COS Weekly News 15 June 2012
Friday, 15 June 2012 16:00
COS News – Week ending 15 June 2012
Issue No. 213
CHAMBER TO HOST FIRST ARCTIC NAVIGATION WORKSHOP
This is the time of year when questions are frequently raised with respect to navigation in the Arctic and transit of the North West Passage. The Chamber is therefore very pleased to host an information workshop with Captain David (Duke) Snider, Regional Director Fleet (Pacific) with the Canadian Coast Guard on June 21. Please see attached flyer for registration details – all are welcome.
Ribera del Duero Knutsen- Ice-Class 1A LNG tanker
On the subject of Arctic sailing, the northern sea route across Russia’s far north will shortly be open to provide access to the short cut between Asia and Europe. About 34 ships are known to have made the transit last year. Among the vessels registered to sail from Europe to Asia this year is the LNG carrier Ribera del Duero Knutsen, the only ice-class 1A LNG tanker in the world which will transit from Norway to Japan.
WIND TURBINES DISCHARGED AT DUKE POINT
In a first for Nanaimo’s Duke Point Terminal, 55 wind turbines were this week discharged from Grieg Star’s Star America. The turbines are destined for the Knob Hill Wind Farm located 35 km northwest of Port Hardy on Northern Vancouver Island, within the traditional territories of the Quatsino, Tlatlasikwala, and Kwakiutl First Nations. Phase 1 of the Project is projected to generate sufficient renewable power to provide for the annual electricity needs of approximately 100,000 people. The Knob Hill Wind Farm was the first wind project to receive an Environmental Assessment Certificate within British Columbia. Upon completion of construction, it will be the first operating power generation facility initiated by Sea Breeze, whose development team is presently investigating an additional 180,000 hectares for wind power development throughout British Columbia.
The final delivery of components to Duke Point is expected in early August and wind farm construction is expected to start in October. The turbine towers comprise three sections and when installed will stand 80 m (256 ft.) and the three blades connecting from a central hub each measure 50m (161 ft.). International Power puts the total value of the project at $300 million.
PRINCE RUPERT PORT AUTHORITY OPENS PORT INTERPRETIVE CENTRE
The Port of Prince Rupert Interpretive Centre opened its doors yesterday during a gala reception following the Port Authority's Annual Public Meeting yesterday. The Interpretive Centre, located in the Atlin Terminal on the Cow Bay waterfront, provides visitors and residents with opportunities to explore the history, operations, and future of North America's fastest-growing port.
Inside the Port Interpretive Centre, a combination of displays and interactive digital experiences tell the story of ten thousand years of trade history in and around Prince Rupert. For millennia, the region was a trading hub for First Nations. Today's high-efficiency container, grain and coal terminals sustain the long tradition of commerce in the city.
A BUSY DAY FOR CRUISE SHIPS IN VICTORIA
On May 31st Ogden Point hosted five cruise ships carrying 9364 passengers and 2,800 crew members. The last time the City was visited by 5 ships in one day was in 2008.
Ship Passenger Occupancy Brand
Sea Princess 1950 Princess Cruise Lines
Rhapsody of the Seas 2000 Royal Caribbean
Celebrity Millenium 2034 Celebrity Cruise Line
Amsterdam 1380 Holland America Line
Celebrity Infinity 2000 Celebrity Cruise Line
Video: http://www.youtube.com/watch?v=F7c8eljoma8&feature=youtu.be
NEW EQUIPMENT AT WCMRC
Western Canada Marine Response Corp (WCMRC) continues to increase oil spill response capability having taken delivery of “Burrard Cleaner #3”, an almost new rapid response skimmer purchased from the vast inventory of equipment that was stockpiled following the Deepwater Horizon spill in 2010 and shipped to Vancouver from Memphis, Tenn. Built by Kvichak Marine Industries in Seattle, she is 30 feet in length with twin 70 HP outboard engines giving a speed of up to 17 knots.
COS NEW PRINCIPAL MEMBER
The Board of Directors and secretariat of the Chamber of Shipping welcomes our newest Principal member Pacific Northwest Ship & Cargo Services Inc. of 360-145 Chadwick Court, North Vancouver, BC, and its representatives John Mears and David Crockett.
