COS Weekly News - 2 March 2012
Monday, 05 March 2012 17:07
COS News – Week ending 2 March 2012
Issue No. 198
ASIAN GYPSY MOTH
The start of the high risk season for Asian Gypsy Moth has not gone well with six vessels without inspection certifications due in this week. These vessels are required to be inspected for Asian Gypsy Moths at anchorages in Prince Rupert and Constance Bank by Canadian Food Inspection Agency before they are permitted entry into the ports. Vessels are encouraged to conduct their own inspections en route to Canada and the US and remove any egg masses detected on board. Please be guided by CFIA’s directive D-95-03: Asian Gypsy Moth - Plant Protection Policy for Marine Vessels or visit our website for further information.
COS AGM PICKETED BY ANTI-TANKER PROTESTERS
The Chamber’s Annual General Meeting held last week at the new Vancouver Convention Centre was addressed by Mr. Ian Anderson, President of Kinder Morgan. Mr. Anderson spoke to Kinder Morgan’s plans to expand their Burnaby oil export terminal and overall level of oil exports, particularly to China. The meeting was picketed by a small group of anti-tanker protesters.
This year’s gathering was attended by over 100 members and guests who were treated to a light buffet lunch. For anyone not attending the meeting, our annual report is available on our website.
Following the Annual General Meeting, the Board of Directors appointed the following officers:
Chairman Bruce Rothdram, President & CEO
Empire Shipping Agency
Vice Chairman Dave Hill, General Manager
Compass Marine Services
Treasurer Peter Bernard, Associate Counsel
Bernard & Partners
The Board of Directors will meet next week to appoint Committee Chairs.
NPA OSPREY TAKES SHAPE
NPA Osprey (left) is the second vessel that the Nanaimo Port Authority has contracted in the past year from Daigle Welding & Marine of Campbell River. The NPA Eagle, a 32-foot smaller version of the new vessel purchased in 2011, recently had a new 110 hp diesel fire pump installed with monitors on the bow and stern. NPA Eagle (above right) is seen testing her fire-fighting capacity (or perhaps just giving the cruise dock a wash down). The port is hosting a meeting of the Chamber’s Vancouver Island Committee next week on March 6.
HISTORIC FILM ON GRAIN HANDLING ONLINE FOR FIRST TIME
To celebrate its 100th anniversary, the Canadian Grain Commission has joined with the National Film Board to make the film, "Grain Handling in Canada," available online. While the film is housed on the National Film Board's site at http://www.nfb.ca/film/grain_handling_in_canada/, the Canadian Grain Commission offers a link to the film on its 1951-1960 timeline. The 23-minute, colour film follows grain from harvest to export and describes the role of the Board of Grain Commissioners (as the Canadian Grain Commission was known at the time). The Canadian Grain Commission is the federal agency responsible for establishing and maintaining Canada's grain quality standards.
Captain Francesco Schettino who remains under house arrest is facing more charges as a consequence of the Costa Concordia tragedy. Captain Schettino is already likely to be tried for alleged multiple manslaughter and abandoning ship before evacuations were complete, however Italian prosecutors have added accusations of abandoning incapacitated passengers and failing to inform maritime authorities. Five other ship's officers including the ship’s Chief Officer and three Costa Cruises executives are also under investigation. Pre-trial hearings, including disclosure of the content of the ship's "black box" recorders, are due to open on March 3.
To compound the company’s troubles, the 1968 built Costa Allegra was left disabled earlier this week following an engine room fire in the Indian Ocean. The vessel was en route from Diego Suarez in Madagascar to the Seychelles before heading north to the Suez Canal. The fire left the ship was without main power supply but there were no injuries to passengers or crew. Given the proximity to a known piracy zone, nine members of the Italian navy's anti-pirate unit were already onboard. A deep-sea French fishing vessel took the Allegra in tow to the Seychelles where she arrived yesterday (March 1) to disembark her unlucky passengers.
