News & Media

03 September, 2021

Australian Newsletter - Issue 694

DECARBONISATION AND CONTRACTS IN THE WORLD OF INTERNATIONAL MARITIME TRADE
Source: Haris Zografakis (Stephenson Harwood LLP)
There is so much discussion about the regulatory side of maritime decarbonisation. And there is so much complaining about uncertainty and about the need for clarity and certainty.  As if the future can be known and all that is needed is to have it laid out on a map – neatly organised, defined and preordained by this government or that international organisation. One wonders how much certainty there was when steam started replacing sails, and fuel oil started replacing coal. Unlike other regulatory areas (pollution, safety), decarbonisation is a journey on an uncertain course and with an unclear destination: percentage reduction or net zero? FULL STORY  

HOW COULD ALL THE WORLD’S SHIPS NOT BE ABLE TO DELIVER OUR CHRISTMAS GIFTS ON TIME?
Source: The Sydney Morning Herald
When the 400-metre long, 220,000-ton container ship Ever Given got stuck in the Suez Canal in March, shipping was thrust into the limelight. We don’t normally pay much attention to sea lanes but the Suez snarl, which lasted for six days, underscored how dependent we are on the maritime arteries of international trade. By blocking the busy shipping lane that connects Asia and Europe, the prone vessel halted the passage of almost $10 billion worth of seaborne traffic per day – around $400 million each hour. At any given moment, tens of thousands of commercial vessels are plying the world’s oceans, the unsung heavy-lifters of the global economy. FULL STORY

CONTAINER SHIP ORDER BOOK DOUBLED UP IN 2021
Source: Peter Sand (BIMCO)
2021 is a spectacular year in container shipping. Freight rates are record high, more cargo than ever before is shipped on the transpacific trade lane specifically and globally in general, and the previous annual record on new orders for container ship capacity has just been breached – in less than eight months. 619 container ships are now on order for future delivery, 381 in 2021 alone, and never has 3.44m TEU being ordered in such a short time span. Still, it’s not a record for the total orderbook, as 6.8m TEU were on order by the end of July 2008, compared to 5.3m TEU today. FULL STORY

LNG SHIPPING STOCKS: UP INDEX ADDED OVER 8%
Source: UP-Indices.com
The UP World LNG Shipping Index, the world’s only stock index focused on LNG companies, gain 8.96% last week. US stocks represented by the S&P 500 Index gain 1.52%. Only two of all 17 companies and partnerships included in the UP Index did not grow last week. Thanks to this, the UP Index recorded a very strong weekly growth of over 8%. Our assumption that Asian stocks did not manage to respond to the US Friday afternoon growth 14 days ago was confirmed. The three Japanese companies NYK Line (TSE: 9101, + 14.4%), MOL (TSE: 9104, + 21.4%) and “K” line (TSE: 9107, + 16.6%) grew the most. GasLog Partners (NYSE: GLOP, + 13.5%), Awilco LNG ASA (OSE: ALNG, + 14%) and Golar LNG Limited (NYSE: GLNG, + 10.1%) were not left out either. FULL STORY

SHIP OPERATING COSTS UP 773%, DEMAND UP, SUPPLY UP, CONGESTION UP, SHIPPER PROPAGANDA UP
Source: Shipping Australia Limited
Current market conditions are caused by a huge surge in the demand for container transport. On the supply side, box port congestion and poor container port performance are reducing the supply of shipping. The costs to operate a ship are massively escalating. COVID has induced a demand-squeeze. In such a squeeze, demand increases massively and rapidly while supply (which involves the physical building of, and relocation of, tangible assets) can only take place slowly. If demand spikes while supply adapts slowly then prices will inexorably rise. This is basic economics. FULL STORY

LISCR PARTNERSHIP TO DEVELOP LIQUID CARBON DIOXIDE CARRIERS
Source: Hellenic Shipping News
POSCO, Hyundai Mipo Dockyard, Korea Shipbuilding & Offshore Engineering, Lloyd’s Register and the Liberian International Ship & Corporate Registry jointly develop Liquid Carbon Dioxide(LCO2) Carriers to preoccupy carbon neutral market according to the transition to the hydrogen age. With the global trend of carbon neutrality and the transition to ESG based hydrogen age in the future, the needs for technologies related to carbon dioxide capture, storage and recycling is growing. In particular, according to a report by the International Energy Agency in 2020, up to 40 million tons of CO2 is captured annually, and most of it is permanently stored in the geological formations or re-injected into oil wells to improve oil recovery. FULL STORY

PATRICK TERMINALS SELECTS HPE GREENLAKE TO REINVENT HOW SHIPPING CONTAINERS MOVE FROM SHIP TO SHORE
Source: AIT News Desk (AIThority)
Hewlett Packard Enterprise announced Patrick Terminals, Australia’s leading container terminal operator, has selected the HPE GreenLake edge-to-cloud platform to provide next-generation IT in an as-a-service model to bring new levels of automation and agility to its terminal operations in Australia. By leveraging the HPE GreenLake platform and HPE compute, storage, networking, and services, Patrick Terminals runs their mission critical applications in a private cloud with an as-a-service operating model, combining the agility and economics of the cloud with the security, compliance and performance of on-premises IT. FULL STORY

