Amid China exports curbs, Australia taps Indonesia for urea as AdBlue crisis threatens supply chains
- Shortages of a urea-based fluid modern diesel engines need to function have threatened to cripple Australia’s supply chains and distribution networks
- Urea, also used in animal feed and fertilisers, is in short supply globally amid export curbs imposed by China, which accounts for 30 per cent of world exports
Canberra said on Monday that enough urea would arrive from Indonesia in January to make a month’s worth of AdBlue, a diesel exhaust fluid needed to reduce greenhouse gases and keep diesel-powered vehicles such as trucks running.
A shortage of AdBlue in Australia is threatening to cripple supply chains and compromise goods deliveries, as modern diesel vehicles that form the backbone of the country’s logistics network require diesel exhaust fluid for their engines to properly function. Canberra insists, however, that supplies are sufficient to sustain distribution during the key Christmas and new year holiday period.
“By working closely with our partners, we have been able to secure this critical supply for Australia,” Australian trade minister Dan Tehan said on Monday. “We will continue to strengthen our close relationships around the world to support and further Australia’s interests.”
Canberra has also been working with shipping companies across the world to ensure shipments of urea and AdBlue to Australia stay on track, Australian industry minister Angus Taylor said.
“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. “I would like to thank those companies that have supported and offered support to this effort.”