From IFW-Logistics
20 December 2011
The US Department of Transportation (DoT) has announced $62 million in port-related grants as part of the third round of funding in its TIGER (Transportation Investment Generating Economic Recovery) programme.
Four of the 46 awards go directly to US port-related infrastructure, comprising around 12% of the total $511 million available for capital grants.
South Jersey Port received $18.5 million to repair the DelAir Bridge (pictured), which links the rail networks of Pennsylvania and New Jersey and enhances freight movement throughout the north-east.
Port of Long Beach got $17 million to improve tracks to two rail yards and relieve a rail chokepoint, improving efficiency, reducing the environmental impact of freight movements and enabling the port to move 35% of goods by on-dock rail by 2035.
Port of Jacksonville received $10 million for the Dames Point Intermodal Container Facility that will be used by CSX railroad.
In addition, Port of New Orleans received US$16 million, as previously reported in IFW.
A number of TIGER-funded projects also address key congestion points along main rail lines, inland port facilities and highway trade corridors, making a positive impact on freight mobility and the movement of goods to and from US seaports.
TIGER grants are awarded to transport projects that contribute to the long-term economic competitiveness of the US, improve existing transport facilities and systems, increase energy efficiency and reduce greenhouse gas emissions and improve safety.
In the first round of TIGER grant awards, port-related infrastructure projects received 8% of the original $1.5 billion. In the second round of grants, port-related infrastructure received 17%.
Showing posts with label Commerce. Show all posts
Showing posts with label Commerce. Show all posts
Tuesday, December 20, 2011
Saturday, December 17, 2011
New LNG fuelled tanker first for inland waterways
From Marine Log
15 December 2011
The inland waterways of the Netherlands are now home to the 6,100 dwt Argonon, the world's first new LNG-fuelled tanker, following its delivery by the Dutch Shipyard Trico B.V.
Built to Lloyd's Register class, MT Argonon represents a significant milestone for the Deen Shipping subsidiary, Argonon Shipping B.V., in its pursuit of cleaner transport solutions for Europe. Lloyd’s Register helped the owners and regulators to identify their risks, meet regulatory requirements and overcome the technical challenges for the precedent-setting tanker.
"This has been a great project and it is a significant first," said Piet Mast, Lloyd’s Register's Marine Business Manager for Western Europe. "The nature of inland waterways traffic, which passes through or close to major population centers, makes LNG an attractive way to reduce harmful local emissions. We had to look carefully at the risks and worked closely with the owner and the regulators to ensure that they understood, and were comfortable with, the technical solutions that were developed."
The dual-fuel system is designed to burn an 80/20 mixture of natural gas and diesel, reducing SOx, NOx and particulate-matter emissions, as well as reducing the greenhouse gas emissions from tank to flue. The LNG is stored in a transport tank located on deck, supplied by Cryonorm Projects, based near Amsterdam.
"The inland shipping industry, as far as we know, is the safest and cleanest mode of transport. But, to keep this lead, we have to take a big step forward in environmental performance," said shipowner Gerard Deen. "I think that the dual-fuel principle is a way to reduce the emissions in our sector. Lloyd’s Register was very pragmatic in their approach to finding solutions to convert seagoing regulations into inland shipping rules regarding dual fuel."
Along with Lloyd’s Register, the Netherlands Shipping Inspectorate approved the vessel’s LNG system for operation in the Netherlands and the ship has taken on its first load of LNG bunker fuel. The next step is to secure the regulatory approvals from the Central Commission for Navigating on the Rhine and the UN-ECE ADN Safety Committee, to open the way for navigation beyond the Netherlands.
"The owners are to be congratulated for being pioneers," said Mast. "At Lloyd’s Register, we have been involved with LNG for a long time, so were able to provide support through the plan-approval and construction processes. We now look forward to supporting the ship through many years of ‘clean’ trading."
Argonon has entered service and will start operating with gas this week following some final, main-engine tests. Propulsion power for the 110-meter-long tanker is supplied by two, dual-fuel Caterpillar DF3512 engines, each providing 1,115 KW.
The ship has the capacity to transit from Rotterdam to Basel and back without bunkering.
"We are currently providing technical and regulatory guidance for 20 confirmed or proposed inland waterway applications that intend to use LNG as fuel," says Bas Joormann, West European Area Inland Waterway Product Manager for Lloyd’s Register. "There is a lot of interest, and for good reason. Inland waterways, like ferries in emission-control areas, are very suitable for LNG. But the regulatory regime is different. We're helping owners and governmental bodies to identify the risks and manage them to at least the level of safety provided by the existing fuel-management and combustion requirements."
15 December 2011
The inland waterways of the Netherlands are now home to the 6,100 dwt Argonon, the world's first new LNG-fuelled tanker, following its delivery by the Dutch Shipyard Trico B.V.
Built to Lloyd's Register class, MT Argonon represents a significant milestone for the Deen Shipping subsidiary, Argonon Shipping B.V., in its pursuit of cleaner transport solutions for Europe. Lloyd’s Register helped the owners and regulators to identify their risks, meet regulatory requirements and overcome the technical challenges for the precedent-setting tanker.
"This has been a great project and it is a significant first," said Piet Mast, Lloyd’s Register's Marine Business Manager for Western Europe. "The nature of inland waterways traffic, which passes through or close to major population centers, makes LNG an attractive way to reduce harmful local emissions. We had to look carefully at the risks and worked closely with the owner and the regulators to ensure that they understood, and were comfortable with, the technical solutions that were developed."
The dual-fuel system is designed to burn an 80/20 mixture of natural gas and diesel, reducing SOx, NOx and particulate-matter emissions, as well as reducing the greenhouse gas emissions from tank to flue. The LNG is stored in a transport tank located on deck, supplied by Cryonorm Projects, based near Amsterdam.
"The inland shipping industry, as far as we know, is the safest and cleanest mode of transport. But, to keep this lead, we have to take a big step forward in environmental performance," said shipowner Gerard Deen. "I think that the dual-fuel principle is a way to reduce the emissions in our sector. Lloyd’s Register was very pragmatic in their approach to finding solutions to convert seagoing regulations into inland shipping rules regarding dual fuel."
Along with Lloyd’s Register, the Netherlands Shipping Inspectorate approved the vessel’s LNG system for operation in the Netherlands and the ship has taken on its first load of LNG bunker fuel. The next step is to secure the regulatory approvals from the Central Commission for Navigating on the Rhine and the UN-ECE ADN Safety Committee, to open the way for navigation beyond the Netherlands.
"The owners are to be congratulated for being pioneers," said Mast. "At Lloyd’s Register, we have been involved with LNG for a long time, so were able to provide support through the plan-approval and construction processes. We now look forward to supporting the ship through many years of ‘clean’ trading."
Argonon has entered service and will start operating with gas this week following some final, main-engine tests. Propulsion power for the 110-meter-long tanker is supplied by two, dual-fuel Caterpillar DF3512 engines, each providing 1,115 KW.
The ship has the capacity to transit from Rotterdam to Basel and back without bunkering.
"We are currently providing technical and regulatory guidance for 20 confirmed or proposed inland waterway applications that intend to use LNG as fuel," says Bas Joormann, West European Area Inland Waterway Product Manager for Lloyd’s Register. "There is a lot of interest, and for good reason. Inland waterways, like ferries in emission-control areas, are very suitable for LNG. But the regulatory regime is different. We're helping owners and governmental bodies to identify the risks and manage them to at least the level of safety provided by the existing fuel-management and combustion requirements."
Political Shenanigans
My posts are
generally related specifically to the Marine Industry, so this is a modest
one-time departure from that theme. Today, the congress passed a two month
extension of the payroll tax cut, in addition to funding the government for the
remainder of the governments fiscal year. There is an incredible amount of
political grandstanding happening at the expense of the American people.
I am currently
unemployed, trying to survive on the income generated by this blog (which isn't
easy.) I have been denied unemployment; I am a Veteran; and I have been
dedicating 40 to 50 hours per week looking for a new career. No less than 9
times, I have been told by prospective employers that they were waiting to see
what the tax implications are before taking on any new employees.
So, to the American
Congress, I would like to give a big (and yes, very sarcastic) "Thank
You!"
