COS Weekly News - 4 June 2010

Sunday, 06 June 2010 09:22

COS News – Week ending 04 June 2010

Issue No. 109

 

 

PMV AND CN COLLABORATE TO IMPROVE GATEWAY COMPETITIVENESS

Port Metro Vancouver and CN have entered into a supply chain collaboration agreement to drive further efficiencies at the port and recognize the importance of balanced accountability.  The agreement sets the framework for the Port, CN and port stakeholders to develop mechanisms to define, measure, monitor and evaluate the performance of each participant at the port against established benchmarks. It also establishes processes to proactively communicate on service-related matters and resolve disputes between CN, the Port and port supply chain participants on a commercial basis.

ROBERTS BANK OPEN HOUSE

TSI Terminal Systems Inc., Westshore Terminals and Port Metro Vancouver are inviting friends and neighbours to tour the container and coal terminals at Roberts Bank to see what goes on at the Port's largest facilities.  The Open House is scheduled for Saturday, June 26 from 10:00 am to 3:30 pm and will include the following:

§    Free guided bus tours of each terminal

§    Food and entertainment

§    Delta Firefighters Junior Fire Safety Challenge

§    Large, heavy equipment on display

§    Other displays and demonstrations 

 

 

CANADIAN PACIFIC’S MAINTENANCE OF WAY WORKERS RATIFY THREE-YEAR AGREEMENT

The Teamsters Canada Maintenance of Way Employees Division has ratified the Memorandum of Settlement reached in April 2010 by Canadian Pacific and the TCRC MWED.  The renewed collective agreement, which covers Canadian Pacific's 2,100 maintenance of way employees in Canada, provides a six per cent wage increase over three years, extending to the end of 2012. This is consistent with the pattern of all other Canadian labour agreements for this period.  The contract contains a suite of work rule changes that will give the Company increased flexibility to more cost effectively deploy staff against work load.

 

 

NEW PRINCIPAL MEMBERS

COS is pleased to welcome the following three new Principal Members:

 

Inchcape Shipping Services - Elie Kozhaya

Suite 1201 – 1199 West Hastings Street, Vancouver, B.C., V6E 3T5

 

Northcoast Shipping Agency - Carl Nielsen

120 Gull Crescent, Prince Rupert, B.C., V8J 4G5

 

Hoqwesa Holdings Ltd. - Sharla Hole Pelosse

Suite 314 – 7450 Rupert Street, Port Hardy, B.C., V0N 2P0

 

 

WESTERN COAL REOPENS WILLOW CREEK MINE IN CHETWYND BC

The Northwestern British Columbia mine, with an estimated 29.6m tonnes of coal reserves will initially produce 900,000 tonnes of high quality metallurgical coal per year, but the company estimates this will rise to 1.7m tonnes by 2012. Robust coal prices as well as benefits to Northeast B.C. were cited as the reasons to reopen the mine, which was closed in 2007 by the previous owner, Pine Valley Resources. It is estimated by Western Coal Corp. that this mine will produce for 13 years.

 

 

Government News

 

CANADIAN COAST GUARD TO ACQUIRE NEW VESSELS

As a part of its 30-year Fleet Renewal Program, the Canadian Coast Guard will acquire a new polar icebreaker, at a cost of $720 million. It will enter full service in 2017 and has been named the CGS John G. Diefenbaker. Three new offshore fisheries science vessels, to enter full service by 2013, will also be acquired as well as one new offshore oceanographic science vessel, to enter full service by 2014. These Coast Guard procurements are in line with the Federal Government’s National Shipbuilding Procurements Strategy. This initiative is aimed at bolstering Canadian shipbuilders and improving the government’s aging combat and non-combat fleet. The government will establish relationships with two Canadian shipyards, through a competitive bidding process, one for combat vessels and one for non-combat vessels.

