COS Weekly News - 11 June 2010

Monday, 14 June 2010 09:28

COS News – Week ending 11 June 2010

Issue No. 110

 

 

CN AND TSI REACH SUPPLY CHAIN COLLABORATION AGREEMENT TO IMPROVE SERVICE

CN and TSI Terminal Systems Inc. (TSI) announced today a supply chain collaboration agreement aiming to enhance service levels to their mutual customers and draw greater volumes of container traffic over Port Metro Vancouver.  A MOU has been signed that will drive strong mutual focus on system efficiencies, improved communication, and close monitoring of their gateway performance.

 

The CN-TSI pact is a companion to CN's recent supply chain collaboration agreement with Port Metro Vancouver (PMV) designed to promote balanced accountability among all Port stakeholders.

TSI is the largest container terminal operator in Canada, handling approximately 70 per cent of the containerized cargo moving through its two terminals which it operates under long-term lease at PMV.

 

 

FRASER SURREY DOCKS BERTH 10 / WEIGHT RESTRICTION

In view of the recent accident at Lynnterm, Fraser Surrey Docks has sent out a reminder that the maximum capacity of the “finger pier” is 20 metric tonnes or 44,093 pounds. With this weight restriction the use of lift trucks or forklifts on this pier are limited.  Under no circumstances are lift trucks or forklifts larger than a 15,000 pound machine to be used. The use of any machine other than that of a 15,000 pound machine could result in a catastrophic failure of the pier which could result in severe injury or possible death.

 

Ship’s agents are to ensure that any deliveries made to their vessels at this berth are made aware of the weight restriction. Should there be any deliveries to vessels berthed at berth 10 where the GVW exceeds 20 metric tonnes or 44,093 pounds.

 

Alternate delivery methods should be made. In the event that these deliveries exceed 20 metric tonnes or 44,093 pounds and are liquid, these vehicles can park on the berth 9 berth face, however they should be warned to bring additional hose lengths in order to reach the vessel’s connection.

 

Should you have any questions regarding this standard operating procedure, please contact the duty superintendent at 604-582-2224.

 

 

PACIFIC PILOTAGE AUTHORITY – ANNUAL REPORT

The Pacific Pilotage Authority’s 2009 Annual Report is now available on their website at: www.ppa.gc.ca.  Hard copies can be obtained directly from the offices of the PPA.

 

 

SAPPHIRE PRINCESS HIT WITH NOROVIRUS

A Princess Cruises ship was back on course Monday after the company says nearly a hundred passengers came down with norovirus. The cruise line says the incident sparked what it called a "super-sanitization" of the Sapphire Princess, which had visited three Alaska ports.

 

 

BC FERRIES RELEASE YEAR-END RESULTS

British Columbia Ferry Services Inc. (BC Ferries) released its financial results for the year ended March 31, 2010.  Consolidated net earnings were $3.4 million for the year ended March 31, 2010, compared to net earnings of $9.0 million the previous year.  In fiscal 2010, BC Ferries experienced an increase of 1.5 per cent in both passenger and vehicle traffic as economic conditions began to improve and fuel prices declined compared to the previous year.  

 

BC Ferries' full financial statements, including notes and Management's Discussion and Analysis are filed on SEDAR and will be available at www.sedar.com.

 

 

LIGHTKEEPERS ISSUE STATEMENT ON DFO’S PLAN ON LIGHTHOUSES

The Union of Canadian Transportation Employees (UCTE) speaks out against the Department of Fisheries plans to decommission or transfer 976 lighthouses to local governments and/or community organizations. CNW News Release.

 

PASACRETA APPOINTED TO VNACOUVER CONTAINER DRAYAGE ASSOCIATION

Frank Pasacreta, formerly the president and CEO of the B.C. Maritime Employers Association, has been selected as president of the new Port Vancouver Container Drayage Association (PVCDA) established to bring together the container trucking sector in a unified voice to address common concerns and issues that have fragmented the sector.  The Association’s key mandate is to address issues such as the Port Metro Vancouver container reservation system, port truck licensing system and truck fleet sizes, and compliance and application with regulatory tariffs imposed by government on the container drayage sector

 

The container trucking sector controls a truck fleet of more than 2,500 trucks and 10,000 chassis, handling approximately 35% of Port Metro Vancouver's container trade, which, in 2009 was about 2.5 million TEU'S, said the PVCDA.

