News & Media

13 March, 2020

Australian Newsletter - Issue 617

CORONAVIRUS IS DECIMATING IMO 2020 SHIP-SCRUBBER SAVINGS
Source Freightwaves
The implementation of the IMO 2020 marine-fuel regulation has gone completely off script. Marine-fuel pricing has actually fallen year-on-year and the predicted savings from exhaust-gas scrubbers have increasingly evaporated. What happened and what's next? The IMO 2020 rule, effective Jan. 1, requires all ships that do not have exhaust-gas scrubbers to burn either 0.5% sulfur fuel known as very low sulfur fuel oil (VLSFO) or 0.1% sulfur marine gasoil (MGO). Ships with scrubbers can continue to burn 3.5% sulfur heavy fuel oil (HFO). Scrubbers worked like a charm earlier in the first quarter because VLSFO was much more expensive than HFO.  FULL STORY

CONTAINER SHIPPING BLANK SAILINGS TAPER OFF ON SUBSIDING IMPACT OF CORONAVIRUS
Source: Lee Hong Liang (Seatrade Maritime News)
The number of new blank sailings of container shipping has started to taper off amid the impact of the coronavirus, a sign that carriers can expect demand ramping up back to normal levels over the next few weeks, according to analyst Sea-Intelligence. The number of new blank sailings of container shipping has started to taper off amid the impact of the coronavirus, a sign that carriers can expect demand ramping up back to normal levels over the next few weeks, according to analyst Sea-Intelligence. Sea-Intelligence data indicated that the weekly measurement of carriers’ blank sailings out of China show that the coronavirus impact is now subsiding. “The bulk of the blank sailings were announced during weeks 7 (10 February) and 8. Weeks 9 and 10 have seen a clear tapering off in terms of new blank sailings, and the level of new announcements of blank sailings is back to the normal level,” said Alan Murphy, ceo of Sea-Intelligence.  FULL STORY

18 WOMEN RESHAPING THE FUTURE OF OCEAN INDUSTRIES
Source: International Shipping News
If there is any single industry where women are under-represented it is Shipping. Traditionally male-dominated, shipping has always been averse to increasing the participation of women. Women account for just about 2% of over 1.5 million seafarers, about 50% of whom have experienced sexual harassment in the workplace. Most do not even have access to a sanitary bin on board. Furthermore, the mindset that women cannot cut it in shipping is pervasive. A Credit Suisse about the 2008 financial crises, found that companies with at least one woman on their board outperformed companies with all-male boards.  FULL STORY

INTERNATIONAL CHAMBER OF SHIPPING RELEASES CORONAVIRUS GUIDANCE
Source: Luisa Romeo (Infrastructure Magazine AU)
The International Chamber of Shipping (ICS), in collaboration with bodies such as the World Health Organization, has issued a guide to stop the spread of Coronavirus (COVID-19) within the shipping industry. Among a raft of measures highlighted in the guidance the document contains advice on managing port entry restrictions, offers practical protective measures against COVID-19 for seafarers, including an outbreak management plan.  FULL STORY

DUBAI’S DP WORLD SEES DEMAND REBOUND AS CHINESE FACTORIES RESTART
Source: Port News (Hellenic Shipping News)
Global port operator DP World (DPW.DI) has seen demand bounce back in recent weeks as Chinese factories have restarted, providing a glimmer of hope in a business world gripped by fears about the spread of the new coronavirus. The COVID-19 virus, which emerged in China late last year, shut cities and factories across the country for weeks, disrupting shipments and global supply chains. It has since spread around the world, claiming more than 4,000 lives and sending markets into a tailspin. But it has abated in China, and the comments from DP World could raise hopes over a broader “V-shaped” recovery from the crisis.  FULL STORY

JAKARTA’S PORT TIGHTENS MEASURES ON FOREIGN SHIPS, BARS CREWS FROM DISEMBARKING
Source: The Jakarta Post
State-owned Indonesia Port Corporation II (IPC) is prohibiting crew members of all foreign vessels docking at Jakarta’s Tanjung Priok Port from getting off their ships as part of the efforts to contain the spread of the COVID-19 coronavirus in the country. The increased precautionary measures also stipulated that a crew change would only be allowed after all crew members undergo an observation period and are given clearance by the Port Health Authority, the company’s president director Arif Suhartono said.   FULL STORY

AUSTRALIA REACHES FUEL SECURITY ARRANGEMENT WITH US
Source: World Maritime News
Australia and the United States have signed a milestone arrangement to bolster Australia’s access to emergency oil supplies in the event of a major global disruption. As informed, the arrangement will allow Australia to lease space in the US Strategic Petroleum Reserve (SPR) to store and access Australian owned oil during a global emergency. “The U.S. Strategic Petroleum Reserve is a critical asset for energy and national security that America has had at our disposal for decades… we are glad that Australia is choosing to entrust us with their reserves,” Dan Brouillette, U.S. Secretary of Energy, said.   FULL STORY

