COS Weekly News - 25 June 2010

Tuesday, 06 July 2010 08:22

COS News – Week ending 25 June 2010

Issue No. 112

 

 

 

CP SIGNS PRODUCTIVITY AND PERFORMANCE AGREEMENT WITH DP WORLD AND TSI

Following recent announcements re CN, TSI and Port Metro Vancouver’s collaboration on supply chain improvement, Canadian Pacific has now entered into agreements with DP World and TSI to improve productivity performance and enhance the future flow of containers through the Vancouver gateway.  These agreements will facilitate the identification of available tools and processes for productivity improvements for railways, terminals, and shipping lines and will include improved information systems that enhance the visibility and predictability of customer supply and demand.

 

 

RAIL FREIGHT SERVICE REVIEW

The COS Rail Freight Service Review Committee has been invited to meet on July 7 with the Transport Canada appointed Review Panel consisting of Messrs Walter Paszkowski, David Edison and William LeGrow. A link to the substantial number of submissions made to the panel can be found on Transport Canada’s website.   

 

 

PMV CONTAINER TRUCKERS COMMENCE BARGAINING

The Vancouver Container Truckers Association / VCTA-CAW Local 2006 served notice to bargain today to over a dozen separate companies engaged in moving containers to and from the various lower mainland ports. The VCTA-CAW Local 2006 collective agreements expire in 6 days on June 30, 2010. No dates for collective bargaining have yet been set.  News Release.

 

 

TANKER TRAFFIC DISCUSSION UPDATES

Although entirely unrelated to the event, there has been an increase in media attention to tanker traffic on our West Coast following the incident in the Gulf of Mexico.  The opposition leader, Michael Ignatieff, has stated that the Liberal Party will formalize a moratorium on crude oil tanker traffic on British Columbia’s north coast.  What that actually means is unclear as the existing moratorium is often confused with the tanker exclusion zone that keeps US north-south tanker traffic off our coasts. Rather than engaging in unproductive public debate in the media, COS has to date chosen to focus on educating interest groups, regulators, politicians and the general public on the governance, technological advances and exemplary overall safety record of shipping worldwide.

 

Last week Stephen Brown, COS President, made a presentation on the International Governance of Shipping to the Islands Trust on Saturna Island. The primary focus of the meeting was the safety of tanker traffic on the BC coast.  On July 5^th, Stephen will join others including the Pacific Pilotage Authority and Burrard Clean Operations, in an appearance before the Mayor and City Council of Vancouver at a special meeting on oil tankers in transit through Burrard Inlet.  A copy of the most recent International Governance of Shipping presentation is available on our website.

 

 

BCMEA/ILWU NEGOTIATION UPDATE

By agreement of the parties, the mediation period conducted by The Honourable Ted Hughes, Q.C. and Mr. John Rooney, Senior Mediator, Federal Mediation and Conciliation Services, has been extended to July 30.  The extension will enable the Mediators to provide the Federal Minister of Labour, The Honourable Lisa Raitt, P.C., M.P., with a thorough review of the negotiations to date and a report with respect to recommendations for a potential settlement of the Collective Agreement

 

 

GROUNDBREAKING FOR TSAWWASSEN FIRST NATION INDUSTRIAL PARK

A new industrial park was launched by the Tsawwassen First Nation (TFN) near Deltaport this week, marking TFN’s first major economic initiative after it was established as B.C.’s first urban Treaty First Nation. The park, called the Tsawwassen Gateway Logistics Centre, marks the beginning of the implementation of TFN’s development plans for its industrial lands.  News Release.

 

 

NEW CANOLA PLAN IN YORKTON TRIPLES CANOLA CAPACITY

Richardson International Limited officially opened its new canola processing facility near Yorkton, Saskatchewan.  The new $170 million state-of-the-art facility will have the capacity to process up to 2,400 metric tonnes of canola per day (840,000 metric tonnes annually), producing 1,000 metric tonnes of fully-refined, food grade canola oil on a daily basis. Combined with Richardson’s canola processing and packaging plant in Lethbridge, Alberta, the Yorkton facility will effectively triple the company’s total canola oil production capacity.

 

While canola oil produced at the plant will be distributed globally, the local community will be the beneficiary of significant positive economic impact resulting from the plant’s construction.  The plant will lead to the creation of 65 to 70 new technical and professional jobs, along with increased employment opportunities relating to maintenance, repairs, trucking and various other activities relating to the plant’s operation.

