AUGUST NEWSLETTER 2018

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Welcome to the Orbit August Newsletter

We have a number of articles of interest this month. In particular news of the current status and update on the Brown Marmorated stink bugs which all clients should please pay attention to.

Articles relating to changes to biosecurity measures, Trucking costs in the USA, 2 important articles on New services from China & South East Asia, announcements from carriers such as Yang Ming and ANL whom are introducing bigger vessels/chartering more vessels.
Also a number of articles regarding government body changes to documentation requirements, regulations and customs clearance requirements.

There is also some interesting articles on how Exports are on the rise in Queensland, Adelaide container trade also up on June 2017 stats, however Sydney see a dip in their container trade in May this year.As always, please contact our office with any inquiries on the Newsletter topics.

Happy Reading!

Glenn Allison

Managing Director

 


Melbourne Reports Record Trade Year

A TOTAL of 95m revenue tonnes was reported at the Port of Melbourne during 2017/18, the strongest trade growth in six years, according to management. Figures just released showed total container of 2.93m TEU, a record financial year.

This was made up of 1.35m full TEU imports, 966,000 full export TEU and 611,00TEU empties.

Motor vehicles (commercial and passenger) moved through the port were up 8% on 2017 to 7,361,492 revenue tonnes or 449,453 units. Meanwhile total trade throughput for June 2018 finished 4.1% above June 2017 with all cargo types recording gains with the exception of liquid and dry bulks.

Total container throughput (full + empty) for June 2018 rose 5.5% over the same month last year to a total of 238,311 containers, resulting in total container throughput for 2017-18 being 8.6% above 2016-17.
Total container imports for the month recorded a 6.8% rise and total exports gained 4.3%. Overseas imports were up 7.5%, imports from Tasmania rose 17.9%, and mainland coastal imports increased 88.1%.

Import commodities most responsible for the monthly increase included timber (56%), furniture (13%), metal manufactures (13%), ceramic goods (27%), aluminium (43%) and plastic ware (18%). Motor vehicle trade recorded a 10.3% increase over June 2017 to be up 8% for the 2017-18 financial year.

Transport equipment (commercial vehicles) imports were the main contributor to the monthly result increasing 70.9% while imports of the new passenger vehicles were up 6.7%. Other breakbulk cargoes such as imports of iron, steel and machinery continued well above last year’s levels, increasing 80.2% over June 2017 to be up 34.4% for the full 2017-18 financial year.

 


Australia steps up biosecurity protection – with bigger budgets to back up streamlining efforts

AUSTRALIA is improving its biosecurity protection systems in terms of investment, new techniques and services and streamlining of processes.

The Department of Agriculture and Water Resource’s new automatic entry processing (AEP) model gives substance to the agency’s claim that it is “committed to streamlining the import process to provide subtle but welcome benefits” to the import sector.

Amendments to AEP procedures have been implemented to simplify the lodgement of importation declarations and give greater flexibility without compromising the country’s biosecurity integrity.

Says a DAWR backgrounder: ‘These enhancements will provide greater support for industry participants, such as Custom brokers, to conduct document assessments and reduce system limitations when directing specific goods for release or for additional biosecurity measures, such as inspection or fumigation.

‘The program update will also promote the incorporation of a wider range of commodities and changes to our verification regime will reward demonstrated compliance with reduced intervention.’

Peta Lane, first assistant secretary of the Department’s compliance division, said the new AEP model is one of the next steps in developing closer relationships with industry.

“The system has been simplified and delivers greater accessibility and flexibility to both industry and the department. Streamlining is providing even greater ease and efficiency for industry participants.”

DAWR has been working with industry to provide more information and support about these changes.

“Whilst the project will deliver a system that provides greater capacity to expand the arrangement, there has also been a focus on communication, information support and training through the Continued Biosecurity Competency (CBC) program and enhancements to Australia’s Biosecurity Import Conditions system, BICON.”

The Federal government is investing heavily in smart technology to take biosecurity protection to another level.

David Littleproud, the minister responsible for biosecurity under his agriculture and water resources portfolio, recently announced a further A$137.8 million allocation over five years.  Added to funding outlined in this year’s Budget that takes this year’s biosecurity commitment to A$313 million, again spread over five years.

Some of the measures are maritime-specific or for processing inbound air passengers, but many of the measures will relate to air cargo directly or as a general good.

For instance, A$36.5 million will be spent on building up a team of biosecurity analytics specialists to identify which countries and imports are likely to bring in pests and diseases.

“Our data and analytics will also tell us when pests are extending their range in other countries which could heighten our exposure to them,” explained Littleproud.

In the ‘greater good’ category, with the potential to ward off a biosecurity incursion which could affect air cargo such as thoroughbred horses or top-end horticultural product, is an Indigenous Biosecurity Rangers program.  This will employ 69 groups of rangers along the 10,000km northern Australian coastline and Torres Strait Islands.

“We have set aside A$35 million in contingency funding, ready to go if we do face an incursion we need to stamp out,” noted Littleproud.

