COS Weekly Newsletter - Friday, 15 September 2023

COS Weekly Newsletter - Friday, 15 September 2023

COS Weekly Newsletter - Friday, 15 September 2023


COS Updates

‍Shipping360 Conference is two weeks away - Register today!

‍Seats to the Shipping360 Conference are selling fast.  Don't miss out on this 1.5-day conference bringing experts from across the globe to Vancouver to share insights on the global trade outlook, supply chain resiliency, decarbonization, environmental sustainability and digitalization. Join us on September 27 and 28, 2023 at the Fairmont Pacific Rim in Vancouver. View our speaker program and register here. 


Chamber provides supply chain insight at Ports Canada 2023 Conference

This week the Chamber participated in the Ports Canada 2023 Conference in Trois-Rivières, QC.  Our President, Bonnie Gee, joined the panel discussion on what a national transportation supply chain strategy should entail. It was a great week of discussions on the challenges ahead with infrastructure, along with the opportunities for clean energy and port competitiveness through digitalization. Next year, the Association of Canadian Port Authorities' annual conference will be held in Port Alberni, BC.

Member Spotlight

Maersk achieves significant milestone with first green methanol-fueled voyage

The world’s first methanol-enabled container vessel was officially named Laura Mærsk in a ceremony held at the Port of Copenhagen. The vessel arrived in Copenhagen this week, after a maiden voyage that started in South Korea, where it was built by shipbuilder Hyundai Mipo Dockyard.

With a methanol-enabled engine, is the first of its kind and is an important step towards the company's goal of net zero emissions by 2040. Maersk aims to transport a minimum of 25 percent of its cargo using green fuels by 2030, with a long-term objective of its entire fleet operating on green fuels. The company has 24 methanol vessels on order for delivery between 2024 and 2027 and a policy to only order new, owned vessels that come with a green fuel option.

The green methanol will be produced from manure over the next year by Norwegian state-owned energy company Equinor. This is scheduled to be replaced in the long term by Danish solar energy producer European Energy.

Yesterday it was announced that Maersk has teamed up with its majority owner to form a new company to produce green methanol. A.P. Moller Holding (APMH) has formed a new company C2X that will pursue large-scale green methanol projects near the Suez Canal in Egypt and the port of Huelva in Spain, as well as in several other locations. C2X is majority-owned by APMH while Maersk holds a 20% stake.

C2X will sell to the shipping industry as well as to chemical companies. The new company will be led by Brian Davis, an ex-Shell Plc oil-industry veteran, while the finance chief will be Alastair Maxwell, formerly of Morgan Stanley and Goldman Sachs Group Inc.

Local News

Green Hydrogen hub in Prince George, B.C. proposed by Fortescue

Fortescue, a global green energy and metals company, has submitted plans for a major green energy hub in Prince George, Canada. Led by Australian businessman Dr. Andrew Forrest, the project involves the construction of a large-scale green hydrogen and ammonia production facility. Green hydrogen is a zero-carbon fuel that can help decarbonize heavy industry and create jobs. The proposed facility, with a potential capacity of 1000 MW, would produce green ammonia and green hydrogen for export or domestic use, contributing to reducing fossil fuel use and meeting climate targets. The project represents a $2 billion capital investment and could create hundreds of jobs.

Route dispute may cause further delay to Trans Mountain pipeline expansion

The expansion of the Canadian Trans Mountain oil pipeline may be delayed by nine months if regulators don't approve a route change. This could push completion to December 2024 in the worst-case scenario. Trans Mountain is applying for a route change, but local Indigenous opposition and upcoming public hearings will add uncertainty to the project completion date.

Canadian News

New National Supply Chain Office lead announced

In March 2023 the Minister of Transport, the Honourable Omar Alghabra, announced plans to establish a national Transportation Supply Chain Office.  This week at the Association of Canadian Port Authorities conference, it was announced that Assistant Deputy Minister, Robert Dick, has been selected to head up the new Supply Chain Office, which we have learned will be located in Vancouver.  The 2023 budget allocated $27 million over five years for the establishment of the office that will work on mitigating vulnerabilities in our supply chains and build on Dick's collaboration with industry during recent disruptions. An official announcement with further details is expected soon.

