Australian Newsletter – Issue 724

Experts Warn Black Sea Mines Pose Serious Maritime Threat
Source: Deutsche Welle (International Shipping News)
Russia and Ukraine have accused each other of laying naval mines recently found in the Black Sea. Global shipping has been disrupted — and prices are rising.
Since last weekend, the Turkish navy has detected and defused several drifting naval or sea mines. It said one had been neutralized near the crucial Bosporus channel, which links the Black Sea with the Sea of Marmara, and ultimately the Mediterranean. The strait was briefly closed to traffic. The Romanian military also said that it had destroyed a sea mine detected by fishermen at the beginning of the week. The mines are reported to be sea anchor mines that do not float on the surface of the water but rather just below it. A steel cable connects the buoyant mine to an anchor, which keeps the device below the water to conceal it.  FULL STORY

Impact of Digital Technology on Maritime Sustainability Explored in Inmarsat and Thetius Decarbonisation Report
Source: Inmarsat
The Optimal Route report examines strategies to reduce greenhouse gases in shipping, offers guide to decarbonisation role of digital technologies.
Inmarsat, the world leader in global, mobile satellite communications, has published a new decarbonisation report exploring the impact digital technology can make on shipping’s greenhouse gas (GHG) emissions. Compiled by maritime innovation consultancy Thetius, and sponsored by the Inmarsat Research Programme, The Optimal Route – The Why and How of Digital Decarbonisation in Shipping Maritime Organization (IMO) CO2 targets for 2050.  FULL STORY

Facing Reality on Current Availability of Green Fuels for Shipping
Source: Marcus Hand (Seatrade Maritime News)
As shipping sets aspirational goals for zero carbon emissions it needs to understand the realities today in terms of the availability of green fuels in making that transition, say leading shipowners.
Speaking at the Singapore Maritime Week Leaders Perspective Andreas Sohmen-Pao, Chairman of BW Group, said “I think what we’ve done really well over the last couple of years is aspirations.” “Aspirations are so important in setting the direction of where we want to go. But you cannot solve the problem if you don’t know, or are unwilling to face, what the reality is.”  FULL STORY

Global Freight Seen Steady but Surplus Supply Weighs
Source: Hellenic Shipping News
Global tanker freight is seen steady over the next few months as oil buyers replenish inventories, exporters release reserves, refinery margins remain high and a major war alters trade flows.
Last month, freight on major tanker shipping routes hit their highest levels in two years, only to partially correct downwards as fundamentals remain strong. Cyclical freight market recovery has begun and all segments are now seeing rates approaching pre-pandemic normal levels, Ole-Rikard Hammer, Oslo-based Senior Analyst, Oil and Tankers at Arctic Securities said. Improvement in the chronically weak VLCC sector, too, is visible as the market enters the second quarter with crude demand spurting across continents.  FULL STORY

Engine: Europe & Africa Bunker Fuel Availability Outlook
Source: Engine (International Shipping News)
Supply in the ARA ports is “super tight” across all grades. Prompt deliveries have been difficult to find in recent days, sources say. 
Suppliers in Rotterdam are running short of fuel and are avoiding offers for prompt deliveries. One supplier can offer LSMGO deliveries in Antwerp from 14 April. Crude distillation unit (CDU) maintenances at several regional refineries in the ARA could have limited production of residual fuel oil as a by-product. ExxonMobil’s Antwerp refinery is undergoing a month-long turnaround scheduled to last to 22 April, according to Wood Mackenzie. Shell’s Pernis refinery – Europe’s biggest – is down for a five-month maintenance due to end on 1 June.  FULL STORY

Dry Bulk Market: a Mixed Bag So Far
Source: Nikos Roussanoglou, (Hellenic Shipping News Worldwide)
The dry bulk market has been a mixed bag in terms of performance over the past few weeks, although it should be said that the start of the second quarter of 2022 has been positive so far. 
+In its latest weekly report, shipbroker Allied Shipbroking noted that “the dry bulk sector continued on its bullish course, having started the 2nd quarter of the year on a relatively positive tone. On the other hand, signs of uncertainty and volatility are still prevalent in global markets, which could rapidly add to downside risk. The crisis in Ukraine has added a fair amount of market “noise”, with potentially unpredictable consequences on global macros. What will happen with commodity prices, interest rates and inflation? In terms of shipping activity, what sort of restructuring will take place in trade flows?”  FULL STORY

Container Ship Orderbook Hits 6.5m Teu for The First Time Since 2008
Source: Niels Rasmussen (BIMCO)
The container ship orderbook hit a post-financial crisis low just below 2m TEU in October 2020.
In the eighteen months since then, liner operators have seen record profits and a large percentage of these have been poured into newbuilding contracts. “In just eighteen months, 6m TEU of newbuilding contracts have been added to the container ship orderbook,” says Niels Rasmussen, Chief Shipping Analyst at BIMCO, adding: “This has taken the orderbook past 6.5m TEU for the first time since late 2008.” The orderbook is now 26% of the fleet size for the first time since 2014 and, combined with YTD 2022 deliveries, 6.2m TEU are now scheduled to be delivered during 2022-2024.  FULL STORY

