COS Weekly News - 13 April 2012
Monday, 16 April 2012 15:10
COS News – Week ending 13 April 2012
Issue No. 204
PORT OF PRINCE RUPERT RELEASES ECONOMIC IMPACT STUDY
In a news release earlier this week the Port of Prince Rupert announced that the number of BC-based jobs generated by have grown by over 70% in the past two years while the value of export trade through the Port has nearly doubled to $4.9 billion since 2009. The total direct impacts of on-going operations at the Port of Prince Rupert generate 2,220 direct person years of employment (nearly 2,330 jobs), earning close to $130 million in wages, generating over $290 million in GDP and approximately $550 million in economic output.
Employment at Port of Prince Rupert by Industry Type
Figure from the Economic Impact Study, prepared by InterVISTAS Consulting Inc.
The full economic impact study is available for download on the Port’s new website att: http://www.rupertport.com/documents/economic-impact-study-2012
The full value of trade analysis is available for download at: http://www.rupertport.com/documents/value-of-trade-2012
KINDER MORGAN EXPANSION MOVES FORWARD
Following a successful open season resulting in 20 years of binding commitments to make use of expanded capacity, Kinder Morgan Energy Partners, L.P. yesterday announced its intention to move forward with plans to expand the existing Trans Mountain pipeline system. The proposed capacity increase will be achieved by twinning the existing Trans Mountain pipe-line to increase capacity from 300,000 barrels/day to some 850,000 barrels/day.
Trans Mountain Pipeline expansion
OTTAWA APPROVES LNG EXPORT LICENCE
A joint venture of the Haisla First Nation and a Texas company have been awarded a 20-year licence to export liquefied natural gas from an inter-national terminal proposed for Kitimat. It's the second such licence approved by the federal government in recent months. Last October the national energy board approved an application by Apache Canada and EOG Resources Canada for a 20-year export licence.
DEVELOPMENT WAY SAILS - FINALLY
Our “Ship of the Week” for March 30 finally took her leave of Vancouver on April 7. Following loading of Seaspan equipment headed for scrap in China, the vessel was delayed for several days to remedy issues under a Port State Control detention and to allow her cargo to be properly secured (easy to see why). The pictures supplied by Captain Jostein Hoddevik of IMS Marine Surveyors & Analytical Laboratories Ltd. were taken from the safety of his balcony.
CN OFFERS NEW STEEL-WHEEL INTERCHANGE SERVICE WITH CSXT IN CHICAGO
CN announced a new steel-wheel-interchange service with CSXT Transportation (CSX) over Chicago. The service gives container imports moving over CN's network from the ports of Vancouver and Prince Rupert efficient access to key Ohio Valley markets.
UBC SAUDER SCHOOL OF BUSINESS – SUMMER INTERNS
The Chamber of Shipping recently hosted second and third year students from UBC’s Sauder School of Business. A number of these students have expressed an interested in furthering their studies in the Transportation and Logistics option offered at the university and are keen to find either a paid or unpaid internship starting in May. If your company is interested in taking on an intern, please contact the Bonnie Gee or Stephen Brown at the COS secretariat for more information.
Government Updates
FISCAL RESTRAINT MEASURES TAKE EFFECT
This week more than 5,500 workers in at least 23 departments were served notices of “affected” status following the budget announcements last week. This is the first step in the federal process for eliminating jobs and not all affected workers will be laid off as some may be moved to other departments. More than 2,000 of the affected jobs are located in the Ottawa region; 775 are in the Prairies; 236 in the Atlantic region and in Quebec; 222 in British Columbia; and 11 in the North. Some of the departments with a high number of PSAC members who were notified include:
Canada Border Services Agency: 1,137
Health Canada: 715
Agriculture Canada: 689
Public Health Agency of Canada: 483
Canadian International Development Agency: 534
Citizenship and Immigration: 339
Canadian Heritage: 258
Veterans Affairs: 261
Environment: 137
Transport Canada has notified the Chamber of Shipping that they face a 10.7 per cent reduction in their budget which results in a reduction of $61.8 million in funding by 2014-2015. Changes identified for TC will affect all areas of the department, and fall under three broad categories: Overall Efficiencies; Back Office Streamlining; and Program Changes. The key program change is the integration of Marine Safety and Marine Security Programs and modernizing select Marine Safety service delivery models.
