Annual Report July 2015- July 2016 Table of Contents

ANNUAL REPORT JULY 2015- JULY 2016 TABLE OF CONTENTS

MEMBERS 2 BOARD OF DIRECTORS 3 ADDRESS FROM THE CHAIR 4 PRESIDENT’S REPORT 5 TRADE AND TRANSPORTATION POLICIES 7 CUSTOMS ISSUES 9 PILOTAGE 11 ENVIRONMENTAL ISSUES 13 COMMITTEES 15 COMPANIES REPRESENTED BY FEDERATION MEMBERS 16 AFFILIATE MEMBERS 18

THE SHIPPING FEDERATION OF CANADA is the preeminent voice of the owners, operators and agents of ships involved in Canada’s world trade. The ships represented by our members carry the imports and exports that are so essential to the Canadian economy, calling ports from Atlantic Canada to the St. Lawrence and Great Lakes to the West Coast. MEMBERS

Aegean Maritime Inc. H.E. Kane Agencies Ltd. Ocean Remorquage Montreal Inc. Anglo-Eastern Ship Management Ltd. Hampton Ship Agency OceanCrest Transport Inc. APL (Canada) Ltd. Hanjin Shipping Oceanic Tankers Agency Ltd. ArcelorMittal Canada Hapag-Lloyd (Canada) Inc. OOCL (Canada) Inc. Atlantic Container Line Holmes Maritime Inc. Pacific Northwest Ship and Cargo Services Atship Services Ltd. Inchcape Shipping Services Poros Shipping Agencies Inc. Bay Shipping Inc. Iron Ore Company of Canada Protos Shipping Limited Calypso Marine Agency K Line Canada Ltd. Ramsey Greig & Co. Limited Canada Steamship Lines - KD Marine Inc. A Division of The CSL Group Inc. Rio Tinto Laden Maritime Inc. Canadian Maritime Agency Ltd. Robert Reford Lake Superior Shipping Ltd. China Ocean Shipping Co. (COSCO) Scandia Shipping (Canada) Inc. Lower St. Lawrence Ocean Agencies Ltd. China Shipping (Canada) Agency Co. Ltd. SMK Tanker Agency Inc. Maersk Canada Inc. Churchill Shipping Sorel Maritime Agencies Inc. Mathers Marine Agency Ltd. CMA-CGM (Canada) Svitzer Canada Ltd. MCA Marine & Cargo Agencies Ltd. CMC-Currie Maritime Corporation Thunder Bay Shipping Inc. McAsphalt Industries Ltd. Colley Motorships Ltd. Tormar Inc. McKeil Marine Limited Cross Marine Inc. Trans-Oceanic Shipping Co. Ltd. McLean Kennedy Inc. Evergreen America Corporation Trillium Shipbrokers Ltd. Montreal Marine Services Inc. F.K. Warren Ltd. Wagenborg Shipping North America Inc. Montship Inc. Fednav Ltd. Wallenius Wilhelmsen Logistics Navitrans Shipping Agencies Inc. Americas LLC Fundy Shipping Ltd. Nirint Canada Yang Ming Shipping (Canada) Ltd. Furncan Marine Ltd. Norton Lilly International Zim Integrated Shipping Services GFY Marine Group North Atlantic Refining Ltd. (Canada) Co. Ltd. Gibson Canadian Global Agency Inc. NYK Line (Canada) Inc. Gresco Ltée

2 Shipping Federation of Canada • ANNUAL REPORT JULY 2015- JULY 2016 BOARD OF DIRECTORS

EXECUTIVE CHAIR VICE-CHAIR HONOURARY TREASURER COMMITTEE NORMA ROSE VOLKER KLUGE ROSS KENNEDY Canadian Maritime Zim Integrated Shipping Services Robert Reford Agency Ltd. (Canada) Co. Ltd.

FORMER CHAIR PRESIDENT

BRIAN MCDONALD MICHAEL BROAD Montship Inc. Shipping Federation of Canada

MEMBERS SONY AUCOIN GRACE LIANG WOLFGANG SCHOCH Iron Ore Company of Canada OOCL Canada Inc. Hapag-Lloyd Canada Inc.

COLIN CONRAD JOHN MEARS JIM STONEMAN F.K. Warren Ltd. Pacific Northwest Ship and Atship Services Ltd. Cargo Services Inc.

PAUL GOURDEAU ANDRE NEUENDORFF ROBERT VANDENENDE Fednav Ltd. Protos Shipping Ltd. Gresco Ltd.

LOU HOLMES ALLAN PHILP Holmes Maritime Inc. Laden Maritime Inc.

