Reports are that losses from the earthquake in Japan could top $300 Billion. (Japan disaster likely to be world's costliest, Associated Press, Yahoo News, March 24, 2011.) The maritime industry in Japan will also be seriously affected. Shipping will be harmed, as will imports and exports. (Tsunami and Earthquake in Japan also affects shipping, Infomarine On-Line, March 14, 2011.)
The Davy Crockett is just one of many dilapidated vessels on the Columbia River. Crews are continuing to work on the cracked barge that has been abandoned about 15 miles upstream from Vancouver. The Davey Crockett was in a 'V' shape with half the hull sticking out of the water. But crews Thursday started filling the stern with water so the whole hull would rest on the river bed. The next step is for divers to be sent down to see how much more oil and PCBs remain on board. (Kristian Foden-Vencil, Davy Crockett One Of Many Dilapidated Vessels On The Columbia, OPB News, February 3, 2011.)
A photo of the vessel and reprint of the article on the bluefish.org website provides a greater appreciation of the magnitude of the project and the potential harm to the river and salmon runs.
The Associated Press reported earlier this month that New York City's first waterfront plan in two decades envisions a metropolis where residents flock to the waterways for recreation. It would cost an estimated $3.2 billion. (The Seattle Times, NYC plans $3B transformation of waterfront, March 14, 2011.)
One of the first things that Seattle Mayor Mike McGinn wanted after being elected to office was an additional $241 million in taxes to replace Seattle’s waterfront seawall. (kirotv.com, McGinn Wants Levy for Urgent Seawall Replacement, January 14, 2010.) Yet he then vetoed the waterfront tunnel agreement that was overwhelmingly approved by the City Council. (KOMOnews.com, Mayor McGinn vetoes waterfront tunnel project, February 17, 2011.)
It is hard to say where Seattle will end up on these waterfront issues, but watching what New York City ends up doing may provide some helpful insight.
As reported by Fishnewseu.com, the European Commissioner for Maritime Affairs and Fisheries, Maria Damanaki, delivered a speech last week in Berlin on reforming the Common Fisheries Policy.
The Commissioner said that she is determined to make the policy greener, simpler and leaner, more modern and consistent with the international standards. (Maria Damanaki expresses support for decentralised decision making, fishnewseu.com, March 18, 2011.)
She further said that the European Commission can no longer afford to legislate on every single technical detail and that their policies on fisheries have become too complicated, too detailed and too distant from the final users. What the EU should do is lay down the main objectives, fix the overall standards and prescribe the general principles. (Id.)
The Commissioner further noted that they have to switch to a sustainable exploitation of the seas and to an ecosystem-based approach to fishing. (Id.)
The speech highlights that a big piece of global fishing industry is focused on simplifying regulations while at the same time pursuing sustainable practices. While lofty goals, they may be ones that are inherently be at odds with each other since sustainability practices inevitably tend to lead to more regulation.
According to The Register-Guard, Senate Bill 668 was introduced in the Oregon State Legislature with an eye directed toward Clackamas-based Pacific Seafood Group, which it was reported has become the nation’s largest seafood processor in recent years. The bill would limit the fishing permits that could be issued to any one company. (Bill Targets Powerful Seafood Processor, The Register-Guard, March 15, 2011.)
The company’s lawyer said at a Senate committee hearing Monday that the bill unfairly targets a successful, family-owned Oregon company, one that has helped fishermen by developing new markets. But some fishermen charge that the company has created an illegal monopoly, holding down prices for Oregon’s fishing fleet. However, testimony at the hearing on the matter was that company owns only 21 of the 2,200 available fishing permits in various industries. (Id.)
If true, enacting such legislation would seem inappropriate and could set a dangerous precedent. Were there a strong argument that an illegal monopoly existed, there should also be other legal remedies available, including a government enforcement action or a private antitrust suit. And The Register-Herald reports that there is indeed already a class action antitrust lawsuit filed against the company in Medford, Oregon. (Id.)
Inland News Today reports that damage from the tsunami caused by the earthquake in Japan could exceed $50 million. (Inland News Today, March 13, 2010.) As reported in yesterday's post, most of the damage has been in Crescent City and Santa Cruz.
Damage to ocean vessels has also been significant along the California coast line. More than 100 boats are estimated to have capsized in Santa Cruz. Boats were also damaged or capsized in Santa Catalina and San Diego. (Id.)
The rising death toll and the destruction caused by the earthquake and tsunami in Japan last week are beyond comprehension. It is also hard to fathom how the tsunami caused so much damage to several harbors along the California coast line many thousands of miles away from the epicenter.
As reported today in the San Francisco Chronicle, wave damaged the Santa Cruz harbor, causing an estimated $17 million in damage. However, the damage was most pronounced in Crescent City, which is California's most active commercial fishing port north of Monterey. (Another Tsunami Jars Crescent City's Psyche, Economy, San Francisco Chronicle, March 13, 2011.)
At least 17 boats sank as a result of the tsunami, the Coast Guard reported Saturday, and nearly all of the harbor's floating docks were destroyed. A film of gasoline covered the water among the boats that remained in the harbor, many of them visibly damaged. Damage totals have not yet been assessed. (Id.)