Perhaps the most
stomach turning rhetoric I'm hearing is the push to create more jobs for the
Veterans coming home from Iraq. Meanwhile, the Keystone Pipeline remains on
hold; the payroll tax cut is temporarily extended for two moths; major shipping
ports are in need of significant improvements; Inland waterways are in need of
improvement; Schools are still a mess; and there is still no dramatic economic
rebound from the 800 billion dollars in
"shovel-ready" projects that were supposed to save us all.
Businesses like
stability, and our Congress is not providing that. Two months? Again, my
sarcastic thank you. Thank you for giving business 2/3 of one fiscal quarter in
stability and predictability.
So, what will I do?
Well, I will continue looking for work. Hopefully, the new year will yield more positive results.
Record Breaking Volumes for Port of Los Angeles
Fron IFW Freight and Logistics News Service
16 December 2011
The US port of Los Angeles has reported a record year for exports, buoyed by an all-time monthly high for goods shipped overseas in November, the second consecutive month of record export volumes.
LA exported 1.9 million containers in the first nine months of 2011, breaking the previous record of 1.8 million in full-year 2010.
And imports were 6.2% higher in November than in 2010.
The largest US container port said it was on course to export more than 2 million teu this year.
Exports reached the highest monthly volume in the port’s history last month, handling 195,877teu, 15% up on the previous November. And in October, the port handled 193,547teu, up 28% on October 2010.
Goods exported include raw materials, cotton and grains, as well as high-value goods, including computers, medical equipment and aerospace components.
The rise in export volumes from LA has been buoyed by the weak US dollar boosting demand for US goods, particularly in Asia. The stagnant domestic economy also has forced the country to find new income in foreign markets.
Last year, President Obama outlined a National Export Initiative, aiming to double exports through the nation’s seaports by the end of 2014 to boost the ailing domestic jobs market.
The US will focus on India, China, Brazil and other emerging markets with strong potential for growth.
16 December 2011
The US port of Los Angeles has reported a record year for exports, buoyed by an all-time monthly high for goods shipped overseas in November, the second consecutive month of record export volumes.
LA exported 1.9 million containers in the first nine months of 2011, breaking the previous record of 1.8 million in full-year 2010.
And imports were 6.2% higher in November than in 2010.
The largest US container port said it was on course to export more than 2 million teu this year.
Exports reached the highest monthly volume in the port’s history last month, handling 195,877teu, 15% up on the previous November. And in October, the port handled 193,547teu, up 28% on October 2010.
Goods exported include raw materials, cotton and grains, as well as high-value goods, including computers, medical equipment and aerospace components.
The rise in export volumes from LA has been buoyed by the weak US dollar boosting demand for US goods, particularly in Asia. The stagnant domestic economy also has forced the country to find new income in foreign markets.
Last year, President Obama outlined a National Export Initiative, aiming to double exports through the nation’s seaports by the end of 2014 to boost the ailing domestic jobs market.
The US will focus on India, China, Brazil and other emerging markets with strong potential for growth.
Friday, December 9, 2011
Like the Railroads, but better.
| From Professional Mariner | ||||
| 08 December 2011 | ||||
 | ||||
|
(NASHVILLE,
Tenn.) -- America's barge industry is entering the spotlight in an effort to win
more federal dollars, National Public Radio reported. Waterborne infrastructure
needs an estimated $8 billion worth of work. The industry said barge
transportation is "like railroads but better." One critic argues that private
business should pay for the improvements.
For the original NPR broadcast click here.
|
Tuesday, December 6, 2011
Navy Purchases Nearly Half Million Gallons of Biofuel
WASHINGTON, Dec 5, 2011 (GlobeNewswire via COMTEX) -- Dynamic Fuels, LLC, a
joint venture between Tyson Foods, Inc. and
Syntroleum Corporation, has
been awarded a contract to supply the U.S. Navy with 450,000 gallons of
renewable fuels. Solazyme, Inc., a
renewable oil and bioproducts company, will help Dynamic Fuels fulfill the
contract, which the Navy and the USDA report is the single largest purchase of
biofuel in government history.
The contract involves supplying the Navy with 100,000 gallons of jet fuel (Hydro-treated Renewable JP- 5 or HRJ-5) and 350,000 gallons of marine distillate fuel (Hydro-Treated Renewable F-76 or HRD-76). The fuel will be used as part of the Navy's efforts to develop a "Green Strike Group" composed of vessels and ships powered by biofuel.
The Navy contract follows on the heels of both companies' involvement in historic commercial airline flights using biofuel. This includes Dynamic Fuels' renewable jet fuel work with KLM Royal Dutch Airlines, Finnair, Thomson Airways and Alaska Airlines, and Solazyme's recent flight and partnership with United Airlines, which includes a letter of intent to provide 20 million gallons a year starting in 2014.
The fuel for the Navy will be manufactured at Dynamic Fuel's Geismar, Louisiana, renewable fuels plant using U.S.-sourced yellow grease (used cooking oil) as well as Solazyme's tailored algal oil as feedstocks. The fuel will be delivered to the U.S. Navy in May 2012. The Dynamic Fuels plant, which has been in operation for more than a year, is designed to convert non-food feedstocks such as algal oil, animal fats, and greases into renewable fuels.
"This award clearly demonstrates that we're building momentum for the sale and use of our renewable fuels," said Jeff Bigger, director of the Dynamic Fuels LLC Management Committee. "We've previously provided the U.S. military with fuel for testing. We believe this contract confirms they recognize the performance and environmental advantages of our fuel since they're coming back for more and are asking for a much larger volume."
"This is an historic contract and we are proud to be teaming up with Dynamic Fuels to produce and deliver the advanced biofuel to the U.S. Navy to sail the Great Green Fleet. Dynamic Fuels has been a leader in next generation advanced biofuels technology and this partnership further solidifies the progress that both of our companies are making in bringing advanced renewable fuels to commercialization," said Jonathan Wolfson, CEO, Solazyme. "Solazyme is honored to be working with the U.S. Navy and DLA-Energy in driving forward the Navy's effort under Secretary Ray Mabus to source 50 percent of its energy from renewable sources by 2020."
To see video of operations at Dynamic Fuels, click on the following link:
http://www.youtube.com/watch?v=zsI1dov9Xbw
Photos of the facility can be seen by clicking:
http://www.flickr.com/photos/tysonfoods/sets/72157625319377772/ .
About Tyson Foods
Tyson Foods, Inc., founded in 1935 with headquarters in Springdale, Arkansas, is one of the world's largest processors and marketers of chicken, beef and pork, the second-largest food production company in the Fortune 500 and a member of the S&P 500. The company produces a wide variety of protein-based and prepared food products and is the recognized market leader in the retail and foodservice markets it serves. Tyson provides products and services to customers throughout the United States and more than 130 countries. The company has approximately 115,000 Team Members employed at more than 400 facilities and offices in the United States and around the world. Through its Core Values, Code of Conduct and Team Member Bill of Rights, Tyson strives to operate with integrity and trust and is committed to creating value for its shareholders, customers and Team Members. The company also strives to be faith-friendly, provide a safe work environment and serve as stewards of the animals, land and environment entrusted to it.
The Tyson Foods, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3224
About Syntroleum
Syntroleum Corporation owns the Syntroleum(R) Process for Fischer-Tropsch (FT) conversion of synthesis gas derived from biomass, coal, natural gas and other carbon-based feedstocks into liquid hydrocarbons, the Synfining(R) Process for upgrading FT liquid hydrocarbons into middle distillate products such as synthetic diesel and jet fuels, and the Bio-Synfining(R) technology for converting animal fat and vegetable oil feedstocks into middle distillate products such as renewable diesel and jet fuel using inedible fats and greases as feedstock. The 50/50 venture -- known as Dynamic Fuels -- was formed to construct and operate multiple renewable synthetic fuels facilities, with production on the first site beginning in 2010. The Company plans to use its portfolio of technologies to develop and participate in synthetic and renewable fuel projects. For additional information, visit the Company's web site at www.syntroleum.com
About Solazyme, Inc.
