14 January, 2022

Australian Newsletter - Issue 712

2021 was a Year of “Ressurection” for many vessels deemed obsolete just a couple of years back
Source: Nikos Roussanoglou (Hellenic Shipping News Worldwide)

Vessels classes deemed out of favour and obsolete a few years back, made their glorious return during 2021, riding the wave of favourable market conditions, both in the dry bulk and the container segments.

In its latest weekly report, shipbroker Intermodal noted that “back in early June 2021, the weekly brokers’ insight ended with the well-known quote “A rising tide lifts all boats.” Today, comparing the pre COVID times with how things have turned on dry and container during the pandemic it is interesting to see how the sizes deemed “obsolete” or “outdated” by most of us have performed and how investing in shipping can be more basic some times than we tend to think”.  FULL STORY

Tanker Market Sails into 2022 Headwinds
Source: Lloyd’s Register

The swift reintroduction of international travel bans to stem the spread of the Omicron variant of COVID-19 has derailed the already faltering turnaround in rates and earnings for the global tanker market.

In November it looked like a cold winter and rising international air travel in the New Year would lead a long-anticipated recovery. Now, a new coronavirus variant that first emerged in South Africa in the final weeks of 2021 injects fresh doubt. Eleven of the world’s largest listed tanker companies reported collective losses exceeding $400m over the July-through-September period, after spot rates averaged the lowest in nearly three decades. Total losses for the first nine months of 2021 surpassed $1bn.  FULL STORY

Windward snd Sea/ Team Up to Launch New Maritime Solution
Source: Ship-technology.com

The solution will help in streamlining compliance and due diligence procedures.

Israel-based Windward has teamed up with Sea/, which claims to be the world’s first end-to-end digital shipping platform, to provide a new maritime solution. This new solution will help streamline compliance and due diligence procedures, thereby enabling clients to improve efficiency in chartering discussions. The alliance will provide an option for customers of Sea/ to assess a ship’s risk score within the Sea/trade platform. As all the required information on vessel risk will be accessible through one platform, clients can save time by opting for ships that fulfil their precise sanctions requirements.  FULL STORY 

Shipping should Expand its Collaboration Network for R&D
Source: Paul Bartlett (Seatrade Maritime News)

Knut Ørbeck-Nilssen, head of DNV Maritime, believes that shipping should look beyond traditional circles and extend its collaboration on R&D and pilot projects to new partners in other industrial sectors as well as academia.

Speaking to Seatrade Maritime News after the classification society staged an online conference addressing the issue ‘Fuel of the Future’ earlier this week, Ørbeck-Nilssen expressed his disappointment at delay to the IMO’s $5bn R&D fund which would help in new collaborative projects. However, he noted the challenges faced by the IMO as the UN agency aims for a consensus between 175 member nations, many with diverse interests.  FULL STORY

Shipping Market Outlook 2022 Container Vs Dry Bulk
Source: IHS Markit

The dry bulk and container market balance is expected to remain stable in 2022, while freight rates may face correction when vaccines reduce pandemic impacts.

We believe the strength in global containerized trade has had a profound impact on the geared dry bulk freight rates and trade pattern. General cargo (breakbulk) vessels that have shared similar terminal and cargo with geared bulkers (Supramax and Handysize) have shifted to the container-linked market because of extremely high freight rates for container ships this year; container cargo has been spilling over to general cargo ship (breakbulk/MPV/HL) and then minor bulk cargo usually carried by container or general cargo vessels have been shifted to geared bulkers.  FULL STORY

How we can Shape The Future of Shipping, Today
Source: Sjoerd de Jager and Adina Fenton (Windward)

During last year’s COP26 talks in Glasgow, a maritime-focused side event was held , entitled “Shaping the Future of Shipping.” While certain positives did come out of the gathering, it is difficult not to conclude that an opportunity was missed.

On the positive side, it was pleasing to see that the shipping industry has now agreed to follow the rest of the world in the ambition to achieve net zero emissions by 2050, aligning with United Nations goals. It was also heartening to observe a consensus being reached on the introduction of a carbon levy, something the industry has been talking about for quite a while, which the majority of parties have now rallied behind.  FULL STORY

Australia-First Grain Ship to Test Biofuel's Economic and Green Credentials
Source: Angus Mackintosh (ABC Rural)

The country's first grain ship powered by biofuel is set to leave port on Sunday, only the second time the renewable fuel alternative has been used in an Australian export ship.

Edwine Oldendorff is carrying 30,000 tonnes of malting barley from Albany in WA for Vietnam in a trial commissioned by grain handling cooperative CBH. "We'll be measuring carbon emissions during this trip. We're targeting a 15 per cent reduction," CBH chief trading officer Jason Craig said. The ship was narrowly beaten to the Australia-first milestone by a biofuel-run ship that left Gladstone in December. Ironically that ship, which reduced its emissions by 9 per cent, was carrying 160,000 tonnes of coal to India for steel manufacturing.  FULL STORY

Iron Ore Exports Finished Last Year Strong According to The Pilbara Ports Authority
Source: Rajan Dhall (Kitco)

Pilbara Ports Authority (PPA) had a good end to 2021. In December a total throughput of 68.5 million tonnes (Mt) represented a 6 per cent increase compared to December 2020.

