Source: John Garnaut, Sydney Morning Herald

COSCO, the world’s biggest shipping line for bulk commodities, yesterday singled out Newcastle’s dysfunctional coal loading systems to explain why iron ore shipping costs have doubled in four months and quadrupled since early last year.

"That’s why in Newcastle there are so many ships; more than 100 vessels waiting for coal," said Yang Shicheng, deputy director of research at the COSCO group. "It is such a bad situation in Australia."

With about one in 20 of the world’s bulk dry commodity ships tied up in a traffic jam at Newcastle on any given day, the average price for hauling ore in a cape-size ship to China has just broken through $US200,000 ($217,000) per day, from an already heated $US100,000 in the middle of the year.

Perversely, Newcastle’s contribution to unprecedented global freight costs has helped lever BHP Billiton into its strongest-ever bargaining position.

Suddenly, it is far more cost effective for Shanghai steel makers to float ore for 10 days over 5000 kilometres from Dampier in Western Australia, than to cart it for 40 days over 20,000 kilometres from Tubarao, Brazil.

He too would like a piece of it: "Collecting this $US30 billion is a marvellous dream."

Traders and conference goers have booked out all 563 rooms at the Shangrila and 626 rooms at the equally extravagant Furama Hotel next door. They are waving mobile phones and openly signing contracts in the foyers and over cups of Chinese tea.

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Posted by Admin on October 31st, 2007
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Posted under: Business | Exporting | Newcastle News

Article By Fayen Wong

SYDNEY, Sept 25 (Reuters) - Australia’s Newcastle port, the world’s largest coal export terminal, will cut producers’ total shipping allocations by a larger-than-expected 2.2 million tonnes in the fourth quarter to reduce vessel queues.

The cut will put further pressure on tight global supplies, with world coal prices already having risen sharply in recent weeks, and may force major importers to look for alternative suppliers.

Total shipping allocations for the Oct-December quarter would fall to about 23 million tonnes of coal after the cut, Newcastle’s operator Port Waratah Coal Services (PWCS) said on Tuesday.

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Posted by Admin on September 26th, 2007
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Posted under: Exporting

Img_0668Author: Gordon Whitehead Date: June 16th, 2007 Source: themarketer

Stranded coal ships, severe flooding and looting in the Hunter valley…

According to BRW’s June edition, export opportunities for Hunter based businesses to Asia have never looked brighter.

Hunter exporters traditional have not looked to India as a destination, but India looks like its going to knock off the US as Australia’s fourth largest non-service export market. Also, Korea moved in to third spot only ahead of the US only a few months ago.

Australia’s top four non-service export markets 2007

Japan $24.6B - China $16.6B - Korea $10B - US $7.3B - India $7.1B

Source: Australian Bureau of Statistics

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Posted by Gordon Whitehead on June 16th, 2007
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Posted under: Exporting