 

 

WMG WINS ENVIRONMENTAL STEWARDSHIP AWARD
On June 21, the City of North Vancouver (CNV) recognized WMG for its habitat restoration project work on the lower MacKay Creek area by awarding the company their 2010 Environmental Stewardship Award, in the business category.  The purpose of the award is to promote community based environmental stewardship and to build awareness and recognize the leadership of residents and businesses in North Vancouver.

 

 

PMV SOUTH SHORE ACCESS CHANGES

Due to Port Metro Vancouver’s scheduled 2010 project for pavement rehabilitation of the McGill Street Overpass, please note of the following traffic pattern change effective June 27, 2010 at 7:30pm:

 

1.       NO OUTBOUND ACCESS VIA COMMISSIONER/MCGILL GATES FOR THE DURATION OF THE PROJECT.

2.       All truck traffic must exit through Clark Drive.

3.       All passenger traffic must exit via Clark Drive or Heatley Avenue.

4.       Clark Drive and Heatley Avenue will remain open to all inbound vehicles.

5.       Commissioner/McGill gates continue to be closed to passenger and service vehicles between 7:30am and 10:00am, Monday to Friday. Passenger and service vehicles will be refused entry and redirected to Clark Drive or Heatley Avenue.

 

In addition, Commissioner/McGill inbound access will also be CLOSED for this upgrade project at the following times:

1.       Sunday, June 27, 2010 from 8:00pm until Monday, June 28, 2010 at 6:00am;

2.       Wednesday June 30, 2010 from 8:00pm until Thursday, July 1, 2010 at 6:00am; and

3.       Sunday, July 4, 2010 from 7:00am to 5:00pm.

 

Please note that this schedule is dependent on the weather. PMV will advise of any anticipated changes. There signage and traffic control personnel along the south shore roadway. Please be extra vigilant in driving along the South Shore during this time ensuring the safety of all drivers and personnel on the South Shore.

Any further inquiries can be directed to 604.665.9333.

 

 

 

 

 

 

 

Government News

 

MARITIME OCCUPATIONAL HEALTH AND SAFETY REGULATIONS

The final regulations have been published in the Canada Gazette Part II – June 23, 2010.

 

MANDATORY REPORTING FOR VESSELS IN CANADA’S ARCTIC WATERS

The Honourable Gail Shea, Minister of Fisheries and Oceans, and Minister responsible for the Canadian Coast Guard, and Senator Claude Carignan announced another important measure to protect and defend Canada's northern sovereignty. Beginning July 1, the Government of Canada is requiring that foreign and domestic vessels of a certain size report to the Canadian Coast Guard if travelling through Canada's Arctic waters. This new mandatory requirement will ensure vessels report information such as identity, position and destination to the Canadian Coast Guard.  See Northern Canada Vessel Traffic Services Zone Regulations and the Order Amending the Shipping Safety Control Zones.

 

 

ROAD CONSTRUCTION FOR CANADA’S INLAND PORT BEGINS

Construction of various road improvements around CentrePort Canada started this week.  The construction around the 20,000-acre inland port in Winnipeg includes a four-lane divided expressway that will provide better, more efficient highway access to CentrePort Canada and nearby assets including Winnipeg's James Armstrong Richardson International Airport and the Canadian Pacific Weston Rail intermodal facility.

 

 

CBSA SIGNS THREE MUTUAL RECOGNITION ARRANGEMENTS

On June 25, 2010, Canada Border Services Agency signed three Mutual Recognition Arrangements (MRAs) with customs organizations in Japan, Singapore and South Korea.  The MRAs recognize the compatibility of each country’s respective cargo security program - Canada’s Partners in Protection (PIP) program with Singapore’s Secure Trade Partnership program, Japan’s Authorized Economic Operator (AEO) program and South Korea’s AEO program.

 

This has been accomplished two years after strengthening the PIP program and signing the first MRA with the U.S. Customs and Border Protection’s Customs-Trade Partnership Against Terrorism (C-TPAT) Program.  The signing of the MRAs enhance cross border security as each country now applies similar security standards and performs similar site validations when approving membership in their respective cargo security programs.  This cooperation, which allows for more concerted efforts on unknown or high-risk areas, means better overall protection for Canadian society and greater trade facilitation for program participants as the programs will mutually recognize each other’s members as being low-risk.

