Security perspective: The number of product tankers servicing Australia will increase, despite both the ships increasing in size and the capability of the converted refineries to receive much larger product tankers. This will more than offset the loss of some coastal tankers and provides an increase in the flexibility to respond to domestic supply disruption provided exemptions are provided. Comparison of the Australian maritime supply chain to other locations There is nothing that markedly differentiates the maritime market which services Australia from that servicing other markets. Shipping for the Australian market is drawn from the same pool of tankers that service the maritime market globally. The ships are engaged in the same generic activity where the participants are global in reach, voyages extend to areas outside Asia Pacific as a normal part of trade and the operational and security imperatives remain common. Australia is characterised as being distant from main supply routes. Table 19 examines a range of differences and discusses how these might impact on security. Table 19: Difference with Other Markets Item How manifest in shipping Impact on security market? Availability Australia Availability is not Possibly higher costs where – would become one of the anticipated to be an Owners can exert some larger importers of issue but more term market power finished petroleum chartering may be an product outcome to underwrite perceived availability risk Geography of demand It takes longer to As covered in section 8.8 the chain relatively supply for isolated market does result long compare to Asian domestic disruption in higher cost countries where main May require short Higher stock levels required supply routes are close to notice voyage changes to manage the longer supply refining centres (Japan, to manage disruptions chain Korea, Taiwan, Owners will be asked Investment in required Singapore, India, Middle for options as part of to provide greater ship East) standard contracting flexibility (larger drops) Australian geography Compared to many The ability to use import – lack of internal transport other countries shipping shipping in disruption is a options is a more vital key requirement disruption response mechanism due to lack of inland transport options Domestic shipping regime This is relatively Unknown unusual within
Security perspective: The number of product tankers servicing Australia will increase, despite both the ships increasing in size and the capability of the converted refineries to receive much larger product tankers. This will more than offset the loss of some coastal tankers and provides an increase in the flexibility to respond to domestic supply disruption provided exemptions are provided. Comparison of the Australian maritime supply chain to other locations There is nothing that markedly differentiates the maritime market which services Australia from that servicing other markets. Shipping for the Australian market is drawn from the same pool of tankers that service the maritime market globally. The ships are engaged in the same generic activity where the participants are global in reach, voyages extend to areas outside Asia Pacific as a normal part of trade and the operational and security imperatives remain common. Australia is characterised as being distant from main supply routes. Table 19 examines a range of differences and discusses how these might impact on security. Table 19: Difference with Other Markets Item How manifest in shipping market? Impact on security Availability – Australia would become one of the larger importers of finished petroleum product Availability is not anticipated to be an issue but more term chartering may be an outcome to underwrite perceived availability risk Possibly higher costs where Owners can exert some market power Geography of demand chain relatively long compare to Asian countries where main supply routes are close to refining centres (Japan, Korea, Taiwan, Singapore, India, Middle East) It takes longer to supply for domestic disruption May require short notice voyage changes to manage disruptions Owners will be asked for options as part of standard contracting As covered in section 8.8 the isolated market does result in higher cost Higher stock levels required to manage the longer supply chain Investment in required to provide greater ship flexibility (larger drops) Australian geography – lack of internal transport options Compared to many other countries shipping is a more vital disruption response mechanism due to lack of inland transport options The ability to use import shipping in disruption is a key requirement Domestic shipping regime This is relatively unusual within Unknown
aust-maritime-petroleum-supply-chain-report-2013.docx