The federal government has approved a 40-year natural gas export licence for the $1.6B Woodfibre LNG project near Squamish. The Project received a 25-year licence to export approximately 2.1 million tonnes of LNG per year in December 2013; however, amendments to the National Energy Board Act Part VI Regulations in 2015 increased the maximum term to 40 years. Woodfibre LNG Limited, owned by Singapore-based Royal Golden Eagle Pte. Ltd, will process natural gas shipped by pipeline from Northern B.C. into liquefied natural gas for export to Asian markets. The facility is expected to be operational by 2020.
BC Coast Pilots 2017/18 Directors
The following pilots have been appointed as directors of the corporation for the 2017/2018 year:
Captain R. H. (Robin) Stewart
Captain R. A. (Roy) Haakonson
Captain B. S. (Brad) Taipalus
Captain S. B. (Steve) Stangroom
Captain P. (Peter) Koehle
CBSA update Memorandum D3-1-8 on Exports
Canada Border Services Agency has updated Memorandum D3-1-8 Cargo - Export Movements to include a definition of carrier and to clarify the reporting requirements of the marine carrier. Carriers, regardless of MOU status, must present the conveyance report to the designated export office closest to the place of exit before the conveyance departs. In Marine mode, the conveyance report must be presented to the designated export office closest to the place where the goods are loaded aboard the vessel for export. Note: Marine carriers reporting electronically must also present a paper copy Form A6A, Freight/Cargo Manifest of the conveyance report to the CBSA before the conveyance departs
CBSA Arctic Shipping Electronic Clearances
Canada Border Services Agency has issued Customs Notice 17-18 - Arctic Shipping Electronic Commercial Clearance Program to provide information on a risk-based alternative approach for clearing commercial cargo and conveyances, in the marine mode, for specific vessels destined to the Arctic. The Arctic Shipping Electronic Commercial Clearances Program (ASECC) is a pilot program now in its third year underway for the 2017 Arctic shipping season.
Seaport Alliance increasing capacity
The Northwest Seaport Alliance of Seattle and Tacoma has just approved a $52 million purchase of four cranes, adding to four that were previously approved, plus an additional $2.9 million in improvements to Terminal 18, the West Hylebos Log Yard and Pierce County Terminal. A $250 million construction project is alredy underway to reconstruct and align Pier 4 to Pier 3 to create a contiguous berth that will support two 18,000 TEU vessels to be worked simultaneously. The investment is to prepare for an anticipated surge in business as larger vessels come on line and the Alliance intends to secure the cargo market recaptured from Canadian west coast ports that benefited from the 2015 US west coast labour disruption.
Carriers suspend services to Qatar
Evergreen, Maersk and OOCL have suspended shipping services to Qatar as a result of trade pressure on the state after Arab states severed diplomatic ties this week. Several Middle Eastern countries, including Saudi Arabia, Egypt and the United Arab Emirates, cut ties with the Gulf state on Monday over what they say is Qatar's support for terrorism, an accusation Qatar vehemently denies.
In line with news reports over the past 24 hours, it is confirmed that no Qatar-flagged vessel or vessel coming from or going to Qatar, irrespective of the flag or owner’s nationality, will be allowed access to Saudi ports or any Abu Dhabi Petroleum port. Navigation from Qatar to the ports and waters of Bahrain, and vice versa, is likewise suspended.
ICS has been informed that the Suez Canal Authority confirms that Egypt is bound by the Constantinople agreement which names Suez Canal as an international waterway to which all countries have free access and passage under the protection of the Egyptian Government, except in times of war. As such, we understand that all ships flying the Qatar flag, or carrying cargoes to or from Qatar will transit normally without any restriction other than being monitored closely for security reasons. LNG carrier, Wilforce, loaded with Qatari LNG is currently transiting the Suez Canal and destined to arrive in Barcelona on June 15th. The 156,000 cbm ship, owned by Teekay LNG Partners and operated by Awilco LNG, is valued at USD 163.5 million.
Shipping costs expected to raise food costs by $1.3 trillion
The United Nations Food and Agricultural Organization (FAO) has released its biannual publication entitledFood Outlook which finds that shipping costs and import volumes will lift worldwide import costs to over $1.3 trillion this year, a 10.6 percent increase from 2016. The report goes on to explain that food import bills of least-developed countries, low-income food deficit countries and countries in sub-Saharan Africa are on course to rise even faster due to higher import volumes of meat, sugar, dairy and oilseed products.
“International prices of wheat should remain stable, especially during the first half of the season, while near-record production of coarse grains will likely keep competition intense among the major exporters,” according to the report. Due mostly to outstanding yield levels for soybean, oilseed production worldwide is expected to leap to an all-time high in 2016-17 – allowing further replenishments of global stocks. First indications point to a well-supplied market also in 2017-18, further weighing on prices.
