COS Weekly News - 29 June 2012
Friday, 29 June 2012 14:15
COS News – Week ending 29 June 2012
Issue No. 215
ENGLISH BAY ANCHORAGE REVISIONS
Effective July 1st, the number of English Bay anchorages will be increased from 12 to 15 plus an emergency anchorage will be established off Point Grey. There will be a transition period as vessels in existing anchorages will not be requested to move in order to accommodate the new configuration. Port Metro Vancouver is conducting a risk assessment on extending the use of the West Vancouver seasonal anchorages.
EPA RELEASES GUIDELINES ON FUEL AVAILABILITY PROVISIONS FOR SHIPS OPERATING OFF THE COASTS ON THE UNITED STATES
The US Environmental Protection Agency (EPA) released interim guidance for ship owners and operators clarifying how the US government will implement fuel availability provisions when ships are unable to obtain fuel that meets the required standard. The guidance explains how owners and operators of vessels can establish compliance with these requirements, and describes how an owner or operator of a vessel who cannot obtain compliant fuel oil can make a fuel oil non-availability claim. However, there is no requirement to switch to distillate fuel within the Emissions Control Area (ECA) before January 1, 2015. The North American ECA will come into force on August 1, 2012 in the United States and in late November 2012 in Canada. At those times, the maximum permissible sulfur content of fuel oil used by ships in the ECA will be limited to 1.0% reducing to 0.1% effective January 1, 2015. Please read the interim guidance issued by EPA and if not already done so, consider registering for the Chamber’s next ECA information session in Vancouver on July 12.
This week COS co-hosted with the Pacific Merchant Shipping Association (PMSA) a full day ECA workshop in Tacoma for 150 registrants with panel sessions involving the US Coast Guard, Transport Canada, bunker suppliers & brokers, classification societies and manufactures of exhaust gas cleaning systems. In addition, Teekay provided a presentation on their project to develop a BC marine LNG supply option. Transport Canada advised that the proposed regulatory amendments to include the ECA implementation will be published in Part I of the Canada Gazette on July 21st for a 75-day comment period ending October 4th. Dr. Leigh Mazany, Director, Environmental Policy Analysis and Evaluation for Transport Canada, indicated that Canada is working closely with the US to ensure that there is a consistent approach to enforcement actions.
HARRISON APPOINTED PRESIDENT AND CEO OF CP RAIL
CP today announced the appointment of Hunter Harrison as CP’s president and chief executive officer and a member of the Board of Directors. The appointment was made following a fierce proxy fight in which an activist investor argued the former Canadian National chief could make the railroad more profitable.
TUG INCIDENT IN THE FRASER RIVER
A tugboat capsized and sank in the Fraser River near the CNR Rail Bridge yesterday. The captain of the tug and the passenger on the barge were rescued and taken to Royal Columbia Hospital. Coast Guard officer Jeff Olsson said the tug was working with a second tug manoeuvring a barge on the fast-flowing river just up from the CNR Rail Bridge when it flipped and capsized. The tugs were reportedly towing a barge from Amix Recycling's Surrey location.
The lower Fraser River flood waters are nearing their peak, and Olsson said the water is flowing so quickly that Coast Guard crews had little time to attempt a rescue. View CBC News.
SEASPAN TRIPLE COMMISSIONING CEREMONY
Seaspan hosted its first ever triple Tug commissioning ceremony at Cates Dock in North Vancouver on a warm and overcast afternoon yesterday. Seaspan was honored to have the Chief’s wives of the Squamish, Tsleil-Waututh and Haisla Nations to sponsor and of course, smash the champagne bottles on the bow of the Seaspan Eagle, Kestrel and Osprey. Tracey Ross, wife of Chief Councillor Ellis Ross of the Haisla First Nations was the sponsor for the Seaspan Eagle along with Vivian Jacob who is the wife of Chief Gibby Jacob of the Squamish Nation who sponsored the Seaspan Osprey and Heidi George, wife of Chief Justin George of the Tsleil-Waututh Nation who was the sponsor for the Seaspan Kestrel. These tugs join the Seaspan Raven as part of the 4 Super Tractor Tug additions to the Seaspan fleet and these tugs are specifically built for ship assist and escort work in Vancouver Harbour and Roberts Bank. These behemoth tugs range from 5000 to 6000 BHP and have a bollard pull rating of 71T to 85T and feature full FiFi One Firefighting capabilities. Seaspan’s CEO, Jonathan Whitworth said, “Not only are these tugs some of the largest and strongest boats to serve the Port of Vancouver, they also have full fire fighting capabilities and will protect the Port and its workers for decades to come.”
