Tuesday, August 13, 2024

Cheap foreign labour soars in Canada as young workers are left jobless

By Randy Thanthong-Knight
August 12, 2024 

(Bloomberg) -- It’s getting harder for young Canadians to find a job. A post-pandemic influx of cheap foreign workers in restaurants and retail stores may be making it tougher.

Michelle Eze started actively searching for work around Toronto in October, just as the youth unemployment rate in Canada began to surge. The 22-year-old public-policy graduate sought out teaching and restaurant service jobs to help pay the bills and support her parents, but struck out.

“I was struggling. I was searching on Indeed, looking everywhere, asking friends and like — nothing,” she said. “That was really demoralizing because I had the determination but I was seeing no results.”

Eze is still searching. Her difficulty underlines a disconnect in Canada’s labor market: Entry-level jobs for students and recent graduates are much harder to find as the economy weakens, yet the country has also imported hundreds of thousands of temporary foreign workers for jobs, many of them in the food and retail sectors.

That’s contributing to a soaring rate of youth unemployment. Two years ago, the jobless rate for people 15 to 24 years old was a little over 9%. Now it’s 14.2% — the highest level in more than a decade outside of the Covid-19 pandemic.

For younger immigrants — those who’ve landed in Canada in the past five years — the unemployment rate is around 23%.

An analysis of government data by Bloomberg News shows explosive growth in the number of temporary foreign workers in food and retail over the past five years. The number of them approved to work in those two sectors jumped 211% between 2019 and 2023.

The rapid surge is partly fueled by the increase in demand for immigration to Canada after pandemic travel restrictions eased. Many newcomers saw these temporary jobs as a step to help gain permanent residency, and many employers relied on the program when the economy reopened.

Business lobby groups have argued the temporary foreign worker program — originally designed to help farmers deal with seasonal labor needs — is critical to fill vacant positions.

But in cities like Toronto, the state of the labor market is undermining their case. Canada’s largest metropolis is hardly short of young, available workers. The region had more than 120,000 unemployed people aged 15 to 24 as of July — an increase of 50% in just two years, according to Statistics Canada data.

“We’ve noticed more youths are coming to us partially because of the influx of new Canadians,” said Timothy Lang, chief executive officer of Youth Employment Services, which helps young Toronto residents get training and find jobs. “Sadly, some companies will take people with more experience so they’re knocking some youths out.”

That’s the experience of 17-year-old Alexander Clarke, who has spent months applying to grocery stores, fast-food joints and clothing shops, but never heard back from any employers.

“I think they’re looking more for older people these days,” Clarke said. “A lot less youth are getting employed — like you see a lot of older people working at places, not people my age.”

In response to public pressure, Prime Minister Justin Trudeau’s government has rolled back some of its pandemic-era measures aimed at alleviating labor shortages. For example, it has curbed the number of hours that international students are allowed to work, and it’s promising tougher enforcement against businesses that abuse the system for hiring temporary foreign workers.

Still, under current rules, companies are permitted to bring in foreign workers even in areas with elevated and rising unemployment.

Canada allowed employers to bring in roughly 240,000 workers under the temporary foreign worker program last year, nearly double the amount in 2019. About a fifth of those positions were in jobs most common in restaurants and retail stores, such as cooks, food counter attendants and cashiers.


The share of these jobs grew significantly from before the pandemic, while the proportion of foreign workers doing agricultural work declined to 41% last year, from 54% in 2019.

Collectively, major restaurant and retail chains make up the biggest group of employers using the program to hire these types of workers, but their reliance on the system is impossible to quantify due to the rampant use of numbered companies in government data.

In Ontario alone, Tim Hortons hired at least 714 temporary foreign workers last year, up from 58 in 2019. But some 92% of those positions in 2023 were listed under holding companies that didn’t bear the franchise name.

The use of the program may not only be making it harder for youths to get jobs but also suppressing wages for the entry-level positions where they compete with foreign workers
.

Canada's Temporary Foreign Work Program Has Exploded | Approved positions nearly doubled between 2021 and 2023 (Employment and Social Developmen)

“In a sense what we’re doing is we’re subsidizing those activities by allowing them to bring in low-wage workers rather than make them pay a competitive wage,” said Christopher Worswick, economics department chair at Carleton University in Ottawa, who co-wrote a peer-reviewed report showing firms prefer temporary foreign workers due to their higher efforts for the same wage.

“Wages should go up until labor supply equals labor demand,” Worswick said. “Labor shortages should be filled by wage increases. The only thing stopping a wage increase is the profitability of the firm.”

©2024 Bloomberg L.P.
Lundin hit by worker strike at Caserones copper mine

Staff Writer | August 12, 2024 |

Image courtesy of Caserones Inc

Lundin Mining (TSX: LUN) said on Monday it will gradually cut down activities at the Caserones copper mine after a small part of its workforce in Chile took action over a failed collective bargaining agreement.


