COS Weekly News - 27 April 2012
Monday, 30 April 2012 16:06
COS News – Week ending 27 April 2012
Issue No. 206
STRIKE MANDATE GIVEN TO TCRC
The general committees of the Teamsters Canada Rail Conference (TCRC) representing 5,000 conductors, trainmen, yardmen, locomotive engineers and rail traffic controllers employed by Canadian Pacific Railway have been authorized by their membership to launch a strike against the railway. Members have voted by a margin of 95% in favour of authorizing their bargaining committee to launch a strike if necessary. The TCRC may strike anytime after May 22, 2012.
Canadian Pacific commented on the Teamsters Canada Rail Conference (TCRC) April 26, 2012 announcement that the union sought a strike mandate from their members. The Company noted that discussions with the TCRC regarding changes to CP's legacy pension plan will continue under the supervision of the conciliator appointed by the Federal Minister of Labour. No work stoppage can occur until the expiration of a cooling-off period on May 23, 2012.
The existing contract with the union expired on December 31, 2011. CP has been in negotiations since early October 2011 with the union on a number of topics ranging from wages to work rule changes and pensions, all intended to further drive service, productivity, and efficiency.
TRANSPORT CANADA AND GREEN MARINE SIGN MEMORANDUM ON ENVIRONMENTAL PERFORMANCE
Transport Canada and Green Marine announced at the Canadian Marine Advisory Council meeting in Ottawa the signing of a memorandum of cooperation to enhance environmental protection and performance in the marine shipping sector. The memorandum of cooperation formalizes a cooperative agreement and designates Transport Canada as a “Green Marine supporter.”
As part of the agreement, Transport Canada and Green Marine will work together to:
- enhance the industry’s environmental performance benchmarking;
- support efforts to promote Green Marine goals and successes nationally;
- collect environmental data and develop environmental performance measurement standards; and
- identify ways to promote industry best practices, measures and strategies that can further address environmental issues in the marine sector.
PRINCE RUPERT CELEBRATES COMMISSIONING OF MARINE RESCUE VESSEL
The Prince Rupert Port Authority congratulated the Prince Rupert Marine Rescue Society on the deployment of its new vessel, the Orme G. Stuart. The craft was commissioned during a ceremony on Saturday morning that drew more than 100 community members.
A $200,000 contribution to the Prince Rupert Marine Rescue Society was made through the Port Authority's Community Investment Fund in 2011. The fund was established to share the Port's revenues with organizations planning projects that benefit residents.
ECA INCONSISTENCIES CRITICIZED AT BIMCO GENERAL MEETING
BIMCO has voiced concern over inconsistent standards in Emissions Control Areas (ECAs) during the organization’s General Meeting in Singapore this week. BIMCO President and Chairman Yudhishthir Khatau, who was elected during last year’s meeting in Vancouver, described the issue as “the biggest challenge” the industry is facing. “When ships are trading in different regions, it would be difficult to comply with different ECAs which have different norms” he said. In apparent support of Mr. Khatau’s comments while at a separate event, IMO Secretary-General Koji Sekimizu suggested that that regional and unilateral measures to reduce greenhouse gas emissions were also not in the shipping industry’s best interest.
During this week’s Canadian Marine Advisory Council(CMAC) meetings in Ottawa we were informed that Canada cannot meet the time line to publish the regulatory amendments in the Canada Gazette which would permit the North American ECA to become effective in Canadian waters on August 1, 2012. The revised projected implementation date is November 2012 however, as of now it appears that the US Environmental Protection Agency (EPA) remains intent on the original August 1 implementation despite the well documented difficulties in securing compliant low sulphur (1%) fuel. (An official announcement from Transport Canada is expected to be released imminently).
RAIL SAFETY WEEK STARTS MONDAY
Next week (April 30 – May 6) is the annual Rail Safety Week. Operation Lifesaver will hold a number of events and activities throughout Canada to bring attention to our important rail safety message. This year’s theme is focused on preventing trespassing, with the “These Tracks are for Trains Message”.
