COS Weekly News - 19 July 2013
COS News – Week ending 19 July 2013
Issue No. 269
WESTSHORE BERTH ONE TEMPORARILY OUT OF SERVICE
Berth one at Westshore Coal Terminal is temporarily out of action following a small fire in one of the bulk loaders early on Tuesday afternoon. There were no injuries resulting from the fire which took about 25 minutes to extinguish, however, as can be seen from the picture, it did generate a lot of smoke and was visible over a wide area. It is hoped to have the system back up and running by the middle of next week.
CN ANNOUNCES PLANS TO DE-STAFF RAIL BRIDGES
Much to our industry’s surprise CN announced Monday that it will phase out the system of having observer-operators posted at three movable span bridges in the Lower Mainland including the Second Narrows rail crossing, New Westminster and Lulu Island bridges. Instead, all three bridges will be monitored by camera, and raised and lowered as needed from a central location. Any changes to the operation of the Second Narrow bridge operations will have an impact on the Movement Restricted Area established in 2010.
PMV INTRODUCES NEW GPS DASHBOARD
In early 2013, Port Metro Vancouver announced ‘Smart Fleet’, a three year action plan to improve collaboration, reliability and long-term sustainability of the container truck sector. PMV has now equipped 700 TLS licensed container trucks with GPS transponder units, represents approximately 50% of the fleet, and has now made available a new, real-time “GPS Dashboard” providing the most current status of road and average in-gate wait times based on the previous hour, as well as the marine container terminal turn times. The GPS Dashboard and guidance document can be viewed at www.portmetrovancouver.com/GPSDashboard.
ILWU DISPUTE WITH COLUMBIA RIVER GRAIN TERMINALS DRAGS ON
The ILWU picketing of grain exporters Marubeni, Mitsui and Louis Dreyfus in Vancouver Washington and Portland continues to be an ugly affair. The terminal imposed lockout has now lasted for five months as replacement workers and the security personnel hired to protect them face increasingly violent threat and all manner of taunts. The ILWU also complained this week that a proposed safety zone on the Columbia River imposed by the U.S. Coast Guard provides taxpayer funded security for vessels carrying shipments from the affected terminals. The union is protesting that the safety zone will push their members so far from transiting vessels that they will not be able to make it clear to crew that they are effectively crossing a picket line. The grain terminals continue to insist on an agreement with labor savings equivalent to those at competing terminals in Kalama and the new EGT facility in Longview, Wash. On the other hand, the ILWU seeks a contract similar to that signed in February with Temco, a Cargill Inc. and CHS Inc. joint venture.
New charges were also laid against ILWU Local 8 (Portland) on June 28 alleging continued slowdowns at the port’s container terminal operated by ICTSI. The union is barred from slowdowns at Terminal 6 under an earlier injunction issued last year. The dispute is a continuation of disputed jurisdiction with the International Brotherhood of Electrical Workers members who plug, unplug and monitor refrigerated containers.
DOWNLOAD PMV’S NEW FREE APP
Port Metro Vancouver has launched a new app for Apple iOS and Android devices. The free app is packed with helpful information, including how you can identify the different types of ships in the harbour, and how the Port contributes to our community and facilitates our quality of life. There’s even a fun photo frame that you can use to have a personalized picture with Port Metro Vancouver’s lovable mascot, Salty!
BCMEA TAKES DELIVERY OF NEW CRANE
The first of two partial crane shipments destined for the British Columbia Maritime Employers Association’s new Waterfront Training Centre in Richmond, BC arrived this week in Hamilton, ON with the MV Federal Seto from Antwerp.
US & CANADA – HEALTH OF THE SALISH SEA ECOSYSTEM
The US Environmental Protection Agency (EPA) and Environment Canada jointly released the report entitled “Health of the Salish Sea Ecosystem”. The report shows mixed trends for the Salish Sea, which consists of waters of the Strait of Juan de Fuca, Puget Sound, and Strait of Georgia. Some indicators, such as fine air particulates, are improving, while others, such as Chinook salmon, are declining. The report will help the two agencies and other stakeholders identify priorities for future actions in this ecosystem.
WESTWARD SHIPPING PROMOTES FELLIS
Ralph Steffenhagen, President and CEO of Westward Shipping Ltd. is pleased to announce the Marc Fellis has been promoted to Vice President, Marine Operations. Marc has 32 years of operational experience with Westward Shipping and was elected as a director of the Chamber of Shipping this year and currently serves as our Ship & Port Operations Committee Chair. Congratulations Marc!
FEDERAL CABINET SHUFFLE
On July 15th, Prime Minister Stephen Harper made several changes to the federal cabinet and we are pleased to see strong representation by our BC Ministers.
BC Minister James Moore received a major economic portfolio as he moves from the Ministry of Canadian Heritage to be Canada’s Ministry of Industry. His role will be vitally important in view of the new projects planned for the West Coast. Abbotsford MP the Honourable Ed Fast remains the Minister of International Trade and Minister for the Asia-Pacific Gateway, leaving BC with two major economic portfolios. Vancouver Island North MP John Duncan is back in cabinet as the government whip. The other new BC minister is Kerry-Lynne Findlay, was appointed Minister for National Revenue.
Of note another newcomer, Kellie Leitch, becomes the Labour Minister and Lisa Raitt been appointed the new Transport Minister. The Honourable Vic Toews, has stepped aside leaving the Public Safety Ministry to another newcomer to cabinet, Steven Blaney. Former broadcaster and Minister of Environment, Peter Kent is replaced by former Health Minister Leona Aglukkaq.
CUSTOMS NOTICE 13-017
Canada Border Services Agency has issued a new Customs Notice, 13-015 Transforming Client Outreach. The notice advises that traditional services offered by senior trade compliance officers will no longer provide walk-in counter service to the public, nor deliver seminars, information sessions or workshops, nor participate in trade shows. CBSA has confirmed that this notice relates solely to functions/activities performed by regional trade operations and has no impact on the marine front counter.
MARITIME LABOUR CONVENTION TO TAKE EFFECT AUGUST 20
Notwithstanding a resolution adopted by the ILO Diplomatic Conference in 2006 which recommends that port states take a pragmatic approach to enforcement for the first 12 months following entry into force worldwide, some port states will be legally entitled to exercise port state control to check compliance with the new Maritime Labour Convention as from 20 August this year. The International Shipping Federation has therefore prepared a simple guidance document to the convention which is attached to this week’s newsletter. To date 39 countries representing 69% of the world’s GRT have ratified the convention. In July 2010, Canada was the 10th country to do so.
ALDEBO CREW UPDATE
Albedo sinks as Naham 3 stands by (left) and pirates in defensive mode as a naval helicopter surveys the scene
As we reported in last week’s newsletter, the small hijacked Iranian owned, Malaysian flagged, container ship Albedo has sunk off the coast of Somalia. The crew of the vessel are from India, Bangladesh, Sri Lanka, and Iran and have been held captive since being hijacked in November 2010. Reports last week indicated that both hostages and captors had drowned in the sinking with two empty lifeboats photographed on a nearby beach. Information now received suggests that 11 of the 15 crewmembers may have survived after being transferred to the fishing vessel Naham 3 which was seized by pirates in March 2012 and which was alongside Albedo as she sank. The fishing vessel appears to be operating as some sort of prison ship with an estimated 29 seafarers from China, Indonesia, Cambodia, Taiwan, Vietnam and Philippines being held onboard. She is being closely shadowed by naval forces.
Also this week, pirates attacked the product tanker Ocean Centurion (above) 45 miles from Lome, Togo, West Africa, injuring three crew and briefly taking two hostages. The ship was thoroughly looted, before the two hostages were released. The vessel was later escorted into Lome by local naval vessels (better late than never perhaps).
ANOTHER CONTAINER VESSEL FIRE
Hot on the heels of the break up, fire and eventual sinking of MOL Comfort last week, the small German container vessel Hansa Brandenburg of 1,740 TEU capacity was abandoned 200 miles north-east of Mauritius this week following a serious fire. The vessel’s 17 crew members were rescued and were taken to Port Louis by the Donai Trader, a 2,700 TEU capacity vessel which diverted to the scene. The vessel was reportedly on passage from Singapore to Durban when a fire broke out in a container on deck and rapidly spread. Latest reports indicate that Five Oceans Salvage and SMIT Salvage have been appointed by owners head to the scene.
COSTA CONCORDIA MASTER GETS HIS DAY IN COURT
The world’s most infamous current day ship’s Master, Captain Francesco Schettino (above right) of Costa Concordia, had his first day in court in Grosseto, Italy this week. He faces up to 25 years in jail if found guilty of charges laid, however he is seeking to circumvent that possibility with a plea bargain. Five other members of the crew, the ship’s first officer, and three members of a crisis unit set up by Costa Cruises to deal with the casualty, were originally indicted but had their plea bargains accepted. Costa Cruises was also fined $1.3m after accepting limited responsibility.
REACTION TO BRAZIL PORT REFORMS HEATS UP
Recurring strikes are resulting in chaos at Brazil’s largest port of Santos. The container ship Maersk La Paz was invaded and occupied by port workers for a while late last week despite warning shots from security guards. Port workers are attempting to coerce port management into accepting workers belonging to the union and casual labor pool (OGMO) rather than allow independently hired staff. DP World and Odebrecht Transport are the majority shareholders in the US$1 billion Embraport container terminal at the centre of the dispute which opened for business on July 2. Back in February, port workers invaded the Zhen Hua 10, a crane delivery vessel that had arrived at Embraport laden with container gantry cranes and 11 RTGs. That occupation lasted nearly three days.
PANAMA ARRESTS NORTH KOREAN WEAPONS SHIP
Panama this week arrested the North Korea general cargo vessel Chong Chon Gang which was suspected of carrying undeclared weapons hidden in containers below bags of sugar. The reports proved to be dead right and even Panama’s President Ricardo Martinelli tweeted pictures of the weapons find and paid a personal visit to the vessel. A security expert identified the parts as radar systems for Vietnam era, Russian-made surface to air missiles whereas Cuba, from where the vessel originated, claimed that the vessel was carrying aging weapons for repair. Sadly, when Panamanian officials began looking inside the containers the ship’s captain became violent and tried (unsuccessfully) to slit his throat with a knife according to police. All 35 members of the ships’ crew were arrested, charged, and are under detention at a former US Army Base. North Korea has long been subject to sanctions on arms shipments on account of UN opposition to that country’s nuclear weapons program.