The Canadian miner had tried to reach an agreement with one of three unions representing approximately 30% of Caserones employees, or 5% of the total workforce at the Caserones, prior to the strike.

In a press release Monday, Lundin said it remains willing to participate in meetings to reach a resolution with the union, and is committed to the “highest standards for integrity and transparency” and looks forward to returning its focus to safe and sustainable mining at Caserones.

In April, Caserones was able to successfully negotiate a new collective bargaining agreement with one of the other two unions, which also represents approximately 30% of the employees.

The company recently upped its stake in Caserones to 70% after exercising an option with Japan’s JX Nippon Mining & Metals. The mine represents one of Lundin’s trio of key assets in or around northern Chile, the other two being the 80%-owned Candelaria mine in the Atacama region and the Josemaría project in Argentina.

This year, the Caserones mine is expected to produce 120,000 to 130,000 tonnes of copper and 2,500 to 3,000 tonnes of molybdenum on a 100% ownership basis.
BHP removes striking workers at huge Chile copper mine, output at risk

Reuters | August 13, 2024 | 

Escondida copper mine. (Image courtesy of BHP)

Mining giant BHP said on Tuesday it had started removing workers on strike at its Escondida copper mine in Chile, deepening tensions at the site after a powerful union rejected the company’s latest invitation for talks on pay.


The strike at the world’s largest copper mine was declared hours earlier after negotiations collapsed and could lead to a major hit to production.

“After a new invitation from the company to reach an agreement, Union No. 1 declined to restart talks,” BHP said in a statement, referring to the labor group that represents about 2,400 people.

Escondida, which produced 1.1 million metric tons of copper last year, said the mine was continuing to operate but did not specify how much operations had been scaled down.

BHP said it began removing striking workers when it activated a contingency plan that allows for “minimum services” and for non-union members to keep working.

Mines typically have plans to reduce operations without affecting facilities or equipment.

Workers walked out as they demanded a bigger slice of copper profits, which have been buoyed by recent high prices.

The union maintains it is willing to return to negotiations, and accused BHP of violating strike terms by replacing workers who walked out, who it said were essential to basic operations.

“We demand the company immediately end this grave anti-union practice,” the union said in a statement.

The strike, after the union encouraged members to reject BHP’s offer, has stirred up memories of the last major Escondida walkout in 2017, which hit BHP’s copper production and pushed up global prices of the metal, which is used to make wiring and nearly every single electronic device.

Analysts said the market was so far staying calm, with hopes for a quick resolution and weaker demand from top copper consumer China dampening the impact. BHP’s US-listed shares edged down and copper futures were stable.

“The market is taking it in its stride,” said Chris LaFemina, a metals and mining analyst at Jefferies, though he flagged the potential for the strike to encourage other labor disputes in Chile.

“If you get a series of mine disruptions, that can have an impact on the market.”

London-listed shares of BHP and copper prices each fell less than 1% on Tuesday.

Workers from one of three unions at Lundin Mining’s Caserones copper mine in Chile also went on strike on Tuesday over failed pay negotiations.

While the Escondida strike is unlikely to affect Caserones, the outcome could influence future negotiations at other mines, said Benchmark Mineral Intelligence, a UK-based provider of critical minerals pricing and data.

They also noted that Escondida processes 400,000 tons of ore a day, a pipeline that could be disrupted shortly after workers walk out.

BHP offered a $28,900 bonus per worker, compared with the union’s demand of 1% of shareholder dividends for the mine, which would amount to roughly $36,000.

“We made every responsible effort to reach an agreement, but that wasn’t possible,” the union said in a statement ahead of the strike’s start at 8 a.m. (1200 GMT).

Four proposals


BHP defended its contract as one of the best in the industry, and said it had offered four proposals in response to points raised by the union. The labor group “on the last day of mediation presented new requirements,” BHP said in a statement.

BHP, one of the world’s biggest miners, owns more than half of Escondida in northern Chile, along with Rio Tinto and JECO Corp.

Rio Tinto declined to comment. Representatives for Mitsubishi, the controlling shareholder in JECO, were not immediately available.

Some 60% to 70% of Escondida’s copper concentrates are shipped to China, a source with knowledge of the matter said. A cutoff of Escondida concentrates could hit supply chains of Chinese smelters, which produce half the world’s refined copper.

Union President Patricio Tapia told Reuters previously that a strike would see BHP unable to produce copper, because replacement workers are prohibited by law.

Along with seeking higher pay, the union, which has repeatedly clashed with BHP, is pressing for better conditions for workers who lose their jobs due to outsourcing and automation as well as health benefits, bonuses and more.

