News & Media

16 October, 2020

Australian Newsletter - Issue 648

MARITIME LEADERS REIMAGINE GLOBAL SEABORNE TRADE FOR A MORE RESILIENT, SUSTAINABLE AND FAIR GLOBAL ECONOMY
Source: Hellenic Shipping News
Transparency, cross-value chain collaboration and public-private partnerships will be crucial to rebuilding the world economy post COVID-19 while addressing long-term challenges such as the climate crisis. Finding a new way forward for global seaborne trade was at the focus of discussions during the Global Maritime Forum’s week-long Virtual-High Level Meeting. The meeting gathered around 240 global leaders from across the entire maritime spectrum to learn from the realities exposed by the COVID-19 pandemic, and to identify the windows of opportunity to build back better.  FULL STORY

SHIPPING INDUSTRY EYES RECOVERY IN TWO YEARS, FINDS SURVEY
Source: Eleanor Wragg (Global Trade Review)
The global shipping sector has experienced far-reaching negative impacts as a result of the Covid-19 pandemic, but most players in the industry believe it will recover within the next two years, according to new research by multinational law firm DWF. The firm carried out a survey of 200 traders and operators working in the shipping and commodities sector. Perhaps unsurprisingly, the majority (63%) said that the pandemic and subsequent lockdowns had a negative impact on their revenues, with a similar number (60.5%) saying that there was also a negative impact on employee headcount. Meanwhile, almost half said that they had seen a negative impact on insurance premiums.  FULL STORY

EQUINOR COMMITS TO THE SEA CARGO CHARTER
Source: Baibhav Mishra (Sea News)
A group of the world’s largest companies with shipping activity will for the first time assess and disclose the climate alignment of their shipping activities. The group includes Shell, Total, Ørsted and major other charterers of shipping services. United Nations agencies estimate the international shipping industry to carry around 80% of world trade flows and to be responsible for 2-3% of global greenhouse gas emissions annually. Large industrial corporations are significant users of international shipping services. The Sea Cargo Charter has been developed by a group of charterers to measure and report climate alignment.  FULL STORY

INTERNATIONAL SHIPPING URGES EU TO ADDRESS SHIP EMISSIONS VIA IMO
Source: Shipping Australia Limited
Global shipping industry bodies have expressed worries about the plan of the European Union to include the maritime sector in its Emissions Trading System. Shipowner body BIMCO has warned that if the European Union includes ocean shipping it its regional Emissions Trading System then “shipping risks getting hit by multiple emission trading systems which will make a global … Market Based Measure much more difficult to achieve”. Instead, the EU should work with the international community via the International Maritime Organization to get a global market based measure established, the ship owner body said.  FULL STORY

OIL SLIPS AS NEW LOCKDOWN MEASURES THREATEN DEMAND RECOVERY
Source: Oil and Companies News (Hellenic Shipping News)
Oil prices fell on Thursday as new restrictions to stem a surge in COVID-19 infections have increased uncertainty over the outlook for economic growth and a recovery in fuel demand.
Brent crude LCOc1 futures dropped 70 cents, or 1.6% to $42.62 a barrel at 0905 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 futures were down 69 cents, or 1.7%, to $40.35. Some European countries are reviving curfews and lockdowns to try to contain the rise in new coronavirus cases, with Britain expected to impose tougher COVID-19 restrictions on London from midnight on Friday.  FULL STORY

MIXED STORIES FOR CHINA’S IRON ORE AND COAL IMPORTS
Source: Glen Dyer (Share Café)
China’s voracious appetite for iron ore continued in September, even though Australian exports fell for the month. But China’s imports for coal fell as the country slowed shipments to allow the unofficial 300 million tonne annual quota to be met by December 31 and not exceeded. China’s Customs Administration said that iron ore imports were up 8.2% to 108.55 million tonnes in September from 100.36 million tonnes in August. That saw January-September imports jump nearly 11% to 868 million tonnes…  FULL STORY

CORONAVIRUS-RIDDLED IRON ORE SHIP OFF PORT HEDLAND SETS SAIL FOR PHILIPPINES
Source: Fran Rimrod (The Sydney Morning Herald)
BHP-chartered iron ore bulk carrier Vega Dream, which had an outbreak of COVID-19 on board, has declined medical assistance and left its anchorage off Port Hedland on Wednesday evening to return to the Philippines. The vessel was docked at port on Sunday, and had already received its iron ore consignment. It was subsequently anchored off Port Hedland, outside of WA's jurisdiction, when an unwell crew member was taken onshore for treatment and tested positive for COVID-19. Seven of the ship's 20 crew then tested positive in the days that followed. The positive crew members were isolating on board, in rooms with ensuites.  FULL STORY

