COS Weekly News - 1 June 2012
Friday, 01 June 2012 15:59
COS News – Week ending 01 June 2012
Issue No. 211
BACK TO WORK AT CP RAIL
A bill entitled, “An Act to Provide for Continuation and Resumption of Rail Service Operations”, Bill C-39, has received royal assent from the Governor General and is now law. Teamsters Canada Rail Conference (TCRC), the union representing Canadian Pacific (CP) engineers, conductors and rail traffic controllers resumed work this morning i.e. Friday, June 1, 2012. CP Rail plans to immediately add capacity to move the backlog of traffic and resume full operational efficiency. It is also clear than the addition of CN Rail capacity during the dispute has been an important factor in helping to mitigate the impact.
CN RAIL TRAFFIC CONTROLLERS RATIFY NEW COLLECTIVE AGREEMENT
CN announced that members of the Teamsters Canada Rail Conference-Rail Canada Traffic Controllers (TCRC-RCTC) have ratified a new collective agreement covering approximately 210 train dispatchers in Canada. The three-year contract, retroactive to Jan. 1, 2012, provides wage increases along with standard benefit improvements to the TCRC-RCTC members at CN.
PMV SEEKS INPUT ON LAND USE PLAN
Port Metro Vancouver is holding a series of public open houses starting on Saturday June 2, the first of ten that will take place over our two-year Land Use Plan process.
The public open houses give communities an opportunity to inform the first phase of the Land Use Plan Update. The purpose is to identify topics and issues that are most relevant to the Land Use Plan and that matter most to the community.
Information will be presented on five key themes explored during the recently-completed technical stakeholder workshops. These five key themes are:
- Port Growth and Transportation
- Regional Land Use
- Local Communities
- Transportation & Goods Movement
When completed, the new Land Use Plan will articulate Port Metro Vancouver’s policies on land use and development and identify the types of uses appropriate on land and water across its jurisdiction. It is one of the first steps we are taking in implementing the Port 2050 strategic vision. By continuing to work together in a respectful way with communities, industry and government, we can constructively approach the challenging and important discussion of land use in the Lower Mainland.
Dates and locations are as follows:
Saturday, June 2: Poirier Sports Centre, 633 Poirier Street, Coquitlam 11am - 3pm
Wednesday, June 13: Executive Hotel, 4201 Lougheed Hwy, Burnaby 4pm - 8pm
Saturday, June 16: North Delta Recreation Centre, 11415 84 Avenue, Delta 11am – 3pm
Additional dates and locations throughout Lower Mainland will be announced shortly.
Learn more Visit portmetrovancouver.com/landuseplan.
MOUs ON PORT STATE CONTROL WILL FOCUS ON FIRE SAFEY SYSTEMS
The Paris MOU and Tokyo MOU on Port State Control will launch a joint concentrated inspection campaign (CIC) on Fire Safety Systems beginning 1 September 2012. The CIC will seek to ensure compliance with SOLAS Chapter II-2/ Construction - fire protection, fire detection and fire extinction arrangements on board ships. This inspection campaign will be held for three months, commencing from 1 September 2012 and ending on 30 November 2012.
BC COAST GUARD AUXILIARY GETS NEW NAME
Volunteer marine rescuers in British Columbia are getting a new name - the Royal Canadian Marine Search and Rescue. Formerly the Canadian Coast Guard Auxiliary, the 150-year-old organization has stations in 46 communities throughout BC and more than 1,000 members that span the 27,000 square kilometres of coastline. The royal title was granted by Queen Elizabeth in February 2012 in recognition of the organization's long-standing service, broad geographic coverage, and philanthropic mandate.
Meanwhile the closure of the Kitsilano station continues to meet with strong opposition from the fishing sector and the recreational boaters despite CCG’s assurance that the vessels at Sea Island and other agencies are available to provide the level of services required.
