COS Weekly Newsletter - Friday, 5 May 2023
Introducing our new Communications and Marketing Manager
This week Lisa Clement joined the Chamber of Shipping as our new Communications and Marketing Manager.
Lisa previously held communications roles at BC Hydro on the Site C clean energy project and with the Trans Mountain Expansion project, two of British Columbia’s largest infrastructure and construction projects. In both positions, she led strategic communications, managed issues and maintained relationships with key stakeholders. Prior to her time in the industry, Lisa worked in media relations on major events including the Vancouver 2010 Olympics, the Rick Hansen 25th Anniversary Relay and the Toronto Pan Am Games. These experiences allowed her to travel extensively coast-to-coast giving her a greater perspective of Canada and the unique interests in each community.
Her knowledge and experience of the industry make her a great addition to COS, and we are excited to have her lead our Shipping Matters communications strategy.
Teck and CPKC enter long-term rail agreement.
Canadian Pacific Kansas City Limited (CPKC) and Teck Resources Limited (Teck) have entered into a long-term rail agreement for the transportation of steelmaking coal from Teck's four operations in southeastern BC using CPKC’s hydrogen locomotives. The agreement will run until the end of 2026 and builds on existing services in place. In support of building green transportation corridors and as a shared commitment to sustainability, CPKC and Teck intend to collaboratively develop a unique pilot program that integrates the use of CPKC's hydrogen locomotives into Teck's steelmaking coal supply chain. It is anticipated that this effort will reduce greenhouse gas emissions, with testing commencing in early 2024. The companies will also work together to increase the resiliency of the Canadian supply chain with investment in infrastructure and technology from origin through to destination.
Trigon accelerates North Pacific Green Export Corridor
Trigon Pacific Terminals Ltd. (Trigon) has awarded a $71-million contract to PPM Civil Constructors, ULC (PPMCC) for the marine construction of its Berth 2 Beyond Carbon (B2BC) project. When operational in 2027, B2BC will be Canada’s first purpose-built infrastructure handling low-carbon energy exports, such as ammonia and hydrogen for fuel use. B2BC is supported by a $75 million federal grant through the National Trade Corridors Fund.
Other key announcements from Trigon’s partners include the newly announced Council for Utilizing Namikata Terminal as a Hub for Introduction of Fuel Ammonia
, in Western Japan; as well as the recent announcements by Japan’s Kansai Electric Power
on a full-scale feasibility study to further develop the clean fuels supply chain – known as the North Pacific Green Export Corridor – across Western Canada. The North Pacific Green Corridor extends from the Alberta Heartland Region and British Columbia through Prince Rupert to connect to key Asia Pacific markets.
ISSC Bursary Award 2022
The International Sailors Society Canada (ISSC) Bursary Committee Chair, Richard Smith, presented BCIT Nautical Sciences cadet Caue Longhi Canelli with the ISSC Sue Hanby Bursary Award for 2022. Caue is now entering his 3rd
year as a nautical sciences cadet at the BCIT Marine Campus in North Vancouver.
His enjoyment of activities on the water was one of the decisive factors that made him choose to pursue a career change and enroll in the Nautical Sciences program. He recently lived six months on board a converted trawler and explored the Southern Gulf Islands, putting into practice some of the theoretical and practical knowledge obtained during his nautical education. Caue also worked as a deckhand and naturalist for a whale-watching company in Tofino striving to educate the public about the rich marine ecosystem in British Columbia’s coastal waters and the importance of preserving it. Having completed the current school term he will obtain his Watchkeeping Mate ticket and then keep working towards Chief Mate certification and, eventually, Master Mariner. The ISSC wishes Caue all the very best in his future endeavours and is proud to provide financial assistance to help him achieve his goals.
2023 enhanced environmental measures for cruise season
Transport Canada’s Ship Safety Bulletin 10/2022
outlines discharge requirements for cruise ship operating in waters under Canadian jurisdiction in 2023. The measures originally introduced in 2022 requests that cruise ships avoid discharging greywater and sewage within 3 nautical miles of shore, when possible; treat greywater with sewage before it is discharged between 3 and 12 nautical miles from shore, as much as possible; and use an approved device to treat sewage between 3 and 12 nautical miles from shore. These enhanced measures will remain until they become permanent through either an interim order or regulation.
US west coast ILWU negotiations progressing
Longshore labour and employers at the ports of Los Angeles and Long Beach have reached agreement on manning requirements for non-automated terminals, overcoming a major hurdle that could accelerate a deal on a new coastwide contract as negotiations near the one-year mark. Journal of Commerce sources indicate that a deal between Local 13 of the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA), which represents terminal operators and shipping lines, was reached Tuesday and involves manning requirements for cargo-handling equipment at conventional container terminals in Los Angeles-Long Beach. The two sides reached agreement on manning needs at the three automated terminals in Southern California several weeks ago. Job action at LA-LB terminals as ceased and coastwide negotiations in San Francisco will now turn in earnest to the two major issues yet to be settled — wages and pension benefits.
