28 January, 2022

Australian Newsletter - Issue 714

Warning Shipping Delay Problems to Continue This Year
Source: Chris Morris (BBC.com)
Global supply chain disruption and shortages caused by the Covid pandemic are set to continue well into 2022, according to a report.
Digital supply chain experts project44 say average delays on shipping from China to Europe rose to 6 days in December, after falling for months. Delays on routes from China to the west coast of the US have also been increasing steadily since October. Congested ports and production delays have disrupted schedules for months. "Delays are likely to continue well into 2022," project44 said, "as Covid breakouts continue throughout supply chains and consumers continue to buy at a healthy rate."  FULL STORY

China lets in Most of The Australian Coal Stranded at its Ports
Source: Bloomberg.com
Most of the Australian coal used by steelmakers that was being held at Chinese ports in the wake of Beijing’s import ban has now been cleared, according to local research firm Fengkuang Coal Logistics, although there’s no sign that the halt on new shipments will be lifted.
Customs data for the final quarter of last year show 6.2 million tons of Australian coking coal were finally allowed in, along with another 5.5 million tons of thermal coal that was destined for power plants from China’s former trading partner for the fossil fuel. It’s unclear how much coal in total was stranded after Beijing halted Australian imports near the end of 2020 as political ties with Canberra soured.  FULL STORY

Companies are Showering Shipping Workers with Perks to try to get around The Labor Shortage
Source: Nicole Goodkind (Fortune.com)
Container shipping companies have had a banner year, collecting profits that industry experts call "surreal," at the same time as it's seeing a labor shortage caused by unhappy and underpaid workers. That threatens to further weaken the already precarious global supply chain—and throw those record profits into peril.
The solution appears to be lots of bonuses for the workers they do have. Prices on consumer goods have surged to 39-year highs amid the supply chain crisis that has kept many store shelves barren and kept industry in the U.S. from achieving efficient productivity levels. But shipping container companies aren’t feeling that burden, at least when it comes to their bank accounts.  FULL STORY 

Why Shipping Pure Hydrogen around the World Might already be Dead In The Water
Source: Leigh Collins (RechargeNews.com)
Physics and cost mean that ammonia is a far more economic option for long-distance seaborne transportation.
The world’s first shipment of liquid hydrogen — which left southern Australia on Monday on its way to Japan as part of a $350m international project — may have made headlines around the globe, but it might also prove to be a colossal waste of money. Putting aside the fact that the Hydrogen Energy Supply Chain (HESC) project is ruthlessly dirty — sourcing its H2 from unabated brown coal and using polluting diesel to power the Suiso Frontier vessel on its 20-day journey — the notion that any commercial operator would choose to export pure hydrogen by ship is looking increasingly unlikely.  FULL STORY

Methanol is Key Solution for Shipping Decarbonisation Today, Research Suggests
Source: Ajsa Habibic (Offshore-Energy.biz)
A new report addressing the reduction of emissions from the global maritime sector has verified the benefits of methanol as a marine fuel highlighting it as a key solution for decarbonisation.
The report, published by clean energy financial services firm Longspur Research, looks into potential solutions for decarbonisation in the shipping market worth $105 billion per year. According to the report, methanol’s benefits such as fungibility, availability, energy density and most importantly, the ability to significantly reduce emissions immediately put it in the spotlight of maritime decarbonisation.  FULL STORY

Queensland Pacific Metals Advancing Townsville Energy Chemicals Hub on Multiple Fronts
Source: Tharun George (ProactiveInvestors.com.au)
The TECH Project is envisaged to be a modern and sustainable producer of critical chemicals for the emerging lithium ion battery and electric vehicle sector.
Queensland Pacific Metals Ltd (ASX:QPM) is advancing the definitive feasibility study (DFS) for the Townsville Energy Chemicals Hub (TECH) Project in North Queensland, with a focus on value engineering, critical vendor engagement and process optimisation. The DFS, scheduled for mid-2022, is aimed at demonstrating robust financial returns and reducing the technical risk associated with the commercial scale-up of the DNi Process.  FULL STORY

Wind Turbines Welcomed into The Port of Cairns
Source: Statements.qld.gov.au
The first massive wind turbine blades for the $373 million Kaban Green Power Hub have arrived at the Port of Cairns.
The 79-metre, 32-tonne blades are part of the wind farm construction that is supporting more than 250 jobs in far north Queensland and will deliver enough renewable energy to power 96,000 Queensland homes. Deputy Premier Steven Miles said the wind farm construction came on the back of a $40 million investment by Queensland’s publicly-owned Powerlink to upgrade the transmission line between Cairns and Townsville from 132kV to 275kV.  FULL STORY

Port of Townsville Widening Shipping Channel with Australia's Largest Backhoe Dredge
Source: Melody Labinsky (FarmOnline.com.au)
Australia's largest backhoe dredge has travelled north to move a whopping 3.2 million cubic metres of material as part of the Port of Townsville's channel upgrade.
Dredging started this week on the $232 million project, which will allow ships up to 300 metres long to safely access the port. The shipping channel will nearly double in width, from 92m to 180m at the port end, and will taper to 120m at the seaward end. Known as the Woomera, the backhoe dredge Hall Contracting will use to conduct the works is a sight to behold.  FULL STORY