The 8.9 earthquake and ensuring tsunami in Japan have left the country devastated. As the rest of the world offers its immediate assistance and humanitarian aid, the long term economic consequences will become more apparent. There will certainly be an impact on the maritime industry.
In a news story published today by Peter T. Leach in the The Journal of Commerce, he reports that Japan's shipping industry and services will be hit across the board by the massive 8.9 magnitude earthquake and tsunami that slammed the country Friday, according to an initial assessment of the impact by BIMCO, the independent shipping association in Copenhagen.
The Journal of Commerce further reported that "Container shipping may be impacted by lack of exports from the Japanese factories, causing liner companies to leap-frog Japanese ports on their trans-Pacific trading lanes," BIMCO said in its assessment. "Both imports and exports may be affected by force majeure."
Mr. Leach cited other analysts who believed the earthquake may be the most expensive natural disaster, with estimates of the insurance loss running as high as $10 billion.
As also reported by rediff.com India fears that the tsunami that shook Japan would disrupt maritime activities in the region and impact prices of commodities like crude oil globally.
Assocham Secretary General D S Rawat was reported as saying, "The supply of commodities will be impacted globally as most of the trade takes place through sea."
In a recent News Release, Eimskip International announced that it would change its port of call from Richmond, VA to Norfolk, VA toward the end of February. Eimskip has been calling the Port of Richmond since November 2006, but will now be conducting all terminal operations at Norfolk International Terminals (NIT), located in the third largest port on the East Coast.
“This is a very positive step forward in expanding Eimskip´s business growth and services to US East Coast”, says Gylfi Sigfusson, Eimskip‘s President/CEO. He further stated, “This allows Eimskip to work closer with other shipping lines in the Norfolk area creating opportunities in shipping services between US and Canada and shortening the roundtrip of our vessel by two days.“
“The upcoming relocation will also bring warehouse operations closer to our local offices, thereby increasing Eimskip’s ability to effectively offer total logistic services to clients,“ said Sylvester Young, Liner Manager of Eimskip USA.
Eimskip continues its strong presence in the North Atlantic with a main emphasis on the Norfolk area, but also with port calls in Everett, Massachusetts, Halifax in Nova Scotia and Argentina, Newfoundland. Eimskip operates offices in: Virginia Beach (Norfolk), New York (with main emphasis on airfreight) and St. Johns Newfoundland that services the East Coast of US and Canada. While Eimskip‘s largest presence is felt on the East Coast, Eimskip offers full ocean freight and trucking services to and from every major port in the United States.
The Mikkelborg firm has provided legal represention to the Eimskip organization in connection with regional operations in the Pacific Northwest.
The Washington Fish and Wildlife Commission recently approved modifications to 2011 Puget Sound recreational clam and oyster seasons, based on annual species surveys and expected sport fishing effort. The changes will result in longer seasons on eight public beaches, shorter seasons on four beaches, and a shift in season timing on one beach. Details of the season modifications and a copy of the Rule Adoption are available on the WDFW website.
The Portland Business Journal reports today that work that closed the navigation locks on the Columbia and Snake rivers for several months is nearing an end, and Tidewater Barge Lines Inc. is preparing to bring back 100 employees it laid off during the closure.
The Columbian reports that the Vancouver, Wash.-based barge operator will also bring another 100 workers back to full-time status who had worked a mix of part-time and full-time hours during the locks outage.
This is good news for the Pacific Northwest maritime industry.
Fishing vessels are heavily regulated and monitored in U.S. waters. But what about in China?
According to a post last month in the People's Daily Online, China's State Oceanic Administration (SOA) in 2010 achieved its marine monitoring mission with a key focus on comprehensive surveillance, which explored the new domain of legal rights and law enforcement to protect nation-state's maritime sovereignty.
As further reported:
In total, SOA has sent the ocean surveillance ship 160 vessel-times, sailing 210,000 nautical miles, and conducted 523 ocean surveillance operation, traveling 540,000 kilometers.
In the South China Sea, a sovereignty monument has been set in Zengmu Reef, announcing it is the territorial waters of People's Republic of China. Marine surveillance of 31 vessel-times was done periodically.
In an article appearing in the Anchorage Daily News on January 15, 2011, it was reported that the largest economic development project under way in Anchorage has stalled under a cloud of construction troubles and ballooning costs. The completion date for the massive dock replacement project at the Port of Anchorage has been pushed back to 2021 from a target of 2011 set before major construction began. The price tag, which was $360 million as of 2005, has escalated to $1 billion.
It was further reported that port officials remain convinced the dock can be built as designed. "Although these setbacks are frustrating, they are not insurmountable and the project remains on track," the port says in written answers to questions.
An editorial that appeared on the same date noted that big shippers do not have much faith in the project. A retired executive called it a "mess" and fears more problems will be discovered. Neither shipper referenced was confident that promised permanent berths will be built.
Other Northwest ports may be facing similar problems so it will be of interest to see how things play out with renovating the Port of Anchorage.
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