COS Weekly News - 20 April 2012
Monday, 23 April 2012 08:56
COS News – Week ending 20 April 2012
Issue No. 205
THE 2012 CRUISE SEASON IS UNDERWAY
This year’s cruise ship season started with the arrival of the Crystal Serenity at Canada Place on Monday, April 16th, and its subsequent arrival at Ogden Point on Tuesday as part of an around-the-world tour.
Port Metro Vancouver’s cruise season expects to see approximately 670,000 passengers in 2012 on 191 vessel calls at the Port’s two cruise terminals - Canada Place and Ballantyne.
The arrival in Victoria marks the first of 229 expected calls from 25 ships in 2012, which will bring more than 475,000 passengers and 200,000 crew to the Greater Victoria region. The governments of Canada and British Columbia partnered with the GVHA to install a mooring dolphin 70 metres from the end of a 240-metre pier at Ogden Point to accommodate larger cruise vessels. Thanks to these investments, a 315-metre vessel capable of carrying 2,850 passengers is confirmed to call on Victoria in 2013. The longest vessel expected to call on Victoria is 296 metres, with a maximum capacity of 2,600 passengers.
CHIEF DERRICK APPOINTED TO PRINCE RUPERT PORT AUTHORITY BOARD
The Honourable Denis Lebel, Minister of Transport, Infrastructure and Communities, today announced the appointment of Chief Elmer Derrick of Terrace, British Columbia, to the board of directors of the Prince Rupert Port Authority for a three-year term.
WEST COAST NAVAL INTELLIGENCE CENTRE TO CLOSE
The Canadian Press reported that a intelligence office on the West Coast that has been operating for less than two years will close as part of a three-year drive to carve $1.5 billion from the budget of National Defence. The Acoustic Data Analysis Centre at Canadian Forces Base Esquimalt, B.C. was established after the navy argued the need for more surveillance in a region considered a prime thoroughfare for human smuggling. Operations will be transferred to a similar centre in Halifax.
REAR ADMIRAL GREENWOOD’S REPLACEMENT NAMED
Command of Maritime Forces on Canada’s west coast is set to change hands in June this year when Commodore Bill Truelove replaces Rear Admiral Nigel Greenwood. Commodore Truelove, who will also be promoted to the rank of Rear Admiral, is currently serving in Kabul, Afghanistan.
Commodore Truelove
OGDEN POINT BACK IN THE CABLE SHIP BUSINESS
Wave Venture alongside at Ogden Point
UK based Global Marine Systems has entered into an agreement with the Greater Victoria Harbour Authority to position the cable ship Wave Venture at Ogden Point for five years including a contract for cable storage. The vessel, which will vacate berth during the busy weekend periods of the cruise season, is presently discharging 745 km of cable into the cable tanks with a further 100 km to come. (thanks to GVHA and Western Stevedoring for the inside scoop)
STX TO ASSIST IN OPTIMIZING VANCOUVER SHIPYARDS
Seaspan Marine Corporation, the parent company of Vancouver Shipyards, recently signed a deal with STX Offshore and Shipbuilding Company Ltd. This partnership will optimize Vancouver Shipyard’s planned facilities upgrades for the Federal Government’s recently awarded $8 billion Non-Combat National Shipbuilding Procurement Strategy (NSPS) program.
STX is one of the leading shipbuilders in the world and currently produces approximately 60 vessels per year with annual steel throughput over 700,000 tonnes. STX plans to dispatch a technical staff to Vancouver Shipyards to review facility upgrades and provide recommendations for optimizing shipbuilding efficiency.
Government Updates
MEMORANDUM D17-14 RELEASE OF COMMERCIAL GOODS
Memorandum D17-1-4 dated April 19, 2012 replaces D17-1-4 dated September 19, 2008. Key amendments include modifications to the exceptions to EDI and timelines in view of eManifest end-state and Harmonized System change to 10-digits, plus new information on Low Value Shipments and release processing for hand-carried goods.
CANADIAN TRANSPORTATION AGENCY VACANCY
The Canadian Transportation Agency has posted a full time vacancy in the Canada Gazettefor Vice-Chairperson and Member.
Other News
SOMBRE SERVICES MARK TITANIC CENTENARY
Cruise ship passengers and crew paid homage in the early hours of last Sunday morning at the spot in the North Atlantic where the Titanic sank 100 years ago. Wreaths were thrown into the sea in remembrance of those who died. The cruise ship Azamara Journey which had set out from New York, also held a service at the site of the disaster, some 400 miles off the coast of Newfoundland.
