It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Wednesday, August 21, 2024
First Rotor Sails Retrofitted to MOL Capesize Bulker Operating for Vale
Camellia Dream was the first capesize bulker retrofitted with rotor sails as MOL and Vale expand wind-assisted propulsion (MOL)
The bulker segment continues to be at the forefront of the deployment of wind-assisted propulsion with Mitsui O.S.K. Lines and Brazilian mining giant Vale reporting the first retrofit of rotor sails to a capesize bulker. It adds wind-assisted propulsion to another category of ships in the segment which has already deployed rotors and rigid sails to the largest bulkers as well as smaller vessels.
The Camellia Dream, a 206,800 dwt bulker built in Japan and delivered a decade ago, was recently retrofitted with rotor sails manufactured by Norsepower. The vessel which has an overall length of 980 feet (299 meters) was retrofitted with two rotors. Each stands approximately 115 feet (35 meters) with a diameter of 16.5 feet (5 meters). The ship is registered in Japan.
The vessel departed Ponta da Madeira, Brazil earlier on August 17 on the return leg of its first voyage since the retrofit was completed. It had departed the Far East in early July arriving in South America in mid-August. This is the vessel’s normal routing transporting iron ore for Vale under a midterm contract with MOL.
According to companies, the vessel is expected to achieve about 6 to 10 percent fuel and GHG emission reductions. The rotors are being combined with voyage optimization technology to maximize the results.
It is the latest in a series of efforts by Vale in conjunction with ship operators. Vale reports it has a target for a 15 percent reduction in scope emissions by 20235, related to the value chain of which shipping is included. The company does not own the vessels so calculates the savings as part of its broader supply chain.
Vale began employing wind-assisted technology with a new build, Sea Zhoushan, a 325,000 dwt bulker that was fitted with five rotors in 2021. The company also reached an agreement for the Sohar Max, a 400,000 dwt ore carrier owned by Asyad of Oman to be fitted with five rotors. It is the first installation of rotors on the world’s largest bulk carriers.
Other operators in the segment are also retrofitting rotors to smaller classes of bulkers. The vessel’s long routing and relatively slow sailing speeds mean they are well suited for the technology.
Philippine Coast Guard Makes Progress on Tanker Wreck Cleanup
The Philippine Coast Guard and a local salvage contractor are making slow but steady progress on removing oil from the sunken tanker Terra Nova, which went down in severe weather off Bataan last month.
Terra Nova sank during Typhoon Gaemi on July 25, and it is resting in the shallow waters of Manila Bay off the town of Limay. The vessel had an estimated 370,000 gallons of petroleum on board, and an unknown quantity of oil spilled out of its holds and into the water.
As of August 19, salvor Harbor Star had removed about 11,000 liters of fuel oil from the vessel's tanks using hot-tapping methods, including 2,500 liters on Monday alone. The company has brought in an extra booster pump to speed up oil siphoning.
Meanwhile, ongoing monitoring and sampling around the wreck reveal little new spillage, save for a small sheen near the salvor's barge. Shoreline oiling has largely dissipated, and Philippines' Bureau of Fisheries and Aquatic Resources (BFAR) says that all seafood products from the area are now safe to eat.
The Terra Nova's ownership interests have pledged to pay damages to those affected by the spill, according to Philippine Department of Justice Undersecretary Raul Vasquez. "We used the Mindoro [MT Princess Empress] oil spill as a template, and the good news is that the owner of Terra Nova, its insurer, and the IOPC immediately stepped forward," he told Manila Times. The provincial government of Cavite - where fishing interests were most affected - is seeking 10 million Philippine pesos (about $180,000) in compensation.
A team of seven advisors from the U.S. National Oceanic and Atmospheric Administration (NOAA) and the U.S. Coast Guard have finished up a technical-assistance deployment to assist the cleanup effort, and are returning to the United States. NOAA's spill modeling tools were used by Philippine authorities to predict the course of drifting slicks.
Salvage operations also continue for two smaller tankers, the Jason Bradley and the Mirola 1, which went down shortly after the Terra Nova. The work currently focuses on plugging tanks and voids to prevent further release of petroleum.
Removal of Capsized Oil Barge off Tobago Completed After Six Months
Gulfstream barge was moved offshore after a six-month recovery operation (TEMA)
The mysterious oil barge that overturned and was leaking oil off the coast of Tobago has finally been salvaged as the search for the culprits continues. Trinidad and Tobago’s Ministry of Energy and Energy Industries (TEMA) reported the successful refloating of the barge as the last step in the recovery efforts that are expected to cost as much as $30 million.
