Australian Newsletter – Issue 725

Global Supply Chain Disruption to Continue into 2023
Source: Marcus Hand (Seatrade Maritime News)
Global supply chain disruption is set to last at least another 12 months, and could run through all of 2023, according to Toll Group Managing Director Thomas Knudsen.
Speaking to Seatrade Maritime News last week during Singapore Maritime Week, Knudsen sees a combination of factors in play, including continued congestion in the US west coast and a possibility of a port labour dispute, the Covid situation in China, and a lack of new container tonnage coming into the market, that will prolong disruption and keep rates high. On how long the disruption will continue, he said: “I would say if you’re optimistic, 12 months, if you’re not, it could be all of 2023 also.  FULL STORY

Dynamic Newbuilding Activity Focused 0n Container and LNG Ships
Source: Nikos Roussanoglou (Hellenic Shipping News Worldwide)
The newbuilding market is exceeding expectations so far this year, with slots being snapped up quickly mainly for the construction of LNG and Container ships. 
In its latest weekly report, shipbroker Allied said that “the newbuilding market recorded a strong performance for yet another week with the containership sector still taking up the lion share of fresh projects reported. With containership earnings still showing a fair bit of strength, we continue to see a fairly well distributed diversity in the orders being placed, with this weeks orders indicative of this trend.  FULL STORY

Oman Now 100th Country to Ratify Maritime Labour Convention
Source: United Nations
Oman has become the 100th country to ratify a 2006 treaty that protects the rights, pay and conditions of seafarers – a milestone that was commemorated on Monday by a ceremony at the headquarters of the International Labour Organization (ILO) in Geneva. 
The ratification means more than 96 per cent of the world’s gross shipping tonnage is now covered by the Maritime Labour Convention (MLC), which also applies to most countries that supply workers for the sector. The ILO Director-General, Guy Ryder, described the development as a milestone. He said Oman, a longstanding maritime nation, has shown the way forward for other countries in the region.  FULL STORY

Shanghai Lockdown: Lines Divert Reefer Containers, Services
Source: Marcus Hand (Seatrade Maritime News)
Container lines are diverting reefer shipments and some vessel calls at Shanghai as congestion worsens at the port due to the prolonged Covid lockdown in the city.
As the Shanghai lockdown moves into its third week a severe shortage of trucking capacity, as well as warehouses remaining closed, is impacting yard capacity at the world’s largest container, particularly for reefer cargoes. Shanghai has kept terminals at Yangshan and Waigaoqiao by using a closed loop system where workers live and sleep at the port never going home so they are not exposed to the environment outside the terminal.  FULL STORY

Hapag-Lloyd Joins Maersk Mc-Kinney Moller Zero Carbon Centre
Source: Paul Berrill (TradeWinds)
German container line becomes 20th corporate partner after committing to intensifying efforts to cut its fleet emissions.
German container shipping giant Hapag-Lloyd is joining the Maersk Mc-Kinney Moller Center for Zero Carbon Shipping as a partner. Hapag-Lloyd will become a corporate strategic partner, committing to a long-term collaboration and contribution to the development of zero-carbon technologies for shipping. Hapag-Lloyd recently said it is intensifying efforts to cut its fleet emissions by 30% by 2030 and aims to be climate neutral by 2045.  FULL STORY

Update on MPA’s Preliminary Findings on Reported Bunker Fuel Contamination in Singapore Port
Source: MPA Singapore
The Maritime and Port Authority of Singapore (MPA) was notified on 14 March 2022 that a number of ships had been supplied with High Sulphur Fuel Oil (HSFO) containing high concentration levels of Chlorinated Organic Compounds (COC) (1,2-Dichloroethane, Tetrachloroethylene) in the Port of Singapore.
MPA immediately contacted the relevant bunker suppliers to take necessary steps to stop supplying the affected fuel and to also inform all the ships that were supplied with the fuel to exercise caution when using it. Preliminary investigations conducted by MPA revealed that the affected fuel – a blended product, was supplied by Glencore Singapore Pte Ltd (Glencore).  FULL STORY

Baltic Index Hits 1-Week High on Gains in All Vessel Segments
Source: Rahul Paswan (Reuters)
The Baltic Exchange’s dry bulk sea freight index rose to a one-week high on Wednesday, steered by gains across vessel segments.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, rose 33 points, or about 1.6%, to 2,068 points. The panamax index climbed 106 points, or about 3.7%, to 2,968 points. Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, added $948 to $26,711. Egypt’s state grains buyer will accept offers from Russia and Ukraine in its international wheat purchasing tender this week despite supply disruptions… FULL STORY

