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CMA CGM TO PURCHASE APL PARENT NEPTUNE ORIENT LINES

The giant French container shipping company CMA CGM will buy Neptune Orient Lines (NOL), parent of U.S.-flag carrier APL, for $2.4 billion, according to a joint statement issued by the two companies.

The takeover, which is expected to close in mid-2016 after anti-trust approvals from authorities in the United States, China and the European Union, would make CMA CGM the world’s third-largest container shipping line.

“This transaction will represent a significant milestone in the development of CMA CGM,” said Rodolphe Saadé, vice chairman of the company, in an official statement. “Leveraging the complementary strengths of both companies, CMA CGM will further reinforce its position as a leader in global shipping with combined revenue of USD 22 billion and 563 vessels. By bringing together the know-how of both teams, the enlarged group will be even better positioned to provide premium services to its customers across all markets.”

“At a time when the shipping industry is facing strong headwinds, scale is more critical than ever to capitalize on synergies and capture growth opportunities wherever they arise. I firmly believe CMA CGM will enable NOL to address the industry’s new challenges. We recognize the strategic importance of Singapore as a key hub for the maritime industry and we are committed to reinforcing its regional leadership.”

“The combined market presence delivered by the transaction would achieve the scale needed to enhance competitiveness for NOL’s operations and offer a clear and sustainable long term direction for the combined entity,” said Ng Yat Chung, chief executive officer of NOL, in an official statement. “The transaction would enable NOL to grow as part of a larger entity with the resources of the world’s third largest container shipping line.”

CMA CGM is a family-owned company that was founded in 1978 by Jacques Saadé. It currently has 469 vessels and a global market share of 8.8 percent.

Note: Outstanding Unfair Labor Practice charges and breach of contract claims against NOL subsidiary APL Limited by four U.S. labor unions, including MM&P, await resolution as this edition of The Wheelhouse Weekly is being distributed. Failure to resolve these issues could impact APL’s U.S. flag operations.

EXPORT-IMPORT BANK REAUTHORIZATION SIGNED

President Obama Friday signed legislation reauthorizing the Export-Import Bank. Congress had earlier voted overwhelmingly to reopen the bank throughSept. 30, 2019. The reauthorization language was included in broad surface transportation legislation. At least 50 percent of the products exported with Export-Import Bank financing must be transported on U.S.-flag vessels.

CONGRESSMAN GARAMENDI: “ENERGY TRANSPORT IMPACTS SECURITY”

Maritime champion Congressman John Garamendi has added language to legislation relating to the export of Liquefied Natural Gas (LNG) to ensure that the transportation of this strategic resource must be considered when evaluating the national security impact of LNG exports. The legislation, HR 8, was passed by the House of Representatives on Dec. 3.

“Too often, we debate the current state and future prospects of our national energy policy without considering the most fundamental point of how that energy is transported,” Garamendi said.

“Including energy transportation in the energy valuation study means… the choices we make for energy transportation must be weighed in terms of their costs and benefits to the American people and to the economy as a whole. And it will allow the U.S. to be as strategic as possible in the choices it makes for energy transportation, examining the many ways that transportation policy can be used to maximize our economic and national security goals.”

HUFFINGTON POST STAFF IS LARGEST DIGITAL NEWS GROUP TO FORM A UNION

Editorial staffers at The Huffington Post have asked management to voluntarily recognize the Writers Guild of America, East, AFL-CIO as their collective bargaining representative. HuffPost writers and editors said in a statement they had decided to form a union “to ensure that we have a voice in the company’s future.”

“A union is a practical way to both preserve what’s working and advocate for necessary changes,” the organizing committee said in a statement. “In just a few months, staff across the country united around key issues including: transparent and equitable compensation, clear job responsibilities, editorial freedom and independence, diversity in the newsroom and consistent management protocols on hiring, firing and discipline.”

A spokesperson for the union said that “an overwhelming majority” of the 350 editorial staffers at the Huffington Post and HuffPost Live, the website’s live streaming network, had signed union cards.

If the unionization effort is ultimately successfully, HuffPost would be the largest U.S. digital news outlet so far to unionize.

TRADE DEAL THAT WOULD END CABOTAGE IN TRUCKING “DISASTROUS,” ITF SAYS

The International Transport Workers’ Federation (ITF) has slammed a provision in a pending international trade deal–the Trade in Services Agreement (TiSA)–that would liberalize cross-border trucking in participating countries.