 

 

PRINCE RUPERT WELCOMES COSCO MALAYSIA

After a ten-day maiden journey across the Pacific Ocean, crew aboard the 8,500 TEU COSCO Malaysia were welcomed officially to the Port of Prince Rupert.  The COSCO Malaysia will travel from Prince Rupert to California and before departing for Asia return to Prince Rupert for more cargo.  It is the second ship in COSCO’s CEN service to make a return port call.   News Clip.

 

 

Government News

 

GOVERNMENT OF CANADA INVESTS IN THE PORT OF MONTREAL AND IN JOB CREATION

The Government of Canada will contribute to the economic vitality of Canada and Quebec by investing in a major project to optimize infrastructure at the Port of Montreal. This investment of over $10 million will be used to maximize capacity of the Cast Terminal to better meet the needs of marine carriers that use the Port of Montreal.  The Government of Canada will provide up to $5.1 million for this project under the Infrastructure Stimulus Fund. The Montreal Port Authority will cover the remaining costs of the project.

 

 

GOVERNMENT OF CANADA ASSISTS THE UNITED STATES IN OIL SPILL CLEAN UP

The United States has accepted an offer from the Government of Canada to help to contain the oil spill in the Gulf of Mexico. The Government of Canada is providing offshore booms to assist with oil spill clean up efforts underway in the Gulf of Mexico.   The Canadian Coast Guard (CCG) has examined its environmental response capacity and determined that it can assist the United States by providing at least 3,000 metres of ocean boom at this time, which is in addition to technical and scientific support already being provided by Canada. News Release.

 

 

NATIONAL PUBLIC SERVICE WEEK KICKS OFF NEXT WEEK

National Public Service Week, the annual celebration of the important work of Canada's public servants, is taking place from June 13 to 19, 2010. Departments and agencies from across the Public Service and the country are organizing events to celebrate the achievements and contributions of public servants.

 

 

Other News

 

WASHINGTON STATE BALLAST WATER TREATMENT EXEMPTION APPLICATION

We are compelled to emphasise the major problem that will confront industry when the State of New York introduces additional requirements regarding ballast and graywater treatment standards that will apply from January 1, 2012. Despite two court challenges, rulings have been in favour of the State having the authority to impose its own regulations. Unfortunately the State has deemed fit to require a treatment standard 100 times in excess of IMO standards and for which there is currently no treatment system on the market capable of achieving such a standard. In something of a concession and as explained in the attached circular, there is provision for owners to apply for an exemption to these rules but such application MUST BE FILED PRIOR TO JUNE 30, 2011. We would strongly encourage all members to take note and for agents to advise their principals accordingly. Again, this is really important for any owner or vessel having the future likelihood of trading within the jurisdiction of the State of New York.

 

Lloyd’s Register maintains a document that outlines National Ballast Water Management Requirements and has recently released the third edition of its Guide to Ballast Water Treatment Technology which takes into account the latest developments in approvals since the last edition published in September 2008.  

 

      

WASHINGTON STATE – EMERGENCY RESPONSE TOWING VESSEL

Direct industry funding of the Neah Bay response tug takes effect on July 1, 2010. For vessels entering the Juan De Fuca Strait and proceeding to a U.S. port, the attached notice takes effect on that date.  There will be an annual first time caller charge of $290 and a minimum overall per call charge of $150.  In March 2009, Washington State Governor Chris Gregoire signed legislation that shifted funding responsibility for the Neah Bay tug from the State to the maritime industry at a cost of $3.6m per year.

 

 

 

MORE CONCERN FOR ECA COSTS - LNG THE SOLUTION?

A just released in depth report by the  DVB Group (German Bank) expresses the fear that when the Emission Control Area (ECA) begins to bite there will be appreciable negative impact on the short sea ro-ro sector in Europe as financial pressure forces freight back onto the region’s roads. The report expresses the fear that of the approximately 2000 ro-ro vessels now in service, half of which operate in Europe, many will be priced out of the market unless they move to alternative fuels such as LNG.