 

 

Other News

 

USCG UNDER FIRE FOR SHIP BAN

A Norwegian owner is legally challenging the US Coast Guard over “totally unfounded” allegations which resulted in a Suezmax tanker being banned from the U.S. for three years. The circumstances stem from “whistleblower accusations” leveled by a crew member and a subsequent USCG inspection of the vessel in the port of Corpus Christi which allegedly found evidence of illegal oily water discharge. However, by the time the vessel was allowed to sail last month, USCG had dropped any charges against the vessel, its current crew and the company. The whistleblower crew member was himself detained in the U.S. on criminal charges but the owners predictably want the unwarranted detention excluded from the record and the three year trading ban over turned.

 

 

MASSACHUSETTS TO CONTINUE LEGAL JURISDICTION FIGHT

Massachusetts has decided to appeal the decision of a federal court two months ago, which established the primacy of federal over state law and declared a 2004 Massachusetts oil spill law unconstitutional. The decision to challenge the court verdict comes even as Massachusetts faces a separate lawsuit by five industry associations - the American Waterways Association, the Chamber of Shipping of America, Intertanko, International Chamber of Shipping, and the International Group of P&I Clubs. The five industry bodies, who along with the US government were also the successful plaintiffs in the original case, have now challenged a variation of the 2004 state law that was passed in 2009, while the case against the 2004 law was in progress. The 2004 law increased oil spill fines and set new requirements on vessel design, manning, and tugboat escort requirements.

 

 

OFFSHORE DRILL BAN COST

It has been estimated that banning of offshore drilling in the US Gulf of Mexico will cost the oil industry $11bn a year in loss of hire for drill rig owners, offshore vessel owners and equipment suppliers and this does not include the additional cost of replacement imported oil. A permanent ban on deepwater drilling will affect the operation of at least 10 drillships and 25 semi-submersible rigs in the region, while a ban on shallow-water gas drilling will have implications for 30 jack-up rigs. Exxon continues to assist BP by providing boats and personnel in an effort to contain the oil leaking from a ruptured well nearly a mile below the surface.

 

 

EU REJECTS DEMANDS TO REVISE ECA

The European Commission has declined to intervene on behalf of a number of European shippers, ship owners and port authorities who fear that the cost of 2015 fuel sulphur content limits of 0.1% will drive short sea freight to road transport. Twenty-one EU member states supported the introduction of the original Emissions Control Area, however, Finland’s industry predicts that an increase of 70% in regional  freight rates will result and has therefore been pressing the Commission to develop solutions within the current regulatory framework. COS recently provided a short perspective of the ECA to the Association of Canadian Port Authorities and which is attached to this week’s newsletter.

 

 

CANADA STEAMSHIP LINES SIGNS LOI WITH ECOSPEC

CSL Group, Canada Steamship Lines (CSL) has signed a letter of intent with Singapore marine technology company Ecospec to develop and install CSNOx technology within its fleet. Contents of the letter include an agreement between CSL and Ecospec to install its CSNOx system on one of CSL's Great Lakes vessels later this year for validation, performance and efficiency certification purposes. Ecospec states that this is the first deployment of its CSNOx technology in a freshwater environment. "CSL and Ecospec are optimistic that this system could be the environmental emission reduction breakthrough that the marine industry has been searching for, and will become the new standard for emission reductions," according to a joint statement.

 

 

Port Metro Vancouver and COS jointly hosted a well-attended presentation of the Ecospec Technology in March this year. See the link: http://www.ecospec.com/

 

 

NORTH KOREAN SHIP EJECTS PIRATES IN VIOLENT CONFRONTATION

The crew of the small North Korean flagged and Romanian managed general cargo ship Rim which has been detained since February has retaken control of the vessel from pirates. Five pirates are reported killed and one crew member seriously injured. Pirates on another hijacked vessel attempted to intervene but were warned off by the Spanish warship Victoria which then provided medical and humanitarian assistance to the Rim.

 

In another confrontation The Pakistani Master of the hijacked general cargo ship QSM Dubai was killed after Somali soldiers stormed the vessel to reclaim it from pirates this week. Meanwhile Danish marines from the warship Absalon regained control of the bulk carrier Ariella and released the crew who had locked themselves in a secure room in the accommodation block.