US shipping interests want rail storage fees regulated
Rail storage fees assessed against ocean containers moving on “through bills of lading” should be overseen by the Federal Maritime Commission (FMC) to close a regulatory gap that is ripe for “abuse.” Unlike ocean terminals, which are incentivized to improve network efficiencies by Federal Maritime Commission (FMC), rail terminals are not subject to oversight by FMC and they are exempt from Surface Transportation Board rules, which do not apply to intermodal transportation. In short, railroads are not governed by the Shipping Act, enforced by the FMC, and rail storage fees have
gone unchecked. A group of more than 70 shippers, forwarders and transportation interests have told leadership of the House Transportation and Infrastructure Committee in a letter dated May 2
rail storage charges should be assessed as part of through bills of lading invoiced to importers by ocean carriers, rather than railroads. That would then give the FMC oversight of such charges, given the agency’s regulatory authority over container shipping.
Ocean Shipping Competition Enforcement Act introduced
The US Congress has unveiled more ocean-shipping-focused legislation for “foreign” carriers. The Ocean Shipping Competition Enforcement Act was introduced by Democrat representative John Garamendi who said shipping is dominated by “nine foreign-flagged ocean liners that openly collude under three carrier alliances handling some 80% of cargo”. Current federal law requires the Federal Maritime Commission — which is an independent federal regulatory agency — to review proposed agreements between ocean carriers or marine terminal operators to ensure any such agreements are not unreasonably anticompetitive. The Act will allow the Federal Maritime Commission to block agreements among ocean carriers and marine terminal operators without obtaining a federal court order. World Shipping Council said the legislation is founded on the false premise that ocean carriers jointly set rates.
Contaminated fuel cause in WSF ferry grounding
The Washington State Ferries (WSF) Jumbo-class ferry Walla Walla
returned to service May 3 on the Seattle/Bremerton route after running aground two weeks ago. WSF says that internal and US Coast Guard investigation teams determined that contaminated fuel led to a generator failure resulting in a loss of propulsion and steering controls. Backup systems were also affected by the same fuel issue, resulting in a second generator failure within seconds of the first. The investigation into how the fuel was contaminated is ongoing. To ensure a similar incident does not occur, all fuel currently on board has tested clean.
The Coast Guard issued a Marine Safety Alert
in May of last year after a towing vessel experienced a loss of all propulsion while operating on the Mississippi River. That loss of power was attributed to water contamination of the fuel.
EPA investing $4 billion in clean ports plan
The US Environmental Protection Agency (EPA) is taking the initial steps on the development of programs that will invest $4 billion from the Inflation Reduction Act in US port infrastructure. The Clean Ports Program will invest $3 billion in technologies to reduce harmful air and climate pollutants at US ports and create a zero-emission shipping future. The Clean Heavy-Duty Vehicle Program will invest an additional $1 billion to reduce vehicle emissions and better protect the health of the people living and working near ports, schools, and other truck routes. EPA is now seeking public input to inform the development of two new programs.
Crowley launches new Mexico-US-Canada service
Crowley has announced the launch of an integrated ocean and rail multi-modal service connecting Mexico and the US Midwest, extending into Canada. The service leverages the inland rail network of CN Rail, offering fast, reliable, and environmentally efficient transit times with up to 1,000 TEU containers and over 200 refrigerated containers. The new service aims to create more efficient supply chain corridors and increase market access throughout North America, benefitting both companies' global customers.
World Bank releases 2023 LPI
On 21 April, the World Bank released its 2023 Logistics Performance Index report, a measure of countries’ ability to move goods across borders with speed and reliability. The seventh edition of Connecting to Compete, the Logistics Performance Index
(LPI) report comes after three years of unprecedented supply chain disruptions during the COVID-19 pandemic, when delivery times soared. Canada scored 9th
in the LPI, which covers 139 countries and measures the ease of establishing reliable supply chain connections and the structural factors that make it possible. On average across all potential trade routes, 44 days elapse from the time a container enters the port of the exporting country until it leaves the destination port, with a standard deviation of 10.5 days. According to LPI 2023, end-to-end supply chain digitalisation, especially in emerging economies, is allowing countries to shorten port delays by up to 70% compared to those in developed countries. The report finds that while most time is spent in shipping, the biggest delays occur at seaports, airports, and multimodal facilities.
