News & Media

17 July, 2020

Australian Newsletter - Issue 635

WILL CONTAINER SHIPPING RELIABILITY COME BACK?
Source: International Shipping News (Hellenic Shipping News)
Over the past few months, Drewry Supply Chain Advisors has organised and moderated weekly discussions with its shipper customers. As well as informing them about how the COVID-19 health crisis has impacted shipping schedules, cancelled sailings and port operations, sessions have helped encourage the exchange of views on how to best respond to the situation and mitigate risks from a logistics perspective. One common issue faced by shippers has been the major disruptions to the shipping and transport network, first in China and then in the rest of the world, and the associated operational problems that have resulted from space shortage, delays and roll-overs.  FULL STORY

TOTAL SHIPPING LOSSES ARE DECLINING, BUT CHALLENGES PERSIST -REPORT
Source: Marine Link
The record low 41 large shipping losses worldwide in 2019 represents a 20% improvement year-on-year and almost 70% over a decade, but the coronavirus crisis could endanger the long-term safety improvements in the shipping industry for 2020 and beyond.
As difficult operating conditions and a sharp economic downturn present a unique set of challenges, according to recent report from marine insurer Allianz Global Corporate & Specialty (AGCS). Consequences of coronavirus and a sustained economic downturn could threaten long-term safety improvements and trigger an uptick in losses from cost-cutting measures, fatigued crew, idle vessels and weakened emergency response.  FULL STORY

AUSTRALIAN MARITIME REGULATOR SILENT ON CREW CHANGE CRISIS
Source: Mirage News
The International Transport Workers’ Federation (ITF) and the Maritime Union of Australia (MUA) says the Australian federal government has been asleep at the wheel of the crew change crisis – risking trade, Australia’s economy and seafarers’ lives.
“On Thursday, when the UK was hosting a virtual international summit on the crew change crisis, Australia didn’t even dial in. It’s just the latest sign that there is no leadership from the federal government or its regulator to deal with the deepest maritime crisis in living memory,” ITF President and MUA National Secretary Paddy Crumlin said.  FULL STORY

MARITIME SAFETY THREAT FROM CORONAVIRUS TO INCREASE SHIPPING COSTS
Source: Jim Wilson (Shipping Australia Limited)
A major international insurer has warned that marine safety is under threat because of the coronavirus pandemic. In a new report listing ten coronavirus challenges to the shipping sector, major international insurer Allianz notes a variety of threats to shipping. “Consequences of coronavirus and a sustained economic downturn could threaten long-term safety improvement and trigger an uptick in losses,” the report says. Among the causes of a reduction in long term safety is an inability to change crews, which is impacting the welfare of sailors, which could lead to an increase in human error on board vessels.  FULL STORY

PILBARA PORTS AUTHORITY ACHIEVES RECORD EXPORT NUMBERS
Source: Nickolas Zakharia (Australian Mining)
Pilbara Ports Authority (PPA) has reported a record annual throughput of 717.2 million tonnes for the 2019/20 financial year, thanks to a surge in exports from Port Hedland. The ports authority, which includes the Port of Port Hedland, Port of Dampier and Port of Ashburton, along with various Greenfield ports operations, recorded a 19.9 million tonnes increase in total annual throughput from the previous year. PPA also reached a new record for total monthly throughput of 68.2 million tonnes in June, a six per cent increase from the corresponding month in 2019.  FULL STORY

RIO TINTO LIFTS IRON ORE SHIPMENTS DRIVEN BY STRONG CHINA DEMAND
Source: Nick Toscano (The Sydney Morning Herald)
Mining giant Rio Tinto lifted its shipments of iron ore during the June quarter, driven by strong demand from China's steel mills, but warns a second wave of COVID-19 infections presents a key risk for advanced economies. The nation's second largest miner on Friday revealed it had shipped 86.7 million tonnes of the steelmaking commodity from its operations in Western Australia's Pilbara in the three months to June 30, compared to 85.4 million tonnes a year earlier. The result came in slightly below investment bank UBS expectations that Rio's iron ore shipments would increase 21 per cent for the quarter to 88.1 million tonnes.  FULL STORY

$11.6M INVESTMENT IN JOB-CREATING GERALDTON PORT INFRASTRUCTURE
Source: Mirage News
$10m McGowan Government investment in Geraldton Port Wharf 4 Strengthening and Rail Replacement project. $1.58m investment into Geraldton Fishing Boat Harbour upgrades. Projects to create more than 90 jobs over the next 12 months and extend life of critical port infrastructure.  Geraldton Port Master Plan endorsed to guide future growth. The McGowan Government will invest $11.6 million into critical infrastructure upgrades at Geraldton Port as part of the Western Australia Recovery Plan, creating more than 90 local jobs and securing future export opportunities in the Mid-West.  FULL STORY