Whitworth also said, “We are extremely fortunate to have three sponsors who represent Seaspan’s connection to not only our past, but also our future. The people of the Squamish, Tsleil-Waututh and Haisla have been living on the land and the water along the BC coast since time began. All coastal First Nation communities have a deep and sacred connection to the sea, and just like the employees at Seaspan, we all share the responsibility of keeping the pristine waters of BC safe and clean.”
SAMSON TUGS ANNIVERSARY
This July marks the first anniversary of Samson Tug Boats. To date, Samson has completed over 250 ship moves through challenging conditions often found on the fast moving Fraser River.
Government Updates
MORE JOBS AFFECTED AT TRANSPORT CANADA
On Wednesday, Transport Canada advised another 157 people that they may lose their jobs bringing the grand total to 370 employees affected. Of these positions affected this week, 107 will be eliminated. Amongst those receiving notices today are technical inspectors responsible for marine safety and security, and a number of communication specialists and administrative functions and, most notably, all regional Health and Safety Advisors who were recently hired to help bring the department into compliance with federal Health and Safety legislation.
The Public Service Alliance of Canada (PSAC) has issued a release seeking greater transparency on service cuts. The release provides a good summary on the number of positions affected in each department.
TRANSPORT CANADA MESSAGE ON INTERNATIONAL DAY OF THE SEAFARER
Monday, June 25th was the third annual Day of the Seafarer. To celebrate, the 170 member states of the International Maritime Organization (IMO) honoured the contribution seafarers make to the global economy in sailing the ships that carry more than 90% of international trade. “The world’s 1.5 million seafarers ensure these goods make it to market safely, efficiently and with the least possible impact on the environment and this event is an excellent way to highlight how important seafarers really are,” said Donald Roussel, Director General of Marine Safety and Security at Transport Canada. “We all depend on them every day to get most of what we buy to market.”
CANADIAN WHEAT BOARD TO RECEIVE UP TO $350 MILLION
The Government is providing a one-time injection of nearly $350 million to cover costs associated with its transition from a single-desk marketing agency to a competitive grain marketing organization. The investment will help defray certain transition costs as the CWB adjusts to operating in an open market such as pension and post-employment benefits, severance, computer systems, winding up the final statutory pool accounts and decommissioning costs. The pools for current and future years will continue to be used to pay for the normal operations of the CWB.
ESQUIMALT GRAVING DOCK RECEIVES FUNDING
The Honourable Rona Ambrose, Minister of Public Works and Government Services and Minister for Status of Women, announced that through Economic Action Plan 2012, the Government of Canada will invest $101 million over the next five years in rehabilitating and modernizing the Esquimalt Graving Dock.
The Esquimalt Graving Dock is the largest deep sea shipbuilding and repair facility on Canada’s Pacific coast and is the only “open access” multi-user facility on the west coast of the Americas that provides common services (on a fee-for-service basis) and multi-user access to dry dock infrastructure for a variety of private sector companies.
The Esquimalt Graving Dock, which was originally constructed in 1927, generates economic benefits totaling $183 million annually for British Columbia and it supports an estimated 1,300 jobs in the Greater Victoria Area.
