Video: Cargo Ship Damaged in Collision off Greece

Turkish-owned cargo ship is reportedly refusing assistance (Hellenic Coast Guard)

PUBLISHED JUN 2, 2023 3:13 PM BY THE MARITIME EXECUTIVE

 

The Hellenic Coast Guard is responding to the collision of two cargo ships sailing north northwest of the Greek island of Chios in the eastern Aegean near Turkey. Reports are that there are no casualties although a Turkish-owned vessel is showing a large hole in its starboard side but is reportedly refusing assistance from the Greek teams and is instead attempting to sail to Turkey accompanied by a Turkish Coast Guard vessel.

The ANT (5,095 dwt), a Turkish-owned cargo ship registered in Vanuatu was apparently hit broadside by the Potentia (12,767 dwt), a cargo ship managed out of Singapore. The ANT is showing in pictures down at the bow with a significant impact wound about a third of the way back along her 327-foot long hull. The 17-year-old vessel’s AIS data shows that the vessel departed Abu Qir, Egypt on May 31 and was bound for Ukraine.

 

 

 

The Hellenic Coast Guard reports that there are 13 crewmembers aboard the vessel, including it is believed 10 Turkish citizens. Pictures show one of the vessel’s lifeboats in the water and the crew appears to be mustered on the stern in lifejackets. Greek media reports said the Hellenic Coast Guard indicated to the Turkish captain that they were in Greece’s maritime zone but the captain refused aid. The AIS shows the vessel proceeding at approximately four knots.

The other vessel, the Potentia is registered in Singapore. The 454-foot cargo ship was underway having departed Izmir, Turkey on June 2 bounded for Dieppe, France. Its AIS signal appears to indicate that it was traveling at 11.2 knots with Force 4 winds in the area. The Coast Guard reports there are 19 crewmembers aboard.

 

 

The Coast Guard said that seven of its patrol boats, a larger vessel along with a ship from the Navy responded to the scene. In addition, three helicopters were assisting and had put teams aboard the ships to determine the condition of the crews. 

There are no reports of pollution. Both vessel were reported to be traveling only under ballast having offloaded their cargoes. The Coast Guard said it is reviewing data seeking to determine the cause of the collision.

THEY WOBBLED THE JOB

Longshore Workers “No Show” at West Coast Ports Closing Terminals

Port of Oakland, California reportedly closed due to a lack of workers while other terminals are running with reduced staffing

PUBLISHED JUN 2, 2023 4:18 PM BY THE MARITIME EXECUTIVE

 

Members of the International Longshore and Warehouse Union (ILWU) failed to show up for their shifts this morning at many of the terminals on the West Coast forcing operations in some places to be suspended while others are proceeding with reduced resources. Two months ago, members of the union’s local in California also failed to show up for assigned shifts as the contract negotiations for the approximately 22,000 longshore workers at 29 West Coast have dragged on for a year.

The Pacific Maritime Association Tweeted that “concerted and disruptive work actions” by the ILWU are underway at terminals ranging from the ports of Los Angeles and Long Beach to Oakland, Hueneme, Tacoma, and Seattle. Union headquarters declined to comment on the reports citing the agreed blackout on media statements that has been in place since the beginning of the contract negotiations in May 2022.

The PMA which represents the employers is saying that the union’s actions that have effectively shut down operations at some marine terminals at the Ports of Los Angeles and Long Beach. Operations at some of the ports are reported to have been “severely impacted,” with for example the two largest terminals at the Port of Oakland reporting they had closed due to a lack of workers. Some truckers are telling the media that they have been turned away at the gates to the Southern California ports.

Late today, the ILWU headquarters issued a statement. “Any reports that negotiations have broken down are false,” stated International President Willie Adams, “We are getting there but it’s important to understand that West Coast dockworkers kept the economy going during the pandemic and lost their lives doing so. We aren’t going to settle for an economic package that doesn’t recognize the heroic efforts and personal sacrifices of the ILWU workforce that lifted the shipping industry to record profits.”   

