World’s largest ocean freight forwarder adds money-back guarantee and carbon offset to what is now considered ‘table stakes’ in ocean freight.
Down Under Trucking: a weekly round-up of trucking news from Australia. The country has been struck by a spate of horrible crashes of trucks with multiple trailers have rolled over. On the corporate side, a major trucking-related hostile takeover has broken out. Politicians in Queensland are seeking to modify the Heavy Vehicle National Law and, on the commercial front, truck sales appear to be coming off the boil from last year’s red-hot market.
The grounding of all Boeing 737 MAX aircraft has caused many problems; it has also created an opportunity for freight forwarders. Read a market expert’s take on the situation.
While tariff fight may not repeat itself, other factors that lead to drayage capacity crisis still in play for shippers this year.
Keelung, Taiwan-headquartered ocean container carrier Yang Ming has announced that it signed charter agreements on April 10 for four box ships of 11,000 TEU with ship-owning specialist Shoei Kisen Kaisa of Imabari City, Japan.
When freight rates are terrible, even a slight improvement seems like an uptick. But a terrible market is still a terrible market. Capesize rates have marginally, slightly, improved… but they’re still dreadful. And the rest of the dry bulk shipping markets are doing their best to impersonate a submarine… they’re all steadily sinking. Ship scrapping that removes some excess tonnage may help rate recovery.
Could this be the year ocean carriers get shippers to pay up? It may be if they want a ‘get-on-the-boat rate’ and not just a ‘paper rate.’
Outlook for U.S. container imports back to normal levels after 2018’s pre-tariff front loading, but with this administration, you never know.
Australian mining giant Rio Tinto has admitted that there was a fire that damaged some of its iron ore export facilities at the port of Dampier last weekend. This story also includes a production losses update, a current cyclone weather update and an iron ore market analysis.
Matilda is a smart transport hub that helps the elderly and the disabled people by providing real-time information on the schedules of their public transportation, mainly targeted at autonomous vehicles of the future.
Around the world, consumers are clamoring for more seafood. Read how airlines and airports are working to move more seafood more quickly around the world.
EXCLUSIVE: a fire at the Port of Dampier has seriously damaged iron ore miner and exporter Rio Tinto’s facilities. Iron ore exports from Dampier are likely to be severely disrupted. Iron ore prices will come under pressure, sources say, adding that dry bulk rates will “fall through the floor”.
Australia’s maritime officials are keeping a wary eye on the oceans around north west Australia as Cyclone Wallace menaces the Pilbara-region coastline. The harbour master for Port Walcott directed that the port be cleared. However, it was a narrow miss for iron ore export facility, Port Walcott, as the cyclone swerved away. And so the harbour master cancelled the direction to clear the port. Iron ore exports are, nonetheless, likely to disrupted. But it’s not over yet as, to the north east of Wallace, a “tropical low” is threatening to build up into a cyclone too.
Shipping conglomerate looking to find its focus as other shipping companies have already focused on core businesses.
Down Under Trucking: a round-up of trucking news from Australia. Top news this week: revealed – how trucks have accidents in Australia; a new in-depth government inquiry into trucking and transport. And, finally, how one truck driver thought he was being pranked… but, in reality, he was winning BIG!
Ports operator Cosco Shipping Ports (CSP) (HKEX: 1199) has agreed to build a 254,000-square metre (2,690,978-square feet) logistics park in the city-agglomeration of Guangzhou, which has a regional population of at least 64 million people. Guangzhou is one of the world’s busiest box ports with a throughput in 2018 of 21.92 million twenty-foot container equivalents (TEU).
Pre-tariff front loading to the U.S. and seasonal slowdown contribute to weakness in ocean freight rates from world’s largest exporter.
Oil giant ExxonMobil (NYSE: XOM) has announced a multi-billion dollar upgrade of its Singapore integrated manufacturing complex to convert more fuel oil and other “bottom-of-the-barrel” crude products into higher value lube base stocks and distillates. The upgrade will also increase the capacity of the facility to produce an extra 48,000 barrels per day (b/d) of low-sulfur fuels to meet the International Maritime Organization’s 0.5 percent sulfur regulation (IMO 2020), which goes into effect on January 1, 2020.
