Friday, 21 March 2014 08:33

MOL gets aggressive on LNG tonnage

302 MOL

Mitsui OSK has announced that it plans to spend nearly $8.5bn on 60 LNG carriers over the next six years in order to capitalize on the forecast increase in supply from new projects in North America, East Africa and Australia into Asia. With the U.S. decision to grant approval to a number of LNG projects to export to countries without free trade agreements with the US, Tokyo Gas, Osaka Gas, Chubu Electric and Kansai Electric Power have contracted with project developers for  long-term requirements. The planned investment includes 20 ships already on MOL’s  order book, which will be delivered in 2014-2016. Of these, 10 vessels have been fixed via MOL’s joint ventures with Chinese state-owned firms.

Closer to home, it was disclosed this week that Sinopec is seeking to make a 15% investment in Prince Rupert’s Pacific Northwest LNG which is led by Malaysia’s Petronaas Group.

Friday, 21 March 2014 08:31

The world's largest propellor

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The world’s largest-diameter propeller was loaded by floating crane onto the container vessel Hyundai Together at the Port of Hamburg last weekend. The five-bladed propeller measuring 10.3 m in diameter and weighing in at 113 tons was manufactured by Mecklenburger Metallguss GmbH in Waren, Germany and is destined for a so far undisclosed 18,000 TEU vessel under construction in South Korea.

Friday, 21 March 2014 08:25

The world has gone bananas

302 bananas

Two of the world’s leading banana companies are to merge their operations. Chiquita Brands International and Fyffes announced the $1.1bn merger this week to create the world’s largest banana company ChiquitaFyffes with sales of 160m boxes of bananas per year. By comparson, Del Monte sells around 117 million boxes and Dole 110m boxes. Fyffes/Geest Line operates eight conventional reefer ships and Chiquita’s Great White Fleet operates ten conventional ships in addition to five cellular container vessels.

Canada Border Services Agency has issued Memorandum D12-4-1 which oultines pre-arrival reporting requirements for cargo and conveyance data in the rail mode.  

Sunday, 16 March 2014 11:31

HS Codes for Export Declarations

Canada Border Services has issued Customs Notice 14-005 to remind exporters to correctly report the Harmonized System (HS) Code when completing their export declarations as required under the Reporting of Exported Goods Regulations.

Friday, 14 March 2014 09:47

TSB Modernizes Safety Regulations

The Transportation Safety Board of Canada (TSB) has announced that the amendments to the Transportation Safety Board Regulations, published in the Canada Gazette, Part II, are now in force.  The amended Regulations are intended to update the reporting and investigation of occurrences in Canada's transportation sector.  There are two parts to the amendment, Part 2 came into effect on March 12, 2014 and Part 1 will take effect only on July 1, 2014. 

For the marine industry the Part 2 addresses witness interviews and provides for a representative to accompay them during an interview.  Part 1 updates and introduces new definitions under the TSB Regulations and adds requirements to the reporting of a marine occurrence.

Who is required to report a marine occurrence?
When the operator of the ship—whether they are the owner, the master, the ship's pilot, a crew member or the harbour master—has direct knowledge of an occurrence, they are required to report it to the TSB.

When do you report an occurrence?
In addition to the current requirements, you must now report an occurrence when:

  • A ship makes unforeseen contact with the bottom without going aground.
  • A ship is anchored, grounded or beached to avoid an occurrence.
  • A ship sustains a total failure of the main or auxiliary machinery.
  • A ship sustains a total failure of the navigational equipment or the propulsion, steering or deck machinery if the failure threatens the safety of any person, property or the environment.

Friday, 14 March 2014 08:52

CBSA Metro Vancouver Office Relocation

cbsa logo

After 20 years, Canada Border Services Agency will leave their 333 Dunsmuir Street address and move to a new location on April 7, 2014.  The new location details are as follows:

Canada Border Services Agency
412-4th Floor, 1611 Main Street
Vancouver, BC  V6A 2W5

Hours of operation (Monday to Friday) 08:00 - 16:00

Due to the relocation, longroom services will be unavailable at the downtown location from April 3 to April 6.  If services are required the CBA office at United Terminals at 7867 Express Street, Burnaby and Air Cargo at 5000 Miller Road, Richmond will be available.

