On May 30, 2012, Transport Canada Marine Safety is launching a national process which will apply and calculate the fees for vessel inspection and services set out in the Board of Steamship Inspection Scale of Fees. This Marine Safety dispatch and tracking process will ensure inspection and service fees are consistently and uniformly applied across Canada which may result in changes in your invoices.

 More information is available by consulting Transport Canada's Ship Safety Bulletin, web site and guidance documents.

 For more information please contact the Regional Marine Safety office:

• From TCMS Website:  http://www.tc.gc.ca/eng/regions.htm
• By toll free phone: 1-866-995-9737
• By Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

COS News – Week ending 11 May 2012
Issue No. 208

PRINCE RUPERT FASTEST GROWING NORTH AMERICAN CONTAINER HUB

The Journal of Commerce has reported Prince Rupert as the fastest-growing container port in North America in 2011.  While 2011 imports increased 20.5 percent, the 59.1 percent growth in exports helped push the port into top spot.  Mexican container ports led in 2011 import with a 16.2 percent increase, outperforming overall Canadian ports increase of 3.6 percent and US ports, 3 percent.

CANDA PLACE – HIGH VOLUME CRUISE PASSENGER DAYS

On Friday, May 11, 2012 and Saturday, May 19, 2012, cruise passenger volumes at Canada Place and Ballantyne cruise terminals are expected to peak, reaching between 13,000 and 20,000 embarking and disembarking passengers on each of the days. This peak will occur between 7:00 am and 5:00 pm. On these two high volume days, higher than normal vehicle traffic volumes are anticipated in the downtown core, along with increased demand for taxis and the use of public transportation.

WHITE ROCK PROTESTORS ARRESTED AFTER BLOCKING COAL SHIPMENT

About a dozen people were arrested last weekend after protesters in White Rock tried to block a coal shipment arriving by rail for export from BC ports.  The protesters, from British Columbians for Climate Action, were arrested and released after being served with $115 tickets for trespassing on railway property. 

Government Updates

AMENDMENTS TO THE COASTAL FERRY ACT 

In response to the independent BC Ferry Commissioner’s review, the provincial government introduced amendments to the Coastal Ferry Act.  Amendments to the act give the commissioner more flexibility to determine the amount of revenue needed to sustain operations and support ongoing investment. The commissioner will also be given additional responsibility to oversee the costs of providing the ferry service. These changes will help reduce the pressure on fares.  In addition to the legislative changes:

• The government will increase its financial contribution to BC Ferries by $79.5 million to reduce the pressure for higher fares.
• BC Ferries will need to find efficiencies to reduce operating costs.
• There will be significant adjustments to service levels, and discussions with communities about trade-offs among service adjustments, fare increases and potential community contributions.
• In addition, government will seek public input to develop strategies to support a vision for connecting coastal communities.

Other News

US CRUDE OIL IMPORTS BY SEA CONTINUE TO DECLINE

Crude oil imports to the US by sea show no signs of recovery and in fact continue to decline. Lloyd’s data indicates that over the past 5 years, imports have declined from 9.6 to 7.4 million barrels/day which annualized equates to a decline of 110 million tons/year. The primary supply side serving the US is South America, the Middle East and West Africa with Saudi Arabia being the single largest individual supplier. As US refineries continue to close, demand for externally sourced refined products is increasing.

On the other side of the world, before the end of this year a new pipeline which bypasses the ever sensitive Strait of Hormuz will begin pumping around 1.4m barrels per day of crude from Abu Dhabi to Fujairah. Whilst only a fraction of what moves through Hormuz by tankers on a daily basis, this is a first step to circumvent Iranian threats to close the Strait.

Please see the link to the April 2012 tanker market update from Teekay’s Market Analyst Christian Waldegrave on the bridge on the Nassau Spirit when she recently called Vancouver.

http://www.youtube.com/watch?v=aswHwym0zKU

PIRATES TAKE PRODUCT TANKER CARGO OFF TOGO

Pirates have released the product tanker BW Rhine off Nigeria coast after helping themselves to a slice of the 55,000 tons of gasoline onboard. The vessel had been held incommunicado for a week after seizing her in the “security patrolled” anchorage in Lome, Togo. Readers are requested to report the emergence of new gas stations in Togo in the coming weeks.

                    M.V. BW Rhine                                                                                                                                        M.V. Smyrni

According to a reports earlier today, Somali pirates have hijacked the 150,000 DWT products tanker Smyrni approximately 450NM South East of Salalah, Oman whilst in the International Transit Corridor. It appears that she did not employ an armed security team onboard. The recent decision to extend the mandate of EU Navfor to include the Somali coast and territorial and internal waters to an area 1.5 times the size of Europe is proving to be a further stretch on naval forces. EU Navfor capacity typically comprises four to seven surface combat vessels and two to three maritime patrol and reconnaissance aircraft.

COSTA CONCORDIA SALVAGE

An interesting video has emerged from Titan Salvage, which was successful in being awarded the contract, as to how they might go about the operation.

PANAMA’S CONTAINER HANDLING CAPACITY SET TO GROW SUBSTANTIALLY

Panama’s Maritime Authority has approved construction and operation of a new container terminal at the Atlantic entrance to the Panama Canal. Phase one of the $600 million and 2million TEU capacity Panama Colón Container Port Terminal is scheduled to open in late 2014 to coincide with the expected commissioning of the enlarged Canal. The plan calls for capacity to handle vessels of up to 18,000 TEU. Existing facilities include Evergreen’s Colón Container Terminal and Manzanillo International Terminal, operated by Stevedoring Services of America. In addition, Panama Ports Co, part of Hutchison Port Holdings, manages the container port terminals at Balboa, on the Pacific Ocean, and Cristobal on the Atlantic Ocean.

                                     Colon Container Terminal (left) and Manzanillo International Terminal (right)

HMS OCEAN POSITIONED AS UK OLYMPIC MARITIME SECURITY HQ

A Royal Navy helicopter carrier, HMS Ocean, is now moored on the River Thames at Greenwich, London to undertake exercises as the maritime security command and control centre for the London Olympics. The exercises involves a wide range of capabilities being rehearsed over a nine-day period beginning last weekend, including the testing of air defense missile systems at sites around London and the use of the Typhoon fighters stationed at a nearby Royal Air  Force base. The London Olympics will run from July 27 to August 12.

