The Federal Maritime Commission voted at its meeting last week to take this action when it approved the recommendations of Commissioner Rebecca Dye as set forth in her final report of the Fact Finding 28 investigation. The investigation found that demurrage and detention charges can incentivize cargo to move expeditiously and that standardizing practices for when these fees are levied would improve velocity at ports and that focusing demurrage practices on notice of when cargo is actually available would likely eliminate many of the circumstances that lead to the imposition of demurrage fees. Toward that goal, the Commission will convene Innovation Teams that will address how to provide:
On November 5, 2018, CARB staff published the report, Preliminary Health Analyses: Control Measure for Ocean-Going Vessels At Berth and At Anchor and has since has received requests from the public to provide the modeling files for the health analyses and the emission inventory methodology. In support of this request, CARB is releasing the modeling files and databases used to conduct the health risk assessment discussed in the analyses and will release the emissions inventory methodology by early January. CARB is also providing additional time for comments on the health analyses through to January 31, 2019 via their electronic comment log.
According to Bloomberg, the US turned into a net oil exporter briefly last week, breaking almost 75 years of continued dependence on foreign oil. The shale revolution has transformed oil wildcatters into billionaires and the US into the world’s largest petroleum producer, surpassing Russia and Saudi Arabia. The power of OPEC has been diminished, undercutting one of the major geopolitical forces of the last half century. In an effort to boost oil prices and reduce oversupply, OPEC has just announced a cut in oil production by 1.2 billion barrels per day. Oil prices spiked immediately following the decision.
Days after the Virgin announced its investment in Brightline's rail service, Sir Richard Branson unveiled plans for a palm-tree inspired design for a Virgin Voyages cruise terminal in the Port of Miami. Construction of Virgin Voyage’s 100,000-square-foot terminal — designed by local architects Arquitectonica — will begin next year. Approval from the Miami-Dade Commission is expected in the coming weeks. PortMiami director and CEO Juan Kuryla said money for the terminal will come from Virgin and the port’s capital fund, made up of fees from shipping and cruise companies. The county will earn a portion of its investment back in the form of surcharges from Virgin passengers. Kuryla estimates that the terminal will cost $150 million.
Hong Kong-listed Orient Overseas International (OOIL) is getting ready to start the sale process of its Long Beach container terminal on the US West Coast. The sale could be one of the largest terminal deals ever and is expected to attract mainly North American private equity, pensions funds and other financial investors. OOCL had agreed to sell the Long Beach terminal while the US governments Committee on Foreign Investment in the United States (CFIUS) was reviewing OOIL’s US$ 6.3 billion take over by COSCO Shipping Holdings earlier this year.
The California Air Resources Board (CARB) staff is extending the review and comment period for the preliminary draft of the health analyses for the vessels at berth rulemaking to December 17th. These health analyses are being released for public review in advance of the Initial Statement of Reasons (ISOR) for the Control Measure for Ocean-Going Vessels At Berth and At Anchor to support early public review and comment on a draft, and the opportunity for staff to make revisions prior to publication of the ISOR.
The Federal Maritime Commission has cleared PierPass to launch its revised program of extended gate hours at the Ports of Los Angeles and Long Beach beginning Monday, Nov. 19. The revised fees include a reduced Traffic Mitigation Fee (TMF) across all hours of terminal operation to help offset the cost of operating extended gates. As previously announced, the current TMF of $72.09 per TEU (twenty-foot equivalent unit) charged during peak hours only will be reduced to $31.52 per TEU or $63.04 for all other size containers and charged during all shifts on all days. The new changes are being made in response to requests from port users, who seek increased flexibility and a reduction in the bunching up of trucks that often occurs before the start of the nighttime shifts.
President Trump announced Wednesday that he intends to fill two commissioner vacancies at the Federal Maritime Commission. Daniel B. Maffei of New York will likely return to serve the remainder of a five-year term, which expires June 30, 2022. Maffei is former congressman and a professor at the George Washington University Graduate School of Political Management. Trump also announced his intention to nominate L. E. Sola of Florida to the FMC for the remainder of a five-year term expiring June 30, 2023. Sola currently serves on the Florida Board of Pilots Commissioners and is a licensed international ship broker and former consultant with Arden & Price.