 

An entirely separate report by DNV concludes that a switch to LNG could save up to 45% of total vessel operational costs over a 20-year period when compared to burning heavy fuel oil. Several European class societies are now promoting the concept of a fuel switch, particularly in the short sea sector since (according to DNV) LNG is now a commercially viable fuel for shipping and offers the prospect of 25% reductions in CO2, a complete elimination of sulphur emissions and close to a 90% reduction in NOx emissions. Against this, DNV estimates that a short sea vessel operating in the Baltic Sea would incur an additional $30m in operating costs over a 20-year period to comply with ECA standards using distillates.

 

 

POSIDONIA 2010 – ATHENS

Despite the country’s economic woes, this week’s five-day exhibition marks the 22nd biennial Posidonia held in Athens proved as successful as ever in promoting the strength of the Greek ship owning sector. This year’s event was attended by some 10,000 marine industry executives and was said to be the biggest ever in terms of floor space, number of exhibitors and visitors. More than 1,850 exhibitors from 87 countries participated with almost 10% of the total floor space taken up by Asian marine interests. China alone had two national pavilions in addition to a strong turnout by the country’s national shipyards.

 

In a rather political speech to delegates, the Lord Mayor of the City of London pleaded for European maritime states to stand up the IMO and not allow it to be undermined by European Commission. The Lord Mayor also warned the Greek government not to repeat the mistakes of the UK government by imposing more taxes on ship owners in an attempt to rescue the country’s economy.

 

 

GULF OF MEXICO SPILL CONTAINMENT

Emergency teams are employing a variety of techniques to deal with surface resulting from the Gulf of Mexico rig blow out. 

 

 

The National Incident Commander (NIC) issued a news release stating that government scientists, led by the US Geological Survey, have analyzed the Gulf of Mexico oil spill and their best estimate of the flow rate between 25,000 and 30,000 barrels per day. The actual amount could be as low as 20,000 barrels per day or as high as 40,000 barrels per day.

 

More than 1,700 vessels, including skimmers, tugs, barges and recovery vessels, are mobilised. A 130,000 ton North Sea shuttle tanker Loch Rannoch is being redeployed to the Gulf of Mexico by BP as part of the response to the spill.

 

      Loch Rannoch astern of a North Sea

                         Drill Platform

 

The US legislature has been busy in their reaction to this catastrophe.  The House Committee on Transportation and Infrastructure conducted a hearing on Liability and Financial Responsibility for Oil Spills under the Oil Pollution Act of 1990 and Related Statutes.  Senator Menendez (D-NJ) introduced a bill (S. 3472) to amend the Oil Pollution Act of 1990 to require oil polluters to pay the full costs of oil spills, and for other purposes. Official text of the bill is not yet available. 

 

Senator Leahy (D-VT) introduced a bill (S. 3466) to require restitution for victims of criminal violations of the Federal Water Pollution Control Act, and for other purposes. Official text of the bill is also not yet available.

 

 

SCRAP MARKET ACCELERATES FOR TANKERS

Tankers scrapped in the first five months of 2010 has already exceeded the total for 2009, and is heading for an annualized total of 16m DWT which is roughly double that of 2009. Statistics indicate that 11 VLCCs, 11 Aframaxes and 10 Panamaxes have so far been scrapped in 2010. The increase in scrapping is not a major surprise given that trading of single hull tankers will be geographically very restrictive after this year and impossible after 2015.

 

 

PILOTAGE RATE SETTING REFORM IN FLORIDA

After lengthy and significant pressure from industry, Florida has announced reform to the system by which state pilotage rates are reviewed. A new committee has been formed comprising two representatives from shipping companies, two pilots, a certified accountant and two Florida citizens. The State Governor has declared that the committee must act “in the public interest”.

 

 

PORT OF LONG BEACH DREDGING DEEPER

The Port of Long Beach this week announced a 17 month and $40 million project to deepen its main access channel to 76 feet (23 metres). VLCCs which currently lighten before proceeding to berth, will then be able to call at the port’s BP terminal fully laden. About 1.5 million cubic feet of dredge material will be used to create a 12 acre landfill site at the Pier G container terminal operated by International Transportation Service Inc.