Brisbane, Australia-based construction company Watpac has been contracted to provide design, engineering and construction services to EPIK, a South Korean liquefied natural gas (LNG) developer for the construction and placement of a floating storage regasification unit (FSRU) at the Port of Newcastle in New South Wales, Australia. Watpac is a subsidiary of Belgian multi-disciplinary engineering company, Besix.
Australia’s Competition and Consumer Commission (ACCC) has handed out a smack-down to the three main longshoremen companies in Australia, which were using their oligopoly market power to impose unfair terms on trucking companies. The stevedoring companies involved are DP World Australia, Hutchison Ports Australia and Victoria International Container Terminal.
As the 2018 import overhang lingers for a while, box ship rates may also suffer.
Major Australian miners BHP and Rio Tinto have both revealed that they were adversely affected by the recent category four Cyclone Veronica and that they have suffered iron ore production losses.
Global mega-box port operator China Merchants Port Holdings recorded a 6 percent increase in its world box throughput in 2018 compared to the year before. The Hong Kong Stock Exchange-listed port operator revealed its throughput details while disclosing that it had generated revenues of HK$10.16 billion (US$1.29 billion) in its annual report.
Ports, logistics and finance conglomerate China Merchants Port Holdings announced a massive jump in operating revenues and a rise in profits for the year ended December 31, 2018. Hong Kong Stock Exchange-listed China Merchants, which operates box and bulk ports primarily in China but also around the world, reported revenues of HK$10.16 billion (US$1.29 billion). That’s a 16.9 percent increase on the previous calendar year’s figure of HK$8.7 billion.
OOIL fleet boosts Cosco’s volumes and revenue, but rates were stagnant and high finance costs push profit lower.
Down Under Trucking: a round-up of news, information and the latest developments from the Australian trucking industry. Top news this week is the announcement of a A$2 billion (US$1.4 billion) road safety funding package by the Australian Prime Minister, Scott Morrison. Funding was a big theme this week, as was driver safety, road safety and fatigue.
One of the biggest terminals on the west coast is showing better results after multi-year automation project as final auction nears.
A major iron ore export port with 185 million tons iron ore capacity on Australia’s north west coast has been absolutely clobbered by the recent category four Cyclone Veronica, FreightWaves can exclusively reveal. Port Walcott’s operational ability is down by nearly 90 percent. Rio Tinto has declared force majeure to its customers. Major miner, Rio Tinto, which operates the port, is mostly staying silent. Dry bulk freight rates are likely to be hit, dry bulk sources say.
Italy’s buy-in on major project boost China’s place in world maritime trade, but Western powers decry what some call ‘vanity project.’
OOIL and Yang Ming see better revenue growth, but bottom line results diverge as finance and fuel costs hit results.
Although it’s still early yet, there are indications that Cyclone Veronica may have adversely affected freight infrastructure along Australia’s north west coast – where some of the world’s largest iron ore export ports are located.
It was largely a further slide down the slippery slope for the Shanghai Shipping Exchange’s China Containerized Freight Index, week ending March 22. Rates on nearly all seaborne containerized routes were down compared to the week before. Rates were also largely down on the benchmark containerized routes as compiled by Drewry Maritime Advisors.
All ocean shipping, port and cargo operations remain shut at the world’s two largest dry bulk ports, Hedland and Dampier, owing to the passage of Severe Tropical Cyclone Veronica. Major liquefied natural gas export facilities along the north western Australian coast have also suspended operations. It’s the fourth consecutive day of suspended operations as Cyclone Veronica is moving very slowly. But there could be weeks of delay if Veronica soaks the landscape.
Dry bulk shipping around the northern coasts of Australia has been suspended, ports have been cleared of ships and land side operations have stopped owing to highly unusual circumstances – two very large, very strong, cyclones, Veronica and Trevor, are about to hit Australia near-simultaneously.