“Another A$7.6 million over five years will establish and appoint an ongoing Environmental Biosecurity Protection Officer and staff within the Department of Agriculture. This officer and his or her staff would prepare plans and invest in projects to keep out environmental threats including the Asian black spined toad, which is similar to the cane toad.”


Kiwis and Aussies team up to boost Biosecurity Capability

AUSTRALIA and New Zealand have announced an agreement to co-operate on technology trials to boost both nations’ biosecurity operations.

Deputy Secretary responsible for biosecurity Lyn O’Connell said the Trans-Tasman Cooperation on Biosecurity Risk Detection Technology Agreement would mean new x-ray technologies being trialled in Australia could be used both here and in New Zealand.

“Our department inspects millions of passengers, mail parcels, baggage and cargo containers every year – these new technologies could allow us to do this faster and more effectively,” Ms O’Connell said. “Through this collaboration with New Zealand, we are developing and trialling the next generation of x-ray technology, which has the potential to automatically detect biosecurity risk material in baggage and mail items.”

Ms O’Connell said this would be a first for both our countries and would increase ability to swiftly identify risk material. The Trans-Tasman Cooperation on Biosecurity Risk Detection Technology Agreement is aimed at supporting collaboration between Australia and New Zealand in areas providing opportunities to improve biosecurity.

Head of Biosecurity New Zealand Roger Smith said the commitment to cooperate reflected a shared understanding of the importance of biosecurity.

“Detecting biosecurity risks at the border is becoming increasingly complex for both Australia and New Zealand, with more diverse risks, and volumes of passengers, mail and cargo also expected to rise significantly in coming years,” Mr Smith said. “Working together to explore emerging technologies and innovative use of technologies will be mutually beneficial and help both our countries anticipate and meet future challenges.”


US Air Cargo measures impact Australia, with new progams added

As of July 2017, all Australian air cargo exports to the United States have been required to undergo new piece level screening to accommodate the requirements of the US TSA.

A summary of the US requirements was set out in my June 21 web article in this publication titled ‘Piece-level screening for Australian exports to the USA is around the corner – I’m glad we’re ready’, with more details to be found at the Department of Home Affairs web site (https://www.homeaffairs.gov.au/about/transport-security/air-cargo-security/changes-us-bound-air-cargo-screening-requirements).

The revised Australian regime to meet US requirements also introduced concepts such as the Known Consignor (KC) program, which allowed certain exporters to securely screen their own cargo to go directly, without further examination, to a CTO at an airport, as well as the Enhanced Air Cargo Examination (EACE) program which applied to RACAs to examine and scan all other exporters cargo for the US before heading to the CTO. (A CTO can also be a RACA and examine air cargo it receives.)

Although this new regime was initially introduced for exports to the US, there was always an expectation that a similar regime would subsequently be introduced for all other exports by air, whether the result of it being dictated by other countries or by extension by the Australian government.  In this case, the latter has arisen with the Australian government recently announcing that all exports by air will need to be subject to piece-level screening by 1 March 2019.

Based on recent commentary, it seems clear that the changes merely represent the expected extension of the US requirements to meet perceived changes in the general security environment that were always going to be implemented as opposed to a response to a particular threat or a perceived gap in the existing regime.

Given the very-recent announcement of the changes, guidance material for industry has yet to be finalised by Home Affairs. However, industry representatives were briefed on the outline of new regime at the recent meeting of the working group convened by Home Affairs which has taken the place of the earlier ‘cargo working group’ that oversaw the introduction of the US requirements and the development and commencement of the KC program and the EACE program.   It is expected that the new requirements will also be developed in close consultation with industry.

While full details of the new requirements have yet to come to light in detail, a number of general observations can be made at this point

• The intention is for the US air cargo requirements to be replicated for all air cargo exports by 1 March 2019.

•  This would require all air cargo for export to be subjected to ‘piece-level scanning’ before delivery to CTOs at the airport.  For these purposes, scanning would require examination to be undertaken as  x-ray examination, electronic magnetic detection, explosive trace detection or physical examination. The scanning would depend on the goods themselves.

• What constitutes ‘piece-level’ will vary depending on the goods themselves.

• The full suite of US-bound arrangements will be made available for the new requirements, meaning that the KC and EACE programs will be extended to other exporters for other exports. Presumably those parties already in these programs in relation to the US requirements will have their membership extended to apply to the wider export requirements, although there may well be additional requirements for a broader membership.

There is little doubt that some urgent decisions will need to be made. Exporters need to understand the new requirements, the impact on their business, who can assist them best with the requirements and whether the KC represents a useful option, perhaps alongside the Trusted Trader Program. Freight forwarders will need to consider the terms of the RACA and EACE programs and those already providing scanning services for air cargo exports will need to review whether they need to invest further in scanning equipment or facilities – and the impact on their rates.

All parties need to pay attention to the details of the requirements as they are released, whether through the air cargo security part of the Home Affairs web site at https://www.homeaffairs.gov.au/about/transport-security/air-cargo-security, through industry associations or through other sources such as updates from this magazine. Of immediate interest to CBFCA and AFIF members will be air cargo security information sessions being conducted in July and August in conjunction with Home Affairs, CTO operators and providers of scanning technology as described at https://www.cbfca.com.au/CBFCA/News/NNF/2018/NNF_2018_142.aspx.