Earlier, Local 13 which represents members at the Southern California ports issued a statement on behalf of its leadership regarding its perception of the situation at the ports of Los Angeles and Long Beach. They criticized the “foreign-owned ocean carriers and terminal operators who reap hundreds of billions of dollars in profit on the backs of those workers.” The local says it is fighting for respect.

“The rank-and-file membership of the Southern California ILWU has taken it upon themselves to voice their displeasure with the ocean carriers’ and terminal operators’ position,” Local 13 writes in its statement. They said that “The workforce’s requests are not outlandish; they are basic requests that will ensure the workforce is treated with dignity and respect that they have fought so hard to earn.” They said however that “cargo operations in the ports continue as longshore workers remain on the job.”

There is no indication of how many shifts the workers might be skipping. In the action in April, they remained off work for approximately 24 hours, also skipping Friday shifts before the Easter holiday weekend.

Both sides have agreed not to publicly discuss the details of the negotiations but in late April reported that there had been a tentative agreement on key issues while the PMA warned that critical issues remained to be resolved. Media reports suggested that the remaining issues were wages and raises after agreements had been reached early on regarding medical benefits and it was believed that the terminal automation issues were resolved in April.

Today’s job action comes as the West Coast ports were struggling to regain market share and stabilize their losses. Cargo volumes have plummeted in some cases to pre-pandemic levels with reports that the declines were exacerbated by fears of disruptions as the union contract tracks dragged on. Port officials have said it is critical to have resolution on the contract to reverse the trend by shippers and carriers to divert volumes to the U.S. Gulf Coast and East Coast ports. 

DFDS Changes Course/Speed to Protect Endangered Mediterranean Whales

Pod of whales seen moving together in the Hellenic Trench (DFDS)

PUBLISHED JUN 2, 2023 6:25 PM BY THE MARITIME EXECUTIVE

 

European ferry operator DFDS is altering the operations of its vessels in the Eastern Mediterranean to protect sperm whales. Environmentalists report that the animals, which are the largest toothed whale species is endangered in the Mediterranean in part due to the risk of being struck by large and fast-moving ships.

Working in partnership with a coalition of non-governmental organizations, the Scandinavian ferry operator will make route adjustments to avoid high-risk areas that are known for frequent sperm whale sightings, particularly around the Southern part of Greece. Its vessels sailing in the waters will also slow down in the high-risk zones to minimize the potential of collisions.

The company also reports that it has initiated a policy encouraging all masters to maintain vigilance, identify whales, and communicate sightings promptly to DFDS vessels and other ships in the vicinity. DFDS will implement the measures when crossing through the core sperm whale habitat in the Hellenic Trench, where scientists estimated that only around 200 sperm whales remain.  

DFDS is reported to be the largest operator of some of the fastest-moving vessels in the Hellenic Trench area that runs from the Greek Ionian islands to the southwest of Crete. It is considered to be a critical habitat for protected and endangered species of cetaceans, including the whales along with dolphins and porpoises.

DFDS joins other shipping companies including MSC and Euronav that are now instructing their vessels to avoid the high-risk areas by altering their routes. Key industry associations have also been encouraging members to undertake similar actions. The ferry operator is working with IFAW, OceanCare, the Pelagos Cetacean Research Institute, and WWF Greece in developing these efforts to protect the whale.

The decision by the operator to be at the forefront in protecting the sperm whales whose population has been classified as endangered is expected to halve the risk of its ships colliding with the mammals. Long-term data gathered by research and conservation groups indicate that if all ships avoided the areas of highest risk, the overall risk of collisions would be reduced by 70 percent. According to these groups, the commitment by DFDS, coupled with the re-routing measures implemented by other shipping companies, would result in the total collision risk to sperm whales in the Hellenic Trench being cut by an estimated 27 percent.

“Our responsibility to the marine life in the waters we operate is crucial. We want to ensure that our operations respect the different ecosystems,” said Sofie Lindegaard, DFDS Head of Group Sustainability.