FRITZ KING RÉMI SAMAD Atlantic Container Line CMA-CGM (Canada) Inc.

3 Shipping Federation of Canada • ANNUAL REPORT JULY 2015- JULY 2016 ADDRESS FROM THE CHAIR

The past year was rife with opportunities and challenges for the We also continued to benefit from the expertise of our five stand- Shipping Federation of Canada. The difficult economic environ- ing committees, which played an active and crucial role in ad- ment and election of a new federal government were the key dressing subjects of ongoing interest to both Federation mem- drivers of our agenda, as we worked to meet members’ needs bers and the industry in general. More specifically, I would like from an operational and commercial perspective, while also ful- to thank the members of the Pilotage Committee, the Customs filling our role as the voice of the owners, operators and agents Committee, the Environment Committee, the Intermodal of ocean ships involved in Canada’s world trade. Committee and the Waterways Efficiency Committee for the time and expertise they shared throughout the year, and com- The Board of Directors held four meetings throughout the year mend them for their willingness to make a tangible contribution to discuss key developments in the ocean shipping industry and to the industry’s well-being. provide strategic advice on the Federation’s future policy direc- tions. Our Annual Meeting, held on May 6th, was followed by a The Federation was very pleased to welcome Trans-Oceanic half-day conference entitled “Ocean Shipping Outlook.” The con- Shipping Company Ltd. of Vancouver as a new core mem- ference featured a varied and dynamic panel of speakers, and ber this past year, as well as Marine Press of Canada Inc., Aon NORMA ROSE was opened via video link by then Transport Minister Lisa Raitt. Reed Stenhouse Inc., Vilden Associates Inc., the St. Lawrence CHAIR OF THE BOARD OF DIRECTORS This was the Federation’s fourteenth conference since 2000, and Seaway Management Corporation, and Richardson International the event was once again an important means of engaging with (Quebec) Ltd. as new affiliate members. This brings our total members and other marine industry stakeholders. membership numbers to 73 core members and 32 affiliate members. On behalf of the entire Board of Directors, I would like to The Federation’s District Committees continued to do an ex- extend a warm welcome to our newest members and to thank cellent job of addressing subjects that are of concern to local our existing members for their ongoing confidence and support. members while keeping the Board apprised of developments with potentially national impacts. On behalf of the entire Board, As my two-year term as Chair comes to an end, I would like to I would like to thank the members of the Maritimes District take this opportunity to express my gratitude to my fellow Board Committee, the Quebec North Shore District Committee, the members for their advice and support, and to the President and West Coast District Committee, the Ontario District Committee, his staff for their hard work and dedication. My tenure as Chair and the Newfoundland-Labrador District Committee – as well as has given me a deep appreciation of the work that the Federation their respective Chairs – for the valuable input they have added does on behalf of its membership, as well as the reputation it has to the Board’s deliberations. I cannot overstate the importance earned as the pre-eminent voice of the ocean ships that so ably of these Committees in helping the Federation represent the in- serve Canada’s economy. terests of all its members throughout Canada, thus ensuring its role as a truly national organization.

4 Shipping Federation of Canada • ANNUAL REPORT JULY 2015- JULY 2016 PRESIDENT’S REPORT

Although 2015 started out with indications of strong global As a result, we have been working to demonstrate how the economic activity, this early promise did not come to fruition. ocean shipping industry can be a key partner in helping the gov- Indeed, the year was marked by a significantly lower level of ernment deliver its new trade strategy, and helping the Minister growth in global GDP than in the previous five years, which was of Transport achieve his key priorities of improving marine safety, mainly due to a reduction in demand from China and the chal- increasing transportation efficiency, and formalizing a proposed lenges facing emerging economies. In the dry bulk market, the moratorium on crude oil tanker traffic on British Columbia’s Baltic Dry Index hit an all time low at the end of November, due north coast. With respect to the latter, the Federation attended primarily to an ongoing decline in Chinese coal imports, while a ministerial roundtable in Vancouver this past January, at which in the container market, the market imbalance worsened as the we drew particular attention to the system of international and size of the world fleet rose to a four-year high, while growth in national regulations that already governs tankers navigating in demand hit a three-year low. The only bright spot in all of this Canadian waters, as well as the tanker industry’s strong safety was in the tanker market, where both crude oil and oil products record on both the west and east coasts of Canada. We also high- enjoyed a strong freight market that was ignited by the drop in lighted the need to ensure that any measures undertaken by the oil prices that begin the previous year and supported by a rela- government remain within the international framework, and are MICHAEL BROAD tively low supply-side growth. Indeed, it was the best year for oil based on sound evidence and an objective assessment of the ef- PRESIDENT tankers since the market crash of 2008. fectiveness of the safety systems that are currently in place.