Market Update

A generally quiet week with the Baltic Dry Index closing on Thursday on 1146 points, compared to 1157 points last week and 1148 points the week before.

                                       Cape Size         Panamax        Supramax

Index                                   1618                1350                1116
One week ago                  1527                1635                1108
Spot time charter         $8,800/day     $10,800/day     $11,700/day
One week ago              $7,100/day    $13,000/day      $11,600/day

Upcoming Events

ICMA XVIII - REGISTRATION

May 13 – 18 - The Vancouver Maritime Arbitrators Association, (VMAA), invites you to the International Congress of Maritime Arbitrators, ICMA XVIII, to be held at the Pan Pacific Hotel, Vancouver British Columbia, Canada. ICMA provides a forum for arbitrators, national maritime arbitration associations, marine insurers, ship owners, charterers, cargo interests and the legal community from around the world to come together to exchange views and developments. After 21 years ICMA returns to Vancouver in 2012.  For more information or to register, visit www.icma2012.com

COW BAY PUBLIC OPEN HOUSE

May 15 - The Prince Rupert Port Authority is holding an open house on Tuesday, May 15th from 6 to 8 pm at the Crest Hotel to unveil the vision for Cow Bay, on the Prince Rupert waterfront.  Input from community stakeholders lead to the master development plan for the area designed by Office of Mcfarlane Biggar Architects & Designers Inc. (OMB).

PORT SECURITY CONFERENCE

May 15 – 17 – The 2012 Canadian Port and Maritime Security Conference will be held this year at the Coast Coal Harbour Hotel in Vancouver, BC.  For more information visit: www.portsecure.ca

PLIMSOLL CLUB ANNUAL SPRING GOLF TOURNAMENT

May 16 – The Plimsoll Club will be holding this year’s golf tournament at the University Golf Club.  For more information and to register your foursome, see the attached flyer or contact Renae Warnock at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

GREEN MARINE ANNUAL CONFERENCE – GREEN TECH 2012

May 29 – 30 – Green Tech 2012 will be held this year in Quebec City at the Loews Hotel Le Concorde.

This will be Green Marine’s 5th edition of its annual conference on green technologies and innovation in marine transportation. Detailed information and registration forms for exhibitors and participants are available on Green Tech 2012 website: www.green-marine.org/annual-conference.

PACIFIC PILOTAGE AUTHORITY ANNUAL GENERAL MEETING

May 31 – The PPA will hold its Annual General Meeting on Thursday, May 31^st at 3pm at Simon Fraser University, Harbour Centre Room 7000, 515 West Hastings Street, Vancouver.  The agenda includes the 2011 financial report, an operational overview and expectations for 2012 and beyond.  To RSVP, please email Diane Street at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or phone 604-666-8688 by Monday, May 21^st.

BC CHAMBER OF COMMERCE SUMMIT

June 4 – 5 – The BC Chamber of Commerce is hosting a Transportation Summit on “Shipping and Exports to the Asia Pacific”   Wolfgang Freese, President of Hapag-Lloyd Region Americas was added to the list of noteworthy speakers and panelists.  The early bird rate for registration expires on May 18^th.  To view details and to register, visit www.bcchambersummit.ca.

BUSINESS OF SHIPPING COURSE – NANAIMO, BC

June 7 – The Chamber of Shipping of BC and the Institute of Chartered Shipbrokers will hold its next full day course in Nanaimo.  Details of the course content and registration form are attached.

VANCOUVER GRAIN EXCHANGE GOLF TOURNAMENT

June 15 - This year’s golf tournament will be held at Quilchena Golf & Country Club on June 15^th.  Proceeds from the 50/50 draw will benefit Wigs for Kids.  For more information contact Caroline Simister at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

ARCTIC SHIPPING UPDATE

June 21 – A half-day morning session is planned to discuss developments in Arctic Shipping with the Canadian Coast Guard.  Further details to follow.

MARITIME LOW EMISSIONS CONFERENCE – TACOMA, WA

June 28 - The Chamber of Shipping in conjunction with the Pacific Merchant Shipping Association will be holding a US-Canada full day session on the implementation of the Emissions Control Area on Thursday, June 28^th from 0800 to 1700 hrs in the Hotel Murano in Tacoma, WA.  Registration details to be provided in due course.

MARITIME SECURITY CHALLENGES (MSC) 2012

Oct 1–3 – The 5^th annual conference presented by Maritime Forces Pacific and Royal Roads University will take place in Victoria, BC and will address the illegal movement of people and goods at sea, security issues in the Gulf of Guinea, maritime applications of unmanned and autonomous vehicles, and shipbuilding and future naval requirements. To register or for more information on the conference or sponsorship opportunities visit: http://mscconference.ca/

May 13-18       International Congress of Maritime Arbitrators XVIII Conference
May 15-17       Port Security Conference
May 16             Plimsoll Club Annual Spring Golf Tournament
May 17             COS Liner Committee Meeting @ 12:00
May 21             Victoria Day – Office Closed
May 24             WMCC Annual General Meeting @ 09:00
May 24             WMCC Board of Directors Meeting @ 09:30
May 29             PMV Annual General Meeting
May 29-30       Green Marine Annual Conference – Green Tech, Quebec City
May 30             PACMAR / NANS Meeting @ 10:30
May 31             Pacific Pilotage Authority Annual General Meeting @ 15:00
Jun 7                Business of Shipping Course (full day) Vancouver Island Convention Centre, Nanaimo
Jun 15              Vancouver Grain Exchange Golf Tournament
Jun 21              Arctic Shipping Update

Ship of the Week

                                                                 mega yacht – Eclipse

Owned by the Russian businessman, Mr. Roman Abramovich, reputed to be the 68th richest person in the world with a fortune of $12 billion, the 163.5m long Eclipse is currently the world's largest private yacht and is believed to have cost him a cool $1.1 billion. Built at the Blohm & Voss shipyard in Hamburg and fitted out in Denmark, Eclipse features armor plating, bullet-proof windows, two helicopter pads, three launches, a midget submarine and a laser shield system for keeping the paparazzi at a distance. Guests stay in any of 11 guest cabins, each said to have having six-foot movie screens. The yacht also comes complete with expensive artwork which Mr. Abramovich has been accumulating in recent years. Approximately 70 full time crew members are gainfully employed catering to every whim of Mr. Abramovich’s guests.

