Australian Newsletter – Issue 726

AdobeStock 68015662

Tanker Market Affected By Geopolitican Tensions

Source: Nikos Roussanoglou (Hellenic Shipping News Worldwide)

Tanker markets are being broadly impacted by uncertainties related to geopolitical developments. Aframax and Suezmax freight rates, the main vessels used to transport Black Sea flows, have been particularly affected, OPEC said in its latest monthly report.

In monthly terms, Aframax spot freight rates around the Mediterranean are up by more than 70% in March from January levels, while spot Suezmax rates in the Atlantic basin are some 50% higher over the same period. The strength filtered up to VLCCs, improving overall sentiment. A host of spillover effects from events in Eastern Europe have resulted in trade dislocations. Clean rates have also seen strong support on all monitored routes, particularly on the Mideast-to-East route.  FULL STORY

Crew comms critical for all ships during challenging times

Source: Digital Ship

Crew communications are widely accepted as an important element of seafarer welfare provision and vessel operators are now prioritising onboard systems to enable crew to keep in touch with home, reports IEC Telecom.

The crisis in Ukraine and the COVID-19 pandemic have highlighted the vital need for internet access and contact with home, while seafarer surveys regularly identify connectivity as a key factor in onboard happiness, recruitment and retention. The role played by crew connectivity in seafarer wellbeing was underscored recently when the International Maritime Organization (IMO) approved measures aimed at enhancing crew communications for seafarers impacted by the conflict in Ukraine.  FULL STORY

Shipping costs lowered, but trade haunted by global woes

Source: China Daily (Hellenic Shipping News)

Despite notable drops in the cost of shipping containers from China to Europe and the United States since late 2021, many Chinese exporters have delayed their delivery times for existing orders and instead rushed to secure fresh orders, to cope with the changing scenarios both at home and abroad.

The Russia-Ukraine conflict has inflated prices of energy and agricultural products in Europe and the Middle East, besides causing fluctuations in the exchange rate of the US dollar. “These factors have weakened consumption in these regions and squeezed our export volume,” said Jin Xiaomin, chairman of Zhejiang Kingston Supply Chain Group Co Ltd, a Yiwu, Zhejiang province-based goods exporter.  FULL STORY

Port Congestion – A Q1 review of the number of Dry Bulk Vessels

Source: Maria Bertzeletou (The Signal Group)

The first quarter of the year comes with an overall upward trend in the number of vessels in waiting and operating status at worldwide ports.

Although the last year seemed to be the year of record-high levels, we have seen even stronger figures each month in 2022. In the below screenshot from the Signal Ocean Platform, we view the number of vessels congested at worldwide ports and it is clear that even April comes with a higher trend than the same month last year.  FULL STORY

DP World global container volumes up 1.7% in first quarter

Source: Peter Shaw-Smith (Seatrade Maritime News)

DP World Limited handled 19.3m teu across its worldwide portfolio of container terminals in the first quarter of 2022.

Gross container volumes increased by 1.7% year-on-year on a reported basis and up 1.9% on a like-for-like basis. Jebel Ali first quarter volumes fell 1% year-on-year. First-quarter volume growth in 2022 was driven by the Asia Pacific, Middle East, Europe and Africa, and Americas regions. “At an asset level, Qingdao (China), Sokhna (Egypt) London Gateway (UK), Yarimca (Turkey), Dakar (Senegal), Caucedo (Dominican Republic), Buenos Aires (Argentina) and Posorja (Ecuador) delivered a strong performance,” the company said in a Nasdaq Dubai filing.  FULL STORY

MSC’s Journey Towards Net-Zero Emissions By 2050

Source: MSC (Hellenic Shipping News)

Having made the pledge in 2021 to achieve net-zero greenhouse gas emissions by 2050, MSC Cruises is continuously exploring and investing in new technologies that are helping to decarbonize, some with very promising results.

On this journey, minimising the impact of cruises ships on port communities and their environment while berthed is key. Shore power plays a role to this end; it enables ships to turn off their engines and connect to local electric power to run their onboard systems. With electricity travelling to the ship through a specially designed transformer at the dock, this process prevents emissions produced from diesel generators, improving local air quality as well as reducing noise and vibration levels.  FULL STORY

Iron ore wobbles on supply risks, China demand worries

Source: Enrico Dela Cruz (Reuters)

Dalian iron ore finished a wobbly trade slightly firmer on Thursday, after miner BHP Group BHP.AX flagged a continuing production weakness, with gains capped by COVID-19 concerns and steel production controls in top steel producer China.

