October 15, 2019, The Merchant Navy Journal
Canada's largest bulk shipping company will be aligning an IMO-compliant fleet as of January 1. Paul Pathy, who was in Antwerp to celebrate the group's 75th anniversary, shared his choices. Estimated at $782 million, the St. Lawrence/Great Lakes specialist's recent investments are aimed in particular at renewing its fleet for energy and environmental purposes.
Founded in 1944 by the Pathy family in Toronto, then moved to Montreal in 1953, the bulk shipping company, whose history is intertwined with Canada's iconic river, the St. Lawrence, is 75 years old this year. An anniversary that the internationalized company has decided to honor by marking the year with events in the cities where the company has offices: Antwerp, Barbados, Hamburg, Rio de Janeiro, Singapore, Tokyo.
In Antwerp, Paul Pathy, CEO of Fednav and representing the 3rd generation, stressed during the ceremony that his group had taken steps to ensure that its ships were in compliance with the regulations requiring a more environmentally friendly fleet.
In line with the IMO 2020 on marine fuels, whose sulphur content must not exceed 0.5% sulphur from 1 January 2020, the Canadian bulk carrier specialist (26 Mt transported) has made a religion. Exit scrubbers, an alternative that poses too many technical problems, impure discharges into the water and clutter on board. No recourse either to Low sulphur fuel oil (< 0.5%), the shipowner anticipating low availability while it has been confirmed by the main suppliers. Paul Pathy also believes that the solution still poses too many "technical problems, especially since standards have not yet been developed". Experts recognize its higher operating costs and a possible incompatibility between fuels.
Fednav has therefore decided in favour of MDFO (Marine diesel fuel oil), a product already available on the market and compliant with the 0.1% standard. The spread of $250 per metric tonne with HSFO (High sulphur fuel oil) does not dissuade it. The armament technicians estimate that overall, consumption will be only slightly higher, by 4%. Management, however, is waiting for LSFO to reach its lowest point (i.e. cheaper than MDFO) before using it.
As for the electrical connection at the dock, the Montreal carrier remains in the dark. The on-board facilities are not adequate.
No debts
The Canadian group, which has the advantage of having no debts, operates a fleet of 120 vessels, 65 of which are owned, ultramax bulk carriers up to 63,000 dwt, ready for the Canadian Arctic and the Great Lakes.
Since 1966, a Northern Europe - Great Lakes service, only westbound, has been provided by the Falline subsidiary with a fleet of "lakers" of 34 to 36,000 dwt, rigged to 30 t, which can transport up to 20,500 t.
The group is engaged in a billion-dollar investment program involving 16 vessels, bulk carriers, lakers and an icebreaker,
Paul Pathy, President and CEO of Fednav
Eight of these ships were financed with own funds, the others chartered. Three have already been received, including the Federal St-Laurent and Federal Montréal, whose names reflect the international company's attachment to its river and its city.
As for the trade conflicts between China and the United States, the CEO also remains unmoved: "For the moment, China is still buying Canadian products. The American positions are contributing to creating a climate of nervousness. 2018 was a very good year. 2019 will be a little weaker. Nevertheless, iron and steel shipments from Europe are still sailing to the United States ," he says.