The 13,000 GRT Eclipse has a top speed of 25 knots but generally cruises at a mere 22 knots. Mr. Abramovich who is also owner and Chairman of Chelsea football Club in the UK also has the burden of choosing from  his four other yachts: Sussurro, Titan, Umbra, and Luna.

Born in 1966 Mr. Abramovich is the main owner of the private investment company Millhouse LLC. He is reputed to have kick started his multi-billion-dollar business during his army service where he sold stolen gasoline to officers of his unit. In 1988 under President Gorbachev, during the unstable period known as Perestroika, Mr. Abramovich seized his opportunity and between 1992 and 1995 he founded several companies specializing in the trading of oil and oil products. Despite dubious legality, his enterprises flourished in the chaotic years under President Yeltsin and he is well known to be close to current Russian President, Vladimir Putin.

COS News – Week ending 04 May 2012
Issue No. 207

PORT METRO VANCOUVER RECOGNIZED WITH GREEN 30 AWARD

Port Metro Vancouver has been recognized as one of Aon Hewitt’s Green 30, the top 30 Canadian organizations whose employees are most positive about their record on environmental stewardship. The Green 30 list was compiled based on employee feedback using Aon Hewitt’s Employee Green Index, which focuses on employers’ environmental strategies and activities, and their efforts to consider long-term social, environmental and economic impacts when making decisions.

As part of the 2012 Best Employers in Canada and Best Small & Medium Employers in Canada studies, Aon Hewitt surveyed over 112,000 employees at more than 261 organizations regarding their employers’ commitment to environmental stewardship. Amongst the Green 30, 82 per cent of employees have a positive perception of their employers’ eco-friendly efforts, contrasted against the 30 organizations with the least positive reviews only 49 per cent were favourable.

MS ZAANDAM’S ARRIVAL KICKS OFF THE CRUISE SEASON IN PRINCE RUPERT

The Holland America Line vessel Zaandam arrived for its first visit in Prince Rupert this morning, carrying over 1,300 passengers. The ship is completing a transpacific journey that includes stops in Japan, Korea, Russia and Alaska.  Following the Zaandam's visit, vessels from Regent Seven Seas and Silver Sea Cruise Lines are scheduled to make stops in Prince Rupert in July.

CITY OF VANCOUVER MAYOR PROPOSES BY-LAW

City of Vancouver is preparing a by-law that would require pipeline operators and oil tankers using Burrard Inlet, Vancouver Harbour and/or the Fraser River to indemnify the City of Vancouver and existing local industries through appropriate liability insurance at a level equal to the projected amount of clean up operation costs, and loss of business compensation for a worst case scenario oil spill.

LOW LEVEL ROAD PROJECT REPORT RELEASED

A Consultation Summary Report, summarizing the input from the March 2012 consultations, is now available here.   Information sessions on the proposed preferred design will be held on May 12 from 10 am to 2 pm at the John Braithwaite Community Centren and on May 16^th from 4 to 8 pm at the Pinnacle Hotel.  For more information visit www.porttalk.ca.

LEMONNIER RECEIVES MARINE SAFETY AWARD

Transport Canada’s Director General Donald Roussel presented ILWU Canada’s Third Vice President, Al LeMonnier with Transport Canada’s Marine Safety Award at the national Canadian Marine Advisory Council meeting held last week.

Government Updates

CFIA CONSULTATION ON ALTERNATIVE SERVICE DELIVERY POLICY

As part of the process to develop an Alternative Service Delivery Policy, the Canadian Food Inspection Agency (CFIA) is consulting with stakeholders until June 24, 2012.  CFIA is seeking input that will help shape its future policy. Once a policy has been drafted, the CFIA will conduct a second consultation to for feedback.  There are multiple ways to provide input during the consultation. For more information or to complete the on-line survey, visit the CFIA website.
 

TRANSPORT CANADA FUNDING FOR SHORE POWER

Transport Canada is continuing its commitment to limit air emissions from the Canadian transportation sector by inviting applications for funding under the $27.2-million Shore Power Technology for Ports Program.  The Shore Power Technology for Ports Program will provide cost-shared funding for the installation of marine shore power at Canadian ports. This innovative technology allows ships to plug into the local electrical grid to power the vessel and turn off their diesel engines when docked.

Canadian port authorities and private organizations engaged in operating and/or owning marine ports and terminals in Canada are encouraged to apply for funding by September 28, 2012. A guide for applicants and additional information is available on Transport Canada's website at http://www.tc.gc.ca/sptp

TRANSPORT MINISTER FIRM ON EU EMISSIONS TRADING SYSTEM

The Honourable Denis Lebel, Minister of Transport, Infrastructure and Communities, Met with Mr. Siim Kallas, Vice-President of the European Commission responsible for Transport earlier this week. They discussed the European Union Emissions Trading System and the Canada-European Union Bilateral Aviation Safety Agreement.

With respect to greenhouse gas emissions from international maritime shipping, Minister Lebel expressed Canada’s view that the most appropriate forum to address the question is the International Maritime Organization (IMO). Canada encourages the European Union to work on this issue together with the rest of the international community through the IMO to achieve mutual goals.

The European Union Emissions Trading System (EU ETS) was created in 2005 to reduce greenhouse gases. As of January 1, 2012, the EU ETS applies to the aviation industry, including foreign aircraft operators flying to or from the European Union. As such, all emissions from aircraft entering or leaving Europe are subject to the EU ETS, including those that are released over the high seas and in countries outside the European Union. For example, a Canadian air carrier departing from Paris for Toronto is subject to EU ETS for the entire flight.

