COS Weekly News - 16 April 2010

Monday, 19 April 2010 09:51

 

COS News – Week ending 16 April 2010

Issue No. 102

 

 

 

 

GATEWAY INFRASTRUCTURE PROGRAM

Consultations with Port Metro Vancouver continues on the Gateway Infrastructure Program and the fee proposals, and as mentioned in last week’s newsletter COS will hold a members’ meeting on May 6^th to help establish a COS position on the proposals.  Please RSVP to Rose ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it ) if you plan to participate.  In the meantime, we have established a new Members’ Discussion Forum on our website for Principal members to provide input and comment on the proposals.  A login is required to view and post comment.  Should you require a login, please contact Caroline Simister at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or tel: 604-681-2351.

 

 

WASHINGTON MARINE GROUP FORMS ALLIANCE WITH THALES CANADA

Washington Marine Group (WMG) has announced the signing of a Teaming Agreement with

Thales Canada and the beginning of a strategic alliance to provide the Government of Canada a single solution for the future build and in service support of the Arctic Offshore Patrol Ships (AOPS). The AOPS program is worth over $2 billion dollars, delivering 6 ice breaking patrol vessels to the Canadian Navy, as part of the Federal Government’s National Shipbuilding Procurement Strategy (NSPS). It will provide 700 to 800 skilled jobs to BC shipbuilders and 40 to 60 high technology jobs, in Ontario.

 

 

TCRC-MWED AND CP REACH TENTATIVE CONTRACT

Teamsters Canada Rail Conference - Maintenance of Way Employees Division (TCRC-MWED) and Canadian Pacific today announced a tentative three-year contract settlement was reached.  The Memorandum of Settlement will be sent to the union membership for ratification.

 

 

REMINDER FOR CANADIAN BOATERS

As boaters across Canada prepare to start their boating season, law enforcement officers across the country prepare to hand out hefty fines of no less than $250 to an estimated 6 million boaters in Canada who still don't have their Pleasure Craft Operator Card.

 

After a 10 year federal law phase in period, the deadline for all Canadian boat operators to have a Pleasure Craft Operator Card arrived last fall. This boating season marks the first year where ALL boaters in the country, regardless of age, need an Operator Card, commonly referred to as a boating license, or they risk expensive fines if caught without it.  The exam can be taken online at www.BoaterExam.com.

 

 

VANCOUVER AIRPORT FUEL DELIVERY PROJECT

There has been significant media coverage on the Vancouver Airport Fuel Facilities Corporation’s Fuel Delivery Project this week.  The Project includes an upgrade to the wharf located on the south arm of the Fraser River to accommodate fuel barges and Panamax class vessels.  The project will be reviewed under the BC Environmental Assessment procedures plus a number of review processes established by other parties such as Port Metro Vancouver and the Fraser River Estuary Management Program. For more information, visit: www.vancouverairportfuel.ca.

 

 

 

Government News

 

EXPANDING BORDER FACILITIES IN BC

The Honourable Vic Toews, Minister of Public Safety, announced that the Government of Canada has awarded a contract to Kasian Architecture Interior Design and Planning Ltd. to design expanded border-crossing facilities in British Columbia, as part of Canada's Economic Action Plan. This contract is one phase of a larger $20 million accelerated infrastructure package to improve the processing of goods and people at the Abbotsford-Huntingdon and Pacific Highway border crossings.

 

 

CANADA MAKES HISTORIC PROGRESS ON AGRICULTURE PARTNERSHIPS IN CHINA

Agriculture Minister Gerry Ritz announced historic agricultural partnerships between Canada and China. Canadian pulse producers led the way with initiatives that will increase the value of Canadian pulse exports to China to an estimated total of $500 million. Minister Ritz made the announcement following an agricultural trade mission to Beijing and Inner Mongolia where he and Canadian farm leaders worked together to strengthen export opportunities for Canadian pulses, canola, beef, grain, and hogs.

