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COS Weekly News - 21 May 2010

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COS News – Week ending 21 May 2010

Issue No. 107

 

 

 

ASIAN GYPSY MOTH CRITICAL RESPONSE PLAN

The Canadian Food Inspection Agency has released the draft Asian Gypsy Moth Critical Response Plan – to Prevent the Incursion of Lymantria Dispar L. from Ships and their Cargo Entering Canadian Ports for comment by June 4, 2010.    The Plan requires industry (vessels and terminals) to establish an immediate emergency response to situations where ballooning larvae may be detected on vessels and/or their cargo.  Members can provide input to the draft plan by email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it or by logging into our Members Forum on our website.

 

 

PMV BOARD APPOINTMENT

Canada’s Transport Minister John Baird today announced the appointment of Eugene Kwan to the board of directors of Port Metro Vancouver for a three-year term.  Mr. Kwan holds a law degree from the University of British Columbia. He is currently the president and chief executive officer of Agincourt Capital Corporation and senior counsel to Stikeman Elliott LLP, an international business law firm based in Canada.

 

 

CANADIAN RESOURCES APPLIED TO THE DEEP WATER HORIZON RESPONSE

At a Western Canada Marine Response Corporation (aka Burrard Clean) User Group meeting held earlier this week, the extent of Canada’s participation in the response to Deep Water Horizon incident was presented.

 

Currently a team of 13 support personnel from WCMRC, East Coast Response Corporation and contractual support are located in the Incident Command Post in the Gulf and given field assignments that are changing daily.  Teams will be rotated in and out on a two week basis.  A combined list of Canadian personnel and equipment is available is ready to be deployed with Transport Canada approval.  WCMRC has sent 4,800 feet of boom and has made available another 10,000 ft plus various pieces of equipment.  The magnitude of this response effort is astounding. 

 


TRAGIC ACCIDENT AT LYNNTERM

North Vancouver RCMP has confirmed that a man died on Wednesday afternoon this week in an industrial accident at Lynnterm. A driver was operating a forklift on the barge ramp at Lynnterm West when a pontoon is reported to have collapsed.  Both the forklift and driver fell into the water. Police, Canadian Coast Guard and paramedics attended the scene but rescuers were unable to revive him.

 

 

BUSINESS OF SHIPPING TEAM PRESENTS TO CWB

The “Business of Shipping” team was in Winnipeg this week at the invitation of the Canadian Wheat Board. A large CWB audience was treated to a full day of presentations incorporating a number of recent updates. We were also pleased to co-sponsor with the Institute of Chartered Shipbrokers the highly informative presentation on Dry Cargo Freight Futures held on May 18th. 

 

 

 

Government News

 

CANADA AND DENMARK SIGN ARCTIC COOPERATION ARRANGEMENT

General Walt Natynczyk, the Chief of the Defence Staff, welcomed General Knud Bartels, the Chief of Defence of Denmark, to Ottawa on May 13 -14 to discuss a range of issues of common interest, including the Arctic, NATO, Afghanistan, and counter-piracy.

 

General Natynczyk and General Bartels also signed a Memorandum of Understanding (MOU) on Arctic Defence, Security, and Operational Cooperation. The MOU will enable Canada and Denmark to deepen cooperation in our respective Arctic regions, through enhanced consultation, information exchange, visits, and exercises. The MOU builds on a joint visit by the Canadian and Danish Chiefs of Defence to the Canadian Arctic and Greenland in August 2009.

 

 

Other News

 

NEW US LEGISLATION IN SUPPORT OF ABANDONED SEAFARERS

Funding assistance to seafarers involved in US investigations or abandoned by their employers is included in a new US Coast Guard Authorization Bill. The Bill specifically calls for a new “Support of Seafarers Fund” to ensure fair treatment of seafarers involved in an ongoing US investigation or law enforcement action, and for seafarers abandoned in the country. Shipowners or operators who are found to have failed to provide necessary support for seafarers paroled in the US in an investigation, or found to have abandoned a seafarer, would be required to reimburse the Fund for costs plus 25%, failing which the government may arrest their vessels or revoke permission for that company’s vessels to call at US ports.