PCT COMMEMORATES EXCEPTIONAL SAFETY RECORD
Pacific Coast Terminals Co. Ltd. (PCT) celebrated over 10 years of safe operations with its annual Safety Day at its Port Moody facility, on June 5, 2012. PCT has not had a lost-time accident in 1,519 days (4.16 years). In the company’s maintenance division, it has been 2, 309 days (6.32 years) since employee time was lost due to a safety incident. WorkSafeBC has regularly identified PCT’s continued commitment to going beyond the legal requirements of the Workers Compensation Act and has awarded PCT with “Certificates of Recognition.” These certificates acknowledge PCT’s best practices approach to implementing health, safety and injury management systems.
In addition to local recognition, PCT was internationally recognized for its stellar safety record – In 2010, PCT was awarded the “Safety in Bulk Handling” from the International Bulk Journal, a prestigious organization representing the global maritime dry bulk industry for over 30 years.
PMV ANNOUNCES 2011 BLUE CIRCLE AWARD RECIPIENTS
Port Metro Vancouver has recognized 11 shipping lines with its third annual Blue Circle Award, for 2011. The Port established the Blue Circle Awards in 2009 to acknowledge industry commitment to port sustainability. This year, Port Metro Vancouver honours the environmental achievements of customers who participate in the Port’s EcoAction Program for Shipping, a financial incentive for cruise and shipping lines to reduce emissions.
The 2011 Port Metro Vancouver Blue Circle Award recipients are:
- APL (Canada)
- Disney Cruise Line
- Grieg Star Shipping (Canada) Ltd.
- Holland America Line
- “K” Line
- Maersk Line
- Princess Cruises
- Westwood Shipping Lines
BC COAST PILOTS
The British Columbia Coast Pilots Ltd. has announced its new Board of Directors for 2012/2013:
President Captain F. W. (Fred) Denning
Vice President Captain R. H. (Robin) Stewart
Director Captain A. K. (Tony) Steele
Director Captain R. E. (Roy) Stewart
Director Captain S. E. G. (Scott) Capling
Government Updates
NEW CHAIRPERSON OF THE SECURITY INTELLIGENCE REVIEW COMMITTEE NAMED
Prime Minister Stephen Harper announced the appointment of the Honourable Chuck Strahl as Chairperson of the Security Intelligence Review Committee. This appointment is effective immediately.
Mr. Strahl was elected in six consecutive federal elections from 1993 until 2011 as Member of Parliament for the riding of Chilliwack—Fraser Canyon in British Columbia, and served as Minister of Agriculture and Agri-Food, Minister of Indian Affairs and Northern Development and Minister of Transport, Infrastructure and Communities.
The Security Intelligence Review Committee was established in 1984. Its mandate is to oversee and review the operations of the Canadian Security Intelligence Service and to investigate complaints against that agency.
International News
USMX AND ILA AGREE TO RESUME NEGOTIATIONS
After a couple of weeks slating each other in the media, an invitation from the ILA President to the President of the US Maritime Alliance has resulted in an agreement to resume negotiations in Delray Beach, Florida for a new longshore contract on the US East and Gulf coasts.
US BLAMES LACK OF AWARENESS FOR MARITIME PROSECUTIONS
In a tacit acknowledgment of the complexity surrounding US environmental regulations, ship owners were informed that poor paperwork and ignorance, rather than actual pollution, are the most common reasons why the US enforces environmental regulations so strongly. The comments were made by a US lawyer at a seminar held at the Posidonia conference in Athens last week. Under a new a memorandum of understanding between the Environmental Protection Agency and the US Coast Guard, it was underlined that EPA develops protocols while the USCG enforces them. For starters, all ships operating in US waters must hold a Vessel Guarantee Permit (VGP) but be equally aware that some states have more stringent regulations than those required by federal law. As an example, in five states cargo owners are equally as liable as the ship owner in the event of an environmental incident, while some have also adopted unlimited liability.
ICS INVITED TO PARTICIPATE IN “RIO +20” SUMMIT AND OCEANS DAY
Next week the United Nations will convene the “Rio + 20” Summit on Sustainable Development which is to be attended by many heads of state. The event will mark the 20 years that have elapsed since the “Earth Summit” of 1992, generally regarded as the first meeting of world leaders to tackle environmental issues. A key feature of the Summit will be the “Oceans Day” event on June 16 at which the International Chamber of Shipping has been invited to make remarks on behalf of the marine industry (see attached press release). ICS has also helped to draft a chapter on Maritime Transport for a special UN publication on the Oceans (Green Economy in a Blue World) that will be distributed during the Summit.