Lantic secures $200 million funds for Montreal facility expansion.

Lantic Sugar is investing $200 million to expand and modernize its Port of Montreal facility, increasing sugar processing capacity by 20% and optimizing logistics. Currently handling over 580,000 tonnes of raw sugar annually, the plant imports sugar from Latin American countries, refines it and distributes it across Canada. The strategic location within the Port's territory allows for cost-effective importation and efficient transportation via road and rail networks. This expansion reinforces their partnership with the Port of Montreal.

GoC launches call for proposals for Climate-resilient Coastal communities Program

The Canadian government has announced up to $30 million in funding for pilot projects through the Climate-Resilient Coastal Communities (CRCC) program. These projects will address climate change impacts such as sea-level rise, coastal erosion, extreme storms, flooding, and wildfires in coastal regions. The CRCC program aims to foster collaboration between communities and businesses to develop innovative solutions for climate change adaptation and resilience. It will support up to 25 regional-scale pilot projects that take an integrated, systems-based approach to building resilience in coastal areas, involving multiple sectors, jurisdictions, Indigenous rights-holders, and stakeholders. The funding is part of Canada's efforts to address climate-related risks and enhance community and economic resilience.

International news

BIMCO launches survey to sound Maritime Single Window preparedness

Starting January 1, 2024, new International Maritime Organization (IMO) regulations will require global ports to use a "single window" for electronic data exchange. This digitalization effort aims to improve efficiency in the maritime industry. To assess the current state of digitalization when ships call at ports, BIMCO has launched a survey. The survey will gauge the readiness of national authorities for the "single window" requirement and provide insights into the digitalization maturity of ports. The results will be presented to the IMO Facilitation Committee in April 2024. The survey will be conducted from September to December 2023 and ensures anonymity for respondents.

To participate in the survey click here.

Exclusive zero-emission shipping tender launched by major retailers including Ikea and Amazon

The Zero Emission Maritime Buyers Alliance (ZEMBA), including major retail brands like Amazon and IKEA, has issued a Request for Proposals (RfP) for 600,000 shipping containers to be transported on zero-emission fuel-powered vessels over three years. This initiative aims to reduce carbon emissions by at least 90% compared to traditional fuels. The global shipping industry accounts for 3% of global climate emissions, and ZEMBA is working to accelerate the adoption of zero-emission shipping solutions.

Three vessels successfully transit via Ukrainian maritime blockade

Three ships carrying Ukrainian steel products have broken through the Russian sea blockade, marking the first such breakthrough since the start of the war. These ships, trapped in Ukrainian ports since February 2022, are the second, third, and fourth vessels to leave since Russia withdrew from a grain agreement. They carry steel and iron ore concentrate bound for foreign customers, offering a vital economic boost. The effort involved various Ukrainian agencies and is seen as a historic step toward fully unblocking maritime exports of various Ukrainian products.

Cruise vessel aground in Greenland to be rescued by fishing vessel

A Bahamas-flagged luxury cruise ship carrying 206 people ran aground in northwestern Greenland's Alpefjord, known for its icebergs and musk oxen. The passengers and crew are reported to be safe. A Greenlandic government-owned fishing vessel is set to attempt to pull the stranded cruise ship free during a high tide. The cruise ship, MV Ocean Explorer, previously made two unsuccessful attempts to free itself. The incident occurred in a remote area of Greenland, with the closest settlement, Ittoqqortoormiit, being 240 kilometers (149 miles) away and the capital, Nuuk, nearly 1,400 kilometers (870 miles) distant.

Capesize bulker and non-ice class tanker transit NSR to China create history

The bulk carrier Gingo became the first capsized ship to sail the Northern Sea Route (NSR), carrying a record cargo of iron ore concentrate to China. Russia is seeing increased traffic along the NSR due to milder winters, with plans to expand its capacity significantly. Additionally, a non-ice class oil tanker, the Leonid Loza, is making its maiden voyage through the NSR, marking a significant development in Arctic shipping. However, concerns have been raised about sending such tankers through the route without ice-strengthening.

