Panalpina’s shareholders have rejected a $4 billion takeover bid by Danish forwarder DSV, despite the bid being considered “hopelessly overvalued”. The Ernst Goehner Foundation, Panalpina’s largest shareholder with 46 percent of the total share capital voiced that it does not support the current non-binding proposal from DSV and wants the company to pursue an independent growth strategy that includes its own mergers and acquisitions. Despite the lack of support from The Ernst Goehner Foundation, Panalpina has suggested that the DSV deal may still have some life.
NYK has conducted a trial use of biofuel in Europe on its 179,288 dwt dry bulk carrier Frontier Sky in collaboration with BHP and GoodFuels. The trial took place on January 30 after the biofuel was bunkered at the port of Rotterdam, Netherlands. The biofuel is considered to be carbon-neutral and have significantly lower emission of sulphur oxides compared to conventional fossil fuel. It was made from waste oils such as used cooking oil.
On Monday, January 28th a gantry crane at GCT’s Vanterm was struck while the Ever Summit was berthing alongside. The collision caused the boom of the crane to drape across the vessel, crushing several containers stacked at the ship’s stern. It has been confirmed that none of the affected containers contain hazardous cargo. No one was hurt in the incident. Two floating cranes are now in place to support recovery operations and vessel operations are expected to fully resume by Sunday. Operations outside of that terminal have remained unaffected.
The response and salvage plan by GCT has been remarkable to date and it is providing a degree of confidence for ocean carriers that the incident will be resolved and/or mitigated more quickly than would have been anticipated a few days ago. Since the incident only the vessel operations have ceased, while the truck gate and rail operations have remained unaffected.
Further to the announcement on January 14th, the Canadian Transportation Agency (CTA) commenced its investigation into possible freight rail services issues in the Vancouver area in December 2018 and January 2019 by holding oral hearings on January 29th & 30th. Participants provided oral submissions to a 3-person Panel, presided by CTA Chair and CEO Mr. Scott Streiner. Participants expressed concern that recent embargo and permitting systems discriminated against some commodities, congestion and delays of export cargo arriving at terminal was having an economic impact on shippers, and a lack of empty marine containers had delayed unloading of rail cars. The three railways appearing before panel, BNSF, CP Rail and CN Rail indicated that any operational measures undertaken during the time frame being investigated were to address a surge of volumes and did not constitute a service failure. The CTA has 90 days to complete the investigation.
On January 25th, the British Columbia Maritime Employers Association (BCMEA) and ILWU Canada Longshore have filed a joint notice of dispute with the Minister Labour, who will now appoint a conciliation officer to assist in the negotiations of the unresolved issues between the parties to the collective agreement. Meanwhile negotiations with ILWU Ship and Dock Foremen Local 514 will continue in early February. The BCMEA’s collective agreements with the ILWU Canada and Local 514 expired March 31, 2018.
The Lummi Nation is calling for moratorium on any additional potential stressors, including additional marine vessel traffic to the Salish Sea until an environmental impact study can be completed. Other Indigenous groups in Canada and the United States, like the Tsleil-Waututh Nation in BC and the Tulalip Tribes in Washington, are supporting the call for more investigation into the environmental impacts before any new container traffic is allowed. The proposed construction of a new container terminal at Roberts Bank is currently undergoing an impartial review by the Canadian Environmental Assessment Agency since November 2013.
This week NDP candidate Sheila Malcolmson won a significant by-election in Nanaimo and secured the coalition government in place between the NDP and Green Party. Also of note Premier Horgan made some changes to key Deputy Ministers in his Cabinet:
Mr. Louis E. Sola of Florida and Mr. Daniel B. Maffei of New York were sworn-in as Commissioners of the Federal Maritime Commission on January 23, 2019. Commissioner Sola served on the Florida Board of Pilots Commissioners and presided on the probable cause panel for maritime incidents and is also a licensed shipbroker. Commissioner Maffei has served two terms in the United States Congress representing portions of upstate New York. Both Commissioners were nominated be President Trump on November 15, 2018, confirmed by the United States Senate on January 2, 2019.