 

Members are encouraged to learn more about PIP and other trusted traders programs by visiting the programs and services section of CBSA’s website.

 

 

NAVY WELCOMES NEWEST HONORARY NAVAL CAPTAIN

The Canadian Navy has made Mr. Tung Chan the newest Honorary Captain (Navy).  Mr. Chan is extensively involved in his local community, volunteering in cultural, youth and educational organizations. He has guided these organizations to advance their agendas through his appointment at Director, Chair and Honorary President positions. In 2002, he was awarded the Queen’s Golden Jubilee medal in recognition of his extensive and valuable community service.

 

Honorary Naval Captains act as bridges between military and civilian communities, representing diverse areas of Canadian society from politics and business to journalism and the arts. They bring with them unique skills and connections that help to strengthen the navy’s ties to Canadian communities and to promote a better understanding of maritime defence issues.

 

 

 

Other News

 

DUTCH SUBMARINE TO BE DEPLOYED OFF SOMALIA 

The Dutch are having a good World Cup but not taking their eye off the ball the country has agreed to a NATO request to deploy a submarine off the coast of Somalia to combat piracy. It will be used for maritime reconnaissance from the Gulf of Aden deep into the Indian Ocean where Somali pirates have increasingly been hijacking commercial vessels far from the Somali coast line (see the attached joint draft statement from the International Chamber of Shipping and International Shipping Federation published this week). In addition there have been six attacks on shipping within the Southern Red Sea since the beginning of this month. The Netherlands, which has four submarines, was the first NATO member to respond to the alliance's request for such a submarine to be made available.

 

The International Chamber of Shipping and International Shipping Federation have jointly drafted an updated policy position on piracy and which is attached to this newsletter.

 

 

BRAZIL TO STEP UP OFFSHORE EXPLORATION

Contrary to the debate raging elsewhere, Petrobras has announced its intention to invest to $119bn on upstream oil and gas projects during the period 2010 to 2014 under its new five year business plan. The aim is to expand by 40% access to Brazil’s already substantial volumes of deepwater oil and gas as that country strives to be a prominent energy exporter. In March this year Petrobras was the winner, for the second year in a row, of the Best-Managed Companies in Latin America ranking, published by London-based Euromoney magazine. Euromoney magazine has covered the international capital markets for over 40 years and is among the major publications in the industry.

 

 

SINGAPORE MARITIME CLUSTER & SHIP REGISTRY

Maritime clusters are back in the news following the decision of NYK to switch its global headquarters from Tokyo to Singapore. In addition, Wallenius Line has reflagged seven vessels from Sweden to Singapore to underline the company’s frustration that Sweden is the only European maritime nation that has declined to adopt a tonnage tax regime. Singapore has also recently indicated willingness to host the World Maritime University which is currently located in Malmo, Sweden and is seriously in debt.

 

The Maritime and Port Authority of Singapore (MPA) set up the Maritime Cluster Fund (MCF) in 2002 with an initial budget of S$80 million. Aimed at facilitating the growth of a maritime cluster in Singapore, the fund is available for the development of manpower, local training infrastructure and capabilities within the maritime industry. Accessible to both companies and individuals within the maritime sector, the program focuses on developing the skills of existing or prospective employees.

 

Singapore Registry of Ships (SRS) was established in 1966. Administered by the Maritime and Port Authority of Singapore (MPA), it now ranks among the top ten largest registries in the world, with more than 3,000 vessels, totaling 43.7 million GRT, and is the flag of choice for many international ship owners. Singapore registered vessels enjoy tax advantages and financial incentives, but also a high-quality, pragmatic and flexible ship registry which provides for:

• Flexibility on crew nationality: As the owner of a Singapore-registered ship, you can employ officers and crews of any nationality. In order to maintain quality and competence, all crew must meet the standards of the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) 1978.
• Recognition of foreign certificates of competency: Singapore allows foreign officers and engineers who hold valid and relevant foreign certificates of competency (COC) to serve onboard Singapore ships. No prior approval is required. Owners simply need to apply for a Certificate of Endorsement (COE) for their crew who hold foreign COC.
• Tax exemption: Profits derived from the operation of a Singapore vessel are exempt from Singapore income tax.