AUSTRALIAN GOVERNMENT GETS TOUGH ON PEOPLE SMUGGLING
The Australian Government has announced that all future asylum seekers arriving in Australia by boat will be sent to Papua New Guinea (PNG) for processing and resettlement and none will be allowed to stay in the country. Prime Minister Kevin Rudd gave what he categorized “a clear and undiluted message to every people smuggler in the world that your business model is basically undermined”. In return, the government announced new aid to PNG for hospitals and universities and said it would pay unspecified “resettlement costs” for the refugees as well as bearing the costs of the expansion and upgrade of the Manus Island processing centre. The recent record of illegal boat arrivals is:
- 2010: 134 boats carrying 6,535 people
- 2011: 69 boats, carrying 4,565 people
- 2012: 278 boats carrying 17,202 people
- 2013 (figures up to 16 July): 218 boats carrying 15,182 people
The tightening of policy, which resulted in a riot by detainees at the Manus Island processing centre, follows the loss at sea of hundreds of lives as people smugglers using small and hopelessly unseaworthy boats to try and beat the system in exchange for extortionate payments from desperate people.
UK CHAMBER SEEKS NEW LEADER
Mr. Mark Brownrigg, Director General of the UK Chamber of Shipping has announced his retirement to take effect at the end of 2013 after 40 years with the association. Since the Chamber’s CEO, Mr. Angus Frew, is also leaving to head up BIMCO, the intention is to combine the two roles into a single successor to both Mr. Brownrigg and Mr. Frew. Mr. Brownrigg, was awarded an OBE for services to the maritime industry in 2010 and is credited with the government’s introduction of a tonnage tax in 2000 which laid the foundation for the resurgence of the “Red Ensign” in international shipping. The UK Chamber will co-host London International Shipping Week in September, which is designed to promote London’s role as a maritime cluster.
FIRST DRONE LANDING ON AIRCRAFT CARRIER
An Aerial Vehicle (drone) last weekly successfully executed the first unmanned arrested landing on an aircraft carrier. History was made with the landing of an X-47B Unmanned Combat Air System (UCAS) on July 10 onboard the USS George H.W. Bush (CVN 77) off the coast of Virginia. The landing was the beginning of the final part of three at sea test periods for the X-47B program following a decade of U.S. Navy unmanned integration trials.
NATO VISITS CHINESE HOSPITAL SHIP
Last weekend a delegation of medical specialists from the NATO counter-piracy warship HNLMS VAN SPEIJK made an invited visit to the Chinese hospital ship CNS Daishandao which in English translates to Peace Ark.
The Chinese ship is on a five-month tour of the Far East and Indian Ocean and is currently in the Gulf of Aden to provide medical support to counter-piracy forces in the region. Peace Ark was our “Ship of the Week” on December 17 2010.
MR. STEN ALLAN OLSSEN
As regular readers of our newsletter are aware, we like to acknowledge the passing of great figures in our industry. A worthy mention is therefore made of Sweden’s Stena Group founder Mr. Sten Allan Olsson who has died aged 96. Having been born in 1916, Mr. Olsson’s first venture into shipping began in 1962 when he entered the Baltic Sea ferry trades. The Stena Group now spans a diverse range of businesses including sizeable property holdings. In the shipping sector, Stena Bulk, together with Concordia Maritime, is Sweden’s largest tanker company and is renowned for innovation in all aspects of vessel design and operations. Stena Line is one of the largest independent ferry operators in the world whilst Stena Drilling is Sweden’s sole domestically controlled off-shore drilling business. Mr. Olssen’s legacy is one of Sweden’s largest family-owned groups of companies with more than 20,000 employees and a turnover of around $8.9bn. Mr Olsson is survived by his children Madeleine, Dan, Stefan and Christofer.
BIMCO AND WCO SIGN MEMORANDUM OF UNDERSTANDING
BIMCO and the World Customs Organization have today renewed their close relationship through the signing of a new Memorandum of Understanding (MoU) in order to enhance and strengthen their co-operation to adopt mutually relevant and useful guidance and advice within the shipping industry. It will be used as the overarching agreement for BIMCO to review its existing individual MoUs with 15 different national customs unions covering counter drug smuggling agreements.
BIMCO has been at the forefront of supply chain and ship security within the shipping industry, advising and briefing ship owners on countering illegal maritime activities for the past two decades. Today, shipping and seafarers are subject to all sorts of security threats and a broad range of maritime crime and it is obvious that customs authorities and ship owners have a shared interest in collaborating in an effort to curtail the proliferation of these damaging activities.
On the occasion of the signing of the Memorandum of Understanding between the World Customs Organisation and BIMCO, BIMCO Secretary General Torben Skaanild said:
“Today’s signing of a revised and renewed MoU to reinvigorate both our relationship with the WCO and the industry’s role in combatting illegal maritime activities, lays the foundation for much closer co-operation between ship owners and customs authorities. It is hoped that our future joint efforts – as facilitated by this MoU – to counter the modern threats to the supply chain, will significantly heighten the security level for seafarers, ship owners, port states and society in general, especially in relation to drug smuggling.”
The Baltic Dry Index closed quietly on Thursday on 1146 points compared to 1139 points last week and 1103 points the week previously.
Cape Size Panamax Supramax
Index 2006 1165 897
Last week 2047 1062 901
Spot time charter $13,700/day $9,300/day $9,400/day
One week ago $14,100/day $8,400/day $9,400/day
Containers: Shipping companies are seeking clarification from China’s “Ministry of Finance and State Administration of Tax” regarding a recent circular which it initially said would result in a VAT of 6% being applicable on ocean transport service charges. Circular 37, “Notice on Tax Policy Concerning Nationwide Implementation of VAT Pilot Programme for Transport and Modern Services Sectors” is scheduled to take effect on August 1 nationwide.
Tankers: Earnings for VLCCs from the Arabian Gulf to Asia have dived by $10,000 per day over the past week as the July loading program concluded with all positions covered. Vessels are now being fixed at around $16,000 per day, down from $26,000 per day just a week ago.
VANCOUVER TRANSPORTATION CLUB NSR PUB NIGHT
Jul 19 – Tonight the Vancouver Transportation Club will hold its NSR (No Special Reason) Event at Moose’s Down Under once again from 5pm. Tickets are $20 and can be purchased at the door.
THE PLIMSOLL CLUB BASEBALL & BBQ AT NAT BAILEY STADIUM
Aug 15 – The Plimsoll Club invites you to help cheer on the Vancouver Canadian as they take on the Everett AquaSox. Included with your price of admission is the BBQ picnic in the park. To reserve your tickets go to: http://www.plimsollclub.ca/index.php/events.
THE VANCOUVER TRANSPORTATION CLUB GOLF TOURNAMENT
Aug 15 – VTC will host its 2013 Annual Golf Tournament at Meadow Gardens Golf Club. To register visit their website at http://www.vancouvertransportationclub.com
ASSOCIATION OF CANADIAN PORT AUTHORITIES CONFERENCE
Aug 18- 21 – This year the Nanaimo Port Authority will host its 55th annual ACPA Meeting and Conference in Nanaimo, BC this year. The theme will centre on Building Partnerships. For more information on the conference visit: http://www.acpa2013.ca/index.html.
2013 COAL CONFERENCE
Sept 11 – The Coal Association of Canada will hold its annual conference, trade show and golf tournament between September 11 and 13th at the Westin Bayshore Hoel in Vancouver, BC. Details can be found at: http://www.cvent.com/events/cac-2013-conference/event-summary-80c6682b8e79413eabf598c0264e0bbf.aspx
2013 WEST COAST PULP CHARITY INVITATIONAL
Sept 12 - This annual event is now open for registration and sponsorship. This golf tournament which started by forestry executives in 2005 has raised over $500,000 for the Raise-a-Reader campaign in BC. For more information visit: http://westcoastpulpcharity.com/
2013 ANNUAL CYCLING FOR SEAFARERS
Sept 14 – Join us once again in the Mission to Seafarers’ annual cycling event. Choose either the 100km or the 40km route and help raise funds to support the seafarers’ centre. At the end of the ride, participants are transported by Royal Vancouver yachts from Belcarra Park in Port Moody back to the Mission for a fabulous BBQ. It’s a great day and already there are over 30 riders registered. Don’t miss out - register today at http://www.flyingangel.ca/donations/add/8.
PORT METRO VANCOUVER LOGISTICS INTERFACE: LOOKING TO THE FUTURE
Sept 18 - The Pacific Chapter of the Chartered Institute of Logistics & Transport (CILTNA) has organized a half day session entitled, Port Metro Vancouver Logistics Interface: Looking to the Future. The preliminary agenda for the half-day session and registration details are attached.
CIFFA WESTERN REGION FCA GALA DINNER
Sept 20 – The Canadian International Freight Forwarders Association will host its gala dinner at the River Rock Casino to celebrate and honour winners of the Carrier Awards and celebrate CIFFA’s 65th Anniversary. For more details visit: http://www.ciffa.com/calendar_viewevent.asp?id=433.
BUSINESS OF SHIPPING – FULL DAY COURSE
Sept 26 – Chamber of Shipping and the Institute of Chartered Shipbrokers full-day Business of Shipping Course. The program is being finalized and will be available shortly.
