International Shipping Outlook
Capt. Melwyn NoronhaGeneral 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
31%
36%
26%
Account for around 93% of the East–West routes
MSC &CMA/CGM Partnership Sept’19
World Box Ship Fleet Update
Established by four shipping linesMaerskHapag LloydMSCOcean Network ExpressMain Goal
Help the container shipping industry move into the digital era
• Reduced paper documentation• Eliminates unnecessary delays
• Reduced costs• Real-time data• Electronic Bill of Lading
BLOCKCHAIN
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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