International Shipping Outlook Capt. Melwyn Noronha General Manager – Technical Services & Industry Policy, Shipping Australia Limited www.shippingaustralia.com.au
• Consolidation status of shipping lines and its impacts • Digitalisation and technological advancements • Snap shot of global freight rates; • IMO’s 2020 Low Sulphur Fuel and alternative fuel options • Brown Marmorated Stink Bug (BMSB) • Biosecurity Import Levy
Economic Growth Spurs Shipping Demand
Increasing Seaborne trade of Containers
Account for around 93% of the East – West routes 31% 36% 26%
MSC &CMA/CGM Partnership Sept’19
World Box Ship Fleet Update
Established by four shipping lines Maersk Hapag Lloyd MSC Ocean Network Express Main Goal Help the container shipping industry move into the digital era
BLOCKCHAIN • Reduced paper documentation • Eliminates unnecessary delays • Reduced costs • Real-time data • Electronic Bill of Lading
XSI Public Indices published by Xeneta .
World Container Index - Two-year spot freight trend
IMO’s 2020 Low Sulphur Fuel • Availability • Scrubbers – Open loop and closed loop • Transition and Impacts on Engines from the use of compliant fuel oil • Compliance • Bunker Surcharge
Containership demolitions Note: 2019 year-to-date as of 26 April. Source: Drewry Maritime Research
Containership orderbook vs demolitions 2019
Brown Marmorated Stink Bug Impacts on Shipping
Brown Marmorated Stink Bug • Inadequate Policy Consultation, Development & Notification Period • Insufficient global publicity; • Vehicle/Break Bulk cargo policies illogical; • Inspection anomalies /Inadequate record keeping / Inconsistent DAWR interpretations; • Berth congestion and DAWR imposed inspector limitations; • Inconsistencies between Australia and New Zealand
Recommendations for Next BMSB Season • Policy must be to stop infested cargo being shipped to Australia – not try to contain potentially infested cargo on a ship; • Aus/NZ - Alignment of Prevention protocols and treatment requirements for cargo; • Consistent application of inspection regime and practices across all ports of entry in Australia; • Continuous monitoring of compliance and effectiveness of offshore treatment facilities; • DAWR officers must be available and able to conduct vessel inspections 24/7 and to conduct such inspections at a sheltered anchorage; and • Offshore requirements should be commensurate to what we would be willingly to do here in Australia
Biosecurity Import Levy Announced in the 2018-19 Budget Supposed to commence from 1 July 2019 and would be: imposed on all containerised and non-containerised cargo • imported to Australia by sea, except for military equipment imposed on stevedores • set at $10.02 per incoming twenty-foot equivalent sea • container and $1 per tonne for non-containerised cargo one per cent of the current cost of importing a container to • Australia. In the 2019-20 Budget, the levy starting date was revised to 1 September 2019 to accommodate the work of the industry steering committee.
Biosecurity Import Levy Shipping Australia’s Position • All vectors should be included and a risk-based methodology adopted; • where possible, existing collection mechanisms should be employed; eg Full Import Declaration • the point of imposition should be as close as possible to the cargo owners/importers who have created the demand for the import, thereby minimising the scope for cascading as costs are passed through the supply chain; • recommend the use of the Quarterly Business Activity Statement - Greater involvement for the ATO vs other agencies • Concerned about the efficiency/effectiveness of the associated expenditure
Over the Horizon • Speed optimisation and Speed reduction • Autonomous Ships – Yara Birkeland due 2020 • Cyber Security • Internet of Things – Connecting Onboard Systems to shore • Artificial Intelligence • Digital Twin Technology
Shipping Industry at a Glance
“ Let us never forget... there is NO such thing as "Public Money…. ….there is only Taxpayers’ Money” Late Margaret Thatcher (Prime Minister of the United Kingdom, 1979 -1990)
Thank You
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