COS Weekly Newsletter - 07 June 2019
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CP and Yang Ming enter into rail contract Vancouver and Prince Rupert terminals may consider automation Canada needs to up its game on protecting its oceans Senate votes to proceed with oil tanker ban bill in test of body’s autonomy Regulatory Roadmaps Released Carnival to pay $20M fine after violating probation after ocean pollution conviction US Great Lakes Ports feel overlooked in infrastructure discussions US Bans Cruises to Cuba MSC cruise ship crashed into a dock and tourist boat in Venice Oldendorff grows ties with Chinese firms Viking cruise collision kills 17 J. Lauritzen Shrinks Fleet by 15 vessels K Line to Cut Ship Emissions with Automated Power Kites June 7 - CCGS CAPT. JACQUES CARTIER |
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COS Weekly Newsletter
Expanded voluntary ship slowdown through Haro Strait and Boundary Pass begin
The expanded voluntary slowdown through boundary pass came into effect on June 1st. Now in its third year, the goal of the trial is to better understand and reduce underwater noise effects on Southern Resident Killer Whales in their key foraging areas. The slowdowns are part of the ECHO Program using research that shows that reducing ship speed effectively reduces the underwater noise in nearby habitats. This in turn, is predicted to benefit the behaviour and feeding success of Southern Resident Killer Whales. The distance of the trial area has been increased by 15.1 nautical miles for a total of 29.6 nautical miles. The slowdown will continue until September 30, 2019 with two-week extensions to no later than October 31 if the whales are still present in the area.
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CP and Yang Ming enter into rail contract
Canadian Pacific Railway and Yang Ming have entered into an agreement to position the railroad to provide better service out of GCT Deltaport. CP will begin handling all of Yang Ming’s cargo moving through Canada in 2020 and will become the largest rail provider to Deltaport. In recent years, CP has intensified its efforts to focus on international intermodal services. Over the next 12 months, the Canadian railroad service contracts with several shipping lines will expire, potentially pitting the two Canadian railroads against each other for the business.
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Vancouver and Prince Rupert terminals may consider automation
With a new contract in the works between the ILWU and the BCMEA, terminals in Vancouver and Prince Rupert will consider automated or semi-automated operations to accommodate growing container volumes. A very contentious issue facing waterfront employers, there are only two fully automated terminals and five semi-automated terminals in North America. Automation has the potential to help maintain the movement of good through the ports. Longshore unions view automation as a development that can potentially reduce jobs by 40-70 percent. However, automation also creates new jobs that involve computer programming and technology. The unions want to ensure if automation occurs, the jobs that are created fall under their jurisdiction and that union members will be trained to handle the new work.
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Canada needs to up its game on protecting its oceans
Canadian Parks and Wilderness Society has issued a report indicating that Canada needs to increase ocean protections. It notes that at least 30 percent of Canadian oceans should be protected to ensure all the habitats are protected and that we’re securing the future for healthy oceans. Protection could come in many forms, including banning oil, gas or mineral projects, not dumping waste and ruling out bottom-trawling fisheries. In the last two years, the percent of Canada’s oceans that are under some form of conservation agreement has risen from one percent to eight percent, a number that is likely to rise above 10 percent by next year. The full report can be found here: https://cpaws.org/wp-content/uploads/2019/06/CPAWS_oceans_report2019_ENG_web.pdf
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Government
Senate votes to proceed with oil tanker ban bill in test of body’s autonomy
The Senate has voted to proceed with the oil tanker ban, against committee recommendation. Canada’s oil and gas sector has been adamantly against the legislation, believing that it will harm getting energy exports to market. Bill C-48 will now move to third reading, where Senators will be able to propose amendments. If ultimately successful, the bill will ban oil tankers carrying more than 12,500 metric tonnes of crude oil from stopping at ports or marine installations located along BC’s northern coast. Senators will still be able to propose amendments to Bill C-48 at the third reading.
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Regulatory Roadmaps Released
The Government of Canada has released four Regulatory Roadmaps for targeted high-growth sectors, including agri-food and aquaculture, health and bio-sciences, transportation, and infrastructure. These sectors were identified for Regulatory Reviews in Budget 2018. For marine transportation the themes include the need for more flexibility in the regulatory framework, a need for more coordination among jurisdictions and collaboration with industry, and a need for clarity and certainty within the regulatory framework, and a need for greater digitization of services.
