Weekly News Summary For August 4 - August 10, 2008:
Associated Branch (Bar) Pilots moved 51 ships into or out of the Mississippi River July 28, clearing up much of the deep-draft log jam that had developed after the Coast Guard shut down the river between Mile 98.5 and the Sea Buoy, 22 miles below the Head of Passes, following an oil spill caused when a downbound ship and barge collided before dawn on Wednesday, July 23. The pre-dawn ship and barge collision wrapped the barge around the ship’s bulbous bow and fouled the busy waterway with most of barge’s cargo of 9,980 barrels of heavy No. 6 oil.
Published reports are now calling the spill a billion-dollar accident. The Port of New Orleans said shutting down the river was costing it $100,000 per day, not counting the loss to terminal operators, stevedores and tug companies.
James Campbell, president of the New Orleans chapter of the International Longshoreman’s Association and president of the Board of Commissioners of the Port of New Orleans, said 600 dock workers would lose between $500 and $1,500 in wages while idled.
A Marine Safety Bulletin issued by Capt. Lincoln Stroh, Captain of the Port of New Orleans, “highly discouraged” shrimping or harvesting any type of seafood in the vicinity of the downriver Head of Passes, including areas around Pass a Loutre, Main Pass, South Pass, Southwest Pass and surrounding waters.
Several cargo ships were diverted to other ports, and Carnival Cruise lines bused passengers for the Carnival Fantasy to Mobile for a sailing. The ship returned to its home port in New Orleans.
The Coast Guard allowed ships to start moving on Sunday, July 27. Only two of the 10 ships transiting downbound on the Lower Mississippi River through the “dirty zone” the first day required cleaning….
Two recent accidents involving DRD Towing vessels that did not have properly licensed operators prompted a quick response from the Coast Guard.
“In light of those two incidents, the Coast Guard identified 18 DRD Towing-owned vessels operating through the Western Gulf region, including 12 in New Orleans,” a press release from the Coast Guard’s Eighth District said.
“The Coast Guard visited all 12 vessels on July 23 and they were all found to be properly manned with adequately licensed personnel,” the release reported.
A formal investigation into the cause of the accident and spill on July 23 has been ordered by Rear Adm. Joel Whitehead, commander of the Eighth Coast Guard District. The public hearing is scheduled for August 12 at the Hale Boggs Federal Building, 500 Poydras St. in New Orleans.
In the July 23 accident, the DRD Towing vessel Mel Oliver was pushing an oil barge loaded with 9,980 barrels of heavy No. 6 oil when it reportedly crossed in front of the tankship Tintomara….
Kirby Corporation, Houston, Texas, announced record net earnings for the second quarter of $40.3 million, or 74 cents per share, compared with net earnings of $30.1 million, or 56 cents per share, for the 2007 second quarter.
Consolidated revenues for the 2008 second quarter were a record $348.3 million, an increase of 21 percent over the $288 million reported for the 2007 second quarter, the company said.
“Our record second-quarter results mark the 18th consecutive quarter that our earnings exceeded the same quarter of the previous year,” said Joe Pyne, Kirby’s president and chief executive officer. “Our marine transportation segment’s results reflected continued favorable demand in our petrochemical market, partially offset by high Mississippi River water levels. Pricing for our transportation services continued to trend upward. Our diesel engine services segment’s results reflected continued strong demand in our medium-speed markets.”
Kirby reported record net earnings for the first half of 2008 of $77.0 million, or $1.42 per share, compared with $54.6 million, or $1.02 per share, for the first half of 2007. Consolidated revenues for the 2008 first half were a record $678.8 million, a 21 percent increase compared with $562.2 million for the first six months of 2007…
American Commercial Lines reported revenues increased by 23.5 percent in the second quarter compared with the same period last year, but net income declined. In its July 29 earnings statement, ACL announced that revenues for the quarter were $322.7 million, compared with $261.2 million a year ago. Net income, though, was $3.4 million, or six cents per diluted share, compared to $5.9 million or nine cents per diluted share in the second quarter of 2007.
“The second quarter presented us with the dual challenges of inclement weather and continued cost inflation,” said Michael P. Ryan, president and chief executive officer. “Despite these obstacles, we were able to progress our strategy of building a better book of business and controlling our costs to improve profitability.
“While we understand that the results of one quarter do not represent a trend, and we continue to face industry volatility, we are pleased to have achieved some performance highlights in the second quarter. Our manufacturing segment’s second quarter operating performance was the strongest in several years. In Transportation, we achieved revenue growth in our liquids business for the fifth consecutive quarter. We continue to experience steady demand and pricing strength across both liquid and dry businesses, realizing approximately 13 percent fuel-neutral rate increases,” Ryan continued…
This concludes a five-part series on the impact of high-cost diesel fuel on the barge and towing industry.
With the cost of marine diesel fuel ranging in the mid-$4 range and rising, vessel operators are utilizing various technologies to obtain maximum fuel efficiency. We’ll examine in this article some of these trends and technologies.
Among the most beneficial recent technologies are Global Positioning System (GPS) and electronic charting. A pilothouse display can show the exact position of a vessel, its speed over the ground, and its relationship to other vessels. A number of systems play off GPS, recognizing that fuel/speed tradeoffs are crucial.
One large carrier, which did not wish to be identified, has developed a proprietary system that elevates some of the commercial applications on the market. The system integrates such factors as the cost of fuel, tow size, barge opportunity cost, towboat operating cost and river conditions to determine an optimum fuel flow and engine speed for each boat. The pilot sets his throttles accordingly.
Electronic charts showing the river channel centerline, buoys and obstructions assist the pilot in staying on course and minimizing rudder movements. Each time a pilot moves his rudders, some extra fuel is burned, so anything that reduces or minimizes rudder movement is a positive measure. Using satellite transmission, one operator takes electronic chart and operating data off one boat that may, for example, have just completed a trip down the Lower Mississippi, and sends it by satellite to another company boat about to make the same trip. Thus, the pilot of the second boat will have the benefit of river conditions just obtained a few days earlier by the first vessel…
It is a rare honor to pilot the boat that bears your name on its nameboard. It’s a distinction that Capt. Joseph Morrison now enjoys, following Blessey Marine Service’s most recent christening ceremony, June 27 in Houston.
Blessey has had the namesake of the boat as its master only one other time, said Walter E. Blessey Jr., owner of the growing barge line.
Morrison began his career with Colle Towing on July 16, 1988, after hearing about the job from a hunting friend. Seven years later, he joined the Blessey team as a deckhand on the mv. Susan Ponthier. Working for Blessey for 13 years, he has earned a reputation for integrity and a strong work ethic.
“Joe is the epitome of what this company is all about,” said Blessey.
Blessey Marine shared a biography of Morrison, stating that he is “always willing to go the extra mile by consistently doing more than what is expected of him. He is the first to lend a helping hand and is well respected by his colleagues and friends.”
For Morrison, the feeling is mutual. “You don’t have to be connected by blood to feel a part of the Blessey family,” he said at the christening ceremony. “I feel like extended family.”
Martin Sneed of Sneed Shipbuilding Inc., shared a story about Morrison to lay proof to the integrity claim. Sneed said that several years back he remembers accidentally leaving a “$3 knife” on the boat Joe was working on at the time. Sneed considered it a lost item, not worthy of a second thought. To his amazement, many years later Morrison returned the knife to its owner, a testament to his honor and integrity, said Sneed….
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