APRIL NEWSLETTER 2020

Posted by ORBIT LOGISTICS
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Welcome to this month’s edition of the Orbit Logistics Newsletter.

Dear Valued Customer

Everyone at Orbit hopes you, your family, loved ones gets through this ongoing and developing crisis

All staff at Orbit Logistics are now working from home.

Please don’t hesitate to email me or call on 0404 444 447 should you need any assistance during Coronavirus situation, I am just a call away from finding you a solution or discuss contingencies

We will keep you abreast of all industry updates that come to light!
Stay safe and together we will get through this.

Glenn Allison
Managing Director


April 2020 Void Plan – UpdatePlease refer to the below updates in blue, which will be void sailings in the coming weeks.

WEEK 11

A3S SERVICE

OPERATOR: ANL / COSCO / OOCL (COUNTED FROM XMN ONBOARD DATE)

VESSEL SIZE: AROUND 5500 TEUS

ROUTING: KHH – XMN – SKU – HKG – SYD – MEL – BNE

ORIGINAL ETD XIAMEN: 14 MAR / ETD SHEKOU: 16 MAR / ETD HONG KONG: 17 MAR

ORIGINAL ETA SYD: 29 MAR / ETA MEL: 01 APR  / ETA BNE: 05 APR

 

WEEK 13

NEW PANDA / FA2 / CAE / YOYO (COUNTED FROM XMN ONBOARD DATE)

OPERATOR: APL / H-SUD / MSK /MSC / ONE

VESSEL SIZE: AROUND 4500 – 5000TEUS

ROUTING: KHH – XMN – NSA – HKG – YTN – MEL – SYD – BNE

ORIGINAL ETD XMN: 25 MAR / ETD HKG: 28 MAR / ETD YTN: 29 MAR

ORIGINAL ETA MEL: 12 APR / ETA SYD: 15 APR / ETA BNE: 18 APR

 

WEEK 14

CAT SERVICE  (COUNTED FROM NGB ONBOARD DATE)

OPERATOR: YML / SINOTRANS / EMC  / TSL / APL

VESSEL SIZE: AROUND 4200 TEUS

ROUTING: NGB – SHA – SKU – KAO – SYD – MEL – BNE

ORIGINAL ETD NGB: 28 MAR / ETD SHA: 30 MAR / ETD SKU: 02 APR

ORIGINAL ETA SYD: 16 APR / ETA MEL: 19 APR / ETA BNE: 24 APR

NEW PANDA / FA2 / CAE / YOYO (COUNTED FROM XMN ONBOARD DATE)

OPERATOR: APL / H-SUD / MSK /MSC / ONE

VESSEL SIZE: AROUND 4500 – 5000TEUS

ROUTING: KHH – XMN – NSA – HKG – YTN – MEL – SYD – BNE

ORIGINAL ETD XMN: 01 APR / ETD HKG: 04 APR / ETD YTN: 05 APR

ORIGINAL ETA MEL: 19 APR / ETA SYD: 22 APR / ETA BNE: 25 APR

 


 

NSW Announces $2.3BN Economic Stimulus

THE New South Wales government has announced a $2.3bn economic stimulus and health package in the face of the coronavirus.

This package provides $700m in extra health funding and $1.6bn in tax cuts to support jobs.

Key elements include:

  • $450m for the waiver of payroll tax for businesses with payrolls of up to $10 million for three months (the rest of 2019-20).
  • $56m to bring forward the next round of payroll tax cuts by raising the threshold limit to $1 million in 2020-21
  • $80 million to waive a range of fees and charges for small businesses
  • $250m to employ additional cleaners of public infrastructure
  • More than $250m to bring forward maintenance on public assets including social housing and crown land fencing
  • $500m to bring forward capital works and maintenance
  • $700m extra funding for NSW Health, including doubling ICU capacity.

Premier Gladys Berejiklian said the package bolstered the health system, cut taxes for business and would help secure jobs at “a very challenging time”.

“Our first priority is always the health of the people of this State and looking after their families and jobs,” Ms Berejiklian said.

“This package works hand-in-hand with the recent moves by the Reserve Bank of Australia and the Federal Government. It will provide more resources to help slow the spread of this virus and boost treatment for those people in our community who need it most.”

NSW Treasurer Dominic Perrottet said the NSW package would help businesses struggling with a once-in-a-generation event.

“The government stands ready to do whatever it takes to keep people safe and ensure our economy withstands this storm,” Mr Perrottet said.

Road Freight New South Wales CEO Simon O’Hara said the payroll waiver was something they had been talking to the NSW government about during the last week.

“We are pleased and congratulate the NSW government for being on the front foot with our industry,” Mr O’Hara said. “We will continue to engage collaboratively with government over what our industry needs as events unfold and evolve.”

 



Customs Brokers Respond to COVID-19

CUSTOMS Brokers are working “around the clock” to meet new Covid-19 related government requirements while also ensuring business can continue, CBFCA chief executive Paul Damkjaer says.

Mr Damkjaer said there had been “a huge amount of information that customs brokers and freight forwarders are processing each day into their own set of circumstances in a fluid environment”.