PORT HEDLAND EXPORTS NO LITHIUM IN FEBRUARY
Source: Argus Media
Port Hedland in West Australia (WA) did not export lithium concentrate in February, given the continued downturn in the lithium market. This compared to 24,500 dry metric tonnes (dmt) in January and 27,608 dmt in December. This is the second time in the past two years that Port Hedland has not exported lithium to China, according to data from the Pilbara Ports Authority. The last time this occurred was January 2019. Port Hedland exported 280,524 dmt of lithium to China in 2019. Exports were affected by market weakness and production cutbacks by producers to reduce costs as concentrate prices slumped to around $500/dmt.  FULL STORY

PORT OF NEWCASTLE STORES TURBINE BLADES FOR COLLECTOR WIND FARM
Source: Luisia Romeo (Infrastructure Magazine)
The Port of Newcastle, which is equipped with on-site storage, will house new wind turbine blades to be used on the Collector Wind Farm project.
More than 200 wind turbines have been imported through Port of Newcastle over the past four years and this number is set to grow a further 25 per cent this year with the arrival of another two shipments aboard specialist project cargo ships, Industrial Strength and BBC Coral.  The on-site storage – a unique advantage at Port of Newcastle compared with other ports – reduces double-handling of cargo and unnecessary truck movements in regional NSW.  FULL STORY

AUSTRALIAN MET COAL PORTS OF DBCT, ABBOT POINT, HAY POINT SHUT ON CYCLONE FORECAST
Source: Port News (Hellenic Shipping News)
Australia’s three key met coal terminals in Queensland, including Haypoint, Abbot Point and Dalrymple Bay, or DBCT, were closed Wednesday over deteriorating weather conditions. Market sources forecast the terminals to stay closed until at least Sunday. The Australian Bureau of Meteorology issued a Severe Weather Warning earlier Wednesday that a tropical cyclone was brewing off-shore in the Coral Sea, which is creating heavy sea conditions and is expected to track north toward Abbot Point across the weekend.  FULL STORY

BROOKFIELD SUSPENDS A$2BN DALRYMPLE BAY COAL TERMINAL SALE
Source: Florence Chong (IPE Real Assets)
Brookfield has suspended its plan to sell the Dalrymple Bay Coal Terminal in Australia because of the coronavirus pandemic, which has impacted markets and led to domestic and international travel restrictions. A source told IPE Real Assets that the coal terminal Queensland, which is likely to attract offers between A$2bn (€1.1bn) and A$2.5bn, has received strong interest, “but due to market volatility and travel restrictions (both owing to coronavirus), we have paused the process and will pick it up later, at an appropriate time.”  FULL STORY

WORK ON PORT NELSON’S MAIN WHARF NORTH PROGRESSES WELL
Source: Dredging Today
The $20 million redevelopment project of the Port Nelson’s Main Wharf North is progressing well with the demolition of the old wharf now completed. The next phase of the scheme is building the piles for the new concrete and steel berthing facility. Sheet piling behind the wharf will start this week with pile driving scheduled to start in June. “Once completed the new section of the main wharf will assist in enabling the port to attract larger 260 to 270 meter vessels and 300-meter cruise vessels creating growth opportunities for our importers, exporters and the community,” said the port in its announcement. It will also improve the port’s resilience, move main wharf operations further away from residential neighbours and enable the port to accommodate larger vessels.  FULL STORY

CONFLICTING REPORTS OVER VESSEL SCREENING
Source: Siteri Sauvakacolo (The Fiji Times)
CONFLICTING information has been received in regards to screening for COVID-19 on board vessels entering Fiji ports. An English couple who arrived on the MV Norwegian Jewel on Sunday at Lautoka claimed there was no screening done by local health authorities. However, a Fiji Ports Corporation Ltd (FPCL) representative said there were “protocols in place”.
Ministry of Health and Medical Services head of health protection Dr Aalisha Sahukhan said people who did not develop symptoms could not be tested for the coronavirus.  FULL STORY

WHERE CAN YOU STILL CRUISE CLOSE TO HOME
Source: Vanessa Wu (Cruise Passenger)
The South Pacific is one of Australia’s top cruise destinations for a quick getaway – but many ports remain closed thanks to the fast-spreading COVID-19. So where can Australians cruise in our region? Cruises departing for the South Pacific are still calling at ports like Noumea in New Caledonia, Mystery Island, Santo, Vila in Vanuatu, Port Denarau, Lautoka and Suva in Fiji. However, they all have tighter screening and entry policies so it will be helpful to check with your cruise line before booking your cruise. See Carnival Cruise Lines’ destination requirements for Vanuatu, New Caledonia and Fiji.  FULL STORY

CRUISE LINES SUSPEND OPERATIONS AROUND THE WORLD
Source: Emrys Thakkar (Cruise Hive)
Cruise lines have started suspending global operations after President Trump announced a travel ban from Europe lasting 30 days. Last night President Trump announced a travel ban from Europe to the United States which goes into effect on Friday at midnight. As a result of the ban and the current situation of the spreading coronavirus, cruise lines have started to suspend operations worldwide. Flights have also been impacted which means cruisers will find it difficult to get to the cruise ship.  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