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Annual Report July 2015- July 2016 Table of Contents

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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 mem- bers. 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.
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