Those in the private supply chain will need to review how the new requirements will impact their operations and business costs. As we regularly advise, early preparation is the best option rather than last-minute scrambling in a crowded market.


MALAYSIAN PLASTIC SCRAP IMPORT RESTRICTIONS

Please be advised that with immediate effect, plastic scrap import to Malaysia is restricted in accordance to Malaysia Customs regulation.

Prior to booking creation, please ensure to provide APL with the following information:

• LOI from shipper

• LOI from consignee

• Valid import permit for plastic scrap (HS Code 3915)

• Acceptance of shipment email confirmation from consignee

• Confirmation that shipment is prepaid

*Note:
– Shipments without valid import permit will not be allowed to discharge from vessel at Malaysian terminals.
– Cargo will be allowed to load at origin only upon confirmation by destination office, Malaysia.
– Confirmation by destination office does not ensure that cargo is allowed to discharge as it is subject to PKA approval prior to vessel arrival at Malaysia ports.

Below is a link to one of our carriers website providing information outlined above.

http://www.apl.com/wps/portal/apl/apl-home/news-media/customer-advisories/customeradvisories2018/service+updates+malaysia+plastic+scrap+import+restriction

Alternatively, for more information, please contact the Orbit Logistics Customs Department.


Indonesia Customs mandatory data requirements now in effect: NPWP (Tax number) and HS code

Indonesian authorities have implemented these mandatory requirements effective 23rd July 2018. Please be aware that this information will appear on both the bill of lading and manifest, as per the requirements stipulated by the Indonesian authorities. The following information must be included on Import/Export manifests in order to be accepted:

Exports from Oceania to Indonesia:

  • NPWP (Indonesian Tax ID) – to be added in the Consignee column
  • HS CODE (6 digits) – to be added in Cargo Description (first line).
Imports from Indonesia to Oceania:
  • NPWP (Indonesian Tax ID) – to be added in the Shipper column
  • HS CODE (6 digits) – to be added in Cargo Description (first line).

The official regulation is as follows:According to PERATURAN MENTERI KEUANGAN REPUBLIK INDONESIA NOMOR 158/PMK.04/2017 pertaining TATALAKSANA PENYERAHAN PEMBERITAHUAN RENCANA KEDATANGAN SARANA PENGANGKUT, MANIFES KEDATANGAN SARANA PENGANGKUT DAN MANIFES KEBERANGKATAN SARANA PENGANGKUT, which required NPWP (Tax ID) & HS CODE to be mandatory to be included in Import Manifest, it is mandatory to mention NPWP (Tax ID) & 6 digit HS CODE in Bill of Lading. NPWP to be added in Consignee column, HS CODE to be mentioned in Cargo Description (first line).

Should you have any further questions or concerns, please contact your local Orbit Logistics Customer Service Department.

Upgrades to Webb Dock East on the way

WITH increasing demand for shipping capacity on the Bass Strait, Toll ANL Bass Strait Shipping plans to replace its two ro-ro vessels on the trade with larger ones.To accommodate these larger vessels at the Port of Melbourne, Toll is required to undertake upgrades and improvements to the existing berthing infrastructure at Melbourne and Burnie.

Toll’s vessels call at Webb Dock East Berth 1, and Port of Melbourne is to undertake a dredging program to make the berth accessible to these larger vessels. The Port plans to dispose of the dredge spoil at the Port of Melbourne Dredged Material Ground in Port Phillip Bay.

This proposed upgrade has undergone environmental review and the final regulatory consents are expected in the near future.

Berth upgrade construction at Webb Dock East Berth 1 has already begun, while the dredging operations are expected to start in November of this year, with the full upgrade program slated for completion in autumn 2019.


Port of Brisbane’s Port Drive Upgrade project  Complete

PORT of Brisbane’s $110m Port Drive Upgrade project was today officially completed, which connects the Port with the rest of southeast Queensland with a high-quality and safe road.

PBPL CEO Roy Cummins was joined by Queensland transport and main roads minister Mark Bailey and member for Lytton Joan Pease to celebrate the completion of the project nearly two years since major construction began.
Mr Cummins said the project was the biggest road project ever undertaken by the Port and was a significant infrastructure investment designed to help “future-proof” the Port as it continues to grow.

“This work has delivered significant safety benefits for all road users – it will boost efficiency for our customers and also delivers community benefits like safer access to the Whyte Island boat ramp,” he said.

“This project is crucial because the Port of Brisbane is the ‘beating heart’ of Queensland’s economy, handling around $50bn in international trade annually with the precinct home to more than 70 businesses, supporting thousands of jobs.

“Every year, more than 3.1m vehicles travel on port roads, and as trade continues to grow, so too does the Port itself. It’s absolutely vital that we continue to invest in road, rail and waterside infrastructure that will support the growth of this vital asset for the state.”

