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.

COS News – Week ending 20 April 2012
Issue No. 205

THE 2012 CRUISE SEASON IS UNDERWAY

This year’s cruise ship season started with the arrival of the Crystal Serenity at Canada Place on Monday, April 16th, and its subsequent arrival at Ogden Point on Tuesday as part of an around-the-world tour. 

Port Metro Vancouver’s cruise season expects to see approximately 670,000 passengers in 2012 on 191 vessel calls at the Port’s two cruise terminals - Canada Place and Ballantyne. 

The arrival in Victoria marks the first of 229 expected calls from 25 ships in 2012, which will bring more than 475,000 passengers and 200,000 crew to the Greater Victoria region.  The governments of Canada and British Columbia partnered with the GVHA to install a mooring dolphin 70 metres from the end of a 240-metre pier at Ogden Point to accommodate larger cruise vessels. Thanks to these investments, a 315-metre vessel capable of carrying 2,850 passengers is confirmed to call on Victoria in 2013. The longest vessel expected to call on Victoria is 296 metres, with a maximum capacity of 2,600 passengers.

CHIEF DERRICK APPOINTED TO PRINCE RUPERT PORT AUTHORITY BOARD

The Honourable Denis Lebel, Minister of Transport, Infrastructure and Communities, today announced the appointment of Chief Elmer Derrick of Terrace, British Columbia, to the board of directors of the Prince Rupert Port Authority for a three-year term. 

WEST COAST NAVAL INTELLIGENCE CENTRE TO CLOSE

The Canadian Press reported that a intelligence office on the West Coast that has been operating for less than two years will close as part of a three-year drive to carve $1.5 billion from the budget of National Defence.  The Acoustic Data Analysis Centre at Canadian Forces Base Esquimalt, B.C. was established after the navy argued  the need for more surveillance in a region considered a prime thoroughfare for human smuggling.  Operations will be transferred to a similar centre in Halifax.

REAR ADMIRAL GREENWOOD’S REPLACEMENT NAMED

Command of Maritime Forces on Canada’s west coast is set to change hands in June this year when Commodore Bill Truelove replaces Rear Admiral Nigel Greenwood. Commodore Truelove, who will also be promoted to the rank of Rear Admiral, is currently serving in Kabul, Afghanistan. 

Commodore Truelove

OGDEN POINT BACK IN THE CABLE SHIP BUSINESS

                 Wave Venture alongside at Ogden Point

UK based Global Marine Systems has entered into an agreement with the Greater Victoria Harbour Authority to position the cable ship Wave Venture at Ogden Point for five years including a contract for cable storage. The vessel, which will vacate berth during the busy weekend periods of the cruise season, is presently discharging 745 km of cable into the cable tanks with a further 100 km to come.  (thanks to GVHA and Western Stevedoring for the inside scoop)

STX TO ASSIST IN OPTIMIZING VANCOUVER SHIPYARDS

Seaspan Marine Corporation, the parent company of Vancouver Shipyards, recently signed a deal with STX Offshore and Shipbuilding Company Ltd.  This partnership will optimize Vancouver Shipyard’s planned facilities upgrades for the Federal Government’s recently awarded $8 billion Non-Combat National Shipbuilding Procurement Strategy (NSPS) program.

STX is one of the leading shipbuilders in the world and currently produces approximately 60 vessels per year with annual steel throughput over 700,000 tonnes. STX plans to dispatch a technical staff to Vancouver Shipyards to review facility upgrades and provide recommendations for optimizing shipbuilding efficiency.

Government Updates

MEMORANDUM D17-14 RELEASE OF COMMERCIAL GOODS

Memorandum D17-1-4 dated April 19, 2012 replaces D17-1-4 dated September 19, 2008.  Key amendments include modifications to the exceptions to EDI and timelines in view of eManifest end-state and Harmonized System change to 10-digits, plus new information on Low Value Shipments and release processing for hand-carried goods.