In contrast to the good times in Singapore, the Hong Kong government has been criticized by local owners for its unwillingness to appoint a shipping minister or, failing that, to upgrade the government department responsible for shipping. Whilst there are those that fear that Hong Kong is in danger of being eclipsed by Shanghai and Singapore, few seem likely to bet against the ability of the territory to rebound.

 

 

WORLD’S LARGEST GAS POWERED FERRY ORDERED  

The Norwegian ferry operator, Fjord1, has ordered the world’s largest gas-powered ferry. The 100-passenger ferry will join a growing number of vessels in Norway powered by LNG. The vessel will be built under a technology cooperation agreement between Norway and Lithuania. Fjord1 began operating its first gas powered ferry in 2000. By the end of next year it will have 11 ferries in operation with climate friendly LNG propulsion. Gas propulsion has proven popular in Norway since the introduction of a tax on NOx emissions. A scheme where the tax is fed into a fund to assist owners in testing or using latest environmental technology has resulted in the world’s first LNG powered fleet.

 

 

AFRICA’S OLDEST SHIP TO BE RENOVATED

Whilst we continue to be focused on the FIFA World Cup, Thomas Miller, the company that manages the UK P&I Club and other mutual insurers is to lead efforts to renovate what is believed to be the oldest ship in Africa the Chauncy Maples, to mark the company’s 125th anniversary. The vessel, which is situated in Lake Malawi, requires around $3m of upgrades for a project that will help save lives by bringing primary healthcare services to communities that have no access to hospitals or even basic medical help. Land locked Malawi, with a population of 14m, has only 250 doctors to serve the entire country. Average life expectancy is just 36 years, and infant mortality is 20 times higher than in OECD countries.

 

The 38 m long Chauncy Maples was designed by naval architects Henry Brunel, son of Isambard Kingdom Brunel, and Sir John Barry, the engineer for London’s Tower Bridge, and built in Glasgow in 1898 for £13,500.  It was then disassembled, transported to Mozambique in 3,481 small parts, barged up river and then dragged overland or carried on the heads of local people for the final 100 miles stretch to Lake Malawi. There it was used by British missionaries working in central Africa who provided schools and clinics, and held church services aboard for more than half a century. For more information, visit the website.

 

 

VANCOUVER MARITIME MUSEUM – AVAILABLE JULY 31st

The VMM is available for rent during the Celebration of Light finale night.

 

 

 

Market Update

Another punishing week for Capesize owners resulting in the Baltic Dry Index closing negatively on Thursday at 2502 points compared to 2784 points last week and 3423 points the week before.

 

Cape Size         Panamax          Supramax

Index                                                        3317                 3018                 2270

Last week                                                 3317                 3018                 2270

Spot time charter                                   $24,000/day      $24,700/day      $22,200/day

Last week                                             $31,700/day      $24,200/day      $23,700/day

 

Contrary to Capes, the world’s Panamaxes are back in favour after several weeks of market correction. The Baltic Exchange’s Panamax front haul rate strengthened to around $35K per day whilst Atlantic and Pacific round voyages are hovering at around $26K and $21K per day respectively.

 

Tankers: In what appears to be a change of policy, the National Iranian Tanker Co is moving eight of the 25 very large crude carriers it is using for floating storage in the Middle East Gulf, with seven heading to the Red Sea and one to Singapore to discharge their cargoes. This represents an injection of around 2.1m tons of crude oil into the market or about 30% of Iran’s VLCC storage inventory. Meanwhile, the European Union appears set to impose a precedent setting ban on all Iranian owned ships as part of the UN decision to tighten economic sanctions on that country.

 

Containers:  In contrast to the uncertainties of the dry bulk sector, another increase in the bench mark Hong Kong-Los Angeles container rate saw the Drewry container index surge to the highest level since it was first published five years ago. Spot freight rates have improved to  around $2,600 per FEU, up $400 in just a week. The same box was moving for around $900 this time last year and $2000 in the boom days of July 2008. Also of interest, the Container Freight Derivatives Association will meet in Shanghai on September 14 to introduce the concept of container futures trading to potential traders. Container Swap Agreement trades have been brokered by Clarkson Securities since January this year, with the objective that 2m TEU per year will be traded within five years.

