Thursday, 10 April 2014 23:45

LA/LB merger proposal tabled

305 LALB

It had to happen eventually and now someone has had the courage to state the obvious – the ports of Los Angeles and Long Beach, which between them handled 42% of all U.S. container traffic in 2013, need to merge. Los Angeles 2020 Commission this week  recommended that the rival adjacent ports look to merge in order to reduce bureaucracy and increase business investment responsiveness. The commission comprises business, labor and civic leaders. The recommendation comes hot on the heels of news that Seattle and Tacoma are finally talking instead of slugging it out.

305 Kitimat1 305 Kitimat2

The good people of Kitimat vote tomorrow in a non-binding referendum on the Northern Gateway project to ship crude oil exports through Kitimat. The District Council voted in January to hold the referendum  whose question will be: Do you support the final report recommendations of the Joint Review Panel of the Canadian Environmental Assessment Authority and National Energy Board that the Enbridge Northern Gateway Project be approved subject to 209 conditions set out in volume 2 of the JRP’s final report?” Council is remaining neutral on the project and City Mayor Joanne Monaghan has rejected the complaints of local MP Nathan Cullen NDP who has criticized the efforts of Northern Gateway’s Kitimat office during the campaign.

305 KinderMorgan

and avoiding the previously proposed route through the Westridge neighbourhood. The new proposal would involve a  tunnel from the Burnaby Mountain tank farm to the Westridge Marine Terminal across the south west corner of the mountain, instead of going around, as originally planned in order to minimize impact in the area. Under National Energy Board rules, the company will be required to submit a plan that shows the exact pipeline route and location of the right-of-way. At that point, Kinder Morgan would be required to inform the public through newspaper ads and maps, and alert landowners whose property may be crossed and advise them how they can voice any concerns on the proposed route. The company is seeking feedback on the new routing options until April 17. More information can be found at

305 LNG

The Provincial Government has this week signed LNG revenue sharing agreements with the Lax Kw'alaams and Metlakatla  First Nations, for LNG export projects being development in the Grassy Point area, just north of Prince Rupert. Australia's Woodside, China National Offshore Oil Corp. and Japan's Inpex Corp. are the currently impacted project proponents.

Thursday, 10 April 2014 23:37

Search for MH370 continues

305 MH370

The search continues after several pings apparently from the black boxes of MH 370 were detected last weekend, first by a Chinese vessel and then in a different area by our “Ship of the Week” for April 4 – Ocean Shield. Aircraft black-box pingers, emit a sound signature on a standard frequency of 37.5 KHZ which is outside the range of human hearing. Ocean Shield picked up two sets of pulses consistent with black-box signals, hence the initial optimism that they were close to the estimated crash site. Yesterday, an Australian aircraft also detected pings in the same area but there is real concern that the black box battery life is nearing an end.

305 ballast

As the difficulties in achieving ratification of the Ballast Water Management Convention refuse to go away, a proposal by Norway to last week’s 66th session of the IMO’s “Marine Environment Protection Committee” (MEPC) has been accepted. In brief, a new study will be conducted into how well typeapproved BWMS currently installed on vessels are actually able to meet the performance standard described in regulation D-2 of the Convention which regulates concentrations of living organisms in ballast water discharges. Many owners and national administrations believe the existing (G8) type approval process is not robust enough but whether this fairly open ended study will alleviate concerns remains unclear.The attached press release issued on April 8 is co-sponsored by ICS, BIMCO, Intercargo, Intertanko, WSC, CLIA and IPTA is designed to summarize industry’s frustration with the current state of affairs on this issue. 

305 PolarCode

The IMO continues to make the International Code of safety for ships operating in polar waters (Polar Code) a priority issue with a target adoption date of May 2015. MEPC 66, last week acknowledged last week that there was still a lot of work to be done but if the 2015 adoption can be achieved, implementation will be in the fall of 2015 or early in 2017. 

Thursday, 10 April 2014 23:31

IMO gets serious on vessel noise reduction

305 IMO Noise

The IMO Code on Noise Levels Onboard Ships Is to become mandatory for new vessels starting July 1, 2014. The code details requirements for new ships to be constructed to limit noise levels and to reduce seafarers’ exposure to noise under an amendment to SOLAS.

  • The key responsibilities of vessels owners are:
  • To provide instruction in the hazard of noise exposure and the risk of hearing loss at initial employment and periodically thereafter
  • Provide warning signs at all entrances to spaces exceeding a noise level of 85 decibels (dBA), entry to such areas is to be controlled
  • Where hand tools, galley equipment or other portable equipment exceeds 85dBA in normal working conditions warning information needs to be provided
  • Provide effective hearing protection on an individual basis
  • Provide a Hearing Conservation Plan for seafarers exposed to high levels of noise and that no expense is incurred by the seafarer

The Marine Environment Protection Committee (MEPC) has also moved forward with approved guidelines for reducing underwater noise from commercial shipping protect marine life.


305 Australia

With some $200 billion of LNG projects under construction, Australia is suffering major budget over-runs due to labor costs. Examples quoted this week are welders making A$400,000 per year, cooks A$350,000 per year and laundry hands A$325,000. The Maritime Union of Australia is blaming the failure of LNG companies to better prepare for labor demand with training programs “to ensure that skilled workers were available at the right times”.

Also this week, BG GROUP announced that it will shift the company’s global marketing centre from London to Singapore and the country continues to develop itself into an Asian LNG trading hub. With Asia now the world’s largest market for LNG, this is clearly where the action is for the major players.

Thursday, 10 April 2014 23:27

Australia to scrap coastal cabotage?

305 Cabotage

The Australian government has initiated consultations that could see the country’s coastal cabotage rules scrapped . A document entitled “Approaches to Regulating Coastal Shipping in Australia” states that “cabotage regulations are damaging the Australian economy due to increased shipping costs and by restricting access to timely and flexible services through either high freight rates or the loss of freight to the road and rail sectors.” Australia is heavily dependent on shipping, with 99% of international trade volumes moved by ship, Australian ports already handle 10% of the world’s  trade by sea and volumes expected to double by 2030.

Thursday, 10 April 2014 23:23

Crew "rescued" from cruise ship

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In a bizarre incident last week, police in Salvador, Brazil, claim to have rescued 11 crew members working in "slave-like conditions" on the Itlalian cruise ship MSC Magnifica. Vessel owners MSC Crociere have rejected the allegations pointing out that the company is “in full compliance with national and international labour regulations and has not received any evidence or legal notification from the Brazilian labour ministry”.

Thursday, 10 April 2014 23:21

Tall ships races 2014

305 Tallships1  305 Tallships2

Tall Ships 2014 is once again expected to attract close to 100 Tall Ships from around the world.  Races will start with a grand port event in Harlingen, The Netherlands from where they will race to Fredrikstad, Norway. From Fredrikstad vessels and crew will take a leisurely “Cruise-in-Company” to Bergen where an estimated 500,000 visitors are expected to visit the vessels over four days.  The final leg is a race from Bergen to Esbjerg, Denmark, for a major maritime celebration. 

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