VESSEL POLLUTION AND DANGEROUS CHEMICAL REGULATIONS
First phase the regulatory amendments to the Vessel Pollution and Dangerous Chemical Regulations were completed and published in the Canada Gazette Part II – April 11, 2012. The second phase of the regulatory amendment that will encompass requirements for the Emissions Control Area are expects to be published by the end of the month in preparation for the ECA implementation date of August 1, 2012.
UPDATE: IMPLEMENTATION OF ISPM 15 BETWEEN CANADA AND THE US
Canada and the United States continue to work on implementing the International Standard for Phytosanitary Measures (ISPM) 15, the standard that affects treating packaging material made of wood. The date for full implementation has not been confirmed. Once the date has been confirmed by Canada and the United States, industry will be informed by the Canadian Food Inspection Agency and a phase-in period of up to 18 months will begin.
ACI UPDATES
The Canada Border Services Agency’s Electronic Commerce Unit has advised that effective August 25, 2012, the requirement to submit the UN prefix for the dangerous goods code transmitted in the cargo maps for ACI Air, ACI Marine, ACI eManifest Highway and CSA (Customs Self Assessment) Highway will be removed.
The dangerous goods code will be numeric 4 (n4) only and any codes submitted with the UN prefix will be receive a reject from the functional level (997 message) indicating that the field exceeds the allowable size. The ACI Air, Marine, eManifest Highway and CSA Electronic Commerce Client Requirements Documents (ECCRD) will be updated accordingly.
For any question concerning EDI formatting for ACI Air, ACI Marine and CSA Highway, please contact the Electronic Commerce Unit at 1-888-957-7224, option 1.
CUSTOMS NOTICE12-011 STEEL AND STEEL PRODUCTS – ELIMINATION OF INDIVIDUAL PERMITS
CN 12-011 advises that importers of steel and steel products will no longer be required to obtain individual permits but will, instead, be provided by FAITC with general import permits (GIP) for all steel covered by the Import Control List of the Export and Import Permits Act.
The new import permit system will eliminate a need for importers of steel and steel products to provide to the Canada Border Services Agency (CBSA) the individual permit information (electronic transaction record or paper copy of the transaction record) with the release request.
Other News
TITANIC SINKING MEMORIAL VOYAGE UNDERWAY
The cruise ship Balmoral sailed from Southampton UK on Easter Sunday on a 12 night “Titanic Memorial Cruise” carrying relatives of some of the more than 1,500 people who died aboard the Titanic nearly 100 years ago when she he ship came to grief on Saturday April 14 1912. The memorial cruise was panned to retrace the ship's voyage including a stop at the precise location where the sunken vessel lies. When she sailed, many passengers were in period dress and in a touching gesture, a parade of children walked through the streets of Southampton with placards, one in memory of each member of the ship’s crew (below right). A service will be held at 11:40 pm tomorrow to mark the moment Titanic hit the iceberg, and later at the exact moment when she sank at 2.20 am Sunday April 15 1912.
Balmoral is carrying 1,309 passengers, precisely the same number as the Titanic. The aim of the cruise organizers was to recreate the onboard experience, including the exact same menus and a live band playing music from that era, in a tribute to Titanic's musicians who played their instruments until the moment the ship sank. Passengers from 28 countries paid from $4,500 to $9,500 each for the experience. Balmoral will also call at Halifax, Nova Scotia, where passengers will visit Fairview Lawn Cemetery, where 121 victims of the disaster are buried before heading to New York, the intended final destination of Titanic 100 years ago.
DRIFTING FISHING BOAT SUNK BY USCG
The Japanese fishing boat Ryou-Un Maru which was cast adrift last year by the Japanese tsunami is now at peace on the ocean bottom after being unceremoniously sunk by shell-fire by the US coastguard. After making her lonely journey across the Pacific, she didn’t go without a fight taking four hours to sink in around 6,000 feet of water 180 miles west of the southeast Alaska coast.
Ryon-Un Maru under fire
Japanese data estimates that some 1.5 million tons of debris was washed out to sea during last year’s earthquake and tsunami. Whilst some of it will have sunk or degraded, it is inevitable that some will find its way onto North American beaches later this year and next.