Refloating of the Gulfstream barge began yesterday afternoon, August 19, with the effort requiring approximately six hours. Shortly before midnight local time the salvage team confirmed the Gulfstream was afloat. T&T Salvage, which had been working with the ministry for months, oversaw the operation.
The barge was discovered by residents overturned and wedged on the west coast of Tobago on February 7 leaking oil. At first, the Coast Guard and local officials thought a cargo ship had capsized, but they were unable to locate any survivors. Further investigation revealed it was a large ocean-going oil barge that had been under tow by a tugboat, which could not be located.
T&T launched a containment and remediation effort requesting international assistance. The barge had a capacity of approximately 85,000 barrels. As of April, the teams reported that over 32,000 barrels had been recovered from the barge. A nine-mile section of the coastline was also covered with the oil while there had been fears it might also wash toward neighboring countries.
The salvage team had to postpone the planned removal operation which had been set for August 5 and 6. It was delayed by the rough surf and conditions created by tropical storm (later hurricane) Ernesto.
Salvage teams were securing the barge while divers began a survey (TEMA)
The barge was moved overnight to a position approximately three nautical miles off the coast with tugs managing the overturned wreck. Today, divers were beginning an underwater survey of the barge accessing areas that had been aground. They are also looking for hanging debris that needs to be removed before a tow can begin.
The plan is to take the barge from Tobago to Port-of-Spain, Trinidad. The towing operation is expected to take approximately 33 hours. It will be accompanied by a pollution response team on contingency vessels following the two tugs that will maneuver the overturned Gulfstream barge.
The Ministry of Energy and Energy Industries said the beach and coastal cleanup has been completed, and it was closing its temporary facility at Cove, Tobago.
The search continues for the crew of the tug that was operating the tow and which abandoned the barge. The tug went dark turning off its locator signal, but further analysis identified it was the Solo Creed, built in 1976 in the United States. It is 128 feet (39 meters) with 538 gross tons. Ownership is unclear as well as its registry. Most databases reflect it as the Ranger registered in Tanzania, but in most cases, the data is reported as old or the owners as unknown.
The tug turned up in Angola in May 2024 and the government of T&T was seeking help from the local authorities to detain the vessel and its crew. T&T’s Energy Minister had also said that they were asking for assistance from Panama, Aruba, Curacao, Tanzania, and Nigeria in the investigation into the vessel.
The International Pollution Fund recognized the claims made by Trinidad and Tobago. It was making up to $50 million available as compensation. It was to be used to assist in the cleanup and to provide compensation to those affected by the spill.
Resolve Mobilizes Crane to Remove $3M Yacht From Reef off Puerto Rico
The multimillion-dollar yacht that ran aground on a reef off Culebra, Puerto Rico was lucky enough to survive Storm Ernesto unharmed, and the salvor is mobilizing more equipment to lift it safely off the shoal - so long as the hurricane-season weather holds.
On July 21, the catamaran sailing yacht Obsession (MMSI 378112381) went aground off Flamenco Beach, a popular vacation destination on Culebra Island. The vessel remained afloat, but it sustained flooding in one pontoon, and the crew could not pump out and remove their own vessel. Since the yacht contained an estimated 800-1,500 gallons of diesel, and the reef is an environmentally sensitive area, the Coast Guard assumed control of the response and tapped the Oil Spill Liability Trust Fund (OSLTF) to finance a cleanup.
Salvor Resolve Marine was hired to defuel and remove the vessel, and with assistance from a subcontractor, Resolve's team pumped out the bulk of the fuel from the yacht by the end of July. However, the responders believe that the vessel still represents a "substantial pollution threat" because of remaining oil products and hydraulic oil. The access hatches for the rest of the petroleum aboard the vessel are submerged or inaccessible.
Luckily for the response team, Tropical Storm Ernesto did not have an effect on the wreck site, federal on-scene coordinator Chief Warrant Officer Jamie Testa said in a statement. "Obsession remains aground and stable with no signs of external pollution,” Testa said.
Resolve is mobilizing a 400-tonne floating shearlegs barge out of the port of Baltimore, and it plans to lift the vessel clear from the grounding site for removal - with a close eye on weather conditions. The wreck's final destination has yet to be determined.