FACILITATOR RELEASES FINAL REPORT ON THE RAIL FREIGHT SERVICES REVIEW
The Honourable Denis Lebel, Minister of Transport, Infrastructure and Communities, and Minister of the Economic Development Agency of Canada for the regions of Quebec, has issued a news release following the final report of the Facilitator, Jim Dinning, of the Rail Freight Service Review. Mr. Dinning was appointed as the independent facilitator leading a 6-month facilitation process to develop a template service agreement and a streamlined commercial dispute resolution process between railways and stakeholders. The process, which concluded on April 16, 2012, is a key part of the government’s response to the Rail Freight Service Review. The Minister received the Facilitator’s report on June 4, 2011. The facilitation and Mr. Dinning’s recommendations are distinct from the bill to give shippers the right to service agreements with railways and a process to establish such agreements should commercial negotiations fail, which the government is planning to table later this fall. The bill will be another component of the government’s response to the Rail Freight Service Review’s recommendations.
APPOINTMENT TO THE PORT ALBERNI PORT AUTHORITY
The Honourable Denis Lebel, Minister of Transport, Infrastructure and Communities, announced the appointment of Mr. Ron Crema to the board of directors of the Port Alberni Port Authority for a three-year term. Mr. Crema has over 25 years of experience in distribution and, since April 2010, has worked independently as a distribution and change management consultant. For nearly 20 years, he was manager of distribution for Canadian paper manufacturers Catalyst Paper, NorskeCanada and Pacifica Papers Inc.
CBSA ANNOUNCES CHANGES TO CRUISE SHIP CLEARANCE PROCEDURES
The Canada Border Services Agency (CBSA) has announced changes to its cruise ship operations clearance procedures through the launch of the Cruise Ship Gateway Strategy.
Starting this year, the CBSA will pilot the Cruise Ship Gateway Strategy to simplify cruise ship reporting requirements and save time and money for cruise ship operators and the CBSA. Beginning August 2012, the CBSA will fully clear all vessels whose first point of arrival (FPOA) is St. John’s, Newfoundland or Halifax, Nova Scotia. Full clearance includes both admissibility (immigration) and goods (customs). Under this pilot, cruise ships entering Canada will now be able to explore Canadian communities with greater flexibility. Once cleared at an FPOA site, the ship can visit any port of call within Canada with greater ease. Passengers can disembark and embark without further CBSA clearance provided that the ship does not subsequently dock at a foreign port. This process will apply even if the ship enters international waters and then re-enters Canada. However, should a cruise ship dock at a foreign port, upon return to Canada, re-clearing through CBSA will be required. This change to operations will maximize efficiencies for the CBSA while stimulating local economies by promoting travel and tourism along our coasts and inland waterways.
These changes to cruise ship operations are intended to benefit stakeholders and cruise ship operators by reducing CBSA processing time and reducing cost recovery expenses. In addition, this strategy will promote more flexible itineraries, tourism and economic development, while enabling the CBSA to meet its’ fiscal requirements under the Government of Canada’s Deficit Reduction Action Plan.
International News
CRUISE INDUSTRY IMPLEMENTS NEW SAFETY RECOMMENDATIONS
Still struggling with the after effects of the Costa Concordia, the cruise industry this week announced that a review of safety has concluded the need for a voluntary, vessel by vessel, set of common elements for muster and emergency instructions. In addition, a list of mandatory information is to be held by search and rescue authorities onshore and must include all cruise passengers’ nationalities. In February this year, the cruise industry adopted a new muster policy whereby all passengers now receive their muster drill before the ship sails. Since then, three further policies on voyage planning, bridge access and lifejackets have also been adopted and implemented across the fleet.
Costa Concordia salvage preparations continue and sun seekers have a view of the action
Whilsr Mediterranean cruise occupancy levels are holding up reasonably well, Greece has received a lecture from the major cruise lines with a frankly delivered summary of the country’s shortcomings. Recent legislative changes to eliminate cabotage and thereby allow non-EU flagged ships to home port in Greece are gradually gaining acceptance from port unions but the cruise lines are also calling for the adoption of a practical berth allocation scheme and an assurance that port charge adjustments are “reasonable and only introduced after consultation with industry.