BHP Signs Letter of Intent for Australia-East Asia Iron Ore Green Corridor
Source: BHP 
A consortium, led by the Global Maritime Forum and consisting of BHP, Rio Tinto, Oldendorff Carriers and Star Bulk Carriers Corp., have today signed a letter of intent (LOI) to assess the development of an iron ore Green Corridor between Australia and East Asia.
To mobilize demand for green shipping and to scale zero- or near-zero greenhouse gas emission shipping, governments and industry decision-makers are increasingly looking to enable and simplify the task of decarbonizing the maritime sector by establishing Green Corridors: specific shipping routes where the economics, infrastructure, and logistics of zero- or near-zero emission shipping are more feasible and rapid deployment can be supported by targeted policy and industry action.  FULL STORY

MMI Daily Iron Ore Index Report April 07 2022
Source: Metals Market Index
DCE iron ore futures market falling trends by 3.02%, the main contract closed 900. the quotation in the morning was decreased by 5-10 yuan/mt over yesterday.
Market wait-and-see sentiment increased, steel mills purchased on demand. total transactions remained insipid. PBF at Shandong port dealt 990-1015 yuan/mt; decreased 5-30 yuan/mt over yesterday. SSF at Shandong port dealt 725-735 yuan/mt; decreased 5-15 yuan/mt over yesterday. SSF at Tangshan port dealt 750 yuan/mt, decreased 7 yuan/mt over yesterday. SMM tracking data shows that from March 28 to March 3, a total of 67 ships arrived at China’s main ports, the arrival volume is expected to be 10.45 million tons, the arrival volume is 730,000 tons more than the previous period, 840,000…  FULL STORY

Sugar Terminals Limited (SUG NSX) Welcomes Port of Bundaberg Funding
Source: Sugar Terminals Limited
Sugar Terminals Limited (NSX:SUG) has welcomed a further provisional $7.7 million funding boost for new infrastructure at the Port of Bundaberg.
TL Chairman Mark Gray said he was very pleased to see the Federal Government increase its funding commitment for a joint project currently being progressed between STL and Gladstone Ports Corporation (GPC) under a project agreement signed by the Australian and Queensland Governments in October 2020. This will assist in the development of new infrastructure at the Port of Bundaberg to attract bulk export orientated mineral and agricultural commodities and drive further investment in the region.  FULL STORY

Port Kembla’s Main Grain Line Reopening Delayed
Source: Liz Wells (Grain Central)
RAIL access to Port Kembla looks like being restricted to one line for an extended period so damage caused by torrential rain last month can be carried out.
The Moss Vale-Unanderra line was initially expected to reopen this month. “ARTC has undertaken extensive geo-tech investigations along the Moss Vale-Unanderra line which have shown significant movement on the embankment,” an ARTC spokesperson said. “At present, the line is not safe for passage of trains. The works required to remediate the site are extensive and will require up to six months to complete. ARTC will continue to update the community as works progress.”  FULL STORY

Australia Welcomes $17.9 Billion Transport Infrastructure Budget
Source: James Turner (Port Technology)
Major road and rail projects across the country will be given a boost in funding as outlined in the Australian Government’s 2022-2023 budget.
The government is committing an additional AUD$17.9 billion ($13.4 billion) to transport projects as part of its 10-year infrastructure investment pipeline. A total of AUD$3.1 billion ($2.3 billion) will be used to support the AUD$3.6 billion ($2.7 billion) Melbourne Intermodal Terminal Package to accommodate future inland rail services and strengthen the national supply chain. The Port of Melbourne has backed the additional funding but has said that priority should be given to the Western Intermodal Freight Terminal (WIFT) as it is the most effective consolidation point for the majority of the port’s…  FULL STORY

Scarborough Gas Venture Wins Key Approvals
Source: Marion Rae (The Flinders News)
Woodside has received key federal and state approvals for the $16 billion Scarborough gas project off the coast of Karratha.
The Woodside-BHP joint venture has secured the pipeline licence needed to build and operate in Commonwealth waters, Woodside announced on Wednesday. Minister for Resources Keith Pitt said it’s estimated the project will have a peak construction workforce of more than 3000, and 600 jobs when operational including around 230 in the Pilbara. “Given the current uncertainty around the world, and an energy crisis throughout Europe, it’s projects like this that build Australia’s capacity to ensure long-term energy and national security,” he said.  FULL STORY

Kiwi Businesses Struggle with Supply Chain Delays
Source: Jessica Roden (1News)
The war in Ukraine, skyrocketing fuel prices and the ongoing pandemic is making it tough on Kiwi businesses trading goods overseas, something that’s not expected to change anytime soon.
Custom Brokers and Freight Forwarders Federation’s Chris Edwards says there’s been consistent challenges over the last two years. “I think if you ask most importers and exporters they’ll say it’s as bad as it’s ever been”. The borders opening up is good news for air freight, though much of the country relies on sea freight. “I think by the end of the year, people who are bringing goods in by air freight, or sending them out by air freight, will have a better situation that they do now.  FULL STORY

Safe Cruise Shipping to Resume in Staged Manner in WA
Source: Government of Western Australia
The State Government has established stringent measures and protocols in readiness for the safe and staged resumption of cruising in Western Australia.
This follows the Federal Government’s decision to lift the Biosecurity declaration and ban on cruise shipping in Australia, effective  April 17, 2022, which would allow States and the Northern Territory to determine when the recommencement of cruises could occur in each jurisdiction.  WA’s Chief Health Officer will release protocols for both Australian and international flagged cruise ships operating in WA waters, which as a starting point, permits cruise ships with up to a maximum of 350…  FULL STORY

Whilst every effort has been made to ensure the accuracy of the information contained herein, Inchcape Shipping Services accepts no liability nor makes any representations or warranties of any kind, express or implied, as to its completeness, accuracy, reliability or suitability.