COS Weekly Newsletter - Friday, 10 September 2021

COS Weekly Newsletter - Friday, 10 September 2021


COS Weekly Newsletter - Friday, 10 September 2021


Article

‍Local 

Maersk Canada's new transload facility now open

Containers started arriving this week at the newly opened Pacific Transload Express facility adjacent to CP's Vancouver Intermodal Facility.  The 117,000 square foot facility developed by Maersk Canada and Canadian Pacific is expected to eliminate more than 100,000 truck trips per year in the Vancouver area—almost 60,000 round trips per year—and save more than 4,000 tons of carbon dioxide (greenhouse gas) emissions per year with shorter and energy-efficient rail connections between Centerm, Vanterm, and Deltaport. The facility will transload fast-moving consumer goods (FMCG) and auto parts from international containers into 53-foot trailers for domestic distribution.

Consultations on container trucking moving to next phase

Consultations on British Columbia's Off-Dock Drayage Recommendation Report are moving to the next phase with face-to-face meetings between the BC container trucking commissioner and key stakeholders set to take place next week. The Off-Dock Drayage Recommendation Report was published on May 12, 2021, in response to a request from Transportation Minister Rob Fleming to examine opportunities to make targeted adjustments to the rates and policies for off-dock drayage activity in the Lower Mainland. The consultations being undertaken by the commissioner will inform the next round of improvements for those working in the container trucking sector. Six stakeholder groups, including the Chamber of Shipping, and 15 individual drivers so far have registered to participate in next week’s sessions.

In acknowledging National Trucking Week, we echo Minister Fleming's statement and thank all truck drivers for their commitment, dedication, and professionalism particularly throughout the pandemic.

New direct service between Halifax and India

The Port of Halifax will receive the first direct call between the West Coast of India and a Canadian port when the maiden call of the MSC Indus 2 Service arrives early next month. The service will berth at the South End Container Terminal operated by PSA Halifax. The first sailing from Mundra commenced on September 7, 2021, with MSC Stella. The port rotation will be as follows: Mundra – Nhava Sheva – Gioia Tauro – Sines – Halifax – Norfolk – Baltimore – Miami – Freeport – Mundra. PSA Halifax’s South End terminal features the longest and deepest berth of any Canadian port in Eastern Canada, with a continuous quay length of 800 metres at a depth of 16.5 metres, terminal area of 32 hectares, five super-post-Panamax cranes.

‍Government 

Coast guards joint training during Northwest passage transit

The Canadian Coast Guard crew recently carried out a joint search and rescue exercise with partners from the United States Coast Guard and Canadian Rangers, while respecting COVID-19 protocols, near Resolute Bay, Nunavut on September 6th, 2021. The exercise involved Canadian Coast Guard Ship (CCGS) Amundsen, and United States Coast Guard Cutter (USCGC) Healy searching the area for missing persons at sea, using multiple techniques and methods. The joint exercise allowed crews from both coast guards to exchange best practices and experiences, and build working relationships in Canada’s unique Arctic environment. The Healy, a 420-foot-long medium icebreaker, departed its Seattle homeport July 10 for its Arctic deployment and circumnavigation of North America. Since departing, the crew has been executing Coast Guard missions, supporting oceanographic research, and conducting training to develop the Coast Guard’s future Polar security cutter sailors.

‍US News

USDA provides guidance on Asian Gypsy Moth inspection challenges

With recent COVID-19 closures in Chinese ports, vessels are encountering challenges with obtaining the required phytosanitary certificates from the recognized Asian Gypsy Moth inspection authorities.  The US Department of Agriculture has issued new guidance to address these challenges.  The guidance is similar to what the Canadian Food Inspection Agency has advised, however no official update is expected to be issued before the end of Canada's high-risk period on September 15th.

LA-LB preparing for record year

While 44 container ships can be seen idling off the coast of Los Angeles-Long Beach today, the ports are preparing for a record 20 million TEU year.  In the first seven months of 2021, the ports handled a combined total of 11.9 million laden and empty TEU, according to the ports’ respective websites. That is 34.7 percent higher than the January through July period last year. Los Angeles handled 11 extra-loaders in August and 11 more are scheduled so far for September, a port spokesperson said. Long Beach handled 13 extra-loaders in August, with five announced so far for September.  The average wait time for ships to enter the port now sits at 7.6 days, according to Port of Los Angeles data, up from 6.2 earlier in the month.