Solazyme, Inc. is a renewable oil and bioproducts company that transforms a range of low-cost plant-based sugars into high-value tailored oils. Headquartered in South San Francisco, Solazyme's renewable products can replace or enhance oils derived from the world's three existing sources -- petroleum, plants and animal fats. Initially, Solazyme is focused on commercializing its products into three target markets: (1) fuels and chemicals, (2) nutrition and (3) skin and personal care. Solazyme's oils and fuels provide compelling solutions to increasingly complex issues of fuel scarcity, energy security and environmental impact while fitting into the pre-existing multi-trillion dollar fuel infrastructure. For more information, please visit our website: http://www.solazyme.com
Solazyme(R), the Solazyme logo and other trademarks or service names are the trademarks of Solazyme, Inc.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Solazyme, including statements that involve risks and uncertainties concerning: the future manufacture and delivery of jet fuel by Solazyme and the timing of such delivery; the potential purchase of fuel by United Airlines; the timing of the delivery of fuel to the U.S. Navy and what that fuel will be used for; and Solazyme's future commercialization plans. When used in this press release, the words "will," "expects," "intends" and other similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such statement may be influenced by a variety of factors, many of which are beyond the control of Solazyme, that could cause actual outcomes and results to be materially different from those projected, described, expressed or implied in this press release due to a number of risks and uncertainties. Potential risks and uncertainties include, among others: the ability of Solazyme and/or Dynamic Fuels to produce in-spec jet fuel at a commercially acceptable price; Solazyme's ability to access sufficient manufacturing capacity; and Solazyme's ability to maintain existing, and establish new, strategic business relationships. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of Solazyme.
In addition, please refer to the documents that Solazyme, Inc. files with the Securities and Exchange Commission, including its Quarterly Reports on Form 10-Q, for a discussion of these and other risks. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. Solazyme is not under any duty to update any of the information in this press release.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Dynamic Fuels
The contract involves supplying the Navy with 100,000 gallons of jet fuel (Hydro-treated Renewable JP- 5 or HRJ-5) and 350,000 gallons of marine distillate fuel (Hydro-Treated Renewable F-76 or HRD-76). The fuel will be used as part of the Navy's efforts to develop a "Green Strike Group" composed of vessels and ships powered by biofuel.
The Navy contract follows on the heels of both companies' involvement in historic commercial airline flights using biofuel. This includes Dynamic Fuels' renewable jet fuel work with KLM Royal Dutch Airlines, Finnair, Thomson Airways and Alaska Airlines, and Solazyme's recent flight and partnership with United Airlines, which includes a letter of intent to provide 20 million gallons a year starting in 2014.
The fuel for the Navy will be manufactured at Dynamic Fuel's Geismar, Louisiana, renewable fuels plant using U.S.-sourced yellow grease (used cooking oil) as well as Solazyme's tailored algal oil as feedstocks. The fuel will be delivered to the U.S. Navy in May 2012. The Dynamic Fuels plant, which has been in operation for more than a year, is designed to convert non-food feedstocks such as algal oil, animal fats, and greases into renewable fuels.
"This award clearly demonstrates that we're building momentum for the sale and use of our renewable fuels," said Jeff Bigger, director of the Dynamic Fuels LLC Management Committee. "We've previously provided the U.S. military with fuel for testing. We believe this contract confirms they recognize the performance and environmental advantages of our fuel since they're coming back for more and are asking for a much larger volume."
"This is an historic contract and we are proud to be teaming up with Dynamic Fuels to produce and deliver the advanced biofuel to the U.S. Navy to sail the Great Green Fleet. Dynamic Fuels has been a leader in next generation advanced biofuels technology and this partnership further solidifies the progress that both of our companies are making in bringing advanced renewable fuels to commercialization," said Jonathan Wolfson, CEO, Solazyme. "Solazyme is honored to be working with the U.S. Navy and DLA-Energy in driving forward the Navy's effort under Secretary Ray Mabus to source 50 percent of its energy from renewable sources by 2020."
To see video of operations at Dynamic Fuels, click on the following link:
http://www.youtube.com/watch?v=zsI1dov9Xbw
Photos of the facility can be seen by clicking:
http://www.flickr.com/photos/tysonfoods/sets/72157625319377772/ .
About Tyson Foods
Tyson Foods, Inc., founded in 1935 with headquarters in Springdale, Arkansas, is one of the world's largest processors and marketers of chicken, beef and pork, the second-largest food production company in the Fortune 500 and a member of the S&P 500. The company produces a wide variety of protein-based and prepared food products and is the recognized market leader in the retail and foodservice markets it serves. Tyson provides products and services to customers throughout the United States and more than 130 countries. The company has approximately 115,000 Team Members employed at more than 400 facilities and offices in the United States and around the world. Through its Core Values, Code of Conduct and Team Member Bill of Rights, Tyson strives to operate with integrity and trust and is committed to creating value for its shareholders, customers and Team Members. The company also strives to be faith-friendly, provide a safe work environment and serve as stewards of the animals, land and environment entrusted to it.
The Tyson Foods, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3224
About Syntroleum
Syntroleum Corporation owns the Syntroleum(R) Process for Fischer-Tropsch (FT) conversion of synthesis gas derived from biomass, coal, natural gas and other carbon-based feedstocks into liquid hydrocarbons, the Synfining(R) Process for upgrading FT liquid hydrocarbons into middle distillate products such as synthetic diesel and jet fuels, and the Bio-Synfining(R) technology for converting animal fat and vegetable oil feedstocks into middle distillate products such as renewable diesel and jet fuel using inedible fats and greases as feedstock. The 50/50 venture -- known as Dynamic Fuels -- was formed to construct and operate multiple renewable synthetic fuels facilities, with production on the first site beginning in 2010. The Company plans to use its portfolio of technologies to develop and participate in synthetic and renewable fuel projects. For additional information, visit the Company's web site at www.syntroleum.com
About Solazyme, Inc.
Solazyme, Inc. is a renewable oil and bioproducts company that transforms a range of low-cost plant-based sugars into high-value tailored oils. Headquartered in South San Francisco, Solazyme's renewable products can replace or enhance oils derived from the world's three existing sources -- petroleum, plants and animal fats. Initially, Solazyme is focused on commercializing its products into three target markets: (1) fuels and chemicals, (2) nutrition and (3) skin and personal care. Solazyme's oils and fuels provide compelling solutions to increasingly complex issues of fuel scarcity, energy security and environmental impact while fitting into the pre-existing multi-trillion dollar fuel infrastructure. For more information, please visit our website: http://www.solazyme.com
Solazyme(R), the Solazyme logo and other trademarks or service names are the trademarks of Solazyme, Inc.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Solazyme, including statements that involve risks and uncertainties concerning: the future manufacture and delivery of jet fuel by Solazyme and the timing of such delivery; the potential purchase of fuel by United Airlines; the timing of the delivery of fuel to the U.S. Navy and what that fuel will be used for; and Solazyme's future commercialization plans. When used in this press release, the words "will," "expects," "intends" and other similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such statement may be influenced by a variety of factors, many of which are beyond the control of Solazyme, that could cause actual outcomes and results to be materially different from those projected, described, expressed or implied in this press release due to a number of risks and uncertainties. Potential risks and uncertainties include, among others: the ability of Solazyme and/or Dynamic Fuels to produce in-spec jet fuel at a commercially acceptable price; Solazyme's ability to access sufficient manufacturing capacity; and Solazyme's ability to maintain existing, and establish new, strategic business relationships. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of Solazyme.
In addition, please refer to the documents that Solazyme, Inc. files with the Securities and Exchange Commission, including its Quarterly Reports on Form 10-Q, for a discussion of these and other risks. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. Solazyme is not under any duty to update any of the information in this press release.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Dynamic Fuels
Saturday, November 26, 2011
How Consumers and Communities Can Benefit From 'Buying Local'
From US News and World Report:
Comparison shopping between independent stores and chains is about overall value, not just price
October 28, 2011
Certainly, there are other retail realities. The existence of any
business, chain or not, is often preferred over an abandoned
storefront, and will better serve communities void of key supplies for
everyday existence. While I happily patronize my local toy store, the
reality is that big-box retailers that include a grocery section may
just be the saviors
for the vast "food deserts" across other parts of my home city,
Chicago. There, zero grocery options, especially fresh food, exist for
blocks on end.
Still, the risk of losing more independent businesses or even slowing their growth is only reenergizing the small-business community. Local and national campaigns that join efforts to raise awareness can boost results for indies.