CANADIAN TRANSPORTATION AGENCY VACANCY

The Canadian Transportation Agency has posted a full time vacancy in the Canada Gazettefor Vice-Chairperson and Member. 

Other News

SOMBRE SERVICES MARK TITANIC CENTENARY

         

Cruise ship passengers and crew paid homage in the early hours of last Sunday morning at the spot in the North Atlantic where the Titanic sank 100 years ago. Wreaths were thrown into the sea in remembrance of those who died. The cruise ship Azamara Journey which had set out from New York, also held a service at the site of the disaster, some 400 miles off the coast of Newfoundland.

Titanic’s Master was Captain Edward Smith. His childhood home in Staffordshire U.K. is currently on the market for £80,000. The history of the humble dwelling attracted the current owners to buy it 10 years ago and now they hope to pass it on to a historical custodian who can make the most of its past. He and his pottery worker parents are believed to have lived in the house for more than a decade. He worked at a local steelmaker before heading off to sea aged 13, where he progressed from ship's boy to captain.

   

                      services on a cold but calm night mark the centenary of Titanic’s niking - Azamara Journey in the backround (right)

 MR. MAERSK MC-KINNEY MOLLER 1913 - 2012

We are saddened to report the passing of Mr. Maersk Mc-Kinney Moller in the early hours of last Monday morning, just three months shy of his 99^th birthday.  He was predeceased by his wife of 65 years, Emma, who died in 2005, and is survived by their three daughters, two of whom are active in the business, along with two grandsons. Mr. Mc-Kinney Moller attended the company’s Annual General Meeting only last week.

 The company’s origins go back to 1904 when Mr. Mc-Kinney Moller’s grandfather Peter Maersk Moller and father Arnold Peter formed their first shipping company. He took over as head of the AP Moller-Maersk group in 1965 on the death of his father and maintained day to day control until 1993 by which time the framework was well established for perhaps the world’s best known shipping company which in 2011 had a turnover of $60 billion, employing 108,000 staff across 130 countries. Mr. Mc-Kinney Moller and his wife were quietly generous and active in support of many charitable causes.  As an old school shipping man, he was renowned for having inspired several generations of leaders in our industry whilst remaining personally humble and publicity shy.

Maersk employees held a minute’s silence at noon today Danish time and a private funeral service is scheduled for tomorrow (Saturday April 21) in Copenhagen.
 

US APPROVES LNG EXPORT TERMINAL

The first large natural gas export facility in the U.S. for more than 40 years was approved this week by the Federal Energy Regulatory Commission. The project is based on the Sabine Pass LNG terminal in Louisiana which will be converted from an import to an export facility and will come on line in 2015-16 at a cost of some $4 billion. Sabine LNG has entered into sale and purchase agreements with BG Group of the UK, Gas Natural Fenosa of Spain, Gail of India and Kogas of Korea to take 90% of the terminal’s annual LNG capacity. 

STATOIL ORDERS STATE OF THE ART “CAT B” DRILL RIG

                  Cat B - Well Intervention Rig

Statoil of Norway, announced this week the award to Aker Solutions of a $1.9 billion contract involving a new type of rig, categorized “Cat-B”, intended to provide enhanced well intervention and light drilling capability year round on the Norwegian Continental Shelf.  The entirely new concept of the Cat-B rig is designed for a full range of heavy well intervention and light drilling tasks in water depths up to 500 metres in a harsh environment. In a statement, Statoil stated “this will be a very important part of the toolbox for increased recovery on the Norwegian continental shelf, making it possible to produce oil and gas that otherwise would be inaccessible”.

Statoil ASA, the world’s 13^th largest oil and gas company, is a Norwegian energy enterprise formed by the 2007 through the merger of Statoil with the oil and gas division of Norsk Hydro. The Government of Norway is the largest shareholder in the company with 67% of the shares under the Norwegian Ministry of Petroleum and Energy. Statoil is a fully integrated petroleum company with production operations in 13 countries.

