News & Media

30 October, 2020

Australian Newsletter - Issue 650

NEW IMO PROPOSALS TO CUT SHIPPING EMISSIONS HAVE 'TOO MANY LOOPHOLES'
Source: Gavin Van Marle (The Loadstar)
IMO member states have been urged by environmental campaigners to reject shipping emission proposals from an IMO intersessional working group. After meeting this week the group’s Reducing Greenhouse Gas Emissions from Ships (J/5) draft text will be forwarded to the IMO’s Marine Environment Protection Committee (MEPC), scheduled for 16-20 November, where parties are expected to adopt the recommendations. However, campaigners argued that the J/5 proposals violate the IMO’s own initial greenhouse gas strategy in three key ways: that the industry will fail to reduce emissions before 2023; will not peak emissions as soon as possible; and will not set ship CO2 emissions on a pathway consistent with Paris Agreement goals.  FULL STORY

MAERSK TO SHIP AMERICAN COVID-19 VACCINE AROUND THE WORLD
Source: Sam Chambers (Splash 24/7)
Maersk has sealed a deal with COVAXX to ship the American pharmaceutical firm’s Covid-19 vaccine around the world when and if it gets approval by regulatory authorities. COVAXX is currently conducting Phase 1 clinical trials of its vaccine in Taiwan and has an agreement with the University of Nebraska Medical Center to conduct Phase 2 trials in the United States, upon regulatory approval. The company has advanced pre-commitments for over 100m doses round the globe. Maersk will oversee all logistics activities to ensure efficient transportation to developing countries. The agreement provides for end-to-end supply chain management, packing and shipping, via air or ocean, ground transportation, warehouse storage and distribution to facilities…  FULL STORY

DEMAND FOR SEABORNE TRADE TO REMAIN LOW FOR THE NEXT 12 MONTHS
Source: Nikos Roussanoglou (Hellenic Shipping News)
Shipping is being dealing with a double-edged sword lately, as it is faced with stringer environmental measures around the world, while also having to cope with a slowdown in seaborne trade, which is having an adverse effect on revenues. In fact, it is estimated that the industry’s freight rates won’t rebound for the next 12 months. In its latest weekly report, shipbroker Intermodal said that “the global strive towards eco-friendliness and environmental sustainability in the shipping industry is mounting. There are currently almost 200 countries which are nearing an agreement on commitments aimed at reducing pollutant emissions in commercial shipping as part of the international effort to tackle climate change.  FULL STORY

METHANOL COULD BE A CLIMATE NEUTRAL OPTION FOR SHIPPING
Source: Mirage News
Large ships often run on heavy fuel oil, something that leads to pollution and considerable emissions. However, one promising alternative is building or converting engines to run on methanol instead. The Fastwater project led by Lund University in Sweden has received EUR 5 million from the EU to develop the new technology. In 2022, a pilot boat is expected to be launched. The Paris Agreement and agreements within the IMO (International Maritime Organization), state that carbon dioxide emissions from shipping must be reduced by 50 percent by 2050. This is a major commitment, as shipping is a large industry and accounts for substantial emissions of both carbon dioxide and other substances.  FULL STORY

HOW DID ASX IRON ORE SHARES PERFORM IN THE LAST QUARTER?
Source: Lina Lim (The Motley Fool)
The iron ore spot price is at a record 6-year high of around US$121 per tonne. This has been driven by significant iron ore demand from China and supply issues from iron ore producing countries such as Brazil and India. China has a massive appetite for the world’s industrial metals, and when the country emerged from its COVID-19 woes in March, the government unleashed a flurry of fiscal stimulus aimed at building bridges, roads, utilities, broadband and railroads around the country. The speed and size at which the country mobilised for economic recovery can only be described as unprecedented, in a good way.  FULL STORY

ASIAN THERMAL COAL DEMAND TO REACH A BILLION TONNES A YEAR
Source: Nickolas Zakharia (Australian Mining)
The Minerals Council of Australia (MCA) has stressed that Australia must adapt to emissions-reducing technology to meet growing seaborne thermal coal demand in the Asia Pacific region. The MCA, which released a thermal coal demand report on behalf of Commodity Insights, expects Asian thermal coal imports to grow by more than 270 million tonnes to 1.1 billion per annum by 2030. This forecast that factors in technology costs and the steps countries are taking to respond to climate change. MCA chief executive officer Tania Constable said the report challenged local coal miners to work towards reducing emissions by implanting technologies including carbon capture, utilisation and storage.  FULL STORY

ALIEN METALS MOVES ONE STEP CLOSER TO DRILLING AT THE HAMERSLEY IRON ORE PROJECTS IN AUSTRALIA
Source: Alistair Ford (Proactive Investors)
Alien Metals Ltd (LON:UFO) has completed a detailed geological mapping and sampling programme at the Hamersley iron ore projects in Australia. What’s more, field observations indicate that the BHP 19 and BHP 20 prospects may be part of same larger system, and additional prospective iron ore units have been mapped at the Brockman iron project. Preliminary handheld XRF results are consistent with those observed in the 2019 field programme, with reported ranges of between 40% and 70% iron.  FULL STORY

