On December 11th, the Senate of Canada welcomed a delegation of 15 First Nations Chiefs from the National Chiefs Coalition, the Indian Resource Council, and the Eagle Spirit Chiefs Council who, together, represent some 200 First Nations communities, to speak about the Eagle Spirit Energy Corridor Project. Eagle Spirit, a First Nations business consortium, proposes to build the ‘greenest pipeline energy corridor on the planet’, running from Bruderheim, Alta. to Grassy Point, BC. Bill C-48 imposes an oil tanker moratorium stretching from the northern tip of Vancouver Island to the Alaska border which would make the Eagle Spirit Project impossible since the prospective port at Grassy Point falls within the moratorium zone. The Chamber of Shipping receives a special mention in their press conference.
Under the Transportation Modernization Act passed earlier this year, new data on rail performance is on available. Canada's major freight rail companies, Canadian National Railway and Canadian Pacific Railway, are required to submit specific data on their service and performance on a weekly basis. This information is available in four tables on the Statistics Canada website as well as a summary table on the Transportation Data and Information Hub of the Canadian Centre on Transportation Data.
The Government of Canada has introduced new regulations that require Canadian passenger vessel operators to carry a minimum of $250,000 in liability insurance for every passenger on board. This will ensure that all passengers and their families receive fair compensation in the event of injury or fatality in a marine accident, while protecting vessel operators against catastrophic losses and possible civil actions from passengers. Most vessel operators already carry this level of insurance; however, the new regulations make liability insurance mandatory under the Marine Liability Act for passenger vessels. The new regulations will come into force on January 11, 2019. Once the regulations are in place, vessel operators who do not have liability insurance could have their vessel detained and face fines of up to $100,000.
Canadian National Railway has submitted a bid to buy Halterm, Eastern Canada's largest intermodal container terminal. If successful, they plan on upgrading the Halifax container terminal. CN owns the only rail line in Atlantic Canada and owning the terminal would give them greater control over container movement in the region. Container traffic in Halifax is on the rise and Halterm reports handling about 250,000 containers a year at its 30-hectare facility in the city's south end. CN president Jean Jacques Ruest said that the railway is looking for an East Coast gateway equivalent to Prince Rupert.
Washington State Governor, Jay Inslee,wants $1.1 billion to help save Puget Sound’s critically endangered Southern Resident Killer Whales. The recommendations in his plan closely track those of the governor’s task force for orca recovery, the result of months of work by more than 40 members. Tax increases will be needed to pay for the recovery efforts, as well as other initiatives in Inslee’s proposed biennial budget. His proposals include:
The United States (US) House of Representatives and Senate passed the US Coast Guard Authorization Act of 2017, which includes the Vessel Incident Discharge Act (VIDA). Once this legislation is signed into law by the President, it will change how ballast water, and other incidental discharges, are regulated in the United States. VIDA provides for a uniform, national standard to govern discharges that are incidental to vessel operations, such as ballast water discharges. The EPA has a two-year period to promulgate the regulation. The USCG may review and has a 60-day window to concur with the regulation. Until the final regulations are promulgated, the 2013 Vessel General Permit (VGP) shall remain in force and effective. The new regulations being promulgated cannot be less stringent that the 2013 VGP or USCG BWM regulations.
As of 1 January 2019, Maersk Broker Bulk Chartering will become a major shareholder of NAODAN Chartering. The dry cargo brokerage of NAODAN Chartering will continue to focus on the well-established and successful business out of the West Coast of the USA, West Coast Canada and Alaska, and the trading activities will continue to be carried out under the name of NAODAN Chartering.
Maersk has just introduced Value Protect, an extended liability solution offering customers an alternative to cargo insurance, which the Danish carrier claims increases shippers’ chances of receiving full compensation in case of cargo damage in transit. Value Protect is valid while the cargo is in the care and custody of Maersk and covers cargo loss or damage in cases such as fire, accidents due to danger of the sea, theft, natural disasters, cyber incidents, cargo damages caused by delay, all of which would be excluded under the conventional terms for carriage. The offering is already available in several countries and will be gradually rolled out worldwide over the coming six months.
The Panama Canal welcomed its 5,000th Neopanamax vessel through the waterway, reaffirming the value and impact the route has had on global maritime trade. The COSCO Faith container carrier transited, travelling southbound from the Atlantic to the Pacific Ocean. Of the 5,000 Neopanamax vessels that have transited to date, 51% have been from the container segment, 26% have been liquefied petroleum gas vessels, 10% have been liquefied natural gas carriers, and remainder has been made up of dry and liquid bulk carriers, car carriers and cruise ships make up the remaining transits.
