Logistec to provide stevedoring services for Port of Sydney, NS

Starting immediately, Logistec will provide marketing services on behalf of Port of Sydney and will provide all stevedoring services at its Joan Harriss Cruise Terminal. The terminal presently consists of a multi-purpose berth, which serves for both cruise and cargo vessels. A second berth will be constructed over the next twelve months, in time for the 2019 cruise season. “We’re excited to continue this partnership with Port of Sydney. Now we have the chance to find new supply chain opportunities for cargo via the beautiful region of Sydney, Nova Scotia”, said Rodney Corrigan, Executive Vice-President, Operations of Logistec Stevedoring Inc. “This agreement will benefit both the community and the local economy.”

U.S. Coast Guard proposes increase in pilotage costs

The U.S. Coast Guard issued proposed rates for Great Lakes pilotage services during the upcoming 2019 shipping season. The Coast Guard sets rates annually for U.S. pilots on the Great Lakes through a federal rule making process, which can be found here: (https://www.federalregister.gov/documents/2018/10/17/2018-22513/great-lakes-pilotage-rates-2019-annual-review-and-revisions-to-methodology) (more…)

Pessimism in the air as IMO pushes for reduced greenhouse gas emissions

By Alexander Whiteman

The momentum behind efforts to curtail shipping’s greenhouse gas (GHG) emissions appears to have come to a standstill, insiders have said as the International Maritime Organization (IMO) Maritime Environment Protection Committee (MEPC 73) met in London at the end of October. Environmental lobbyists had hoped that plans to reduce GHG emissions by 2023 would begin in earnest now. IMO secretary general Kitack Lim said MEPC had approved a programme of follow-up action to the initial strategy agreed in April. “The programme sets a clear signal on how to further progress the matter of reduction of GHG emissions from ships up to 2023,” said Mr. Lim. “I am convinced, in re-doubling your efforts and with support from working arrangements, you’ll be able to deliver and accelerate the pace of actions and tackle this immense, global challenge.” (more…)

Speed limits for box ships the best way to hit emissions target, IMO told

By Alexander Whiteman

Mandatory speed limits could be shipping lines’ best hope of achieving the IMO’s 2030 emissions reduction targets. Shipping officer for lobby group Transport & Environment, Faig Abbasov, told The Loadstar slow-steaming could “single-handedly” achieve the target. “We’re proposing mandatory limits, based on ship type,” said Mr. Abbasov, speaking on the sidelines of the Marine and Environment Protection Committee (MEPC 73) in London. “Furthermore, our slow-steaming initiative is based on an annual average rather than per individual journey, meaning priority shipments could travel at a faster rate.” (more…)

2020 sulphur fuel cap may spark a crisis for carriers that can’t recover the cost

By Sam Whelan, Asia correspondent

IMO’s 0.5 per cent sulphur fuel cap will cause an “existential crisis” for container carriers, unless they can pass on the added bunker costs to shippers. APL Chief Executive Nicolas Sartini said carriers had little choice but to opt for considerably more expensive low-sulphur fuel from January 2020, since the alternatives – using LNG or fitting ships with scrubbers – were not viable short-term solutions. “We are 100 per cent behind the regulation as it’s good for the environment,” he told delegates at the TPM Asia conference in Shenzhen in early October. “The problem is the new fuel cost is between $250 and $350 per tonne more expensive than the fuel we buy today.” (more…)

Hapag-Lloyd attempts to avoid a ‘messy’ IMO 2020, unveiling its ‘fairer’ MFR

By Mike Wackett

Hapag-Lloyd has rolled out its plans for recovering the extra cost of compliance with IMO’s 0.5 per cent sulphur cap for shipping, which comes into force in less than 15 months. It no doubt hopes its proposals will be better received by customers than those of its rivals – slammed by suspicious shippers as “lacking transparency” and  “blatant profiteering”. (more…)

Freight Management Association elects new Chair and Vice-Chair

Following the Freight Management Association of Canada (FMA) Annual General Meeting in Toronto on October 15, the Board of Directors elected Gary Fast, Vice-President Transportation Canadian Tire, as Chair of the Association and Kleo Landucci, Chief Commercial & Corporate Affairs Officer of Ashcroft Terminal Ltd. as Vice-Chair for 2018-2019. Mr. Fast and Ms. Landucci have been members of FMA’s Board of Directors for some time and bring extensive supply chain experience to the Association and its member companies. (more…)

China-U.S. trade war brings box carriers a bonus – but 2019 looks less promising

By Sam Whelan, Asia correspondent

The U.S.-China trade war has seemed “positive” for transpacific shipping lines, so far, with importers rushing to beat tariff deadlines. But there is growing concern that a prolonged dispute would leave shippers with question marks on whether to reorganize their supply chains. APL Chief Executive Nicolas Sartini believes the industry should still achieve trade growth this year of around 5 per cent. “So far it’s paradoxical, because the trade war has been rather positive for shipping companies,” he told delegates at the TPM Asia conference in Shenzhen. (more…)

Ports need to think outside the box to make their terminals more cost-effective

By Sam Whelan

Pressure is mounting on container ports to improve efficiency in terminal operations, as wholesale change in the shipping industry continues to increase competition and drive down revenue per box. According to Mark Welles, Navis Vice-President and General Manager, Asia Pacific, terminal operators are “aggressively attacking their cost base and figuring out ways to use some of their tools to do more with less”. This includes using automation to drive incremental changes that improve operational efficiency, whether waterside or at the terminal gate. “Terminals are making the small or large changes they need to keep their businesses moving ahead against the challenges from consolidation on the carrier side,” he told The Loadstar. (more…)

OOCL announces bunker recovery surcharge to cover IMO 2020 compliance

By Mike Wackett

OOCL plans to begin the switch to low-sulphur fuel for its fleet of around 100 container vessels during the second half of next year, in readiness for compliance with IMO 2020.

Unlike some of its peers, the carrier has made no reference to scrubber technology that would enable vessels to continue to burn cheaper heavy fuel oil (HFO) from 1 January 2020 when the 0.5 per cent sulphur cap becomes law. The Cosco subsidiary said it had estimated the extra cost of compliance with IMO 2020 for its vessels could be more than “half a billion dollars”. (more…)