COS Weekly News - 26 November 2010
Friday, 26 November 2010 16:59
COS News - Week Ending 26 November 2010
Issue No. 134
HAISLA NATION RATIFIES AGREEMENT WITH APACHE LNG
The Haisla Nation has ratified an agreement with Apache Canada for a 49 year lease for construction and operation of the Kitimat LNG terminal following a vote in favour of 93%. The agreement includes a minimum lease payment to the Haisla of $3.28 million a year plus taxes. Kitamaat Village Council expect to formally sign the lease in the next few weeks. The $5 billion project is projected to be built on the shores of Bish Cove, part of the Haisla First Nation and includes a liquefied natural gas (LNG) export, liquefaction and LNG export terminal. When the terminal is operational in around 2016, four to five ships per month will load LNG for markets in Asia.
An artist’s impression of the proposed LNG terminal
Coincidentally, spot rates for very large gas carriers (VLGCs) have recently broken through the $50 per ton mark for the first time in more than two years.
PERMANENT CLOSURE – CLARK DRIVE ACCESS GATE FOR CONTAINER TRUCKS
The trial period which resulted in the full day closure of Clark Drive for container trucks and the provision for three inbound lanes at the McGill/Commissioner access gate has been a success. 35% of trucks have transitioned from the Knight Street/Clark Drive corridor to Commissioner/McGill Street, significantly reducing truck traffic northbound on this heavily used truck route bordered by residential areas. We, once again, applaud the container truck drayage community for their active participation in helping us reduce congestion on Clark Drive. As a result, the Clark Drive inbound access gate is now PERMANENTLY CLOSED TO ALL CONTAINER DRAYAGE TRUCKS. Egress procedures through the Clark Drive and Commissioner Street gates remain unchanged.
SOUTH SHORE ROADWAY PROJECT UPDATE
The South Shore roadway project has commenced. A “new” (second) lane Westbound from Nanaimo Street to Victoria Drive along Commissioner Street is currently under construction with completion targeted for January 2011. Further to this, work will commence late Spring 2011 to lengthen this “new” lane between Nanaimo Street and Renfrew Street West along Commissioner Street, creating two westbound lanes.
CONTAINER TRUCKERS TO PROTEST THIS SATURDAY
Please be advised that the Vancouver Container Truckers Association (VCTA-CAW Local 2006) is calling for an industry-wide container truck rally on November 27 at noon to protest the actions of Port Metro Vancouver and the failure of the provincial and federal governments to step in to ensure rate stability.
Following the rally a protest convoy of trucks will leave the truck pull-out on Highway 91N between Highway 10 and 64th Avenue, in North Delta, B.C.
OFFICE HOLIDAY CLOSURES
We have started a poll on our website on office holiday closures. Please take a few seconds to add your office’s planned closures. The Chamber of Shipping offices will be closed on Monday, December 27th and Tuesday, December 28th and January 3rd during the holiday season.
IMSBC CODE – EFFECTIVE JANUARY 2011
Owners have been able to apply the IMSBC Code on a voluntary basis since January 1, 2009 and will become mandatory for all ships carrying solid bulk cargoes, without any transitional period, on January 1, 2011 when amendments to the International Convention for the Safety of Life at Sea (SOLAS) enter into force.
The new code is very similar to the Bulk Cargoes (BC) Code 2004 (which it replaces), but contains a number of changes, including:
- Addition of new cargoes; Direct Reduced Iron (DRI) and Linted Cotton Seeds.
- Operational guidance on the carriage of coal and brown coal which states that such coal is not to be stowed adjacent to fuel tanks heated to above 55°C.
- Guidance on safe carriage of cargoes not contained within the code.
- Minor modifications to existing cargo schedules.
Owners must be aware that Port State Controls and the Port Authorities of a number of major trading nations require proof of compliance with the BC Code or the IMSBC Code, i.e. that a valid "Document of Compliance for the Carriage of Dangerous Solid Bulk Cargoes" is available on board.
The ship’s classification society can issue a Certificate of Compliance for carriage of all cargoes listed in the IMSBC Code that the ship can carry; this will replace any previously issued BC Code certification.