MT Pablo shadow tanker off Malaysia catches fire
A Gabon-registered tanker carrying 28 crew members caught fire on Monday in waters off Malaysia’s southern coast. Three crew members are missing, while 23 have been rescued by the Malaysian Maritime Enforcement Agency (MMEA) and nearby vessels. The tanker was enroute from China to Singapore when the incident occurred. The tanker had last delivered Iranian crude to the eastern port of Qingdao in late January and had been anchored off China's eastern port of Zhoushan for two months before sailing towards an anchorage area off Singapore and Malaysia. The Malaysian Maritime Enforcement Agency (MMEA) said it was investigating the cause of the fire and had conducted search and rescue operations. Despite sanctions on Iran's oil exports, its supplies have been entering China since late 2019, disguised as coming from Oman, Malaysia and the United Arab Emirates, according to traders and analysts.
Iran seizes second oil tanker in week amid US confrontation
Iran has seized the MT Niovi
, a commercial oi tanker in the Strait of Hormuz, marking the second such incident in the region within a week, amid rising tensions with the United States. Approximately 12 members of Iran's Islamic Revolutionary Guard Corps Navy (IRGCN) swarmed and bordered the Niovi
via fast-attack craft. The IRGCN then forced the crew to turn the ship around and sail back into Iranian territorial waters. The Panama tanker was transiting from Dubai to Fujairah in the United Arab Emirates when it was captured.
Last week the Marshall Islands-flagged tanker MT Advantage Sweet
was taken last week after leaving Kuwait en route to Houston. Iranian marines rappel onto the Advantage Sweet
, in the Gulf of Oman amid wider tensions over Tehran's nuclear program.
Seafarer happiness down in first three months
Α decline in overall happiness levels of seafarers during the first three months of the year is reported by The Mission to Seafarers. The survey, which captures seafarers' sentiments worldwide across a wide range of welfare issues, shows a fall from 7.69 to 7.1 out of 10, compared to the fourth quarter of 2022. Shore leave and a desire to access welfare services ashore seem as key areas for concern for seafarers, longer contracts, inadequate food provisions, bureaucratic and unnecessary paperwork demands, ineffective shipboard leadership, and a sense of social isolation adding to the stress of life onboard.
Moreover, the Seafarers Happiness Index (SHI) report also identified several other challenges facing seafarers, including a growing wellness gap between companies that provide health and well-being programs and those that do not, access to dental care in some ports but not others, and limited access to mental health support, medical advisory services, and physical well-being consultations. There is still much room for improvement.
New biofouling guidelines expected in June
The 10th meeting of the IMO Sub-Committee on Pollution Prevention & Response has completed its review of the 2011 Guidelines for the Control and Management of Ships' Biofouling to Minimize the Transfer of Invasive Aquatic Species with new guidance to ships on how to best manage biofouling including through performance monitoring, inspection frequencies and in-water cleaning- either proactive or reactive. The updated guidelines are directed to various stakeholders, including ship owners and ship operators but also ship designers, shipbuilders, anti-fouling paint manufacturers and suppliers, shipmasters, port authorities, ship cleaning and maintenance operators, inspection organizations, ship repair, dry-docking and recycling facilities. IMO is working with stakeholders to develop a global standard for in-water cleaning with capture and the approval process. The new guidelines are expected to be approved at the Marine Environment Protection Committee meeting in June 2023.
May 9 - COS Board of Directors Meeting @ 1200
May 10 - Quarterly Pilotage Operations Meeting @ 1000
May 11 - The Plimsoll Club Golf Tournament @ Mayfair Lakes
May 11 - Vancouver Maritime Centre for Climate 2nd Anniversary Celebration
May 12 - Information session on CFIA new Wood Dunnage Policy @ 1000
May 18 - COS Operations Committee Meeting @ 0900
May 26 - COS Liner Committee Meeting @ 1200 (tbc)
Jun 2 - The Plimsoll Club Nooner at the Nat @ 11:30
June 12/14 - Green Marine GreenTech 2023, Seattle, WA
Jun 14 - Vancouver Grain Exchange Golf Tournament @ Northview
Jun 27 - ISSC Peak Challenge @ 3:30
Sept 27/28 - COS 100th Anniversary Conference and Gala Dinner
May 5 - United Eternity
The MV United Eternity
, currently loading coal at Neptune Terminals in Vancouver, is a 292m Bulk Carrier with a deadweight of 182,859 tonnes. A vessel of this length and capacity to carry cargo (deadweight) is classified as a Very Large Bulk Carrier (VLBC) and is mainly purpose-built for specific trades.
Loading bulk cargoes near residential areas, as in the case of Neptune Terminals located in North Vancouver, demands meticulous planning and coordination. All incoming trains at Neptune are unit trains, meaning they carry a single commodity. This and Neptune’s continuous loop rail track design, equip the terminal to alleviate the need for shunting and the noise associated with separating and re-connecting the railcars. The terminal also lubricates its tracks to minimize any squealing from train movements.