Weekly edition 7 July

Port Otago expansion gets the green light

DESPITE facing public opposition, Port Otago has been given the green light for its proposed Next Generation project by the Otago Regional Council.

Forum hears expert opinion on scourge of cargo liquefaction

LIQUEFACTION of iron ore and nickel ore are “poorly understood” and widely ignored as a danger to ships and crew.

Dredging operations are underway in Gladstone

GLADSTONE Port’s (GPC) dredging and disposal project has begun in the Western Basin of Gladstone Harbour.

FA ombudsman prosecutes over underpayment

TWO overseas companies, one Australian-based company and one company director are alleged to have short changed four Filipino marine painters to the order of $120,000.

New shipping terminal shaping up for Timaru

HOLCIM New Zealand (HNZ) is seeking contractors to build a shipping terminal at Prime Port Timaru and a cement plant at Weston, despite awaiting final approval from parent company Holcim.

Victoria’s ports minister interviewed: his vision, its source and direction

Dr Denis Napthine has been Victoria’s ports minister for just over six months. In that time he has announced plans to fast-track development of the port of Hastings and is set to release a report into moving car imports from Melbourne to Geelong. DAVID SEXTON asked Dr Napthine about his background, his vision for Victorian ports and the other big issues of the day

Esperance, MUA to meet over new wage agreement

FURTHER strikes by Esperance Ports wharf workers have been put on hold pending a meeting between the port authority and the Maritime Union of Australia (MUA) to discuss a revised wages offer.

Review set to reassess Oakajee project funding

ROTHSCHILD and O’Sullivan Partners have been appointed to help Murchison Metals with its strategic review as the company pushes ahead with plans to build the $6bn Oakajee port and rail (OPR) development in Western Australia.

New NSW ports minister marks out his priorities

DUNCAN Gay, the new NSW minister for roads and ports, has been warmly welcomed into the role by the local maritime industry.

Fighting the ‘War Against Workers’ – progressing the union response through the global supply chain

STRONG leadership is needed in the global supply-chain organising sphere and the Teamsters can help to show this leadership by working with the International Transport Workers’ Federation (ITF).

Las Vegas speech to US Teamsters convention by the ITF’s current president Paddy Crumlin

Good morning Brothers and Sisters of the Teamsters. I am honoured to bring you greetings from the International Brotherhood and Sisterhood of the Transport Workers of the ITF . . . some from Australia, Great Britain, India, Mexico, and South Africa in the hall today.

Chinese soyabean appetite rising

CHINA’S soyabean imports are the country’s “big growth story” and are set to rise over the next few years, benefiting dry bulk shipping because of high tonne-mile demand, according to Paragon Shipping chief executive Michael Bodouroglou.

Australia and Brazil capesize callings boost employment

THE NUMBER of capesize bulk carriers over 120,000 dwt calling at Australian and Brazilian ports each month in the year to date has increased by around a quarter.

Markets this week 7 July 2011

Slow rally in capesize rates predicted to continue

Unpacking greater volumes of world trade

Volumes of all Australian exports are forecast to increase in 2011/2012 excluding wool, according to the just released June quarter 2011 ABARES report on Australian commodities.

Metals and minerals looking strong even as Europe, US struggle to clear financial sloth

Steel and steel-making raw materials

Industry still chipper despite forest cutbacks

DESPITE a reduction in the volume of native forest woodchip being harvested, ABARES author Philip Townsend says Australia’s capacity to supply woodchips to the markets of the Asia-Pacific region is increasing, thanks, not least, to an increase in the harvest from plantations.

Climate hiccup but pick-up seen in pipeline

ACCORDING to ABARES researchers Alan Copeland and Rubhen Jeya, the thermal coal trade is forecast to increase in 2011 and 2012, underpinned by growth in imports by China, India and the European Union.

Changing crops market and the forces of nature

Wheat

Cotton, wool for soft landing in the Asian sector

AUSTRALIAN cotton exports are forecast to more than double in 2011/12 to a record 965 000 tonnes. ABARES says the forecast increase is driven by the expected increase in production and continued strong export demand. Author Benjamin Komla Agbenyegah says: “higher exports are expected to move Australia to third place in the ranking of world cotton exporters, behind the US and India in 2011/12.”

Smaller bulkers in demand from emerging countries

DEMAND for smaller dry bulk carriers is forecast to grow over the next few years on rising dry cargo consumption and exports from emerging economies that lack port infrastructure to handle larger vessels.

