News Blog
COS Weekly News - 10 November 2011

COS News – Week ending 10 November 2011
Issue No. 183

In Burlington on the shores of Lake Ontario stands a memorial dedicated to the memory of the 31 warships and the 2024 naval personnel of the Royal Canadian Navy. It also honours the 75 ships and 1466 merchant seamen of the Canadian Merchant Navy who were lost during World War II. The wall also lists the names of the 527 warships and 360 merchant ships that served in the Canadian Navy and Merchant Navy respectively from 1939 to 1945.
NEW BIGGER SHIPS EXPAND BC POTASH TRADE

The arrival of the U-Sea Colonsay’s maiden voyage to Neptune Terminals on November 8th made headlines. The U-Sea Colonsay is Canpotex’s new potash ship is state-of-the-art with new technologies that will ensure modern, cost- effective and environmentally friendly ocean transportation services. Scott Rudderham, Canpotex’s vice president, operations, noted the importance of having reliable infrastructure and ocean freight services.
Neptune Terminal’s potash-handling annual capacity is 11.5 million tonnes. Potash shipments rose by more than 160 per cent over 2009 shipments to 5.5 million tonnes at Neptune last year, and are projected to exceed 7.2 million tonnes in 2011.
NORTHWEST PORTS WIN ENVIRONMENT AWARD
The ports of Tacoma, Seattle and Metro Vancouver, B.C., will be honored this week with the Environmental Achievement Award from the Pacific Northwest International Section of the Air and Waste Management Association.
The association’s award recognizes the Northwest Ports Clean Air Strategy for innovative techniques that reduce or prevent air pollution or waste. The Northwest Ports Clean Air Strategy is the first and only three-port and international agreement to reduce greenhouse gas and diesel emissions from maritime operations.
By the strategy’s first milestone in 2010:
- 44 percent of ships calling frequently used cleaner-burning fuels or electrical shore power at berth;
- 62 percent of diesel-powered cargo-handling equipment met the performance measure through retrofits, replacements or use of low-sulfur fuels; and
- 98 percent of drayage trucks met the measure through outreach, engine retrofits or incentive programs.
PORT METRO VANCOUVER CONCLUDES SUCCESSFUL CRUISE SEASON
Port Metro Vancouver posted a 15 per cent increase in passengers this season over 2010. Between May and October 2011, the Port welcomed 663,425 passengers on 27 different vessels over 199 cruise ship calls.
During the cruise season, 35 vessels connected to the Port's shore power facilities, reducing greenhouse gas emissions by 1,318 tonnes. Through the Port's EcoAction Program, four cruise lines have earned Port Metro Vancouver's Blue Circle Award, a recognition reserved for only the highest emissions-reduction achievements by marine carriers that call on the Port. The cruise line recipients include Holland America Line, Princess Cruises, Regent Seven Seas Cruises and Silversea Cruises.
Other News
REMOVAL OF BUNKERS FROM CONTAINER SHIP RENA ALMOST COMPLETE
Despite continued poor weather, salvage teams are close to completing removal of all bunkers from the container ship Rena which last month grounded on Astrolobe Reef in the approaches to Tauranga, New Zealand. Sonar is being used to locate containers already lost overboard and underwater locator beacons have also been attached to the most vulnerable containers onboard in order to facilitate recovery, should they be lost.

Operations also continue to clean up minor oil residues on local beaches using grooming equipment. Work to remove remaining containers from the vessel will begin once removal of bunkers is complete with a crane barge already on hand. The bow section of the wreck of the Rena is firmly aground on the reef but the stern section is moving with the swell. Maritime New Zealand will authorize the complex operation of wreck removal once the immediate pollution threat is removed. Hull insurance on the Rena is led by the Swedish Club which also provides the vessel’s P&I cover.
THREATENING BEETLES CAUGHT AT LAX, LA/LB SEAPORT
US Customs and Border Protection agriculture specialists at Los Angeles International Airport and Los Angeles/Long Beach Seaport intercepted a total of five live larvae, two dead adults and three cast skins of Khapra beetle in shipments arriving from India and United Arab Emirates. The insecticide-resistant Khapra beetle is among world’s most destructive pests. As of Oct. 21, CBP agriculture specialists have made 190 Khapra beetle interceptions at U.S. ports of entry this year compared to 37 last year.
The Khapra beetle can survive for long periods of time in hot, dry conditions. Infestations can lead to economic loss of valuable grain or other domestic or export products; lowered quality of products due to contamination; costs associated with prevention and treatment; and consumer health risks when exposed to products contaminated with insect parts.
Countries known to have Khrapa beetle are Afghanistan, Algeria, Bangladesh, Burkina Faso, Cyprus, Egypt, India, Iran, Iraq, Israel, Libya, Mali, Mauritania, Morocco, Myanmar, Niger, Nigeria, Pakistan, Saudi Arabia, Senegal, Sri Lanka, Sudan, Syria, Tunisia, Turkey and United Arab Emirates.
2011 SET BE A RECORD YEAR FOR BULK CARRIER DELIVERIES
Bulk carrier deliveries for 2011 are now forecast to increase the overall bulk supply side by between 95-100 million tons DWT, up by around 20% up on the 80 million tons DWT delivered in 2010. The Panamax sector is perhaps illustrative of the trend across the sector despite efforts to defer deliveries into 2012.

CONTAINER SECTOR LAYUPS ACCELERATING
Container vessel layups are forecast by Alphliner to increase by around 50% over the next two months to reach 600,000 TEU by early January as several services are being terminated or suspended in an effort to reduce the imbalance of supply and demand in the major trades. Current laid up capacity is around 400,000 TEU comprising 185 ships, most belonging to non-operating vessel owners. Some 10% of Trans-Pacific capacity has also been cut since Q2 2011 in a bid to stabilize rates.
The predicament has been accelerated by predicted fleet growth of around 8.5% in 2011 and overall fleet growth of around 2 million TEU since the turn of the year 2009/2010, resulting in the “active fleet” growing by 3½ million TEU in 20 months. Rates from Asia to Europe are languishing at $750 (down 50% since April this year) in a heavy loss making market for all carriers and further compounded by the dire economic situation in Europe.
AUSTAL BUYS PHILIPPINE YARD
Highly successful Australian shipbuilder Austal will open a third shipyard next year after buying the former FBMA Marine Inc. plant at Balamban, Cebu in the Philippines. The decision to buy a yard in the Philippines is a response to the continuing strength of the Australian dollar which constrains Austal’s home yards in terms of international competitiveness. Austal plans to focus its Australian shipbuilding facilities on the defence sector but says it will continue to develop new products for emerging markets, to be constructed in its regional manufacturing facilities.

In Mobile, Alabama this week, 2011, Austal held a keel-laying ceremony for its second Joint High Speed Vessel (JHSV), "Choctaw County" (JHSV 2), one of seven Austal-designed 103-metre US Navy Joint High Speed Vessels under contract with the US Department of Defense
RUSSIAN NAVY VISITS VANCOUVER

