COS News – Week ending 17 May2013
Issue No. 260

 

PMV NAMED TO CANADA’S “GREEN 30”

Port Metro Vancouver has been named to the 2012 “Green 30” list of Canadian organizations whose employees are most positive about their record on environmental stewardship. The list, compiled by Aon Hewitt, is based on employee opinion data collected as part of the annual Best Employers in Canada study and Best Small and Medium Employers study. Over 190,000 employees and 2,500 leaders in 280 organizations participated in the 2013 edition of these studies.

 

BUSINESS OF SHIPPING JUNE 6 - LAYTIME AND LETTERS OF INDEMNITY
(MORNING SESSION)

          

Messrs Jekyll and Swanson are itching to educate and entertain you for a couple of hours on June 6 – this is a non charge event sponsored jointly by the Institute of Chartered Shipbrokers and the Chamber of Shipping.  

KINDER MORGAN TRANSMOUNTAIN TOLL STRUCTURE APPROVED

 

Kinder Morgan this week received a decision from the National Energy Board (NEB) regarding its application for approval of the contract terms and toll structure that would be implemented on the company’s proposed Trans Mountain Expansion Project. The Toll Application was filed in June 2012 and the decision comes after a seven-day public hearing held in February 2013.  The Toll Application decision document can be found on the NEB website.

The following statement was released from Ian Anderson, President, Kinder Morgan Canada on Thursday:

“Today the National Energy Board approved the commercial aspects of the project. The decision reinforces the market support for our expansion plans and it provides us the necessary economic certainty to proceed.  As we continue the process, we look forward working with the new BC government and will remain committed to listening to questions and concerns as we develop our application to file with the NEB later this year.”

 

PM SPEAKS ON KEYSTONE XL IN NEW YORK

 

In an address to the Council on Foreign Relations in New York yesterday, the Prime Minister was unequivocal in stating that “the Keystone XL pipeline absolutely needs to go ahead because it will create jobs and bring energy security to the United States”. He went on to remind his audience that construction of the 1,800-kilometre pipeline will create 40,000 jobs and bring enough oil to reduce American dependence on offshore oil by 40%. Addressing GHG emissions, the PM dismissed concerns over the long-term environmental impact of expanding oil sands production by stating that GHG emissions from the oil sands are “almost nothing globally.” He added that the keys to combating climate change are mandatory emission reduction commitments from all the world’s major polluters, including China, and technology development.

 

SQUAMISH PROFILES OF EXCELLENCE

 

Squamish Terminals is prominently features in a new publication named “Squamish Profiles of Excellence”.

TALL SHIPS CHALLENGE 2013

 

Whilst perhaps a little late for the War of 1812 centenary, the Tall Ships Challenge, Great Lakes  2013 series will be spread across Canada and the U.S. in the Great Lakes. Events will include 25 participating Tall Ships and 22 port calls. For the schedule see http://www.sailtraining.org/tallships/2013greatlakes/  The Tall Ships Challenge Race is a series of sailing races, cruises, crew rallies and maritime festivals organized by Tall Ships America featuring traditionally-rigged sailing vessels from Canada, the US and other countries crewed by civilians or cadets ages 13 - 25 who are engaged in sail training programs under the supervision professional crewmembers.

 

KINDER MORGAN ABANDONS PORT OF ST. HELENS COAL EXPORT PROJECT

 

Kinder Morgan last week announced that it will not proceed with plans to build a coal export terminal at the Port of St. Helens, Westward Industrial Park, on the Columbia River but will rather consider other Pacific Northwest options. It was further emphasized that the company decided not to seek permits in the face of community and regional opposition to coal exports, but because of site logistics. The proposed terminal was estimated to require $150 to $200 million in capital investment for construction and development according to Kinder Morgan. It was one of six recently proposed coal export projects, only three of which – Gateway Pacific Terminal, planned for Cherry Point, Washington, Millennium Bulk Terminal, planned for Longview, Washington, and a planned Port of Morrow facility near Boardman, Oregon, are all still active, if on life support.

 

WEEKEND CLOSURE OF ELEVATOR ROAD

Fraser Surrey Docks has advised that Elevator Road at River Road will be closed over the May long weekend due to the South Fraser Perimeter Road construction.    Drivers wishing to access properties north and west of River Road, on Elevator Road, Gunderson Road, Alaska Way, and Robson Road will be detoured via Grace Road to Scott Road and Old Yale, continuing to Robson Road via Timberland Road.  Please refer to Advisories on www.sfprconstruction.ca for more information.

Anticipated Start Date: Friday, May 17, 2013, at approximately 7:00 pm

Scheduled Completion Date: Tuesday, May 21, 2013, at approximately 5:00 am

Period of Traffic Impact: 24-hour basis

ROCKY POINT NOW HOME TO PCT PERFORMANCE STAGE

Pacific Coast Terminals has partnered with the City of Port Moody to establish its new PCT Performance Stage at Rocky Point Park.  PCT has committed $35,000 over the next ten years to support the new outdoor bandshell which will be used by local bands and music groups during the summer months.

The public is invited to Rocky Point Park for the kick-off of the seventh season of the Pacific Coast Terminals Summer Sunday Concert Series at 2pm on July 7^th.  For more information visit: www.summersundays.ca.

Government News

CANADA TAKES ARCTIC COUNCIL CHAIR

 

Canada assumed the Chair of the eight nation Arctic Council on Wednesday this week for a two year term at a time when the country is being encouraged to significantly improve Arctic marine and aviation infrastructure in line with that of other Arctic nations. Canada last chaired the council at its inaugural meeting in 1998, when the forum promised to promote co-operation, especially on sustainable development and environmental protection. Two years ago, council members also signed an agreement to work more closely together on Arctic air and sea search and rescue. Ottawa has listed responsible Arctic resource development and safe shipping among its top priorities as Arctic Council chair even though only around 10% of Canadian Arctic waters are mapped to modern international hydrographic standards.

Canada’s nominee for Chairmanship of the Council was Nunavut's Ms. Leona Aglukkaq. Ms. Aglukkaq, who is also Canada’s health and northern development minister, took over the chairmanship from Sweden’s Foreign Minister Carl Bildt during a ceremony in Kiruna, Sweden (picture above). Of some significance, China, India, South Korea, Singapore and Italy were all this week granted permanent “observer status” on the Council, however this was denied to the European Union on the insistence of Canada, seemingly in retribution for the EU’s continuing ban on seal products. The Council’s exclusive club of permanent members are Canada, Denmark, Finland, Iceland, Norway, Sweden, Russia and the United States.

CANADA AND US REPORT PROGRESS ON ENTRY/EXIT INITIATIVE

Canada Border Services Agency (CBSA) and the US Department of Homeland Security (DHS) released a joint report on the findings of Phase I of the Entry/Exit Initiative. The report demonstrates progress in establishing a coordinated Entry/Exit information system that enhances border security.  Phase I tested the concept of an Entry/Exit system for both countries through the exchange of information, such that a record of entry into one country becomes a record of exit from the other.

International News

MEPC 65 COMPLETES A BUSY WEEK IN LONDON

      

The IMO’s Marine Environmental Protection Committee’s 65^th meeting ended in London today after what seems to have been a less than productive week of business. This was the last meeting to be held under the popular Chairmanship of Mr Andreas Chrysostomou of Cyprus had decided to step down. Former Vice-Chair Mr. Arsenio Dominguez of Panama (above centre) a naval architect, was elected in succession with Dr. Naomi Parker of New Zealand (above right) a marine biologist, being nominated by Panama and seconded by Canada as the new Vice-Chair.

The issue of GHG reduction was once again at the forefront of discussion with the US presenting a revised and somewhat simplified proposal to that presented at MEPC 64 in a continuing effort to break the political deadlock. Under the revised proposal, there would be a two year data collection period to obtain information on typical ship energy consumption. A second stage would be five-year 'pilot phase' under which ships would be evaluated against the applicable standards agreed after the first phase, but they would not be initially mandatory. It is expected that this phase would lead to a number of adjustments prior to the final phase, where the attained efficiency standards would become mandatory. If successful, it was suggested that shipping could well avoid the implementation of complex Market Based Measures.

On the ballast water front, three more ballast water management systems (BWMS) were granted final approval, namely the AQUARIUS® EC BWMS proposed by the Netherlands, the EcoGuardianTM BWMS proposed by Korea, and the OceanDoctor BWMS proposed by China. To date, a total of 33 BWMS have received been type approval (without guarantee).

The meeting also agreed to work on a draft Assembly resolution recommending a relaxed enforcement schedule for Ballast Water Management compliance allowing for ships constructed before the eventual entry into force of the Convention not being required to comply with regulations which set standards for concentrations of living organisms in ballast water discharges until at least their first special survey after the date of the entry into force. However, the proposal was heavily criticized by the World Shipping Council (WSC) whose delegate commented that "despite numerous "type approvals" of ballast water treatment systems, we frankly do not know which of these systems will reliably meet the IMO standard. During heated exchanges this week, the IMO was at one point accused of “covering cracks in the convention from hell, given the problems it has created for the industry”

                 *** Mr. Andreas Chrysostomou has accepted an invitation to speak at the Green Marine conference here in Vancouver on May 30-31.