NEW ROYAL CANADIAN NAVAL MONUMENT UNVEILED IN OTTAWA

Prime Minister Stephen Harper unveiled The Royal Canadian Navy Monument on Richmond Landing in Ottawa. The Monument pays homage to the hundreds of thousands of Canadian sailors who served this great nation during the Navy’s first century of existence.

In true Navy tradition, the Monument was officially named by a member of the Service during the dedication ceremony. Miss Elsa Lessard, who served in the Women’s Royal Canadian Naval Service during the Second World War, accepted this honour.

The Royal Canadian Navy Monument was designed by artist Al McWilliams, architects Joost Bakker and Bruce Haden, all from Vancouver, British Columbia. The monument, which is located in the heart of Canada’s Capital Region, will act as a lasting tribute to Canada’s Navy – both past and present.

TSB RELEASES ANNUAL ASSESSMENT

Highlighting outstanding safety concerns with the transportation system, the Transportation Safety Board of Canada (TSB) released its annual reassessments of responses to Board recommendations.  In the marine sector, safety has improved.  Following a number of regulatory changes by TC impacting voyage data recorders and emergency preparedness on passenger ferries, the TSB has reassessed TC’s responses to two recommendations as fully satisfactory. With eleven recommendations pertaining to small passenger and small fishing vessels still outstanding—some dating as far back as 1992—the safety of these vessels remains a top concern for the Board.

Other News

US WIDENS SANCTION ON IRAN

The US continues to focus on the marine industry in its efforts to tighten sanctions on Iran with provisions that that prohibit “US persons” from transacting business with “foreign sanctions evaders”. This is being interpreted to include US offices of organizations such as class societies and P&I clubs. The Presidential Order authorizes sanctions on foreigners found to have had dealings with Iran and Syria and immediately bar such persons from entering the country. A further catch all clause targets “US persons” doing any business, whether involving Iran and Syria or not, including transactions already under way – with people who are designated “foreign sanctions evaders”. In effect, companies who may have assumed they could ignore US sanctions now need to reconsider.

CRUISE INDUSTRY CONTINUES TO ARGUE FOR ECA COMPROMISE SOLUTION

Following on from our notification last week of the decision by Canada to delay ECA implementation until November 2012, Cruise Lines International Association (CLIA) is continuing to lobby the US Congress for support for its alternative compliance tool based on interpretation of “equivalences” allowed for under MARPOL Annex VI legislation.  Unfortunately, Both the US Environmental Protection Agency (EPA) and the US Coast Guard (USCG) have opposed the CLIA compromise plan in a letter to IMO Secretary-General. Undeterred, CLIA is seeking non partisan Congressional support for a plan which it concludes would achieve at least the same overall health benefits to the population of the US and Canada as the 200 nautical miles (nm) ECA off the coastline of the two countries. Pressure also continues to mount for the states of Alaska and Hawaii to be exempt from the 200 nautical mile ECA zone fearing significant negative consequences for tourism.

AUSTRALIA’S PLUTO LNG PROJECT NOW ACTIVE

Western Australia’s Pluto LNG export project is finally underway with the first cargo to be loaded on the LNG carrier Woodside Donaldson. The project is another string in the bow of Australia’s aim to be the dominant supplier of LNG to Asia. It is estimated that around 70% of global LNG production capacity under construction is in Australia which will eventually overtake Qatar as the world’s largest LNG producer at around 80m tons/year. Approved for development in July 2007, the Pluto LNG Project will process gas from the Pluto and Xena gas fields, located about 190km north-west of Karratha in Western Australia, into LNG and condensate. The two fields are estimated to contain 4.8 trillion cubic feet of dry gas reserves.

  layout of the Pluto and Xena gas fields off the port of Karratha and the LNG carrier Woodside Donaldson, complete with kangaroos

The initial phase of the project comprises an offshore platform in 85m of water, connected to five subsea wells on the Pluto gas field. Gas will be piped in a 180km trunk line to the onshore facility, located between the North West Shelf Project and Dampier Port on the Burrup Peninsula. Onshore infrastructure comprises a single LNG processing train with a forecast production capacity of 4.3 million tons/year.

SOLAR POWERED SHIP COMPLETES WORLD’S FIRST CIRCUMNAVIGATION

Covered with roughly 38,000 solar cells, a PlanetSolar catamaran has finished the first round-the-world voyage fueled solely by the sun. The MS Turanor arrived in Monte Carlo, Monaco mid-afternoon on Friday. The vessel completed the 37, 294-mile expedition that spanned 28 countries and 585 days. The roof on the catamaran is covered with SunPower Corp. panels that extend over the hulls; these power six (6) blocks of lithium-ion batteries.

                                                             MS Turanor

TITANIC TO SAIL AGAIN?

Not for the first time, plans have been announced to build a new Titanic. The man behind the project is Mr. Clive Palmer, one of Australia's richest men who claims to have signed an MOU with CSC Jinling Shipyard.  Construction will begin in 2013 start at the end of next year and the vessel will be delivered in 2016.

        Clive Palmer

Market Update

It was steady as she goes this week with the Baltic Dry Index closing on Thursday on 1157 points, compared to 1148 points last week and 1028 points the week before.

                                              Cape Size       Panamax        Supramax
Index                                       1527                1635                 1108
One week ago                      1505                1727                 1097
Spot time charter            $7,100/day      $13,000/day    $11,600/day
One week ago                 $6,400/day      $13,800/day    $11,500/day

Containers:   Alphaliner is reporting that idle container capacity fell from just over 900,000 TEU in mid-March to a little over 600,000 TEU at the end of April. At the same time, average freight has increased by 38% since the beginning of the year.

Tankers: Chinese oil companies fixed 10 tankers (8 VLCCs and 2  Suezmaxes) in the Atlantic spot market on one day this week as China seeks to diversify its oil imports away from Iran. Additional oil is being sourced from Angola, Algeria, Libya and Venezuela.

