COS News – Week ending 16 November 2012
Issue No. 235       

 

TRANSPORTATION SECURITY CLEARANCE - RENEWAL REMINDER
Please be reminded that many of the five-year marine Transportation Security Clearances (TSC's) issued by Transport Canada in 2007-2008 are expiring.   To avoid any disruption to port or terminal access in the Lower Mainland, we encourage TSC holders to begin the renewal process as soon as possible.  The renewal process for TSC's does requires a completely new application that must be sponsored by an authorized agency before it can be processed by Westguard Security.  Port access card holders may be inconvenienced if the access card expires before the TSC is returned by Transport Canada.  For more information or to obtain the application forms, visit the COS website.

FRASER SURREY DOCKS INDUCTED TO FRASER RIVER DISCOVERY CENTRE’S HALL OF FAME
Fraser Surrey Docks joins a distinct group of 20 businesses, families and individuals recognized for their outstanding social or economic contribution to the Fraser River and the communities it supports.

Fraser Surrey Docks was nominated as a Hall of Fame inductee for its pioneering spirit in its development from a small terminal on the river 50 years ago to a major participant in Canada’s Asia Pacific Gateway. Since its beginnings in 1962, Fraser Surrey Docks has developed into one of the Port’s most dynamic terminals and is a key asset to the region’s trading economy. Now, Fraser Surrey Docks contributes to a vibrant river economy which generates more than $4.6 billion in GDP annually, $9.6 billion in economic output and 53,150 jobs.

VANCOUVER SEES MODEST GROWTH IN 2012 CRUISE SEASON
Port Metro Vancouver has concluded a successful 2012 Vancouver-Alaska cruise season, posting a modest increase in passengers more than the 663,000 passengers the Port welcomed in 2011.

Between May and October 2012, Port Metro Vancouver’s two cruise terminals, at Canada Place and Ballantyne, welcomed 667,000 passengers on 28 different vessels with 191 cruise ship calls. During the cruise season, 60 vessels connected to the Port’s shore power facilities, reducing greenhouse gas emissions by 2,266 tonnes.

 

PPA WEBSITE PLANNED OUTAGE
The Pacific Pilotage Authority advises that portions of their website will be unavailable on Monday, November 19, 2012, between 0600-0900 hrs to allow for the migration the NetPilot System onto new servers.

 

MODEL OF THE SEAPSAN EAGLE PRESENTED TO COS BOARD
 

At our Board of Directors meeting yesterday, Doug Towill, on behalf of Seaspan Marine Corporation, presented to the Chamber of Shipping a replica model of one of its newest tugs the Seaspan Eagle.  The Seaspan Eagle is one of the three new Super Tractor Tugs commissioned in June this year.   The tug model will be prominently displayed in our lobby.

 

IBEW AND CANADIAN PACIFIC REACH TENTATIVE AGREEMENT

The International Brotherhood of Electrical Workers (IBEW), System Council 11 and Canadian Pacific (TSX:CP) (NYSE:CP), have reached a tentative five-year labour agreement covering approximately 450 employees who maintain and install railway signals and communications systems across Canada.  Details of the tentative agreement are being withheld pending ratification by the IBEW membership.

 

Government News

FOUNDING OF THE CANADIAN NAVAL SERVICE AND FIRST DIRECTOR RECOGNIZED

Two Historic Sites and Monuments Board of Canada plaques were unveiled earlier this week.  The ceremony commemorated the Founding of the Canadian Naval Service as a National Historic Event and Admiral Sir Charles Kingsmill as a National Historic Person.  A special ceremony was held at the Officers’ Mess, Stadacona, Canadian Armed Forces Base Halifax.

The Laurier government appointed a retired Canadian-born officer in the Royal Navy, Captain (later raised to the rank of Admiral) Charles Kingsmill, to direct the development of Canada's domestic sea-going military service. The Canadian Naval Service (renamed the Royal Canadian Navy in 1911) was the first naval service established by the Government of Canada. It is the foundation of the current naval component of the Canadian Armed Forces, notably called the Royal Canadian Navy, and Kingsmill was appointed to take command. Established in 1910, it played an important role in Canada’s contributions to the Allied effort during the First World War, notably in the fields of military recruitment and training, coastal patrol, the organizing and operating of an Allied convoy service, and provisioning the Allied fleet on the Atlantic coast. Though faced with limited financial support, the Royal Canadian Navy under Kingsmill's command accomplished a great deal.

 

International News

CARRIERS DELARE FORCE MAJEURE ON DIVERTED CONTAINERS

Many container carriers forced to discharge containers at alternative ports as a consequence of Hurricane Sandy two weeks ago have declared force majeure, thereby leaving cargo owners to arrange delivery to original bill of loading ports or final destination. Whilst the New York and New Jersey terminals are now operational again, many thousands of containers are displaced. Some carriers are reportedly willing to assist customers in repositioning of containers back to New York-New Jersey at a cost of around $750 per box.

 

EU SUSPENDS AVIATION EMISSIONS TRADING SCHEME

Under huge legal pressure from North America and China, the European Union has decided to back-track on a highly contentious regional Emissions Trading Scheme for aviation. From a shipping perspective, this is a pragmatic and positive move by Europe in also reducing the threat of similar unilateral action against shipping. It is now hoped that the EU will stand back and allow the International Civil Aviation Organization (ICAO) and the International Maritime Organization (IMO) to get on with developing the next stage of GHG reduction measures in their respective sectors, free of external pressures.

 

COSTA CONCORDIA SLAVAGE  - NEW WEBSITE

A new website has been launched http://www.theparbucklingproject.com/ to provide regular updates of progress in one of the world’s most complex ever salvage operations i.e. that of Costa Concordia.

 

ARGENTINE TALL SHIP IN GHANA STAND OFF

  

Having sailed from Buenos Aires in June this year, the multi-national crew of 326 persons on the Argentine naval tall ship ARA Libertad could not have imagined the international incident in which they were to become centre stage. The ship was arrested in the port of Tema, Ghana on the orders of a Ghanaian judge over a claim lodged against Argentina related to sovereign default of bonds to the tune of $1.6 billion. Argentina has this week filed a complaint against Ghana with the International Tribunal for the Law of the Sea demanding release of the vessel which is now manned by only a skeleton crew of 44 persons. Last week the crew reportedly drew guns to fend off an attempt by port authorities to move the vessel from her current berth and as a consequence the vessel is now deprived of access to water and electricity.
 

NIGERIA GETTING SERIOUS ON PIRACY?

               Nigerian anti-piracy navy patrol

Nigeria has finally been shamed into addressing piracy attacks on merchant shipping, a problem for many years but which in recent times has reached new levels of violence. Piracy in the region also extends to theft and sale of oil all types of oil cargoes. Despite a strong suspicion of official connivance “Exercise Farauta” will be supported by eight warships, six gunboats and three helicopters. Later this month the IMO’s Maritime Safety Committee is to publish its proposed ISO PAS 28007, an international standard relating to the employment of armed guards, carriage of weapons on merchant ships and issues of liability.
 

FMC CHAIR SET TO CONTINUE

Following President Obama’s re-election victory, and against the background of recent allegations that the Federal Maritime Commission is in crisis, the organization’s chairman Mr. Richard Lidinsky (a political appointee) seems set to continue in that role. As such, he has voiced his expectation that three themes will dominate the U.S. maritime agenda over the President’s second term; namely support for US exporters and importers, promotion of green transport, and the elimination of unnecessary red tape. There has been no mention thus far of continuing to paint Canada’s ports as anti-competitive to U.S. interests or of the pressing need to reform the contentious Harbour Maintenance Tax.
 

VENICE SUFFERS MAJOR FLOODING

  

                 Taking a stroll in St mark’s Square (left) and the flood barrier (right) still under construction

Venice, the major Italian port city and cruise destination suffered the 6^th worst level of flooding in 150 years last weekend with 95% of the city flooded. The city which is also slowly sinking is in the process of erecting a $6 billion flood barrier which was to have been completed in 2010 but which is now expected to complete in 2013. The project consists of a system of 79 mobile barriers designed to protect the three entrances to the lagoon. The barriers will stay on the seabed, invisible until high tides and storms are forecast. They will then be inflated, blocking the sea from the lagoon and reducing high water levels. After the threat has passed, they will be lowered again. In addition to the outstanding cultural and architectural importance of Venice, the lagoon hosts areas of ecological importance designated as Natura 2000 sites. For this reason, environmental groups have strongly protested the project but have been thankfully over-ruled.

