COS Weekly News - 30 March 2012
Friday, 30 March 2012 13:48
COS News – Week ending 30 March 2012
Issue No. 202
ASIAN GYPSY MOTH REGULATED PORTS
Please be reminded that all vessels that have been in one of the following regulated ports during the specified periods in 2011 and 2012 are required to have an inspection carried out by an authorized inspection company in the last regulated port prior to arrival in Canada. If a vessel does not have a certificate of such inspection upon arrival, the vessel will be denied immediate entry and delayed for inspection by the Canadian Food Inspection Agency. For more information see CFIA’s Directive 95-03.
People's Republic of China
All ports in northern China, including all ports north of Shanghai
June 1 to September 30
Republic of Korea
June 1 to September 30
Russia Far East
Nakhodka, Ol'ga, Plastun, Pos'yet, Russkiy Island, Slavyanka, Vanino, Vladivostok Vostochny, Zarubino, Kozmino
July 1 to September 30
Port location - Prefecture
Japan - Northern
Hokkaido, Aomori, Iwate, Miyagi, Fukushima
July 1 to September 30
Akita, Yamagata, Niigata, Toyama, Ishikawa
June 25 to September 15
Japan - Eastern
Fukui, Ibaraki, Chiba, Tokyo, Kanagawa, Shizuoka, Aichi, Mie
June 20 to August 20
Japan - Southern
Wakayama, Osaka, Kyoto, Hyogo, Tottori, Shimane, Okayama, Hiroshima, Yamaguchi, Kagawa, Tokushima, Ehime, Kochi, Fukuoka, Oita, Saga, Nagasaki, Miyazaki, Kumamoto, Kagoshima
June 1 to August 10
Japan - Far Southern
May 25 to June 30
JAPANESE FISHING BOAT DRIFTING OFF HAIDA GWAII
A 50 foot fishing boat which was swept to sea by the tsunami that devastated North Eastern Japan in March last year has been located by a Canadian military air patrol about 150 miles off the coast of Haida Gwaii. The trawler forms part of an estimated 5 million tons of debris which was swept out to sea when by the 23ft wall of water.
More than a year later the trawler has drifted some 4,700 miles from Hachinohe where it was originally moored. Armed with an identification number on the hull provided by Canada, the Japanese Coast Guard has identified the owners of the vessel, which was apparently used to fish for squid fishing. According to the official toll, the disaster left 15,839 dead, 5,950 injured, and 3,642 still missing.
CANADA’S 2012 BUDGET ANNOUNCEMENT
Yesterday, Canada’s Finance Minister, Jim Flaherty, tabled the 2012 Economic Action Plan: Our plan for jobs, growth and long-term prosperity and with it came some surprisingly good news for the marine industry on the West Coast. The most significant and welcomed announcement is the plan and commitment of $165M towards the responsible resource development which will ensure the viability, sustainability and competiveness of our port. Included in that budget is $35.7 million over two years to support responsible energy development. This includes:
- New regulations which will enhance the existing tanker inspection regime by strengthening vessel inspection requirements.
- Appropriate legislative and regulatory frameworks related to oil spills, and emergency preparedness and response.
- A review of handling processes for oil products by an independent international panel of tanker safety experts.
- Improved navigational products, such as updated charts for shipping routes.
- Research to improve our scientific knowledge and understanding of marine pollution risks, and to manage the impacts on marine resources, habitats and users in the event of a marine pollution incident.
Other announcements in the budget that are of interests are:
- $54 million over two years to renew the Major Projects Management Office initiative to support effective project approvals. Implemented will be a “one project, one review” process in a clearly defined time period for economic projects.
- $27.3 million over two years to support the divestiture of regional ports and the continued operation and maintenance of federally owned ports.
- $5.2 billion over the next 11 years on a cash basis to renew the Canadian Coast Guard fleet. The procurement of new vessels and helicopters for the Canadian Coast Guard, as well as work related to repairing and refitting existing vessels, will support jobs and generate significant economic benefits.
- $101 million over the next five years on a cash basis to restore and modernize the Esquimalt Graving Dock.
