PACIFIC PILOTAGE TARIFF PUBLISHED

The new tariff effective January 1, 2010 is published in the Canada Gazette Part II.  The Pacific Pilotage Authority will increase its general tariff by 3%, increase the northern travel charge and implement a new charge of $25 per boarding to fund portable Pilotage units for the pilots.

AMENDMENTS TO THE PACIFIC PILOTAGE REGULATIONS

The Amendments to the Pacific Pilotage Regulations passed without comment and are published in Part II of the Canada Gazette.  Many of the changes bring the Regulations in line with recent legislative and regulatory reform brought about by the Canada Shipping Act, 2001 and the Marine Personnel Regulations.  In addition, for pleasure craft the minimum tonnage of vessels requiring compulsory Pilotage increased from 350 GRT to 500 GRT and the amendments allow for the extension of the Pine Island Pilot Station operations from seasonal to year-round.

BUNKER CONVENTION RATIFIED

Transport Canada has ratified the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 (Bunkers Convention) and issued a Notice to Industry regarding entry into force in Canada on January 2, 2010. 

From January 2, 2010 all ships over 1000 gross registered tonnage that are registered in Canada as well as foreign-registered ships entering Canadian ports and terminals will be required to possess a certificate of financial responsibility.  Foreign-registered ships with a certificate from another state party to the Convention will be recognized by Canada.  Failure to produce a valid certificate may result in enforcement action as set out in the Marine Liability Act (Chapter 21, 2009). (Resend from our December 4, 2009 Newsletter)

NEW SEABUS FERRY TAKES MAIDEN VOYAGE

The new SeaBus, the MV Burrard Pacific Breeze, is now officially in service.  The ferry across Vancouver Harbour took its maiden voyage today, carrying federal and provincial representatives.  The ferry will join the MV Burrard Otter and MV Burrard Beaver to provide enhanced service during the 2010 Olympic and Paralympic Winter Games.  One of the original vessels will then be retired from service and the other upgraded; as funding permits, a new SeaBus will be built to replace the other original ferry.

Government News

DOMESTIC FERRIES SECURITY REGULATIONS

The Minister of Transport has announced new procedures for domestic ferries for detecting and preventing security threats.  Published in Part II of the Canada Gazette – December 23, 2009, the Regulations cover 18 domestic ferry routes and 29 facilities and are in effect immediately in the Pacific region.  In the Ontario, Quebec and Atlantic regions the regulations will come into force on April 1, 2010.  The Domestic Ferries Security Regulations apply to Canadian flag vessels that carry passengers on a regular schedule and operate on a route identified within the Regulations.

ESQUIMALT GRAVING DOCK – TARIFF REVISIONS

In accordance with the User Fee Act, the Minister of Public Works and Government Services has published a new tariff by under the Esquimalt Graving Dock Regulations.

Other News

COP15 – UNCERTAINTY FOR SHIPPING CONTINUES

US EPA MAKES U TURN ON FUTURE ACCEPTANCE OF EXHAUST GAS SCRUBBERS

Despite proposals to the contrary in an initial rule making published in August, the U.S. Environmental Protection Agency (EPA) has now confirmed that exhaust cleaning systems will be accepted on ships calling US ports when the proposed North American Emissions Control Area (ECA) extending 200 miles off Canada and the US enters into force in 2012. The Regulatory Announcement” concedes that this change is necessary in order to ensure consistency in the US with IMO Marpol Annex VI, which the US ratified last year and which became law in January 2009.

A further U-turn is an exemption from ECA standards for ships trading in the Great Lakes and the Saint Lawrence Seaway. The final rule exempts older steam driven vessels in the Great Lakes from ECA compliance and a “fuel availability relief provision” allows vessels to buy the lowest sulphur fuel available if ECA standard fuel is not available. In a further step, an “economic hardship relief provision” exclusive to vessels with diesel engines operating on the Great Lakes and Saint Lawrence Seaway provides temporary relief from the 2015 ECA level sulphur standards, “upon demonstration that the burden of compliance costs would cause serious economic hardship”. In this context, EPA is proposing an economic impact study to identify and resolve outstanding compliance concerns.

In a related move the Dutch ship owner Forestwave Navigation is to install the Ecospec exhaust gas scrubbing system on six new builds. Founded in 2003 ForestWave Navigation claims to distinguish itself from other shipping companies through its innovative approach to the shipping industry market, with “sustainability" and “customer-orientedness" as its spearheads. 

Live testing of the Singapore based Ecospec system has indicated an ability to reduce SOx by 100%, NOx by 65% and CO2 by between 47% and 50%. The company was recently allocated S$2m ($1.2m) from the Singapore government to put the system through final stages of independent verification.

Meanwhile, EU countries have been urged to be flexible over the application of a rule requiring vessels to burn only 0.1% sulphur content fuel effective January 1 2010 when at berth. It is recognized that many tankers have no technical ability to comply until complex modifications are complete. A summary list of frequently asked questions on this topic is attached.

