trading. The company rapidly grew until World War 1 during which 11 ships were lost despite the neutrality of Norway. The inter-war years saw a new round of expansion into the tanker sector and the North & South American liner trades but during World War II a further 22 ships were lost from a fleet of 36.
a previous Hardanger – built in 1924 GRT 4000, DWT 7,300 tons 1972 built Hardanger – an early gas carrier
Following the war, development of liner trades was again the company’s priority before becoming a partner in Star Shipping in 1964. In 1995 Westfal-Larsen's holdings in Star Shipping were transferred to the newly established Masterbulk Pte. Ltd. in Singapore, however in 2009 the partners to Star Shipping decided to go their separate ways with Masterbulk today owning a fleet of 23 open hatch box shaped vessels engaged in international trading.
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