CANOLA FIRST CAB OFF THE RANK AS WA HARVEST KICKS OFF
Source: Cally Dupe (Countryman)
WA’s grain harvest has begun in earnest, with about 800 tonnes of canola delivered to CBH bins in the Geraldton, Esperance and Kwinana Port Zones by Tuesday. A 50-tonne load of canola delivered to CBH’s Moonyoonooka site, near Geraldton, opened the 2020-2021 grain harvest just before midday last Wednesday. It was the same date and the same delivery site as last year, when harvest started off — with a 50-tonne load of canola delivered to Moonyoonooka from Mullewa. This year, the first delivery came from a farm at Yuna, and was graded a top-quality CAG1 sample — the best-quality and highest-priced GM canola.  FULL STORY

T-PORTS LOOKS FORWARD TO NEW HARVEST SEASON
Source: Jarrad Delaney (Port Lincoln Times)
T-Ports is getting ready for its second full harvest season at its Lock and Lucky Bay sites as the first loads of grain have been received. The company, which exported the first loads of grain earlier this year after construction at the port was completed in March, welcomed the first load of barley from the Kaden family from Mitchellville, near Cowell on Tuesday. On top of this, T-Ports has received grain from growers across the area including Cowell, Kimba and Rudall.  T-Ports chief executive officer Kieran Carvill said it was only barley coming in with wheat receivals expected to get off to a slow start due to the late rain.  FULL STORY

INFRASTRUCTURE AT BURNIE PORT FALLING APART
Source: Tasmanian Labor
Masterplan for Burnie Port going nowhere under Ferguson Section of a loading berth collapsed while a ship being loaded Minister doesn’t know if WorkSafe is investigating The Gutwein Government’s lack of maintenance and inspections of port infrastructure has resulted in a serious wharf failure at the Port of Burnie nearly two weeks ago. Until Shadow Infrastructure Minister Shane Broad brought the incident to the attention of the Parliament today there had been no attempt by this Government to make it public.  FULL STORY

DESPITE PEACE TALKS AT PORT BOTANY, CONTAINER CONGESTION REMAINS CRITICAL
Source: Sam Whelan (The Loadstar)
Box congestion at Sydney’s port Botany remains “critical”, with the continuing surplus of empty containers costing transport operators millions in extra logistics. While industrial action is currently on hold pending negotiations between the country’s three major stevedores and the Maritime Union of Australia (MUA), the bottleneck created last month could take months to clear. Neil Chambers, director of the Container Transport Alliance Australia (CTAA), said: “Empty container parks are still unable to accept de-hires for certain types of shipping line container equipment, due to capacity constraints...”  FULL STORY

CASH GRAB: UNFAIR NEW SOUTH WALES DOUBLE-DIPPING PORT CHARGES ARE UNPRECEDENTED
Source: Shipping Australia Limited
Most businesses provide incentives for returning customers. But not in New South Wales. Here, the relevant port authorities apparently much prefer to penalise their customers by double-charging them. A Navigation Service Charge is a statutory charge levied by port authorities on ships that enter a port. It is a reasonable way to charge for access to a port. But it is not reasonable for shipping companies to be forced to pay it twice.  FULL STORY

WHITEHAVEN TO DELAY KEY PROJECTS AMID COAL SLUMP
Source: Vanessa Zhou (Australian Mining)
Whitehaven Coal has paused three key development projects, including the Narrabri and Vickery extension projects in New South Wales and the Winchester South metallurgical coal project in Queensland. As stated in Whitehaven’s September quarterly report, the subdued coal markets have forced the company to be cautious in allocating its capital to expansion. Whitehaven doesn’t expect to make a final investment decision on these projects, on which the company’s production will be underpinned for the next 10 years. Whitehaven’s metallurgical coal sales took a hit over the September quarter as a result of COVID-related term contract shipment deferrals, particularly in India.  FULL STORY

AUSTRALIAN COTTON THE LATEST CASUALTY IN TRADE TENSIONS WITH CHINA
Source: Kath Sulivan and Lucy Barbour (ABC News)
Australia's cotton industry is bracing for what could be a devastating blow as it becomes the latest casualty in the escalating trade tensions with China. Mills in China are being told to stop buying Australian cotton as speculation grows that a hefty tariff is about to be slapped on the trade. Government sources have told the ABC the cotton industry could face tariffs as high as 40 per cent, a sanction that could make the trade with China unviable.  FULL STORY

CARNIVAL CRUISE LINE CANCELS NOVEMBER CRUISES AS HOPE FADES FOR 2020
Source: The Maritime Executive
Carnival Cruise Line has become the latest of the major cruise lines to further extend its cancelation of cruises for the North American cruise market. With the major cruise lines canceling sailings into December 2020, hope is increasingly fading for a return to cruise service this year. Carnival Cruise Line had previously cancelled cruises for the remainder of 2020 except for six cruise ships scheduled to sail from PortMiami and Port Canaveral, both located in Florida. At the time, the company had cautioned that it was still evaluating the situation and would keep passengers apprised.  FULL STORY

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