New Infrastructure Surcharge East Swanson Dock – Effective - 10 March 2014
Rent and rates charges at the Port of Melbourne have increased considerably in the last few years and throughout our current tenancy at East Swanson Dock (ESD). Since 2006, the combined cost of land tax, rental and council rates at ESD has increased in excess of 90%. Whilst we have implemented a number of initiatives to improve efficiency and productivity in order to avoid the imposition of additional costs on the supply chain, we can no longer absorb all of these excessive charges.
From the 10th of March 2014, we will apply an infrastructure surcharge at the Patrick ESD Terminal as part of the basis on which access to the Terminal is granted. The surcharge will be applied to road transport operators for all full container movements (VBS and Bulk Runs), both import and export, handled at the Terminal. The surcharge of $3.50 per container will be invoiced electronically via One Stop.
The surcharge will be covered by the existing terms and conditions of the Vehicle Booking System, including payment terms. Ongoing access to the Terminal will be conditional on payment of the charges as per our conditions. It is important to note that a substantial part of our Terminal, including our dedicated Truck Marshalling Area, is devoted to the servicing of road transport and that the cost of providing this specialist infrastructure has, like the Terminal as a whole, been subject to the cost increases indicated above.
It is important to note that we have absorbed previous increases in infrastructure costs for several years however this is no longer sustainable. Patrick will apply the surcharge to all road transport operators on exactly the same basis. The charge will be reviewed annually along with our other terms and conditions.
Patrick will continue to strive to maintain exemplary service to all transport operators ensuring rapid turnaround of trucks.
Carrier reliability slips to two-year low
Shipping line performance suffered a higher than expected decline in December to reach its lowest level in two years.
SeaIntel Maritime Analysis’ Global Schedule Reliability report showed that on-time performance slipped from 81.4% in November to 73.7% in December, based on a two-month rolling window, the lowest level recorded in two years.
SeaIntel said the level of decline between the November and December reports was higher than in the past and added that it was a “worrying” development.
“It is not unusual that schedule reliability declines at this time of year,” said SeaIntel Maritime Analysis chief commercial officer and partner Alan Murphy.
“We saw a similar pattern last year, but it is definitely unusual that schedule reliability decreases by more than 7%.
“The drop in performance is across all top 20 carriers, with all having worse performance in December 2013 than they did in both November 2013 and December 2012.
“The decline in performance is not just a regional pattern, as 21 of 32 trade lanes saw performance decline vis--vis November, including all major east-west trades.
“This is surely a worrying development for both shippers and carriers, as neither can be satisfied with such a significant drop in performance.”
SeaIntel said it assumed the performance decline was caused by heavier than normal storms in the north Atlantic and the implementation of (northern) winter/slack season programs.
Box lines warn customers on Chinese fines
Two of Europe’s leading container shipping lines have warned that shippers and forwarders could face being fined or having cargo left unloaded if they do not comply with new Chinese rules.
New regulations from the Chinese Ministry of Transport are due to come into force on February 15. They restrict carriers from entering into contracts and negotiating rates with shippers and non-vessel-operating, common carriers (NVOCCs) that are registered with the ministry.
All contracts and negotiated rates must also be filed with the Shanghai Shipping Exchange before they are used by carriers and customers.
Hapag-Lloyd said that tariff rates must be filed 30 days before vessel departure and customer-negotiated rates 24 hours before vessel departure.
Maersk Line has warned that any income earned that does not comply with the regulation by a non-registered NVOCC will be considered illegal income and could be confiscated by the Chinese government.
Non-complying companies also face a fine the equivalent of five times the illegal income earned.
Penalties for a carrier can include cancellation of its business licence to operate in China or compulsory reduction of port calls.
Maersk Line is urging NVOCCs and forwarder customers to register with the Ministry of Transport or, if already registered, to double-check that registration.
They will need to quote the registration number when asking for a quotation or making bookings.
Hapag-Lloyd warned customers to ensure they had a valid rate at the time of booking. All rates will need to be filed at least three days before vessel departure.
Any shipment without a valid rate by this deadline will not be loaded on the intended vessel, Hapag-Lloyd said.
“All costs and penalties as a result of missing the above deadline will be for the account of the cargo holder,” Hapag-Lloyd said.
Export trade by state and territory revealed by DFAT
Up-to-date data from the Department of Foreign Affairs and Trade (DFAT) has revealed, on a state and territory basis, key insights into Australia’s foreign trade.
While, in 2012/13, Australia exported $301.5bn worth of goods and services, Western Australia was the country’s “export powerhouse,” accounting for 40.7% (or $122.7bn) of Australia’s total exports in 2012/13.
New South Wales accounted for 20.8% (or $62.7bn), Queensland accounted for 18.0% (or $54.3bn), Victoria accounted for 11.9% (or $35.9bn), South Australia accounted for 4.3% (or $12.9bn), the Northern Territory accounted for 2.2% (or $6.7bn), Tasmania and the ACT accounted for 1.2% and 0.4% respectively.
