Regular readers of the Orbit Logistics Newsletter would be aware of the additional sea freight related costs that are creeping into the market.The increased road tolls (especially in Melbourne) have had an impact, and for transport companies servicing the import/export community, the tolls are unavoidable.

Shipping terminals took a different approach earlier this year with the introduction of PIF – Port Infrastructure Fees.

The difference being that the stevedoring companies made a conscious decision to separate the implementation of the PIF charges from the normal negotiations they would conduct with their major customers, the shipping lines. The PIF charges are levied against the transport companies as a separate fee, payable on a transactional level for every FCL in/out of the terminals.

The latest lot of new & unusual charges have originated in Sydney. Like cane toads or other introduced pests, we expect these charges to migrate across borders. There is no suggestion of any collusion amongst the parties, but as one company introduces or increase charges, coincidentally other companies start to also make their own adjustments to charges in a follow-the-leader pattern.

Qube Logistics, one of the bigger CFS (Container Freight Stations) operators, has introduced a new service fee for all LCL import cargo. These fees will also be levied against the transport companies as a separate fee, payable on a transactional level for every import LCL consignment out of Qube CFS.

Transport companies will add an admin fee for the upfront payment and handling of these fees. While they struggle to explain the justification for the International Terminal Fee (traditionally an air cargo fee), Qube Logistics have provided the following information on how & when the fee will apply:

Following on, at warp speed, come the announcements of Infrastructure Fees from two of the bigger CFS companies in Sydney.

Price & Speed – Infrastructure Levy

ANJ Container Services Infrastructure Levy

[Thanks go to our Industry advocate partners Freight & Trade Alliance for providing the above links to the new cost information]

We expect that more facilities nationally will take notice of these announcements, undertake their own independent reviews of their fee structure and come up with some new or increased fees, all of which will be passed onto the import/export community.

Service providers such as freight forwarders, Customs Brokers & transport companies are objecting to these additional charges.The PIF fees earlier this year were raised with the ACCC, but the ACCC have been fairly non-responsive on the issue.

Clients should expect to see some of these fees starting to appear on their shipment invoices.If you have any queries or comments on this topic, please feel free to contact our office: https://orbitlogistics.com.au/contact/

Australian Border Force [ABF] Compliance update

The latest compliance update from ABF has been released. This is an informative publication; not only does it provide guidance on the compliance focus areas for ABF, this edition also provides general information from ABF regarding trade developments, Free Trade agreements as well as the following:

– Industry Summit 2017
– New international trade facilitation arrangements
– Australia signs Mutual Recognition Arrangements with Canada Border Services Agency, Customs and Excise Department of Hong Kong, and Korea Customs Service.
– Lodging duty drawback claims via the ICS
– FTA consignment rules
– Item 34 of Schedule 4 of the Customs Tariff Act 1995 Aircraft parts, materials and test equipment
– Deficient information in cargo reports
– Asbestos Community Protection Question (CPQ)
– Customs House Fremantle has now closed
-Compliance program results financial year 2016-17
– Cargo reporting

Click here for online edition

New Staff at Orbit