Titanic’s Master was Captain Edward Smith. His childhood home in Staffordshire U.K. is currently on the market for £80,000. The history of the humble dwelling attracted the current owners to buy it 10 years ago and now they hope to pass it on to a historical custodian who can make the most of its past. He and his pottery worker parents are believed to have lived in the house for more than a decade. He worked at a local steelmaker before heading off to sea aged 13, where he progressed from ship's boy to captain.
services on a cold but calm night mark the centenary of Titanic’s niking - Azamara Journey in the backround (right)
MR. MAERSK MC-KINNEY MOLLER 1913 - 2012
We are saddened to report the passing of Mr. Maersk Mc-Kinney Moller in the early hours of last Monday morning, just three months shy of his 99th birthday. He was predeceased by his wife of 65 years, Emma, who died in 2005, and is survived by their three daughters, two of whom are active in the business, along with two grandsons. Mr. Mc-Kinney Moller attended the company’s Annual General Meeting only last week.
The company’s origins go back to 1904 when Mr. Mc-Kinney Moller’s grandfather Peter Maersk Moller and father Arnold Peter formed their first shipping company. He took over as head of the AP Moller-Maersk group in 1965 on the death of his father and maintained day to day control until 1993 by which time the framework was well established for perhaps the world’s best known shipping company which in 2011 had a turnover of $60 billion, employing 108,000 staff across 130 countries. Mr. Mc-Kinney Moller and his wife were quietly generous and active in support of many charitable causes. As an old school shipping man, he was renowned for having inspired several generations of leaders in our industry whilst remaining personally humble and publicity shy.
Maersk employees held a minute’s silence at noon today Danish time and a private funeral service is scheduled for tomorrow (Saturday April 21) in Copenhagen.
US APPROVES LNG EXPORT TERMINAL
The first large natural gas export facility in the U.S. for more than 40 years was approved this week by the Federal Energy Regulatory Commission. The project is based on the Sabine Pass LNG terminal in Louisiana which will be converted from an import to an export facility and will come on line in 2015-16 at a cost of some $4 billion. Sabine LNG has entered into sale and purchase agreements with BG Group of the UK, Gas Natural Fenosa of Spain, Gail of India and Kogas of Korea to take 90% of the terminal’s annual LNG capacity.
STATOIL ORDERS STATE OF THE ART “CAT B” DRILL RIG
Cat B - Well Intervention Rig
Statoil of Norway, announced this week the award to Aker Solutions of a $1.9 billion contract involving a new type of rig, categorized “Cat-B”, intended to provide enhanced well intervention and light drilling capability year round on the Norwegian Continental Shelf. The entirely new concept of the Cat-B rig is designed for a full range of heavy well intervention and light drilling tasks in water depths up to 500 metres in a harsh environment. In a statement, Statoil stated “this will be a very important part of the toolbox for increased recovery on the Norwegian continental shelf, making it possible to produce oil and gas that otherwise would be inaccessible”.
Statoil ASA, the world’s 13th largest oil and gas company, is a Norwegian energy enterprise formed by the 2007 through the merger of Statoil with the oil and gas division of Norsk Hydro. The Government of Norway is the largest shareholder in the company with 67% of the shares under the Norwegian Ministry of Petroleum and Energy. Statoil is a fully integrated petroleum company with production operations in 13 countries.
MAERSK ALABMA CREW SUES OWNERS
In what some people might see as an opportunistic exercise, following the temporary hijacking by Somali pirates of the Maersk Alabama in 2008, eleven seafarers have decided to sue Maersk Line in the U.S. The action claims that the company ignored piracy warnings in sailing too close to the East African coastline and as a consequence the complainants are seeking compensatory and punitive damages for physical injuries, negligence, wantonness, emotional distress, post-traumatic stress disorders, sleep disorders, medical expenses and lost wages.
pictures above of the freed crew members and on arrival back in the U.S.
$1 BN DRAWDOWN OF HMTF SANCTIONED
The US “House Energy & Water Appropriations Subcommittee” has sanctioned the largest annual drawdown ever from the $6 billion held in the Harbour Maintenance Trust Fund. The allocation for 2013 will go to the US Army Corps of Engineers to “increase commerce through the nation’s ports and other waterways”. The recent FMC enquiry into alleged diversion of cargo through Canadian ports generated immense criticism of the management of the HMTF which generates annual revenue of around $1.5 billion to dredge port access channels.
SINGAPORE KEEPS PACE WITH SHANGHAI IN Q1
Growth of 6.6% in container handling saw Singapore handle 7.5 million TEU in Q1 – the same number as Shanghai which experienced reduced growth at 3.5%. The bronze medal stays with Hong Kong which handled 5.6 million TEU in the same period on growth of 2.7%. Notwithstanding its success in the world of container handling, Singapore is judged by most to be Asia’s leading maritime hub with visionary government’s support and leadership in the maritime sector for many years. It is also now a world centre for the offshore industry, maritime law and finance.
Staying with containers, when speaking to Containerization International’s “Global Liner Shipping” conference this week, Maersk Line’s Chief Commercial Officer announced plans to extend the company’s Daily Maersk service to new trade lanes and to improve its delivery times dramatically. “Maersk and the rest of the container shipping industry have failed to create value for their customers and shareholders over the years and that situation has to change” he went on to say. “The goal is to attain 95% on-time delivery in all east-west trade lanes after Daily Maersk achieved 99% punctuality in February”.