(By Fabian Cambero, Julian Luk, Ernest Scheyder, Alex Villegas and Daina Beth Solomon; Editing by Mark Potter, David Holmes, Leslie Adler, Jonathan Oatis and Sonali Paul)


BHP workers at top copper mine go on strike after talks fail

By James AttwoodAugust 13, 2024 

Bars of copper in a storage area at the Valjaonica Bakra Sevojno AD copper mill in Sevojno, Serbia, on Tuesday, Oct. 26, 2021. (Oliver Bunic/Bloomberg)

(Bloomberg) -- Workers at BHP Group’s Escondida mine in Chile will begin a strike Tuesday after failing to reach a wage agreement, setting the stage for a stoppage at the world’s biggest copper operation.

The union’s 2,400 members will down tools at 8 a.m. Chile time after rejecting BHP’s proposal for a new three-year labor contract following five days of mediated talks, the union said in a statement.

The action will halt an operation that accounts for about five per cent of all the world’s mined copper, disrupting shipments for Melbourne-based BHP, while potentially easing pressure on copper futures that have slumped in recent months along with dimming prospects for the global economy.

Escondida churns out more than 1 million metric tons a year, making it by far the biggest supplier of copper. Some analysts see BHP Group overtaking Codelco this year as the top global copper producer.

While collective bargaining in Chile is often marked by brinkmanship and last-minute agreements, Escondida has been the scene of lengthy stoppages in the past, including a 44-day strike in 2017.

BHP didn’t immediately provide a comment.

Benchmark copper traded in London surged to record levels in May as bullish investors placed bets on shortages. That emboldened unions seeking a share of the windfall for their members. But prices have since pulled back by roughly 19 per cent, undermining some of that leverage as companies look to avoid big increases in fixed costs in a cyclical and capital-intensive business.

Still, negotiations come at a time of global tightness of copper concentrate — the raw material produced at Escondida and used to feed smelters — even though the market for refined metal is well supplied for now.

On the final day of mediated talks, BHP had offered a signing bonus of 27 million pesos (US$28,900) per worker, as well as improvements in benefits. Workers had sought a bonus of more than 30 million pesos and a share of profit.

With assistance from Matthew Malinowski


Union at BHP’s Escondida mine says company made ‘illegal’ offer amid negotiations

Reuters | August 12, 2024 | 

Escondida mine, Chile. (Image courtesy of Municipalidad Antofagasta | Flickr )

The union representing workers at BHP’s Escondida mine in Chile told its members on Monday that it would accuse the company of “anti-union practices” for making a contract offer outside of a government-mandated mediation process.


The company and the powerful workers’ union have been in a five-day period of government mediation, due to expire at midnight on Monday, aimed at preventing a strike after workers overwhelmingly rejected a previous contract offer from BHP during a formal negotiation period.

In an internal memo to members seen by Reuters, the union said that BHP made an offer to union members on Monday afternoon “in an illegal manner” as negotiations were ongoing.

“The company has spread this offer to the workers without previously presenting it, as it should, to the Union Negotiating Commission,” the memo said.

“The maneuver … shows a clear bad faith on part of the company,” the memo added.

The company’s offer on Monday included a bonus equivalent to about $28,900 per union member, according to a source close to the negotiations, who declined to be named due to their private nature.

BHP did not respond to a request for comment.

Company and union representatives were due to meet at 6:30 p.m. local time (2230 GMT) on Monday in the northern Chilean city of Antofagasta.

(By Fabian Cambero and Brendan O’Boyle; Editing by Anthony Esposito and Jamie Freed)

 

Italians Seized Weapons and Drones Smuggled in Containers Going to Libya

seized drones
Two military drones were disguised as wind turbine parts in containers seized from an MSC vessel (Guardia di Finanza photos)

Published Aug 12, 2024 11:49 AM by The Maritime Executive

 

 

Italian police and customs authorities confirmed they seized a cache of weapons and two drones designed for military use from containers being transported through Italy on an MSC vessel. The incident began in mid-June with the authorities stopping containers for investigation, but the details are just now surfacing in the media in Italy and Europe.

The initial reports in June said the forces of Guardia di Finanza and the Customs Office had found weapons hidden in a container that was bound for Libya. At the time, the Italian media said the materials were going to Benghazi and likely destined for the forces of Libyan strongman and military leader Khalifa Haftar.

The containers were identified as being aboard the MSC Arina, one of the carrier’s giant vessels. At 255,000 dwt, the Panama-flagged vessel carries over 23,600 TEU. Reports said officials from the United States had tipped off the Italian authorities asking for the containers to be seized. The boxes were moving through the port of Gioia Tauro.

The initial report only said that millions of dollars of weapons had been discovered. The Italians provided additional details saying that six containers coming from China were identified and intercepted. They performed an initial X-ray scan and later decided the boxes required additional investigation. They noted that anomalies in the customs documentation for the containers raised additional suspicions.