WISTA INTERNATIONAL CONFERENCE
Oct 2 – The Women’s International Shipping & Trading Association will host its 33rd International Conference titled, Navigating the Seas of Change, in Montreal between October 2 – 4th. For sponsorship opportunities or to register, visit: http://www.wistacan.net/
Jul 24 Carrier Code Discussions with CBSA @ 15:00
Jul 31 Plimsoll Club Board Meeting @ 12:00
Jul 31 An Evening at the Museum – SOLD OUT
Aug 5 BC Day – Statutory Holiday – Office Closed
Aug 15 Vancouver Transportation Club Golf Tournament
Aug 15 The Plimsoll Club Annual Baseball Picnic in the Park
Aug 18 Association of Canadian Port Authorities Conference
Sep 2 Labour Day – Statutory Holiday – Office Closed
Sep 4 COS Board of Directors Meeting @ 11:30
Sep 11 ICS Canada Board Meeting @ 12:00
Sep 12 COS Ship & Port Operations Committee Meeting @ 12:00
Sep 12 West Coast Pulp Charity Invitational
Sep 18 CILTNA Conference – Managing PMV Logistics Interface
Sep 18 COS Liner Committee Meeting @ 10:00 (tbc)
Sep 19 COS Navigation & Pilotage Committee Meeting @ 10:00
Sep 20 CIFFA Western Region FCA Gala Dinner
Sep 26 PACMAR / NANS Meeting @ 10:30
Sep 26 Business of Shipping Course – Full Day
Ship of the Week
Departing Busan, first load port on her maiden voyage - Maersk McKinney-Moller
As the world’s largest ship began her maiden voyage in Busan this week, the choice for our “Ship of the Week” was entirely predictable. The first of Maersk’s 20 Triple-E class 18,270 TEU vessels named after recently deceased Mr. Mærsk McKinney-Møller at age 98, officially entered service on embarking on her maiden voyage in Busan. She is currently the largest in the world and the largest container ship ever built.
Built by Daewoo Shipbuilding & Marine Engineering (DSME) Shipyard in Okpo, South Korea
Laid down in November 2012
Launched in February 2013
Christened on June 14 2013 by Mrs. Ane Mærsk Mc-Kinney Uggla, youngest daughter of Mr. Mærsk Mc-Kinney Møller and now company Chairperson
Delivered to Maersk Line on July 3 2013
GRT 194,849 tons
DWT 194, 153 MT
Main engine: 2 × MAN-B&W 8S80ME-C 9.2 giving 2 x 29,680 KW
Propulsion: 2 shafts to fixed pitch propellers
Speed: 23 knots
Capacity 18,270 TEU
Crew: 22 now but can theoretically be reduced to 13
Registered in Denmark
Cost $185 million
The size of the Triple E Class is truly staggering and only the ULCC Class of tankers has exceeded them in dimensions. Since none of those tankers remain in service, the crown is now held by the new Mærsk McKinney-Møller. The Triple-E vessels will operate in a loop on the world’s busiest trade lane, carrying cargo between eight ports in Asia and six in Europe (Busan, Kwangyang, Shanghai, Ningbo, Yantian, Hong Kong, Singapore, Tanjung Pelepas, Tangiers, Rotterdam, Bremerhaven, Gdansk, Aarhus, and Gothenburg).
Below are details of the two Masters and two Chief Engineers assigned to alternate charge of the vessel.
On a side note, China’s Ministry of Transport has issued new guidelines to the country’s ports on how to receive 18,000 TEU container ships. The government has revised its “Design Code of General Layout for Sea Ports for Containerships of 120,000 dwt or larger”, an earlier version issued only in 2008 being applicable to vessels of up to only 12,500 TEU.
COS Weekly News - 12 July 2013
COS News – Week ending 12 July 2013
Issue No. 268
VACANCY AT THE CHAMBER
PACIFIC NORTHWEST LNG THE LATEST TO APPLY FOR EXPORT LICENSE
As noted in last week’s newsletter Pacific NorthWest LNG, which is 90% owned by Malaysia’s Petronas has applied for a license from the National Energy Board (NEB) to export 19.7 million tons of LNG per year for 25 years starting in 2019 from the facility proposed for Lelu Island, Prince Rupert. The remaining 10% of ownership lies with Japan Petroleum Exploration Company whilst Progress Energy will provide the natural gas for the plant. Projected investment is between $9 and $11 billion. Other projects having already received export licenses are:
- LNG Canada which was granted a 25-year licence in February to export 24 million tons of LNG per year
- The Douglas Channel Energy project which was granted a 20-year licence in February 2012 to export 10 million tons of LNG per year
- Kitimat LNG which was granted a 20-year licence in October 2011 to export 10 million tons of LNG per year.
Side by side with Pacific NorthWest LNG's application are those of BG Group which is seeking to export 21.6 million tons of LNG per year and Imperial Oil and ExxonMobil Canada's application seeking to export 30 million tons of LNG per year. Both applications were submitted last month.
FRASER RIVER PILOTS ANNOUNCE NEW EXECUTIVE GROUP
Following their annual elections, the executive committee of the Fraser River Pilots has announced the appointment of Capt. Mike Armstrong as Chair. The new committee comprises:
Capt. Mike Armstrong
Capt. Dave Marjoribanks
Capt. Randy Smigel
Capt. Bob Gibney
The committee made special mention of Captain Dave Marjoribanks for his work as the previous Chair of our committee.
CSA TO TEST BALLAST WATER TREATMENT SYSTEMS
The Canadian Shipowners Association (CSA) has announced a partnership with the Great Ships Initiative (GSI) to test ballast water management systems in the fresh waters of the Great Lakes and St. Lawrence Waterway. CSA, on behalf of its members, is searching for practical ballast water management solutions at a time when U.S. and Canadian regulatory requirements are contradictory and has therefore elected to partner with the testing facility to seek technical solutions at GSI's ballast treatment facility in Superior, Wisconsin. Thanks to the implementation of best practices, no new invasive species have been detected in the GLSLW or Canadian territorial waters since 2006. Test results are expected by the end of this August.
K+S POTASH CANADA AND CP ENTER INTO LONG-TERM CONTRACT
K+S Potash Canada and Canadian Pacific yesterday signed an exclusive long-term volume-based contract on the transportation of potash products from K+S' Legacy Site. The contract is for potash to be moved from the Legacy Site, near Moose Jaw and Regina in Saskatchewan, to a Western Canadian port of export for overseas destinations and via CP's extensive network to domestic Canadian and US markets. The contract was signed in K+S Potash Canada's headquarters in Saskatoon.
FOSS REORGANIZES AND IS TO REMAIN IN THE COLUMBIA RIVER AFTER ALL
Foss Marine Holdings announced last week that it is merging all of its operations and resources – including Foss Maritime, AMNAV, Young Brothers, Hawaiian Tug & Barge and Cook Inlet Tug & Barge under a single name: Foss Maritime Co. Under the new structure, the company will reorganize into four divisions namely Marine Transportation Services, Technical & Engineering Services, Washington Harbor Services and Liner Barge Services. In addition, the sale of Foss’ business in the Columbia River to Tidewater Barge Lines (reported in our weekly newsletter April 26) did not go through and has been shelved.
CBSA ISSUES PANAMA CANAL PORT CODE
Canada Border Services Agency’s Advance Commercial Information (ACI) Policy Unit had previously received inquiries from our marine clients regarding the proper procedures for the transmission of ACI cargo and conveyance data for a vessel that arrives in Canada, then enters international waters and transits the Panama Canal, while on route to a subsequent port of call in Canada. Below is an example of a routing via the Panama Canal which could occur during a voyage/trip for marine carriers.
A vessel arrives in Halifax, NS; some cargo is offloaded in Halifax, while some remains on board as it is destined to Vancouver, BC. Vessels may travel from Halifax to Vancouver through the Panama Canal if the more common procedure of off-loading the cargo and putting it on board a train or highway conveyance is not available; this typically occurs in the winter months.
When the inquiries were originally received the United Nations (UN) had not yet implemented a port code (UN/LOCODE) for the Panama Canal, so therefore the ACI Unit was tasked with coming up with an alternative solution. However, as of March 2012, a port code was created by the UN for the Panama Canal (PC PCN). The port code for the Panama Canal (PC PCN) has been added to our systems and may be transmitted by carriers in their routing when submitting their ACI cargo transmissions.
KPMG APPOINTED TO SUPPORT NSPS PROJECTS
The Government of Canada announced the selection of KPMG to provide support as a third-party expert for upcoming National Shipbuilding Procurement Strategy (NSPS) projects. This contract is part of the Government of Canada’s commitment to apply smart procurement’s guiding principles during the NSPS process.
This task-based, three-year contract, with an option to extend for up to ten years, was awarded with an initial estimated value of $500,000. The total contract value will be adjusted over time as new work packages are identified and approved. The contract will enable assistance with the NSPS projects, including:
- support to Canada’s contract negotiations, which may include providing advice and/or opinions regarding industry trends, norms and standard practices;
- assessment of cost proposals related to project implementation; and
- provision of advice on procurement and project management activities.
MOL COMFORT – BOW SECTION CATCHES FIRE AND SINKS
Despite salvors having secured the fire-fighting assistance of the Indian Coast Guard, a fire that erupted on the surviving bow section of the container ship MOL Comfort this past weekend raged out of control for four days until the inevitable occurred on Wednesday evening local time – she sank under the weight of water applied in 4000 meters of ocean.
Whilst there was no loss of life, this unfortunately robs investigators of the opportunity to better understand how the vessel came to break up in the first place and what (if any) longitudinal strenghtening may have avoided this extremely expensive and concerning casualty. Based on inspection of MOL Comfort’s six sister ships, Class NK has undertaken to issue a preliminary report by September.
On a more positive note, Emma Maersk will return to service on July 18 after repairs five months of repairs following the flooding of her engine room as she began a Suez Canal transit on February 4. The cause of the incident was identified as fractured steel work in way of her stern thruster compartment.
EU PUBLISHES PLANS FOR GHG DATA COLLECTION
The European Union (EU) has launched a proposal that would create an EU wide legal framework for collecting and publishing verified annual data on CO2 emissions from all ships over 5,000 GRT calling at EU ports, irrespective of port of registry. The EU proposal, if adopted, would effectively establish an EU wide system for the monitoring, reporting and verification (MRV) of CO2 emissions. The target implementation date is 2018 “as a building block for a global system”. The EU target is to reduce GHG emissions by at least 20% by 2020 compared to 1990 levels, or by 30% in the context of a global deal but also to reduce emissions from bunker fuels by at least 40% by 2050 compared to 2005 levels.