DFDS recognizes that the route adjustments and slow steaming has extended its trip durations, but says the impact has been minimal with an average of 15 to 30-minute increase per leg. The operator’s ships cross the main sperm whale habitat more than 1,600 times a year, and almost 70 percent of the journeys pass through the main area of concern with the risk of collisions with whales increasing rapidly when ships are at a high speed. Currently, DFDS vessels are some of the fastest in the area and comprise 48 percent of the ship traffic traveling at speeds greater than 17 knots.

While outside of the Mediterranean sperm whales are listed as “vulnerable,” the Mediterranean population is listed as “endangered” on the IUCN Red List of Threatened Species due to its small size and geographic isolation.

Methanol Bunkering Arrives in Antwerp and Scandinavia

Nore joins Bunker One's fleet in Sweden becoming its first tanker ready to bunker methanol (Bunker One)

PUBLISHED JUN 2, 2023 7:31 PM BY THE MARITIME EXECUTIVE

 

The bunkering industry is working to adapt to alternative fuels and prepare the infrastructure as ship owners and operators accelerate the pace of the adoption of methanol as a marine fuel. Maersk and others have commented that having the supply of methanol will be one of the biggest challenges for their pioneering vessels.

Analysts at DNV have estimated that methanol will overtake other existing fuel options such as liquified natural gas and become one of the first zero-carbon alternative fuels. They calculate in their Alternative Fuels Insights database that there are currently just 26 vessels in operation capable of using methanol as their primary fuel. However, the number is growing with Maersk scheduled to introduce its pioneering containership, a Scandinavia feeder, in just three months. DNV notes that four additional methanol-fueled this are due this year, but expects that the total will double in 2024 to 59 vessels and again in 2025 to 94 vessels. By 2028, current orders show that 127 methanol-fueled vessels will have been delivered.

Preparing for the new fuel, the Port of Antwerp-Bruges reported that the first methanol bunkering was completed yesterday at the port on June 1. They reported in a posting on social media that 475 metric tonnes of methanol were bunkered from barge Tamariva to Proman Stena Marine at SEA-invest's terminal in Antwerp.

“With this first, we are further building on our global position as a bunkering port by actively promoting and developing a clear framework for the use of alternative fuels, such as LNG, ammonia, hydrogen, and methanol. Becoming a multifuel port is our goal,” writes Antwerp-Bruges. They reported that currently six million metric tonnes of conventional fuels (such as low-sulfur oil or gas oil) are being bunkered at the port.

 

Port of Antwerp saw its first methanol bunkering to one of Proman Stena's new methanol-fueled tankers (Port of Antwerp-Bruges)

 

To the north in Scandinavia, Bunker One reported it has chartered a bunker vessel that will become the supplier's first methanol-ready bunker tanker. The company has started a new long-term charter of bunker tanker Nore, a 16-year old vessel registered in Malta. The 297-foot vessel will serve as a multi-fuel bunkering tanker with 3,500-ton storage, which can be split with different products among her tank pairs. They reported that the vessel received all bunkering permits and certifications for operating in Scandinavia and Northern Europe in May and becomes the fourth bunker tanker in Bunker One Sweden’s fleet.

“Gothenburg, Skaw, and the entire Scandinavian region is one of our most important bunkering hubs with significant vessel traffic passing through the area, so to start building the infrastructure and have it in place is going to send a strong signal to our customers that if they bet on building ships powered by carbon emissions reducing products, we will be ready to supply them,” said Peter Zachariassen, CEO of Bunker One.

The company notes that it has working hard to prepare the operation, securing the necessary certifications. “We’ve been working for some time, getting the landside infrastructure in place, chartering the tanker, and getting the licenses from the maritime authorities,” says Petter Jonason, Bunker One Sweden’s Chief Operating Officer.

