Canada Border Services Agency has issued Customs Notice 18-12 Coasting Trade Vessels Leaving Canadian Waters. At present, the policy is to cancel a coasting trade licence when a temporarily imported vessel leaves Canadian waters and goes international, irrespective of the authorized dates the licence was issued for. Effective immediately a coasting trade licence will no longer be cancelled by the CBSA when a vessel leaves Canadian waters, unless the vessel has completed the activity for which the licence was issued or if the authorized dates indicated on the licence have passed. A new coasting trade licence is not required providing the dates on the existing coasting trade licence remain valid.
Six Canadian innovators will lead roundtable discussions with Canadians on digital and data innovation From early August to mid-September, innovative experts will host roundtable discussions in cities across Canada with business, academia, civil society and others. Target cities for roundtables include Victoria, Vancouver, Calgary, Regina, Winnipeg, Waterloo, Toronto, Ottawa, Montréal, Québec, Fredericton, Charlottetown, Halifax, St. John’s, Whitehorse, Yellowknife and Iqaluit. All Canadians are invited to participate in the National Digital and Data Consultations online.
Allianz Global Corporate & Specialty recently released its annual report, Safety & Shipping Review 2018. The report highlights cyber, climate risks and human error as the main factors threatening shipping’s safety progress during the 12 months prior to December 31, 2017. Large shipping losses have declined 38% over the past decade with this downward trend continuing in 2017. Recent events such as the collision of the oil tanker “Sanchi” and the impact of the NotPetya malware on harbor logistics underscore both the traditional and emerging risk challenges faced by the shipping sector.
MOL in cooperation with MES-S, the Tokyo University of Marine Science and Technology and Akishima Laboratories announced that on July 25, their joint demonstration project regarding the safety of vessels' auto berthing and un-berthing was selected for Japan's Ministry of Land, Infrastructure, Transportation and Tourism (MLIT)'s fiscal year 2018 autonomous vessel demonstration project. Berthing and un-berthing are some of the most difficult phases of ship operation, in which autonomous operations would be of great benefit. This auto berthing and un-berthing demonstration project will identify technical issues by demonstrating autonomous operation with a real vessel and study ways to achieve practical use. In this fiscal year, the demonstration test will be conducted by using the training ship of TUMST "Shioji Maru", and starting next fiscal year, members are planning a test using a large-size ship in a domestic ferry service.
Stewart Muir of Resouce Works examines what the arrival of the laden oil tanker Nordtulip at Anacortes, WA on July 31st all means. The Portuguese-flagged tanker ship was coming directly from the port of Nakhodka near Vladivostok, Russia, and is estimated to be carrying 600,000 to 650,000 barrels of oil. The Trans Mountain pipeline has commitments to supply at least one of the two refineries in Anacortes following its expansion, but until then it is struggling to keep up with the demand for more capacity through the pipeline. The market acceptance of Russian oil by the US raises eyebrows as Canadian suppliers of crude oil follow much more stringent environmental policies than those of Russia. In the picture above, it shows three laden tankers - two from Alaska and the Nordtulip en route to Anacortes on the same. The Trans Mountain Pipeline expansion at capacity would see one tanker call a day compared to the average one tanker a week seen today. It definitely makes one question what role the US and its ambitions for energy dominance plays into all of this.
Earlier today China listed 5,207 US products that it would target in an effort to "safeguard its own legitimate interests" should the Trump administration follow through with its $200 billion tax on Chinese goods. This time the list includes both US liquefied natural gas (LNG) and crude oil exports. It’s the first time that LNG has been ensnared by the expanding trade war and comes as Russia plans to begin pumping gas to China through its newly-built 2,500-mi Power of Siberia pipeline by the end of 2019. China is the world’s biggest crude oil importer and emerged as the world’s biggest importer of natural gas, topping Japan, as it aggressively moves to reduce its reliance on smog-inducing coal. US LNG executives are quaking in their boots as several large-scale LNG export facilities are under construction. The US is the world’s largest exporter of fuels such as gasoline and diesel, and is poised to become one of the largest exporters of LNG by 2019. US LNG exports were worth $3.3 billion in 2017 and there two dozen firms seeking to build new export terminals in the United States. British Columbia, was in similar boat five years ago and today we are still waiting for our first LNG export facility to begin construction.
BC Ferries has issued Requests for Expressions of Interest (RFEOI) for the procurement of five new vessels to replace aging fleet assets. The competitive bidding process is open to local, national and international shipyards, including consortiums. BC Ferries is encouraging local and national companies to bid on these projects. The first RFEOI is for the procurement process for the construction of four 81-metre Island Class ferries, each with a capacity of 450 passengers and 47 vehicles. The expected delivery date for the first two of these vessels is in 2020, with the following two ships delivered in 2021.
Seaspan Shipyards has announced that Mark Lamarre will be the new Chief Executive Officer of Seaspan Shipyards, effective immediately. Mr. Lamarre succeeds Brian Carter, who has stepped down from his role at the company to pursue other opportunities. Mr. Lamarre is a seasoned shipbuilding executive with over 30 years of experience in operations, and business transformation. Most recently, Mark served as CEO of Australian Shipbuilding Company (ASC), where he led a $600 million shipbuilding division of ASC engaged in the engineering, construction, activation and post-delivery support of Naval surface combatants to the Australian Navy.