A 2011 Independent Business Survey was conducted by the Institute for Local Self-Reliance and dozens of national and local business organizations. Respondents who participated in "Buy Local" campaigns reported an average gain in revenue of 5.6 percent, compared with a 2.1 percent revenue increase for those not involved in these campaigns. The survey gathered data from 2,768 independent, locally owned businesses during an eight-day period in January. It covered all 50 states and included a range of business types.
National campaigns are also gaining some traction. Nov. 26, 2011, the Saturday immediately after Thanksgiving and Black Friday, is designated as the second-annual Small Business Saturday holiday shopping promotion. An effort called Independent We Stand joined with American Express to create the national program in 2010 in response to small business owners' most pressing need: more demand for their products and services. Last year's inaugural program drove millions of dollars to Main Street merchants, the campaign says.
"Locally owned businesses reinvest in the local economy at a 60 percent higher rate than chains and Internet retailers, so Small Business Saturday shoppers will be revitalizing their economies while finding great deals at their favorite local merchants," says Bill Brunelle, project manager of Independent We Stand, in a news release.
For Milchen and other advocates, the fight is as much about preserving quality human interaction and a sense of community as it is about the bottom line.
For more on the Independent We Stand holiday promotion and other resources for the indie shopping movement, see below:
Independent We Stand: independentwestand.org
U.S. Chamber of Commerce Small Business Nation: uschambersmallbusinessnation.com
Civic Economics' Indie City Index 2011, a ranking of American Metropolitan Areas by the proportion of retail activity captured by independents: civiceconomics.com
American Independent Business Alliance: amiba.net
Institute for Local Self-Reliance: ilsr.org
Business Alliance for Local Living Economies: livingeconomies.org
Comparison shopping between independent stores and chains is about overall value, not just price
October 28, 2011
Certainly, there are other retail realities. The existence of any
business, chain or not, is often preferred over an abandoned
storefront, and will better serve communities void of key supplies for
everyday existence. While I happily patronize my local toy store, the
reality is that big-box retailers that include a grocery section may
just be the saviors
for the vast "food deserts" across other parts of my home city,
Chicago. There, zero grocery options, especially fresh food, exist for
blocks on end.Still, the risk of losing more independent businesses or even slowing their growth is only reenergizing the small-business community. Local and national campaigns that join efforts to raise awareness can boost results for indies.
A 2011 Independent Business Survey was conducted by the Institute for Local Self-Reliance and dozens of national and local business organizations. Respondents who participated in "Buy Local" campaigns reported an average gain in revenue of 5.6 percent, compared with a 2.1 percent revenue increase for those not involved in these campaigns. The survey gathered data from 2,768 independent, locally owned businesses during an eight-day period in January. It covered all 50 states and included a range of business types.
National campaigns are also gaining some traction. Nov. 26, 2011, the Saturday immediately after Thanksgiving and Black Friday, is designated as the second-annual Small Business Saturday holiday shopping promotion. An effort called Independent We Stand joined with American Express to create the national program in 2010 in response to small business owners' most pressing need: more demand for their products and services. Last year's inaugural program drove millions of dollars to Main Street merchants, the campaign says.
"Locally owned businesses reinvest in the local economy at a 60 percent higher rate than chains and Internet retailers, so Small Business Saturday shoppers will be revitalizing their economies while finding great deals at their favorite local merchants," says Bill Brunelle, project manager of Independent We Stand, in a news release.
For Milchen and other advocates, the fight is as much about preserving quality human interaction and a sense of community as it is about the bottom line.
For more on the Independent We Stand holiday promotion and other resources for the indie shopping movement, see below:
Independent We Stand: independentwestand.org
U.S. Chamber of Commerce Small Business Nation: uschambersmallbusinessnation.com
Civic Economics' Indie City Index 2011, a ranking of American Metropolitan Areas by the proportion of retail activity captured by independents: civiceconomics.com
American Independent Business Alliance: amiba.net
Institute for Local Self-Reliance: ilsr.org
Business Alliance for Local Living Economies: livingeconomies.org
Wednesday, November 23, 2011
Maritime Industry Urges Support for Cargo Preference
From the Seafarers InternationalUnion
22 November 2011
SIU Executive Vice President Augie Tellez and other maritime labor and company officials on Oct. 3 attended an open forum on an important program that greatly affects Seafarers and the industry at large. The multi-component program known as cargo preference stipulates that a certain percentage of U.S.-made or U.S.-funded items must be shipped on American vessels with American crews. The meeting was organized by the Maritime Administration (MarAd), whose stated goal was to open up the issue to public discussion.
Tellez (pictured below) and other speakers pointed out that cargo preference law enforcement is becoming increasingly more important to the maritime industry. With overseas conflicts starting to wind down, non-military cargo is going to become a more vital source of income for shipping companies and subsequently for merchant mariners.
“We in the maritime industry understand the critical need for our cargo preference laws, particularly those that affect food aid, our loan guarantee programs and other nondefense cargoes,” said Tellez. “As Operation Iraqi Freedom and Operation Enduring Freedom wind down after almost a decade, our industry needs to find cargo wherever it can, and we recognize we cannot continue to rely on the Pentagon for everything. Non-defense cargo is more important now than it has ever been.”
Maritime Trades Department, AFL-CIO (MTD) Executive Secretary-Treasurer Daniel Duncan was also on hand at the meeting expressing the department’s support for cargo preference laws.
“The MTD firmly believes that the nation’s series of cargo preference laws is a bedrock of the U.S.-flag maritime industry,” said Duncan. “These laws have played a vital role in ensuring that America has a strong domestic shipbuilding base and merchant marine. Cargo preference laws help create good-paying jobs for American workers, provide tax revenues at the local, state, and federal levels, and make sure America’s merchant marine is ready and available when needed for strategic sealift and other defense interests.”
The Marine Engineers’ Beneficial Association (MEBA) and the International Organization of Masters, Mates, and Pilots (MM&P) also jointly voiced their support for cargo preference laws and talked about the impact that they have on their respective memberships.
“There should be no question that, in order to grow and maintain the U.S. Merchant Marine, U.S.-flagged vessels should be used to the greatest extent possible when shipping government-impelled cargoes,” said William Doyle of MEBA. “Rigorous enforcement and oversight of cargo preference laws enables MarAd to fulfill its mission. Without oversight and enforcement from MarAd, the presence of the U.S.-flag fleet in the foreign trades would cease to exist, leaving a glaring hole in our national defense capabilities and negatively impacting our economy.”
Other speakers pointed out the economic importance the laws have on private shipowners and the costs that are deferred from the government because of them. Cargo preference laws, according to several presenters, provide an economically efficient way to bolster private industry and support jobs.
“Virtually every privately owned U.S.-flag vessel engaged in the foreign trade depends to some degree on cargo preference to remain economically viable,” said Bill Kenwell of Maersk Line, Limited on behalf of USA Maritime, an industry group consisting of shipowners, operators, and labor groups. “Indeed, absent cargo preference, it is no exaggeration at all to say that the U.S.-flag fleet in foreign commerce would disappear and the U.S. government would have to duplicate that sealift capability at enormous expense with government-owned vessels.”
In spite of these facts, however, many in the room were disappointed with MarAd’s efforts to enforce cargo preference laws. Even with revisions made by Congress that would bolster the programs, the agency’s efforts are still seen as lacking.
“If I had to sum up our feelings about MarAd’s performance when it comes to cargo preference matters in one word, that word would be frustration,” said Tellez, pointing to long vacancies in important MarAd positions and the lack of implementation of a three-year-old revision that punishes entities that don’t adhere to cargo preference rules.
Richard Berkowitz of the Transportation Institute, another maritime industry group composed of multiple sectors, agreed.
“Judging from the lengthy time it has taken to fill key management positions at MarAd related to cargo preference administration, it is difficult to believe that the administration’s role to ‘promote … the viability of the U.S. Merchant Marine’ is being taken with the earnestness and purpose needed to direct the government-impelled cargo so key to sustaining U.S. vessels in international trade lanes,” said Berkowitz.
Liberty Maritime Corporation CEO Philip Shapiro sent a letter to MarAd to throw his company’s support behind USA Maritime’s statements but added that the agency could be doing more in regards to cargo preference.
“Liberty Maritime would only like to add that it is imperative that the U.S. Maritime Administration place a high priority on cargo preference implementation and enforcement,” said Shapiro. “Congress has charged MarAd with ensuring that cargo preference achieves its objectives of supporting a strong and vibrant U.S.-flag Merchant Marine.”