Operators should also remember the existing requirements of the International Convention for the Safety of Life at Sea (SOLAS) applicable to cargo ships of 500 GRT or over that are constructed on or after 1984-09-01 and to cargo ships of less than 500 GRT that are constructed on or after 1992-02-01. Specific requirements concerning the carriage of dangerous goods, both in solid bulk form and as packaged goods, in addition to the goods stated in the IMSBC Code are stipulated in the SOLAS Convention: Ref. SOLAS Reg.II-2/19 and SOLAS Ch. VII - some of which are mentioned below.
CBSA AND RCMP MAKE SIGNIFICANT SEIZURE OF PRECURSOR CHEMICALS
More than 6,000 kilograms of the precursor chemical P2P, worth up to 9.8 million dollars, has been seized in the latest joint operation between the Canada Border Services Agency (CBSA) and Royal Canadian Mounted Police (RCMP).
In early October of this year, the CBSA identified a suspicious shipment coming into the Port of Vancouver from China, and the 20-foot marine container was referred for inspection. The container's documentation identified the shipment as "footwear." However, during their examination, CBSA officers uncovered 150 boxes hidden within the load that each contained a 22-kilo jug of suspected P2P, or phenyl-2-propanone. P2P is a precursor used primarily in the production of ecstasy (MDMA) as well as methamphetamine. The rest of the shipment contained suspected counterfeit Nike running shoes. Further details are available in the CBSA Media Release.
CBSA AMPS PROGRAM REVISIONS – PHASE II
Canada Border Services Agency announced the implementation of Phase II of the Administrative Monetary Penalty System (AMPS) in Customs Notice 10-020. Taking effect on December 15, 2010 the changes include the collapsing of 68 marking contraventions into one; the addition of 12 contraventions to the list of those subject to the 30 day non-escalation policy; updated penalty amounts for some of the contraventions to align risk with penalty amount; deletion of several contraventions resulting from a review of the records penalties and contraventions that had never been issued; updated wording on the Notice of Penalty Assessment form regarding the Penalty Reinvestment Agreement, acceptance of debit transactions for payment of penalties, the location of information on filing a request for appeal on the CBSA’s website and the fax number of the issuing office for correction or appeal correspondence; updates to the wording of contraventions and their guidelines, making them more transparent; and several internal systems changes to assist officers in correctly administering the program.
CUSTOMS CONTROLLED AREAS REGULATIONS
Canada Border Services Agency has published proposed Customs Controlled Areas Regulations in the Canada Gazette Part I – November 13, 2010. The Regulations provide border services officers (BSOs) with the authority to examine goods and to question and search people with areas designated as Customs Controlled Areas (CCAs). The locations designated as CCA’s are intended to be areas where international goods that have not been released by CBSA may come into contact with domestic workers.
The Regulations will set in regulation:
· the classes of persons who may be granted access to a CCA and who may be searched in a CCA or at an exit point;
· the requirements respecting the presentation of persons and reporting of goods inside a CCA or upon exit;
· the circumstances and manner in which searches are to be conducted and the type of searches that may be carried out; and
· the manner in which the non-intrusive examination of goods is to be conducted inside a CCA or upon exit and the type of tools that may be used to conduct such examinations.
Implementation of CCAs will be phased in over three years. In Year 1, implementation will start with the three major international airports, and in Year 2 six other airports and three marine ports including Vancouver, and in Year 3 at other ports of entry across Canada including highway, rail and postal modes.
CBSA is accepting comments on the proposed Regulations up until December 13, 2010.
SENATE BILL S-13 RECEIVES SECOND READING
Bill S-13, An Act to implement the Framework Agreement on Integrated Cross-Border Maritime Law Enforcement Operations between the Government of Canada and the Government of the United States of America was debated at second reading in the Senate earlier this week. The purpose of the Act, which is cited as the Keeping Canadians Safe (Protecting Borders) Act, is to facilitate the investigation and prosecution of criminal offences and violations of the law in undisputed areas of the sea or internal waters along the international boundary between Canada and the United States.
NEW STRATEGY ADDRESSES B.C.’S LOOMING SKILLS SHORTAGE
The Province of British Columbia expects that British Columbia will have over a million job openings by 2019 and has announced a new strategy to address the looming shortage through its new Skills for Growth strategy.
Skills for Growth targets three priority areas aimed at building B.C.’s workforce over the next decade:
- Increasing the skill level and success of people currently in British Columbia so that by 2020, B.C.’s labour market has a population with the necessary skills to pursue economic goals and capitalize on emerging opportunities.
