Tuesday, January 6, 2015

PMA Accuses ILWU of Withholding Labor

By Mark Edward Nero

The Pacific Maritime Association on Jan. 3 accused the International Longshore & Warehouse Union of engaging in a work slowdown in order to gain leverage in the ongoing contract talks between the two parties.

“The union, and Local 13 in particular, has led a sustained campaign over the last two months to withhold critically-important, skilled longshore workers from their shifts on the docks,” the PMA said in a statement that alleged that crane operators, who receive and deliver containers, were being held back.

“By withholding them, the union has negatively impacted cargo-handling operations throughout Southern California,” the PMA said while alleging that the union’s work actions started at the end of October, when contract talks began to stall.

The PMA said it estimates that the average number of shifts for qualified crane operators has dropped from an average of more than 110 per day to under 35 daily, something that has resulted in “tens of thousands of containers available for discharge sitting on the docks at the twin ports.”

Employers put in orders for the number of operators needed, and the ILWU unilaterally cut back those orders by two-thirds, the PMA claims.

“Removing qualified yard crane drivers from terminal operations is the equivalent of a football coach sending out 10 players and no quarterback. You can’t run the play effectively,” PMA spokesman Wade Gates said. “The congestion in the terminals is near a breaking point.”

The PMA says that in order to focus efforts on clearing containers from terminal yards and get them moving to their final destinations, it has been reducing the number of workers ordered to unload ships on night shifts, thereby avoiding the prospect of creating gridlock that the additional unloading of ships would create.

“It makes no sense to maintain the pace of removing containers from ships when there’s no room for them on the terminals,” Gates said. “If a parking lot were full, you would clear out empty spaces before bringing in more cars. The same rule applies here.”

“It’s not solely the number of longshoremen the union is making available that matters, it’s the type of workers themselves,” Gates said. “Without qualified yard crane drivers who play a critical role in loading and offloading cargo containers from trucks, the congestion problem is made far worse at terminal yards.”

In response, the ILWU on Jan. 3 denied that it has been withholding labor and said the congestion issues at the Southern California ports were due to larger vessels bringing in an ever-increasing number of containers, plus a shortage of chassis’ used to haul the containers to and from the port terminals.

The PMA and ILWU have been in negotiations since May 2014. The previous six-year labor pact between the two sides, which covered almost 20,000 longshore workers at 29 ports up and down the West Coast, expired July 1.

Marcon Brokers Sale of Two Crowley Tugs

By Mark Edward Nero

Coupeville, Washington-based shipbroker Marcon International says that it has facilitated the sale of two Crowley Marine Services 3,500 BHP twin screw, low profile harbor docking and coastwise tugs Spartan and Saturn to private US West Coast buyers.

Both Red Stack tugs were originally built for Crowley in 1969 by Mangone Shipbuilding of Houston.
The 91-foot by 29-foot  Spartan and Saturn were built as slightly larger and higher horsepower versions of the ApolloJupiter and Hercules built by Mangone two years earlier that also featured a low profile house and large aft deck.

The Spartan and Saturn are each powered by a pair of CAT 3516 diesels totaling 3,500 BHP at 1,800 RPM with Lufkin 7:1 gears and fixed pitch, 5-blade stainless steel open props developing a bollard pull of 54,800 lbs ahead and 40,900 lbs astern. Both boats were repowered from CAT D399s in 1994.

Towing gear consists of a Skagit RB-90 double drum waterfall winch with a capacity of 1,600 feet of 1.75-inch wire on each drum plus a 600 feet of 9-inch circ. emergency tow line.

The tugs were working in San Diego at the time of the sale and are being replaced by more modern tugs.

Marcon International, which acted as sole broker in the sale, says it has handled a number of sales and purchases for the buyer as well as over a hundred sales and purchases for seller.

Tacoma Port Accepting 2015 Summit Award Nominations

By Mark Edward Nero

The Port of Tacoma said Jan. 5 that it has opened nominations for its annual Summit Awards, which recognize customers and tenants for excellence and achievement.

The awards, which will be presented at a March 25 breakfast, recognize three categories of leadership:
  • Business Magnet: a port customer or member of the supply chain – shipper, transportation or logistics service provider, developer – recognized for business development efforts and investments that led to a recognizable increase in business volume or new business opportunities for the port and have a positive economic effect for the citizens of Pierce County.
  • Livable Community: a port customer or tenant recognized for a project, program or initiative that demonstrated the business community’s positive contribution to Pierce County through social responsibility. Criteria include philanthropy and charitable giving, community service and employee volunteering, community engagement and outreach and employee development.
  • Environmental Stewardship: a port customer or tenant recognized for a project, program or initiative that supported Pierce County’s sustainability and honors biodiversity and the interconnected nature of industry, people, wildlife and natural systems.

Recipients will be chosen by a panel of community and business leaders led by a Tacoma port commissioner.