The election of a new federal government this past October The Federation was also part of a coalition of shipowners and marked the beginning of a new era in Canada and a shift in the operators that met with the Minister of Fisheries and Oceans and country’s priorities. Although the previous government’s agenda the Canadian Coast Guard earlier in the year. The key focus of over the last eight years or so was significantly shaped by a focus discussion was the future of the Coast Guard’s icebreaking fleet, on trade, the new administration appears to be taking a more which is in a precarious state and not well positioned to meet the nuanced approach. While trade and economic growth are cer- needs of increased marine traffic either north or south of 60. The tainly part of this government’s priorities, the economic agenda industry strongly urged the Minister to develop a comprehensive is now set in a context of climate change, clean energy, green and realistic plan for replacing the fleet, which includes securing investments, and ensuring that all Canadian businesses derive the necessary funding and establishing realistic and verifiable benefits from the country’s free trade agreements. timeline for the delivery of new icebreaking units. The availabil- ity of icebreaking services is of paramount importance to many of our members, and we will continue to pursue this issue with the Minister and colleagues in other relevant departments.

5 Shipping Federation of Canada • ANNUAL REPORT JULY 2015- JULY 2016 Pilotage – which is always near the top of or agenda – was a par- As we develop our agenda for the year ahead, we will be seek- ticularly contentious subject this year, particularly with respect ing to engage with the government on issues related to marine to cost and service issues in the Laurentian and Pacific regions, safety, the marine sector’s environmental profile, and the in- as well as the U.S. Great Lakes. Environmental issues also re- dustry’s overall competitiveness. We will also be involved in the mained high on our agenda, as we delivered several submissions consultations on the recommendations arising from the Canada to the Tanker Safety Expert Panel, which is now focused on the Transportation Act review, particularly as they pertain to mod- Canadian Arctic and on the development of regulatory regime ernizing the pilotage system, strengthening the Canadian Coast for the carriage of hazardous and noxious substances, and con- Guard, and introducing greater oversight into marine user fees. tinued to monitor the progress of the Ballast Water Management Convention, which has now been ratified by 47 countries repre- In addition to our work on policy and operational issues, we also senting 34.87 percent of global tonnage. continue with our efforts to strengthen our role as a national organization. Indeed, one of our most significant achievements Other subjects of interest during this past year included the over the past year has been the firm foothold we have estab- implementation of new container weighing rules mandated lished on the west coast, and the extent to which involvement in by the International Maritime Organization under the SOLAS west coast matters – from pilotage to customs to port and inter- Convention, CBSA’s introduction of new monetary penalties for modal operations - has become entrenched in our daily work. non-compliance with ACI requirements, and CBSA’s ongoing ef- This has served to not only strengthen the Federation from an fort to develop a system of mandatory electronic reporting for organizational perspective, but to also consolidate its role as the all partners in the trade chain, from carriers in all modes, to ter- pre-eminent voice of ocean shipping throughout Canada. minal and warehouses, to freight forwarders, to importers. We also continued to offer our Certificate in Marine Transportation, and were very proud to host a ceremony in October in which we awarded diplomas to our newest group of graduates.