After the grounding, the $3 million yacht's owner told the Coast Guard that the salvage project would require "efforts which exceeded his capacity." Under the rules of the OSLTF, the cost of a federally-organized response will normally be recouped from the responsible party, typically the vessel's owner in a grounding casualty.
India Launches Roadmap for Green Tugboat Transition
Tug at Jawaharlal Nehru Port, Mumbai (iStock / Boggy22)
Last week, as part of its Green Shipping Policy, India's government launched new guidelines for the Green Tug Transition Program (GTTP). This initiative is set to phase out conventional fuel-based harbor tugs operating in major Indian ports and replace them with green ones powered by cleaner and more sustainable alternative fuels.
The Green Shipping Policy program was announced in May 2023 and consists of five major initiatives focusing on green shipping and digitization of Indian ports. One of the landmark initiatives under the program is the 30 percent financial support by the Ministry of Ports and Shipping for the promotion of green shipping in India.
The GTTP will be implemented in phases, with phase one scheduled to begin in October and continue until December of 2027. During this phase, four major ports - Jawaharlal Nehru, Deendayal, Paradip and V.O. Chidambaranar - will procure or charter at least two green tugs each. The designs and specifications of the tugs will be issued by the Standing Specification Committee (SSC).
However, Union Minister of Ports, Shipping and Waterways Shri Sarbananda Sonowal clarified that the first set of tugs will be battery-electric, with capacity to adopt other emerging green technologies such as hybrid, methanol and green hydrogen. The minister projected that phase one of the program will cost about $119 million.
“The GTTP is a pivotal initiative towards realizing our vision of a sustainable and green maritime sector in India. The program also strengthens our commitment to ‘Make in India’, promoting domestic innovation and manufacturing in the maritime industry,” said Shri Sarbananda.
The tugs will be built in Indian shipyards as part of the government initiative to support the domestic shipbuilding industry. This will also help to create employment opportunities.
In addition, the government has set a goal for all tugs operating in major Indian ports to transition to green fuels by 2040. This is in line with India’s Green Port Guidelines, which target a 30 percent reduction in carbon emissions per ton of cargo by 2030 and 70 percent by 2047.
Third Spill From Venezuelan Refinery Contaminates Golfo Triste
File image courtesy Hugo Londono / CC BY-NC-SA 2.0
Venezuela's petroleum sector has become notorious for oil spills, especially over the last ten years of economic decline. The latest release from an aging refinery appears to have contaminated a large swathe of Venezuela's coastal waters and fouled beaches near a well-known nature reserve.
Satellite imaging appears to show that the slick covers about 90 square miles of the Golfe Triste, an embayment about 80 nautical miles to the west of Caracas. It extends near the boundaries of Parque Nacional Morrocoy, a well-known stretch of pristine mangrove shoreline.
The origin appears to be PDVSA's El Palito refinery, on the southern edge of the bay. The release was first reported in the English-speaking press by Reuters, which drew on an analysis by biologist Eduardo Klein and secured confirmation of the spill from multiple sources.
El Palito was built in the 1950s and has a capacity of about 150,000 barrels a day. According to the GlobalData Oil & Gas Intelligence Center, it had 14 shutdown incidents from 2017-22, the overwhelming majority of which were unplanned. It was shut down for nearly a year in 2022-23 for repairs and improvements, with assistance from the Iranian National Company of Petroleum Refining and Distribution (NIORDC). Iran - which is largely immune to U.S. sanctions on Venezuela - has supplied PDVSA with parts and services for the petroleum and refining sector since 2020. According to Iranian Oil Minister Javad Owji, El Palito receives and refines about 100,000 barrels per day of imported Iranian crude (along with Venezuelan heavy oil).
El Palito's last major spill was in December 2023, when heavy rains caused waste lagoons to overflow and send sludge flowing into the ocean. The previous spill, in July 2020, contaminated Parque Nacional Morrocoy with tarry crude oil. The damage from that event could take 50 years or longer to fade away, biologist Julia Alvarez told reporters at the time.
A research effort to develop possibly the first floating offshore wind project in the United States received a research lease today from the U.S. Department of the Interior. It comes almost three years after Maine first filed for the research license to further research projects undertaken by the University of Maine. Maine as a state has moved to bar nearby coastal wind energy instead encouraging it to move further out into the gulf away from its fishing and tourism industries.
