Australia Faces DEF Shortage... Increased Risk of 'Logistics Crisis'

Australian Road Transport Association Expresses Concerns... Australian Government Also Making Efforts to Respond

On the 21st of last month, a notice about the shortage of urea solution was posted at a gas station in Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] An analysis suggests that a 'logistics crisis' could occur in Australia as a shortage of urea solution has emerged there as well.

According to Bloomberg on the 10th, the National Road Transport Association (NRTA) of Australia expects that more than half of diesel trucks nationwide require urea solution to operate, but supplies are anticipated to be cut off by February next year.

Warren Clark, chairman of NRTA, said, "The national supply chain is already under significant pressure due to the impact of COVID-19, port labor disputes, driver shortages, and other factors. If the shortage of urea solution is added, land logistics could be greatly reduced," adding, "We are in discussions with the Australian government to resolve this issue."

Angus Taylor, Australia's Minister for Energy, stated in a press release that the stock of urea solution in Australia typically amounts to about 15 million liters, equivalent to approximately five weeks' supply, and considering the shipments expected to arrive in Australia, an additional supply of more than two weeks is secured. Minister Taylor explained, "The government is taking measures to ensure there is no shortage of urea solution," and "Various measures are being implemented to respond to the global pressures on the urea market."

Urea solution is a raw material necessary for the nitrogen oxide (NOx) reduction devices in diesel engines. Bloomberg explained that this situation arose because energy shortages in Europe and China caused coal and natural gas prices to surge, reducing urea production. It also mentioned that the world's two largest urea producers, China and Russia, restricted urea exports to guarantee fertilizer supply to their domestic farmers, and that South Korea experienced shortages, urgently importing urea from countries such as Vietnam and Australia.

This content was produced with the assistance of AI translation services.