News & Media

03 July, 2020

Australian Newsletter - Issue 633

CALL TO SOUND HORNS ON 8 JULY AHEAD OF CREW CHANGE SUMMIT
Source: Marcus Hand (Seatrade Maritime News)
The International Chamber of Shipping (ICS) is calling on all ships to sound their horns again at 12 noon on 8 July, the day before a summit meeting on crew change on 9 July led by the UK government. “Globally there are now 400,000 seafarers who are either stranded at sea and have overrun their contracts or are at shore waiting to start their tours of duty. The 8th July is a perfect moment to remind those politicians who are meeting to consider the impact of Covid-19 to classify these unsung heroes of global trade as key workers and to instigate seafarer air-bridges to enable safe travel,” said Guy Platten, secretary-general of the ICS.  FULL STORY

RISK MANAGEMENT CONCERNS RISING AT PORTS
Source: Baibhav Mishra (Sea News)
The deadly spread of COVID-19, and the economic and trade disruption the pandemic has caused, is prompting port managers to examine new ways to improve risk management and digital processes, according to the latest biennial global ports survey conducted by Remy InfoSource. The 2020 iSpec Ports Industry Survey was undertaken during the height of worldwide economic lockdowns in the second quarter of 2020 by Remy InfoSource, the lifecycle contract management specialist behind iSpec, the world’s leading web and mobile-based software procurement solution for buyers of capital intensive outsourced projects such as ports.  FULL STORY

SPRING OIL FLOOD CAUSES SUMMER QUEUES IN CHINESE PORTS
Source: International Shipping News (Port News)
Chinese ports are struggling to unload record volumes of crude with storage tanks full after the country rushed to buy extra barrels during April’s oil price crash, according to traders and shipping data seen by Reuters. More than 80 million barrels of crude oil are currently waiting to be discharged from tankers in Chinese ports, Refinitiv Eikon data showed. Half of those are at the Qingdao port area in Shandong province, where the waiting time is two-three weeks or sometimes even longer, according to four traders.
“Our vessel arrived during the first days of June, but we’re still waiting to offload”, a trader with one oil major said.  FULL STORY

SEAFARERS STILL STRANDED AT SEA — AND MORE TEST POSITIVE
Source: Hellenic Shipping News
Shipping groups and seafarer unions are desperately trying to convince governments to allow crew the right to transit after work contracts expire. Most governments still haven’t listened. An estimated 200,000 crew remain stranded at sea, unable to get back to their homes after their initial work contracts expired. It will be even harder to convince governments to allow seafarers passage through their ports and airports if more shipboard outbreaks occur. And while still relatively rare, new incidents are indeed emerging.
In the past two weeks, 15 of 28 crew aboard the tanker Minerva Oceania tested positive, as did 10 of the 23 crew on the container ship Maersk Idaho.  FULL STORY

GLOBALDATA: GLOBAL IRON ORE CONSUMPTION TO DROP BY 2.8%
Source: John Williams (Global Mining Review)
The impact of COVID-19 on the mining industry has been strained by the struggling global automotive industry, which consumes approximately 17% of iron ore globally. Global light vehicle sales fell by 24% in 1Q20, then 47.5% in April and 33.8% in May.
Although sales were boosted by improvements in China in May, where light vehicle sales rose by 8.1% y/y, over the second quarter global sales are expected to drop by 34%. Slow demand in the automotive space will have a knock-on effect and reduce demand for iron ore, says GlobalData, a leading data and analytics company. Vinneth Bajaj, Senior Mining Analyst at GlobalData, comments: “COVID-19 is expected to significantly impact global iron ore consumption, which is projected to drop by 2.8% to reach 2034.6 million t in 2020.  FULL STORY

AUSTRALIA FORECASTS 915 MILLION TONNES OF IRON ORE EXPORTS BY 2021-22
Source: Metal Bulletin
Australia expects its iron ore exports to grow from 852 million tonnes in the 2019-20 period to 915 million by 2021-22 - a 7.4% increase. This anticipated increase is attributed to the commencement of new mines in Western Australia, the country’s Department of Industry, Science, Energy & Resources said in its resources and energy quarterly report released on Monday June 29. “New output is expected from significant projects in the Pilbara region of Western Australia, including BHP’s South Flank project (from 2021), [Fortescue Metals Group’s] Eliwana project (from 2021), and [Brockman Mining’s] Marillana mine (from 2021),” the report said.  FULL STORY

ALTURA'S SALES HIT HIGHS IN JUNE QUARTER
Source: Esmarie Iannucci (Mining Weekly)
PERTH (miningweekly.om) – ASX-listed Altura Mining has reported record lithium sales in the June quarter from its project in the Pilbara. A record 60 950 t of lithium was shipped during the quarter, with 16 000 t recently loaded at Port Hedland, bound for China, marking the fourth shipment in the June quarter. “Our operation continues to perform at a high level during a time of global difficulty for all businesses. We have delivered a record quarter in terms of product sold and shipped, while operationally we are on track to achieve production of around 45 000 t,” said Altura MD James Brown.  FULL STORY

