Following a period of stakeholder consultation, Port Metro Vancouver has published its intentions to revamp the Truck Licensing System with new measure to take effect February 1, 2015.
Based on the 15-point Action Plan which brought the March 2014 trucking disruption to an end, the province has also this week issued its own driver rate commitments which in summary are:
Trip paid independent operators will be paid Joint Action Plan trip rates on dock, and new Vince Ready/Corrin Bell rates off-dock for trips longer than 5 kms, both retroactive to April 3, 2014.
Hourly employees will be paid $25.13 on hire and $26.28 after one year of cumulative service, including benefits, retroactive to April 3, 2014.
Hourly paid independent operators will be paid hourly $50.13 on hire and $51.28 after one year of cumulative service, including benefits, retroactive to April 3, 2014.
Employee trips will be paid at $40 for on and off-dock.
Fuel surcharge multiplier of 2% will be paid to independent operators retroactive to March 27, 2014. Truckers who receive fuel at a discount will have their fuel surcharge multiplier apply to the actual price of the discounted fuel.
100% of all wait time remuneration paid to trucking companies will be paid to trip-paid truckers retroactive to April 3, 2014.
Short trips of less than 5 kms made by independent operators will be paid $50 per trip.
All truckers will be paid, at a minimum, for four hours work for callout. Independent operators paid by trip will be paid at least $200 and $160 for employees paid by trip.
The provincial commitment to appoint a trucking commissioner to oversee port drayage in future seems likely to be concluded in Q1 2015. For further details on the many complex changes to the TLS, please feel free to contact Stephen at the Chamber.
RCN introduces restriction on alcohol
Following an internal review, in what might charitably be described as an over-reaction, The Royal Canadian Navy is to ban the consumption of alcohol at sea on Canadian warships other than on special occasions. The order was made by Vice-Admiral Mark Norman following an incident in July this year when a small number of crew members on HMCS Whitehorse had a few tipples too many. In another complete over reaction, the vessel was ordered to abandon a major international naval exercise and return to base at Esquimalt.
Ottawa pushes back on buy America rules in Prince Rupert
The federal government is not amused by the proposed application of “Buy America Rules” in the upgrade of the Alaska ferry terminal in Prince Rupert. The use of a rarely applied anti-sanctions law to block the U.S. from imposing “Buy America” rules in Canada is said to be under consideration. The Foreign Extraterritorial Measures Act (FEMA) was designed to prohibit suppliers from bowing to a foreign law on Canadian soil but has only been invoked on a single occasion back in 1992 when the U.S. attempted to tighten its trade embargo on Cuba by punishing companies and individuals doing business there, including Canadians.
PPA achieved ISO9001
The Pacific Pilotage Authority this week achieved ISO9001 certification for the PPA Dispatch office and ISM Certification of pilot launches. We take the opportunity to congratulate the management team for a successful outcome to a fairly intense two year process. The Authority is now working on certification of the interface with BC Coast Pilots.
CN and Unifor Negotiations
In a news release issued by Unifor, it stated that CN and Unifor have been unable to reach a new tentative collective agreement, after months of negotiations and long hours this week at the bargaining table. Unifor had four CN bargaining tables meeting concurrently since Monday morning, in Montreal. Unifor opened negotitiations with CN on September 19, in advance of the expiry of the current agreement on December 31, 2014. There was some progress made over the week, but there have been several stumbling blocks on non-economic issues that prevent the talks from moving forward. The two sides will schedule future meetings in January to continue the negotiations.
Unifor has five collective agreements with CN Rail, which cover mechanics, clerical workers, excavator operators, and truck drivers. Unifor Local 100 represents skilled trades in mechanical shops and Unifor Council 4000 represents intermodal, clerical, mechanics and owner operators. Unifor represents 12,500 rail workers across Canada, and more than 305,000 members across the country in every economic sector.
Emissions Control Area - Ship Safety Bulletin
Transport Canada this week issued revised guidelines applicable to the North American Emissions Control Area which will take effect on January 1, 2015 when the level of allowable sulphur in fuel is reduced from 1% to 0.1%. See Ship Safety Bulletin No. 08/2014 - Vessel Air Emissions: 2015 Sulphur Emissions Standards. For its part, the US Coast Guard has reiterated its warning that all ships must have properly maintained equipment and competently trained crews aware of fuel switching procedures and dangers. It also advises owners to check over fuel and lube oil quality and the supply equipment in advance to minimize the risks of an engine failure. The warning for owners to take care with fuel switching is accompanied by the threat to name and shame vessels and owners for non-compliance with the new ECA fuel standards. To view the USCG comments on ECA compliance and enforcement, view the USCG Maritime Commons.