 

Market Update  

Iron ore exports to China from Port Hedland in NW Australia were a record 17.6 million tons in October out of total Chinese iron ore imports last month of 56.4 million tons – the primary factor in recently improved Capesize rates. The Baltic Dry Index consequently closed up for the week on Thursday on 1024 points after dropping to 916 points last week from 1000 points the week before.
                                                          Cape Size       Panamax         Supramax

Index                                                     2350               846                   664 
One week ago                                        2119               726                   644
Spot time charter                           $16,400/day      $6,800/day       $6,900/day
One week ago                               $13,700/day      $5,800/day       $6,700/day

Tankers: China’s crude oil imports rose to 5.6 million barrels per day in October, thereby single handedly providing gainful employment for the equivalent of three VLCCs each day. The modest increase in demand combined with a reduced rate of fleet growth have pushed rates between the Middle East and Asia  to around $15,000 per day, triple of what they were just a few weeks ago.

See the latest Teekay market reports on YouTube:

Offshore markets: http://www.youtube.com/watch?v=lGQ-syd6wnw

LNG: http://www.youtube.com/watch?v=F6fxEeXS8HM

Conventional tankers: http://www.youtube.com/watch?v=HMk8XDWml74

 

 

Upcoming Events

ANNUAL PLIMSOLL FALL BANQUET

Nov 23 – Tickets for the Plimsoll Club 67^th Annual Fall Banquet are selling fast so book your tickets today.  The banquet returns to the Fairmont Waterfront Hotel this year and features guest speaker, the Honourable Marc Garneau, MP and President of the Canadian Space Agency.  See attached flyer for more information or contact Renae Warnock at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

ICS PUB NIGHT

Nov 27 – The Institute of Chartered Shipbrokers Canada will host a pub night on November 27^th from 5pm at Mahoney & Sons Public House located at the Vancouver Convention Centre.  To RSVP please e-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it . 

VANCOUVER GRAIN EXCHANGE LUNCH

Dec 7 – The Vancouver Grain Exchange will host its annual lunch at the Terminal City Club on December 7^th.  Proceeds from the event will go to the Greater Vancouver Food Bank.  For more information contact Andrew Knapman at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

BC MARINE INDUSTRY CONFERENCE

Nov 28/29 - The BC Marine Trades Association’s next BC Marine Industry Conference is being held on November 28^th & 29^th at the River Rock Casino Resort. Information is available at http://www.bcmta.com/.

MARINERS’ WORKSHOP

Feb 6/7 – The Shipping Federation of Canada in conjunction with the Chamber of Shipping and other local groups are hosting a Mariners’ Workshop at the Terminal City Club in Vancouver.  A block of rooms has been set aside for the workshop at the Terminal City Club at rates starting from $153/night.  For more information and to view the draft agenda see attached registration form.

Nov 19              COS Ship & Port Operations Committee Meeting @ 11:30
Nov 19              Mission to Seafarers Board of Directors Meeting
Nov 20              SS Beaver Medal Awards Luncheon @ 12:00
Nov 22              VMAA Lunch Seminar (tbc) @ 12:00
Nov 22              COS Members’ Appreciation Night
Nov 23              Plimsoll Club Fall Banquet
Nov 27              Institute of Chartered Shipbrokers Pub Night
Nov 28/29         BC Marine Industry Conference
Dec 5               COS Board of Directors Meeting
Dec 6               VMAA Board of Directors Meeting
Dec 7               Vancouver Grain Exchange AGM & Lunch

Ship of the Week

 

      CMA CGM Marco Polo currently the world’s largest container ship

 

Built by Daewoo Shipbuilding & marine Engineering (DSME) in South Korea 2012

LOA 396 m
Beam 53.6 m
Draft 16 m
GRT 175,001
Capacity 16,020 TEU, including 1100 reefers
Main engine 92,454 hp Wärtsilä 11RT-Flex96c
Full Service speed 24.1 knots at 288 tons/day
Initial crew 27 including 3 cadets
U.K. flag

The CMA CGM Group has introduced what is currently the world’s largest containership, namely MV CMA CGM Marco Polo, the first of three sister ships to be named after famous explorers. She began her maiden voyage on November 7th, in Ningbo.

  

 maiden voyage loading in the Chinese port of Ningbo last week – note 10 gantry cranes in use                         

CMA-CGM Marco Polo’s maiden voyage from Asia to Europe includes calls at Ningbo, Shanghai, Xiamen, Hong Kong, Chiwan, Yantian, Port Kelang, Tangiers, Southampton, Hamburg, Bremerhaven, Rotterdam, Zeebrugge, Le Havre, Malta, Khor Al Fakkan, Jebel Ali, Ningbo. The company’s so called FAL1 service provides a fixed-day, weeklyconnection between Central and South China and Northern Europe. 

In line with the sustainable development policy of the Group, CMA CGM Marco Polo is equipped with all the latest environmental technologies:

• An electronically controlled engine providing for reduced fuel consumption of (-3% on average) and of lub oil (-25%)
• A twisted leading edge rudder improving the hydrodynamics of the vessel
• A Pre-Swirl Stator allowing the straightening up of the water flow upstream from the propeller in order to improve its effectivenss. Combined with the twisted leading edge rudder, this innovation optimizes the hydrodynamics of the vessel and makes it possible to reduce by 2 to 4% the consumption of energy and the atmospheric emissions.
• An “Exhaust Gas Bypass” system, which improves the energetic efficiency of the vessel, reducing fuel consumption by 1.5% at low speeds.
• An optimized hull design.
• A ballast water treatment system

The growing fleet of ultra-large containerships provide economies of scale but also pose significant challenges to the supporting shore-side infrastructure. HPH group managing director John Meredith pointed out last year that shipping lines have ordered too many ultra-large vessels, suffered bad margins and show reluctance to cover the higher investment expected of  terminal operators to service these vessels.

 

COS News – Week ending 9 November 2012
Issue No. 234       

 

LEST WE FORGET

 

CANPOTEX RECEIVE GREEN LIGHT FROM ENVIRONMENT MINISTER
Canada's Environment Minister, the Honourable Peter Kent, announced that the proposed Canpotex Potash Terminal Project in Prince Rupert is not likely to cause significant adverse environmental effects with the implementation of the mitigation measures and follow-up program described in the Comprehensive Study Report.  The Minister has referred the project back to Environment Canada, Fisheries and Oceans Canada, and Transport Canada, for appropriate action.
 

USW LOCAL 1976 AND CP RATIFY FIVE-YEAR AGREEMENT
Canadian Pacific and the United Steel Workers, Local 1976, representing approximately 800 clerical and intermodal workers, today announced that a five-year contract has been ratified with 87% of the membership voting in favour of the contract terms.  The new collective agreement begins in January 2013 and allows for wage increases of 3% in each of the next five years.  It also reflects changes that help ensure the CP pension plan is sustainable for employees, current retirees, and CP.
 

TRANSPORTATION WORKERS TO ESTABLISH GLOBAL AGENDA
The International Transport Workers' Federation (ITF) will be meeting in downtown Toronto next week to set the global agenda for transportation worker unions right around the world, in the rail and road transportation sectors.  The road and rail transportation conference will take on issues like privatization, deregulation, logistics and supply chains on a global scale, and how they all impact workers' lives and workers' rights.  Conference delegates will be debating how to support trade union efforts in Iran, Turkey and Swaziland, as well as here in Canada.

The event is being co-sponsored by the CAW and the ITF. It will attract more than 200 delegates from 76 unions in 44 countries, as far away as Nepal and Palestine.
 

CN’S CLAUDE MONGEAU ADDRESSES THE BOARD OF TRADE
Claude Mongeau, president and chief executive officer of CN told the Vancouver Board of Trade's Pacific Gateway Forum 2012 that the economic significance of CN and its innovative business agenda support Canada's export potential. 

