VMA's Maritime Bulletin Edition 88 Vol. 2

Volume 88 No. 2

February 2024

“The Voice of Port Industries” @VAmaritime

2024 “VMA PORT DAY” STRENGTHENS ADVOCACY EFFORTS FOR MARITIME INDUSTRY RICHMOND, VA | On February 8th, VMA held a successful 2024 Port Day at the General Assembly. Over 70+ VMA members split into 21 teams, engaging with 85+ state delegates and senators advocating priorities crucial for the maritime and supply chain industries. These interactions promoted valuable one-on-one discussions with regional decision-makers, serving to introduce the Virginia Maritime Association and its members to newly elected officials while also strengthening bonds with existing ones.

VMA’s Port Day kicked off the previous evening with a Legislative Reception providing an informal environment for VMA members to make connections with members of the General

Assembly and officials in Governor Youngkin’s administration.

The following day, teams embarked on visits to legislators at the General Assembly Building, initiating dialogues on pressing maritime and supply chain issues. The event concluded with a luncheon featuring The Honorable George “Bryan” Slater, Secretary of Labor, Commonwealth of Virginia, as the guest speaker, who addressed critical aspects of maritime workforce development.

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PRESIDENT SIGNS EXECUTIVE ORDER TO AMEND REGULATIONS SAFEGUARDING U.S. VESSELS, HARBORS, PORTS & WATERFRONT FACILITES WASHINGTON, DC |On February 21, 2024, President Biden signed an Executive Order amending regulations relating to the safeguarding of vessels, harbors, ports, and waterfront facilities of the United States. The amendments primarily focus on updating regulations related to maritime security in response to the

INSIDE THIS EDITION

growing threat of cyber incidents. Key changes to Part 6 of Title 33 of the Code of Federal Regulations are: 1. Definitions and Clarifications: - Clarifies the role of the “Captain of the Port” and updates definitions related to security zones, damage, and cyber incidents.

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h West Coast South America Service (4)

h VMA Committees (7)

h Upcoming VMA Events (2)

h Port Statistics (5)

h VMA Anchor Members (8)

h FMC Final Rule on D and D (3)

h Association in Action (6)

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Photo by: InterChange

OFFICERS Chairman of the Board Michael Coleman President Judy Barrett Vice Presidents Lang Williams Capt. Kenneth Flowers Capt. Whiting Chisman Executive Director & Secretary David White Treasurer Camille Cherry Assistant Treasurer Tracy Gregorio STAFF Senior Vice President....................... Will Fediw Vice President of Finance & Administration.............................. Sam Davis Director of Membership Development............................ Kristen Greene Executive Assistant.................... Shayla Prince Event Manager & Accounting Assistant................ Jennifer Parham Marketing Manager ................ Jennifer Deason Membership & Publications Coordinator........................... Susan Wisniewski For Questions about the Bulletin or Advertising jdeason@vamaritime.com - 757.628.2667

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SAVE THE DATE

VMA GOLF CLASSIC THURSDAY, APRIL 18

PORT DAY CONT.

Key legislative priorities discussed during the event included: 1.

Workforce Development: Advocating for programs and initiatives to attract, retain, and develop talent in maritime and supply chain industries.

2. Freight Transportation & Economic Development: Supporting measures to enhance Virginia’s freight transportation networks to attract investments and create jobs.

3. Site Readiness: Endorsing continued investments in businessready sites and infrastructure to seize market opportunities.

4. Energy Resilience: Backing policies ensuring access to sustainable energy sources to fortify Virginia’s industrial supply chain base.

Additionally, there was support for proposals like Business Ready Sites funding and the Establishment of Business Ready Expedited Permitting Program to enhance site readiness. Moreover, bills like Energy Efficiency Grant Identification & Application Assistance received backing to ensure energy resilience and sustainability.

The success of the 2024 “VMA Port Day” underscores the collective commitment of VMA members to advocate for policies fostering growth, competitiveness, and resilience within the maritime and supply chain industries and building relationships with legislators. VMA continues to collaborate, advocate, represent, and drive positive change for our members, industry, and the Commonwealth of Virginia.

Teams advocated for specific legislative actions, including supporting initiatives such as Talent Attraction and the Creation of Standardized Credits & High School Graduation Credentials to address workforce challenges. They also endorsed measures such as the International Trade Plan and the Mount Rogers Planning District Inland Port to bolster freight transportation and economic development.