Nomination forms and information are available at www.portoftacoma.com/summits.
Nominations are due by 5 p.m. Feb. 13. Completed forms can be emailed to lkvidera@portoftacoma.com, faxed to (253) 593-4534 or mailed to: Port of Tacoma Summit Awards, P.O. Box 1837, Tacoma, WA 98401-1837.

Updates about the awards and the annual breakfast can be received by subscribing to the port’s Summit Awards email list athttps://public.govdelivery.com/accounts/WAPT/subscriber/new?topic_id=WAPT_55

Oakland Port: Weekend Gates Alleviating Congestion

By Mark Edward Nero

New Saturday and Sunday gate hours are putting a dent in an extraordinary cargo buildup at the Port of Oakland, according to data. More than 1,000 US import containers have moved out of its marine terminals every weekend for the past month, the port revealed Jan. 5.

The largest marine terminal operators at the port have opened weekend gates since Thanksgiving. It is cargo that would otherwise move weekdays when terminals and harbor truckers strain to manage soaring volume. It was an unusual move precipitated by an unprecedented cargo surge in Oakland.  Import volume has increased in each of the past three months compared to previous year totals.

“The weekend moves are only a fraction of what we send out the gates Monday-through-Friday so they’re not the complete answer to our big buildup,” port Maritime Director John Driscoll said.  “But every little bit helps while we're working to keep cargo flowing.”

Among the reasons the port cites for the increase in volumes: increased US trade with Asia; Southern California port congestion; and labor-management negotiations disrupting West Coast port operations.

Three-to-nine vessels anchor in San Francisco Bay every day awaiting berths, according to the Port of Oakland.

Terminal operators are expected to continue moving containers on Saturdays and Sundays while demand persists, which is expected to be another month as U.S. shippers import cargo before Lunar New Year factory shutdowns in Asia.

Tuesday, December 30, 2014

Nicaragua Breaks Ground on Panama Canal Rival

By Mark Edward Nero

The Central American country Nicaragua broke ground Dec. 22 on a new Chinese-backed shipping canal that aims to rival the Panama Canal. The $50 billion, 172-mile canal could be operational by the year 2020, according to the Nicaraguan government.

The Nicaragua Canal aims to connect the Caribbean Sea, and therefore the Atlantic Ocean, with the Pacific Ocean. The proposed route starts from the mouth of the Brito river on the Pacific Ocean side, passes through Lake Nicaragua, and ends in the Punta Gorda river on the Caribbean.

The proposed canal would be up to 1,706 feet wide and 90 feet deep. By contrast, the 48 mile-long Panama Canal is 110 feet wide, and 41.2 feet in depth.

Construction of the new waterway is to be run by Hong Kong-based HK Nicaragua Canal Development Investment Co., commonly known as HKND Group; the company is run by Chinese telecom mogul Wang Jing.

“This moment will surely go down in history. I announce the start of work on the great canal of Nicaragua,” Wang Jing said during a Dec. 22 groundbreaking event, which was held on Nicaragua’s Pacific coast.

Despite the groundbreaking and the start of work on Dec. 29, excavation work isn’t scheduled to begin until the second half of 2015.

Although a Chinese company is managing the project, Nicaraguan officials have maintained that the Chinese government itself isn’t behind the project and that the canal is expected to receive international funding.

“The Chinese haven’t arrived in Nicaragua with occupying troops,” Nicaragua President Daniel Oretga said regarding the canal in a speech in late December.

Royal Caribbean Retrofitting 19 Ships

By Mark Edward Nero

Royal Caribbean Cruises says it will retrofit 19 of its cruise ships with exhaust gas scrubbers beginning early next year.

The systems, technically known as “advanced emissions purification systems,” or AEP, are expected to remove more than 97 percent of the sulfur dioxide emissions generated by the ships’ diesel engines, according to the cruise line.

Beginning in January 2015, installation will take place on 13 Royal Caribbean International ships and six Celebrity Cruises ships during scheduled drydockings and while ships are in service. While preliminary work has begun on several of the ships receiving AEP systems, most will take place between 2015 and 2017, according to the cruise line. Each installation is expected to take about eight months. Royal Caribbean says it is performing the work in order to stay in front of any forthcoming international emissions standards and also to be in compliance with existing standards.

The decision to install purification systems instead of switching to a fuel with a lower sulfur content will ensure that Royal Caribbean’s ships can be compliant everywhere they sail, according to the company.

Royal Caribbean Cruises has been involved in development, testing and planning for the use of advanced purification systems technology since 2010. Two newly built ships that entered into service in 2014, Royal Caribbean International’s Quantum of the Seas and TUI Cruises’ Mein Schiff 3, were among the first cruise ships to be built with AEP systems installed during initial construction. Royal Caribbean International’s Liberty of the Seas has been operating one of its six engines with a retrofitted AEP system for two years.

