15 October, 2021

Australian Newsletter - Issue 700

Dry Bulk Carriers In High Demand As Rates Keep Rallying
Source: Nikos Roussanoglou (Hellenic Shipping News Worldwide)
Demand for dry bulk tonnage has remained high in the S&P market. In its latest weekly report, shipbroker Allied Shipbroking said that “on the dry bulk side, interest for SnP transactions remained vivid for yet another week, with several units of different size classes changing hands. However, it is worth stating that a strong number of capes were reported as sold last week. The firm freight market and the robust sentiment amongst buyers led to a rise of deals in the segment as a whole. Given the persistent strong buying interest, it is of little surprise that second-hand asset prices have followed an upward trajectory since the beginning of the year.  FULL STORY

Green Hydrogen Fuels To Enable Up To 80 Per Cent Of Global Shipping Emission Cuts By 2050
Source: IRENA
Green hydrogen-based fuels set to be the backbone for the sector’s decarbonisation, IRENA says
Abu Dhabi, UAE, October 13, 2021 – A rapid replacement of fossil fuels with renewable fuels based on green hydrogen and advanced biofuels could enable to cut up to 80% of CO2 emissions attributed to international maritime shipping by mid-century, a new report by the International Renewable Energy Agency (IRENA) finds. Renewable fuels should contribute at least 70% of the sector’s energy mix in 2050, IRENA’s A Pathway to Decarbonise the Shipping Sector by 2050 shows, outlining a roadmap for the global shipping sector in line with the global 1.5°C climate goal.  FULL STORY

Sustainable Marine Fuels Should Meet Expansive Criteria
Source: Freightwaves
Big-name shipping companies, such as A.P. Moller – Maersk, are taking action to reduce emissions and transition to more sustainable fuels. But guidelines on what makes a marine fuel sustainable have yet to be established. The Sustainable Shipping Initiative (SSI) recently released a report on how to define sustainable marine fuel criteria, in partnership with Copenhagen Business School (CBS) Maritime. Marine fuels are currently considered based on availability, cost and technological feasibility, the report said. It said sustainability, including environmental, social and economic impacts, should be added to that list of considerations. The report stressed the importance of using a well-to-wake analysis of fuels to determine the emissions of each fuel throughout its life cycle.  FULL STORY 
Maritime Industry Making Empty Promises On Mental Health Support
Source: Mental Health Support Solutions
A clinical psychologist has challenged the maritime industry to stop making empty promises about helping to improve seafarers’ welfare and mental health. Occasions like World Mental Health Day (10 October) give shipping companies an excuse to promote themselves as caring employers that want the best for their crew members, according to Charles Watkins. However, the founder and managing director of Mental Health Support Solutions (MHSS) – which provides professional psychological guidance to the maritime sector – believes a “significant number” of businesses fail to act after publicly committing to aiding seafarers’ mental wellbeing.  FULL STORY

Sea Freight Costs May Have Peaked, But More Ships Are Needed To Bring Them Down
Source: David Claughton, Kellie Hollingworth and Kath Sullivan (ABC Rural)
The cost of sea freight has spiralled out of control during the pandemic, but there are some signs it may have hit its peak. Australia is an export nation so there is a lot riding on freight costs. Chief economist with the National Farmers Federation (NFF), Ash Salardini, said Australia already pays the highest cost for freight, and shipping lines may be colluding to keep prices high. "It costs the same to ship a container of grain from Canada to Indonesia as it costs to send one from South Australia, even through its 10,000kms shorter," said Ash Salardini   FULL STORY

Australia To Lead Asian Wheat Trade Flows In 2021/22 Amid Global Supply Tightness
Source: Takmila Shahid (S&P Global)
Australia is anticipating a second consecutive strong wheat export program in the 2021/22 (October-September) marketing year as other major origins grapple with government interventions and production cuts. The promising export outlook coincides with record high wheat prices, with the Australian Premium White wheat index reaching an all-time high of $332/mt FOB Kwinana Oct. 5. The country is forecasted to produce the second largest wheat crop on record at 32.6 million mt in 2021/22, slightly under the previous year's estimate of 33.3 million mt, while exports are pegged at 23 million mt, according to Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).  FULL STORY

Australia’s Coal Exports To ‘Halve By 2050’ If Climate Goals Are Met
Source: The Age
The nation’s lucrative coal exports are likely to be cut in half by mid-century if accelerating international climate efforts succeed in holding down global temperature rises to 1.5 degrees. Ahead of a major climate conference in Glasgow next month, world leaders are pressuring laggard governments to commit to bolder plans aligned with the Paris Agreement’s aim of capping global warming as close to 1.5 degrees above pre-Industrial Revolution levels as possible. The fate of coal, Australia’s second most valuable export, hangs in the balance.  FULL STORY