Costa Allegra is a converted containership – originally Annie Johnson (right)
Costa Allegra under tow by a French trawler
The ship was built in 1969 by the Wärtsilä Turku Shipyard in Turku, Finland as the container ship Annie Johnson for Sweden’s Johnson Line. Her sister ship Costa Marina was originally the Axel Johnson. The vessels were converted in 1992 in Genoa.
DISNEY FANTASY CHRISTENED
Disney's new cruise ship, the 4000 passenger Disney Fantasy was christened in a lavish ceremony in New York last night with Mariah Carey acting as the vessel’s godmother. The vessel will be based in Port Canaveral and will offer 7-day Caribbean cruises.
Disney Fantasy arrives in New York twin hull cruise ship China Star
In another development, the Chinese entrepreneur Mr. Huang Weijan is the proud owner of China’s first domestically owned cruise ship. The 1992 built, twin hull, reputedly six-star Asia Star was purchased from Stanley Ho, the renowned “King of Macao Gambling” for 283 million Yuan (45 million dollars) and has been renamed China Star.
On the other side of the world, the P&O cruise ship Adonia and Princess Cruises’ Star Princess were both declined permission to enter the port of Ushuaia in Southern Argentina earlier this week. Both vessels had earlier called on the Falkland Islands which is claimed by Argentina. Offshore supply and service vessels undertaking oil field research off the Falklands are already banned by Argentina. A UK naval task force forcibly re-took the Islands following an Argentine invasion in 1982.
RENA OFFICERS PLEAD GUILTY IN NZ
The Master and 2nd Officer of the cruise ship Rena have both pleaded guilty in a Tauranga Court to charges relating to the grounding of their ship off Tauranga on October 5 2011. Charges include a willful attempt “to pervert the course of justice” after altering of ship documents following the grounding. The Master faced four charges and the second officer three with each charge carrying a penalty of up to seven years in jail. Sentencing will take place on May 25th.
The stern section of the Rena has sunk after the ship broke up in January and the process of salvaging accessible containers on the fore section is almost complete. Severe weather has forced the crane barge Smit Borneo back into port for shelter this weekend. In an unrelated development the container ship MSC Carole (above right) is reported to be aground on a reef off the port of Jakarta, Indonesia.
CHINA UNDERLINES OPPOSITION TO ANY EU EMISSION TRADING SCHEME
Kicking off what promises to be a lively meeting of the IMO’s Marine Environmental Committee this week, China has underlined its opposition to the inclusion of shipping in any European Union carbon emission trading scheme, adding that “any such unilateral measure would be against international law”. The EU is in the process of ratcheting up the pressure on the IMO to up its game in greenhouse gas emission reduction and, in the process, threatening to include shipping in regional market-based scheme.
Japan and the World Shipping Council (WSC) outlined details of a new Energy Incentive Scheme (EIS) designed to "stimulate significant energy efficiency improvements in the world fleet” with focus on achieving emission reductions as opposed to generating revenue. EIS would generate revenue, but only from ships that do not meet a specified efficiency standard linked to the IMO's Energy Efficiency Design Index (EEDI). IMO Secretary-General Mr. Koji Sekimizu has called on member countries to work together “to find a suitable market-based measure to curb shipping’s emissions by next year”.
BALLAST WATER MANAGEMENT CONVENTION FACING IMPLEMENTATION CHALLENGES
IMO’s Marine Environment Protection Committee meeting in London this week received a paper prepared by Japan arguing that global repair yard capacity cannot handle the workload involved in retro-fitting ships with ballast water treatment systems. From a financial perspective, installations will cost between $1m and $5m per vessel depending on size with almost 70,000 vessels needing to be fitted out by 2020. This translates to an average of 24 vessels per day between now and 2020 – a physical impossibility. Many owners are keeping their options open given continuing uncertainty as to future regulatory requirements in the U.S. The cost of a BWM system depends on the amount of water it can process per hour, a typical cost being between $800 and $1,100 per cbm.
For its part, New York State last week staged a “strategic retreat” from implementation of a unique state ballast water regulation that would have required treatment standards 1000 times requirements than IMO standards. In belated acceptance that the required level of technology does not exist, New York State has “granted” all ships a blanket waiver until December 2013 from the installation of ballast water treatment equipment that meets the state’s unachievable 2008 law. What happens in 2013 we shall have to see but this issue has underlined the difficulties in overlapping authority between various levels of U.S. government.
