News & Media

18 June, 2021

Australian Newsletter - Issue 683

MOVING TOWARDS A GLOBAL GREEN SHIP FINANCE MARKET
Source: Marcus Hand (Seatrade Maritime News)
With sustainability demand growing maritime is moving towards a global green ship finance market with a major demand expected for retrofit funding, according to KfW IPEX Bank. Speaking at a DNV green ship webinar on Wednesday Stephan Vetter, Vice President, KfW IPEX-Bank. explained that the green loan market was becoming global and that the same applied to shipping finance. Commenting on the green finance trend in general he said: “The green loan market is becoming global. The first green loans were closed in Europe, now more and more green financings are visible in Asia, especially Singapore, and with election of Biden and the new environment strategy of the US the American green loan market is also gaining traction.”  FULL STORY

MARITIME REGULATOR SETS CARBON MEASURES AMID DISSENT
Source: Wall Street Journal
The world’s top maritime regulator has agreed to a plan to cut the “carbon-intensity” of ocean-going vessels, overriding objections from Western countries that the accord doesn’t commit the shipping sector to specific emission cuts. The environmental accord struck at an International Maritime Organization meeting in London late Monday includes steps aimed at pushing shipowners to cut the carbon footprint of some 30,000 ocean-going vessels by 40% by 2030, according to a spokesman for the United Nations regulator, and cut overall emissions by half in 2050, compared to 2008 levels. But as anticipated, the pact set no specific targets, a subject that will not be addressed till 2023.  FULL STORY

DHL EXTENDS SUSTAINABLE MARINE FUEL OPTION
Source: Gary Howard (Seatrade Maritime News)
DHL announced its sustainable biofuels option will be offered on full container loads. The company’s air and ocean freight arm DHL Global Forwarding launched its Sustainable Marine Fuel option for less-than-container loads in January, cutting carbon emissions for shipments by using sustainable biofuels. The option is free and automatically applied for less-than-container loads, but will come at a premium for full container loads. DHL said the carbon saving was made by DHL buying sustainable marine fuels and then matching that to the amount of fuel consumed by a customer’s shipment. The mechanism separates the environmental benefits of the fuel from the physical fuel and removes and physical traceability requirements, according to DHL.  FULL STORY

THE LATEST IN ABS' ALTERNATIVE FUELS GUIDANCE SERIES
Source: The Maritime Executive
Hydrogen is the latest alternative fuel to have its potential for the maritime industry explored by ABS in its industry-leading series of detailed sustainability whitepapers. Sustainability Whitepaper: Hydrogen as Marine Fuel explores the gas’ potential to reduce emissions from shipping, while evaluating its safety, regulatory and design implications. The report also details industry projects utilizing hydrogen and ABS support for its development. Finally, the whitepaper considers the projected role for hydrogen both in the maritime industry and beyond. “While hydrogen appears to be an ideal fuel for power generation, it carries various challenges of advanced storage requirements and fire hazard mitigation.  FULL STORY 

OIL SETTLES NEAR $75, AT MULTI-YEAR HIGHS
Source: Laura Sanicola (Reuters)
Oil prices rose for a fifth day on Wednesday, closing in on $75 a barrel as U.S. refiners drew more crude inventories to ramp up activity and meet recovering demand. Crude inventories fell by 7.4 million barrels in the week to June 11, the U.S. Energy Information Administration said, as refining utilization rose to 92.6%, highest since January 2020, before the pandemic hit. [EIA/S] The inventory draw was stronger than expected, driven as well by exports in another signal of improving demand worldwide. Brent crude gained 40 cents, or 0.5%, to hit $74.39 a barrel, reaching its highest since April 2019, and running its gains to five straight days. U.S. crude rose 3 cents to $72.15, after reaching $72.99, highest since October 2018.  FULL STORY

AUSTRALIA, SINGAPORE PARTNER ON MARITIME HYDROGEN
Source: Argus Media
Australia and Singapore have signed an agreement to collaborate on a A$30mn ($22.8mn) project to support the adoption of hydrogen and other low-carbon fuels and technology in the maritime sector, aiming to drive down emissions in shipping and port operations. Australia is looking to work together with "partners around the world to make clean energy more affordable and reliable", Australian prime minister Scott Morrison said during a visit to Singapore last week. The agreement with Singapore is part of the Australian government's A$565.8mn plan to build new international technology partnerships that make low-emission technologies cheaper and drive investment in Australia-based projects, which are expected to create up to 2,500 jobs. FULL STORY

CHINA’S STEPS TURN IRON ORE INTO WORLD’S MOST VOLATILE COMMODITY
Source: Annie Lee (Bloomberg)
Iron ore, one of the hottest commodities in the early days of the raw materials rally, has now become the most volatile as bulls and bears joust over the trajectory of prices. In a series of wild swings, the ore that fuels China’s vast steel industry surged to a record, collapsed into a bear market and then returned to a bull market in the space of about a month. Its gyrations in the past 30 days mark the mineral as the most volatile of the two dozen most traded commodities around the world. Iron ore is being buffeted largely by confusion over how government policy will affect demand from steel mills in top consumer China.  FULL STORY  