CALL FOR ALL VESSELS TO BE TRACKED
The Global Ocean Commission, an independent high level initiative on the future of the oceans, has called for all vessels to be identifiable as part of a global tracking system “in order to close a security loophole on the high seas”. Recently completed studies have apparently highlighted the link between a lack of unique identification and tracking technology and criminal activity, such as human trafficking, illegal fishing and terrorism. Currently, all passenger ships and merchant vessels above 300 GRT must be equipped with the Automatic Identification System (AIS) which broadcasts position, course, speed and vessel type. The commission issued its recommendations for vessel monitoring at the end of two day meeting in New York last week and is expected to publish its final report in mid 2014.
PANAMA TO CONSIDER FURTHER ENLARGEMENT
At the American Association of Port Authority’s (AAPA) Latin American Congress held in Bogota, Colombia, last week, the Panama Canal Authority (ACP) revealed that it is studying the construction of a fourth set of new locks to run parallel to the third set of locks presently under construction as part of the current US$5.2 billion expansion project. Such locks would permit the passage of Super Post-Panamax ship which right now constitutes 3% of cargo units but which will increase to 9% by 2016. Even so, Nicaragua has announced its intention to press ahead with its own canal at an estimated cost of US$40 billion with construction to begin sometime in 2014.
SINGAPORE TURNS THE SCREW ON BUNKER SUPPLIERS
Singapore’s Maritime and Port Authority (MPA) is continuing with its efforts to clean up the country’s bunker suppliers, some of whom persist in flouting rules governing third party use of licensing agreements. In the past two weeks MPA has cancelled the licenses of Golden Lights HS Bunkering and Shing Li Shipping and Coast-Channels Marine after they both allowed another company to use their Bunker Delivery Note (BDN). Palmstone Petroleum is the latest company to fall out of favour and it too will soon need to find a new line of business.
Meanwhile this week, it was announced this week that Lloyd’s Register has won a Port Authority contract to develop operating procedures and technical standards for LNG bunkering at the Port of Singapore. The contract requires Lloyd’s Register to identify technical specifications and LNG bunkering procedures, but also to develop crew competency for LNG bunkering at the port.
SHIP HELD BY SOMALI PIRATES SINCE 2010 SINKS – 12 CREW UNACCOUNTED FOR
A truly dreadful story within days of our commemorating the Day of the Seafarer. EU Naval command announced earlier this week that the Iranian owned, Malaysian flagged container ship Albedo which had been held by Somalia pirates since November 2010 with 15 crew members onboard, sank in rough weather whilst still at anchor. At least six pirates and two crew members are known to have been lost with the fate of the others unknown. Seven Pakistani crew, including the Master were released in July 2012 after a ransom of US$1.1 million was paid, shortly after an Indian crew member had been shot dead “to hasten negotiations”. An air search revealed two of the ship’s lifeboats upturned and empty on a nearby beach (above center and right).
The full horror of what the crew were forced to endure became apparent following the release of the seven crew members last year. The Chief Officer described how the pirates repeatedly beat them with pipes and the butts of their AK-47 assault rifles. They also used pliers to rip out the webbing on the sailors' palms. Other torture tactics included keeping crew members in solitary confinement inside containers whilst others were packed into a small swimming pool and left to sweat it out for days without food, water or sanitary relief. The tragedy is that after all this, it now seems that most, if not all, were lost with the ship and it is unlikely that families will receive any form of compensation for their loss given that the owner was bankrupt and the ship no longer insured. The vessel had a crew of 23 when it was first hijacked about 900 nautical miles east of Mogadishu, Somalia.
Also this week, three Somalis were convicted of piracy, kidnapping and murder in the 2011 shooting deaths of four Americans sailing in the Indian Ocean off of Oman. They could face the death penalty after they, and eleven others, all of whom pleaded guilty, boarded the unprotected yacht with apparent intent of holding the Americans for ransom. the hostages were killed by the pirates when the U.S. navy closed in on them.
CHINESE COMPANY TO BUY LLOYDS BUILDING
In a sign of the times, China's Ping An Insurance Group has agreed to buy the iconic Lloyd's Building in London for £260m ($388m). Opened in 1986 and home to the world's leading insurance market, the building was previously owned by the German asset management fund Commerz Real. In May, Chinese developer Advanced Business Park (ABP) signed an agreement worth £1bn to transform the Royal Albert Dock in east London into a business park whilst just last month, Dalian Wanda Group announced that it will invest £700m to develop a five-star hotel in London, the first such development to be operated by a Chinese company overseas.
QE2 TO SET SAIL FROM DUBAI TO ASIA FOR CONVERSION
Speaking of icons, it is reliably reported that four Chinese shipyards have been shortlisted for the contract to refurbish the Queen Elizabeth 2 (QE2) and convert her from a cruise ship into a floating hotel. After lying idle since 2008, she is currently being prepared to depart Dubai in October en-route to China under her own steam via Singapore and Hong Kong. The so called “QE2 project” which is a joint-venture between QE2 Shipping and the Singapore-based Oceanic Group, was first announced earlier this year when plans to relocate the vessel permanently, to an as yet undisclosed Asian city, were first announced.
PORT STRIKE HITS COSTA RICA
Thousands of protestors filled Costa Rican streets Wednesday rallying against the government of President Laura Chinchilla, as part of a national day of strikes called by unions and civic groups.
The countrywide protests included the capital city of San José, the port city of Limón, and dozens of others. Striking dockworkers in the Port of Limon held an 8-hour work stoppage. Protesters are objecting to allegations of widespread corruption, impunity of public officials, controversial concessions, the killing of environmentalist, Jairo Mora, a controversial Chinese-funded oil refinery planned for Moín, the case of the Crucitas open-pit goldmine, President Chinchilla’s use of a private jet linked to a Colombian businessman s investigated for drug trafficking, the border road with Nicaragua known as “La Trocha,” privatization of ports, the closing of a health clinic in Montes de Oca, social inequality, deteriorating public services, and more.
To the annoyance of their better halves, brokers are reportedly busy with their laptops on the beaches with the Baltic Dry Index running at an 18-month high after having risen by 60% since the start of the year. The index closed on a positive note to close on Thursday on 1139 points compared to 1103 points last week and 1115 points the week previously.
Cape Size Panamax Supramax
Index 2047 1062 901
Last week 1936 1012 932
Spot time charter $14,100/day $8,400/day $9,400/day
One week ago $12,800/day $8,000/day $9,700/day
Tankers: In a continuation of better news, VLCC rates out of the Arabian Gulf for the Far East are threatening to break $30,000 daily for the first time this year and more than double what they were this time last week. With the oil price having again broken the $100 per barrel mark this week, perhaps somebody knows something we don’t?
Jul 16 COS Ship & Port Operations Meeting @ 12:30
Jul 17 COS Liner Committee Meeting @ 10:00
Jul 17 Institute of Chartered Shipbrokers Meeting @ 12:30
Jul 18 COS Navigation & PIlotage Committee Meeting @ 10:30
Jul 31 Plimsoll Club Board Meeting @ 12:00
Ship of the Week
new multi-purpose vessel Shansi
Shansi is the first in class of eight multipurpose S 31 class vessels ordered by the China Navigation Company, a subsidiary of Swire Shipping. She was christened in March this year along with her sister ship Shantung. Shansi is the 201st new building of the China Navigation Company since it was founded in 1872.
Built by Zhejiang Ouhua Shipbuilding, Zhoushan, PRC
Owned and operated by China Navigation (Singapore) the Swire Group
GRT 24,700 tons
DWT 31,000 tons
Cranes: 4 x SWL 60 tons
Container capacity 916 TEU on deck and 1,202 on deck
Main engine 13,560 KW
Speed 15.5 knots on 29 tons/day
Shansi is designed for optimum efficiency in servicing of the company’s long standing liner trades between Australia and Papua New Guinea. Deliveries of a larger “W Class” vessel will begin in January 2014 with 12 ships ordered and four options to declare. These vessels will be built at the Chengxi Shipyard with a deadweight of 39,500 tons.
Not content to leave it at that, the company has ordered four “Chief Class” vessels with a further four options from Zhejiang Ouhua Shipyard for delivery in 2015 once the “S Class” vessels are complete. These vessels will be a smaller version of the S Class with a deadweight of 22,000 tons.
An earlier version of Shansi (above left) built in Malmo, Sweden, in 1950 and originally named Beranger until purchased by China Navigation in 1969. China Navigation has also expanded its presence in the Pacific after taking control of San Francisco based Polynesia Line (PLL). The company has held a 13% stake in PLL since 1979 but has now acquired the remaining shares. PLL operates the single ship Polynesia (above right) on a fortnightly service running between the US West Coast, Tahiti, American Samoa, Western Samoa and other Pacific Islands (nice run).
COS Weekly News - 5 July 2013
COS News – Week ending 05 July 2013
Issue No. 267
NANAIMO AND PORT ALBERNI SECURE NEW FUNDING FOR SHORT-SEA SHIPPING
Leader of the House of Commons, Peter Van Loan, on Vancouver Island this week
Nanaimo Port Authority (NPA) and Port Alberni Port Authority were in the news this week when Peter Van Loan, Leader of the Government in the House of Commons, on behalf of Ed Fast, Canada’s Minister of International Trade and Minister for the Asia-Pacific Gateway, Dr. James Lunney, Member of Parliament for Nanaimo—Alberni, Mr. Robert Bennie, Chair of Nanaimo Port Authority, and Mr. Don Ferster, Chair of the Port Alberni Port Authority, gathered on Wednesday for the announcement of a federal contribution of up to $4.65 million to modernize the Nanaimo Assembly. The focus of the upgrade is to eventually relocate the twice weekly barge service from Duke Point to DPW Vancouver to the Assembly Wharves. Upgrading of the dock will allow the use of a heavy mobile crane to transfer containers to and from barges. Federal funding will be matched by that of NPA. Port Alberni will receive up to $225,000 of funding towards a Container Trans-Shipment and Short-Sea Shipping Feasibility Study.
