As we come upon Vancouver’s coldest months, those parties with cargo fumigation requirements should bear in mind the potential difficulties and delays that can arise from the falling temperatures.

Canadian regulations for cargo fumigation require a minimum temperature of 5 degrees Celsius for the cargo. Temperatures below that mark can limit the ability of the Aluminum Phosphide pellets to react with the ambient moisture and release their Hydrogen Phosphide (PH3 – Phosphine Gas) in the cargo holds. If the cargo temperature falls below that mark, it can prevent adequate gas levels building up in the holds which are needed to confirm there is no possibility of leakage into the superstructure.

This regulation is vital as it directly affects crew’s safety. Each year, approximately 7-10% of ships experience instances of fumigant gas infiltrating areas such as the engine room, accommodations, forecastle (forward storage space), crane towers, or deck stores.

In some cases vessels may need to wait at anchorage for an improvement to the outside temperature before the 24hr fumigation process can begin. Fumigators will monitor the situation closely; including grain temperatures at commencement of loading, during loading and weather forecast information to best coordinate the fumigation process and limit any potential delays due to the cold.

Depending in the ultimate destination and schedule, vessels loading in Prince Rupert could also have the option to sail to Vancouver for fumigation enroute. Generally the temperatures and weather are more favorable for fumigation in Vancouver.

The union representing British Columbia port supervisors in a dispute with their employers has applied for a judicial review of federal Labour Minister Steven MacKinnon’s decision last month to order them back to work.

In an application dated Dec. 3, the International Longshore and Warehouse Union Local 514 says it is seeking to quash MacKinnon’s direction on Nov. 12 to the Canada Industrial Relations Board to order a resumption of port operations in B.C. after a lockout imposed by employers.

MacKinnon’s order also includes a direction for the board to impose “final and binding arbitration” to resolve the dispute, which the union says violates workers’ Charter rights “to meaningful collective bargaining and to strike.”

The dispute between Local 514’s roughly 700 members and the BC Maritime Employers Association resulted in a shutdown of port facilities across the province between Nov. 4 and Nov. 14, as employers locked out supervisors in response to an overtime ban by union members.

None of the accusations in the application have been proven in court.

The employers association says in a statement that its counsel would be responding to the application and it would not provide further comment.

In the application, Local 514 and president Frank Morena say MacKinnon had not brought up the possibility of invoking Section 107 of the Labour Code or imposing binding arbitration before making the order.

Section 107 gives the minister additional powers to take action that “seem likely to maintain or secure industrial peace and to promote conditions favourable to the settlement of industrial disputes.”

Legal experts have said the language of the section is vague about what it allows a minister to do and this may be used by labour groups to challenge a minister’s orders.

Last month, Local 514 filed a challenge at the Canada Industrial Relations Board, questioning whether MacKinnon’s order violated the rights to collective bargaining and to strike.

Source The Canadian Press

Canadian National Railway (CN) has reached a tentative four-year collective agreement with Unifor. The union represents approximately 3,300 employees at CN in Canada, working in different mechanical, clerical, and intermodal functions.

The agreement, pending ratification by union members, was announced on December 9, just three weeks before the current contract’s expiration of December 31. Though no details of the tentative agreement will be released publicly until it has been ratified, Unifor Council 4000 officials expressed satisfaction with the deal, highlighting “meaningful gains” achieved through extensive negotiations

The Unifor members of Council 4000 and Local 100 had voted overwhelmingly in favour of job action, with 97% supporting a strike if an agreement could not be reached by January 1, 2025. Council 4000 represents over 3,300 workers in customer service, clerical roles and mechanical operations. While Local 100 represents approximately 2,100 workers, including mechanics and heavy equipment operators. They had been looking for job security with improved wages and working conditions in the deal.

Given the recent spate of labour disruptions and governmental orders that have affected Canada’s supply chain recently, it is nice to see a negotiated settlement that avoids any further disruptions.

The Canada Border Services Agency (CBSA) has introduced new requirements for marine carriers to obtain Carrier Codes through the CBSA Assessment and Revenue Management (CARM) system. This change replaces the previously used paper-based application process for obtaining a marine carrier code and bond. Per CBSA requirements, all carriers bringing vessels into Canada are required to have a valid Canadian Carrier Code.

The CBSA recommends simultaneously submitting the CARM registration and the Advance Commercial Information (ACI) program registration to reduce processing times.