6 Shipping Federation of Canada • ANNUAL REPORT JULY 2015- JULY 2016 TRADE AND TRANSPORTATION POLICY

CTA REVIEW AND CANADA’S LONG-TERM and sustainability, with particular focus on addressing cost and TRANSPORTATION AGENDA service issues related to the pilotage system, ensuring appropri- ate investment in marine infrastructure, mitigating the impact of The long-awaited report of the Canada Transportation Act Review marine user fees, and increasing the efficiency of Canada’s gate- Panel was tabled in Parliament at the end of February 2016, and ways and trade corridors. contained specific recommendations for each of the transportation modes, along with a series of more broadly-based recom- REPOSITIONING OF EMPTY CONTAINERS mendations on governance, gateways and trade corridors, the movement of grain, the northern transportation system, and Throughout the year, the Federation continued to press the transportation’s environmental impacts. We were pleased to government to introduce greater efficiency into the marine note that several of the marine-specific recommendations re- transportation system by liberalizing the repositioning of empty flected themes and/or build upon representations that we made containers between Canadian ports by foreign flag ships on a in our submission to the review panel and in other fora. These non-revenue basis, which is an activity that is currently pro- include the need for the government to provide a comprehen- hibited under the Coasting Trade Act. Our efforts in this respect sive plan to renew the Coast Guard’s icebreaking fleet, the need have been ongoing for several years, and began with the sub- to ensure that marine user fees do not act as an impediment to mission of a 2011 proposal to Transport Canada to carve out the sector’s competitiveness, and the need to move forward on the repositioning of empty containers between Canadian ports modernizing some aspects of the Canada’s Coasting Trade Act. from the definition of “coasting trade” provided in theCoasting Trade Act. However, rather than amending the Act accordingly, The report’s release was followed by the launch of a multi-lay- Canada decided to make this issue part of its negotiations on the ered consultation process on the future of Canada’s transporta- CETA (Comprehensive Economic and Trade Agreement between tion system, which is being led by the Minister of Transport and Canada and the European Union), where it became part of the is scheduled to last until mid September. The Minister has been negotiation package that enabled Canada to gain other trade very clear that although these consultations will be informed benefits in exchange. by the report of the CTA review panel, stakeholders should not feel constrained by its recommendations when providing Although the final text of CETA includes provisions that would input on the issues that are of interest and concern to them. permit the repositioning of empty containers by vessels that are The Federation has been an active participant in the engage- operated by EU enterprises, the agreement’s ratification has be- ment process thus far, and will submit a formal written brief to come increasingly uncertain as a result of the United Kingdom’s Transport Canada by mid-September. The key themes that will vote to leave the European Union. As a result, the Federation run throughout our brief revolve around competitiveness, safety has refocused it efforts on pursuing this issue through an

7 Shipping Federation of Canada • ANNUAL REPORT JULY 2015- JULY 2016 amendment to the Coasting Trade Act, which would extend the ability to reposition one’s empty containers to all vessels (and not just those operated by EU enterprises as required under CETA). Such action will also capitalize on Transport Canada’s effort to develop a long-term transportation agenda and the Canada Transportation Act review panel’s recommendations on Canada’s coasting trade regime, which provide a (very wide) opening for arguing in favor of loosening current restrictions and modernizing the regime overall.

NEW CONTAINER WEIGHING REQUIREMENT

The Federation devoted a considerable amount of time over the last twelve months to helping members prepare for the July 1, 2016 implementation date of the new SOLAS regulation requiring shippers to obtain the verified gross weights (VGM) of their loaded containers, and to transmit such weights to the master and terminal in sufficient time to be used in the vessel’s stow- age plan. Although the shipper’s obligation to provide correct container weights is not new (and indeed, is already contained in Chapter 6 of the SOLAS Convention), the new regulation takes this obligation much further by providing two specific methods by which such weights may be obtained and requiring all weighing to be done on equipment that has been calibrated and certi- fied by the national authority.

The Federation worked closely with ocean carriers, terminals, shippers and freight forwarders to ensure that all of the parties in the supply chain had the necessary arrangements in place to ensure the timely transmission of VGM information in a man- ner that does not impede the efficient flow of commerce, and maintained regular contact with Transport Canada on the de- partment’s enforcement approach to the new requirement. We also developed a VGM guidance document for ocean carriers which is designed to assist stakeholders in understanding the roles and responsibilities arising from the VGM requirement and provide a framework for ensuring compliance within a Canadian context.

8 Shipping Federation of Canada • ANNUAL REPORT JULY 2015- JULY 2016 CUSTOMS ISSUES

EMANIFEST ADMINISTRATIVE MONETARY PENALTIES

The Federation continued to collaborate with CBSA on the im- As a result of the new Reporting of Imported Goods Regulations plementation of the eManifest program, under which all part- that came into effect in May 2015, CBSA obtained legislative au- ners in the trade chain – from carriers to freight forwarders to thority to impose Administrative Monetary Penalties (AMPs) on importers – will ultimately be required to electronically transmit carriers who fail to comply with ACI reporting (which is an au- advance commercial information to CBSA. As ACI came into ef- thority the Agency did not previously have). A major issue arising fect in the marine mode in 2004 and in the air mode in 2005, from this new regime is that in cases involving container carri- the current phase of the program is mainly focused on highway ers in consortium arrangements, CBSA was issuing the penalty carriers, rail carriers, freight forwarders, and warehouse oper- to the master carrier as a matter of course, even when the AMP ators. Nevertheless, some of the program’s provisions, particu- was for an error or omission committed by a consortium part- larly those related to freight forwarders and the requirement ner using its own carrier code. The Federation made a number that they transmit electronic house bill information to CBSA, of representations to CBSA questioning the regulatory basis for will have a direct impact on the marine mode when they be- such a practice and raising serious concerns about its appropri- come mandatory this fall. As a result, the Federation and the ateness from a compliance and business perspective. As a result Canadian International Freight Forwarders Association (CIFFA) of our efforts, CBSA has agreed to impose a moratorium on the formed a working group at the beginning of 2016 to ensure issuance of AMPs in cases involving consortium arrangement that stakeholders have a common understanding of how these until it has had an opportunity to thoroughly review the issues new provisions will impact their current information flows and we raised. reporting processes. The group, which also includes representa- tives from the rail and terminal sectors, has worked closely with CBSA to identify and address specific issues of concern, and will continue to collaborate and exchange information over the coming months.