BC WELCOMES SIXTH LNG EXPORT APPLICATION
Pacific NorthWest LNG has submitted an export application with Canada’s National Energy Board (NEB). Pacific NorthWest LNG is a liquefied natural gas export operation proposed on Lelu Island within the District of Port Edward, near Prince Rupert. The facility would liquefy and ship natural gas from northeastern B.C to markets in Asia. Pacific NorthWest LNG is requesting to export 19.68 million tonnes of LNG annually for 25 years. To date the NEB has already issued export licenses to three other LNG proponents.
BUD STREETER RECEIVES CIMARE MEDAL OF EXCELLENCE
Last week during Mari-Tech in Halifax, Bud Streeter was awarded the Canadian Institute of Marine Engineering’s Medal of Excellence which recognizes an individual’s outstanding contribution to marine engineering in Canada, including technical innovation, sea-going service, substantial leadership in the industry or the teaching of marine engineering. Mr. Streeter is the Vice President of Lloyd’s Register in Canada and is generally known as the former Director-General of Marine Safety for Transport Canada.
NEW FMC CHAIR DISCUSSES THE “CANADA STUDY” AND HMT
Mr. Mario Cordeo (right) being sworn in as FMC Chairman
The recently appointed Chairman of the Federal Maritime Commision Chariman (FMC), Mr. Mario Cordero, has been speaking about the 2011 “Canadian Study undertaken as a result of an inquiry from members of Congress with regard to the diversion of cargo to Canada and Mexico” but also about the controversial Harbor Maintenance Tax (HMT). He advised that the FMC is not taking a specific position to the issues but did concede that “nearly everyone agrees that let's use the funds for their intended purpose". Referring to the Canadian study, Mr. Cordero described the common denominator when looking north to Canada and south to Mexico as the fact that both countries have a national freight policy. He went on to add “I think the Obama administration, Congress and the Department of Transportation are doing a lot of work on that issue”.
Chairman Cordero hails from Long Beach, California and was designated Chairman of FMC by President Obama on April 1, 2013 after serving as an FMC Commissioner since 2011. He previously served eight years on the Board of Harbor Commissioners for the Port of Long Beach and on his departure in June, more than 130 government leaders and dignitaries gathered to celebrate his appointment as the new FMC Chairman. The event was co-hosted by the Ports of Los Angeles and Long Beach on the preserved WWII battleship USS Iowa in San Pedro - perhaps to get him acclimatized for the battles that lie ahead?
SFO PILOT SUSPENDED FOR FIVE MONTHS
The San Francisco Bay pilot having the conduct of the tanker Overseas Reymar when she hit the Bay Bridge in January has been suspended for five months without pay. Captain Guy Kleess will also be required to undergo further training and 30 observation trips before his license will be eligible for restoration. He will then be on two years of probation. Bridge repairs are reported to have cost $500,000.
CBSA CUSTOMS NOTICE ON CARRIER CODES
Canada Border Services Agency (CBSA) has published Customs Notice 13-014 to outline the new requirements for carrier codes effective July 15, 2013. Letters are now being issued to existing carrier code holders to verify whether companies are still eligible to maintain their carrier codes under the new criteria.
UPDATED ASIAN GYPSY MOTH POLICY
The Canadian Food Inspection Agency has posted on-line revisions to the Asian Gypsy Moth directive, D 95-03: Plant protection policy for marine vessels arriving in Canada from areas regulated for Asian gypsy moth.
CUSTOMS CONTROLLED AREAS REGULATIONS FINALIZED
The Customs Controlled Areas (CCA) Regulations were published last Wednesday, June 19 in the Canada Gazette, Part II, Vol. 147, No. 13. The Canada Border Services Agency will now begin a three-phased implementation of CCAs at air, marine, rail and land ports of entry. The first phase will see CCAs implemented at Canada’s international airports in Toronto, Vancouver and Montreal. Phase two will include implementation at additional international airports, as well as major marine ports. The third phase of the implementation will designate CCAs at sufferance warehouses, rail, postal, and highway locations across the country.
COSCO CHAIRMAN WEI RETIRES
Capt. Weu Jiafu (left) and his successor Mr. Ma Zehua (right)
Captain Wei Jiafu has announced his retirement as chairman of China Ocean Shipping Group(COSCO) at age 63. Having reached maximum allowable retirement age for senior personnel in China’s state owned enterprises Captian Wei’s departure signals the end of a remarkable 20 years of service to the Group and to China. President Ma Zehua, formerly a VP with the China Shipping Group, has assumed the reigns as COSCO Chairman and Mr Ma’s deputy Mr. Li Yunpeng has been appointed as the new COSCO President.
Born in 1950 in Jiangsu province, Captain Wei attended Dalian Maritime University and Tianjin University before joining COSCO in the late 1960s as a ship’s radio officer. At sea he rose through the ranks to become a Master before returning ashore and taking a variety of executive roles both at home and overseas. Between 1992 and 1998 Captain Wei rose to become General Manager of the Chinese-Tanzanian Joint Shipping Co, Cosco Tianjin, and COSCO Bulk. He also oversaw the flotation of COSCO (Singapore) Ltd, the firm’s first venture into the international capital markets while President there from 1993 to 1995 before becoming President and CEO of the entire group in 1998. In 2011, his role changed to become chairman of the board and under his leadership the group has diversified into air and land logistics, shipbuilding and terminal operations that span the globe.
Three years ago the US House of Representatives for the first time honored a Chinese citizen, Captain Wei, as a ‘People's Ambassador of the United States’. Just last week, Captain Wei was in Greece when he vowed “I will encourage Chinese businesses to invest in your country” using the example of the artificial Palm-Island Hotel in Dubai to emphasize the extent of the projects that Chinese businesses have in mind for that country.
RONGSHENG SHARE TRADING SUSPENDED
Trading of shares in China Rongsheng Heavy Industries, China’s biggest privately-owned shipbuilder was suspended this week after it became known that the company has been forced to reduce its labour force by 8,000 workers (40% of its workforce) in recent months. The yard posted a loss of $93 million last year after three consecutive years of profits at as time when the Chinese shipbuilding industry is known to be struggling with orders for new vessels and price levels are well down on those of recent years. News of work force protests over the layoffs and late wage payments have been circulating for some weeks. In a Hong Kong exchange filing the company announced that Mr. Zhang Zhi Rong, its founder, formal chairman and largest shareholder, has granted an interest-free, security-free loan of $32.6m to top up its working capital.
Despite the predicament of Rongsheng, Platou is reporting that there has been a considerable increase in bulk carrier ordering in 2013 with more capacity added to the order book in the first half of this year (26 million tons) than in the whole of 2012. It’s pretty clear that low yard prices and prospects for a market rebound are driving the optimists to invest in new and more fuel efficient tonnage.
AUSTRALIAN NAVIGATION ACT 2012 COMES INTO FORCE
In what has been described as the biggest overhaul of the country’s maritime regulations in more than 100 years, Australia’s Navigation Act 2012 and Marine Safety (Domestic Commercial Vessel) National Law Act 2012 came into force on July 1. The ever vigilant Australian Maritime Safety Authority (AMSA) will administer both acts under which vessel owners face the prospect of increased financial penalties for non-compliance, potential exclusion from Australian ports of vessels with poor inspection histories and on the spot infringement notices for marine order offences. The new legislation replaces eight existing regulations with one set of national rules “in an effort to reduce red-tape”.
EGYPT SEEKING FURTHER SUEZ TOLL INCREASES
The political turmoil in Egypt continues and the country’s economy, such as it is, continues to disintegrate. Predictably the country is therefore looking to further fleece the one cash cow it still has available, namely the Suez Canal. The much criticized increase in transit costs of 2.5% in May, despite a 10% fall in traffic over the past year, does not seem to have helped the country’s decision makers to join the dots as to what is happening on the ground even as the government seeks further assistance from the International Monetary Fund. In the first quarter of 2013 to 3,929 vessels transited Suez compared to 4,347 vessels in the same period last year. Very notably, there were 106 fewer transits of containerships in the first three months of 2013 at 1,479 vessels — the lowest level in more than three years. Tolls from shipping generate the Egyptian government around $5bn a year with a standard ultra-large containership paying around $600,000 per transit.
MOL COMFORT BOW SECTION BREAKS FREE OF TUGS
Although the stern section has been lost, the bow section of MOL Comfort continues to float. However, efforts to tow it to port were interrupted for a while this week when the tow line parted in continuing poor weather. Smit Salvage Singapore is overseeing the recovery with three tugs currently in attendance. In reaction to the breaking up of the vessel, the International Association of Classification Societies (IACS) has announced the establishment of a working group to look at structural and design issues around post-Panamax containerships.
IMO SEEKS MORE INFORMATION FROM ITALY ON COSTA CONCORIDIA RECOMMENDATIONS
The 92nd meeting of the IMO’s Maritime Safety Committee (MSC) in London has focused on passenger ship safety, following the Costa Concordia casualty. Under MSC recommendations, as of January 1 2015 SOLAS regulations will formally require musters of newly embarked passengers before or immediately on departure, instead of within 24 hours, as is currently the case. The committee also approved new measures designed to improve the safety of passenger ships including harmonized bridge procedures across a fleet or fleets, securing heavy objects, stowing life-jackets, extending the use of video for passenger emergency instruction notices and following voyage planning guidance in the event of deviation.
On the investigation into Costa Concordia, the committee invited Italy to provide more information regarding the recommendation for double-skin protection of watertight compartments containing crucial equipment. It also endorsed the view that shoreside management is critical to developing and running an effective safety management system and invited member states to consider the mandatory application of evacuation analysis to non ro-ro passengerships.
RIGHTSHIP INSPECTION PROCEDURES
We thanks our colleagues at Lloyds Register for advising of the following bulletin issued by Rightship which is applicable to all dry cargo ship owners and operators following discussions, facilitated by Lloyds Register, between the Union of Greek Shipowners and RightShip.