"Vancouver is a major gateway for CN's export-based traffic. Roughly C$85 billion worth of goods move to global markets annually over CN's network, with about 30 per cent of CN's carloads being tied to exports to the U.S. and offshore markets. This means we're a major player in Canada's trade and prosperity, and that global trade is very important to our business as well."

"We've got a good thing going here," Mongeau said. "We have world-class rail service and the lowest freight rates among OECD countries. We strongly encourage the Canadian government to stay the course with a commercial approach to rail service. Additional regulation could stifle innovation and chill the positive momentum we've developed.
 

INTRODUCING CMA CGM MARCO POLO

CMA CGM took delivery of the 16,000 teu CMA CGM Marco Polo this week and she is the largest containership on the water until Maersk Line’s 18,000 teu ships start to be delivered later next year.  The CMA CGM Marco Polo will join the lines FAL1 loop between Asia and Europe and result in changes to the Pacific fleet.   CMA CGM will gradually move their 11,000 teu ships to the transpacific routes operated jointly with MSC and Maersk.

 

GREEN TECH 2013
A call for papers and exhibitors has been issued by Green Marine for their annual conference in Vancouver on May 29-31^st at the Hyatt Regency. 
 

WINDSOR DETROIT BRIDGE SET TO GO AHEAD

   

                  existing Ambassador bridge (left) and artist’s impression of new bridge (right)

Assuming no further legal challenges, the path now seems clear for a new bridge to be constructed between Windsor, Ont., and Detroit, Michigan after the issue was added to the local ballot in this week’s US elections.  More than 60% of voters turned down a proposal to force the issue to a state wide referendum thereby generating even more delay to the plan to replace Canada’s busiest border crossing into the United States, namely the privately owned, heavily congested 83-year-old Ambassador Bridge. To get the bridge built, Canada has agreed to pay Michigan's $550 million share of the new $1 billion project.

 

Government News

RECOGNIZING THE 70^TH ANNIVERSARY OF THE WOMEN’S ROYAL CANADIAN NAVAL SERVICE
As part of Veterans’ Week 2012, the Honourable Peter MacKay, Minister of National Defence, marked the 70th anniversary of the Women’s Royal Canadian Naval Service, better known as the “Wrens”. Established as a division of the Royal Canadian Navy, the Women’s Royal Canadian Naval Service was created on July 31, 1942. This group of Canadian women volunteered to serve Canada during the Second World War at a time when women had not previously played an active role in the Canadian military.

“The Canadian women who volunteered to serve their nation brought significant contributions to the Canadian war effort during these turbulent years,” said the Honourable Peter MacKay. “These women helped change the way society looked at women and the important role they could play in the defence of our country. Today women play an integrated part in all aspects of the Canadian Forces, and the Wrens can be proud to have played a key role in leading the way.”

“These courageous women simply wanted to be in naval service at a time when there was a huge threat to Canada's national interests at sea,” said Vice-Admiral Paul Maddison, Commander Royal Canadian Navy and Canadian Forces Champion for Diversity. “They willingly faced the inequalities of the day, did great work ashore to enable the success of our men at sea and helped push society into full acceptance of the role of women as full contributing members of the Royal Canadian Navy. Today, women serve as equals in the Royal Canadian Navy, as both regular and reserve members, ashore and at sea. I would not want to deploy a ship or submarine without women of all ranks among their crews.”

Many young women signed up for the duration of the Second World War, putting family and careers on the back burner. By the end of the war, nearly 7,000 women had served with the Women’s Royal Canadian Naval Service in 39 different trades including many non-traditional occupations such as sonar operators, coders, and telegraphists.

When the war was over, the Wrens left the Navy and returned to their hometowns, but because of what they had endured, their lives had changed forever and nothing would be the same for them or for Canada. The efforts of these pioneering women helped open the door for the women who now serve in a broad range of roles in the Canadian Forces today.
 

MINISTER RAITT MEETS WITH SHIPPING EXECUTIVES
The Honourable Lisa Raitt, Canada’s Labour Minister, met yesterday with executives involved in maritime shipping and transportation at the Journal of Commerce (JOC) Canada Maritime Conference and discussed labour relations and maritime transport best practices.  “Our government remains focused on creating jobs, growth and long-term prosperity,” said Minister Raitt. “We are committed to sustaining and strengthening Canada’s global reputation as a reliable and efficient shipping gateway that businesses can depend on.” 
 

MINISTER LEBEL TO STRENGTHEN TRADE AND TRANSPORTATION TIES WITH CHINA
The Honourable Denis Lebel, Minister of Transport, Infrastructure and Communities will visit China from November 11-13, 2012.  During his visit, Minister Lebel will promote Canada’s global leadership in civil aviation and open new opportunities for Canadian businesses through strengthened transport and trade relations.  “Canada builds its relationships on a foundation of cooperation and partnership,” said Minister Lebel. “Transportation moves trade. The Harper Government will continue to work closely with our partners in Asia to keep people and goods moving efficiently, to ensure competitiveness, and to encourage long-term economic growth.”
 

HOUSE OF COMMONS APPROVES TRADE AGREEMENT WITH PANAMA
The Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway, announced that the Canada-Panama Economic Growth and Prosperity Act, together with agreements on labour cooperation and the environment, has been passed by the House of Commons and will be put forward for Royal Assent after passage by the Senate.

 

International News

US NAVY ASSISTS NY/NJ DISASTER RELIEF EFFORT
The US Navy has allocated a number of assets to provide disaster relief in support of the Federal Emergency Management Agency (FEMA), national and local authorities in the New York and New Jersey areas affected by Hurricane Sandy last week. The vessels USS Wasp (LHA 1), USS San Antonio (LPD 17), USS Carter Hall (LSD 50) are providing much needed logistical capability not least Wasp’s 18 helicopters. San Antonio and Carter Hall both have Landing Utility Craft (LCU) capable of transporting cargo, vehicles and personnel from ship to shore. Both San Antonio and Carter Hall are also providing command and control, underwater infrastructure repair capabilities not to mention port survey expertise. 

 

          USS Wasp on November 2 off New York

Port Elizabeth Terminal in New Jersey re-opened last Sunday morning with the arrival of vessels at the Maher and APM terminals. The Port Newark Container Terminal and the Global Terminal opened business on Monday morning. New York City implemented license plate gasoline rationing and lifted sulfur requirements for heating oil yesterday in the latest bid to ease the fuel shortfall caused by Hurricane Sandy.
 

2013 P&I RENEWALS LOOKING TO BE EXPENSIVE

 

       salvage work continues on Costa Concordia

Marine incidents such as Costa Concordia and the container ship MSC Flaminia are resulting in several P&I Clubs announcing rate increases ranging from 5% - 7.5% for the 2013 renewal season which occurs in February each year. At the same time, proposed increases in freight, demurrage and defence (FD&D) range from 10-15%. The fallout from the Costa Concordia in particular is having a global impact, on all vessel owners and operators. Latest estimates put the insured loss at nearly US$1 billion, including salvage and hull costs. It was initially estimated that the claims from passenger deaths, injuries and loss of property will exceed US$8 million, before even considering any environmental damage or wider loss of business to the whole cruise market. Claims filed to date are understood to seek more than US$1.4 billion.
 

SHELL TRADING CALLS FOR 2018 FUEL STUDY TO BE ADVANCED
IMO’s MARPOL Annex VI calls for a fuel availability study ahead of the proposed date for implementation of a maximum fuel sulphur content limit of 0.5% in 2020. Given recent experience with low sulphur fuel availability within ECA areas, industry has been pressing for the 2018 date to be advanced, a call denied by the IMO’s Marine Environmental Protection Committee at MEPC 64 in early October. Being a major global supplier of bunkers, Shell trading has now thrown its weight behind an advanced study given that the refining industry needs to spend $100 billion investment to extract sulphur from marine fuel oils or produce distillate to comply with future regulations. The concept behind the 2018 study is that if necessary, the global limit of 0.5% can be extended to 2025 if more time is required for the supply side to catch up.
 

A HEAVY LIFT GONE WRONG
Caught on video - A 200-ton brand-new multi-million dollar locomotive made it all the way from the US to West Africa before it fell 20-feet while being unloaded from a ship.