Being ready to supply alternative products in Scandinavia marks a significant event for the rest of the maritime industry says Bunker One. With some shipping and logistics companies still in the planning phase of investing in new ships with alternative engine fuel, the company believes that the possibility of bunkering methanol is extremely valuable in terms of assisting them in their decision-making process. 

Seaspan Starts “Prototype Block” for Canada's First Polar Icebreaker

Seaspan cut the first steel for a prototype block as it prepares to build Canada's new polar icebreaker (Seaspan Shipyards)

PUBLISHED JUN 2, 2023 8:06 PM BY THE MARITIME EXECUTIVE

 

Canada’s Seaspan Shipyards reported that work began this week as the next step in preparing for full scale construction of the Canada’s first new heavy polar icebreaker in more than 60 years. The shipyard located near Vancouver in British Columbia cut the first pieces of steel in a test block they will be assembling to confirm the unique construction processes and train staff before work begins to build the vessel in 2024.

With Canada’s current largest Icebreaker, the CCGS Louis S. St-Laurent, set to retire at the end of the decade after 60 years of service, the new polar icebreaker has become the cornerstone of the Canadian government’s National Shipbuilding Strategy. Construction on the vessel however is far behind the original timeline with critics also saying that its costs will skyrocket before it is finally delivered. Canada first announced plans for the new vessel in 2018. The following year, Vard was retained to design work and then in September 2020, Seaspan Shipyards and Genoa Design announced that they had entered into an exclusive teaming agreement to design and build the future polar Icebreakers. The government has already announced plans for a second vessel before work had begun on the first ship.

Before full rate construction on the polar icebreaker begins, Seaspan is developing a prototype block to test the new systems, processes, people, and tools that are required to work with some of the very thick, specialized steel that is required to manufacture a heavy polar icebreaker. According to the shipyard, some of this steel will be up to 60-millimeters thick, to enable the ship to safely navigate through the multi-year ice that is found in the Arctic. 

“Cutting steel on the prototype block is a key milestone for the Polar Icebreaker Program and demonstrates Seaspan’s capabilities across engineering, design, supply chain, planning and production,” said Martin Edwards, Chief Program Officer at Seaspan Shipyards. He noted that the lessons learned from building the block will be used to help improve the quality and efficiency of the process for designing and manufacturing the vessel when production begins in late 2024.

Seaspan reports it has already gained significant experience designing and building polar Ccass vessels including three Offshore Fisheries Science Vessels which are now in service with the Canadian Coast Guard as well as an Offshore Oceanographic Science Vessel that is currently under construction at its Vancouver Shipyards location and a class of sixteen Multi-Purpose Vessels (also Polar Class) that is currently in design.

They are highlighting that the Polar Icebreaker will be an incredibly complex ship, designed to operate in the Arctic’s ice-covered waters, and will play a critical role in enabling the Canadian Coast Guard to transit and protect the Arctic coastline. With a displacement of 27,876 tonnes, the icebreaker will be 518 feet in length. It will be able to operate farther north, in more difficult ice conditions, and for longer periods than any of Canada’s current or previous icebreakers.

As U$ debt limit crisis abates, environmental critics fear dangerous pipeline precedent

The Canadian Press

The U.S. has narrowly averted another debt ceiling crisis, but environmentalists say the solution comes at too steep a price for the planet. 

Once signed by President Joe Biden, the bill passed late Thursday in the Senate will also fast-track a controversial pipeline project in West Virginia. 

The Sierra Club says that creates a "dangerous precedent" for similar projects, including a stalled underwater tunnel for Enbridge-owned Line 5 in Michigan. 

Michigan's attorney general is in court trying to get the cross-border pipeline shut down, fearing an ecological disaster in the Great Lakes.

Sierra Club executive director Ben Jealous fears that future congressional action could be used to exempt projects like Line 5 from environmental regulations. 

The new bill, the Fiscal Responsibility Act, marks just the latest legislative win for West Virginia Sen. Joe Manchin, who has been trying for years to get the Mountain Valley natural gas line completed. 

This report by The Canadian Press was first published June 2, 2023.