An imposing display of Russian military might is anchored at Canada Place today. The Russian missile cruiser Varyag and tanker Irkut, will be alongside Canada Place until November 11th.
The Varyag is 187 metres long, weighs in at 11,370 tonnes and carries a crew of 515. The Irkut is slightly smaller at 130 metres and 11,140 tonnes with a crew of 62. Russian sailors will participate in Remembrance Day events at the Pioneer Square Cenotaph on Friday and spend time socializing with members of the Canadian navy.
The ships arrived in Vancouver Tuesday after conducting exercises off the coast of Vancouver Island on Monday with Canada’s HMCS Algonquin, which is accompanying the Russian vessels. Vancouver is the final stop on the ships’ Pacific tour, which also included Japan and the U.S., and is aimed at building naval cooperation, according to an official statement.
Market Update
Despite a fall off in iron ore prices of 30% since September to the lowest levels of the year, Capesize rates are sliding fast given the slowdown in iron ore shipments from Australia to China. As many vessels choose to ballast from Asia towards the Atlantic in the hope of alternative cargoes, rates for voyages out of Brazil are also feeling the pinch. It appears that well stocked Chinese mills are holding back on new orders to force prices further down.
Cape Size Panamax Supramax
Index 2993 1770 1336
One month ago 3546 2062 1583
Spot time charter $25,500/day $14,200/day $14,000/day
One month ago $31,000/day $16,500/day $16,500/day
Upcoming Meetings and Events
PLIMSOLL CLUB FALL BANQUET
Nov 18 – Reserve your tickets today for the Plimsoll Club’s Annual Fall Banquet. This year’s event will be held at the Fairmont Waterfront Hotel with proceeds benefiting the Greater Vancouver Food Bank and the Surrey Food Bank. For more information see the attached information.
INSTITUTE OF CHARTERED SHIPBROKERS PUB NIGHT
Nov 23 – The Canada Branch will hold its next pub night at Mahoney and Sons and this event is sponsored by Teekay Shipping. See attached for more information.
BC MARINE INDUSTRY CONFERENCE
Nov 30 & Dec 1 – Hosted by the BC Marine Trades Association, the conference is primarily designed for recreational boaters, however there are a number sessions that will appeal to many small business owners. To learn move, visit http://www.bcmta.com/conference/.
Nov 11 Office Closed – Remembrance Day – Statutory Holiday
Nov 15 BCMEA Ship Owners Committee Meeting
Nov 16 Pacific North West Economic Region (PNWER) Winter Meeting
Nov 16 COS Liner Committee Meeting @ 10:00
Nov 17 COS Ship & Port Operations Committee Meeting @ 12:00
Nov 18 COS Board of Directors Meeting @ 10:00
Nov 18 Plimsoll Club Annual Fall Banquet
Nov 18 Vancouver Transportation Club – NSR Pub Night @ Moose’s
Nov 21 PMV EcoAction Program Improvement Discussions
Nov 22 VMAA Board of Directors Meeting
Nov 23 COS Board of Directors Strategic Planning
Nov 23 ICS Pub Night @ Mahoney’s
Nov 30 BC Marine Industry Conference
Dec 2 Vancouver Grain Exchange Christmas Lunch
Dec 7 COS Members’ Appreciation Reception
Dec 8 CIFFA Christmas Lunch
Dec 15 Vancouver Transportation Club Christmas Dinner
Ship of the Week

HMS Thane – 1943
As we again take time to remember those who sacrificed so much in the hope of a better world, it is worth recalling World War II activity in Vancouver. The aircraft carrier USS Sunset was built by Seattle-Tacoma Shipbuilding in 1943 and immediately transferred to the United Kingdom under Lend-Lease agreement. After fitting out in Vancouver Shipyards, she was commissioned as HMS Thane (D48) in the Royal Navy but manned primarily by Canadians. HMS Thane operated in the North Atlantic protecting convoys and ferrying aircraft for use in the European Theater until she was torpedoed by U-1172 and severely damaged in January 1945 while in the Irish Sea. Taken the Firth of Clyde in southwest Scotland, she was declared a constructive total loss and decommissioned.
Of current day interest is that Mr. Ivor O’Connell, father of our well known Nanaimo based ship’s agent, Brian O’Connell, met his wife-to-be whilst standing by HMS Thane in Vancouver. Mr. O’Connell volunteered for the Royal Navy Reserve at the outset of World War II in 1939 and after initially serving as a junior officer on armed merchant cruisers, transferred to escort carriers. In 1947 he joined the National Harbours Board, eventually rising to Chief of Operations. Mr. O’Connell was instrumental in the commissioning of Vancouver’s first container gantry at what is now Centerm and went on to serve as terminal manager for the opening of Vanterm and subsequently Lynnterm from where he retired in 1984 after 37 years of service. Mr. O’Connell passed away in 2004.

MS Thane entering Burrard Inlet and the late Mr. Ivor O’Connell
Before World War II, Canadian shipyards were, as a result of the Great Depression, largely run-down and technologically inferior to international competition. When Canada entered the war only six of British Columbia's yards were deemed capable of constructing standardized Liberty class merchant vessels. One was located in Victoria, one in Prince Rupert and four in Vancouver. Even so, the two located on the inlet's north shore, Burrard Dry Dock Company and North Van Ship Repairs, produced close to half of Canada's total output of 354 vessels, as well as the vast majority of the 255 built in British Columbia.

views of Burrard Drydocks in 1944 when some 10,000 persons were employed in the shipyard including many women
As we now begin a new era of shipbuilding following the Seaspan’s success in being awarded the non-combat portion of the government’s National Shipbuilding Procurement Strategy, we should perhaps take a moment to remember that we have an opportunity to build on many years of proud tradition.
COS Weekly News - 4 November 2011