Dry bulk shipping around the northern coasts of Australia has been suspended, ports have been cleared of ships and land side operations have stopped owing to highly unusual circumstances – two very large, very strong, cyclones, Veronica and Trevor, are about to hit Australia near-simultaneously.
Slow steaming is potential way for ocean carriers to meet higher costs of IMO 2020, but it carries risk of further service degradation.
International terminal mega-operator, DP World, has announced a solid set of results for 2018. Revenues, earnings before interest taxation depreciation and amortization (EBITDA), and net profit all substantially increased last year compared to 2017. Acquisitions and increased box volumes drove revenues and profits. DP World has announced investment plans for 2019.
Biofuels created by recycling used cooking oils are being tested by ocean-going ships in pilot trials around the world. Such biofuels may even be gaining acceptance by ocean-shippers, freight forwarders and ship operators.
International oil major BP has announced that it will retail a new very low sulfur fuel oil following successful sea trials, however, it has not released a date when sales will begin. The fuel will have a maximum sulfur content of 0.5 percent and will be sold by BP around the world. BP is one of several refiners, such as Shell and Sinopec, that are offering or are researching low-sulfur fuel.
Panelists discussed current market data and how the TCA educates its members to operationalize data in their businesses.
Big ships come to U.S. even as backhaul cargoes still lacking, and truckers deal with terminal shut-outs and chassis imbalances.
Down, down, down – freight rates are down, nearly across the board, on export and import routes to and from China, according to indices published by the Shanghai Shipping Exchange.
International Container Terminal Services (ICTSI) has released solid results for 2018. The port and terminal operator, which is headquartered in Manila, Philippines, had an up-up-up 2018 compared to 2017. ICTSI’s box volumes were higher, revenues increased and the group generated higher profit.
Member of THE Alliance is latest ocean carrier to experience financial difficulty amid a still volatile rate environment.
Trade ministers from Indonesia and Australia signed a new free trade agreement (FTA), the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), in Jakarta, Indonesia, on March 4. The new agreement eliminates nearly all tariffs on the two-way trade in goods between the two nations. A wide variety of non-trade barriers will also be removed.
Export weakness, geopolitical uncertainty weigh on demand.
A maritime labor-supply demand gap is opening up in Australia as its marine workforce is old and getting older, according to a new report from local domestic trade association Maritime Industry Australia. Worse still, there are fewer and fewer young people entering the local maritime industries.
Freight rates for biggest ships fall below those of smaller ships, but that is set up for rebound, market experts say.
Soren Skou said biggest ocean carrier is more customer-centric than ever, but vessel reliability and detention fees still a pain for customers.
Biggest trade lane into North America saw price surge last year that may not ease up much as double-digit increases seen in rates for 2019.
GrainCorp, an agribusiness and bulk-ports operator, has agreed to sell its Australian bulk liquid terminals business to independent bulk liquid storage company, ANZ Terminals, for about AUD$350 million (USD$248 million).
Refineries and supply chain not ready for ocean shipping’s uptake of new fuel; even heating oil prices possibly in play during election year.
Liner alliances in a quandary about what to do with largest capacity ships as cancelled port calls increase to deal with capacity glut.
In announcing of giant revenues and super-massive dividends, Australian mining colossus Rio Tinto delighted markets, shareholders… and maybe even roboticists too!
Australian miner Rio Tinto generated over US$12 billion (all figures in U.S. dollars) from its bauxite, alumina and aluminum production in 2018. It predicts about 67 million tonnes production of bauxite, alumina and aluminum this year. These minor bulk commodities are significant seaborne cargoes.
Political tensions in the Washington-Beijing bilateral relationship are making the China-based U.S. business community uneasy. Tariffs are being blamed for driving business confidence down, decreasing investment and for re-routing Asia-Pacific supply chains.
