COS Weekly Newsletter - Friday, 9 June 2023

COS Weekly Newsletter - Friday, 9 June 2023

COS Weekly Newsletter - Friday, 9 June 2023


Recognizing World Oceans Day

It's World Oceans Day and we’re joining the global community to celebrate this year’s theme Planet Ocean: tides are changing.

The Chamber of Shipping and its members are committed to ensuring that maritime trade is environmentally sustainable, including minimizing impacts to oceans. We know the oceans are vital for sustaining life on this planet, and with shipping accounting for 90 per cent of goods transported around the world, the industry supports providing the necessities of life – especially to remote communities in Canada.

We look forward to continued collaboration with our partners, including Indigenous nations, to support Canada’s marine conservation efforts aimed at protecting 30 per cent of the nation’s lands and waters by 2030.

‍‍Local

Sanmar's first battery-electric tug delivered to HaiSea Marine

HaiSea Marine, a partnership between Haisla First Nation and Seaspan ULC in Canada, has received the first of three battery-electric harbour tugs from Sanmar Shipyards in Turkey. The tug, named HaiSea Wamis, is the shipbuilder's inaugural battery electric tug designed by Robert Allan Ltd. has won International Tug & Salvage (ITS) Tug of the Year 2023. This powerful battery-driven tugboat beat several other shortlisted nominees in one of the most competitive fields to win the Bureau Veritas-sponsored ITS award.

The order for these all-electric harbour tugs was placed under an LNG Canada contract to support the export facility in Kitimat, British Columbia. The HaiSea Wamis tug has two Schottel CombiDrives and electric motors, allowing it to achieve a bollard pull of approximately 70 tonnes. The tugs are ABS classed, and the collaboration between all partners, including ABS, ensured the delivery of this advanced electric harbour tug.

Captain Brian Johnston FNI 1931 - 2023

It is with great sorrow and sadness that we report the passing of a founding member and a long-time supporter of the Nautical Professional Society of Canada (NPESC).

Brian went to sea at the age of 16 as a Cadet with “Eagle Oil” and remained with that company until he had obtained his Foreign Going Masters Certificate of Competency. In 1959 he left the sea and moved to Canada, working his way on a ship bound for ports in the Gulf of St. Lawrence. In his search for work he took a job as a steeplejack but ships and the sea were what he knew and soon found a position on a Canadian Coastguard vessel based in Prince Rupert that led him to the Ship Safety Division of Transport Canada in Vancouver.

Brian was a warm, kind and humble man with an extensive knowledge of cargo ops and was known as the ‘go-to-person’ in Transport Canada, Ship Safety. He was well known throughout the marine Industry and avid supporter (Past Chairman and Fellow) of the Nautical Institute BC Branch. He will be sadly missed.

‍‍Government

Government of Canada increases funding to protect aquatic species

On this World Oceans Day, the Honourable Joyce Murray, Minister of Fisheries, Oceans and the Canadian Coast Guard, announced investments aimed at protecting Canada’s oceans and the marine species and habitats within them. Minister Murray announced successful funding recipients for the Oceans Management Contribution Program as well as a Call for Proposals for the Canada Nature Fund for Aquatic Species at Risk (CNFASAR). The Oceans Management Contribution Program provides $145 million over 5 years to advance outreach, monitoring and stewardship, and capacity-building initiatives across the country that help conserve and protect marine areas. Budget 2023 announced renewed funding up to $40 million over three years for CNFASAR that will allow additional projects to be funded. Fisheries and Oceans Canada will soon be accepting proposals for projects that support the conservation of biodiversity across Canada through collaboration and partnership to recover aquatic species at risk, including for projects that work to protect at-risk marine species from fishing interactions and physical and acoustic disturbances.