The International Chamber of Shipping has released a guide to help shipping companies prepare for implementation of the UN IMO global sulphur cap for ships’ fuel oil. The guide contains a comprehensive guidance on implementation planning, to help ensure compliance across the shipping industry with this significant change in regulation. The guide has been prepared for ships that will comply with the global sulphur cap immediately after 1 January 2020 using fuel oils with a sulphur content of 0.50% m/m or less. The guide can be accessed and downloaded here: http://www.ics-shipping.org/free-resources/2020-sulphur-compliance.
The first LNG fueled vessel in CMA CGM Group’s fleet was successfully bunkered with LNG last week at the Port of Rotterdam. In this first LNG fueling, Containership Nord received around 240 metric tons of LNG – an amount that can take her on a roundtrip from Rotterdam to St. Petersburg and back sailing through the Kiel canal twice. The vessel was delivered to CMA CGM subsidiary Containerships, by Wenchong Shipyard, Guangzhou, China, last month. It is the first of four LNG dual fueled containerships on order at the shipyard. The bunkering was carried out at lay bay berth in a ship-to-ship LNG bunkering operation from Shell’s bunker vessel, the Cardissa. In future, bunkering will be carried out at a normal operational berth simultaneously with loading and discharging operations.
Star Bulk Carriers, an Athens-based shipping company, intends to equip its entire fleet with exhaust gas cleaning systems before the January 1, 2020 global sulphur cap deadline. Star Bulk expects average cost per vessel to be below $2M USD. A month ago, Star Bulk successfully completed the first scrubber installation at sea.
Nigeria has ratified 40 conventions passed by the International Maritime Organization and International Labour Organisation covering Maritime Safety, Labour and Marine Environment. So far 19 of the conventions have been domesticated by way of regulation, adoption or incorporation under the Merchant Shipping Act of 2007. The Agency is currently working on ratifying an additional six IMO conventions before the end of 2019 to ensure that Nigeria as an IMO member state fulfills its treaty obligation.
As part their investigation into possible freight rail service issues in the Vancouver area, the Canadian Transportation Agency (CTA) will conduct on January 29th and 30th from 9:00 am at The Sutton Place Hotel (845 Burrard St). The hearing will be used to gather additional information and hear evidence from witnesses regarding freight rail service issues. Members of the public are welcome to attend as observers – seating will be limited. The Chamber has submitted a request to appear before the panel.
The Canadian Coast Guard has successfully cleared an ice jam that was stalling maritime traffic in the St. Lawrence River for several days. Located near Trois-Rivières (about 140 km northeast of Montreal), the ice jam left up to 16 ships stuck in various ports from Tuesday to Thursday of this week. Coast guard escorted two large ships to the jam, using their size to dislodge the blockage. They remain concerned another ice jam could form.
Seaspan Shipyards has awarded INDAL Technologies Inc. a contract valued at almost $20M for work on Canada’s new Joint Support Ships. INDAL is providing its Aircraft Ship Integrated Securing & Traversing System for JSS. The System is an integrated helicopter handling system for surface combatants which provides the functionality necessary to support helicopter handling, including deck securing on touchdown, on-deck manoeuvring and traversing to/from the hangar space, and helicopter launch. INDAL will also be supplying all the installation support and training, as well as the required maintenance and logistics documentation.
ACS Group, through its affiliate Dragados, has won a bid for the design and construction of $400 million container terminal extension at Centerm, operated by DP Word. This will be the group's first large-scale port project in North America. Dragados is one of the world’s biggest specialists in delivering complex offshore projects provided its broad experience from over 75 years, from executing new ports in deep-open waters to developing large container terminals. The expansion will increase capacity from the current 900.000 TEUs to 1.5 million TEUs annually. The project is expected to be completed in December 2021.