In spite of some complaints, the SIU and others at the meeting reinforced their eagerness to work with the administration.
“The cargo preference laws work when they are properly enforced,” said Tellez. “They work when the resources needed to ensure that they’re being enforced are there. I am confident that MarAd can resolve these issues swiftly and I look forward to working with the agency in the future as we all strive to promot and protect our merchant marine.”
###
Tuesday, November 22, 2011
Priority for standard private armed guards contract
From the Baltic and International Maritime Council (BIMCO)
21 November 2011
With the increasing use of armed guards on ships and the fear that second-rate security firms may take advantage of the piracy situation, BIMCO is forging ahead with the development of a standard contract for the employment of armed guards. The new contract, which will be drafted by a team of experts of shipowners, lawyers and underwriters, and with the assistance of the International Group of P&I Clubs, will require private security firms offering armed guards to follow the IMO Guidelines for owners on the used privately contracted armed security personnel on board ships (MSC Circular 1405). Of major importance is ensuring that security contractors have in place proper and sufficient public and employers’ liability insurance – which is a concern recently raised by the International Group of P&I Clubs. While much of the new BIMCO contract will deal with operational aspects of employing armed security guards, issues of liability and responsibility will be of prime importance.
New private maritime security firms are springing up almost daily to meet shipowners’ growing demands for their services for vessels operating in high risk areas. It is very important that this new sector is regulated and that harmonised terms are developed and agreed. BIMCO has given this project the highest priority so that the standard contract can be published as soon as possible – most likely within the next two months.
21 November 2011
With the increasing use of armed guards on ships and the fear that second-rate security firms may take advantage of the piracy situation, BIMCO is forging ahead with the development of a standard contract for the employment of armed guards. The new contract, which will be drafted by a team of experts of shipowners, lawyers and underwriters, and with the assistance of the International Group of P&I Clubs, will require private security firms offering armed guards to follow the IMO Guidelines for owners on the used privately contracted armed security personnel on board ships (MSC Circular 1405). Of major importance is ensuring that security contractors have in place proper and sufficient public and employers’ liability insurance – which is a concern recently raised by the International Group of P&I Clubs. While much of the new BIMCO contract will deal with operational aspects of employing armed security guards, issues of liability and responsibility will be of prime importance.
New private maritime security firms are springing up almost daily to meet shipowners’ growing demands for their services for vessels operating in high risk areas. It is very important that this new sector is regulated and that harmonised terms are developed and agreed. BIMCO has given this project the highest priority so that the standard contract can be published as soon as possible – most likely within the next two months.
Wednesday, November 9, 2011
More Needs to be Done to Stop Invisive Species
The following is a Press Release from the Smithsonian Environmental Research Center:
(EDGEWATER, Md.) -- Invasive species have hitchhiked to
the U.S. on cargo ships for centuries, but the method U.S. regulators most rely
on to keep them out is not equally effective across coasts. Ecologists from the
Smithsonian Environmental Research Center have found that ports on the East
Coast and the Gulf of Mexico are significantly less protected than ports on the
West Coast.
Invaders are frequently introduced across oceans and along coastlines through the ballast water in ship hulls, water that often includes plankton and larval stages of marine and estuarine species. Large vessels need this water for balance as they load and unload cargo. However, by dumping ballast water in their ports of entry, they accidentally bring in new species that can alter or damage the local ecosystem. In 2004 policymakers thought they had found a solution: have cargo vessels exchange their ballast water in the open ocean, at least 200 nautical miles from land. This method, called “open-ocean exchange,” flushes out or kills potential invaders by exchanging coastal water for water from the deep ocean.
But some ships do not use the practice and many more cannot without veering drastically off course. In perhaps the most comprehensive study to date, Whitman Miller and a team of scientists from SERC looked at all international ships entering the contiguous U.S. over three years. Published today in the journal BioScience, the study analyzed approximately 105,000 vessel reports from January 2005 to December 2007. While most ships opted not to discharge their ballast water at all, a substantial number continued to dump unexchanged or improperly exchanged water into their ports of entry.
Not all coasts are affected equally. The Gulf of Mexico and the East Coast received much larger fractions of unexchanged ballast water than the West Coast. Roughly 5 percent of the ballast water discharged on the West Coast had not undergone open-ocean exchange. By contrast 21 percent of the discharged water in the Gulf and 23 percent on the East Coast went unexchanged.
Much of the problem comes down to simple geography. Depending on a ship’s transit route, it may not have the time or space to conduct open-ocean exchange. A mere 24 percent of the ballast water discharged by ships journeying to U.S. ports along coastal routes, from Central or South America, for example, underwent open-ocean exchange. In contrast 91 percent of ballast water discharge by transoceanic shipping was exchanged in the open ocean, where ships have more opportunities to manage their water properly. Because so many of their incoming ships do not pass through the open ocean, ports in the Gulf and East Coast receive more potentially harmful water.
The vast discrepancies point to the need for another solution, ecologists say. If ships could treat their ballast water on board without having to journey to the open ocean, every coast would be safer.
“The Gulf of Mexico coast receives more overseas ballast water discharge than the East or West coasts, and most of this water is either unexchanged or exchanged inside coastal waters,” said Miller. “Given the geographic constraints of shipping, and the complexity of the invasion process, it is clear that we need to move to onboard ballast water treatment technologies that will allow ships to operate anywhere in the world without fear of releasing harmful invasive species.”
The full paper is available upon request. To receive a copy, to speak with Miller or for more information, contact Kristen Minogue at (443) 482-2325 or Monaca Noble at (443) 482-2467.
Tuesday, November 8, 2011
Horizon Lines hit by third quarter losses.
Company hopes refinancing and exit from the trans-Pacific market will
bring stability
Horizon Lines, the US’s busiest domestic ocean shipping company, sustained considerable losses of $126.5 million from continuing operations in the third quarter, the company has revealed.
The huge losses compared with a $8.2 million net profit a year earlier. In a defiant statement issued yesterday Horizon said it expects its recent refinancing and exit from the trans-Pacific market to stabilize future results despite “challenging” economic conditions.
Last month , as the US’s largest shipping line announced its decision to discontinue its Five Star Express (FSX) transpacific container shipping service between the US west coast, Guam and China, President and CEO Stephen Fraser said: “Our decision to exit this highly volatile market will allow Horizon to focus on our core domestic ocean shipping services, and provide the opportunity to produce a more profitable and stable financial performance over time.”
The results, announced yesterday included a $117.5 million goodwill impairment charge stemming mainly from the shutdown of the trans-Pacific service and deteriorating earnings.
Horizon said the amount of the goodwill impairment is an estimate that may be adjusted during the fourth quarter.
The company said it expects the shutdown of the trans-Pacific service to produce a pretax restructuring charge of $105 million to $110 million in the fourth quarter, following negative adjusted earnings before interest, taxes, depreciation and amortization of approximately $43.7 million for the year’s first nine months.
Horizon launched the trans-Pacific service last December after Maersk Line did not renew a take-or-pay agreement for eastbound capacity on the backhaul of Horizon’s service from the U.S. mainland to Guam. Horizon is laying up the service’s five chartered ships, each with capacities of 2,824 20-foot-equivalent units, and seeking to subcharter them.
Earlier this year Horizon Lines completed a complicated $650 million financial restructure that saved the shipping line from bankruptcy and will left bondholders with most of the company’s stock.
The carrier had struggled to straighten its finances since pleading guilty last March to price-fixing in the Puerto Rico trade.
Horizon operates between the US mainland and Puerto Rico, Alaska, Hawaii and Guam, and between China and the US west coast.
Saturday, November 5, 2011
DryShips and OceanFreight Complete Merger
Friday, November 04, 2011
DryShips Inc.
(NASDAQ: DRYS) and OceanFreight Inc. (NASDAQ: OCNF) announced today that
following approval by OceanFreight's shareholders at a special meeting,
the companies have completed the merger and OceanFreight has become a
wholly-owned subsidiary of DryShips. Under the terms of the merger
agreement, OceanFreight shareholders will be entitled to receive $11.25
in cash and 0.52326 of a share of common stock of Ocean Rig UDW Inc., a
global provider of offshore ultra deepwater drilling services, for each
share of OceanFreight common stock owned by them.
