News & Media

01 November, 2019

Australian Newsletter - Issue 598

SOHMEN-PAO URGES SHIPPING TO COME UP WITH ITS OWN CARBON LEVY
Source: Sam Chambers (Splash 24/7)
Shipping must urgently draft its own carbon levy, one of the world’s top shipowners has said today. Speaking at the Global Maritime Forum’s annual summit in Singapore where decarbonisation talk has topped the agenda over the past couple of days, Andreas Sohmen-Pao, chairman of BW Group, said: “To meet international shipping’s decarbonisation challenge, the maritime industry needs a carbon levy, it is coming, and we should shape it.” The BW boss continued: “We have an opportunity to shape a new maritime future, create a new business opportunity and drive innovation. A maritime green fund could accelerate decarbonisation in shipping, support scaling and infrastructure to deliver new fuels, while taking into consideration the impact on trade and developing states.”  FULL STORY

AUSTRALIA’S VIVA ENERGY LAUNCHES NEW LOW SULPHUR FUEL FOR IMO 2020
Source: World Maritime News
Viva Energy Australia has launched its new very low sulphur fuel oil (VLSFO), developed to meet the International Maritime Organisation’s (IMO) new regulations on fuel sulphur content. Manufactured locally at Viva Energy’s Geelong Refinery, the new VLSFO is the first low sulphur fuel oil to be produced in Australasia. The fuel, which has been in development for over 12 months, has been “successfully trailed by a number of customers” and will be available in Melbourne and Geelong from October 2019, according to the company.  FULL STORY

DARWIN STUDYING NEW CRUISE BERTH
Source: Cruise Industry News
“Darwin Port is currently undertaking a study regarding the potential expansion of the cruise ship facility at Fort Hill Wharf to be able to accommodate the larger ships that are coming on line,” “If we proceed this will also allow for multiple vessel calls for smaller ships.” said Peter Dummett, general manager port development. The Northern Territory Government has recently formed a new Cruise Ship Activation Group to arrange entertainment and other activities throughout Darwin on cruise call days. “Markets are also organized in the nearby Darwin Waterfront Precinct which arranges entertainment activities. These are all within walking distance from the terminal,” Dummett said.  FULL STORY

BROOKFIELD SET TO SAIL FROM $2B-PLUS QLD COAL PORT
Source: Sarah Thompson, Anthony Macdonald and Tim Boyd (AFR)
Canadian investment heavyweight Brookfield is seeking a buyer for its big coal port in Queensland. Street Talk can reveal Brookfield has hired investment bank Bank of America to auction the Dalrymple Bay Coal Terminal, which is one of the largest coal exporting ports in the world. It is understood Brookfield and Bank of America have booked meetings with potential buyers for coming weeks ahead of a formal auction. The port has a $2.4 billion regulated asset base, as deemed by the Queensland Competition Authority, and Brookfield is expected to seek more than that amount given appetite for similar assets in Australia and offshore.  FULL STORY

PORT OF NEWCASTLE WELCOMES RETURN TO NORMAL COMMERCIAL RELATIONSHIPS WITH CUSTOMERS
Source: Hellenic Shipping News
Port of Newcastle welcomes the Australian Competition Tribunal’s (ACT) decision today about navigation and wharf pricing. The Tribunal noted that prices should “provide an incentive to a service provider to efficiently (and in a timely fashion) invest in maintaining and improving infrastructure necessary to provide facilities at the Port”. “Prices that are too low can lead to non-investment or delayed investment, or the non-provision of some infrastructure services,” the Tribunal said.  FULL STORY

PORT AUTHORITY OF NSW APPROVES SHIPPING FACILITY IN INNER WEST SYDNEY
Source: Megan Gorrey (Sydney Morning Herald)
A shipping facility for the delivery of construction materials will be built at the edge of Sydney Harbour in the inner west after it was approved by the government authority behind the proposal. The Port Authority of NSW on Monday gave the green light for its own plan for the "multi-user facility" on the eastern side of Glebe Island, located under the Anzac Bridge and opposite Pyrmont. The authority said the hub for the delivery of materials such as sand, aggregate and cement would meet the city's rising demand for concrete and construction materials and support infrastructure projects including the Sydney Metro, WestConnex and Western Harbour Tunnel in the next decade.  FULL STORY

AUSTRALIA PORT KEMBLA LNG IMPORT PROJECT SEEKS TO INCREASE WINTER VOLUME
Source: RNZ
A Japanese-backed consortium looking to import liquefied natural gas to Australia said it has sought to increase the volume it can ship in during the southern hemisphere winter, beyond what the state of New South Wales approved last April. Australian Industrial Energy (AIE), the joint venture planning to build the berth for a floating LNG import facility at Port Kembla, said it is now seeking up to 46 shipments a year on variable-sized vessels, up from the approved 26 standard-sized vessels of 170,000 cubic metres each. AIE is backed by Japan’s JERA, the world’s biggest LNG importer, as well as Marubeni Corp and Australian mining billionaire Andrew Forrest’s Squadron Energy.  FULL STORY

SHIPPERS EYE NEW ROUTES TO MARKET AS PORT OF MELBOURNE FEES SKYROCKET
Source: Sam Whelan (The Load Star)
Spiralling terminal access fees at the port of Melbourne are forcing cargo owners to consider alternative shipping routes, according to the Freight & Trade Alliance (FTA). The controversial fees, also known as “port infrastructure” charges, have angered local trucking firms and shippers since the port’s terminal operators began a series of “exponential” increases in March 2017. For example, according to the Victorian Transport Association (VTA), the fees truckers must pay in Melbourne to deliver and pick up laden containers have increased by 2,000%, to more than A$85 (US$58), in some cases. This month, the FTA held a workshop with key port of Melbourne shipper customers to better understand the impacts of the fees on their businesses.  FULL STORY