 

Italian authorities said each drone is over 3 tons (Guardia di Finanza)

 

Items contained in the shipment were identified as component parts of wind turbines, but on closer inspection, the Italian authorities determined they were parts of the fuselage and wings of flight-ready drones for military use. The components were concealed among other composite materials that appeared to be elements for wind turbine blades. The report said the authorities believed this was done to conceal the items during routine customs inspections.

The Italian authorities provided pictures of the reassembled drones. They said that the two aircraft each were over three tons. They have a length of nearly 33 feet and a 66-foot wingspan.

The Public Prosecutor’s Office of Palmi arranged for the seizure of the items citing the UN Security Council embargo as well as national and EU regulations to prevent the shipment of weapons to Libya. The incident is being called elements of suspected international arms trafficking and is being investigated.

 

 

China Deploys Massive Dual Rotor Floating Wind Power Platform

dual rotor floating platform
OceanX is a dual rotor platform and the largest so far deployed (Mingyang)

Published Aug 12, 2024 10:04 PM by The Maritime Executive

 

China’s Mingyang Smart Energy has begun the deployment of a unique floating wind turbine structure. The company is calling the OceanX platform the world’s largest floating wind power platform and the largest single-capacity floating wind platform. 

Positioning of the platform began on Sunday, August 11, and is expected to take 72 hours to travel the 191 nautical miles to its offshore location in the Qinghou IV Offshore Wind Farm in Yangjiang, a city in southern China southwest of Hong Kong and Shenzhen. Officials highlight that it is a challenging navigation, maneuvering the platform below major bridges and past busy harbors while transiting the Pearl River Delta's waterways.

 

The platform is maneuvering along the Pearl River Delta toward its position in the ocean off Yangjian in Southwest China (Mingyang)

 

The platform was built at the CSSC Huangpu Wenchong Shipyard and launched in mid-July. The unique arrangement incorporates two towers in a “V” shape, each holding an 8.3 MW MySE hybrid drive offshore wind turbine. The total output from the structure is expected to reach 16.6 MW.

Mingyang highlights that it is also the first use of ultra-high performance concrete that gives the structure a higher compressive strength. The company, which promotes itself as having the largest market share in offshore wind power, highlights as unique the structures airfoil double tower, its double main engine, double rotors, and application of the cable stay system as all being world firsts.

It is designed to be deployed in seas with a depth of 35 meters (115 feet) or greater with a draft of 5.5 meters (18 feet). It uses a single-point mooring system that can withstand extreme typhoons. At its highest point, OceanX is 219 meters (718 feet) and has a maximum width in the air of approximately 369 meters (1,200 feet). The total displacement is about 15,000 tons.

 

The 191 nm voyage is expected to take 72 hours (Mingyang)

 

Mingyang reports it has developed three unique designs for floating offshore wind turbines. It is working in conjunction with China Three Gorges and China National Offshore Oil Company to develop and deploy its offshore wind technologies.

As an example of the advancements in offshore wind turbines, the company highlights that OceanX adopts a downwind design. This reduces the load on the supporting structure by approximately 40 percent. The design also incorporates more than 3,000 sensors to monitor all aspects of the operating status of the platform. It can provide operators with video, audio, and pictures as well as data on the displacement, temperature, vibration, stress, voltage, current, wind speed, and wind direction.

OceanX is expected to reach its operating position on Wednesday, August 14. Once commissioning is completed, the structure is expected to generate 54 million kWh annually.
 

High-Tech “Crawlers” Deployed to Survey Vineyard Wind's Turbine Blades

offshore wind farm
Recovery teams working around the damaged turbine blade (Vineyard Wind)

Published Aug 12, 2024 3:21 PM by The Maritime Executive

 

A month after an embarrassing incident in which one of the turbine blades broke at the Vineyard Wind offshore wind farm, the developer presented its recovery plan. It is working with the U.S. Bureau of Safety and Environmental Enforcement, as well as the U.S. Coast Guard, and has retained Resolve Marine to assist Vineyard Wind and GE Vernova in the recovery effort. At the same time, residents continue to report finding fragments washed up on the shoreline of Massachusetts.

The project continues to repeat the preliminary assessment that is now completed by GE Vernova which cites a “manufacturing deviation” in the bonding of the composite material used to make the blades. The companies had said it was an identifiable issue with the adhesion that should have been discovered during quality control.

The blade initially broke on July 13 while one of the turbines not in service was undergoing testing. The automated safety controls stopped the individual turbine. Parts of the blade remained attached, while some sections were caught on the base and the remainder fell into the water. Elements of the composite material and the lightweight foam began washing up before the blade broke further in the following days. Work at the wind farm both on the turbines in service and construction was suspended and remains under a stop work order from BSEE.

Hoping to recover and get the project back on track, Vineyard Wind summarized the plan that has been developed and approved. Crews have already inspected the turbine for safety and with Resolve the plan calls for four steps. They will rotate the blade to reduce the hanging pieces and prepare for possible controlled cutting. The root of the blade will be removed from the hub, and debris cleared from the platform. They also plan to address seabed debris.

