The Chamber of Shipping has released an open letter to the Federal Party leaders in advance of next week’s election to ensure that the priorities are included in the transition books following the post-election period. Below are some of the marine related issues noted by the main parties during the election campaign:
New Democratic Party
BC Ferries has raised $250 million through the issuance of senior secured bonds through a syndicate of investment banks. The bonds will bear interest at 2.794 per cent per annum and will mature in 30 years. Along with cash in hand, the proceeds from the sale will be used to provide for capital expenditures and general corporate purposes.
The BC Environmental Assessment Office (EAO) has asked Chevron Corp. to provide details on the impact of its proposed terminal at Bish Cove on climate change. Kitimat LNG has indicated that it will be one of the lowest GHG emitters of its type by using technology powered by electric motors using hydroelectricity. A draft document released by EAO opens the door for a discussion on taking a worldwide view on GHGs. “Spatial boundaries will not be defined, as GHG and climate change are, by nature, both regional and global,” according to the regulatory filing. The expanded scope would support the approach taken by the four First Nations noted in last week’s newsletter that are in support of energy exports that would help reduce reliance and pollution from coal-fired plants overseas.
Pinnacle Renewable Energy has entered into a new long-term, take-or-pay off-take contract with Mitsui & Co. Ltd. Under the terms of the contract, Pinnacle will supply 100,000 metric tons per annum of industrial wood pellets to Mitsui beginning in Q3 2023. The industrial wood pellets will be used by a biomass power generation plant in Japan.
Global Container Terminals Inc. (GCT) has joined the TradeLens supply chain platform in an effort to securely connect with supply chain partners including ocean carriers, beneficial cargo owners, and railways through blockchain technology. TradeLens project is a technological solution developed by IBM and Maersk that has expanded to include five of the world’s top six ocean carriers. The program will be rolled out in phases at all four of GCT’s terminals adding visibility to the east and west coasts of North America.
According to the data collected by the system itself, the use of TradeLens allows to reduce the transit time of a shipment by 40%, which represents an important economic saving. The developers of TradeLens have indicated that the information contained in this system grows at the rate of one million daily data shipments, surpassing EDI systems used in the common way, in addition to avoid the use of emails, messaging and fax services.
The local marine industry turned out in force for the Vancouver Shipping Luncheon on October 16, 2019 at the Terminal City Club. Organized by Vancouver ShipInvest and Management, attendees enjoyed networking opportunities and two very relevant presentations on issues that are impacting the shipping industry. The first presentation, from Rick Mackenzie, Vice President of RBC Global Asset Management, gave an overview of the current issues affecting the world economy and the potential impacts. The second presentation from Casey McCawley, Vice President, West Coast Operations of Parrish and Heimbecker, focused on Canadian grain exports and the drivers which were impacting supply and demand. The date of the next Vancouver Shipping Lunch will be announced shortly.
Yesterday Victoria city council passed a controversial cruise ship motion proposed by Mayor Lisa Helps and two councillors that would limit the number of cruise ships allowed to dock in the city each year, and prevent any long term contracts from being signed until the industry takes significant steps to reduce ship emissions and waste. BC Hydro has confirmed that it could meet the energy demands for shore power and would require a reconfiguration of the system to support the facility at Ogden Point.
The California Air Resources Board (ARB) issued a bulletin announcing that a public hearing will be held in Oakland on 5 December to consider the proposed Control Measure for Ocean-Going Vessels at Berth. The proposed regulation includes adding requirements on ports and terminals, expand covered vessels to include ro-ro and tankers to further reduce GHG and black carbon emissions. Written comments must be submitted by 2 December.
In a JOC article this week the president of the Pacific Merchant Shipping Association (PMSA), John McLaurin speaks to concerns with California’s ports losing market share over the past decade due to high costs, regulatory uncertainties, and environmental restrictions. While California ports have the highest usage of shore power, the costs of complying with state regulations has eroded ports’ competitiveness in the absence of offsets and any recognition or advantage provided. Expensive terminal leases are another concern as marine terminal leases in Southern California are twice as expensive on a per-acre basis compared to terminal costs in other parts of the US.
The State of California has adopted Assembly Bill (A.B.) 912 amending the state’s Marine Invasive Species Act. The Bill requires the State Lands Commission to adopt regulations that would require an owner or operator of a vessel, as defined, carrying, or capable of carrying, ballast water that operates in the waters of the state to implement specified federal standards regulating ballast water discharges and to comply with certain federal performance standards for implementing approved ballast water management methods. The bill would also require that those regulations set a date no later than January 1, 2040, by which the final performance standard for the discharge of ballast water of zero detectable living organisms for all size classes would be required to be met, and would revise certain requirements for the submission of that report regarding ballast water discharges, as prescribed. This also delays implementation of the state’s interim ballast water discharge performance standards until 1 January 2030.