FMC PUBLISHES FINAL RULE ON DETENTION AND DEMURRAGE BILLING PRACTICES WASHINGTON, DC | On February 23, 2024, a Final Rule issued by the Federal Maritime Commission establishes new requirements for how common carriers and marine terminal operators (MTOs) must bill for demurrage and detention charges, providing clarity on who can be billed, within what timeframe, and the process for disputing bills.

detention invoices can only be issued to either: (1) the person for whose account the billing party provide ocean transportation or storage of cargo and who contracted with the billing party for the ocean transportation or storage of cargo; or (2) the “consignee,” defined as “the ultimate recipient of the cargo; the person to whom final delivery of the cargo is to be made”.

A key provision of this rule determines that demurrage or

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Photo by: Dominion Energy

FMC CONT. THE PORT OF VIRGINIA® and detention bills cannot be issued to multiple GAINS WEST COAST SOUTH Demurrage parties simultaneously.

AMERICA SERVICES WITH The rule also requires vessel-operating-common carriers (VOCCs) and MTOs to issue detention and demurrage invoices DIRECT CALLS FOR DRY, within 30 calendar days from when charges were last incurred.

Non-vessel-operating common carriers must issue demurrage and detention invoices within 30 calendar days from the issuance REFRIGERATED CARGO NORFOLK, VA | The Port of Virginia® has announced the addition of two new services directly connecting to the Latin American market.

date of the invoice they received.

“This is an important development because it opens up an opportunity, that previously didn’t exist, to directly do business in some growing, important markets in South and Central America,” remarked Stephen A. Edwards, CEO and executive director of the Virginia Port Authority.

The move is expected to significantly impact various sectors, particularly perishable commodities and seafood imports entering Virginia, as well as exports such as pork and poultry destined for the west coast of South America.

The first service, a collaboration between VMA member ocean carriers CMA CGM and ONE, now links The Port of Virginia to ports in Colombia, Peru, Chile, Ecuador, and Panama. “This direct service allows us to become more competitive in this area of business in both directions, north- and southbound,” Edwards emphasized.

Dan Sheehy, senior vice president of Product & Network at Ocean Network Express (ONE), highlighted the significance of this expansion, especially in serving the South American customer base, particularly in the refrigerated market.

Furthermore, with The Port of Virginia being the last stop on the US East Coast for this service, exporters are poised to benefit from extended timeframes, ensuring goods reach their destinations more promptly.

The second service, operated by ocean carrier MSC, extends its Ecuador NWC service to its Scan Baltic service, now calling at ports in the Bahamas, Panama, Costa Rica, Peru, and Ecuador under the name Ecuador – NWC & Scan Baltic – USA. These strategic additions underscore The Port of Virginia’s commitment to facilitating global trade and providing efficient avenues for businesses to access key markets in Latin America.

With enhanced connectivity and streamlined logistics, the port aims to drive economic growth and strengthen its position as a vital gateway for international commerce.

Source Virginia Port Authority

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Billed parties have at least 30 calendar days to make fee mitigation, refund, or waiver requests. If a timely filed request is made, the billing party must attempt to resolve the matter within 30 calendar days, unless both parties agree to a longer timeframe.

The new rule will advance the Commission’s goal of promoting supply chain fluidity by ensuring a clear connection between the failure to pick-up cargo or return equipment in a timely manner and the appropriate fee. The rule ensures that billed parties understand the demurrage or detention invoices they receive by requiring certain identifiable information be included by the billing party on the invoice. Failing to include any of the required information in a detention or demurrage invoice eliminates any obligation of the billed party to pay the applicable charge. Of course, if an invoice does comply, a charged party does have an obligation to pay charges billed. The new rule will provide relief to parties who should never have received a bill for detention or demurrage.

Most of the rule takes effect on May 26, 2024. The “Contents of Invoice” section 541.6 involves information collection and must be approved by the Office of Management and Budget. The Commission will announce the effective date of section 541.6 once approved.