 

FIRST TRIPLE E, MAERSK MC-KINNEY MOLLER, CLOSE TO COMPLETION

Whilst not officially announced, it is widely known that the first of Maersk’s triple E class 18,000 TEU container ships is to be christened Maersk Mc-Kinney Moller.

        

Mr. Maersk Mc-Kinney Moller (1913-2012) is remembered in Denmark as one of the country’s most distinguished industrialists and generous philanthropists. He took his first management position at A.P. Moller in 1938 and became CEO and chairman of the company on his father's death in 1965. Although he stood down as CEO in 1993, he remained as chairman of the board until 2003. Even at the age of 98 he was reputedly in the habit of walking up the stairs to his sixth floor office at the company’s Copenhagen headquarters.

  

Delivery schedule from Daewoo Shipbuilding and Marine Engineering, June 28 2013
Initial load port: Busan, July 14
LOA 399.25m
Beam 59m (23 units across)
Scantling draft 16m
Deadweight 194,397 MT
Capacity: 18,270 TEU (including 600 reefers)
Design speed: 23 knots
Main engines: Two 8S80 MEC9.2, MAN Diesel built under license, producing 29,680 kW at 73.1 rpm and 26,710 kW at 70.6rpm. The engines are optimised to be as fuel-efficient as possible at a larger range of speeds
Propellers: Unique four-blade design.
See http://www.worldslargestship.com/

EUROPEANS HAVE LEADING EDGE IN LNG PROPULSION

     

The BBC ran a feature last weekend on the rapid development of LNG powered vessels in the Baltic Sea ferry sector, see http://www.bbc.co.uk/go/em/fr/-/news/world-europe-22457141 The next of these will be the first of Fjord Line’s two new cruise ferries which was launched at the Stocznia Gdansk shipyard in Poland last month (above left). To be christened Stavangerfjord, she  is now undergoing fitting out in Norway at the Bergen Group Fosen shipyard. Steel work has now started on the sister ship to be named Bergensfjord. The new ships will be 170 meters long and will each accommodate 1,500 passengers, offer 306 cabins and have space for 600 cars, trucks and cargo. An artist’s impression of the two final products is above right.

It was also announced this week that Davie Shipyards has finally signed on the dotted line to build a pair of hybrid LNG ferries for Societe des Traversiers du Quebec (STQ). The province of Quebec has ordered the LOA 62 meter ferries for service on the St. Lawrence with delivery set for end 2015.

 

BANGLADESH – THE NEXT PIRACY HOT SPOT?

     

There were new warnings this week from naval commanders that Somali pirates have not done with us yet. However, there was even worse news from risk consultants (those who know more than us) that Bangladeshi pirates will be the next group to plague us. Historically, the Bay of Bengal has been a hot spot for Al Capone style smash and grab type robberies but in the full knowledge of the overnight passage to the Forbes rich list being achieved by their brothers in the Gulf of Aden and Gulf of Guinea, it seems that a new armada of Johnny Depps is in training.

 

Market Update
Capesizes took the biggest hit as there were losses across the board on the Baltic Dry Index this week which closed on Thursday on 850 points compared to 889 points last week and 873 points the week previously.

                                          Cape Size       Panamax          Supramax

Index                                    1334                 951                    853
Last week                             1398                 995                    869
Spot time charter              $5,300/day       $7,600/day       $8,900/day
One week ago                  $6,200/day       $7,900/day       $9,100/day

Containers: Carriers are attempting to put a tourniquet on the bloodletting in the Asia to Europe trade lane with General Rate Increases (GRI) of up to $1000 per TEU effective July 1 having been announced.. However, few are expecting such an increase to materialize since Asia-Europe westbound and Transpacific eastbound have seen spot rates plummet by 50% and 22% respectively since the beginning of April, according to Drewry’s indexes.

 

Upcoming Events

COUNCIL OF MARINE CARRIERS TOWBOAT CONFERENCE 2013

May 23 – The 2013 Conference will be held from May 23^rd through to the 25^th at the Victoria Conference Centre at The Fairmont Express Hotel.  For more information visit: http://www.comc.cc/conf/20Conf.html.

GREEN TECH 2013 ANNUAL CONFERENCE

May 29-31– Save the date for Green Marine's annual conference on green technologies and innovation for marine transportation in Vancouver for the first time with the IMO's environmental chair as keynote speaker.

PORT METRO VANCOUVER ANNUAL GENERAL MEETING

Jun 4 – The Annual General Meeting will be held in the Vancouver Convention Centre West, Room 223 at 3pm.

QUORUM PRESENTATION ON GRAIN MONITORING

Jun 4 – Mark Hemmes, President of Quorum Corporation will provide a presentation on their grain sector monitoring program conducted on behalf of Transport Canada and Agriculture Canada.

BUSINESS OF SHIPPING COURSE

Jun 6 – COS is now accepting registration for the half-day course on Laytime and Letters of Indemnity scheduled for June 6^th with guest speakers Mike Jekyll and Peter Swanson.  See attached for information.

DAY OF THE SEAFARER BANQUET      

Jun 26 – Join the Mission to Seafarers fundraising banquet scheduled for June 26^th at the Stanley Park Pavilion in recognition of the IMO’s Day of the Seafarer.  Commander Jason Boyd of the Royal Canadian Navy, who will be evening’s guest speaker, has just completed a tour of duty on the HMCS Regina in the Arabian Sea. See the attached form to purchase tickets or to sponsor the event.

May 22             COS Liner Committee Meeting @ 10:00
May 23             VMAA Board Meeting
May 23             Council of Marine Carriers Towboat Conference 2013
May 29             WMCC PACMAR / NANS Meeting
May 29             Green Tech 2013 Annual Conference
May 30             Transportation of Dangerous Goods Course 
Jun 3                BC Marine Vessel Air Quality Work Group Meeting @ 09:00
Jun 4                Quorum Presentation on Grain Monitoring
Jun 4                PMV Annual General Meeting @ 15:00
Jun 5                COS Board of Directors Meeting @ 11:30
Jun 6                Business of Shipping – Half Day Session
Jun 25              Day of the Seafarer
Jun 26              Mission to Seafarers’ Seafarer Banquet

 

Ship of the Week

 

                  Vitus Bering – Icebreaking Platform Supply Vessel

Russian President Vladimir Putin was the guest of honour for the naming ceremony of the advanced icebreaking platform supply vessel Vitus Bering in January this year. She was specifically built to service the Sakhalin-1 oil platforms at the Arkutun-Dagi field in the Sea of Okhotsk. President Putin witnessed the signing of a master cooperation agreement between Sovcomflot and United Shipbuilding Corporation to build supply vessels of this class and an agreement between Gazprom and Novatek to create a joint venture to produce LNG on the Yamal Peninsula.

Built by Arctech Helsinki Shipyard 2012
LOA 99.9 m
Beam 22.1 m
GRT 7,100 tons
DWT 3,950 MT
Speed 15 knots in open water
Propulsion: four Wartsila diesels – 18,000 KW output
Class 100A1 icebreaker
Accomodatiion for 50 persons including 22 crew
Sister ship: Aleksey Chirikov

            

The President’s speech went as follows:

“It gives me great pleasure to be present at the naming ceremony for the Vitus Bering icebreaker, a new vessel in the Russian merchant fleet. It is noteworthy that the vessel will operate in the Far East, where Vitus Bering and his crew explored the northern latitudes and the vast expanses of the Pacific Ocean as they carried out the plans of Peter the Great.

This is one of the most advanced ships in the world. Today Russia has the world’s largest nuclear-powered icebreaker fleet and we will continue our efforts to develop the full range of special vessels, including those working in such harsh conditions as the ones this ship will operate in. I want to reiterate that this is one of the most advanced ships in the world, capable of operating in the ice up to 1.7 metres thick. It was built by Russian shipbuilders jointly with Finnish partners, and I want to express my gratitude to our Finnish colleagues.

It is significant that 90% of the work was done by Russian companies. We must continue with the same momentum in the future. I repeat, we have every chance to successfully develop the entire range of special, highly advanced vessels. I sincerely wish the crew every success and congratulate you on this momentous event”.

      

Control of Sakhalin Island has long been disputed between Russia and Japan, with the first Russian explorers and traders arriving in the 17th century. Japan occupied southern Sakhalin Island after the 1905 Russo-Japanese War, but Russia took the island back in 1945. Japan and Russia still have not reached an agreement to officially end World War II but hostilities are thankfully limited to patrol boats occasionally firing warning shots over the heads of unsuspecting Japanese fishermen intruding into Russian waters

Vitus Jonassen Bering (the handsome fellow above right), also known as Ivan Ivanovich Bering (1681-1741) was a Danish explorer who became an officer in the Russian Navy in 1703. He is known for his two explorations of the north-eastern coast of the Asian continent and from the the west coast of North America. The Bering Strait, the Bering Sea, Bering Island, Bering Glacier and the Bering Land Bridge were all (posthumously) named in his honour.

