<article><p class="lead">Iron ore shippers are working to secure their shipping networks after the arrival of a second bulk carrier with several Covid-19 cases onboard at Port Hedland in the pandemic-free state of Western Australia (WA). This is the second such vessel in two weeks.</p><p>The <i>Vega Dream</i> loaded iron ore at Port Hedland for UK-Australian mining firm BHP last week and left the inner harbour on 11 October bound for Qingdao, China. But it is still waiting just outside the harbour after seven of its 20 crew members were diagnosed with Covid-19. This follows <a href="https://direct.argusmedia.com/newsandanalysis/article/2145099">17 crew members</a> from the <i>Patricia Oldendorff</i> bulk carrier testing positive at Port Hedland at the end of September. That vessel, which was loading manganese ore, only left WA on 11 October bound for Indonesia after enough crew were available to operate it.</p><p>Both ships re-crewed in Manila, the Philippines. The WA state government is working with mining firms to find alternate locations to change crews, and with the Philippine government to try to tighten Covid-19 controls at the port in Manila.</p><p>The infection on the <i>Vega Dream</i> has caused a ship's pilot, who guides the bulk carriers into the inner harbour, based at Port Hedland into 14 days quarantine. He cannot work at a time when Port Hedland is running hard and can ill afford to not have such highly trained mariners working. The port shipped <a href="https://direct.argusmedia.com/newsandanalysis/article/2149155">8.6pc more iron ore in September</a> than it did in September 2019 and is 6pc ahead year to date on 2019, driven by stronger demand from China.</p><p>WA is free of Covid-19 cases and has strict border controls, including on visitors from other Australian states. Trade could be disrupted if the WA government mandates that ships not be re-crewed in Manila, with limited alternatives available given the pandemic. This could weigh on a booming iron ore trade out of WA, which is filling seaborne supply lost out of Brazil as it deals with the fallout of the pandemic.</p><p>There are limited jurisdictions where crew changes can occur, notes the chief executive of Australian independent Fortescue Metals, Elizabeth Gains. Fortescue ships through Port Hedland and has not banned particular jurisdictions of nationalities of crew members, but is working with ship owners and operators to ensure safe and efficient crew changes.</p><p>BHP declined to comment on the situation.</p><p>Port Hedland services BHP, Fortescue, Roy Hill, Atlas Iron and Mineral Resources, while Rio Tinto ships out of its own ports in WA's Pilbara region.</p><p class="bylines">By Jo Clarke</p></article>