EGT GRAIN TERMINAL SUFFERS FIRE DAMAGE
pictures taken at dock and from across the Columbia River during the blaze
Firefighters were called to extinguish a blaze in the conveyor system tower at the new EGT grain terminal dock at the Port of Longview last Saturday morning. A small amount of burning debris fell into the hold of a vessel on dock Navios Gemini S, but the ship was not otherwise damaged. The $200 million EGT terminal loaded grain its first ship Feb. 7 following a lengthy labor dispute with the ILWU which delayed the opening of the terminal, which first unloaded rail cars last September. The two sides reached a settlement in January this year brokered by the State Governor.
AUSTRALIAN REPORT CRITICAL OF LACK OF PORT INFRASTRUCTURE PLANNING
A review of planning strategies in Australia’s capital cities has delivered a scathing report into national infrastructure, finding that none fully meet the targets set by federal and state leaders. Transport and freight and freight corridors were identified as the worst pressure points, with a warning the city’s ports and infrastructure will struggle to handle future growth.
The Reform Council, set up by the Council of Australian Governments (COAG), was asked by the federal Labor government in 2009 to review city plans against nine criteria including housing affordability and ability to cope with swelling populations. The report is uncompromising in criticizing the highly political debate surrounding infrastructure priorities.
Meanwhile, an agreement has been reached under which the Port of Rotterdam, Europe’s largest maritime gateway, will work with local authorities to develop a $2.2 billion greenfield port to the north of Rio de Janeiro. “Porto Central” is intended to service Brazil’s urgent need for new bulk and break bulk handling facilities in addition to meeting the needs of the country’s rapidly expanding oil and gas industry.
PRESSURE TO MODIFY JONES ACT FROM GUAM
Senator John McCain has again failed in his annual attempt to have the Jones Act abolished but this time he has an ally in the form of a resolution tabled in the Guam legislature. The resolution requests the territory’s delegate to the US House of Representatives to present a Bill that would exempt Guam, Puerto Rico, Hawaii and Alaska from the Jones Act’s US-build requirement. Guam’s move is prompted by Matson Navigation being the last man standing in offering a liner service to the territory. The Jones Act of 1920 requires cabotage tonnage to be at least 75% US owned, at least 75% US citizen crewed and US-built. Guam itself already has an exemption from the US-build requirement but unless carriers can also offer a tandem service to Hawaii, the concession doesn’t help as there is no economic viability.
PIRATES TEMPORARILY TAKE CHINESE CARGO SHIP
The Chinese multi-purpose general cargo vessel Xiang Hua Men owned by Nanjing Ocean Shipping Co Ltd was temporarily hijacked late last week near the south Iranian port of Chabahar while en route to Bandar Khomeyni. At the request of the Chinese government, Iranian naval forces promptly intercepted the vessel and arrested 13 (unlucky number) pirates. The gun slinging “Al Capone” of Somali piracy, a one “Garaad Mohammed” is understood to be among those captured and who is now a guest of the Iranian navy. Mr Garaad is known to have been involved in hundreds of attacks on merchant shipping since Somali piracy first became that country’s leading industry some five years ago.
The widespread use of armed guards by ship owners when transiting the Gulf of Aden has clearly proven a deterrent to Somali pirates and the signs are that they are becoming desperate to keep their cash flow going. The small cargo vessel Leila was released this week $250,000 after being held for two months according to the much read “Somaliland Sun newspaper”. Following the intervention of Tribal Elders, the Somali cargo owners are understood to have written the cheque. Of significant concern to the international marine community is that on the other side of Africa, Nigerian pirates are now operating up to 300 miles off-shore using mother ships.
Market Update
A record 139 bulk carriers representing 7.8 million tons of capacity were sold for demolition in the first three months of this year, representing the largest quarterly number ever. Unfortunately the pace of new deliveries continues to out-strip those heading for razor blades so although the Baltic Dry Index didn’t move a whole lot over the week, it was at least in the right direction closing on Thursday on 960 points, compared to 928 points last week and 930 points the week before.