Upcoming Events

LR ILO MARITIME LABOUR CONVENTION 2006 TRAINING COURSE

May 8 – 9 – Lloyd’s Register is offering a two-day course for those involved in the creation and implementation of policies and procedures required for compliance with the ILO MLC 2006. The course is outlined in the attached brochure and is priced at $895.  The course will be held in the local office in North Vancouver.

CMLA ANNUAL GENERAL MEETING AND ANNUAL SEMINAR

May 11 – 12 - The Canadian Maritime Law Association will be holding its 2012 Annual General Meeting on Friday, May 11, 2012 and its annual Seminar on Saturday May 12, 2012. To register for the seminar please go to the CMLA website (www.cmla.org) and follow the links to the registration page. Alternatively, you can go direct to the registration page at www.cmla.org/agmseminarreg.php.

ICMA XVIII - REGISTRATION

May 13 – 18 - The Vancouver Maritime Arbitrators Association, (VMAA), invites you to the International Congress of Maritime Arbitrators, ICMA XVIII, to be held at the Pan Pacific Hotel, Vancouver British Columbia, Canada. ICMA provides a forum for arbitrators, national maritime arbitration associations, marine insurers, ship owners, charterers, cargo interests and the legal community from around the world to come together to exchange views and developments. After 21 years ICMA returns to Vancouver in 2012.  For more information or to register, visit www.icma2012.com

PORT SECURITY CONFERENCE

May 15 – 17 – The 2012 Canadian Port and Maritime Security Conference will be held this year at the Coast Coal Harbour Hotel in Vancouver, BC.  For more information visit: www.portsecure.ca

PLIMSOLL CLUB ANNUAL SPRING GOLF TOURNAMENT

May 16 – The Plimsoll Club will be holding this year’s golf tournament at the University Golf Club.  For more information and to register your foursome, see the attached flyer or contact Renae Warnock at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

GREEN MARINE ANNUAL CONFERENCE – GREEN TECH 2012

May 29 – 30 – Green Tech 2012 will be held this year in Quebec City at the Loews Hotel Le Concorde.

This will be Green Marine’s 5th edition of its annual conference on green technologies and innovation in marine transportation. Detailed information and registration forms for exhibitors and participants are available on Green Tech 2012 website: www.green-marine.org/annual-conference.

BC CHAMBER OF COMMERCE SUMMIT

June 4 – 5 – The BC Chamber of Commerce is hosting a Transportation Summit on “Shipping and Exports to the Asia Pacific”   Wolfgang Freese, President of Hapag-Lloyd Region Americas was added to the list of noteworthy speakers and panelists.  The early bird rate for registration expires on May 18^th.  To view details and to register, visit www.bcchambersummit.ca.

BUSINESS OF SHIPPING COURSE – NANAIMO, BC

June 7 – The Chamber of Shipping of BC and the Institute of Chartered Shipbrokers will hold its next full day course in Nanaimo.  Details of the course content and registration form are attached.

VANCOUVER GRAIN EXCHANGE GOLF TOURNAMENT

June 15 - This year’s golf tournament will be held at Quilchena Golf & Country Club on June 15^th.  Proceeds from the 50/50 draw will benefit Wigs for Kids.  For more information contact Caroline Simister at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

ARCTIC SHIPPING UPDATE

June 21 – A half-day morning session is planned to discuss developments in Arctic Shipping with the Canadian Coast Guard.  Further details to follow.

MARITIME SECURITY CHALLENGES (MSC) 2012

Oct 1–3 – The 5^th annual conference presented by Maritime Forces Pacific and Royal Roads University will take place in Victoria, BC and will address the illegal movement of people and goods at sea, security issues in the Gulf of Guinea, maritime applications of unmanned and autonomous vehicles, and shipbuilding and future naval requirements. To register or for more information on the conference or sponsorship opportunities visit: http://mscconference.ca/

May 8               Port Metro Vancouver Land Use Meeting – Transportation & Goods Movement
May 9               COS Board of Directors Meeting @ 11:30
May 11             Canadian Maritime Law Association Annual General Meeting
May 12             Canadian Maritime Law Association Seminar
May 13-18       International Congress of Maritime Arbitrators XVIII Conference
May 15             COS Ship & Port Operations Committee Meeting @ 12:00
May 15-17       Port Security Conference
May 16             Plimsoll Club Annual Spring Golf Tournament
May 17             COS Navigation & Pilotage Committee Meeting @ 10:00
May 17             COS Liner Committee Meeting @ 12:00
May 21             Victoria Day – Office Closed
May 24             WMCC Annual General Meeting @ 09:00
May 24             WMCC Board of Directors Meeting @ 09:30
May 29             PMV Annual General Meeting
May 29-30       Green Marine Annual Conference – Green Tech, Quebec City
May 30             PACMAR / NANS Meeting @ 10:30
Jun 7                Business of Shipping Course (full day) Vancouver Island Convention Centre, Nanaimo
Jun 15              Vancouver Grain Exchange Golf Tournament
Jun 21              Arctic Shipping Update

Ship of the Week

                                                                           Princess Daphne

Built 1955 as the refrigerated tween decker Port Sydney by Swan Hunter Shipyard, Newcastle UK
Rebuilt 1975
LOA 162.4m
Beam 21.3m
GRT 15,833
Speed 16 knots
Passenger 422 normal, 540 maximum
Other names: Daphne, Switzerland, Ocean Monarch

Originally built in 1955 as a cargo-passenger ship, under the name Port Sydney, Princess Daphne underwent a major conversion in 1974 into a luxury passenger cruise ship. Since then she has been rebuilt and refurbished a number of times and has sailed under the names Daphne, Switzerland and Ocean Monarch. Her last major refurbishment took place in the beginning of 2008, as she came under the Classic International Cruises banner, and saw her change her name to Princess Daphne. She now boasts 241 of the largest cabins found on any cruise ship of which 27 are suites. 