9 Shipping Federation of Canada • ANNUAL REPORT JULY 2015- JULY 2016 CONTAINER EXAMINATIONS

In the spring of 2016, CBSA initiated a pilot project at Vancouver’s three container terminals to test a new approach to container exams based on a “progressive examination model” (PEM). Under this model, containers would be referred for a full de-stuff only when risks could not be mitigated by less intrusive methods such as LSI imaging or on-dock exams. The objectives of the pilot project were to identify goods that image effectively and thus lend themselves to the LSI process, and to ensure that the LSI technology being used by CBSA could handle current and antici- pated container throughput levels. In the longer term, the results of the pilot project will also be used to assess the potential use of the PEM model not only at Vancouver but at other container ports across Canada as well.

Although the transition to a progressive exam model is a positive step in theory, the Federation has serious concerns over CBSA’s apparent intention to move the majority of LSI exams off the terminal and conduct them at the examination facility instead. We have expressed strong reservations about such a move, given that it would lead to significantly higher fees and delays, and negate the cost and efficiency gains that would otherwise flow from conducting fewer container de-stuffs. The Federation will continue to be involved in this issue over the coming months, with a view to ensuring that the commercial impacts of CBSA’s current proposal are fully understood and addressed.

10 Shipping Federation of Canada • ANNUAL REPORT JULY 2015- JULY 2016 PILOTAGE

Although pilotage is a subject that is always prominent on the LAURENTIAN REGION Federation’s agenda, it proved to be an especially contentious issue this past year, as we worked to address a variety of cost, ser- In the Laurentian region, the Mid St. Lawrence River Pilots intro- vice and governance issues in both eastern and western Canada duced unilateral changes to the process for ordering pilots for and across the border. daytime and nighttime navigation (the latter to come into effect in 2017), which were the result of a contractual negotiation U.S. GREAT LAKES and final offer selection arbitration. Given our view that it is un- acceptable for the users of pilotage services to be deprived of In the U.S. Great Lakes, the U.S. Coast Guard published a Notice their regulatory rights due to the outcome of a contractual nego- of Proposed Rulemaking last fall to increase pilotage rates by an tiation, we urged Transport Canada to address the situation and unprecedented 58 percent over the previous year, and to intro- ensure that the primacy of the regulatory regime with respect to duce a new methodology that further complicates the rate mak- safety and the rights of users under the regulations is maintained ing process overall. After the Federation and a coalition of mem- in the future. Meanwhile, judicial proceedings between the LPA bers and other stakeholders filed an objection to the proposal, and the Mid st. Lawrence River Pilots over the arbitration award the USCG issued a Final Rule in March authorizing an increase are still ongoing. Although the Federation had filed a motion to of approximately 28 percent and maintaining the proposed new intervene in these proceedings, this was rejected by the Federal rate-making methodology. The Federation and other members Court on the basis that the Federation did not meet the criteria of the coalition view this as a structurally flawed outcome and of intervenor. have asked the Assistant Commandant of the US Coast Guard to conduct a review of the new methodology with a view addressing its defects.

11 Shipping Federation of Canada • ANNUAL REPORT JULY 2015- JULY 2016 PACIFIC REGION

In the Pacific region, the Federation filed an objection with the Canadian Transportation Agency (CTA) with respect to the Pacific Pilotage Authority’s proposal to impose a $120 temporary surcharge per pilotage assignment from July 1, 2016 until December 31, 2017. Our submission to the CTA highlighted the fact that based on our review of the numbers, the PPA’s cash defi- cit position does not align with its proposal to recover $2.4 mil- lion from the industry as a temporary surcharge. As a result, we questioned whether the proposed temporary surcharge is fair and reasonable in terms of both the amount and time frame over which it would be collected. We are now preparing for a CTA hearing on this matter, which will be held in Vancouver in October 2016.

