COS News – Week ending 11 January 2013
Issue No. 243  

 

PMV SOUTH SHORE TRAFFIC & CONSTRUCTON UPDATES
Due to a combination of circumstances resulting in the perfect storm, there was considerable south shore traffic congestion on both Monday and Tuesday this week. PMV has in place a traffic and construction web page that includes detailed weekly construction updates, traffic alerts and progress tracking. It also includes a subscription feature for interested port users and public: http://southshorecorridorproject.com/

TRANSMOUNTAIN PIPELINE PROJECT CAPACITY INCREASE
Kinder Morgan has announced that having secured additional shipper commitments, the capacity of the proposed project to twin the Transmountain Pipeline will be increased from 750,000 to 890,000 bpd.
 

NYSA – ILA NEGOTIATIONS BREAK DOWN
Putting renewed pressure on the February 6 extended deadline for a coastal contract agreement, the International Longshoremen’s Association (ILA) broke off talks with the New York Shipping Association (NYSA) this week on the terms of the local contract covering work rules and staffing at the Port of New York and New Jersey. The ILA walked out of the negotiations over what they described as “revolutionary changes in work practices and overstaffing.”  The ILA and USMX, umbrella agreement negotiations which are stuck on the vexed issue of container royalties, are set to resume next week.  Employers are seeking to amend payments that carriers have been making to longshoremen on containerized cargo since the 1960s.
 

TRANSCANADA TO BUILD PIPELINE FOR PETRONAS

Transcanada Corp. has been contracted to build the $5 billion pipeline into Prince Rupert to service the Petronas – Progress Energy LNG project which it is proposed to build on Lelu Island. In December 2012, the government approved the sale of Progress to it’s project partner Petronas. Transcanada was previously selected by the Shell led consortium to build the $4 billion GasLink pipeline to service their Kitimat project.
 

XANATOS MARINE EXTENDS RANGE OF AIS & ARPA
Xanatos Marine of North Vancouver has announced that they have successfully completed an AIS and ARPA trial on sixteen Indonesia Maritime Police vessels transmitting positional data over a range of over 2,000 km to headquarters in Jakarta.   Xanatos has provided a cost efficient and secure solution somewhat rugged and lengthy coastline of Indonesia.   Next steps are to work with local agents in Jakarata to expand the network with strategically selected ground stations equipped with AIS, Radar and CCTV allowing complete maritime domain awareness.

MDA AWARDED $706M CONRACT FOR THREE NEW SATELLITES
MacDonald, Dettwiler and Associates Ltd. of Richmond, BC announced the signing of a $706 million contract with the Canadian Space Agency to build, launch and provide initial operations for the RADARSAT Constellation Mission (RCM). The contract is expected to extend over a period of seven years and brings MDA’s current backlog to approximately $2.9 billion.

RCM is a constellation of three satellites providing around-the-clock coverage. Information obtained from RCM can include repeat imaging of the same area at different times of day, dramatically improving the frequency of monitoring coastal zones, northern territories, Arctic waterways and other areas of strategic and defence interest. RCM will also incorporate automated identification system technology, which when combined with the powerful radar images, supports the immediate detection and identification of ships worldwide.
 

CN OPENS NEW LOGISTICS PARK COMMENCE OPERATIONS
The opening of CN’s state-of-the-art intermodal terminal for containerized goods at the company's new Calgary Logistics Park will enable the company to provide seamless transportation solutions to rail customers moving products and commodities into and out of Calgary.  The 680-acre logistic park is strategically located  in Rocky View County.

 

CANADIAN CUSTOMS LAW

Daniel Kiselbach from one of our member companies, Miller Thomas, has co-authored and just released the first edition of Canadian Customs Law.  The book provides a current overview of the laws, cases and policies that govern customs in Canada. It features an overview of the fundamental Canadian requirements relating to the importation and exportation of goods.  Extensive references to legislation, cases and policies are set out in footnotes, checklists and appendices. Strategies and precedents for dealing with practical matters such as investigations, audits, verifications, voluntary disclosures and appeals are also discussed.  To obtain your own copy visit the Carswell Store on-line bookstore.

 

 

Government News

NEW CCG INSHORE RESCUE BOAT IN INNER HARBOUR
Randy Kamp, Parliamentary Secretary of Fisheries and Oceans announced that a new Canadian Coast Guard inshore rescue boat station will be established at the Royal Canadian Navy facility HMCS Discovery in downtown Vancouver.  The station will provide search and rescue (SAR) services in the Vancouver Harbour and surrounding area, supplementing the robust SAR presence already present.   As it is the case for all Inshore Rescue Boat Stations in British Columbia, operations will extend during the peak season from the May long weekend until after Labour Day.

The Royal Canadian Marine Search and Rescue, an important part of the maritime search and rescue network, at the request of the Coast Guard and as part of its funding arrangement has relocated one of its rescue units to enhance search and rescue services to mariners in Vancouver.   The Canadian Coast Guard will have 7 large vessels, 6 small vessels, 2 hovercraft, 13 search and rescue lifeboats, and 6 helicopters available for deployment in British Columbia.

 

CANADA EXTENDS ITS PRESENCES IN THE ARABIAN SEA REGION
Her Majesty's Canadian Ship (HMCS) Toronto will deploy early this year until the fall of 2013 with a crew rotation during the deployment contributing to the multinational coalition fleet conducting maritime security operations in the Arabian Sea region.  HMCS Toronto has been undergoing extensive training in preparation for this deployment as part of Combined Task Force 150 (CTF-150) and will replace HMCS Regina which has been in the region since August. HMCS Regina deployed to the Arabian Sea region with CTF- 150 in order to conduct maritime security operations in the Gulf of Aden, the Gulf of Oman, the Arabian Sea and in the Indian Ocean. 

CANADA HARMONIZES LOW-VALUE SHIPMENT THRESHOLDS WITH US
The Canada Border Services Agency (CBSA) and US Customs and Border Protection (CBP) announced today that Canada and the United States have increased and harmonized the value thresholds for expedited customs clearance to CDN$2,500 and USD$2,500 respectively. This is an increase from the current levels of CDN$1,600 for Canada and USD$2,000 for the United States.  In addition, Canada has increased the low-value shipment threshold to CDN$2,500 for exemption from North American Free Trade Agreement (NAFTA) Certificate of Origin requirements, aligning it with the current threshold of the US. 

 

CANADA EXPANDS CAPACITY TO EXPORT BEEF TO CHINA
China has approved four additional Canadian beef facilities that will now be able to export beef to China.  The newly approved establishments will increase the Canadian export capacity for beef in a market estimated by the industry to be worth approximately $20 million annually.

The following establishments can now export to China: Les Viandes Laroche Inc (Asbestos, Quebec), Ryding Regency Meat Packers Ltd. (Toronto, Ontario), St. Helen's Meat Packers Limited (Toronto, Ontario), and Canadian Premium Meats Inc. (Lacombe, Alberta).

 

International News

IMO LAUNCHES WORLD MARITIME DAY THEME

The International Maritime Organization (IMO) Secretary-General Koji Sekimizu has launched the theme for the 2013 World Maritime Day - Thursday September 26. The theme is: "Sustainable development: IMO’s contribution beyond Rio+20", and it has called on governments and the shipping industry to join together and provide a positive contribution towards formulating sustainable maritime development goals. Speaking at a reception, Mr. Sekimizu said that “as the United Nations’ international regulatory body for shipping, IMO has been, and continues to be, the focal point for, and the driving force behind, efforts to ensure that the industry becomes greener and cleaner and with shipping being so essential to the continued development and future growth of the world economy, IMO must continue to take the lead in supporting the shipping industry with the appropriate global standards and by helping to promote, through technical co-operation, the necessary national maritime transportation policy and institutional frameworks for a sustainable maritime transportation sector”.
 

TANKER MAKES CONTACT WITH SAN FRANCISCO BAY BRIDGE

   

  Overseas Reymar at anchor with dents and scrapes after the incident (left), the affected tower (centre) and fender damage (right)

The Overseas Shipholding Group Panamax tanker Overseas Reymar sustained damage on Monday morning this week after making contact with San Francisco Bay Bridge in restricted visibility. The vessel is reported to have contacted the eastern most tower on the western span of the bridge as she was proceeding outbound in ballast condition under the con of a San Francisco bar pilot. The vessel sustained scrapes and dents on her starboard quarter above the waterline, however there were no injuries, no pollution and no disruption to bridge traffic. The National Transportation Safety Board is investigating, however, there is no indication of vessel malfunction. OSG Shipholding is currently under creditor protection.

  

HIGH SPEED FERRY ACCIDENT IN NEW YORK

    

                                                                                 damaged starboard bow

The high-speed commuter ferry Seastreak Wall Street sailing from New Jersey to lower Manhattan, and loaded with hundreds of passengers, hit a dock on Wednesday resulting in a number of injuries, eleven being categorized as serious. The vessel which had recently undergone a major overhaul including new engines also suffered extensive damage to her aluminum hull. The ferry company, Seastreak LLC, is working with investigators to determine the cause of the accident.
 

JP MORGAN ENTERS RACE TO BUY PORT OF VIRGINIA
JP Morgan is the latest candidate to have an appetite for port infrastructure assets. The group has launched a $3.1 billion bid for the deep water Port of Virginia in partnership with Maher Terminals. Other known bidders include incumbent, Virginia International Terminals, APM Terminals and Deutsche Bank. The four Port of Virginia container terminals handle around 2 million TEU, but there is considerable latent capacity and the complex is seen as an attractive option for 2015 and onwards when much larger container ships are expected to transit the enlarged Panama Canal enroute to the U.S. east coast. A decision by the Commonwealth of Virginia as to next steps is expected by January 22.