SNC LAVALIN DROPS DAVIE SHIPYARD JOINT VENTURE
SNC-Lavalin Group Inc. has dropped out of the Davie Joint Venture established last year to refinance and reopen the Davie Canada shipyard in Levis, opposite Quebec City. SNC-Lavalin’s decision was made following an extensive financial and risk analysis. The Davie shipyard was acquired by Upper Lakes Group Inc. and SNC-Lavalin in 2011, but later failed to win any work for the $35-billion National Shipbuilding Strategy. It was left with completion of three oil and gas support vessels and an order for two provincial ferries.
REAR ADMIRAL GREENWOOD’S FINAL SALUTE
Rear Admiral Greenwood takes his final salute from HMCS Oriole. HMCS Oriole departed CFB Esquimalt this morning to attend the Portland Rose Festival. Rear Admiral Greenwood will relinquish command of Maritime Forces Pacific on Monday. As noted in an earlier newsletter, Commodore W.S. Truelove will be promoted to Rear-Admiral and appointed Commander Maritime Forces Pacific, in Esquimalt, replacing Rear-Admiral N.S. Greenwood, who will be retiring.
CBSA NEWSLETTER FOR COMMERCIAL STAKEHOLDERS
Attached is an update received from Cathy Munroe, Chair of Canada Border Services Agency’s Border Commercial Consultative Committee. The update covers export reporting for exports, review of the summary reporting program, modernization plans for cargo control and sufferance warehouses, the new fumigant service standard and radiation detection program.
MINISTER BAIRD TO ATTEND KEY PACIFIC NATIONS SUMMIT
Foreign Affairs Minister John Baird will represent Canada at the Presidential Summit of the Pacific Alliance on June 6, 2012, in Cerro Paranal, Chile. On April 28, 2011, the presidents of Chile, Colombia, Mexico and Peru announced their intention to create the Pacific Alliance, which seeks to more deeply integrate the four countries by building on the bilateral free trade agreements among Alliance members and to develop new links with the dynamic Asia-Pacific region.
Costa Rica and Panama are also attending the summit as observers. Canada has negotiated free trade agreements with all four members of the Pacific Alliance and both observer countries, demonstrating that the hemisphere is a foreign policy priority for Canada.
NEW ICS CHAIRMAN APPOINTED
Mr. Masamichi Morooka is the new Chairman of the International Chamber of Shipping. Having worked for Nippon Yusen Kabushiki Kaisha (NYK Line) since 1975, Mr. Morooka has significant experience in Asia, Europe and North America and has featured prominently within the Japan Shipowners’ Association. Since 2010 he has served as a representative director and senior managing corporate officer at NYK in Tokyo. He has been Vice Chairman of the ICS since 2009. The current the Secretary-General of the IMO, Mr. Koji Sekimizu who was elected in 2011 is also Japanese underlining the prominent leadership role of Japan in our industry at present. Following his appointment, Mr. Morooka acknowledged that while much has been made of the transfer of shipping’s centre of gravity to Asia, the Japan Shipowners’ Association was a founder member of the ICS in 1921. A press release issued by the ICS following the organization’s recent AGM held in Port Douglas, Queensland, is attached.
IMO MARITIME SAFETY COMMITTEE, 90TH SESSION SUMMARY
A press briefing outlining the various amendments to the International Convention for the Safety of Life at Sea (SOLAS) and approval of other guidelines, codes and circulars is now available. Key items include interim guidance for private maritime security companies, operational measures to address passenger ship safety and approval for a circular on interim measures for early implementation of the draft amendments to the International Maritime Solid Bulk Cargoes (IMSBC) Code.
MASTER AND 2ND OFFICER OF RENA SENTENCED IN NZ
2nd Officer Relon (left) and Captain Balomaga (right)
Captain Mauro Balomaga and 2nd Officer Leonil Relon of the container ship Rena have both been jailed for seven months in New Zealand following the vessel’s grounding on Astrolobe Reef off the port of Tauranga in October 2011. Captain Balomaga pleaded guilty to all charges against him, while Mr. Relon admitted all charges, except a Resource Management Act (RMA) charge on which he entered no plea. Both men were accused of operating a vessel in a manner likely to cause danger, discharging a contaminant and three instances of altering ship documents. Greek manager Costamare said it would continue to meet its responsibilities, as their employer, to ensure their welfare and that of their families, as they complete their sentences.