The key area of Port Hedland area achieved a 9 per cent increase on total throughput for December 2021 compared to December 2020, with iron ore making up more than 98 per cent of total exports for the month. Port Hedland achieved a monthly throughput of 51.6Mt, of which 50.8Mt was iron ore exports. The port’s imports totalled 210,000 tonnes, an increase of 28 per cent compared to December 2020. The Port of Dampier delivered a total throughput of 15.9Mt, a 3 per cent decrease from the corresponding month in 2020. Imports through Dampier totalled 69,000 tonnes, a decrease of 18 per cent from December 2020.  FULL STORY

CBH Grain Receivals Hit 21m Tonnes
Source: CBH Group

DELIVERIES from the record-breaking Western Australian crop have slowed in the past week, and intake has hit 21 million tonnes (Mt), according to CBH Groups final report for 2021-22 harvest.

While many growers have now finished harvest and more sites have closed for the season, CBH Group acting chief operations officer Mick Daw said there was still more grain still to be delivered, especially in the Albany Zone. “We have faced many challenges this year from natural disasters, to labour and skill shortages, COVID-19 related restrictions and everything else in between.”  FULL STORY

Omicron Changes Container Chain Game: CTAA
Source: Fullyloaded.com.au

Variant adds to pressure into new year as infections lead to staff shortages.

Hopes that a new year would provide a timely lessening of the enormous strain on the container transport and logistics chain have been dashed as the Omicron Covid variant cuts a swathe through the sector. Practices and protocols that helped container transport operators keep international container supply chains functioning and their staff and customers safe have, in many cases, been overwhelmed and no part of the chain is unaffected, Container Transport Alliance Australia (CTAA) has noted.  FULL STORY

Gladstone LNG Exports Excel in 2021
Source: Sanja Pekic (Offshore Energy)

Despite the drop in December, LNG exports from the three LNG export facilities off Gladstone Port hit a record high in 2021 with 23.28 million metric tonnes of the chilled fuel.

Shipping data from the Gladstone Ports Corporation shows that the LNG exports finished with 4 per cent over the previous record high. Specifically, LNG was exported from the three liquefaction plants located on Curtis Island offshore Gladstone. The three LNG export projects, each with two liquefaction trains, are: Australia Pacific LNG (ConocoPhillips) with 9 million mt/year nameplate capacity; Gladstone LNG (Santos) with 7.8 million mt/year; Queensland Curtis LNG (Shell) with 8.5 million mt/year.  FULL STORY

Graincorp's Weekly Update Records Continued Deliveries
Source: Billy Jupp (Queensland Country Life)

AS a prolonged harvest season begins to wind down, deliveries continue to flow into GrainCorp sites across the eastern states.

More than 297,000 tonnes were delivered to receivals in the past week, despite wet weather slowing down growers across NSW and in northern Victoria. NSW accounted for the majority of deliveries, with 230,920 tonnes recorded in the past week, taking the state's total for the season to more than 7.4 million tonnes. Victoria's Wimmera and North East region's accounted for the majority of the state's deliveries in the past week, overcoming wet weather to deliver 57,910 tonnes, bringing the state's tally to more than 3.5 million tonnes for the season.  FULL STORY

'Thumping' Vessel Being Swapped for a Quieter One After Noise Complaints
Source: Riley Kennedy (Otago Daily Times)

Port Otago hopes there will be fewer sleepless nights in Port Chalmers after finding a solution to a long-running noise problem.

International shipping company Maersk has pulled its unsilenced container ship Monte Rosa off its New Zealand network. The ship, which arrived at Port Otago for the final time yesterday morning, was responsible for multiple noise complaints from the Port Chalmers community, some describing the noise it made as a "thumping sound". It was the only ship on Maersk's Southern Star route to not be fitted with a silencing generator.  FULL STORY

No Cruises but Passenger Ship Returns to Tauranga
Source: Sunlive.co.nz

Passenger vessels arriving at Mount Maunganui and Tauranga have become a rarity in the post-pandemic era but one such ship will be hitching up in the Bay of Plenty this week.

The island escape superyacht is due to arrive at 7am Thursday from Auckland, a first stop on a New Zealand tour that takes in Gisborne, Napier and Wellington as part of its Auckland to Nelson summer voyage. The vessel will not be berthing alongside the port of Tauranga, instead remaining in the harbour, as it embarks on its maiden voyage. “The crew are very excited and very busy getting the ship ready for passengers,” says island escapes sales coordinator Nikita Smith.  FULL STORY

Coming Home: Scenic to Cruise in Australian Waters for The First Time
Source: Tallis Boerne Marcus (cruisepassenger.com.au)

Luxury cruise and tour company Scenic has announced the maiden voyage of its latest discovery yacht in Australia – a momentous event for an Australian line which has sailed the world’s oceans and rivers for over three decades but not had a ship at home.

Scenic is well established as one of Europe and Asia’s leading river cruise companies, and the advent of the Scenic Eclipse Discovery Yacht has also marked a major move into luxury adventure and polar cruising.  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.