MOL Chemical Tankers acquisition of Fairfield Chemical carriers achieves agreement

Mitsui O.S.K. Lines (MOL) has announced an agreement in principle for its subsidiary, MOL Chemical Tankers, to acquire the business of Fairfield Chemical Carriers (FCC) in a deal approved by both companies' boards of directors. This acquisition, valued at around $400 million, would give MOL full ownership of Fairfield Chemical Carriers Pte. Ltd. pending regulatory approvals. MOL views the chemical tanker business as a growth area and intends to invest proactively in it, aligning with their "BLUE ACTION 2035" management plan. The move would consolidate MOL's fleet of 85 vessels, including 36 operated by FCC, and expand its presence in key growth areas. Additionally, MOL aims to leverage Fairfield's brand and expertise to enhance safety, digital transformation, human capital, and environmental strategies while addressing sustainability concerns.

August market share for US West Coast ports gains momentum post labor deal

U.S. West Coast ports gained market share while East Coast ports lost ground, according to Descartes Systems Group. This shift comes after West Coast ports had been losing market share for over a year due to prolonged labor negotiations. Some shippers had started sending cargo back to West Coast ports even before the labor agreement was reached in June. In August, the biggest West Coast ports saw a 3.6% increase in market share to 41.9%, while top East and Gulf Coast ports dropped 3.3% to 43.1%. It remains to be seen if the labor deal influenced these results, but experts anticipate a return of some cargo that had shifted away from the West Coast. Ports like Los Angeles and Long Beach experienced significant increases in cargo handling, while ports on the East Coast, particularly Savannah, saw declines. Low water levels in the Panama Canal may also contribute to cargo returning to the West Coast.

Events

 

Sept 20 - WMCC PACMAR/NANS Meeting @ 10:00 

Sept 21 - CILTNA presents Canada's Indo-Pacific Strategy @ 16:30

Sept 20-24 - Fraser Riverfest Activities and Lucille Johnstone Workboat Parade.
Sept 24 - Port of Vancouver celebrates World Maritime Day @ Canada Place 
Sept 17-19 - Canadian Ferry Association Conference & Trade Show
Sept 27 & 28 - Shipping 360 Conference

Sept 28 - World Maritime Day - "MARPOL at 50 - Our commitment goes on." 

Ship of the Week

September 15 - Laura Maersk

The 2,100 TEU (twenty-foot-equivalent) feeder vessel with a methanol-enabled engine, is the first of it's kind. The new container ship, Laura Maersk, ordered in 2021, has two engines: one moved by traditional fuels and another run with green methanol — an alternative component, which uses biomass or captured carbon and hydrogen from renewable power. The new vessel emits 100 tons of carbon dioxide fewer per day compared to diesel-based ships.

The name Laura has a long and important history for Maersk. In 1886, Captain Peter Mærsk Moller bought his first steamship and named it Laura. Laura was powered by a coal-fired steam engine and marked the second industrial revolution’s influence on shipping. It was also the first ship to wear the iconic white seven-pointed star on a light blue background, a symbol that remains integral to the company. Watch a video of the naming ceremony here.

September 15 - Laura Maersk

The 2,100 TEU (twenty-foot-equivalent) feeder vessel with a methanol-enabled engine, is the first of it's kind. The new container ship, Laura Maersk, ordered in 2021, has two engines: one moved by traditional fuels and another run with green methanol — an alternative component, which uses biomass or captured carbon and hydrogen from renewable power. The new vessel emits 100 tons of carbon dioxide fewer per day compared to diesel-based ships.

The name Laura has a long and important history for Maersk. In 1886, Captain Peter Mærsk Moller bought his first steamship and named it Laura. Laura was powered by a coal-fired steam engine and marked the second industrial revolution’s influence on shipping. It was also the first ship to wear the iconic white seven-pointed star on a light blue background, a symbol that remains integral to the company. Watch a video of the naming ceremony here.