Foreign marine carriers must first apply for a Canadian Business Number (BN) before proceeding with the carrier code application. Upon completing registration for the BN, a carrier code can be issued promptly.   Non-resident carriers must acquire their BN directly from the Canada Revenue Agency portal, rather than through the CARM portal.

Some of the key points to CBSA’s new CARM requirements:

• Marine carriers holding an existing, valid carrier code do not need to register in the CARM system.
• Carriers entering Canada for the first time and without an existing carrier code must register in CARM to obtain a code.
• Carriers wishing to transition from a non-bonded to a bonded carrier code must complete registration in the CARM portal to facilitate this change.
• Notably, agents can no longer apply for a carrier code on behalf of carriers, even if they are registered in the CARM portal.
• CBSA has discontinued the previous paper-based process for carrier code applications, and there is no longer a temporary code issuance process for carriers facing imminent vessel arrivals.

Full details on the updated requirements for obtaining a Carrier Code and bond through the CARM system can be found here.

Additionally, the CBSA has also provided specific onboarding steps for marine carriers, which include:

Onboarding to the CARM Client Portal
Transporter Enrolment

Source The BC Chamber of Shipping

A combination of back to back labour stoppages (Railway strike followed by Longshore Local 514 lock-out) have created a major backlog of vessels destined for the Port of Vancouver. In addition, we have been suffering with an unusually large amount of rainfall, which has slowed down the loading of grain and fertilizer vessels.

Currently all local anchorages in English Bay, Nanaimo, and the Southern Gulf Islands are effectively full.

The Harbour Master’s office is doing their best to keep Port operations fluid, but the congestion has resulted in some vessels having to drift outside the Pilotage area to await either a berth or an opening anchorage. We hereby warn all parties that there could be situations in the coming days or weeks that your vessels may not be able to arrive and tender – therefore plans should be made for Near Time Arrival or virtual NOR tendering.

In addition, we are about to experience another extreme weather event this evening November 19th and lasting until morning 20th. It has been deemed a Bomb Cyclone by the meterological people and will cause strong outflow winds and some heavy rain. Some departing ships have been begging for an anchor for shelter until the storm passes.

We have let all vessels under our agency control know about this evening’s storm in an effort to make sure they are prepared in case they find themselves in an anchor-drag situation. We are aware that the Pacific Pilotage Authority and the BC Coast Pilots are on standby this evening to assist as best possible to attend vessels that have dragged anchor.

Also in the near term and due to the anchor congestion, the Harbour Master’s office has made it clear that they will be prioritizing anchor spots for vessels that are coming into the Port of Vancouver for Vancouver business. Vessels calling for bunkers only…or calling for fumigation of cargo loaded in Prince Rupert….or for any kind of non-cargo related operations will only be granted anchorage spots at the Port’s discretion. This is a grave departure from previous policy. Any operator or owner that is considering a visit to Vancouver for non-cargo reasons should be prepared for possible disappointment. We are hopeful that the situation can return to normal whereby our Port is open for any business in the near future when the congestion eases.

Late September saw Wolverine Terminals debut its bunkering services in the Port of Prince Rupert, by fueling the MV Belatlantic. Wolverine Terminals announced the start of commercial operations at its newly constructed state-of-the-art marine bunkering facility last week. This major milestone positions Wolverine Terminals as a key player in the Western Canadian marine logistics sector, providing innovative and environmentally responsible terminal services. Located in Prince Rupert, British Columbia, the facility is designed to support the growing demand for efficient fuel handling and storage solutions across Western Canada and North America. Wolverine Terminals offers transloading, marine fuel storage, and distribution services, significantly improving supply chain efficiency for fuel products such as marine-grade diesel and very low sulphur fuel oil (VLSFO).

Source: Chamber of Shipping

The Port of Vancouver has released its 2024 mid-year cargo statistics showing strong performances in container, auto, and liquid bulk sectors, leading to a record 62 million metric tonnes (MMT) of international trade, despite an overall slight decline in cargo volumes due to a 15% drop in domestic goods. Total trade volumes reached 75.5 MMT, showing less than a 1% decrease compared to the same period in 2023.

Dry bulk volumes decreased 6% in the first six months of 2024 compared to the same period last year, as last year’s record Canadian commodity export volumes eased due to lower Prairie crop yields, supply chain disruptions and lower global prices. This included grain decreasing 5%, coal decreasing 1% and fertilizer decreasing 10%. 