                                            Originally built in 1955 as Port Sydney

Carrying no more than 550 passengers, Princess Daphne now boasts 241 of the largest cabins found on any cruise ship of which 27 are suites. Classic International Cruises was founded in 1985 as the Arcalia Shipping Company Ltd, which eventually became Classic International. The company is headquartered in Neutral Bay, NSW, Australia and has branch offices in Paris, Piraeus, Lisbon, London and Sollentuna, Sweden.

                                     in a previous life as Daphne with Costa Cruises, calling Canada Place

Ambiente Kreuzfahrten, a new German cruise operator currently has Princess Daphne on a three year charter. Itineraries began with a twelve-day cruise from Palma de Mallorca to Kiel on April 29, 2012 followed by summer cruises to western Scandinavia, the UK and Baltic before returning to the Mediterranean. Base ports for 2012 are Kiel and Bremerhaven while voyages to the Canary Islands, Brazil, Cuba and the Caribbean are scheduled for the 2012/13 winter season until she returns to European waters in April 2013.

COS News – Week ending 27 April 2012
Issue No. 206

STRIKE MANDATE GIVEN TO TCRC

The general committees of the Teamsters Canada Rail Conference (TCRC) representing 5,000 conductors, trainmen, yardmen, locomotive engineers and rail traffic controllers employed by Canadian Pacific Railway have been authorized by their membership to launch a strike against the railway.  Members have voted by a margin of 95% in favour of authorizing their bargaining committee to launch a strike if necessary. The TCRC may strike anytime after May 22, 2012.

Canadian Pacific commented on the Teamsters Canada Rail Conference (TCRC) April 26, 2012 announcement that the union sought a strike mandate from their members. The Company noted that discussions with the TCRC regarding changes to CP's legacy pension plan will continue under the supervision of the conciliator appointed by the Federal Minister of Labour. No work stoppage can occur until the expiration of a cooling-off period on May 23, 2012.

The existing contract with the union expired on December 31, 2011. CP has been in negotiations since early October 2011 with the union on a number of topics ranging from wages to work rule changes and pensions, all intended to further drive service, productivity, and efficiency.

TRANSPORT CANADA AND GREEN MARINE SIGN MEMORANDUM ON ENVIRONMENTAL PERFORMANCE

Transport Canada and Green Marine announced at the Canadian Marine Advisory Council meeting in Ottawa the signing of a memorandum of cooperation to enhance environmental protection and performance in the marine shipping sector.  The memorandum of cooperation formalizes a cooperative agreement and designates Transport Canada as a “Green Marine supporter.”

As part of the agreement, Transport Canada and Green Marine will work together to:

• enhance the industry’s environmental performance benchmarking;
• support efforts to promote Green Marine goals and successes nationally;
• collect environmental data and develop environmental performance measurement standards; and
• identify ways to promote industry best practices, measures and strategies that can further address environmental issues in the marine sector.

PRINCE RUPERT CELEBRATES COMMISSIONING OF MARINE RESCUE VESSEL

The Prince Rupert Port Authority congratulated the Prince Rupert Marine Rescue Society on the deployment of its new vessel, the Orme G. Stuart. The craft was commissioned during a ceremony on Saturday morning that drew more than 100 community members. 

A $200,000 contribution to the Prince Rupert Marine Rescue Society was made through the Port Authority's Community Investment Fund in 2011. The fund was established to share the Port's revenues with organizations planning projects that benefit residents.

ECA INCONSISTENCIES CRITICIZED AT BIMCO GENERAL MEETING

BIMCO has voiced concern over inconsistent standards in Emissions Control Areas (ECAs) during the organization’s General Meeting in Singapore this week. BIMCO President and Chairman Yudhishthir Khatau, who was elected during last year’s meeting in Vancouver, described the issue as “the biggest challenge” the industry is facing.  “When ships are trading in different regions, it would be difficult to comply with different ECAs which have different norms” he said.  In apparent support of Mr. Khatau’s comments while at a separate event, IMO Secretary-General Koji Sekimizu suggested that that regional and unilateral measures to reduce greenhouse gas emissions were also not in the shipping industry’s best interest.

During this week’s Canadian Marine Advisory Council(CMAC) meetings in Ottawa we were informed that Canada cannot meet the time line to publish the regulatory amendments in the Canada Gazette which would permit the North American ECA to become effective in Canadian waters on August 1, 2012.  The revised projected implementation date is November 2012 however, as of now it appears that the US Environmental Protection Agency (EPA) remains intent on the original August 1 implementation despite the well documented difficulties in securing compliant low sulphur (1%) fuel. (An official announcement from Transport Canada is expected to be released imminently).

RAIL SAFETY WEEK STARTS MONDAY

Next week (April 30 – May 6) is the annual Rail Safety Week. Operation Lifesaver will hold a number of events and activities throughout Canada to bring attention to our important rail safety message.  This year’s theme is focused on preventing trespassing, with the “These Tracks are for Trains Message”.

Government Updates

NEW PRACTICES WILL LEAD TO SAFER PASSAGE IN ARCTIC WATERS

The Transportation Safety Board of Canada (TSB) report into the August 2010 grounding of the cruise ship, Clipper Adventurer in Coronation Gulf, Nunavut (M10H0006) highlights the need for safer navigation in Canada’s Arctic.  CCG has committed to providing all vessels entering Arctic waters with crucial safety information via its NORDREG vessel reporting system starting in June 2012. The Canadian Hydrographic Service will establish a procedure so that navigational charts for Canada’s Arctic will be marked with reported hazards to navigation. This process is to be implemented in 2013.

Other News

COSTA CONCORDIA SALVAGE OPERATION CONTRACT AWARDED

The contract to refloat the Costa Concordia in one piece has been won by a partnership of US based and Crowley owned “Titan Salvage” and the Italian offshore operator “Micoperi”. The $288m operation is scheduled to begin later next month and is expected to take about a year. There is a yet no final decision as to whether the hull will be scrapped or repaired. Titan’s previous projects include the refloating of the APL Panama from a beach in Ensenada, Mexico and the attempted salvage of the New Carissa off the Oregon Coast.

