13 May, 2022

Australian Newsletter - Issue 729

Russia’s Isolation Deepens as Shipping Lines Make Final Port Calls
Source: Greg Miller (Freight Waves)
Shipping lines wind down remaining services to Russia’s European ports.
Russia’s ocean container imports continue to collapse as shipping lines wind down the last remnants of their services to the country’s ports. Russia — now effectively a pariah within Western logistics circles — still has cargo import options. Yet the loss of virtually all of its ocean shipping links makes obtaining consumer goods and components much more difficult. Elvira Nabiullina, Russia’s Central Bank chairwoman, recently warned that the range of consumer goods available in her country is already shrinking and Russian companies needing foreign components are facing “serious problems.”  FULL STORY

International Chamber of Shipping and Suez Canal Authority Sign Landmark Agreement to Enhance Cooperation
Source: International Chamber of Shipping
ISMAILIA, EGYPT, 11 May 2022 – The International Chamber of Shipping (ICS) and Egypt’s Suez Canal Authority (SCA) have signed a Memorandum of Understanding (MOU) covering key issues impacting international ship owners and operations of the Suez Canal.
The yearlong commitment, signed during a meeting at the SCA head office, will increase information sharing and negotiations on the movement of global trade through the Canal. It will open communication on long-term strategies for toll pricing, environmental protection, and decarbonisation.  FULL STORY

Lock in Shipping Prices Now to Avoid Peak Season Disappointment
Source: Wendy Larter (Ai Group)
Businesses are being urged to lock in fixed rates and space on container ships as world events continue to cause havoc with international freight.  
Establishing and honouring agreements with freight providers – whether that’s the carrier itself or through a forwarder — is the safest way to ensure containers get on to ships, Tom Holyman, General Manager Ocean Freight, Australia and New Zealand, Toll Group, told those who attended our recent webinar, World Freight and Logistics – the impacts on your business. “That means you’ve entered into a contract with fixed rates and generally with fixed-space commitments,” Mr Holyman said.  FULL STORY

Autonomous Docking - The Forerunner to Autonomous Shipping
Source: The Maritime Executive
The maritime sector is moving rapidly toward autonomous shipping due to the safety, efficiency, and environmental gains that autonomy delivers.
An Australian marine technology company, MAID (Marine Autonomous Intelligent Docking), has developed and patented intellectual property ("MAID IP") on systems and methods that enable fully autonomous docking and positioning of marine vessels ("MAID Technology"), an integral requirement and arguably, the most important foundation for enabling autonomous ships.  Globally, it is reported there are approximately 3,000 marine collisions each year, costing companies upwards of $20bn.  FULL STORY

Platform Identifying Global Maritime Corruption Risks Launched
Source: Marcus Hand (Seatrade Maritime News)
The Maritime Anti-Corruption Network (MACN) has launched a new platform to enable parties to identify risks in different ports around the world.
MACN’s Global Port Integrity Platform (GPLP) uses 50,000 incident reports since 2011 and vetted external data sources to provide users comparative risk profiles in terms of corruption. The organisation sees it as “gamechanger” as currently there is no standard for comparing integrity risks at different ports. The platform was made available to MACN members on 27 April.  FULL STORY

Euronav Says Tanker Rate Uplift Continues to Have Momentum
Source: Euronav
Euronav NV reported its non-audited financial results today for the first quarter ended 31 March 2022.
Hugo De Stoop, CEO of Euronav said: “The conflict in Ukraine has driven considerable dislocation in tanker market freight patterns as sanctions and so-called self-sanctioning by market participants has driven ton-mile growth. The uplift to freight rates continues to have momentum as oil supplies have increased driven by higher prices, OPEC+ production rising and strategic reserve releases. Medium term industry fundamentals remain constructive with orderbook ratios at a 24 year low and no new VLCC orders for 9 months.  FULL STORY

Allianz Highlights Burning Issue of Cargo Fires
Source: Marcus Hand (Seatrade Maritime News)
Insurer Allianz’s annual review of safety and shipping shows a record low in total losses, a higher number of incidents, and a focus on catastrophic cargo fires.
The good news is that total losses have continued a downward trend dropping to a low of 54 last year. “Total losses are at record lows – around 50 to 75 a year over the last four years compared with 200+ annually in the 1990s,” commented Captain Rahul Khanna, Global Head of Marine Risk Consulting, Allianz Global Corporate & Specialty (AGCS). The not so good news was there 3,000 shipping incidents globally in 2021, with the largest number – 668 – occurring in the British Isles.  FULL STORY

