COS Weekly News - 13 July 2012
Monday, 16 July 2012 09:57
COS News – Week ending 13 July 2012
Issue No. 217
FINAL PRE- ECA WORKSHOP WELL ATTENDED
The Chamber of Shipping's Emissions Control Area (ECA) workshop yesterday was the final such event ahead of the implementation of this game changing legislation by the United States on August 1 and Canada later this year. Over 100 members and guests attended presentations by:
Mr. Tony Brewster, President, Marine Petrobulk (bunker supplier)
Capt. John Yeung, Manager Compliance and Enforcement, Transport Canada
Mr. T.L. Garrett, Vice-President, Pacific Merchant Shipping Association (based in Long Beach)
Mr. Greg Wirtz, President, North West & Canada Cruise Association.
A lively panel Q&A session followed – thanks to all participants. In follow up, Transport Canada has today issued a revised safety bulletin which includes a new appendix detailing the specific information to be made available on the Bunker Delivery Note (BDN) – visit our website for documents and recent presentations.
The State of California has meanwhile confirmed that it will not relax its law requiring ships to burn low-sulphur distillate fuel within 24 miles of the state coastline when the Emissions Control Area (ECA) comes into effect on August 1. For those vessels able to carry multiple grades of fuel, this may means a double switch during the approaches to a California port. This may trigger yet another law suit against the state on the basis that federal law (by way of the ECA) pre-empts state laws and which therefore do not allow California to exercise jurisdictional powers beyond three miles of its coastline.
Still in California, the Pacific Maritime Association is funding the construction of a new $15m ILWU dispatch hall for the Ports of Los Angeles and Long Beach. The new hall is scheduled to open in 2013 and is described as a state of the art “green” building which will accommodate up to 3,000 longshoremen at dispatch time.
UPDATED WCMRC SHIP MEMBERSHIP AGREEMENTS
Western Canada Marine Response Corporation has updated the Ship Membership Agreements and the new forms, in a fillable PDF format, are available for download from our website under Files & Downloads.
NEW COLLABORATION INITIATIVE FOR CONTAINER DRAYAGE SECTOR
Port Metro Vancouver and industry partners in the container drayage sector have announced a new collaboration initiative aimed directly at improving productivity and performance through Canada's Pacific Gateway with a particular focus on truck turn times.
The newly formed Container Drayage Leadership Team including the Chamber of Shipping, BC Trucking Association, Western Canadian Shippers Coalition, Port Metro Vancouver, and terminal operators has reached an agreement in principle that sets out a new approach to an integrated container drayage sector with increased
D-98-08 WOOD PACKAGING DIRECTIVE AMENDED
D-98-08 provides the requirements for the entry of all wood packaging material including dunnage, pallets or crating made from non-manufactured wood entering Canada. This 9th revision has been undertaken to establish specific import requirements for dunnage entering Canada aboard ships. The co-mingling of compliant and non-compliant dunnage aboard ships or upon discharge of non-compliant dunnage into Canada creates increased risk for the entry of pests. Discharged dunnage requires that its entry be strictly controlled. Appendix 3 contains a new declaration form for reporting the entry of dunnage to Canada Border Services Agency.
This directive has also been revised to reflect the amendments made to the International Standards for Phytosanitary Measures (ISPM) 15 regarding approved treatments for debarked wood and the new marking requirements.
IMO POLAR CODE MAKING SLOW PROGRESS
Whilst hardly the most popular summer topic of discussion, plans to develop a draft IMO Polar Code of conduct by March 2013 are being delayed by a number of key differences of opinion amongst member states. A final version of the code is scheduled for completion by 2014 but as yet there is no agreement over whether the code should include both the Antarctic and Arctic. Other points of disagreement include:
- A requirement to hold sailing permits and ice certificates
- Categories for ships operating in different ice thickness
- The status of fishing vessels
The Polar Code will be designed to cover vessel design, construction, equipment, operational, training, search and rescue and environmental protection relevant to ships operating in the waters surrounding the two poles. The decision to establish a mandatory code follows a resolution by the IMO Assembly in 2009. Whilst Arctic and Antarctic waters have a number of similarities, there are also differences including:
- The Arctic is an ocean surrounded by continents while the Antarctic is a continent surrounded by an ocean.
