News & Media

24 July, 2020

Australian Newsletter - Issue 636

NEW DATA SHOWS 5.6 PERCENT REDUCTION IN CO2 INDEX FOR CONTAINER SHIPPING FROM 2018 TO 2019
Source: Hellenic Shipping News
Carbon dioxide emissions from 17 of the world’s leading ocean container carriers, representing approximately 85 percent of global containerized shipping, continued to fall in 2019, according to a new report from Clean CargoTM, a collaborative initiative for sustainable cargo shipping managed by BSR (Business for Social Responsibility). Global industry averages for CO2 emissions per container per kilometer decreased by 5.6 percent and 2.5 percent for Dry and Reefer (refrigerated) indexes, respectively.  FULL STORY

TRANSSHIP LOOKS TO AUTOMATE GLOBAL REEFER MARITIME SHIPPING
Source: International Shipping News
At the heart of the logistics industry’s digitalization efforts is the idea of improving visibility into end-to-end product movement within the supply chain. Greater transparency into operations allows stakeholders to take stock of their situation and more effectively partner with associated companies to improve efficiency. Automated freight forwarder Transship has partnered with digital cargo insurance company Loadsure to provide its broker customers options for pay-as-you-go, wraparound insurance coverage for all perishable goods.  FULL STORY

COVID-19 CRISIS FORCES SHIPPERS TO CHOOSE LOW-SULFUR OIL OVER SCRUBBERS
Source: Business Korea (International Shipping News)
The lockdown of Chinese shipyards that manufacture scrubbers, a desulfurization device for ships, due to the spread of the novel coronavirus, is bringing a big change to the shipping industry’s strategy to cope with environmental regulations. Clarkson Research, a shipbuilding and shipping market analysis agency in the United Kingdom, predicted on July 19 that the planned installation of scrubbers on over 700 ships is highly likely to be cancelled or postponed. In April and May, plans to install scrubbers on some 270 ships at shipyards were cancelled.  FULL STORY

AUSTRALIA LAUNCHING INSPECTION CAMPAIGN ON SECURING OF CONTAINERS
Source: Marcus Hand (Seatrade Maritime News)
The Australian Maritime Safety Authority (AMSA) has launched an inspection campaign focused on the securing of containers on boxships following a number of incidents involving cargo lost overboard.
AMSA said the campaign was being launched in response to serious incidents including the loss of 50 containers off Wollongong by the APL England in May and three containers from the Navios Unite off Cape Leeuwin in June. AMSA said improper stacking and securing of cargo and poor maintenance of securing equipment are likely to have been contributing factors to these incidents which caused “significant environmental damage”.  FULL STORY

CHINESE DEMAND FOR AUSTRALIAN IRON ORE SURGES
IN JUNE

Source: Hellenic Shipping News
China’s iron ore imports surged 35.3 per cent in June as the world’s second-largest economy showed further signs of defying the economic fallout from the pandemic while maintaining strong demand for Australian commodities despite rising political tensions. China Customs on Tuesday announced a surprise increase in imports for last month, and said exports also rose despite the massive disruption to the global economy wrought by COVID-19. By Tuesday, the pandemic had claimed a global total of at least 573,000 lives and infected more than 13 million. With much of the world already in, or on the verge of recession, China is expected to report a recovery in second-quarter GDP on Thursday following a 6.8 per cent fall in the first quarterFULL STORY

BHP SCALES NEW PRODUCTION HEIGHTS DESPITE
COVID-19

Source: Vanessa Zhou (Australian Mining)
BHP has overcome COVID-19 to achieve record production at its Western Australian iron ore operations, as well as at the Caval Ridge and Poitrel coal mines in Queensland. The mining giant produced more than 248 million tonnes of iron ore during the 2020 financial year, thanks to record production at the Jimblebar and Yandi mines in Western Australia. A series of maintenance programs over the past four years enabled Western Australia Iron Ore (WAIO) to also produce at a record annualised run rate above 300 million tonnes during the June quarter. BHP also had over 900 employees and contractors in business-critical roles temporarily relocate from interstate to Western Australia in order to overcome border restrictions.   FULL STORY

HIGH IRON ORE PRICE TEMPTS MORE AUSTRALIAN PRODUCERS
Source: Argus Media
Western Australian (WA) iron ore developer Strike Resources plans to start shipping lump and fines from its Paulsens East iron ore project in the Pilbara next year, as a strong price environment reignites interest in developing smaller iron ore projects. Strike expects to formally a sign a mining agreement with the native title holders covering the Paulsens East project on 14 August, with both sides already agreeing in principle to a draft document. This should allow the firm to move forward with the development of the direct shipping mine, which is expected to produce 1.5mn t of lump and fines over a four-year mine life.  FULL STORY