ILWU caucus meets and negotiations resume
The ILWU caucus met for two days earlier this week to consider a comprehensive package delivered last week by the Pacific Maritime Association that covered some issues where an agreement had been reached and some items that were still unresolved. Direct negotiations between the two sides resumed on Thursday, even though they publicly disagree over the current status of talks with PMA saying that reports they are close to achieving a tentative agreement are untrue. The union’s work slowdowns continues to generate havoc at the major coastal container ports.
Bunker prices now down by 45% in 2014
Since January 1, bunker prices have fallen between 40 and 45% depending on location with prices now at five year lows. Undoubtedly this is a big help to ocean carriers after a largely miserable trading year in 2014, but so far at least there is no rush to increase vessel speeds with all the consequential impact on world fleet utilization. On a voyage of 77 days, Drewry has this week estimated that an 18,000 TEU ship could achieve annual savings of $5.7 million, while a 12,000 TEU ship could save $4.75 million. However, the numbers do not take into account the additional compliance costs with Emissions Control Areas to take effect on January 1.
Belgian ports disrupted by one-day general strike
Belgium’s major European hub ports were this week hit by a nationwide general strike against the new governing coalition’s austerity measures. In Antwerp alone, 29 ships were delayed entering port and and 21 ships delayed in departing. Government plans include raising of the retirement age from 65 to 67, and major cut backs to public services in an effort to tame the country's budget deficit. Unusually, there was also trouble in neighbouring Rotterdam this week when dock workers held a rally in the centre of the city today to voice their concerns over the potential loss of jobs from the opening of APM Terminals Maasvlakte 2 and Rotterdam World Gateway's new automated terminals at Europe’s busiest container port. Unions claim that upwards of 1,000 job losses will result.
Spanish port labour monopoly deemed illegal
Marine terminal operators in Spain received a Christmas present this week when the European Court of Justice ruled that the country’s regulation requiring dockworkers to join a local labour pool and banning employers from recruiting anyone from outside the closed shop is in breach of EU law. The case had been brought by the European Commission following a complaint about the lack of competitiveness and lack of choice available to port employers. In the formal judgment, the court ruled that the Kingdom of Spain “has failed to fulfil its obligations under Article 49 of the Treaty on the Foundation of the European Union” by imposing restrictions on who can be employed.
Explosion on LPG carrier - two killed
The South Korean LPG carrier DL Calla suffered an explosion off Malaysia's Terengganu coast last week resulting in two crew members being killed and two others injured. The Panamax sized vessel was in transit from South Korea to Thailand at the time and reportedly suffered a cargo leak causing the explosion and minor fire that was rapidly extinguished. The Malaysian Maritime Enforcement Agency (MMEA) sent a rescue team to the location of the accident. The vessel suffered minimal damage from the explosion and continued on its passage to Thailand. The vessel is operated by Petredec Limited a global company with a long history of buying, selling, transporting, storage and distribution of LPG.
Collision on Parana River, Argentina
A collision occurred this week on the Parana River, Argentina, between the chemical tanker Ghetty Bottiglieri and the bulk carrier Octbreeze Island. The Octbreeze Island (above right) came off worst suffering a 5 to 6 metre opening in its hull resulting in bunker tanks being punctured and flooding of cargo compartments. An oil slick was partially contained by booms placed by authorities. The Ghetty Bottiglieri (above left) sustained damage to its bulbous bow. Authorities have launched an investigation but local reports state the vessels were in a severe storm at the time of the collision.
Pan Ocean sole to Korea's Harim Group
The sale of Pan Ocean to the only bidder, a consortium led by South Korean poultry processor Harim Group, has been agreed. The group is reportedly planning to enter the grain logistics business using Pan Ocean’s 96 vessel bulk operation. Pan Ocean entered receivership in June 2013 and was put up for sale in March this year after being spun off by its parent STX Group. Harim Group’s shares came under heavy pressure following the announcement.