MORE INDUSTRIAL ACTION AT DPW AUSTRALIA HITS ALREADY-STRETCHED SUPPLY CHAINS
Source: Sam Whelan (The Load Star)
More industrial action at all four DP World Australia terminals starts this week, adding to challenges to the country’s container supply chains that include bad weather, schedule changes and port congestion. DP World told customers the Maritime Union of Australia (MUA) would restart ‘protected industrial action’ (PIA) at its Fremantle and Sydney terminals on Saturday and at Melbourne and Brisbane on Tuesday. The terminal operator described the action as “regrettable”. It includes work stoppages and limited bans on employees working in tasks above their normal grade, overtime, shift extensions, accepting late call-ins and advanced or delayed start times.  FULL STORY

THE FIRST VICTORIAN PORTS REVIEW SINCE 2001 IS UNDERWAY
Source: The Standard
The Victorian government is calling on stakeholders to help shape the future of the state's ports. Feedback is being sought as part of the Victorian Ports Review Discussion Paper. It's the first time in almost 20 years such a comprehensive review of the state's ports has been conducted, providing industry and the public with a chance to have their say on major issues. Topics covered in the discussion paper include port pricing and access arrangements, regulation of key port services, development of coastal shipping and industry governance. Ports Minister Melissa Horne said the state was the biggest exporter of agricultural and manufactured goods, in Australia.  FULL STORY

APL ENGLAND SHIPPING CONTAINER HEADED FOR JERVIS BAY COAST
Source: Stuart Thompson (Port News Aus)
A shipping container which fell from the APL England two months ago, could appear off the NSW south coast near Jervis Bay in the next 48 hours. Marine Rescue regional commander Bruce Mitchell said the container had last been detected 26 miles east off Gerringong. "There's a 40ft container plus associated debris floating with it, it's just under the surface and the modelling indicates it will hit somewhere between Point Perpendicular and Beecroft Head," he said. Only one container has been reported but it's possible there could be more. The container could pose a serious danger to vessels. "If a small recreation vessel hit it, I wouldn't like to be on that boat when it happened.  FULL STORY

TOWNSVILLE WAS AUSTRALIA’S LARGEST CATTLE EXPORT PORT IN 2019-20
Source: James Nason (Beef Central)
A SPIKE in drought-driven export turnoff in the second half of last year and resurgent demand from Vietnam saw Townsville become Australia’s largest cattle export port in the 2019-20 financial year, overtaking Darwin for the first time in a formal 12 month period.
Official statistics for the FY19-20 year show Townsville shipped a total of 395,628 cattle from 1 July 2019 to 30 June 2020, compared to 387,484 head over the same period from Darwin. Townsville had come within a boatload or two of overtaking Darwin’s export volumes in the 2019 calendar year, as drought pushed higher volumes of Queensland cattle to the boat trade, exporting 364,064 for the year, just short of Darwin’s 379,109.  FULL STORY

NORTH QUEENSLAND H1 COAL THROUGHPUT DIPS 5.5% ON YEAR
Source: Mysteel Global
The throughput of coal for all applications via the three key coal terminals under the management of North Queensland Bulk Ports Corporation (NQBP), Northeast Australia, fell to 68.2 million tonnes over January-June, or a new low since the first half of 2018, down 5.5% on year, according to the company’s latest data, as overseas demand was hit by the COVID-19. The throughput in June gained slightly by 4.8% on month to 12.2 million tonnes,but it was still 15.9% lower on year, indicating the remaining subdued global demandwith the ongoing battle against the pandemic in many countries, Mysteel Global noted. The three terminals comprise Abbot Point, Hay Point and Dalrymple Bay.  FULL STORY

WESTPORT INVESTMENT RAISES HOPES FOR MINERAL SAND EXPORTING PLANS
Source: Tracey Neal (RNZ)
Westport is earmarked to become the West Coast's main port of call. The remote coastal town has been singled out to receive most of a $7 million government-backed investment package in the coast's ports and wharves infrastructure. Some of the money will boost development of Westport's fishing services, and the remainder will help to advance plans for an export base of the coast's high-grade mineral sands. Buller mayor Jamie Cleine said the new shipping precinct was planned for the former Holcim Cement silo site in Westport, which had attracted interest from the recently incorporated West Coast Bulk Logistics.  FULL STORY

FIRST FOREIGN VESSEL ARRIVES UNDER BLUE LANE INITIATIVE
Source: Praneeta Prakash (FBC News)
The first vessel under the government’s newly announced “Blue Lane” initiative arrived in the country yesterday. The vessel with two New Zealanders on board berthed at the Port Denarau Marina in Nadi, which is the official port for Blue Lane at present. This is the first foreign vessel to be allowed in the country after four months, as restrictions were put in place to combat the spread of COVID-19 in March.  FULL STORY

CARNIVAL BOSS SPEAKS OUT ON WHEN CRUISING WILL BE BACK
Source: Peter Lynch (Cruise Passenger)
Carnival Corporation, the owner of P&O Australia, Princess, Carnival Cruises, Holland America and Seabourn, is planning a staggered return to cruising – though there is no word yet when Australia will see ships. The global cruise giant, which usually has P&O and Princess vessels in Australia and New Zealand year round, will sail with fewer ships and a smaller number of passengers and will return region by region. USA today quoted a Carnival Corp spokesperson as saying none of the company’s lines will sail “until at least early October”.  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