The first floating offshore wind lease provides for about 10,000 acres located 28 nautical miles off the coast of Maine on the U.S. Outer Continental Shelf. It is about 45 miles from Portland, Maine. When the state proposed the site, it called the project the next step in research ongoing for more than a decade at the University of Maine to develop floating concrete hull technology for offshore wind turbines.
As a research lease, Maine or its designated operator will propose and conduct research regarding the environmental and engineering aspects of the proposed project. This information will be made public and used to inform future planning, permitting, and construction of commercial-scale floating offshore wind projects in the region. The research lease also allows for the state, fishing community, wildlife experts, and others to conduct in-depth studies and thoroughly evaluate floating offshore wind as a renewable energy source in the region. Information gathered from the research lease the department says will inform commercial floating offshore wind development in the future.
“Floating wind opens up opportunities to produce renewable energy in deeper water farther offshore,” said Bureau of Ocean Energy Management (BOEM) Director Elizabeth Klein. “Signing the Gulf of Maine research lease demonstrates the commitment by both BOEM and the State of Maine to promote a clean energy future for the nation.”
Maine proposed placing up to 12 floating turbines as part of the project. It would have a capacity based on current designs for up to 144 MW of electricity. Construction activity on the research array is not likely to occur for several years. The lessee is first required to submit a Research Activities Plan to BOEM, which will undergo environmental analysis under the National Environmental Policy Act.
Today’s action comes as BOEM has proposed the development of offshore wind in the Gulf of Maine. BOEM outlined an area in a range between 23 and 92 miles off the coast in April 2024 as the first target in the Gulf of Maine. It ranges from Maine to Massachusetts and New Hampshire and they estimate it has a capacity to provide up to 32 GW.
Earlier this year, the Biden administration mapped out the next phase of proposed lease auctions for the offshore wind power industry. This included the Gulf of Maine with a total of 12 additional lease sales planned by 2028. The Department has approved the first nine commercial-scale offshore wind projects with 13 GW of capacity.
The Department of the Interior announced a goal to deploy 15 GW of floating offshore wind capacity by 2035. The administration is providing support for various research efforts designed to lower the cost of deploying floating wind projects.
Crowley Starts Salem Wind Port Project as Massachusetts Expands Wind Ports
Vineyard Wind 1 staging materials at the New Bedford Marine Commerce Terminal (MassCEC)
Massachusetts is pushing forward with plans to expand its wind port capacities both to support the state's renewable energy plans as well as to make the state a homeport for regional wind energy projects. Efforts kicked off in Salem led by Crowley Wind Services to develop the state’s second dedicated wind port while yesterday MassCEC, the state's clean energy agency, announced plans to expand the current wind port facilities in New Bedford.
The state’s governor and officials are strongly supportive of the wind energy sector. Massachusetts is currently home to projects including the staging for Vineyard Wind 1 as well as other large wind farms. The state however has also found itself the unwelcome recipient of media attention as it works to deal with the debris washing ashore from the blade that fractured in July at the under-development Vineyard Wind 1.
Both New Bedford and Salem are supporting the emerging wind farm industry while plans continue to develop the port capabilities. MassCEC (Massachusetts Clean Energy Center) signed a deal in February 2024 with Crowley Wind Services and the City of Salem which called for the transformation of a former oil- and coal-fired power plant into the Salem Wind Terminal. A ceremonial groundbreaking took place today, August 15, for the project.
“The Salem Wind Terminal will be a historic achievement, and we appreciate the trust and partnership by the City of Salem, Commonwealth of Massachusetts, and the U.S. Maritime Administration to create a world-class wind terminal that reliably and safely serves the supply chain needs of the wind energy industry,” said Tom Crowley, Chairman and CEO, Crowley Corporation. “This public-private partnership in Salem can be a model for communities and the industry to follow to achieve our commitments to create renewable, sustainable power.”
Rendering by Crowley Wind Services of the planned Salem Wind Terminal
The terminal will be one of the few locations capable of supporting the construction and installation of New England’s fixed bottom and future floating offshore wind projects planned for the Gulf of Maine. Crowley will be responsible for redeveloping and operating the terminal. It signed a lease with MassCEC to use the site as an offshore wind marshaling port, with a focus on projects for Massachusetts. The City of Salem has also leased a berth and surrounding land for this purpose. Crowley’s Wind Services will improve the site by adding infrastructure for heavy equipment, constructing a new ship berth, upgrading the city’s existing berth, and dredging the harbor channel. The wind port is expected to begin operating in 2026.