Washington Maritime Blue, the Port of Seattle and WeWork Labs have collaborated to launch Washington’s first maritime accelerator with the goal of helping budding maritime companies innovate and grow. Funded by the Port of Seattle and a grant from the Washington State Department of Commerce, the accelerator aims to advance three key strategies, including helping maritime companies innovate and grow, establishing Washington as a global leader in maritime innovation, and increasing the sustainability of maritime businesses in both Seattle and beyond. The first accelerator cohort is expected to formally begin in January 2020.
The Unified Command unit established for car carrier, Golden Ray, that ran aground and capsized in St. Simons Sound while it was leaving the Port of Brunswick, Georgia, on Sept. 8th has decided that the vessel is impossible to safely right and refloat fully intact, and will therefore be cut in place and removed.
As of Oct. 12, 225,000 gallons of fuel have been removed from the forward fuel tanks and removal of the remaining fuel and lubricant tanks continues. Around 300,000 gallons of fuel was on the ship when it overturned. The Golden Ray is operated by the South Korean shipping and logistics company Hyundai Glovis.
The British Ports Association (BPA) has reservedly welcomed the news that a Brexit deal was finally agreed between the United Kingdom and the European Union. Under the new deal, Northern Ireland will remain part of the UK’s customs territory but also an entry point into the EU’s customs zone.
Although the UK and the EU finally reached the deal, its ratification in parliament is not certain yet as Northern Ireland’s Democratic Unionist Party (DUP) refused to support it. DUP’s concern is that all goods would be subject to a customs check regime despite their final destination and that consumers in Northern Ireland would face increased costs and potentially less choice due to checks being implemented.
The Indian Directorate General of Shipping (DGS) issued an order banning single-use plastic on Indian ships and foreign ships while in Indian waters. The ban enters into immediate effect for such items as plastic garbage and shopping bags. For other items, such as hot drink cups and microwave single-use microwave dishes, the ban enters into effect on 1 January 2020. Foreign ships must place banned items in locked storage prior to entering Indian waters and must make a log entry to that effect.
In line with IMO's Initial Strategy for decarbonisation of shipping industry, Greece has come forward with a concrete proposal for a short-term, prescriptive measure to improve the operational energy efficiency of existing ships, to be considered at the forthcoming meeting of the IMO’s intersessional technical group in November. Building on an existing proposal backed by the ICS and IMO Member States, Greece’s submission supplements the strengthened Ship Energy Efficiency Management Plan (super SEEMP) in a way that ensures the accomplishment of the IMO 2030 Target, which envisages a 40% cut in CO2 emissions by 2030.
The proposed measure prescribes the limit of the main engine power that ships over 5,000 GT can use under normal circumstances to maintain the level of CO2 emissions from ships at a historical low (2012) over a three-year phase-in period, commencing before 2023. The sectoral prescriptive approach it takes prescribes that bulk carriers and tankers reduce their main engine power by 50% and container ships by 66% and that charterers should clearly be obliged to adhere to any measure adopted to reduce GHG emissions from ships.
The Port of Rotterdam now offers the tracking of dry cargo flows. NPRC, the inland shipping cooperative, digitized its ‘supply chain’ in an efficient way in order to enable clients to monitor the status of their cargo with precision. Clients have been in the position to track connections to sea-going transport in Rotterdam as well as have real-time insight into inland shipping transport. Over the past year, the NPRC started investing in data-driven logistics optimization. NPRC is one of Europe’s biggest bulk providers, handling 14 million tonnes of dry cargo annually, with around 200 NPRC-affiliated inland vessels are in transit somewhere in Europe daily. NPRC’s German agricultural clients can now use the online dashboard to see exactly when they can expect their wheat or animal feed to arrive. The module for sea-going vessels was developed in partnership with the Port of Rotterdam Authority.
Nauticor has conducted the first ship-to-ship LNG bunkering operation in Germany using its bunker supply vessel Kairos. The operation took place this week at the Elbehafen Brunsbüttel, part of Brunsbüttel Ports. Kairos supplied to 300 cubic meters of LNG to DEME Group’s trailing suction hopper dredger Scheldt River, which is conducting maintenance dredging works on the Lower Elbe. In the future, the vessel will be used to bunker large ocean-going vessels in the Baltic region and Northwest Europe.