MAERSK ALABMA CREW SUES OWNERS

In what some people might see as an opportunistic exercise, following the temporary hijacking by Somali pirates of the Maersk Alabama in 2008, eleven seafarers have decided to sue Maersk Line in the U.S. The action claims that the company ignored piracy warnings in sailing too close to the East African coastline and as a consequence the complainants are seeking compensatory and punitive damages for physical injuries, negligence, wantonness, emotional distress, post-traumatic stress disorders, sleep disorders, medical expenses and lost wages.

   

   pictures above of the freed crew members and on arrival back in the U.S.

 

$1 BN DRAWDOWN OF HMTF SANCTIONED

The US “House Energy & Water Appropriations Subcommittee” has sanctioned the largest annual drawdown ever from the $6 billion held in the Harbour Maintenance Trust Fund. The allocation for 2013 will go to the US Army Corps of Engineers to “increase commerce through the nation’s ports and other waterways”. The recent FMC enquiry into alleged diversion of cargo through Canadian ports generated immense criticism of the management of the HMTF which generates annual revenue of around $1.5 billion to dredge port access channels. 

SINGAPORE KEEPS PACE WITH SHANGHAI IN Q1

Growth of 6.6% in container handling saw Singapore handle 7.5 million TEU in Q1 – the same number as Shanghai which experienced reduced growth at 3.5%. The bronze medal stays with Hong Kong which handled 5.6 million TEU in the same period on growth of 2.7%. Notwithstanding its success in the world of container handling, Singapore is judged by most to be Asia’s leading maritime hub with visionary government’s support and leadership in the maritime sector for many years. It is also now a world centre for the offshore industry, maritime law and finance.

Staying with containers, when speaking to Containerization International’s “Global Liner Shipping” conference this week, Maersk Line’s Chief Commercial Officer announced plans to extend the company’s Daily Maersk service to new trade lanes and to improve its delivery times dramatically. “Maersk and the rest of the container shipping industry have failed to create value for their customers and shareholders over the years and that situation has to change” he went on to say. “The goal is to attain 95% on-time delivery in all east-west trade lanes after Daily Maersk achieved 99% punctuality in February”.

Whilst the first cut of the grass does not signify a great summer to follow, Trans-Pacific spot rates were up 20% this week to around $2,400 per FEU on the benchmark Hong Kong-Los Angeles route, up 34% from a year ago.

 

S.S. BEAVER AWARD ANNOUNCEMENT

A new award has been instituted to honour individuals who have made outstanding contributions or significant achievements in maritime endeavors in British Columbia.  These attainments may include, but are not limited to-science, technology, business, application of practical maritime skills, nautical heritage and culture, and academic contributions. The gold-plated medal, which incorporates copper from the 19th century steamship S.S. Beaver, reminds us of our history but also highlights the continuing importance of British Columbia's maritime sector.  

           S.S. Beaver in about 1870

 

Market Update

With Capsizes continuing to languish, Atlantic spot bulk markets have been the global driver this week on the back of Brazilian sugar and soybean exports. The Baltic Dry Index finally crossed into four figure territory this week and closed on Thursday on 1028 points, compared to 960 points last week and 928 points the week before.

According to Clarkson’s data, 2012 will witness a modest decline in the number of tankers and dry bulk vessels delivered, perhaps indicating that the peak of unwanted deliveries is about to pass. Last year’s numbers were around 139 million tons DWT compared to a projected 131 million tons this year. 

                                                      Cape Size          Panamax           Supramax
Index                                               1534                    1354                     992
One week ago                               1576                    1110                    930
Spot time charter                      $6,600/day        $10,800/day       $10,400/day
One week ago                           $7,100/day        $  8,900/day       $ 9,700/day

      

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

– 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.

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/

Apr 23-26          National Canadian Marine Advisory Council Meetings
Apr 27                Plimsoll Club Annual General Meeting @ 16:30
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

                                            Isla De Cedros

A regularly scheduled caller on the port of Vancouver, Isla De Cedros, is operated by Baja Bulk Carriers located in San Diego. Her regular employment is to load sea salt at Cedros Island Mexico for delivery to customers on the U.S. and Canadian west coasts.

