COS Weekly News - Friday, 1 December 2023
In the news...
Peter Xotta appointed new Port of Vancouver President & CEO
The Vancouver Fraser Port Authority has announced that Peter Xotta will be its next President & CEO. Effectively next week, Peter will step into the position that CFO Victor Pang has held in the interim following Robin Silvester's departure in June 2023. Peter most recently served as vice president, operations and supply chain for the port authority, where he was responsible for land and marine operations, health, safety and security, and port and supply chain optimization activities. He has led diverse portfolios throughout his career, focusing on business development and strategic projects. We congratulate Peter on his well-deserved appointment and look forward to continuing our collaboration with the VFPA.
Julie Gascon appointed new President & CEO of Montreal Port Authority
The Montreal Port Authority (MPA) has appointed
Julie Gascon as its new President and CEO, effective February 12, 2024. Julie, currently serving as President and CEO of the Pacific Pilotage Authority, brings a wealth of experience and knowledge in marine transportation, gained through strategic roles at Transport Canada and the Canadian Coast Guard. She is expected to leverage her leadership skills to implement the MPA's 2023–2027 strategic plan. Nathalie Pilon, Chair of the MPA's Board of Directors, expressed confidence in Gascon's abilities and thanked the interim CEO, Geneviève Deschamps, for her contributions.
Portside Blundell Project put on hold
The Vancouver Fraser Port Authority has advised that the Portside Blundell Road Improvement Project has been put on hold due to "a significant funding gap and extended partner negotiations that have put the project at considerable risk." With project costs now more than double the original estimate, the port authority is reviewing the strategy to deliver the project or a component of it. This project would support trade-enabling development in the Fraser Richmond industrial lands. As a result of pausing the project, the Gateway Infrastructure Fee 2 will be adjusted accordingly and further details regarding the 2023 fees collected will be provided in due course.
Bridgemans Services Group to provide floatel for Woodfibre LNG
Bridgemans Services Group has been chosen to provide on-site workforce accommodation floatel
for Woodfibre LNG's liquefied natural gas (LNG) export project near Squamish, British Columbia, starting in spring 2024. The company will moor the MV Isabelle
at the project site to provide turnkey, safe, and secure live-work offshore accommodation for over 600 workers. The floatel, undergoing final preparations, will offer a luxurious home away from home with newly renovated single cabins, dining facilities, recreational areas, fitness facilities, and more. Bridgemans emphasizes sustainability, and the floatel will incorporate advanced environmental systems and waste reduction measures.
Seaspan Shipyards to equip polar icebreakers with Steerprop bow thrusters
Steerprop, based in Rauma, Finland, is set to supply
two arctic tunnel thrusters for a polar icebreaker being built for the Canadian Coast Guard by Seaspan Shipyards. The 27,876-ton displacement multi-mission polar icebreaker will have a Polar Class 2 (PC2) ice rating, enabling it to operate in challenging ice conditions
for extended periods. Steerprop's arctic tunnel thrusters are designed to meet demanding ice conditions without the protection of tunnel grids. The delivery also includes a bridge control system and an offline oil filtering system. The solution aims to enhance operational performance, reliability, safety, and reduce lifecycle costs.
Minister of Transport announces Green Shipping Corridors Program
Canadian Minister of Transport, the Honourable Pablo Rodriguez has announced
the creation of the Green Shipping Corridor Program, involving an investment of $165.4 million over 7 years. The program aims to establish green shipping corridors and contribute to decarbonizing the marine sector in key shipping areas, including the Great Lakes, the St. Lawrence Seaway, and Canada's east and west coasts. The program consists of two funding streams: the Clean Ports stream focuses on clean technology and infrastructure at ports and terminals, and the Clean Vessel Demonstration stream which will provide funds for studying, testing, and piloting clean fuel propulsion systems for shipping vessels. The initiative supports innovative projects in the marine sector to promote economic growth and environmental sustainability.