 

Market Update

Thanks primarily to a negative correction in Capesize rates, the Baltic Dry Index closed down for the week on Thursday on 916 points after cracking 1000 points last week.

                                                   Cape Size       Panamax         Supramax

Index                                                2119               726                   644 
One week ago                                   2355               770                   671
Spot time charter                         $13,700/day    $5,800/day       $6,700/day
One week ago                             $15,800/day    $6,200/day       $7,000/day

Tankers: The decision of the U.S. government late last week to suspend the Jones act to expedite movement of fuel supplies into New York and the surrounding area provided a welcome lift to the regional product tanker market. Unfortunately, the bottle neck at the receiving terminals will take some time to resolve but motorists frustrated by long lines for gas undoubtedly needed assurance that what can be done, is being done. When combined with the on-set of Northern winter, product tanker rates have more than doubled over the past couple of weeks after struggling to crack $10,000/day for most of this year.
 

Upcoming Events

DISCUSSION ON JAPAN’S ADVANCE FILING RULES
Nov 13 – The Chamber of Shipping is hosting an information session on November 13^th from 14:00 with Mr. Hidetoshi Aramaki of Japan NCSS to address the new 24-hour Advance Filing Rules (AFR) to be implemented in March 2014.  All container cargo destined for Japan will need to comply with the AFR – for more information visit: http://www.customs.go.jp/english/summary/advance/index.htm.  To register for the session please email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  Webex details will be sent to members wishing to participate by phone.

COS BUSINESS OF SHIPPING COURSE
Nov 14 – Next week’s Business of Shipping course is almost at capacity.  If you are interested in participating, please contact Rose Bray at the Chamber of Shipping at tel: 604-681-2351 as soon as possible. 

TRANSPORTATION CLUB – NSR PUB NIGHT
Nov 16 – The popular NSR (No Special Reason) pub night returns to Moose’s Down Under at 830 West Pender Street after 5pm.  Tickets are $20 and include one complimentary drink and pub food.  The Vancouver Transportation Club is looking for prize donations. For more information or to arrange for tickets contact Frank Siemens at tel: 604-841-447, Gerry Lyon at 604-861-1979 or Jim Howard.

ANNUAL PLIMSOLL FALL BANQUET
Nov 23 – Tickets for the Plimsoll Club 67^th Annual Fall Banquet are selling fast so book your tickets today.  The banquet returns to the Fairmont Waterfront Hotel this year and features guest speaker, the Honourable Marc Garneau, MP and President of the Canadian Space Agency.  See attached flyer for more information or contact Renae Warnock at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

ICS PUB NIGHT
Nov 27 – The Institute of Chartered Shipbrokers Canada will host a pub night on November 27^th from 5pm at Mahoney & Sons Public House located at the Vancouver Convention Centre.  To RSVP please e-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it . 

BC MARINE INDUSTRY CONFERENCE
Nov 28/29 - The BC Marine Trades Association’s next BC Marine Industry Conference is being held on November 28^th & 29^th at the River Rock Casino Resort. Information is available at http://www.bcmta.com/.

MARINERS’ WORKSHOP
Feb 6/7 – The Shipping Federation of Canada in conjunction with the Chamber of Shipping and other local groups are hosting a Mariners’ Workshop at the Terminal City Club in Vancouver.  A block of rooms has been set aside for the workshop at the Terminal City Club at rates starting from $153/night.  For more information and to view the draft agenda see attached registration form.

Nov 7                Plimsoll Club Board of Directors Meeting @ 12:00
Nov 8                Greater Victoria Harbour Authority Open House
Nov 12              Office Closed – Remembrance Day
Nov 13              Advance Manifest Requirements for Japan @ 14:00
Nov 14              COS Business of Shipping – full day course
Nov 15              COS Board of Directors Meeting @ 11:30
Nov 16              COS Navigation & Pilotage Committee Meeting @ 10:00
Nov 16              Vancouver Transportation Club – Pub Night
Nov 19              COS Ship & Port Operations Committee Meeting @ 11:30
Nov 19              Mission to Seafarers Board of Directors Meeting
Nov 20              SS Beaver Medal Awards Luncheon @ 12:00
Nov 22              VMAA Lunch Seminar (tbc) @ 12:00
Nov 22              COS Members’ Appreciation Night
Nov 23              Plimsoll Club Fall Banquet
Nov 27              Institute of Chartered Shipbrokers Pub Night
Nov 28/29         BC Marine Industry Conference
Dec 5               COS Board of Directors Meeting
Dec 6               VMAA Board of Directors Meeting
Dec 7               Vancouver Grain Exchange AGM & Lunch

 

Ship of the Week

As we once again commemorate Remembrance Day, we though it appropriate to give thought to the crucial battle waged by the Allied navies against the German U-boat fleet, a battle in which the Allies ultimately prevailed but it was a close run and a very costly aspect of World War II in terms of lives and vessels lost.  In the United States there are 21 preserved submarines, more than any other single type of historic naval vessel. Of those, 16 are veterans of World War II and four are post-war diesel submarines of which one is a nuclear submarine.

A vessel of great significance is U-505 built for service in the German Kriegsmarine during World War II. She was captured on 4 June 1944 by a United States Navy Task Group off the Cape Verde Islands, amazingly with her code books, Enigma machine and other ultra-secret materials all intact and which proved vital to the Allied war effort.

                 U-505 with US navy salvage crew onboard

Built by Deutsche Werft AG, Hamburg
Launched and commissioned in 1941
LOA 76.8m
Beam 6.8m
Speed 18.2 knots surfaced, 7.3 knots submerged
Range 25,000 nautical miles submerged, 120 nautical miles submerged
Complement 48-56 men
Completed 12 patrols and sank 8 Allied ships

All but one of U-505's crew were rescued by the navy task group. The submarine was secretively towed to Bermuda and her crew interned at Camp Ruston, a prisoner of war camp in Louisiana, where they were even denied access to the International Red Cross visits. Among the guards were members of the U.S. Navy baseball team, composed mostly of minor league professional baseball players who are reputed to have taught the crew to play the game. The Navy classified the capture a major coup and took extraordinary steps to ensure the vessel’s capture remained a secret. Ultimately, the Kriegsmarine declared the crew dead and informed family members to that effect. The last of the German crew was not returned to Germany until 1947.

For its part, U-505 was kept under wraps at the Allied Navy base in Bermuda and intensively studied. Some of what was learned of the advanced German engineering was included in postwar diesel submarine designs. To maintain the illusion that she had been sunk rather than captured, she was temporarily renamed USS Nemo.

    

U-505 under tow by USS Abnaki , lying alongside USS Guadalcanal (centre) and now preserved in the Museum of Science and Industry, Chicago (right)

U-505 is one of only six U-boats that were captured by Allied forces during World War II, and one of four German World War II U-boats that survive as museum ships. In 1954 she was donated to the Museum of Science and Industry in Chicago, Illinois. By the time she was donated to the Museum, she had been sitting neglected at the Portsmouth Navy Yard for nearly ten years, just about every removable part had been stripped from her interior and she was in no condition to serve as an exhibit. Amazingly, when the German manufacturers who had supplied U-505's original components received enquiries for replacements, all generously did so at no cost to the museum.

In 1989, U-505 was designated a National Historic Landmark and in 2004, the museum moved her to a new underground, covered, climate-controlled location protected from the elements. The fully restored U-505 reopened to the public in 2005. 

COS News – Week ending 2 November 2012
Issue No. 233       

BUSINESS 0F SHIPPING – FINAL OPPORTUNITY FOR 2012
There’s still space for a few more signups for our final one day course of 2012 which will be held at the Vancouver Club on November 14. Join us for an educational and entertaining day – registration form attached. The course is presented in conjunction with the Institute of Chartered Shipbrokers (Canada) and consists of six modules presented by your industry colleagues.
 

PORT METRO VANCOUVER – NOTICE OF FEE AMENDMENTS
Port Metro Vancouver has issued a Notice of Fee Amendments to take effect on January 1, 2013.  The amendments include a 2.9% increase in wharfage, a 3.9% increase in berthage plus the introduction of incentive for encouraging container vessels’ on-time performance.  While there are no changes to harbor dues, the Notice confirms the implementation of the revised EcoAction program.
 