Carriers introduce cancellation fee
Hapag-Lloyd has introduced a $60 booking cancellation fee for export shipments from Singapore to India. This follows on CMA CGM and Maersk Line’s recent decision to implement a similar fee for cancelled or transferred bookings within seven days of vessel cut-off on specific trade routes. Expect these fees to start appearing in more regions with strong export demand.
Market Report - June 9, 2017
One week ago
Spot time charter
One week ago
Day of the Seafarer - Peak Challenge & BBQ
Next Business of Shipping Course
We are pleased to advise that a new “Business of Shipping” one day course sponsored by the Chamber of Shipping and the Institute of Chartered Shipbrokers Canada will be held on June 21, 2017 in Vancouver at the Coast Coal Harbour Hotel.
PRELIMINARY COURSE CONTENT
Module 1: An overview of world shipping - Robert Lewis-Manning, Chamber of Shipping
Module 2: Vessels, Ports and Terminals - Stephen Pyne, Montship Inc.
Module 3: Vessel Chartering Dry & Wet - Daryl Raibl, CTL Westrans Shipbrokers and Paul Hexter, Waterfront Shipping Co. Ltd.
Module 4: Live chartering exercise
Module 5: Maritime law including Ship Source Oil Pollution legislation - Peter Swanson, Bernard LLP
Module 6: The role, responsibilities and structure of Canadian marine pilotage - Kevin Obermeyer, Pacific Pilotage Authority
Module 7: Oil & LNG — a global perspective - Christian Waldegrave, Teekay Shipping (Canada) Ltd.
Seen here as the first vessel of the combined fleets of Gearbulk Shipping and Grieg Star Shipping to be painted in the new G2 Ocean livery is the Fleximax Eco designated vessel Lawin Arrow. In October 2016 it was announced that the two long time competitors would form a joint venture to operate their combined fleet of open hatch, semi open hatch and conventional bulk vessels. In early 2017, it was announced that the name chosen for the joint venture would be G2 Ocean, thereby retaining the “G” from the two owners. Now up and running, G2 Ocean is owned 65% by Gearbulk and 35% by Grieg Star. The total number of vessels operated by G2 Ocean is over 130, supported by a network of offices on every continent.
Delivered in 2014 by Oshima Shipbuilding Co. Ltd, Saikai, Japan Owned by Gearbulk Shipping Operated by G2 Ocean, Bergen, Norway LOA 200m Beam 32m GRT 37,150 tons DWT 62,841 MT Registered in Bahamas Sister vessels: Avocet, Misago and Osprey Arrow
In the four years following delivery of the first of Gearbulk’s Fleximax II vessels, the cumulative impact of several design improvements have provided Lawin Arrow and her three sister vessels with a 13% reduction in fuel consumption at full speed. The design improvements focus on the following areas:
An advanced anti-fouling, low friction, underwater paint system
Two devices ahead of the propeller - flipper fins and a pre-swirl stator which together improve the flow of water into the propeller and hence its efficiency
An improved rudder design which reduces the energy losses in the water after it has passed through the propeller
The elimination of a bow thruster and tunnel which in turn reduces water turbulence and resistance
The combination of these external efficiency improvements enabled a smaller electronically controlled main engine to be fitted to further reduce fuel consumption. The company has estimated that assuming the four Flex II Eco sister vessels operate at full speed at sea for 250 days per year, then the combined reductions in CO2 emissions is equivalent to taking 7,500 cars off the road. As a consequence of these efforts, Lawin Arrow was awarded the Rightship GHG Emissions A grade rating. In the company’s advance on-line literature, one of the world’s largest open hatch gantry carriers, Tenca Arrow (above right) is also simulated in the new colours.
With final regulatory approvals now in place, the G2 Ocean Board of Directors is composed of five members, three appointed by Gearbulk and 2 appointed by Grieg Star. Chair of the Board is Mr. Hans Petter (above left) with Ms. Elisabeth Grieg of Grieg Star (above centre left) assuming the role of Vice Chair. The Chief Executive Officer is Mr. Rune Birkeland (above centre right) nominated by Grieg Star, and the Chief Commercial Officer is Mr. Arthur English (far right) nominated by Gearbulk. The two parties have retained independent technical ship management and ownership in their respective fleets and the scope of the joint venture excludes activities and vessels operated by Gearbulk in association with other third parties, as well as terminal businesses, transshipment activities, the operation of liquid pitch tankers and caustic bulk vessels. For Grieg Star, their Squamish terminal remains outside the scope of the new company.
Grieg Star Shipping, part of the Grieg Group whose business history goes back to 1884, has been in shipping since 1961 and comes to the joint venture with some 45 owned and chartered open hatch, semi open hatch and conventional bulk vessels. Formed in Since 1968, Gearbulk Shipping brings between 85 and 90 open hatch and conventional bulk vessels to the new venture.