Mr Bailey dedicated the new Port Drive shared path, also constructed by the Port of Brisbane, to the late Peter Frawley – a respected employee of DP World Australia and a much-loved father and husband who tragically lost his life in a road accident while cycling on port roads in 2007.

“This project is a great example of private industry working with government to deliver a project that will benefit all Queenslanders,” he said.

“The Port of Brisbane is of course a vitally important piece of infrastructure, and the completion of this road will ultimately save time and money; I congratulate the Port on this fantastic achievement.”

Member for Lytton Joan Pease said it is projects like this that give people in the local area jobs, which gives the wider Bayside area an economic boost.

“I look forward to watching the Port continue to grow as Brisbane transforms into a true world city,” she said.

The Infrastructure Sustainability Council of Australia awarded Port of Brisbane’s Port Drive Upgrade project an “excellent” rating for its design, which uses a new asphalt technology: EME2 asphalt, which is stronger and can be thinner than conventional asphalt.


Brown Marmorated Stink Bug Update

As noted in previous broadcasts and newsletters, there is an increasing level of intervention from the Department of Agriculture and Water Resources (DAWR) for shipments that are at risk of infestation during the Brown Marmorated Stink Bug (BMSB) season.

At the completion of the most recent season, a review occurred, information sessions were held, and revised intervention measures are being put in place for the upcoming BMSB season 1/9/18 to 30/4/19. Below is the link that contains the detail of the information sessions.

http://www.agriculture.gov.au/import/before/pests/brown-marmorated-stink-bugs

Importers that may be affected can register via  airandseacargo@agriculture.gov.au to receive regular updates, as treatment requirements may be altered during the BMSB season, as occurred this year.

Of importance is the number of countries added to target risk list for next season, which now includes sea freight shipments from:

USA, Italy, Germany, France, Russia, Greece, Hungary, Romania, Georgia and  Japan* (*heightened vessel surveillance only)

All sea freight shipments from these countries will be subject to BMSB treatment requirements, some will be mandatory offshore fumigation, others will be directed to onshore fumigation treatment during the BMSB season.  The treatments available are Sulphuryl fluoride fumigation, Methyl bromide fumigation and Heat treatment, all of which need to be undertaken by accredited treatment providers.

The targeted high risk commodities and mandatory offshore fumigation covers:

·Break bulk, including vehicles, machinery and equipment.

·Bricks, tiles, ceramics, steel, stone, cement.

·Goods likely to be stored in a manner that provides access for BMSB to overwinter

Targeted risk goods that will be directed for increased onshore fumigation covers:

·Chemicals, chemical products, salt, minerals, fertilizers

·Wood pulp, printed matter, straw, paper, cardboard

·Plastics, wadding, tyres.

Exempted goods

·Fresh Produce (including nursery stock and plants)

·Live animals

·Food for human consumption (including beverages)

·Seeds for sowing

·Registered Pharmaceuticals

For further information please refer to: www.agriculture.gov.au/bmsb


 Freight Growth Slowdown Continues In June

Geneva – The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), rose 2.7% in June 2018, compared to the same period the year before. This continues the slowdown in air cargo growth that began earlier in 2018. Growth for the first half of 2018 stands at 4.7%, less than half the growth rate in 2017.

Freight capacity, measured in available freight tonne kilometers (AFTKs), rose by 4.1% in June 2018. Capacity growth has now outstripped demand growth in every month since March.

There are three main factors driving the slowdown:

  • The restocking cycle, during which businesses rapidly built up inventories to meet demand, ended in early 2018. There was a marked fall in air cargo volumes from March.
  • We are now seeing a structural slowdown in global trading conditions as indicated by the fall in the Purchasing Managers Index (PMI) to its lowest level since 2016. Factory export order books have turned negative in China, Japan and the US.
  • The temporary grounding of the Nippon Cargo Airlines fleet in the second half of June exaggerated the slow-down by shaving up to 0.5 percentage points off June growth.

“Air cargo continues to be a difficult business with downside risks mounting. We still expect about 4% growth over the course of the year. But the deterioration in world trade is a real concern. While air cargo is somewhat insulated from the current round of rising tariff barriers, an escalation of trade tension resulting in a ‘reshoring’ of production and consolidation of global supply chains would change the outlook significantly for the worse. Trade wars never produce winners. Governments must remember that prosperity comes from boosting their trade, not barricading economies,” said Alexandre de Juniac, IATA’s Director General and CEO.

 

june 2018 (% year-on-year) World share1 FTK Aftk fLF (%-pt)​2 FLF (level)​3
Total Market 100.0% 2.7% 4.1% -0.6​% 44.3%
Africa 1.9% -8.5% -1.4% ​-1.9% 24.9%
Asia Pacific 36.9% 1.5% 5.2% ​-2.0% ​54.5%
Europe 24.2​% 3.3% 5.4% ​-0.9% 44.6%
Latin America 2.7% ​5.9% -5.7% ​4.1% ​37.2%
Middle East ​​13.7% 3.8% 4.5% ​-0.3% ​43.7%
North America 20.6% 3.8% 3.4​% ​0.1% 35.8​%

1-% of Industry FTKs in 2017       2- Year-on-year change in load factor      3- Load factor level

Regional Performance

All regions except Africa reported a year-on-year increase in freight volumes in June 2018, but the slow growth in Asia-Pacific, which accounts for nearly 37% of the entire air cargo market, dragged the global growth rate down.