Speed restriction measures in the Gulf of St. Lawrence

Transport Canada's Ship Safety Bulletin 05/2023 provides information on speed restriction zones in the Gulf of St. Lawrence aimed at reducing vessel collisions with North Atlantic right whales (NARW). The zones include static zones, dynamic shipping zones, seasonal management areas, voluntary seasonal slowdown zone, and restricted areas. Vessels must follow Navigational Warnings (NAVWARNs) and Notices to Mariners (NOTMARs) for specific speed restrictions. Exceptions apply to vessels in distress, government vessels, and vessels engaged in specific activities. The bulletin outlines the requirements and exceptions for each zone and highlights the need for mariners to consider the risk of whale strikes when determining safe operational speeds.

US 

Dockworkers' dispute affect US West Coast ports

A vessel backlog that developed earlier this week at the ports of Los Angeles and Long Beach amid a lack of longshore labour was cleared Friday as talks between the ILWU and the Pacific Maritime Association (PMA), which represents ocean carriers and marine terminals, continued in San Francisco Friday for a third straight day.  Earlier in the week ports in California, including Oakland, Long Beach, and Los Angeles, experienced delays and congestion as a result of recent action taken by dockworkers. Additionally, the ILWU union members in Canada are voting on whether to support a strike that would affect along the west coast. Despite the challenges, freight rates from Asia to the US west coast have not seen a significant increase this week, suggesting that shippers are managing the situation calmly.

US introduces Clean Shipping Act of 2023

On World Ocean Day, Congressman Robert Garcia and Senator Alex Padilla have introduced the Clean Shipping Act of 2023, signaling their intent to take action on ocean shipping emissions. The bill aims to eliminate greenhouse gas emissions from all ocean shipping companies conducting business with the United States. It seeks to clean up the shipping industry, protect port communities' health, address environmental injustice, and provide climate crisis solutions. The legislation would grant the Environmental Protection Agency (EPA) the authority to regulate carbon intensity standards for maritime fuel. The bill proposes a progressive reduction in carbon intensity, requiring vessels on covered voyages to comply with specific standards. By 2040, the goal is to achieve carbon intensity that is 100% less than the baseline. This target is more ambitious than existing plans by the International Maritime Organization (IMO) and the International Chamber of Shipping, which aim for net-zero emissions by 2050. The legislation is seen as a crucial step to reduce shipping emissions and bring justice to communities affected by port pollution.

International

European Canola prices drag down Canadian competitiveness

The decline in European rapeseed prices has negatively impacted the value of Canadian canola, according to analysts. The premium for Canadian canola futures over European rapeseed futures has decreased from $92 per tonne on May 17 to $33 per tonne as of June 7. This has affected Canada's competitiveness in the international canola/rapeseed markets, where the European Union (EU) has become the price trendsetter. Lacklustre rapeseed oil prices have dragged down European rapeseed prices, with rapeseed oil becoming the cheapest among vegetable oils in the EU. The decline in prices has been attributed to factors such as forecasts of a big crop, a significant carryover from the previous crop year, and the impact of imported waste biodiesel on the rapeseed market. The European Waste-based Advanced Biofuels Association (EWABA) has raised concerns about potentially fraudulent Chinese biodiesel exports labelled as waste-based biodiesel, which may be displacing European rapeseed-based biodiesel. This situation has led to depressed rapeseed prices and has affected the canola market. Additionally, the influx of Ukrainian canola exports and the extension of a ban on Ukrainian imports of wheat, corn, canola, and sunflower seeds to certain EU countries have further influenced the market dynamics. Overall, the decline in European rapeseed prices and the challenges in the biodiesel sector has had a significant impact on Canadian canola values.