 

 

SINGAPORE MPA EXTENDS PORT DUES CONCESSIONS TO 2012

The Singapore Maritime and Port Authority has announced the extension of a 20% concession on port dues for container ships, first introduced in 1996, for a further two years to June 30 2012. The MPA will also top up the Singapore maritime cluster fund by a further S$20m ($14.2m) to help finance the initiative.  Container ships accounted for 14% or the 18,000 vessel calls at Singapore in 2010.   Meanwhile, ship owners have been vociferous in condemnation of the Panama Canal tariff increases announced last month ranging from 12% - 16% with effect from January 1 2011. For container carriers the base rate per container rises from $72 to $74 plus a charge of $8 per loaded container.

 

Market Update

With Chinese charterers relatively quiet, the Baltic Dry Index closed slightly weaker on Thursday on 3933 points compared to 4156 points last week and 3803 points the week before.

 

             Cape Size          Panamax         Supramax

Index                                             5275                 3931                2788

Last week                                      5304                 4360                3015

Spot time charte                        $56,900/day      $31,500/day       $29,300/day

Last week                                 $58,400/day      $35,000/day       $31,500/day

 

Tankers: It was a “who will blink first week” between owners and charterers. Some charterers stepped back from the market despite information that several vessels are still required for 2^nd half of June loading in the Arabian Gulf. Even so, VLCC rates from the Arabian Gulf to Europe are currently in the $30-35,000/day range, Arabian Gulf to Far East $55-60,000/day. The product tanker market remains generally weak.

 

 

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 .

 

 

PORT METRO VANCOUVER ANNUAL GENERAL MEETING

June 15^th – PMV has announced that its Annual General Meeting will be held on Tuesday, June 15^th 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. 

 

 

Vwtc– guest speak duncan dee of air canada

June 17^th – The Vancouver Women’s Transportation Club will be hosting a dinner with guest speaker, Duncan Dee, Executive Vice President and Chief Operating Officer of Air Canada on June 17^th at the Executive Hotel Richmond. Tickets are $40.00/person and are available for purchase through Jillian Hegberg, who can be contacted via email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . The cutoff date for registration is June 10^th.

 

 

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.

 

 

“BUSINESS OF SHIPPING” - ENBRIDGE NORTHERN GATEWAY PROJECT PRESENTATION

July 8^th - As mentioned in last week’s newsletter, Enbridge Northern Gateway has now formally filed a project application to the Joint Review Panel comprising the National Energy Board and Environment Canada. COS will be hosting a project presentation by Enbridge representatives, specifically for the marine community, on July 8.  Formal invitations and details of location will follow.

 

 

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 10             Dinner with Stockwell Day – VTC/CIFFA/PRCA

June 14             CIABC Annual General Meeting @ 10:00

June 15             ICS Board of Directors Meeting @ 12:00

June 15             PMV Annual General Meeting @ 15:00

June 16             VMAA Seminar on Bill C-16 @ 11:30

June 17             Vancouver Women’s Transportation Club – Duncan Dee

June 18             Vancouver Grain Exchange Golf Tournament

June 23             Port of Nanaimo Annual General Meeting

June 24             COS Navigation & Pilotage Committee Meeting @ 10:30

June 24             COS Owners Committee Meeting @ 12:00

June 28             BC Marine Air Vessel Quality Meeting @ 09:00

June 30             PACMAR & NANS Meeting @ 10:30

July 1                Canada Day – Statutory Holiday

July 8                CIFFA Annual Golf Tournament

July 8                Business of Shipping – Enbridge Northern Gateway Project

 

 

 

Ship of the Week

                  
                  M.V. Nordneptun
                  Panamax Tanker

Built by Hyundai Heavy Industries Korea, 2004
LOA 228M
Beam 32m
DWT 74,999 MT
Technically operated by E. Oldendorff

 

The French warship F.S.Nivôse responded last month to a distress call from Nordneptun when under attack from Somali pirates. The vessel managed to evade capture long enough for the Nivôse to close the distance and launch her helicopter forcing the pirates to retreat.

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