CHINESE PORTS URGED TO STEP UP ENVIRONMENTAL MANAGEMENT
China has established emission and energy intensity reduction targets for its maritime sector as part of the country’s efforts to curb pollution and global warming. The Ministry of Transport has decreed that by 2015 ship owners are to reduce their CO2 emissions per tonne-mile by 16% from the 2005 levels and to cut their energy consumption per tonne-mile by 15%. During the same 10 year period, port operators are under instructions to cut CO2 emission per throughput by 10% and energy use per throughput by 8%. The ambitious targets are not formally binding, but... For its part, China imported a record volume of crude oil in May as it continued to build up stocks in the face of concerns over supplies coming out of the Middle East. Crude imports into China in May hit 6m barrels per day, up 18% over the same month last year, according to preliminary data.
DEADLINE NEARS FOR US OIL SANCTIONS ON IRAN
Having substantially reduced their oil imports from Japan this year, the US is to exempt seven more countries from sanctions. The countries listed are India, South Korea, Taiwan, Sri Lanka, Turkey, Malaysia and South Africa, all of which will receive waivers from sanctions on their financial institutions for a period of 180 days. In March, the US issued similar waivers to Japan and 10 European countries deemed to have made significant efforts to reduce purchases of Iranian oil. On the other side of the coin, The U.S. government has threatened to exclude non compliant institutions from its financial system effective June 28 and the European Union this week confirmed that it will not scrap or delay a ban on P&I clubs insuring Iranian tankers from 1 July.
SOLO ROWERS RESCUED OFF JAPAN
Rescue of solo rower Ms. Sarah Outen and right Mr. Charlie Martell
Solo rower Ms. Sarah Outen was rescued by the Japanese coast guard last week after getting into difficulty 560 miles off the coast of Japan. UK national Ms.Outen embarked on her planned 30 months and 32,000 km endeavour to circle the globe using only human power, cycling, rowing and kayaking in April 2011. She was rescued when attempting to row from Japan to Canada when her boat was overcome by typhoon Mawar. Solo rower Mr. Charlie Martell, who was caught up in the same storm was rescued by the new handysize bulk carrier Last Tycoon en route to Vancouver. His boat, Blossom, was 680 miles off northeastern Japan, the coast guard said. Mr Martell, who set sail from Choshi, east of Tokyo, on May 5 bound for San Francisco, had been aiming to claim the record for the fastest crossing of the North Pacific….hum.
2012 IMO AWARD FOR EXCEPTIONAL BRAVERY
The 2012 IMO Award for Exceptional Bravery at Sea will go to members of rescue crews from Canada and Chile for their actions in saving the lives of persons in distress at sea.
The IMO Council has decided that the award will go to Sergeant Janick Gilbert (posthumously), Master Corporal Max Lahaye-Lemay and Master Corporal Marco Journeyman, crew members of the Royal Canadian Air Force’s 424 (Transport and Rescue) Squadron, nominated by the Government of Canada; and to Mr. César Flores Flores, a rescue swimmer in the aerial detachment of the Chilean Navy, nominated by the Government of Chile.
Market Update
Mitsui OSK this week became the first of Japan’s big three to place Capesizes into cold lay up in response to the dire market. MOL operates around 100 Capesizes, of which 20-25 are trading in the spot market with an additional 10 new buildings scheduled for delivery by end Q1 2013. Despite news of recovery in Chinese iron ore imports in May, Capesizes were further down this week, however thanks to a spike in rates for Panamaxes, the Baltic Dry Index closed slightly up at close of business on Thursday on 912 points, compared to 872 points last week and 923 points the week before.
Cape Size Panamax Supramax
Index 1162 1046 1038
One week ago 1232 882 1001
Spot time charter $3,700/day $8,300/day $10,600/day
One week ago $4,400/day $7,000/day $10,500/day
Tankers: Teekay market report for June http://www.youtube.com/watch?v=k2OAaLmR1K8
LNG: Teekay market report for Q2 http://www.youtube.com/watch?v=FjyulG6dr18
Containers: Rates from Asia to Europe are in decline according to both the World Container and Shanghai Containerized Freight indices. The WCI showed the Shanghai/Rotterdam rate last week lost $66 to $3,229 per FEU whilst the SCFI showed the Asia/North Europe rate lost $32 to $1,63 4 per TEU.
In the Pacific the WCI showed that the benchmark Shanghai/Los Angeles (West Coast) lost $111 to $2,235 per FEU whilst the SCFI showed the overall Asia-US West Coast trade having gained $333 to $2658 per FEU. Meanwhile it’s reported that the idle container fleet has dropped by almost 50% in the last three months from just over 900,000 TEU in mid-March to around 480,000 TEUs by mid-June.