 

 

 

Upcoming Meetings and Events

 

 

MISSION TO SEAFARERS – MARINE LUNCHEON 2010

July 5^th – Robert Allen of Robert Allan Ltd. will be the guest speaker at the Mission to Seafarers annual lunch at the Terminal City Club on Monday, July 5th.  The Mission to Seafarers is an Anglican mission that has been caring for seafarers from around the world since 1903 and each year up to 15,000 seafarers from more than 40 countries visit the Mission. Tickets are $55 per person (includes $25 tax receipt).  For more information call 604-253-4421. 

HAZMAT EXPERTS TRAINING COURSE

July 19-22^nd - Germanischer Lloyd is offering a three-day seminar specifically developed to train HazMat Experts in line with the IMO Guidelines for Preparation of Inventory of Hazardous Materials (IHM). The course outlines the rules and regulations in respect of ship recycling including requirements for shipowners and documentation of hazardous materials for allowing safe ship dismantling activities.  For more information call 1-800-590-3932.

 

 

AN EVENING AT THE MUSEUM

July 21^st – The Vancouver Maritime Museum is hosting a fundraising dinner on the opening night of the Celebration of Light.  Tickets are $160 plus HST (includes a $100 tax receipt).  To reserve your tickets, email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

 

 

June 26             Roberts Bank / Deltaport Open House

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

June 30             PACMAR & NANS Meeting @ 10:30

July 1                Canada Day – Statutory Holiday

July 3                Pacific Coast Terminals Open House

July 5                Mission to Seafarers – Marine Lunch 2010

July 6                CIABC Board Meeting @ 10:30

July 8                Business of Shipping – Enbridge Presentation

July 8                CIFFA Annual Golf Tournament

July 8                Business of Shipping – Enbridge Northern Gateway Project

July 9                IMC Annual General Meeting @ 12:00

July 13              COS Ship & Port Operations Meeting @ 12:00

July 13              ICS Annual General Meeting and Board of Directors Meeting @ 16:00

July 14              COS Liner Committee Meeting @ 10:00

July 14              COS Board of Directors Meeting @ 11:30

July 19              HAZMAT Experts Training Course

July 20              ISSC Annual General Meeting @ 12:00

July 21              An Evening at the Vancouver Maritime Museum

July 22              COS Navigation & Pilotage Committee @ 10:30

July 22              COS Owners Committee Meeting @ 12:00

 

 

 

Ship of the Week

 

NORWEGIAN EPIC in Rotterdam on her maiden voyage last weekend

Built at STX Saint NazaireYard, France

Delivered June 18 2010

LOA 329.5M

Beam 40.5m

GRT 153,000

19 decks

Passenger capacity 4,100

Crew 1,700

Cruising speed 22 knots

 

Norwegian Cruise Line last week accepted delivery of one of the largest and most innovative cruise ships built to date, Norwegian Epic, is the largest ship ever constructed in St. Nazaire and represents a major milestone for Korean domiciled STX shipyards. Following delivery, the vessel departed St. Nazaire  for Rotterdam and embarked “guests” for a two-day inaugural cruise before heading to Southampton UK for a preview to the European travel industry. Yesterday, June 24, the ship departed Southampton on a sold out seven day transatlantic crossing to New York arriving on July 1. The vessel will be christened on July 2 followed by a two day cruise and will then be the host venue for the 34th Annual Macy’s 4th of July fireworks event on July 4. The vessel arrives in Miami on Wednesday, July 7 and beginning July 10 will sail alternating seven-day Eastern and Western Caribbean itineraries through to April 2011. 

 

 

Norwegian Cruise Lines is a pioneer of so called “Freestyle Cruising” and Norwegian Epic offers more than 20 dining options and a wide range of accommodation options including what is claimed to be the largest suite complex at sea. Interestingly her desgners have reverted to conventional shaft and propellor propulsion, instead of now customary cruise ship diesel-electric ‘pod’ propulsion which on some vessels has suffered reliability problems.

 

Importantly for our local cruise industry, the Governor of Alaska has now signed legislation cutting the state’s controversial head tax from $46 to $34.50 per passenger. Alaska has subsequently reuested the cruise lines to drop a law suit filed against the state on this issue.  Also of no small significance, China has agreed to open up its cruise market to allow foreign cruise ships based in Shanghai to call at other Chinese ports. The Chinese Ministry of Transport last October outlined a draft for the country’s cruise industry that lifted the ban of multiple calls for foreign cruise operators. Royal Caribbean, Holland America, Costa and Star Cruises are all building market share in the Chinese market.

 

 

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