A series of company earnings from New Zealand shows that the international maritime trade to and from the Pacific archipelago is largely strong, especially for the bigger ports, but the smaller ports have experienced some downturns in trade.
Worldwide customs and logistics software provider WiseTech Global has today announced the acquisition of Containerchain, a provider of a shipping container tracking and managing systems for AU$92 million (just over USD$65.8 million) in cash.
Global logistics player, Toll, has officially launched two new roll-on, roll-off (ro-ro) ships for the carriage of trucks and containers across the Bass Strait between mainland Australia and the island of Tasmania. The first commercial sailing begins in a few days on March 1. FreightWaves reviews the vessels in detail, describes the local wharf upgrades and analyses the Bass Strait trade.
Read on economy from container data does not indicate slowdown yet in cards for global trade.
Widespread jitters in the Australian political and business communities that China may have banned imports of Australian coal now appear to be unfounded. Customs clearance delays at Dalian are happening owing to entirely “normal” reasons and coal cargo can be re-routed around a given port anyway, coal mining and coal transport executives have explained to FreightWaves.
Sydney-headquartered multi-modal logistics operator Qube has announced “solid” company earnings today. ASX-listed Qube revealed a small 5 percent increase in revenues and a large 36 percent increase in profits.
Sydney, Australia-headquartered customs and logistics software provider WiseTech Global yesterday released details of massive increases in revenues and profits. ASX-listed WiseTech reported that total revenues increased by 68 percent.
Flinders Ports, South Australia, had a mixed bag of containerised cargo throughput results in 2018 compared to 2017, new data analysis shows. Overall containerised throughput – which includes imports, exports, empties and boxes in various configurations – was essentially flat.
Brambles, a supplier of reusable pallets, crates and containers for the supply chain industries, recorded strong revenue growth but its profit was much lower in the first half of its financial year, according to results released to the Australian Stock Exchange.
An Australian court has refused permission for the creation of a coking-coal mine in New South Wales on the grounds that it would adversely contribute to greenhouse gas (GHG) emissions and would set back the fight against climate change. Legal scholars are hailing the decision as a “hugely significant” ruling.
Longshoremen working for DP World Australia (DPWA) are fired up over an alleged threat to their income protection insurance. That benefit was granted to them by the company three years ago in the last round of negotiations for a collective employment contract known as an “enterprise agreement”.
Every three years each of the stevedore companies enter into a protracted and bitter dispute with the local longshoremen’s representative body, the Maritime Union of Australia. This short article explains how and why.
Wharfies are eyeing strikes at DP World Australia in pursuit of better terms and conditions in their next collective employment contract. Asian maritime shipping schedules and landside Australian logistics timetables could be thrown into disarray.
Baraja raised U.S.$35m on the back of its ability to use lasers, prisms and the colors of the rainbow to grant sight to machines. It’s a critical step on the path to helping vehicles drive themselves. Photo – Shutterstock.
Leading dry bulk operator lists out upsets in iron ore and soybean trade as shipping rates slide on weak China demand.
Australian Stock Exchange listed bulk rail freight operator Aurizon reported decreases in top-line revenue, earnings before interest, tax and depreciation, and a big decline in net profit after tax on February 11, 2019.
A noticeable change in the pattern of trade is underway at Australia’s second biggest box port, Sydney’s Port Botany. Botany handled more boxes in the last calendar year than in 2017 – but those boxes arrived and departed on fewer, although larger, container ships.
Queensland’s Port of Brisbane handled just under 1.4 million twenty foot equivalent unit (TEU) shipping containers in the last calendar year. Just under 29 per cent of all boxes handled were empty, according to the port’s trade statistics.
Rail operator Aurizon has completed the sale of its Queensland Intermodal Business to privately owned Australian logistics company Linfox. The Queensland Intermodal Business delivers general cargo for more than 300 customers across the state and includes a wide variety of freight including groceries, white goods and general goods.
Record-breaking year also showed strains in supply chains as busiest U.S. East Coast port.