COS News – Week ending 10 May 2013
Issue No. 259

MINISTER LEBEL ANNOUNCES ECA FORMAL IMPLEMENTATION

 

Minister for Transportation, Infrastructure and Communities, The Honourable Denis Lebel this week announced Canada’s formal implementation of the Emissions Control Area (ECA).

For the news release and backgrounder please see: http://www.tc.gc.ca/eng/mediaroom/releases-2013-h055e-7161.html

For the Regulations, please see: http://canadagazette.gc.ca/rp-pr/p2/2013/2013-05-08/pdf/g2-14710.pdf (number SOR/2013-68)

ECA implementation is immediate with a more complete information package scheduled to be made available by Transport Canada next week. In the meantime, Transport Canada has advised of the following interim procedure if compliant fuel is not available:

Vessels currently at sea arriving in Canadian ports with non-compliant fuel should be advised to obtain compliant fuel at the earliest opportunity or if compliant fuel is unavailable, submit a report to: 

• For the Pacific Coast: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
• For the East Coast and Quebec: FAX number (902) 426-6657 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it

The report should include the following information:

1. The vessel’s name and, if applicable, the vessel’s IMO ship identification number
2. The vessel’s port of origin and port of destination
3. Details of the attempts that were made to obtain fuel oil that meets the ECA requirements, including the names and addresses of the fuel oil suppliers contacted, and the dates on which contact was made
4. The sulphur content of the fuel oil that was obtained
5. The measures that will be taken to obtain, as soon as feasible, fuel oil that meets ECA requirements
    

B G GROUP FILES PRINCE RUPERT PROJECT DESCRIPTION

         

        BG Group project Prince Rupert

The BG Group this week filed plans with the Canadian Environmental Assessment Agency for its LNG project in Prince Rupert that would consume the equivalent to all of the province’s current production of natural gas and almost all the energy generated by BC Hydro’s proposed Site C dam to produce it. The project is based on development of a site on Ridley Island capable of producing 21 million tonnes of LNG a year. Phase 1 would involve two seven million tons a year processing units (trains) to be completed by 2021.  The second phase, consisting of one similar-sized train, would come on stream at a later stage depending on market conditions. The initial marine terminal will include one trestle and one ship loading berth with provision for a second berth to be added.  

HMCS ST JOHN’S SUFFERS OIL SPILL IN HALIFAX

The Canadian frigate HMCS St John’s suffered an oil spill this week when transferring bunkers between tanks whilst at anchor in Dartmouth Cove, Halifax. Between 8,000 and 10,000 litres are estimated to have been lost. Some 150 naval personnel assisted in the clean-up which is expected to be completed by the end of today.  

STANDING COMMITTEE ON NATURAL RESOURCES

On May 2^nd Stephen testified before the Standing Committee on Natural Resources on Market Diversification in the Energy Sector by video conference last week. The audio link can be found at the following address: www.parl.gc.ca/RNNR

COLUMBIA GRAIN THE LATEST TO LOCK OUT ILWU

Strife between the Columbia River grain terminals and the ILWU shows no sign of abating with Marubeni owned Columbia Grain the latest to lock out its ILWU work force who were alleged to be “purposefully engaging in a work slowdown by engaging in inside game tactics, including slowdowns, work-to-rule, and demands for repeated inspections of the same equipment”. United Grain Corp., which operates an export terminal at the Port of Vancouver, Washington, indefinitely locked out its union staff in February this year for “sabotaging equipment in retaliation for contentious ongoing contract negotiations”. The union has denied the allegations in both cases.

CALIFORNIA PORTS CONSIDER AUTOMATIC ANNUAL CPI INCREASES

 

A proposal to implement annual general rate increases (GRI) based on CPI is being considered by the Los Angeles Harbor Commission. Terminal operators and ocean carriers are predictably less than enthusiastic but if LA goes ahead it is expected that both Long Beach and Oakland will follow suit.  Whilst ocean carriers are continually scrutinized for anti-competitive practices, the three California container ports operate with antitrust immunity under an umbrella organization known as the California Association of Port Authorities. The Pacific Merchant Shipping Association (PMSA), which represents shipping lines and terminal operators on the West Coast, the Los Angeles Customs Brokers and Forwarders Association and the ILWU have all spoken in opposition to an automatic annual GRI with PMSA taking the view that “port charges should be determined by port needs and the wider competitive environment”.

JUDGE ACCUSES USCG OF ABUSE OF POWER

A US District judge this week accused the US Coast Guard (USCG) of an abuse of power after refusing to release a Panamax bulk carrier detained in Newport News in mid-April held over a whistle blower’s oily water separator bypass allegations. In detaining the Antonis G. Pappadakis, the judge accused the USCG of “acting in an arbitrary and capricious manner that caused irreparable damage to the owner of the vessel and repugnant to the Constitution”.  The USCG has demanded a $3m surety bond and required seven crew members to be left behind for legal proceedings before it would allow the vessel to leave the port.  However, the owner sued to challenge the bond, leading to the case being heard this week. The outcome remains uncertain.

DOUBLE OLYMPIAN YACHTSMAN KILLED

    

The British double-Olympic Gold medal sailor Andrew “Bart” Simpson was sadly killed yesterday in San Francisco Bay when the Artemis Racing’s AC72 catamaran which in which he was part of an 11 person crew capsized during training ahead of this summer’s America’s Cup. He was apparently trapped beneath the boat and drowned before assistance arrived. Opening ceremonies for the 2013 America’s Cup are scheduled for July 4 to be followed by 21 days of racing in San Francisco Bay. The wise punters are said to have their money Emirates Team New Zealand (above right) to take the cup.

  

CP’S HUNTER HARRISON INDUCTED INTO INTERNATIONAL MARITIME HALL OF FAME

Canadian Pacific's Chief Executive Officer, E. Hunter Harrison, has been inducted into the Maritime Association of Port of New York & New Jersey's International Maritime Hall of Fame.  Mr. Harrison, recognized for his leadership in intermodal transportation, customer services and logistics, and for his promotion of efficient, reliable intermodal services for CP, received the honor at the 20th Annual International Maritime Hall of Fame award gala in New York City among members of the international maritime world industry.

Government News

HMCS TORONTO RECEIVES RECOGNITION FOR DISRPUTION OF NARCOTICS SHIPMENT

The Honourable Peter MacKay, Minister of National Defence, formally recognized the crew of Her Majesty’s Canadian Ship HMCS Toronto who successfully disrupted another significant narcotics shipment in the Indian Ocean.  The seizure occurred on May 6th, following a search of a vessel by the ship’s naval boarding team.

During the inspection of the vessel, HMCS Toronto’s naval boarding team recovered approximately 315 kilograms of heroin and a small amount of hashish. The narcotics will be destroyed.  This is the second major drug interdiction for HMCS Toronto and her crew. On March 29, 2013, a massive narcotics shipment in the Indian Ocean was disrupted, when her naval boarding team recovered approximately 500 kilograms of heroin.  The HMCS Toronto is currently deployed on Operation Artemis.

NATIONAL RESEARCH COUNCIL TO REFOCUS

The National Research Council of Canada (NRC) has transformed into an industry-focused research and technology organization. The refocused NRC will work with Canadian industries to bridge technology gaps, helping build a more innovative Canadian economy.  The refocused NRC will support Canadian industries by investing in large-scale research projects that are directed by and for Canadian business. It will also develop international networks to ensure timely access to primary research and will open the doors to world class scientific infrastructure, technical expertise and people.

International News

ICS BRIEF AHEAD OF MEPC 65

The International Chamber of Shipping has issued a briefing paper ahead of the upcoming meeting of the IMO’s Marine Environmental Protection Committee (MEPC 65) which takes place in London from May 13-17.

FATAL ACCIDENT IN GENOA

      

Seven people are now reported to have died, three injured and two are still missing after the 165 foot high main control tower for the port of Genoa was demolished by a ro-ro/containership this week. The MV Jolly Nero was leaving Genoa for Naples at the time of the incident and it is believed that as many as 14 people were in the control tower at the time, more than usual as staff were changing shift. Some fortunate survivors were plucked from below tons of rubble after the tower’s collapse. Initial reports indicate that the vessel which is insured by the UK P&I Club, lost engine power whilst manoeuvring and the vessel’s stern made contact with the control tower which was unusually positioned on the very edge of an adjacent dock.

UNESCO CLAIMS BARRIER REEF AT RISK

     

UNESCO has issued a new warning that the Great Barrier Reef continues to be at risk because of coastal development and water quality. The agency said little had been done to address concerns raised with the Government of Australia last year hence the reef should be considered for inscription on the list of world heritage sites in danger in 2014.  In response, the government claims to have had taken positive steps to increase protection of the reef, including spending $200 million on the Reef Rescue water quality project. The WWF dramatically commented that UNESCO has "put Australia in the sin bin".

Whilst not telling us much which is new, the BBC ran a report last weekend on a study undertaken by the University of Bristol wherein scientists have developed what is claimed to be the first global model that analyses the routes taken by marine invasive species. The study is based on the movement of ships around the world to identify the hot spots where aquatic aliens might thrive (above right). Key hotspots for invasion are listed as Singapore, Hong Kong, and the Panama and Suez Canals. Cooler climates are considered to be less likely at risk.