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US News
Carnival to pay $20M fine after violating probation after ocean pollution conviction
Carnival has been slapped with a $20M fine for violating probation after an ocean pollution conviction. In 2016, the company paid a $40M after pleading guilty to the charges and were placed on a five-year probation. Carnival reached the $20M settlement with federal prosecutors after its ships were found to be continuing to pollute the oceans. The company plead guilty to the charges and admitted to dumping grey water in prohibited places, knowingly allowing plastic to be discharged with food waste, and falsifying compliance documents. Future violations could result in prison time and criminal fines for individuals and executives could be held personally liable. Carnival has promised to implement additional audits to check for violations, a restructuring of the company's compliance and training programs, a better system for reporting environmental violations to state and federal agencies, and improved waste management practices.
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US Great Lakes Ports feel overlooked in infrastructure discussions
Managers of the Port of Cleveland and other ports around the Great Lakes say they’re being overlooked in the national conversation about America’s crumbling infrastructure. Ports are the place where ships and barges meet trucks and trains, where water meets rail and road and deserve to be made a priority in infrastructure investments. Historically, there hasn’t been any regular infrastructure appropriations from Congress or state legislatures. Currently, to fix or improve their facilities, port officials must either finance the projects themselves vie for discretionary federal grants. However, there may be a shift underway, as for the first time, Congress has set aside $293 million dollars for ports.
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US Bans Cruises to Cuba
The Trump administration has banned cruises to Cuba under new restrictions on US travel, imposed to pressure the island to stop supporting Venezuelan President Nicolas Maduro. The ban applies to passenger and recreational vessels, including cruise ships and yachts, as well as private and corporate aircraft. The ban came into effect with no advance notice, giving cruise lines no grace period to change destinations and creating confusion among cruise passengers.
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International News
MSC cruise ship crashed into a dock and tourist boat in Venice
The cruise ship MSC Opera crashed into a dock and tourist boat River Countess in Venice, causing injuries to five people. The 2,679-passenger MSC Opera was assisted by two tugs through the canal when it lost control and collided with the dock. While the exact cause of the collision is not known, local media has reported that it is likely that the ship either suffered a blackout or the towing cable broke, and was unable to stop due to strong currents pulling it towards the dock. The hull of MSC Opera as well as the tourist boat have been damaged in the incident.
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Oldendorff grows ties with Chinese firms
Oldendorff Carriers has completed 23 deals with three Chinese leasing companies over the last year. The deals comprise four 209,000 dwt, two 180,000 dwt, four 81,000 dwt, eight 63,500 dwt and five 61,000 dwt bulkers. Eight of the 10 vessels will be equipped with open loop scrubbers, while the other two will be equipped with hybrid scrubbers. In addition, by 2021, Oldendorff will have taken delivery of 106 newbuilds from 23 Chinese shipyards. Oldendorff currently has a fleet of 750 vessels with a total tonnage of 63.4 million dwt and an average age of eight years.
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Viking cruise collision kills 17
The Viking Sigyn collided with a smaller sightseeing boat The Mermaid, capsizing the boat and killing at least seventeen South Korean passengers. The incident took place as the vessels were approaching the Margaret bridge in Budapest on the Danube River. The Mermaid was carrying 33 Korean passengers with two Hungarian crew. The captain of the cruise ship has been arrested on suspicion of endangering water transport leading to a deadly mass accident.
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J. Lauritzen Shrinks Fleet by 15 vessels
J. Lauritzen has shrunk its fleet by 15 bulk carriers. due to a weak market for bulk. The decision comes as a reaction to the slowing bulk market and ongoing global trade which caused larger freight rate declines across all dry bulk vessel sizes.
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K Line to Cut Ship Emissions with Automated Power Kites
K Line has signed an agreement Airseas, a developer of automated power kites for ships. Initially, Airseas will install and service one ship with the automated kite. Once in place, K Line will consider ordering up to 50 automated 1000 sqm kites. The kites use parafoil technology to tow commercial ships, helping save more that 20% on fuel and reduce CO2 emissions.
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Upcoming Events
Port of Vancouver Harbour TourFrom: 2019-06-08 09:00:00At: Vancouver Convention Centre East Building |
Vancouver Grain Exchange Annual Golf TournamentFrom: 2019-06-14 13:30:00At: Quilchena Golf & Country Club |
International Sailors Society of Canada AGMFrom: 2019-06-18 12:00:00At: Chamber of Shipping Boardroom |
For details on any of the events noted above, visit our Events page.
Ship of the Week
June 7 - CCGS CAPT. JACQUES CARTIER
Seaspan Shipyards launched the CCGS Capt. Jacques Cartier this week. It is the second largest non-combat vessel to be designed and built under Canada's National Shipbuilding Strategy. The boat features four science labs and state of the art acoustic survey equipment. The vessel measures 63.4 metres, and the bow features an ice-strengthened hull which is capable of operating in areas of thin ice. The vessel will soon begin the journey to its home port in Dartmouth, N.S. and is expected to join the coast guard after completing its sea trials.