LOOKING AHEAD

In the longer term, the Federation will address cost and efficiency issues related to pilotage in its brief on Canada’s future transportation agenda. In particular, we will focus on ways of modernizing the governance of the current pilotage system, and of strengthening the pilotage authorities’ role as the primary managers and regulators of safe and efficient pilotage services in Canada. Towards that end, we will encourage the government to explore the possibility of amending the “final offer selection” process provided under the Pilotage Act, giving all pilotage authorities the choice of having employee or contract pilots in their region and allowing them to operate with both types of pilots in the same district, and considering alternatives to the current pilotage governance structure.

12 Shipping Federation of Canada • ANNUAL REPORT JULY 2015- JULY 2016 ENVIRONMENTAL ISSUES

BALLAST WATER MANAGEMENT

The International Maritime Organization (IMO) undertook a On the Canadian front, the federal government has been number of initiatives over the past year to support the imple- calling on its American counterparts to “maximize compat- mentation of the Ballast Water Management Convention. This ibility” between U.S. requirements and the provisions of the included revising the G8 guidelines for approving ballast water IMO convention, both in terms of testing methods (including the management systems, developing a roadmap for implementa- MPN method for UV systems) and the actual approval of treat- tion, and developing port state control guidelines. Despite this ment technologies. Canada will also need to amend its Ballast flurry of activity, the convention is not expected to enter into Water Control and Management Regulations to implement force before the latter part of 2017 at the earliest, (i.e. months the convention. after the threshold of 35 percent of the world merchant fleet has been reached). As of early June 2016, the convention had been ENERGY EFFICIENCY AND REDUCTION ratified by 34.87% of the world fleet. OF GHG EMISSIONS

The challenge of implementing ballast water treatment technol- At the international level, the maritime industry faced increasing ogies onboard vessels continues to be heightened by the unilat- pressure to adopt specific GHG emission reduction targets over eral approach adopted by the U.S., which could lead to situations the past year, including during the discussions that took place at in which shipowners who have installed IMO type approved sys- Paris climate conference at the end of 2015. tems could still fail to meet U.S. requirements for treatment systems. In fact, as of July 2016, no treatment system had received Within this context, the IMO recently agreed to implement a full type approval from the IMO, the U.S. Coast Guard (USCG) and mandatory global system for collecting data on CO2 emissions class societies combined. Moreover, the controversy surround- from international shipping, under which vessels are required to ing the USCG’s denial of the “most probable number” (MPN) test report data on their annual fuel consumption (using parameters method for ultraviolet systems has yet to be resolved. such as distance travelled, service hours, design DWT, etc.). This new reporting requirement is expected to enter into force by the end of 2018 or early 2019, following its formal adoption at the next meeting of the IMO’s environmental committee in the fall of 2017.

13 Shipping Federation of Canada • ANNUAL REPORT JULY 2015- JULY 2016 At the Canadian level, the federal government has undertaken In addition to the above, several initiatives are currently under- public consultations on the development of a Pan Canadian way on both the east and west coats of Canada to better under- Framework on Clean Growth and Climate Change, which in- stand and manage the impact of ship noise on marine life. This cludes measures to mitigate greenhouse gas emissions from is an important issue, as acoustic disturbances (along with ves- transportation. At this stage, it is expected that any mitigation sel strikes) have been identified as key threats to the recovery measures developed under this plan would apply only to do- of several species at risk in Canadian waters, (e.g. the north mestic emissions, (i.e. emissions arising from the transportation Atlantic right whale in the Bay of Fundy area and along the of goods or passengers between two Canadian points). Gaspé Peninsula, the beluga in the St. Lawrence River, and the killer whale on the West Coast). The Federation has been work- MARINE PROTECTED AREAS AND IMPACT OF SHIPPING ing on these subjects for a number of years, and was a partner in ON MARINE MAMMALS producing the Mariner’s Guide to Whales in the Northwest Atlantic and an active player in the discussions on the implementation As part of its environmental platform, the federal government of voluntary speed reduction measures to reduce the risks of has been working to meet its commitment to protect 5 percent collisions with belugas in the Laurentian Channel. In addition, of Canada’s marine and coastal areas by 2017 and 10 percent by several member companies have been contributing to the ef- 2020. This will lead to an increased number of marine protected forts of Green Marine (an environmental certification program areas, in which ships could be subject to restrictions on dischar- for the North American marine industry) to develop a new en- ges, new routing measures (including speed restrictions), and (in vironmental performance indicator related to the management the longer term) mitigation measures to minimize the impacts of of vessel underwater noise. The Federation also expects to work underwater noise on marine mammals. As a first step, the gov- with the Port of Vancouver on this issue as part of the Port’s ernment is working to finalize the designation of six protected ECHO program in the coming months. areas in the Arctic, British Columbia, the Laurentian Channel and eastern Canada, which is expected to be based on the input that stakeholders have provided during several years of consultations. The Federation’s objective in these consultation has always been to balance the government’s conservation agenda with the need to maintain efficient navigation in protected areas.

