COS Weekly Newsletter - Friday, 16 December 2022

The Port of Prince Rupert has achieved a significant milestone in its emissions reduction measures with expanded shore power capacity at DP World Prince Rupert’s Fairview Container Terminal. New electrical infrastructure was installed at the Terminal’s north berth and upgrades were made to the south berth through a partnership between the Prince Rupert Port Authority (PRPA), DP World, and BC Hydro. The full commissioning of the shore power system now allows ships at both berths to shut down their main generators and rely on specially equipped dockside power connections while their cargo is being loaded and unloaded. The first ship to utilize the new north berth shore power system was the COSCO CSCL Summer on December 12, 2022. A COSCO Shipping Lines vessel was also the first to plug into shorepower in the Port of Vancouver in 2018.  William Song, COSCO's GM-Marine Operation, was in attendance for the commissioning and received on behalf of COSCO, the Green Wave Award from Shaun Stevenson, President and CEO, of  the Prince Rupert Port Authority.

The Prince Rupert Port Authority, DP World Prince Rupert, and BC Hydro contributions to the project were supported by $2.2 million in funding toward the $7.6 million project provided through Environment and Climate Change Canada’s Low Carbon Economy Challenge Fund and was coordinated through BMO Radicle.

Clear Seas, in partnership with the Angus Reid Institute, conducted its fourth biennial study in its public opinion series measuring the perceptions of Canadians towards the marine shipping industry. 34 percent of Canadians now recognize that most products they use daily are transported by sea, representing a 55% increase in awareness compared to 2020. Global issues such as inflation, Russia’s invasion of Ukraine, and the COVID-19 pandemic have increased their level of consciousness of the workings of the global network of goods. The view of the industry varies on Canada’s east and west coasts, despite shipping’s importance as an economic cog in both regions. Unfortunately, three-in-ten (29%) in British Columbia have a negative impression of the industry, more than twice the number of those in Atlantic Canada (13%) who say the same.

Unifor Local 101R filed a Notice of Dispute in its negotiations with Canadian Pacific (CP), requesting the assistance of the Federal Mediation and Conciliation Service.  Unifor Local 101R represents 1,200 workers from British Columbia to Quebec, who service locomotives and freight cars, and produce track and freight car/locomotive components. The bargaining committee has reported that contract negotiations are moving productively and that economic packages will be discussed with the Federal Conciliator the week of January 9, 2023 in Vancouver.

Unifor Local 100 and Council 4000 bargaining committees have filed a request for conciliation in their contract talks with CN Rail.  Unifor’s national collective agreements with CN that cover the working conditions of more than 4,000 workers, expire on December 31, 2022. Local 100 represents locomotive and freight-car mechanics, electricians and apprentices. Council 4000 represents over 3,000 workers including workers at CN, Intermodal, CNTL and CN Savage Alberta Railway.  If conciliation is granted, a 60-day period will begin on January 1, 2023 and end on March 1. If no agreement is reached, the union could be in a legal strike position by March 22, 2023.

The province of British Columbia is developing a Coastal Marine Strategy with First Nations that will lay out a plan for addressing priorities for coastal-marine ecosystem health and community well-being. The Policy Intentions Paper was developed and published by the Ministry of Water, Land and Resource Stewardship this week as part of the province's engagement with communities and stakeholders. The Coastal Marine Strategy will concentrate on activities, uses, and values that the province of
British Columbia is accountable for, while recognizing that it needs strong collaboration and cooperation with other orders of government who share responsibility. The Intentions Paper acknowledges the important role of commercial shipping and that it is regulated federally, and also refers to the shared risk that shipping may impose to the province. Interestingly, it also highlights the needs to "build a diverse coastal workforce," especially in traditionally male-dominated industries, including marine shipping.