 

BLEAK PROSPECTS FOR SHIPYARDS DESPITE ROCK BOTTOM PRICES
Clarksons data indicates a total of 1,095 ships were added to ship yard order books worldwide last year, down 35.5% from the 1,698 recorded for 2011 and 2,113 in 2010. Over the last four years the world fleet has grown by a disastrous 35% leaving us with a current 20% surplus of capacity over demand. In the bulk trades, vessels averaged earnings of only around $6,500 per day in 2012 and tankers around $15,000 per day, well below breakeven levels in both cases. The year ended with a bit of a bang on account of an order for a reported 14 Capesizes to be built in China by Mr. John Fredriksen’s Frontline Group, traditionally a pure tanker company. The new build price is reported to be only around $46 million per vessel. For the first time in a decade, even South Korean vessel exports fell in value terms to $39.7bn in 2012, a 30% year on year decrease.

Still with ship building, the government of Finland has responded to the political fallout from the failure of the STX Turku yard to secure the latest Royal Caribbean Oasis Class vessel order by asking the European Commission to look into French state subsidies given to the STX France St. Nazaire yard that may have helped the yard win the $1.3 billion contract.

 

SHELL DRILL RIG KULLUK TOWED TO SAFETY

  

The Shell oil rig Kulluk which drifted ashore on New Year's Eve in Sitkalidak Island, Alaska, has been towed to safety in nearby Kiliuda Bay for underwater inspection after a towing operation of 12 hours (see map below). The rig was returning from the Beaufort Sea to Seattle when her towing vessel lost power and its line to the rig. It was her original tow vessel the Aiviq that performed the recovery operation.

Shell has pointed out that the design of the Kulluk with fuel tanks isolated in the centre of the vessel and encased in heavy steel made the possibility of there being pollution highly unlikely and in this were proved correct. A US House committee has asked the US Coast Guard and the Department of the Interior to investigate the incident.

 

PRESTIGE MASTER BACK IN COURT

Spanish court proceedings are now well underway following the return of the former Master of the oil tanker Prestige to La Coruña, in October. Captain, Apostolos Mangouras, now 77 years old, his Chief Engineer and the former head of Spain's merchant marine department are being held responsible for the loss of 60,000 tons of crude oil into the Atlantic off Cape Finisterre in 2002. Believe it or not, prosecutors for the Spanish government are seeking a 12 year prison sentence for Captain Mangouras. The Prestige split in half and sank six days after it ran into trouble during a heavy storm in the Bay of Biscay. Authorities in Spain, France and Portugal all declined to provide the vessel with a Port of Refuge port and ordered here away from the coast where she eventually broke up. The damage caused by the spill is estimated at £3.1 billion according to court documents and the Spanish state is seeking more than €2bn in compensation via the vessel's insurers. French authorities are also claiming damages. The judges are said to have 280,000 pages of evidence to consider with 130 witnesses called to a special courthouse. Captain Mangouras is overwhelmingly supported by the marine industry on the grounds that that he not only saved his crew but stayed with his ship and has behaved in an exemplary manner throughout his long ordeal.

 

MAERSK URGES LEVEL PLAYING FIELD IN HKG

   

Maersk Line has appealed directly to the Hong Kong government to implement a level playing field for shipping lines serving the port. The company has expressed concern that the current voluntary use of low sulphur fuel by 17 container lines is not having the intended effect given that government’s incentive scheme covers less than half of the additional costs. Some 200,000 vessels a year call at Hong Kong including around 30,000 deep sea vessels and it is estimated that primary emissions would drop by 80% were all vessels to switch to low sulphur fuel. The government is under intense public pressure to act since Hong Kong has never met its air quality targets since they were first adopted in 1987 and the poor air quality has started to significantly impact the quality of life in the region.

 

GRAHAM WESTGARTH JOINS GASLOG

    

           Capt. Graham Westgarth and GasLog Singapore

Amongst leadership changes at the GasLog Group, former Teekay Executive Vice President for Innovation, Technology and Projects, Captain Graham Wesgarth has been recruited as Executive Vice President, Operations and Strategy effective January 14. Captain Westgarth will also continue to wear the hat of Chairman of Intertanko. The GasLog Group which is owned by Mr. Peter G. Livanos owns ten LNG carriers and through GasLog LNG Services operates a further eleven vessels owned or operated by the BG Group. The company also has eight LNG new builds plus options on order at Samsung. Another former Teekay man, Mr. Paul Wogan has been appointed Chief Executive officer of GasLog.

 

WATER LEVELS IN MISSISSIPPI AT CRITICALLY LOW LEVEL

   

               emergency dredging underway

As a consequence of the sustained inland drought of 2012, the US Army Corps of Engineers has been taking emergency measures to remove underwater rock pinnacles in the Mississippi River and thereby avoid a shutdown of barge traffic in the upper reaches. The American Waterways Operators and the Waterways Council have jointly appealed again to President Obama to release water from Missouri River reservoirs to keep the Mississippi open to barges. A shutdown of traffic by January 15 with significant impact on trade and jobs has become a real fear if action is not taken.

 

Market Update
The BDI continues to be in intensive care, closing on Thursday on 751 points compared to 700 points last week and 708 points just before Christmas.

                                                Cape Size       Panamax      Supramax

Index                                         1367                 754                743
December 20 2012                      1254                 675                739
Spot time charter                    $6,100/day       $6,000/day      $7,800/day
One week ago                        $5,000/day       $5,800/day      $7,700/day

Containers:  Drewry is forecasting that international container lines will end 2013 with profits of around $5 billion based on demand growth of 4.6% and continued discipline in the market. Full year results for 2012 will be revealed over the coming weeks. Tempted by some of the lowest new build prices that we are ever likely to see, several container lines are looking beyond the current glut of capacity to the next round of mega ship orders. Yang Ming is reportedly close to a contract with Seaspan for a series of 14,000 TEU vessels whilst K-Line and United Arab Shipping Co are both reportedly close finalizing orders for new and larger ships.

 

Upcoming Events

MARINERS’ WORKSHOP
Feb 6/7 – The Shipping Federation of Canada in conjunction with the Chamber of Shipping and other local groups are hosting a Mariners’ Workshop at the Terminal City Club in Vancouver.  A block of rooms has been set aside for the workshop at the Terminal City Club at rates starting from $153/night.  For more information and to view the draft agenda see attached registration form.
 

CHAMBER OF SHIPPING ANNUAL GENERAL MEETING
Mar 1 – Save the date for our Annual General Meeting and lunch at the Vancouver Convention Centre.  Our guest speaker is Christian Waldegrave, Market Analyst.

 

Jan 15              ISSC Board of Directors Meeting @ 12:00
Jan 15              ICS Canada Board of Directors Meeting @ 12:00
Jan 18              COS Navigation & Pilotage Committee Meeting @ 10:30
Jan 22              TMEP Marine Hazard Workshop @ 09:00
Jan 23              COS Liner Committee Meeting
Jan 23              VMAA Lunch Seminar on Terms of Sale @ 12:00
Jan 23              COS Island Committee Meeting @ 13:00
Jan 25              COS / CMC Annual Lunch @ 12:00
Jan 30              PACMAR / NANS Meeting @ 10:30
Jan 31              VMAA Special Meeting @ 12:00
Feb 6-7             Mariners Workshop
Feb 11              BC Statutory Holiday – Family Day – Office Closed
Feb 12              COS Ship & Port Operations Committee Meeting @ 12:00
Feb 14              COS Board of Directors Meeting @ 11:30
Feb 20              COS Liner Committee Meeting @ 10:00
Feb 21              COS Navigation & Pilotage Committee Meeting @ 10:00
Feb 26              Green Marine Workshop (tbc) @ 09:00
Feb 27              PACMAR / NANS Meeting @ 10:30
Mar 1                COS Annual General Meeting @ 10:30

 

Ship of the Week

   

new state of the art heavy lift ship – Dockwise Vanguard

Following her launch on October 7, the latest creation of the Dutch heavy lift specialist operator Dockwise was christened on November 30 2012 in Ulsan, South Korea. Builder Hyundai Heavy Industries is currently conducting sea trials on this highly innovatively designed semi-submersible heavy-lift vessel. The unique bowless design will allow entire intact superstructures to be shipped using the vessel’s entire deck length.

LOA 270 meters
Beam 70 meters
Draft in operation 11.0 meters (submerged 31.5 meters)
DWT 117,000 tons (approx)
Speed 14.5 knots

   

                                        artistic impressions of what Baltic Vanguard will be capable of in service

The innovations in naval architecture behind Dockwise Vanguard are intended to enable oil and gas companies to design and move ever larger offshore units, which were previously impractical. The specialized training required to operate the vessel has been taking place in The Netherlands and with Wartsila in Italy. See the link to an impressive video presentation on this vessel: http://www.offshorekinematics.com/vanguard/page/home.html

The Dutch dredging company Royal Boskalis Westminster NV, owner of Smit Tugs, is in the process of trying to gain control of Dockwise. Following initial rejection, Boskalis raised its bid in December placing a value on the company of around $945 million. Ironically, Dockwise bought Fairstar Heavy Transport NV in 2012 in a fairly acrimonious takeover transaction.