COS News – Week ending 4 November 2011
Issue No. 182
PORT METRO VANCOUVER PUBLISHES FEE AMENDMENTS FOR 2012
Late last week Port Metro Vancouver published its Notice of Fee Amendments effective January 1, 2012. Modest increases to container and cargo wharfage and berthage are documented in the revised Fee Document.
DP WORLD TO MANAGE NANAIMO FACILITIES
The Nanaimo Port Authority is pleased to announce that effective January 1, 2012, DP World Vancouver will be the terminal managers at both the Duke Point Deep Sea Terminal and the Nanaimo Assembly Wharf facilities.
Commenting on this recent change, Port President &
REMOVAL OF TEMPORARY BARGE RAMP AT DELTAPORT
As part of the DP3 Project, in 2009 a temporary barge ramp was constructed at the south side of the Deltaport Tug Basin to allow for the import of granular material, rock, and asphalt for the construction of the DP3 uplands terminal area and the East Causeway Habitat Compensation works. As specified by the Department of Fisheries, three years from installation the barge ramp must be removed and the area reinstated to the original berth 3 specifications.
The main elements of the removal work include:
- Removal of concrete roadside barriers
- Removal and off-site disposal of the ramp structure such as asphalt pavement, mooring piles, support piles and other equipment
- Demolition and off-site disposal of the reinforced concrete abutment wall, pile cap, and removal of tie rods and end anchorages
- Disconnection and removal of electrical elements
- Installation of navigation pile
- Reinstatement of crest protection rock, and restoration of original slope and crest protection, at south side of tug basin.
Construction scheduling is subject to low tides, which at this time of year is generally during the evening and overnight, into the early morning. It is expected that noise and truck traffic may increase along the Deltaport Causeway during these works, and we will be sure to minimize construction impacts as much as possible.
Work is underway and, weather permitting, is expected to be complete by end of December 2011.
CONTAINER SANITATION ISSUES
The Canadian Food Inspection Agency is participating on the committee established by signatories of the International Plant Protection Convention to develop standards to minimize pest movement by sea containers and conveyances in international trade. The standard is intended to provide guidance to national plant protection organization as to:
- identifying particular pest risks association with shipping containers as pathways in sea and overland transport between countries;
- identifying appropriate phytosanitary measures to mitigate risks, in particular prior to export, including procedures for packing and cleaning of the interior and exterior of shipping containers, as well as inspection and measures related to the area surrounding packaging, storage and loading locations; and
- identifying verification procedures.
If you comments on the development of these standards, please contact Nancy Kummen, CFIA Senior Forestry Program Officer at tel: 250-470-5048 or email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
TRANSPORT CANADA - NANAIMO
As a reminder, service hours for Transport Canada in Nanaimo are Monday to Friday 0830-1630. All requests for services must be made during these hours. Requests for Port Warden services outside these hours should be directed to the on-call Port Warden via Vessel Traffic.
RICHARDSON INTERNATIONAL TERMINAL
Revised marine and vessel charges effective November 15, 2011 have been posted on the COS website.
Government News
PROPOSED VESSEL POLLUTION AND DANGEROUS CHEMICALS REGULATIONS PUBLISHED
Transport Canada has published this morning in the November 5, 2011 Canada Gazette – Part I proposed Vessel Pollution and Dangerous Chemical Regulations which will repeal and replace the Regulations for the Prevention of Pollution from Ships and for Dangerous Chemical and Pollutant Discharge Reporting Regulations, 1995. The proposed Regulations specifically address a variety of categories of pollutants, including oil, noxious liquid substances, harmful substances carried in packaged form, sewage, garbage, air emissions, pollutant substances, and anti-fouling systems.
PROPOSED AMENDMENTS TO THE MARINE TRANSPORTATION SECURITY REGULATIONS
Transport Canada has released the latest proposed amendments to the Marine Transportation Security Regulations. Amendments include:
- Facilitating seafarer access to vessel and shore and allowing access to representatives of seafarers’ welfare and labour organizations;
- Adding new Pre-Arrival Information Report (PAIR) elements; and
- Requiring port and marine facility operators to clearly identify restricted areas
The department has advised that there will be no regional consultations and that the only public consultation will occur in Ottawa during the Canadian National Marine Advisory Committee (CMAC) meetings in Ottawa next week. Comments are due in by December 12, 2011. The consultation documents are available on the COS website.
FACILITATOR APPOINTED TO LEAD RAIL FREIGHT SERVICE DISCUSSIONS
The Government of Canada has appointed Mr. Jim Dinning to lead a six-month facilitation process to enhance rail freight service. This process follows the government's acceptance of the recommendations from the Rail Freight Service Review and will bring together shippers, railways and other key players to develop a template for service agreements and a streamlined commercial dispute resolution process.
The government intends to table legislation to give shippers the right to service agreements with the railways and provide a process to establish such agreements when commercial negotiations fail. In addition Transport Canada will establish a Commodity Supply Chain Table as a forum for exporters to address issues that affect the supply chain and to provide advice on the development of supply chain performance metrics. The government expects to launch this initiative once the facilitation process is complete or is nearly complete. News Release.
MINISTER EXPLAINS BENEFITS OF MARKETING FREEDOM FOR GRAIN FARMERS
Agriculture Minister Gerry Ritz appeared before the Legislative Committee on Bill C-18, the Marketing Freedom for Grain Farmers Act, to explain why Western Canadian farmers must have the freedom to market wheat and barley in the best interest of their individual farms.
CANADA TO ADOPT THE 2010 HNS PROTOCOL
Canada joined 7 other countries in a ceremony to sign a protocol that will establish a global liability regime and further protect our environment from the risks of marine transport. The Protocol of 2010 to the International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea, 1996 was signed at the International Maritime Organization (IMO) in London, United Kingdom. Canada was one of the states that led the development of this important protocol at the IMO.
The protocol will be tabled in Parliament this fall, and subsequently amendments to the Marine Liability Act will be introduced to implement the protocol by ensuring that compensation is available for victims of marine pollution and that polluters are held responsible. Following its ratification, Canada will be able to implement the protocol.
TRANSPORT CANADA NO LONGER ACCEPTING CASH
Effective December 1, 2011 Transport Canada will no longer accept cash as a method of payment for goods and services. This change will enhance the Department’s internal control framework and will substantially reduce the risk of cash being lost or stolen.
The only exceptions to the above policy change are:
- Fees collected under the Airport Vehicle Parking Charges Regulations;
- Fees collected in vending machines;
- Cash received in the mail.
CBSA RELEASES BAY PLAN EDIFACT MESSAGE FOR VERSION 2.0.7
Canada Border Services Agency has released the EDIFACT message standards for SMDG version 2.0.7 and is available on the COS website. Vessels carrying exclusively bulk or break-bulk cargo are not required to submit a bay plan. A webinar will be organized for early December to discuss the new transmission standards developed by CBSA and the implementation timeframes.
TRANSPORT CANADA CELEBRATES 75 YEARS
Beginning on November 2, 2011, and for the next year, Transport Canada (TC) is celebrating its 75th anniversary as a department of the Government of Canada. The transportation needs of Canadians and industry have evolved rapidly, and TC has played a key role in that evolution. On the occasion of its 75th anniversary, TC is launching its Flickr account. In the past year, the department has also launched its social media presence on Facebook, Twitter and Youtube.
Other News
UN AGENCIES UNVEIL TEN PROPOSALS TO SAFEGUARD THE OCEAN
United Nations agencies in Paris launched a plan to improve the management of oceans and coastal areas. The Blueprint for Ocean and Coastal Sustainability sounds the alarm about the health of the oceans, and explains how they influence our everyday life by regulating the climate, providing highly-nutritious and by sustaining livelihoods and economies. It recalls that although the ocean accounts for 70 per cent of the surface of our planet, only one per cent of it is protected. Presented at the United Nations Educational, Scientific and Cultural Organization (UNESCO) Headquarters during the 36th session of the General Conference, the Blueprint was prepared for consideration by the UN conference on sustainable development (Rio+20, June 2012).
FINAL REGULATION ORDER – CALIFORNIA AIR RESOURCES BOARD
The final regulations for Fuel Sulfur and Other Operational Requirements for Ocean-Going Vessels within California Waters and 24 Nautical Miles of the California Baseline was published and brought into effect on October 27, 2011. Of note, the amendments align with fuel sulphur requirements with the implementation of the North American ECA and for California waters the requirement for 0.1 percent (%) sulphur is extended from January 1, 2012 to January 1, 2014.
SEASPAN TEAMS UP WITH MSC
Seaspan has signed a five-year bareboat charter agreement with Mediterranean Shipping Co for two of its 4,800 teu vessels. The ships, built in the late 1980s, had been chartered previously to Maersk.
ONE BUSY BEE

This Halloween Monday Capt. Kevin O-BEE-Meyer, President and CEO of the Pacific Pilotage Authority, buzzed into a number of marine companies around town in disguise and managed to raise $918.50 for United Way this year. Kevin’s new motto is “Bee all that you can bee”. Great Job! Now what will he do for Movember?
Upcoming Meetings and Events
PLIMSOLL CLUB FALL BANQUET
Nov 18 – Reserve your tickets today for the Plimsoll Club’s Annual Fall Banquet. This year’s event will be held at the Fairmont Waterfront Hotel with proceeds benefiting the Greater Vancouver Food Bank and the Surrey Food Bank. For more information see the attached information.
INSTITUTE OF CHARTERED SHIPBROKERS PUB NIGHT
Nov 23 – The Canada Branch will hold its next pub night at Mahoney and Sons and this event is sponsored by Teekay Shipping. See attached for more information.
Nov 7 National Canadian Marine Advisory Committee (CMAC) Meetings
Nov 11 Office Closed – Remembrance Day – Statutory Holiday
Nov 15 BCMEA Ship Owners Committee Meeting
Nov 16 Pacific North West Economic Region (PNWER) Winter Meeting
Nov 16 COS Liner Committee Meeting @ 10:00
Nov 17 COS Ship & Port Operations Committee Meeting @ 12:00
Nov 18 COS Board of Directors Meeting @ 10:00
Nov 18 Plimsoll Club Annual Fall Banquet
Nov 18 Vancouver Transportation Club – NSR Pub Night @ Moose’s
Nov 21 PMV EcoAction Program Improvement Discussions
Nov 22 VMAA Board of Directors Meeting
Nov 23 COS Board of Directors Strategic Planning
Nov 23 ICS Pub Night @ Mahoney’s
Dec 2 Vancouver Grain Exchange Christmas Lunch
Dec 7 COS Members’ Appreciation Reception
Dec 8 CIFFA Christmas Lunch
Dec 15 Vancouver Transportation Club Christmas Dinner
Ship of the Week

MS Athena – the world’s oldest operating cruise ship
LOA 160m
Beam 21m
GRT 16,144
Passengers 500
Speed 19 knots
MS Athena is a cruise ship owned and operated by Classic International Cruises. She was built in 1948 as the MS Stockholm by Götaverken in Gothenburg for the Swedish America Line. Since her career with SAL she has sailed under the names MS Völkerfreundschaft, MS Volker, MS Fridtjof Nansen, MS Italia I, MS Italia Prima, MS Valtur Prima and MS Caribe, before beginning service under her current name.