Asia-Pacific airlines saw freight demand increase by just 1.5% in June 2018 compared to the same period last year. Capacity increased by 5.2%. The international freight performance by the region fell to 1.1%, a 17-month low, although this partially reflects comparisons with the strong performance in June 2017. For the first six months of 2018 FTKs expanded by 4.6% year-on-year, and freight volumes are expected to settle at an annual 3-4% growth.

European airlines posted a 3.3% increase in freight volumes in June 2018. Capacity increased by 5.4%. Growth is being affected by a slowdown in export orders. Supply chain bottlenecks, which are often alleviated by air freight, have also eased. For the first half of 2018, the region expanded 4.1% year-on year.

North American airlines’ freight volumes expanded 3.8% in June 2018 compared to the same period a year earlier. International FTK performance was 5.9%, making the region the strongest-performing market for the first time in two years. The strong dollar and robust growth in the US economy is driving inbound shipments. Capacity increased by 3.4%. Growth for the first half of 2018 was 5.3%, second only to exceptional growth in Latin America.

Middle Eastern carriers’ freight volumes grew 3.8% in June. This was an improvement on the May figure of 2.7% but this is well below the average five-year rate of 9.5%. Capacity increased 4.5%. Growth for first half of 2018 was 4.3% year-on-year, and the expectation is for volume growth to remain modest in the months to come.

Latin American airlines experienced growth in demand of 5.9% in June 2018 – continuing its recent run of posting the largest increases of any region. Unusually, capacity decreased by 5.7%. The pick-up in demand for international freight (5.2%) slowed compared to last month, but continues to trend well above the five-year average (1.6%). Growth for the first six months of 2018 was 10.1%, comfortably the best performance of any region.

African carriers saw freight demand contract 8.5% in June 2018 compared to the same month last year. Capacity also fell, by 1.4%. It is difficult to be positive about the current picture in Africa. International FTKs fell at the fastest pace (-8.6%) for nearly nine years. Although the year-on-year growth rate for the first half of 2018 was 3.0%, in seasonally-adjusted terms, FTKs are trending downward at an annualized rate of almost 20% over the past six months, and demand conditions are weak on all the main markets to and from the continent.

View full results in our June freight analysis (pdf)


SOARING COST OF TRUCKING THREATENS TO STOKE USA INFLATION!

The tightest trucking market in years is testing the limits of an otherwise well-conditioned U.S. economic expansion. It’s also tinder for accelerating inflation should the capacity constraints spark moves by companies to pass on those higher delivery costs.

A shortage of drivers, new regulations and solid demand are driving up rates charged by trucking companies to haul loads over the country’s more than 46,000 miles of interstate highways. Combined with higher materials prices, partly due to the Trump administration’s tariffs, rising transportation costs are putting pressure on goods producers.

“Demand is exceeding capacity in most modes of transportation by a significant amount,” Donald Broughton, managing partner of Broughton Capital, wrote in the Cass Freight Index Report for May. “In turn, pricing power has erupted in those modes to levels that continue to spark overall inflationary concerns in the broader economy.”

Producer-price figures from the Labor Department on Wednesday showed that inflation continued to build in the sector last month, with general long-distance freight trucking costs advancing 9.4 percent in June from a year earlier. That was the largest year-over-year increase in nearly a decade. The broader producer-price index was up 3.4 percent, the most since November 2011.

Anecdotes about rising costs are piling up. The Federal Reserve’s latest Beige Book, published in late May, cited a North Carolina trucking company that said some customers were willing to pay rates that quadrupled. In the Chicago district, “numerous contacts” said freight costs had “increased dramatically.”

The following charts show the trucking industry’s plight as it deals with robust demand amid a shortage of drivers and government regulations aimed at making the roads safer while limiting hours on the road for America’s truckers.

The cost to haul a full truckload of finished product or materials has soared this year. Cass Information Systems’ measure of per-mile rates, excluding fuel charges, jumped 9 percent in May from a year earlier, the most in records going back 13 years.
Per-mile rates for dry vans, temperature-controlled trailers and flatbeds have roared above $2, according to data from Truckstop.com.

Rates are on the move because the economy is on cruise control as steady-and-solid business investment and consumer spending stretch the capacity of the nation’s freight sector. What’s more, the implementation of electronic logging devices that ensure drivers adhere to maximum-allowable hours on the road and duty time has effectively removed the ability to fudge paper logs. While that may make the roads safer, it’s nonetheless another capacity restraint.

PepsiCo Inc., like its competitors in the U.S. food and beverage industry, has been grappling with higher transportation costs that are pressuring margins. Hugh Johnston, the company’s chief financial officer, said freight costs started to accelerate at the beginning of this year, largely due to a trucker shortage and new regulations on drivers.