NEW PRACTICES WILL LEAD TO SAFER PASSAGE IN ARCTIC WATERS
The Transportation Safety Board of Canada (TSB) report into the August 2010 grounding of the cruise ship, Clipper Adventurer in Coronation Gulf, Nunavut (M10H0006) highlights the need for safer navigation in Canada’s Arctic. CCG has committed to providing all vessels entering Arctic waters with crucial safety information via its NORDREG vessel reporting system starting in June 2012. The Canadian Hydrographic Service will establish a procedure so that navigational charts for Canada’s Arctic will be marked with reported hazards to navigation. This process is to be implemented in 2013.
COSTA CONCORDIA SALVAGE OPERATION CONTRACT AWARDED
The contract to refloat the Costa Concordia in one piece has been won by a partnership of US based and Crowley owned “Titan Salvage” and the Italian offshore operator “Micoperi”. The $288m operation is scheduled to begin later next month and is expected to take about a year. There is a yet no final decision as to whether the hull will be scrapped or repaired. Titan’s previous projects include the refloating of the APL Panama from a beach in Ensenada, Mexico and the attempted salvage of the New Carissa off the Oregon Coast.
APL Panama 2006 New Carissa 1999
Cruise Lines International Association (CLIA) and the European Cruise Council this week announced three significant policy changes at the EU’s Passenger Ship Stakeholder Conferencein Brussels:
- All cruise ships will more strictly adhere to IMO passage planning guidance and follow best practices contained in the International Chamber of Shipping Bridge Procedures Guide. In this context, all bridge team members will be thoroughly briefed on passage plans, which must be approved by the ship’s master.
- No person without operational functions will be allowed on a bridge during any period of “restricted manoevering or when increase vigilance is required.
- Member cruise lines will significantly increase the number of lifejackets onboard. In addition to the statutory requirement of one lifejacket per person aboard, cruise ships will add lifejackets equal to at least the total number of people berthed within the ship’s most populated main vertical fire zone.
These policy changes are in addition to two previous safety announcements including a mandatory policy calling for muster drills before departure from port (the legal requirement is for a muster within 24 hours of sailing) and a recommendation to the IMO on enhanced maritime casualty data reporting requirements.
HARROWING PIRACY TESTIMONY IN US COURT
A Ukrainian seafarer has provided a harrowing account of life on the small German tanker Merida Marguerite taken by Somali pirates. The seaman’s testimony took place at the trial of alleged pirate Mohammad Saali Shibin who is facing charges of piracy and hostage taking but who was in effect was also the primary hostage negotiator. Amongst torture methods allegedly employed by Shibin were hanging hostages from a meat hook in the ship’s freezer compartment, confined exposure to sun for hours on end, a gun to the head and simulated suffocation. The trial which is taking place in Virginia is scheduled to last several weeks. The ship itself was eventually released on payment of a $5m ransom.
The Italian flagged and owned chemical tanker Enrico Levoli was released by Somali pirates this week after being held for four months. She was was hijacked on December 27 off the coast of Oman while on its way to a rendezvous point for a Chinese armed convoy. At one point she was forced to act as a mothership in the Gulf of Aden.
The International Maritime Bureau has reported 102 incidents of piracy in Q1 this year compared to 142 attacks in the same period last year. Eleven vessels were reported hijacked worldwide, with 212 crew taken hostage and four killed. All the reported incidents involved either Somali or Nigerian pirates.
IMO Secretary General Mr. Koji Sekimizu weighed in on piracy this week by calling on heads of state to engage with the global fight against piracy and pointed out that ministerial discussions have failed to deliver the political will needed to tackle the problem effectively.
SINGAPORE INVESTIGATES FEASIBILITY OF LNG BUNKERING
The Singapore Maritime and Port Authority in partnership with DNV has launched a project to investigate the operational feasibility of LNG bunkering in Singapore. The project will be funded by Singapore’s “Marine Innovation and Technology Fund” (MINT) while DNV’s participation will be through the Class Society’s Singapore Clean Technology Centre.