Built 1982 by Koyo Dockyard, Mihara, Japan
LOA 223m
Beam 32m
GRT 34,405
DWT 60,732 MT
Former names: Miyajima Maru, Poseidon Breeze, Titian Jaya
Managers: Fairmont Shipping, Hong Kong.

    

Loading in Isla De Cedros, Mexico (left) and discharge operations to barge in Burrard Inlet

Isla De Cedros is a converted bulk carrier that is now a purpose converted “hybrid” self unloader using grabs to lift salt into her discharge system which in turn loads barges by conveyor. On average she brings 60-65,000 MT of salt from Mexico for discharge to barges. The ship is owned by Mitsui OSL Lines (MOL) and is on long term charter to BBC (Baja Bulk Carriers) until 2014 when she is scheduled to be replaced. DPW are the long term contractual stevedores for the discharge operation. Predecessors in the trade were the vessels Berkshire, Percy Jordan, Argyll, Maizuru Maru, and Serenity.

Puerto Morro Redondo, close to the southeastern point of the island (pictures below centre and right) is a  small company town, purpose built by the Mexican Government and Mitsubishi Corporation to house the workers of the salt-transshipment facility on the island. Salt from the salt evaporation ponds of Guerrero Negro on the Baja California peninsula is taken by barge to a deepwater salt dock near Puerto Morro Redondo where it is loaded for export.

COS News – Week ending 13 April 2012
Issue No. 204
 

PORT OF PRINCE RUPERT RELEASES ECONOMIC IMPACT STUDY

In a news release earlier this week the Port of Prince Rupert announced that the number of BC-based jobs generated by have grown by over 70% in the past two years while the value of export trade through the Port has nearly doubled to $4.9 billion since 2009.  The total direct impacts of on-going operations at the Port of Prince Rupert generate 2,220 direct person years of employment (nearly 2,330 jobs), earning close to $130 million in wages, generating over $290 million in GDP and approximately $550 million in economic output.

Employment at Port of Prince Rupert by Industry Type

Figure from the Economic Impact Study, prepared by InterVISTAS Consulting Inc.

The full economic impact study is available for download on the Port’s new website att: http://www.rupertport.com/documents/economic-impact-study-2012

The full value of trade analysis is available for download at: http://www.rupertport.com/documents/value-of-trade-2012

KINDER MORGAN EXPANSION MOVES FORWARD

Following a successful open season resulting in 20 years of binding commitments to make use of expanded capacity, Kinder Morgan Energy Partners, L.P. yesterday announced its intention to move forward with plans to expand the existing Trans Mountain pipeline system. The proposed capacity increase will be achieved by twinning the existing Trans Mountain pipe-line to increase capacity from 300,000 barrels/day to some 850,000 barrels/day. 

     Trans Mountain Pipeline expansion

OTTAWA APPROVES LNG EXPORT LICENCE

 A joint venture of the Haisla First Nation and a Texas company have been awarded a 20-year licence to export liquefied natural gas from an inter-national terminal proposed for Kitimat.  It's the second such licence approved by the federal government in recent months.  Last October the national energy board approved an application by Apache Canada and EOG Resources Canada for a 20-year export licence.

DEVELOPMENT WAY SAILS - FINALLY

  

Our “Ship of the Week” for March 30 finally took her leave of Vancouver on April 7. Following loading of Seaspan equipment headed for scrap in China, the vessel was delayed for several days to remedy issues under a Port State Control detention and to allow her cargo to be properly secured (easy to see why). The pictures supplied by Captain Jostein Hoddevik of IMS Marine Surveyors & Analytical Laboratories Ltd. were taken from the safety of his balcony. 

CN OFFERS NEW STEEL-WHEEL INTERCHANGE SERVICE WITH CSXT IN CHICAGO

CN announced a new steel-wheel-interchange service with CSXT Transportation (CSX) over Chicago. The service gives container imports moving over CN's network from the ports of Vancouver and Prince Rupert efficient access to key Ohio Valley markets.

