At the Chamber of Shipping's Annual General Meeting yesterday, three incumbent and two new directors have been appointed to the Board effective immediately. The Board welcomes Garth Mitcham of CSL International and Oscar Pinto of Valles Steamship Canada. Incumbent re-appointed include Dave Hill of Wheelhouse Shipping Agency, Marc Fellis of Westward Shipping Ltd., and Peter Swanson of Bernard LLP. A copy of our 2016 Annual Report is available on-line. Pictured above is the Chamber of Shipping's 2017 Board of Directors.
The Vessel Fire Safety Regulations have been published in Canada Gazette Part II, February 22, 2017 to incorporate the new SOLAS Convention requirements by reference, as amended from time to time. Recognizing that the SOLAS Convention leaves certain discretionary items to be decided by each country to address international requirements or unique conditions, the Regulations make use of the flexibility provided in the SOLAS Convention by specifying some Canadian modifications, such as the likelihood of equipment being unusable due to freezing or the necessity to accommodate vessels that operate seasonally or in close proximity to shore.
Part 1 specifies the classes of vessels for which compliance with the recommendations on fire safety systems of the revised SOLAS Convention is mandatory. The classes of vessels include passenger vessels that are Safety Convention vessels; cargo vessels of 500 gross tonnage of more; non-Safety Convention passenger vessels 24 m or more in length; passenger vessels of more than 15 gross tonnage but of less than 24 m in length transporting more than 36 berthed passengers; and vessels carrying dangerous goods other than in limited quantities.
As noted last week, the Minister of Fisheries and Oceans announced the implementation of the new Hecate Strait and Queen Charlotte Sound Glass Sponge Reefs Marine Protected Area (MPA). The regulations have now been published in Gazette Part II, February 22, 2016. The MPA is comprised of three spatially distinct components to encompass the northern reef, the two central reefs, and the southern reef. Each component will have three management zones: a core protection zone (CPZ), an adaptive management zone (AMZ) and a vertical adaptive management zone (VAMZ). Together, the establishment of these zones, and the associated prohibitions, will provide for the conservation and protection of the biological diversity, structural habitat and ecosystem function of the glass sponge reefs through the management of human activities. With respect to the navigation of vessels within the defined areas, this can be continuted in accordance with the Canada Shipping Act, 2001 and its regulations, however no anchoring is permitted in the core protection zones.
India has rejected a long-standing exemption on pest treatment for peas and lentils. The CFIA has confirmed the Indian government has not granted another six-month exemption that would have crops fumigated on arrival, rather than before export, as has been allowed for more than a decade. The decision puts Canada’s pulse exports to the country, worth $1.1-billion in 2016 and $1.5-billion in 2015, in jeopardy because the required treatment of methyl bromide is ineffective in cold weather and is being phased. Pulse Canada says the fumigation treatment is not needed because the insects India is concerned about aren’t in Canada, and the cold winters help reduce the threat of other pests. The two countries are working on a potential solution that could see Canada’s system of management practices and controls stand in for treatment before export. The trade issue comes after exports of peas and lentils to India grew by 20 per cent a year between 2010 and 2015 to account for about a third of all pulse exports for Canada’s 12,000 pulse farmers.
With about one-quarter of Washington State Ferries’ 1,800 employees eligible for retirement within five years, new simulators in the Seattle Maritime Academy, part of Seattle Central College will help WSF recruit and train employees using the bridge simulator and engine-room simulator starting in March. Through an agreement with the Maritime Academy Washington State Ferries will have access to the simulators for 60 days a year. About 70 percent of Ferries’ chief engineers are eligible for retirement within 10 years, as are nearly 90 percent of staff masters.
The Ocean Alliance has released its full port rotation schedule, filling in key missing details that shippers have been anxiously awaiting, especially on the trans-Pacific trade where service contracts will soon be negotiated. Transit times, terminals to be called at and port arrival and departure dates were provided by the mega alliance of Cosco Shipping Lines, Evergreen Line, CMA CGM, and Orient Overseas Container Line that will start operating in just five weeks. In terms of ship size, the Ocean Alliance will deploy ships with capacities of 14,000 twenty-foot-equivalent units on the Asia-North America West Coast services, where it will provide the first ever direct service between Jakarta and Los Angeles.
DP World Vancouver welcomes new ZPMC Super Post-Panamax quay crane being delivered on the Zhen Hua 23.