As a result of the merger, OceanFreight's common shares will cease trading on the NASDAQ Global Market today, and OceanFreight expects to deregister and suspend its reporting obligations under the Securities and Exchange Act of 1934, as amended.
American Stock Transfer & Trust Company has been appointed to serve as the agent for payment of the merger consideration to OceanFreight shareholders, and will promptly mail to shareholders instructions on how to surrender their stock certificates and receive payment for their shares. Banks, brokerage firms or other nominees will provide those shareholders who hold their shares in "street name" with their proceeds from the transaction. For more information, shareholders who hold their shares in "street name" should contact their bank, broker or other holder of record, and shareholders of record may contact American Stock Transfer & Trust Company at (877) 248-6417 (toll free). Shareholders of record should wait to receive the letter of transmittal before surrendering their shares.
As a result of the merger, OceanFreight's common shares will cease trading on the NASDAQ Global Market today, and OceanFreight expects to deregister and suspend its reporting obligations under the Securities and Exchange Act of 1934, as amended.
American Stock Transfer & Trust Company has been appointed to serve as the agent for payment of the merger consideration to OceanFreight shareholders, and will promptly mail to shareholders instructions on how to surrender their stock certificates and receive payment for their shares. Banks, brokerage firms or other nominees will provide those shareholders who hold their shares in "street name" with their proceeds from the transaction. For more information, shareholders who hold their shares in "street name" should contact their bank, broker or other holder of record, and shareholders of record may contact American Stock Transfer & Trust Company at (877) 248-6417 (toll free). Shareholders of record should wait to receive the letter of transmittal before surrendering their shares.
House prepares to vote on ship ballast standard.
TRAVERSE
CITY, Mich. (AP) — Environmentalists tried to rally opposition Thursday
to a proposed national policy for cleansing ship ballast water to kill
invasive species, contending it is too weak and would pre-empt stronger
state and federal rules.
The U.S. House was expected to vote as early as Friday on the measure, which comes as the Environmental Protection Agency is preparing to release its own regulations of ship ballast — a leading culprit in the spread of invaders such as zebra and quagga mussels in the Great Lakes and ocean coastal waters.
Sponsored by Rep. Frank LoBiondo, a New Jersey Republican, the bill would adopt a standard proposed by the International Maritime Organization limiting the number of live organisms that would be permitted in ballast water. Vessel operators would have to install technology to meet the standard.
The shipping industry has pushed for a single nationwide policy, saying the current patchwork of more than two dozen state and tribal regulatory systems is unworkable because vessels move constantly from one jurisdiction to another.
Great Lakes shippers are particularly unhappy about New York rules that set live-organism limits 100 times tougher for existing ships than those under the international standard. For newly built ships, New York's standards would be 1,000 times stronger. State officials have postponed the effective date to 2013, giving shippers more time to comply.
The industry says technology to meet the New York requirements doesn't exist. Shippers say the state's strict limits could close the Great Lakes to oceangoing vessels, since they must pass through New York waters to reach the rest of the system.
"While individual state standards and those set by the Clean Water Act function well for factories that are fixed in one location, it simply does not work for vessels engaged in interstate or international commerce," LoBiondo said.
Environmental groups said the bill would prevent EPA and the U.S. Coast Guard, which is also developing ballast rules, from imposing standards tough enough to make sure no more exotic species reach the Great Lakes. About two-thirds of the 185 invasive species in the lakes are believed to have arrived in ballast water. They've done billions in damages and are implicated in a variety of ecological problems, from runaway algae blooms to a shortage of plankton crucial for the aquatic food web.
"This bill is designed to keep the shipping industry off the hook and violates states' right to protect their waters from invasive species," said Marc Smith, senior policy manager for the Naional Wildlife Federation's Great Lakes office.
The measure would allow EPA to strengthen the federal standard beginning in 2016, or earlier if a state requests it, according to LoBiondo's office.
But the wildlife group said the bill would make it "difficult, if not impossible, to add new protections, even if the EPA and other agencies determine that the (international) standard is not doing the job."
The U.S. House was expected to vote as early as Friday on the measure, which comes as the Environmental Protection Agency is preparing to release its own regulations of ship ballast — a leading culprit in the spread of invaders such as zebra and quagga mussels in the Great Lakes and ocean coastal waters.
Sponsored by Rep. Frank LoBiondo, a New Jersey Republican, the bill would adopt a standard proposed by the International Maritime Organization limiting the number of live organisms that would be permitted in ballast water. Vessel operators would have to install technology to meet the standard.
The shipping industry has pushed for a single nationwide policy, saying the current patchwork of more than two dozen state and tribal regulatory systems is unworkable because vessels move constantly from one jurisdiction to another.
Great Lakes shippers are particularly unhappy about New York rules that set live-organism limits 100 times tougher for existing ships than those under the international standard. For newly built ships, New York's standards would be 1,000 times stronger. State officials have postponed the effective date to 2013, giving shippers more time to comply.
The industry says technology to meet the New York requirements doesn't exist. Shippers say the state's strict limits could close the Great Lakes to oceangoing vessels, since they must pass through New York waters to reach the rest of the system.
"While individual state standards and those set by the Clean Water Act function well for factories that are fixed in one location, it simply does not work for vessels engaged in interstate or international commerce," LoBiondo said.
Environmental groups said the bill would prevent EPA and the U.S. Coast Guard, which is also developing ballast rules, from imposing standards tough enough to make sure no more exotic species reach the Great Lakes. About two-thirds of the 185 invasive species in the lakes are believed to have arrived in ballast water. They've done billions in damages and are implicated in a variety of ecological problems, from runaway algae blooms to a shortage of plankton crucial for the aquatic food web.
"This bill is designed to keep the shipping industry off the hook and violates states' right to protect their waters from invasive species," said Marc Smith, senior policy manager for the Naional Wildlife Federation's Great Lakes office.
The measure would allow EPA to strengthen the federal standard beginning in 2016, or earlier if a state requests it, according to LoBiondo's office.
But the wildlife group said the bill would make it "difficult, if not impossible, to add new protections, even if the EPA and other agencies determine that the (international) standard is not doing the job."
JOHN FLESHER, AP Environmental Writer
Updated 12:28 p.m., Friday, November 4, 2011
Friday, November 4, 2011
Good News, Bad News For The Shipping Industry.
OpCost 2011
29 September 2011
Ship operating costs increase again but insurance
costs plummet
International
accountant and shipping consultant Moore Stephens says total annual operating
costs in the shipping industry increased by an average 2.2 per cent in 2010.
This compares with the 2.0 per cent average fall in costs recorded for the
previous year, which was the first time since 2002 that operating costs had
fallen. All cost categories showed an overall increase this time, with the
exception of stores and insurance – with the latter falling by 4.7 per cent
overall.
The findings are set
out in OpCost 2011, Moore Stephens’ unique ship operating costs benchmarking
tool, which reveals that all individual categories of vessel covered by the
research, with the exception of handysize product tankers, experienced an
increase in total operating costs in 2010, the financial year covered by the
survey. Costs for the three main sectors covered – bulkers, tankers and
container ships – were all up. The bulker index increased by 5 index points (or
2.9 per cent) on a year-on-year basis, while the tanker index witnessed a
two-index-point (1.1 per cent) rise. Meanwhile, the container ship index (with
a 2002 base year, as opposed to 2000 for the other two vessel classes) was up
three index points, or 1.9 per cent. The corresponding figures in last year’s
OpCost report showed falls in the bulker, tanker and container ship indexes of
1, 5 and 13 points respectively.
There was a 3.2 per
cent overall increase in 2010 crew costs compared to the 2009 figure, which
itself represented the most moderate increase for a number of years. In 2008,
the report revealed a 21 per cent increase in this category. Tankers overall
experienced increases in crew costs of 2.7 per cent on average, compared to 2.5
per cent in 2009. For bulkers, meanwhile, the overall increase in crew costs
was 4.0 per cent, while for container ships it was 2.9 per cent.