Vineyard said as part of its commitment that “No blades will be installed or used in operations until thoroughly inspected.” The cutting operation took place on Sunday and Monday taking down large portions of the damaged blade and as of Tuesday BSEE permitted the project to resume the installation of towers and nacelles while the investigation of the blades continues.

 

One of the wind turbine blades installed at Vineyard Wind broke apart in mid-July (VIneyard Wind)

 

Advanced remote-controlled robots called “crawlers” are being inserted into the manufactured blades to allow for a visual inspection. The crawler is equipped with a video camera to assist with the visual inspection of critical areas of the blade and assists with photos and videos.

GE Vernova previously said that all the blades manufactured at its facility in Canada would be undergoing inspection to determine if the error was isolated to more widespread. This process also includes re0examing over 8,300 ultrasound images that were made of each blade during the manufacturing process. They are measuring bonding widths in the blade and looking for any other anomalies.

A new algorithm is also being prepared by GE Vernova to use with the existing sensors in each blade. The goal is to better detect issues to avoid a similar failure. 

The project, which is being developed in a partnership between Avangrid and Copenhagen Infrastructure Partners, had already been slowed by construction challenges. BSEE permitted limited onshore work to proceed but until the integrity of the blades can be confirmed, power generation and further installation remain delayed. Opponents of the offshore wind sector have also used the incident in an effort to rally support for blocking the development of further offshore wind farms

Germany Selects RWE and Luxcara to Develop More Offshore Wind Capacity

offshore wind farm
Germany awarded three more sites as it seeks to continue the buildout of offshore wind energy (RWE)

Published Aug 13, 2024 7:53 PM by The Maritime Executive

 

 

Germany’s Federal Maritime and Hydrographic Agency (Bundesnetzagentur or BSH) announced the results of its newest round of offshore wind auctions. With the potential to provide 5.5 GW of capacity, the three sites were awarded to Luxcara, an institutional asset money manager, and RWE.

The project sites in the German North Sea near the border with the Netherlands hold significant potential as the could strives to reach a goal of 30 GW and a renewable energy share of 80 percent of the country’s power mix by 2030. The three sites have been pre-investigated with BSH setting a total target of 5.5 GW. The projects represent a nearly two-thirds increase of Germany’s 8.5 GW of capacity in operation. Germany currently has over 1,500 offshore turbines in service having grown from just 35 MW in 2009. Several previously awarded projects are also in the pipeline to increase the operational capacity with a total of a further 8.8 GW designated in 2023.

BSH closed the auctions on August 1 and reports it received a total of five proposals. They were judged on elements such as efforts to reduce decarbonization of the projects and use of environmentally-friendly foundation technologies as well as the price the bidder was willing to pay. BSH said the total price would not be released for confidentiality reasons but highlighted that most of the proceeds go to lowering electricity costs. Successful bidders make small contributions in the first year to marine nature conservation and to promote sustainable fishing, but the bulk of the payments are over 20 years once the wind farm starts operation and goes to the transmission system operators.

RWE however announced it bid a total of €250 million for two sites it was awarded. They are located approximately 70 miles northwest of Borkum island in the German North Sea. Combined they have a potential for 2 GW each with one expected to reach a final investment decision in 2027 and the other in 2028. Construction could begin in 2029 and 2030 with the farms operational in 2031 and 2032. 

RWE will explore the development of the sites with TotalEnergy. They will receive the data developed by BSH to accelerate the planning and decision-making process. The leases have a 25-year term and can be extended to 35 years.

The bids are part of RWE’s strategy to triple its global offshore wind capacity from 3.3 GW to 10 GW by 2030. The company highlights it already operates a total of 19 offshore wind farms, including six off the German coast. It had 1.6 GW of capacity under construction in the Nordseecluster.

Money manager Luxcara was awarded the other site which has a capacity of 1.5 GW. It is located in the German North Sea approximately 50 miles northwest of Helgoland. Luxcara highlights using the data from BSH the project could be developed and connected to the grid possibly as early as 2029.

Luxcara in August 2023 successfully participated in another German offshore wind auction. It won the right to build a 270 MW offshore wind farm located approximately 55 miles from Borkum. Both projects will be part of a portfolio that Luxcara manages on behalf of institutional investors.

The company recently caused a stir in Germany when it announced it selected China’s Mingyang Smart Energy as its preferred turbine supplier. The news was immediately met with opposition that accused China of unfair competition while seeking to block its entry into the German market. The government said it would review the proposal while the EU has said it might slap China with tariffs for unfair pricing and competition in the offshore energy market.