COS News – Week ending 4 January 2013
Issue No. 241

WISHING A HAPPY AND PROSPEROUS NEW YEAR TO ALL OUR READERS

 

USMX AND ILA EXTEND FOR ONE MONTH

The International Longshoremen’s Association and US Maritime Alliance (USMX) agreed at the 11th hour to extend their collective agreement by one month to avert a strike on east and Gulf coast container terminals as of December 29. The extension was brokered by the Director of the Federal Mediation and Conciliation Service after talks effectively stalled on December 18. The primary issue of contention remains that of payment of hugely expensive container royalties to ILA members.

Meanwhile the Pacific North West Grain Terminal dispute rumbles along with the three of the original four terminal groups which are party to the dispute implementing the terms of their last and final offer. This is in spite of an overwhelming ILWU vote rejecting that offer and the employers having replacement labour and tugs readily available in case of a strike. The terminals imposing the new contract terms are Marubeni Corp, Mitsui & Co. and Louis Dreyfus. The Cargill owned Temco terminals in Tacoma and Portland have broken ranks and made their own deal with the union.

KITIMAT LNG UNDER NEW OWNERSHIP STRUCTURE

Under a new ownership structure for Kitimat LNG, Encana Corp. and EOG Resources Canada Inc. have both agreed to sell their combined 50% share in the project to Chevron Canada who will pursue the project in partnership with Apache Corp. Chevron Canada will also operate the plant and the related Pacific Trail Pipeline that will bring gas from northeastern B.C. Under the deal, Chevron will also purchase 644,000 acres of petroleum and natural gas rights in the Horn River and Liard Basins in B.C. leaving Apache to manage the upstream assets. The project is currently in the front-end engineering and design phase to export 1.4 billion cubic feet per day, or five million tons of LNG per year and which could eventually double.

In October 2011, the National Energy Board granted Kitimat LNG a 20 year export license. Other proposed LNG projects such as the BG Gas, Petronas and Shell projects have yet to reach the regulatory approvals stage. A much smaller project known as BC LNG is owned by the Haisla First Nation and Houston-based LNG Partners. Chevron on the other hand is also operator and part owner of the huge $54 billion Gorgon LNG development in Western Australia — the world’s largest new LNG project. Australian and Mozambique export LNG projects are expected to hit the market starting in 2018 underlining the need for BC’s projects to move forward expeditiously.

CANPOTEX AND SINOFERT REACH NEW AGREEMENT

Canpotex Limited (Canpotex) announces that it has reached agreement with Sinochem Fertilizer Macao Commercial Offshore Limited, a subsidiary of Sinofert Holdings Limited (Sinofert), to supply 1,000,000 tonnes of potash in the first half (January - June) of calendar year 2013 at price levels which reflect a US$70.00 per tonne reduction from the last contract price established in March 2012.

SEASPAN POISED TO SEAL DEAL WITH YANG MING

Taiwan’s Yang Ming is expected to sign a long-term charter agreement for a series of 14,100 teu ships with Seaspan, which will place the order with Hyundai Heavy Industries. Details of the contract are being finalized with Yang Ming hoping to secure some very attractive charter rates as newbuilding prices continue to decline. Seaspan will place the newbuilding order with South Korea’s HHI for deliveries from late 2015.

Mr. Wang recently confirmed his decision to stay on as chief executive of Seaspan after originally intending to step down on January 1 while remaining co-chairman. He is ranked number 25 in Lloyd’s List’s latest top 100 most influential people in shipping.

Seaspan’s managed fleet of owned and third-party vessels comprises 76 containerships of 475,000 teu , including seven on order. The largest until now were six 13,100 teu vessels on charter to Cosco

Container Lines for 12 years. The deal with Yang Ming expands Seaspan’s client base, which already includes lines such as China Shipping,Hapag-Lloyd, Hyundai Merchant Marine, K Line and Mediterranean Shipping Co as well as Cosco.

CN AND IBEW REACH TENTATIVE LABOUR AGREEMENT

CN announced has reached a tentative agreement with the International Brotherhood of Electrical Workers (IBEW) System Council 11 to renew the labour contract for approximately 700 CN signals and communications employees in Canada. Details of the agreement - negotiated prior to the expiry of the current contract on Dec. 31, 2012 -- are being withheld pending ratification by the union's membership. CN expects to hear the results of the union's ratification vote before the end of January 2013.

AECO HIGHLY CRITICAL OF CANADIAN REGULATIONS

The Association of Arctic Expedition Cruise Operators (AECO), an international organization representing the expedition cruise industry in the Arctic, has met with a number of Canadian authorities to identify requirements for tour operations in Arctic Canada. The 29 international members operate approximately 26 vessels in the Arctic. According to a press release, AECO has found that the challenges expedition cruise operators face in Arctic Canada are significant and as a consequence, the number of expedition cruise operations in the Canadian Arctic is declining. The complex licensing and permitting system is given as the main reason. It noted: “the list of bodies that expedition cruise operators need to contact in order to operate in Canada is extensive and includes approximately 10 different permitting authorities and the filling in of approximately 20 different application forms. “Many of the application forms have nothing to do with tourism, but are concerned with for example physical alteration of the terrain, building runways, mining, exploration and much more.”

CHANGES AT EMPIRE SHIPPING

President and CEO of Empire Shipping Agency, Bruce Rothdram, wishes to announce that Chairman, Claus Hendriksen, retired last week following 36 years with Empire. Claus will remain a director and we wish him well in his retirement. Furthermore, John Yeung joined Empire this week as the new Marketing Manager.

Government News

CBSA ADVICE ON EAST COAST CARGO DIVERSIONS

CBSA has provided guidance to vessels that choose to divert cargo to Halifax, Saint John and Montreal in view of the prolonged longshore negotiations encompassing the US east and Gulf coasts.

For those vessels that are ACI-capable it is required that amended pre-arrival/pre-load information be submitted to CBSA as soon as it is known. The following information is required:

1. Name of Vessel
2. FPOA
3. ETA of Vessel

For vessels that do not have the ability to communicate with the CBSA via EDI, the appropriate documentation (carrier, vessel, cargo, and container information – such as would be contained in a ship’s manifest) must be scanned and sent to CBSA as soon as known

No persons or cargo are to be offloaded from the vessel prior to CBSA risk assessment having been conducted, for that reason offloading is not to occur until one hour has elapsed from CBSA confirmation of receipt of ship’s manifest submission. If further customs processing is required of the vessel, cargo, or crew the carrier will be notified within that one hour time period.

The information is sent to the following email addresses:

For diversions to Halifax:

CBSA-ASFC_NTC-CNC_MARINE-MARITIME This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; This e-mail address is being protected from spambots. You need JavaScript enabled to view it

For Diversions to Saint John:

CBSA-ASFC_NTC-CNC_MARINE-MARITIME This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; This e-mail address is being protected from spambots. You need JavaScript enabled to view it

For Diversions to Montreal:

CBSA-ASFC_NTC-CNC_MARINE-MARITIME This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; and This e-mail address is being protected from spambots. You need JavaScript enabled to view it

The US Department of Homeland Security has also provided similar guidance in their advisory entitled, US Customs and Border Protection Procedures for Vessel and Cargo Entry Processing During Trade Disruptions - Potential Trade Disruption – East and Gulf Coast Vessel Ports.

JOINT REVIEW PANEL IN VICTORIA, VANCOUVER AND KELOWNA

The Joint Review Panel conducting the review of the proposed Enbridge Northern Gateway Project will hear oral statements in Victoria, Vancouver and Kelowna beginning on 4 January 2013. The Panel will be in Victoria from 4-11 January, Vancouver from 14-18 January and 30 January – 1 February, and Kelowna on 28 January. Please see the Panel’s website for the locations and specific start times for each day.

UPDATE WOOD PACKAGING BETWEEN CANADA AND US

Canada and the United States have agreed upon the implementation of the International Standard for Phytosanitary Measures (ISPM) 15: Regulations for wood packaging material in international trade for wood packaging produced and moving between Canada and the US. The specific date of full implementation of the requirements has not been established however the US has indicated that its Final Rule on the implementation of ISPM 15 between both countries is not expected to be published before 2013. Once publication of the Final Rule is complete, an implementation date will be jointly confirmed by the Canadian Food Inspection Agency (CFIA) and the United States Department of Agriculture (USDA). Based on the anticipated timing of the publication of the Final Rule, full implementation of ISPM 15 for Canadian or U.S. origin wood packaging will not occur prior to January 2015. The US and Canada have agreed to provide industry with a minimum of a 12 month phase-in period of “informed compliance” (i.e. notification of the requirements) prior to full implementation.

REGULATIONS TO IMPROVE ENERGY EFFICIENCY ENTER INTO FORCE

New regulations aimed at improving the energy efficiency of international shipping entered into force on January 1^st. The amendments to the International Convention for the Prevention of Pollution from Ships (MARPOL) were adopted in July 2011. They add a new chapter 4 Regulations on energy efficiency for ships to MARPOL Annex VI, to make mandatory the Energy Efficiency Design Index (EEDI), for new ships, and the Ship Energy Efficiency Management Plan (SEEMP) for all ships. Other amendments to Annex VI add new definitions and the requirements for survey and certification, including the format for the International Energy Efficiency Certificate. The regulations apply to all ships of 400 gross tonnage and above. However, under regulation 19, the Administration may waive the requirements for new ships up to a maximum of 4 years.