 

Other provisions in the Bill include a mandate for the USCG to work directly with international organizations such as the International Maritime Organization. Of significance to current discussions in Ottawa, the Bill also provides funding for an analysis of the costs and benefits of building new polar icebreakers versus rebuilding existing vessels.

 

 

OPA 90 CHANGES AHEAD?

Marine industry fears of a swift reaction in the US to the oil pollution caused by the Deepwater Horizon oil spill have been vindicated.  On May 12, the White House submitted a request to Congress proposing legislative changes to address events in the Gulf of Mexico. Section 15 of the proposal, entitled, Oil Spill Liability Trust Fund; Limitations on Expenditures, contains amendments to the Oil Pollution Act of 1990 (OPA 90).  Unlike recent Congressional proposals which tabled amendments to the OPA 90 limits of liability only for an offshore facility, the White House request is proposing amendments to the limits of liability for all entities including tank vessels, any other vessel, offshore facilities and onshore facilities.  Specifically, the request is proposing to strike all of the limits of liability that currently exist and replace them with "the total of all removal costs, plus $X."  The explanation under Section 15, then says,

 

"The proposal would also raise the limitation on liability for responsible parties.  The Administration looks forward to working with the Congress to develop the levels for the various caps that provide for substantial, and proportional, increases."  

 

In addition, the very first part of Section 15 proposes an increase from $500 million to $750 million in the maximum amount that can be paid for the natural damage assessments and claims in connection with any single incident.

 

 

ANTI-PIRACY E-PETITION LAUNCHED

A number of marine industry associations are sponsoring a global e-petition against piracy. For those who would like to offer support, the link is as follows:  http://www.itfseafarers.org/petition.cfm

 

A widely circulated Intertanko memo this week urged Governments to commit to “the maintaining of international sea lanes with concerted efforts to find real and workable solutions to enable them to fight piracy more aggressively and effectively by:

 

§    increasing naval and other appropriate military support, and by adjusting their rules of engagement for naval forces - rules which should be robust enough to tackle piracy head-on;

§    ensuring effective powers are granted and are in place to arrest, detain and bring to justice all those who operate on the high seas outside the law”.

 

In recognition of the need for stronger action, renewed focus and new initiatives, Intertanko has  joined with others in the international shipping industry to support the above mentioned  global e-petition demanding action. The objective is to deliver at least half a million signatures to the IMO and to governments by mid September this year.

 

 

SEAWAY TRADE RECOVERING

St. Lawrence Seaway traffic increased by 18% over 2009 levels in the first four months of 2010 including a growth in the movement of iron ore of 127% to replenish steel manufacturers stockpiles. Tonnage moved was 3.65m tons to the end of April. “These numbers reflect the integral role that the marine shipping industry plays in North America's emerging economic recovery especially in the manufacturing sector," said the CEO of Canada’s St. Lawrence Seaway Management Corporation.

 

On a less positive note shippers and freight forwarders are critical of the decision by some carriers to implement an emergency low water surcharge on containers out of Montreal. The surcharges are aimed at recovering revenue losses due to low water levels in the St Lawrence on account of a mild regional winter and dry spring.

 

 

RIO TINTO ORDERS EIGHT LARGE BULKERS

Clearly adopting a similar strategy to that of the Vale Group which we reported last week, the Australian mining conglomerate Rio Tinto has this week confirmed an order got eight, 205,000 dwt bulk carriers worth a total of $504m at Hanjin Heavy Industries’ shipyard at Subic Bay in the Philippines. Deliveries are scheduled to begin in late 2012. Rio Tinto previously ordered three very large ore carriers of 250,000 dwt worth $105m each in 2008 to be devoted to shipping iron ore from Australia to China. These are under construction at Japan’s Namura Shipyard and deliveries will also begin in 2012.