Stockholm bow damage following collision and the Andrea Doria on her way down
As Stockholm she was known by the entire maritime world following a 1956 collision in thick fog off Nantucket with the SS Andrea Doria of the Italian Line (see newspaper clipping below). The collision resulted in the sinking of the latter ship. Although most passengers and crew survived the collision, the larger Andrea Doria luxury liner capsized and sank the following morning. Owing to the collision, 50% of the Andrea Doria's lifeboats were unusable. However, a number of ships responded and provided assistance, which averted a massive loss of life. Five crewmembers on the Stockholm were killed instantly and several more were trapped in the wrecked bow. Despite its having sunk about three feet (0.9 m), the crippled Stockholm helped in the rescue and ended up carrying 327 passengers and 245 crewmembers from the Andrea Doria, in addition to her own passengers and crew. After Andrea Doria sank, Stockholm sailed to New York City under her own power and arrived on July 27. Her crushed bow was repaired at a cost of US$1 million three months later.

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COS Weekly News - 28 October 2011

COS News – Week ending 28 October 2011
Issue No. 181
NEW REQUIREMENTS FOR REFRIGERATED CONTAINERS SERVICED IN VIETNAM
A potential hazard specific to refrigerated containers serviced in Vietnam in 2011 with contaminated refrigerant has been identified and brought to our attention by the BC Maritime Employers Association. Four units have experienced compressor ruptures resulting in three fatalities while pre-trip inspections were being conducted. It is believed that the explosions occurred when these units were powered on after an extended period of being off power. At least 900 refrigeration units have been quarantined. It has been deemed safe to remove the cargo from the container while the power is off and no work is being undertaken on the refrigeration system.
TSI, DP World, Fraser Surrey Docks and Maher Terminals are requiring steamship lines to verify the status of each refrigerated unit and provide confirmation that the unit has not been serviced in (Cat Lai) Vietnam during 2011 prior to arrival.
CANADIAN WHEAT BOARD LAUNCHES LAWSUIT
The CWB's farmer-controlled board of directors announced that legal action will be launched against the federal government in defense of Prairie farmers' democratic rights. The lawsuit states the government broke the law when it introduced Bill C-18 on Oct. 18 because it did not first conduct a plebiscite of affected producers, as required by Section 47.1 of the Canadian Wheat Board Act, which remains in force. Almost 40,000 producers participated in a CWB-run plebiscite over the summer, with 62 per cent voting to retain the single-desk marketing system for wheat.
GRAIN LOADING THROUGH FEEDER HOLES
An information sheet on the feeder hole loading procedures for loading grain during inclement weather in Port Metro Vancouver is available on the COS website.
NOTICE OF OPPORTUNITY FOR PUBLIC COMMENT ON DELTAPORT TERMINAL, ROAD AND RAIL IMPROVEMENT PROJECT DESCRIPTION
Port Metro Vancouver, as part of its Container Capacity Improvement Program, is assessing potential efficiency gains throughout existing Lower Mainland container facilities.
The Project will undergo a screening-level environmental assessment under the Canadian Environmental Assessment Act. As a preliminary part of this process, you are invited to review and provide comments on the Project Description for the Deltaport Terminal, Road and Rail Improvement Project. The Project Description includes:
- An overview of the key project components and activities; and
- A description of studies to be undertaken in support of the environmental assessment.
Public Comment on Project Description
A series of stakeholder meetings (3-6), and open houses (1-2) regarding proposed mitigation and compensation for potential project impacts (anticipated for late 2011);Comments will be accepted through written submission during the public comment period ending Thursday, November 10, 2011.
Please submit comments to:
Attn: Darrell Desjardin, Director, Sustainable Development
Port Metro Vancouver
100 The Pointe, 999 Canada Place
Vancouver, BC V6C 3T4
Fax: 1.866.284.4271
Email:
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
SOUTH SHORE ROADWAY CONSTRUCTION
Reconstruction of a manhole near SMIT Towing will start Friday, October 28th at 07:30 AM and continue until completed, sometime around noon. To allow the work to set properly there will be no traffic permitted on the reconstruction until Wednesday November 2nd at 06:00 AM. Two-way traffic will be maintained at all times during the construction and while the work sets. Please use caution and slow down while in this area.
Government News
CANADA PARTICIPATES IN SIGNING OF IMPORTANT IMO PROTOCOL
On October 25, 2011, Canada took part in a ceremony to sign a protocol that will establish a global liability regime and further protect our environment from the risks of marine transport. The Protocol of 2010 to the International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea, 1996 was signed at the International Maritime Organization (IMO) in London, United Kingdom. Canada was one of the states that led the development of this important protocol at the IMO.
The protocol will be tabled in Parliament this fall, and subsequently amendments to the Marine Liability Act will be introduced to implement the protocol by ensuring that compensation is available for victims of marine pollution and that polluters are held responsible. Following its ratification, Canada will be able to implement the protocol.
MINISTER OF PUBLIC SAFETY AT SECURETECH CONFERENCE
At the SecureTech 2011 conference held earlier this week in Ottawa, the Honourable Vic Toews, Canada’s Minister of Public Safety emphasized the need for greater collaboration and preparedness.
Public Safety Canada is continuing to work to:
- address border security threats (joint U.S.-Canada Declaration on a );Shared Vision for Perimeter Security and Economic Competitiveness
- respond to cyber security attacks (Canada’s Cyber Security Strategy) and promote cyber security awareness (October is Cyber Security Awareness Month);
- respond to national emergencies and threats (Federal Emergency Response Plan); and
- protect our critical infrastructure (National Strategy for Critical Infrastructure).
Other News
US CBP IMPOSES PASSENGER INSPECTION LEVY
Canadians travelling by air or boat to the United States face a new $5.50 surcharge being implemented by the Obama administration. As the governments battle over Buy American rules in the US jobs bill and other irritants, the two trading partners are now at odds over the surcharge on Canadians, Mexicans and others travelling stateside.
A bizarre provision in the US-Colombia free-trade deal officially signed into law Friday by President Barack Obama will see the Americans repeal an exemption that has excluded travellers from Canada, Mexico and the Caribbean from paying the customs user fee to enter the United States by air or sea. The “passenger inspection” levy —will apply to all commercial air and marine travellers from Canada, Mexico and Caribbean nations, and would be added to the cost of an airplane or boat ticket.
The countries have long been exempt from the fee, but the US government in its effort to raise other revenue expects to collect about $110-million annually from the tax. The new levy will not apply to Canadians crossing the land border. The Harper government is not impressed with the fee and is vowing to fight it.
NY OFFICIALS ANNOUNCE NEW BALLAST WATER TREATMENT STANDARDS
New legislation will require all ships transiting through New York waters to install equipment that will sterilize ballast water to a standard 100 to 1,000 times the current international standards, according to a report in the Maritime Executive. Executives of the Canadian St. Lawrence Seaway Management Corp., the U.S. St. Lawrence Seaway Development Corp. and various shipping firms have said that this type of regulation is impossible to meet.
Ships will be required to meet the first level of standards by August 1, 2013, and the higher second level by August 1, 2014. According to the study, Quebec and Ontario would be affected the most with a potential loss of US$8.5 billion in revenue, while the U.S. could lose US$2.2 billion.
REPORT ON THE IMPACT OF FUEL SWITCHING
The California Maritime Academy (CMA) has released a technical report on issues associated with the implementation of the California Air Resources Board (ARB) ship fuel regulation. While most vessel operators are successfully complying with the regulation without incident, some operators have reported operational difficulties that may be related to fuel switching from heavy fuel oil to distillate fuel. Vessels reporting a loss of propulsion during fuel switching have utilized the 2-stroke slow crosshead type diesel engine for propulsion and most have fewer than seven cylinders.
CSCL ANNOUNCES GIANT ORDER
China Shipping Container Lines has joined the boxship newbuilding rush with a potential order for a dozen vessels worth over $1bn. Eight 10,000-dwt ships will be built at Dalian Shipbuilding Industry and Hudong-Zhonghua Shipbuilding with options for four more. The eight vessels, costing $94.28m each, will be completed by the close of November 2013. The announcement follows recent reports that CSCL has seen a profit dive of almost $250m in the nine months of the year due to lower freight rates.
SMIT CAPTURES ZEEBRUGGE