Australia’s busiest box port, the Port of Melbourne, broke the three million mark in handling twenty-foot-equivalent unit (TEU) shipping containers in the last calendar year. It is likely the first time that any port anywhere in Australia has handled three million TEU in any twelve month period whether that’s on a running month, financial year, or calendar year basis.
An industrial dispute between the local longshoremen’s union, the Maritime Union of Australia (MUA), and stevedoring company, Hutchison Ports, is intensifying. A one day strike is now taking place.
It’s a growth story at Western Australia’s main container port, Fremantle Ports (Freo), with just under 10 percent growth of international shipping container traffic in the last calendar year. Stevedoring at the port is also up for tender.
Overall cargo volumes on Australia’s air routes have increased, according to the latest data from the federal government’s Bureau of Infrastructure, Transport and Regional Economics.
Australia is experiencing growth in volumes of inbound international air cargo, new official figures show. Freight volumes from overseas airports to airports in Australia grew by 7.3% in the year ended November 2018.
New Zealand’s Ports of Auckland has been conditionally granted funds to buy hydrogen fuel cell vehicles as part of a wider project to build a hydrogen fuel production plant. That second project, in turn, is part of a bigger project to transform New Zealand into an electricity-powered economy.
Additional pipeline capacity from West Texas means filling bigger ships with crude oil; New Zealand steering away from carbon economy.
Dam collapse could pinch amount of ore heading to water; container crane falls on ship in Canada; Australian port tries to go clean.
One of the world’s largest coal export ports, the Port of Newcastle in New South Wales, Australia, has announced it is committing to the EcoPorts global environmental and sustainability standards.
A high-level review of road safety governance has begun in Australia.A lack of road safety carries a terrible toll in lives and injuries in Australia
Australia’s National Heavy Vehicle Regulator has warned that grot and grime can obscure damage to parts during visual inspections; fatigue fractured leaf springs caused the death of truck driver Stephen Ross Brown.
Trucks and truckers are baking in the extreme Australian summer heat, which is nudging the 122 F (50 C) in certain parts of the country for days at a time. (Photo: Shutterstock).
Australia’s Heavy Vehicle National Law has been heavily criticised for being too bureaucratic, prescriptive and generally difficult to work with. A major review has been announced.
Slowdown headed for U.S. import volumes as largest exporter sees economy weaken ahead of prolonged holiday.
Playing pass the parcel is fun when you’re a little kid. It’s less so when the parcel is a great big bill that you’re being stiffed with as a side effect of a fight between longshoremen and their employer.
The sun is setting on the Australian shipping register as ship operators abandon the local coastal trading regime. Ship operators are fleeing the flag following the 2012 reforms.
Plus: Skewering Theresa May, B.C. rail investigations, California clean air program assessment
The advent of modern communications technology such as, obviously, the mobile phone, has created a new, yet poorly understood and under-researched, form of driver distraction. Australian road authorities are calling for research and are updating their road rules.
Rolling strikes by workers at the Hutchison Ports Australia box terminals in Sydney and Brisbane started at 6:00 a.m. (Australian Eastern Standard Time) yesterday January 17 and are causing logistics chaos.
Infestations of the brown marmorated stink bug found on ships en-route to Australia are causing havoc with local supply chains. Bugs are breeding, ships are re-routing, trucks are idling and supply chains are collapsing.
U.K. votes down Brexit deal, leading to more uncertainty on rules for freight forwarders; stowaway bugs bug Australia.
Auto parts imports could take a hit as vehicle sales slow; Japan makes its own play for African port supremacy.
Australian livestock haulers will greatly benefit from a programme of livestock-haulage related road upgrades in Northern Australia. Road investment decisions have been informed a massive transport research and simulation project by the national scientific research agency.
Downhill driving presents particular safety risks to truck driving. Australian law requires truckers to shift to a lower gear and not use the primary brake for the descent. National telematics body Transport Certification Australia has launched a new app that records the details of the descent for the purposes of improving safety and creating an audit trail. (Photo: Shutterstock).