- Amendment of the Coasting Trade Act to improve access to modern, reliable seismic data for offshore resource development.
- Implement the Action Plan on Perimeter Security and Economic Competitiveness and the Action Plan on Regulatory Cooperation, which will facilitate trade and investment flows with the United States.
- Provide support to Canadian exporters by extending the provision of domestic financing by Export Development Canada.
- Reducing red tape through the “One-for-One” Rule and implementing the Canada-United States Action Plan on Regulatory Cooperation. The “One-for-One” Rule states that if the government needs to bring in new legislation that will impose a direct cost on businesses and voluntary organizations, it has to remove or modify an existing regulation of an equivalent cost. The aim of ‘one in, one out’ is to encourage government departments to use regulation only as a last resort.
- Continued commitment to implement the Canada-United States Action Plan on Regulatory Cooperation that contains 29 initiatives to align the regulatory approaches between Canada and the United States in areas of agriculture and food, transportation, health and personal care products, chemical management, the environment, and other cross-sectoral areas, without compromising health, safety or environmental protection standards. Smarter systems will reduce the needless inconvenience posed to importers and travellers by multiple inspections of freight and baggage, i.e. goods should be once screened, twice accepted. The Government will take other measures to implement action plan commitments and other border improvements over the next two years and a pilot project in Prince Rupert will begin soon.
- The planned reduction in departmental spending is expected to eliminate about 12,000 government positions over a three-year-period, with affected individuals qualifying for collectively bargained workforce adjustment measures.
- In total, federal employment will be reduced by about 19,200 or 4.8 per cent. To the largest extent possible, the Government will use these vacancies towards redeploying individuals whose jobs have been affected by the spending reduction. The planned reduction in employment includes the elimination of about 600 executive positions.
PM LAUNCHES FREE TRADE AGREEMENT NEGOTIATIONS WITH JAPAN
Prime Minister Stephen Harper and Yoshihiko Noda, Prime Minister of Japan, announced the launch of negotiations towards a free trade agreement that will deepen the trade and investment ties between Canada and Japan. The free trade agreement negotiations build on a recently released Canada-Japan Joint Study which estimates that such an agreement could mean gains of up to C$3.8 billion a year in Canadian gross domestic product, with Canadian exports to Japan increasing by as much as 67%. For Port Metro Vancouver Japan is the fourth largest import economy and second largest export economy. In 2011, top export cargoes to Japan, by volume included: metallurgical coal, grain, specialty crops and forest products; and top import cargoes to Canada included: vehicles and auto parts, household goods and electronics.
UPDATED GUIDANCE ON US BALLAST WATER REPORTING STANDARDS
With effect from June 21, 2012, the US regulations on ballast water management and reporting will be superseded by new regulations which will require ships to treat ballast water and regularly remove hull fouling. Ships calling at US ports and intending to discharge ballast will also be required to use an approved ballast water treatment system that meets the US discharge standard. Please see the attached detailed guidance.
EU MUDDIES THE WATER ON GHG DEBATE
Despite numerous veiled threats of imminent legislation, the EU has conceded that any unilateral market-based measures designed to reduce shipping’s GHG emissions would not likely come into force until 2017. This appears to provide the IMO with a breathing space to develop and implement global regulations, thereby avoiding regional disparities. The “if it moves, it must be regulated” brigade in Brussels is already attempting to force international aviation to participate in an EU trading scheme with shipping the only industry not currently subject to the commission’s CO2 reduction measures.
PIRATES TAKE IRANIAN BULK CARRIER
In what might be called the sweet smell of success, pirates have hijacked the Iranian owned bulk carrier Eglantine off the coast of India earlier this week. The Bolivian flagged vessel is carrying a cargo of sugar loaded in Rio de Janeiro.
Eglantine under her previous name Iran Gilan
A policy switch by the European Union which will allow EU Navfor naval forces to extend anti-piracy operations to include Somali coastal land and internal waters has been cautiously welcomed by the world’s major shipping associations. There is some concern that rather than concentrate on pirate bases on shore, the priority will be to disable captured “motherships” with the likelihood of retribution against hostages. BIMCO’s has meanwhile launched its “Guardcon” standard contract for employment of security guards, with or without firearms on merchant vessels.