Through its SMIT subsidiary, Royal Boskalis Westminster has been awarded a seven-year towage contract for the port of Zeebrugge. SMIT will station six tugs and a fire-fighting vessel in the Belgian port to service the large container vessels, Ro-Ros and LNG carriers.
NORTH VANCOUVER NAMES TOP 10 DIFFERENCE MAKERS
Earlier this week Neptune Terminals and Seaspan were named in the top 10 difference makers that help make North Vancouver a better place to live, work and play.
Neptune Terminals has been a North Shore neighbour for more than 40 years and participates in educational programs in North Shore schools which teach school kids and Capilano University students about the operations of the port. In addition, Neptune regularly supports the local Athletics for Kids program, Mission Possible, United Way and Canadian Blood Services.
Seaspan Marine with its regular staff of between 1,500 and 2,000 employees is one of the largest employers on the North Shore. And, with the recent award of an $8-billion federal shipbuilding contract, those numbers are expected to grow by an estimated 4,000 new jobs over the next eight years. Incorporated as Seaspan in 1970, the umbrella company is the only marine firm in Canada with a 5-year partnership with the World Wildlife Fund to protect endangered species and their habitat.
COCA-COAL GOES WHITE TO PROTECT POLAR BEARS
Cans of Coca-Cola are going from red to white as part of a new multimillion-dollar project promoting awareness about climate change and helping to protect an icon of the Canadian Arctic. The design is part of the soft drink maker's new partnership with the World Wildlife Fund, to create "safe areas" for polar bear habitat in Canada and other Arctic nations.
The company will donate $2 million to WWF over five years as part of the partnership as well as matching as much as $1 million in donations from the public. The company chose to focus on the polar bear in this and previous campaigns since it has been featuring the species in its advertising since 1922 and recognizes that some of the populations are being threatened by a rapidly warming Arctic. Nearly two-thirds of all polar bears now live in Canada.
MOVIN’ ON UP

The M/V Ocean Hope completed loading logs at Nanaimo on Wednesday. The Chief Officer wanted a picture as after his 26th log loading. He will be going home for a well deserved vacation, as will Captain Park who is recommending him for promotion to Master. Also seen in the picture is the ship’s 2nd officer accompanied by Darren Kurucz, newly trained Supercargo for Tidal Transport (whose father is also a Supercargo) and Brian O’Connell of Island Shipping.
Upcoming Meetings and Events
PLIMSOLL CLUB FALL BANQUET
Nov 18 – Reserve your tickets today for the Plimsoll Club’s Annual Fall Banquet. This year’s event will be held at the Fairmont Waterfront Hotel with proceeds benefiting the Greater Vancouver Food Bank and the Surrey Food Bank. For more information visit www.plimsollclub.ca.
INSTITUTE OF CHARTERED SHIPBROKERS PUB NIGHT
Nov 23 – The Canada Branch will hold its next pub night at Mahoney and Sons and this event is sponsored by Teekay Shipping. Contact Renae Warnock at tel: 604-681-2351 for more information.
Nov 2 Plimsoll Club Board of Directors Meeting
Nov 7 National Canadian Marine Advisory Committee (CMAC) Meetings
Nov 11 Office Closed – Remembrance Day – Statutory Holiday
Nov 15 BCMEA Ship Owners Committee Meeting
Nov 16 Pacific North West Economic Region (PNWER) Winter Meeting
Nov 16 COS Liner Committee Meeting @ 10:00
Nov 17 COS Ship & Port Operations Committee Meeting @ 12:00
Nov 18 COS Board of Directors Meeting @ 10:00
Nov 18 Plimsoll Club Annual Fall Banquet
Nov 18 Vancouver Transportation Club – NSR Pub Night @ Moose’s
Nov 21 PMV EcoAction Program Improvement Discussions
Nov 22 VMAA Board of Directors Meeting
Nov 23 COS Board of Directors Strategic Planning
Nov 23 ICS Pub Night @ Mahoney’s
Dec 2 Vancouver Grain Exchange Christmas Lunch
Dec 7 COS Members’ Appreciation Reception
Dec 8 CIFFA Christmas Lunch
Dec 15 Vancouver Transportation Club Christmas Dinner
Ship of the Week

Edda Fides – offshore accommodation vessel
This unusual looking vessel is the first ever purpose-built mono hull accommodation and service vessel. The vessel has built in new and groundbreaking equipment that is aimed at setting the standard in the offshore accommodation industry. The Voith Schneider propellers driven dynamic positioning system represents a 20% reduction in fuel consumption and emissions compared to standard propellers. The vessel is designed to meet the strictest international requirements for safety, efficiency, and comfort for both crew and offshore workers/passengers. Officially designated as accommodation vessels, these Floating Hotels are commonly referred to as Flotels on account of the high standard of accommodation, and support services designed to meet the needs of those working on offshore construction projects.
Built by Astillerios HJ Barreras, Vigo, Spain
Delivered May 2011
LOA 129m
Beam 30m
Accommodations for 600 persons in double cabins

The Edda Fides is marketed under “Edda Accommodation”, which is a part of the Østensjø Group in Haugesund. In addition to a number of tugs and support vessels, the company operates 10 offshore and sub-sea vessels in support of Norway’s offshore oil industry.
COS Weekly News - 21 October 2011