Whilst the first cut of the grass does not signify a great summer to follow, Trans-Pacific spot rates were up 20% this week to around $2,400 per FEU on the benchmark Hong Kong-Los Angeles route, up 34% from a year ago.
S.S. BEAVER AWARD ANNOUNCEMENT
A new award has been instituted to honour individuals who have made outstanding contributions or significant achievements in maritime endeavors in British Columbia. These attainments may include, but are not limited to-science, technology, business, application of practical maritime skills, nautical heritage and culture, and academic contributions. The gold-plated medal, which incorporates copper from the 19th century steamship S.S. Beaver, reminds us of our history but also highlights the continuing importance of British Columbia's maritime sector.
S.S. Beaver in about 1870
Market Update
With Capsizes continuing to languish, Atlantic spot bulk markets have been the global driver this week on the back of Brazilian sugar and soybean exports. The Baltic Dry Index finally crossed into four figure territory this week and closed on Thursday on 1028 points, compared to 960 points last week and 928 points the week before.
According to Clarkson’s data, 2012 will witness a modest decline in the number of tankers and dry bulk vessels delivered, perhaps indicating that the peak of unwanted deliveries is about to pass. Last year’s numbers were around 139 million tons DWT compared to a projected 131 million tons this year.
Cape Size Panamax Supramax
Index 1534 1354 992
One week ago 1576 1110 930
Spot time charter $6,600/day $10,800/day $10,400/day
One week ago $7,100/day $ 8,900/day $ 9,700/day
Upcoming Events
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.
CMLA ANNUAL GENERAL MEETING AND ANNUAL SEMINAR
May 11 – 12 - The Canadian Maritime Law Association will be holding its 2012 Annual General Meeting on Friday, May 11, 2012 and its annual Seminar on Saturday May 12, 2012. To register for the seminar please go to the CMLA website (www.cmla.org) and follow the links to the registration page. Alternatively, you can go direct to the registration page at www.cmla.org/agmseminarreg.php.
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
– 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 23-26 National Canadian Marine Advisory Council Meetings
Apr 27 Plimsoll Club Annual General Meeting @ 16:30
May 1 CIABC Board of Directors Meeting
May 2 BCTA Annual General Meeting
May 2 VMAA Board of Directors Meeting
May 3 WCMRC User Group Meeting
May 8 Port Metro Vancouver Land Use Meeting – Transportation & Goods Movement
May 9 COS Board of Directors Meeting @ 11:30
May 11 Canadian Maritime Law Association Annual General Meeting
May 12 Canadian Maritime Law Association Seminar
May 13-18 International Congress of Maritime Arbitrators XVIII Conference
May 15 COS Ship & Port Operations Committee Meeting @ 12:00
May 15-17 Port Security Conference
May 16 Plimsoll Club Annual Spring Golf Tournament
May 17 COS Navigation & Pilotage Committee Meeting @ 10:00
May 17 COS Liner Committee Meeting @ 12:00
May 21 Victoria Day – Office Closed
May 24 COS Owners Committee Meeting @ 12:00
May 29 PMV Annual General Meeting
May 29-30 Green Marine Annual Conference – Green Tech
May 30 PACMAR / NANS Meeting @ 10:30
Jun 7 Business of Shipping Course (full day) Vancouver Island Convention Centre, Nanaimo
Jun 15 Vancouver Grain Exchange Golf Tournament
Ship of the Week
Isla De Cedros
A regularly scheduled caller on the port of Vancouver, Isla De Cedros, is operated by Baja Bulk Carriers located in San Diego. Her regular employment is to load sea salt at Cedros Island Mexico for delivery to customers on the U.S. and Canadian west coasts.
Built 1982 by Koyo Dockyard, Mihara, Japan
LOA 223m
Beam 32m
GRT 34,405
DWT 60,732 MT
Former names: Miyajima Maru, Poseidon Breeze, Titian Jaya
Managers: Fairmont Shipping, Hong Kong.
Loading in Isla De Cedros, Mexico (left) and discharge operations to barge in Burrard Inlet
Isla De Cedros is a converted bulk carrier that is now a purpose converted “hybrid” self unloader using grabs to lift salt into her discharge system which in turn loads barges by conveyor. On average she brings 60-65,000 MT of salt from Mexico for discharge to barges. The ship is owned by Mitsui OSL Lines (MOL) and is on long term charter to BBC (Baja Bulk Carriers) until 2014 when she is scheduled to be replaced. DPW are the long term contractual stevedores for the discharge operation. Predecessors in the trade were the vessels Berkshire, Percy Jordan, Argyll, Maizuru Maru, and Serenity.
Puerto Morro Redondo, close to the southeastern point of the island (pictures below centre and right) is a small company town, purpose built by the Mexican Government and Mitsubishi Corporation to house the workers of the salt-transshipment facility on the island. Salt from the salt evaporation ponds of Guerrero Negro on the Baja California peninsula is taken by barge to a deepwater salt dock near Puerto Morro Redondo where it is loaded for export.
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