- Attracting and retaining top talent from across Canada and around the world, highlighting the fact that B.C. is a welcoming environment that is internationally recognized as one of the best places for newcomers and their families to live, work, study and invest.
- Improving productivity by creating a culture of innovation that leads to productive workplaces.
CCG ANNOUNCES ARCHITECTS FOR NEW VESSELS
The Canadian Coast Guard has announced that contracts have been awarded to Robert Allan Ltd and Alion Science and Technology in a joint venture to design three new fisheries science vessels and to STX Canada Marine Inc to design a new offshore oceanographic science vessel.
MINISTER RAITT ESTABLISHES ADVISORY COUNCIL ON WORKPLACE AND LABOUR AFFAIRS
The Minister of Labour held its first meeting of the Advisory Council on Wednesday. The mandate of the Advisory Council, which is comprised of key stakeholder representatives, is to serve as a forum for the study and exchange of views and experiences on workplace and labour issues of federal, national and international importance. The Council may be asked to provide advice on areas such as industrial relations; labour standards; occupational health and safety; international labour affairs; and workplace diversity.
COP 16 UN CLIMATE CHANGE CONFERENCE IN CANCUN, NOVEMBER 29 - DECEMBER 10
The International Maritime Organization (IMO) has announced that it will seek an explicit commitment from the upcoming Cancun climate change conference to the effect that delegates to the UN Framework Convention on Climate Change (UNFCCC) unequivocally nominate the IMO with responsibility for negotiating reductions in CO2 emissions from shipping. In so doing, it is hoped to overcome the resistance of some delegations at IMO to solutions that are not consistent with the Kyoto Protocol’s “common but differentiated responsibilities” principle.
The International Chamber of Shipping (ICS), which is the principal international trade association for shipowners, representing all sectors and trades and about 80% of the world merchant fleet ) and to which the Chamber of Shipping of BC is closely affiliated, has launched a short film on ‘Shipping, World Trade and the Reduction of CO2 Emissions’, in advance of COP 16.
The film explains the measures being taken by the international shipping industry to reduce its CO2 emissions. In particular, it emphasizes the importance of the International Maritime Organization (IMO) being given a clear mandate by the UN Conference to finalize a package of measures that can be enforced globally to all ships, rather than only the 35% of the world fleet that is registered with developed countries.
The 5 minute film can be seen at www.shippingandco2.org as well as on YouTube.
The IMO has circulated proposed draft regulations to make mandatory technical and operational measures to reduce emissions of greenhouse gases (GHGs) from international shipping, following a request by a number of States Parties to Annex VI of the International Convention for the Prevention of Pollution by Ships (MARPOL) to circulate the draft text. Amendments to the MARPOL Convention are due to be voted on at the IMO’s Marine Environmental Protection Committee in July 2011 with a view to these coming into effect in 2013 assuming a two thirds majority vote is achieved.
ENIRAM TO HOST SERIES OF ENERGY EFFICIENCY WEB SEMINARS
The Finland based Eniram Group www.eniram.fi with whom COS enjoys an ongoing relationship is to host a series of web seminars aimed at the ship owning, ship management and operating sectors, details of which are as below.
Web Seminar 1
Title: Energy Efficiency Solutions-Big Promises Made, Can They Be Proven?
Date: Thursday 9th December*
Time: 13:00 (London)
* A repeat of this seminar is being held on Tuesday 14th December at 10:00 (London)
Web Seminar 2
Title: Energy to Save-Realising fuel savings of up to 5%
Date: Thursday 3rd February 2011
Time: 13:00 (London)
Web Seminar 3
Title: Dynamic Trimming-Study Results and Building the Business Case based on Real Data
Date: Wednesday 9th February
Time: 13:00 (London)
Eniram provides advanced decision support systems to the owners and operators of large commercial vessels, including container carriers, tankers and cruise ships. The company’s solutions are designed to achieve fuel efficiencies, environmental protection and remote intelligent reporting of fleet performance.
The Suezmax tanker Front Alfa suffered a narrow escape from pirates last weekend by employing the citadel routine. A determined pirate attack was successful in initially taking the vessel and once onboard the attackers inflicted damage to the ship’s bridge and equipment. For their part, the ship’s crew was out of contact for several anxious hours until naval forces arrived on scene. At the time of the attack the vessel was en route destined to China and would have represented a significant opportunity for ransom. To date, three VLCCs have been taken with increasingly ambitious ransom demands being paid to secure their eventual release. The Greek owned Panamax tanker Polar was taken by pirates four weeks ago.
