COS Weekly Newsletter - Friday, 7 July, 2023

COS Weekly Newsletter - Friday, 7 July, 2023

COS Weekly Newsletter - Friday, 7 July, 2023


COS Updates

COS asks for intervention in the ILWU strike in letters to government

This week we sent a letter to the federal Labour Minister Seamus O’Regan asking for immediate intervention with the ILWU and BCMEA labour dispute. We are urging the federal government to reconvene Parliament to implement back-to-work legislation to avoid further disruption in Canada’s West Coast ports.

Read the full letter here.

Additionally, we signed a joint letter with the Canadian Chamber of Commerce among many associations, local chambers of commerce and boards of trade, expressing our deep concern of the ongoing strike action.

We believe these letters will aid government in finding an immediate resolution in this labour dispute for the interest of preventing further consequences for all Canadians.

Read the joint letter here.

In the News: Bonnie Gee on CTV - ILWU Strike impacts

Earlier this week, our president Bonnie Gee was on CTV News Top 3 Tonight with Merella Fernandez to provide insight the impacts of the ILWU strike action. WATCH the news segment here.

Scott Dryden appointed to COS Board of Directors

This week Scott Dryden was appointed to our board of directors.  Scott serves as the Regional Vice President and General Manager for Vulcan Material’s Canadian Operations – Polaris Materials. Polaris Materials joined the Chamber in 2021 as the first shipper in the expanded Principal membership category. His extensive experience in management will be a welcoming asset to the Board. Learn more about Scott's career in his bio here.

‍Shipping 360 conference registration is now open

A forum for learning more on navigating complexity and uncertainty in the shipping industry. This day-and-a-half conference provides insight on charting a resilient, sustainable and responsible future along with additional interests specific to the shippers and its stakeholders. The draft program  is now avilable and includes industry speakers, reception, trade show, and networking opportunities. A full speaker list will be availabklesoon. 

 

Purchase tickets by July 31st to receive a 15% early bird discount.
Sponsorhip opprtunities are still availble.

Local

Provisional agreement reached among St. Lawrence Seaway and UNIFOR locals

The St. Lawrence Seaway Management Corporation (SLSMC) announced it reached a tentative agreement with UNIFOR locals 4211 and 4319, which represent the Supervisory Group. The agreement spans four years, from April 1, 2023, to March 31, 2027. The agreement will be subject to a ratification vote in the coming weeks, and more details will be provided at that time. The SLSMC, established in 1998, is a not-for-profit corporation jointly funded by the Government of Canada, Seaway users, and other stakeholders. It manages and operates the Canadian assets of the St. Lawrence Seaway, under a long-term agreement with Transport Canada. The Seaway facilitates shipping and contributes to the support of over 329,000 jobs and $59 billion in economic activity in Canada and the United States. Read more.

Government 

CBSA Advisory: Conveyance Arrival Certification Message (CACM) submission

Due to the ongoing ILWU strike, the Canadian Border Services Agency (CBSA),  is reminding all marine carriers to NOT transmit their Conveyance Arrival Certification Message (CACM) until the marine carrier holds certainty of a port call, subsequent berthing and confirmed discharge.

US 

U.S ports awarded $40m to curb emissions and develop infrastructure

The US Department of Transportation (USDOT) has allocated approximately $40 million to various ports as part of the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) program for the fiscal year 2023. The grants, totalling over $2.2 billion for this year, aim to invest in infrastructure projects that prioritize safety, equity, and robust supply chains.

Port Miami has been granted $5 million to finalize sections of a crucial master plan supporting its Net Zero Program. The objective of this plan is to enable the port to reach carbon neutrality and decrease reliance on fossil fuels. Furthermore, the Puerto Rico Port Authority will receive $3 million to finance a feasibility study aimed at enhancing Avenue C, a vital roadway link that serves as the sole connection to the Port's eastern wharves. These improvements will enhance the efficiency of cargo operations while also reducing environmental impacts.

$1.5B influx towards port infrastructure projects in California

California has announced an investment of over $1.5 billion to enhance operations and capacity at its ports. The funding will support 15 projects, creating 20,000 jobs and reducing environmental impacts, and will also improve the ports of Los Angeles and Long Beach, as well as trade centres across the state. An additional $350 million will be allocated to projects that eliminate rail crossings and reduce emissions. The investment prioritizes zero-emission initiatives and aligns with California's efforts to combat climate change. The grants aim to modernize ports, improve efficiency, and create a more dynamic distribution network.

International

Hapag-Lloyd and Seaspan enter into Methanol retrofit agreement with MAN-ES

Seaspan Corporation entered into an agreement with MAN Energy Solutions to retrofit 15 of its vessels with dual-fuel engines capable of running on methanol. The conversion commitment agreement, signed in collaboration with liner shipping company Hapag-Lloyd, involves retrofitting the engines of Seaspan and Hapag-Lloyd fleets with dual-fuel ME-LGIM engines that can operate on green methanol. Each retrofit can lead to a reduction of 50,000 to 70,000 tonnes of CO2 emissions annually.