RIO TINTO EXPECTS LIFT IN IRON ORE SHIPMENTS DESPITE CHINA WORRIES
Source: Nick Toscano (SMH)
Australian mining giant Rio Tinto expects to increase its shipments of iron ore next year despite concerns of slowing demand for the steel-making ingredient from Chinese mills and the impact of the US-China trade war. Rio Tinto, the world's second-biggest supplier of iron ore, on Thursday said it expects to ship between 320 and 330 million tonnes of the commodity in 2019, and increased its shipment guidance by 5 per cent for 2020 "subject to market conditions". Speaking in London on Thursday night, Rio Tinto chief Jean-Sebastien Jacques said its flagship Western Australian iron ore division could have the capacity to ship 360 million tonnes a year by 2022 once its new Koodaideri mine was completed.  FULL STORY

SEABOURN RETURNS TO AUSTRALIA AND NEW ZEALAND
Source: Brian Johnston (Traveller.com.au)
Seabourn is returning to Australia and New Zealand this December 2019, when two of its ships make 40 calls across Australia over the summer season. Seabourn Encore is making maiden calls at Portland in Victoria, Hobart, Kangaroo Island and Adelaide (all in March 2020), while Seabourn Sojourn is visiting six Australian ports as part of a world cruise, including its first calls at Airlie Beach and Brisbane in April 2020, which closes the season Down Under. Seabourn is also operating a dedicated, 16-day wellness cruise between Auckland and Sydney, departing on February 21, 2020.  FULL STORY

PORT NELSON PREPARING FOR BIGGER SHIPS
Source: Dredging Today
Port Nelson, New Zealand, announced earlier this week that contractors have begun drilling of the seabed in and around the port for geotechnical purposes. According to the company’s environmental officer, Kelly Leonard, the drilling is needed before the company can begin dredging operations in the shipping channel, and before the port’s main wharf extension project. As she stated, the port is currently limited to safely bring in larger vessels, and in order to accommodate the requests of shipping lines already calling at Nelson, the port is doing the initial scoping ahead of applying for resource consent to do the dredging.  FULL STORY

CARGO VOLUMES FLAT AT PORT OF TAURANGA
Source: Sun Live NZ
Port of Tauranga is reporting a slight decrease in cargo volumes for the first quarter of the 2020 financial year. From July 1 to September 30, Port of Tauranga handled nearly 6.8 million tonnes of cargo, a 1.1 per cent decrease on the same period last year. Log exports dropped 5.2 per cent in volume to just over 1.7 million tonnes, following a sharp decrease in international prices and demand in the past few months. Dairy product exports decreased 1.7 per cent compared with the same period last year. However, container numbers increased overall to more than 312,000 TEUs, a 5.8 per cent increase on the first quarter of last financial year.  FULL STORY

OFFSHORE SUPPLY VESSELS ARRIVE AT TIMARU'S PORT
Source: Samesh Mohanlall (stuff.co.nz)
Two offshore supply vessels, which have been used to support deep sea drilling rigs off the Taranaki coast, berthed at Timaru's port last week but mystery surrounds their arrival. A spokesperson from Kingston Offshore Services, the New Zealand agent of the Skandi Emerald and Skandi Atlantic, said the vessels were berthed at Timaru awaiting their next job. But he wasn't prepared to divulge exactly what that job might be. "It is all a bit sensitive at the moment. "They're just sitting there laid up until their next contract. I don't really have anything to offer at this time," he said.  FULL STORY

LODESTAR AND SWIRE SHIPPING TEAM UP IN BREAKBULK SERVICE
Source: Hellenic Shipping News
Lodestar and Swire Shipping have teamed up to offer customers a joint breakbulk shipping service between New Zealand and North Asia. Lodestar is the logistics and shipping division of Oji Fibre Solutions, while Swire Shipping is the liner shipping division of The China Navigation Company. This new service offers a monthly frequency carrying pulp, timber and forest product related cargo for key customers. The two New Zealand ports are Napier and Tauranga, whilst the key Asia ports are Incheon, Qingdao, Lianyungang, Onsan, Tomakomai and Kaohsiung; thereby preserving the existing Lodestar service network and further expanding the port scope. There is a total of three Saiki class 38,000 dwt bulk vessels deployed in the service, MV Glorious Saiki, MV Furness Portland, and MV Furness Southern Cross.  FULL STORY

PILOT AND CREW RAN SHIP AGROUND BECAUSE THEY IGNORED NAVIGATION EQUIPMENT
Source: Jim Wilson (Freight Waves)
Poor navigation and poor “bridge resource management” were the cause of the Maersk container ship, the Leda Maersk, running aground in a New Zealand harbour channel during fair weather. New Zealand’s Transport Accident Investigation Commission (TAIC), the official state transport accident investigator, has concluded in its final report that the pilot and crew of the Leda Maersk did not look at the navigation instrumentation on the bridge of the ship, which is the immediate cause of why it ran aground. TAIC noted that a harbour pilot of the Port of Otago, along with the crew on the bridge, were “primarily navigating using visual cues outside the ship,” i.e. they were looking out of the window rather than using the ship’s navigation equipment. Those navigation aids “clearly showed the ship deviating from the centre of the channel.”  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