July MEPC meeting is hailed as make-or-break for energy index

JULY 15 is a Friday. It will become an important day for the International Maritime Organization as this is the day when its next Marine Environment Protection Committee (MEPC) comes to a close, having either agreed on measures to reduce shipping’s CO2 emissions, or completely failed to pull together to find any kind of consensus on the topic.

Radical bulker concepts ready for the upturn

THE CURRENT market downturn has provided shipowners with a valuable opportunity to develop new vessel design concepts ready for the next run of orders, according to class society DNV’s bulk carrier business director Michael Aasland.

Maersk to penalise container no-shows

MAERSK Line has seen a big decline in container no-shows or late-booking cancellations since piloting a scheme aimed at penalising customers for breaking firm cargo commitments.

Shanghai container trading screen off to strong start

SHANGHAI Shipping Exchange (SSE) officially launched a revolutionary electronic container freight derivatives platform last week.

Seaspan signs up for seven boxships

NEW York-listed Seaspan has signed the first order in what promises to be a huge investment in new containerships.

Brokers set to cover tankers calling at rebel Libyan ports

INSURANCE is readily available for tanker operators prepared to load at insurgent held ports in Libya, Lloyd’s market sources confirmed yesterday, albeit with indications that the additional premiums demanded are likely to vary widely.

Basra to up oil export capacity

IRAQ is planning to build two marine pipelines and one onshore pipeline and install four single-point moorings (SPMs) for loading oil tankers at its southern Basra oil region, at a total cost of US$1.3bn, deputy prime minister Hussein al-Shahristani has told Reuters.

World’s ports will need US$830bn for infrastructure by 2020 says OECD

PORTS worldwide need to find US$830bn capital expenditure for infrastructure by 2030, according to a new report by the Organisation for Economic Co-operation and Development.

Casualty briefs 7 July 2011

Maritime

India now considering armed guards on flag cargo vessels

THE INDIAN Government is considering whether to allow armed guards on India-flagged cargo vessels in an attempt to deter pirates, said a report on the livemint news website, quoting an executive of a state-owned shipping line.

Somalia decides to pardon six jailed ransom couriers

SOMALIA has freed six foreigners, including three Britons, two Kenyans and an American, convicted of illegally bringing money into the country to pay ransom cash to pirates, according to wire reports.

Bank pessimistic on Asian container lines

MALAYSIAN investment bank CIMB has become the latest house to take a dim view on the container sector ahead of what is expected to be a weak third quarter for freight rates.

Hanjin confirms big order

SOUTH Korea’s Hanjin Shipping has confirmed it will spend Won923.6bn (US$846m) to build five 13,000 teu containerships for delivery beginning first quarter 2012 through 2013.

China set to enter Greek ship finance

CHINA Development Bank (CDB) is on the verge of formally joining forces with Greece-based Aegean Baltic Bank. It is a move seen as key to unlocking a pledged US$5bn in finance for Greek shipowners.

Looking back to NZ’s first boxship that started a seafaring revolution

Forty years ago a distinctive red-hulled ship called Columbus New Zealand berthed at Auckland’s Fergusson Wharf on its maiden voyage at sunrise on June 23, 1971.

Five years ago: tales of fatigue, ageism and hijacking

FATIGUE, ageism, hijacking and mysterious disappearances featured strongly in five years ago in Lloyd’s List DCN.

Wärtsilä playing a waiting game over scrubber orders

Engineering firm wants to boost production but reluctant owners continue to voice concerns over suitability of product, despite lengthy tests, reports CRAIG EASON

Brazil bans shore leave for foreign seafarers

BRAZIL’S immigration authorities have banned seafarers from many of the world’s leading labour supply countries from taking shore leave or even from leaving their ship.

Be prepared for rule changes on CO2, shipowners warned

SHIPOWNERS should start planning now for the new regulations due to come into force in 2015 requiring sulphur levels in marine fuel used in Emission Control Areas to be cut to 0.1% and should not rely on an assumption that implementation might be postponed or amended.

At full speed to design more efficient ships

Before the International Maritime Organization rushes into EEDI regulation, it should consider as a first step the mandatory publication of speed-fuel curves, writes NIKO WIJNOLST

The document that dooms US port security to fail

The Transportation Worker Identification Credential has now been damned in detail by Congress auditors, writes JOHN AC CARTNER