 

 

Other News

 

2010 CONTAINER NEWBUILDS CAN BE ABSORBED

Alphaliner has updated forecasts for container vessel demand by predicting a continued steady decrease in the number of vessels in layup which is currently about 400 equating to 7.5% of global fleet capacity. In addition all 2010 new builds will be readily absorbed.

 

Also this week the U.S. Federal Maritime Commission has indicated that it will not rush to emulate the European Union’s lead in 2008 of terminating container carrier anti-trust immunity despite a widespread shipper campaign for a global ban on conferences. The FMC voiced opinion that the case for termination is unproven. The existing arrangement provides for ocean carriers to belong to discussion agreements such as the Transpacific Stabilization Agreement, which can recommend rate changes but does not set prices.

 

 

US ISSUES EXECUTIVE ORDER ON PIRACY

A White House executive order on Somalia issued this week is being interpreted as deliberately vague to allow for discretionary action by the US government against parties involved in making ransom payments to pirates. The order authorises the Treasury Department to freeze the US property of entities determined to be “contributing to the Somalia conflict”.  The Treasury may also at its discretion block the US assets of persons or entities that, in the Treasury’s opinion, “have engaged in acts that directly or indirectly threaten the peace, security, or stability of Somalia”.

 

 

US IS TRACKING RENAMED IRANIAN SHIPS

By tracing IMO registration numbers, a University of Wisconsin study group has published a list of 78 ultimately Iranian owned ships which have been renamed in order to circumvent US sanctions imposed in 2008. Iranian shell companies are said to have been established in a number of maritime centres, not always with the knowledge of local maritime authorities. Under the sanctions, US banks are required to reject fund transfers involving any Iranian owned ships and it is illegal for shippers or freight forwarders to enter any transaction related to those ships.

 

 

SHEN NENG 1 MASTER AND CHIEF OFFICER ARRESTED

The Master and Chief Officer of the Panamax bulk carrier Shen Neng 1, which ran aground on Australia’s Great Barrier Reef on April 3^rd, have been arrested by Australian Authorities and charged with causing damage to a marine park. The Chief Officer has been charged with being a person in charge of a vessel within the Great Barrier Reef marine park and causing damage to the marine park. He faces up to three years in jail and a $220,000 fine. A preliminary report attributes the grounding to the Chief Officer being fatigue. The Master of the vessel has also been charged with liability for a vessel causing damage in a marine park. The maximum penalty is a $55,000 fine. The vessel was refloated clear of the reef earlier this week but has heavy bottom damage.

 

 

LESS THAN 50% OF REMAINING SINGLE HULL VLCCs ACTIVE

It is now estimated that only 88 single hull VLCC ships remain in the world fleet and of these only 30-40 have found employment so far this year. Some 15-20 single hulls are however in use for storage contracts whilst around 10 more modern vessels have been sold for conversion into very large ore carriers (VLOCs). With 2010, the IMO year of recommended phase out for these ships, Japan, Korea and China are all avoiding single hulls leaving only smaller Asian countries as short-term charters.

 

 

INCREASED PORT SECURITY IN SHANGAI FOR EXPO

Due to the upcoming World Exposition (Expo 2010) in Shanghai 1 May to 31 October 2010, China's Port State Control has set up a specific security inspection system which will be in place from 1 April 2010 to 30 November 2010. During this period, all vessels intending to enter Shanghai must obtain an approval certificate in advance. The application for the certificate should be obtained from the agent and is to be submitted to China's Maritime Safety Administration (MSA) by the owner or charterer and/or master/agent.

 

The inspection and clearance are established on three vessel types:

 

1.       Vessels trading in Chinese domestic waters;

2.       Vessels trading in international waters;

3.       Vessels trading in domestic waters but passing through the restricted waters in Huangpujiang River. 

 

The first and third types of vessel have to be inspected as per the new specific safety inspection. For the second type of vessel, they have to be inspected as per international security rules. All international ocean-going vessels, whatever their flags, headed for Shanghai directly without this approval certificate, should apply in advance for the MSA inspection and approval certificate via their agent. The period of validity of the approval certificate is two months. 