UBC SAUDER SCHOOL OF BUSINESS – SUMMER INTERNS

The Chamber of Shipping recently hosted second and third year students from UBC’s Sauder School of Business.  A number of these students have expressed an interested in furthering their studies in the Transportation and Logistics option offered at the university and are keen to find either a paid or unpaid internship starting in May.  If your company is interested in taking on an intern, please contact the Bonnie Gee or Stephen Brown at the COS secretariat for more information.

Government Updates

FISCAL RESTRAINT MEASURES TAKE EFFECT

This week more than 5,500 workers in at least 23 departments were served notices of “affected” status following the budget announcements last week.   This is the first step in the federal process for eliminating jobs and not all affected workers will be laid off as some may be moved to other departments. More than 2,000 of the affected jobs are located in the Ottawa region; 775 are in the Prairies; 236 in the Atlantic region and in Quebec; 222 in British Columbia; and 11 in the North.  Some of the departments with a high number of PSAC members who were notified include:

Canada Border Services Agency: 1,137
Health Canada: 715
Agriculture Canada: 689
Public Health Agency of Canada: 483
Canadian International Development Agency: 534
Citizenship and Immigration: 339
Canadian Heritage: 258
Veterans Affairs: 261
Environment: 137

Transport Canada has notified the Chamber of Shipping that they face a 10.7 per cent reduction in their budget which results in a reduction of $61.8 million in funding by 2014-2015.  Changes identified for TC will affect all areas of the department, and fall under three broad categories: Overall Efficiencies; Back Office Streamlining; and Program Changes. The key program change is the integration of Marine Safety and Marine Security Programs and modernizing select Marine Safety service delivery models. 

VESSEL POLLUTION AND DANGEROUS CHEMICAL REGULATIONS

First phase the regulatory amendments to the Vessel Pollution and Dangerous Chemical Regulations were completed and published in the Canada Gazette Part II – April 11, 2012.  The second phase of the regulatory amendment that will encompass requirements for the Emissions Control Area are expects to be published by the end of the month in preparation for the ECA implementation date of August 1, 2012.

UPDATE: IMPLEMENTATION OF ISPM 15 BETWEEN CANADA AND THE US

Canada and the United States continue to work on implementing the International Standard for Phytosanitary Measures (ISPM) 15, the standard that affects treating packaging material made of wood.  The date for full implementation has not been confirmed. Once the date has been confirmed by Canada and the United States, industry will be informed by the Canadian Food Inspection Agency and a phase-in period of up to 18 months will begin.

ACI UPDATES

The Canada Border Services Agency’s Electronic Commerce Unit has advised that effective August 25, 2012, the requirement to submit the UN prefix for the dangerous goods code transmitted in the cargo maps for ACI Air, ACI Marine, ACI eManifest Highway and CSA (Customs Self Assessment) Highway will be removed.

The dangerous goods code will be numeric 4 (n4) only and any codes submitted with the UN prefix will be receive a reject from the functional level (997 message) indicating that the field exceeds the allowable size.  The ACI Air, Marine, eManifest Highway and CSA Electronic Commerce Client Requirements Documents (ECCRD) will be updated accordingly.

For any question concerning EDI formatting for ACI Air, ACI Marine and CSA Highway, please contact the Electronic Commerce Unit at 1-888-957-7224, option 1.

CUSTOMS NOTICE12-011 STEEL AND STEEL PRODUCTS – ELIMINATION OF INDIVIDUAL PERMITS

CN 12-011 advises that importers of steel and steel products will no longer be required to obtain individual permits but will, instead, be provided by FAITC with general import permits (GIP) for all steel covered by the Import Control List of the Export and Import Permits Act.

The new import permit system will eliminate a need for importers of steel and steel products to provide to the Canada Border Services Agency (CBSA) the individual permit information (electronic transaction record or paper copy of the transaction record) with the release request.