MAERSK SUSPENDS ACCEPTANCE OF NORTHERN EU EXPORT BOOKINGS FOR TWO MONTHS
In an unprecedented move, Maersk Line has suspended the acceptance of new bookings for containers from Northern Europe to Asia eastbound for around two months on account of a major backlog following consecutive vessel cancellations after Chinese new year. The European Shippers’ Council has voiced concern that this unexpected tightening of east bound capacity will significantly impact rates just as Mediterranean Shipping Co (MSC) has announced no show fees of $300 per TEU and $600 per FEU on the route, an emergency fuel surcharge and an emergency equipment imbalance fee. For its part CMA-CGM has implemented a container security fee of $10 per container, a Suez Canal surcharge of $14 per TEU and an Aden Gulf surcharge of $54 per TEU.
It was also announced this week that 53 year old AP Moller-Maersk Chief Executive Mr. Nils Andersen is to undergo another round of heart surgery. Mr. Andersen underwent an operation in December to remedy what was described as a leaky heart valve and was initially expected to be away from work for a month. We wish him a speedy recovery.
INCREASING CHINESE LABOUR COSTS MAY EVENTUALLY IMPACT TRADE FLOWS
Anyone doing business in China these days is keenly aware of escalating labour costs. Surprising recent analysis concludes that some manufacturers are therefore relocating, not just to Vietnam, Indonesia and South Asia but increasingly also to Mexico as a hedge against both labour and shipping costs. Between the third quarter of 2009 and the second quarter of this year, wage levels in China grew by just under 100%, while in Mexico they grew on average by less than 7%. Looking ahead, under China’s 12th five-year plan, the government is predicting that wages will increase by a further 68%, while industry suggests they will grow by at least 80%. Adding to shipper nervousness is the success with which container shipping lines have implemented the recent general rate increases on both the Asia-Europe and Trans-Pacific trade lanes.
DEEPSEA CHALLENGER DIVES DEEP
Hollywood director James Cameron (of Titanic fame) took a vertical plunge of 11km (seven miles) last weekend to the deepest place in the world’s oceans, the Mariana Trench in the western Pacific. He made the solo descent in a submarine called Deepsea Challenger, taking over two hours to reach the bottom where he spent more than three hours exploring the ocean floor. His craft which was built in Australia fitted out with more cameras than a Tiger Woods confessional is only the second manned expedition to the ocean's deepest depths. The first which took place in 1960 was made by US Navy Lt Don Walsh and Swiss oceanographer Jacques Piccard when they spent about 20 minutes on the ocean floor.
Mr. Cameron's multi-million-dollar expedition was in part personally financed but was also sponsored by Rolex and National Geographic. Next up is likely to be a vehicle named Deep Flight Challenger (above right) which is backed by Virgin's Richard Branson and is about to begin its sea trials.
Due in no small part to weak Q1 iron ore exports from Brazil to China, Capesize time charter rates fell this week to their lowest level since late 2008. Ships are currently going for around a dismal $4,500 per day, which represents about 60% of daily operating costs before financing. The record low for the Capesize time charter average still stands at $2,300 per day in December 2008. However, before you lose the plot, the Baltic Dry Index did close marginally up on Thursday at 930 points, compared to 902 points last week and 866 points the week before.
Cape Size Panamax Supramax
Index 1386 1044 1043
One week ago 1384 1026 1024
Spot time charter $4,900/day $8,300/day $10,900/day
One week ago $4,700/day $8,200/day $10,700/day
March 31 – Every year the World Wildlife Foundation (WWF) hosts Earth Hour. In 2011 according to BC Hydro, British Columbia saved 117 megawatt hours of electricity which amounted to a 1.8 per cent reduction in the province’s electricity load. Join this international event if you can by reducing your power load between 8:30 to 9:30 pm.