For any questions regarding bonded stores and crew issue contact (604) 666-9865 or (604) 666-5310.  For after hours and statutory holiday services call VMOCC (604) 713-9840.

301 Trucking

Following two weeks of highly damaging disruption to container drayage services, last evening (March 13) The Honourable Lisa Raitt, Minister of Transport, the Honourable Todd Stone, British Columbia Minister of Transportation and Infrastructure, and Robin Silvester, President & CEO of Port Metro Vancouver, announced a 14-point plan designed to end the dispute involving both the non-unionized United Truckers Association (UTA) and the unionized UNIFOR registered drivers.

See the News Release here on-line.

See the 14-Point Joint Action Plan here on-line.

See the Information for trucking companies and truckers on the Proposed new Truck Licensing System and other improvements here online.

Thursday, 13 March 2014 23:14

HMCS Protecteur arrives in Pearl Harbour

301 HMCSProtecteur

HMCS Protecteur was towed into Pearl Harbour by a U.S. navy tug on Thursday last week following her serious engine room fire. It is still not clear what the next steps may be given the advanced age of the vessel and the fact that she was to be retired in 2015. By all accounts the incident could well have turned out to be much more serious than it was.

301 RoyalRoads

           USS Ronald Reagan at Royal Roads

As mentioned in a member bulletin earlier this week, in a bid to alleviate continuing pressure on anchorages we have secured an agreement to open up Royal Roads anchorages off Esquimalt to commercial use without payment of local harbor dues. Details:

Anchorages B, E and F have a radius of 2 cables and could hold 3 x 200m  vessels.

Anchorages A, C and D are 2.5 cables and could hold 3 x panama vessels or possibly 2 capesizes.

The depths at each of the anchorages are:

A             29m
B             39m
C             32m
D             33m
E              19m
F              21m 


Thursday, 13 March 2014 23:09

Business of Shipping - April 24th

301 BoS

There are a limited number of places remaining for the first Business of Shipping full day course for 2014 which will be a brand new course with a great set of presenters on April 24. Please visit our events page for more information.

301 US LNG

                     Sabine Pass LNG, Louisiana

Protectionism is alive and well as politicians in Congress, aided and abetted by the staff of Department of Transportation’s Maritime Administration (MARAD) seek to require U.S. LNG exports be carried in U.S. built manned and flagged (read Jones Act) be exported in exports of liquefied natural gas to use U.S.-made and -crewed ships. U.S. shipyards  last built an LNG carrier in 1980 and even assuming the transfer of construction technology, a new standard sized LNG carrier built in South Korea will set an owner back around $200 million with a similar U.S. built vessel estimated to cost 4-5 times as much.

Driving the proposal is the harsh reality that U.S. flag fleet has declined from around 1000 ships to an estimated 180 ships over the last 50 years. Many of these are well past their “sell by date” and only survive on the back of cargo preference policies. In terms of LNG pricing, Japan is paying around $17 per million British thermal units (BTU)of LNG compared to a sale price of around $5 on the U.S. Gulf Coast, according to most recent data with U.S. export capacity estimated to be around 62 million tons/year by 2020.

Here in BC, depending on who you talk to there are around a dozen project proposals to export LNG plus at least three other projects planned in two other provinces. The National Energy Board (NEB), has so far approved seven of BC’s LNG project export permits namely:

  • Kitimat LNG, proposed by Apache Corp. and Chevron
  • LNG Canada, proposed by Shell and co-venture partners.
  • Prince Rupert LNG Exports Ltd., proposed by the BG Group.
  • Pacific NorthWest LNG Ltd., proposed by Petronas/Progress Energy.
  • WCC LNG Ltd., representing Imperial Oil and ExxonMobil Canada.
  • Woodfibre LNG Export Pte. Ltd., proposed by Woodfibre Natural Gas.
  • The Douglas Channel Energy project

The following export applications are under NEB review:

  • An export application by Aurora LNG, a joint venture by Nexen Energy, a subsidiary of China
  • National Offshore Oil Corp. and Japan's Inpex Corp. and JGC Corp.
  • An export application by the Triton LNG Limited Partnership, a 50-50 joint-venture between Canada's AltaGas Ltd. and Japan's Idemitsu Corp.
  • A request has also been received to export by local company Kitsault Energy; and now Canada Stewart Energy has also joined the Canadian list

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