STATE OF CALIFORNIA REVISED BALLAST WATER SAMPLING REGULATIONS

Owners and agents are advised to take note of two attachments detailing the Implementation of new rules in the State of California related to Performance Standards and Requirements to Install Ballast Water Sampling Facilities.

SUBSTANTIAL LINER SECTOR LOSSES Q1–Q3 21009

On account of a revenue drop averaging 40%, operating losses for the 16 major lines which release results amounted to $9bn in the period from January to the end of September this year, compared with an operating profit of $5.3bn last year. The remaining six major carriers which are not required to publish results are estimated to have lost $2bn in the same period.

There is more bad news for shipyards with CMA CGM having confirmed plans to negotiate the cancellation of orders for 15 vessels. In addition the company will seek to defer delivery of a further 15 units out of a total order book for 45 vessels. Orders for 8 units of a class of 13,800 TEU vessels, the first of which has been delivered, will still go ahead.

CHRISTMAS ISLAND

Being the season of good cheer we share a historical note related to Christmas Island, an atoll first discovered by Captain Cook on his 3rd Voyage of Discovery to the Pacific on December 24 1777 which no doubt explains the origin of the name.

The island was annexed by Great Britain in 1888 and at Australia's request, the United Kingdom transferred sovereignty to Australia in 1957. Christmas Island and the Cocos Islands together are called the Australian Indian Ocean Territories and since 1997 share a single Administrator resident on Christmas Island. In 2001, Christmas Island was as the centre of the “Tampa” incident, when the Australian government stopped a Norwegian ro-ro vessel, M.V.Tampa from disembarking 438 rescued asylum seekers. The Master of “Tampa” refused orders to leave the area and was eventually successful in having his unwanted guests safely removed. The crew of the Tampa received the Nansen Refugee Award for 2002 from the United Nations High Commissioner for Refugees (UNHCR) for their efforts to follow international principles of saving people in distress at sea.

IMO SECRETARY GENERAL PAYS PERSONAL TRIBUTE TO SEAFARERS

In paying tribute to the world’s 1.5m seafarers the IMO has decreed 2010 as being dedicated to “The Year of the Seafarer in an effort to highlight the unique, and all too often over-looked, contribution seafarers make”. The Secretary General went on to say “we want to convey to you a clear message that the entire shipping community understands and cares for you and in so doing, we seek to reassure you, at the ‘sharp end’ of the industry, that we, who are responsible for the international regulatory regime and who serve shipping from ashore, do understand the extreme pressures that you face and that, as a result, we approach our own tasks with a genuine sympathy for the work that you carry out. We do so with deep appreciation, in recognition of the extraordinary service you render every day of your professional life, frequently under dangerous circumstances, in delivering, to the more than 6.5 billion people of the world, the wheat that makes our daily bread, the gas and oil that warms our homes or moves our vehicles and the gifts we will share and enjoy with our families and friends over this Festive Season.”

Market Update

Unfortunately, Father Christmas had no gifts for the Baltic Dry Index this week which again lead by weak demand for Capesizes, closed for the holiday period as soft as the snow which virtually shut down Europe earlier in the week at 3005 points compared to 3376 points last week and 3671 points the week previously.

                                        Cape Size             Panamax            Supramax          

Index                                   3887                     3567                    2224

Last week                            4875                     3436                    2340

Spot time charter           $49,300/day            $27,600/day          $23,200/day

Last week                      $37,200/day            $28,600/day          $24,500/day

Whilst not a great note to conclude the week before rushing out the door for last minute shopping, it’s perhaps worth reflecting that the BDI was sitting at only 1361 points on January 1 this year.

Upcoming Events

Dec 28              Boxing Day Holiday – COS Office Closed

Dec 31              New Year’s Eve – COS Offices Close @ 12:00

Jan 1                New Year’s Day – COS Offices Closed

Jan 6                COS Board of Directors Meeting @ 11:30

Jan 12               VMAA Board of Directors Meeting @ 12:00

Jan 12               COS Ship & Port Operations Committee @ 12:00

Jan 13               COS Liner Committee Meeting @ 11:30

Jan 13               Rail Services Review Discussions @ 13:00

Jan 14               COS Navigation Services Committee Meeting @ 10:30

Jan 19               CIABC Board of Directors Meeting @ 10:30

Jan 19               ICS Board of Directors Meeting @ 12:00

Jan 20               Plimsoll Club Pub Night @ 17:00 (tbc)

Jan 21               Business of Shipping Course

Jan 26               ISSC Board of Directors Meeting @ 12:00

Jan 27               PACMAR/NANS Meeting @ 10:30

Jan 28               COS Owners Committee Meeting @ 12:00

Jan 28               VMAA Seminar on Bill C-7 @ 12:00

Comments (0)