PANAMA CANAL TOLL INCREASES DEFERRED TO OCTOBER
In response to intensive lobbying from user groups, the Panama Canal Authority (ACP) this week conceded that toll increases will be deferred from July 1 to October 1 this year. In addition, the second stage of a new fee structure will be delayed to October 2013 with some amendments to the initial proposal including elimination of the proposed container/breakbulk segment. These vessels will therefore continue to be classified as “others”. However, at the end of the day, on October 1, 2012 and October 1, 2013, respectively, the ACP still intends to increase tolls for general cargo, dry bulk, tanker, chemical tanker, LPG, vehicle carrier and ro-ro, and “other” tonnage but there will be no adjustments for containerships, reefer ships or passenger ships this time round.
IMB REPORTS 2011 HOSTAGE STATISTICS
Statistics just released by the One Earth Future Foundation and the International Maritime Bureau to mark the International Maritime Organization’s “Annual Day of the Seafarer”, indicate that a least 35 hostages died as a result of the Somali piracy crisis last. The number of prisoners taken fell to 555, compared to 645 in 2010. The death toll includes eight known to have been killed by their captors either during a hijack attempt or later executed and a further eight died of malnutrition or disease. The rest were killed either during rescue attempts by military forces or while trying to escape.
Of those released, many reported physical abuse including beatings, removal of fingernails and dumping in the sea. For their part, pirates are paying a price with at least 111 killed in 2011, mostly during interceptions by international naval forces.
US CONTINUES TO DEBATE ACCESSION TO UNCLOS
After decades of negotiations leading to the adoption of the United Nations Conference of the Law of the Sea (UNCLOS), the treaty was opened to signatures in 1982 and has since been signed by every major maritime nation except the United States. However, there is modest optimism that this might finally be the year. UNCLOS establishes basic rules for delimiting, sharing, protecting, exploiting, and researching the world’s maritime resources and within the US there is an awareness that if the country fails to accede to the Convention this year, the consequences for the US economy, the maritime industry, the environment, and for US sovereign interests could be severe. In its original form, the Convention posed viable objections for the maritime industry and for American sovereign rights however, after these objections were raised by the Reagan administration, by 1994 negotiators were successful in amending the Convention to address all US concerns.
US Flag officers testify in support of UNCLOS before the Senate Foreign Relations Committee last week
In November this year, UNCLOS will be open for amendment. If the US isn’t at the negotiating table to assert its interests, it will lose its leadership role on global maritime issues, its ability to claim rights over a continental shelf beyond the Exclusive Economic Zone, and it will fall victim to efforts by other maritime nations that have sought to restrict military and merchant vessel activity near their coastlines. The US is also the only country with a permanent seat on the International Seabed Authority (ISA) which gives the US veto power over any decision made by that body. If the US doesn’t accede to UNCLOS, there is a strong likelihood that it will lose this strategic position.
The offshore industry begins to exploit continental shelf resources this summer under the legal certainty of UNCLOS. Accession also means that the U.S. will leave the ranks of Iran, Syria, and North Korea as one of the few maritime countries not a party to the convention. Click on the link for a complete explanation of UNCLOS.
TONSBERG VOTED SHIP OF THE YEAR 2011
The world's largest ro-ro ship Tonsberg, the first of four sister ships to be built by Mitsubishi Heavy Industries (MHI) and owned by the Wilh. Wilhelmsen group has been awarded the "Ship of the Year 2011" by the Japan Society of Naval Architects and Ocean Engineers (JASNAOE). Every year JASNAOE selects what it considers to be the most technologically, artistically and socially superior ships and marine structures built that year, and the Tonsberg was chosen for its transport efficiency and environmental compatibility.
Tonsberg – voted by the Japan Society of Naval Architects and Ocean Engineers as their ship of the year 2011
Market Update
Another steady as she goes week with the Baltic Dry Index closing slightly up at close of business on Thursday on 994 points, compared to 978 points last week and 912 points the week before.