UP TO 16 WELLS IN PROSPECT AT DORADO OFFSHORE AUSTRALIA
Source: Offshore Magazine
Carnarvon Petroleum has provided details of planned facilities for the Dorado oil and gas field development in the Bedout basin offshore Western Australia, operated by Santos. WEST PERTH, Australia – Carnarvon Petroleum has provided details of planned facilities for the Dorado oil and gas field development in the Bedout basin offshore Western Australia, operated by Santos. The field was discovered in July 2018, 160 km (99.4 mi) north of Port Hedland, with various successful well tests following. During 2Q 2020 the project entered the pre-FEED phase. According to Carnarvon, the focus of the preferred initial development concept is on extracting the liquids (oil and condensate), with gas and LPGs re-injected initially before potentially being produced under a second-stage development.  FULL STORY

PORT RAIL STRATEGY DRIVING NEW INVESTMENT
Source: Port Strategy
A new collaboration marks a significant development for rail to port connectivity on Australia’s East Coast. Transport and logistics company SCT and container logistics provider ACFS have announced a collaboration which will open up rail freight access to the Port of Melbourne for 300,000t of freight annually. SCT managing director, Geoff Smith, said: “This announcement will be the first of many based on our on-going investment in rail freight in the State, supported by the Victorian Government’s Port Rail Shuttle Network (PRSN) Strategy. SCT has substantial plans around increasing rail freight volumes, and this collaboration with ACFS will provide a strong foundation for future growth."  FULL STORY

NAVIGATIONAL AIDS SHINE LIGHT ON SAFETY
Source: Gladstone Ports Corporation
Gladstone Ports Corporation (GPC) continues to improve safety standards in the Port of Gladstone, funding the construction and installation of new navigational aids, benefiting local boaties and commercial shipping operators. GPC is working in partnership with Maritime Safety Queensland (MSQ) to install a lead light and new beacon, and relocate another beacon, as part of the Clinton Vessel Interaction Project (CVIP). MSQ will manage the construction and installation of the navigational aids with the completion expected in the second half of 2020. Acting CEO Craig Walker said GPC is proud to have such a positive working relationship with MSQ and the Regional Harbour Master.  FULL STORY

SHIPPING AUSTRALIA BRIEFS AUSTRALIAN FEDERAL GOVERNMENT ON SEAFARER CREW CHANGE CRISIS
Source: Shipping Australia Limited
Earlier this week the Shipping Australia Secretariat provided a comprehensive brief to Federal Government officials on the crew change crisis. Shipping Australia was asked, at very short notice, to provide a brief on how the shipping industry takes into account the need for COVID-19 risk mitigation together with evidence that the shipping industry alleviates that risk through action.  FULL STORY

LIVE EXPORT BOOM AT TOWNSVILLE PORT
Source: Jessica Johnston (North Queensland Register)
TOWNSVILLE is the cattle live export capital of Australia, having shipped almost 400,000 head in a record financial year. The Port of Townsville shipped 395,628 head of cattle abroad during the 2019-20 financial year, surpassing Darwin for the first time where 387,484 head were loaded. MLA figures show 1,298,922 head of cattle were shipped from Australia in the 12 months to June, an increase of 8 per cent on the year prior.  FULL STORY

SUBDUED SECOND-HALF TRADE OUTLOOK
Source: Ken Wilcock (Queensland Country Life)
WITH the first half of the year behind us thoughts are now turning to what the rest of 2020 has in store.  Coronavirus will no doubt continue to impact the beef industry in the months ahead as second-wave infection lies in wait for the first signs of human complacency but at least the authorities now have some experience in what they are dealing with. Whether recurrence of lockdown, as is currently happening in California, will spread throughout the United States remains to be seen but even if the pattern repeats to a significant extent it would seem likely that flow on effects will be less problematic.  FULL STORY

EASTLAND GROUP’S STRONG YEAR SUPPORTS REGIONAL RESILIENCE IN TAIRĀWHITI
Source: Eastland Group
Regional infrastructure, energy and logistics company Eastland Group, which is headquartered in Gisborne, has had another strong year. They recorded a profit of $18.5 million, which was down on 2019’s record but is still the second highest that Eastland Group has achieved. The return of $12.3 million to sole shareholder Trust Tairāwhiti, meanwhile, was a new record. And that’s despite the impacts of COVID-19 being felt during the last two months of the financial year.  FULL STORY

COVID-19: MONITORING OUR PORTS AND ECONOMIC HEALTH
Source: Solomon Times
With Honiara the only Port in Pacific quarantining cargo ships and marine tankers at this point of time, the Solomon Islands Government’s Shipping Exemption Committee is mindful of the economic impacts. The Shipping Exemption Committee is working hard to find the balance between maintaining Solomon Islands’ COVID-19 free status while at the same time avoiding further pressure on the economy when implementing measures. Secretary to the Prime Minister and Chairman of the Government Oversight Committee’s Shipping Exemption Committee, Dr Jimmy Rodgers explains the role of the Exemption Committee and its importance during a recent interview with the Media and Communication Department.  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