CHINA SHIPPING ORDERS THE WORLD’S LARGEST CONTAINER VESSELS

As we touched on last week, it is now confirmed that China Shipping has ordered five 18,400 TEU container vessels from Hyundai Heavy Industries. The $136.5 million per vessel contract will see the company operating the world’s largest container ships when they first enter service in late 2014.  Dimensions of the vessels are 400m in length, 58.6m in beam being very similar to the 20 Triple E Class vessels ordered by Maersk from Daewoo (DSME).  China Shipping plans to operate the new vessels in the Asia-Europe trade in a joint service with United Arab Shipping Company (UASC). In terms of automation, they will feature a main engine that can automatically control fuel consumption to suit sailing speed and sea conditions and a ballast treatment system, which can process up to 3,000 cbm per hour.

Separately, China Shipping and Mitsui OSK Lines have signed a long-discussed order for six 174,000 cu m liquefied natural gas carriers to be built at Hudong-Zhonghua Shipyard for a contact price of $1.26 billion, or $210m per vessel. Under the terms of the deal, China Energy Shipping Investment, a joint venture between China Shipping LNG and Sinopec-subsidiary Sinopec Kantons, will own 80% of the vessels, while MOL will own 20%.

FINCANTIERI DEBUTS NEW DRILLSHIP DESIGN

 

A new ultra-deepwater drillship design was rolled out this week by Italy’s Fincantieri Group at the Offshore Technology Conference in Houston.  Developed by Fincantieri in cooperation with Aker Solutions the ship 208 m LOA and 40m beam ship will be capable of drilling to a depth of up to 15,000 meters (50,000 feet). The design also incorporates a centralized drain treatment system to store hazardous fluids and provision for a scrubber to meet IMO MARPOL Annex VI air emissions standards. There is accommodation for up to 210 persons in 63 single and 74 double cabins with special attention being paid to comfort, ergonomics, noise and vibration control. Fincantieri’s venture into the innovative offshore segment follows the group’s January acquisition of Norway-based STX OSV (now called VARD Shipyard) from STX Europe in January this year.

V.SHIPS TO MANAGE TITANIC PROJECT

 

Mr. Clive Palmer, the Australian billionaire behind the project to build a new Titanic, has appointed V.Ships Leisure, the cruise division of V.Ships Ship Management, as the official ship manager of his Blue Star Line’s Titanic II project. V.Ships Leisure provides deck, engine and hotel management service to more than 120 cruise ships, ferries and superyachts. Titanic II is scheduled to be built at Chinese state-owned CSC Jinling Shipyard and is to be launched in 2016.

HONG KONG STRIKE SETTLED – FOR NOW

 

The port of Hong Kong is returning to normal after suffering delays from a 40 day strike by around 450 port workers employed by contractors hired by HIT. After initially demanding a pay raise of 20%, a settlement of around 10% was finally arrived at plus a written promise to improve working conditions. The strike was one of the most high profile disputes to hit Hong Kong for many years.

SHANGHAI “TO TRY HARDER”

With its aim of becoming a world leading maritime cluster still many years away, the port of Shanghai has acknowledged the need to redefine itself since China’s economic reforms over the past two decades have a long way to go given that the country ranks only 91st in the World Bank’s 2012 ease of doing business index.  The competing maritime clusters of Singapore and Hong Kong are the top two and even the UK, despite no longer being a strong base for ship owners, saw maritime services generate 262,700 jobs and £13.8billion ($21.5bn) in 2011, according to Oxford Economics.

WEST AFRICAN PIRACY LATEST

Both the Greek reefer ship Frio Athens and the container ship CMA-CGM Africa Four were fired upon off West Africa last weekend. Both ships avoided capture by increasing speed and evasive manoeuvring. Nine crew members have been seized from two ships in the area in the last two weeks as pirate activity shows no signs of abating despite the many fine words from regional governments.

 

Market Update  
No big changes on the Baltic Dry Index this week which closed on Thursday on 889 points compared to 873 points last week and 872 points the week previously.

                                              Cape Size       Panamax        Supramax

Index                                        1398                995                  869    
Last week                                 1322              1010                  880
Spot time charter                $6,200/day       $7,900/day       $9,100/day
One week ago                    $5,400/day       $8,100/day       $9,200/day

Containers:  Perhaps in sympathy with the rates blood bath currently being experienced in Asia-Europe services, Transpacific trades are now at the lowest point for more than a year. Drewry’s latest Hong Kong-Los Angeles container benchmark rate is down to $2,032 per loaded FEU, about 12% lower than in May 2012. Approximately 450,000 TEU of redundant vessel capacity is expected to be scrapped this year as larger vessels assume an ever larger share of main line trades.

Upcoming Events

PLIMSOLL CLUB GOLF TOURNAMENT

May 14 – The Plimsoll Club will host its annual golf tournament at the University Golf Club on Tuesday, May 14, 2013 – shotgun start at 13:15 hrs. 

VMAA PRESENTS FIO VS. OTHER TERMS OF CARRIAGE

May 16 – The Vancouver Maritime Arbitrators Association’s next lunch seminar entitled, FIO vs. Other Terms of Carriage will feature guest speakers Mike McLeod, Brian Berg and Doug Schmitt.  For more information or to register see the attached form.

COUNCIL OF MARINE CARRIERS TOWBOAT CONFERENCE 2013

May 23 – The 2013 Conference will be held from May 23^rd through to the 25^th at the Victoria Conference Centre at The Fairmont Express Hotel.  For more information visit: http://www.comc.cc/conf/20Conf.html.

GREEN TECH 2013 ANNUAL CONFERENCE

May 29-31– Save the date for Green Marine's annual conference on green technologies and innovation for marine transportation in Vancouver for the first time with the IMO's environmental chair as keynote speaker.

PORT METRO VANCOUVER ANNUAL GENERAL MEETING

Jun 4 – The Annual General Meeting will be held in the Vancouver Convention Centre West, Room 223 at 3pm.

BUSINESS OF SHIPPING COURSE

Jun 6 – COS is now accepting registration for the half-day course on Laytime and Letters of Indemnity scheduled for June 6^th with guest speakers Mike Jekyll and Peter Swanson.  See attached for information.

DAY OF THE SEAFARER BANQUET      

Jun 26 – Join the Mission to Seafarers fundraising banquet scheduled for June 26^th at the Stanley Park Pavilion in recognition of the IMO’s Day of the Seafarer.  Commander Jason Boyd of the Royal Canadian Navy, who will be evening’s guest speaker, has just completed a tour of duty on the HMCS Regina in the Arabian Sea. See the attached form to purchase tickets or to sponsor the event.

May 14             Plimsoll Club Golf Tournament
May 16             VMAA Lunch Seminar
May 17             COS Navigation & Pilotage Committee
May 17             WMCC Annual General Meeting
May 22             COS Liner Committee Meeting @ 10:00
May 23             VMAA Board Meeting
May 23             Council of Marine Carriers Towboat Conference 2013
May 29             WMCC PACMAR / NANS Meeting
May 29             Green Tech 2013 Annual Conference
May 30             Transportation of Dangerous Goods Course 
Jun 3                BC Marine Vessel Air Quality Work Group Meeting @ 09:00
Jun 4                PMV Annual General Meeting @ 15:00
Jun 5                COS Board of Directors Meeting @ 11:30
Jun 6                Business of Shipping – Half Day Session
Jun 25              Day of the Seafarer
Jun 26              Mission to Seafarers’ Seafarer Banquet
 

Ship of the Week

 

                                         Rio 2016 – shuttle tanker

The award of the 2014 soccer World Cup to Brazil and the 2016 Summer Olympics to Rio de Janeiro has been unusually taken to heart by Tsakos Energy Navigation (TEN), one of the world’s largest oil movers. The company controls a versatile fleet of modern crude and product tankers two of which are the Suzmax product shuttle tankers Rio 2016 and Brasil 2014, both delivered earlier this year and aptly named to honor the two sporting events – especially in a sports mad country like Brazil, soccer being the first religion.

Built 2013 by Sungdong Shipbuilding, South Korea.
LOA 278.5m
Beam 48.0m
DWT 155,710
Speed 12.7 knots
Long term chartered to the Brazilan energy sector

     

With a fleet of 50 vessels (48 operational and 2 under construction) TEN provides worldwide marine transportation services to state and international oil majors and refineries under long, medium and short-term charters. With an average age of only 6.5 years, the company derives the benefits of operating a very young fleet of vessels comprising 19 crude carriers, 28 product tankers and 2 LNG carriers.  TEN Limited is incorporated in Bermuda, managed out of Athens Greece, and listed in the New York Stock Exchange (NYSE).  Contracted revenues exceed $1.0 billion with an average secured fleet employment of 3.2 years per vessel. The company has just raised $50m from a preferred stock offering in New York which it is believed will help to fund the company’s LNG new builds.

COS News – Week ending 3 May 2013
Issue No. 258

 

EMISSIONS CONTROL AREA – CANADIAN ENFORCEMENT

Transport Canada is expected to announce the implementation of the Emission Control Area on Wednesday next week.