COS News – Week ending 21 October 2011
Issue No. 180
VANCOUVER SHIPYARDS AWARDED $8 BILLION CONTRACT
The National Shipbuilding Procurement Strategy (NSPS) Secretariat has announced the results of a Request for Proposals to build large ships for Canada. Seaspan Marine Corporation’s Vancouver Shipyards has been awarded the $8 billion non-combat package that includes construction of the Navy’s joint support ships, the Canadian Coast Guard’s off-shore science vessels and the new polar icebreaker. On the other coast, Irving Shipbuilding in Halifax has been selected to build21 combat vessels, including the Royal Canadian Navy’s Arctic Offshore Patrol ships and the Canadian Surface Combatants ships. This contract is estimated to be worth $25 billion.
Small ship construction (116 vessels), an estimated value of $2 billion, will be set aside for competitive procurement amongst Canadian shipyards other than the yards selected to build large vessels. Regular maintenance and repair, valued at $500 million annually, will be open to all shipyards through normal procurement processes.
Visit the National Shipbuilding Procurement Strategy website for more information.
CN AND SPECIALTY-GRAIN EXPORTER REACH AGREEMENT
CN and Agri-Food Central Ltd. announced an agreement to improve the service delivery performance and consistency of the supply chain for specialty grains moving from Western Canada to Mexico via rail and to other markets including those in Latin America through Atlantic, Pacific and Gulf coast ports served by CN.
Under the agreement, CN and Agri-Food Central have agreed to exchange information that will allow the parties to jointly measure rail service and supply chain performance, to cooperate on joint supply chain planning, and establish a process to address any rail service issues.
EFFICIENT NEW RAIL PRODUCT CREATES INTERMODAL OPPORTUNITIES
Canadian Pacific will be the exclusive Canadian rail transportation provider for Contrans, using innovative Raildecks multimodal flat rack containers. The agreement extends the long-haul efficiencies of rail to a markets currently served by transport trucks across Canada.
Canadian Pacific has been testing Raildecks' 53ft collapsible, multimodal carriers over the summer at its Toronto Intermodal Facility in Vaughn, ON. The testing proved the concept, as pipe and other industrial products moved seamlessly on CP's longhaul intermodal trains. Previously shippers relied on trucks to move these types of products over a long distance.
ASIAN GYPSY MOTH - END OF HIGH RISK PERIOD
The Canadian Food Inspection Agency has provided the attached notice to end the high risk period for Asian Gypsy Moth on October 15, 2011.
Government News
BC SETS YEARLY CHINA LUMBER EXPORT RECORD
BC Minister of Jobs, Tourism and Innovation, Pat Bell, announced that British Columbia has broken another record in lumber exports to China this year – with shipments already surpassing 2010’s final year-end record total. Overall exports for the first eight months of 2011 are valued at almost $3.4 billion, an increase of more than $1 billion or 42 per cent compared with the pace set over the same period in 2010.
CLEAN ENERGY MARKET OPPORTUNITIES FOR WESTERN CANADIAN BUSINESSES
Western Economic Diversification announced an investment of $150,000 towards WADE Canada to implement the Clean Energy Small and Medium Sized Enterprises (SME) Capacity Building Program.
The Clean Energy SME Capacity Building Program is providing 150 companies from across the West with access to resources such as workshops, training and business advisory services geared towards increasing their capacity to attract trade and investment opportunities. Up to 50 of these companies will also be selected to showcase and demonstrate their technologies to potential investors and partners at the Global Clean Energy Congress.
MANDATORY REPORTING OF EXPORT CARGO – APRIL 2012
Canada Border Services Agency has confirmed that mandatory reporting of export cargo will be required on April 1, 2012. Penalties will not apply until the Regulations come into effect in late 2014. A Customs Notice to this effect will be issued imminently. Paper filing of the B13A will be phased out and users will be encouraged to use the Canadian Automated Export Declaration (CAED) for marine exports. Industry is still in discussion with CBSA on requirements for those currently on summary reporting. The eligibility criteria and timelines are being reviewed. Attached is a presentation given to the Border Commercial Consultative Committee earlier this week.
Other News
VANCOUVER MARITIME MUSEUM RECEIVES $500,000 GIFT
The Vancouver Maritime Museum is excited and honoured to be the recent recipient of a gift of $500,000 from Mr. John Salisbury to create a new endowment fund in support of the RCMP vessel St. Roch. As the most significant item in the Vancouver Maritime Museum’s collection, and valued at over $2 million, the RCMP vessel St. Roch is always in need of conservation and care. The museum is currently undertaking a survey on the vessel and is preparing a conservation report for future action. The creation of this much needed fund will help the museum ensure that this icon of arctic sovereignty is preserved for future generations.
St. Roch is special not only for her history - The St. Roch was the first vessel to sail the Northwest Passage from west to east 1940-42, the first to complete the passage in one season 1944, and the first to circumnavigate North America - but also for the experience she offers. The ship is a unique artifact of arctic endurance, a compelling symbol of human endeavour in a forbidding land, and of ordinary men rendered heroic by unusual and extreme circumstances at the top of the world. St. Roch through its years of service in the Northwest Territories and the Arctic Ocean provides tangible proof of Canada’s sovereign claims to those regions.
The creation of this fund reflects Mr. Salisbury’s belief that both the history and social fabric of our province is uniquely tied to the water, whether it is the growth and development of BC’s economy through one of the busiest ports in North America, or the settlement and service of remote communities through our vast waterways.
Mr. Salisbury passed away peacefully on September 23, 2011. His very generous contributions in his final days to many local and provincial organizations, such as the Vancouver Maritime Museum, will be appreciated for many years to come.
Mr. John Salisbury was trained as a paratrooper near the end of the World War II. He was involved in mining in the Yukon and enjoyed taking mining courses at BCIT. He was also involved in a variety of business ventures across the province, including both plumbing and used auto parts for many years. His final years were spent enjoying both the waterways and community of Pender Harbour. The John Salisbury Endowment fund will be open to the public for further donations. Please contact Jana Lyons at Vancouver Maritime Museum for further information.
ILWU MEMBERS RATIFY GRAIN CONTRACT
International Longshore and Warehouse Union locals in the US Pacific Northwest voted to ratify a grain-handlers contract agreement that was tentatively agreed to on Sept. 14 by union negotiators and six grain terminals in the region. The new contract, which runs through Sept. 30, 2012, leaves the EGT grain export terminal in Longview, Wash., as the only grain terminal in the Pacific Northwest without an ILWU contract.
PIRACY LINKS TO THE AL SHABAAB GROUP GROWING
According to the head of the UN’s counter-piracy unit, cooperation between Somalia's al Qaeda linked militants and pirate gangs is growing as the al Shabaab group becomes more desperate for funding. Steed told Reuters that pirates taking ships and their crews hostages for lucrative ransoms would remain their main focus.
Upcoming Meetings and Events
PLIMSOLL CLUB FALL BANQUET
Nov 18 – Reserve your tickets today for the Plimsoll Club’s Annual Fall Banquet. This year’s event will be held at the Fairmont Waterfront Hotel with proceeds benefiting the Greater Vancouver Food Bank and the Surrey Food Bank. For more information see the attached information.
Oct 25 VMAA Board of Directors Meeting @ 12:00
Oct 26 PACMAR/NANS Meeting @ 10:30
Nov 2 Plimsoll Club Board of Directors Meeting
Nov 16 COS Liner Committee Meeting @ 10:00
Nov 17 COS Ship & Port Operations Committee Meeting @ 12:00
Nov 18 COS Board of Directors Meeting @ 10:00
Nov 18 Plimsoll Club Annual Fall Banquet
Ship of the Week
Cielo di Vancouver
Built 2002 in Shanghai Shipyard & Chengxi Shipyard Shanghai
LOA 185.5m
Beam 29m
Speed 14.5 knots
DWT 37,420 MT
TEU Capacity 1888
Medbulk’s history dates back to 1936 when the d’Amico family formed a shipping company in Salerno, Italy to handle imports of lumber for use in their own saw mills. In 1952 d’Amico Tankers Limited was formed when d'Amico Società di Navigazione S.p.A., the holding company of the d'Amico Group, was established in Rome. On the dry bulk side, the fleet consist of 10 conventionally craned “open hatch box-shaped” bulk carriers. In 2005, a strategic alliance with Glencore was formed that now operates as GLENDA International Management Limited.

