This week both Stephen Pyne, General Manager, and Karen Barre, Manager Operations and Customer Service – Western Canada, retired from Montship. In 2005 Karen was the first woman to join the Chamber of Shipping Board of Directors, serving as Chair of the Liner Committee for five years, and retires from Montship after 34 years with the company. Stephen joined Montship in 2005 as General Manager of our Marine department after a few years with a breakbulk shipping company. Stephen is one of the founding members and speakers of our successful Business of Shipping program. Upon Stephen’s retirement Peter Ng and Teddy Trica will assume management responsibilities for marine operations and commercial services. We thank them both for their contributions to the shipping industry and wish them well in their retirement years.
According to Bloomberg, the US turned into a net oil exporter briefly last week, breaking almost 75 years of continued dependence on foreign oil. The shale revolution has transformed oil wildcatters into billionaires and the US into the world’s largest petroleum producer, surpassing Russia and Saudi Arabia. The power of OPEC has been diminished, undercutting one of the major geopolitical forces of the last half century. In an effort to boost oil prices and reduce oversupply, OPEC has just announced a cut in oil production by 1.2 billion barrels per day. Oil prices spiked immediately following the decision.
Canada Border Services Agency has released Customs Notice 18-22 to implement the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in Canada, Australia, Japan, Mexico, New Zealand and Singapore on . Additionally, the Agreement will enter into force for Vietnam on . With the exception of a few agricultural goods, the CPTPP will essentially eliminate the customs duties on all qualifying imports into Canada from a country for which the CPTPP is in force ("CPTPP country"), either immediately upon implementation of the agreement, or through a tariff phase-out.
The Chamber of Shipping joined a roundtable hosted by the Honourable Marc Garneau, Minister of Transport, Honourable Amarjeet Sohi, Minister of Natural Resources, and the Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food, to discuss the transportation of commodities by rail with producers, shippers, railways, ports and provinces. Key topics covered included system performance of the freight rail supply chain; assessing capacity across supply chains, which includes identifying areas of weakness, congestion and strength so that inefficiencies in the transportation system can be addressed, and supply chain partners can make more informed decisions; and, the importance of sharing information and collaboration, particularly in the context of forecasting and planning, and identifying potential solutions.
Commodore Darren Garnier of the Canadian Armed Forces (CAF) officially assumed command of Combined Task Force 150 (CTF 150) yesterday during a change of command ceremony held at Combined Maritime Forces (CMF) Headquarters in Manama, Bahrain. CTF 150 is a task force under CMF, which is the naval coalition of 33 nations that promotes security and stability in the international waters of the Middle East region. Canada has deployed 29 CAF military personnel and one Department of National Defence civilian employee to CMF Headquarters to lead CTF 150 until April 2019. They will join the over 100 coalition members currently supporting CMF. The deployment is part of Operation ARTEMIS, the CAF’s ongoing contribution to counter-terrorism and maritime security operations in the Middle Eastern and East African waters.
BC Premier John Horgan, Minister of Environment and Climate Change Strategy George Heyman and Green Party leader Andrew Weaver unveiled “CleanBC,” the highly anticipated climate action strategy. The made-in-BC plan serves as an overarching blueprint that outlines how the government intends to meet its commitment to meet its climate action goals while also growing the economy and health of the province. More importantly, this satisfies conditions of the Confidence and Supply Agreement (CASA) between the NDP and Greens to reduce greenhouse gas (GHG) emissions by 40 percent of 2007 levels by 2030 as legislated in the Climate Change Accountability Act.
Key elements of CleanBC to reduce industrial emissions by 8.4 Mt by 2030:
DP World has completed the acquisition of Unifeeder, a European feeder and shortsea shipping line after securing clearance from European monopolies regulators. The €660m deal is the first in which a port operator has taken over a carrier. The European Commission’s competition department has determined that the deal does not raise any competition concerns. Unifeeder is the largest feeder operator in Northern Europe, with a network that connects around 100 ports, serving both deepsea container hubs and the intra-Europe container freight market.
Maersk has announced its goal of reaching carbon neutrality by 2050. To achieve this goal, carbon neutral vessels must be commercially viable by 2030, and an acceleration in new innovations and adaption of new technology is required. Given the 20-25-year life time of a vessel, Maersk believed that it is now time to start developing the new type of vessels that will be crossing the seas in 2050.
Over the past week we have undergone a couple of notable staffing changes at Chamber of Shipping of BC, which we would like to share with you. Janet Kelly has joined the team as Communications Specialist. As a communications generalist, Janet has hands on experience in all facets of communications. Her skills and experience will help to round out our team’s expertise and we are very excited to welcome her on board.
Dennis Li has left the organization to take on a new role on the accounting team with one of our member companies. Since he joined the COS in 2014, Dennis has been a valuable member of the COS team. We wish him all the best in his future endeavours.
