While boxes delay, bulk-exports reach peak levels

Canberra – January 25, 2021

Australia is testing for the first time successfully its export capacity increasing the bulk-exports.

In fact, mobile shiploaders are providing additional clout to south-eastern Australia’s export capacity, and are this year expected to jointly load more than 1 million tonnes of grain for the first time.

With the arrival this month of Cargill’s unit in Adelaide, South Australia now has four mobile shiploaders in operation, while in Victoria, a second larger unit is being commissioned this week at Portland to bring the Victorian total to three.

The Aussie Authorities, invest in infrastructure, and even though these shiploader is a mobile one, are consider to be infrastructure.

With hourly loading capacities of 200-400t, the units are helping Australia to export what is shaping up to be a record monthly tonnage.

Brisbane-based company Mobile Conveyor Services (MCS) builds, supplies and operates most of the mobile shiploaders in use in Australia.

MCS services multiple industries, and a company spokesperson said the company has been fielding increased inquiry about grain.

MCS is in the midst of having its busiest grain season ever.

They expect to do 600,000-800,000t from this harvest.

Other independent operators collectively are small in comparison to the terminal heavyweights like GrainCorp in eastern states, Glencore’s Viterra in South Australia, and CBH Group in Western Australia.

However, they add agility to the market in years like this when shipping stems are heavily booked.

In the past, containers have long played an important part in supplementing the capacity of bulk to export grain, canola and pulses, but since new-crop came on stream in October, the boxed trade has struggled to attain its usual volume.

So, bulk is a much more attractive option price-wise, even if it doesn’t work for every market.

Causes of the container trade’s woes are manifold.

They started with COVID, which hit in the Lunar New Year last January, and disrupted the flow of imports in 20-foot containers, and exports of empty and full containers.

When Covid19 started, empty container parks and holding spaces were chock-a-block with empty boxes.

At the beginning of 2020, the world’s inactive container-ship fleet was about three million 20-foot equivalent units (TEUs) but by this month, that inactive fleet had pretty much returned to work.

All around the world, empty shipping containers have been always in the wrong place.

In the past, they were in the countries that received cargo, like Australia; instead they need to be in the places that send cargo, like China.

But now, is not so more.

Plenty of pulses and cereals are being exported in containers, but any going through transhipment ports are of particular concern as delays are prevalent.

So, while bulk is ideal for most markets, containers do the heavy lifting to some significant Australian markets, including Pakistan on chickpeas and lentils.

Container sales, of course, had been greater if more empty boxes were available, and full ones could be booked with confidence into the export supply chain.

But these are the facts at the time.