PMV SOUTH SHORE TEMPORARY CLOSURE OF CLARK DRIVE
The South Shore Corridor Project (SSCP) will require a temporary two week closure of Clark Drive Overpass to facilitate re-alignment of the lanes and updates to the VACS Gates.  This temporary closure will commence the evening of Sunday November 18th, 2012 with the re-opening on the evening of Friday November 30th, 2012. This temporary closure will reduce the construction timeline for this phase of the SSCP by 50%.

During this closure, PMV will assign a roadside guard to this location to assist in directing traffic.  In the event of an emergency, the construction contractors are committed to ensuring that one lane is accessible for all emergency vehicles.  For the latest update visit: http://southshorecorridorproject.com/.

 

IMO MARPOL ANNEX V – PREVENTION OF POLLUTION BY GARBAGE FROM SHIPS – EFFECTIVE 2013
Under Annex V of the Convention which takes effect on January 1 2013, garbage includes all kinds of food, domestic and operational waste, excluding fresh fish, generated during the normal operation of the vessel and liable to be disposed of continuously or periodically. Annex V totally prohibits of the disposal of plastics anywhere into the sea, and severely restricts discharges of other garbage from ships into coastal waters and "Special Areas".  The Annex also obliges Governments to ensure the provision of reception facilities at ports and terminals for the reception of garbage. The special areas established under Annex V are:

• the Mediterranean Sea
• the Baltic Sea Area
• the Black Sea area
• the Red Sea Area
• the Gulfs area
• the North Sea
• the Wider Caribbean Region and
• Antarctic Area 

A simplified explanation of the 2013 requirements is attached to this newsletter.
 

JAPAN TO IMPLEMENT 24 HOUR ADVANCE FILING IN 2013
Japan Customs has announced the implementation of 24 hour online pre-load filing requirements for containerized cargo effective March 2014. The initiative is formally to be known as Advance Filing Rules (AFR) and for which the Chamber is hosting an information session along with Seatech on November 13 at 2pm in our boardroom for those having an interest.
 

PNW GRAIN HANDLERS & ILWU BACK TO NEGOTIATIONS
Contract negotiations resumed this week between the Pacific Northwest Grain Handlers Association under a mediator of the U.S. Federal Mediation and Conciliation Service. The Pacific Northwest Grain Handlers Association represents four companies: Columbia Grain, which operates a Port of Portland terminal; United Grain Corp., which has an export terminal at the Port of Vancouver in Washington; LD Commodities, operator of facilities in Portland and Seattle; and TEMCO, which has facilities in Kalama, Portland and Tacoma. Negotiations began in September with the association seeking a contract similar to that agreed to resolve the jurisdictional dispute at the Longview EGT grain terminal including 12 hour shifts.

Meanwhile in our own back door, a group of North Shore residents has come out strongly again Richardson International’s plans for expansion. The company plans to invest $120 million in expansion at its Vancouver North Shore grain terminal representing a capacity increase from the current 3 million up to 5 million tons/year.


BC FERRIES PUBLIC HEARINGS ON COSTS AND SERVICES
Earlier this week BC's Transportation Minister, Mary Polak, announced the start of public consultations on the future of coastal ferry service in British Columbia.  The public process was created in response to a report by the province's independent ferry commissioner that said the BC Ferries Corporation and the government must consult the public about the future of the service.  The consultations will run until December 21st - information can be found at www.coastalferriesengagement.ca.
 

DAVIE SHIPYARD BACK IN BUSINESS

The troubled Davie Shipyard in Quebec has secured a new suitor in the form of Zafiro Marine. Investment Quebec has recommended to the Quebec government that the deal be approved and on which basis the yard is expected to be active again in early 2013. The yard currently has contracts for three vessels for the offshore contractor “Cecon” which itself is aligned with Zafiro Marine in the offshore pipe-laying market. Zafiro Marine manages and operates a fleet of specialized offshore vessels involved in topside and subsea construction, pipe-laying and saturation diving.
 

SS BEAVER MEDAL AWARDS
On November 20, 2012 the Maritime Museum of British Columbia will award the SS Beaver Medal for Maritime Excellence to three outstanding contributors to the marine sector of our Province.  The 2012 winners are naval architect Robert G. Allan, maritime lawyer Peter G. Bernard QC, and marine industrialist Dennis Washington. A special award will also be made this year to MV Coho which has linked Vancouver Island and the State of Washington for 57 years.   To participate in the luncheon on November 20^th at the Royal Vancouver Yacht Club, visit: http://mmbc.bc.ca/about-2/s-s-beaver-medal/ to purchase tickets or for more information. 
 

FEDNAV ORDERS NEW ICEBREAKER
Fednav and Canadian Royalties have announced the signing of a long-term contract which provides for the transportation of nickel and copper concentrates from Canadian Royalties' Nunavik Nickel Project in northern Quebec to customers in Europe as well as the import from Europe of mine supplies and equipment.  To service the contract, Fednav has placed an order with Sumitomo Corporation and Universal Shipbuilding Corporation, Japan, for the design and construction of an ice-breaking bulk carrier with a design deadweight of 25,000 tonnes.  The Polar Class 4 vessel will be built at Universal's Tsu shipyard, and will be classed by Det Norske Veritas. The scheduled delivery date is December 2013.

 

Government News

CBSA NOTICE RE TIME CHANGE
Canada Border Services Agency has advised that in order to complete the time change from the Eastern Daylight Time to Standard Time, all of the CBSA’s EDI systems will be unavailable for 120 minutes, from 01:30 (Eastern Daylight Time) until 02:30 (Eastern Standard Time). This will impact all EDI applications including: Electronic Releases, RNS, CUSDEC, CADEX, CSA, ACI Marine, ACI Air, ACI eManifest Highway, as well as Rail and Highway Cargo.
 

CUSTOMS NOTICE ON OBSCENE MATERIAL
Canada Border Services Agency has released an update to Memorandum D9-1-1, Canada Border Services Agency's Policy on the Classification of Obscene Material http://www.cbsa-asfc.gc.ca/publications/dm-md/d9/d9-1-1-eng.html
 

APCGI FUNDING AVAILABLE
Minister Fast has announced an open call for job-creating and export-enhancing infrastructure and short-sea shipping projects in British Columbia.  Funds made available under the Asia-Pacific Gateway and Corridor Initiative APGCI continue to support investments that create jobs and economic growth in local communities and ease the movement of goods, services and people to and from the fast-growing Asia-Pacific economies.  The open call for proposals, which will be formally launched in the coming weeks, is being made possible by the reallocation of approximately $50 million made available under the APGCI Transportation Infrastructure Fund.  This fund facilitates projects in British Columbia that support Asia-Pacific trade and boost the competitive advantages of the Gateway by reducing bottlenecks, addressing capacity issues and enhancing the efficiency of the transportation system.  Applications will need to be submitted by December 12, 2012. Approved projects must be completed by March 31, 2016.
 

NEW NATIONAL ADVANCED BOAT OPERATOR TRAINING FACILITY OPENS
The Honourable Gail Shea, Acting Minister of Fisheries and Oceans, announced the opening of the Canadian Coast Guard’s new $1.25 million National Advanced Boat Operator training facility. This newly constructed facility, along with improvements to existing infrastructure significantly enhance the Rigid Hull Inflatable Operator Training facility, has been operating in Bamfield since 1985.

Training at the state-of-the-art facility focuses on the advanced high-speed nature of marine Search and Rescue services from all three Coast Guard regions across Canada. The facility provides experienced professionals with the opportunity to operate a twin-engine rigid-hull inflatable boat in open and confined waters under adverse conditions.

As well as Canadian Coast Guard crews, the facility will continue to provide training to the Department of National Defence, U.S. Coast Guard, Fisheries and Oceans Canada’s Conservation and Protection Branch, Royal Canadian Mounted Police, Parks Canada, Canadian Border Services Agency and members of the Canadian Coast Guard Auxiliary/Royal Canadian Marine Search and Rescue. 
 

CCG NOTICE TO MARINERS MONTHLY EDITION
The Canadian Coast Guard has published the monthly edition of the Notice to Mariners.

