ARIA Commodities

News and Views

ARIA Coordinates Largest Wheat Shipment from Esperance in Five Years

June 16 2022 I News and Views

In a significant logistical milestone, we have successfully coordinated the largest wheat shipment to depart from Esperance in over five years. This substantial shipment, reported by Countryman, marks an achievement in its own right and underscores our growing role in Australia's grain export sector.

The record-breaking shipment, which set a new benchmark for the region, involved meticulous planning and coordination. The trade management team ensured the seamless execution of the operation, from the handling of the grain at the port to its loading onto vessels.

The shipment detailed ARIA AAAX Australia shipping 72,264 million tonnes of Australian Standard White wheat to Vietnam, on board the MV Star Bianca — a 228m-long bulk carrier chartered from German shipping company Oldendorff. Nearly 100 different Esperance farmers contributed grain to the shipment, which had seven holds and was loaded at CBH Group’s Esperance Grain Terminal in less than three days.

ARIA AAAX marketing and trading general manager James Foulsham said it was a milestone for the company, and marked the biggest shipment of wheat to leave the Esperance Port since May 2016. The shipment was just shy of the 72,600Mt record. Chartering such a large vessel gave us a significant advantage on freight,” Mr Foulsham said. “It saved us about 10 per cent compared to a 60,000Mt vessel and 20 per cent compared to a 50,000Mt vessel — which are two of the larger vessel sizes you commonly see from Esperance Port.”

Esperance, a critical port for Western Australia's agricultural exports, plays a vital role in the global wheat market. This particular shipment contributed to WA’s record 26Mt harvest, which significantly beat the prior record of 24.3Mt set in 2021-22. “Esperance Port has been one of the best performing ports in Australia during the past few years,” Mr Foulsham said. “We see it as a significant advantage being able to load such large vessels down there, with Kwinana being the only other port in WA that can take vessels of this size.”

The successful coordination of this large shipment highlights the capacity of local infrastructure and the effectiveness of strategic partnerships within the industry. In part fuelled by the Russian Ukraine conflict, it is testament to the strong demand for Australian grain.