Singapore, the world’s second busiest port, is also the world’s largest bunker port with some 43 million tons supplied in 2011. There are currently around 25 LNG fuelled ships engaged in coastal trading which are reliant on shore-side bunkering facilities plus around 24 LNG fuelled or hybrid ships currently on order.
Singapore was this week named the most important shipping centre in the world, followed by Oslo, London, Hamburg and Hong Kong, according to research commissioned by Nor-Shipping and Oslo Maritime Network. Maritime Centres were ranked by a panel of 28 experts on the basis of four categories: ship owners and shipping operations; maritime finance: maritime law and insurance: and maritime technology and competence.
ARCTIC SUMMERS PREDICTED TO BE ICE-FREE BY 2050
The Arctic Shipping Forum meeting in Helsinki this week heard that even though increased global warming is creating more ice-free waters in the Arctic, shipping will still have to contend with ice-bound winters for decades to come. The Forum was told that whilst summer sea ice levels have decreased about 12% over the decade, winter ice levels have declined less than 3% and whilst climate change will increase the windows of opportunity for Arctic transits, overall decreased ice thicknesses as multi-year ice will be replaced by first year ice.
PANAMA CANAL AUTHORITY INTRODUCES NEW SHIP CATEGORIES FOR TRANSIT PRICING
The Panama Canal Authority (ACP) has announced the establishment of three new ship type categories (increase from 8 to 11) when the next round of tariff adjustments take effect in July this year. The new categories will be container/breakbulk ships, chemical tankers and LPG carriers. A consultation period from April 20 to May 20 is intended to provide opportunity to submit written comments and feedback before a public hearing scheduled for May 23. Effective July 1, ACP will increase tolls for general cargo ships, container/breakbulk vessels, dry bulk ships , the redefined tanker segment, chemical tankers, LPG tankers, vehicle carriers and ro-ro vessels, and the category known as ”others”. The remaining segments (containers) will not be impacted.
The Baltic Dry Index consolidated last week’s gain and remained in four figure territory this week, closing on Thursday on 1148 points, compared to 1028 points last week and 960 points the week before.
Cape Size Panamax Supramax
Index 1505 1727 1097
One week ago 1534 1354 992
Spot time charter $6,400/day $13,800/day $11,500/day
One week ago $6,600/day $10,800/day $10,400/day
Tankers: The market received a bit of a boost this week when China surprised everyone by taking 10 VLCCs on time charter in one swoop. Of the almost 350 tankers scheduled for delivery this year, it is now expected that around 35% will be delayed for one reason or another.
Containers: The active container ship fleet has grown 10% in the past year, running well ahead of demand. The fleet has now reached almost 15 million TEU, an increase of 1.33 million TEUs over the past year. Since the beginning of 2012, some 23 ships in excess of 10,000 TEU capacity have joined the fleet, paving the way for an increased capacity of 455,000 TEU so far and around 1.4 million TEU for the full year with consequent growing concern for the sustainability of recent improvements in rates.
ASIA-PACIFIC GATEWAY GROWTH – IMPLICATIONS FOR THE TRUCKING INDUSTRY
May 2 - The BC Trucking Association has organized a conference to address the challenges and opportunities for the trucking industry in the Asia Pacific Gateway. Visit the BCTA website for the registration form and further details.
LR ILO MARITIME LABOUR CONVENTION 2006 TRAINING COURSE
May 8 – 9 – Lloyd’s Register is offering a two-day course for those involved in the creation and implementation of policies and procedures required for compliance with the ILO MLC 2006. The course is outlined in the attached brochure and is priced at $895. The course will be held in the local office in North Vancouver.
CMLA ANNUAL GENERAL MEETING AND ANNUAL SEMINAR
May 11 – 12 - The Canadian Maritime Law Association will be holding its 2012 Annual General Meeting on Friday, May 11, 2012 and its annual Seminar on Saturday May 12, 2012. To register for the seminar please go to the CMLA website (www.cmla.org) and follow the links to the registration page. Alternatively, you can go direct to the registration page at www.cmla.org/agmseminarreg.php.