HKSA SEEKS AN INSIDE EDGE ON CHINESE CARGOES
The Hong Kong Shipowners’ Association has called for preferential treatment over foreign owners when competing for Chinese cargoes. There is a long tradition of Chinese charterers being closely aligned with Chinese ship owners and perhaps understandably, Hong Kong based owners want similar status. The Association has also called for China to revoke VAT of 17% payable by Hong Kong’s ship owners when ordering ships from Chinese yards.
GEARBULK CONVERTING TO FULL ASIAN CREWS
The world’s largest open hatch gantry crane vessel operator, Gearbulk Shipping, has this week announced that it is falling into step with its major competitors and will convert its fleet to exclusive Asian seafarer manning by early 2013. The company which is 51% owned by the Jebsen family and 49% by Mitsui OSK operates a fleet of 90 vessels with 17 new buildings on order. The company recently announced that it plans to open new central London offices and establish a new “Business Service Centre” in Manila to support its global operations. The move comes as part of a major review of the company’s operational structure.
NIGERIAN PIRATES FORCIBLY REMOVE CREW MEMBERS FROM VESSEL
Another ship was attacked by Nigerian pirates this week whilst anchored just 3 miles from Port Harcourt, fairway buoy. The Master and Chief Engineer, both Russian, and a Filipino crew member were forcibly removed as hostages in broad daylight from the small reefer Dutch owned ship Breiz Klipper which is already the seventh ship this year to be menaced by pirates operating in the area.
Breiz Klipper HMDS Absalon
intercepted pirate mother ship
On the other side of Africa, 16 seamen were rescued but two, a Pakistani and an Iranian, tragically lost their lives this week during a Danish Navy operation to rescue them from a mother ship (above right) operated by pirates in the Gulf of Aden. It was reported that 17 pirates were arrested unharmed. The deceased seamen were apparently still alive when Danish commandos reached them but too badly injured to be saved.
SEA LAUNCH COMMANDER IN SEASPAN’S NORTH VANCOUVER SHIP YARD
A previous “Ship of the Week” is currently dominating the North Vancouver skyline. Commercial satellite launch command ship Sea Launch Commander has returned to Seaspan’s Vancouver Drydock for routine maintenance after last visiting in 2004. Sea Launch Commander and its independent Odyssey launch craft, a self-propelled oil drilling platform, have carried out more than 30 successful launches, for commercial satellite craft bearing names like DIRECTV, Koreasat, Galaxy, Telstar, and EchoStar. All launches are carried out at sea in the equatorial zone being the most direct geographical launch pad origin for rockets to carry satellites into orbit.
WORLD’S OLDEST CLIPPER SHIP TO RETURN TO AUSTRALIA
City of Adelaide in her prime
as she looks today in Bonnie Scotland
The world's oldest surviving clipper ship, the 54m City of Adelaide built in 1864 is to be moved from Scotland to a new home in South Australia. A 100 ton steel cradle recently arrived in Irvine, Scotland, to support the fragile hull for its voyage to Port Adelaide. The ship which was designed for carriage of emigrants to Australia came close to being broken up because of its advanced state of decay. In 1893 it became a hospital ship and in 1924 was converted into a training ship at Irvine, and renamed HMS Carrick. For years it lay rotting on a slipway at the Scottish Maritime Museum, with the cost of repairs put in excess of £10m.
Sequence of names: City of Adelaide (1864-1922), HMS Carrick (1922–1948), Carrick (1948–2001), City of Adelaide (since 2001).
There is intense excitement in her namesake city Adelaide at the prospect of the famous vessel’s return.
