COS Weekly News - 14 May 2010

Monday, 17 May 2010 08:56

COS News – Week ending 14 May 2010

Issue No. 106

 

 

 

GATEWAY INFRASTRUCTURE FEE

Reminder that today is the deadline for submissions on Port Metro Vancouver’s proposed Gateway Infrastructure Fee.  For more information visit: www.portmetrovancouver.com/GIP.  To view the COS submission, Principal members can log in to our website and visit our Members Forum.  Submissions can be made to:

Mail:     Kirk & Co. Consulting Ltd.

             402-1250 Homer Street, Vancouver, BC  V6B 1C6

Fax:      604-688-7250 Attention:  GIF Consultation

Email:   This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

ASIAN GYPSY MOTH – ADVISORY

The Canadian Food Inspection Agency and the US Department of Agriculture have issued the attached joint advisory on changes to the Asian Gypsy Moth policy and have provided an updated inspection guide for vessels.  While the draft revisions to the policy directive D-95-03 seek to regulate all ports in China, Korea and Japan, there are currently no authorized inspection agencies in China and Korea.  Full implementation and enforcement of the new policy to include vessels from Chinese and Korean ports is expected to occur only in 2012.  In the interim, vessels from China and Korea will be permitted to enter Canadian waters without a Phytosanitary Certificate, but CFIA will randomly inspect vessels from these ports. The new and final directive is expected to be released at the end of May. 

 

 

PORT OF PRINCE RUPERT POSTS STRONG PERFORMANCE

The Port of Prince Rupert has recorded a strong first quarter, handling 4,119,708 tonnes in the first quarter - a 73% increase in tonnage over 2009.  The surge in traffic was driven by a 217.9 per cent jump in throughput at Ridley Terminals and an 84.3 per cent increase at the Fairview Container Terminal.  A recent impact study indicates that port-related operations and activities in Prince Rupert are contributing $280 million in annual GDP and $500 million in economic output for regional and provincial economies.  For other updates from Prince Rupert, view the  54 North Newsletter.

 

 

Government News

 

CREW MEMBER CONVICTED OF SMUGGLING CHILD PORNOGRAPHY

The Canada Border Services Agency (CBSA) in Halifax arrested and charged a cruise ship crew member after finding explicit electronic images on a laptop computer depicting child pornography this week. The crew member pleaded guilty to charges under the Customs Act of smuggling prohibited goods, and under the Criminal Code for possession of child pornography.   The 24-year-old non-resident was sentenced to four months in jail after which time he will be removed from the country.

 

SMALL VESSEL REGULATIONS AND CONTRAVENTIONS PUBLISHED

The Small Vessel Regulations and the amendments to the Contravention Regulations were published in the Canada Gazette Part II on May 12, 2010.  The Small Vessel Regulation have been updated in order to better reflect the nature of the small vessel fleet in Canada and to ensure consistency with international standards respecting lifesaving appliances, vessel construction and compliance notices (otherwise known as Capacity or Conformity Labels).  The amendments to Contravention Regulation implements fines for non-compliance with the Small Vessel Regulations.

 

FIRE AND BOAT DRILLS REGULATIONS

The Regulations have been updated and published in the Canada Gazette Part II.

 

RENEWABLE FUEL USED AS SHIPS’ STORES REMISSION ORDER

Also published in the Canada Gazette Part II is the Remission Order that provides relief from the duties collected on renewable fuels, such as ethanol and biodiesel, imported into Canada during the period commencing on April 1, 2006 and ending on June 17, 2009 and subsequently laden on board a qualifying conveyance for use as ship’s stores.  Formerly, only certain petroleum products and diesel fuels were granted relief from customs duties and excise taxes.

 

 

Other News

 

UN GENERAL ASSEMBLY DISCUSSES PIRACY

Though the issue has been before the U.N. Security Council on several occasions, amazingly enough the U.N. General Assembly in New York was for the first time today scheduled to discuss the problems of piracy off Somalia and the Gulf of Aden. The International Maritime Organization Secretary General will attend the session in the hope of heightening awareness of the scale of the issue.