The ILWU, UNIFOR and other local unions took to the streets around Transport Canada's building at 800 Burrard Street to protest CETA and plans to privatize certain federal and provincial assets.
The Vancouver Fraser Port Authority Board of Directors has re-elected Craig Neeser to serve as chair for a fourth term, commencing March 1, 2017. Mr. Neeser was originally appointed to the board in August 2009 and most recently re-appointed in 2015.
The 5,752 TEU Hanjin Vienna, that has been sitting idle off the west coast of British Columbia since November 26, 2016 was auctioned off by its German owner, Reederei NSB, this week. The 17-year old ship was sold for scrap at $280 per ldt (light displacement tonne).
On February 15, the keel laying ceremony for Teekay’s first shuttle tanker newbuilding for East Coast Canada (ECC) took place at the Samsung Heavy Industries shipyard in Korea. This important milestone marks the end of the block building period as well as the beginning of the next phase – to complete the newbuilding with all its systems. The shuttle tanker, the Beothuk Spirit, is the first of three shuttle tankers under construction and is expected to be delivered in August of 2017. Teekay Offshore will be the sole supplier and operator of shuttle tankers services for East Coast Canada.
The Chairman of the International Chamber of Shipping, Esben Poulsson, has set out what the industry would like the International Maritime Organization to achieve as part of its CO2 reduction strategy for the shipping sector. Speaking in Indonesia today at The Economist magazine’s World Ocean Summit, Mr Poulsson feared that unless IMO makes significant progress the industry could be vulnerable to regional action, not only from the EU – which is considering incorporating shipping into the EU Emissions Trading System – but also from Canada or California, which have already introduced carbon pricing.
ICS stresses that IMO should adopt objectives for the entire sector, not for individual ships, in the same way that governments have already agreed CO2 commitments for their national economies under the Paris Agreement. IMO also needs to agree a mechanism for delivery which ICS would like to see in place by 2023. If IMO decides to develop a Market Based Measure, ICS says that the clear preference of the industry is for a bunker fuel levy.
In the meantime, ICS argues that any CO2 reduction goals agreed by IMO must also address the legitimate and valid concerns of developing nations about the potential impacts on trade and sustainable development. According to the United Nations, 60% of maritime trade now serves developing nations.
Not long after announcing changes to Bull, Housser & Tupper, Norton Rose Fulbright has announced that it is in the process of combining with a leading New York-based international law firm, Chadbourne & Parke. The expanded firm, comprised of more than 4,000 lawyers in 58 offices worldwide, will be known as Norton Rose Fulbright.
Amendments to the Pacific Pilotage Tariff Regulations for 2017 have been published in Canada Gazette Part I, February 18, 2017 for comments. The amendments reflect industry's discussion and agreement with the PPA. The following amendments are proposed:
The California State Lands Commission (SLC) issued a notice stating that it invites participation in the informal comment period on proposed regulations relating to performance standards and compliance assessment protocols for the discharge of ballast water for vessels operating in California waters. The informal comment period closes on 24 March. In the meantime the SLC posted a letter stating that the Commission unanimously opposes proposed federal legislation that would revoke the right of states to regulate ballast water discharges into state waters by making federal ballast water discharge standards preemptive
The Centerm Expansion Project team invites the public to learn more about, and provide feedback on, the proposed Centerm Expansion Project during the public consultation period from February 20 to March 24, 2017. The project team will be hosting a series of open house events and small group meetings to share information on the project’s proposed design of on-and off-terminal improvements, results of technical and environmental studies, anticipated construction activities, and the proposed community investment program. A second phase of consultation is planned for mid-2017. For more information visit: porttalk.ca/centermexpansion.
Hanjin Shipping was was officially declared bankrupt by the Seoul Central District Court today, ending a 40-year voyage that culminated with over USD5 billion of debt. The Seoul Central District Court decided to declare bankruptcy for Hanjin Shipping after a two-week period for appeal expired. The court said a bankruptcy trustee will be appointed to lead the sale of the shipping line’s assets to pay off debts to creditors. While the Hanjin Vienna remains at Constance Bank, the owners based in Germany have decided to sell the ship and it is expected that a transaction will be concluded in the near future. The crew have been well looked after by Reederei NSB during the five and a half month ship arrest. The Hanjin Scarlet owned by Hanjin Shipping is still in Cowichan Bay despite earlier expectations of her departure.