Other News

TITANIC SINKING MEMORIAL VOYAGE UNDERWAY

  

The cruise ship Balmoral sailed from Southampton UK on Easter Sunday on a 12 night “Titanic Memorial Cruise” carrying relatives of some of the more than 1,500 people who died aboard the Titanic nearly 100 years ago when she he ship came to grief on Saturday April 14 1912. The memorial cruise was panned to retrace the ship's voyage including a stop at the precise location where the sunken vessel lies. When she sailed, many passengers were in period dress and in a touching gesture, a parade of children walked through the streets of Southampton with placards, one in memory of each member of the ship’s crew (below right). A service will be held at 11:40 pm tomorrow to mark the moment Titanic hit the iceberg, and later at the exact moment when she sank at 2.20 am Sunday April 15 1912.

      

  

Balmoral is carrying 1,309 passengers, precisely the same number as the Titanic. The aim of the cruise organizers was to recreate the onboard experience, including the exact same menus and a live band playing music from that era, in a tribute to Titanic's musicians who played their instruments until the moment the ship sank. Passengers from 28 countries paid from $4,500 to $9,500 each for the experience. Balmoral will also call at Halifax, Nova Scotia, where passengers will visit Fairview Lawn Cemetery, where 121 victims of the disaster are buried before heading to New York, the intended final destination of Titanic 100 years ago.

DRIFTING FISHING BOAT SUNK BY USCG

The Japanese fishing boat Ryou-Un Maru which was cast adrift last year by the Japanese tsunami is now at peace on the ocean bottom after being unceremoniously sunk by shell-fire by the US coastguard. After making her lonely journey across the Pacific, she didn’t go without a fight taking four hours to sink in around 6,000 feet of water 180 miles west of the southeast Alaska coast.

    

                                          Ryon-Un Maru under fire

Japanese data estimates that some 1.5 million tons of debris was washed out to sea during last year’s earthquake and tsunami. Whilst some of it will have sunk or degraded, it is inevitable that some will find its way onto North American beaches later this year and next. 

EGT GRAIN TERMINAL SUFFERS FIRE DAMAGE

  

                            pictures taken at dock and from across the Columbia River during the blaze

Firefighters were called to extinguish a blaze in the conveyor system tower at the new EGT grain terminal dock at the Port of Longview last Saturday morning. A small amount of burning debris fell into the hold of a vessel on dock Navios Gemini S, but the ship was not otherwise damaged. The $200 million EGT terminal loaded grain its first ship Feb. 7 following a lengthy labor dispute with the ILWU which delayed the opening of the terminal, which first unloaded rail cars last September. The two sides reached a settlement in January this year brokered by the State Governor. 

AUSTRALIAN REPORT CRITICAL OF LACK OF PORT INFRASTRUCTURE PLANNING

A review of planning strategies in Australia’s capital cities has delivered a scathing report into national infrastructure, finding that none fully meet the targets set by federal and state leaders. Transport and freight and freight corridors were identified as the worst pressure points, with a warning the city’s ports and infrastructure will struggle to handle future growth.

The Reform Council, set up by the Council of Australian Governments (COAG), was asked by the federal Labor government in 2009 to review city plans against nine criteria including housing affordability and ability to cope with swelling populations. The report is uncompromising in criticizing the highly political debate surrounding infrastructure priorities.

Meanwhile, an agreement has been reached under which the Port of Rotterdam, Europe’s largest maritime gateway, will work with local authorities to develop a $2.2 billion greenfield port to the north of Rio de Janeiro. “Porto Central” is intended to service Brazil’s urgent need for new bulk and break bulk handling facilities in addition to meeting the needs of the country’s rapidly expanding oil and gas industry.

PRESSURE TO MODIFY JONES ACT FROM GUAM

Senator John McCain has again failed in his annual attempt to have the Jones Act abolished but this time he has an ally in the form of  a resolution tabled in the Guam legislature. The resolution requests the territory’s delegate to the US House of Representatives to present a Bill that would exempt Guam, Puerto Rico, Hawaii and Alaska from the Jones Act’s US-build requirement. Guam’s move is prompted by Matson Navigation being the last man standing in offering a liner service to the territory. The Jones Act of 1920 requires cabotage tonnage to be at least 75% US owned, at least 75% US citizen crewed and US-built. Guam itself already has an exemption from the US-build requirement but unless carriers can also offer a tandem service to Hawaii, the concession doesn’t help as there is no economic viability.