 

At the annual dinner of the London Maritime Association at the Baltic Exchange last Wednesday evening, the key note speech voiced the growing anger and dissatisfaction about how poorly the world’s governments and their navies are handling the piracy threat to global shipping. Dinner guests heard that half of the estimated 1,000 Somali pirates that have been captured in the past 18 months were then immediately released because of a host of legal complications “and shipping is tired of it”. Exchanges on piracy also took centre stage at the Intertanko 40th anniversary dinner this week.

 

A small UK flagged chemical tanker was yesterday released following payment of a ransom after being detained for five and a half months. However, pirates have taken two other vessels this week, the small Bulgarian chemical tanker Panega which was on its way for scrapping and Greek owned bulk carrier Eleni P.

 

MORE SINGLE HULL TANKER CONVERSIONS

Saudi Aramco subsidiary, Vela International, has sold another five 1994-95 built single hull VLCCs to the world’s largest iron ore producer “Vale” for a price of around $117m, a nice premium over scrap prices. This follows a similar Vela/Vale transaction involving two VLCCs one year ago. All vessels are destined for conversion to large ore carriers in line with the Vale policy of reducing its exposure to the spot charter market. In fact the company has committed an estimated $9.3bn to developing its own shipping fleet along with control of its entire freight logistics needs within the next three years.

 

MAERSK BECOMES THE TOAST OF A SCOTTISH TOWN

Public opposition to the layup by Maersk of six container vessels in scenic Loch Striven on Scotland’s west coast has subsided with the company’s charm offensive and after it was announced that the company is donating its $44,000 fee from hosting a BBC television series for children on one of the ships. As we reported last year (November 12 2009 newsletter), the first of the vessels arrived last summer, leading to angst among the locals.  The only condition set by Maersk was that the money be used to benefit the local community.

 

The winner in an online competition was the Rothesay Pipe Band, while second place went to a lecturer at Dundee University who identified Loch Striven as the site where inventor Barnes Wallis tested his famous World War Two Dambusters bouncing bombs. Three primary schools all received a slice, as did two local charities.

 

PANAMA CANAL

The Panama Canal Authority (ACP) Administrator this week provided a briefing on the canal expansion project to the International Navigation Organization’s 32nd Congress in Liverpool, UK. To date, 100 percent of the excavation work has been completed for the first two phases of the Pacific access channel and close to 30 percent of work completed on the deepening and widening of Gatun Lake and the Gaillard Cut, the narrowest stretch in the Panama Canal. In the early stages of the Panama Canal expansion studies, the International Navigation Organization’s reports were instrumental in helping the ACP in its search for proven locks technologies in use worldwide, such as rolling gates and water saving basins.  

 

ROYAL CANADIAN NAVY CENTENNIAL STAMPS

Canada Post’s commemorative stamp issue depicts the past and present of Canadian naval service. The two stamps were designed as separate artworks, but they appear as one canvas. “The two ships, though of a different age, appear as part of the same fleet,” notes designer Andrew Perro. “One of Canada’s first warships, the HMCS Niobe, sails alongside a modern frigate, the HMCS Halifax—a feature that speaks to the passage of time, capturing the magnitude of this major centennial milestone.”

 

Earlier this week planned cuts to Canada’s navy were released to the media.  A budget shortfall has forced the navy to remove three ships – HMC Nanaimo, Saskatoon and Yellowknife - from active duty at Canadian Forces Base Esquimalt.  The HMCS Vancouver and HMCS Algonquin are expected to be downgraded to “reduced readiness” status and the HMC ships Ottawa and Protecteur will have reduced the combat capability.

 

 

Market Update

Lead by a surge in demand for Capesizes, the Baltic Dry Index had a good week closing on Thursday on 3914 points compared to 3468 points last week and 3329 points the week before.