Europe’s Largest Port Wants Slice Of Queensland Hydrogen
Source: Pv-Magazine-Australia.com
Queensland could soon be exporting hydrogen to Europe’s largest port after the Palaszczuk Government agreed to terms of a memorandum of understanding with the Port of Rotterdam in the Netherlands. The Port of Rotterdam has an ambition to import up to 20 million tonnes of hydrogen by 2050, starting with imports of ammonia in 2025. The agreement would see Queensland and the Port of Rotterdam collaborate on opportunities to develop a hydrogen export supply chain between Queensland hydrogen producers and Rotterdam. Premier Annastacia Palaszczuk said after days of exciting hydrogen announcements, this agreement was another ringing endorsement of Queensland’s quest to be a renewable hydrogen super power.  FULL STORY

Lull Falls Over Australia’s Northern Cattle Export Trade
Source: James Nason (BeefCentral.com)
Lack of supply, high cattle prices and COVID disruptions in key markets have becalmed Australia’s northern cattle shipping trade since August. Export sources have been warning for some months that shipments were set to slow dramatically in the face of mounting headwinds, most notably the speed at which the Delta variant of COVID has swept through major cities in the key markets for northern cattle of Indonesia and Vietnam. Orders locked in before the Delta impact meant shipping activity to deliver those consignments continued through July and August, but much of the wind has been taken out of the trade’s sails since then, according to market feedback and shipping data.  FULL STORY

Desilting Solutions Proves Success At Townsville Port
Source: Eldin Ganic (DredgingToday.com)
Desilting Solutions has been commissioned to undertake desilting works in two vital areas of the Townsville Port – a major 360m long stormwater drainage culvert and targeted dredging within the port berthing pockets. Works started with the culvert desilting, which was affected by tidal inundation as well as very limited access. Prior to the works, the port excavated down to the culvert and cut an access opening through the crown of the culvert thereby allowing the dredge access. The dredge was lowered into the opening by crane and commenced desilting of a 600mm thick silt and gravel layer. Management of the slurry was undertaken on site by Desilting Solutions staff with the use of polymer dosing and GeoTubes.  FULL STORY

Strikes Continue At Fremantle Port After Wa Govt Failed To Show Up
Source: David Marin-Guzman (AFR.com)
The West Australian government urged the Fair Work Commission to end three months of strikes at Fremantle Port, but Ports Minister Rita Saffioti failed to attend a hearing. Ms Saffioti wrote to the Fair Work Commission to highlight the negative effect the industrial action is having on the economy and urge a resolution. But despite her request, the minister was absent before a commission hearing late Tuesday and did not provide evidence of economic damage. Given the MUA opposed ending the strike and Qube did not want to enter conciliation, the dispute was left unresolved.  FULL STORY

Two New Directors For Ports Of Auckland Board
Source: ShareChat.co.nz
Ports of Auckland’s board Chair Jan Dawson Wednesday announced the appointment of two new directors. “I am pleased to announce that two experienced directors, Geoff Plunket and Stephen Reindler, will join the Ports of Auckland Board”, said Ms Dawson. “They both bring very relevant skills to the board that complement the current directors and support our current focus areas.” “Stephen is currently a director of Z Energy and Steel and Tube and a previous director of Port of Napier, Meridian Energy and Worksafe NZ.” she said. Both new directors will formally start on November 1.  FULL STORY

Inter-Island Ferries ‘Most Likely’ Cause Of Harmful Gas Emissions, New Study Finds
Source: Chloe Ranford (RNZ.co.nz)
A sensor on Picton's foreshore picks up about the same amount of sulphur dioxide in the air as a sensor outside the Port of Tauranga. In fact, it often picks up more sulphur dioxide, a gas that occurs naturally in volcanoes. It also comes from burning coal or diesel. Port Marlborough exported about 770,000 tonnes of logs last year from Shakespeare Bay, near Picton. Last year, the Port of Tauranga exported 6.3 million tonnes of logs. In that sense, it's about eight times larger than Port Marlborough. So why the similar levels of the harmful gas? It is likely due to the thick clouds of white smoke blowing onto Picton from the inter-island ferries.  FULL STORY

$85 Million Expansion For Lyttelton Port Amid 'Booming' Local Economy
Source: Steven Walton (Stuff.co.nz)
Lyttelton Port in Christchurch is nearing completion of the first stage of an $85 million expansion, which is being built on land that did not exist a decade ago. The Eastern Development, which is due to be completed about mid-2023, is expanding the port’s total footprint and space by 16 hectares. The land being built on has been reclaimed over the past five years. A lot of the new land is made up of rubble from the Christchurch earthquakes.  FULL STORY

Pilot Training Requirements Reviewed After Ship Hits Seabed, Damages Tugs In Bluff Harbour
Source: Stuff.co.nz
South Port’s has reviewed its pilot training and proficiency requirements after a ship ran aground in the Bluff Harbour causing minor damage to the ship and two tug boats, a Transport Accident Investigation Commission report says. The report, released on Thursday, says on November 28, 2018, bulk carrier Alam Seri was entering Bluff Harbour in a strong south-easterly wind, under the conduct of a harbour pilot. The strength of the wind caused the ship to blow slightly off course, the report says. During a turn to port, the pilot made successive helm orders and ordered engine speed to be reduced to slow ahead.  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.