International News

TROPICAL STORM SANDY

          

        satellite picture of the storm approaching the coast (left), a grounded coastal tanker on Staten Island (centre) and rearranged containers in New York (right)

The once in a lifetime storm, Hurricane Sandy, which hit the entire U.S. eastern seaboard this week resulted in major disruption to shipping and New York being declared a major disaster area with the port being closed until at least the weekend. A number of container vessels have been diverted to the Port of Virginia. By way of overall impact:

• At least 90 fatalities
• 1 million people ordered to leave their homes
• 50 million people directly affected with 8million left without power
• 18,000 flights cancelled
• NYC subway system suffered the worst damage in its 108 year history
• Manhattan hit by record storm surge of 13.7ft (4.15m) on Tuesday morning
• Entire New Jersey shoreline damaged or destroyed
• The New York Stock Exchange was closed on both Monday and Tuesday - the first time it has closed for two consecutive days due to weather since 1888.

     

Two crew members from the sailing ship HMS Bounty died, including the captain, when she sank in mountainous seas off the coast of North Carolina on Monday. The USCG saved 14 other crew members. The vessel was a purpose built replica of the ship of the same name famous for the mutiny of its crew in the 18th Century. Built for the 1962 film Mutiny on the Bounty, she was on passage from Connecticut to Florida when she began taking on water on Sunday night. One can only assume that it was a serious miscalculation for her to have been at sea in such a well predicted and dangerous storm. The non-profit maritime heritage organization “Tall Ships America”, of which the HMS Bounty was a member, released a statement on Tuesday expressing its condolences to those effected by yesterday’s tragedy and asked for the public’s cooperation in allowing a full investigation prior to placing blame. The official USCG recording of the rescue operation has been posted to You Tube and is well worth watching http://www.youtube.com/watch?v=UDlc1slA8PA

Whilst the Captain’s body remains missing, the body of crew member Ms. Claudene Christian was recovered by the USCG. Ms Christian was the great-great-great-great-great granddaughter of Fletcher Christian, the first mate who took command of the original HMS Bounty from the infamous Captain William Bligh in the 1789 mutiny.

On the other side of the world off the Port of Chennai, India, five crew members are missing after the tanker Pratibha Cauvery ran aground this week in a cyclone that hit the country’s south-eastern coast.

ILWU CHALLENGES PLANS FOR NEW SEATTLE STADIUM

The ILWU has filed a legal challenge recently approved plans to construct a new sports arena near the Port of Seattle. The union is contending that a new arena can be built anywhere and should not impact prospects for future growth in the port. The approved plan includes a $40 million road improvement fund to be covered by tax revenues which would improve access to the proposed new NHL-NBA arena. The union wants the city and county’s approval of the arena deal declared invalid under the Washington state Environmental Policy Act.
 

EU CONFIRMS LOW SULPHUR FUEL REGS
The European Council has confirmed the region’s intent to fully implement the next stage of ECA standards in 2015. However, the Council has gone further by requiring ferries and other passenger carrying vessels in European waters, but outside the ECA, to consume fuel having maximum sulphur content of 1.5%. Additionally the Council has confirmed a sulphur limit reduction outside the ECA to 0.5% for all shipping will take place regardless of the outcome of a 2018 IMO study that may see the IMO defer its global reduction to 2025. Of consolation to many unhappy owners, the directive also includes a recommendation to support the investment costs faced by owners in becoming compliant, particularly through accepted alternative technologies.

 

US ADOPTS ANTI-FOULING SYSTEMS CONVENTION
The U.S. Coastguard has announced that with effect from November 21, U.S. flagged vessels and all foreign flagged vessels operating in the internal waters of the United States will be required to comply with the applicable portions of the new AFS Convention. The Convention was adopted by the IMO to prohibit the use of harmful organotins in antifouling paints used on ships and to establish a mechanism to prevent the potential future use of other harmful substances in anti-fouling systems. USCG Port State Control Officers (PSCO) will examine a vessel's International Anti-Fouling System (IAFS) Certificate or Declaration on Anti-fouling Systems, and the attached Record of Anti-fouling Systems (ROAFS), if appropriate. Under the AFS Convention (Annex 4, Regulation 1) an initial survey must be carried out for a new construction vessel or an existing vessel before the IAFS Certificate is issued for the first time.
 

IRAN KEEPS THE OIL FLOWING IN SPITE OF SANCTIONS
International sanctions on Iran are hurting but they are not yet proving to be life threatening. Whilst recorded export volumes continue to fall, for the time being China, India South Korea and Japan all continue to provide a market. Iran earns up to 80% of its foreign exchange in oil revenues with sanctions now estimated to be costing the country $100m a day. A six-month waivers permits 20 countries to progressively buy decreasing volumes of oil from Iran, without infringing US sanctions, however virtually all exports to European countries have ceased, not least because tanker owners and operators have pulled from the market. Saudi Arabia, Oman, Iraq and the United Arab Emirates have all increased production to cover the loss of Iranian oil in world markets.

 

Market Update

Recent improvements in the Capesize market continue to underpin overall sentiment but there is a very long way to go before owners with be popping champagne corks. The Baltic Dry Index closed on Thursday on the nice round number of 1000 points.

                                              Cape Size       Panamax         Supramax
Index                                         2355               770                    671          
One week ago                            2451               804                    699
Spot time charter                 $15,800/day     $6,200/day        $7,000/day
One week ago                     $16,800/day     $6,400/day        $7,300/day

 

Upcoming Events

DISCUSSION ON JAPAN’S ADVANCE FILING RULES
Nov 13 – The Chamber of Shipping is hosting an information session on November 13^th from 14:00 with Mr. Hidetoshi Aramaki of Japan NCSS to address the new 24-hour Advance Filing Rules (AFR) to be implemented in March 2014.  All container cargo destined for Japan will need to comply with the AFR – for more information visit: http://www.customs.go.jp/english/summary/advance/index.htm.  To register for the session please email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

COS BUSINESS OF SHIPPING COURSE
Nov 14 – See the attached registration form for details on the next full day Business of Shipping course to be held in Vancouver.

TRANSPORTATION CLUB – NSR PUB NIGHT
Nov 16 – The popular No Serious Reason (NSR) pub night returns to Moose’s Down Under.  For more information or to arrange for tickets contact Frank Siemens at tel: 604-635-3555.

ANNUAL PLIMSOLL FALL BANQUET
Nov 23 - The Plimsoll Club will return to the Waterfront Hotel this year for its annual event.  This year’s organizing committee has arranged for guest speaker, the Honourable Marc Garneau, MP and President of the Canadian Space Agency.   Discounted tickets for bookings received by October 31^st.  See attached for more information on contact Renae Warnock at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

ICS PUB NIGHT
Nov 27 – The Institute of Chartered Shipbrokers Canada will host a pub night on November 27^th from 5pm at Mahoney & Sons Public House located at the Vancouver Convention Centre.  To RSVP please email is This e-mail address is being protected from spambots. You need JavaScript enabled to view it . 

BC MARINE INDUSTRY CONFERENCE
Nov 28/29 - The BC Marine Trades Association’s next BC Marine Industry Conference is being held on November 28^th & 29^th at the River Rock Casino Resort. Information is available at http://www.bcmta.com/.

MARINERS’ WORKSHOP
Feb 6/7 – The Shipping Federation of Canada in conjunction with the Chamber of Shipping and other local groups are hosting a Mariners’ Workshop at the Terminal City Club in Vancouver.  A block of rooms has been set aside for the workshop at the Terminal City Club at rates starting from $153/night.  For more information and to view the draft agenda see attached registration form.