The text of the deal—which is being negotiated in secret—was released last week by Wikileaks (https://wikileaks.org/tisa/press.html) to coincide with the latest TiSA talks. If the agreement goes forward, it will open up all international and domestic road transport services of all TiSA signatories—including the United States—to operators from the other signatory countries.

“In road freight transport, this would be particularly disastrous,” said ITF Road Transport Secretary Mac Urata. “Eastern European drivers and those from further afield are already paid indecently low wages, work extremely long hours and live in insanitary conditions at truck stops and in parking lots across mainland Europe.”

The ITF said the proposal contained in the TiSA would be “likely to create similar situations elsewhere in the world.”

“This is not a situation that needs liberalization—nor does it need replication,” Urata said. “Rather it needs better regulation, road safety oversight, health and environmental oversight and proper enforcement.”

An additional problem identified by the ITF in the TiSA agreement is the envisaged issuance of visas to drivers via transport associations, not governments. “This is an irresponsible and unacceptable safety and security risk,” Urata says.

TiSA participating countries include those of the European Union as well as the United States, Australia, Canada, Chile, Chinese Taipei, Colombia, Costa Rica, the European Union, Hong Kong China, Iceland, Israel, Japan, Korea, Lichtenstein, Mauritius, Mexico, New Zealand, Norway, Pakistan, Panama, Peru, Switzerland and Turkey.

PILOT EXAM FOR GRAYS HARBOR AND PUGET SOUND PILOTAGE DISTRICTS

On April 4, 2016, in Seattle, the Washington State Board of Pilotage Commissioners will administer to qualified applicants a written exam to be followed, for those eligible, by a simulator evaluation.

Applicants who meet or exceed the cut score set by the Board on the written exam and simulator evaluation will be placed on a waiting list to be called into a training program as needed. Successful completion of a training program is required to qualify for issuance of a state pilot license for the applicable pilotage district.

Applications to sit for the exam will be available on the board’s website, pilotage.wa.gov, in person, or by written or e-mail request. The fax number is206-515-3906. The e-mail address is: PilotageInfo@wsdot.wa.gov.

Any inquiries regarding the application contents or process must be made in writing.

The complete application must be received at the Board office at 2901 Third Avenue, Suite 500, Seattle, WA 98121, no later than 5:00 p.m. (PDT) onMarch 4, 2016 unless prior written permission to file an application at a later time is obtained from the Board.

SEEKING SEA STORIES FROM THE OLD SAN JUAN HALL

Attention all mariners with memories of the MM&P Hall in Old San Juan. MM&P member Bert Haney is writing a book about the glory days of Horizon Lines in Puerto Rico and the happenings at the hall and environs between the late 1970s and December 2014.

Topics to be covered in the book include: Navieras Lines, Horizon Lines, Sealand, the Port O’Call Bar and the Black Angus.

Please send your reminiscences to Bert: bertilhaney2004@yahoo.com or call him at 727-389-4772.

LAST DAY FOR PROCESSING VACATION AND PRO PAYMENTS

The Plan Office has received approval to close the year-end Internal Revenue Service and company reports and to process Vacation and PRO payments for 2015 no later than Tuesday, Dec. 22, 2015, at 3:00 p.m. EST. All requests for 2015 Vacation and PRO payments received after this date and time will be held until Jan. 4, 2016 for processing and will therefore be taxable in 2016. If you have any questions, please contact Ken Ryan at 410-850-8617.

New York/New Jersey, Thursday, Dec. 17, 1200-1600, at the Noble Maritime Collection (same as last year), 1000 Richmond Terrace Building D, Staten Island, NY. This event will include both the Offshore Group and the Atlantic Maritime Group.

/ MITAGS ACADEMIC NOTES /

MITAGS needs your current address! Have you moved recently? Did you remember to send MITAGS your new address for communications regarding courses? Please send your current contact information to admissions@mitags.org or to the fax number below. New dedicated fax line for Admissions only: 1-443-568-1928. For all other MITAGS business, please continue to use: 410-859-5181.

For class availability or information on MITAGS courses and programs, contact Elisabeth Cruz, Admissions Coordinator, toll-free at 866-656-5568 or by e-mail: admissions@mitags.org. Why not try our on-line calendar to register for class: mitags-pmi.org/courses/calendar.

Please note the special addition to our on-campus schedule of MSC classes marked with an asterisk (*), which are not normally scheduled to be held at MITAGS.