“Coming on the heels of $389 million in federal funds for offshore wind transmission in Somerset, the expansion of the port in New Bedford, and now the groundbreaking in Salem, Massachusetts is well-positioned to support the growing offshore wind industry,” said Governor Maura Healey.
MassCEC also announced plans for the expansion and improvement of the New Bedford Marine Commerce Terminal, a 30-acre facility that is being used for the construction, assembly, and deployment of offshore wind projects. According to officials of MassCEC, the facility is being expanded to support the anticipated increased demand for port facilities that can deploy the larger, heavier turbine parts.
Informed by a strategic planning process and with specific input from offshore wind project developers, wind turbine manufacturers, global marine transportation and installation companies, and port engineering consultants, the project includes the acquisition by MassCEC of four abutting properties, the redevelopment of an existing legacy bulkhead with a new high bearing capacity quayside, and the relocation and construction of a new office and warehouse building. When completed the project will expand the available heavy-lift storage area by a quarter (five acres) to a total of 26 contiguous acres. The project increases the total heavy-lift quayside available at the terminal to 1,200 linear feet and will provide additional office and warehouse space and functionality for terminal tenants
The commonwealth through its Massachusetts Ports Investment Challenge, launched in 2022, made a $180 million investment in a portfolio of offshore wind port redevelopment projects, including funding for the Marine Commerce Terminal expansion project. In total, seven awards were made for projects in New Bedford, Salem, and Somerset, including $45 million for the Marine Commerce Terminal, $75 million for the Salem Offshore Wind Terminal, and funding for Prysmian marine high voltage cables manufacturing facility/terminal and Gladding Hearn Shipbuilding in Somerset. It also aided the North Terminal, Foss Marine Terminal, and Shoreline Marine Terminals in New Bedford.
The efforts are being coordinated to position Massachusetts as a leader in supporting the industry.
Mozambique Leases a Port Terminal to Landlocked Malawi
Port of Nacala, Mozambique, is about 450 miles by road from landlocked Malawi (JICA file image)
In a rare move, Mozambique is planning to lease part of its northern port of Nacala to neighboring landlocked Malawi. The deal seeks to boost trade ties between the two countries. To formalize the initiative, Mozambican President Filipe Nyusi and his Malawian counterpart, Lazarus Chakwera, last week signed initial agreements of the concession deal.
This will see Mozambique carve out a space at the Port of Nacala, which Malawi can develop into a terminal for its goods.
“The agreements will benefit both countries, since they are instruments that aim to enable initiatives that are already underway such as the Mozambique-Malawi joint electrification project called MOMA,” explained Nyusi.
The Port of Nacala is part of the Nacala Development Corridor, which is being developed jointly by Malawi, Zambia and Mozambique. The goal is facilitating regional connectivity and sea access for the landlocked Malawi and Zambia. The corridor comprises a total of 722 miles of road network, railway rehabilitation connecting to Malawi’s capital of Lilongwe and one-stop border posts (OSBP) among the involved countries.
Specifically, the Port of Nacala has proved competitive to Malawian national economic interests. The National Oil Company of Malawi (NOCMA) has recently started to import around 15 million liters of fuel through Nacala, using rail transport. With this shipment possible, Malawi will gradually reduce its dependence on the ports of Beira (Mozambique), Durban (South Africa) and Dar es Salaam in Tanzania, where import costs are high due to use of road transport.
“I am pleased that we will soon be able to reduce the overland costs of fuel transport, which translate into lower fuel prices in Malawi,” said President Chakwera.
Since 2018, the port of Nacala has been undergoing modernization thanks to $300 million in financing from the Japan International Cooperation Agency (JICA). The upgrades include dredging to a terminal depth of 14 meters and new equipment for cargo handling.
This expansion has started to pay off, and Nacala is emerging as a key dry bulk export port in Africa. In the past year, close to 14 million tons of coal were transported from the Moatize mine in Tete province to the port of Nacala via Malawi. In addition, the port handled 3.1 million tons of general cargo last year, representing 103 percent of what the port had projected. The figure is expected to rise to 3.5 million tons by December of this year, according to the port’s director of infrastructure, Nelmo Induna.
High Speed Led to Vintage Ferry Hitting a Dock in Toronto
Sam McBride at her berth in downtown Toronto (TSB)
After analyzing a ferry casualty that injured 20 people in 2022, Canada's Transportation Safety Board has called for more thorough regulation and monitoring of passenger-vessel emergency preparedness.