MAN Energy Solutions has developed the ME-LGIM engine, which enables carbon-neutral propulsion for large merchant-marine vessels when running on methanol. Over 100 ME-LGIM engines are either on order or in service and Methanol carriers have already been using this engine technology at sea for several years.

Inclination towards methanol fuelling continues to accelerate. The latest figures from DNV’s Alternative Fuels Insight (AFI) platform, showed that the 55 vessels with alternative fuel propulsion ordered in June included 26 for LNG fuelled vessels and 29 for methanol powered vessels (including retrofits).

IMO amends GHG strategy, drawing mixed reactions

This week at at Marine Environment Protection Committee Meeting (MPEC80), the International Maritime Organization (IMO) adopted new climate targets aimed at achieving net-zero emissions by or around 2050. The targets include indicative checkpoints for greenhouse gas (GHG) emission reductions, aiming for at least a 20% reduction by 2030 and at least 70% by 2040, based on a 2008 baseline. IMO member states also agreed to develop a global marine fuel standard to regulate the phased reduction of GHG intensity in marine fuels.

Prior to the MEPC 80, the United States, the United Kingdom, and Canada advocated for a 37% reduction in emissions by 2030, while the European Union countries put forward a proposal for a 29% reduction by the same deadline. In contrast, Japan and South Korea presented less ambitious targets for 2030.

However, the ruling has drawn mixed reactions as industry officials welcome it as a historic compromise, while environmental groups criticize it for lacking ambition and clarity. The strategy aims for net-zero emissions by or around 2050 and sets indicative checkpoints for emissions reductions by 2030 and 2040. Industry groups see it as a strong signal but emphasize the need for a global levy on emissions. Green groups complained the revised targets were both non-committal in the language and failed to align with the 1.5°C detail set out by the Paris Agreement.

Japan's Nagoya Port operations affected by ransomware attack

The Port of Nagoya in Japan has been targeted in a ransomware attack, causing disruptions in its container loading and unloading operations. Investigations indicate it was carried out by the ransomware group LockBit 3.0, which is based in Russia. The attack disrupted cargo packing procedures and forced the suspension of operations at the container terminal. Although Toyota Motor stated  the attack would not impact the shipment of new cars, it confirmed that imported and exported parts cannot be loaded or unloaded at the port until the issue is resolved.

The port authority has resumed operations as of July 6. This incident is part of a growing trend of cyber attacks on ports worldwide, with previous targets including Portugal's Port of Lisbon, India's Jawaharlal Nehru Port Trust, and three Canadian ports, although operations and data were not significantly affected in the latter case.

MAN Energy Solutions reveals ammonia fuelled engine success

Danish engine designer MAN Energy Solutions(MAN ES) has begun testing marine fuel ammonia in its engines, marking a significant milestone for the company and the industry. The decision to announce the breakthrough early was prompted by concerns about the lack of progress at the International Maritime Organization (IMO) meeting. MAN ES conducted the first combustion on its test engine, specially modified to handle the new marine fuel.

The company has also completed the first bunkering of ammonia at its research centre in Copenhagen. Safety measures have been implemented, given the hazardous nature of ammonia. MAN ES is focused on developing the necessary technologies for decarbonization and believes there is a path forward. Training of crew and personnel working with ammonia will be crucial when it becomes a widespread marine fuel. MAN ES aims to deliver its first ammonia dual-fuel engine by the end of 2024, with installation in a commercial vessel expected in 2026.

Industry Events

 

July 13 - VMAA Seminar: Using Waybills Instead of Bills of Lading – The Canadian Legal View @12:00 - To register email: alicia@cosbc.ca

July 26 - Vancouver Maritime Museum - Night at the Speakeasy @19:00


Sept 11-13 - Ports Canda Conference - Trois-Rivieres, QC

Ports Canada 2023 is an immersive experience where industry leaders, innovators, and enthusiasts come together to shape the future of Canadian ports. Discover the latest trends, technologies, and strategies driving our nation's ports towards unprecedented success. 

 

 

Ship of the Week

 

July 7 - CCGS Siyay

Siyay is a type 400 BHC AP1-88/400 hovercraft, one of two vessels built for the Canadian Coast Guard. Constructed from aluminium, the CCGS Siyay has a standard displacement of 36 tonnes, measuring 28.5 meters in length and 12 meters in beam. It has a main deck cargo capacity of 110 square meters and a well-deck with a Palfinger 5,000-kilogram crane. Powered by four Caterpillar 3416 TTA diesel engines, Siyay can reach a maximum speed of 50 knots and has a range of 300 nautical miles. The hovercraft has a crew of 7 and is primarily used for servicing navigational aids and search and rescue operations. Siyay was launched in 1998 and is based in Richmond, B.C. It underwent maintenance in 2014 and a refit in 2015 before returning to service in May 2016.