 

REVISED EMAIL FOR 96 HOUR PAIR REPORTS

Transport Canada has requested that the Pre-Arrival Information Reports be directed to a new email address: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  This will provide clients with direct access to TC Marine Security inspectors located at the Marine Security Operations Centre.

 

CHAMBER LAUNCHES NEW WEB SITE – SAFE SHIPPING BC

On May 1^st we launched a new educational website at www.safeshippingbc.ca.  The objective of the site is to answer questions related to the governance, safety and performance of shipping. Please let us have your feedback.  In support of this we have also created a  Facebook page entitled Safe Shipping BC, please feel free to like us.

 

GRIEG STAR CHRISTENS THE MV STAR LINDESNES

 

Grieg Star christened Hull No. 8077 at the Port of Mobile in Alabama.  Grethe Hoyvik, vice president and general manager of Grieg Star, Atlanta, served as sponsor of the ship, and with one elegant swing of the axe, christened the Star Lindesnes. The Star Lindesnes is the third vessel in Grieg Star’s L Class, the newest generation in the company’s highly specialized open-hatch general cargo fleet.  The L Class newbuilding program includes 10 vessels for delivery during 2012-2014, and also includes two new conventional Supramax bulk ships. Grieg Star’s newbuilding investment is at about US$560 million.

 

 

Government News

UPDATE RE CBSA CONVEYANCE ARRIVAL CERTIFICATION MESSAGE

This is to advise air and marine carrier clients that the Canada Border Services Agency (CBSA) will deploy system functionality for the transmission of the Conveyance Arrival Certification Message (CACM) and associated notification transactions under the Advance Commercial Information (ACI) program on June 9, 2013.

The testing environment will continue to be available for air and marine clients who have registered, or have yet to register, for the CACM process to ensure clients’ readiness once systems are deployed.

Carriers or their authorized service provider who have not yet registered with the CBSA’s Electronic Commerce Unit (ECU) to conduct client testing of the new arrival message and notification transactions are strongly encouraged to do so by contacting the ECU at:

Phone

1-888-957-7224 option 1 (calls within Canada and the U.S.) 

1-613-946-0762 (for overseas callers between 08:00 to 17:00 ET)

1-613-946-0763 (for overseas callers between 17:00 to 08:00 ET)

E-mail:    This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Thank you again for your patience in this matter.  If you have questions on eManifest functionality for freight forwarders also being deployed on June 9, 2013, or on air and marine conveyance arrivals, please contact the eManifest Help Desk at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

 

LARGE SHIPMENT OF PRECURSOR CHEMICALS SEIZED BY CBSA

The Canada Border Services Agency (CBSA) announced that officers at the Vancouver Container Examination Facility (CEF) seized over 2,000 litres of precursor chemicals.  On April 19, CBSA officers examined a shipment, declared as soy sauce, from China. Upon further investigation of the 384 pails in the marine container, CBSA officers noticed discrepancies in the load and conducted a full examination of the entire shipment.

During the examination, officers found that the contents of 139 of the 384 pails were not consistent with the declaration. Samples were taken and sent to the CBSA Laboratory for identification. The laboratory results later confirmed that the pails actually contained Hypophosphorous Acid, a precursor chemical used in the production of methamphetamine.

To import Class A precursor chemicals listed in the Controlled Drugs and Substances Act, a Health Canada permit is required. As the importer did not have a permit, and did not declare the chemicals in this shipment, the 139 pails, containing 2,627 litres of Hypophosphorous Acid, were seized with no terms of release.

 

SEARCH AND RESCUE CREWS TRAIN NEAR PRINCE RUPERT

Members of the Royal Canadian Navy and Royal Canadian Air Force joined members of the Canadian Coast Guard (CCG), United States Coast Guard (USCG) and United States Air Force (USAF) for a Search and Rescue Exercise held from April 29 to May 1 near Prince Rupert, British Columbia. The Canada-United States Hecate Strait Search and Rescue Exercise allowed Canadian and American search and rescue crews to practice working together in order to respond to an off-shore vessel in distress.  The challenging and realistic training involved approximately 50 members of the Canadian Armed Forces, 25 CCG members, as well as 30 USCG and 30 USAF personnel. 

The Government of Canada has announced new initiatives to improve search and rescue (SAR) capabilities, including a quadrennial review led by the Minister of National Defence, optimization of search and rescue readiness postures, improved search and rescue asset management system and $16.2 million for the development of satellite-aided search and rescue. 

 

ROYAL CANADIAN NAVY ADOPTS NEW NAVAL ENSIGN

The Honourable Peter MacKay, Minister of National Defence, announced the adoption of a new Canadian Naval Ensign to be worn by Her Majesty’s Canadian Ships, naval vessels, Naval Reserve Divisions, and other designated units starting on Sunday, May 5.   There are now two distinct symbols that signal Canadian nationality onboard Canadian warships and other naval vessels. The first is the Canadian Naval Ensign, which is worn at the masthead while at sea, or at the stern when alongside, moored, or at anchor. The second is the National Flag, also known as the Maple Leaf Flag, which is worn as the Naval Jack at the bow when the ship is alongside, moored, or at anchor. Additionally, while not specifically required by law or maritime custom, Canadian warships have historically displayed a Maple Leaf badge on or near the main ship’s funnel. The change will most importantly distinguish Canadian warships from other Canadian flagged vessels.  It will also promote and strengthen the Canadian naval identity, while underscoring the unique commitment of our men and women at sea who serve as members of the Canadian Armed Forces in Royal Canadian Navy ships and vessels. The new Canadian Naval Ensign will now take rightful prominence as a significant national symbol for years to come.

 

NEW COAST GUARD VESSEL ACCEPTED BY DFO MINISTER ASHFIELD

The Honourable Keith Ashfield, Minister of Fisheries and Oceans and Minister responsible for the Atlantic Gateway, announced the acceptance of the fourth of the Canadian Coast Guard’s new Hero class vessels, the CCGS Constable Carrière. The Hero Class vessels are 43 metres in length with a displacement of 257 tonnes and a top speed of 25 knots.

 

International News

 

ATLANTIC CARTIER SUFFERS FIRE IN HAMBURG

     

The ACL container / ro-ro vessel Atlantic Cartier suffered a major fire in one of her car decks whilst alongside in Hamburg this week. The fire is reported to have enveloped around 70 cars destined for the US.  While tugs were assigned to spray cooling water on the outer hull, around 200 local firemen were engaged in fighting the fire from within the vessel, an operation complicated by fears for the vessel’s stability. By the time the fire was extinguished in the afternoon May 2, some 12 cars were destroyed. As a precaution, several containers with hazardous materials inside were discharged during the firefighting operation. ACL trades exclusively between Europe and the East coasts of Canada and the US.

 

COST OF AUSTRALIAN LNG PROJECTS UNDER THE MICROSCOPE

    

 Australia’s Browse LNG project (left) – a floating replacement is under consideration and Exxon’s proposed Scarborough floating LNG (center)

Runaway labour costs are driving a review of Australia’s LNG export development strategy with more developers looking to follow Shell’s $12 billion Prelude model with their floating liquefaction plant as an alternative to hugely expensive land based developments. ExxonMobil Corp. has announced plans to build a $15 billion floating plant even larger than Prelude which when completed in 2017 would already be the world’s largest floating structure. Having abandoned its Browse landside project (concept picture above), Woodside Petroleum Ltd. is also said to be considering a similar option in addition to the company’s plans to develop the Sunrise floating LNG venture in the Timor Sea.

Meanwhile it has been announced that French energy company GDF Suez will sub-charter the 145,000-cbm GDF Suez Cape Ann (above right) to China National Offshore Oil Corporation (CNOOC) for a five year period to operate as a Floating Storage and Regasification Unit (FRSU) off the port of Nanjiang. The vessel is currently undergoing conversion in Singapore. Global demand for LNG was around 240 million tons last year and this is forecast to rise to 400 million tons a year by 2020.

 

IS THE NEXT SHIPPING CRISIS ALREADY TAKING SHAPE?

   

Despite continuing basement level markets, Capesize new build orders in the first four months of 2013 have already exceeded the total for 2012 with 57 Capesizes ordered to date compared to 33 for the whole of 2012. In the container sector, China Shipping this week disclosed that is in the final stages of negotiations for an order for five 18,000 TEU vessels at a South Korean yard.  Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering are all believed to be in the running. Speculation is that the work hungry yards will come in with bids of around $140 million per vessels compared to the $190 million contracted by Maersk for similar sized high specification vessels in 2011.

 

PROJECT TO RAISE BAYONNE BRIDGE

   

The need to fix the problem of air draft under New York’s 1931 built Bayonne Bridge has long assumed high priority as a U.S. infrastructure project. The 151 foot restriction has for some time impacted access for larger container vessels to service terminals in New York and New Jersey leading to the announcement in 2010 of a “Raise the Roadway” project. The proposal is to raise the bridge by 64 feet to provide for a future air draft of 215 feet. Last week, the Port Authority's Board of Commissioners awarded a $743.3 million contract to undertake the work which will also create 12 foot wide lanes, including a bicycle and pedestrian lane, and install a median divider and shoulders. It has been estimated that the project which will complete in 2016 will generate a $3.3 billion national benefit.

