September Edition – Orbit Newsletter

Welcome to the September edition of the Orbit Logistics Newsletter.

SPRING IS FINALLY IN THE AIR 

From the Desk of the MD

Welcome to the September Orbit Logistics Newsletter.
Spring is coming, and with it comes the usual Spring fare; changing weather, footy finals, hayfever, and shipping peak season.

I experienced the power of changing weather last week on a trip to Hong Kong; the cyclone that hit Hong Kong was a strong reminder of the power of mother nature.
Services were disrupted for air and ocean freight, but the recovery action has been fairly swift.

In local discussions in HK and from the recent feedback from Shipping lines, the peak season for exports ex China/HK should be a strong season, which has the potential to bring space and rate pressures. The shipping landscape continues to change, especially through mergers and takeovers. This flows into the structure of trading lanes and services, with shipping consortiums changing members and services.

Pressure will come on freight rates, with most shipping lines broadcasting plans to implement freight rate increases around US$300/20’ FCL, for cargo out of Korea, Taiwan, HK & China. This is the typical ambit claim that precedes the peak season. It’s now called a rate restoration program, but in reality it is a peak season surcharge.

We can assure you that Orbit Logistics are, and will continue to be in robust negotiations with shipping lines at origin and destination, ensuring the best outcomes for our clients.

Please enjoy the articles of interest in this month’s newsletter, contact us with any queries or comments.

2. Port Infrastructure Fees – the ACCC’s involvement.

Clients will recall from past newsletters that the Australian Stevedoring companies implemented or increased Port Infrastructure Fees earlier this year, invoiced to the FCL transport companies and passed onto the clients. The matter was referred to the ACCC a couple of months ago. While they haven’t stated their final position, the ACCC is indicating that the introduction of these infrastructure fees is unlikely to be a matter on which they will interfere. The expectation is that the Port Infrastructure fees are here to stay.

3. Increased cargo scrutiny from ABF [Australian Border Force]

As the ABF continue to have success in restricting the importation of illegal products through their cargo screening & examination processes, they have now announced the likelihood of an increase in cargo intervention with an escalation of Australian Border Force (ABF) security activity – refer HERE. It’s a brief, fairly commercially focused message, but the implication is fairly strong. ABF will  ramp up the scrutiny around cargo, and there may be delays in cargo releases.

4. Transport Rat Runs blocked in Melbourne’s inner west

In a recent article in the Lloyds List Daily news, it was noted that the Victorian Government will block trucks using more roads in the inner west.
This action will bring benefits to local communities. It will also force more trucks onto tolled roads. The trading community is likely to feel the cost impact of that moving forward.
Please see the attached article for more information: Vic government announces more truck bans

Brown marmorated stink bugs (BMSB)

​BMSB is not found in Australia and needs to be kept out. It has the potential to severely impact our agriculture industries. Juveniles and adults feed on, and can severely damage, fruit and vegetable crops. It is also a nuisance pest as adults enter vehicles, homes and factories in large numbers in autumn months, looking for places to shelter over winter.

BMSB can arrive in Australia on cargo and containers between September and April, coinciding with late autumn and winter in the Northern Hemisphere.

The Department of Agriculture and Water Resources has introduced measures to manage the risk of brown marmorated stink bugs during the high risk season for these pests.

INDUSTRY NEWS

 

Synergy Solutions Now Available

Our Synergy solutions will change the way you do business. Whether you do corporate partnerships on a large scale, small scale or medium scale, Synergy will streamline your communications and take your brand’s success to the next level.

 

Rates increase to Start as coming into Peak Session 

As we are heading into our busiest time of the year shipping lines are now pushing for rate increases.

 

Sell your green stories, says Ports Oz boss

 

PORTS Australia chief executive, Michael Gallacher, says the ports sector must better promote its environmental success stories. Mr Gallacher, who took over at the helm of the industry body earlier…

 

NZ rescue saves family stranded in South Pacific

A BRITISH family were saved off a reef south-east of Niue when their 15-metre catamaran ran aground…

Member says he’s prepared to do battle for port infrastructure

NEW South Wales Labor treasury spokesman, Ryan Park, says he’s determined to fight for the needs of…

Vic government announces more truck bans

STOPPING “rat runs” through local streets is the aim of two more trucks bans in Melbourne’s inner…

Lord Mayor excited by Port Kembla maritime prospects

WOLLONGONG City Council Lord Mayor, Gordon Bradbery OAM, has talked of how maritime industries are strengthening…

 

INDUSTRY OPINION: Italian imports added to stink bug watchlist

FOR those of us involved in the handling and clearance of sea cargo shipments from the United States, the Brown Marmorated Stink Bug (BMSB) is not new news.

If you live and/or work in the south-eastern states of Australia you would be well aware that the BMSB season is approaching when the weather starts to change to milder conditions instead of the cold weather throughout the nights and days.

What is news, however, is that the Department of Agriculture & Water Resources has extended its scrutiny to target goods shipped from Italy.

So this season breakbulk and vehicles, boats, machinery and machinery parts from all ports in both the US and Italy will be checked, from 1 September 2017 to 30 April 2018 inclusive.

The Department also says heightened inspections will apply to target goods from other European countries where BMSB is known to be established “in order to monitor emerging risk of importation of BMSB on those pathways”.

Without going into the detail of processing of shipments and emergency requirements enforced by the Department, I thought it would be useful and at least a bit interesting to see why the BMSB requires an ‘emergency’ response from our authorities.

Looking deeper into the background of this creature unveils some interesting facts.

BMSB (scientific name ‘Halyomorpha halys’), or simply the stink bug, is an insect that is native to Asia (particularly China, Japan, Korea and Taiwan). The BMSB grows to approximately 1.7 centimetres long and as wide, looks like the usual stink bug and comes in a few different colours: grey, copper, blue and off-white.

In 1998, it was accidentally introduced into the United States, from China or Japan, as a stowaway in packing crates or on shipments of machinery. It was deemed an agricultural pest and has established itself as a season-long threat in US orchards. You may be asking yourself why Italy is now included in the emergency measures – the answer is that this pest is now widespread in Europe and has recently been found in South America also.

The BMSB loves fruit and vegies and if not controlled can wipe out entire crops, as it did to soybean in Japan. The female stink bug can lay four hundred eggs in a lifetime, which may last from several months to a year. The BMSB is also highly mobile and capable of moving from host to host without disruption to their reproductive processes.

Unlike China, the US – which has an ideal climate for BMSB reproduction, across many states – does not have a natural ‘control’ for the bug. Their Department of Agriculture has detected increasing resistance to pyrethroid insecticides, used to combat infestations, and is working on introducing a predator. But it is concerned that any predator will also become an invasive species (like our friend the Cane Toad!).

So, for the time being, you better get prepared and ready because it’s soon to be BMSB season!

Already shipping lines are reminding customers of their fumigation and reporting obligations, and you can get further details from the Department’s website: http://www.agriculture.gov.au/import/industry-advice/2017/76-2017