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View the PDF Version Print Post Approved PP100007322 Print Post AUSTRALIA The bOx that changed the world Agri exports are all the go thE CAR tRADE’S LASt MINutE RuSh PROFILE ShIP ARRESt MELINDA PAVEY, NSW Minister for Ports WhY INtERNAtIONAL tRADE IS IMPORtANt AUTUMN/wiNTer 2017 Proven l Collaborative l Safe EMPOWERED BY EMPILOT www.brisbanepilots.com.au CONTENTS Autumn / winter 2017 20 26 126 14 02 FROm THE bRIDGE 06 VIEWPOINT Petty politics preventing possibilities 34 08 PROFILE meLinDA PAVeY, new South wales minister for roads, maritime and Freight 12 INTRODUCING CHArLeS mASterS, SAL’s Victoria state secretary 14 THE CAR TRADE Last-minute rush by our car workers is like last dance on Titanic 20 AGRICULTURE Get on the gravy train 22 ECONOmy 22 international trade, it’s important 24 the property market – is the end near? 26 LEGAL 26 Panama accedes to the Hong Kong Convention as ship recycling hits record highs 28 the facts about ship arrests in Australia 32 NAVIGATION Precise positioning technology for Australia’s maritime industry 34 TRAINING Port Ash Australia - Overview 36 THE SCENE 40 44 38 bOOK REVIEW they sang like kangaroos 40 PASSENGER FERRIES 50 Megastar highlights LnG and design 44 ROAD TRANSPORT Heavy hauling and “hidden subsidies” 46 ALC FORUm 2016 Focus: Getting the supply chain right 50 CONTAINERISATION the bOx that changed the world 52 FAREWELL Philip Charles Kelly OAm - a lifetime of service to shipping THE OFFICIAL JOURNAL OF Shipping Australia Ltd Level 1, 101 Sussex Street, Sydney NSW 2000 PO Box Q388 Sydney NSW 1230 P: 02 9266 9911 F: 02 9279 1471 W: www.shippingaustralia.com.au Front Cover: PUbLICATIONS COmmITEE Chairman: Ross McAlpine Car shipping is big Vice chairman: Frank Needs business Executive editor: Rod Nairn Executive assistant: Sharyn Flood Feature writer: Archie Bayvel Graphic designer: Sarah Abrahams E: [email protected] Advertising Co-ordinator: For advertising contact Steve Moxey P: 0400 473 200 E: [email protected] PO BOX 43, Woonona NSW 2517 Shipping Australia Magazine is published for Shipping Australia Ltd by Ontime Publications Ontime Pubications. Autumn / Winter 2017 I Shipping Australia Limited 1 From the bridge what a diference a year makes AroundBy rOD nAirn Am, CeO, Shipping Australiathe Limited to improve cash balances, and now in Australia, has succumbed to they have to deal with the pressure of excessive debt and sold of assets rising charter rates. and parts of their business. there buoy againis still talk of further consolidation northbound container freight rates between box carriers, the cut- from Australia have shown a good throat race to the bottom on rates recovery on the back of a bumper has resulted in unrelenting years agricultural export season. Yet the of losses, and consolidation is the unpredictability of this sector and the fastest means of reducing operating inability, or inability of exporters, to costs and reducing empty slots. make frmow bookingsthat the dustearly has enough settled has Back in 2013 Shipping Australia By ROD NAIRNt this AM, time chief last yearexecutive i was led to afrom much-publicised the Federal shortageelection ofit wasmeanwhile, vocal in the advocating ship building that industry ofcer, Shippinglamenting Australia that Limitedfor most food gradeis certainly 20 foot time containers to re-ignite – or changesremains completely be made to on the its coastalknees. shipping sectors we were N A theat least debate a shortage on how of to these reinvigorate containers shippingthere are regimerecord lowto reduce ship building the experiencing the worst economic thein the use right of placecoastal at the shipping right time.. It regulatoryorders in the burden yards and manythus reduce yards, indicators for shipping in history the situation is exacerbated by some particularly in China, are closing or might feel like going around the barriers to entry to participation and while there were improvements shippers booking the same cargo have already done so. meanwhile buoy again but it is something that in that market. In our response throughout the year, by Christmas on multiple carriers, leaving carriers another problem for the container we as Australian’s can’t aford to to the Governments Coastal it was still hard to be optimistic. in with excess boxes and empty slots, industry is that despite record low ignore. To leave the majority of the Annual review i stated that it’s no wonder that some have been Shippingnew orders, Options capacity Paper is still in increasing2014 interstate freight on our roads and “you have to be an optimist to be forced to introduced a “no-show” weas thehighlighted behemoths that ordered shipping a few was a in shipping”. now, while it’s not railcharge. when i’ve then said is itthe before, opportunity that in for long-termyears ago rollcommitment out of the yards.and that every the the time to be jumping for joy it is a cleaner,competitive greener market and