COS Weekly Newsletter - Friday, 10 February 2023

Canadian Pacific has reached a tentative collective agreement with the United Steelworkers (USW) Local 1976 covering approximately 550 administrative support and intermodal employees in Canada. CP has successfully negotiated three tentative collective agreements with its unions in 2023. Details of the USW tentative collective agreement will not be released publicly until the agreement has been ratified.

The Prince Rupert Port Authority’s (PRPA) Port Interpretive Centre, which also serves as the local Visitor Information Centre, is preparing for big changes. The space in Cow Bay’s Atlin Terminal is set to undergo a full revitalization with reimagined interior displays that better reflect the dynamic, diverse, and growing trade gateway and communities that it showcases. To ensure the renovations are completed safely and within the projected installation timeline, the Port Interpretive Centre will be closed to the public from February 15^th until mid-June, before traditional summer visitor volumes begin to increase. Recognizing the Port Interpretive Centre’s role in providing visitor services, PRPA and Tourism Prince Rupert are working together to mitigate the impacts this may have. In particular, this project is expected to overlap with the beginning of the cruise season, and efforts are focused on ensuring cruise visitors have access to information and services in the cruise terminal area.

The Government of Canada celebrated the successful conclusion of the Leadership Forum at the Fifth International Marine Protected Areas Congress (IMPAC5) yesterday. The Ministers issued a Chairs’ Statement, which recognizes the need for increased international action and partnership with Indigenous Peoples in order to advance our shared goal of protecting our ocean and marine ecosystems. Several important initiatives that will help advance the health and protection of our oceans include details on the 2023 Protection Standards for Marine Protected Areas and key areas Canada intends on pursuing for marine protection and provided a progress update on the proposed Tang.ɢwan — ḥačx^wiqak — Tsig̱is Marine Protected Area (MPA), a large ecologically unique ocean area located on average 150 kilometres off the west coast of Vancouver Island. Draft regulations for the MPA will be pre-published in Canada Gazette Part 1, on February 18th, for a public comment period of 30 days.

Transport Canada has issued Ship Safety Bulletin 01/2023 - Equivalency regarding Royal Canadian Navy competencies and Certificates of Competency and/or Certificates of Proficiency from Transport Canada. The purpose of this bulletin is to inform seafarers and marine stakeholders how members of the regular force serving in the Royal Canadian Navy (RCN) can receive credit towards obtaining commercial marine certification under the Marine Personnel Regulations (MPR).

The Government of Canada announced $46.5 million in funding over five years to Ocean Networks Canada, an initiative of the University of Victoria, to enhance their world-class ocean monitoring system. Funded through Canada’s Oceans Protection Plan, this research helps to provide real-time, open data to better understand our changing oceans. Ocean Networks Canada supports a network of deep sea and coastal ocean observatories that collect data to monitor ocean changes, including climate impacts and underwater noise on all three coasts. It also supports oceanographic radar and ocean buoy monitoring efforts that provide real-time information on wave, and surface currents that help monitor ocean conditions and prepare for extreme events. Today’s investment helps Canada continue to collect the data needed to protect our ecosystems, support safe navigation, and inform emergency response planning.

Companies linked to two cargo ships accused of damaging a pipeline months before it ruptured, sending crude oil gushing into the waters off Orange County, have agreed to pay $45 million to settle lawsuits brought by business owners and residents, attorneys said Thursday. While the full settlement details have not been disclosed, Capetanissa Maritime Corp., Dordellas Finance Corp. and their subsidiaries have been accused of allowing their ships to drag their anchors across the sea floor during a storm in January 2021, about nine months before the oil spill.

Houston-based Amplify Energy Corp., which owns the pipeline, agreed in fall to pay $50 million to residents and business owners affected by the spill, alleged that the shipping companies failed to notify authorities after the damage occurred. The firm is seeking punitive damages, as well as reimbursement for legal fees, the costs of repairing and replacing the ruptured portions of the pipeline, and revenue lost while the pipeline was offline.

Vessels, ports, and shippers should be aware of this extreme risk and avoid loading EVs with damaged Lithium-Ion onto commercial vessels. Safety Alert 01-22 highlights a recent example of the danger damaged batteries pose. The Coast Guard strongly recommends that vessels, ports, shippers, and regulators conduct a comprehensive review of the vehicle shipping requirements found in both the Hazardous Materials Regulations (49 CFR) and the International Maritime Dangerous Goods (IMDG) Code. All lithium batteries are hazardous materials regulated by the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA). As such, they are required to comply with the Lithium Battery Guide for Shippers.

The 7.8 magnitude earthquake that hit the border region between Turkey and Syria, an area home to more than 13.5 million people, with a death tol now surpassing 22,000 people. Though experts say trapped people could survive for a week or more, the chances of finding survivors in the freezing temperatures are diminishing. The winter weather and damage to roads and airports have hampered the response. The container fire at the Port of Iskenderun in Turkey is now under control but closed until further notice. The closure can generate US$680 million of trade disruption - analysts say the accident is projected to interrupt US$36.7 million in iron and steel exports and US$51.4 million in plastic materials imports. The port shut operations on February 6th and several shipping lines have postponed the transportation of cargo at the port or diverted goods to Mersin, one of the Turkish ports nearby. Iskenderun is one of two main shipping container ports on Turkey's south-eastern coastlines and is home to heavy industries such as steel, with an annual trade flow of US$18 billion in 2022.

The newbuilding market remains strong with container carriers vying for space in busy shipyards. MSC’s US$1.2bn order last week was followed by CMA CGM's announced investment in six 15,000 TEU dual-fuel methanol-powered containerships to be delivered in 2025. In addition to the six methanol-fuelled ships, CMA CGM also ordered ten dual-fuel liquefied natural gas- (LNG) powered vessels, bringing its orderbook to 69 ships. The CMA CGM’s “e-methane ready” fleet currently counts 29 vessels in service and will have a total of 77 by 2026.

A host of Korean shipping lines including HMM, Sinokor and H-Line Shipping along with the nation’s class society are pressing ahead with plans to develop nuclear-powered merchant ships. The CEOs of the shipping lines along with the Korean Register, the Nuclear Research Institute and the Korea Atomic Energy Research Institute met yesterday in Gyeongju City to discuss how to develop small-module nuclear reactors for ships. An agreement was signed on Thursday to establish a cooperative basis for future commercialization through the development and demonstration of atomic technology for large ship propulsion with a focus on molten salt reactors (MSRs).

An Italian navy vessel and two more from Spain has set sail for Turkey to assist the disaster relief effort. Italian Navy’s San Marco Amphibious Transport Dock (LPD) vessel is joined by the Spanish frigate Blas de Lezo and logistics support ship Cantabria.

The Italian ship can carry a battalion of troops and up to 36 armored vehicles. The stern floodable dock can accommodate three landing craft. It can provide large logistical support and play a role in disaster relief operations. The naval unit, made available by the Defense Ministry, in addition to the field hospital, will transport other goods and instruments collected in these hours also through donations from private individuals and associations to be allocated to the populations hard hit by the earthquake.

In addition to the ship's crew, 24 military and 12 Army vehicles are also on board for the transport of Civil Protection containers.