The most-traded September iron ore on China’s Dalian Commodity Exchange DCIOcv1 ended daytime trade 0.3% higher at 904 yuan ($140.24) a tonne, after two days of losses. On the Singapore Exchange, the steelmaking ingredient’s most-active June contract SZZFM2 was down 0.4% at $150.85 a tonne by 0714 GMT, after swinging back and forth. BHP, the world’s largest listed miner, fell short of estimates for iron ore production for the March quarter, as a pandemic-related labour crunch weighed on its efforts to boost production in Australia’s Pilbara region.  FULL STORY

According To The New Euroconsult Maritime SATCOM Report, The Industry Is Experiencing Positive Trends

Source: Satnews

Euroconsult has released their annual “Prospects for Maritime Satellite Communications” report, which shows that despite the prolonged COVID-19 pandemic and its associated impacts, 2021 was still a positive year for the global maritime SATCOM market.

However, some segments, according to the report, were more resilient to the pandemic shocks than others. The merchant sector, which represents the largest connectivity market with more than 240,000 terminals at the end of last year, helped keep afloat the Maritime VSAT service revenues, by generating almost half of the $655 million earned last year.  FULL STORY

Certainty welcomed for new gas, minerals

Source: Marion Rae (Port News)

Australian companies will get more taxpayer support to take their place in the world’s new energy and high-tech economy if the Morrison government is re-elected.

Federal subsidies to reinvent fossil fuels and mine new minerals, announced on the campaign trail on Tuesday, have been welcomed by industry. Australian Petroleum Production and Exploration Association Deputy chief executive Damian Dwyer said the policy announcement recognises the importance of gas for decades into the future. “This greater certainty for industry will be critical for Australia’s economic recovery and commitment to decarbonise as part of a cleaner energy future,” Mr Dwyer told AAP.  FULL STORY

Global market needs Aussie grain

Source: Nathan Cattle (Farm Weekly)

Appetite for Australian grain remained strong last week with 37 different buyers purchasing grain through Clear Grain Exchange and many more searching for grain on offer.

The world remains nervous over how it will source grain. This has been the case for some time now with poor crops in the northern hemisphere last season putting Australian grain in an enviable position of being the major source of grain to the world. More recently the Ukraine/Russian conflict has extended those global supply concerns into the latter stages of this year as the market grapples with the disruption in grain coming from these major suppliers.  FULL STORY

Port of Brisbane welcomes container park logistics project

Source: Fully Loaded

Medlog will build a new container park project in the port.

Port of Brisbane is welcoming global logistics and supply chain operator Medlog to the port’s operations for a new container park project. The 30-year lease on a 7.3-hectare site on Fisherman Islands will help support Medlog’s expansion into Queensland, as the new facility is set to become one of the world’s most automated container parks. The park will incorporate high-end technology to deliver world-class standards in operation and safety. Port of Brisbane will help develop the site to Medlog’s specific requirements for the storage and operations of both empty and full containers, with the facility expected to be operational by the third quarter of 2022.  FULL STORY

H2U, Orica joins H2-Hub Gladstone project

Source: The Australian Pipeliner

The Queensland government has entered into a strategic partnership with Orica, and The Hydrogen Utility (H2U), to initiate the first phase of the H2-Hub Gladstone project.

The project, which has now been granted coordinated project status, involves building a multi-billion dollar complex in central Queensland that will produce green hydrogen and ammonia. Using solar and wind resources, the facility will operate on 100 per cent renewable energy. It is expected to have a capacity of up to 3 gigawatts of electrolysis and up to 5,000 tonnes of green ammonia production per day. The H2-Hub™ Gladstone project will establish central Queensland as a key source of renewable energy and facilitate economic growth within the region.  FULL STORY

Maritime Union Statement On Auckland Port Death

Source: Maritime Union of New Zealand

Maritime Union of New Zealand National Secretary Craig Harrison says the death of an Auckland port worker is a tragedy that will be devastating for family and workmates.

A worker died this morning in a workplace accident while working at the Ports of Auckland. It is understood he fell from a height while working on the Singaporean flagged container ship Capitaine Tasman. Details are yet to be confirmed. The worker was employed at the private stevedoring company Wallace Investments that operates at the Ports of Auckland.  FULL STORY

NZ could be last port of call as maritime border yet to reopen


While there were jubilant scenes in Australia as the first cruise liner since the Covid-19 pandemic began was welcomed into Sydney, New Zealand’s industry may have to wait several more months before it can join the party.

It’s been two years since the last cruise ship arrived into New Zealand, and operators say the delay could end up costing the economy hundreds of millions of dollars. The industry was making more than $500 million every year before it was brought to a sudden halt. Closed borders have meant nearly 200 port calls have already been scuppered this cruise season.  FULL STORY

Cruising for adventure: travellers can’t wait to return to sea after forced hiatus

Source: Caitlin Zerafa (Sunshine Coast News)

It’s a return to cruising, but not as you know it.

After a two-year hiatus, Australia’s ban on cruising was lifted on April 17 with cruise companies and keen travellers welcoming the news. Sunshine Coast travel agencies and international cruise companies have already reported strong bookings for 2022, with many voyages already booked out until 2023. Aiming to keep the industry smooth sailing, cruise companies have enforced new safety measures including testing and vaccination requirements. Guests can expect once popular buffet meals to be replaced with table service and masks are a must on your ‘what to bring list’.  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.