Pay gap leaves women faring worse than men amid rising living costs: Survey

Holly McKenzie-Sutter, BNN Bloomberg

As Canadians are squeezed by rising costs of living, results from a recent survey suggest women in the workforce are faring worse than men as they report lower salaries, more financial instability and greater reliance on additional income streams.

PAYCHEQUE-TO-PAYCHEQUE

The survey on diversity and inclusion in the workplace from recruitment firm Robert Walters surveyed 2,000 white collar workers in Canada, as part of a wider survey of 6,000 working professionals across North America.

It found that one in 10 women rely on additional income outside their full-time jobs to get by, four per cent more than surveyed men. Only a quarter of women said they felt they could live comfortably with disposable income for discretionary spending and savings, compared with 36 per cent of men.

Twenty-one per cent of women said they live paycheque-to-paycheque, compared with 14 per cent of their male colleagues.

Coral Bamgboye, head of Equity, Diversity and Inclusion at Robert Walters Canada, noted that the findings come as living costs in areas like home prices, groceries and gas have been on the rise.

“Now more than ever, employees are relying on their salaries and job security to ensure they stay afloat more than ever – but with 7 per cent more women than men stating that they live paycheque-to-paycheque with no disposable income, it’s evident that men have an unfair advantage in living in the current economy,” she said in a news release.

PAY GAP

Women reported lower salaries than men and more difficulty obtaining raises.

Thirty-nine per cent of women reported that they earn a salary of US$55,000 or more, compared with 67 per cent of men who earned within that range.

Fewer women had received pay raises over the last year, with 24 per cent of women saying they had not received a raise within 12 months compared with 15 per cent of men.

Forty per cent of women reported feeling underpaid for what they do, compared with 24 per cent of men. Despite that, women reported being more hesitant to ask their employers for more money.

Nearly double the amount of women than men said they lacked the confidence to negotiate for better pay, and 16 per cent said they were hesitant to ask for raises because they did not believe their employer would provide one.

The survey also noted a gap when it comes to monetary benefits between employed men and women.

More men reported access to bonuses, equity, company stocks or shares and mortgage allowances from their jobs than women did.

WHAT CAN EMPLOYERS DO?

Bamgboye said employers looking to address the gender pay gap should support employees, and be prepared to make changes around how they benchmark salaries, for example, “without waiting for employees to seek fair pay themselves.”

She also said employers should be mindful of the talent shortage in the workforce and the possibility that women who feel discouraged by pay disparities may choose to leave their organizations for other opportunities.

“If women find it significantly more difficult getting by on their current wage, particularly as we navigate through this tough economy, it may be more appealing to look for new jobs rather than preparing for conversations around salary negotiation – especially when many believe these conversations won’t be successful,” she said.

METHODOLOGY

The survey was conducted in March of 2023 and was completed by 6,000+ North American professionals (white-collar roles), of which +2,000 were Canadian. It was conducted in partnership with international market research consultancy Censuswide. Robert Walters devised a series of multiple choice and open-text questions.

How this Canadian tech company applies AI to sports analytics

Daniel Johnson , BNN Bloomberg

The founder of Sportlogiq, a Canadian company bringing AI to athletics, said sentiment surrounding AI has shot up over the past several months – and his business is seizing the moment with a renewed focus on growth.

Sportlogiq leverages AI and data collection for insights into sports. The Montreal-based company provides analytics and other insights to professional sports teams has attracted investment from prominent businessman and ‘Shark Tank’ personality Mark Cuban.

Craig Buntin, the founder and chief executive officer of the Montreal-based company, said in an interview with BNN Bloomberg Friday that it’s been “interesting to watch the hype come back to AI” following the release of ChatGPT and other language generation models. 

“We saw huge hype in AI very early on when machine learning started getting great processing and became accessible,” Buntin said.

That early excitement about AI died down when COVID-19 set in three years ago and investors pivoted focus, he explained, but the trend has since reversed.

“We've seen a lot of it (hype) come back over the last six months.”