AEP systems ‘scrub’ exhaust gases by injecting high volumes of water spray into the exhaust stream, removing more than 97 percent of sulfur dioxide emissions.

“AEP technology for maritime vessels is very new, and we expect that by utilizing multiple technological solutions to accommodate the differences among our ships, additional development will ultimately help industrialize AEP technology even more,” Royal Caribbean Cruises President and COO Adam Goldstein said in a statement.

New Towing Winch Design

By Mark Edward Nero

More than a decade ago, Seattle-based Western Towboat Co. purchased a new towing winch from another Seattle-based company, equipment developer Rapp Marine (formerly Rapp Hydema), for a new tugboat Western was building at the time, the Gulf Titan. Since then, Rapp Marine has manufactured several towing winches for Western Towboat and a long-term working relationship has been maintained. In recent years, Western Towboat has increasingly moved toward building its own tow winches, but earlier this year the company began working with Rapp Marine on a groundbreaking winch prototype.

The two companies began talking about the project about eight months ago, Rapp Marine Northwest engineering and production manager Dan Markovic said.

"We made a preliminary proposal and they liked it," he explained. "We offered to work together on it, and we applied both Western Towboat's and our solutions into our design and engineering."

What makes the prototype winch different is the level of expertise that both Rapp and Western Towboat are pouring into it, Markovic said.

"They told us what features they would like to have on the winch, so we basically used their experience as the end user alongside our experience as the manufacturer and designer of the equipment. We believe that we came up with a great product for the towboat market," he said.

Western Towboat differs from some other West Coast towing companies in that they build many of their own boats and other equipment, as well as perform much of the maintenance on that equipment, as opposed to other companies that send their equipment out for repairs and maintenance.

"The people here, the guys that build the boats and build the winches also do the maintenance on them once they're done, so it kind of makes things easier for everybody to be able to maintain it once it's done, rather than have something designed by a naval architect or something that way," the company's co-owner, Ric Shrewsbury, explained. "Our guys are able to do more and more of that type of thing and redesign things so that it's easier to maintain afterward."

Shrewsbury said that although the prototype winch will be new, it'll include elements of past winch designs.

"We're using their drive system on a winch that we have built in the past and we're building it as a double drum winch this time," he said. "We've kind of redesigned the back end of one of their winches and, between our people and their people, are kind of redesigning this winch a little bit."

Shrewsbury said that his company likes to "take the best of all worlds" and use what works, with one example being offset pins.

"We like the offset pins so that we can wrap our chain right up under a tow wire," he explained. "If the tug has to carry around a 90-foot piece of three and a quarter inch chain or three-inch chain they can just wind that right on top of the drum rather than have that all over the back deck."

Regarding the Rapp Marine prototype, the main drum capacity is more than 3,200 feet of two-and-a-quarter inch steel cable, with an additional 2,700 feet of two-inch cable stored onto the smaller drum. The pull at the first layer is rated at 25 metric tons.

The Rapp four-motor hydraulic drive is equipped with three speed steps, providing speed range from 30m/min up to 124m/min.

"For our winch division, this product is unique," Markovic said. "This is the first one, and is custom made for Western Towboat.

The project consists of a sole prototype, and once it is perfected, Rapp plans to open it for sale to other customers.

"This is a huge winch," he says. "It's quite a project."

Under the agreement with Western Towboat, although both companies are putting in resources, only one will retain ownership.

"This is a Rapp product. Western Towboat is working with us but this remains Rapp property, 100 percent," he said. "We hope that many other winches will follow."

Rapp Marine has not talked about the cost of designing and building the prototype, with Markovic saying that his company will wait until a later date.

"We are putting a lot of our time into this deal that we are not charging. In order to calculate the cost, I think you would have to wait until the project is finished and then we will see where we are standing with that," he said.

As far as the completion date, it's expected sometime in early 2015.

"We've been working on it for quite a while because we have time," Markovic said. "Since we did not have to rush, we wanted to make a complete, 100 percent product. You'll never get to 100 percent, but we want to get as close as possible."

He said that taking the time to get things right is something that's very important to the success of the company's products and the company as a whole.

Rapp Marine, which is headquartered in Norway, has had a presence in the Pacific Northwest since 1980. It has been most involved in equipment for fishing fleets, but the company has also delved into other fields, such as scientific winches, workboat winches and tug winches. Rapp has recently delivered deck machinery for National Oceanic and Atmospheric Administration and Alaska Region Research Vessels, and has become a supplier of winches and deck cranes for Coos Bay, Oregon-based towing company Sause Bros.

"We understand that the winch is a working tool for the vessel; if the winch does not operate, the complete vessel may be out of action," Markovic said. "We pride ourselves in being flexible regarding customer's needs, so we don't offer 'shelf' products. Each of our winches is customized in a way to meet specific customer's needs."