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NEWS BULLETIN
Friday, June 24, 2016

Latest Drewry manning report
predicts drop in need for officers

Matson taps Stanley Kuriyama
for board of directors position

Coast Guard vessel traffic unit
helps avoid three close calls

Port of Everett gearing up
for Weyerhaeuser Building move

Trade between NAFTA partners
drops during month of April

Latest Drewry manning report
predicts drop in need for officers

LONDON — Slowing growth in the size of the shipping fleet will reduce the shortage of officers over the coming years, according to the latest Manning report published by global shipping consultancy Drewry. The global shipping fleet -- encompassing all sectors except the non-cargo carrying ship types, such as tugs and passenger ships, and smaller coaster vessels, such as oil tankers and bulk carriers of less than 10,000 dwt -- is expected to rise by 300 vessels through 2016-2020. As a result, the shortage in officer supply is forecast to reduce from 20,900 at the end of 2015 to 7,700 by the end of 2020. The year 2015 proved to be a dreadful one for the entire shipping sector, with the exception of oil tankers. Weak demand, coupled with falling commodity prices and oversupply of tonnage in most sectors led to rates collapsing to levels unseen since the global financial meltdown in 2008-2009. Growing concerns in the global economy and depressed freight earnings have forced owners to refrain from contracting new orders, while order cancellations and vessel demolitions have become a regular feature of the market. Poor freight earnings are forcing owners and operators to reduce costs, in turn keeping any increase in wage levels to a bare minimum. While manning costs for 2016 are largely similar to those in 2015, in some sectors, such as LNG, there have been some uplifts in wage costs over the past year. However, the offshore sector, in particular, has witnessed wage reductions in light of falling oil prices and an uncertain economic outlook.

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Port of Everett gearing up
for Weyerhaeuser Building move

EVERETT — The Port of Everett’s Weyerhaeuser Building, which is listed on the National Register of Historic Places, is set to make its third move on July 13/14. The building will be moved from its current location in the Port of Everett’s South Marina to the new Boxcar Park in the Central Marina at the water’s edge. For the first time, the buiding will be moved by land instead of water. This relocation is an element of the port’s $330 million, new mixed-use Waterfront Place Central development. When fully realized, the Waterfront Place Development is expected to support 2,075 family-wage jobs. The project’s private development will generate $8.6 million annually in state and local sales taxes. The port commission awarded a nearly $1.1 million contract to Everett-based Nickel Brothers to relocate the historic building. The building weighs approximately 350-tons and the move will take about four hours to progress just one mile. The historic Weyerhaeuser Office Building was erected in 1923 at the company’s first Everett plant. Architect Carl Gould was commissioned by the Weyerhaeuser Company to design a 6,000 square foot, one-and-a-half story building that would showcase local wood species such as fir, cedar and hemlock.

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Matson taps Stanley Kuriyama
for board of directors position

HONOLULU — The Board of Directors of Matson, Inc. has appointed Stanley Kuriyama as a director of the company, effective June 23, 2016. Mr. Kuriyama is the executive chairman of Alexander & Baldwin, Inc. He first joined Alexander & Baldwin in 1992, and from January 2010 until his retirement in December 2015, he served as Alexander & Baldwin's president and chief executive officer. Prior to joining Alexander & Baldwin, Mr. Kuriyama was a partner in the law firm of Cades Schutte Fleming & Wright, specializing in real estate and real estate financing. He is a 1977 graduate of Harvard Law School.

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Trade between NAFTA partners
drops during month of April

WASHINGTON, DC — Trucks carried more U.S. freight by value with North American Free Trade Agreement (NAFTA) partners Canada and Mexico in April 2016 compared to April 2015 but declines in all other freight modes led to a 3.2 percent decrease to $90.4 billion in the total current dollar value of cross-border freight. April was the 16th consecutive month that the value of U.S.-NAFTA Freight declined from the same month of the previous year, according to the TransBorder Freight Data released by the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS). The value of commodities moving by truck increased 0.8 percent as the value of incoming freight from Mexico (up 6.5 percent) and Canada (up 3.0 percent) exceeded the 3.6 percent decrease in shipments from the U.S. The value of freight carried on other modes declined: rail 3.4 percent; air 10.4 percent; vessel 26.4 percent; and pipeline 30.5 percent. Trucks carried 66.8 percent of U.S.-NAFTA freight and continued to be the most heavily utilized mode for moving goods to and from both U.S.-NAFTA partners. Trucks accounted for $31.4 billion of the $47.6 billion of imports (65.9 percent) and $29.0 billion of the $42.8 billion of exports (67.8 percent). Rail remained the second largest mode by value, moving 15.6 percent of all U.S.-NAFTA freight, followed by vessel, 5.0 percent; air, 3.8 percent; and pipeline, 3.7 percent. The surface transportation modes of truck, rail and pipeline carried 86.0 percent of the total value of U.S.-NAFTA freight flows.

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Coast Guard vessel traffic unit
helps avoid three close calls

SEATTLE — Coast Guard vessel traffic system personnel intervened in the transit of three vessels on course to run aground or at risk of collision in Puget Sound this week. Members of Coast Guard Vessel Traffic System Puget Sound used unconventional means to contact two of the vessels after VTS personnel were unable to reach them by mandated communication channels, and helped troubleshoot a GPS discrepancy with the third. On Monday, VTS personnel initiated a digital selective calling alert to the crew of the fishing vessel NORTHWIND after all other attempts to contact them via the required radio channels 05A, 13 and 16 failed while the vessel was observed exiting the traffic lane and heading toward Buckeye Shoal. The second case occurred Tuesday when VTS personnel coordinated with the master of fishing vessel AUTUMN DAWN to troubleshoot a plotter discrepancy that had the vessel outside the traffic lane and on a course close to Peapod Rocks. On Wednesday, VTS personnel worked with the crew of a nearby tug to make contact with the operator of the fishing vessel LADY GUNDY, after numerous failed attempts were made over 5A, 13, 14 and 16, while the vessel was observed entering the oncoming traffic lane and heading toward Marrowstone Island. VTS members manage around 230,000 vessels, typically 65 feet or greater in length, and intervene an average of 40 potential collisions or groundings each year.

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