 

 

CRUISE SHIPS SCORE AT SOCCER WORLD CUP IN SOUTH AFRICA

Consistent with Dutch enthusiasm for soccer, Holland America’s Noordam, will be based in Durban for this summer’s world cup. However, the vessel will also follow the tournament by twice heading south for games in to Port Elizabeth. Meanwhile, Westerdam will be based in Port Elizabeth for the first 14 days of the tournament and will then be cruising between Port Elizabeth and Cape Town in line with key fixtures for the remainder of the tournament.

 

 

Meanwhile, the design for a new cruise terminal to be built on the site of the old Kai Tak Airport in Hong Kong has been approved. Designer Lord Foster’s winning submission houses the terminal in a structure resembling a shark skeleton with its mouth open wide towards the sea.

 
design concept new HKG cruise terminal

 

 

 

Market Update

A steady week all round with the Baltic Dry Index closing on 3001 points on Thursday compared to 2922 points last week and 2991 points the week before.

 

                                       Cape Size       Panamax          Supramax          

Index                                  3048               4036                 2596

Last week                           3073               3901                 2471

Spot time charter          $26,100/day    $32,500/day      $27,100/day

Last week                    $26,100/day    $31,400/day      $25,800/day

 

 

 

Upcoming Meetings and Events

 

HUMAN RESOURCES ESSENTIALS WORKSHOP

The BC Maritime Employers Association together with the Asia Pacific Gateway Skills Table is offering six workshops between May and November 2010 in Vancouver, Nanaimo and Prince Rupert.  The three hour workshop is focussed on the marine industry and covers recruitment and retention strategies to reduce employee turnover.  Information and registration forms can be found on-line at www.bcmea.com/hrsme.aspx.

 

 

MARITIME ARCTIC 2010

May 13 – 14^th - The BC Branch of the Nautical Institute is holding a two day seminar entitled Maritime Arctic 2010 in Victoria, BC.  The theme for this year's conference is based around achieving a more thorough understanding of the state of arctic shipping both operational and technical with opinions and insights from current practitioners. The emphasis, as in previous conferences, is on the practical experience and operation of ships not the theoretical.  Complete details can be found by visiting our web-site at: www.maritimearctic2010.com

 

 

Apr 20               COS Northern Committee Meeting

Apr 21               Business of Shipping Course (Prince Rupert)

Apr 22               COS Navigation & Pilotage Committee Meeting @ 10:30

Apr 23               COS Owners Committee Meeting @ 12:00

Apr 26               National CMAC Meeting Week – Ottawa

Apr 27               ICS Board Meeting @ 12:00

Apr 28               Plimsoll Club Annual General Meeting @ 16:00

Apr 28               Pub Night – Retirement Event for Myron Rozumiak / Maria Carter

Apr 29               US Consulate General Videoconference on Piracy @ 11:00

Apr 29               WESTAC Annual General Meeting

May 4               CIABC Board Meeting

May 6               Members Meeting – Gateway Improvement Fee

May 7               COS Board of Directors Meeting

May 12             Plimsoll Club Golf Tournament

May 13             Maritime Arctic 2010 Seminar

May 17             International Tug & Salvage Convention 2010

May 19             Human Resources Essentials 1^st Workshop

May 26             Port Secure 2010 – Canadian Port & Maritime Security Conference & Expo

 

 

 

Ship of the Week

                                              

                                NYK ORION

 

Built 2008

LOA 336m

Beam 46m

DWT 99,500

Capacity 8600 TEU

Sister ships NYK Oceanus, Olympus and Orpheus,

 

 

NYK Orion is currently engaged in the company’s Far East to Europe trade. A clip of the ship transiting the River Elbe can be found on the following link http://www.youtube.com/watch?v=o3BWVZV44cw . NYK traces its history back to 1870 and today operates around 800 ships.

 

 

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