 

IMPATIENCE GROWING WITH HKG STRIKE

 

Mr. Li Ka-Shing, owner of Hong Kong International Terminals has moved to end a four-week strike affecting his terminals by, hiring replacement workers and demanding that protesters vacate his company’s headquarters in the city’s Central District. The replacement workers combined with the return of some strikers to work has cut the waiting time for ships to an average 20-25 hours, compared with about 60 hours when the strike was at its peak. HIT this week claimed to be operating at about 90% of capacity. The Union of Hong Kong Dockers (UHKD) reports that some 530 workers are on strike, including more than 80% of the checkers and lashers in the terminals. Attempts by the Hong Kong government to mediate in the dispute have not been successful

 

KDB TO THE RESCUE OF STX GROUP

The Korean Development Bank (KDB) is poised to rescue the STX Group as a going concern. STX Group has been actively trying to sell assets to reduce its debt burden of around $10bn, much of which matures this year. STX Offshore & Shipbuilding was last month unsuccessful in selling its stake in STX Pan Ocean forcing creditor banks to provide KRW 600bn in emergency loans while a restructuring plan is finalized.  STX OSV has already been sold off to Italy's Fincantieri but the group is said to be also considering a plan to sell STX France and STX Finland to raise around $1.8 billion.

 

ALGOMA PREVAILS IN LONDON OVER CANCELLED NEW BUILDS

 

A London tribunal has concluded that Canada’s Algoma Tankers was legally entitled to walk away from a $91 million contract with  Jiangxi Jiangzhou Union Shipbuilding for three 16,500 DWT products carriers following lengthy delays in construction. The order was placed in 2007, cancelled in 2010 and went to arbitration in 2012. Algoma will now seek to recapture its down payment.

 

SOMALI PIRATES RELEASE ABDUCTED CREW MEMBERS

 

Following 28 months of captivity, Somali pirates have this week released six crew members previously abducted from the Danish general cargo vessel MV Leopard. Pirates attacked the vessel in January 2011 but after failing to take control they kidnapped the six crew members being two Danes and four Filipinos. Their time in captivity was described as “inhuman and exhausting” a fact well known following the release of disturbing video footage six months into their captivity. A ransom described as “several millions” was paid to secure their release. Somali pirates still hold 2 vessels and around 54 hostages.

 

REVISED ATHENS CONVENTION SET FOR 2014 DEBUT

   

Having achieved the required 10 ratifications, the Athens Convention relating to the Carriage of Passengers and their Luggage by Sea 2002, which substantially raises the limits of liability for ship passengers’ death or personal injury, is to enter into force on April 23, 2014. The 2002 protocol revises and updates the 1974 convention, which established a regime of liability for passengers killed or injured at sea. Significant fines will also apply where a vessel is either uninsured or a certificate is not obtained along with a direct right of action for each passenger against a vessel’s insurer up to 250,000SDR.

   
JONES ACT PERSPECTIVE

An interesting video was released this week wherein Mr. Ken Schoolland, Professor of Economics at Hawaii Pacific University speaks to the impact of the Jones Act on the economy of Hawaii http://www.youtube.com/watch?v=UhQ4d8g3tHc

 

Market Update  

Other than Capesizes showing a pulse, this was a week watching paint dry as the Baltic Dry Index was again steady as she goes, closing on Thursday at 873 points compared to 872 points last week and 885 points the week previously.

 

                                      Cape Size       Panamax        Supramax

Index                                 1322               1010                880          
Last week                          1220               1121                904
Spot time charter          $5,400/day      $8,100/day      $9,200/day
One week ago              $4,300/day      $8,900/day      $9,500/day

 

Upcoming Events

 

NOTHING TRIVAL ABOUT CBP’S NEW “RESIDUE” RULES

May 7 – The National Industrial Transportation League will presents a webinar on Tuesday, May 7, 2013  11:00 a.m. - 1:15 p.m. PDT on CBP’s new requirements for residual cargo.  Based on a 2009 legal ruling, US Customs and Border Protection (CBP) will soon put into place new requirements making an importer of record responsible for manifesting residual cargoes that remain in containers, trucks, railcars and tanks that enter and are released into US commerce. In advance of the new requirements, CBP will conduct a "residue pilot" to test the new program for implementing the ruling without intentionally placing significant burdens on transportation providers' costs or US trade. CBP Branch Chief Amy Hatfield and CBP Trade Liaison Michael Schreffer will jointly conduct a League webinar detailing the new pilot program and how transportation and trade will be impacted by the new manifest requirements.  The program is free but attendees must preregister prior to 11:00 a.m. PDT on May 7 at the following link:  https://www2.gotomeeting.com/register/616176834

 

BUSINESS OF SHIPPING COURSE

May 9 – The next full day course for the Business of Shipping will be on May 9^th at the Vancouver Club.  Topics include an overview of the marine industry, port governance, ship source oil pollution and response, towage and salvage, marine pilotage, and shipbuilding prospects.  To register see the attached form.

 

NAUTICAL INSTITUTE BC BRANCH – PASSENGER VESSEL SAFETY CONFERENCE

May 9-10 – The Nautical Institute will host a two-day conference on passenger vessel safety, recent innovations and programs for continuous improvement.  For more information or to register visit: http://www.nibcconference2013.com/

 

PLIMSOLL CLUB GOLF TOURNAMENT

May 14 – The Plimsoll Club will host its annual golf tournament at the University Golf Club on Tuesday, May 14, 2013 – shotgun start at 13:15 hrs.  Please see the attached information and booking form for more information. 

 

VMAA PRESENTS ‘LINER TERMS VS. OTHER TERMS OF CARRIAGE’

May 16 – Save the date for the Vancouver Maritime Arbitrators Association’s next lunch seminar on Liner Terms versus other Terms of Carriage.  Details to follow.

 

COUNCIL OF MARINE CARRIERS TOWBOAT CONFERENCE 2013

May 23 – The 2013 Conference will be held from May 23^rd through to the 25^th at the Victoria Conference Centre at The Fairmont Express Hotel. For more information visit: http://www.comc.cc/conf/20Conf.html.

 

GREEN TECH 2013 ANNUAL CONFERENCE

May 29-31– Save the date for Green Marine's annual conference on green technologies and innovation for marine transportation in Vancouver for the first time with the IMO's environmental chair as keynote speaker.

 

BUSINESS OF SHIPPING COURSE

Jun 6 – COS is now accepting registration for the half-day course on Laytime and Letters of Indemnity scheduled for June 6^th with guest speakers Mike Jekyll and Peter Swanson.  See attached for information.

 

DAY OF THE SEAFARER BANQUET      

Jun 26 – Save the date for the Mission to Seafarers fundraising banquet scheduled for June 26^th at the Stanley Park Pavilion.  Details to follow.

May 8               COS Ship & Port Operations Committee @ 11:30
May 9               Business of Shipping Full Day Course
May 9               Nautical Institute – Passenger Vessel Safety Conference
May 14             Plimsoll Club Golf Tournament
May 16             VMAA Lunch Seminar
May 17             COS Navigation & Pilotage Committee
May 17             WMCC Annual General Meeting
May 22             COS Liner Committee Meeting @ 10:00
May 23                         VMAA Board Meeting
May 23             Council of Marine Carriers Towboat Conference 2013
May 29             WMCC PACMAR / NANS Meeting
May 29             Green Tech 2013 Annual Conference
May 30             Transportation of Dangerous Goods Course (tbc)
Jun 3                BC Marine Vessel Air Quality Work Group Meeting @ 09:00
Jun 5                COS Board of Directors Meeting @ 11:30
Jun 6                Business of Shipping – Half Day Session
Jun 25              Day of the Seafarer
Jun 26              Mission to Seafarers’ Seafarer Banquet

 

Ship of the Week

   

                        Pacific Egret – nuclear fuel carrier

 

Pacific Egret is a INF Class 3 nuclear waste carrier. The vessel can carry in her four cargo holds up to 20 nuclear flasks used to contain spent fuel, highly active waste or recycled MOx fuel assemblies. Extensive safety features include a double hull around the cargo holds to give a “crumple zone” in the event of a collision.

Built in 2010 by Mitsui Engineering and Shipbuilding Tamano shipyard, Japan
Owned by Pacific Nuclear Transport Limited (PNTL)
LOA 103.9M
Beam 17.3m
GRT 6776 tons
DWT 4408 MT
Service speed 14 knots
Sister ships: Pacific Heron and Pacific Grebe

       

Pacific Egret left the port of Cherbourg in northern France last week with a shipment of radioactive nuclear fuel for Japan, the first such shipment since the Fukushima disaster. The shipment of mixed oxide fuel (MOX) is controversial in Japan, where public opposition to nuclear power and reactor restarts remains strong after the March 11, 2011 disaster. France’s state-owned nuclear group, whose activities range from uranium mining and enrichment to reactors and waste recycling, advised that the shipment will be routed via the Cape of Good Hope and then through the south-west of the Pacific Ocean. Similar cargoes are soon to be shipped on Pacific Egret’s sister ships Pacific Heron and Pacific Grebe.