Iron Ore Price at Near 4-Month Low on Interest Rate, Demand Concerns
Source: Mining.com
The iron ore price dropped nearly 7% on Tuesday, fuelled by concerns about higher interest rates and still-stagnant demand from China.
The US Federal Reserve approved a half-a-point interest rate hike last week, and said it could stick to that for the next two to three meetings and then assess how the economy and inflation are responding before deciding whether further rises are needed. “That has led to a significant decline in commodities prices denominated in US dollars such as iron ore,” GF Futures analysts wrote in a note. Meanwhile, thin profit margins at steel producers and overall steel output controls in China have curbed production increases and dented demand for steelmaking ingredients, GF Futures said.  FULL STORY

Decarbonisation of The Australian Maritime Industry
Source: Maritime Industry Australia
The Australian maritime industry met at the inaugural Maritime Decarbonisation Summit to discuss the challenges and opportunities associated with decarbonising the sector.
Australia’s maritime industry carries 95%+ of our freight task and is made up of a diverse suite of vessels and operators. All are major contributors to the national economy, facilitators of domestic and international transport, trade, and tourism, and are critical to our engagement in the global economy. For Australia to meet its ‘Net Zero by 2050’ goal, there is an urgent need to accelerate the necessary work to transition our maritime industry to low and zero-carbon fuels, in line with other important industries and contributors to the Australian economy.   FULL STORY

Mcgowan Government Boosting Trade and Jobs With Port Projects
Source: Hon Rita Saffioti BBus MLA (Government of Western Australia)
The McGowan Labor Government is investing $507.9 million in the 2022-23 State Budget to upgrade port infrastructure across Western Australia to boost trade, create jobs and grow the economy.
This new funding takes investment in WA port authority projects over the next four years to $1.7 billion. More than $332 million is being invested towards the Mid West Ports Authority's Geraldton Port Maximisation Project over the next four years to increase capacity for Geraldton Port services. This includes infrastructure upgrades to increase trade capacity to maximise the existing port's footprint, facilitate a range of new projects and deliver value for the Mid-West region.  FULL STORY

Port Hedland Iron Ore Exports Slightly Higher During April
Source: Pilbara Ports Authority
Pilbara Ports Authority has delivered a total monthly throughput of 59.1 million tonnes (Mt) for April 2022.
This throughput was a three per cent decrease compared to April 2021. The Port of Port Hedland achieved a monthly throughput of 46.2Mt, of which 45.8Mt was iron ore exports. This was a one per cent increase to total throughput compared to April 2021. Imports through the Port of Port Hedland totalled 178,000 tonnes, a decrease of four per cent compared to April 2021. The Port of Dampier delivered a total throughput of 12.7Mt, a nine per cent decrease from April 2021.  FULL STORY

Queensland Signs Hydrogen Agreement with Massive European Port
Source: Queensland Government
Queensland is powering ahead in the new global renewable energy era, taking another significant step towards exporting green hydrogen to Europe’s largest port.
Minister for Energy, Renewables and Hydrogen Mick de Brenni said a Memorandum of Understanding has now been signed with the Port of Rotterdam in The Netherlands to collaborate on opportunities to develop a hydrogen export supply chain. “This landmark agreement is another ringing endorsement of Queensland’s quest to be a green hydrogen superpower,” he said. “The Port of Rotterdam has a target to import up to 20 million tonnes of hydrogen by 2050, starting with imports of ammonia in 2025.  FULL STORY

New Zealand Exporters Hit Hard by Global Shipping Problems
Source: Alexa Cook (Newshub.co.nz)
New Zealand exporters and shipping companies are being hit hard by a shortage of containers and backlogs of ships in global ports.
And with Shanghai's lockdown and the Ukraine conflict both having an impact, exporters say it's the worst it's been since the pandemic started. While it's all action at Wellington's port, exporters are struggling to get shipping containers for their products, and boats to transport it. "We've never had supply chain issues of this nature in the 11 years I've been at Sealord," Sealord CEO Doug Paulin told Newshub.  FULL STORY

At Last New Zealand Opens to Cruise
Source: Libby Shaw (Cruise Passenger)
Travellers wanting to cruise to New Zealand will soon be able to do so, with the New Zealand government announcing that the maritime border will reopen after July 31. 
The announcement has been welcomed by Cruise Lines International Association (CLIA) Australasia, whose Managing Director Joel Katz said: “Today’s announcement is a huge breakthrough for the many New Zealanders who depend on cruise tourism, including travel agents, tour operators, food and produce providers, port workers and many other industry suppliers.  FULL STORY

Cunard to Sail Over 110 International Voyages In 2023-2024
Source: Travel Week Group
Cunard is set to explore all corners of the world in 2023-2024 with over 110 international voyages.
Sailing on its iconic fleet between Oct. 23, 2023 and May 14, 2024, the voyages also include maiden sailings on Cunard’s new ship, Queen Anne. The four-ship fleet will call at 126 ports in 51 countries, with voyages ranging from two-night city breaks to a 108-night world voyage.  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.