The Federal Maritime Commission voted at its meeting last week to take this action when it approved the recommendations of Commissioner Rebecca Dye as set forth in her final report of the Fact Finding 28 investigation. The investigation found that demurrage and detention charges can incentivize cargo to move expeditiously and that standardizing practices for when these fees are levied would improve velocity at ports and that focusing demurrage practices on notice of when cargo is actually available would likely eliminate many of the circumstances that lead to the imposition of demurrage fees. Toward that goal, the Commission will convene Innovation Teams that will address how to provide:
On November 5, 2018, CARB staff published the report, Preliminary Health Analyses: Control Measure for Ocean-Going Vessels At Berth and At Anchor and has since has received requests from the public to provide the modeling files for the health analyses and the emission inventory methodology. In support of this request, CARB is releasing the modeling files and databases used to conduct the health risk assessment discussed in the analyses and will release the emissions inventory methodology by early January. CARB is also providing additional time for comments on the health analyses through to January 31, 2019 via their electronic comment log.
This week both Stephen Pyne, General Manager, and Karen Barre, Manager Operations and Customer Service – Western Canada, retired from Montship. In 2005 Karen was the first woman to join the Chamber of Shipping Board of Directors, serving as Chair of the Liner Committee for five years, and retires from Montship after 34 years with the company. Stephen joined Montship in 2005 as General Manager of our Marine department after a few years with a breakbulk shipping company. Stephen is one of the founding members and speakers of our successful Business of Shipping program. Upon Stephen’s retirement Peter Ng and Teddy Trica will assume management responsibilities for marine operations and commercial services. We thank them both for their contributions to the shipping industry and wish them well in their retirement years.
According to Bloomberg, the US turned into a net oil exporter briefly last week, breaking almost 75 years of continued dependence on foreign oil. The shale revolution has transformed oil wildcatters into billionaires and the US into the world’s largest petroleum producer, surpassing Russia and Saudi Arabia. The power of OPEC has been diminished, undercutting one of the major geopolitical forces of the last half century. In an effort to boost oil prices and reduce oversupply, OPEC has just announced a cut in oil production by 1.2 billion barrels per day. Oil prices spiked immediately following the decision.
Canada Border Services Agency has released Customs Notice 18-22 to implement the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in Canada, Australia, Japan, Mexico, New Zealand and Singapore on . Additionally, the Agreement will enter into force for Vietnam on . With the exception of a few agricultural goods, the CPTPP will essentially eliminate the customs duties on all qualifying imports into Canada from a country for which the CPTPP is in force ("CPTPP country"), either immediately upon implementation of the agreement, or through a tariff phase-out.
The Chamber of Shipping joined a roundtable hosted by the Honourable Marc Garneau, Minister of Transport, Honourable Amarjeet Sohi, Minister of Natural Resources, and the Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food, to discuss the transportation of commodities by rail with producers, shippers, railways, ports and provinces. Key topics covered included system performance of the freight rail supply chain; assessing capacity across supply chains, which includes identifying areas of weakness, congestion and strength so that inefficiencies in the transportation system can be addressed, and supply chain partners can make more informed decisions; and, the importance of sharing information and collaboration, particularly in the context of forecasting and planning, and identifying potential solutions.
Commodore Darren Garnier of the Canadian Armed Forces (CAF) officially assumed command of Combined Task Force 150 (CTF 150) yesterday during a change of command ceremony held at Combined Maritime Forces (CMF) Headquarters in Manama, Bahrain. CTF 150 is a task force under CMF, which is the naval coalition of 33 nations that promotes security and stability in the international waters of the Middle East region. Canada has deployed 29 CAF military personnel and one Department of National Defence civilian employee to CMF Headquarters to lead CTF 150 until April 2019. They will join the over 100 coalition members currently supporting CMF. The deployment is part of Operation ARTEMIS, the CAF’s ongoing contribution to counter-terrorism and maritime security operations in the Middle Eastern and East African waters.
BC Premier John Horgan, Minister of Environment and Climate Change Strategy George Heyman and Green Party leader Andrew Weaver unveiled “CleanBC,” the highly anticipated climate action strategy. The made-in-BC plan serves as an overarching blueprint that outlines how the government intends to meet its commitment to meet its climate action goals while also growing the economy and health of the province. More importantly, this satisfies conditions of the Confidence and Supply Agreement (CASA) between the NDP and Greens to reduce greenhouse gas (GHG) emissions by 40 percent of 2007 levels by 2030 as legislated in the Climate Change Accountability Act.
Key elements of CleanBC to reduce industrial emissions by 8.4 Mt by 2030: