Alliances

Bilbao Bridge at Fairview Cove for the AL6 service.

The ultra-competitive container shipping scene is about to change (again) for Halifax, with the announcement of another service cut. Despite gains and losses of lines, mergers and alliances, increased traffic flow has given the Port of Halifax a notable boost in the past two years. However in a sign of things to come, the recent announcement by ONE that it will cut Halifax out of its AL6 service must come as a major blow.

ONE was front and centre at the recent Port Days, with one of its bubble gum coloured containers parked at the entrance to the Cunard Centre venue at Pier 23.

It is especially stinging since ONE, the Ocean Network Express, operates the Fairview Cove container terminal through its ownership of Cerescorp.  In order to remain a player in the world, ONE was formed out of desperation by the three major Japanese container lines, NYK, MOL and K-Line. The last named owned Cerescorp which was folded into the ONE stable. K-Line also supplies the ships that serve the AL 6 weekly service.
 

 K-Line charter from Seaspan International carries boxes from AL6 partners HAPAG-Loyd, UASC (owned by HAPAG), Zim, and Yang Ming.

That will all end in December when the the AL6 partners, ONE, Hapag-Lloyd, Yang Ming and Zim concentrate on US ports and bring CMA CGM and COSCO (China Ocean) into the fold using larger ships, up from 4500 TEU to 8000 TEU.

The current 4500 TEU ships such as Brevik Bridge can pass under harbour bridges with ease. The 8,000 TEU ships could make it too, but would need two escort tugs.

ZIM has traditionally not joined alliances, but has recently changed its policy and has teamed up with the 2M Alliance (Maersk and MSC) and with MSC alone to rationalize some Asia-US East Coast and India-Med routes. This has been the shakeup that most lines were looking for since it cuts competition and reduces the number of ships needed. Bigger ships are cheaper to operate, so all these alliance imply larger ships.

Brotonne Bridge is one of the five sister ships on the AL6 service.

In order to remain a world player, ONE is building new and bigger ships, but at the same time it is shedding overhead costs by returning charters, and cutting elsewhere. ONE's commitment to Fairview Cove is certainly brought into question with this recent cut. Lack of new equipment and berth space pressure must have been a factor in the AL6 cut. Seeing ships anchored waiting a berth is never good news in the container business. This does happen from time to time when ships have been delayed.

 Lots of fill going in at Fairview Cove, but no expansion plans. Budapest Bridge well loaded.

The AL6 service was threatened before, when it announced in December 2017 that Halifax would be dropped, but they recanted in February of this year. The most recent announcement appears to be final however.

Berlin Bridge outbound.

The five ships that have been supporting the service were all built by Samsung Shipbuilding + Heavy Industries Co in 2010-2011, and have a capacity of 4526 TEU, measuring 46,444 grt, 58,200 dwt.

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Monday, Monday

A busy Monday brings up a number of interesting developments.

The merger of the three Japanese container lines, K-Line, MOL and NYK to form Ocean Network Express, called ONE, has included building some new ships, but there will be a lengthy transition for existing ships to adopt common livery and for the introduction of the brand on containers. The merger, which started in 2016 came into effect in October 2017.

Yesterday a white ONE box was spotted on the inbound Berlin Bridge, a K-Line charter from Seaspan International.. However the real news was today's spotting of a new ONE dry container.

There has been some discussion in the shipping industry about the new ONE colour. Called cherry blossom magenta, it is traditionally a symbol of spring in Japan. However there is the question of the practicality of maintaining the colour. The general consensus seems to fit into the "What were they thinking" category. ONE has some ships in service now with this colour applied to the ship's hull. Can't wait to see one here.

ONE is a member of the THE Alliance with Yang Ming and HAPAG-Lloyd, so we are sure to see one someday.

Rebranding is also afoot in the oil distribution business in Atlantic Canada, with Irving Oil purchasing the Ultramar gas stations and convenience stores in the region.

Workers swarm over a former Ultramar station and get the Irving sign into position.

This will likely result in more business at Irving's Woodside marine terminal in Halifax harbour.

Old tanks coming down at Valero, with cars in the background.

The stations were previously supplied by Valero, and I note demolitions at their Eastern Passage tank storage facility. Valero still supplies Petro-Canada, and perhaps other gas stations in the area from their refinery in Lévis, QC, but  the local facility is underutilized. The site of the former Gulf Oil refinery - long since shut down - is right next door to Autoport, and they allow Autoport to use some of their land already. Despite a huge expansion to Autoport's storage facility recently, they will likely do a deal for more.

With no refineries in Halifax it is rare to see a crude oil tanker, particularly a fully laden one. Today's arrival of the Malta flag Patroclus involved some very careful navigation. Despite the tide being relatively high, the ship took to the deep water western channel  and even deviated from that to avoid a high spot. Other ships and boats were cautioned out of the way and the pilot boat stood by off middle ground to help guide the ship. Harbour regulations require two pilots and two tugs for tankers of this size.

Patroclus returns from the deep water western channel to the main channel as the supplier Venture Sea and a pleasure craft move toward the western channel. The stern escort tug Atlantic Oak is out of sight moving the ship's stern.

It is not immediately apparent where the ship is coming from, but its course approaching Halifax was from the south. Its destination will be revealed when it departs later this evening - watch for an update

The ship was built by Hyundai Ulsan in 2009 as Astro Patroclus but was renamed in the same year. At 79,890 grt, 158,267 dwt it is not the largest ship to call in Halifax, but it may be one of the deepest. Due to the position of tugs and shadows I was not able to read the draft marks, but the web says it is 17m (55.7 ft). However based on the way the ship was handled I suspect it was in excess of 17.7m (58.07 ft) - the figure requiring special permission from the Port. Update: on departing the ship reported a draft of 16.95m, and gave Saint John, NB as its destination.

Patroclus brings up in number one anchorage in preparation to take bunkers.

Bishu Highway was unloading cars at Autoport this morning when BMW announced that it is raising car prices because of the current trade and tariff war. What this uncertainly will mean for Autoport, and Canadian car buyers remains to be seen, except it is likely not good news.

Bishu Highway dates from 2009 when it was cranked out by Shin Kurushima Toyohashi. With a gross tonnage of 56,978 grt, 17,649 dwt, it has a capacity of 6,135 cars on 11 decks. The ship has called in Halifax many times, averaging about one call a year, although it was last here as recently as March 13.

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Some weekend activity

There was lots of activity in the harbour over the weekend as usual. Among the more interesting:

The small asphalt / bitumen tanker Feng Huang AO sailed on Saturday from the McAsphalt dock in Eastern Passage after delivering a cargo. Since it is paving season, demand for the commodity is high, and Irving Oil, among the producers have chartered the a US tug and barge combo Coho and Penn No.92  for two trips under a coasting license. One trip was last week and another is to follow in August. However McAsphalt needed more so brought in another load - probably from the Caribbean on Feng Huang AO.

 Feng Huang AO makes the turn around Ives Knoll as it heads to sea and Tarragona, Spain, in ballast.

 
The ship is registered in Hong Kong and was built by Qingshan Wuhan in China in 2016, with tonnages of 10,377 grt, 12,799 dwt, and has the extra boilers and equipment needed to keep the cargo hot. Among the more interesting features of its design are the full width bridge and the main deck which slopes upward towards the accommodations and toward the forepeak.

In a reversal of the usual pattern the tanker Atlantic Breeze arrived from Saint John, NB. Usually these foreign flag product tankers come from the Netherlands directly to Halifax, then on to Saint John.

 Tugs assist the Atlantic Breeze alongside Irving Oil's Woodside terminal. Not seen is a third tug, Roseway, operating as line boat to take the ship's headlines to a shore bollard.

It is a typical mid-range tanker of 29,266 grt, 49,999 dwt, built by Hyundai Mipo, Ulsan in 2007. It also flies the Hong Kong flag.

Imperial Oil had only just cleared the tanker Seabreeze from its number 3 dock - so there was lots of breeze on a hot day.



Sunday was likely the busiest pleasure craft day of the year in Halifax harbour - not just in sheer numbers, but also in tonnage.

The container ship Berlin Bridge managed to thread its way in, despite having to make at least one warning signal for an inattentive sail boat.

Once round George's Island headed for the ferry track, and still well clear of other vessels it passed the monster yacht Kamaxitha getting underway from its berth at Purdy's wharf and heading for sea.

Built in 2012 by Royal Huisman the all aluminum vessel has an overall length of 53.75m (bowsprit included) and 41.22m at the waterline. Its breadth is variously reported, but seems to be 9.07m. Displacing about 270 tonnes, it features all the excesses one might expect on a vessels of its size.
 

It put to sea using its 805 bhp MTU main engine, but may have decided to sail once outside the harbour. It gave Nuuk, Greenland as its next port - and why not. Its air draft is reported to be 57m. Incidentally the maximum air draft under the Angus L. Macdonald Bridge is 46.9m.

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More Wind

March has lived up to its reputation as a windy month, and going into the last week, today was no exception.

CMA CGM Medea arrived for Halterm this afternoon. Normally ships on the Columbus JAX service arrive on Saturday, so weather was no doubt a factor.

The ship used three tugs to bert6h at Halterm.

 
Built in 2006 by Hyundai Samho, the 107,111 grt, 113,964 dwt ship has a capacity of 9415 TEU including 700 reefers.

Note the deck is loaded only 4 boxes high - no doubt a precaution against expected conditions in the winter North Atlantic.

 
And for Cerescrp at Fairview Cove Berlin Bridge arrived on AL6 service for THE Alliance.

Deck stacked six boxes high, the ship has much lower freeboard than the CMA CGM ship shown above. Somewhat suprosiginly for a North Atlantic winter crossing.

Bulker Atlantic Huron is loading at National Gypsum in the background. It is due to sail tonight. (It left winter layup in Montreal on March 17).

A regular caller the 4526 TEU ship is owned by Seaspan International and is on long term charter to K-Line.

The coastal tanker Damia Desgagnés made another appearance to day, its second this year, for delivery to the McAsphalt dock in Eastern Passage. When the winds picked up however it went out to anchor.

The first Canadian dual fuel ship, it can use LNG or Marine Diesel/Heavy Fuel Oil. Less than a year old, it arrived  in Canada from its Turkish builders last May. It will be joined shortly by sister tanker Mia Desgagnés which sailed from Rotterdam March 21 and is due in Montreal April 2.

Also in port the small tanker North Atlantic Kairos is back with another cargo (believed to be furnace oil ) for Wilson Fuels. It is due to sail tomorrow.

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Comings and goings

It was a sunny today today for a change, so some brighter photos than those posted recently. The comings and goings today were all familiar faces going about their regular business.

APL Santiago arrived on the Columbus JAX service operated by parent CMA CGM . One of 17 ships on the service, that call in 17 ports from Oakland and Los Angeles through Asia to the east coast of North America and back again. All the ships currently on the service are in the 8500 to 9500 TEU size, but rumours have it that next month APL Salalah, a 10,642 TEU ship will join the loop. If so it will inch up the size for largest container ship to call in Halifax. It is no surprise that larger ships are coming, since the Columbus JAX ships always look fully loaded. Halifax is their first stop after the 20 day transit from Colombo, Sri Lanka (30 days out of Hong Kong)..

APL Santiago used three tugs to berth at Halterm. Atlantic Oak was stern tethered escort, Atlantic Fir took the bow and Atlantic Willow was working the starboard side (out of sight in the photo) to assist in the turn.

APL Santiago, built in 2014 by Daewoo, Okpo, is a 109,712 grt, 108,000 dwt ship with a capacity of 9200 TEU. It called in Halifax for the first time on October 21, 2017.

Arriving early this morning and sailing from Halterm in the early afternoon, the veteran Maersk Patras was on schedule for its regular return across the Atlantic from Montreal.

The former P+O Nedlloyd Marseille, renamed in 2006, was acquired by Maersk when they took over PONL. Again with rumours it is said that the 1998 built sisters on the route will be replaced come spring.

Fairview Cove had Berlin Bridge today on the AL6 service operated for THE Alliance. Although wearing K-Line colours, it is in fact owned by Seaspan International, part of the Washington Group, on long term charter.

 Berlin Bridge made a rare passage west of George's Island outbound. There did not seem to be any particular reason for this, as the east channel was open. However there is deeper water west of the island.

 The stylized "W" below the bridge wing is the Washington Group logo.

The AL6 ships appear to be carrying more cargo these days than when the service started last year, and this will be good news at Fairview Cove, now that the service is assured for another year at least. [see previous post below]

At Pier 9C work continues on the annual refit of Fundy Rose. Canadian Maritime Engineering Ltd seems to be working seven days a week on the inside and outside of the ship.

Rubbing stakes have been extended on the starboard side below the bridge. 
That is Atlantic Condor in the background at its usual berth between frequent trips to the Deep Panuke gas field for Encana.

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Friday and Saturday Round Up

A fist time caller Friday was Glen Canyon Bridge another of the many K-Line ships we are seeing now with the new service THE Alliance that has replaced the G6 Alliance. Although HAPAG-Lloyd is a primary partner in the service, their ships are not included in the various strings that call here.

Three cranes work the ship Friday evening.

Glen Canyon Bridge is a 2006 Hyundai Ulsan built ship of 68,570 grt, 71,291 dwt with a capacity of 5624 TE (including 600 reefers).

Today's arrival at Fairview Cove is Berlin Bridge another K-Line ship on THE Alliance service, this one on the AL6, Transatlantic run.

 

Only one crane in operation to work the smaller, more lightly loaded ship.

The Hong Kong flag ship is owned by Seaspan International and chartered to K-Line. It was built in 2011 by Samsung, Koje and measures 46,444 grt, 58,200 dwt, and carries 4526 TEU.

Today at the other end of the port CMA CGM brought in another first time caller, CMA CGM Pelleas on its Columbus loop. The ship dates from 2008 when it was built by Hyundai, Ulsan. At 111,249 grt, 120,854 dwt it has a capacity of 9658 TEU including 700 reefers.

Two tugs alongside are in position to turn the ship to tie up at Halterm, starboard side to.

 
Although a few hundred boxes short of the 10,000 TEU figure, it is still a large ship. It is owned by the Claus Peter Ofen group of Germany and was renamed Pelleas between 2010 and 2014 only, as it served some other service than CMA CGM.

After the July 1 - July 4 United States Navy presence of an aircraft carrier and three accompanying vessels, this week there was a lone USN ship. Arriving Thursday USS  Jason Dunham sailed this afternoon.

An Arleigh Burke class ship it is designated DDG-109 and is homeported in Norfolk, VA.

Halifax is a way point and a destination for all sorts of pleasure craft, from small sailing vessels to large super yachts. The latter usually attract considerable attention (and speculation about the owner). Today's arrival Sycara V registered in Georgetown, Cayman Islands, is certainly a super yacht. Built in 2010 by Nobiskrug in Germany, the 1566 grt vessel can accommodate 14 (not including crew) and is equipped with all imaginable amenities.

Sycara V has been for sale for some time with a sale price originally quoted in the euro 75 mn range, but now reduced to Euro 62.5mn (around $US 71.6mn). If that is too rich for your blood you can charter it for $US 671,000 per week. 

Tied up at Salter's wharf, boardwalkers were able to get a close up look.

Roll Out continued...
Following today's restricted open house in which hundreds visited Halifax Shipyard ( and tying up traffic for a mile) workers rolled out mega-block #3 of the future HMCS Harry De Wolf. By late afternoon they had it aligned with mega-block #2.

 

 

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