CILT LUNCH – JONATHAN WHITWORTH, SEASPAN MARINE
April 10 – The Pacific Chapter of the Chartered Institute of Logistics and Transport, North America (CILTNA) is sponsoring a lunch at the Terminal City Club with guest speaker, Jonathan Whitworth, President and CEO of Seaspan Marine. Registration fee $50.
NAUTICAL INSTITUTE (BC BRANCH) AGM AND LUNCH
April 14th - The B.C. Branch of The Nautical Institute will hold its AGM and lunch at 11:00 hours on Saturday April 14th at The Coast Tsawwassen Inn in Tsawwassen. The guest speaker for lunch will be Mr. Jay Straith of Canadian Artificial Reef Consulting. Mr. Straith will give us insight into a unique way of re-cycling old ships. Guests are welcome for the lunch and presentation. Register for this event and find out complete details at www.nauticalinstitute.ca.
BUSINESS OF SHIPPING COURSE
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
PORT SECURITY CONFERENCE
May 15 – 17 – The 2012 Canadian Port and Maritime Security Conference will be held this year at the Coast Coal Harbour Hotel in Vancouver, BC. For more information visit: www.portsecure.ca
PLIMSOLL CLUB ANNUAL SPRING GOLF TOURNAMENT
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.
Apr 3 CIABC Board of Directors Meeting @ 10:30
Apr 4 Mission to Seafarers Annual General Meeting
Apr 5 PPA Financial Review Committee Meeting @ 09:00
Apr 5 COS Board of Directors Meeting @ 10:30
Apr 5 VMAA Board of Directors Meeting
Apr 6 Good Friday – Office Closed
Apr 9 Easter Monday – Office Closed
Apr 11 COS Ship & Port Operations Committee Meeting @ 10:00
Apr 11 Institute of Chartered Shipbrokers Board of Directors Meeting @ 12:00
Apr 12 Discussion on Deck Lashing with Transport Canada @ 09:30
Apr 12 VMAA ICMA Planning Committee Meeting @ 12:00
Apr 14 Nautical Institute BC Branch Annual General Meeting
Apr 17 COS Liner Committee Meeting @ 10:00
Apr 18 COS Navigation & Pilotage Committee Meeting @ 10:00
Apr 19 ISSC Board of Directors Meeting @ 12:00
Apr 19 Business of Shipping Course (half day) – Vessel Operations
May 13-18 International Congress of Maritime Arbitrators XVIII Conference
May 15-17 Port Security Conference
May 16 Plimsoll Club Annual Spring Golf Tournament
May 29-30 Green Marine Annual Conference – Green Tech
Jun 7 Business of Shipping Course (full day) Vancouver Island Convention Centre, Nanaimo
Jun 15 Vancouver Grain Exchange Golf Tournament
Ship of the Week
Development Way in Burrard Inlet
LOA 215 m
Beam 38 m
DWT 21,000 MT
Speed 12.5 knots
In one of the most interesting cargo operations conducted in Vancouver’s inner harbor for some time, Seaspan Marine Corporation has shipped out a large amount of surplus to requirements hardware on an unusual purposely converted vessel. Development Way is a 25,000 DWT self-propelled semi-submersible ship converted from a 1983 built LPG carrier, Cleran River. Her design incorporates 44 ballast water tanks to enable her to reach a fully submerged draft of 18 meters and four sets of winches to accurately position her cargoes on a flush upper loading deck.
The inventory of equipment loaded onboard is as follows:
Haida Brave, 1978 built coastal vessel
River Princess, 1962 built tug
Harmac Fir, 1964 built tug
Bering Straits, 1965 built tug
Texada Crown, 1965 built tug
Seaspan Master, 1967 built tug
Seaspan Charger, 1969 built tug
Mercer Straits, 1971 built tug
Storm Coaster, 1971 built tug
Straits Logger, 1964 built Barge
Vessel owners are CCCC International Shipping Corp; registered in Panama. The company has four shareholders namely:
China Communications Construction Company Limited
CCCC First Harbor Engineering Co, .Ltd,
CCCC TianJin dredging Co., Ltd., and
ChuWa Bussan Co. Ltd. respectively.
The business scope of the company covers marine transportation of large-scale projects domestically and internationally.
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