For repairs and
maintenance, there was an overall increase in costs of 4.5 per cent, compared
to the 11.3 per cent decrease recorded for 2009. The biggest increase here was
the 8.0 per cent recorded in the container ship category. For bulkers the
increase was 7.6 per cent, and for tankers just 0.8 per cent. There were
variations in the cost movements experienced within vessel categories. Whereas
operators of handysize bulkers spent an average of 12.0 per cent more on
repairs and maintenance in 2010, those running capsizes recorded an average
increase of just 3.7 per cent. And whereas the average increase in repair and
maintenance costs for panamax tankers was 8.4 per cent, operators of aframaxes
actually spent 1.3 per cent less than in 2009. In the container vessel sector,
meanwhile, increased repair and maintenance spend was fairly consistent across
all box ship tonnage sizes covered by the report.
For the second
successive year, OpCost reveals a fall in the level of spending on stores –
down by 1.0 per cent. Overall, expenditure in this regard was actually up in
the bulker sector, by 1.1 per cent, but down in the tanker trades (by 3.4 per
cent) and in the container ship market (also by 3.4 per cent).
The insurance
category showed the biggest movement in terms of costs – down overall by an
average of 4.7 per cent across all vessel types in 2010. For tankers, the
insurance spend was down by 7.9 per cent, for container ships by 3.8 per cent,
and for bulkers by 2.9 per cent. Panamax bulkers were the only individual class
of ship to spend more on insurance in 2010, while the likes of small chemical
tankers (10.4 per cent), VLCCs (9.8 per cent) and aframax tankers (9.0 per
cent) spent considerably less.
Moore Stephens
partner Richard Greiner says: “The movement in operating costs during 2010 is
fairly consistent with what we might have expected, bearing in mind the big
fall in costs in 2009 and the continuing economic downturn. The average overall
increase in crew costs of 3.2 per cent, up one per cent on the figure for 2009,
is clearly a matter of continuing concern for owners and operators. But it is
modest in comparison to some of the very significant increases recorded in this
category in earlier years. The industry must continue to invest in personnel,
and it is encouraging to see that it is not only doing so, but also doing so
without suffering the huge surge in outgoings that was giving such a lopsided
look to operating costs a couple of years ago.
“The 4.5 per cent
average increase in expenditure on repairs and maintenance compares with a
decrease of more than 11 per cent in 2009, but is significantly down on the 13
per cent-plus increases recorded in both 2007 and 2008. It is also an indicator
not only of increases in the costs of labour and raw materials, but of a
continuing willingness on the part of the industry to pay for the upkeep of its
ships which, with increasingly stringent national and international regulations
coming into force covering the likes of corporate and environmental
responsibility, is a prerequisite for the continuing ability to trade.
“Spending on stores
was down in 2010. This is perhaps something of a surprise, since the category
includes lube oils, the price of which continued to rise throughout 2010, along
with the cost of the additives which go into its manufacture. But the more widespread
fitting of Alpha-type lubricating systems, the fall-off in some areas of trade,
and the resort by some to slow steaming, appear to have made their effect felt
in this regard.
“Insurance costs were
the big mover in this year’s report, with spending down by almost 5 per cent.
Conditions in the insurance market were more benign in 2010 than for a number
of years. The general increases announced by the P&I clubs for 2011 are in
most cases at their lowest levels for more than ten years, reflecting improved
figures for 2010 and more optimistic forecasts for 2011 and 2012. The results
of OpCost also point to a level of informed discernment in the commercial
underwriting sector, with the likes of chemical tankers – notoriously ‘safe’
ships – paying over ten per cent less for their insurance in 2010 than in the
previous year. Tighter regulation and stricter port state control should result
in fewer accidents and, in an ideal world, will feed through to more favourable
insurance rates.
“The global economic
outlook remains both bleak and uncertain. Like other industries, shipping will
both play a part in its recovery and suffer from its consequences. But the
indications from OpCost 2011 are that operating costs are under a measure of control,
which could prove crucial over the next couple of years.”
Coast Guard Reccomends Changing Shipping Lanes For Blue Whales.
The U.S. Coast Guard
has recommended shifting the shipping lanes in the Santa Barbara Channel to
move cargo ships out of the way of whales feeding in the Channel Islands
National Marine Sanctuary.
A proposal published
Tuesday would narrow the lanes and move one of them north of a steep,
underwater drop-off near Santa Cruz and Santa Rosa islands where endangered
blue, fin and humpback whales have been congregating to feed on krill, saying
it would “help in preserving the marine environment.”
Federal wildlife
officials and environmental groups have been alarmed by the presence of whales
in shipping lanes, which they worry puts the giant marine mammals at greater
risk of being struck and killed by the hulking vessels that ferry goods in and
out of the Los Angeles-Long Beach port complex.
Four blue whales
were struck and killed by vessels near the Channel Islands sanctuary in 2007,
prompting authorities to start issuing notices asking large vessels to slow
down when whales are in the area.
The threat of
collisions also has been of growing concern outside Los Angeles Harbor, where
blue whales have been gathering to feed in dense concentrations in the path of
a major shipping lane.
The Coast Guard
proposal also calls for establishing new shipping lanes south of the Channel
Islands, where some freighters have been navigating to avoid the state's strict
air pollution curbs, prompting complaints from the Navy that they were getting
too close to military testing ranges.
Unbounded ship
traffic, the Coast Guard says, is a safety concern and a defined route would
ensure more predictability.
Environmental
groups, who have petitioned the Obama administration to establish a ship speed
limit through California's four national marine sanctuaries to protect whales,
praised the idea to move the lanes away from feeding areas. But they expressed
disappointment that the Coast Guard’s proposal did not include speed restrictions.
--Tony Barboza
Photo: A blue whale feeding on krill outside Los
Angeles Harbor in October surfaces near a shipping lane. Allen J. Schaben/Los
Angeles Times
Tuesday, November 1, 2011
Port of Oakland Operations Halted by Longshoremen.
This video from KGO-TV in Oakland is pretty amazing, especially considering the Occupy Oakland Movement (A part of the Occupy Wall Street Movement) is planning a "blockade" in the city. I can only imagine the traffic headaches this will create. As Mr Roman mentions, this affects ports up and down the West Coast. So if you're on the West Coast near a major port, this could be coming soon!
By Tomas Roman
The longshoreman are refusing to move any containers at certain terminals because they say refrigerated containers that were improperly serviced in Vietnam have already exploded in Vietnam, China, and Brazil. Some of those containers have been found in Oakland and other West Coast ports.
Photos were taken in Vietnam of one of the five refrigerated containers that exploded at a port there last Friday. Three dock workers were killed and 16 were injured. An Oakland longshoreman got hold of the photos, but fears losing his job if he speaks on camera. He learned that some of the same types of containers had arrived here in Oakland Monday morning.
The longshoreman said, "At 8 o'clock this morning we got the word that the containers that were over at SSA were actually some of the containers that were on the list that weren't supposed to get here."
There was a list of refrigerated containers that had been serviced in Vietnam with an unstable form of freon according to the longshoreman's union. They say that's why they exploded.
"They have apparently taken at least three lives and may have injured many more people," said ILWU spokesperson Craig Merrilees.
They were supposed to be taken out before coming to the U.S. The ILWU says they were not and thousands of them are either in ports or out on the water.
"There are potentially thousands of containers being shipped around the world, some that have ended up on docks here in Oakland, they're potentially lethal," said Merrilees.
There are also reports of refrigerated containers exploding in China and Brazil since Thursday. Hundreds of longshoremen on Monday refused to unload any ships or move any containers until those improperly serviced in Vietnam are removed.
"I think we know that at least two terminals, both the SSA and TraPac terminal have been shut down," said Merrilees.
The longshoreman who wanted to remain anonymous said, "Until we get it resolved were not going to work."
If the longshoremen don't work, neither do the truckers. With the terminals closed dozens of trucks line the roads of the port unable to load or unload.
A trucker ABC7 spoke to also wanted anonymity. He said, "I was supposed to turn in my empty containers in and then take loads out and I couldn't do anything." When asked how long he had been there stuck in line, he said, "All day."
So far the U.S. Coast Guard has isolated at least 13 of these problem containers, but they're looking at the same issue in Tacoma, Washington, Portland, Oregon, and in Long Beach.
The Pacific Maritime Association, the longshoreman's union and the shippers are all trying to get together to work this issue out and get the cargo moving.
By Tomas Roman
OAKLAND, Calif. (KGO) -- Dock workers at the Port of Oakland refused to unload ships that are loaded with what they call explosive contents. At least two terminals at the port were closed Monday night because of the threat. It is an extra challenge for the port already preparing a possible blockade by Occupy Oakland on Wednesday and the backup is extensive.