PIRATES TEMPORARILY TAKE CHINESE CARGO SHIP

The Chinese multi-purpose general cargo vessel Xiang Hua Men owned by Nanjing Ocean Shipping Co Ltd was temporarily hijacked late last week near the south Iranian port of Chabahar while en route to Bandar Khomeyni.  At the request of the Chinese government, Iranian naval forces promptly intercepted the vessel and arrested 13 (unlucky number) pirates. The gun slinging “Al Capone” of Somali piracy, a one “Garaad Mohammed” is understood to be among those captured and who is now a guest of the Iranian navy. Mr Garaad is known to have been involved in hundreds of attacks on merchant shipping since Somali piracy first became that country’s leading industry some five years ago.

  

The widespread use of armed guards by ship owners when transiting the Gulf of Aden has clearly proven a deterrent to Somali pirates and the signs are that they are becoming desperate to keep their cash flow going. The small cargo vessel Leila was released this week $250,000 after being held for two months according to the much read “Somaliland Sun newspaper”. Following the intervention of Tribal Elders, the Somali cargo owners are understood to have written the cheque. Of significant concern to the international marine community is that on the other side of Africa, Nigerian pirates are now operating up to 300 miles off-shore using mother ships.

Market Update

A record 139 bulk carriers representing 7.8 million tons of capacity were sold for demolition in the first three months of this year, representing the largest quarterly number ever. Unfortunately the pace of new deliveries continues to out-strip those heading for razor blades so although the Baltic Dry Index didn’t move a whole lot over the week, it was at least in the right direction closing on Thursday on 960 points, compared to 928 points last week and 930 points the week before.

Cape Size       Panamax           Supramax Index                                            1576                1110                    930 One week ago                               1507                1036                    949 Spot time charter                        $7,100/day      $8,900/day           $9,700/day One week ago                            $6,200/day      $8,300/day           $9,900/day

Tankers: China’s first quarter crude oil imports rose 11.4% to 5.6m bpd over the same period in 2011, almost double the 6% average growth last year. In the company of several other countries, China is stockpiling crude in the face of the current tensions with Iran whilst also boosting the second phase of strategic petroleum reserves, which total 180m barrels. From an owner’s perspective, the realities of a 380 CST bunker price holding well above $700 per ton this year has forced the tanker sector into its own brand of slow steaming on both loaded and ballast voyage legs. Loaded legs are being performed at 12-13 knots whilst ballast legs are down to as low as 10 knots.

 

Upcoming Events

NAUTICAL INSTITUTE (BC BRANCH) AGM AND LUNCH

April 14th - The B.C. Branch of The Nautical Institute will hold its AGM and lunch at 11:00 hours on Saturday April 14^th at The Coast Tsawwassen Inn in Tsawwassen. The guest speaker for lunch will be Mr. Jay Straith of Canadian Artificial Reef Consulting. Mr. Straith will give insight into a unique way of re-cycling old ships. Guests are welcome for the lunch and presentation. Register for this event and find out complete details at www.nauticalinstitute.ca.

BUSINESS OF SHIPPING COURSE

April 19 – The next Business of Shipping Course will be a half day session covering vessel and port operations in the Asia Pacific Gateway.  For more information see the attached registration form or contact Rose Bray at 604-681-2351 or via email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

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.

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.