The US Coast Guard has issued its 13th Ballast Water Management System Type Approval Certificate to JFE Engineering Corporation. The treatment principle of the BallastAce BWMS consists of filtration with chemical injection during uptake and neutralization during discharge. This approval covers models with maximum treatment rated capacities between 500 m3/h and 3,500 m3/h.
The Coast Guard Marine Safety Center issued the 12th US Coast Guard Ballast Water Management System Type Approval Certificate to Qingdao Headway Technology Co., Ltd. The treatment principle of the OceanGuard BWMS consists of filtration with electrolysis during uptake and neutralization during discharge. This approval covers models with maximum treatment rated capacities between 65 m3/h and 5,200 m3/h. This BWMS has not been shown to meet the requirements of 46 CFR Subchapters F and J, and may not be installed on a US flagged vessel.
On November 5, 2018, the United States fully re-imposed the sanctions on Iran that had been lifted or waived under the JCPOA. These are the toughest US sanctions ever imposed on Iran, and will target critical sectors of Iran’s economy, such as the energy, shipping and shipbuilding, and financial sectors. The United States is engaged in a campaign of maximum financial pressure on the Iranian regime and intends to enforce aggressively these sanctions that have come back into effect. The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) posted to its website additional frequently asked questions (FAQs) that provide guidance on the sanctions that have been re-imposed. In addition, OFAC amended FAQ 256 and FAQ 417, and archived outdated FAQs. More than 700 individuals, entities, vessels and aircraft are now on the sanctions list, including major banks, oil exporters and shipping companies.
US CBP announced that beginning January 1, 2019 all commercial truck shipments containing Section 321 merchandise will be required to file an advance electronic manifest in accordance to the guidelines specified in the Trade Act of 2002. The rise in eCommerce combined with the increase in the De Minimis value, has resulted in a significant growth in shipments being manifested and released under Section 321. Beginning November 26, 2018, CBP will begin a phased approach for non-compliance with conveyances being referred to secondary for processing. Then starting January 1, 2019, carriers which make no attempt to comply with the electronic manifest requirement will be issued a monetary penalty ($5000 for the first offence and $10,000 for subsequent offences).
The Coast Guard published a Final Rule in the Federal Register that permits tankers with automatic pilot systems that meet certain international standards to operate using those systems in shipping safety fairways and traffic separation schemes specified in 33 CFR parts 166 and 167, respectively. This final rule removes the previous regulatory restriction, updates the technical requirements for automatic pilot systems, and promotes the Coast Guard’s maritime safety and stewardship missions by enhancing maritime safety. This final rule is effective Dec. 5, 2018.
The United States Coast Guard has issued a Marine Safety Information Bulletin (MSIB number 00-12 REV1) to provide information and guidance regarding the provisions for employment of non-US credentialed personnel on board certain US documented vessels.
In the United States, results from the ILWU’s first contested election in 18 years have resulted with the certification of William Adams as president, Wesley Furtado as vice-president (Hawaii) Robert Olvera as vice-president (Hawaii) and Edwin Ferris as secretary-treasurer. Initial results were disputed over alleged discrepancies involving ballots cast by the Panama affiliate. A 2-month review process was completed on Tuesday when the international executive board certified the results. The existing ILWU contract was extended in 2017 for a further 5 years to July 1st, 2022.
The Marine Safety Center issued the 11th US Coast Guard Ballast Water Management System Type Approval Certificate to Hyundai Heavy Industries Co., Ltd., after a detailed review of the manufacturer’s type approval application determined the system met the requirements. The treatment principle of the HiBallast BWMS consists of filtration with electrolysis during uptake and neutralization during discharge. This approval covers models with maximum treatment rated capacities between 75 m3/h and 10,000 m3/h.
The Coast Guard recently published a letter to the Coast Guard-accepted independent laboratories (ILs) providing guidance for evaluating manufacturer-identified operational limitations during type approval testing of ballast water management systems (BWMS). The letter clarifies the responsibilities of the BWMS manufacturer, the Coast Guard-accepted IL, and the Coast Guard, with regard to evaluating and assessing operational limitations of BWMS and including limiting conditions referenced in type approval certificates, and how to amend these conditions.