        APL Panama  2006                                            New Carissa 1999

Cruise Lines International Association (CLIA) and the European Cruise Council this week announced three significant policy changes at the EU’s Passenger Ship Stakeholder Conferencein Brussels:

• All cruise ships will more strictly adhere to IMO passage planning guidance and follow best practices contained in the International Chamber of Shipping Bridge Procedures Guide. In this context, all bridge team members will be thoroughly briefed on passage plans, which must be approved by the ship’s master.
• No person without operational functions will be allowed on a bridge during any period of “restricted manoevering or when increase vigilance is required.
• Member cruise lines will significantly increase the number of lifejackets onboard. In addition to the statutory requirement of one lifejacket per person aboard, cruise ships will add lifejackets equal to at least the total number of people berthed within the ship’s most populated main vertical fire zone.

These policy changes are in addition to two previous safety announcements including a mandatory policy calling for muster drills before departure from port (the legal requirement is for a muster within 24 hours of sailing) and a recommendation to the IMO on enhanced maritime casualty data reporting requirements.

HARROWING PIRACY TESTIMONY IN US COURT

A Ukrainian seafarer has provided a harrowing account of life on the small German tanker Merida Marguerite taken by Somali pirates. The seaman’s testimony took place at the trial of alleged pirate Mohammad Saali Shibin who is facing charges of piracy and hostage taking but who was in effect was also the primary hostage negotiator. Amongst torture methods allegedly employed by Shibin were hanging hostages from a meat hook in the ship’s freezer compartment, confined exposure to sun for hours on end, a gun to the head and simulated suffocation. The trial which is taking place in Virginia is scheduled to last several weeks. The ship itself was eventually released on payment of a $5m ransom.

The Italian flagged and owned chemical tanker Enrico Levoli was released by Somali pirates this week after being held for four months. She was was hijacked on December 27 off the coast of Oman while on its way to a rendezvous point for a Chinese armed convoy. At one point she was forced to act as a mothership in the Gulf of Aden.

The International Maritime Bureau has reported 102 incidents of piracy in Q1 this year compared to 142 attacks in the same period last year. Eleven vessels were reported hijacked worldwide, with 212 crew taken hostage and four killed. All the reported incidents involved either Somali or Nigerian pirates.

IMO Secretary General Mr. Koji Sekimizu weighed in on piracy this week by calling on heads of state to engage with the global fight against piracy and pointed out that ministerial discussions have failed to deliver the political will needed to tackle the problem effectively.

SINGAPORE INVESTIGATES FEASIBILITY OF LNG BUNKERING

The Singapore Maritime and Port Authority in partnership with DNV has launched a project to investigate the operational feasibility of LNG bunkering in Singapore. The project will be funded by Singapore’s “Marine Innovation and Technology Fund” (MINT) while DNV’s participation will be through the Class Society’s Singapore Clean Technology Centre. 

Singapore, the world’s second busiest port, is also the world’s largest bunker port with some 43 million tons supplied in 2011. There are currently around 25 LNG fuelled ships engaged in coastal trading which are reliant on shore-side bunkering facilities plus around 24 LNG fuelled or hybrid ships currently on order.

Singapore was this week named the most important shipping centre in the world, followed by Oslo, London, Hamburg and Hong Kong, according to research commissioned by Nor-Shipping and Oslo Maritime Network. Maritime Centres were ranked by a panel of 28 experts on the basis of four categories: ship owners and shipping operations; maritime finance: maritime law and insurance: and maritime technology and competence.

ARCTIC SUMMERS PREDICTED TO BE ICE-FREE BY 2050

The Arctic Shipping Forum meeting in Helsinki this week heard that even though increased global warming is creating more ice-free waters in the Arctic, shipping will still have to contend with ice-bound winters for decades to come. The Forum was told that whilst summer sea ice levels have decreased about 12% over the decade, winter ice levels have declined less than 3% and whilst climate change will increase the windows of opportunity for Arctic transits, overall decreased ice thicknesses as multi-year ice will be replaced by first year ice.

PANAMA CANAL AUTHORITY INTRODUCES NEW SHIP CATEGORIES FOR TRANSIT PRICING

The Panama Canal Authority (ACP) has announced the establishment of three new ship type categories (increase from 8 to 11) when the next round of tariff adjustments take effect in July this year. The new categories will be container/breakbulk ships, chemical tankers and LPG carriers. A consultation period from April 20 to May 20 is intended to provide opportunity to submit written comments and feedback before a public hearing scheduled for May 23. Effective July 1, ACP will increase tolls for general cargo ships, container/breakbulk vessels, dry bulk ships , the redefined tanker segment, chemical tankers, LPG tankers, vehicle carriers and ro-ro vessels, and the category known as ”others”. The remaining segments (containers) will not be impacted.

Market Update

The Baltic Dry Index consolidated last week’s gain and remained in four figure territory this week, closing on Thursday on 1148 points, compared to 1028 points last week and 960 points the week before.

                                              Cape Size       Panamax        Supramax
Index                                         1505              1727                1097
One week ago                            1534              1354                  992
Spot time charter                   $6,400/day      $13,800/day      $11,500/day
One week ago                       $6,600/day      $10,800/day      $10,400/day

Tankers: The market received a bit of a boost this week when China surprised everyone by taking 10 VLCCs on time charter in one swoop. Of the almost 350 tankers scheduled for delivery this year, it is now expected that around 35% will be delayed for one reason or another.

Containers: The active container ship fleet has grown 10% in the past year, running well ahead of demand. The fleet has now reached almost 15 million TEU, an increase of 1.33 million TEUs over the past year. Since the beginning of 2012, some 23 ships in excess of 10,000 TEU capacity have joined the fleet, paving the way for an increased capacity of 455,000 TEU so far and around 1.4 million TEU for the full year with consequent growing concern for the sustainability of recent improvements in rates.

Upcoming Events

ASIA-PACIFIC GATEWAY GROWTH – IMPLICATIONS FOR THE TRUCKING INDUSTRY

May 2 - The BC Trucking Association has organized a conference to address the challenges and opportunities for the trucking industry in the Asia Pacific Gateway.  Visit the BCTA website for the registration form and further details.