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.
BC CHAMBER OF COMMERCE SUMMIT
June 4 – 5 – The BC Chamber of Commerce is hosting a Transportation Summit on “Shipping and Exports to the Asia Pacific” Wolfgang Freese, President of Hapag-Lloyd Region Americas was added to the list of noteworthy speakers and panelists. The early bird rate for registration expires on May 18th. To view details and to register, visit www.bcchambersummit.ca.
BUSINESS OF SHIPPING COURSE – NANAIMO, BC
June 7 – The Chamber of Shipping of BC and the Institute of Chartered Shipbrokers will hold its next full day course in Nanaimo. Details of the course content and registration form are attached.
MARITIME SECURITY CHALLENGES (MSC) 2012
Oct 1–3 – The 5th annual conference presented by Maritime Forces Pacific and Royal Roads University will take place in Victoria, BC and will address the illegal movement of people and goods at sea, security issues in the Gulf of Guinea, maritime applications of unmanned and autonomous vehicles, and shipbuilding and future naval requirements. To register or for more information on the conference or sponsorship opportunities visit: http://mscconference.ca/
May 1 CIABC Board of Directors Meeting
May 2 BCTA Annual General Meeting
May 2 VMAA Board of Directors Meeting
May 3 WCMRC User Group Meeting
May 8 Port Metro Vancouver Land Use Meeting – Transportation & Goods Movement
May 9 COS Board of Directors Meeting @ 11:30
May 11 Canadian Maritime Law Association Annual General Meeting
May 12 Canadian Maritime Law Association Seminar
May 13-18 International Congress of Maritime Arbitrators XVIII Conference
May 15 COS Ship & Port Operations Committee Meeting @ 12:00
May 15-17 Port Security Conference
May 16 Plimsoll Club Annual Spring Golf Tournament
May 17 COS Navigation & Pilotage Committee Meeting @ 10:00
May 17 COS Liner Committee Meeting @ 12:00
May 21 Victoria Day – Office Closed
May 24 COS Owners Committee Meeting @ 12:00
May 29 PMV Annual General Meeting
May 29-30 Green Marine Annual Conference – Green Tech
May 30 PACMAR / NANS Meeting @ 10:30
Jun 7 Business of Shipping Course (full day) Vancouver Island Convention Centre, Nanaimo
Jun 15 Vancouver Grain Exchange Golf Tournament
Ship of the Week
Clipper Ship Cutty Sark – fully restored following a tragic fire in 2007 with the lower hull now enclosed within a glass dome
For many years a familiar sight on the banks of the Thames River in London, the clipper ship Cutty Sark, built in 1869, was one of the last tea clippers and one of the fastest.
She had the misfortune to be built in the same year that the Suez Canal was opened which immediately provided the option of a faster steam ship passage to China. As a consequence she spent much of her life in the wool trade from Australia to the U.K. and held the record passage time for 10 years until that route too became “steam” dominated. In 1922 she was purchased by a retired sea captain who used her as a training ship until in 1938 when she was handed over to the Thames Nautical Training College where she became an auxiliary cadet training ship. In 1954 she was transferred to a permanent dry dock at Greenwich which is where she lies today. She was heavily damaged by fire in May 2007 whilst undergoing renovation and was reopened on Wednesday this week (April 25) by H.M. the Queen following a £50 million complete restoration.
painting of Cutty Sark under full sail ablaze from stem to stern in May 2007 plaque to mark the re-opening
Also at Greenwich is the Royal Observatory through which the “Greenwich Meridian” passes from north pole to south pole and which provides the so called “prime meridian” from which longitude is measured to east and west. The line also signifies measurement of Greenwich Mean Time (GMT) from which the world’s time zones originate. GMT was adopted as the world’s time standard at the Washington Meridian Conference in 1884.
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