- The Antarctic sea ice retreats significantly during the summer season and therefore contains relatively little multi-year ice whereas Arctic sea ice survives many summer seasons and therefore hosts is a significant amount of multi-year ice.
A MARPOL regulation, to protect the Antarctic from pollution by heavy grade oils, was adopted by the Marine Environment Protection Committee (MEPC), at its 60th session in March, 2010 aand entered into force on 1 August 2011. Chief amongst negotiators of the Polar Code is the Arctic Council which comprises eight member countries: Canada; Denmark (including Faeroe Islands and Greenland); Finland, Iceland, Norway, Sweden, Russia and the United States. Every decision reached by the Council is determined by the consensus of the member countries.
GREECE LOOKS TO SELL OFF MORE PORT ASSETS
Port of Thessalonika – next on the chopping block?
Greek bail out talks with the European Union, the International Monetary Fund and the European Central Bank include a strategy to sell off concessions in the country’s major ports to raise €50bn. Thus far, Greece would like to maintain a controlling interest which is a policy that will likely have to be reconsidered before the money flows in. Local labour unions fought tooth and nail to prevent the 35 year concession agreement between Cosco Pacific and the Piraeus Port Authority for the port’s container terminal and investors will be wary of becoming embroiled in similar disputes. The major stock listed ports of Piraeus and Thessaloniki both have public floats of 25%. Formal proposals are expected to be tabled in September.
Always struggling to keep up with demand, matters are much worse than usual for the Port of Durban, South Africa following a storm on July 4 which has severely damaged two container cranes. Port Operator Transnet is encouraging shipping lines to make alternative plans including increased use of Port Elizabeth, East London and Cape Town for at least the next three months.
NORWEGIAN OFFSHORE SHUT DOWN AVERTED
The Government of Norway this week exercised emergency powers to force offshore oil and gas workers back to work, ending a 16-day strike just as production was due to come to a complete shut down in a dispute over pensions. The intervention means that the Norway’s “National Wages Board” will facilitate "forced arbitration" to get 6,500 offshore energy personnel back to work. The nub of the dispute is a demand for the right to retire early, at 62, with a full pension following the elimination of a pension add-on introduced in 1998 for workers who retire at 62, three years ahead of the general age for oil workers and five years ahead of Norway's official retirement age. Norway, the world's fifth largest oil exporter, has already seen its oil production cut by 13% and its gas output by 4% since the strikes began on 24 June.
Teekay shuttle tanker alongside in Stavanger
Oil was first discovered in the Norwegian Sea in 1969. The Norwegian state owns its own oil company named Statoil whose headquarters are in the country’s “oil capital” of Stavanger. Oil has made Norway an extremely prosperous country with large percentage of oil revenues invested in a rapidly accumulating oil fund. This has generated a contentious political dilemma on how best to use the money.
CONCENTRATED PORT STATE CONTROL INSPECTIONS OF FIRE EXTINGUISHING ARRANGEMENTS
As previously advised both the Paris and Tokyo Memorandums of Understanding (MoU) on Port State Control will launch a joint Concentrated Inspection Regime commencing 1 September 2012 and ending on 30 November 2012, with the purpose of verifying compliance with SOLAS requirements on fire protection, detection and extinguishing arrangements.
INTERNATIONAL HYDROGRAPHIC OFFICE SURVEY OF USERS AHEAD OF SWITCH IN STANDARD OF ELECTRONIC CHARTS
The International Hydrographic Office (IHO) is conducting a user survey ahead of the introduction of S-101, which is the IHO future product specification for electronic charts. IHO advises that: ‘While S-101 will be similar to S-57 in that it is a transfer mechanism for nautical chart data, there are significant differences in its content and structure such that a review and the identification of any potential impacts to the user community during the S-57 to S-101 transition period is essential.’ Six questionnaires have been developed to encourage feedback from stakeholders.
A few ship owners lucky enough to have handy size vessels open for prompt employment out of Europe this week were positively swinging from the rafters with joy with a large number of fertilizer cargoes “seeking a home” and not too many suitable ships available. Rates quoted were $20,000 per day from the Baltic Sea to the Far East, and about $5,000 per day into the South Atlantic. Unfortunately, in the big picture it was pretty much steady as she goes and the Baltic Dry Index closed on 1121 points on Thursday, compared to 1138 points last week and 934 points the week before.