A dry cargo ship inspection will be carried out by RightShip inspectors either when recommended by RightShip or when requested by the ship operator.
- On completion of any inspection, the RightShip Inspection Report, if listing any deficiencies, and following RightShip’s review and assessment, will then be sent to the ship operator for review, comments and to advise what actions will be taken by the operator to address any deficiencies.
- Reported deficiencies that are considered to be of a serious nature and of a potential impact to the safety of the ship, the crew and or the environment shall have to be brought by the operator to the attention of the relevant classification society or flag administration as appropriate and are to be dealt with to the satisfaction of class / flag.
- Confirmation and evidence of action taken to address any deficiencies will be provided to RightShip in order to close these deficiencies accordingly.
A copy of the RightShip Dry Cargo Ship Inspection Procedure flow chart can be downloaded here.
NEW SHIPPING MINISTER EMERGES FROM GREEK CABINET SHUFFLE
In the merry go round of Greek politics, the country finds itself with yet another new Shipping Minister in the form of Mr. Miltiadis Varvitsiotis, the previous incumbent having served for just one year, almost to the day. However, Mr Varvitsiotis, who was born in 1969, is no stranger to the shipping community, having been spokesman on shipping affairs from 2001-2004 for the current Prime Minister’s conservative New Democracy Party. Mr. Varvitsiotis holds a law degree and is well qualified having completed his postgraduate studies in international relations at Harvard before specializing in maritime and commercial law. It probably doesn’t hurt that he is also the son of long standing New Democracy Party member Mr. Ioannis Varvitsiotis but at least Greece has a shipping minister – a species at risk in today’s world.
After starting the week well, Capesize rates took a breather and The Baltic Dry Index fall back a little to close on Thursday on 1103 points compared to 1151 points last week and 1012 points the week previously.
Cape Size Panamax Supramax
Index 1936 1012 932
Last week 2120 994 950
Spot time charter $12,800/day $8,000/day $9,700/day
One week ago $14,500/day $7,900/day $9,900/day
Containers: Following a $400 increase on July 1, members of the Transpacific Stabilization Agreement (TSA) have announced a further rate increase of $400 per FEU for eastbound traffic effective August 1 and will weigh “further initiatives later this summer”. There is every expectation that the rate increases will stick, at least for a while, given the level of optimism surrounding the upcoming peak season.
Jul 10 COS Board of Directors Meeting @ 11:30
Jul 16 COS Ship & Port Operations Meeting @ 12:30
Jul 17 COS Liner Committee Meeting @ 10:00
Jul 17 Institute of Chartered Shipbrokers Meeting @ 12:30
Jul 18 COS Navigation & PIlotage Committee Meeting @ 10:30
Jul 31 Plimsoll Club Board Meeting @ 12:00
Ship of the Week
RRS James Cook – research vessel
The Royal Research Ship James Cook is operated by the UK Natural Environment Research Council (NERC). She was named after Captain James Cook, the British explorer by HRH Princess Anne, The Princess Royal. Captain Cook led three of the most significant voyages of exploration ever undertaken between 1768-79. On her maiden scientific voyage in 2007 she was involved in the discovery of what is believed to be the world's deepest undersea volcanic vents, in the Caribbean.
Laid down in January 2005
Built by Flekkefjord Slipp & Maskinfabrikk AS, Norway (hull built in Gdansk, Poland)
Delivered August 2006
GRT 5401 tons
DWT 2463 mt
Class; Lloyds +100A1, Ice 1C, FS, +LMC, UMS DP(AM) Research Vessel
Speed 16 knots
Crew - 9 officers, 13 crew & technicians, 32 scientists
RRS James Cook is designed to carry scientists to some of Earth's most challenging environments and plays a significant role in delivering NERC's scientific priorities. She is fitted with some of the most modern scientific systems available and has been built to meet ICES 209 standard referring to Underwater Noise of Research Vessels meaning that she is one of the quietest research vessels currently afloat. She is also built with a Dynamic Positioning (DP) system, enabling the ship to maintain station in all but the most violent weather. This combines with the ability to deploy the Isis Remote Operating Vehicle (ROV) to make her one of the most advanced research vessels currently in service.
NERC also has a new vessel, RRS Discovery, scheduled for delivery later this year at a cost of £75m. The vessel will be fitted out to undertake single and multi-beam echo sounder surveys, integrated data logging, multi-disciplinary science projects, seismic surveys, clean seawater sampling, ROV operations, CTD surveys and deep-water coring and trawling assignments.
artist’s impression of RRS Discovery for delivery to NERC later this year
COS Weekly News - 28 June 2013
COS News – Week ending 28 June 2013
Issue No. 266
IMO MARKS DAY OF THE SEAFARER (AND SO DO WE)
The Secretary-General of the International Maritime Organization issued the attached message to mark this week’s Day of the Seafarer 2013. The day was also marked by “Faces of the Sea” an IMO campaign to harnesses social media in raising the global awareness of seafarers and their important role in society. The IMO is also encouraging the posting of pictures of favourite products shipped by sea and the posting of pictures of seafarers onto Facebook with the caption "thank you seafarers". Similarly, photos may be posted to Twitter @IMOHQ, @SeafarerDay by using the hashtag #thankyouseafarer.
At the annual Mission to Seafarers Fundraiser Banquet held at the Stanley Park Pavilion this week (Master of Ceremonies, Capt. Jamie Marshall., VP Operations with BC Ferries), guests were treated to a presentation by members of the successful UBC Robotic Sailbot Team. Team captain Kristoffer Vik Hansen (above center at the microphone) and his colleague Alexander Kroitch provided an entertaining summary of the recent competition held in Gloucester, Maine, where the team achieved a perfect score to win a hard fought competition against other universities from across North America. The boat itself was in the room for inspection and attracted a great many questions. The Chamber of Shipping is proud to have been a team sponsor.
Main guest Speaker, Commander Jason Boyd RCN, provided a highly informative overview of today’s navy and its plans for the future. Commander Boyd took HMCS Regina to the Indian Ocean for an eight month tour last year, eventually returning to Esquimalt on March 14 2013 (homecoming picture above right) after steaming 50,000 miles as part of Operation Artemis.
STX FILES FOR COURT PROTECTION IN CANADA
Subsequent to previous newsletter commentary on this issue, STX Pan Ocean has now formally filed for protection from creditors here in Canada. The order of the court recognizing the Korean insolvency proceeding is attached. Two containerships operated by the company are currently anchored off Qingdao due to payment disputes namely the 2010 built STX Patraikos (above) and 2012-built Maliakos, both 4,400 TEU.
PORT OF LA HEAD RESIGNS – IS THEN REHIRED
Mr. Jeff Robb, Port of LA
The Executive Director of the Port of Los Angeles resigned on June 24 citing “serious health issues,” (later described as stress related) but was immediately re-hired at the same salary on a one year contract in a newly created position as Director of Environmental Affairs. Mr. Jeff Robb had been with the port since 1984 and was promoted to Executive Director in 2009. Mr. Robb's new contract, which ends July 31, 2014 and which will allow him to work exclusively from home, replaces a three year contract that began in January 2013. Apparently he will then be eligible then for state retirement benefits after serving for 30 years in government. Perhaps the least said on this one, the better.
On the other side of the bay there has also been a round of musical chairs with Mr. Al Moro having been appointed as Interim Executive Director of the Port of Long Beach following the departure of Mr. Christopher Lytle to the Port of Oakland. Mr Moro, who joined the port in 1997, heads administrative and technical activities for the port’s engineering programs. The port will meanwhile seek a permanent replacement for Mr. Lytle.
MOL Comfort before breaking up (left), the position of the floating sections (centre) and rescued seamen coming ashore in Colombo (nice sweat shirt)
Three tugs and a patrol boat arrived on scene this week to lay claim to the two still floating halves of the container ship MOL Comfort. The Sri Lanka Shipping company tug Capricorn (11,000 BHP) now has the forward section of the vessel under tow. Unfortunately, following a heavy weather battering over the last few days, the vessel’s stern section sank in a 4,000 meters of water before it could be stabilized, taking with it around 1,700 containers and around 1,500 tons of bunker fuel. On the insurance front, London headquartered Clyde & Co has disclosed that it has been instructed by a number of cargo interests to protect them in respect of Lloyd’s Open Form, General Average and Recovery, to the aggregated insured value in excess of $120m.
new pictures of the bow section under tow – so far, so good however not such good news for the stern section which could not be saved
Meanwhile MOL has announced plans to temporarily withdraw from service MOL Comfort’s sister ships namely the MOL Creation, MOL Charisma, MOL Celebration, MOL Courage, MOL Competence, and MOL Commitment to permit thorough structural inspection by her builders and Class. As an immediate measure, the company has introduced “operational procedures” to reduce hull stress.
HUMAN COST OF PIRACY REPORT
The just issued Human Cost of Maritime Piracy 2012 produced by the “Oceans Beyond Piracy Project” of the “One Earth Future Foundation” in conjunction with the “International Maritime Bureau” and the “Maritime Piracy Humanitarian Response Program”, has highlighted a wide disparity in the treatment of seafarers following incidents of piracy. Several Filipino seafarers and their families were interviewed about the impact of piracy on their lives and their financial situation with varying feedback as to how they were treated.
Compensation for loss of personal possessions and payment of wages were frequently cited as difficult. Other seafarers reported that employers pressed them to sign “quit-claim” documents before they received any pay. Responding to the criticisms, a P&I Club spokesperson cautioned that there should be a distinction drawn between seafarers serving on vessels insured by International Group P&I clubs and those covered elsewhere and stated that many ship owners go well beyond their contractual obligations in looking after released seafarers and their families. “These do not attract attention, nor do they seek publicity. However, these owners are not considered in the report”.
Also this week, the IMO issued a news release stating that delegates from 22 nations signed a Code of Conduct related to the prevention of piracy, armed robbery against ships, and illicit maritime activity in West and Central Africa. The scourge of kidnapping of seafarers from merchant vessels and off-shore platforms working off West Africa has this year become the single biggest maritime security problem with seemingly little resolve by world governments to seriously address.