MACTIERNAN AIRS WA CONCERNS ON CONTAINER ACCESS CHARGING
Source: Rob McKay (ATN)
Port-owner WA supports federal approach if state avoids any disadvantage. Western Australian ports minister Alannah MacTiernan had amplified her concern at the present reality of the nation’s container logistics the stevedores’ control of port terminals to create landside revenue streams at the expense of exporters and importers. MacTiernan also offers conditional support for a federal government-led approach to the issue. Her statement follows that of Queensland transport minister Mark Bailey, who urges a Canberra-led approach to unregulated and unconstrained container access charges for port haulage and exploitation of port systems aimed at prompt return of containers and discipline filling booked slots.  FULL STORY

NQ MINERALS ANNOUNCES 44% PRODUCTION RATE INCREASE FROM HELLYER GOLD MINE
Source: Stock Day Media
NQ announces today that plant production at its flagship Hellyer Gold Mine (“Hellyer”) in Tasmania, Australia, has now been successfully increased by 44% to over 1.3 million tonnes per annum (1.2Mtpa at 92% plant availability), compared to 2019’s full year plant production numbers. The new production rate of 150 tonnes per hour (1.314Mtpa) is now being achieved after a June plant upgrade and circuit optimisation exercise. This new rate compares to 2019 Hellyer Full Year plant throughput totalling 835,877 tonnes (average 103 tph at 92% plant availability). Process optimisation works are now underway to ensure that the plant achieves maximum recoveries and concentrate specifications at these new higher production rates.  FULL STORY

MELBOURNE SEES LARGEST CONTAINER SHIP
Source: Port Strategy
The Port of Melbourne has welcomed the largest container ship by maximum capacity to call at its facilities in what is seen as a demonstration of the port’s ability to accommodate the next generation of global container vessels. The 299m long CMA CGM vessel Ural can carry up to 10,662 TEU1, with containers stacked up to 12 high on-deck. Compared to the 4,500 TEU carried by the average container ship currently calling at the Port of Melbourne, this is a significant increase in load carrying capacity. Ural arrived into Melbourne’s Webb Dock for handling by ICTSI's automated Victoria International Container Terminal (VICT).  FULL STORY

HUNT BACKS NSW RIVAL AS AGL SEEKS LNG IMPORT TICK
Source: Angela Macdonald-Smith (Australian Financial Review)
AGL Energy has struck an early political snag in its controversial quest to build a $300 million LNG import terminal in Victoria's Western Port, with local MP Greg Hunt coming out strongly in favour of a rival project in NSW backed by billionaire Andrew Forrest. Mr Hunt, the member for Flinders, last year declared himself "unequivocally and absolutely" opposed to AGL's proposed Crib Point terminal. He doubled down on that on Thursday after the company released its full environmental effects statement for the project. "The Minister’s position remains unchanged on the Crib Point project," said a spokesman for Mr Hunt, the federal minister for health who has no role in the approvals process.  FULL STORY

REGIONAL BEEF EXPORTS RECOMMENCE OUT OF TOWNSVILLE
Source: Beef Central
FOR the first time in more than ten years, the Port of Townsville is being used to export Australian beef to key Asian markets.
A small shipment of frozen beef from JBS Australia’s Townsville export abattoir leaves today from the northern port bound for Japan. JBS has consigned two refrigerated containers per shipment on average on scheduled services since May, with today’s shipment aboard ANL’s vessel, the ‘Hansa Regensburg’ the latest consignment. For the past 12 months, shipping company ANL has been working with JBS developing and securing future meat exports from Townsville, a Port of Townsville statement said.  FULL STORY

NEW ZEALAND TO BUILD NEW INLAND PORT AS PART OF POST-PANDEMIC UPGRADE
Source: Port Technology
New Zealand will build a new inland port south of the Port of Napier as part of a national post-COVID-19 infrastructure programme. In a statement, the Port of Napier welcomed the plans to build the 12 hectare Whakatu Inland Port , saying it has the potential to generate jobs in the construction process and in the long term. Napier Port Chief Executive Todd Dawson described it as “a vital piece of infrastructure that will provide Napier Port with capacity to meet the regional growth expected within Hawke’s Bay and beyond”.  FULL STORY

TRANSPORT LOBBY OPPOSES PORT MOVE NORTH
Source: Imran Ali (Northland Age)
The National Road Carriers' Association has released a report it commissioned from TG Enterprises, which opposes shifting Ports of Auckland to Whangārei, saying it would be logistically impractical and cost-prohibitive to do so, while increasing greenhouse gas emissions. The report, based on interviews with trucking companies and stakeholders, concluded that Auckland's port provided the best value for money and should continue in its current location until it could not cope with future growth, which it expected would be at least 30 years away.  FULL STORY

HUNDREDS OF JOBS PROMISED FROM $27M SPEND-UP AT WHANGANUI PORT
Source: Robin Martin (RNZ)
New jobs are among the benefits promised for a $27m investment from the Provincial Growth Fund for five port-related projects in Whanganui. Regional Economic Development Minister Shane Jones, who made the announcement in Whanganui today, said the investments would support the redevelopment of the port and help the economic recovery in the region and create new jobs. The projects receiving PGF support are: $12.5 million equity investment to the Port Infrastructure project, $7.5 million grant to the Lower River Infrastructure project, $5.25 million loan to Q-West Boat Builders, $1.5 million Te Ara Mahi funding - Port Employment Precincts.  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