Here are some key statistics:

June 2024          June 2023     % of growth

• Overall cargo volumes declined 1% to 75.5 MMT, compared to the first half of 2023
• Container quantities increased 14% to 1.8 million twenty-foot equivalent units, or TEU. Import quantities (inbound laden) increased 19% to 930,300 TEU, while export quantities (outbound laden) increased 4% to 412,100 TEU. Empty container volumes increased 12% to 426,600 TEU.
• Bulk liquid tonnage up 43% to 7.0 MMT. Petroleum product volumes increased 53% to 5.8 MMT and canola oil volumes increased 42% to 0.4 MMT.
• Auto volumes increased 14%, reaching a record of 249,043 units
• Cruise passengers increased 13% to a record 554,546, while cruise ship visits were up 1% at 135
• Bulk dry cargo decreased 6% to 47.7 MMT, including coal down 1% to 21.1 MMT, grain down 5% to 14.1 MMT and fertilizer down 10% to 5.8 MMT
• Breakbulk cargo decreased 14% to 8.0 MMT. Forest products volumes decreased by 21% to 4.7 MMT, while metals increased by 1% to 0.7 MMT

Their full statistical report can be seen here.

Transport Canada has finally begun their national trial, running from September 2024 to September 2025, to assess the viability of remote inspections for vessels loading grain and concentrates in Canadian ports. It is intended to compare the effectiveness and efficiency of remote versus physical inspections to ensure compliance with the Cargo, Fumigation and Tackle Regulations (CFTR) and maintain safety standards. The trial, originally announced in 2022, will involve both remote and physical inspections by Transport Canada Port Wardens to directly compare the two methods.

Selected vessels will be contacted prior to their arrival in port and the Master will be requested to submit documentation, photos, or videos via their agent to facilitate the remote inspections. Compliance with Marine Safety Inspectors’ requests will streamline the process.

At the same time Transport Canada has introduced a new, simplified Grain Stability Calculation Form (82-0579B) for Type II (Bulker) vessels loading grain for export in Canada. Type II vessels, with approved grain stability booklets that meet the requirements of Articles 6.3.1 and 6.3.2 of the International Grain Code, must use this simplified form. The new form will now also correspond more closely with the U.S. National Bureau of Cargo’s form and will provide necessary data such as volumes, centres of volume, and heeling moments. Given some the oddities of the old Canadian forms in comparison to those of other nations, this will be welcome news for many Captains.

The fall season in Vancouver is marked annually by the browning of the leaves, the return of the rain and the Pacific Pilotage Authority’s (PPA) announcement of impending fee increases. And on September 27, the PPA released their latest Notice of Revised Charges that will take effect on January 1, 2025.

Per the PPA announcement, “To maintain financial self-sufficiency in this environment and meet its commitments, the Authority proposes an increase in the hourly and unit fee rates for 2024 of 2.5%.” This increase to fees is based on expected increases to posted rates of inflation and will be needed to cover the ensuing increases to both the PPA’s operating and fixed costs. The Authority’s contract with the BC Coast PIlots is directly linked to changes in the rate of inflation and is measured by the Consumer Price Index.

Over the past few years, we have seen pilotage costs here increase to the point that they are now about equal with tugs costs for the biggest expense on vessels port calls to Vancouver.

The deadline for stakeholders’ input to the proposed fee increases is Oct 27.

The PPA’s full notice can be seen here.

On October 7, the Grain Workers Union Local 333 ratified a new collective agreement with the Vancouver Terminal Elevators Association (VTEA), with approximately 67% of union members voting in favor. The strike, which began on September 24 when about 650 workers walked off the job, affected six terminals in Vancouver; Richardson, Cargill, Alliance Grain, G3, Cascadia and Pacific.

Fortunately both sides, with the help of a federal mediator, were able to come to a relatively swift agreement and a tentative deal was struck four days later, with grain workers returning to work on September 28. The new contract will run through to December 31, 2027 and will quell fears over significant export losses during the current Prairie harvest season. The Grain Growers of Canada had estimated $35 million in losses from each day the strike continued.

This deal, along with the longshoreman’s new contract last summer and the recent Canada Industrial Relations Board decision to impose binding arbitration on the Teamsters Rail Conference and both national railways, Canadian National and Canadian Pacific Kansas City will hopefully lead to period of tranquility for the Port of Vancouver.