NORWAY FIRST COUNTRY TO RATIFY HKG CONVENTION
The IMO this week issued a news release advising that Norway has become the first contracting State to the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009. The Convention is scheduled to enter force 24 months after ratification by not less than 15 States representing 40% of the world’s merchant shipping by GRT, with a combined maximum annual ship recycling volume of not less than 3% of their combined tonnage.
On the same topic, the European Union this week issued a press release advising that agreement has been reached with the European Parliament on an EU Ship Recycling Regulation. The new regulation requires vessels under an EU flag to be recycled only at facilities on an EU approved list. An earlier proposal to impose a recycling levy on all ships calling EU ports was dropped in the face of strong opposition.
REFINERS PRESSED TO “FACE UP FUTURE LOW SULPHUR FUEL DEMAND”
The Chairman of the International Bunker Industry Association and Director of Oldendorff Carriers Mr. Jens Jørgensen has called on oil refiners to enter frank discussions with ship owners ahead of the next milestone in reducing fuel sulphur content in 2015. This is when allowable sulphur content in fuel is reduced to 0.1% when operating in Emissions Control Areas.
It also emerged this week that the EU is considering proposals to require shipping to report its CO2 emissions. If approved, all vessels over 5,000 GRT calling European ports would be required to measure and report their annual CO2 emissions by 2018. Comparisons were immediately made with a similar, much discredited, and ultimately unsuccessful effort to apply similar rules to aviation.
Meanwhile, it was announced this week that Carnival Corp with just over 100 ships sailing under various cruise brands is to begin the installation of exhaust gas cleaning systems (scrubbers) on its ships in order to meet the new emission standards. The per ship cost of conversion is between $1.0 - $1.5 million. Next year the company is also planning a single ship trial with LNG as another alternative in an effort to mitigate more than $250,000,000 per year in additional fuel costs across its fleet. Royal Caribbean International is also well advanced in assessing the performance of prototype scrubbers.
Another significant news flash from the cruise industry this week is the decision of Mr. Micky Arison, Chief Executive of Carnival Corp, to stand down. However, Mr. Arison who is the son of the company’s co-founder Mr. Ted Arison, will remain as Group chairman. His replacement has been named as an existing board member Mr. Arnold Donald.
MIGHTY SERVANT 1 DELIVERS
Boskalis subsidiary Dockwise last week delivered the 23,000 ton Lucius spar for the Lucius deepwater oil and natural gas project located in the Gulf of Mexico. The cargo measuring 184 m in length and 34 m in diameter, was loaded onto the Mighty Servant 1 at Pori, Finland for discharge at Ingleside, Texas. Lucius spar reached the Mighty Servant 1′s carrying capacity limit and extended nearly 40 meters over the stern.
HISTORIC YACHT MISSING OFF NZ
A historic US schooner built in 1928 sailing from New Zealand to Australia is missing having not been heard from since June 4. There are great concerns that she has been lost in the notoriously unforgiving Tasman Sea.
CHAIRMAN OF HKND SPEAKS ON NICARAGUA CANAL PROJECT
The Chinese businessman backing the $40 billion plan to build a canal through Nicaragua, Mr. Wang Jing (above), pledged transparency this week but then declined to disclose where he was educated. Mr. Wang told the media in a Beijing press conference that his wealth stems from a mining investment in Cambodia after Nicaragua’s Congress last week granted his Cayman Islands-registered HK Nicaragua Canal Development Investment company a 50-year concession to develop the 286 km canal.
The haze hanging over Singapore has not impacted the direction of dry bulk markets which without fail are on something of a mini roll thanks to China finally re-stocking its iron-ore inventory. The change of mood seems to originate with revised rules issued by China’s Ministry of Commerce whereby importers can now apply directly for import licenses, allowing steel mills to buy direct instead of going through expensive middle-men. As a consequence, the recent improvement in the Capesize rates is driving the Baltic Dry Index which closed on Thursday on 1151 points compared to 1012 points last week and 873 points the week previously.
Cape Size Panamax Supramax
Index 2120 994 950
Last week 1792 920 916
Spot time charter $10,700/day $6,600/day $9,400/day
One week ago $14,500/day $7,900/day $9,900/day
Tankers: Whilst rates have recently come off the bottom, the discrepancy between Jones Act qualifying tonnage and the real world was quite notable this week when ExxonMobil took on long-term charter on the U.S.-flagged product tanker American Phoenix at a near record rate of around $100,000 per day for coastal trading.
Market analyst at Teekay, Christian Waldegrave, offers his latest and highly informative LNG market update at http://www.youtube.com/watch?v=gboZXhh2DTI
After a dreadful year of declining rates in the Asia to Europe trade lane, the July General Rate Increase (GRI) of anything up to $1000 per TEU appears to have stopped the rot – at least in the short term. As may be seen from the above graph, the latest figures from the Shanghai Containerized Freight Index (SCFI) show that the all in spot rate from Asia to Europe has increased from around $900 to $1,400 per TEU in little over a week.
Jun 29 - PCT will open its gates to the general public tomorrow, June 29th between 11am and 3pm. This event is a great opportunity for those of you in the industry to bring family and friends to a marine facility. Visitors will be able to see the dumping of a sulphur railcar first hand, climb a CP locomotive and see the sulphur stockpiles up close. Food and refreshments will be provided as well as events/activities/entertainment for families.
Jul 1 Canada Day Statutory Holiday
Jul 4 WMCC & Parks Canada Meeting @ 09:00
Jul 10 COS Board of Directors Meeting
Jul 16 Ship & Port Operations Committee (tbc)
Jul 17 Liner Committee meeting (tbc)
Jul 18 Navigation & Pilotage Committee meeting
Ship of the Week
On May 7 2013 Hudong-Zhonghua Shipbuilding in Shanghai delivered M.V. Taagborg, an ice strengthened multipurpose tweendeck vessel to her Dutch owners Royal Wagenborg. Following delivery, Taagborg sailed for Dalian to loaded project cargo for discharge in Kitimat and this week, having previously loaded in Crofton and Harmac, she made her maiden call in Vancouver to load wood pulp at Lynnterm under charter to Austral Asia Line. She will discharge in China and Indonesia.
GRT 14,695 tons
DWT 21.350 mt
TEU capacity 1,129 including 72 reefers
Cranes 4 Liebherr x 60 tons SWL at 15 metres outreach (mounted port side)
Main engine Wartsila 6L 46F, 7500 KW
Ice Class 1A
The history of the company is typical of modest origins being developed into a global presence. In 1898, Captain Egbert Wagenborg started his own company to move both people and cargo. His fleet expanded steadily and the company became an important shipping player in its home port of Delfzijl in the Northeast of The Netherlands. Today, the company operates around 180 vessels ranging from 2,000 – 20,000 DWT and is a full service provider in ship management, stevedoring, projects, logistics, trucking, towage insurance and agency.
scenes from Delfzijl including the company’s offices centre and right
The company describes itself as offering total solutions within shipping and even offers enthusiastic and motivated seafarers who want to start their own business an opportunity to do so within the group. Following the launch of Taagborg, next up is her sister vessel Tiberborg which is scheduled to be delivered this summer.
COS Weekly News - 21 June 2013
COS News – Week ending 21 June 2013
Issue No. 265
DAY OF THE SEAFARER
On June 25th we will join the International Maritime Organization in celebrating the Day of the Seafarer. IMO Secretary-General, Mr. Koji Sekimizu, has released a video message for this year’s theme – Faces of the Sea. Take a few minutes and join us in saying ‘thank you seafarers’ on June 25th.
- Twitter: @IMOHQ and #thankyouseafarer
- YouTube: http://www.youtube.com/user/IMOHQ
CLARK DRIVE OVERPASS GATE CLOSURE – JUNE 22 - 23
Port Metro Vancouver has advised that the Clark Drive Overpass Gate Closure will take place from Saturday, June 22nd at 7am and reopen on Sunday, June 23rd at 7pm. There will be no inbound and/or outbound port traffic at Clark due to roadwork that the City of Vancouver will be performing for the Powell Street Project.
After that effective Monday, June 24, 2013 up to Monday, September 2, 2013, the Clark Drive Overpass will be CLOSED TO ALL INBOUND PORT TRAFFIC. One Exit lane, southbound, will remain open during this period. Therefore, access and egress respectively to and from the Port will be as follows:
IN BOUND Passenger Vehicles with Port Pass
IN BOUND Passenger Vehicle without Port Pass
IN BOUND Non-Container Commercial Vehicles
IN BOUND Container Trucks only
*Emergency Vehicles will maintain full inbound access at Clark
CHAMBER ARGUES IN FAVOUR OF SHIPPING SAFETY IN BC
The Chamber had an opinion piece on the safety of shipping in BC waters published in the Vancouver Sun this week, see http://www.vancouversun.com/opinion/op-ed/index.html
GREATER VICTORIA HARBOUR BUYS BACK HYACK TERMINAL ASSETS
Greater Victoria Harbour Authority (GVHA) announced that it purchased the Hyack Terminal assets from Victoria Harbour Flight Centre Limited Partnership (partners: Ledcor Air Limited and Victoria Harbour Flight Centre Limited) effective June 19, 2013. The purchase includes all floats and buildings, as well as the business and domain names of Hyack Air. The Hyack Terminal and floats off Wharf Street, below the Victoria Regent Hotel, are located on a water lot owned by GVHA. The terminal is situated between GVHA’s Johnson Street and Wharf Street marinas. The facility currently hosts private seaplane charter flights for fishing and scenic air tours, as well as occasional overflow of scheduled commuter flights.
The Hyack Terminal will continue to operate with its current mix of uses in the short-term, however GVHA envisions future consolidation and reconfiguration of this area, and its adjoining properties, to optimize use and functionality. In the coming months, GVHA will be reaching out to the City of Victoria, the Provincial Capital Commission and other key players to craft a comprehensive and integrated vision for this important quadrant of the inner harbour.
