The U.S. Committee on Foreign Investment in the United States had notified that it does not have any outstanding security issues following an agreement with the U.S. government to divest the Long Beach container terminal business to a third party. Cosco has said the U.S. regulator has cleared its planned takeover of the Hong Kong-based container shipping operator, after Cosco agreed to place a large container terminal in Long Beach, Calif., into a U.S.-run trust and put it up for sale. When everything is final COSCO will hold 90.1% of OOIL.
President Trump's tariffs on $34 billion worth of Chinese goods have kicked in, escalating a war of words between the world's two largest economies into a full-blown trade conflict. Washington's 25 percent duties went into effect at midnight EDT and affected products such as water boilers, X-ray machine components, airplane tires and various other industrial parts. China immediately retaliates with tariffs on its $34 billion list of goods issued last month, including soybeans, pork and electric vehicles. US. shipments of soybeans originally destined for China have been canceled or rerouted. One bulk carrier, Peak Pegasus, laden with US soybeans steaming toward China appears to have lost the race to arrive before the import duties were imposed. The vessel is near the port of Dalian, according to ship-tracking data. The oilseed, used to make cooking oil and animal feed, accounts for about 60 percent of the US’s $20 billion of agricultural exports to China.
In a victory for the coal industry, a federal judge struck down the City of Oakland’s ban on the operation of a coal terminal, clearing the way for coal to be exported from the West Coast port. US District Judge Vince Chhabria ruled Oakland city officials violated a contract with developer Phil Tagami and his Oakland Bulk and Oversized Terminal when they prohibited the handling and storage of coal within the city limits in 2016 and retroactively applied the ban to his previously approved marine terminal project. Human health arguments previously put forth were dismissed as the evidence was insufficient and failed to consider mitigation technologies the company planned to deploy. Estimates are the terminal will handle five million metric tons of coal per year.
A pair of crane operators at the Port of Long Beach have set a new productivity record for moving the most cargo using a single crane during one eight-hour shift. The record was set on May 15 when two crane operators working the containership Gudrun Maersk at Total Terminals International’s Pier T terminal moved a total of 564 containers using a single crane over just an eight-hour period. This represents an average of 70 container moves per hour, which is nearly triple the West Coast average of 25 container moves per hour. The new record breaks the previous American record of 534 container moves set in 2014, also at the Port of Long Beach. Over the four-day call, more than 9,300 total containers were discharged and loaded on the 11,000 TEU capacity Gudrun Maersk.
The US Coast Guard has issued Safety Alert 11-18 to raise awareness of a potentially dangerous circumstance involving Personal Flotation Devices (PFDs). Inspections have found that a number of unwearable type 1 PFDs would have presented a problem if ever needed in an emergency. Owners and operators are strongly requested to inspect their PFDs and are reminded that regulations require PFDs to be wearable and in serviceable condition.
The Marine Safety Center issued two more Coast Guard Ballast Water Management System type approval certificates. The eighth certificate was issued to Samsung Heavy Industries Co., Ltd. for its Samsung Purimar BWMS that consists of filtration with electrolysis during uptake and neutralization at discharge. This approval covers models with maximum treatment rated capacities between 250 m3/h and 10,000 m3/h. The ninth certificate was issued to BIO-UV Group. The treatment principle of the BIO-SEA B BWMS consists of filtration with UV treatment at uptake and discharge. This approval covers models with maximum treatment rated capacities between 55 m3/h and 1,400 m3/h.
The US Coast Guard has issued Marine Safety Alert 10-18: U.S. Gulf Coast Bunker Contamination. The alert raises awareness of an emerging problem in the US Gulf Coast Region regarding contaminated vessel fuel oil bunkers. The notice states "The Coast Guard recommends that vessel owners and managers ensure vessel operators are made aware of this potential hazardous condition, closely monitor fuel oil system components and consult their bunker suppliers and other technical service providers regarding this issue." Fuel tester VPS has indientified the presence of 4-Cumyl-Phenol which is used in the manufacture of epoxy resins and as emulsifier in pesticides. Whle the source of contaminiation remains unknown, it is presumed to be associated with the use of fuel oil cutter stocks. The standard fuel oil tests for the ISO 8217 specification will not detect these underlying problems.
The Federal Maritime Commission (FMC) has approved changes that will relieve regulatory burdens on Ocean Transportation Intermediaries (OTI) and simplify requirements for using non-vessel-operating common carrier (NVOCC) Negotiated Rate Arrangements (NRAs) and NVOCC Service Arrangements (NSAs). NSAs and NRAs are instruments created by the Commission, at the request of shipper and carrier stakeholders, respectively in 2004 and 2010. They provide shippers and OTIs with a more efficient way to comply with Shipping Act reporting requirements while relieving them from the tariff filing process. The vote came during a public meeting of the Commission that also included a briefing on staff practices and procedures for monitoring ocean carrier and Marine Terminal Operator agreements.
The Los Angeles Board of Harbor Commissioners has approved a $1.3 billion budget for the Port of Los Angeles for the ensuing year. The budget focuses on priorities set out earlier this year in the Port’s revised 2018-2022 Strategic Plan, which calls for a focus on growth-supporting infrastructure; security, supply chain efficiency and sustainability; improved financial performance of port assets; and building strong relationships with port stakeholders. In the approved budget, $91.0 million is dedicated to Capital Improvement Projects (CIP), a 6.9% decrease over the previous fiscal year. Of that amount, $31.6 million will go toward terminal improvements, primarily focused on upgrades to better accommodate larger vessels and facilitate more efficient cargo-handling processes.
