COS Weekly Newsletter - Friday, 6 January 2023

The Prince Rupert Port Authority (PRPA) has published proposed revisions to its Port Information Guide for comments.  The most notable change for carriers and agents is the prohibition on the use of open-loop Exhaust Gas Cleaning Systems within the port authority's jurisdiction.  Comments are due by Feburary 5th.

Canadian National announced that the Teamsters Canada Rail Conference has ratified a new contract agreement covering approximately 160 CN rail traffic controllers in Canada. The agreement, ratified on Dec. 23, is effective through Dec. 31, 2025 and includes wage increases of 3% in 2023, 3% in 2024, and 2.5% in 2025, as well as other benefits.

On January 1, 2023, at 0:05 a.m., the MSC Donata was the first ocean-going vessel of the year 2023 to cross the Port of Montreal’s downstream limit at Sorel without a stopover. True to a tradition that dates back more than 180 years, the Montreal Port Authority (MPA) is awarding the Gold-headed Cane to its Captain, Singh Ranjit Kumar. To learn more about this great Port of Montreal tradition click here.

The Government of Canada’s has introduced temporary negative COVID-19 test requirement for air travellers arriving from the People’s Republic of China, Hong Kong or Macao (Government of Canada announces a temporary negative COVID-19 test requirement for travellers arriving from the People’s Republic of China, Hong Kong or Macao - Canada.ca). Please note, the requirement is focused on air travellers and is not applicable to crew and passengers arriving in the marine mode.  Currently, we are unaware of any exemptions for crew joining vessels in Canada.

The Canadian Food Inspection Agency has just published this morning the revised directive D-98-08 Entry requirements for wood packaging material into Canada that includes the new shipborne dunnage program. The new directive will be fully applicable as of July 6^th, 2023. The Chamber of Shipping will be discussing the new directive at our upcoming Operations Committee meeting on January 18th.

The CFIA has published the results of the annual Plant Health Surveillance Program for 2021-2022. The report includes a provincial breakdown of the detections or spread of plant pests of concern and how the CFIA responds to these findings.  Canada is considered free of the Asian longhorned beetle and the Emerald ash borer, while Spongy moth (aka European Gypsy Moth) was detected in BC at a record number of sites. The high numbers are believed to be the result of vehicle movement from Eastern Canada where this pest is currently at outbreak levels. Two moths of the flight capable Asian Gypsy Moth were found in Langley and eradication aerial sprays were conducted after this detection.

The Pacific Merchant Shipping Association and the World Shipping Council have filed a Petition for Review of the Commission’s Environmental Assessment (EA) and Finding of No Significant Impact (FONSI) regarding Docket No. 2022-0066.  The petition suggests that the Federal Maritime Commission’s proposal to create an entirely new demurrage and detention billing framework will undermine and deviate from the “Incentive Principle” in existing law that creates financial incentives to move cargo promptly and efficiently. Undermining the Incentive Principle would have an adverse impact on port congestion and air quality.

A Florida Judge awarded more than $440M in damages to the Havana Docks Corp., a decision that Royal Caribbean and Carnival will appeal.  US District Judge Beth Bloom ruled that the use of the Havana Cruise Port Terminal constitutes trafficking in confiscated property owned by the plaintiff. This Delaware-registered company is owned by two individuals said to be direct descendants of the original owners of the docks in Havana, Cuba. The lawsuit, brought under the Helms-Burton Act, allows U.S. nationals to sue over the use of property seized in Cuba after 1959.

Declining world supply chain pressures are being challenged by new disruptions in China tied to the coronavirus pandemic, the New York Federal Reserve reported on Friday. The easing of China's restrictions has resulted in a massive wave of coronavirus infections, which threaten to keep pressure on the ability to ship goods out of China. Freight booking cancellations are increasing at the ports of Shanghai and Shenzhen as "factories cannot operate properly due to a lot of workers getting COVID."  Congestion is also building off of the Ports of Ningbo and Qingdao as well, per Chinese logistics company HLS.  Qingdao, the sixth-largest port in the world, is reported as having factories with only "1/4 labor force and can not ensure normal production." Logistics managers are warning of very soft volume after the Lunar New Year with cancelled or delayed bookings for the 2nd half of January and early February.

Chinese shipbuilder Hudong-Zhonghua Shipbuilding delivered Evergreen’s giant 24,000 TEU containership Ever Acme at the end of 2022 - four months ahead of schedule according to the shipbuilder

This is the third 24,000 -TEU container ship to be delivered to Evergreen in 2022. The three ships - Ever Alot, Ever Aria, and Ever Acme - are among the world’s largest containerships based on their capacity. The trio is part of a total of nine vessels being built and designed by Hudong-Zhonghua Shipbuilding for the shipowner to ABS class.  The ships are  fitted with a myriad of green features including high efficiency, energy-saving, and safety solutions in line with Tier III emission requirements. The ships have a bulbous bow design, large-diameter propellers, and energy-saving ducts to ensure low energy consumption. They are also fitted with hybrid scrubbers.