Cape Size Panamax Supramax
Index 1352 1187 1294
One week ago 1455 1090 1293
Spot time charter $6,500/day $9,500/day $13,500/day
One week ago $7,600/day $8,700/day $13,500/day
The Baltic Exchange’s benchmark for secondhand Capesize prices this week collapsed to the lowest level since price assessments began in 2003. The index price for a 5 year old vessel dropped to only $33.1m. The index reached its highest point of $153.8m in July 2008 just before the market collapse. Despite a modest rise in Capesize rates in recent weeks, returns are still barely covering operating costs and the market continues to be flooded with new tonnage. New build Capesizes are being quoted in China today at around $45m.
VANCOUVER TRANSPORTATION CLUB GOLF TOURNAMENT
Aug 9th - The Vancouver Transportation Club's annual golf tournament will be held at Greenacres. To register see the attached form.
PLIMSOLL CLUB RETURNS TO NAT BAILEY STADIUM
Aug 15th - Join members of the Plimsoll Club for an afternoon game and barbeque at Nat Bailey Stadium. Registrations must be submitted by August 1st to Renae - see the attached flyer.
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.
WORLD MARITIME DAY BANQUET
Sept 27 - SAVE THE DATE for The Mission to Seafarers' 3rd Annual World Maritime Day Banquet will be held on September 27th this year. This year the Banquet will recognize the 50th anniversary of the Canadian Coast Guard and recognize the IMO theme for 2012, 100 years after the Titanic. The Banquet will return to the Royal Vancouver Yacht Club - further details will be circulated shortly.
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 18 COS Liner Committee Meeting @ 10:00
Jul 18 Plimsoll Club Board of Directors Meeting @ 12:00
Jul 19 COS Navigation & Pilotage Committee Meeting @ 10:00
Aug 9 Vancouver Transportation Club Golf Tournament
Aug 15 Plimsoll Club @ Nat Bailey Stadium
Ship of the Week
Typical of today’s Panamax workhorses in the bulk trades, a recent coal loader at Roberts Bank was the bulk carrier KT Birdie
Built 2011 by Sasebo Heavy Industries, Japan
Owned and managed by Kyoei Tanker Co, Japan
LOA 225 m
Beam 32 m
While British Columbia’s three coal export terminals (Westshore, Neptune and Ridley terminals) have all recently made significant investments to increase throughput capacity, U.S. coal exporters are aggressively seeking alternative west coast outlets in order to service Asian demand. There are currently no coal exporting facilities on the U.S. West Coast. However, Washington and Oregon states having proximity to the coal rich states of Wyoming and Montana are seen as the obvious candidates for new terminals. Companies in the Powder River Basin in Montana and Wyoming mine about 500 million tons of coal a year, selling mainly to domestic utilities that increasingly are turning to cleaner, low cost, natural gas. Producers are therefore keen to ship to China, where demand for all forms of energy continues to grow.
Pacific North West – proposed coal export terminals
In November 2010, Millennium Bulk Terminals, a unit of Australian based Ambre Energy, purchased the site of the former Alcoa aluminum smelter in Longview Wa. where the company initially sought to invest some $100 million on development of a coal terminal. Despite local approval for the terminal, a campaign for rejection was fought by a coalition of environmental groups, including Climate Solutions, Earthjustice, the Sierra Club and the Washington Environmental Council.
However, motivated by firm prices and continuing strong demand for the product, there are five other proposed coal export terminals including SSA Marine’s project at Cherry Point Wa, Rail America’s proposal for Grays Harbor and Mitsui’s proposal for Coos Bay totaling an accumulated $2 billion of investments. Faced with a clamour of opposition, the U.S. Environmental Protection Agency (EPA) has commissioned the Army Corps of Engineers to review all plans for new west coast coal terminals. Undeterred, proponents of the original Longview proposal have submitted plans for a much expanded $600 million terminal to be co-owned by Ambre Energy and Arch Coal which would potentially export 44 million tons per year.
Even if Asian demand for coal is sustained, project opponents argue that many trade uncertainties including increased competition from South America when the widening of the Panama Canal is complete in 2015 could render new terminals unnecessary. The arrival of a new class of Panamax vessel will arguably be the catalyst for a whole new world of trade logistics – coal included.
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