COS Weekly News - 14 October 2011

COS News – Week ending 14 October 2011
Issue No. 179
PORT METRO VANCOUVER - PORT 2050
In 2010, Port Metro Vancouver embarked on a strategic visioning process called Port 2050. The results of the process, including four scenarios telling alternative stories of our future, are presented in a summary report. The outcomes of the Port 2050 process will guide future business priorities, shape new initiatives and ultimately transform every aspect of Port Metro Vancouver’s operations, beginning with the revision of our strategic vision and mission statements.
KITIMAT LNG EXPORT LICENCE APPROVED BY NATIONAL ENERGY BOARD
Kitimat LNG partners Apache Canada Ltd. (Apache Canada), EOG Resources Canada Inc. (EOG Canada) and Encana Corporation (Encana) announced that the National Energy Board (NEB) has granted Kitimat LNG a 20-year export licence to ship liquefied natural gas from Canada to international markets.
Kitimat LNG is currently carrying out a Front End Engineering and Design (FEED) study which will provide certainty around project design, construction timelines and costs and labour force requirements. The FEED study is expected to be complete by early in 2012 followed by a final investment decision by the partners.
Government News
CANADA AND BC TO CONSULT ON STRAIT OF GEORGIA CONSERVATION AREA RESERVE
The Honourable Peter Kent, Canada’s Environment Minister and Minister responsible for Parks Canada, announced with the Honourable Terry Lake, British Columbia’s Minister of Environment, that the governments of Canada and British Columbia have agreed on a proposed boundary for a national marine conservation area reserve in the southern Strait of Georgia also known as the Salish Sea. The proposed area extends from the southern tip of Gabriola Island to Saanich Inlet and Cordova Bay, just north of Victoria.
In-depth consultations with First Nations, local governments and stakeholders on the proposed national marine conservation area reserve will follow. The Government of British Columbia has agreed to transfer administration of the seabed to the federal government if a national marine conservation area reserve is established.
The Strait of Georgia is one of 29 marine regions that Parks Canada aims to represent as part of the national marine conservation area system. Ecologically sustainable fishing, navigation and recreation will continue.
CUSTOMS NOTICE 11-09 – ACI TRANSMISSION OF EDTL
Canada Border Services Agency has issued CN 11-09 to clarify the requirement regarding the transmission of estimated date and time of loading (EDTL) on the Advance Commercial Information (ACI) Marine Cargo Report (SO83).
The EDTL must be provided to the Canada Border Services Agency (CBSA) at least 24 hours prior to loading when the foreign port of load is in a country other than the United States and when one or both of the conditions below apply:
(a) If the Supplementary Data Required Indicator is “Yes”.
(b) When the cargo report has containerized goods or break-bulk goods without a ministerial exemption.
***Although the notice states that the EDTL must be included in the marine supplementary report, CBSA has since advised that this is not a current requirement
The carrier or freight forwarder may load the cargo at or after the EDTL if they do not receive a “Do not load” message.
MANDATORY eMANIFEST REQUIREMENT FOR HIGHWAY CARRIERS
Canada Border Services Agency (CBSA) has announced that eManifest requirements for highway carriers will be mandatory on November 1, 2012.
Now that all transmission options (Electronic Data Interchange and the eManifest Portal) are available and operating efficiently, the 18-month implementation timeline will begin November 1, 2011. In accordance with the eManifest implementation approach, the following key dates will apply to eManifest implementation in the highway mode:
- Highway carriers have 12 months to incorporate eManifest requirements into their business processes.November 1, 2011, to November 1, 2012
- eManifest requirements are mandatory. Highway carriers deemed to be non-compliant will be denied entry to and issued zero-rated penalties.November 1, 2012, to May 1, 2013
- The implementation timeline is complete. Highway carriers deemed to be non‑compliant will be denied entry to and issued monetary penalties.May 1, 2013
Note that the eManifest section of the CBSA Web site has been updated to better organize the content, accommodate the posting of policy decisions and interim highway processes, and include user information on, and access to, the eManifest Portal.
AMENDMENTS TO THE TRANSPORTATION OF DANGEROUS GOODS ACT
Regulations Amending the Transportation of Dangerous Goods Regulations (Amendment 10) are now published in the Canada Gazette Part II – October 12, 2011. The amendments add compensation guidelines for contractors and other parties authorized to implement approved Emergency Response Assistance Plans (ERAPs).
VOYAGE DATA RECORDER REGULATIONS
Also published in the Canada Gazette Part II are new Voyage Data Recorder (VDR) Regulations that will apply to new and existing domestic vessels and implement certain SOLAS Convention provisions by requiring that Canadian vessels engaged on international voyages be fitted with VDRs.
Other News
CALIFORNIA LOW SULPHUR FUEL UPDATE
The California Air resources Board (CARB) has advised that a revised regulation will be enforced from December 1, 2011 as follows:
Regulatory boundary change
- The regulatory boundary has been expanded in Southern California to be consistent with the Contiguous Zone, which is 24 nautical miles from the California “Baseline”. This new boundary includes the region 24 nautical miles from the California shoreline, including 24 nautical miles from the shoreline of each of the Channel Islands off California’s coastline.
- A small region within the 24 nautical mile boundary is exempt from the regulatory requirements to encourage vessels transiting to and from the Ports of Los Angeles or Long Beach to use the established traffic separation scheme in the Santa Barbara Channel.
Revised fuel requirements
|
Fuel requirement |
Effective date |
Percent sulphur content limit |
|
Phase I |
July 1, 2009* |
Marine gas oil (DMA) at or below 1.5% sulphur; or marine diesel oil (DMB) at or below 0.5% sulphur |
|
August 1, 2012** |
Marine gas oil (DMA) at or below 1.0% sulphur; or marine diesel oil (DMB) at or below 0.5% sulphur |
|
|
Phase II |
January 1, 2014*** |
Marine gas oil (DMA) or marine diesel oil (DMB) at or below 0.1% sulphur |
* No change from the existing requirements.
** Marine gas oil sulphur limit reduced from 1.5% to 1%. No change in marine diesel oil limit.
*** Implementation delayed from 2012 to 2014.
Changes to the Non-compliance Fee provision: The new provision provides the option to pay a fee in lieu of direct compliance with the regulation (using compliant fuels) under certain limited situations. Under the amendments, this provision is revised as follows:
- The non compliance fee is halved for vessels that purchase compliant fuel during their port visit and use the fuel in port and on departure from port while in regulated waters.
- Offshore anchorages made in conjunction with a port visit are not counted as a second port visit when calculating non-compliance fees.
The fee schedule is revised as follows:
|
California port visits |
Amended per-port visit fee* |
Fee prior to amendments |
|
1st port visited |
$45,500 |
$45,500 |
|
2nd port visited |
$45,500 |
$91,000 |
|
3rd port visited |
$91,000 |
$136,500 |
|
4th port visited |
$136,500 |
$182,000 |
|
5th or more visits |
$182,000 |
$227,500 |
* Fee halved for vessels that purchase and use compliant fuel during port visit. Further details are available in CARB Marine Notice 2011-1
UK BRITISH SPECIAL FORCES RESCUE BULK CARRIER
UK special forces have captured 11 pirates in an operation off the coast of East Africa after pirates attacked the Supramax bulk carrier Montecristo (built 2011) earlier this week. It appears that in the face of overwhelming odds, the pirates offered no resistance to a boarding team from the Royal Fleet Auxiliary Fort Victoria.

Montecristo RFA Fort Victoria
Save Our Seafarers reports that Britain is to boost its fight against Somali piracy by creating a new intelligence cell with the job of tracking the multi-million dollar money flows generated by buccaneering "kingpins". Ministers plan to dispatch officers from the Serious and Organized Crime Agency to staff a new Indian Ocean unit dedicated to hunting pirate financiers, who provide start-up cash for gangs in return for the lion's share of ransom proceeds.
AUSTRALIA TO MOVE AHEAD WITH SHIPPING REFORM
The Australian government has reconfirmed its intention to establish a policy framework designed to rejuvenate its national merchant fleet. Despite criticism of some aspects of the policy, the government has reminded its detractors that 99% of Australia’s international trade is carried by ships, yet only half of one per cent of that trade is carried by Australian flagged vessels. Volumes handled at Australian ports are estimated to account for 10% of all global seaborne trade yet the number of Australian flagged ships has fallen to just 22, most of it old. The measures include:
- Australian resident companies with Australian registered vessels will pay no company tax.
- Qualifying income from shipping and royalty withholding tax are exempted.
- The depreciation rate will be cut to 10 years from 20 years as part of a drive to accelerate fleet renewal.
- Rollover relief will also be offered and tax offsets will be available to Australian employers of resident seafarers who work in international trade.
- Shipowners will be required to comply with the International Labour Organisation’s “Maritime Labour Convention” and other treaties.
- New Entrants to Australia’s international register will need to employ at least two Australian seafarers per ship, preferably the Master and the Chief Engineer.
Teresa Hatch, Executive Director of the Australian Shipowners’ Association, welcomed the change of policy direction by saying “The policy provides the necessary elements to allow ship owners to base their operations in Australia and add value to our economy by doing so. The creation of an international second register will allow Australian companies to own and operate ships in international trades on a competitive basis. The importance of this measure cannot be overstated.”
Despite some provisions that could be seen as watering down workers’ rights, a Maritime Union of Australia spokesman commented “the MUA welcomes shipping reform as one of the greatest policy developments in Australian shipping since the Navigation Act was introduced in 1912. The new policy restores fairness and transparency to the way shipping participates in the domestic freight market, while greatly increasing the potential for greenfield opportunities for Australian businesses to participate in international shipping. If implemented properly, shipping reform will be good for the domestic economy, providing surety of investment, regular scheduling, efficient and effective utilization of ships and developing the critical shortage in maritime skills that Australia as a trading and shipping nation so desperately needs.”
TEEKAY LNG PARTNERS BUYS MAERSK LNG FLEET
Teekay’s joint venture with Japan's Marubeni will pay $1.4bn for interests in LNG eight carriers comprising the entire Maersk LNG fleet – a sector it has elected to strategically exit at a time of strong ship re-sale values. The venture will own six carriers outright, plus a 26% holding in two more. Five of the eight are operating under long-term, fixed-rate time-charter contracts, with an average remaining firm contract period duration of approximately 17 years, plus options. The part owners of the vessels not 100% controlled by Teekay and Marubeni have a put option to sell their stakes.