The Canadian Border Services Agency (CBSA) made a historic drug bust in Vancouver that included close to 2,500 kgs of opium. CBSA announced the results of this joint investigation today, but it was launched in September with the RCMP's Federal Serious and Organized Crime Unit. On October 25, 2022, the CBSA’s Metro Vancouver Marine Operations conducted an examination of goods within 19 marine containers based on the investigation. Using a wide range of detection tools and technology, including X-ray technology, officers discovered irregularities in the shipping pallets as part of a deep concealment method. Further physical examination confirmed approximately 2,486 kilograms of opium within 247 shipping pallets.

The Federal Maritime Commission is asking the top 20 shipping lines calling the United States to provide information on how they are adapting to the increased prohibitions on retaliatory and discriminatory behaviour under the Ocean Shipping Reform Act of 2022. The The FMC's Vessel-Operating Common Carrier (VOCC) Audit Team will specifically focus on how companies are training personnel at all levels to act legally, and how those same employees are being made aware of the consequences for violating the law. The examination began earlier this week via correspondence and all recipients will have until mid-January to provide their initial responses. Additionally, the VOCC Audit Team will discuss this topic in person and in deeper detail with the 11 largest carriers participating in the next round of meetings through the VOCC Audit Program.

At the Marine Environment Protection Committee (MEPC) 79th session concluded earlier today, International Maritime Organization member nations pushed forward in the development of proposals, which include a GHG levy or feebate mechanism, a GHG fuel standard, emissions trading, and a funding/reward system tied to a specific benchmark. This week’s discussions bode well for an agreement on an ambitious and effective basket of measures in future sessions of the MEPC that will seek to adopt measures that align with the Paris agreement and enable decarbonization of shipping by 2050 with possible intermediate targets at 2030 and 2040. Good progress was also made to reduce the impact of GHGs and black carbon emissions from shipping on the Arctic. However, proposals to review and adjust short-term measures including CII, EEXI, and correction factors was deferred to MEPC 80.

At this week's meeting of the IMO's Marine Environment Protection Committee, it was agreed to implement the Sulphur oxides emission control area (ECA). The establishment of a Mediterranean ECA has been debated for over 10 years and supported by a number of large coastal cities. The Mediterranean region is home to approximately 250 million residents and has consistently endured high ambient concentrations of particulate matter. This new ECA will come into effect May 1st, 2025 and be the fifth of its type in the world to demand the use of lower Sulphur fuels. Canadian waters have been subject to an emission control area regulation since 2012, with further restrictions implemented in 2015.

A.P. Moller-Maersk has entered into a partnership with SunGas Renewables, which is based in the United States and a leader in providing technology systems for large-scale production of green methanol. The Letter of Intent covers the production of green methanol from multiple facilities to be developed by SunGas in the United States from which Maersk intends to offtake full volumes of green methanol. The first facility is expected to begin operations in 2026 and have an annual production capacity of approximately 390,000 tonnes. The SunGas facilities will utilize its flagship platform to convert sustainably sourced residues from the forestry and wood products industries into green methanol. SunGas joins eight other strategic partners working to supply the green fuel needed for the 19 methanol enabled container vessels Maersk currently has on order. The other partners are Carbon Sink, CIMC ENRIC, Debo, European Energy, Green Technology Bank, Orsted, Proman, and Wastefuel.

Seasurfer, an LPG carrier managed by Athens-based Thenamaris LNG is believed to be the first to deliver certified blue ammonia.  The midsize gas carrier, built by Hyundai Mipo in 2017, loaded the cargo at King Fahad Industrial Port at Jubail, Saudi Arabia to Ulsan, South Korea.  The 25,000 metric tonne ship received the cargo from SABIC AGRI-Nutrients and Saudi Aramco who are eager to be part of the country's ambition to become the world's largest supplier of clean hydrogen products by 2030 enabling the production of blue ammonia at a competitive rate.

Earlier this year, SABIC AN and Aramco received the world’s first independent certifications recognizing blue ammonia and blue hydrogen production from TÜV Rheinland, a leading independent testing, inspection and certification agency, based in Germany. The shipment of blue ammonia to South Korea is the first to capitalize on this major certification achievement.