Nov 7                Plimsoll Club Board of Directors Meeting @ 12:00
Nov 8                Greater Victoria Harbour Authority Open House
Nov 12              Office Closed – Remembrance Day
Nov 13              Advance Manifest Requirements for Japan @ 14:00
Nov 14              COS Business of Shipping – full day course|
Nov 15              COS Board of Directors Meeting @ 11:30
Nov 16              COS Navigation & Pilotage Committee Meeting @ 10:00
Nov 16              Vancouver Transportation Club – Pub Night
Nov 19              COS Ship & Port Operations Committee Meeting @ 11:30
Nov 19              Mission to Seafarers Board of Directors Meeting
Nov 20              SS Beaver Medal Awards Luncheon @ 12:00
Nov 22              VMAA Lunch Seminar (tbc) @ 12:00
Nov 22              COS Members’ Appreciation Night
Nov 23              Plimsoll Club Fall Banquet
Nov 28/29         BC Marine Industry Conference
Dec 5               COS Board of Directors Meeting
Dec 6               VMAA Board of Directors Meeting
Dec 7               Vancouver Grain Exchange AGM & Lunch

Ship of the Week

 

      Subsea Equipment Support Vessel Skandi Santos

Skandi Santos is a subsea construction and installation vessel that is currently installing subsea trees on fields in Brazil on a long-term contract with Petrobras, the State oil company. She is purposely designed and equipped for deepwater subsea equipment installation, intervention or recovery, and represents a first class field construction platform for deep and ultra-deep waters. The unit is environmental friendly with focus on low fuel consumption, low exhaust emissions, and has precautions in accordance with DNV’s Clean Design requirements incorporated into the vessel design.

Built 2009 by STX Offshore Aukra, Norway
LOA 120.7 m
Beam 23.0m
GRT 9074 tons
Engine capacity 11,880 KW
Speed 15 knots
Accomodation for 120 crew and support staff

     

The unit is environmental friendly with focus on low fuel consumption, low exhaust emissions, and has precautions in accordance with DNV’s Clean Design requirements incorporated into the vessel design.

The ship’s main features are:

• Ultra deepwater capabilities
• Installation, testing and maintenance of subsea modules
• Rapid module deployment
• ROV with possibility to launch ROV in moonpool, on starboard side and port side
• Subsea construction and maintenance work
• Helideck for Sikorsky S-92

Capable of operating at depths of up to 3000 meters, the vessel’s Class 3 dynamic positioning and classification makes for a secure and flexible working platform with a large operational window for subsea intervention, installation and construction work in rough weather and sea conditions around the world. Skandi Santos comes with a 250 mt capacity crane with inbuilt compensation for operations in heavy weather. She also has a skidding system with pallet capacities of 125 mt in the moonpool area and 50 mt outside, which enables safe and reliable equipment handling in any weather conditions. DNV’s “Clean Design” requirements incorporated into the vessel include focus on low fuel consumption and low emissions.

  

Founded in 1953, Petróleo Brasileiro S.A. or Petrobras is a semi-public Brazilian multinational energy corporation headquartered in Rio de Janeiro. It is the largest company in the Southern Hemisphere by market capitalization and the largest in Latin America measured by revenues. While the company ceased to be Brazil's legal monopolist in the oil industry in 1997, it remains a significant oil producer, with output of more than 2 million barrels (320,000 m³) of oil equivalent per day, as well as a major distributor of oil products. Petrobras has become a world leader in development of advanced technology from deep-water and ultra-deep water oil production and also owns a number of oil refineries.

Increasing domestic oil production has been a long-term goal of the Brazilian government, and recent discoveries of large offshore, pre-salt oil deposits could transform Brazil into one of the largest oil producers in the world. It is estimated that Brazil has 12.9 Bbbl of proven oil reserves, the second-largest in South America after Venezuela.  More than 90% of Brazil's oil production is offshore in very deepwater, and consists of mostly heavy grades. Most of the international oil majors also play a leading role in Brazilian production.  In September 2010 Petrobras conducted the largest share sale in history, when US$72.8 billion worth of shares in the company were sold on the Brazilian stock exchange making Petrobras immediately the fourth-largest company in the world measured by market capitalization.

 

COS News – Week ending 26 October 2012
Issue No. 232       

PORT METRO VANCOUVER TO PRESENT DRAFT CONTAINER DRAYAGE STRATEGY
On October 28th PMV will present its draft container drayage strategy.  A consultation process has helped to inform this draft strategy as a broadly supported long-term vision for the drayage sector.  This meeting will bring together all interested parties including trucking companies, owner-operators, drivers, businesses and community representatives.  To register, please email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it or call 604-665-9066.
 

CONSULTATIONS ON US-CANADA REGULATORY ALIGNMENT

The Ship & Port Operations Committee met last week with consultants working on behalf of the Privy Council Office to identify the potential benefits to the marine transportation sector should Canada and the US pursue harmonization of certain regulatory requirements.  Included in the scope of their study is the potential harmonization of the 96-hour pre-arrival data with the US Notice of Arrival.  The study is being conducted under the Regulatory Cooperation Council in cooperation with Transport Canada.  A number of suggestions were tabled at our meeting to support a perimeter approach to marine security and plant protection.  Attached is the introductory letter on the mandate of the study as well as a list of questions intended to gather input from stakeholders and quantify the potential benefits of harmonization. 
 

PMV STARTS PROJECT DEFINITION CONSULTATIONS ON T2

Port Metro Vancouver has commenced Project Definition Consultation regarding the proposed Roberts Bank Terminal 2 Project.  As part of this consultation, which will run between October 22, 2012 and November 30, 2012, Port Metro Vancouver is presenting information regarding the conceptual project design, as well as seeking input regarding elements of the project related to refining the design and developing environmental mitigation plans. To learn how you can participate, as well as view the consultation schedule, click here.
 

RECORD CRUISE YEAR AT OGDEN POINT
The last cruise ship of the season, the MS Zaandam, departed from Ogden Point on Wednesday, October 24, marking the end of Victoria’s busiest cruise season.  Victoria was visited by 224 vessels bringing a total of 503,675 passengers from April to October 2012.   The growth in volume of ship visits and passengers is accompanied by Greater Victoria Harbour Authority (GVHA) continued efforts to mitigate the impacts of cruise activity. The first Ogden Point Eco Awards were given out this season to recognize cruise lines that consistently burned low-sulphur fuel while at berth in Victoria in 2011. Norwegian Cruise Line and Princess Cruises were recognized for their commitment to improve local air quality around the port.  

OBITUARY: DAVID BRANDER-SMITH, Q.C.
David Brander-Smith, Q.C., is perhaps best known in marine circles for his report on Tanker Safety and Marine Spills Response Capability. While the report was written in 1990 - over 20 years ago - it is still widely recognized as one of the most comprehensive reports on the issue and is still referenced today. Mr. Brander-Smith passed away peacefully in Vancouver on October 17, 2012. He was 86 years old. Predeceased by his wife, June Brander-Smith in 2007, Brander-Smith leaves three daughters -- Gail, Sandra and Cynthia -- and 10 grandchildren.

After serving overseas in the Canadian Navy and Merchant Service, surviving the torpedoing of the Nabob in 1944, he graduated from the University of British Columbia in 1950 and practised law at Bull Housser and Tupper, specializing in international maritime law. In 1989, he served as Chairman of the Public Review Panel on Tanker Safety and Marine Spills Response Capability and then went on to serve as a member of the Fraser River Sockeye Public Review Board. He was active on many professional and community boards including President of the Canadian Maritime Law Association, Chairman of the Directors' Advisory Board of the Institute of Ocean Sciences and Chairman of the B.C. Arthritis Society.

Brander-Smith was an accomplished sailor, an avid traveller, an automobile aficionado, a well respected lawyer and a devoted family man and friend. Services will be held at St. Mary's Anglican Church, Kerrisdale on Friday, October 26 at 3:00 pm. In lieu of flowers, donations may be made to the Alzheimer's Society of Canada or the B.C. Arthritis Society. (source: www.bcshippingnews.com)
 

BUSINESS OF SHIPPING COURSE – FINAL OPPORTUNITY FOR 2012
The final Business of Shipping course for 2012 is scheduled to take place in Vancouver on November 14. This one day course is designed for those in the industry wanting to broaden their horizons or anyone considering a maritime career. Please join us for a fully catered and enjoyable day of learning – see the attached flyer for registration details.
 

GREEN TECH 2013 CALL FOR PAPERS
Green Marine has issued a call for papers for Green Tech 2013.  For more information visit: http://www.green-marine.org/images/stories/GreenTech2013/call_for_papers_autonome.pdf.
 

COUNCIL OF MARINE CARRIERS OFFICE MOVE
From November 1, 2012, the offices of the Council of Marine Carriers will move to #215-3989 Henning Drive, Burnaby, B.C. V5C 6N5.  Telephone, Fax and Emails remain unchanged.