Coastal communities warn potential closures could have devastating effects on local economies. Following the federal government’s designation of a 5,025-square kilometer Northern and Southern Resident Killer Whale critical habitat (CH) zone off the southwest coast of Vancouver Island, 17 Island Chambers of Commerce have united to protect the marine-based tourism on which they depend and urge the Department of Fisheries and Oceans to carefully weigh potential management measures that could harm their coastal communities, destroy thousands of business and jobs, and impact tourism revenue across Vancouver Island. Collectively, the Chambers’ coalition represents more than three thousand businesses across Vancouver Island that depend directly or indirectly on marine-based tourism and the induced spending around these activities. As communities that have only recently battled back from forestry and commercial fishing closures to reach a level of economic viability, primarily through marine-based tourism, they now see themselves as critical habitats.
Clear Seas Centre for Responsible Marine Shipping, in partnership with the Angus Reid Institute, has found a majority of Canadians believe transporting goods by sea is safe, and most say marine shipping is growing in importance in this era of heightened trade uncertainty between Canada and the United States. However, the risk of oil and fuel spills and water pollution from marine shipping remain Canadians’ top concerns. The new public opinion poll builds on a benchmark study on public attitudes about the shipping industry first conducted in March 2016. Today, the Canadian public places a higher degree of importance on marine shipping than it did back then. Greater numbers now say the industry is “critically important” to the Canadian economy. The 2018 poll addresses the value of shipping in Canada and to Canadians, safety concerns and environmental risks, and the degree of confidence Canadians have in shipping industry regulations and oversight.
Canada Border Services Agency (CBSA) determined that certain steel components required for the Woodfibre LNG export terminal in Squamish will be subject to the 45.8 per cent anti-dumping tariffs. The CBSA argued that the fabricated industry steel components (FISC) of an LNG module are not transformed when non-FISC elements are connected. Woodfibre had argued that its modules should not be subject to the tariffs as they are not basic steel structures, but rather manufactured goods that include “a myriad of complex and specialized machinery.” Construction is expected to start on Woodfibre LNG early next year, with first shipments in 2023. The plant, located some 60 kilometres north of Vancouver, will liquefy and export some 2.1 million tonnes of supercooled gas each year.
The Vancouver Fraser Port Authority commissioned Mercator International to provide a forecast of container ship traffic travelling through the Salish Sea and serving Pacific Northwest ports, with or without the Roberts Bank Terminal 2 Project. Key takeaways include:
More in the Business in Vancouver article Canada faces container terminal crunch.
IFM Investors (IFM) and British Columbia Investment Management Corporation (BCI) have become equity partners in GCT Global Container Terminals Inc. The Ontario Teacher’s Pension Plan (OTPP) will continue to hold 37.5% of the North American terminal operator, with IFM acquiring and BCI acquiring at 37.5% and 25% holding respectively. As leading institutional investors with port assets around the world, OTPP, IFM, and BCI are all signatories to the UN Principles for Responsible Investment and manage a diversified portfolio valued at CAD$360.5 billion. GCT operates four terminals in the ports of Vancouver and New York/New Jersey, serving the all the industry’s top container carriers.
The Minister of Transport, the Honourable Marc Garneau, joined Robin Silvester, President and Chief Executive Officer of the Vancouver Fraser Port Authority, at the Port of Vancouver to highlight the completion of a project supporting the Government of Canada's commitment to reduce greenhouse gas emissions, air pollution, and to embrace new technologies to improve Canadians' lives.Through the Shore Power Technology for Ports program, the Government of Canada and the Vancouver Fraser Port Authority have each contributed $3.5 million to the Centerm project, for a total investment of $7 million. The completed project reduces greenhouse gas emissions by enabling ships to shut down their diesel engines and connect to an electrical grid supplied by renewable energy sources. For each large ship at berth for 60 hours, over 95 tonnes of air pollutants and greenhouse emissions will be eliminated from the port through the shore power facility. This amounts to taking 20 cars off the road for one year. Last month the Cosco Pacific was the first vessel to plug into shore power for the duration of its stay.
BC Ferries has filed with the BC Ferry Commission the largest capital plan in its history. The capital plan, which covers projected spending between 2019 and 2030, was one of five reports included in the corporation’s “Performance Term Five Submission” filed at the end of September. The plan says BC Ferries is in a solid financial position, and outlines intentions to invest more than $3.9 billion in upgrading the fleet and terminals, introducing alternative energy sources and investing in its fleet maintenance facility. Included in the plan $2.3 billion on vessels and $1.3 billion on its terminals, including a renovation of Swartz Bay and a complete overhaul of Horseshoe Bay. CEO Mark Collins will be presenting an update on its plans at the CILTNA lunch on Thursday, December 6th - for details visit: www.ciltna.org.
The Senate Committee on Fisheries and Oceans released its report on the Canadian Coast Guard titled, When Every Minute Counts: Maritime Search and Rescue. Canada’s maritime search and rescue workers save an average of 15 lives every day and are responsible for monitoring millions of square kilometres of some of the harshest marine conditions in the world. Yet the Canadian Coast Guard — which leads maritime search and rescue operations — is hampered by its position within Fisheries and Oceans Canada, which leaves it at the mercy of the department for funding and prevents it from receiving long-term sustainable capital funding. Senators recommend that the coast guard be made a separate statutory agency, reporting to the Minister of Transport.