International News

ROYAL CARIBBEAN ORDERS THIRD “OASIS CLASS” CRUISE SHIP

Royal Caribbean has confirmed an order for a third Oasis-class cruise ship with STX France, St. Nazaire yard, for delivery in 2016. The order comes with an option for a further vessel for delivery in 2018. The order had been expected to go to STX Europe’s Turku yard in Finland where the two existing Oasis class ships were built and where the Finnish government was offering state aid to a yard which badly needs new orders and where hundreds of job losses now seem inevitable. At 225,000 GRT, the Oasis Class vessels are the world’s largest cruise ships and have thus far operated exclusively in the Caribbean and even with the enlarged Panama Canal due to open in 2015 will still be about 7 meters too wide to transit. The new order is believed to be worth around $1.3 billion.

On a less positive note, the rumors are hot and heavy that the QE2, berthed in Dubai for the past four years, is to be scrapped in China for around $20 million.

FEARS FOR BUNKER COSTS IN 2013

On the back of expanding world trade and despite extensive slow steaming, it is predicted that the demand for bunkers will increase to a record 3.37 million barrels a day in 2013 with average prices at around $690 a metric ton. The IMF is estimating that world trade will grew by 3.2% in 2012 and will grow a further 4.5% in 2013 despite continuing recession in the Euro zone and Japan. To take some of the pain out of the oversupply of ships, Clarksons estimates that around 60 million deadweight tons were scrapped in 2012 and a further 46 million tons will make razor blades this year.

SLOW STEAMING IMPROVES CONTAINER SCHEDULING

Whilst not everyone appreciates the need for slow steaming to conserve fuel, reduce emissions and help the bottom line, several prominent cargo interests have kicked off the new year by pointing out the improvements in scheduling reliability that slow steaming has brought about. A speed reduction from say 22-23 knots to 19-20 knots can save as much as 150 tons per day in fuel consumption. The impact has been seen internationally with steadily improved reliability not least here in Vancouver where the lines have collectively pushed reliability to 71% in December with several lines maintaining a 100% record. In a bid to further induce reliability, PMV has introduced a wharfage based incentive scheme as of January 1 whereby vessels exceeding an 85% threshold over the course of the year will qualify for a 10% wharfage discount. This is viewed as a further element in overall supply chain performance.

GERMAN GOVERNMENT NERVOUS OF BANKS’ EXPOSURE TO SHIPPING

The German financial watchdog has been ordered to pay particular attention to banks’ ship lending portfolios when conducting 2012 audits. Shipping lines worldwide have little choice but to write down fleet values during the current crisis during which many banks have closed the door to shipping loans not least to the German KG shipping funds market which has completely collapsed after many years of success. In 2012, it was reported that the group of 12 large, internationally active German banks had a portfolio of shipping loans amounting to €97.8 billion ($128.7 billion).

ICEBERG 1 RELEASED AFTER NEARLY THREE YEARS

Iceberg 1 (left), Somali police on the march (centre) and Italian marines return to Italy (right)

We have piracy related stories from Somali, Nigeria and Indonesia this week. The 24 crew members of the UAE ro-ro vessel Iceberg 1 were freed by South African trained Somali police just prior to Christmas after being held captive for 2 years and 8 months. A number of skirmishes between police and pirates occurred resulting in deaths of both sides before rescue of the ship’s crew was completed. The operation was reportedly paid for by the owner of the cargo trapped on the vessel after the vessel’s owner abandoned both the vessel and her crew. By the time of the rescue, the vessel was reportedly out of food, water and medicine and the crew requiring urgent medical care. They were reportedly composed of nine Yemenis, six Indians, four from Ghana, two Sudanese, two Pakistanis and one Filipino. The cargo owner is said to have paid up to $1.5 million dollars to the Somali President’s son to secure government cooperation after negotiations with the pirates long ago failed. Two captured pirates were jailed for 10 years, another for 3 years.

Staying with Somali piracy, two Italian marines arrested by India last March for allegedly shooting two fishermen in error, arrived back in Italy just before Christmas after India gave them special leave. The two marines, were part of a military security team protecting the tanker Enrica Lexie at the time of the incident. The Italian government has undertaken to ensure they return to India by Jan. 10 to stand trial.

On to Nigerian piracy and four seamen were kidnapped just before Christmas after their vessel was attacked some 40 miles off the coast of Nigeria. The vessel attacked was the Italian operated offshore supply vessel Asso Ventuno and three of the four captives are reported to be Italian. Earlier in December, five Indian crew members were abducted in the same area after gunmen attacked an oil tanker capturing six employees of Hyundai.

Finally to Indonesia where eight Indonesian men have been charged following an attack on the bunker tanker Merlion Dua in waters off the coast of Malaysia in early December. If found guilty they face a maximum jail term of 20 years, together with a whipping (now there’s a deterrent).

STEVE JOBS’ YACHT IMPOUNDED

The personal luxury yacht of the late Steve Jobs, Venus, was impounded in Amsterdam just before Christmas. Mr. Jobs was the founder and CEO of Apple took a strong personal interest in the design and construction of the vessel until the time of his death. The dispute is between the French designer who claims that Mr. Jobs' heirs still owe him 3m euros of a 9m euro fee for the project. Whilst not in the mega yacht league, Venus has an LOA of 80 metres and reportedly cost $138m to build in The Netherlands. The vessel is described as minimalist in style and is named after the Roman goddess of love. Mr. Jobs died of pancreatic cancer in 2011 and never had the opportunity to sail in his creation.

CALIFORNIA AGREEMENT TO PROTECT ENDANGERED WHALES

The IMO has approved new vessel traffic lanes in the approaches to San Francisco and in the Santa Barbara Channel into Los Angeles & Long Beach. Protection of endangered migrating blue, fin and humpback whales has been stepped up after five whales died in ship related accidents in 2010. The U.S, National Oceanic and Atmospheric Administration (NOAA) was instrumental in crafting the new lanes.

MISSION TO SEAFARERS CHRISTMAS GIFTS

The annual Mission to Seafarers distribution of gift boxes to seafarers at Christmas hit the headlines just before Christmas. In case you missed it, the Vancouver Sun may be found online.

GIANT RUBBER DUCK HIGHLIGHTS SYDNEY FESTIVAL

In a country which is never short of good ideas to promote a party, organizers of the annual Sydney Festival which opens tomorrow have floated a giant duck through Sydney harbor. The 50 foot duck which was designed by a Dutch artist is made of PVC and will remain moored in Darling Harbour for the duration of the festival which ends on January 23. Sydney has held its popular summer festival of music, theatre, dance and visual arts for the past 36 years.

Market Update

To place matters in context, 2012 was the worst for a quarter of a century for dry bulk carrier earnings with the Baltic Dry Index averaging only 920 points. Not since 1998 has this occurred when the average for the year was 945 points. However, to underline just how bad things currently are, the BDI closed on Thursday on 700 points compared to 708 points on Thursday two weeks ago, just before Christmas.

Cape Size Panamax Supramax

Index 1254 675 739
December 20 2012 1226 734 735
Spot time charter $5,000/day $5,800/day $7,700/day
One week ago $4,900/day $5,300/day $7,700/day

Upcoming Events

MARINERS’ WORKSHOP

Feb 6/7 – The Shipping Federation of Canada in conjunction with the Chamber of Shipping and other local groups are hosting a Mariners’ Workshop at the Terminal City Club in Vancouver. A block of rooms has been set aside for the workshop at the Terminal City Club at rates starting from $153/night. For more information and to view the draft agenda see attached registration form.

CHAMBER OF SHIPPING ANNUAL GENERAL MEETING

Mar 1 – Save the date for our Annual General Meeting and lunch at the Vancouver Convention Centre.

 

Ship of the Week

Celebrity Solstice berthed at Circular Quay, Sydney last month

Celebrity Cruise Line made thunder down under last month with the arrival of the company’s flagship, the luxurious 4.5 stars, Celebrity Solstice. Parent company “Royal Caribbean International Australia” announced the ship’s arrival more than 18 months ago, declaring that Celebrity Solstice would be the “highest-rating” ship to be based in Australia. The vessel was repositioned from a summer in the Mediterranean, sailing through the Suez canal to Dubai and Singapore before making a big splash with the locals on her arrival in Sydney on December 9.

Celebrity Solstice will reposition to the west coast via Hawaii for a series of Alaska cruises out of Seattle this year. Unfortunately the company had to settle for Seattle when the height of the vessel was about 2 meters too much to squeeze under the Lions Gate Bridge so if you want to see her, Victoria will be an option.

Built by Meyer Werft, Papenburg, Germany 2008

Owned and operated by Celebrity Cruise Lines, Miami
LOA 314.9 metres
Beam 36.9 metres, maximum width 46m
GRT 121, 878 tons
Propulsion 2 x 20.5 MW Azipods
Service speed 21 knots, maximum speed 24 knots
Capacity 2,850 passengers & 1500 crew
Cost $750 million
Sister ships: Celebrity Equinox, Eclipse, Silhouette, Reflection (4)

the iconic Sydney Harbor Bridge (left), alongside in Brisbane (centre) and alongside in Melbourne (right)

Celebrity Cruises was founded in April 1988 as a subsidiary of Greece’s Chandris Group to operate premium standard cruise ships to Bermuda, a condition of Bermuda Government contracts. However, the origins of the company go back to 1959 when Anthony Chandris, son of the Greek freight shipping company owner John Chandris, decided to establish a new passenger line to carry migrants from Europe to Australia. The family did so by purchasing second hand tonnage from mainly UK companies and even managed to secure the contract to carry mail from Greece to Australia. Subsequently the aging fleet traded for many years in the Caribbean with well maintained, but some of the oldest passenger vessels afloat. The formation of Celebrity Cruises was a giant leap to correct that situation and the company was awarded the exclusive contract for two ships to trade to Bermuda for a five year period beginning in 1990. Eventually, during a period of cruise industry consolidation, the Chandris family sold off their interests in Celebrity Cruises to Royal Caribbean International in 1997.

a sampling of the original Chandris fleet Britanis built 1932 (left), Australis built 1939 (centre) and The Victoria built in 1936 (right)

At various times, the original Chandris fleet of second hand vessels were troop ships, subsidized emigrant ships and latterly cruise ships trying to make $$ for the family. Tradition is maintained today with Celebrity Cruises being perhaps the only cruise line to maintain the tradition of Greek officers on all of their vessels.