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/

Apr 14              Nautical Institute BC Branch Annual General Meeting
Apr 16              Meeting on CBSA Carrier Code Policy Change @ 11:00
Apr 17              COS Liner Committee Meeting @ 10:00
Apr 17              COS Navigation & Pilotage Committee Meeting @ 12:00
Apr 18              Conference Call on Timber Deck Code Revisions @ 09:00
Apr 19              ISSC Board of Directors Meeting @ 12:00
Apr 19              Business of Shipping Course (half day) – Vessel Operations
Apr 20              COS Ship & Port Operations Committee Meeting @ 10:00
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 29-30       Green Marine Annual Conference – Green Tech
Jun 7                Business of Shipping Course (full day) Vancouver Island Convention Centre, Nanaimo
Jun 15             Vancouver Grain Exchange Golf Tournament

Ship of the Week

                       Carpathia 1903-18

With the attention given to the Titanic this week, we decided to dedicate our “Ship of the Week” spot to Carpathia, the vessel which rescued the 712 survivors of the disaster. Carpathia was owned by Cunard, the bitter business rival of White Star Line, the owner of Titanic. Carpathia left Liverpool on her maiden voyage on May 5 1903 and plied the Liverpool to New York - Boston route in the summer, and in winter she generally carried immigrants from the Mediterranean to the United States.

Arthur Rostron, a native of Bolton, Lancashire was born in 1869 and first went to sea under sail at the age of 13, joining the Naval training ship Conway. On the night of 14 April 1912, whilst on passage from New York to Liverpool, Captain Rostron was asleep in his cabin when wireless operator Harold Cottam burst in and told him of Titanic's distress signal and the ship’s course was rapidly altered to head for her position, some 60 miles away. 

     

Captain Rostron                          passengers tend Titanic's survivors                       Captain Rostron with "The Unsinkable" Molly Brown

During the frantic few hours before reaching Titanic’s position, emergency preparations were made to receive survivors. Despite the fact that his ship was capable of only 14 knots, Captain Rostron ordered all hot water, steam and other heat sources cut off to provide all available steam to the ship’s boilers to gain more speed, notwithstanding that he knew he was steaming blind through ice-fields.

At 4.00 am, April 15, Carpathia arrived on scene and began picking up survivors and lifeboats from the Titanic. The first boat was retrieved at 4:10 am, the last at 8:30 am. As noted, a  total of 712 people were saved and 1,503 perished. As there were insufficient resources on board to make it to Europe, Captain Rostron decided to return to New York, arriving on April 18 when the extent of the tragedy was fully learned.  After the last survivor had disembarked and Captain Rostron had completed a statement for a U.S. Senate inquiry, the Carpathia was allowed to depart.

For his role in the rescue, Captain Rostron was awarded a silver cup and gold medal by survivors, the presentation being made by the campaigner and social activist Molly Brown. He was later received by President Taft at the White House who presented by him with a personally signed letter of thanks. In addition, just a few months later he was presented by President Taft with the Congressional Medal of Honour, the highest compliment the United States could confer upon him. In fact the whole crew of the Carpathia were awarded medals by the survivors – officers silver, crew members bronze.

    

After a year in command of Carpathia, Captain Rostron was transferred to the Caroniain in 1913. Between then and the end of World War 1 he would also take command of the Carmania, Campania, Lusitania, Aulania and Mauretania. In 1915, whilst commanding the Aulania, Captain Rostron  was involved in the shipping troops to the disasterous Battle of Gallipoli. After World War I he was appointed Knight Commander of the Order of the British Empire and was made the Commodore of the Cunard fleet in 1927, commanding Berengaria, before retiring in 1931. He died in Southampton in 1940 and a plaque is to be placed at his home, which still stands, on Sunday April 15, to mark the 100th anniversary of the event.

Carpathia herself continued in commercial service throughout the First World War until on 17 July 1918 when travelling in a convoy bound for Boston, she was struck by two torpedoes some 120 miles west of Fastnet, Southern Ireland. A third torpedo hit the ship as the lifeboats were being manned killing five of her crew. Survivors were rescued by a warship and brought to Liverpool but Carpathia sank at 12.40am that same day.

“Cunard Line” and Titanic’s owners “White Star Line” under the full economic impact of the 1930s Great Depression agreed to a full merger in 1934, henceforth being known as “Cunard White Star Line”.