Having recently returned to power, the Liberal Democratic Party of Japan has said it will reassess the previous government’s decision to abandon atomic power after Fukushima. The MOX shipment is destined for Kansai Electric Power Co’s Takahama nuclear plant west of Tokyo (above right) and since MOX contains around 7% plutonium, it is perceived as a national security threat requiring special precautions to be taken during transportation. The Fukushima crisis prompted the gradual shutdown of all Japan’s 50 nuclear reactors until there were none left operating by May 2012. The two reactors at Kansai Electric’s Ohi plant near Takahama are the only ones to be restarted so far. 

 

 

COS News - Week ending 26 April 2013
Issue No. 257

 

CANADIAN ECA ENFORCEMENT

Our sources suggest that there will be a Ministerial announcement on Emissions Control Area (ECA) enforcement in May - likely in Halifax. We understand that the announcement will confirm that the ECA legislation is in place, that agreements have been made to mitigate some of the impact on the cruise industry and will also be accompanied by safety bulletins including a form to be completed in the event of fuel non-availability. Nothing has thus far been released in writing and will not be until the announcement. As for enforcement, Transport Canada in the region has made it clear that there will initially be a period of soft enforcement to allow for vessels already bunkered for the current voyage but not having enough LSFO to meet the needs of the Canadian leg of the voyage

Maersk Line this week called for stronger allowable sulphur in fuel enforcement in Emissions Control Areas, in particular after the 2015 standard takes effect.  According to the European Commission, Directorate-General Environment, the number of fuel samples tested reveals that sampling is on average just one out of every 1,000 ships.

 

                Next ECA – Pearl River Delta?

  

CHANGES TO CBSA LONG ROOM OPERATIONS

Effective April 29^th 2013 Hours of Operations for the Long Room will be 08:00–16:00.

Cash office: 08:00-15:30 - All entries submitted after 15:30 will be processed the next business day.

Manifest Desk: 08:00-15:45 – All entries submitted after 15:45 will be processed the next business day.

BUSINESS OF SHIPPING COURSE – MAY 9   (a few places remaining)

In conjunction with the Institute of Chartered Shipbrokers we have a revamped one day Business of Shipping course coming up at the Vancouver Club on May 9 featuring speakers on:

• The Global Marine Industry (Chamber of Shipping)
• Port Governance, Responsibility and Operations (Port Metro Vancouver)
• Ship Source Oil Pollution (Bernard & Partners)
• The structure and role of Western Canada Marine Response Corp (WCMRC)
• Towage and Salvage (SMIT Marine)
• Marine Pilotage (Pacific Pilotage Authority)
• Canadian Shipbuilding prospects (Seaspan)

Please see the attached registration form for more details or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it for more details. 

 

HMCS WINNIPEG RAMMED BY US FISHING BOAT IN ESQUIMALT

     

The day of HMCS Winnipeg was spoiled this week when she was rammed by an American fishing boat which suffered an engine failure whilst making her way into dry dock in Esquimalt. The American Seafood Company fish factory vessel American Dynasty collided with the docked HMCS Winnipeg which has just undergone a mult-million dollar refit and mid-life upgrade. Whilst there were no serious injuries, six civilian workers on the Winnipeg were taken to hospital to be checked out.  While a Transportation Safety Board investigation is underway, it has been suggested that a power failure and an unexpected engine restart on the trawler caused the collision.

This weekend Vancouver Harbour will host a number of US and Canadian navy vessels.  In North Vancouver, two maritime coastal defence vessels, HMCS Saskatoon and HMCS Nanaimo, four ORCA patrol craft training vessels, along with USS Lake Champlain will be berthed at Burrard Pier, next to the Lonsdale Quay.  The Destroyer Her Majesty's Canadian Ship (HMCS) Algonquin and the West Coast based Submarine HMCS Victoria will be docked at Canada Place.  Guests are welcome aboard the ships for guided tours on Saturday, April 27^th and more information on the tour times can be found at www.vancouverportvisit.com.

Following the Vancouver Port Visit, Canadian Fleet Pacific ships, along with Royal Canadian Air Force and Canadian Army will participate in Exercises Trident Fury and Jointex from May 3-19, 2013. The objective of these exercises is to achieve a joint, integrated, agile, and ready force that leads to success in operations at home and abroad.

 

FOSS MARITIME EXITS COLUMBIA RIVER

 

Seattle based Foss Maritime Co., one of three primary ship assist tug companies operating on the Columbia River, has sold its assets to Tidewater Barge Lines resulting in the layoff of around 60 staff. The sale will leave Tidewater to compete primarily with Shaver Transportation Co.  The move has come as something of a surprise to the local marine community given the healthy level of business along the Columbia River’s ports despite continuing labour strife involving ILWU locals.  Founded in the 1880’s, Foss is part of a privately owned family business that is the nation's largest coastal tug and barge company.

TESORO MULLS CRUDE OIL EXPORTS FROM VANCOUVER WASHINGTON

 

The Port of Vancouver Washington is the latest to be considered for west coast crude oil exports. Independent companies Tesoro and Savage have formed a joint venture to develop a terminal to handle around 120,000 bpd by late 2014 at a cost of $75m to $100m with the potential to expand to up to 280,000 bpd. Tesoro aims to build upon its success at the rail unloading facility at its Anacortes Wa. Refinery. Tesoro operates seven oil refineries in the western US coast with a combined capacity of about 675,000 bpd.

TWIC RENEWALS PROCESSING DELAYS

 

As we are experiencing in Canada, the five year renewals of Transportation Security Clearances (TSC) are proving to be a challenge to stay ahead of. South of the border, tens of thousands of Transportation Worker Identification Cards (TWIC) issued in 2008 and 2009 are generating a surge in renewals and the consequent extensive delays are being described as “a potential national disaster”.  Some 60,000 TWICs in and around the ports of Los Angeles and Long Beach alone are required to be renewed this year and the advice is to file an application at least four months in advance of card expiration. Application for three-year extension costs $60, or a five-year renewal at $129.

LOUIS DREYFUS TO EXPAND CANOLA CRUSH

Louis Dreyfus Commodities plans to expand its Saskatchewan canola crushing plant capacity by 20 per cent, adding to a rapid industry expansion to produce vegetable oil.  Several of the company's rivals have already announced expansions at their own crush plants in Canada, which is now the world's biggest grower and exporter of canola.  The Yorkton will eventually reach 3,000 tonnes per day, up from the current 2,500 tonnes this summer and will be one of North America’s largest plant.  Louis Dreyfus also bought back Japanese commodity trading firm Mitsui's 40 per cent interest in the Yorkton plant effective March 29, again giving Dreyfus full ownership.

In other news, PotashCorp, one of the world's largest potash producers, said Thursday it was abandoning efforts to take over Israel Chemicals Ltd. because of strong opposition in Israel.  PotashCorp, which currently holds a 14 per cent stake in ICL, revealed its decision the same day it reported a stronger-than-expected 13 per cent rise in profit after renewed sales to China and India.

MDA CONTINUES TO PROVIDE OPERATIONAL SUPPORT

MacDonald, Dettwiler and Associates Ltd. (MDA) has signed contracts totaling CA$3.2 million with the Government of Canada's Department of National Defence (DND) to provide operations for the east and west coast RADARSAT-2 ground systems that support the deliverables under the Polar Epsilon project, the broad-area surveillance system delivered by MDA to DND in 2012.  The Polar Epsilon surveillance system delivers space-based, day and night, all-weather maritime surveillance information of Canada's Arctic, Atlantic, and Pacific oceans and includes global high-resolution surveillance capabilities to support deployed Canadian Forces.

NEW A-1 MARINE SERVICES OFFICE IN NANAIMO

A-1 Marine Services Ltd. is expanding to Vancouver Island (Nanaimo) as of May 01/13.  The new location in Nanaimo will be fully equipped with vessel repair equipment and a full stock of deck lashing components.  For more information visit: www.a-1marineservices.ca.
 

ROBERT PACE APPOINTED VICE-CHAIRMAN OF CN

David G. A. McLean, chairman of CN announced that the Company's Board of Directors (Board) has appointed Robert Pace as its vice-chairman on April 23, 2013.

Government News

NEW D-3-1-1 POLICY ON IMPORTATION AND TRANSPORTATION OF GOODS

Canada Border Services Agency has released its updated version of Memorandum D3-1-1 yesterday.  Included in the D-Memo are the new eligibility requirements for carrier codes.  Unfortunately, in the definition of carrier under section 6, CBSA neglected to include our recommendation to also recognize conveyances transporting specified goods from Canada.  We have been advised by CBSA that this will be corrected at some point.

NEW PROPOSED REVISIONS TO MARINE TRANSPORTATION SECURITY REGULATIONS

The latest revisions to Transport Canada’s Marine Transportation Security Regulations have been published in the Canada Gazette Part I, April 27, 2013.  The proposed amendments address regulatory gaps and interpretation issues.  We will be reviewing the proposed amendments through our various committees.  Comments are due in 60 days.