COS News – Week ending 21 December 2012
Issue No. 240  

 

 

              

To our members, associates and many friends across the industry

TRANSPORT CANADA CLEARS SANTA FOR TAKE-OFF

Transport Canada has issued a news release today advising that Santa and his sleigh have successfully passed the pre-flight inspection process and been cleared for take-off. As of today all of Santa's paperwork has been approved, his cargo has been checked, loaded and balanced, and his flight plan has been filed. Santa Claus and his reindeer are expected to leave the North Pole on time and with all toys on board.  Boys and girls can follow Santa as he makes his way across the planet through the NORAD Tracks Santa website at www.noradsanta.org/

REMINDER OF COS HOLIDAY OFFICE HOURS

December 24-26 - closed
December 27-28 - open for normal business
December 31- open 0830 - 1200
January 01 - closed
January 02 - normal business resumes

 

$10 MILLION TO DREDGE LOCAL CHANNELS

Vital channels in the Fraser River in Steveston and Ladner will be kept navigable and continue to facilitate economic activity as a result of unprecedented collaborative work bringing together a $10 million joint commitment announced by Port Metro Vancouver, the Department of Fisheries and Oceans, the B.C. Ministry of Transportation and Infrastructure, the Corporation of Delta, and the City of Richmond.  The dredging work is expected to begin in July 2013 following the execution of finalized funding agreements between the partners and be completed prior to the March closure of the available dredging period.

RICHARDSON BUYS VITERRA ASSETS

Richardson International Ltd. has received the OK from the Competition Bureau for its deal to buy a group of former Viterra grain handling assets from Glencore International. Richardson is paying $800 million for 19 grain elevators and the associated crop input centres as well as the Can-Oat Milling business and 21st Century Grain Processing.  The deal also includes a 25 per cent stake in the Cascadia Terminal in Vancouver and the Viterra terminal in Thunder Bay, Ont.
 

CANFOR MILL TO GET $40M UPGRADE

Canfor Corp. will go ahead with a $40-million upgrade of its Elko sawmill in British Columbia. The investment will include upgrades to the sawmill, increased kiln drying capacity and construction of a planer mill complex. The company said work will start in the first quarter of next year and is expected to be complete in the third quarter. Canfor bought the Elko sawmill and another in Canal Flats in a $60-million deal for Quebec-based forestry company Tembec's assets in BC's Southern Interior. Canfor is one of the country's largest lumber producers.

 

USMX AND ILA TALKS BREAK DOWN

Despite federal mediation efforts, negotiations between the International Longshoremen’s Association (ILA) and U.S. Maritime Alliance (USMX) broke down this week against the background of an ILA mandate to strike should negotiations not be concluded by December 29 to the ILA’s satisfaction. Container royalty payments have emerged as one of the most contentious issues dividing the two sides, with the ILA taking exception to calling the payments a “bonus” because the union sees them as wage supplements. USMX is demanding a cap to these payments which cost the employers $211m in 2011, or $10 per man hour. Should a strike take place, the ILA has announced that its impact will be limited to the container sector.
 

PNW GRAIN TERMINALS AND ILWU TALKS BREAK OFF

Three out of four grain export terminals in the Pacific Northwest have given union dockworkers until noon Christmas Eve to say whether or not they accept the operators’ final contract offer. The operators also said they don’t see any value in further negotiations with the ILWU. Columbia Grain, Louis Dreyfus Commodities and United Grain Corp. all said the union’s offer did not meet their needs because it would continue to leave them at a competitive disadvantage to terminal operators in Longview and Kalama, which concluded separate, more employer friendly contracts with the ILWU.
 

PORT OF SEATTLE CLEAN FUEL INCENTIVE PROGRAM DEEMED ILLEGAL

Washington State auditors have ruled that the Port of Seattle has "exceeded its authority" in providing cash incentives to vessels that use low sulphur to a standard which exceeds regulations whilst at berth. The auditors have ruled that the port has "used public funds to pay for fuel for shipping lines without having the necessary backing of the state legislature”.  For its part, the Port has defended the so called “ABC Fuels Program” incentive scheme and denied that it was illegal. The Port of Seattle and the Puget Sound Clean Air Agency (PSCAA) have jointly provided $2.2 million in fuel subsidies since the ABC Fuels Program began in 2009, however, the port has now conceded to work with the auditor's office to restructure the program.
 

CP AND TCRC CONCLUDE AGREEMENT

Canadian Pacific and the Teamsters Canada Rail Conference, on behalf of Running Trade Employees, and Rail Traffic Controllers have concluded an agreement.  CP has received the award of federally-appointed arbitrator, William Kaplan.  The award contains, among other changes a cap on pension growth and a new pension accrual rate for future hires. The deal is three years in length and is retroactive to January 2012.
 

FOREST LEGACY FOUNDATION DONATES TO MISSION TO SEAFARERS

Once again, the Forest Legacy Foundation has generously donated the major proceeds from its 2012 golf tournaments to a number of well deserving charities. Not least amongst these is the Mission to Seafarers which this year received a very welcome cheque for $2,500. The Chamber will host a strategic planning session for the Board of the Mission on January 14.
 

PETER EVENSEN OF TEEKAY ELECTED NEXT COMMODORE OF CONNECTICUT MARITIME ASSOCIATION

The Chief Executive Officer of Teekay Shipping, Mr. Peter Evensen is be appointed to be the next Commodore of Connecticut Maritime Association in March of 2013 at the association’s next annual gathering. The award was for many years held by senior ranking mariners but in more recent times by Captains of industry including C. Sean Day and Morten Arntzen of Teekay, Mr. John Fredriksen of Frontline, Mr. Wei Jiafu of COSCO, Mr. Philippe Louis Dreyfus, Ms. Angeliki Frangou of Navios Maritime and outgoing incumbent Mr. Oivind Lorentzen of Seacor Holdings. After joining Teekay in 2003, Mr. Evansen succeeded Mr. Bjorn Moller in 2011 after a career in shipping related banking with JP Morgan Securities, Chase Securities and the predecessor firms of Chase Manhattan Bank, Chemical Bank and Manufacturers Hanover Trust.

 

Government News

TRANSPORT CANADA – PACIFIC REGION

Congratulations to Captain John Yeung who is now confirmed as the new integrated Compliance, Enforcement and Cargo Services Division of Transport Canada Marine Safety and Security in the Pacific Region.   Capt. Yeung is responsible for newly integrated port warden and port state control services in the region.
 

PROGRESS REPORTS ON PERIMETER SECURITY AND ECONOMIC COMPETIVENESS RELEASED

The first annual Beyond the Border Action Plan Implementation Report and the Canada-United States Regulatory Cooperation Council (RCC) Joint Action Plan Progress Report has been released.
 

LATEST UPDATE ON TSUNAMI DEBRIS

An update to the government’s Tsunami Debris Management Plan is now available online at:  www.tsunamidebrisbc.ca  just in time for the winter storm season along the BC coast.  The updated joint federal-provincial plan provides additional information and management protocols including: monitoring and surveillance of debris, collection and disposal of debris, and volunteer engagement.

A recent report from the Government of Japan’s Ministry of Environment suggests the majority of the wind-blown floatable debris (styrofoam, empty plastic containers, buoys, etc) has already hit the Pacific Coast and an increase in lumber-related debris may begin arriving now through June 2013. The report is available online at: http://www.env.go.jp/en/headline/headline.php?serial=1880.

CBSA PACIFIC HIGHWAY DISTRICT – BORDER BRIEF

Canada Border Services Agency has released statistics for the activity at Pacific Highway during the month of November.  Border Service Officers processed 238,574 travellers in the month - an increase of 30% over last year.  The release outlines provides a brief summary of seizures and other infractions.
 

International News

DNV and GL TO MERGE

After weeks of speculation, it has been formally announced that two leading Classification Societies, Det Norske Veritas (DNV) and Germanischer Lloyd are to merge. Please see the attached formal announcement from DNV. The new business, DNV GL Group, will be based in Oslo, with marine operations headquartered in Hamburg. DNV group Chief Executive Henrik Madsen will become Chief Executive of the new group.
 

CRUISE ASSOCIATIONS TO MERGE

It was announced this week that the cruise industry now have a one-stop shop for global resources, communication, and advocacy, thanks to the merger of nine industry groups. Cruise Lines International Association (CLIA), the European Cruise Council, Asia Cruise Association, Passenger Shipping Association, France’s AFCC, Brazil’s ABREMAR, Northwest and Canada Cruise Association, Alaska Cruise Association, and International Cruise Council Australasia have all agreed to use the name Cruise Lines International Association.
 