CHINA’S ‘AGGRESSIVE’ NEW MOVE TO AUSTRALIA CAUSES MASSIVE DROP IN IRON ORE PRICE
Source: Alex Turner-Cohen (news.com.au)
China said it wanted to cause “pain” to Australia and now it has acted on that promise in another major blow to an industry contributing $136 billion to our economy. September isn’t off to a good start with Australia’s iron ore taking a hammering after prices plummeted by 6.7 per cent to $US143 ($194) a tonne overnight. That’s a 40 per cent drop since the commodity’s all-time high in May when prices soared to a record $US237 ($317) a tonne. It shows that Australia’s iron ore industry — which is predicted to contribute $136 billion to the country’s economy this financial year — is finally starting to feel the squeeze from communist China. FULL STORY

PORTS AUSTRALIA URGES GOVERNMENTS STEP UP EFFORTS TO VACCINATING INTERNATIONAL SEAFARERS
Source: Ports Australia
Ports Australia is calling on governments around Australia to consider how they can contribute to increasing vaccination rates of international seafarers after Maritime Safety Queensland and QLD Health announced a trial program to begin in coming weeks. Seafarers by the hundreds of thousands have remained stranded onboard ships throughout the COVID-19 pandemic due to the significantly hindered ability to conduct crew changeovers or take shore leave. While the situation is gradually improving locally and internationally, there are still vessels arriving in Australia with COVID-19 onboard meaning vaccination of seafarers must be a top priority to ensure their safety, the public’s safety, and continuity of trade. FULL STORY

63 RECOMMENDATIONS IN REVIEW OF THE VICTORIAN PORTS SYSTEM
Source: Lauren DeLorenzo (Infrastructure Magazine)
The Victorian Government has addressed recommendations for the future of the state’s ports outlined in the Independent Review of the Victorian Ports System, setting out three main areas of action. The key areas of focus are establishing Ports Victoria, creating Ports Victoria’s legislative charter, and outlining key reforms, including pilotage and towage services. The three outcomes were developed based on the 63 recommendations from the Independent Review of the Victorian Ports System, the first holistic review since 2001. FULL STORY

AUSTRALIAN ENERGY RETAILER, JAPANESE OIL REFINER TEAM UP ON GREEN HYDROGEN
Source: Natalie Filatoff (PV Magazine)
Origin Energy, Australia’s biggest energy retailer, has agreed to team with Japan’s largest oil refiner, Eneos, to explore the potential for a commercial-scale green hydrogen supply chain between their respective home markets. Australian utility Origin Energy and Japanese energy giant Eneos have revealed that they will jointly explore the feasibility of producing green hydrogen made with wind and solar energy in the Australian state of Queensland. They will also look at establishing a supply chain, including the possibility of exporting green hydrogen from Australia to Japan. FULL STORY

ACUTE CONTAINER SHORTAGE COULD HAVE 'DEVASTATING' IMPACT ON BUSINESS
Source: Chris Tobin (stuff.co.nz)
An acute shortage of refrigerated containers should be the country’s most important priority, alongside the response to the Delta variant, Venture Timaru chief executive Nigel Davenport says. “It’s critical. At the very heart of our economy is the fact we are an import/export country which is dependent on our ability to import what we need, but as importantly export our food and other products to our global markets. “We need to urgently address the critical issue of sourcing refrigerated containers, reefers, so our food processing and manufacturing sector can get their products to their global markets where demand has never been greater,” Davenport said. FULL STORY

COVID-19: MATTINA OUTBREAK COULD HAVE 'SHUT INVERCARGILL AND BLUFF DOWN'
Source: Louisa Steyl(stuff.co.nz)
A highly infectious strain of Covid-19 was contained aboard the MS Mattina, off the coast of Southland, for a whole month, thanks to the efforts of "dozens of dozens” of people. Dr Michael Butchard recalls a racing heart and the thought: “This is real.” The highly infectious Delta variant of Covid-19 had arrived in Southland aboard a cargo ship and officials would need to balance the health needs of the infected crew without the virus escaping into the community. FULL STORY

UNION PRESSES CASE FOR RETAINING FUEL TANKERS AFTER MARSDEN POINT REFINERY CLOSURE
Source: RNZ
The Maritime Union said it is important the country's two fuel tanker ships are retained to ensure energy security when the Marsden Point refinery closes.
It said the proposed change of the refinery from a processing to an import storage facility raises questions as to how fuel will be delivered to New Zealand ports. The New Zealand flagged ships, the MT Kokako and the MT Matuku, are owned by Silver Fern Shipping Limited and chartered to Coastal Oil Logistics Limited (a joint venture by BP, Z Energy and Mobil), which transport fuel products from Marsden Point to regional ports. FULL STORY

VIKING ANNOUNCES TWO PARALLEL DEPARTURES FOR NEW 2023-2024 WORLD CRUISE
Source: Travelweek Group
For the first time in its history, Viking will be offering a choice of two departure dates for its new 2023-2024 Viking World Cruise. Spanning 138 days, the epic voyage will visit 28 countries, call in 57 ports and stay overnight in 11 cities. Guests can choose to sail either on Viking Sky, which will depart on Dec. 20, 2023 from Ft. Lauderdale, or on Viking Neptune, which will depart Ft. Lauderdale on Dec. 23, 2023. Both ships will sail the identical itinerary in parallel. 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.