Canada reappointed to IMO Council
Today, Canada was re-elected to the International Maritime Organization (IMO) Council in Category B—states with the largest interest in international seaborne trade— for the 2024-25 term. With the longest coastline in the world and ports of call in the Great Lakes and Atlantic, Pacific, and Arctic Oceans, maritime trade is an essential part of the Canadian economy and way of life. In 2022, marine trade was valued at $345 billion
and generated 28,400 direct Canadian jobs. With its permanent mission of representatives to the IMO, Canada has established itself as a strong partner, leading several influential initiatives at Council. This includes creating the Gender Equality Network to increase the representation of women in the maritime sector, playing a leadership role in the development of the Polar Code to protect the unique environment and ecosystems of the polar regions, and leading efforts on the management of ballast water and hull biofouling, which protect our waters from invasive aquatic species. Canada was a founding member of the IMO in 1948 and has sat on Council since 1959.
Biden administration takes serious actions to strengthen America’s supply chains
President Biden is announcing nearly 30 new actions
to strengthen supply chains critical to America’s economic and national security. These actions aim to help Americans get the products they need, enable reliable deliveries for businesses, strengthen agriculture and food systems, and support good-paying, union jobs in the United States. The White House Council on Supply Chain Resilience
was established to support the enduring resilience of America’s critical supply chains. The actions include using the Defense Production Act to make more essential medicines in America, new cross-governmental supply chain data-sharing capabilities, and investments in critical supply chains, among others. Additionally, the Administration is deepening engagement with allies and partners to strengthen global supply chains.
US FTA pledges $220 million to modernize ferry systems
The US Department of Transportation’s Federal Transit Administration (FTA) has announced grants
totaling $220.2 million to modernize the nation’s ferry systems. These grants, provided through President Biden’s Bipartisan Infrastructure Law, aim to expand ferry service in rural communities, facilitate the acquisition of modern ferry boats (including electric boats that reduce carbon pollution), and upgrade shore infrastructure to support high-quality, low-emission ferry service. A total of 13 grants will be awarded in eight states and the territory of American Samoa. The federal funding will support various projects, including the replacement of old vessels, fleet expansion, and the construction of new terminals and docks.
USCG issues Marine Safety Alert concerning wood pellet fires
The US Coast Guard has issued a safety alert
to mariners, warning them about the dangers associated with fires caused by wood pellets. This alert comes after two seperate incidents where unmanned and uninspected hopper barges loaded with wood pellets caught fire while awaiting transport at a Mississippi River fleeting facility. Both fires resulted in significant damage, costing approximately $355,000 each, including total loss of cargo and extensive damage to the vessels. The cause of these fires was determined to be spontaneous combustion, a phenomenon that is not necessarily common but has been observed before.
Bulk carrier carrying wheat refloated after grounding in Detroit River
A bulk carrier named MV Barbro G
in the Detroit River, carrying about 19,000 tonnes of wheat destined for Italy. The ship ran aground around 7:30 a.m., and the US Coast Guard was on the scene to assist. The ship is undamaged, and no pollution, injuries, or impact to commercial traffic has been reported. The Windsor Port Authority Harbour Master mentioned that the ship is soft aground, stuck in mud rather than on rock or a shoreline. The operation is being managed by the US Coast Guard in coordination with the ship owners. The US Coast Guard said three tugboats were required to free the vessel
, which was then taken to an anchoring spot where it would be assessed for seaworthiness to determine if it could continue its journey east through the St. Lawrence Seaway.
Arsenio Dominguez confirmed as next IMO Secretary-General
Arsenio Dominguez Velasco is confirmed
as the next Secretary-General of the International Maritime Organization (IMO). The decision was made during this week's IMO Assembly, with attendees endorsing the Panamanian for the role. Dominguez Velasco will succeed Kitack Lim for an initial four-year term, becoming the IMO's tenth Secretary-General. He expressed his commitment to building on the work of his predecessors and addressing key issues, including safety, decarbonization, digitalization, and the human element. Dominguez Velasco will continue in his current role as the Director of the IMO Secretariat's Marine Environment Division until the end of the year.
RightShip introduces RightFLEET Lite for smaller vessel fleets.
RightShip's new cost-effective, user-friendly self-service platform, RightFLEET Lite
, is tailored for ship managers or owners with fleets of 10 or fewer vessels. This initiative aims to provide accessible and affordable solutions, enabling smaller fleets to operate more efficiently and safely. With RightShip Platform access, owners, managers, and operators of smaller fleets can monitor individual vessel safety scores, GHG ratings, and other crucial information, eliminating blind spots and enhancing overall fleet management.