you potentially cannot shippingmonth we industry see another needed headline regulatory of the time to take of the grey tinted cheaperblame carriers option for (which making is thecurrently best stability“largest containerthat could ship only ever”. come the from glasses and admit that both globally beingfnancial incapacitated decision for theirby regulation) business, aJanuary bipartisan leader solution. MSC Oscar at 19,224 and locally the freight markets appear isin prettyfact they close are tolegally criminal. bound There to. So is was surpassed by MOL Triumph at to have turned the corner. in the free,if agricultural unused exporterscapacity forare domestic not willing We20,150 have teu to acceptin march that and the just two dry bulk market the Baltic dry bulk cargoto make on frm container bookings ships for foodalready grade Shippingweeks later Legislation was out boxed Amendment by Madrid index has grown 300 per cent from travellingcontainers between at rates thatour thecapital carrier cities, BillMAERSK tabled 20,565 in the teu.last Parliament But were its record last February, and the thatfnds is acceptable, not being usedthere becauseis no surprise of wentthey really too far, trying? it did in not may, receive the OOCL Shanghai Containerised Freight index thethat cost the carrier of regulatory will market compliance. their 20 bipartisanHong Kong support blitzed theand feld did atnot 21,413 pass is up 100 per cent. On the fip side, Therefoot containers are opportunities and ship slotsfor break to other theteu. Upper if you House. see my So,point, it mightwith all be charter rates for container ships are bulkshippers movements who don’t by require sea, which the costly aroundthe superseded the buoy models again, cascading but that’s a up around 70 per cent, which is good areupgrade lost because to food quality there is– andonly gain one a journeyonto the that lesser we loops, need itto doesn’t take for look the for ship owners but not so good for cargo,better return.and coastal licences require beneftslike the self-inficted of Australian overcapacity manufacturers problem will be over any time soon. container lines who rely on chartering applicationsthe upturn in inglobal blocks markets of fve. has So and primary producers, in order in capacity. As losses have mounted, insteadcome too we late see to oversized save some, escorted and it toBut give even them the punch-drunkeconomic access container to a lot of operators have sold some cargo’sis not limited clogging to Hanjin. up the rickmers, high ways, Australia’sshipping market domestic must markets.be glad that How of their ships on leaseback in order why?a large global operator, albeit not canthey theyare not compete invested with in ofshoreimports ifoil it 2 Shipping Australia Limited II SpringAutumn / Summer/ Winter 20172016 and gas exploration. the bottom will provide longer term regulatory something they haven’t yet delivered. fell out of that one with the collapse stability. minister Chester spoke we are very disappointed to see such of the petroleum price and nothing on his policy aims at a Shipping large increases passed on to users. looks like changing in the near future. Australia lunch in melbourne in April; the Annual Australian Logistics Further uncertainty was injected into we all remain eager to see the fnal Council Conference returned to the American market with President Government proposal now that the melbourne’s iconic mCG in march trump’s executive order to tighten the consultation period has closed. this year. Victorian minister for Jones Act and crack down on foreign A dampener on my upbeat transport, Luke Donnellan opened fagged vessels in the ofshore oil and commentary on the fortunes of the conference, highlighting the new gas industry. However, uS Customs shipping is that we are now amidst initiatives recently announced in the have now advised that they are not the season of port price rises as Victorian infrastructure plan including intending to change the status quo we approach the new fnancial year. the murray Basin rail project and in this regard and uS oil producers, the m80 ring road upgrade but after who were worrying whether they while the price control mechanisms him, the focus of the conference was could continue operations, have now in melbourne have kept rises in line breathed a collective sigh of relief. with CPi and we have seen general unswervingly the national Freight and restraint from private port operators, Supply chain strategy. An overview Of course, the cruise shipping our members are dismayed of the conference is on page 46. industry was the one sector that by excessive price rises from After the weight of logistics industry bucked the trend then, and continues government monopoly providers, argument that was presented in to show annual growth of around whose sole justifcation is to increase support of inland rail throughout 15 per cent, even in Australia.
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