IN MEMORY - BARRE, Richard David
It is with very deep sadness that we announce the sudden passing of Rick on Friday, February 24 at age 52. He was born in Burgeo, Newfoundland and currently lived life in Yarrow, BC. He will be deeply missed by his wife Karen and his cats Spike and Lulu, his Mother Libby and her husband Patrick, brothers Terry and Larry, and sisters Wendy and Janet and families, as well as, all his good friends. He was pre-deceased by Gordon Barre, his loving step father. A celebration of Rick's life will be held at the Yarrow Community Centre (4670 Community St.) on Friday, March 2, 2012 at 1pm. In lieu of flowers, etc., please feel free to contribute to the Canadian Diabetes Association or charity of your choice.
The index remained pretty quiet over the week and closed on Thursday at 763 points, compared to 706 points last week and 723 points the week before.
Cape Size Panamax Supramax
Index 1527 839 732
One week ago 1471 849 647
Spot time charter $6,000/day $6,700/day $7,600/day
One week ago $5,400/day $6,800/day $6,700/day
Tankers: China’s crude oil imports rose 5% last year to around 5m barrels per day, however ton-mile demand increased by only 1.1% as a result of the opening of a connection from the Eastern Siberia-Pacific Ocean pipeline that supplies Russian oil exports to China by land. A 3% drop in US imports last year resulted in a 3.4% ton-mile demand. Of interest therefore to the tanker sector is that China generated 448bn ton-miles, whilst the US generated 422bn ton-miles even though the US imported 8.7m bpd (4 x VLCC) versus Chinese imports of 5.2m bpd (2.4 x VLCC)
Containers: Another General Rate Increase (GRI) of $400-500 across the board effective March 1 in the crucial Asia to Europe trade has taken some of the heat off ocean carriers after another week of abysmal financial results for 2011 having been reported. Estimates of collective losses for the year have been revised significantly upwards. APM Terminals has meanwhile announced that it seeks efficiency gains of around $200m over five years from its 55 global port operations by working more closely with container carriers. Chief executive Mr. Kim Fejfer said: “Think about the amount of waste that occurs every day in our business. There is low productivity in ports, low reliability in carriers – and too little trust and sharing of information between the parties. So I believe there is a huge financial bounty to be discovered here.” The executive team at the AP Moller-Maersk container terminal subsidiary estimates potential savings up to $1bn a year if ports and carriers in the industry improve performance and work more closely together. APM Terminals handled 33.5m TEU in 2011 – an 8% increase over 2010.
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
GREEN MARINE ANNUAL CONFERENCE – GREEN TECH 2012
May 29 – 30 – Green Tech 2012 will be held this year in Quebec City at the Loews Hotel Le Concorde. This will be Green Marine’s 5th edition of its annual conference on green technologies and innovation in marine transportation. Detailed information and registration forms for exhibitors and participants are available on Green Tech 2012 website : www.green-marine.org/annual-conference.
Mar 5 PMV EcoAction Working Group Meeting @ 13:00
Mar 6 COS Island Committee Meeting @ 09:30
Mar 6 CIABC Board of Directors Meeting @10:30
Mar 7 COS Board of Directors Meeting @ 11:30
Mar 13 COS Ship & Port Operations Committee Meeting @ 12:00
Mar 14 Regional CMAC @ 09:00
Mar 14 COS Liner Committee Meeting @ 10:00
Mar 15 COS Navigation & Pilotage Committee Meeting @ 10:00
Mar 20 ISSC Board of Directors Meeting @ 12:00
Ship of the Week
RBD Ocean of Joy - alongside at Viterra
Year Built: 2010 by COSCO Dalian Shipyard
Owned by the Noble Group, Hong Kong
Chartered to Rizzo Bottiglieri De Carlini Armatori SpA (RBD), Italy
Operated by Al Ghurair Resources LLC, Dubai
LOA 229 m
Beam 38 m
DWT 93,143 t
Speed 13 knots
silhouhette captured when passing Victoria inbound and alongside at Cargill berth 1 in North Vancouver
This good example of a modern post-Panamax bulk carrier sailed from Vancouver last weekend with the largest single shipment of canola ever loaded in the port of Vancouver. Local agents Colley West advise that total cargo loaded was 73,918 tonnes supplied by Cargill and Viterra, Thanks go to Colley West for the story and what a great name for a ship.
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