Competition in West Australia’s grain handling heats up amid new logistics, expansion

Consistently rising wheat output in Australia is creating export opportunities for new entrants, particularly in the grain handling space in the Western region, where the desire for more flexible loading options is driving demand for mobile shiploaders and supporting logistics expansion.

Wheat production in the 2025-26 marketing year (October to September) is currently projected between 33 million-34 million mt, according to trade participants, nearly 27% higher than the 10-year average, based on data from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).

“Crop is going to be very big, especially if we have more rain in September,” said a trade source based in Western Australia.

“Think 12 million mt of wheat is possible for production [in Western Australia],” said another Perth-based grains trader.

For Australia — which exports at least 70% of its wheat production annually except in drought-stricken years — getting a big crop to the export market is a process fine-tuned by years of expertise in grain accumulation, logistics, shipping slots, and marketing, among other things.

Still, the efficiency of wheat exports is highly subject to a factor beyond exporters – the distribution of wheat grades and crop protein levels in different port zones, which can differ substantially depending on the weather.

“Probably around half of the total export capacity across all Australian bulk ports is in long-term agreements [LTAs], but that figure is different when considering useful export capacity. Many port zones do not have sufficient grain at the right time to maximize their export capacity, and inland logistics can be complicated. This basically makes it more complicated to plan exports out of good ports with enough volumes of wheat grades they [exporters] require,” according to a Victoria-based grains exporter.

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85% private participation in key ports by 2030: Sarbananda Sonowal

The government has identified 50 public-private partnerships (PPP) projects worth over ₹60,000 crore, significantly surpassing the original targets of the National Monetisation Pipeline, said Ports, Shipping, and Waterways Minister Sarbananda Sonowal at the Business Standard Infrastructure Summit on Thursday.

The government also aims to raise the share of private participation in major ports to 85 per cent by 2030, he said in his keynote address at the event.

Among upcoming projects, the greenfield port at Vadhavan in Maharashtra will be India’s largest by capacity, with an investment of ₹76,000 crore. It will be developed in phases, to be completed in 2029 and 2037. The Nicobar port project, with a cost of ₹48,000 crore, is expected to be completed over the next decade.

Greenfield port at Vadhavan in Maharashtra with an investment of ₹76,000 crore will be India’s biggest port by capacity when operational, with phases that will be completed in 2029 and 2037. The Nicobar port, costing ₹48,000 crore, will be completed in 10 years.

Sonowal said alternative trade corridors such as the India-Middle East-Europe Corridor (IMEC) and the International North-South Transport Corridor (INSTC) are also being developed to mitigate geopolitical uncertainties.

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US to hold more than 30 offshore oil and gas auctions through 2040

U.S. President Donald Trump’s administration on Tuesday unveiled a comprehensive schedule to hold more than 30 offshore oil and gas lease sales in the Gulf of Mexico and Alaska’s Cook Inlet over the next 15 years.

WHY IT’S IMPORTANT

The plan fulfills a directive in Trump’s One Big Beautiful Bill Act, which passed last month, and is aligned with his administration’s energy dominance agenda to boost domestic fossil fuel production.

The schedule marks a significant departure from former President Joe Biden, whose administration had planned for a historically small number of drilling rights auctions as part of its efforts to address climate change.

KEY QUOTE

“The One Big Beautiful Bill Act is a landmark step toward unleashing America’s energy potential,” Interior Secretary Doug Burgum said in a statement. “Under President Trump’s leadership, we’re putting in place a bold, long-term program that strengthens American Energy Dominance, creates good-paying jobs and ensures we continue to responsibly develop our offshore resources.”

BY THE NUMBERS

The schedule includes 30 lease sales through 2040 in the Gulf of Mexico, which Trump has renamed the Gulf of America.

The first Gulf sale is set for Dec. 10 of this year. Starting next year, there will be two sales in the Gulf annually through 2039 and one in 2040.

Six lease sales are planned for Alaska’s Cook Inlet through 2032. The first will be held in March of 2026.

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China to receive rare gasoil cargo from India amid EU sanctions

China is set to receive a rare gasoil cargo from India, with a 65,000 mt cargo from Nayara Energy heading to Asia’s biggest oil consumer, sources with knowledge of the matter told Platts Aug. 13.

This comes as other global buyers adopt a cautious approach to buying from the Rosneft-backed Vadinar refinery following the EU’s move to impose sanctions.

China typically secures gasoil/marine diesel from neighboring South Korea, primarily for bonded bunkering, Chinese market sources said. The country’s most recent imports from India were in April 2020, at 42,132 mt, Chinese customs data showed.

Although the EU sanctions are set to take effect in January 2026, overseas oil product buyers have been reluctant to purchase from Nayara Energy since the sanctions were announced on July 18.

S&P Global Commodities at Sea data showed the LR1 vessel Em Zenith loaded 509,254 barrels of gasoil at the Nayara terminal in Vadinar and departed July 18. The vessel set Zhoushan, a bunkering hub with storage facilities in China, as its destination on Aug. 12 after bunkering in Singapore.