LLOYDS TOP 100

Lloyds List has announced its 2012 selection of the 100 most influential people in the world of shipping. Topping the list this year is Mr. John Fredriksen of Seatankers, joint second is Messrs. Nils Andresen and Soren Skou of AP Moller-Maersk and in third place Mr. Xu Zuyuan Vice Minister in China’s Ministry of Transport and having specific responsibility for water transport. For the full list, see the link: http://www.lloydslist.com/ll/news/top100/

ROYAL CARIBBEAN RANKED IN TOP 100 MOST SUSTAINABLE COMPANIES

 

                  Oasis of the Seas in St. Thomas

Royal Caribbean Cruises Ltd. (RCL) has been recognized as amongst the top 100 companies in the world for its sustainability reporting by being added to the NASDAQ OMX CRD Global Sustainability Index. The index serves as a benchmark of companies that are taking a leadership role in sustainability and performance reporting. To be considered for the Index, companies have to be listed on a major U.S. Stock Exchange and voluntarily disclose data which is critical to measurement of their carbon footprint, energy usage, water consumption, hazardous and non-hazardous waste, employee safety, workforce diversity, management composition and community investing. Royal Caribbean Cruises Ltd. is the parent company of Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises and CDF Croisieres de France, as well as TUI Cruises through a 50% joint venture. Across the six brands, the company  operates a total of 41 cruise ships with three more under construction.
 

SOMALI PIRATES STRIKE – ALMOST

     

  rescue party on Torm Kristina with HMDS Iver Huitfeldt standing off (left) and the hijacked tanker SP Brussels (right)         

Whilst they have not been successful for a while now, Somali pirates narrowly failed to take control of the Aframax tanker Torm Kristina last weekend. Pirates boarded the vessel off the coast of Muscat on Saturday night but the crew had time to raise the alarm and retreat to a citadel to hopefully await the arrival of an EU warship.  They did not have to wait too long as the Danish warship HDMS Iver Huitfeldt was only 90 miles away paying a visit to the port of Muscat. The warship was remarkably on scene in just over three hours and the pirates did what they usually do under such circumstances – bid a hasty retreat. Ironically, the vessel was enroute to a rendezvous point to board armed guards when she was attacked.

Staying with Somali piracy, the North Korean cargo ship Dae San has been hijacked along with 33 crew members by Somali guards after the vessel was detained for dumping cement off the coast. The ship’s cargo had previously been rejected by Mogadishu importers for allegedly being wet and unusable.

On the other side of Africa, heavily armed pirates ransacked the coastal tanker SP Brussels off Nigeria this week and kidnapped five crew members believed to be three Indians, a Pakistani and a Ghanaian. The incident comes only 24 hours after four Hyundai Heavy Industries employees were kidnapped from a crewing boat in the area.

GHANA INSTRUCTED TO RELEASE ARGENTINE TALL SHIP

     

                 preparing to sail and off we go – farewell Tema and “Don’t Cry for me Argentina”

A United Nations court has ordered the release of the Argentine naval tall ship ARA Libertad held since October in the port of Tema, Ghana, over a debt dispute. The UN International Tribunal for the Law of the Sea, based in Germany, ruled that the vessel enjoys immunity from arrest as a consequence of its status as a military vessel. The financial fund claimant is NML Capital, a subsidiary of US hedge fund Elliot Capital Management (ECM), one of Argentina's former creditors and which claims to be owed $370 million by the Argentine government as a result of its debt default a decade ago. In 2001 and 2002, Argentina defaulted on more than $100bn of debt, most of which was restructured, giving creditors about 30% of their money back. However, some creditors including ECM chose not to accept the loss and has been pursuing full compensation through the courts. Ghana promptly acceded to the U.N. order and the vessel sailed from Tema on Wednesday this week.
 

SPARE A THOUGHT

In March 2011, a Bulgarian ship’s master, Captain Svetlozar Sobadzhiev was arrested in Cristobal, Panama when 168 kg of drugs were found in the bow thruster compartment of his ship, the Maas Trader. He has since been held without charge in reportedly appalling conditions in a Panamanian prison with no provision for bail. Under Panama’s regime of strict liability, the onus is on suspect to prove innocence rather than for the state to prove guilt, a similar position to that unfortunately taken by Canada under this country’s much criticized oil pollution liability legislation. Despite a lack of financial support, the Council Of American Master Mariners has been trying to assist Captain Sobadzhiev but he continues to languish, as we said “without charge” as a victim of a highly questionable legal system.
 

CHARITY RUN WITH A DIFFERENCE

   

On a lighter note than previous, crew members of the Royal Navy icebreaker HMS Protector pose during a charity run off Deception Island, Antarctica two weeks ago (and we thought Cycling for Seafarers was tough).

Market Update

With Capsize rates taking a bath, Father Christmas had nothing in his stocking for us this year – in fact he removed some of what he left behind last year. The Baltic Dry Index closed on Thursday on 708 points compared to 799 points last week and 990 points the week before.

                                               Cape Size     Panamax     Supramax

Index                                         1226              734                735
One week ago                            1407              871                746
Spot time charter                  $ 4,900/day     $5,800/day     $7,700/day
One week ago                      $ 6,900/day     $6,900/day     $7,800/day

Tankers: Please see the latest market report from Christian Waldegrave, Head of Research at Teekay Corporation.

Note: Christian has accepted an invitation to be our guest speaker at the Chamber’s Annual General meeting scheduled for March 1, 2013 at the Vancouver Convention Centre West.

BP has obviously decided to take advantage of bargain basement pricing by placing a$694 million order for 10 Aframaxes and 3 Suezmaxes with South Korea’s STX Offshore & Shipbuilding this week. The vessels are for delivery starting late 2014 and through 2015.

Containers: The big news this week is the formal announcement that the two major German container lines, Hapag Lloyd and Hamburg Sud, are considering a merger. The rumor mill has been active for some time around this but now it’s clearly something more serious. Hapag Lloyd has a fleet of around 150 container ships plus seven 13,000 TEU new buildings to be delivered from Hyundai Heavy Industries in 2013 and 2014. For its part, Hamburg Sud has over 100 ships with six 9,000-teu new buildings also on order at Hyundai Heavy Industries plus a few smaller ships on order in China.

 

Upcoming Events

MARINERS’ WORKSHOP

Feb 6/7 – The Shipping Federation of Canada in conjunction with the Chamber of Shipping and other local groups are hosting a Mariners’ Workshop at the Terminal City Club in Vancouver.  A block of rooms has been set aside for the workshop at the Terminal City Club at rates starting from $153/night until January 4^th.   For more information and to view the draft agenda see attached registration form.
 

CHAMBER OF SHIPPING ANNUAL GENERAL MEETING

Mar 1 – Save the date for our Annual General Meeting and lunch at the Vancouver Convention Centre.

Dec 24              COS Office Closed
Dec 25              COS Office Closed
Dec 26              COS Office Closed
Jan 1                COS Office Closed
 

Ship of the Week

 

          Glory River – pneumatic cement carrier, transiting the Suez Canal

Glory River is a purpose built vessel for the carriage, loading & discharge, mechanically or pneumatically, of cement in bulk. The vessel has four subdivided cargo holds and a pump room designed to allow carriage of two grades of cement simultaneously.

Built 2007 by Nanindah Mutiara Shipyard, Batam Indonesia
Owned and Managed by KGJ Cement, Singapore
LOA 145 m
Beam 25.5 m
GRT 11,951 tons
DWT 19,633 MT
Speed 12.5 knots

Operators of Glory River “KGJS Cement Holding AS” (part of the Kristian Gerhard Jebsen Group) and headquartered in Bergen, Norway, owns, operates and manages the world’s largest fleet of pneumatic cement carriers. The K.G. Jebsen family has a long history in ship-owning and in the open hatch sector (Gearbulk Shipping) and bulk liquid shipping (SKS OBO Ltd.).

The global cement trade is forecast to increase steadily in the next 15 years, taking the annual volume up from an estimated 169 million tons in 2011 to around 176 million tons by 2015, and almost 206 million by 2025. This represents an overall forward expansion of over 22%, though growth will be far from uniform across individual countries and regions. Imports will be dominated by Africa and Asia.

As for cement volumes carried by ships, the profile follows that of total trade, the percentage of cement & clinker moved by sea is approximately 75%. The aggregate world fleet comprises 95 self-unloading vessels and 331 other specialist cement carriers. At any time there are usually around ten specialist cement carriers under construction or on order with an average capacity of 15,000 tons DWT.

Note: Our next newsletter will be published on January 4 2013 – thanks to our members, associates and friends for your input and support throughout 2012 – may 2013 be a good year for all.

COS News – Week ending 14 December 2012
Issue No. 239 

   

COS HOLIDAY OFFICE HOURS

December 24-26 - closed
December 27-28 - open for normal business
December 31- open 0830 - 1200
January 01 - closed
January 02 - normal business resumes

It would be particularly appreciated if members requiring oil spill response contract registrations or port access cards over this period plan accordingly.

NEW FACES AT THE CHAMBER

Mr. Andrew Knapman, a native of Liverpool  has joined us as Administrative Assistant, Member Services. Andrew holds a Batchelor of Arts (Hons), Business and Financial Management from the Sheffield Hallam University, UK.

Mr. Sean Lehodey, a native of Calgary, has joined us as Administrative Assistant, Communications, Vessel and Port Operations. Sean holds a joint Honors B.A. in Economics and Politics from Trinity College, Dublin, Ireland.
 

SAMSON’S LAUNCHES ITS MIGHTY TUG IN VANCOUVER

   

On Monday this week Managing Directors of Samson Tug Boats, Gordon Yahn and Brian McWhirter, launched the second tug in its fleet.   Designed by A. G. McIlwain and built by ABD Boats in North Vancouver, the Kootenay is purpose built for ship berthing operations in BC and is truly the most powerful tug in the world for her size.  Offering 5000 hp and 60 tonnes of bollard pull over a 19.6 m length and 9.8 m beam, Kootenay joins the 3200 hp Sushwap on the Fraser River.     