Source Federal Maritime Commission

VESSELS BY TYPE

DISTRIBUTION OF COAL DUMPINGS HAMPTON ROADS REGION (IN NET TONS OF 2,000LBS)

Source: Virginia Port Authority

Jan 2024

**1 month 2024

Jan 2023

1 month 2023

TOTAL

3,445,623

3,445,623

2,746,452

2,746,452

1,511,914

1,511,914

1,251,274

1,251,274

776,851

776,851

610,449

610,449

DTA

1,156,858

1,156,858

884,730

884,730

YTD-24

Jan -23

YTD-23

Arrive

Arrive

Arrive

Arrive

BULK

20

20

23

23

COAL

38

38

37

37

CONTAINER

133

133

134

134

GENERAL

8

8

4

4

PASSENGER

0

0

0

0

RORO

4

4

6

6

TANKER

1

1

3

3

TOTAL

204

204

207

207

Source: Coal figures compiled by coal terminals & third party sources **Estimated figure

PORT OF HAMPTON ROADS TEU’S TOTAL

Jan -2024

**1 month 2024

Jan -2023

1 month 2023

276,693

276,693

288,380

288,380

Source: Virginia Port Authority

CUSTOMS RECEIPTS VIRGINIA CUSTOMS DISTRICT TOTAL

Dec 2023

**12 month 2023

$129,975,762

$129,975,762

PORT STATISTICS | JANUARY 2024

**NS Pier IX

Jan-24

Source: Virginia Port Authority

ULTRA LARGE CONTAINER VESSELS (ULCV) ULCV

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13

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EXECUTIVE ORDER CONT. 2. Enhanced Security Measures:

6. Responsibilities:

- Empowers the Captain on the Port to take actions to prevent damage or inquiry to vessels, waterfront facilities, and digital infrastructure, including preventing access and establishing security zones.

- Reinforces the primary responsibility of vessel masters, owners, operators, and agents for the protection and security of vessels and waterfront facilities, including digital infrastructure.

3. Expanded Authority: - Grants the Captain of the Port authority to inspect, search, and remove persons, articles, or things, including digital infrastructure, as necessary for security purposes.

4. Cybersecurity Measures: - Introduces provisions for preventing, detecting, assessing, and remediating cyber incidents that could endanger vessels, harbors, ports, or waterfront facilities.

7. Coordination and Enforcement: - Requires coordination between the Coast Guard (Commandant) and the Department of Justice, as well as other relevant agencies, in enforcing these regulations.

Overall, these amendments aim to bolster maritime security measures in response to the increasing threat of cyber attacks, ensuring the protection of vessels, ports, and related infrastructure in the United States.

Source: The White House

5. Reporting Requirements: - Mandates immediate reporting of sabotage, subversive activity, or cyber incidents involving vessels, harbors, ports, or waterfront facilities to relevant federal agencies.

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Photo by: Independent Docking Pilots

ASSOCIATION IN ACTION Simply stated, active VMA members are Better Connected, Better Informed, and Better Represented. This segment of the Bulletin aims to provide insights into some of the ways in which the interests of VMA members were Better Represented during the previous month.

Each January, the Association devotes much effort to representing the interests of the VMA membership during the legislative session of Virginia’s General Assembly. Priorities for VMA during the 2024 session emphasized continued investment and improvements in workforce development, freight transportation, economic development, business ready sites, and energy. Over 40 bills and budget proposals were identified as part of VMA’s legislative agenda or to be monitored for possible defensive intervention.

VMA was pleased to have participated in a pre-session sendoff event for Speaker Don Scott and to have been included in a January 25 update on the legislative session given by Governor Glenn Youngkin.

Congressman Rob Wittman a tour of Richmond Marine Terminal and updates on the state of the industry.

Photo : Office of U.S. Representative Rob Wittman

VMA was included in discussions the Virginia Economic Development Partnership held with the leaders of their key partner organizations to identify strategic priorities to strengthen the commonwealth’s economic competitiveness. VEDP will incorporate partner perspectives to develop initiatives in an economic development Strategic Plan emphasizing knowledge work, manufacturing, and logistics.

Newport News Public Schools and Old Dominion University are partnering to establish a new laboratory school, the Maritime and Environmental Studies Academy (MESA). VMA contributed to planning discussions about summertime programs to introduce young people to jobs and activities which might spark their interest in attending MESA. VMA represents the interests of our port and member businesses on a number of standing boards, advisory committees, and in other venues. In January, these included:

VMA Board member Clyde Clark, VPA Board Commissioner Ed O’Callaghan, and VMA Exective Director David White presenting port artwork to the Speaker of the House Don Scott during Port Day. This is one of several pieces which will be displayed on loan from Virginia Martime Association in the Speaker’s offices in the General Assembly Building.

