Transport industry “extremely concerned” over short-term AdBlue supply before on-shore production ramps up

The State’s transport industry is “extremely concerned” about short-term supply of AdBlue as bulk tanks run low and sporadic shortages cause headaches for drivers carting essential freight across the country. The global shortage of the diesel engine additive has also hit companies hard at the hip pocket, with the price skyrocketing to more than $2.50/L from less than $1/L just months ago. An agreement between the Federal Government and Brisbane-based fertiliser company Incitec Pivot Ltd to manufacture the product on-shore is set to bolster stocks and ease pressure by the end of the month, but it is the weeks prior causing concern. It has prompted calls for greater transparency from suppliers on when they are out of or low on stock and what price they are charging at the pump, so drivers can plan their routes ahead of time. Western Roads Federation chief executive Cam Dumesny said truckstops were running out of supply on major freight routes and one of the “biggest issues” was getting information on shortages so drivers could pre-plan. He said rationing remained in place, with drivers only able to pump 50L of the product at a time, rather than their usual 100-120L. “With 50L you’ve only got a range of about 1200-1400km for a triple, fully loaded,” he said. “So if you’re driving between Perth and Adelaide (2700km), you’ve got to fill up at least once.” Shortages along the Eyre Highway have been a cause for concern, Mr Dumesny said, however at this stage no trucks are reported to have had to park up. He likened the solution to FuelWatch, but for AdBlue. “What we want to see is greater reporting by all AdBlue Suppliers, including the major fuel retailers, of where there are AdBlue shortages, so drivers and companies can plan accordingly, and the AdBlue pump price,” Mr Dumesny said. “I think the national body is wanting a single site where suppliers can say, ‘we’re out of stock/low stock,’ so if you’re running across the paddock and knew Ceduna was out of stock you could then go to Balladonia. “The newer trucks get hit harder, I was speaking to one of our members and he said if they run out of AdBlue, it wipes 40-50 per cent of their engine power out and puts them in limp mode.” The trucking industry first raised concerns in November that the global shortage of the product — which is added to diesel engines to reduce pollution — could bring the country’s road freight network to a halt if more was not secured. WA farmers echoed the concerns, worried it could have repercussions on the State’s $11 billion agricultural industry which relies on diesel machinery, with reports of panic-buying in some towns. Weeks later, the Federal Government announced it had struck a deal with Incitec Pivot to secure local production of refined urea for AdBlue, which is made up of 32 per cent urea and 68 per cent de-ionised water. Mr Dumesny understood the agreement would ramp up to 24hr/7 days-a-week production, which would triple on-shore production by the end of January and hopefully ease pressure within weeks. Federal Minister for Industry, Energy and Emissions Reduction Angus Taylor confirmed in December that Australia had more than 15 million litres of AdBlue on-hand — equivalent to almost five weeks’ worth — and there was no need to stockpile the product. Mr Taylor also said multiple shipments of refined urea were on their way to Australia, which would bolster supply by another two weeks. “Australia currently has adequate stocks of AdBlue stock on hand, but this agreement with Incitec Pivot will enable domestic production of TGU or supply of an AdBlue product to domestic manufacturers to ensure current supply chain disruptions don’t impact on Australian businesses,” MrTaylor said. “The ramping up of production by Incitec Pivot will be done without impacting agricultural fertiliser supply to local farmers or disrupting local distribution chains for AdBlue.” A further 5000 tonnes of refined urea — enough to make about a month’s worth of the diesel engine additive — is also set to reach Australian shores this month after the Morrison Government accepted an offer from the Indonesian Government. Mr Taylor said the Government had also been working with manufacturers and the shipping companies to ensure shipments of urea and AdBlue already on their way to Australia got priority for loading and delivery. “Shipping companies have been helpful in prioritising the loading of a number of containers coming through Singapore to ensure that supplies arrive in Australia as soon as possible,” he said.