NEW entrant into the Western Australian bulk export market ARIA AAAX Australia successfully completed its first bulk shipment in February after loading 66,000 tonnes of wheat at CBH's Kwinana terminal.
It chartered a Panamax vessel called 'MV Margreth Pissarek' which has now successfully discharged its cargo in the Philippines.
There were 162 different Western Australian growers who sold their wheat to ARIA AAAX to make up the 66,000t which was required for the sale, with all the accumulation done through the company's Australian office in Subiaco.
The team commemorated the first shipment by taking a boat off Kwinana port to watch the shipment load.
One of the unique aspects of the shipment was the entire cargo was paid for and settled using Clear Grain Exchange's (CGX) settlement system.
Growers have been quick to embrace this system which is one of the reasons ARIA AAAX has been able to increase its scale in such a short space of time.
The main benefit of the system is security of payment for both the buyer and seller.
The standard practice in the grain industry for many years has been that growers have had to transfer the title of their grain to the buyer before they get paid, meaning they have credit risk with their buyer.
The CGX system reduces credit risk as both the grain title from the seller and cash from the buyer are placed in a trust, once all contractual obligations have been met then the trade will be settled.
This means that growers won't transfer title of the grain until they have been paid.
With the market currently the most volatile we have seen in many years, security of payment is more important than ever.
ARIA AAAX has several shipping slots spread through the rest of the year including slots in Kwinana, Geraldton and Esperance and will continue to look at both old and new crop grain purchases.
Its next shipment is in April and will be a combination of barley and wheat.
It's an exciting time for the business with a big crop to export and Australian grain more important to world supply than ever.
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