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Cape Size Panamax Supramax Index 1576 1110 930 |
Tankers: China’s first quarter crude oil imports rose 11.4% to 5.6m bpd over the same period in 2011, almost double the 6% average growth last year. In the company of several other countries, China is stockpiling crude in the face of the current tensions with Iran whilst also boosting the second phase of strategic petroleum reserves, which total 180m barrels. From an owner’s perspective, the realities of a 380 CST bunker price holding well above $700 per ton this year has forced the tanker sector into its own brand of slow steaming on both loaded and ballast voyage legs. Loaded legs are being performed at 12-13 knots whilst ballast legs are down to as low as 10 knots.
Upcoming Events
NAUTICAL INSTITUTE (BC BRANCH) AGM AND LUNCH
April 14th - The B.C. Branch of The Nautical Institute will hold its AGM and lunch at 11:00 hours on Saturday April 14th at The Coast Tsawwassen Inn in Tsawwassen. The guest speaker for lunch will be Mr. Jay Straith of Canadian Artificial Reef Consulting. Mr. Straith will give insight into a unique way of re-cycling old ships. Guests are welcome for the lunch and presentation. Register for this event and find out complete details at www.nauticalinstitute.ca.
BUSINESS OF SHIPPING COURSE
April 19 – The next Business of Shipping Course will be a half day session covering vessel and port operations in the Asia Pacific Gateway. For more information see the attached registration form or contact Rose Bray at 604-681-2351 or via email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
ASIA-PACIFIC GATEWAY GROWTH – IMPLICATIONS FOR THE TRUCKING INDUSTRY
May 2 - The BC Trucking Association has organized a conference to address the challenges and opportunities for the trucking industry in the Asia Pacific Gateway. Visit the BCTA website for the registration form and further details.
LR ILO MARITIME LABOUR CONVENTION 2006 TRAINING COURSE
May 8 – 9 – Lloyd’s Register is offering a two-day course for those involved in the creation and implementation of policies and procedures required for compliance with the ILO MLC 2006. The course is outlined in the attached brochure and is priced at $895. The course will be held in the local office in North Vancouver.
ICMA XVIII - REGISTRATION
May 13 – 18 - The Vancouver Maritime Arbitrators Association, (VMAA), invites you to the International Congress of Maritime Arbitrators, ICMA XVIII, to be held at the Pan Pacific Hotel, Vancouver British Columbia, Canada. ICMA provides a forum for arbitrators, national maritime arbitration associations, marine insurers, ship owners, charterers, cargo interests and the legal community from around the world to come together to exchange views and developments. After 21 years ICMA returns to Vancouver in 2012. For more information or to register, visit www.icma2012.com
PORT SECURITY CONFERENCE
May 15 – 17 – The 2012 Canadian Port and Maritime Security Conference will be held this year at the Coast Coal Harbour Hotel in Vancouver, BC. For more information visit: www.portsecure.ca
PLIMSOLL CLUB ANNUAL SPRING GOLF TOURNAMENT
May 16 – The Plimsoll Club will be holding this year’s golf tournament at the University Golf Club. For more information and to register your foursome, see the attached flyer or contact Renae Warnock at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
GREEN MARINE ANNUAL CONFERENCE – GREEN TECH 2012
May 29 – 30 – Green Tech 2012 will be held this year in Quebec City at the Loews Hotel Le Concorde.
This will be Green Marine’s 5th edition of its annual conference on green technologies and innovation in marine transportation. Detailed information and registration forms for exhibitors and participants are available on Green Tech 2012 website: www.green-marine.org/annual-conference.