It has also been announced that the PierPass fees charged at Los Angeles/Long Beach will increase by 2.5% to cover operating expenses and are to be adjusted annually thereafter. The fee will rise by $1.50 per TEU on August 1, to $61.50 per TEU and $123 per FEU. PierPass was introduced back in 2005 in an effort to reduce day shift truck congestion but has consistently made a loss with a deficit of $55m in 2011.
Upcoming Events
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. Venue has been changed to the Chamber of Shipping Boardroom.
DAY OF THE SEAFARER
June 25 - The United Nations will observe the Day of the Seafarer on Monday, June 25th this year. Very few Canadians realize that the work of seafarers touches the lives of each and every one of us. With 90% of our global trade transported by sea at some stage during the journey from its place of origin to its final destination, it is important to recognize that this trade cannot happen without the work of our seafarers. For Canada, seafarers help deliver 460 million tonnes of cargo valued at $162 billion annually. For more information view the International Sailors’ Society Canada’s press release.
INSTITUTE OF CHARTERED SHIPBROKERS AGM & PUB NIGHT
June 27 – ICS Canada will hold its Annual General Meeting on June 27th at 4:30 pm at the offices of Teekay Shipping and immediately following the AGM is the ICC Spring Pub Night from 5:30 pm at Mahoney & Sons Public House located at 1055 Canada Place. To RSVP, email This e-mail address is being protected from spambots. You need JavaScript enabled to view it no later than June 20th.
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. The agenda is attached.
ECA UPDATE SESSION
July 12th – (PLEASE NOTE DATE CHANGE) Mark your calendars as the Chamber of Shipping will host its second information session on the implementation of the North American Emissions Control Area on Thursday, July 12th starting at 09:00 at the Pan Pacific Hotel, Vancouver, BC. Further details on the event will be circulated in due course.
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 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 20 COS Customs Working Group Webinar @ 06:30 (tbc)
Jun 20 Vancouver Maritime Arbitrators Association Annual General Meeting @ 16:30
Jun 21 CBSA/US CBP Discussion on the Integrated Cargo Security Screening Pilot @ 14:45
Jun 22 COS Navigation & Pilotage Committee Meeting @ 10:00
Jun 25 Day of the Seafarer
Jun 27 WMC PACMAR/NANS Meeting
Jun 27 ICS Canada Annual General Meeting at 16:30
Jun 27 ICS Canada Pub Night @ 17:30
Jun 28 COS / PMSA ECA Conference, Tacoma, WA
Jul 1 Canada Day
Jul 2 Office Closed
Jul 12 COS ECA Update Session @ 09:00
Ship of the Week
MV Swift Rescue – submarine rescue vessel
The submarine support vessel, Swift Rescue, was launched by the Republic of Singapore Navy (RSN) in November 2008. The RSN is the first in the Southeast Asian region to acquire Submarine Escape and Rescue (SMER) capabilities with the equipping of this mother vessel and the submersible rescue vessel, Deep Search and Rescue Six (DSAR 6). The combination of Swift Rescue and DSAR allow for the rapid and effective evacuation of personnel from distressed submarines.
LOA 85m
Beam 18m
GRT 4300
Speed 12 knots
The design of Swift Rescue incorporates a wide range of capabilities to carry out SMER operations. The vessel comprises a helipad for the emergency evacuation of casualties, a Launch and Recovery system used to lower and raise the DSAR 6 the water, a medical centre equipped with an 8-bed High Dependency Ward and 10-bed Sick Bay, as well as a recompression chamber. The chamber has a capacity of 40 personnel and utilizes a Deck Transfer Lock to prevent changes in the atmospheric pressure of the rescued submariners when they are transferred from the DSAR 6 to the recompression chamber. The ship itself is operated by Singapore Technology Marine and manned by Swire Pacific Offshore. The mission command and medical teams are provided by the RSN.
Staying with the theme, the recent announcement of an award for three new ships for the Turkish Navy will result in a close working relationship between Istanbul Shipyard, Tuzla, and Rolls-Royce. Istanbul Shipyard will design and build a Submarine Rescue Mother Ship (MOSHIP) and two Rescue and Towing Ships whilst Rolls-Royce will supply tunnel and retractable thrusters for all three vessels. In addition Rolls-Royce Azipull main propulsion thrusters will be supplied for the MOSHIP, a dedicated submarine rescue mother ship designed to locate prior to perform subsea and surface search and rescue missions in all sea conditions at a depth of up to 600 metres.
artist’s impression of Turkey’s new MOSHIP
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