Imports Fuel POLB Container Volume Increase

By Mark Edward Nero

Rising imports fueled higher container traffic at the Port of Long Beach in June, leading to a 3.4 percent overall volume increase over the same month last year, according to newly released data.

According to the port’s data, Long Beach terminals handled 603,339 twenty-foot-equivalent units last month. Of those, 313,526 were inbound containers, a gain of 5.5 percent year-over-year.

Exports were flat for the month at 128,099 TEUs, 0.1 percent lower than June 2015, but the number of empty containers moved edged up to 161,714 TEUs, a 2.2 percent increase.

Year-to-date total volume is down 0.6 percent compared to the first six months of 2015.

Although US warehouse inventories have been lingering at high levels since 2014, contributing to a sluggish ocean trade environment, West Coast ports have been experiencing import gains in recent months.

“Our improving cargo volumes reflect the confidence that customers continue to have in the Port of Long Beach,” CEO Jon Slangerup said in a statement. “This is an encouraging sign despite soft consumer demand, high inventory levels and an evolving maritime industry as shipping lines continue to consolidate vessel services.”

In the past two years, a slow first quarter has been followed by a rebounding second quarter. US first quarter gross domestic product growth has been revised upward to 1.1 percent from a previously estimated 0.8 percent. second quarter growth could top two percent, economic experts have suggested.

The Port of Long Beach’s latest monthly cargo numbers and more details are available at www.polb.com/stats.

POLA Monthly Cargo Drops 6 Percent

By Mark Edward Nero

Cargo volumes at the Port of Los Angeles fell 6.3 percent last month compared to a strong June in 2015, according to newly released data.

June’s loaded imports dropped 3.5 percent to 355,622 TEUs, while loaded exports fell 2.1 percent at 140,561 TEUs. Combined, total loaded volumes slipped 3.1 percent to 496,184 TEUs. Along with a decrease in empty containers of 14.2 percent, overall June volumes were 676,006 TEUs, a decrease of 6.3 percent compared to June 2015.

Despite the declines, however, overall cargo volumes at the POLA increased 5.9 percent for the first six months of 2016 compared to the first half of 2015. The decrease in June volumes notwithstanding, year-to-date volumes registered at 4,133,575 TEUs, compared to 3,903,521 TEUs in the same six-month period last year.

“We’re encouraged with year over year growth in the first half of 2016, even though June was not as robust as the same period in 2015 due to industry trade patterns,” Port of L.A. Executive Director Gene Seroka commented.

Current and past data container counts for the Port of Los Angeles may be found at: http://www.portoflosangeles.org/maritime/stats.asp

MARAD Issues Report on Hybrid Tug Battery Safety

By Mark Edward Nero

The Maritime Administration on July 1 announced the availability of a report evaluating the design and construction of new battery components, as well as the risks and benefits of battery use in the power plant of a hybrid tugboat.

The assessment, which was conducted after a battery-related fire aboard a hybrid tug, looks at the benefits and risks associated with the reinstallation of batteries as part of the vessel’s hybrid power system.

In August 2012, an explosion and fire occurred in one of the lithium-polymer batteries on the Foss Maritime hybrid tug Campbell Foss, and subsequent to that fire, Foss removed the remaining batteries from the vessel and all of the lead-acid batteries on its other hybrid tug, Carolyn Dorothy. Campbell Foss was returned to service in diesel configuration without batteries, and Carolyn Dorothy was returned to service in a modified hybrid configuration that didn’t require the use of batteries.

The newly-released assessment showed that a refined design with explosion protection, structural separation from occupied spaces, specialized battery controls, and shutdown protocols improved the risk profile for the hybrid power system.

The report also demonstrated that without the battery array, the hybrid system would not achieve the tug’s full performance requirements nor the emissions and fuel consumption reductions made possible by hybrid technology.

However, anecdotal evidence suggests, according to the report, that the use of batteries in a hybrid tug system poses an impediment to more widespread adoption.

The document was developed through a partnership with Foss Maritime with funding from MARAD’s Maritime Environmental and Technical Assistance (META) Program. The META program’s designed to assist maritime stakeholders in addressing key environmental issues facing the industry.

The full report can be found at http://www.marad.dot.gov/wp-content/uploads/pdf/Hybrid-Battery-Refit-Final-Report-with-pics.pdf.

USCG Fines 2 Puget Sound Ferry Jumpers

By Mark Edward Nero

Two men who intentionally jumped off the passenger vessel Spirit of Seattle last month face up to penalties of $2,500 each after being issued notices of violation, the captain of the port for the US Coast Guard’s Puget Sound sector said July 6.

Coast Guard investigating officers said that Nathan Keel of Tempe, Ariz. and Chanda Jatinder of Mesa, Ariz., were aboard the underway vessel on June 5 when they jumped over the rail and into the water.

Crewmembers from the vessel, which had more than 300 passengers aboard, immediately responded and recovered the individuals, according to the Coast Guard. Neither of the men suffered injuries.

Coast Guard officials have said they’re seeking penalties for violation of section 46 USC 2302 (a) of the Code of Federal Regulations, regarding interfering with the safe operations of a vessel so as to endanger the life, limb or property of a person.