An index of May freight shipments from Cass was the strongest since before the last recession and close to a record in data back to 1990. That helped propel a measure of expenditures on truck transportation to an all-time high.

A near-record number of unfilled positions across the U.S., along with the grind and stress of a career putting in long hours behind the wheel, underscore the difficulty the trucking industry has in attracting drivers. Government figures show that while long-distance freight hauling payrolls are increasing, they’re doing so at a snail’s pace and remain below the peaks of the last two expansions.

Last year, wage gains merely matched the rate of inflation in the broader economy. With the freight-transportation sector tightening and companies growing more desperate to put people behind the wheels of big rigs, that may start to change. Historically, about 30 percent of trucking companies’ rate increases are passed through in the form of wage increases.

The market has been much tighter this time around and they are passing at least 50 percent to drivers now, and a smaller percentage is going to the bottom line

Should you have any questions or concerns, please contact our sales department.


NEW SERVICE ANNOUNCEMENTS FOR SOUTHEAST ASIA

Improvements on Southeast Asiaq/Australia trade lane announced to commence from 30th July. With Cosco Shipping joining OOCL and PIL as a third vessel-operating partner restoring the operation to a twin-loop product resulting in faster transit times.

The new AAA1 loop port rotation will be Laem Chabang-Singapore-Brisbane-Sydney-Melbourne- Fremantle improving the current transit times from Laem Chabang.

The new AAA2 loop port rotations will be Singapore-Port Kelang-Fremantle-Melbourne-Adelaide and will result in the fastest transit time in the market from Singapore and Port Kelang to Fremantle.

The current ASAL port rotations remain unchanged service Jakarta-Port Kelang-Singapore-Brisbane-Sydney-Melbourne-Adelaide maintaining direct service from Jakarta to Australia.

All in all, an improved service for both imports and exports. Should you have any questions or concerns, please contact our sales department.


CMA-CGM CANADA – CONTAINER MIS-MATCH FEE  EFFECTIVE 15TH JULY 2018

CMA CGM Canada have announced that effective 15.07.18 they will be implementing a container mismatch fee in an effort to streamline processes and avoid delays in bill of lading production, possible mis-routing of cargo due to incorrect container information, increased email for resolution and reconciliation of incorrect information.

The container mismatch administration fee, will be applied to all shipments where containers are picked up against a booking number but returned against a different booking number, and where shipping instructions are received where the container information does not match our container records for the booking.

The Fee is to be :  USD 250.00 Per booking / Per Bill of Lading.

Should you have any questions or concerns, please contact our sales department.

NEW CHINA TO AUSTRALIA SERVICE

A new service starting middle of August with carrier members: HMM/EMC/APL with an estimated capacity of the vessels would be around 4500 – 5000 Teu , and the estimated ETD would be around the 33rd week.
The main purpose of this lane is to alleviate the existed transport capacity problem in Northern China, the routine of this service is: Ningbo – Shanghai – Yantian – SYD – MEL – BNE. This service would not call Hong Kong , so they might not consider receiving the goods from PRD areas, there would be total 10 services from China to Australia by then.
The significance of this new service is very important , this new service might restrain the price surging during the 2nd half of the year due to the big capacity-compare with other vessels from China to Australia  of each VSL they put in. Besides it is said that the devaluation of AUD is coming by the latter half of the year, which would affect the consumer activity by the end of this year and the beginning of 2019.
So they believe that cost for the next half year would grow relatively mild than that of last year, would probably almost the same level like last year rather than 10% higher like what they predicted by the beginning of this year.

For more information, please contact our sales department.


ADVANCE CONTAINERISED CARGO LOADING NOTICES (PRE-ARRIVAL MANIFEST)  –  SOUTH AFRICA

Earlier in the year, it was advised of the implementation of South Africa’s Customs Control Act, 2014, requiring mandatory data elements to be submitted on our Shipping Instructions. The first phase of the Reporting of Conveyances and Goods (“RCG”) under the current Customs and Excise Act, 1964 was implemented on 20th April 2018.

We are approaching the 1 August 2018 deadline when penalties for Non-Compliance of the Customs Authority in South Africa’s full implementation of the Customs Control Act, 2014 may apply.  We will continue to be guided by the Customs Authority in this regard.

We wish to remind you that information not being declared may result in Shipping Instructions being rejected, impacting the timeline for achieving loading pre-requisites.

Please pay special attention that all Cargo imported into / transhipped through South Africa Ports must contain the below:

Seal Number
This is mandatory for shipments import to / transhipped via South Africa.  Seal Number(s) should be included on the Shipping Instructions submitted prior to cargo load at origin ports. Should a seal number (whether carrier, customs or veterinary) be missing, the Shipping Instructions will be rejected and will require a complete resubmission.

Please ensure Seal Number is included in the first submission of instructions, since a resubmission may cause a delay and result in missed loading cut-off at origin.