ANL SETS UP SINGAPORE-PORT HEDLAND SHIPPING ROUTE
Source: Tara Hamid (Australian Mining)
Shipping company ANL has set up a regular direct connection between Singapore and Port Hedland for containerised and break-bulk/out-of-gauge cargo. Sailing from Singapore as of October 31, the ANL service, which is called “The Pilbara Connection”, will help reduce the length of the supply chain, reduce road haulage and help shippers and consignees to import and export more easily from remote north west Australia. As a first step, the service will sail from Singapore ever 20 days and offers an eight day transit to Port Hedland along with landside delivery options including, but not limited to, Dampier and Karratha.  FULL STORY

SOUTH AUSTRALIA LAUNCHES HYDROGEN PROSPECTUS
Source: Joanna Sampson (H2 View)
Port Bonython, Port Adelaide and Cape Hardy/Port Spencer are three hydrogen hubs identified by the South Australia Government in a new hydrogen prospectus.
The government believes these three hubs will position South Australia at the forefront of global clean hydrogen production and exportation. Energy Minister Dan van Holst Pellekaan said the prospectus shows that South Australia’s world class wind and solar resources can underpin its international competitiveness as an exporter of clean hydrogen to Asia and other regions. “Hydrogen is shaping up as a game changer in the fight against climate change and our aim is to get the cost down so that it’s a commercially attractive option for heavy transport, power generation and use by industry,” he said.  FULL STORY

LIGHT IS RIGHT FOR PORT OF MELBOURNE REGULATION SAYS ESC
Source: Rob McKay (Australasian Transport News)
Essential Services Commission raises gas industry approach as successful example
The Victorian Essential Services Commission (ESC) is confident that its prescription to solve issues surrounding the Port of Melbourne privatised monopoly’s behaviour will work because it has elsewhere in Australia. The ESC takes a stern line in its recently released 'Port of Melbourne – Market Rent Inquiry 2020' pubic report for the period 2015-16 to 2018-19. The report’s findings, which the Port of Melbourne’s operating company rejects and which came after what is said to have been a ‘bruising’ investigation for the ESC, include that it is barely constrained in its market power regarding rents for those operating on port land, such as stevedores.  FULL STORY

PORT KEMBLA GAS TERMINAL RAISES OCEAN WATER COOLING CONCERNS
Source: Nick McLaren (ABC Illawarra)
Wollongong Greens councillor Cath Blakey is calling for strict compliance to environmental conditions for the recently approved Port Kembla floating gas terminal to ensure the sea is not polluted by cooled, chlorinated water.
The $250-million project was approved by the NSW Department of Planning, Industry and Environment in April 2019 then this year placed on the NSW Government priority list to be fast-tracked. Councillor Blakey said sea water was used to bring the liquified natural gas (LNG) back from minus 161 degrees to room temperature, while chlorinated water was used to stop barnacles growing on the pipes.  FULL STORY

CANADIAN EXPLORERS LOOK TO OPPORTUNITIES IN AUSTRALIA AS GOLD, SILVER AND BASE METAL PRICES STAY STRONG
Source: Tharun George (Proactive Investors)
British Columbia-based Walcott Resources recently closed the acquisition of a 60% interest in two Australian projects - Tyr Silver Project in New South Wales and Century South Silver-Zinc Project in Queensland. The mineral exploration and development space in Australia has recently seen a spike in investments from Canadian companies as the price of gold, silver and base metals continues to stay strong. Australia is viewed as a well-regulated, stable jurisdiction for exploring and developing mining projects and has been relatively successful in containing the spread of COVID-19.  FULL STORY

MARITIME UNION WELCOMES LABOR’S $21M INVESTMENT IN QUEENSLAND SHIPPING
Source: Maritime Union of Australia (Mirage News)
Tuesday’s announcement that a re-elected Palaszczuk Government would invest $21 million over two years to revitalise Queensland’s shipping industry has been welcomed by the Maritime Union of Australia as a vital step to create local jobs and strengthen supply lines. The QLD Labor announcement would see a new shipping service created between Townsville and Brisbane, operated by local seafarers, along with upgrades to port facilities and a commitment that ports would remain in public ownership. There will also be $1 million set aside for training, providing opportunities for Queenslanders to enter the industry or increase their skills.  FULL STORY

CORONAVIRUS: PORTS OF AUCKLAND ACCUSES GOVERNMENT OF 'SIGNIFICANT FAILINGS' AFTER COVID-19 CASES
Source: Michael Morrah (Newshub.co.nz)
New Zealand's biggest port has sharply criticised the Government's lack of COVID-19 rules for international shipping crew, and together with Tauranga Port has introduced its own rules. Ports of Auckland told customers in an advisory, obtained by Newshub, that recent positive cases represent "significant failings". Foreign ships manned by foreign crew are critical to trade, but swapping crews on these vessels represent an obvious risk. Current rules mean foreign crew can fly into Auckland and travel to a port to board a ship without mandatory testing or any isolation.  FULL STORY

BRISBANE LOOKS TO OVERTAKE SYDNEY AS AUSTRALIA’S CRUISE CAPITAL
Source: Bernadette Chua (Cruise Passenger)
The battle for cruise is on with Brisbane’s new slick and chic terminal at Luggage Point looking to steal the crown away from Sydney’s Overseas Passenger Terminal. Over just a few weeks, four of Australia’s biggest cruise lines – P&O Cruises, Royal Caribbean, Carnival Cruise Line and Princess – have revealed they will all be home porting some of their newest ships in Queensland. Roy Cummins, the CEO of the Port of Brisbane, says he hopes the Sunshine State will attract cruisers who would have considered NSW, particularly Sydney as their first choice to sail from.  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