News & Media

04 October, 2019

Australian Newsletter - Issue 594

BHP WARNS SHIPPING OF LOOMING CARBON LEVY
Source: Sam Chambers (Splash 24/7)
One of the world’s largest shippers has warned shipping it ought to prepare for a carbon levy. Mining giant BHP is preparing for greater shipping environmental clampdowns once the global sulphur cap is out the way next year. In a recent interview with The Australian newspaper, BHP’s maritime vice president Rashpal Bhatti said, “There may well be a carbon levy associated with bunkers from the IMO. If that is the case it will be a significant driver to bring down emissions from any fuel that’s used. And our competitors will obviously have to think about that too.” BHP made headlines this July when issuing a landmark tender calling for LNG-fuelled newbuilds to transport approximately 10% of its Australian iron ore exports from 2021.  FULL STORY

AUTONOMOUS TECHNOLOGY TAKING TO THE SEAS
Source: AMSA
Autonomous and remotely-operated vessel regulation is several steps closer to becoming a reality following last week’s Australian Autonomous Vessel Forum in Canberra. Hosted by AMSA, in partnership with the Trusted Autonomous Systems Defence Cooperative Research Centre (TAS DCRC), the two-day event saw 135 delegates from the technology, design, science, law and defence sectors, sit shoulder-to-shoulder with government regulators at the first event of its kind in Australia. Captain Marko Rahikainen from the Finnish Transport and Communication Agency travelled from Helsinki to deliver the keynote address. To set the scene for the forum, Captain Rahikainen highlighted the vast steps Finland is taking to deliver a wholly sustainable transport system by 2030, with new technologies and automation central to its implementation.  FULL STORY

HIGHER AUSTRALIAN IRON ORE EXPORTS MAY CURB PRICE RISE
Source: Argus Media
Australia's mainstream iron ore shipments to China increased by 2mn deadweight tonnage (dwt) last week, which may boost arrivals at Chinese ports over the next few days and likely cap widely expected post-holiday price gains. Shipments by Rio Tinto, BHP, Fortescue and Roy Hill to China were 14.5mn dwt in the week to 28 September, up from 12.52mn dwt in the week ended 21 September. But total shipments by these producers in the week to 28 September were 16.49mn dwt, down slightly from 16.83mn dwt in the same comparison. Rio Tinto's iron ore shipments to China slipped by 3.7pc to 4.93mn dwt. An analyst report from Morgan Stanley had forecast a drop in Rio Tinto's late-September exports because of an overhaul of its railway systems in the Pilbara mining region. The fall in Rio Tinto's exports was not significant and compensated by higher shipments from BHP and Fortescue.  FULL STORY

BHP PARTNERS WITH KLAVENESS ON SHIPPING AND LOGISTICS PLATFORMS
Source: Andy Ewe (Australian Mining)
BHP’s Maritime and Supply Chain Excellence team and Klaveness Digital have partnered to develop CargoValue, a shipping and logistics platform. The platform will improve the way the industry collaborates and shares scheduling and vessel information
with access the same shipping information in real-time improving calculations on inventory and production. A global steel producer trailed the CargoValue solution as first proof of concept. The solution provided the steel producer with actionable insight into their raw material flow, with real-time updates on unexpected deviations to the schedule, allowing them to better forecast, manage and plan. FULL STORY

AUSTRALIA LOWERS FORECASTS FOR THERMAL COAL PRICES ON WEAK DEMAND
Source: Nathan Richardson (S&P Global)
Australia's Department of Industry has revised its forecasts for thermal coal prices as the market experiences weak demand for the fuel, it said Monday in its Resources and Energy Quarterly. In the latest report, the Canberra-based unit cut its forecast from the June edition for the average FOB Newcastle 6,000 kcal/ NAR thermal coal spot price for 2020 by 7% to $68/mt. The 2019 price was also dropped by 7%, to $77/mt, while the forecast for 2021 was lifted by 3% to $69/mt. "In the first half of 2019, imports from Japan, South Korea and the EU were all lower on a year-on-year basis." it said.  FULL STORY

'BAD FOR THE ECONOMY': ACCC WARNING OVER COAL PORT MOVE
Source: Mathew Dunckley (Sydney Morning Herald)
The competition regulator and the mining industry have sounded the alarm over the decision not to extend price controls over the operator of the nation's biggest coal export port. The private Port of Newcastle has spent several years fighting the imposition of controls that would give users of the port avenues of appeal over issues such as substantial price increases. Late last week, Treasurer Josh Frydenberg declined to make a call on a National Competition Council recommendation that price controls on the port be revoked. Mr Frydenberg's move effectively ratifies the NCC's position, prompting Australian Competition and Consumer Commission chairman Rod Sims to warn the port could become an unconstrained monopoly.  FULL STORY

FLINDERS PORT TAKES SOUTH AUSTRALIA’S MINERALS AND METALS EXPORT ‘VERY SERIOUSLY’
Source: Australian Mining
2019 has been a busy year for the Flinders Port Holdings Group.
The company, which owns and operates seven of South Australia’s commercial ports, is expanding and diversifying its operations, while also completing a number of major upgrades to its assets. This activity reflects Flinders Port Holdings’ role in underpinning the state’s export infrastructure. This year, the group’s operations are projected to facilitate $25 billion in trade, with the mining sector making up a significant portion of this figure. One of the current key priorities for the group is delivering enhanced supply chain integration to its customers to make the export and import process from end-to-end smoother by focusing heavily on simplifying the process.  FULL STORY