 

Subic Bay, some 110 km north west of Manila was a major operating base for the U.S. Pacific Fleet until 1992 when negotiations with the Government of the Philippines to renew the base lease proved unsuccessful. The base has since developed into a major free trade and industrial manufacturing zone.

 

 

Market Update

After a strong previous week for Capesizes, things went into reverse again this week, notably in the Pacific. The Baltic Dry Index closed on Thursday on 3803 points compared to 3914 points last week and 3468 points the week before.

 

                                          Cape Size        Panamax       Supramax          

Index                                     4192                 4622               3106

Last week                              4861                4273                3053

Spot time charter              $42,600/day    $37,100/day      $32,500/day

Last week                         $50,300/day    $34,400/day      $31,900/day

 

Panamaxes had a good week in the Atlantic and rates are now at their highest in that sector since late 2008.

 

 

Upcoming Meetings and Events

 

 

PORT METRO VANCOUVER ANNUAL GENERAL MEETING

June 15th – PMV has announced that its Annual General Meeting will be held on Tuesday, June 15th at 3pm in Room 220-222 at the Vancouver Convention Centre West located at 1055 Canada Place, Vancouver, BC.  Copies of the Audited Financial Statements are available at the Port Authority’s office located at 100-999 Canada Place, Vancouver, BC. 

 

 

PORT OF NANAIMO ANNUAL GENERAL MEETING

June 23rd - The Port of Nanaimo 2010 AGM will take place on Wednesday June 23 at 2pm in the Coast Bastion Inn located at 11 Bastion St, Nanaimo, B.C.

 

 

VTC/CIFFA/PRCA – DINNER WITH MINISTER STOCKWELL DAY

June 10th - 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 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

June 15             PMV Annual General Meeting @ 15:00

 

 

Ship of the Week

97_nyathi2           

ASPHALT SEMINOLE

 

Built 2005 at the Kraljevica Shipyard, Croatia

LOA 108m

Beam 19m

DWT 9240 MT

Speed 13.5 knots

Sister ships Asphalt Sailor, Transporter & Carrier

 

The vessel was listed in the 2005 edition of “Significant Ships”.

 

The carriage of liquid asphalt in purpose built dedicated ships requires strong commitment. The ships themselves are few in number but highly sophisticated in order to allow for carriage of cargo at temperatures between 200 and 250 degrees C.  

USES AND APPLICATIONS OF ASPHALT

 

Agriculture

  • Cattle sprays
  • Disinfectants
  • Fence post coating
  • Protection for tanks and vats
  • Water and moisture barriers
  • Wind and water corrosion control

Roofing

  • Building papers
  • Built-up roof adhesives
  • Roofing felt
  • Cement waterproofing compounds
  • Caulking compounds
  • Liquid roof coatings
  • Shingles

Paving

  • Airport runways, taxiways, aprons
  • Brick fillers
  • Crack fillers
  • Curbs, gutters, drainage ditches
  • Flooring for buildings, warehouses, garages
  • Highways, roads, streets and shoulders
  • Parking lots, driveways

Impregnated, Treated Materials

  • Burlap impregnation
  • Canvas treating
  • Carpeting medium
  • Deck cloth impregnation
  • Fabrics and felts
  • Textile waterproofing

Paints and Varnishes

  • Acid-proof enamels, mastics, varnishes
  • Acid resistant coatings
  • Air-drying paints and varnishes
  • Anti-corrosive and anti-fouling paints
  • Anti-oxidants and solvents
  • Base for solvent compositions
  • Marine deck sealing compounds

Railroads

  • Ballast treatment
  • Curve lubricant
  • Dust laying
  • Paved ballast and sub-ballast
  • Paved crossings, freight yards and station platforms
  • Railroad tie impregnation and stabilization

 

107_asphalt_seminole2 

See the YouTube to watch this vessel transiting the Cape Cod Canal