CHINA TO INTRODUCE OIL SPILL COMPENSATION FUND
China is to take a leaf out of Canada’s book and introduce a national fund that will pay oil spill compensation to victims of marine oil spill pollution. The country’s Ministry of Finance, has announced that from July this year, seaborne imports of crude oil, fuel oil, heavy diesel and lubricants will pay Yuan0.30 ($0.05) per ton to the fund. The Ministries of Transport, Agriculture and Environmental Protection will jointly lead management of the fund which will be liable to pay up to Yuan30m for each oil pollution accident. Canada has its own Ship Source Oil Pollution Fund which was established in 1989.
TEEKAY TIES UP WITH ANGLO-EASTERN
Teekay is to enter a strategic partnership with the Anglo-Eastern Group of Hong Kong by placing 50 of its conventional tankers under third party ship management. In a press release issued this week Teekay advised that as a part of the new alliance, the crew management and training logistics for some Teekay seafarers will be integrated with Anglo-Eastern companies under “Teekay Marine Ltd”. The new company will be Teekay majority owned and most staff will originate with Teekay, however some key positions including board membership will be provided by Anglo-Eastern. Teekay currently controls a fleet of around 150 ships comprising LNG carriers, offshore vessels and several classes of tankers.
STAR REEFERS RE-BRANDS
Following the recent decision of Bergen based Green Reefers to cease operations and sign out of the Oslo exchange, a further reflection of acute market weakness in the pure reefer sector was made evident this week with the announcement that Star Reefers is henceforth to be known as Siem Shipping. Whilst based in the UK, Star Reefers is 73.5% owned by the Siem Industrial Group, registered in the Cayman Islands. Strong competition from the container sector has reduced the once prosperous reefer sector to a shadow of its former self.
KOREA FORMALIZES CARGO PREFERENCE POLICY
Korea is the latest Asian country to lean on domestic energy companies to give preference to the country’s own ship owners. Whilst the policy of cargo preference has been de facto amongst many Asian countries for some years, Korea’s Ministry of Land, Transport and Maritime affairs has added transparency to its own policy by declaring that Japanese owners will not be allowed to carry coal for power stations if Japanese firms are confirmed to have forbidden Korean shipping companies from taking part in that country’s charter tenders. The major bulk contractor Korea Electric Power Corp (Kepco) will be amongst those who will be required to support domestically owned shipping companies with the obvious consequences for markets. Asian governments frequently have leverage over their national ship owners on account of arranging favourable new building credit terms.
ILA STILL SABRE RATTLING
The President of the International Longshoremen’s Association (ILA) Mr. Harold Daggett commented this week that representatives for the U.S. East Coast and Gulf employers, the United States Maritime Alliance (USMX), has thus far been unwilling to agree to ILA contract demands for job guarantees in exchange for the implementation of labour saving technology. Mr. Daggett has taken the step of advising union officers to “inform their memberships that they should prepare themselves for any action we may have to take if USMX’s position does not change.” The two sides met in Tampa in late March and exchanged initial proposals for a new coastwide master contract but since then Mr. Daggett claims to have had only sporadic conversations with USMX Chairman and CEO Mr. James Capo. In response, Mr. Capo urged the ILA president to agree to negotiations without preconditions and to work to avoid disruptions when the union’s contract expires on Sept. 30.
Somebody’s head will undoubtedly roll following the embarrassing contact between a newly built Chinese river cruise ship and a suspension bridge spanning the Oujiang River located in Wenzhou city, Zhejiang Province, south of Shanghai. The Mingzhu No. 7″ struck the underside of the bridge last week shearing off the vessel’s funnels and slightly damaging the bridge deck. The ships maiden voyage is (was) scheduled for October.
GOLDEN GATE BRIDGE CELEBRATES 75th ANNIVERSARY
San Francisco’s iconic Golden Gate Bridge celebrated its 75th anniversary last weekend in grand style. To mark the occasion, the mothballed battleship USS Iowa sailed from San Francisco under tow to Los Angeles where the last remaining World War II battleship is set to become an interactive naval museum at the Pacific Battleship Center. A surprise arrival was that of the aircraft carrier USS Nimitz ahead of a late night fireworks display. Bridge construction began in January 1933 and was completed in April 1937 at a cost of $35 million. The last living worker to be employed on the construction died in April this year.