14 Shipping Federation of Canada • ANNUAL REPORT JULY 2015- JULY 2016 COMMITTEES

The Shipping Federation’s standing committees are an essen- ENVIRONMENT COMMITTEE tial means of obtaining member input and expertise on specific subjects, building consensus on developing issues, and ensuring The Environment Committee addresses issues related to en- that the Federation’s positions fully reflect the needs and realities vironmental compliance and sustainability within the shipping of Canada’s international shipping industry. industry, with specific focus on subjects such as ballast water, air emissions, greenhouse gases, cargo residues and oceans PILOTAGE COMMITTEE management.

The Pilotage Committee addresses issues related to marine pilot- CRUISE SHIP COMMITTEE age in the Atlantic, Great Lakes, Laurentian and Pacific regions. Such issues include, but are not limited to, contract negotiations; The Cruise Ship Committee addresses operational issues that are levels of service; service disputes; tariff revisions and governance of interest to international carriers involved in cruise ship activ- matters. ities throughout Canada.

CUSTOMS COMMITTEE WATERWAYS EFFICIENCY COMMITTEE

The Customs Committee addresses issues arising from the regu- The Waterways Efficiency Committee addresses operational sub- lations and procedures that Canadian and U.S. Customs author- jects that are of interest to international carriers throughout the ities impose on ships and cargoes, particularly with respect to St. Lawrence – Great Lakes system with a view to improving its documentation and reporting requirements. overall efficiency and sustainability.

INTERMODAL COMMITTEE

The Intermodal Committee addresses intermodal issues im- pacting the shipping industry and explores ways of improving the interface between modes (ship, rail, and truck) in the movement of cargo.

15 Shipping Federation of Canada • ANNUAL REPORT JULY 2015- JULY 2016 COMPANIES REPRESENTED BY FEDERATION MEMBERS

A/S Bulk Handling Canfornav Inc Recycling HMM As the owners, operators Abitibi Bowater Carnival Cruise Line Evergreen Hoegh Autoliners and agents of deepsea ships involved in Canada’s AC Oersskeff’s Eftf A/S Celebrity Cruises EXXONMOBIL Holcim international trade, the ACT Maritime Co. Ltd. Celtic Shipping USA Fair Wind (Europe) SA Holland America Line members of the Shipping Federation of Canada rep- Acromas Shipping Ltd. CertainTeed Falconbridge Nickel Mines Horizon Lines Inc. resent many of the world’s Agrico Canada Inc. CHS Inc. Federation of Japan Tuna Ibex Maritime Ltd. major shipping and cruise Aimcor China Shipping Fednav International Innovative Municipal Products lines, as well as a significant Container Lines number of manufacturers, Alcoa Steamship Co. Fisser & v. Doornum Internaut Group producers, exporters and Aliança Lines, Inc. Citadel Shipping AB Flinter Ship Management Intersee Schiifahrts importers trading both to American Iron and CMA CGM Limited GmbH+Co. KG and from Canadian ports. Metal Company Inc. Coeclerici Fred Olsen Cruises J. Poulsen Shipping American President Line Combilift GAC J.K. Commodities Ltd. Ameropa USA Cometals Gavilon Group Jacob Scorpio Tanker Pool Arcelor Mittal CORUS Gearbulk Jo Tankers Atlantic Container Line COSCO Shipping Hong Kong Global Trading Johan G. Olsen Atlantic Minerals Limited Crystal Cruise Line Gorthon Lines Johnson & Dever Inc. Atlantic RORO Carriers CSAV Chilian Line GPS Manila Jumbo Navigation Barya Shipping & Trading Inc. CSSA Great Lakes Feeder Lines K Line BBC Chartering & Logistic Cunard Line Great White Fleet Kent Lines GmbH Cyprus New York State Marine Greece Marlow Navigation Korea Lines Beluga Chartering GmbH Highway Transportation Co. Hamburg Shyvers Kronos Bermuda Container Line Dalmore Corporation USA Savoy London LBH Shipping Canada Inc. BHP Billiton Daphne Shipping Odessa Hamburg Sud Lindblad Expeditions Brochart KB David J. Joseph Hanjin Lockwood Marine Inc. C O S C O Delmas Hapag Lloyd Louis Dreyfus Corp. Cam Paris Dowa Line Harren and Partners Lydia Mar Shipping Co. S.A. Canada Malting Co. Ltd. ED & F Man Shipping Ltd. Hartmann Group Maersk Line Canada States Africa Line Eitzen Bulk and Chemical Heidenreich Marine Marlow Navigation Canarctic Shipping EMR Europeen Metal Herning Shipping a.s.