Russia overtakes Canada in pea exports

According to AgPulse Analytica, Russia is predicted to ship more peas to China than Canada in the 2023-24 period. Jain forecasts that Russia will export 1.2 million tonnes of peas, while Canada will export one million tonnes. This shift in the market occurred after Russia and China signed a phytosanitary agreement in December 2022, allowing Russian peas to enter the Chinese market. Although there has been a slow start to the trade route, with China importing relatively small amounts of Russian peas in March and April, Jain anticipates a rapid increase in imports to 70,000-80,000 tonnes by July. The lower price of Russian peas, at $310 per tonne delivered to inland China compared to Canadian exporters charging $400-$410 per tonne delivered to east coast ports, is expected to be a significant factor in the increased demand for Russian peas. Jain predicts that this competition from Russia will put downward pressure on Canadian prices. Russia's pea production is forecasted to be 3.15 million tonnes, resulting in a total supply of 4.62 million tonnes, giving Russia a one million-tonne advantage over Canada.

While Canada will remain the world's leading pea exporter, Jain estimates it will ship 2.35 million tonnes in 2023-24, down from 2.5 million tonnes in the current year. China's overall imports of peas are expected to increase to 2.3 million tonnes in 2023-24, up from 1.8 million tonnes this year, driven by the lower prices offered by Russia. It is expected that Canada will retain the pea protein business in China. Another notable development is Turkey's emergence as a significant re-exporter of peas, importing from Russia and Ukraine and shipping to markets such as Iraq.

PetroTal's Peru operations attacked by Indigenous protesters

PetroTal, a Canadian oil company with significant investments in Peru, is facing challenges from local communities in the Amazon region. The Indigenous Association for Development and Conservation of Bajo Puinahua (AIDECOBAP) has taken control of two oil transport convoys in the area. The first convoy, which belonged to Brazil and was empty, was headed to the Bretana field and had a crew of six. The second convoy, owned by Peru, was carrying around 40,000 barrels of oil destined for the Iquitos refinery and had a crew of eight Peruvian nationals who were not PetroTal employees. It is important to note that PetroTal does not own or operate either of the convoys. The convoys are currently being held near the town of 7 de Junio.

As a result of these attacks, PetroTal's operations in the area have come to a halt. During the seizure of the convoys, a navy sailor sustained a minor head injury from a spear and received medical attention. The Peruvian navy has been deployed to the area and will remain nearby to ensure the safety of the vessels and the well-being of the crew.

AIDECOBAP, consisting of approximately 60 people and 10 boats, continues to block the transit of ships in the Puinahua channel.

Events

 


June 12/14 - Green Marine GreenTech 2023, Seattle, WA
June 13 - ISSC Annual General Meeting @ 12:00
Jun 14 - Vancouver Grain Exchange Golf Tournament @ Northview:

Jun 15 - Port of Nanaimo Annual General Meeting @ 1400

Jun 21 - Pacific Pilotage Authority Public Annual Meeting @ 12:00

Jun 22 - COS Owners Meeting @ 12:00

Jun 25 - International Day of the Seafarer

Jun 27 - ISSC Day of the Seafarer Peak Challenge @ 16:00 
Jun 28 - WMCC PACMAR/NANS Meeting @ 10:00

Jun 28 - Institute of Chartered Shipbrokers Annual General Meeting @ 14:30

Jun 29 - COS Operations Committee Meeting @ 12:00

Jul 26 - Vancouver Maritime Museaum - Night at the Speakeasy @ 19:00
Sept 27/28 - COS 100th Anniversary Conference and Gala Dinner

 

Ship of the Week

June 9 - Powan

M/V Powan, owned by Swire Bulk, is a P-class bulk carrier built in 2016 at China’s Ouhua SB Shipyard in Zhejiang. The vessel is a geared handysize logger/bulk carrier with 4 cranes, each with a safe working load (SWL) of 36 tonnes.

M/V Powan is currently deployed on spot/tramp terms wherein she loads/discharges where business opportunities take her. The last few ports of call have been in S. Korea and Australia, where she loaded cargo and most recently discharged steel cargo in Squamish, British Columbia. The vessel is currently in Longview, Washington.

Interestingly, Swire Bulk owns 18 logger vessels which are employed all over the world, and frequently call at British Columbia Ports. Keep an eye out and you may see them in port. They are identified by red and black colour coordination, as well as the Swire flags located at the bow between the two anchors or on the funnel at the stern.


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