CN's Board of Directors have appointed Jean-Jacques Ruest as President and Chief Executive Officer effective immediately. Ruest, 63, has been with the CN for 22 years, the last eight as Executive Vice-President and Chief Marketing Officer. Ruest was appointed Interim President and Chief Executive Officer on March 5, 2018 following the sudden departure of Luc Jobin.
Last Saturday, a workplace accident at Fraser Surrey Docks tragically claimed the life a mechanic and member of the International Longshore and Warehouse Union Local 502, and injured one other. Few details have been released but it has been reported that mechanic was working on a piece of equipment, a lift truck, and was crushed by a part of the machine. An investigation into what led to the accident is underway.
Western Canada Marine Response Corporation has signed a 25-year lease agreement for 6.225 acres of land in Port Alberni. The Port Alberni response base, which is part of a larger $150 million expansion plan, will work with vessels forward-stationed in Ucluelet to respond to spills on the west coast of Vancouver Island. Construction of the response base in Port Alberni is expected to cost $8 million. When complete, it will be home to 20 full-time response personnel. Also this week a lease agreement covering waterlot areas and land on Shelter Island in Richmond was signed.
The Canadian International Trade Tribunal says it has found there is a reasonable indication that dumping and subsidizing of some steel products by several Asian countries have harmed or could harm Canadian steel producers. The tribunal says it found the People’s Republic of China, the Republic of Korea and the Socialist Republic of Vietnam all likely interfered in the market for cold-rolled steel in coils and strips. The tribunal’s inquiry follows investigations by the Canada Border Services Agency on dumping and subsidies. The agency’s investigation continues and it will issue preliminary determinations by August 20. On July 18, 2018, the CBSA issued assessments of anti-dumping duty against two importations of steel rebar from Turkey that arrived in Canada in 2017. The total amount of anti-dumping duty retroactively assessed by the CBSA was over $1.8 million.
The Government of Canada has granted $25,000 for a University of Alberta project called “A genetic algorithm approach towards optimizing container placement in intermodal trains for reduced aerodynamic drag.” The project will help develop a computerized method to optimize the loading of trains in order to reduce wind drag. Canadian National Railway estimates that each aerodynamic gap greater than 10 feet between containers can increase the train’s fuel consumption by up to 1%.
The BC government has released the first three intentions papers for consultation on sectoral strategies for reaching the government's greenhouse gas (GHG) reduction targets. These papers which cover Clean Transportation, Clean, Efficient Buildings and a Clean Growth Program for Industry will be integrated into the energy roadmap, economic development strategy, tech strategy and the new emerging economy taskforce. The intentions paper for Clean Transportation include integrating transportation and land use planning; supporting electric or hybrid ferries; increasing use of clean electricity and technologies in ports; integrating cleaner and more efficient shipping corridors; examining ways to shift modes of transportation, such as moving more goods by rail; and, increasing engagement with stakeholders to make trade and shipping more efficient in BC.
On April 30, 2018 the US Citizenship and Immigration Services (USCIS) introduced a six-month pilot that encourages L1 visa applicants to file in advance a Form I-129 petition, plus supporting evidence for Canadian citizens seeking to enter the US as L1 executives or managers to the California Service Center. The Blaine, WA border crossing is the first pilot site and US CBP officers will not be validating L1 applications on-the-spot during the pilot period at that particular border crossing during the pilot which ends October 31, 2018. Those wishing to avoid the advance adjudication process can use an alternate border crossing where the on-the-spot processing remains.
Trucking shortages continue to drive the hottest freight market in years with rates 20 to 30 percent higher than last year. Truckload carriers are becoming more selective and chosing the most profitable loads and lanes. US manufacturers and retailers are concerned and looking for supply chain efficiencies to counter higher logistics costs. Also this week container lessors, manufacturers, and intermodal providers lobbied against a proposed tariff of 25 percent on shipping containers before the US Congress Section 301 Committee. Fears of this tariff in addition to higher surface costs would be a double whammy to US shippers. About 97 percent of marine containers are made in China.
A survey of Exhaust Gas Cleaning Systems Association (EGCSA) members has revealed that scrubber uptake is rapidly accelerating with the number of ships with exhaust gas cleaning systems installed or on order standing at 983 as of 31 May 2018. This follows a slew of recent reports that major ship operators, including Spliethoff, Frontline, DHT and Star Bulk have opted for scrubbers. One of the ‘big’ container companies has confirmed it will use scrubbing as part of its 2020 compliance portfolio and there are rumours that others will do likewise. EGCSA believes that although there has been a surge in demand, yard capacity is not an issue going forward, however other constraints such as the availability of laser scanning specialists and experienced installation teams mean that it may not be possible to pick and choose an installation slot nor coincide a scrubber installation with an already scheduled drydock in the near future.