Carriers dealing with 40' container oversupply challenges
Drewry predicts a contraction in the global pool of shipping containers for 2023, following a decline of 2.6% in 2022. The industry faces challenges
of surplus containers stacked in depots, incurring storage charges, amid the leasing agreements lasting for several years. While carriers must honor the terms of lease agreements, the resale market is saturated, with Container xChange noting a significant drop in the resale price of 40ft high-cube cargo-worthy containers from $4,132 in October 2021 to $1,005 in October 2022. The oversupply issue is particularly acute for 40ft high-cube containers, which were in high demand during the peak period of 2020-2021.
World's first containerized wind foil system to undergo sea trials
Ocean Network Express (ONE) is set to conduct a sea trial
of a wind propulsion system, having completed a factory test. The company plans to test the containerized wind foil system
, known as VentoFoils, developed by Netherlands-based Econowind. ONE aims to become the first large containership operator to test wind propulsion systems. The foil measures approximately 34 feet by 9 feet and is fully housed within the size of a standard 40-foot container. ONE believes the system has the potential to generate up to 400kW of power, potentially reducing fuel consumption by five percent. The trial is set to begin in January 2024 on the feeder ship Kalamazoo and run for approximately six months.
Swire Projects commences new Trans-Pacific semi-liner service
Swire Projects, the projects and heavy-lift shipping arm of Swire Shipping has officially launched a dedicated semi-liner service
connecting East Asia with the West Coast of North America. This service aims to provide enhanced cargo connectivity and meet the growing demand for reliable breakbulk and project cargo transportation into the West Coast, eliminating the need to route cargo via the Panama Canal
. The semi-liner service by Swire Projects connects the base ports of Qingdao and Taicang in China with Everett, Washington, and Vancouver, British Columbia, and offers inducement calls at key trading hubs in Southeast Asia, the US West Coast, and Mexico. The service
utilizes Swire Projects' H Class 28,500 deadweight multi-purpose vessels and I Type 19,000 dwt multi-purpose vessels.
Kudos to Pacific Basin Shipping on IBJ Award
Congratulations to Pacific Basin Shipping as they have won the "Bulk Ship Operator of the Year Award" at the 2023 International Bulk Journal Awards for the second year in a row. This annual award will goes to an operator of dry bulk vessels of any size, either as an owner or charterer who can demonstrate recent advances in safety, efficiency and environment protection. The award celebrates the contribution made to world trade by the ship operator.
Dec 5 - Webinar: Update on Federal Environmental Initiatives @ 0900-1200
Dec 7 - Vancouver Grain Exchange Annual General Meeting @ 11:00
Dec 7 - Vancouver Grain Exchange Holiday Lunch @ 1200, Terminal City Club
Dec 7 - The Plimsoll Club Ugly Sweater Party @ 1630 Cold Tea Room, Vancouver
Dec 15 - National Supply Chain Forum @ 09:00 PT
Dec 15 - COS Liner Committee Meeting @ 1200 Terminal City Club
Dec. 25 - Christmas Day - Office Closed
Dec. 26 - Boxing Day - Office Closed
Jan. 1 - New Year's Day - Office Closed
Ship of the Week
Dec. 1 - Hinrich Oldendorff
Vale, working in partnership with Oldendorff Carriers, have just commenced their first biofuel voyage on a bulk vessel. The trial is taking place on an Oldendorff vessel performing a laden Vale voyage from Brazil to Asia, carrying a full cargo of iron ore. The Hinrich Oldendorff
(209,113 deadweight built 2016) loaded the biofuel in Singapore on October 16th on the ballast voyage to Brazil. The vessel then loaded Vale’s iron ore this Tuesday November 28th at Guaiba Island Terminal and will consume the blended biofuel on the laden leg from Brazil to Asia.
The B24 biofuel on board is a blend of about 24% used cooking oil of vegetable origin (286 metric tonnes) and the balance is fuel oil. The product supplied is both European Union Renewable Energy Directive (EU RED) compliant and certified by International Sustainability & Carbon Certification (ISCC). The expected well-to-wake CO2 equivalent savings is around 18% or 784 metric tonnes of CO2 equivalent and will contribute to Vale’s Scope 3 emission reduction.