Top 100 most influential people in shipping
As it customarily does at this time of the year, Lloyds List has published its top 100 most influential people in shipping – some of it being a bit tongue in cheek. The top 10 are as follows:
Xi Jinping, President of China (above)
Nils Andersen and Søren Skou, AP Moller-Maersk
Opec and the oil men
John Angelicoussis, Angelicoussis Shipping Group
Other People’s Money
Aponte Family, Mediterranean Shipping Co
Eyal Ofer, Zodiac Group
Idan Ofer, Quantum Pacific Shipping Group
Emanuele Lauro, Scorpio Group
John Fredriksen, Seatankers
Rolls Royce rolls out ship intelligence concept
Rolls-Royce has released an overview of a future bridge operation experience concept developed in cooperation with VTT Technical Research Centre of Finland, which provides insight of new technologies which the company believes could become reality by 2025. The concept assumes considerable future cost savings to ship owners by reducing the number of crew on board future vessels by use of smart technologies. Rolls-Royce believes “unmanned ships will be one of the most fundamental changes that we will experience in shipping in our lifetimes.” The following video reveals all: https://www.youtube.com/watch?v=_nApv-C7qSg.
Market Report - December 19, 2014
After last week’s declines, the Capesize market is suffering a Christmas melt down. The Baltic Dry Index closed on Thursday on 814 points compared to 887 points last week and 1019 points the week previously.
Spot time charter
One week ago
Tankers: Daily spot market earnings for VLCC’s continue to climb and this week found themselves in the $90-$100,000 per day range for a voyage from the Middle East to Asia – a level last seen in the giddy days of 2008. Not wishing to throw cold water on a good news story but there are 92 VLCCs on order which if not balanced out by scrapping of older tonnage could soon begin to undermine improved earnings.
Jan 28 - Cargo Logistics Canada Expo & Conference
The seminar listing for the Cargo Logistics Canada conference and registration is now available at: http://www.cargologisticscanada.com/. The Cargo Logistics Canada Expo & Conference is the largest and most diverse gathering of stakeholders in Canadian supply chains to be assembled in Canada. Until December 19th enjoy 30% off the CLC VIP Conference Pass, now only $275.
Earlier this month in an elaborate ceremony, United Arab Shipping Company (UASC) named the industry’s first ever LNG-ready ultra large container vessel, MV Sajir. She is the first vessel in UASC’s current new build program, comprising 17 of the world’s most eco-efficient vessels.
Built by Hyundai Heavy Industries, Ulsan, South Korea LOA 368m Beam 51m Nominal capacity 15,500 TEU (A15 class)
The DNV GL A15 class of vessel is described as the largest and most eco-efficient container vessel in this capacity range. Preliminary calculations indicate an Energy Efficiency Design Index (EEDI) value that is close to 50% below the 2025 limit established by the IMO. In a major capacity boost, ten further A15 vessels and six 18,800 TEU (A18) container vessels are scheduled for delivery by Hyundai Heavy Industries and Hyundai Samho Heavy Industries to UASC by mid-2016.
Sajir takes her name from an area in Saudi Arabia that is known for its productive agricultural heritage. Mr. Jorn Hinge, President and Chief Executive Officer of UASC (above right at the naming ceremony) commented that “these highly efficient vessels help us significantly reduce the amount of fuel we consume per container as we operate one of the world’s youngest container vessel fleets and are committed to making it more environmentally sustainable. The A15 vessels go beyond what regulations require and set new standards in terms of efficient, safe and sustainable operations.”
By way of comparison, the CO2 output per TEU for this new vessel class will be 22% less than for a 13,500 TEU vessel delivered only two years ago and they are also designed for an expedited LNG retrofit at a later stage. The vessels will benefit from DNV GL’s CLEAN class notation and aare equipped with a type approved ballast water treatment system and a shore-to-ship power supply solution to enable zero emissions at berth which is documented by the “Shore Power” class notation.
Also this month it was announced that an agreement on international rules for the construction and operating gas-powered ships have been made by the IMO. Known as the International Gas as Fuel Code (IGF), it has been agreed that the code will likely be adopted when the Maritime Safety Committee meets next summer and enters into force in July 2017. Crew training on LNG fuel use and bunkering operations has also been discussed at the IMO with new recommendations set to be included into an amendment to the crew and officers working on gas-powered ships.
Following widely publicized incidents of structural failure in large containerships including those of MSC Napoli and MOL Comfort, new rules to ensurestructurally stronger vessels will also take effect from mid-2016. The International Association of Classification Societies (IACS) council met in London earlier this week to review new unified requirements for containerships designed to avoid another failure.
Our next newsletter will be out on January 9, 2015