MEGA MINING PROJECT THAT COULD CRIPPLE AUSTRALIA
Source: Ben Graham (News.com.au)
A crazy plan to build a mega mine with a 679km railway through the remote African countryside could spell big trouble for Australia. Among the emerald green mountains of West Africa, a mega mine with a complicated past is threatening to unravel Australia’s winning streak on natural resources. Dubbed the Simandou mine, the massive site in Guinea is one of the largest, highest grade iron ore deposits in the world – having estimated reserves of 2.4 billion tonnes of the stuff beneath the red earth of its exterior. The eyes of the world’s biggest importer of iron ore, China, have lit up at the prospect of exploiting the remote site, but it could spell big trouble for nations like Australia which make big money from exporting it.  FULL STORY

WATERLINE 66 SHOWS PRE-PANDEMIC EFFICIENCY DECLINES
Source: ATN
Major measures going the wrong way, according to container terminal statistics. Many counts of Australian port container terminal efficiency were declining in the lead-up to and during the early months of the Covid-19 pandemic. The Bureau of Infrastructure and Transport Research Economics’ Waterline 66 report released recently should make uncomfortable reading for state and federal transport ministers alike. Average truck turnaround times rose 7.3 per cent in the five ports during July-December 2019, with increases at Sydney (14.9 per cent), Melbourne (9.2 per cent) and Brisbane (4.5 per cent).  FULL STORY

QUARANTINE FOR DARWIN PORT WORKERS A 'BUREAUCRATIC OVERREACTION', MARITIME UNION SAYS
Source: Jacqueline Breen and Isabel Moussalli (ABC News)
The maritime union is demanding the release of 13 port workers from mandatory quarantine in Darwin, disputing the claim by health authorities that the workers breached COVID safety rules. The workers were ordered into quarantine on Friday after what health authorities said were breaches in personal protective equipment (PPE) protocol by staff working the Tacoma Trader container ship after its arrival from Singapore. But the assistant national secretary of the Maritime Union of Australia, Adrian Evans, said the workers were initially told by police the problem was an error by the ship's agent in declaring the number of days the vessel had been at sea.  FULL STORY

AUSTRALIAN AUTHORITIES SEARCH FOR TWO INTERNATIONAL CREW MEMBERS ‘ON THE RUN’ WHO SNUCK OFF COMMERCIAL VESSEL
Source: Emily Cosenza (News.com.au)
Australian authorities have confirmed they are working to find two foreign nationals who fled a commercial ship docked in Victoria. Australian border authorities are searching for two international crewmen who quickly fled a ship that was docked at the Geelong Port. It has been reported that the crewmen were on board the Glorious Plumeria ship that was docked in the port last week. According to the Geelong Advertiser, the duo snuck past security at about 2am on Sunday without permission and were “on the run”. The publication also reported that the vessel docked a few hundred metres from an exit at the port.  FULL STORY

TURBULENT WHITEHAVEN REDUCES GUIDANCE AFTER FOURTH REVISION
Source: Henry Ballard (Australian Mining)
Whitehaven Coal has reduced its production guidance again, with mixed results across its New South Wales operations presenting a cumulative negative effect. Dropping from 20.6-21.4 million tonnes down to 20.4 million tonnes on the 2021 financial year, this production guidance revision is Whitehaven’s fourth of the year. A reduction at Narrabri, 500 kilometres north-west of Sydney, was caused by an “acceleration of engineering works to support the longwall operation,” according to a Whitehaven statement. An undisclosed geological event also affected Narrabri’s uptime, leaving the mine’s expected production at 4.1 million tonnes for the 2021 financial year.  FULL STORY

NEW ZEALAND'S MARITIME SECURITY STRESSED BY RISING THREATS, NEW GOVT STRATEGY SAYS
Source: Thomas Manch (Stuff.co.nz)
New Zealand’s maritime security is “increasingly stressed” by escalating geopolitical tensions, transnational crime, illegal fishing, and rising seas, a new Government strategy says. Among the major security risks within New Zealand’s oceans, described in the new Maritime Security Strategy, are a weakening of the law of the sea, a need to maintain global supply chains, and possible migration due to climate change. And, in what a security expert has called a “signalling statement” about China, the strategy talks of a greater number of countries attempting to wield influence in the Pacific, which may diminish New Zealand’s standing.  FULL STORY 

FIJI NAVY CONTINUES MARITIME SECURITY EFFORTS DESPITE COVID EXPOSURE
Source: Timoci Vula (Fiji Times)
Despite the COVID-19 exposure to some of the personnel, sailors in the Fiji Navy continue to support national efforts in maritime security and safety tasking. The Fiji Navy stated that on completion of the operation Tui Moana last week, the RFNS Savenaca was re-deployed to conduct surveillance and deterrence operations in Fiji’s inshore and archipelagic waters. It stated that Maritime Law enforcement and maintaining presence in support of a multi-agency taskforce in maritime restrictions movement enforcement were the priority the past week.  FULL STORY

CRUISE SHIP TO CALL AT 43 PORTS DURING 117-DAY WORLD CRUISE
Source: Robert McGillivray (Cruise Hive)
AIDAsol cruise ship to call at 43 ports across 20 different countries as part of a 117-day world cruise departing in October 2022. AIDA Cruises, a cruise line under the Carnival Corporation umbrella, released details on its 2022-2023 world cruise. AIDASol will sail on a 117-day voyage that will see the vessel sail to 20 different countries and 43 different ports of call. The World Cruise will set sail on October 26, 2022. The cruise will go on sale with AIDA and travel agents on June 17.  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.