Marks & Numbers
This is a mandatory element as specified by the Customs Authority of South Africa. Please record this information in the “Description” field on the Shipping Instructions.  If no information is received, your Shipping Instructions will be updated with “No Marks” and should a query arise from Customs, they will be advised that no information was specified.  Please ensure you include all the required information to comply with the Customs Regulations.  At this stage we will not be raising a Manifest Submission/EDI fee.

For more information on mandatory elements and new regulation, please see the official website:
http://www.sars.gov.za/ClientSegments/Customs-Excise/AboutCustoms/Pages/Reporting-of-Conveyances-and-Goods.aspx

You may also contact South African Customs at the following email address if the website does not answer your queries:  NewCustomsActs@sars.gov.za


Australia’s trade numbers on the rise in 2017

THE value of Australia’s trade in goods and services reached a record $763.2bn in 2017 – an increase of 11% on 2016, according to the Department of Foreign Affairs and Trade publication, Composition of Trade, Australia 2017, released (9 July).

The value of two-way trade in merchandise alone came to $590.1bn for the year.

It comes as no surprise that China was Australia’s largest trading partner over the year, with total trade between the two countries reported to be worth $164.7bn, or 27.9% of the value of Australia’s total merchandise trade. Exports to China were worth $100.2bn, accounting for 33% of the value of Australia’s total exports. Imports from China were worth $64.5bn, accounting for 22.4% of the value of Australia’s imports.

Australia’s second-biggest trade partner for merchandise in 2017 was Japan, with two-way trade worth $66.1bn over the year – that’s 11.2% of Australia’s total merchandise trade (by value). Exports of merchandise to Japan totalled $45bn, a 14.9% share of total merchandise exports. Imports came to $21.1bn, or 7.3% of merchandise imports by value.

South Korea was Australia’s third-largest trading partner for merchandise in 2017; two way trade between the countries totalled $52.1bn, accounting for 8.8% of Australia’s total merchandise trade for the year.

The US came fourth, with merchandise trade worth $43.6bn, or 7.4% of the total.

And, India was Australia’s fifth-largest trade partner for merchandise for the year, with trade worth $20.9m, or 3.5% of the total.

Iron ores and concentrates were Australia’s top export in 2017 (taking into account both goods and services), worth $63.1bn, an increase of 17.4% from 2016. Coal was second, worth $57.1bn, up 35.2% from 2016

In a statement announcing the publication of Composition of Trade, Australia 2017, trade minister Steven Ciobo pointed out the government was pursuing an ambitious trade agenda, aimed at increasing Australia’s international trade; FTA negotiations with the EU were recently launched, and negotiations continue with Indonesia, Hong Kong and the Regional Comprehensive Economic Partnership and Pacific Alliance Groups.

“The more Australian businesses sell to the world, the more Australian jobs created.


Yang Ming to charter 10 New Container Ships

YANG Ming announced it would charter 10 containerships, all newbuilds to be delivered from the second quarter of 2020 through the third quarter of the following year.

Yang Ming signed the charter agreements with Shoei Kisen Kaisha for five 11,000-TEU containerships and with Costamare for a further five 12,000-TEU containerships.

A statement from Yang Ming said the ships would help modernise and develop its fleet and also improve its daily service operations.

The new ships are to be in line with the IMO sulphur cap, due to come into force in 2020. The 10 vessels are designed in compliance with the emissions standards and are to emit less carbon and be able to use fuel oil with limited sulphur.

The vessels are also to be equipped with a more efficient ballast water treatment system.

The size of the ships will enable them to pass through the new Panama Canal and, according to Yang Ming, they will have no restrictions from main ports world-wide.

Yang Ming is currently the ninth-largest container liner by TEU capacity, with 631,614 TEU, or 2.8% of total global capacity, according to Alphaliner.


ANL to Introduce Bigger Ships Down Under

ANL is to introduce ships of around 8500 TEU into Australia in order to enhance “economies of scale” in an expensive fuel market.

ANL general manager global and strategic accounts, Tom Holyman, told the Tasmanian Freight & Logistics Forum the move was underway.

“We are able to officially announce… that we will be bringing this size [8500 TEU] vessel to Australia from next month – capesize and potentially slightly larger,” he said.

The ships are expected to be under charter from OOCL. Mr Holyman said for many years Melbourne’s Westgate Bridge had been a constraint.

“There has been a natural cap on the supply side… because ships of around 6500 TEU physically can’t get under the Westgate Bridge and even if they can there’s a turning issue.”

But the establishment of VICT meant bigger ships could access Webb Dock, Mr Holyman said, while the Port of Melbourne had indicated “nine thousands” (9000 TEU) could go under the Bridge under certain conditions, potentially allowing access to the river terminals (although there still would be the turning challenge).

“Bigger ships make economic sense,” he said, noting higher fuel bunkering costs making economies of scale all the more important.

International calls at Tasmania
Mr Holyman famously used the corresponding event last year to describe the number of shipping services into Tasmania as “unsustainable” and felt vindicated when Maersk cancelled its direct call.

He told the gathering this year that ANL would not be introducing a direct call to the Tasmania and this would not change even with if a mooted Burnie container terminal became reality.