Amid this renewed excitement for AI, Buntin said Sportlogiq is now mainly focused on profit. 

“For us, we've just been deadly focused on profitability, on scaling, [and] building valuable products for our customers,” he said. 

Buntin said his company uses shape and motion patterns from individual pixels on a screen. This information is helpful in “assessing what’s happening and creating numbers and labels on events and player tracking” for sporting event,” he said.

“Once you've got all that data, using game models and machine learning, and even in some cases natural language models, to then translate that and turn it into useful information that people who don't build AI can actually engage with, that’s where the critical piece has been,” Buntin said. 

Sportlogiq’s research and development efforts have also benefited from supportive governments, according to Buntin. 

“In Canada and in Quebec, I think we've got a crazy competitive advantage over the rest of the world on that front. If we see an early-stage technology that we know is going to have a massive societal impact, the investment that we have in developing that and creating a lot of that IP [intellectual property], we are world-class,” he said.

Employees often 'collateral damage' when activist investors come calling

Amanda Stephenson, The Canadian Press

Experts say 1,500 recently announced job losses at Suncor Energy Inc. are an example of the type of "collateral damage" that can occur when an activist investor comes calling.

The Calgary-headquartered oil company — which has operations in Canada, the U.S., and internationally — confirmed the job reductions Thursday, less than two months after new CEO Rich Kruger took the reins at Suncor with a mandate to reduce costs and improve the company's lagging financial performance.

Kruger, the former CEO of Imperial Oil Ltd., was lured out of retirement to try to turn Suncor around just a year after U.S.-based Elliott Investment Management — which at the time owned a 3.4 per cent economic interest in Suncor — began aggressively pushing for change at the company, whose share price has lagged its peers in recent years.

Last month, Kruger hinted job reductions could be coming, saying in an interview he would "look hard and long at the work people do" to ensure that everything being done at the company adds value to the bottom line.

Richard Power, associate professor with the Rotman School of Management at the University of Toronto, said those working at Suncor would have been wise to be nervous as soon as it became clear Elliott had their employer in its sights. 

"They'd be naive not to think that they might be affected by this. An activist investor is going to try to rationalize costs, and one of the highest costs you’re going to have is labour costs," said Power.

He added that activist investors target companies they feel are under-performing, and where they believe they have identified a plan to unlock more value.

"I’m certainly not trying to minimize the contribution of employees, but to a large part, the employees are the low-hanging fruit," Power said. 

Cost-cutting is rarely the sole aim of activist investors, most of whom are well-versed in the companies they target and come to the board with expansive proposals for change.

At Suncor, for example, Elliott Investment Management successfully pushed the company to complete a strategic review of the merits of holding onto its Petro-Canada retail chain, and has also called on the company to improve its workplace safety record.

However, there's no denying that employees often get caught in the crossfire when activist investors get involved. There were thousands of job losses at Canadian Pacific Railway Ltd. (now Canadian Pacific Kansas City) after well-known activist Bill Ackman successfully campaigned in 2012 for Hunter Harrison to replace Fred Green as CEO and implement an ambitious cost-cutting plan.

More recently, in the U.S., companies such as Walt Disney Co. and Facebook parent Meta have also announced major layoffs and restructuring plans in the aftermath of public pressure from activists.

Power said companies have a fiduciary duty to their shareholders, and in some cases, an activist investor may be right in pointing out that a company's head count needs to be trimmed in order to maximize profits.

"Remember, they (the activists) have done their homework," he said. "That may be where the costs have to come from."

But Anthony Schein, director of shareholder advocacy with the Shareholder Association for Research and Education (SHARE), said companies are accountable to other stakeholders, not just shareholders.

"We at SHARE certainly take that perspective that of course, maximizing profit is an obligation of corporate directors and management. But it's not the only obligation either," Schein said.

He added that activist investing can be risky, as it can sacrifice long-term value — and vital human resources — for short-term share price appreciation.