Suezmax tanker Front Alfa – narrowly escaped capture
Meanwhile, China has responded to a pirate attack on a COSCO general cargoship Le Cong last week in which a crew member was wounded by assigning a warship to one on one protection duties. Also the Danish government has decided to extend the deployment of the warship Esbern Snare, which has been working in the Horn of Africa as part of the NATO counter piracy effort, until March 2011. The original plan was for it to return to Denmark next month.
On the other side of the continent, pirates operating in the Niger Delta have declared an intent to carry out more kidnappings from oil installations after the Nigerian military last week rescued 19 hostages from one of their camps. In a presentation to last week’s World Maritime Day conference session on the problems of “Recruitment and Retention of Seafarers”, COS President Stephen Brown called for the establishment of an International Criminal Court devoted to cases of hijacking and piracy in the airline and shipping industries. Stephen also voiced opinion that since efforts to prosecute pirates in Kenya have been largely futile. that country cannot be looked upon as a reliable jurisdiction. Many delegates also voiced frustration that more than 60% of pirates when caught are immediately released for “lack of evidence”.
In a separate development, Marad has formally accused al Qaeda with responsibility for an explosion which damaged the Mitsui owned VLCC M. Star in the Strait of Hormuz in July.
EXCESS CONTAINER CAPACITY CONCERNS
Many container vessel owners & operators are showing reluctance to lay up ships during the current slow season, despite widespread recognition that a capacity reduction of at least 5% is needed to stabilize pressure on rates. Currently some 3% of the fleet is idled. In the transpacific container trades, eastbound rates have fallen below the $2,000 per FEU benchmark for the first time since April and peaked at around $2800 during the August high season.
FLAG STATE PERFORMANCE UPDATE
The International Chamber of Shipping and Intenrational Shipping Federation, in conjunction with the other members of Round Table of international shipping associations, have updated their annual ‘Shipping Industry Flag State Performance Table’. A copy of the updated table can also be downloaded.
The table summarizes publicly available data and is based on the most up to date information available at the end of June 2010.
After managing modest mid week gains, the Baltic Dry Index fell back again on Thursday but still finishing slightly higher on the week. The index closed on Thursday at 2200 points compared to 2164 points last week and 2366 points the week before.
Cape Size Panamax Supramax
Index 3381 2290 1443
Last week 3496 2063 1431
Spot time charter $32,600/day $18,400/day $15,100/day
Last week $33,100/day $16,600/day $15,000/day
Upcoming Meetings and Events
ciffa 10th annual christmast luncheon & toys for tots
Nov 30 COS Owners Committee Meeting @ 12:00
Dec 1 COS Board of Directors @ 10:00
Dec 2 Business of Shipping Seminar on Panama @ 08:30
Dec 3 Vancouver Grain Exchange Lunch
Dec 7 PMV Security Stakeholders Meeting @ 09:30
Dec 7 CIABC Board of Directors Meeting @ 10:30
Dec 8 COS Liner Committee Meeting @ 10:00
Ship of the Week
Summer draft 10.9m
5 x SWL 35-40 tons cranes (80 tons in tandem)
Service speed 15 knots
At a cost of $35.4m per vessel, M.V. Rockaway Belle and her sisters Dakota Princess and Montauk Maiden were delivered to TBS Shipping in the third quarter of 2009, first quarter of 2010 and third quarter of 2010, respectively from Nantong Yahua Shipbuilding China. An additional so called Roymar Class 34,000 dwt multipurpose vessel with retractable tween decks, Omaha Belle is scheduled for delivery by end 2010 , and the remaining two in 2011 to mark a major upgrade of the 49 vessel TBS fleet which is the largest to operate tween deckers in international trades.
Rockaway Belle was named in honour of the men and women from Rockaway Beach, New York City, who lost their lives on September 11, 2001. TBS was particularly hard hit by the recession of 2008/09 but in a recovery plan has recently extended a deal with banks to temporarily avoid paying principal on its loans.
sister ship Dakota Princess
The New York based company has progressively developed its business around key trade routes between Latin America and China, Japan and South Korea, as well as ports in North America, Africa, the Caribbean, and the Middle East. A recent development is extension of service to the Brazilian coastal and Amazon cabotage trades through a local joint venture arrangement.
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