Mial to Host Maritime Decarbonisation Summit
Source: Abby Williams (Daily Cargo News)
MARITIME Industry Australia is set to host the inaugural MIAL Maritime Decarbonisation Summit series in Melbourne this month.
Scheduled to commence on 27 April, the summit aims to provide a platform for the industry to share technical information and build networks of stakeholders focussed on maritime decarbonisation. The networks established aim to connect maritime industry players, new energy providers, and government agencies and departments. The summit will enable these stakeholders to collaborate, consult, and co-ordinate strategies to ensure the maritime industry works rapidly and effectively toward decarbonisation.  FULL STORY

New Logistics Hubs to Drive NT’s Economic Development
Source: Barnaby Joyce (The Nationals)
The Morrison-Joyce Government is investing $440 million in new logistics hubs across the Northern Territory to unlock the region’s vast resources, strengthen supply chains and boost exports.
Building better and stronger logistics connections will help the Territory realise its full potential as a resources powerhouse and facilitate greater export activity. Our investment in new hubs at Tennant Creek, Alice Springs and Katherine will ensure valuable commodities such as gas and critical minerals reach ports and international markets faster, generating more export income and making our nation wealthier and stronger.  FULL STORY

Australian Port Delays Impacting Agricultural Machinery Sector
Source: Melody Labinsky (Queensland Country Life)
Delays at Australian ports are the latest challenge to hit the machinery supply chain, according to the Tractor and Machinery Association of Australia.
While 12- to 18-month wait times for new machinery were expected, TMA executive director Gary Northover said reports were now emerging of severe backlogs unloading ships. “Members are citing issues such as overly lengthy delays in quarantine due to a lack of suitably trained staff to process agricultural equipment and overly expensive container costs, sometimes three to four times greater than normal,” Mr Northover said. “This, along with a shortage of containers, is leading some suppliers to resort to roll-on, roll-off for products that would ordinarily be containerised.”  FULL STORY

Bowen Coal Brings on New Coal Supply as Market Turns Bullish Again
Source: Josh Chiat (Stockhead)
Metallurgical coal prices have showed reluctant signs of returning to some form of normality in recent weeks, dropping off the crazy levels in excess of US$650/t they surged to in March during the early days of the Russian invasion of Ukraine.
The logic for their charge was clearly evident. Coking coal supplies were already tight from a series of market ructions including an inexplicable number of disruptions across the seaborne market last year and the redirection of Australian coal flows out of the Chinese market via an unofficial ban enacted in 2020.  Add to that heavy rainfall and Covid absenteeism across Australia’s east coast…  FULL STORY

Port of Brisbane Welcomes New Container Park from MEDLOG
Source: Port Technology
Logistics and supply chain operator MEDLOG will set up a new automated container park at the Port of Brisbane.
The company, which is one of the businesses within the MSC Group, has signed a 30-year lease for a 7.3-hectare site on Fisherman islands. According to the port, once the facility is fully operational, it will be one of the world’s most automated container parks, incorporating high-end technology to deliver world-class standards in terms of operation and safety. Brisbane will develop the site to MEDLOG’s specific requirements for the storage and operations of both empty and full laden containers. The project is expected to be completed by Q3 of this year.  FULL STORY

Pilbara Ports March 2022 Shipping Figures
Source: Pilbara Ports Authority
Pilbara Ports Authority has delivered a total monthly throughput of 60.3 million tonnes (Mt) for March 2022.
This throughput was a four per cent decrease compared to March 2021. The Port of Port Hedland achieved a monthly throughput of 47.3Mt, of which 46.5Mt was iron ore exports. There was no variance to total throughput compared to March 2021. Imports through the Port of Port Hedland totalled 147,000 tonnes, a decrease of 18 per cent compared to March 2021. The Port of Dampier delivered a total throughput of 12.1Mt, a 15 per cent decrease from March 2021.  FULL STORY

Shell Resumes Shipping LNG from Prelude Off Australia
Source: Sonali Paul (Reuters)
MELBOURNE, April 11 (Reuters) – Shell Plc (SHEL.L) said on Monday it has resumed shipping liquefied natural gas (LNG) from its Prelude floating LNG facility off northwest Australia after a four-month shutdown due to a major power failure.
A cargo completed loading and left the site on Sunday night, a Shell spokesperson said, declining to disclose the destination. “Our focus at Prelude remains on the long-term and delivering safe, sustained and reliable performance into the future,” Shell said in a statement.  FULL STORY

Tradewindow Partners with Portconnect
Source: TradeWindow
Auckland, NZ. TradeWindow, a leading Australasian trade tech company headquartered in Takapuna Auckland, has partnered with comprehensive online cargo management system PortConnect, to offer another layer of supply chain visbility for its customers.
PortConnect’s software provides visibility of the status of cargo within the sea and inland ports, which will be integrated through an API connection with TradeWindow’s digital trade network. PortConnect provides container and vessel data for the Ports of Auckland, Port of Tauranga, Timaru Container Terminal and Lyttelton Port Company who together process more than 70% of New Zealand’s exports. Cargo movements through the ports are a significant stage in exporters (and importers) supply chain transactions.  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.