"We've seen over and over again that when companies aren't paying attention to their people and how they manage and develop their people, then we see skills gaps, labour shortages, and safety risks," Schein said.

"So much of what a company like Suncor has is its know-how. That comes from people, and there's no way of getting around that at a company."

Suncor said Thursday it is committed to treating its employees with dignity and respect throughout what will inevitably be a difficult process.

The company also emphasized it will not make any cuts that could affect worker safety.

CANADA

'Good riddance' or 'don't unfriend us'? Publishers torn over Meta move to block news

Mickey Djuric, The Canadian Press

From "good riddance" to "don't unfriend us," independent publishers are expressing mixed feelings about Meta's decision to temporarily block news on Instagram and Facebook for some of its Canadian users. 

The company said it's a response to the Liberal government's Bill C-18, which would require tech giants to pay publishers for linking to or otherwise repurposing news content. 

Kerry Benjoe, president of Eagle Feather News Media in Saskatchewan, said she relies on Facebook to grow her newspaper's audience and ad revenue. 

If Meta were to permanently block news, it would impact the way she does business.

Eagle Feather News is a monthly newspaper that distributes 10,000 copies to every First Nation in the province. Benjoe said her reach is restricted, considering the size of Saskatchewan, so she leans to social media. 

"It's going to really limit the audience that I want to reach, and not just Indigenous people," Benjoe said in an interview regarding Meta's decision.

"It's really important for the rest of the public to hear these (Indigenous) stories and see all the good things happening in these communities that are so isolated from major urban settings."

Many local news publishers have popped up as a result of newsroom layoffs over the years, and each rely on social media in different ways to either grow their business or audience. 

Darren Krause fully launched his online news site, LiveWire Calgary, about five years ago, after his employer Torstar shuttered its StarMetro newspaper chain, which offered free commuter papers. 

The former managing editor of Metro Calgary built his business on filling the gaps in hyper-local news, and said he now has up to 100,000 page views per month, most of which is driven by Google searches and social media. 

"Being an online news organization, the clicks generate cash," Krause said.

He said he's less concerned about Meta blocking news on Facebook than he is about Google blocking news — a test Google ran earlier this year that removed news links for less than four per cent of its Canadian users. 

"At least 60 per cent of my news is generated by Google's search engine," Krause said. LiveWire Calgary is also part of the Google News Initiative that helps independent newsrooms grow. 

"It's counterintuitive for them, because on one hand they're trying to support better, stronger local news, but they don't want to have to pay for it."

The online news bill could pass as early as this month. If it does, Meta and Google would be required to enter into agreements with news publishers to pay them for news content that appears on their sites if it helps the tech giants generate money. 

Meta said it will comply by ending news on Facebook and Instagram all together. The WhatsApp and Messenger apps will not be affected. Google has also indicated that removing news could be an option. 

The Office of the Parliamentary Budget Officer released a report last year that projected Bill C-18 will generate over $300 million annually. But the majority of that will likely to go to big Canadian broadcasters, leaving small independent publishers feeling like they'll be getting just a small crumble of the pie. 

Will Pearson, co-publisher of Peterborough Currents, said he's opposed to C-18 because he won't benefit from it, and he believes publishers need to develop new ways to reach people that aren't mediated by tech companies.

He said it's time for media to say "good riddance" to Facebook. Still, he does wonder what misinformation and low-quality news sources would fill that vacuum where reliable sources once existed. 

"I do think the relationship between news and social media is strained. The incentives are not aligned, and I wonder why the government and big media publishers are finding a solution to their budget crisis that locks them in that relationship when we're never going to control Facebook or whether they give us reach," he said. 

Pearson, whose digital news site has 3,6000 newsletter subscriptions, said he's more focused on growing his business through subscriptions, newsletters and interacting with his community in person. 

"Facebook says they don't need news," Pearson said. "I feel like we don't need Facebook."

This report by The Canadian Press was first published June 2, 2023.