 

All American Marine Secures Contract with the University of North Carolina

All American Marine (AAM)

Published Aug 13, 2024 7:24 PM by The Maritime Executive

 

[By: All American Marine]

All American Marine (AAM) is proud to announce the award of a contract to build an advanced 73-foot research vessel for the University of North Carolina Wilmington (UNCW). This state-of-the-art aluminum catamaran, designed by Teknicraft Design in Auckland, New Zealand, is set to enhance UNCW’s capabilities in marine science research and education along the Mid-Atlantic, US East Coast, and offshore waters.

The 73’ x 26.7’ twin-engine, propeller-driven vessel will operate as a multipurpose research platform capable of conducting a wide range of scientific missions, including oceanographic surveys, biological studies, and educational outreach programs. Designed to comply with U.S. Coast Guard (USCG) Subchapter T standards, it will ensure safety and efficiency in diverse maritime environments.

The vessel’s design incorporates Teknicraft’s proven hydrofoil-assisted hull, ensuring reduced drag, enhanced fuel efficiency, and superior passenger comfort. This dynamic hull design is optimized for stability and performance in various sea conditions. Equipped with twin Scania Di16-082M EPA Tier 3 engines, each producing 800 mhp at 2100 rpm, the vessel will achieve a transit speed of 21 knots and a fuel-efficient survey operation speed of 1.5 knots. The large fuel capacity of 1500 gallons ensures extended operational range and endurance.

The vessel will feature state-of-the-art navigation, communication, and scientific equipment, including a Kongsberg ADCP electronics suite and a fixed WASSP multibeam system. This advanced technology will facilitate comprehensive oceanographic and biological research.  The vessel’s design includes large wet and dry lab spaces, comfortable live-aboard quarters for up to 10 personnel, and the capacity to accommodate 20 passengers for day trips. It will also support dive operations and the deployment and retrieval of ROVs and AUVs.

The construction of this research vessel will occur at AAM’s facility in Bellingham, WA, focusing on meeting the highest standards of quality and performance. The project will involve rigorous sea trials to ensure all systems and components perform as required.

“Our collaboration with UNCW is a significant advancement in our commitment to supporting marine research and education by building this next-gen research vessel,” said Ron Wille, President and COO of All American Marine. “This vessel will offer the faculty, students, and partners at UNCW a cutting-edge platform to explore and study the marine environment, greatly contributing to their mission of advancing marine science.”

The vessel will support a wide range of scientific missions over its projected 30-year service life, including:

  • Oceanographic Surveys: Conducting multibeam side scan, magnetometer, and sub-bottom profiler surveys, as well as deploying oceanographic instrumentation and moorings.
  • Biological Studies: Facilitating marine mammal monitoring, deploying trawl nets, and conducting water quality and sediment sampling.
  • Educational Outreach: Engaging students and the public in marine science through hands-on educational programs, supporting up to 20 participants on day trips.

The products and services herein described in this press release are not endorsed by The Maritime Executive.

 

Fire Extinguished Aboard MSC Containership Docked in Sri Lanka

containership fire
Fire teams were able to extinguish a fire and explosion aboard the MSC Capetown III (Sri Lanka Ports Authority)

Published Aug 12, 2024 9:01 AM by The Maritime Executive

 

 

A fire broke out early on Sunday, August 11 aboard an MSC containership while the vessel was discharging cargo at the terminal in Colombo, Sri Lanka. The Sri Lanka Ports Authority is reporting with assistance from the fire department and others, that the fire was extinguished with no injuries to the crew or fire teams.

The MSC Capetown III (39,228 dwt) arrived at the Jaya Container Terminal in the Port of Colombo early on August 11 coming from Singapore. It operates on a route to East Africa that terminates in Dar es Salam, Tanzania. Built in 2006, the vessel began operating for MSC in May 2023 and its registered in Maderia.

Port officials report that the vessel which has a capacity of 2,824 TEU had already completed offloading approximately 950 boxes of a scheduled operation to discharge 995 boxes and load 880. Smoke was observed coming from the under-deck hatch near the accommodation area and the fire teams evacuated the vessel and investigated the source of the smoke. The Ports Authority reports there were approximately 100 containers under deck and a further 60 still deck loaded. The vessel was also carrying 596 TEU bound for Tanzania.

 

 

Video shows smoke coming from the vessel and the Ports Authority reports there was a subsequent explosion below deck. Fire teams can be seen spraying down the area and other containers on the dock. The affected cargo was removed from the ship and the fire was extinguished.

“At around 1:00 a.m., the temperate below deck had reached 101 degrees C (approximately 214 degrees F),” an official told the newspaper Ceylon Today. “But, through the use of CO2, they managed to reduce it to 40 degrees C (104 degrees F) by Sunday morning.”

 

Fire teams extinguished the fire and removed the affected containers (Sri Lanka Ports Authority)

 

The Ceylon Today reports the manifest showed only one dangerous cargo container listed on the manifest which was stored on deck. The Ports Authority believes it had already been offloaded. They are looking at the possibility that there was undeclared hazardous cargo aboard.