Meanwhile the US has announced a study into the long-term impact of the Panama Canal expansion on national trade flows. The study will also address the impact of the Suez Canal, the opening of potential Arctic routes and other changes in trade that could impact US transport policy.

 

 

TALL SHIPS CHALLENGE 2010

The American Sail Training Association has partnered with Great Lakes Limited to bring a fleet of international tall ships to the Great Lakes this summer as part of the Great Lakes United Tall Ships Challenge 2010 race series. Schedule as per the above map. Meanwhile in Europe the fleet will gather in Antwerp from 10-13 July before making their way out to an area north-west of Zeebrugge for a race start on 14 July. The fleet will then race to Aalborg in Denmark before making a short crossing to Kristiansand in Norway. The final leg will take the fleet west across the North Sea to Hartlepool in Northeast England.

 

 

SOCCER WORLD CUP KICKS OFF TODAY

The 19th FIFA World Cup, the world’s show piece international soccer tournament, kicked off today in Johannesburg with a spectacular opening ceremony followed by the opening game between the host nation and Mexico. South Africa with an estimated population of 49.5 million is the first African nation to host the World Cup.

 

 

Betting odds on the winning team are currently:

§     Spain 4/1

§     Brasil 9/2

§     Argentina 6/1

§     England 7/1

§     Netherlands 10/1

 

The final will be on July 11.

 

World Cup Soccer Stadium Locations

 

Major shipping lanes pass along the South African coastline in the south Atlantic and Indian oceans. Approximately 96% of the country's exports are conveyed by sea, and the seven commercial ports are the conduits for trade between South Africa and its southern African partners as well as hubs for traffic to and from Europe, Asia, the Americas and the east and west coasts of Africa.

 

The state owned Transnet National Ports Authority manages the country's ports. These are: Richards Bay and Durban in KwaZulu-Natal, East London and Port Elizabeth in the Eastern Cape, and Mossel Bay, Cape Town and Saldanha in the Western Cape. Durban is Africa's busiest port and the largest container facility in southern Africa, while Richard's Bay is the world's largest bulk coal terminal. Taken together, South Africa's ports handle almost 200 million tons of cargo per annum, and major upgrades are under way to increase handling capacity further including the new port of Ngqura which is being developed in the Eastern Cape.

 

 

 

Market Update

A week to forget for the Baltic Dry Index which closed down on Thursday on 3423 points compared to 3933 points last week and 4156 points the week before.

 

       Cape Size             Panamax           Supramax

Index                                       4446                    3552                  2458

Last week                                5275                    3931                  2788

Spot time charte                   $46,700/day         $28,500/day       $25,700/day

Last week                            $56,900/day         $31,500/day       $29,300/day

 

Reduced demand for iron ore in China which some feel may even fall below weak 2009 levels is depressing demand for Capesizes. May imports at around 53m tons were down 3% on those a year earlier and the average monthly volumes for 2010 to date are 52.4m compared to 55.2m tons during the period of market recovery in the second half of 2009.  All this when a new build Capesize is adding to the fleet every second day and thereby generating a negative trickledown impact on the entire dry bulk sector. On the bright side, the weather in Greece was good for Posidonia and in such a soccer crazy nation there were other distractions to lighten the mood.

 

Tankers: Rates on the primary VLCC trading legs improved to $45-50,000/day Arabian Gulf to Europe ($30-35 last week) and $70-75,000/day Arabian Gulf to Far East ($55-60,000 last week).

 

  

 

Upcoming Meetings and Events

 

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.

 

DNV RISK MANAGEMENT & INCIDENT INVESTIGATION COURSE

June 22-23^rd - Det Norske Veritas’ Vancouver office is offering a course over two days on Risk Management & Accident Investigation / Root Cause.  Further information is available from DNV (604 689 7425) or from Stephen at COS.

 

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 - 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 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

 

Safmarine Meru

Panamax container ship

 

Built in 2006 in South Korea

LOA 292.1m

Beam 32.2m

Deadweight 60,700

Capacity 4150 TEU

Speed 25 knots

 

Safmarine Neba is named after the second highest mountain in Tanzania

 

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