Meta to test blocking news on Instagram,

Facebook for some Canadians

Mickey Djuric, The Canadian Press

Meta is preparing to block news for some Canadians on Facebook and Instagram in a temporary test that is expected to last the majority of the month.

The Silicon Valley tech giant is following in the steps of Google, which blocked news links for about five weeks earlier this year for some of its Canadian users in response to a controversial Liberal government bill.

Bill C-18, which is currently being studied in the Senate, will require tech giants to pay publishers for linking to or otherwise repurposing their content online.

Meta said it's prepared to block news permanently on Facebook and Instagram if the bill passes, which the government said could happen this month.

Rachel Curran, head of public policy for Meta Canada, said this first temporary move will affect one to five per cent of its 24 million Canadian users, with the number of those impacted fluctuating throughout the test.

Randomly selected Canadian users will not be able to see or share news content in Canada either on Instagram or Facebook.

She said that could include news links to articles, reels — which are short-form videos — or stories, which are photos and videos that disappear after 24 hours.

However, the experience won't be the same for every user who is subject to the test.

"It won't be a uniform experience, necessarily. Some news links won't be shareable on Facebook, but it might not be that experience on Instagram. It will be a different experience on different surfaces," Curran said in an interview with The Canadian Press.

Canadian Heritage Minister Pablo Rodriguez said in a statement Thursday evening that the fact that Facebook is still refusing to work with Canadians shows how deeply irresponsible the company is.

"When a big tech company, whatever the size is, the amount of money and the powerful lawyers they have, they come here and they tell us, 'If you don’t do this or that, then I’m pulling the plug,' – that’s a threat and that is unacceptable," he said in the statement.

"I never did anything because I was afraid of a threat, and I will never do it."

Rodriguez added in a tweet that "Canadians will not be intimidated by these tactics."

Meta said it is picking random news publishers that will be notified that some people in Canada will not be able to see or share their news content throughout the test. They will still be able to access their accounts, pages, businesses suites and advertising.

International news companies such as the New York Times or BBC could also have their content blocked in Canada during the test, if they are randomly selected. However, people outside of Canada will not be affected.

"It's only going to impact your experience ... if you're in Canada," Curran said.

Meta is defining news as it's described in the Liberal government's online news act.

"The legislation states that news outlets are in scope if they primarily report on, investigate or explain current issues or events of public interests," said Curran.

Content that doesn't fall under that definition will not be blocked from Canadians. When Facebook blocked news in Australia in 2021 because of a similar bill, there was widespread concern that trusted sources would be unavailable, while pages that published misinformation flourished.

Curran said affected Canadians will still be able to use their platforms to access information from a variety of sources including government pages, organizations and universities.

"We think all of that is good information. They're also seeing and sharing things that interest them and entertain them. We would not classify that as misinformation. That's great information and that will continue to be shared and to be viewable," Curran said, adding that the company will continue to address misinformation on its site through a global fact-checking program.

Meta's test is designed to ensure that non-news agencies don't get caught in the dragnet should they block news permanently.

The company said it doesn't want to accidentally block emergency services, community organizations, politicians or government pages, which happened in Australia.

Legacy media and broadcasters have praised the federal Liberals' online news bill because it would bring in more money for shrinking newsrooms. Companies such as Meta and Google have been blamed for disrupting and dominating the advertising industry, eclipsing smaller, traditional players.

Curran said removing journalism from Meta's platforms is a business decision, and the company makes "negligible amounts" of revenue from news content.

The company said less than three per cent of what people see in their Facebook feeds are posts with links to news articles, and many of its users believe that is already "too much" news.

"We're facing a lot of competitive pressures and competition for user time and attention. We're also facing some pretty serious economic headwinds, and a macro economic climate that's a bit uncertain," Curran said.

"Of course news have value from a social perspective. It's valuable to our democracy. It just doesn't have much commercial or economic value to our company."

This report by The Canadian Press was first published June 1, 2023.

———

Meta funds a limited number of fellowships that support emerging journalists at The Canadian Press.