MAINSTREAM RENEWABLE POWER TEAM
On July 1st, 2013 four modern-day explorers hope to become the first people to traverse the Northwest Passage solely under human power in a single season. One of the team members is Denis Barnett of Empire Shipping Agency. For more information on their journey visit: http://mainstreamlastfirst.com/. Shown in the photo is the ocean rowing boat that built by Robin Thacker and specifically designed to deal with the harsh conditions that an unpredictable ocean swell can dish up.
UBC SAILBOT TEAM VICTORIOUS
We were thrilled to learn last weekend that UBC’s Sailbot team secured victory with 50 points out of a possible maximum of 50 with their “Thunderbird 2013” in this year’s “International Robotic Sailboat Regatta” which took place in Gloucester, Maine. The UBC Remote Yacht Team was formed in 2002 to foster students’ professional development and interest in marine engineering, robotic design and naval architecture. The team initially struggled to generate interest from other schools to engage in a competition until an event was staged in Kingston, Ontario, in 2006 where UBC placed first ahead of three other schools. Since then the team has competed in four other events including in 2012 in Vancouver. Up to this year, the UBC team had won four on the five annual events so to win again in 2013 with a perfect score was the icing on the cake following a year of very hard work, not least in securing sponsorship from the marine industry.
Team captain Kristoffer Vik Hansen, a student from Norway has sent us the following message: “On behalf of UBC SailBot I have to send you and the rest of the team at Chamber of Shipping of British Columbia our deepest appreciation for believing in us. I personally think it is through projects like this UBC will produce the next generation of maritime innovation”. Needless to say, we are very proud to be associated with such a dedicated group of young men and women. Team Captain Kristoffer will be joining us on June 26 for the Mission to Seafarers fund raiser dinner and will be bringing along Thunderbird 2013.
TRANSPORT CANADA WESTERN REGION ORGANIZATION
Transport Canada has published an updated organization matrix – see attached. A warm welcome back to the west coast to Ms. Yvette Myers, New Regional Director Marine Safety & Security, who has replaced Mr. Jim Lawson who has taken retirement.
PACIFIC PILOTAGE AUTHORITY APPOINTMENT
On May 16, 2013, Ms. Katherine Bright was appointed by the Minister as Director to the Authority’s Board. She was appointed Public Representative in replacement of Mr. Michael Berry whose second term expired on March 5, 2013.
Katherine is President of the Institute of Family Enterprise Advisors (IFEA). For a number of years, Katherine was Assistant Dean at the Sauder School of Business at UBC, at which she also taught in Executive Education, UBC Continuing Studies and also in Sauder’s MBA programs.
Katherine is originally from the U.S. Katherine moved to Vancouver in the mid 1990’s to attend UBC to obtain her MBA with a specialization in Strategic Management.
Katherine lives in North Vancouver with her husband and has a nine year old son and a five year old daughter.
In her occasional spare time, Katherine enjoys skiing, travelling and taking part in outdoor activities with her family as well as volunteer in their community.
MOL COMFORT BREAKS UP IN THE INDIAN OCEAN
In an extraordinary event, the 8,110 containership MOL Comfort on passage from Singapore to Jeddah has broken in half in the Indian Ocean after suffering a severely cracked hull in bad weather off the coast of Yemen. The 26 crew members were forced to abandon ship and were rescued by Hapag Lloyd’s Yantian Express. The vessel is classed by NKK and insured for around $83 million through the Japan Shipowners Mutual Protection. As the picture shows, the vessel’s back is broken, a rare event normally associated with freak waves off the coast of South Africa. A patrol boat is standing by the two sections and MOL has signed Lloyd’s Open Form with both Smit and Nippon Salvage. There are believe to be five vessels of similar design to MOL Comfort, all built by Mitsubish Heavy Industries in Japan.
The two halves of the hull remain afloat and so far there is no oil pollution
Also this week, the 15,500 TEU Eugen Maersk suffered a fire in three containers in Gulf of Aden. She headed to the port of Djibouti where the fire is being investigated.
CONTAINER GIANTS TO TEAM UP
A new so called P3 partnership between Maersk, MSC and CMA CGM has been announced. The link up is scheduled for start up in Q2 2014 when the companies will begin operating with a capacity of 2.6m TEU spread over 255 vessels serving 29 loops from Asia to Europe, Transpacific and Transatlantic. Maersk will contribute 42% of capacity, MSC 34% and CMA CGM 24%. A new company is to be established in London to run the venture with up to 200 staff complimented by representatives in Singapore. A Chief Executive will be hired to keep P3 at arm’s length from its three shareholders.
USCG DELEGATES BALLAST WATER APPROVALS TO DNV
The US Coast Guard has unexpectedly given Norwegian class society Det Norske Veritas (DNC) authorisation to test and approve ballast water treatment systems on its behalf. From the perspective of ship owners this is probably good news in that it provides greater certainty that type approvals will be completed before the implementation of the US own ballast water regulations. Under US rules, any vessel whose keel is laid after December 1 this year must have a system installed when delivered.
ICS PROMOTES IMPLEMENTATION OF NOx TIER III STANDARDS IN 2016
Having considered the intervention by Russia at the May meeting of the IMO’s Marine Environmental Protection Committee (MEPC 65) in favour of postponing the Nox Tier III standards for new engines until 2021, the International Chamber of Shipping is making the argument that the original time-line should be maintained. See the attached policy statement.
GRAHAM WESTGARTH MOVES UP IN GASLOG
Graham Westgarth, previously of Teekay and now with GasLog, who also continues to serve as Chairman of Intertanko, is to step up from Executive Vice President of strategy and Operations to Chief Operating officer. Company Chairman Mr. Peter Livanos commented that “in order to make best use of Graham Westgarth’s extensive experience and broad knowledge, the board felt that this was the right time to extend his role to that of Chief Operating Officer”. Graham joined GasLog in January this year as the company rapidly ramps up its fleet of new build LNG carriers.
NEWCASTLE NSW NEXT ON AUSTRALIA’S CHOPPING BLOCK FOR PRIVATIZATION
The State of New South Wales (NSW) is to offer a long term lease for the port of Newcastle, the world’s largest coal export port for thermal coal. Only in April, the state government completed the sale of 99 year leases for Port Botany in southern Sydney and Port Kembla in Wollongong for $4.8 billion. NSW is aggressively seeking to balance its heavily indebted budget as it also seeks to come up with funding for a commuter light rail project.
BRAZIL’S PRESIDENT VETOES PORT LAW AMENDMENTS
On top of the country’s many other challenges right now (including nationwide protests and unfinished sports stadiums), the President of Brazil has vetoed 13 amendments to the country new port modernization law approved by the country’s Congress. The ditched amendments included a crucial one to restrict to just 5% the shareholding of a shipping line in any port terminals, a restriction on private terminals handling third-party cargo, a move to restrict the impact of federal centralization and also a measure allowing organized port labour to expand their influence into new terminals. The measure now goes back to Congress for final approval where last ditch efforts to amend it are certain to continue.
ILLEGAL INDONESIAN FOREST FIRES SHROUDING SINGAPORE IN HAZE
The Singapore pollution standards index reached a record high this week as a consequence of illegal forest fires on Indonesia's island of Sumatra. The issue is inevitably causing tension between the two close neighbours prompting an emergency meeting of Ministers in Jakarta yesterday.
A love-in for Capesizes provided a shot in the arm for the Baltic Dry Index this week which closed on Thursday on 1012 points compared to 873 points last week and 806 points the week previously.
Cape Size Panamax Supramax
Index 1792 920 916
Last week 1484 833 895
Spot time charter $10,700/day $6,600/day $9,400/day
One week ago $ 7,000/day $7,300/day $9,600/day
Containers: The ratio of container capacity on order compared to the trading fleet dropped below 20% in June even though the industry will accept delivery of record volumes of new capacity this year. Around 1.7m TEU of capacity is expected to be delivered in 2013.
Between 2003 and 2008, some 10 million TEU of capacity was ordered. However from 2009 to 2013 only around 4.0 million TEU was ordered, due in no small part due to the impact of the 2008-09 financial crisis.
PACIFIC COAST TERMINALS OPEN HOUSE
Jun 29 - PCT will open its gates to the general public on Saturday, June 29th between 11am and 3pm. This event is a great opportunity for those of you in the industry to bring family and friends to a marine facility. Visitors will be able to see the dumping of a sulphur railcar first hand, climb a CP locomotive and see the sulphur stockpiles up close. Food and refreshments will be provided as well as events/activities/entertainment for families.
Jun 18 ISSC Annual General Meeting @ 12:00
Jun 25 Day of the Seafarer
Jun 26 COS Liner Committee Meeting @ 10:00
Jun 26 WMC PACMAR/NANS Meeting @ 10:30
Jun 26 Mission to Seafarers’ Banquet
Jun 27 COS Navigation & Pilotage Committee Meeting @ 10:00
Jun 29 Pacific Coast Terminals Open House @ 11:00
Jul 4 WMC Parks Canada Meeting @ 09:00
Jul 10 COS Board of Directors Meeting
Ship of the Week
Royal Princess, the new flagship of Princess Cruises, was christened last week by HRH The Duchess of Cambridge in the Port of Southampton. The Band of Her Majesty’s Royal Marines Portsmouth and The Pipe Band of 1st Battalion Irish Guards provided the musical support the event.
Launched August 2012 by Fincantieri Shipyard, Montefalcone, Italy
Completed June 2013
Sister ship: Regal Princess, completes June 2014
Following the christening, the vessel left for Barcelona from where she will undertake an extended cruise of the Mediterranean before heading to Fort Lauderdale, her U.S. home port.
The vessel has a number of unique design characteristics including a 28ft glass-bottomed viewing gallery, a choice of ten restaurants and 81% of cabins have private balconies. She is also one of the first cruise ships to be compliant with the new “Safe Return to Port” requirements. The main engines are four Wartsila F-series marine diesels with high output power at low rpm. Two of the engines are 12-cylinders and the other two are 14-cylinders. The service speed of the ship will be about 22 knots, with a maximum of 24 knots.
Mum and Dad can rest in the “Crown Grill & Wheelhouse Bar” (left) whilst the kids have fun in the activity center (right)