Sources in India and China said it was unclear whether the cargo had already been sold to an end-user in China or was still being held by a trader.

Zhoushan-based sources from China’s leading state-run oil companies either denied being the buyer or expressed uncertainty about the deal.

One of the Zhoushan-based sources said: “It is more likely to go to small bunker suppliers.”

Alternatively, market sources said the barrels may be stored in the bonded storage facility in Zhoushan.

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Emerging Markets Aid China’s Port, Export Growth amid US Trade Volatility

China’s port cargo throughput rose by 5% yoy in 2Q25, accelerating from 3% in 1Q25, driven by stronger demand from the EU and emerging markets (EMs), which supported higher volumes at both coastal and river ports, says Fitch Ratings. However, the risk of trade volatility remains due to uncertainty over US tariffs.

Export value growth remained resilient at 6.0% yoy in 2Q25, compared with 5.7% in 1Q25. Increased shipments to the EU and EMs – including ASEAN, Africa, and Latin America – helped offset a sharp 23.9% yoy decline in exports to the US following the implementation of tariff hikes in April.

The Shanghai Containerized Freight Index and China Containerized Freight Index declined by 7% and 14% qoq, respectively, in 2Q25. The drops were largely due to an oversupply of shipping capacity, which was intensified by the ongoing trade friction.

Negotiations between China and the US have yet to deliver a long-term tariff agreement, though the current truce has been extended by 90 days beyond the original mid-August expiration. Further extensions could support trade volumes, but the risk of renewed tariffs remains high. We expect volatility to persist in the coming quarters, keeping downside risks to China-US trade volumes elevated.

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Baltic index gains on higher capesize, supramax rates

The Baltic Exchange’s main sea freight index, which tracks rates for vessels transporting dry bulk commodities, rose for a third consecutive session on Friday, steered by gains in the capesize and supramax segments.

* The main index BDI, which tracks rates for capesize, panamax and supramax shipping vessels, added 43 points, or 2.1%, to 2,051 points. The index posted a weekly gain.

* The capesize index (.BACI) was up 138 points, or 4.3%, at 3,343, highest level since late July.

* Average daily earnings for capesize vessels (.BATCA), which typically transport 150,000-ton cargoes such as iron ore and coal, rose $1,140 to $27,716.

* Iron ore futures edged lower for the day but logged a weekly gain, supported by China’s record-high steel exports, robust mill margins, and low inventories.

* Among smaller vessels, the supramax index (.BSIS) added 3 points, or 0.2%, to 1,320. The index registered its sixth straight session of gains.

* The panamax index (.BPNI) was down 14 points, or 0.9%, at 1,635.

* Average daily earnings for panamax vessels (.BPWT), which usually carry 60,000-70,000 tons of coal or grain, fell $133 to $14,712.

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The new energy equation: Why LNG is vital to the future of supply chains

A major trend in the global energy landscape today is the ongoing recalibration of supply chains, driven by shifting geopolitical dynamics. Nations are increasingly recognizing that energy security extends beyond basic supply and demand; it is intrinsically linked to political stability, international relations and economic resilience.

Recent conflicts near major oil and gas producers have exposed vulnerabilities in existing supply chains, prompting urgent reassessments of national energy strategies. The Strait of Hormuz, for example, through which 20% of global oil and a significant share of LNG flows, has once again become a flashpoint. Iranian threats to disrupt this 33-kilometre chokepoint sent freight rates soaring 55% month-on-month, disproportionately impacting price-sensitive South Asian economies such as Pakistan and Bangladesh. Though a temporary ceasefire has provided some relief, it underscores the need for diversified, resilient energy sources.

Liquefied natural gas (LNG) has emerged as a critical buffer in this new energy equation, offering both security and flexibility. It enables rapid response to supply shocks and supports energy transitions by displacing more carbon-intensive fuels like coal. In regions such as South Asia and South-East Asia, home to fast-growing populations and rising energy demands, LNG is playing an increasingly central role.

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London P&I Club warns industry over incorrect loading of jumbo bags

The London P&I Club has renewed calls on ship owners, operators and charterers to address potential risks when loading Flexible Intermediate Bulk Containers (FIBCs) containing dry chemicals. The warning follows a number of incidents reported across the industry including hold fires and cargo damage in bulk carriers and general cargo ships. The issue is particularly common with vessels loading in Chinese ports.

Claims resulting from the incorrect storage and handling of FIBCs, also known as ‘jumbo bags’, can lead to significant claims, the Club notes. The Club also warns that failure to strictly comply with all relevant International Maritime Organization (IMO) regulations and guidance governing the storage and handling of jumbo bags could even prejudice P&I cover.

To help industry to understand the risks associated with incorrect handling and stowage of jumbo bags, the Club has developed a detailed video case study of a fictional bulk carrier MV Calm Sea, which can be used by vessel owners, operators and charterers, crew and port agents as a training resource for identifying risks, liabilities and best practices.

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