PROPOSED AMENDMENTS TO THE DISPOSAL AT SEA REGULATIONS

Also published in the Canada Gazette Part I, April 27, 2013 for comments are proposed amendments to the Disposal at Sea Regulations.  The purpose for the amendments is to increase certainty in the permitting process for disposal at sea.

International News

 

NORTH P&I CLUB WARNS OF BREABULK STOWAGE FROM CHINA

  

The Newcastle UK based North P&I Club has warned about break-bulk cargo storage problems particularly on ships loading in China. The Newcastle-based marine liability insurer says that it has experienced an increase in claims arising from the poor stowage. The full advisory can be found on http://www.nepia.com/publications/pressreleases/pandicargo/1346/

DNV-GL GROUP ANNOUNCE MERGED MANAGEMENT TEAM

 

                 Henrik Madsen

Det Norske Veritas and Germanischer Lloyd have announced the names of the new combined management team. Former DNV executives dominate the new management team with seven of the top ten positions. The new DNV-GL Group will be jointly owned by Mayfair, a company owned by the Herz family, and the DNV Foundation. DNV chief executive Henrik Madsen (picture above) becomes President and Chief Executive Officer of the new company.

WHO IS BUILDING ALL THE LNG CARRIERS?

       

Still with ship building, a recent slide in the value of the yen has revived interest in Japanese shipyards for new builds. The country’s yards secured 49 export orders last month, compared to just five in February. Depending on the type of vessel, the price differential with China has fallen to only 10%-15%, according to the Japan Ship Exporters Association. However, prices being contracted now match levels last seen in the mid 1980’s when adjusted for inflation.

In terms of LNG projects, the tide is turning increasingly negative for Australian projects on account of severe cost escalations. Woodside Petroleum, the proponent behind six of the seven LNG production facilities in Australia, this week called for government support to reduce development cost pressures. Only last week, cost escalations prompted the company to abandon its Browse LNG project in Western Australia when it was concluded that the project would not deliver the commercial returns required for a positive final investment decision. Australia is home to seven of the 13 LNG projects under construction globally.

 

GREENPEACE BOARDS AUSTRALIA BOUND COAL CARRIER

 

Greenpeace was at it again this week, the latest stunt being to boarded the Korean bulk carrier Meister bound for South Korea near Australia’s Great Barrier Reef in protest against the impact of the expansion of Australian coal exports on the World Heritage site. Greenpeace activists launched inflatable boats from the Rainbow Warrior and boarded the vessel to hand a letter to the Master explaining the reasons for the boarding. UNESCO is due to decide in June whether the Reef should be listed as an endangered World Heritage Site.

CONTAINER CARRIERS SUBSIDIZING PANAMA CANAL?

 

When it opens in 2015 the Panama Canal Mark 2 will be capable of handling ships of up to 13,000 TEU. However, it was pointed out this week that whilst container ships account for 25% of transits, they also account for 50% of the Canal’s revenues. As a consequence, it was predicted this week than an expanded Canal will not be the fundamental game changer for the US east coast ports that many are hoping for.

 

UNIQUE NORWEGIAN PROJECT TO CONSTRUCT MARINE TUNNEL

Norway, a country where the shipping industry is the second most important after oil and gas, is considering a proposal to create the world's first “ship tunnel” linking the Norwegian Sea to the North Sea. The unique design calls for a  tunnel 1.7 km (one mile) long, 45m high and 36m wide through Stad peninsula in the municipality of Selje on Norway’s north-west coast (see map above right). Instead of carving out a slice of the landscape for a canal, engineers would drill and blast through the rock at sea level before removing the dams so the sea can flood a 12m (39ft) deep channel for ships to sail through. The Stad peninsula is notorious for heavy weather and high wind speeds. Whilst such a project has been debated for many year, the tunnel was this year included in the country’s National Transport Plan for the first time.

 

IMO – ATHENS CONVENTION TO ENTER FORCE IN 2014

The IMO issued a news release stating that the Athens Convention relating to the Carriage of Passengers and their Luggage by Sea, 2002, will enter into force on 23 April 2014, following the recent ratification by Belgium.  Ten ratifications have been received to date.  The Athens Convention substantially raises the limits of liability for the death of, or personal injury to, a passenger on a covered ship.  The Convention shifts the burden of proof to the effect that, to escape liability, the carrier must demonstrate that the loss was not due to its fault or neglect.  

JAPAN IMPLEMENTS NEW MARITIME POLICY GUIDELINES

Amid its ongoing territorial dispute with China, Japan unveiled a raft of steps to boost security around its remote islands, unveiling new maritime policy guidelines that expand patrol and information gathering capabilities, while beefing up cooperation between the nation’s thinly stretched coast guard and its navy.

The government’s Headquarters for Ocean Policy released its latest five-year policy guidelines, which call for “appropriately dealing” with foreign vessels that anchor or stay in territorial waters without pressing reasons.

Market Update

The Baltic Dry Index was again steady this week and closed on Thursday at 872 points compared to 885 points last week and 859 points the week previously.

                                       Cape Size       Panamax        Supramax

Index                                 1220               1121                 904
Last week                          1238               1180                 898
Spot time charter            $4,300/day      $8,900/day       $9,500/day
One week ago                $4,400/day      $9,400/day       $9,400/day

Upcoming Events

BUSINESS OF SHIPPING COURSE
May 9 – The next full day course for the Business of Shipping will be on May 9^th at the Vancouver Club.  Topics include an overview of the marine industry, port governance, ship source oil pollution and response, towage and salvage, marine pilotage, and shipbuilding prospects.  To register see the attached form.

NAUTICAL INSTITUTE BC BRANCH – PASSENGER VESSEL SAFETY CONFERENCE
May 9-10 – The Nautical Institute will host a two-day conference on passenger vessel safety, recent innovations and programs for continuous improvement.  For more information or to register visit: http://www.nibcconference2013.com/

PLIMSOLL CLUB GOLF TOURNAMENT
May 14 – The Plimsoll Club will host its annual golf tournament at the University Golf Club on Tuesday, May 14, 2013 – shotgun start at 13:15 hrs.  Please see the attached information and booking form for more information. 

COUNCIL OF MARINE CARRIERS TOWBOAT CONFERENCE 2013
May 23 – The 2013 Conference will be held from May 23^rd through to the 25^th at the Victoria Conference Centre at The Fairmont Express Hotel. For more information visit: http://www.comc.cc/conf/20Conf.html.

GREEN TECH 2013 ANNUAL CONFERENCE
May 29-31– Save the date for Green Marine's annual conference on green technologies and innovation for marine transportation in Vancouver for the first time with the IMO's environmental chair as keynote speaker.

BUSINESS OF SHIPPING COURSE
Jun 6 – COS is now accepting registration for the half-day course on Laytime and Letters of Indemnity scheduled for June 6^th with guest speakers Mike Jekyll and Peter Swanson.  See attached for information.

DAY OF THE SEAFARER BANQUET
Jun 26 – Save the date for the Mission to Seafarers fundraising banquet scheduled for June 26^th at the Stanley Park Pavilion.  Details to follow.

May 1               COS Board of Directors Meeting
May 9               Business of Shipping Full Day Course
May 9               Nautical Institute – Passenger Vessel Safety Conference
May 14             Plimsoll Club Golf Tournament
May 23             Council of Marine Carriers Towboat Conference 2013
May 29             Green Tech 2013 Annual Conference
Jun 6                Business of Shipping – Half Day Session

Ship of the Week

 

                          USS Freedom – first in a series of Littoral Combat Ships

The US Navy’s first so called Littoral Combat Ship USS Freedom (LCS 1) sailed from her homeport of San Diego on her maiden deployment March 1 headed for Singapore where she is to be based for the next eight months of service in Southeast Asia. Her first deployment is intended to demonstrate her operational capabilities which the navy describes as “fast, agile, and mission-focused”. This new class of vessel will be equipped with modular mission packages that can be configured for either surface warfare, mine countermeasures, or anti-submarine warfare.  USS Freedom is to be be initially manned by the 91 members of her “Gold” crew which includes mission package personnel and an aviation detachment to operate an embarked MH-60 helicopter. Midway through Freedom’s deployment, a crew swap will be conducted with her “Blue” crew.

         

En route to Singapore the vessel made port visits in Hawaii, Guam and most recently in Manila before arriving in Singapore last week where she will participate in the upcoming International Maritime Defence Exhibition and Conference (IMDEX). Under a fixed-price incentive-fee contract with Lockheed Martin, the navy is being gradually allocated funding for an initial series of 10 ships in a long term program which calls for 52 ships of the three variants in this class. Marinette Marine Corporation, a Fincantieri company, will actually construct the ships in Marinette, Wisconsin. The price for each ship will vary from $440 – 460 million per ship depending on detailed specifications.

  

Others vessels pre-named in this class of warship are:

LCS 2 USS Independence
LCS 3 USS Fort Worth
LCS 4 USS Coronado
LCS 5 Milwaukee
LCS 6 Jackson
LCS 7 Detroit
LCS 8 Montgomery
LCS 9 Little Rock
LCS 10 Gabrielle Giffords (after the the Tuscon, Arizona, congresswoman who survived a January 2011 assassination attempt).