HIGHER fuel prices predicted from President Trump’s decision to scrap a deal with major oil producer Iran are set to continue a trends towards larger box ships, a conference has heard.
In a move that sent political and economic shockwaves around the world, President Trump announced the USA would leave the Joint Comprehensive Plan of Action (JCPOA) aimed at curbing Iran’s nuclear activities.
Victoria International Container Terminal manager of operations Tony Desira talked of the Trump decision as accentuating an existing trend.
“(Trump’s decision) is going to invariably put up fuel prices. You will see it, it will happen over the next couple of months,” Mr Desira told Port Outlook 2018
“What is going to happen with all of this rationalisation with these shipping lines is they are going to be forced to take on some of these vessels that are cascading down the line because it is going to become too cost prohibitive to run small fleets of vessels,” he said.
“It is something that we are ready for at our facility and something definitely to note and watch over the coming months.”
Port Outlook was organised by the Victorian Transport Association and held at the Royal Victorian Motor Yacht Club in Williamstown.
Mr Desira said VICT had “the green light for the larger vessels”.
“We are talking to shipping lines right now for what that means to our economy in Victoria,” he said.
“We can take out past 8500 up to 10,000 TEU vessels. We do have a facility that is ready to cater for larger vessels ready to come into the Port of Melbourne.”