Coronavirus to complicate Australian shipping

  • Market: Coal, Coking coal, Metals, Natural gas
  • 04/02/20

The Australian government's decision to impose a 14-day quarantine on vessels that leave mainland China after 1 February bound for Australian ports will cause scheduling issues for Australian energy and mineral shipments.

Pilots, who are used to guide bulk carriers, LNG carriers and other vessels into most Australian ports, and other Australia-based workers will not board vessels that left mainland China after 1 February until they have passed a 14-day quarantine period. This could cause delays for vessels arriving from China to Australian iron ore, LNG, bauxite and other mineral loading terminals in Western Australian (WA), the Northern Territory and far north Queensland, which are usually less than a 14-day journey from key Chinese ports. It may also cause delays for vessels that need Australian reef pilots to navigate the Great Barrier Reef on their approach to coal and LNG terminals in Queensland, as these personnel often join vessels some distance from the port.

Vessels must declare if any of the crew has symptoms, such as a fever, breathlessness or flu-like symptoms. If there is any sickness on vessels from mainland China within the quarantine period, then the quarantine will be restarted for a further 14 days.

The uncertainty created by the possible extension of quarantines is likely to cause particular problems for multi-user ports, like the WA iron ore and lithium concentrate export port of Port Hedland, as well as the coal and LNG port of Gladstone in Queensland. These ports operate complex schedules designed to maximise access to congested channels for multiple users.

Shipping queues are already longer than normal on the east coast of Australia because of increased activity and some difficult weather conditions over the past two weeks. The most northerly Queensland coal port of Abbot Point had 13 vessels queuing today, up from an average of around four, while Gladstone had 27 that is around double its average. The queue outside the adjacent coal ports of Hay Point and Dalrymple Bay Coal Terminal is at 26, which is only marginally above average, while the queue at Newcastle is at an 18-month high of 20 vessels.

By Jo Clarke


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