The longshoreman are refusing to move any containers at certain terminals because they say refrigerated containers that were improperly serviced in Vietnam have already exploded in Vietnam, China, and Brazil. Some of those containers have been found in Oakland and other West Coast ports.
Photos were taken in Vietnam of one of the five refrigerated containers that exploded at a port there last Friday. Three dock workers were killed and 16 were injured. An Oakland longshoreman got hold of the photos, but fears losing his job if he speaks on camera. He learned that some of the same types of containers had arrived here in Oakland Monday morning.
The longshoreman said, "At 8 o'clock this morning we got the word that the containers that were over at SSA were actually some of the containers that were on the list that weren't supposed to get here."
There was a list of refrigerated containers that had been serviced in Vietnam with an unstable form of freon according to the longshoreman's union. They say that's why they exploded.
"They have apparently taken at least three lives and may have injured many more people," said ILWU spokesperson Craig Merrilees.
They were supposed to be taken out before coming to the U.S. The ILWU says they were not and thousands of them are either in ports or out on the water.
"There are potentially thousands of containers being shipped around the world, some that have ended up on docks here in Oakland, they're potentially lethal," said Merrilees.
There are also reports of refrigerated containers exploding in China and Brazil since Thursday. Hundreds of longshoremen on Monday refused to unload any ships or move any containers until those improperly serviced in Vietnam are removed.
"I think we know that at least two terminals, both the SSA and TraPac terminal have been shut down," said Merrilees.
The longshoreman who wanted to remain anonymous said, "Until we get it resolved were not going to work."
If the longshoremen don't work, neither do the truckers. With the terminals closed dozens of trucks line the roads of the port unable to load or unload.
A trucker ABC7 spoke to also wanted anonymity. He said, "I was supposed to turn in my empty containers in and then take loads out and I couldn't do anything." When asked how long he had been there stuck in line, he said, "All day."
So far the U.S. Coast Guard has isolated at least 13 of these problem containers, but they're looking at the same issue in Tacoma, Washington, Portland, Oregon, and in Long Beach.
The Pacific Maritime Association, the longshoreman's union and the shippers are all trying to get together to work this issue out and get the cargo moving.
(Copyright ©2011 KGO-TV/DT. All Rights Reserved.)
10000 Ships to Use LNG Propulsion by 2020?
This report comes from from MEC
Intelligence. The impact of this suggests phenomenal growth (over 9000% growth) in LNG use for maritime propulsion. This growth over the next eight years could very well change the face of marine engineering.
LNG in marine
propulsion: A Disruption to the Maritime Industry?
According a new
forecast by MEC intelligence nearly 10,000 vessels could be adopting LNG
propulsion by 2020 triggering a huge growth in the market. Companies in all
aspects of the maritime value chain– oil majors, terminals, ports, bunker
suppliers, service companies, component producers, vessel owners and charterers
– need to rethink their offerings.”
A ground breaking
report published by the maritime cleantech market insight firm MEC Intelligence
estimates more than 5% of the world fleet will adopt LNG propulsion by 2020 a
huge growth considering less than 100 vessels presently.
Best Option for
Newbuilds
Strict environment
regulations requiring the reduction of SOx, NOx to 0.1% in ECA zone in 2015 and
0.5% globally in 2020 will stimulate demand for technologies that can eliminate
or reduce emissions from vessel exhausts. The key compliance options available
are either adoption of new types of fuel – low sulphur MGO or LNG – or using
scrubber technology on the existing HFO fuel.
The LNG propulsion
technology will potentially gain massive traction in the new build segment
owing to significantly lower operation costs leading to a lower total ownership
cost over the ship’s lifecycle. The total ownership cost over ship’s lifecycle
for a new build LNG propelled vessel (depending on vessel type and geography)
is expected to be up to 40% lower as compared to that of a fuel oil and MGO
propelled vessel.
The low cost are
attributed to the abundant availability and competitive prices of LNG compared
to crude. Even though, the price of LNG is expected to increase with the pickup
in natural gas demand in power sector it is not likely to be significant considering
the new supplies from unconventional gas reserves.
Further, considering
the often more than 25 year long life cycle of vessels, LNG adoption makes the
ship essentially future proof in terms of further regulatory driven emission
reductions in SOx, NOx, and Particulate Matter approaching in the horizon.
Huge Long Term
Impact Albeit a Slow Start
Better Economics
combined with development of building capacity, recent advancements in engine
and fuel gas technologies are leading to a pick-up in the interest in LNG
propulsion. Although availability of infrastructure and standards is a limiting
factor, yet, this is expected to be only a short term inhibitors. An analysis
of the existing LNG supply and terminal infrastructure shows ample availability
of the fuel to be able to supply and bunkering infrastructure can be developed
rapidly to meet the growing fleet.
With the development
of infrastructure and IMO ratifications the fleet is expected to reach up to
1,000 vessels by 2015 but pick up rapidly to grow up to 10 times in the
subsequent five years as the technology, infrastructure, and economics stack
equivocally in favour of LNG propulsion. However, in case infrastructure and
regulation are delayed the penetration is estimated to be significant lower yet
still significant.
Unique Opportunity
to Differentiate and Shape the Market
The report concludes
that the adoption of LNG in vessels will call for changes in all aspects of the
value chain – oil majors, terminals, ports, bunker suppliers, service
companies, components suppliers, owners and charterers – requiring companies to
rethink their offerings and align to a new reality sooner or later. It is one
of the unique times when companies can move fast to take advantage of a new
technology to differentiate themselves in the largely ‘commodity’ market for
equipment and services.
About MEC
Intelligence
MEC Intelligence is
a leading market insight firm focused on growth in the maritime, energy, and
cleantech sectors. The company brings together its unique data assets, deep
experience in supporting strategic and market business development, and broad
industry knowledge to develop objective perspective on industry developments
and identify growth opportunities for the entire maritime, energy, and
cleantech ecosystem.
Saturday, October 22, 2011
Where are the Jobs?
In a recent Op-Ed
piece for The Wall Street Journal,
Harold Ford Jr., wrote about several major projects which will provide several
thousand jobs in various parts of the country.
The fact that the two oil tanker builds in Philadelphia are pending is miraculous, considering Exxon could have taken the builds to Korea at half the cost. So in addition to authorizing these builds, I would suggest we take a hard look at how the Historic Philadelphia Shipyards received these contracts. Perhaps there's some value added element that has not been reported on yet, and other industries, who are losing jobs to Korea and China, could learn from.
A brief listing of
the projects he mentioned included:
- Two new build oil tankers in the Philadelphia Shipyard
- Alaska, 500 off-shore drilling leases to move forward
- New-York, Natural Gas drilling to commence after lifting Hydraulic Fracturing moratorium
- Ohio, new steel-mill to be built in Youngstown
- Multi state pipeline project from U.S. Gulf Coast to Canada
The main point that
Mr. Ford was getting at in his Op-Ed is that thousands of jobs would be created
if policies were lifted to allow it. These are real jobs being prevented from
starting due to government red-tape.
The politicians are
continually posturing over how to fix the nations employment problem and in
turn, fixing our economy.
I will say, that
there are jobs out there. There are industries that are succeeding despite the
downturn. Some of the jobs Mr. Ford
outlined in his comments are slightly more complicated than a simple
"green light" from the Government. For instance, the Multi-state
pipeline requires not only an "OK" from the EPA, but also from each
of the states it passes through.
The fact that the two oil tanker builds in Philadelphia are pending is miraculous, considering Exxon could have taken the builds to Korea at half the cost. So in addition to authorizing these builds, I would suggest we take a hard look at how the Historic Philadelphia Shipyards received these contracts. Perhaps there's some value added element that has not been reported on yet, and other industries, who are losing jobs to Korea and China, could learn from.
There's a lot that
can be done, and lifting government red-tape is only one step. We don’t
necessarily support recent jobs bills, but we do believe that any jobs bill
passed have elements that begin to lift regulations that hinder job creation.
(Mr. Ford, a former Democratic member of Congress from Tennessee, is a visiting professor at New York University.)
(Mr. Ford, a former Democratic member of Congress from Tennessee, is a visiting professor at New York University.)
K. Swanson
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