16 Shipping Federation of Canada • ANNUAL REPORT JULY 2015- JULY 2016 Mar-Ocean Brokers Inc. NYK Line Sea Star Line Transammonia Inc. Mediterranean Shipping Oceania Cruises Seabourn Cruises Transatlantic AB Co. Ltd. OMS Shpping Seastar Chartering Ltd. Tube City IMS Melfi Lines Onego Shipping Seaway S. A. M. Turkey Cape Reefers MidShip Marine Group OOCL Shyvers Savoy London UK Ultramar Mitsui OSK Bulkers P & O Cruises Silversea Unicargo Transportges MBH MOL (Mitsui O.S.K. Lines) Pacific Basin Sims Hugo New Urbal Paris Molinos Del Higuamo Parakou Shipping Ltd. Global Trading USL U.S. Lines MST Mineralien Schiffahrt und Paramount Enterprises Sinochem Shipping co. Ltd. UTC Chartering USA Transport GmbH International SMT Shipmanagement V. Ships, Leisure National Shipping Corporation Peter Cremer Canada Ltd. Spliethoff of Saudi Arabia Van Ommeren Clipper Peter Dohle Schiffahrts-KG Springfield Shipping Co. Navarone SA Vertom Scheepvaart - & Hamburg Panama SA Handelmaatschappij B.V. Navios Handybulk Phoenix Bulk Carriers ST Shipping Viterra Inc. Neptune Orient Line Polsteam Star Shipping Volkswagen Logistics GmbH Neste Prestige Cruises Statoil & CO. OHG Netherlands Industrial Princess Cruises STC Voyages of Discovery Maritime Carriers USA Pro Line Limited & Co. GmbH Stolt Nielsen Wagenborg New York Nordana Project & Chartering Denmark Regent Seven Seas STX Panocean (America) Inc. Waterfront Shipping Company Ltd. Newco Ferrous ResidenSea-The World Swire Shipping WEC Lines Nirint Shipping B.V. Rio Tinto Alcan Sylvite Sales RollDock B.V. Tata Steel - UK World Logistics Service Nissan Motor Car (USA) Inc. Carrier Co. Ltd. Royal Caribbean Cruise Line TBS Shipping Services Inc. Xstrata Noble Resources Srl, Ravenna SA Cargo Logistics LLC USA Teck Cominco Metals Ltd. Xtrata Nordana Line Safmarine Container Texas American Shipping USA Yara Norfalco Lines NV Toko Saga Shipping Zim Integrated Shipping Norwegian Cruise Line Tokyo Greenpeace Services Inc. NS United Shipping Sanko Steamships International NYK Bulkship New York Scanscot Shipping Services Tokyo Marine Asia Pte. Ltd. (Deutschland) Trafigura

17 Shipping Federation of Canada • ANNUAL REPORT JULY 2015- JULY 2016 AFFILIATE MEMBERS

Atlantic Pilotage Authority Hamilton Port Authority St. John’s Harbour Services Companies which are not ship owners, operators Atlantic Towing Limited Innovation Maritime St. John’s Port Authority or agents are most welcome to join the Shipping Federation as affiliated members. Benefits of affiliated Belledune Port Authority Institut Maritime St. Lawrence Seaway du Québec (IMQQ) Management Corporation membership include access to information published BIMCO (Baltic & International by the Federation; preferential rates for Federation Maritime Council) Marine Press of Canada Inc. Toronto Port Authority conferences, seminars and training programs; and access to networking opportunities provided Borden Ladner Gervais LLP Montreal Gateway Trois Rivières Port Authority Terminals Partnership by the Federation. British Columbia Maritime True North Marine Employers Association Montreal Port Authority Urgence Marine Inc. Canadian Marine Newfoundland Valport Maritime Services Pilots Association TransShipment Ltd. Vilden Associates Inc. Canadian Sailings Port Metro Vancouver Wilhelmsen Ships Service Eastern Canada Response Québec Port Authority Corporation Ltd. Worldscale Association Richardson International (London) Ltd. Great Lakes Pilotage Authority (Quebec) Ltd. The Guarantee Company Saint John Port Authority of North America Seamont Brokerage Halifax Port Authority & Transport Ltd. Halterm Limited Sept-Îles Port Authority

18 Shipping Federation of Canada • ANNUAL REPORT JULY 2015- JULY 2016