 

                                       Cape Size      Panamax          Supramax          

Index                                  4861              4273                 3053

Last week                           4041              4018                 2817

Spot time charter         $50,300/day   $34,400/day      $31,900/day

Last week                    $40,000/day   $32,300/day      $29,500/day

 

The previous few weeks of irrational premiums paid for Panamaxes over Capes has finally evaporated with Capes now attracting a rightful premium of around 45% in terms of daily hire returns. At the same time Supramax rates rates continue to rise with seemingly plenty of business in both the Pacific and Atlantic. Whilst the Supramax index closed at $31,900/day which is an 18 month high, front haul rates of grain from the US Gulf to Europe reached the princely sum rate of $57,000 per day.

 

Tankers: Aframax time charter equivalent earnings in the Atlantic this week exceeded VLCC earnings for the second time this year. Average Aframax earnings are up to $27K per day, compared to average VLCC earnings of $24K per day. This is in spite of Iranian crude oil in floating storage consuming 21 VLCCs at a record 5.8m tons. In the still struggling product tanker sector, a reduction in average speed from 14 to 12 knots would boost the amount of capacity needed in the global fleet from anywhere between 11% to 14%, according to Clarksons Research. The question is, how to universally implement such a change?

 

Containers: Panamax container rates this week hit $20,000 per day for one year, the highest in 18 months hence we are likely to witness the number of container ships in layup continue to shrink as it becomes possible for them to make money again.

 

 

Upcoming Meetings and Events

 

VTC/CIFFA/PRCA – DINNER WITH MINISTER STOCKWELL DAY

June 10^th - The Vancouver Transportation Club, Canadian Freight Forwarder Association and Pacific Rim Cargo Association will host a dinner with guest speaker, the Honourable Stockwell Day, Minister for the Asia Pacific Gateway on June 10th at the Executive Airport Plaza in Richmond. Tickets can be purchased in advance through the Doug Mills at tel: 604-665-9096 or via email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

 

 

May 17             International Tug & Salvage Convention 2010

May 18             ICS/COS Freight Futures Seminar

May 19             Human Resources Essentials 1^st Workshop

May 20             Business of Shipping course in Winnipeg

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

May 26             Vancouver Grain Exchange Meeting @ 10:00

May 26             PACMAR/NANS Meeting @ 10:30

May 26             WMCC Annual General Meeting @ 11:30

May 28             COS Navigation & Pilotage Committee @ 10:00

May 28             COS Owners Committee Meeting @ 12:00

June 1               CIABC Board of Directors Meeting @ 10:30

June 2               COS Board of Directors Meeting @ 11:30

June 8               PMV Security Stakeholders Meeting @ 09:30

June 8               COS Ship & Port Operations Committee Meeting @ 12:00

June 9               COS Liner Committee Meeting @ 10:00

June 15             ICS Board of Directors Meeting @ 12:00

 

 

Ship of the Week

 

New European Superferry - Stena Hollandica

 

Built 2010 in Wismar Germany

LOA 240m

Beam 32m

GRT 62,000

Capacity 230 cars, 230 trucks with 1376 beds

 

The entry into service of the world’s largest ro-pax ferry, the new Stena Hollandica will take place on May 16. The vessel has been built for Stena’s European short sea trade from Harwich in Eastern England to the Hook of Holland. Stena Hollandica and her sister ship Stena Britannica, which is due to be launched in the fall, represent a combined investment of over £375m ($560m) and are the largest ferries of their type in terms of combined passenger and freight capacity. Stena Hollandica was built at Wadan Yards, Wismar, Germany with various energy saving features such as an optimised hull form and hull coating system, a common rail system for the main engine and a propulsion system fitted with a state-of-the-art route optimization system based on weather, currents, depth of water etc. The vessel has several bars, restaurants, a movie theatre and shops.

 

               

 

Stena Line is one of the world’s largest ferry companies with a modern fleet of 35 vessels and Europe’s most comprehensive route network consisting of 18 ferry routes in Scandinavia and around the UK . In 2009 the company carried 15. 4m passengers, 3.3m vehicles and 1.6m tons of freight

 

< Prev		Next >