Maersk Magellan - built in 2008
Teekay CEO Peter Evensen commented “with an average age of only four years, we are acquiring a modern, well-maintained fleet that has been operated by one of the leaders in global shipping."
DREWRY PESSIMISTIC ON CONTAINER SECTOR PROSPECTS
In stark comparison to collective profits of $17 billion in 2010 which generated accelerated ordering of new tonnage, container carriers are bracing for 2011 losses of around $3 billion according to latest estimates from Drewry. Whilst far short of $19 billion losses suffered in 2009, there is intense disappointment that trade growth forecasts have fallen short of even the most conservative forecasts. Drewry sees no improvement in the global supply/demand balance for the next five years, hardly welcome news when 80% of the 2m TEU of new capacity ordered since June 2010 is for vessels of 8,000 TEU and above. That ordering “has already done the damage”, says Drewry.
To emphasize the scale of the problem, Alphaliner estimates that owners and operators will need to raise an estimated $57bn to fund new ships ordered for delivery between now and 2015. Of this, about $35bn is for orders placed directly by carriers, with the remaining $22bn ordered by charter owners. The headline grabbing order to date has been Maersk’s 20 18,000 TEU Triple-E ships at $190 million each.

CONTAINER SHIP GROUNDS OFF TAURANGA NZ
The 3032 TEU capacity container ship Rena grounded last week on Astrolabe Reef, some 12 miles from Tuaranga, a major port on New Zealand’s North Island. Australian and other overseas salvage experts are assisting their Maritime New Zealand (MNZ) counter-parts in an effort to control loss of bunker fuel. Svitzer Salvage has appointed by Rena’s owners, Daina Shipping, a unit of Greece based Costamare, under a Lloyd’s Open Form Agreement. As a precaution, the ship’s crew was taken off the vessel earlier this week as poor weather battered the vessel. MNZ said the Rena's 44-year old Master and the ship’s 2nd Officer have been charged with “operating a vessel in a manner causing unnecessary danger or risk” under section 65 of the Maritime Transport Act. They each face a fine of NZ$10,000 or a maximum prison sentence of 12 months if convicted.

“This has become the nation’s worst maritime disaster” according to the government of New Zealand. A spokesman for the vessel’s operator Mediterranean Shipping Co said: Rena, owned by Costamare, has been on charter to them since July. He has apologized to the citizens of New Zealand and the people of Tauranga for the oil spill that has washed up on local beaches near the North Island city and forced the closure of Tauranga’s port overnight on Thursday. “For us, one drop of oil in the water is one drop too much,” said Costamare managing director Diamanti Manos in a video statement played on New Zealand television. “Therefore it is a matter of great regret that a ship associated with us should be the cause of so much anguish.”
Maritime New Zealand estimated that 200-300 tonnes of the 1,700 tonnes of oil on board had escaped the vessel, higher than original estimates, as adverse weather conditions continued to frustrate salvage efforts. Salvage experts will spend the weekend attempting to remove fuel oil from the vessel in an attempt to limit the environmental impact before the ship breaks up.
Market Update
Chinese customs data shows imports of 60m tons of iron ore in September, bringing imports for the first nine months of the year to 508m tons, 11% more than compared with the same period in 2010. This has driven the improvement in demand and the employment of Capesizes whose time charter rate for a Pacific round voyage hit an 11-month high this week at over $30,000 per day. On the back of this, Tthe Baltic Dry Index closed up on Thursday on 2155 points compared to 1967 points last week and 1913 points the week previously.
Cape Size Panamax Supramax
Index 3546 2006 1583
Last week 3162 1869 1519
Spot time charter $31,000/day $16,500/day $16,000/day
Last week $27,300/day $15,600/day $15,900/day
Upcoming Meetings and Events
ABS – ISM TRAINING COURSE
Oct 18 - ABS Academy is offering ISM Training Course in Vancouver October 18-20.
GERMANISCHER LLOYD UPCOMING ACADEMY COURSES
Oct 20 - Advanced Maritime Accident Investigations and Analysis from 9am – 5pm. For more information visit: http://www.gl-group.com/en/academy/17943.php or to register email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Oct 21 - ISM - A Risk Management Approach from 9am – 5pm. For more information visit:
http://www.gl-group.com/en/academy/18211.php or to register email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
LLOYDS REGISTER – ADVANCES IN SHIPBUILDING
Oct 21 – LR in conjunction with the Chamber of Shipping will be hosting a presentation by Nick Brown, LR’s Area General Manager and Marine Manager for Greater China on October 21st at noon. Mr. Brown’s presentation will provide an update on shipbuilding and repair in China and a discussion on new designs and technologies being considered in newbuilds. If you are interested in attending and would like further information, please email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
PLIMSOLL CLUB FALL BANQUET
Nov 18 – Reserve your tickets today for the Plimsoll Club’s Annual Fall Banquet. This year’s event will be held at the Fairmont Waterfront Hotel with proceeds benefiting the Greater Vancouver Food Bank and the Surrey Food Bank. For more information see www.plimsollclub.ca.
Oct 18 ISSC Board of Directors Meeting @ 12:00
Oct 18-20 ABS – ISM Training Course
Oct 20-21 GL – Academy Courses
Oct 21 LR / COS Discussion on Shipbuilding in China
Oct 25 VMAA Board of Directors Meeting @ 12:00
Oct 26 PACMAR/NANS Meeting @ 10:30
Nov 2 Plimsoll Club Board of Directors Meeting
Nov 8 COS Ship & Port Operations Committee Meeting @ 12:00
Nov 9 COS Liner Committee Meeting @ 10:00
Nov 18 COS Board of Directors Meeting @ 10:00
Nov 18 Plimsoll Club Annual Fall Banquet
Ship of the Week

Stolt Achievement – chemical tanker
Built 1999
LOA 177m
Beam 31m
DWT 37,141 MT
Stolt Tankers operates one of the world’s largest and most sophisticated global fleet of deep-sea, regional, coastal and inland parcel tankers, providing safe, reliable, high quality transportation services to the world’s leading manufacturers of chemicals and other bulk liquids. The company currently operates 158 tankers of around 2.7 million tons DWT either independently or in partnership.

Founded in 1959 by Jacob Stolt-Nielsen, the company has a long rich history in the transportation of high grade chemical products. Mr. Stolt-Nielsen was a pioneer of the modern chemical tanker but is also recognized for his role in development of the aquaculture industry.
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