PORT HEDLAND’S IRON ORE EXPORT CAPACITY RECEIVES ‘POTENTIAL’ BOOST
Source: Hellenic Shipping News
One of the world’s largest ports for iron ore exports, Port Hedland, has had its potential shipping capacity increased by 40 Mt/y. The additional capacity, a result of Western Australia Government and industry investment at the port, will see Port Hedland’s potential shipping capacity go from 577 Mt/y to 617 Mt/y, a 6.9% increase. The increased capacity will allow all port users more capacity above their allocated tonnages by accessing D class shipping opportunities under the Port Hedland Vessel Movement Protocols. Investments at the port to facilitate this new capacity modelling by the Pilbara Ports Authority included capital dredging, innovative marine technology and other port efficiencies, according to the statement.  FULL STORY

INCREASED MAXIMUM DRAUGHT FOR BULK CARRIERS AND TANKERS TRANSITING TORRES STRAIT
Source: AMSA
Bulk carriers and tankers can now pass through Torres Strait with a maximum draught up to 12.5 metres, using AMSA’s Under Keel Clearance Management (UKCM) system. The change to maximum draught has come about following detailed trials carried out at sea in collaboration with the UKCM system vendor, OMC International, and Rio Tinto. The trials showed that at certain times of the year, tidal conditions allow for some deeper-draught vessels with a full-form hull, to safely transit through Torres Strait, in full compliance with the requirements specified in Marine order 54 (Coastal pilotage) 2014 (MO54).  FULL STORY

SEABOURNE TO RETURN TO AUSTRALIA AND NEW ZEALAND
Source: Juliia Toure (Rus Tourism News)
Seabourn will return to Australia and New Zealand in December 2019, including a number of new ports around the country. In total, Seabourn Encore and Seabourn Sojourn will make 40 calls across Australia this summer season, along with a number of port calls across the island nation of New Zealand. From December 2019 to April 2020, Seabourn’s two ultra-luxury ships will visit boutique ports, sheltered coves and hidden harbours that larger cruise ships often cannot access as well as favourite marquee ports, with a variety of onboard offerings and on-shore experiences that cater to every type of traveller.  FULL STORY

YEAR OF TRANSFORMATION FOR PORTS OF AUCKLAND
Source: Dredging Today
New Zealand’s Ports of Auckland (POAL) today released its results for the 2018/19 financial year, saying that the container volumes are down 3.5% to 939,680 TEU compared to 973,722 TEU for the pcp. Group Revenue rose slightly to $248.1m from $243.2m in the previous corresponding period (pcp) and the net profit after tax was $53.9m million compared to $76.8m for the pcp. “Significant progress has been made on the automation of our container terminal. Most infrastructure work is complete, and we are now in the final phase of testing,” said POAL. “We have received consent to dispose of dredged material at sea, in one of five official New Zealand disposal sites. We are preparing a consent application to deepen our shipping channel and are aiming to lodge the application later in 2019.”  FULL STORY

AUCKLAND PORT MOVE: STUDY FAVOURS $10B PLAN TO SHIFT HUB TO NORTHPORT AT MARSDEN POINT
Source: Todd Niall (Stuff.co.nz)
Auckland's port would close in a shift to Northport at Marsden Point, costing $10 billion, under the preferred option of a Government-backed working party. New Zealand's most ambitious infrastructure project ever proposed could be well-advanced within 15 years, with additional rail-tracking worth $1.6 billion, a freight hub in northwest Auckland, and a major expansion of Northport. The Government has not yet taken a position on the plan, which will be refined in a final report going to Cabinet next month.  FULL STORY

LYTTELTON PORT COMPANY PROFIT UP, BUT DIVIDEND TO CITY COUNCIL DOWN
Source: Liv McDonald (stuff.co.nz)
Record container movements have helped boost Lyttelton Port's profit, but expenses including its new cruise terminal mean a smaller dividend for ratepayers. The port company, wholly owned by the Christchurch City Council, made a tax-paid profit of $42.1 million in the 2018-19 financial year, up from $12.2m the previous year, its annual report says. While the port's operating revenue rose from $122m to $129m, the biggest cause of the increase was $37.6m in legal settlement payouts. Details of the multiple settlements remain confidential.  FULL STORY

PORT REPAIRS ALMOST COMPLETE IN READINESS FOR RETURN OF CRUISE SHIPS
Source: Samesh Mohanlall (Stuff.co.nz)
Repairs and upgrades to PrimePort Timaru's No.1 wharf are almost complete and could accommodate cruise ships as early as next month, its chief executive says. The last time a cruise ship visited the wharf was in February 2017 when the Seabourn Encore collided with the Milburn Carrier II, causing damage to the hull of the cement carrier, after the ship broke its moorings. "Given the huge effort and focus of the team on No.1 wharf, we will be ready to receive cruise ships from November this year," chief executive Phil Melhopt said. "The new shore bollards cost approximately $800k.  FULL STORY

NYK SUCCESSFULLY TRIALS WHOLLY AUTONOMOUS OCEAN-GOING CAR CARRIER
Source: Jim Wilson (Freight Waves)
Japanese shipping giant NYK has taken a big step into the future as it has revealed the successful trial of a “Maritime Autonomous Surface Ship”, which it claims as a world-first. The trial was carried out in two parts over five days from September 14 to September 16 inclusive between the port of Xinsha, China and the port of Nagoya, Japan. The second trial took place between the Japanese ports of Nagoya and Yokohama for a six hour period just before midnight on September 17 to the early morning of September 20. Crew were aboard during the trial and performed “typical duties,” the company said.  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