Government News

CBSA SEIZES A RECORD 14 TONNES OF PRECURSOR CHEMICALS
The Canada Border Services Agency (CBSA) officers at the Prince Rupert Container Examination Facility seized over 14 tonnes of precursor chemical earlier this week. This represents the largest precursor chemical seizure on record for the CBSA in Prince Rupert. 

In early September, CBSA officers examined a shipment originating from China, and declared as glycerin. Upon further examination of the 552 jugs, CBSA officers found them to contain four precursor chemicals used to make drugs like methamphetamine, MDMA (ecstacy), and gamma-butyrolactone (date-rape drug). This is the third precursor chemical seizure at Prince Rupert Port in the last two years. There have been no arrests associated with this seizure at this time, but the matter remains under investigation.
 

PRINCE RUPERT PILOTS INTEGRATED CARGO SECURITY STRATEGY
Canada and the United States announced the official launch of the Prince Rupert pilot project that will facilitate greater trade and strengthen cargo security at the Canada-U.S. border as part of the Integrated Cargo Security Strategy in the Beyond the Border Action Plan.  The pilot project, in operation since October 1, 2012, is located at the Port of Prince Rupert and focuses on marine cargo. It is based on a harmonized approach developed by Canada and the United States which allows for the screening of inbound cargo arriving from offshore. As a result, there is increased security and the expedited movement of secure cargo across the Canada-U.S. border under the principle of "cleared once, accepted twice".  

International News

NEW SUPPORT IN FIGHT AGAINST ECA REGULATIONS
The Resource Development Council (RDC) is supporting the Alaska State Governor in its move to intervene in litigation against the federal government and its new emission rules imposing a 200-mile emissions control area (ECA) off most of Alaska’s coast. The state is requesting the EPA to withdraw the ECA, perform the proper studies, consider and balance the impacts and costs to Alaska jobs and families, allow all Alaskans to review accurate information and provide comment, and follow the proper procedures before imposing any new rules.
 

RENA OWNER FINED BY NEW ZEALAND
Daina Shipping, the registered owner of the container ship Rena, was fined NZ$300,000 (about US$246,667)in the Tauranga District Court in New Zealand, after entering a guilty plea to a charge relating to the discharge of harmful substances, following the grounding and subsequent sinking of Rena off the coast of New Zealand in October 2011.

The company was charged under sections 338(1B) and 15B of the Resource Management Act 1991.

Rena was carrying a variety of materials defined under New Zealand's Resource Management (Marine Pollution) Regulations 1998 as contaminants, including heavy fuel oil and other oils; 32 containers of dangerous goods, including 500 tons of ferrosilicon, 40 tons of hydrogen peroxide and more; and other items, such as cement, machinery parts and other products.
 

LACK OF FREIGHT POLICY COULD INCITE DIVERSONS
The Federal Maritime Commission (FMC) Commissioner Mario Cordero believes that  the central message of a study by the Federal Maritime Commission on the impact of the harbor maintenance fee on cargo routing might well be that the lack of a national freight policy, rather than the burden of the tax itself, is compromising the competitiveness of US ports.

Emphasizing that he was offering his opinion to guests at the Los Angeles-Long Beach Propeller Club rather than speaking for the commission as a whole, Cordero said the FMC study determined for sure that Canada is in not violating U.S. law through its transportation policies.  As for its impact on cargo routing, Cordero said the fee is one of a number of factors including port efficiency and costs, risk mitigation, frequency of ocean and intermodal services and related commercial benefits that importers consider when routing their shipments.

Cordero believes Canada’s national freight transportation policy, with its emphasis on infrastructure development, corridors of national significance and leveraging public-private partnerships, gives its ports a competitive advantage.
 

ILWU AND US GRAIN TERMINAL TALKS TO RESUME NEXT WEEK
Pacific Northwest grain terminals and the International Longshore and Warehouse Union have agreed to resume contract negotiations on Oct. 29 under the auspices of the Federal Mediation and Conciliation Service.

The ILWU contract with four grain terminals in Oregon and Washington was set to expire on Sept. 30, but as that deadline approached, both sides agreed to extend the deadline until Oct. 24.

Both parties then agreed to enlist the participation of the FMCS, and Cohen announced on Oct. 18 that the talks would resume on Oct. 29.

Market Update

                                                 Cape Size          Panamax           Supramax
Index                                             2451                  804                     699 
One week ago                                2217                  879                     732
Spot time charter                       $16,842/day       $6,424/day         $7,304/day
One week ago                           $14,380/day       $7,020/day         $7,652/day
One Year Ago                           $28,214/day      $15,521/day       $16,155/day    

Upcoming Events

DNV MLC 2006 CONVENTION COURSE
Nov 1 – The MLC 2005 course will be held in Vancouver on November 1^st.  This one-day workshop is designed to provide participants with an overview of the requirements necessary to comply under the ILO Maritime Labour Convention (MLC), which provides the most comprehensive code to date that addresses seafarers rights and the obligations of Flag States and ship owners with respect to these rights. For more information visit DNV Academy Maritime.

COS BUSINESS OF SHIPPING COURSE
Nov 14 – See the attached registration form for details on the next full day Business of Shipping course to be held in Vancouver.

TRANSPORTATION CLUB – NSR PUB NIGHT
Nov 16 – The popular No Serious Reason (NSR) pub night returns to Moose’s Down Under.  For more information or to arrange for tickets contact Frank Siemens at tel: 604-635-3555.

ANNUAL PLIMSOLL FALL BANQUET
Nov 23 - The Plimsoll Club will return to the Waterfront Hotel this year for its annual event.  This year’s organizing committee has arranged for guest speaker, the Honourable Marc Garneau, MP and President of the Canadian Space Agency.   Discounted tickets for bookings received by October 31^st.  See attached for more information on contact Renae Warnock at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

ICS PUB NIGHT
Nov 27 – The Institute of Chartered Shipbrokers Canada will host a pub night on November 27^th from 5pm at Mahoney & Sons Public House located at the Vancouver Convention Centre.  To RSVP please email is This e-mail address is being protected from spambots. You need JavaScript enabled to view it . 

BC MARINE INDUSTRY CONFERENCE
Nov 28/29 - The BC Marine Trades Association’s next BC Marine Industry Conference is being held on November 28^th & 29^th at the River Rock Casino Resort. Information is available at http://www.bcmta.com/.

MARINERS’ WORKSHOP
Feb 6/7 – The Shipping Federation of Canada in conjunction with the Chamber of Shipping and other local groups are hosting a Mariners’ Workshop at the Terminal City Club in Vancouver.  A block of rooms has been set aside for the workshop at the Terminal City Club at rates starting from $153/night.  For more information and to view the draft agenda see attached registration form.

Oct 30              VMAA Board of Directors Meeting @ 12:00
Oct 31              WMC PACMAR/NANS
Nov 8                Greater Victoria Harbour Authority Open House
Nov 14              COS Business of Shipping – full day course
Nov 15              COS Board of Directors Meeting @ 11:30
Nov 16              COS Navigation & Pilotage Committee Meeting @ 10:00
Nov 16              Vancouver Transportation Club – Pub Night
Nov 22              COS Members’ Appreciation Night
Nov 23              Plimsoll Club Fall Banquet
Nov 28/29         BC Marine Industry Conference

Ship of the Week

Subsequent to the successful introduction of Gearbulk’s uniquely designed “Totally Enclosed Forestry Carriers” (TEFC) Grouse, Mozu & Swift Arrow, trading between BC, Japan and South Korea, a similar exercise for the Canadian east coast resulted in the construction of Jaeger Arrow.

Built 2001 by Hyundai Mipo Dockyard, Ulsan, South Korea

Owned and operated by Gearbulk Shipping

LOA 171.4m
Beam 24.8m
GRT 29,103
DWT 23,529 MT
2 x SWL 36 MT telescopic gantry cranes
Speed 17.5 knots

  

Jaeger Arrow is a much scaled down and more streamlined version of her larger sisters.  In addition to carrying dry cargoes (primarily pulp, paper & aluminum) she is fitted with dedicated liquid pitch tanks to service the needs of east coast aluminum smelters.