MEMORIAL SERVICE FOR MIKE MYKHAYLOV
I regret to inform you that Mykola (Mike) Mykhaylov of McLean Taylor Marine Surveyors Ltd. passed away on May 29, 2012. He had been battling with cancer for the past three months and died peacefully at home, surrounded by his family. His memorial service is taking place this Friday, June 1, 2012, at 2pm, at Burquitlam Funeral Home, 625 North Road, Coquitlam, BC.
Capesizes and Panamaxes both had a miserable week resulting in the Baltic Dry Index closing on Thursday on 923 points, compared to 1058 points last week and 1137 points the week before.
Cape Size Panamax Supramax
Index 1319 923 1034
One week ago 1437 1130 1124
Spot time charter $5,000/day $7,300/day $10,800/day
One week ago $6,800/day $9,000/day $11,600/day
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”. 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.
WORLD OCEANS DAY FESTIVAL - JUNE 8th TO 10th
The Maritime Museum of BC and Ocean Networks Canada will partner with businesses and community organizations within the Victoria Inner Harbour and surrounding areas for their first annual World Oceans Day Festival, June 8th -10th. This event is free and will be open to the public June 9th and 10th from 11am-5pm outside in beautiful Bastion Square and inside at the Maritime Museum of BC. Visit the event website for more information, or call 250-385-4222, ext. 112.
VANCOUVER GRAIN EXCHANGE GOLF TOURNAMENT
ARCTIC SHIPPING UPDATE
June 21 – A half-day morning session is planned to discuss developments in Arctic Shipping with the Canadian Coast Guard. Information flyer attached.
PREPARING FOR THE ECA – TACOMA, WA
June 28 - The Chamber of Shipping in conjunction with the Pacific Merchant Shipping Association will be holding a US-Canada full day session on the implementation of the Emissions Control Area on Thursday, June 28th from 0800 to 1700 hrs in the Hotel Murano in Tacoma, WA. Registration is $95 and can be done on line at: http://www.regonline.com/PreparingfortheECA2012.
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/
Jun 5 BC Chamber of Commerce Transportation Summit
Jun 5 CIABC Board of Directors Meeting and Annual General Meeting
Jun 6 COS Board of Directors Meeting @ 11:30
Jun 7 Business of Shipping Course (full day) Vancouver Island Convention Centre, Nanaimo
Jun 11 COS Liner Committee Meeting @ 12:00 hrs.
Jun 12 Canadian Wheat Board – CPCA Meeting @ 10:00
Jun 12 COS Ship & Port Operations Committee Meeting @ 12:00
Jun 15 Vancouver Grain Exchange Golf Tournament
Jun 18 COS Island Committee Meeting @ 13:30
Jun 19 International Sailors’ Society Canada Annual General Meeting @ 12:00
Jun 19 COS Owners Committee Meeting @ 12:00
Jun 21 Arctic Shipping Session with CCG @ 08:30
Jun 22 COS Navigation & Pilotage Committee Meeting @ 10:00
Ship of the Week
BBC Amethyst transiting the Kiel Canal
Jiangzhou Union Shipbuilding
BBC Amethyst was the second delivery of a series of 14 planned new buildings for “BBC Chartering” this year. She provides the option of a combined lifting capacity of 800mt using 2x400mt cranes in tandem. This vessel type currently marks the top of the company’s heavy lift fleet portfolio. Last year the company also introduced the BBC ‘project division’. This service unit offers dedicated tender management and transport engineering capabilities in support of project cargo shipments in the business segment which demands in excess of 500mt lifting capacity, a frequent requirement of the offshore, oil and gas industry.
BBC Chartering provides a wide range of solutions to movement of general and project cargoes
BBC Chartering operates a fleet of around 140 multipurpose and heavy lift vessels in a combination of contract, voyage and liner services around the world. Vessels range from 3,500 to 37,300 DWT with lifting capacity.
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