Exactly two years ago Tuesday, the 1939-built passenger ferry Sam McBride allided with its dock at a terminal in downtown Toronto, Ontario. The force of the impact caused many passengers to fall down, including some who were on or near ladderways at the time of contact. 20 were injured, and six were taken to a hospital for further evaluation and treatment. The vessel suffered minor damage, and the dock required several months of repairs.
Sam McBride was running at full capacity and was behind schedule that day, and the crews were in the habit of speeding up operations under such circumstances, according to TSB. The vessel approached the dock at a speed of about five knots, based on video footage analysis - two knots faster than normal.
Only the aft propeller of the double-ended ferry was turning, and it did not have enough power on its own to reduce speed in time to avert hard contact. The reason for the forward propeller's failure to engage was impossible to determine; the engines were newly-replaced in 2011, and the TSB found no evidence of mechanical failure or control system fault codes, at least on the day of the casualty. The engine OEM found throttle control fault codes dating to June 18, two months before the allision, but none in the timeframe just before the accident. The vessel's systems all functioned as designed in post-casualty sea trials, including in tests designed to simulate the conditions at the time of the allision.
The exact proximate cause of the casualty was not determined, beyond the operational pressures of a busy day and the deck officer's decision to approach at higher-than-normal speed.
In the course of its investigation, TSB reviewed unrelated safety practices aboard Sam McBride, and it found room for improvement. The agency concluded that the abandon-ship plan for Sam McBride was under-staffed: including the captain and engineer, the vessel had only six crewmembers to handle emergency-response duties, launch life rafts and safely disembark 900 passengers. In 2008, Transport Canada had revised the minimum allowable crewing for Sam McBride from 12 down to six at the request of the operator, the City of Toronto. "If the crew complement specified on a vessel’s safe manning document is insufficient to respond to an emergency, there is an increased risk to the safety of the vessel’s crew and passengers," concluded TSB.
Further, "the investigation found no evidence that an exercise including a large number of people representing the vessel’s maximum passenger complement was ever performed," though regular simulated abandon-ship drills were held.
"If passenger evacuation procedures are not validated through a realistic exercise with a representative number of participants, a vessel’s crew will be insufficiently prepared for an emergency and passengers will be at an elevated risk of injury or death," cautioned TSB.
TSB also noted that at the time, the City of Toronto did not have an SMS for its ferry operating division, nor a written procedure for docking maneuvers. Passenger counts were estimated by the crew and were approximate, creating uncertainty about whether all onboard personnel would be accounted for in the event of a casualty.
Labor Dispute Could Shut Down Canada's Biggest Rail Lines
A new Canadian labor dispute could upend trade for shipping interests across North America. Canada's largest rail union faces a lockout on Wednesday night, potentially impacting businesses from Vancouver to the U.S. Midwest and beyond. Rail freight is essential for Canadian shippers, especially for commodities and for intermodal transport, and a shutdown would have an immediate effect.
Canadian National (CN) and Canadian Pacific Kansas City (CPKC) are negotiating with Teamsters Canada Rail and its 9,000-plus members on terms for a new collective bargaining contract, and the talks have been contentious. According to the Teamsters, CN and CPKC are demanding more flexibility for worker scheduling and fatigue management, as well as the ability to require workers to relocate for long periods as needed. "If the companies get their way, train crews would be forced to stay awake even longer, raising the risk of derailments and other accidents," warned the Teamsters in a statement. CN and CPKC say that their proposed work rules are fully compliant with all regulations and do not compromise safety.
In early August, the Canadian Industrial Relations Board confirmed the Teamsters' right to stage a walkout, and Canada's labor minister turned down a request from the rail lines to force the union into binding arbitration. After further negotiations failed, CN and CPKC notified the Teamsters that they would initiate a lockout at 0001 hours on August 22. Both sides blamed the other for the impasse.
"Despite negotiations over the weekend, no meaningful progress has occurred, and the parties remain very far apart," said CN in a statement. "Unless there is an immediate and definite resolution to the labor conflict, CN will have no choice but to continue the phased and progressive shutdown of its network which would culminate in a lockout."
The Teamsters have instructed members to treat the lockout as the equivalent of a strike.