Other specifications:

            Propulsion: 2 x MTU 16V4000 rated at 2,500hp each
            Thrusters: ZF AT-7111 FP Thrusters
            Hawser Winch: Markey DYS-42 winch with Render-Recover

WESTSHORE DAMAGE

   

The accident involving the Capesize vessel Cape Apricot at Westshore Terminals last week has resulted in berth 1 being left out of commission for the forseeable future. The connecting roadway, coal-carrying conveyor belt, electric and water lines were all damaged over a stretch of approximately 100 meters. Teck Resources will continue to ship through Berth 2 at Westshore and will be shifting volumes to Neptune Terminals whilst exploring options to transfer overflow tonnage to Pacific Coast Terminals and Ridley Terminals. The Transportation Safety Board is undertaking an investigation into the circumstances of the incident.  Westshore Terminals Ltd. Partnership has filed suit against the Japanese owners of the Cape Apricot.   Westshore has published a news release today with an update to the damage sustained and its recovery.

 

CSL INTERNATIONAL JOINS GREEN MARINE

US-based CSL International, a division of The CSL Group Inc., has signed on as the newest member of Green Marine, the largest voluntary environmental program for the maritime industry in North America.

Canada Steamship Lines, also a division of The CSL Group, and owner-operator of one of the most modern fleets in the Great Lakes and St. Lawrence River region, has been a Green Marine participant since its inception in 2007.
 

TEAMSTERS AND CP RAIL SIGN 5-YEAR DEAL

Teamsters Canada and CP Rail have reached a 5-year agreement that will help increase the company's efficiencies and lower their operating ratio; while at the same time protecting maintenance workers' jobs and providing a 15 per cent increase in wages over the life of the contract.  The agreement represents more than 2,600 CP Rail workers who maintain, repair and build the track, bridges and structures. 
 

LOAD LIMIT RESTRICTIONS AT NEPTUNE TERMINALS

Neptune Terminals reminds all visitors of its load limit restrictions for deliveries to vessels at Neptune berths 1, 2 and 3. All vehicles driving out onto the berth service dock areas cannot have a total gross vehicle weight exceeding 15 MT.  Failure to abide by this restriction will result in suspension of terminal access privileges.  Vehicles exceeding 15 MT must park in designated areas adjacent to the service dock.  Deliveries should between 0900 - 1500 hrs and communicated to the terminal in advance.  
 

Government News

GOVERNMENT OF CANADA ANNOUNCES INTENTION TO SELL RIDLEY TERMINALS

The Government of Canada announced that it intends to sell Ridley Terminals Inc. 

“The Government of Canada regularly reviews its corporate assets to ensure the rationale for continued public ownership is still relevant and tax dollars are being spent wisely,” said the Honourable Ted Menzies, Minister of State (Finance). “Ridley Terminals once operated at a loss requiring millions in government support, but now is an asset of considerable value. Private ownership could allow the terminal to maximize its contribution to economic growth, jobs and new investments.”

“Moving away from public ownership of Ridley Terminals would align it with other major marine terminals in Canada, which are owned and operated by private companies,” said the Honourable Steven Fletcher, Minister of State (Transport). “Our Government will seek the best value from a buyer that will operate Ridley Terminals with open access on a long-term, sustainable basis.”

The Canada Development Investment Corporation (CDIC) will serve as the Government’s agent to ensure that any sale process is conducted using best commercial practices. A federal Crown corporation reporting to the Minister of Finance, CDIC’s mandate is to manage selected commercial interests of the Government of Canada.  The sales process will commence in the coming weeks with a market sounding. Parties interested in participating in the sales process should contact CDIC for further information at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . 

 

TRANSPORT CANADA INTRODUCES RAIL FREIGHT SERVICES ACT BILL

Transport Canada this week introduced the Fair Rail Freight Service Act bill to give companies that ship goods by rail the right to a service agreement with the railways including an arbitration process to establish an agreement when commercial negotiations fail. The moves is in line with a government undertaking following the recommendations of the Rail Freight Service Review Panel in 2011 under which shippers would have the absolute right to a service level agreement with their rail service partners. The decision to legislate follows months of failed negotiations between the parties to establish a service level agreement template.

In response CN Rail commented that the introduction of new freight service regulations that include fines is an unnecessary intrusion that puts the engine of the country's economic growth at risk. "Such an approach would stifle innovation, chill the positive service momentum that's taken hold and result in potentially unintended consequences for the rail industry and the customers we serve," CN president and chief executive Claude Mongeau said after the federal government tabled the legislation. He said there is no evidence of systematic rail service performance problems in Canada that warrants Ottawa's intervention to level the playing field with shippers who have long complained about poor service. "The objective fact is that Canada has a world-class rail system, one known internationally for efficiency and reliability — a key asset for a trading nation like Canada — and that reflects a well-functioning market for rail services."
 

CANADA-US SIGN ARCTIC COOPERATION FRAMEWORK

The Commander of Canadian Joint Operations Command, Lieutenant-General Stuart Beare, and the Commander of North American Aerospace Defense Command (NORAD) and United States Northern Command, General Charles H. Jacoby, Jr. (US Army) signed two documents – the Tri Command Framework for Arctic Cooperation and the Tri Command Training and Exercise Statement of Intent – during the 230th meeting of the Canada-US Permanent Joint Board on Defense, in Colorado Springs, Colorado today.

The Canada-US Permanent Joint Board on Defense, representing the highest-level bilateral defence and security forum between Canada and the United States, witnessed the signing of the Tri Command Framework for Arctic Cooperation and the Tri Command Training and Exercise Statement of Intent

The Tri Command Framework for Arctic Cooperation acknowledges that defence issues do not drive Arctic affairs and that the Canadian and US militaries will support other departments and agencies in response to threats and hazards in the region when requested and directed.  In that context, the goal of the Framework is to promote enhanced military cooperation in the Arctic and identify specific areas of potential Tri Command (Canadian Joint Operations Command, United States Northern Command and NORAD) cooperation in the preparation for, and conduct of, safety, security and defence operations.. Areas of potential improved cooperation in the Arctic include planning, domain awareness, information-sharing, training and exercises, operations, capability development, and science and technology.

Tri Command Training and Exercise Statement of Intent, enhances joint and combined readiness in support of safety, security and defence missions through combined training and exercises and reinforcing partnerships and collaboration among the Commands.
 

MARPOL ANNEX V - SHIPS' GARBAGE MANAGEMENT PLAN

Revisions to MARPOL Annex V sets new regulatory requirements regarding the disposal of garbage from ships and will come into force on 1 January 2013. The new amendments prohibit the disposal of almost all kinds of garbage at sea with the exemption under specific requirements of food waste, animal carcasses, cargo residues contained in wash water and environmental friendly cleaning agents. As a result of these regulations more and more ships will dispose their ship-generated waste to reception facilities ashore. MARPOL Annex V applies to all ships.

According to revised MARPOL Annex V shipboard generated garbage is to be grouped into the following categories:

• Plastics
• Food wastes
• Domestic Wastes
• Cooking Oil
• Incinerator Ashes
• Operational Waste
• Cargo Residues
• Animal Carcasses
• Fishing Gear

 When a ship is discharging chemicals agents from hold wash water to the sea and records such action to the Garbage Record Book, the ship should be able at any time to provide evidence that the cleaning agent or additive used was not harmful to the environment. Such evidence may be provided by the chemicals’ manufacturer under the form of signed and dated statements providing information that the chemical/product meets the criteria for not being harmful to the marine environment. This might form part of a Safety Data Sheet or be a stand-alone document.  Of course the same applies for the cargo that was previously stored within the hold, meaning that hold wash water and cargo residues cannot be discharged if the previous cargo contained within the ship’s hold was not declared as not being harmful to the marine environment according to Section 4.2 of the International Maritime Solid Bulk Cargoes (IMSBC) Code.

It is likely that shipboard garbage destined to be sent to a port waste reception facility will need to be segregated. The requirements for the port concerned should be sought and followed in this respect. Given that some ports may not be able to receive and process all types of waste, the garbage processing capability of the port should be checked prior to arrival.

Every ship of 100 gross tonnage (instead of 400 GT required by the superseded MARPOL Annex V) and above, and every ship which is certified to carry 15 or more persons, shall carry a garbage management plan (based on IMO Guidelines MEPC.220(63) and in working language of the crew).

In addition to the Garbage Management Plan every ship of 400 gross tonnage and above and every ship which is certified to carry 15 or more persons engaged in voyages to ports which are  under the jurisdiction of another Party to the Convention should maintain a Garbage Record Book  in the form specified in the appendix of the revised Annex. The requirement to maintain a Garbage Record Book remains the same with the superseded MARPOL Annex V with the difference that the layout of the form which will record the garbage discharges is different from the superseded one.

Apart from the above which are requirements of the revised MARPOL Annex V, in order to enhance the implementation of the onboard Garbage Management Plan and to exercise better garbage handling procedures in overall, meaning from the generation of the garbage onboard to the appropriate disposal of them, ships’ crews and agents could make use of IMO’s developed standard format for the advance notification of waste delivery to port reception facilities as defined in IMO Circular MEPC.1/Circ.644.