LR ILO MARITIME LABOUR CONVENTION 2006 TRAINING COURSE

May 8 – 9 – Lloyd’s Register is offering a two-day course for those involved in the creation and implementation of policies and procedures required for compliance with the ILO MLC 2006. The course is outlined in the attached brochure and is priced at $895.  The course will be held in the local office in North Vancouver.

CMLA ANNUAL GENERAL MEETING AND ANNUAL SEMINAR

May 11 – 12 - The Canadian Maritime Law Association will be holding its 2012 Annual General Meeting on Friday, May 11, 2012 and its annual Seminar on Saturday May 12, 2012. To register for the seminar please go to the CMLA website (www.cmla.org) and follow the links to the registration page. Alternatively, you can go direct to the registration page at www.cmla.org/agmseminarreg.php.

ICMA XVIII - REGISTRATION

May 13 – 18 - The Vancouver Maritime Arbitrators Association, (VMAA), invites you to the International Congress of Maritime Arbitrators, ICMA XVIII, to be held at the Pan Pacific Hotel, Vancouver British Columbia, Canada. ICMA provides a forum for arbitrators, national maritime arbitration associations, marine insurers, ship owners, charterers, cargo interests and the legal community from around the world to come together to exchange views and developments. After 21 years ICMA returns to Vancouver in 2012.  For more information or to register, visit www.icma2012.com.

PORT SECURITY CONFERENCE

May 15 – 17 – The 2012 Canadian Port and Maritime Security Conference will be held this year at the Coast Coal Harbour Hotel in Vancouver, BC.  For more information visit: www.portsecure.ca

PLIMSOLL CLUB ANNUAL SPRING GOLF TOURNAMENT

May 16 – The Plimsoll Club will be holding this year’s golf tournament at the University Golf Club.  For more information and to register your foursome, see the attached flyer or contact Renae Warnock at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

GREEN MARINE ANNUAL CONFERENCE – GREEN TECH 2012

May 29 – 30 – Green Tech 2012 will be held this year in Quebec City at the Loews Hotel Le Concorde.

This will be Green Marine’s 5th edition of its annual conference on green technologies and innovation in marine transportation. Detailed information and registration forms for exhibitors and participants are available on Green Tech 2012 website: www.green-marine.org/annual-conference.

BC CHAMBER OF COMMERCE SUMMIT

June 4 – 5 – The BC Chamber of Commerce is hosting a Transportation Summit on “Shipping and Exports to the Asia Pacific”   Wolfgang Freese, President of Hapag-Lloyd Region Americas was added to the list of noteworthy speakers and panelists.  The early bird rate for registration expires on May 18^th.  To view details and to register, visit www.bcchambersummit.ca.

BUSINESS OF SHIPPING COURSE – NANAIMO, BC

June 7 – The Chamber of Shipping of BC and the Institute of Chartered Shipbrokers will hold its next full day course in Nanaimo.  Details of the course content and registration form are attached.

MARITIME SECURITY CHALLENGES (MSC) 2012

Oct 1–3 – The 5^th annual conference presented by Maritime Forces Pacific and Royal Roads University will take place in Victoria, BC and will address the illegal movement of people and goods at sea, security issues in the Gulf of Guinea, maritime applications of unmanned and autonomous vehicles, and shipbuilding and future naval requirements. To register or for more information on the conference or sponsorship opportunities visit: http://mscconference.ca/

May 1               CIABC Board of Directors Meeting
May 2               BCTA Annual General Meeting
May 2               VMAA Board of Directors Meeting
May 3               WCMRC User Group Meeting
May 8               Port Metro Vancouver Land Use Meeting – Transportation & Goods Movement
May 9               COS Board of Directors Meeting @ 11:30
May 11             Canadian Maritime Law Association Annual General Meeting
May 12             Canadian Maritime Law Association Seminar
May 13-18       International Congress of Maritime Arbitrators XVIII Conference
May 15             COS Ship & Port Operations Committee Meeting @ 12:00
May 15-17       Port Security Conference
May 16             Plimsoll Club Annual Spring Golf Tournament
May 17             COS Navigation & Pilotage Committee Meeting @ 10:00
May 17             COS Liner Committee Meeting @ 12:00
May 21             Victoria Day – Office Closed
May 24             COS Owners Committee Meeting @ 12:00
May 29             PMV Annual General Meeting
May 29-30       Green Marine Annual Conference – Green Tech
May 30             PACMAR / NANS Meeting @ 10:30
Jun 7                Business of Shipping Course (full day) Vancouver Island Convention Centre, Nanaimo
Jun 15              Vancouver Grain Exchange Golf Tournament

Ship of the Week

  Clipper Ship Cutty Sark – fully restored following a tragic fire in 2007 with the lower hull now enclosed within a glass dome

For many years a familiar sight on the banks of the Thames River in London, the clipper ship Cutty Sark, built in 1869, was one of the last tea clippers and one of the fastest.

She had the misfortune to be built in the same year that the Suez Canal was opened which immediately provided the option of a faster steam ship passage to China. As a consequence she spent much of her life in the wool trade from Australia to the U.K. and held the record passage time for 10 years until that route too became “steam” dominated. In 1922 she was purchased by a retired sea captain who used her as a training ship until in 1938 when she was handed over to the Thames Nautical Training College where she became an auxiliary cadet training ship. In 1954 she was transferred to a permanent dry dock at Greenwich which is where she lies today. She was heavily damaged by fire in May 2007 whilst undergoing renovation and was reopened on Wednesday this week (April 25) by H.M. the Queen following a £50 million complete restoration.

     painting of Cutty Sark under full sail                       ablaze from stem to stern in May 2007                            plaque to mark the re-opening

Also at Greenwich is the Royal Observatory through which the “Greenwich Meridian” passes from north pole to south pole and which provides the so called “prime meridian” from which longitude is measured to east and west. The line also signifies measurement of Greenwich Mean Time (GMT) from which the world’s time zones originate. GMT was adopted as the world’s time standard at the Washington Meridian Conference in 1884.