MARITIME SECURITY CHALLENGES (MSC) 2012
Oct 1–3 – The 5th annual conference presented by Maritime Forces Pacific and Royal Roads University will take place in Victoria, BC and will address the illegal movement of people and goods at sea, security issues in the Gulf of Guinea, maritime applications of unmanned and autonomous vehicles, and shipbuilding and future naval requirements. To register or for more information on the conference or sponsorship opportunities visit: http://mscconference.ca/
Apr 14 Nautical Institute BC Branch Annual General Meeting
Apr 16 Meeting on CBSA Carrier Code Policy Change @ 11:00
Apr 17 COS Liner Committee Meeting @ 10:00
Apr 17 COS Navigation & Pilotage Committee Meeting @ 12:00
Apr 18 Conference Call on Timber Deck Code Revisions @ 09:00
Apr 19 ISSC Board of Directors Meeting @ 12:00
Apr 19 Business of Shipping Course (half day) – Vessel Operations
Apr 20 COS Ship & Port Operations Committee Meeting @ 10:00
May 13-18 International Congress of Maritime Arbitrators XVIII Conference
May 15-17 Port Security Conference
May 16 Plimsoll Club Annual Spring Golf Tournament
May 29-30 Green Marine Annual Conference – Green Tech
Jun 7 Business of Shipping Course (full day) Vancouver Island Convention Centre, Nanaimo
Jun 15 Vancouver Grain Exchange Golf Tournament
Ship of the Week
Carpathia 1903-18
With the attention given to the Titanic this week, we decided to dedicate our “Ship of the Week” spot to Carpathia, the vessel which rescued the 712 survivors of the disaster. Carpathia was owned by Cunard, the bitter business rival of White Star Line, the owner of Titanic. Carpathia left Liverpool on her maiden voyage on May 5 1903 and plied the Liverpool to New York - Boston route in the summer, and in winter she generally carried immigrants from the Mediterranean to the United States.
Arthur Rostron, a native of Bolton, Lancashire was born in 1869 and first went to sea under sail at the age of 13, joining the Naval training ship Conway. On the night of 14 April 1912, whilst on passage from New York to Liverpool, Captain Rostron was asleep in his cabin when wireless operator Harold Cottam burst in and told him of Titanic's distress signal and the ship’s course was rapidly altered to head for her position, some 60 miles away.
Captain Rostron passengers tend Titanic's survivors Captain Rostron with "The Unsinkable" Molly Brown
During the frantic few hours before reaching Titanic’s position, emergency preparations were made to receive survivors. Despite the fact that his ship was capable of only 14 knots, Captain Rostron ordered all hot water, steam and other heat sources cut off to provide all available steam to the ship’s boilers to gain more speed, notwithstanding that he knew he was steaming blind through ice-fields.
At 4.00 am, April 15, Carpathia arrived on scene and began picking up survivors and lifeboats from the Titanic. The first boat was retrieved at 4:10 am, the last at 8:30 am. As noted, a total of 712 people were saved and 1,503 perished. As there were insufficient resources on board to make it to Europe, Captain Rostron decided to return to New York, arriving on April 18 when the extent of the tragedy was fully learned. After the last survivor had disembarked and Captain Rostron had completed a statement for a U.S. Senate inquiry, the Carpathia was allowed to depart.
For his role in the rescue, Captain Rostron was awarded a silver cup and gold medal by survivors, the presentation being made by the campaigner and social activist Molly Brown. He was later received by President Taft at the White House who presented by him with a personally signed letter of thanks. In addition, just a few months later he was presented by President Taft with the Congressional Medal of Honour, the highest compliment the United States could confer upon him. In fact the whole crew of the Carpathia were awarded medals by the survivors – officers silver, crew members bronze.
After a year in command of Carpathia, Captain Rostron was transferred to the Caroniain in 1913. Between then and the end of World War 1 he would also take command of the Carmania, Campania, Lusitania, Aulania and Mauretania. In 1915, whilst commanding the Aulania, Captain Rostron was involved in the shipping troops to the disasterous Battle of Gallipoli. After World War I he was appointed Knight Commander of the Order of the British Empire and was made the Commodore of the Cunard fleet in 1927, commanding Berengaria, before retiring in 1931. He died in Southampton in 1940 and a plaque is to be placed at his home, which still stands, on Sunday April 15, to mark the 100th anniversary of the event.
Carpathia herself continued in commercial service throughout the First World War until on 17 July 1918 when travelling in a convoy bound for Boston, she was struck by two torpedoes some 120 miles west of Fastnet, Southern Ireland. A third torpedo hit the ship as the lifeboats were being manned killing five of her crew. Survivors were rescued by a warship and brought to Liverpool but Carpathia sank at 12.40am that same day.
“Cunard Line” and Titanic’s owners “White Star Line” under the full economic impact of the 1930s Great Depression agreed to a full merger in 1934, henceforth being known as “Cunard White Star Line”.
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