FMC announces National Shipper Advisory Committee members

The Federal Maritime Commission today announced the membership of its newly formed National Shipper Advisory Committee. The Committee is comprised of 24 members, evenly divided between those who export cargo from and those who import cargo to the United States, that will advise the Commission on policies relating to the competitiveness, reliability, integrity, and fairness of the international ocean freight delivery system. Among those named are representatives from Amazon, Walmart, and Cargill.

Port of Coos Bay Oregon signs MOU to build container terminal

The Port of Coos Bay is partnering with NorthPoint Development to build a multimodal container facility in Coos Bay on the Oregon Coast.  With a memorandum of understanding in place, the port and NorthPoint aim to finalize a contract by the end of the year, with construction expected to be completed within five years. The facility will create up to 250 permanent jobs and have an annual capacity of 2 million TEUs.  The estimated $1 billion will largely be funded by the Missouri-based firm, NorthPoint. The port is moving forward with its Channel Modification Project, intended to expand the channel to 45 feet deep and 450 feet wide.

‍International News

ICS sets out plans for global carbon levy to expedite industry decarbonization

The global trade association for ship operators, the International Chamber of Shipping, (ICS) has put forward a comprehensive proposal for a global levy on carbon emissions from ships, in what would be a first for any industrial sector. ICS, which represents the world’s national shipowner associations and more than 80% of the merchant fleet, presented a submission to the UN on Friday, calling for an internationally accepted market-based measure to accelerate the uptake and deployment of zero-carbon fuels. According to papers handed to the International Maritime Organisation (IMO), the UN’s regulatory body on shipping, the levy would be based on mandatory contributions by ships trading globally, exceeding 5,000 gross tonnage, for each tonne of CO2 emitted. The money would go into an ‘IMO Climate Fund’ which, as well as closing the price gap between zero-carbon and conventional fuels, would be used to deploy the bunkering infrastructure required in ports throughout the world to supply fuels such as hydrogen and ammonia, ensuring consistency in the industry’s green transition for both developed and developing economies.  More details here.

Seafarers set to receive 4.5% pay increase

Seafarers will be getting a pay raise of 4.5% over the next two years after striking a deal with maritime employers represented by the Joint Negotiating Group (JNG). The International Bargaining Forum (IBF), which brings together the seafarers represented by the International Transport Workers’ Federation (ITF) and the JNG, has agreed to an increase on wages and compensations of 3% from January next year and another increase of 1,5% from January 2023. The agreement was also reached for an increase in JNG members’ rebate from the ITF Welfare Fund to 20% to contribute to the IBF Seafarers Support Fund. The negotiations were particularly challenging due to the profit variations in the industry, as well as the increased operational costs due to the pandemic. However, both parties acknowledged the need to recognize the sacrifices that seafarers have made during the pandemic, continuing to keep global trade moving whilst unable to return home following the expiry of their contracts, and receiving no wage increase in 2021.

‍Events

Sep 14 - Vancouver Grain Exchange Council Meeting @ 1130

Sep 14 - ICS Board Meeting @ 1230

Sep 14 - Vancouver Seafarer Welfare Committee @ 1200

Sep 14 - Association of Canadian Port Authorities Virtual Conference

Sep 15 - Plimsoll Club Board Meeting

Sep 16 - VMAA Board Meeting 

Sep 16 - Vancouver Transportation Club 70th Annual Golf Tournament
Sep 22 - COS Operations Committee Meeting @ 1230
Sep 23 - COS Liner Committee Meeting @ 0930

Sep 29 - WMCC PACMAR / NANS Committee Meeting @ 1000

Sep 30 - National Day for Truth and Reconciliation - Office Closed
Oct 5 - ISSC Board Meeting
Oct 24 - Association of Pacific Ports Annual Conference, San Diego

‍Ship of the Week

Sept. 10 - Ever Ace

On September 8, 2021, the Megamax container ship Ever Ace called at the Port of Hamburg for the first time. With a slot capacity of 23,992 TEUs, the Ever Ace is currently the largest container ship in the world. With a length of 400 metres, a width of 61.5m and a maximum draught of 16m, the mega-carrier can accommodate 28 TEU more than the previous biggest ship record holder, HMM Algeciras.

Taiwanese shipping company Evergreen Marine commissioned the vessel to be built at the South Korean shipyard Samsung Heavy Industries for around US$150 million. Ever Ace left the shipyard on 28 July bound for Qingdao. Another five ships of this type are to be built at the shipyard.

The Ever Ace set a record on its maiden voyage for the number of 20-foot standard containers (TEU) transported from Asia to Europe. According to information from the industry service Alphaliner, the vessel transported a total of 21,718 TEU. The Ever Ace surpassed the old mark of the CMA CGM Jacques Saadé by 285 containers.


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