December 18, 2008

CMC joins legal action against New York ballast regulations

The Chamber of Marine Commerce, along with a number of other industry stakeholders, are joining forces to take legal action against the state of New York's proposed new ballast water regulations.  The other parties joining in the lawsuit include American Great Lakes Ports Association, Canadian Shipowners Association, Federal Marine Terminals, Canfornav, Polska Zegluga Morska, Port of Oswego and Port of Albany Commission.

During the past few months, four Great Lakes states (New York, Wisconsin, Illinois, and Ohio) have issued new ballast water regulations, joining Michigan and Minnesota, both of whom already had ballast water regulations.  Generally, most regulatory activity being proposed by these states is relatively consistent with IMO standards for ballast water treatment, i.e. requiring ships to have ballast water treatment systems by 2016.

However, the new regulations proposed by the state of New York are not at all neither manageable nor consistent with international standards.  In fact, the regulations being proposed by New York are so unrealistic they would be impossible for many vessels - most particularly Canadian lakers - to comply with.  They also propose that vessels be able to sanitize ballast water one hundred times greater than International Maritime Organization (IMO) standards by 2012, and one thousand times greater than IMO standards by 2013, ... specifications requiring technology not yet even available.

CMC will continue to fight for fair process and a reasonable regulatory framework while we also continue to work with our members to adopt voluntary industry sustainability practices.

Latest information:
As of 12:00 pm EDT December 18, we are informed that the New York Department of Environmental Conservation (NYDEC) has revised the proposed regulations to provide for an exemption on the most immediate and troublesome condition (re: Condition 1 - laker ballast exchange requirements downstream of Montreal, 200 nautical miles offshore and 50 m water depth) which appears to address industry's most pressing short term concerns as the U.S. Environmental Protection Agency (EPA) prepares to issue vessel permitting later this week. 

CMC supports elimination of 25% vessel import duty

Algoma Central Corporation has advised the CMC that Algoma Tankers Limited, a wholly owned subsidiary, has filed an application with the Department of Finance requesting a remission order for the 25% import duty with respect to two new foreign-built oil product tankers that the company is importing into Canada.

CMC has written to the Department of Finance outlining a number of reasons why the Federal Government should take action to immediately eliminate the 25% duty on foreign-built vessels to be imported into Canada.  CMC members believe that this duty is punitive and creates an unfair economic playing field for Canada’s marine industry and needs to be removed for the health of the nation’s industrial and manufacturing sector and the economy at large.  CMC has extensively consulted its members on this issue and it is clear that members support the principle of eliminating the 25% import duty.

CMC advises Labour Minister of potential labour disruption at B.C. ports
 
The Chamber of Marine Commerce has written federal Labour Minister Rona Ambrose advising that a strike by ILWU Local 514, representing approximately five hundred ship and dock foremen, would seriously disrupt British Columbia ports and threaten the Pacific Gateway and the rest of the already recessed Canadian economy.  In a letter dated December 17th, CMC President Ray Johnston wrote, "Given the uncertain and challenging economic times by Canadian importers and exporters, this is certainly unwelcome news.  Any labour disruption would not only directly impact the West coast ports of Metro Vancouver and Prince Rupert, but given the importance of these ports in the trade corridor, this situation could seriously de-rail much of the Canadian economy, already fighting recession."

It is understood that the earliest strike date would be January 2, 2009.  In the meantime, the parties are currently under conciliation.  And while CMC remains cautiously optimistic that a negotiated settlement can be reached, the Chamber nonetheless fears that the existing threat of labour disruption is causing importers and exporters to have already begun contingency planning, forcing them to consider alternative shipping routes.
 
Concluding, CMC suggested to Minister Ambrose, "In the event that a strike does occur, the CMC believes it is imperative that the federal government be prepared to take action to ensure the ports of Metro Vancouver and Prince Rupert – the backbone of the Pacific gateway – remain fully operational and in service."

GLPA plans tariff increase for 2009

The Chamber of Marine Commerce has been advised that Great Lakes Pilotage Authority (GLPA) is planning to increase pilotage tariffs for 2009, perhaps by as much as 8% over 2008 levels.  The proposed increase, expected to be formally proposed over the coming weeks, is expected to include a 4% permanent increase in the rates together with a 4% increase in the current temporary surcharge, effectively increasing the 'temporary' surcharge from 2% to 6%.  The GLPA advises that they are planning to remove the temporary surcharge completely after next year.
 
While the CMC has already informally registered disapproval, should the GLPA proceed to propose such increases as expected, CMC will proceed to formalize its opposition on behalf members.

Canadian Government planning shipbuilding summit 

According to Defence Minister, Peter MacKay, (as reported by the Canadian Press, December 14/08,) the federal government plans to convene a shipbuilding summit involving the departments of National Defence, Industry Canada and Public Works and Government Services Canada which would take place early in the New Year.  But the plan hinges on the country's shipbuilders and trade unions setting aside their differences and sharing the billions of dollars worth of work, says Defence Minister Peter MacKay.

"There is enough work for the Canadian shipyards on both coasts and in Quebec to keep people employed, and to keep that sector of the economy going full-tilt," MacKay said in interview with The Canadian Press.  "I see this as being in keeping with economic stimulus and getting people to work. And there's enough work in these projects to get all of these shipyards humming again."
 
In response to whether the aim was to come up a continuous shipbuilding program, MacKay acknowledged, "It would be something like that."  Commenting further, he noted that the idea involved getting away from the industry's cyclical boom and bust cycle, and that even without a formal continuous build program the federal government can "roll out these projects in a way that is it staggered" and predictable, continued the minister.

The Conservatives have promised to build as many as eight Arctic offshore supply boats for the navy, replace the country's 12 patrol frigates, as well as modernize the fleet of medium and heavy icebreakers.

CMC Marine Club Luncheon - 50th Anniversary

As the Chamber of Marine Commerce celebrates it's 50th anniversary in 2009, all CMC members are invited to join us for the annual Marine Club Luncheon being held on Thursday, January 15, 2009 from 12:00 p.m. to 2:00 p.m.  at the Fairmont Royal York, Toronto, Ontario.  If you have not already done so, please RSVP to ljeannotte@cmc-ccm.com or 613-233-8779 (Ext 4)

 

About the Chamber of Marine Commerce

The Chamber of Marine Commerce (CMC) represents over 170 Canadian and U.S. companies -- shipowners and shipoperators, ports, industrial shippers, Seaway corporations, terminals, elevators and marine-related companies -- that rely on marine transportation to deliver products and materiel that serve people all over the world.  CMC's advocacy on marine and transportation issues extends to the Canadian and provincial governments and to U.S. federal and state governments and agencies.