In Canada, business associations for retailers, restaurants, meat producers, farmers and other sectors all warned that a rail strike would cut into margins and impact customers' pocketbooks. U.S. businesses are also worried, since Canadian rail lines carry about 15 percent of all trade across the northern border. U.S. rail line Union Pacific warned Monday that a shutdown would affect cross-border transport of 2,500 UP rail cars per day.
The U.S. and Canadian Chambers of Commerce issued a joint statement Monday, warning of "devastating" effects on business. "The government of Canada must take action to ensure goods continue to move reliably between our two countries," the chambers said.
The looming rail lockout could overlap with a worsening labor dispute between the International Longshore Association (ILA) and the employers' association for U.S. East Coast and Gulf Coast ports. Talks between the union and terminal operators have been difficult, and if negotiations fail, a walkout could begin as early as October - effectively shutting down half of America's container port capacity.
87% Of CEOs Think AI Benefits The Workplace. Here's 2 Reasons Why
CEOs are fully onboard with AI and its potential.getty
The age of artificial intelligence (AI) is rapidly expanding, becoming increasingly integral to the everyday operations of businesses at all levels. From improving the workplace wellness experience to automating rudimentary tasks, AI's influence and impacts are being felt. That said, historically, when disruptive trends and forces such as AI have emerged, mass adoption has been slow due to the risk-averse nature of many business leaders.
However, AI is proving to be an exception, as CEOs have overwhelmingly embraced AI's potential. One notable example is the widespread adoption of ChatGPT, one of the most popular generative AI tools. In the first half of 2023, 75% of CEOs reported using ChatGPT, with 44% incorporating it into their daily work. This rapid adoption is comparable only to the early enthusiasm for the iPad, which saw a 40% usage rate among CEOs within its first six months.
This trend is further supported by the annual Gartner CEO and Senior Business Executive Survey, which revealed that 87% of CEOs believe the benefits of AI outweigh its risks. This sentiment and outlook are strongly echoed in a separate Accenture report, where 84% of executives stated that they don't think they can achieve their growth objectives without scaling AI, and 75% fear going out of business within five years if they fail to do so. While enthusiasm for AI is high, the specific strategies for leveraging it to drive revenue growth remain murky. However, CEOs highlighted numerous potential areas in the survey, with these two areas standing out as key opportunities for most organizations
Improved Customer Experience
For CEOs, making optimal decisions that drive the business forward hinges on delivering an exceptional and consistent customer experience. In today's fast-paced world, where technology is continually more embedded in our daily lives, a company's reputation can spread rapidly—good or bad. A brand's reputation is only as strong as the experience it delivers to its customers. Therefore, it's no surprise that improving customer experience tops the list of potential benefits of AI. According to Deloitte:
62% of customers spend more after a good customer experience. Experience-driven businesses grow revenue 1.4 times faster and increase customer lifetime value 1.6 times more than other companies. Improving the customer journey can lower operational costs by up to 20%. After a positive experience, 83% of customers would happily provide a referral if asked.
When leveraging AI to elevate the customer experience, it's crucial to consider tools supporting the organization's people. Employees often serve as the first point of contact, as companies such as Starbucks and Best Buy are learning, and their well-being directly impacts the quality of those customer interactions.
Better Productivity Through Improved Analysis
According to Goldman Sachs, AI has the potential to raise the global GDP by 7% (nearly $7 trillion) and productivity growth by 1.5 percentage points over the next decade. There are numerous ways that AI can potentially grow revenue. AI can reduce burnout and overwhelm for team members by taking over routine, repetitive tasks, thus allowing team members to focus on more fulfilling aspects of their jobs. The video player is currently playing an ad. You can skip the ad in 5 sec with a mouse or keyboard
This subtle shift can benefit job satisfaction and, by extension, improve mental and emotional well-being. For CEOs, AI's ability to handle and analyze large volumes of data can significantly reduce CEO's workload and stress, thus freeing them to focus on more strategic (and rewarding) tasks. Predictive analytics, in particular, allows CEOs to make data-driven decisions, spot past mistakes, identify important trends, and forecast the future with greater precision. In business, there's a never-ending pursuit of growth, efficiency, and a way to create industry separation. CEOs are excited about AI's potential, as the varying possibilities it presents could fundamentally transform how businesses operate, from innovation and productivity to the customer experience.
Follow me on LinkedIn. Check out my website. Julian Hayes IIFollow Julian Hayes II writes about the intersection of wellness, business, and leadership. His articles have been published in Inc., Entrepreneur, SUCCESS