“We won’t be bringing any direct services, not that there’s any [ANL] ships that are capable of getting into the ports in Tasmania,” he said.


Container trade sees dip at Port Botany in May

CONTAINERISED trade through Port Botany in May showed a marked decrease on last year, but generally, trade is still on the increase at the port, according to the latest trade statistics available from NSW Ports.

In May 2018, New South Wales’ main container port saw a total of 207,221 TEU in throughput for the month. this was a decrease of 2% on the same month the previous year’s throughput (211,251 TEU), but a decrease of just 54 TEU on April 2018.

However, if we zoom out and look at the numbers for the past 11 months, and the corresponding period of time last year, it is clear that container throughput at the port is still strong.

Over July 2016 through May 2017, the port handled a total of 2.23m TEU, or an average of 202,942 TEU per month. But, over July 2017 through May 2018, Botany saw 2.4m TEU cross the wharves, at an average of 217,827 TEU per month.

Explaining May 2018’s lower throughput, commentary from NSW Ports supplied with the trade statistics points to a precipitous decrease in export cereals (down close to 34%) and a less severe decrease in export paper products (down close to 18%).

The commentary also pointed to a 6% decrease in export empties following several months of “high-volume repositioning”. In May 2018, Port Botany handled 91 vessel calls, down by 10 from the same month last year. The largest category of ship to call at the port in May 2018 was the 5000-6000 TEU range with 31 such vessels calling over the month. This was followed by 18 ships in the 4000-5000 TEU range, and 13 in the 1000-2000 range.

Trade through Port Kembla also saw a decrease in cargo throughput in May, with total throughput decreasing 18% on the same month last year to 1.867m revenue tonnes.


 June Container Trade through Adelaide up on last Year

WHILE June’s full-container throughput remained static on a month-to-month basis at Port Adelaide, it showed a modest increase on a year-on-year basis, according to the latest statistics compiled by Flinders Ports.

Full container throughput at Port Adelaide over the month of June came to 26,492 TEU. This was just 10 TEU more than the previous month, but an increase of 4% on June 2017. Of last month’s total throughput of full containers, 15,168 TEU (57%) were exported, and 11,324 TEU (43%) were imported.

Over June, Adelaide handled a total of 6099 TEU of empty containers, most of which (4368) were repositioned from other parts of Australia. Of the total, 5231 TEU of empties were imported and 868 TEU were exported. Over the month, 108 ships called at Port Adelaide, down from 116 in May. In June, 43 dry bulk carriers called, while there were 34 cellular containership calls over the period.

There were seven calls each for ro-ro vessels and general cargo ships, five oil/petroleum tankers, three other tankers and six vehicle carriers.


Value of Queensland exports on the rise

QUEENSLAND exports are ever-increasing in value, hitting a record $73.8bn for the year to May 2018, according to figures released by the state.

Trade minister and Premier Annastacia Palaszczuk said the increase of 19.2% over the year to the May quarter reflected Queensland’s traditional strengths, as well as the growing global demand for renewable energy.

“For the year to May Queensland’s coal exports topped $10bn, reflecting the improvement in volumes from a year ago when disruptions following Severe Tropical Cyclone Debbie were at their greatest,” the Premier said.

“LNG exports increased by over half a billion dollars in the year to May 2018 to a total of $2.99bn.”

Ms Palaszczuk continued, saying the increase in the value of LNG exports reflected rising export prices rather than volumes, which have stabilised below capacity as more of the state’s gas production goes into the domestic market.

“We’ve also seen a $227m year-on-year rise in the value of mineral exports to almost $2.5bn,” she said.

“Many of these metals that are in growing demand for the production of solar panels, wind turbines and large-scale batteries, as the growing demand for renewable energy continues.”

Ms Palaszczuk acknowledged that agricultural commodities had done it tough in recent months.

“While we’ve seen a rise in the value of meat exports, indications are that is due at least in part to some graziers destocking given prolonged drought conditions,” she said.

“The Indian government’s decision to impose tariffs on chickpea imports in December 2017 has seen the very rapid export growth of last year for that crop drop away.”

 


National and Public Holidays

Around the world in the next month:

Wednesday                          22nd August                     Malaysia & Indonesia                          Hari Raya Haji  / Idul Adha Day
Monday                                03rd September                Canada & USA                                   Labour Day
Monday                                03rd September                Vietnam                                               Independence Day
Monday                                24th September                 China                                                  Mid Autumn Festival
Monday                                24th-26th September         Korea                                                 Chuseok Holiday
Tuesday                               25th September                 Hong Kong                                        Mid Autumn Festival
Monday                                01st October                      Hong Kong                                        National Day of the People
Monday                                01st – 7th October             China                                                  National Day Golden Week
Wednesday                          3rd October                       Korea                                                 National Foundation Day
Tuesday                                9th October                      Korea                                                  Hangeul Proclamation Day
Wednesday                          17th October                    Hong Kong                                         Chung Yeung Festival
Wednesday                          17th October                     Hong Kong                                        Chung Yeung Festival