The Northern Territory’s rate of trade growth stood out in 2012/13, with both export and import volumes up more than 15% on the previous year.
Export volumes from Western Australia and Queensland also grew strongly, up 9% and 6%, respectively.
Australian farmers benefited from a 10% increase in exports of unprocessed food to $15.2bn.
Exports of oilseeds (mainly canola) increased strongly for Victoria and NSW (both up around 100% to $721m and $469m respectively).
Queensland registered strong growth in exports of vegetables (up over 50% to $455m).
Western Australia’s wheat exports were up 46% to $2.7bn
New Japan customs rules to begin in March
Australians exporting to Japan will, from March 10, 2014 have to comply with new Japanese customs regulations on advance notice. Australian cargo into Japan will be affected by their new customs regulation rule.
Japan’s new 24 Hour Advance Manifest Rule requires all vessel operators to submit an electronic cargo manifest detailing container cargoes intended for entry into a Japanese port to Japanese customs authorities.
These manifests must be lodged no later than 24 hours prior to vessel departure from the port of loading. There are exceptions to the rule including foreign cargo to remain on board, breakbulk and empty containers.
To ensure an accurate manifest submission within the timeline, the documentation cut-off will be prior to the manifest filing time.
Carriers are imposing a ‘no doc – no load policy’ for shipments where the instruction is not received by the required documentation cut-off.
Failure to comply with the Japan 24 Hour Advance Manifest Rule can result in imprisonment of up to one year and fines of up to JPY 500,000 (approx A$5,430).
Japan is Australia’s second largest export destination, earning $47.8bn in goods and $2bn in services in 2012, according to the Department of Foreign Affairs and Trade.
Looking at containerised cargoes specifically, Australian exports of meat, cheese and seafood to Japan tallied $898.9m during 2012/13.
The category of goods known as ‘manufactures classed by material’ were valued at $154m during the same period.
Meanwhile, exports from Japan to Australia are valued at $19bn with the top three cargoes by total value are passenger vehicles, goods vehicles and refined petroleum.
How KAFTA will affect imports to Australia from Korea
The new Korea-Australia Fair Trade Agreement (KAFTA) will create benefits for both Australia and Korea, including creating changes to imports patterns into Australia.
KAFTA will create advantages for both Korea and Australia. The agreement, when in place, will allow 86% of Korea’s manufacturing, resources and energy exports to enter Australia duty free.
When the agreement comes into force, Australia will phase out the remaining tariffs for the most import-sensitive manufacturing products progressively over eight years.
Products covered by transitional arrangements include certain motor vehicles and parts, steel, chemicals, plastics and textiles, clothing and footwear products.
KAFTA will eliminate 75% of tariffs on cars from Korea immediately upon the entry into force of the agreement.
Tariffs for bigger cars will be reduced over a three year period, while tariffs on components will be phased out over three to five years, according to the federal minister for trade and investment, Andrew Robb.
A bilateral safeguard mechanism will also be in place to address any sudden surge in imports over the transitional period.
“This agreement, fundamentally, backs those things that Australia does well and it backs those things that Korea does well,” Mr Robb said, adding, “the sustainable jobs and growth will come because we are enhancing, we're improving, we're innovating in all of those areas that we have typically been very strong.”
Mr Robb said Australia is looking into agreements with other countries including Japan and China.
New Tasmanian panel to help exporters
Tasmania’s government has introduced a Freight Expert Advisory Panel to provide assistance for small-to-medium businesses.
Tasmanian Govt introduces Freight Expert Advisory Panel to aid small-to-medium businesses.
The set-up of the $1.25m-funded panel – consisting of four experienced freight and supply chain experts – was one of the key recommendations in the Freight Logistics Coordination Team (FLCT) Report released December last year.
The report is a 12-month analysis and examination of freight and supply chain issues, reviewing the challenges and opportunities faced by Tasmanian exporters.
The $1.25m was given by the state government to cover for the panel’s development and running.
Minister for infrastructure David O’Byrne said a recent short pilot program undertaken with three local businesses proved the value of this support to the industry.
“The new panel will work directly with Tasmanian exporters to ensure they are getting the best freight outcomes possible,” he said.
“The panel will also assist in identifying an agriculture demand aggregation case study to be used as a template for other freight-intensive sectors with small and diverse freight users.”
The panel will assist local small businesses by providing free assessments and advice on improving business operations to help create increased profits.
The Freight Expert Advisory Panel will be managed by the state Department of Infrastructure, Energy and Resources.
Panel members were selected through an open tender process and will include George Hurst of GHT Logistics, Ian Locke of Ian Locke Consulting, Larry Mills of Redline Tasmania and Ian Newman of Ian Newman Consulting.
Services of the panel are available to Tasmanian businesses that have less than 200 employees and produce less than 1000 teu in volume per annum.