The vessel was not showing any signs of prior fire or smoke the Ports Authority reports. Officials are continuing to investigate the source of the fire. 

It comes just days after a container explored aboard a Yang Ming vessel docked in China. Chinese officials continue to look at the vessel which was carrying reported hazardous chemicals and lithium-ion batteries. Also, a vessel chartered to Maersk had a container fire in mid-July off the west coast of India. There have been no recent updates, but the vessel was being held offshore while salvage teams worked to resolve the fire that continued to smolder.


SLPA Firefighters Completely Control Fire in the Vessel at POC

Sri Lanka Ports Authority

Published Aug 13, 2024 5:33 PM by The Maritime Executive

 

[By: Sri Lanka Ports Authority]

Fire fighters of the the Sri Lanka Ports Authority (SLPA) Fire Brigade successfully extinguished the fire that broke out yesterday (11) in a ship at the Jaya Container Terminal (JCT) of the Port of Colombo. At present, the fire has been completely extinguished. 

A sudden fire broke out in the Container vessel MV. MSC CAPETOWN III, at The Jaya Container Terminal (JCT) berth IV at the Port of Colombo around 0030hrs yesterday (Aug 11, 2024). All operations staff and crews were safely evacuated from the ship. The MV. MSC CAPETOWN III belonging to the shipping company of Geneva, Switzerland, called at the port of Colombo from the port of Singapore.                            

Hon. Minister of Ports, Shipping and Aviation - Nimal Siripala de Silva, has instructed the Chairman of SLPA – Mr. Keith D. Bernard, to conduct a full investigation into this incident. He also thanked and commended the immediate response and precautionary measures taken by the SLPA Fire Brigade to extinguish the fire completely. The quick response, timely measures, and expertise of SLPA staff and firefighters have further proven the Port of Colombo's competency and efficiency as an international container port, effectively and successfully handle sudden and hazardous situations.

The Chairman of SLPA said that the fire aboard the ship had been quickly doused by the SLPA Fire Brigade. “An investigation into the incident was launched,” he said. The Chairman also said that a comprehensive report on the incident would be prepared and the insurers would also would hold their own inquiries. The vessel was  scheduled to unload 995 containers and load 880 containers at the port.

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Two Rescued After Liftboat Catches Fire Off Louisiana

Liftboat
Courtesy USCG

Published Aug 12, 2024 8:37 PM by The Maritime Executive

 

[Brief] On Sunday, the U.S. Coast Guard's Eighth District evacuated two people from an offshore lift boat about 40 nautical miles off the coast of Louisiana after the vessel experienced a fire. 

At about 2000 hours, District Eight received notice from the crew of the lift boat Brazos that there had been a fire onboard. The blaze was put out, and no pollution or further threat to the vessel were reported. However, two men needed a medevac for higher care. 

In response, the Coast Guard dispatched a Jayhawk helicopter aircrew. When they arrived on scene, the pilot hovered over the helipad of the adjacent offshore platform to hoist the men safely on board. The aircrew delivered them safely to the Our Lady of Lourdes Hospital in Lafayette, Louisiana for further evaluation. 

Further details were not released, and the cause of the fire is under investigation. 

Brazos is a 145-foot liftboat built in 2013. It is built as a work platform, and can house up to 37 supernumeraries for the repair or construction of offshore platforms. 


U.S. Coast Guard Rescues Six From Burning Fishing Vessel

Three Girls fire
Image courtesy USCG

Published Aug 12, 2024 6:06 PM by The Maritime Executive

 

On Sunday, the U.S. Coast Guard rescued six people from a burning trawler off the coast of New Hampshire, including a NOAA fishery observer who was along for the voyage. 

At about 2100 hours, watchstanders at Coast Guard Sector Northern New England received a distress call from the trawler Three Girls. The 81-foot vessel was on fire, and the crew was preparing to abandon ship. The personnel included five crewmembers and one fishery observer. 

The Coast Guard diverted the fast response cutter USCGC William Chadwick to the scene, along with a Jayhawk helicopter aircrew and a fixed-wing SAR aircraft. All of these assets arrived on scene at about 2230 hours, along with a good Samaritan fishing vessel, the Princess Laura. By the time they arrived, all six of the survivors from Three Girls were aboard their life raft. The crew of the William Chadwick retrieved them from the water using their launch, and the Jayhawk aircrew waited on standby in case more immediate assistance was needed. 

All of the survivors were safely aboard by 2330 hours, and no significant injuries were reported. By Monday morning, they were on shore again at a pier in South Portland. 

Three Girls (ex name Sammy Jo) was an 81-foot trawler built in 1979. Coast Guard records show that she had a valid COI and no major reported issues aboard, except for an engine failure caused by an improper vendor rebuild in 2022. 