Cape Size Panamax Supramax
Index 1184 968 1247
One week ago 1152 1073 1167
Spot time charter $3,900/day $7,700/day $13,000/day
One week ago $3,600/day $8,500/day $12,200/day
Containers: Alphaliner reported this week that the world container ship fleet has reached 16 million TEU. Capacity in the first half of this year was increased by a little over 800,000 TEU with cellular container fleet now at 4,950 ships. A further 670,000 TEU of capacity is due to be delivered in the second half of 2012. In terms of rates, most lines are targeting a peak season surcharge in the key Asia-Europe trade of around $500 per FEU effective July 1 but given recent softness in the market, nobody betting the family jewels on the higher rates sticking.
Upcoming Events
EMISSIONS CONTROL INFORMATION SESSION
July 12 – The Chamber of Shipping is holding an information session to discuss the implementation of the North American Emissions Control Area. See attached information to register or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it
CYCLING FOR SEAFARERS 2012
Sept 15 – The Mission to Seafarers’ 5th Annual Cycling for Seafarer invites participants to join in on the 40 or 100 km bike ride through Vancouver to Port Moody on Saturday, September 15th. Registration is now available and space is limited so don’t wait to register. See attached for more information or visit www.flyingangel.ca. This year’s target is to raise more than $40,000.
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/
Jul 1 Canada Day
Jul 2 Office Closed
Jul 3 CIABC Board of Directors Meeting @ 10:30
Jul 4 COS Board of Directors Meeting @ 11:30
Jul 5 CBSA ACI eManifest Technical Webinar @ 07:00
Jul 5 BC Marine Vessel Air Quality Working Group Meeting @ 09:00
Jul 10 COS Ship & Port Operations Committee Meeting @ 12:00
Jul 11 COS Liner Committee Meeting @ 10:00
Jul 12 COS ECA Update Session @ 09:00
Jul 18 Plimsoll Club Board of Directors Meeting @ 12:00
Jul 19 COS Navigation & Pilotage Committee Meeting @ 10:00
Ship of the Week
S.A. Agulhas II – polar supply and research ship on sea trials off the coast of Finland
Keel laid January 2011 at STX Rauma, Finland
Delivered April 2012, arrived Capetown May 2012
Owner: South African Department of Environmental Affairs
LOA: 132.4m
Beam: 21.7m
GRT 12,897
Propulsion: Diesel –electric twin shafts, 2 x 4,500 kw with controllable pitch propellers
Speed 16 knots (5 knots in 1 metre of ice)
Range 15,000 miles
Crew: 45
Passengers 100 in 46 cabins
Aviation: 2 x Atlas Oryx/Puma class helicopters
Cost $191 million (Rand 1.5 billion)
The SA Agulhas II also has a large 35 ton crane on the foredeck to load and discharge heavy lifts onto the ice shelf, and three general purpose 10 ton cranes for general cargo work. On board is a fully integrated navigation system, including dynamic positioning, as well as an Ice Radar, V SAT satellite com-munications system for data transfer, email and Internet access. The ship also boasts lounges for the passengers and crew, a business centre, a library, a 100-person auditorium and two gymnasia. Research facilities include eight permanent laboratories and six container laboratories, a range of scientific winches and davits for the deployment of a wide range of samplers, facilities for vertical water column sampling and coring to 5 000 metres, a moon pool for sampling in the pack ice, a drop keel to house various acoustic transducers, and a deep-water subbottom profiler and automatic weather station.
For our more technically minded readers the SA Agulhas II carries the following official notation: DNV + 1A1 Passenger Ship, Ice class IACS PC5 (ICE-10 for Hull), WINTERISED BASIC, DAT (-35), EO, RP, HELDK-SHF, CLEAN DESIGN, COMF V(2)/C(2), NAUT-AW, TMON, BIS, DYNPOS-AUT, DE-ICE, LFL. She will make her first voyage to the Antarctic in October this year.
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