In addition to the state-level advocacy, the VMA keeps Virginia’s Congressional delegation informed of the needs and priorities of the industry. In January, this included meetings in Washington, D.C. with key staff for several members of Virginia’s Congressional delegation discussing dredging. VMA also partnered with the Virginia Port Authority to provide

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Virginia Harbor Safety Committee, Executive Committee

•

Elizabeth River Project, Board of Directors

•

Virginia Offshore Wind Development Authority, chaired by VMA’s Will Fediw.

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Hampton Roads Executive Roundtable, Board of Directors

Photo by: Independent Docking Pilots

VMA COMMITTEES Warehousing & Distribution Center (11/6) The City of Suffolk provided an update to proposed regulation changes for land use permits, the Virginia Port Authority provided updates on port-centric developments, and VEDP discussed statewide commercial real estate developments and data. An update was also given on regional vacancy rates and market conditions.

Education & Training (12/6) Several ongoing initiatives were discussed, including the Guidance Counselor Event Series, the Maritime Career Guide, K-12 curriculum development, and Green Run Collegiate’s Summer Bridge Program.

Freight Forwarders & Customshouse Brokers (11/9) A presentation was given on ODU’s new School of Supply Chain, Logistics, & Maritime Operations, and there was a discussion on election outcomes and changes to the legislative climate in Virgina.

Towing & Barge (12/6) There was a discussion on regional bridge operations, with an update on the railroad bridge working group. DOT drug & alcohol testing reporting requirements was discussed, as well as workforce development initiatives and regional towing vessel availability.

Communications & Outreach (11/13) The status of dredging and Congressional appropriations was discussed, as well as the recent election and upcoming Regular Session of the General Assembly. The upcoming Port Day and legislative priorities were also discussed.

Communications & Outreach (1/7) The status of Anchorage F and Congressional appropriations was discussed, as well as geopolitical events impacting the supply chain and the ongoing Regular Session of the General Assembly. Port Day and legislative priorities were also discussed.

Environmental Affairs (11/14) There was a discussion on the recent DWR Marine Mammals Workshop and potential impacts to commercial vessel traffic.

Updates were provided on various regulatory items and potential environmental-related legislation for the upcoming Session.

Offshore Wind (1/18) Compass Marine Insurance made a presentation on liability exposures in the offshore wind industry, and Crowley Wind shared a presentation on their operations in the northeast.

Project updates were given by various developers, and the U.S. Coast Guard shared related updates and information.

Offshore Wind (11/16) Duke University provided a presentation on scientific monitoring of marine mammals and other wildlife, and new representatives from DEME Offshore introduced themselves.

Project updates were given by various developers, and the U.S. Coast Guard shared related updated and information.

Cargo Owners (12/5) Representatives from the Education & Training Committee shared information on workforce development, and the Hampton Roads Alliance shared an update on the offshore wind industry. An operational update from the Virginia Port Authority was also given, and there was a discussion on the impacts of the Panama Canal.

Strategic Planning (1/18) The Committee met to review the current VMA Strategic Plan, evaluate progress to date, and discuss future meeting objectives.

Towing & Barge (1/25) The U.S. Coast Guard provided updates on drug & alcohol testing reporting, as well as sexual assault/sexual harassment (SASH).

INTERESTED IN JOINING A VMA COMMITTEE? Contact Shayla Prince sprince@vamaritime.com

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P.O. Box 3487 Norfolk, Virginia 23510

P L AT I N U M A N C H O R S

GO L D E N A N C H O R S Bay Power Solutions Cadeler AS Cargomatic CIE Manufacturing Colliers

CSX Transportation CV International, Inc. Excel Truck Group Greater Richmond Partnership, Inc. Kaufman & Canoles, P.C.

T. Parker Host VHB Virginia Pilot Association Wood Rogers Vandeventer Black PLC

S I LV E R A N C H O R S AdvanSix Albemarle Tug Company BDO USA, LLP Capes Shipping Agencies CMA CGM (America), LLC Coastal Design & Construction, Inc. ECPI University Givens Logistics, LLC

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Great Lakes Dredge & Dock Co. KITCO Fiber Optics Kokosing Industrial Kuehne + Nagel, Inc. Pender & Coward, P.C. Perdue Agribusiness, LLC Port City Transportation SeaGate Terminals, LLC

Tecnico Corporation Tidewater Staffing, Inc. TMEIC Corporation Truist Virginia Natural Gas Virginia Tech Corporation Research Center