“Intentionally jumping off a commercial vessel is extremely dangerous and diverts the crewmembers’ attention away from the safe operation of the vessel,” Puget Sound Sector Captain of the Port Joe Raymond said. “I have directed my staff to investigate each of these incidents and issue violations as appropriate.”

Seaport Alliance Adds 2 Leaders

By Mark Edward Nero

The entity that operates the marine cargo operating partnership between the ports of Seattle and Tacoma announced the hiring of two new managers on July 11.

Zachary Thomas has joined the Northwest Seaport Alliance to lead the Operations Service Center, and Bob Meyer has been promoted to lead port operations and manage safety.

Thomas, holds a bachelor’s degree in nautical science from the Marine Maritime Academy, brings over 23 years of experience in the maritime industry to his new position, according to the Seaport Alliance. Prior to joining the NWSA, he held a variety of positions with Ports America, most recently as general manager in Tacoma since 2014.

In his new position, he is to lead efforts to partner with stakeholders across the supply chain to improve the efficiency and cost-competitiveness of the Puget Sound gateway.

Meyer, who holds a bachelor’s degree in marine transportation and business administration from the Maritime Academy, joined the Port of Tacoma in 2014 to manage the non-container facilities, a position that transitioned to the Northwest Seaport Alliance when the ports of Seattle and Tacoma formed the marine cargo operating partnership in August 2015.

In his expanded role, Meyer is to direct the operations at all port-operated terminals and rail yards, as well as the Seaport Alliance’s safety program.

Before joining the NWSA, Meyer spent nearly a decade as a merchant mariner and several years with Wallenius Wilhelmsen Logistics, most recently running the company’s Port of Brisbane terminal.

LA-LB Ports Container Fees Rising

By Mark Edward Nero

On July 8, the 13 marine terminal operators at the Los Angeles-Long Beach port complex announced a 1.9 percent increase in the traffic mitigation fee at the ports. Beginning Aug. 8, the container fee will be $70.49 per twenty-foot equivalent unit or $140.98 per forty-foot container.

The increase goes toward sustaining continued operation of off peak gate hours amid labor cost increases, according to the terminal operators collective.

The adjustment falls under the rules of the West Coast Marine Terminal Operator Agreement, which state that the container fee shall be adjusted annually to reflect increases in labor costs based on maritime labor cost figures.

The Pacific Maritime Association negotiates and administers maritime labor agreements with the International Longshore and Warehouse Union.

PierPass, a not-for-profit company created by marine terminal operators at the LA and Long Beach ports to address multi-terminal issues such as congestion, air quality and security, launched the off peak hours program in 2005 to reduce cargo-related congestion on local streets and highways around the ports.

The “OffPeak” program established regular night and Saturday work shifts to handle trucks delivering and picking up containers at the 13 container terminals in the two adjacent ports.

Using a congestion pricing model, PierPass charges a fee on weekday daytime cargo moves to incentivize cargo owners to use the OffPeak shifts. The fee also helps pay for the labor and other costs of operating the OffPeak shifts.

According to an analysis by maritime industry consultants SC Analytics, the costs incurred by the terminals to operate the OffPeak shifts in 2015 totaled $236.2 million. During the year, the terminals received $168.9 million from the traffic mitigation fee, offsetting only part of the OffPeak program’s costs.

Since 2005, OffPeak has taken more than 35 million truck trips out of daytime Southern California traffic and diverted them to less congested nights and weekends. About half of all port truck trips now take place during the OffPeak shifts, according to terminal operator data.

Holland America Wins Seafarer of Year Award

By Mark Edward Nero

The captain and crew of Holland America Line’s Seattle-based cruise ship ms Veendam were named “Seafarer of the Year” at the 2016 Lloyd’s List North American Maritime Awards for the rescue of a pilot who ejected from his aircraft in the Pacific Ocean, Holland America said July 5.

The “Seafarer of the Year” award recognizes the skills, bravery and professionalism that seafarers demonstrate daily. On Jan. 25, 2015, Veendam rescued a pilot 225 miles off the coast of Maui, Hawaii, who had to ditch his single-engine aircraft after running out of fuel.

The plane had a parachute system and the pilot was able to safely escape into a life-raft where he was retrieved by Veendam.

Holland America Line received the award at a ceremony in New York. Lloyd’s List called Veendam’s award one of the “stand-out moments of the gala dinner.”

“Whenever the crew of a vessel are actively involved in a rescue it shows the capabilities and the humanity of the profession,” said Sander Wielemaker, an area manager for award sponsor DNV GL, an international certification body and classification society. “The master and crew, through coordination with the authorities, were able to save the life of the individual and no doubt add a moment of out-of-the-ordinary excitement for the passengers of the cruise ship.”

“To be honored for saving a life is both humbling and rewarding,” Holland America Line President Orlando Ashford said.

Holland America Line has said it participates in rescues at sea whenever called upon. Also in 2015, ms Zuiderdam rescued eight crewmembers from a sinking vessel in the Caribbean, while ms Zaandam came to the aid of seven stranded crewmembers at the Arctowski Polish research station at King George Island in Antarctica.

Also during the awards, Crowley Maritime was named ocean-going ship operator of the year, and the Alaska Prevention & Response Network received the “Safer, Cleaner Seas Award.”

The full list of awardees can be seen at http://lloydslistawards-northamerica.com/2016-winners/