The Coast Guard Marine Safety Center issued the seventh US Coast Guard Ballast Water Management System Type Approval Certificate to Techcross, Inc., after a detailed review of the manufacturer’s type approval application. The treatment principle of the Techcross Electro-Cleen BWMS consists of electrolysis during uptake and neutralization at discharge. This approval covers models with maximum treatment rated capacities between 150 m3/h and 12,000 m3/h. This week USCG also received its 15th application for type arpproval from HiBallast Ballast Water Management System, manufactured by Hyundai Heavy Industries Co., Ltd.
The International Longshoremen's Association (ILA) and United States Maritime Alliance (USMX) announced on Wednesday, June 6 that the parties had struck a tentative deal for a new, six-year master contract. More than 200 members of the ILA met with the East Coast port employer representatives to discuss a contract renewal before the current pact expires on September 30, 2018. The local ILA and individual port authorities have been directed to reach individual deals to supplment the master contract by July 10, 2018. If this deal is approved by ILA members, there would be labour peace on both coasts of the US until at least 2024, and parallels a labour deal for US West coast ports lasting until 2022.
The US Coast Guard issued a safety alert regarding bollard failures at marine facilities and is encouraging facility owners and operators to develop inspection programs to detect deficient bollards prior to failure. The US Army Corps of Engineers, NAVAL Facilities Engineering Command and Air Force Civil Engineering Support Agency have developed a helpful document on this topic titled Unified Facilities Criteria “Inspection of Mooring Hardware” UFC 4-150-08 for the planning, inspection, assessment, and reporting of mooring hardware conditions.
Inchcape Shipping Services Holdings Limited and its affiliates have agreed to pay $20M to resolve allegations that they violated the US False Claims Act by knowingly overbilling the US Navy under contracts for ship husbanding services. The lawsuit alleged that from 2005 to 2014, Inchcape knowingly overbilled the Navy for these services by submitting invoices that overstated the quantity of goods and services provided, billing at rates in excess of applicable contract rates, and double-billing for some goods and services. The lawsuit was brought under the qui tam, or whistleblower, provisions of the False Claims Act by three former employees of Inchcape, Noah Rudolph, Andrea Ford and Lawrence Cosgriff. Under the act, a private citizen may bring suit on behalf of the United States for false claims and share in any recovery. The government may intervene in the case, as it did here. The False Claims Act allows the government to recover treble damages and penalties from those who violate it and it was resolved by the Department of Justice that the whistleblowers will receive approximately $4.4 million.
The Federal Maritime Commission (Commission) has voted to issue a Request for Additional Information (RFAI) in response to an amendment filed in April by the parties to the West Coast MTO Agreement (WCMTOA). The amendment would change the PierPass fee structure and use appointment systems for dray truckers serving facilities at the Ports of Los Angeles and Long Beach. Once WCMTOA responds to the questions posed in the RFAI, the Commission will have another 45 days to analyze the amendment.
US Senator Roger Wicker, R-Miss., Chairman of the Senate Seapower Subcommittee and a member of the Subcommittee on Surface Transportation and Merchant Marine Infrastructure, Safety and Security, has introduced the “Energizing American Shipbuilding Act.” The legislation would support American shipbuilding by requiring a portion of liquefied natural gas (LNG) and crude oil exports to be transported on US-built, US-crewed vessels. The legislation was also introduced in the House of Representatives by Congressman John Garamendi, D-Calif., the Ranking Member of the House Subcommittee on the Coast Guard and Maritime Transportation.
When Congressman Garamendi had introduced similar bills in previous years, the former US Trade Representative had intervened against those proposals. However under the Trump Administration the current US Trade Representative, Robert Lighthizer, may be less inclined to intervene against this proposal. Reports also suggest that this bill has received support from several national stakeholders, including the US shipbuilding industry, iron and steel industry, and labour leaders.
The Marine Safety Center recently updated two tools posted to its ballast water management system website to assist industry when completing the ballast water management system type approval process, or when accessing letters of intent. First, the Ballast Water Management System Type Approval Review Checklist was updated May 9th to streamline Marine Safety Center’s review of type approval applications, and second, the Letters of Intent Register now includes both the system name and the manufacturer’s name for each Letter of Intent that has been submitted to improve the ease of searching and/or identifying LOIs when multiple systems listed are manufactured by a single company.
The US Office of Information and Regulatory Affairs (OIRA), within the Office of Management and Budget is seeking public input on how the Federal government may prudently manage regulatory costs imposed on the maritime sector. Multiple Federal agencies regulate the US maritime sector consistent with their statutory authorities. OIRA seeks public comment on how existing agency requirements affecting the maritime sector can be modified or repealed to increase efficiency, reduce or eliminate unnecessary or unjustified regulatory burdens, or simplify regulatory compliance while continuing to meet statutory missions. The request for information is meant to inform agencies’ development of regulatory reform proposals. All submissions will be made publicly available.