Port of Newcastle Diversification Bearing Fruit
Source: FullyLoaded.com.au
The Port of Newcastle’s bid to spread its service option is showing promise, according to its latest volumes report. Last year’s figures show wheat exports surging and records tumbling, it notes.
New figures released today reveal that Port of Newcastle’s import/export volume performance of 2020 strengthened in 2021, despite global supply chain challenges and the continuing impacts of the pandemic. Acting CEO Nick Livesey spruiked the port as facilitating some $37 billion to the national economy last year. "In 2021, Port of Newcastle handled 2,266 ship movements and 166.1 million tonnes of cargo including coal, dry bulk, bulk liquids, roll-on roll-off cargo, general and project cargoes and containers," Livesey said.  FULL STORY

Oakajee Port and Rail is Back from The Abyss with Fortescue Steering The Ship
Source: Josh Chiat (StockHead.com.au)
Remember the Oakajee Port and Rail project? The multi-billion dollar pipe dream 23km north of the coastal WA town of Geraldton is back on the agenda after Andrew Forrest’s Fortescue Metals Group (ASX:FMG) announced a deal to study the development with Chinese steel giant Sinosteel of its Midwest Magnetite Project.
Under the MoU announced to the ASX after Friday’s close, FMG will undertake a rapid 12-month assessment of the project with the option to acquire up to 50% of the Midwest Magnetite Project and up to 100% of the port and rail infrastructure.  FULL STORY

Australia to Spend $580m on PNG Port Upgrades
Source: Roya Ghodsi (AustralianDefence.com.au)
Australia will provide a $580 million loan and grant finance package for upgrades and refurbishments to several priority ports in Papua New Guinea.
Prime Minister Scott Morrison and PNG Prime Minister James Marape met virtually on 21 January to sign the agreements in what PM Morrison says is an investment to improve trade and connectivity in the region and support economic recovery from COVID-19. “It builds on Australia’s record of supporting critical infrastructure in Papua New Guinea and the Pacific region," PM Morrison added. Australia’s investment will help Papua New Guinea undertake urgent repairs and upgrades to key ports, some of which are more than 70 years old.  FULL STORY

Insiders Who Bought This Year Lost Nz$38k as Port of Tauranga Limited (NZSE: POT) Sheds Nz$197m in Value
Source: SimplyWall.st
Insiders who acquired NZ$259k worth of Port of Tauranga Limited's (NZSE:POT) stock at an average price of NZ$7.39 in the past 12 months may be dismayed by the recent 4.4% price decline. 
Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth NZ$220k, which is not what they expected. Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.  FULL STORY

Council, Port Help Tongan Families in Otago Ship Food Supplies
Source: RNZ.co.nz
The Dunedin City Council and Port Otago have stepped up to ensure the city's Tongan community can send supplies to families impacted by this month's volcanic eruption and tsunami.
Supplies and donations have been flooding into the Dunedin Tongan Community group for loved ones in Tonga since the eruption of Hunga Tonga-Hunga Ha'apai and the tsunami which followed on 15 January. But there were questions on how the goods would be transported after the group was quoted more than $10,000 for a container. Dunedin Tongan Community co-ordinator Finau Taungapeau said the Dunedin City Council and Port Otago had today offered a 40-foot container to transport the goods.  FULL STORY

Indonesia Takes New Look at 30-Year-Old Plan for Batam Container Port
Source: Martina Li (TheLoadStar.com)
The Indonesian government is again revisiting a plan for a container terminal on Batam island, just 40km south of Singapore, the world’s second-busiest container port.
During a visit to the proposed location, in the Batam Free Trade Zone and Free Port in Tanjungpinggir, Sekupang Sub-district on Monday, co-ordinating minister for maritime affairs and investment Luhut Binsar Pandjaitan said the port could help save logistics costs, which are higher in Indonesia than in neighbouring countries. Over decades, there has been talk of developing another container terminal in Batam, which already has one in the Batu Ampar area, but the plans never materialised due to the lack of business support.  FULL STORY

Eastern Pacific Shipping Officially Bans Coal Cargoes
Source: ShipAndBunker.com
Ship management firm Eastern Pacific Shipping has announced it is refusing to carry coal cargoes on its bulkers on environmental grounds.
The firm announced its new ‘no coal cargo policy’ in its ESG report for 2022 on Tuesday. The company’s bulkers have not carried any coal since April 2020. “By officially implementing a No Coal Cargo Policy, EPS hopes to play a small r4ole in making the commodity no longer economically viable, therefore increasing the demand for greener options,” the company said in the report. “EPS’ No Coal Cargo Policy also aims to be a message to the maritime industry that decarbonisation isn’t exclusive to how we move ships – what we move also matters.”  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.