 

NTSB: Corrosion in Void Spaces Sank Aging Towboat

Jacqueline A sinking
Courtesy North Myrtle Beach Rescue Squad

Published Aug 13, 2024 4:11 PM by The Maritime Executive

 

The NTSB has released its investigative report on the sinking of the towboat Jacqueline A, which sank while under tow in the Atlantic off the coast of South Carolina. The vessel went down because of corrosion holes in small void spaces above the lazarette, leading to water ingress and progressive flooding through unsealed wire runs between compartments. 

Jacqueline A was a 60-foot towboat built in 1981 as the Eric Paul. Since 2012, she had been in service with a small towing company in Weems, Virginia, and was used for barge tows on the Chesapeake Bay. She was taken out of service in 2019 because she was not compliant with the newly-crafted Subchapter M regulations for towing vessels, and was laid up for several years. 

In mid-2023, the vessel's owner decided to return Jacqueline A to service and contracted with a yard in Louisiana to make upgrades and repairs. The owner hired a captain, mate and deckhand for a transit voyage to deliver the vessel to the yard. The captain said that the vessel's mechanical spaces looked to be in great shape, but the lazarette was not visually inspected immediately prior to the voyage (it had been checked three months earlier during a yard period). 

The master got under way on August 6, 2023, and headed for the Intracoastal Waterway. As the weather improved, the master decided to take an open-ocean route from the Cape Fear River inlet in North Carolina to Port St. Lucie, Florida, saving time. 

At about 1350 hours on August 8, the Jacqueline A left the Cape Fear River channel and headed southwest along the coastline. The seas were on the port beam at four feet, and the vessel was "rolling pretty good," according to the mate. The aft deck was taking water over the bulwarks, not unusual for a towing vessel in rough weather. Conditions subsided over the next few hours, but sea spray continued to wash over the vessel periodically. 

Between 1830-1850, the captain - who was on watch - noticed that the towboat had taken on a port list. He went out of the wheelhouse on the port side to look aft, and he saw that the main deck was underwater up to the edge of the deckhouse. 

The master checked the engine room and found that water was spilling in from the two wire runs that connected the engine room to the lazarette. (Jacqueline A had two four-inch pipes running from the aft engine room to the lazarette, through the potable-water tanks. They were unsealed and open-ended.) There was water in the bilge up to the bottom of the engine on the port side. The crew attempted to start bilge pumps, but the situation rapidly deteriorated, and the Jacqueline A quickly took on a severe port list and aft trim. 

At 1856, the master made a mayday call and gave the Coast Guard the vessel's position - just in time, as the generator shut down and took out the radio shortly after. 

The Jacqueline A began to go down quickly by the stern, but as she was only in 31 feet of water, her downward progress was arrested when her hull struck the bottom. The bow remained above the surface, and the crew moved forward of the wheelhouse, where they stayed to wait for a rescue. 

Three near-shore response boats from local agencies arrived at about 1940 hours, and they took the crew aboard for safe delivery ashore. No injuries were reported; the Jacqueline A fully sank shortly after. 

The vessel was raised by a salvage crew on August 21. The Jacqueline A's systems had sustained extensive damage throughout, and the cost of repairs was more than the value of the towboat, so she was declared a total loss. 

During a post-casualty inspection, the inboard plating of the bulwarks was cut away, and revealed wastage with holes of 2-8 inches in diameter on the deck plating of the small void spaces inside. The exterior of the bulwarks also showed substantial wastage, some of which had been covered with fiberglass patches. The port engineer had identified the enclosed bulwarks as a hazard earlier, and they were due for removal during the Louisiana yard repair period. 

There was also a previously-undetected hole on the stern hull plating - the aft bulkhead of the lazarette - that was less than one inch in diameter. Gaskets were also missing from weathertight doors on the deckhouse.  

The Coast Guard's Marine Safety Center concluded that the Jacqueline A's lazarette began to flood through the small hole. As the stern sank lower, the holes in the deck would have accelerated the rate of flooding. Once the lazarette filled, it would have begun flooding the engine room via the unsealed wire runs at up to 1,100 gallons a minute. From start to finish, once the aft deck was submerged, the towboat would have gone down in 9-16 minutes. 

"The lazarette was a relatively small space compared to the engine room. If the wire runs had been sealed, flooding would have been contained to the lazarette, and the vessel likely would have remained afloat," concluded NTSB. 

The agency cautioned operators, yards and designers to avoid creating small void spaces, where moisture can accumulate undetected and lead to severe, undetectable corrosion. It also reminded owners of the need for proper sealing of wire runs and other penetrations through bulkheads, since holes enable progressive flooding. 

Informally, NTSB noted that the crew could have observed the vessel's "poor material condition" when they arrived at the pier and should have conducted a more thorough inspection - including opening up the lazarette for a visual examination - before getting under way.