He noted the Australian Border Force was driving the response sought by the National Cabinet and this was affecting both industry and the community.

“Customs Brokers and Freight Forwarders are resilient and they are working around the clock to ensure all governments measures are adhered to,” Mr Damkjaer said.

“No doubt all are looking at their workforce and ensuring the safety of employees and their families,” he said.

“There are many that are working from homes for various reasons such as caring for children and the elderly, those who can work from home are being deployed.”

He said many brokers were taking holiday and long service leave to reduce salary pressures, albeit it wasn’t all doom and gloom.

“To date I have only heard of a few retrenchments due to business decline, cargo is still moving, albeit reduced,” he said.

“With around 80% of Chinese factories back in production, we will slowly see this area gain traction in international trade.”

Mr Damkjaer said the CBFCA recommended and supported the push for the deferral of all duties and all processing fees with the ABF Customs Group.

“Our industry will be particularly endangered by having to pay out these funds without any guarantee of payments,” he said.

“This will mean cargo will not move because we won’t have the funds to pay duty/GST. However if the government allowed this part to be deferred to the BAS like GST… then we can lodge the full import declaration and pay them in immediately allowing for free movement of cargo.”

 


Coronavirus and Market Impacts

CORONAVIRUS has quickly spread across the globe, infecting and killing people around the world. The virus has also infected markets, which have been hit with extreme volatility and seen the crash of global equities. US Equity markets had reached all-time record highs prior to the outbreak, but have since been hit hard, although the last week has seen a rebound.

Bear markets
Global equities crashed into ‘bear market’ territory and have likely thrown the global economy into a sharp recession. Governments and central banks have reacted quickly and with actions never seen before. Global governments have passed massive fiscal stimulus packages in an effort to stabilise markets and cushion the effects of a global shutdown. The first problem is to arrest the virus and contain the spread. This is being done by different levels of social confinement and ‘social distancing’.

Containing the spread
Countries around the world have acted to confine the populations at home except for emergency services. This is containing the spread while authorities build resources in an effort to combat the spread of the virus and protect the vulnerable in society. The ‘shutdown has had a devastating impact on business and workers. Governments have launched unprecedented and massive support packages for business and workers. The fiscal stimulus is an effort to keep economies on life support from a government-induced coma.

Central Bank actions
Central banks, led by the Federal Reserve, have acted to provide monetary assistance through massive injections of liquidity. The RBA, RBNZ, Bank of England, ECB and Bank of Japan have all acted to flood markets with liquidity. They have launched unprecedented ‘QE’ programs and additional, never seen before actions. Central Banks have acted quickly to fund banks and business through the existing banking system, buying both private and public debt. Debt ‘monetisation’ is now an instrument employed by these central banks. That is, central banks buy up the government debt (issued through fiscal support packages), from their respective treasuries.

Currencies affected
The impact on currencies has been dramatic. The devastating effect on the markets has seen a sharp flight to the safe haven of the US dollar, which had forced the AUD below 0.5600, at the nadir of the market collapse. The strong rebound in the last week, after fiscal and monetary emergency action, has seen the AUD recover to trade above 0.61. Pricing is wider than normal and risk management is key to business management. The AUD cross rates have been far less volatile, so it is US Dollar exposure that must be managed.

Conclusions
These social, fiscal and monetary emergency actions are designed to carry the economy, business and people through this crises. The real question is, how long can and will, this continue? Governments must ‘contain and control’ infection rates, flatten the infection curve, treat and isolate. This will determine how long this crises continues. This is a sharp shock to the economy and as long as authorities can gain control of the virus in weeks (rather than months) the economy will rebound very quickly. The damage will take time to repair (especially to national balance sheets). The balance will be between the damage the antidote does to the economy, before the cure is found.

COMMENT: Coronavirus and market impacts


 

Government pledges to help get key imports into supermarkets

EFFORTS are underway to speed-up border clearance of imported groceries during the coronavirus crisis, with the Australian government working with supermarkets and their brokers to bring about better outcomes.

The Department of Agriculture, Water and the Environment says it is placing “dedicated people” within its import assessment, bookings and inspection functions to enable faster clearance of critical supplies.

This has been developed via consultations with the major retailers as part of the Australian government’s Supermarkets Taskforce.

Head of biosecurity Lyn O’Connell said the department is completing inspections as quickly as possible.

“Dedicated staff will prioritise these applications so we can get product on the shelves quicker to complement Australia’s supply of quality fresh food produced from all parts of the country,” Ms O’Connell said.

“Streamlining the import processes for items such as frozen processed foods would help ensure supermarkets are fully stocked.

“While Australia is a major food producer, and much of what we eat is home grown, imported food accounts for about 16% of household consumption,” she said.

“This includes highly processed fruit and vegetables, chocolate, coffee, pasta and rice – some of which are in high demand at the moment.”

The streamlined process only applies to imports of groceries by supermarkets and does not apply to other imports of goods, including by members of the public.


Worldwide Public Holidays In April 2020