In addition, where a ships’ Master or agent finds reception facilities in a port inadequate (for example the facility required is not available or is inconveniently located, has unreasonable charges and/or cause undue delay) the Master should forward the information contained in MEPC.1/Circ.469/Rev.1, together with any supporting documentation, to the Administration of the flag State and, if possible, to the competent Authorities in the port State.

Finally, following a ships’ use of port reception facilities the ships’ crews and agents should encourage waste reception facilities service providers to use the IMO standard format for the waste delivery receipt as outlined in MEPC.1/Circ.645

For further reading regarding Garbage Management and revised MARPOL Annex V requirements you can also refer to the following:

o   Revised MARPOL Annex V MEPC.201(62)

o   Guidelines for the implementation of MARPOL Annex V MEPC.219(63)

o   Guidelines for the development of Garbage Management Plans MEPC.220(63)

o   Guide to good practice for port reception facilities providers and users MEPC.1/Circ.671

o   Advanced notification form for waste delivery to port reception facilities MEPC.1/Circ.644

o   Reporting alleged inadequacies of port reception facilities MEPC.1/Circ.469/Rev.1

o   Waste delivery receipt IMO format MEPC.1/Circ.645

International News

UN CLIMATE CHANGE CONFERENCE IN DOHA EXTENDS KYOTO AGREEMENT

The annual UN conference on climate change (COP 18) which wrapped up in Doha last weekend was concluded with an agreement to extend the contentious Kyoto Agreement until 2020. Therefore, the elements of Kyoto which have made work on GHG reduction at the IMO so difficult, namely “Common But Differentiated Responsibility”, remain entrenched in principle. A complete Doha over-view from a shipping perspective is provided in an attachment to this week’s newsletter as received from the International Chamber of Shipping.
 

PANAMA CANAL AUTHORITY MEETING WITH INDUSTRY

New Panama Canal Administrator, Mr. Jorge Quijano recently met with a broad group of marine industry representatives at the offices of the International Chamber of Shipping in London. Attending for industry was ICS, BIMCO, Intertanko, Intercargo, CLIA, OCIMF, SIGTTO, WSC and ASF. Mr. Quijano made a presentation detailing progress on canal expansion and on future policy on transit tolls which we attach for interest.
 

CMA CGM MARCO POLO FIRST ARRIVAL IN SOUTHAMPTION

   

Any concerns over the port of Southampton’s ability to handle mega container ships were laid to rest last week when CMA CGM Marco Polo made her maiden call at the port’s DP World Terminal. At LOA 396m, beam 53.6m and a draft of 16m, the vessel was reported to have made a seamless port call. Other European ports in her schedule were Hamburg, Bremerhaven, Rotterdam, Zeebrugge and Le Havre. CMA CGM Marco Polo carries 21 rows of containers across, compared with 23 on the Emma Maersk class vessels. With even larger vessels in prospect, several container terminals in Europe are transitioning to container gantry cranes having an outreach of 24 containers across. There are currently around 50 ports worldwide regularly handling container vessels of 10,000 TEU capacity and above.

CMA CGM Marco Polo is the latest vessel to join the UK register which now stands at 17.8 million GRT, the 11^th largest in the world thanks to a successful tonnage tax regime. She brings the company’s fleet of UK registered vessels to 35. Zodiac Maritime has the largest fleet under the UK flag followed by Maersk and Evergreen.
 

CORVUS J BOW DAMAGE PICTURES

               

 damage to the bow of the feeder container ship Corvus J after colliding with ro-ro carrier Baltic Ace (right) which sank off the coast of Holland with the loss of 11 lives

Svitzer Salvage has been awarded the contract to remove oil from the car carrier Baltic Ace, which sank in the North Sea last week leaving 11 seafarers confirmed or presumed dead. The vessel sank after a collision with feeder containership Corvus J on December 5 in the approaches to the port of Rotterdam. Baltic Ace is reportedly insured for around of $60 million.
 

BRAZIL LAUNCHES NEW PORT LOGISTICS INVESTMENT PROGRAM

Brazil has launched a $26 billion logistics investment program to boost attempts to modernize its port development program. The program will establish a new regulatory framework to include the integration of modal logistics, capacity planning, enablement of private sector investment and pilotage services. A further $1.3bn will be invested in waterways, road and railway access and for shipyards at Brazil’s 18 main ports.

 

ARGENTINA CONTINUES TO HARASS CURISE SHIPS CALLING ON FALKLANDS

    

                              Seabourn Sojurn

 A campaign to stifle the economy of the Falklands Islands is the latest move in the continuing efforts of Argentina to force the UK to renegotiate the sovereignty of the South Atlantic islands. The latest cruise ship to suffer harassment was the UK flagged Seabourn Sojourn which was ordered by the Argentine coastguard not to enter Falklands waters. The ship ignored the order and called at Port Stanley as scheduled.
 

MAERSK REVIEWS BENEFITS OF BULBOUS BOWS

 

Maersk Container Line has concluded that bulbous bows on its containerships are no longer cost effective. The theory goes that with an average additional weight of 140 tons, the cost of additional fuel at today’s economic steaming levels is exceeded by the benefits. Across the Maersk Group of companies, fuel accounts for $7 billion in operating costs so even a 1% improvement translates to savings of $70 million. Other technological improvements to cut fuel consumption across the fleet include measuring and challenging the performance of individual vessels, the use of boilers in the chimney of auxiliary engines in a move to reuse heat and alleviate oil-fired boilers, and use of the main engine cooling system to pump seawater only when needed, thus saving pump power usage. This alone is calculated to save around 0.6% of fuel consumption.  The company is also studying the installation of fins on its ship’s propellers to eliminate the vortex created behind the prop, thus reducing torque and converting it into useful thrust. This would save 1.3% of fuel with installation. In total it is estimated that the combination of improvements undertaken and proposed amount to efficiencies of between 4.8% and 5.8% which translate to potential savings of around $350m per year.
 

Market Update
Thanks to a free fall in rates for Capsizes, the Baltic Dry Index held no Christmas cheer for owners this week eventually closing on Thursday on 799 points compared to 990 points last week and 1097 points the week before.

                                              Cape Size     Panamax      Supramax

Index                                        1407              871                746          
One week ago                           1897              940                765
Spot time charter                $ 6,900/day    $6,900/day    $7,800/day
One week ago                    $12,800/day    $7,500/day   $8,000/day

Containers:  Drewry’s World Container Index shows that the baseline Shanghai/Los Angeles rate fell $49 to $1,975 per FEU last week. With load factors reportedly running at only around 85%, the proposed mid December General Rate Increase is now widely considered unlikely to take effect before the pre-Chinese New Year rush gets underway, even if then.

 

Upcoming Events

MARINERS’ WORKSHOP
Feb 6/7 – The Shipping Federation of Canada in conjunction with the Chamber of Shipping and other local groups are hosting a Mariners’ Workshop at the Terminal City Club in Vancouver.  A block of rooms has been set aside for the workshop at the Terminal City Club at rates starting from $153/night.  For more information and to view the draft agenda see attached registration form.

Dec 5               COS Board of Directors Meeting
Dec 19              COS Customs Working Group Meeting @ 08:30
Dec 19              COS Liner Committee Meeting @ 10:00
Dec 20              COS Navigation & Pilotage Committee Meeting at 10:00
Dec 24              COS Office Closed
Dec 25              COS Office Closed
Dec 26              COS Office Closed`
Jan 1                COS Office Closed
 

Ship of the Week

 

                                  Bunga Banyam - palm oil / chemical tanker

A recent visitor to Vancouver was the palm oil and chemical carrier Bunga Banyan owned and operated by Malaysian International Shipping Corporation (MISC)

Built in 2011 by Shinasb Yard, Tongyoung, South Korea
Owned by Malaysian International Shipping Corporation, Kuala Lumpar, Malaysia
LOA 183m
Beam 32m
GRT 29,124 tons
DWT 45,444 mt
Service speed 13.8 knots
Sister ships: Bunga Begonia & Bunga Balsam

  

                                        alongside at Vancouver Wharves (left)

Malaysia International Shipping Corporation formed in 1968 has developed into become a fully integrated maritime, offshore floating solutions, heavy engineering and logistics services provider. This was brought about when MISC became a subsidiary of PETRONAS in 1998 providing the opportunity to leverage the company’s shipping expertise into the fields of oil & gas. The company today operates a diversified fleet of around 160 ships.

Through its petroleum arm – AET, MISC operates a modern fleet of crude and product tankers from London, Singapore, Houston and Gurgaon in India. It also has on order four VLCCs, four Suezmax tankers and two DP shuttle tankers. AET is the third largest owner-operator of Aframax tankers in the world and currently occupies the leading share of the US Gulf ship-to-ship transfer business through its lightering operations. MISC has also developed global tank terminal business via the acquisition of a 50% interest in VTTI B.V. Not content to rest, MISC is also fast establishing its footprint in the offshore industry with FPSOs/FSOs.

Indonesia is the largest producer of palm oil having surpassed Malaysia in 2006. Mr. Robert Kuok's Wilmar International Limited has plantations and 25 refineries across Indonesia, to supply feedstock to new biodiesel refineries in Singapore, Riau, Indonesia and Rotterdam. About 60% of palm oil exports are shipped to China, the European Union, Pakistan, the United States and India. They are mostly made into cooking oil, margarine, specialty fats and chemicals.

MISC last year decided to exit the container sector having suffered heavy losses in recent years. For its part, mother company Petronas is the lead partner in the Pacific Northest LNG project which proposes to develop Lelu Island off Prince Rupert as an LNG export terminal in a $10 billion investment.