Welcome to our first newsletter for 2019!
Table of Contents
IMO Low Sulphur Emission Controls
As mentioned in last year’s newsletter, 2019 will be a catalyst for changes in relation to seafreight rates where fuel or Bunker is levied.
The International Maritime Organisation introduces new emission controls which take effect in 12 months’ time. All lines are starting to align charges to reflect the costs to manage these low sulphur content fuels. The mechanism for this charge will be based on the fuel price per tonne combined by the vessel consumption and total TEU being carried through the voyage.
A major change this year on how the shipping lines will charge ocean freight.
Those importers and exporters with ‘all in’ rates will now see the charges separately as Freight and BAF. The BAF will now fluctuate in line with the price of fuel over each quarter and the new emission charges will be included in this.
Please ensure you contact your Account Manager for new updated offers from January 2019.
Chinese New Year
This important time of the new year will occur in the first week of February (05/02) this year.
Please ensure you plan ahead to avoid any disappointment with delayed bookings.
Most container rates ex North China are valid till mid-January where shipping lines tend to gauge the market on space and utilisation before committing rates further into February and quarter one.
Customs & DAWR Updates
CPTPP – Progressive Agreement for the Trans-Pacific Partnership
Mid December saw DFAT release the guidelines to this new Free Trade Agreement which officially came into force on the 30 December 2018. The new agreement will eliminate more than 98% of tariffs among the eleven countries and builds on market access we already enjoy through current FTA’s with individual countries in the region.
For more information please contact your Account Manager and discuss how this trade agreement can assist Importers and Exporters.
Air Cargo Security Requirements
Export Air Cargo Security is formally changing requirements as of 1 March, with the greatest changes being a piece level examination or being a ‘Known Consignor’ for all airfreight shipments out of the country to any destination.
We encourage all customers currently or contemplating airfreight exports to speak to our dedicated Account Managers around changes to delivery times, increases in costs and information concerning ‘Known Consignor’ schemes. Please do not leave arrangements to the last minute concerning these important changes or there will be a high risk of delay to your air cargo shipments.
BMSB measures claimed another break bulk vessel on arrival with stink bugs found on board the MV Thalatta. The shipping line and DAWR worked closely together to ensure minimal delays once the vessel could dock. This also serves a reminder that it is becoming increasingly difficult to manage cross contamination with break bulk cargo. If untreated ‘break bulk’ cargo arrives into Australia untreated the department will not allow the unloading of cargo. This will be re-exported out of the country.
In late December DAWR suspended a further three Italian suppliers of Fumigation where the department deemed the offshore providers to have flawed treatment practices or fraudulent documentation. Treatment certificates therefore were not accepted and there was no allowance for shipments ‘in transit’.
There is now a growing concern that all Italian treatment providers are suspending operations voluntarily as a show of support for the three (3) providers being suspended. The DAWR have not received any treatment certificates from Italy since the 21 December which indicates a clear message to the Australian Government. Italian Fumigators Association will meet with Australian Quarantine on 14 January to discuss the bans on fumigators and methods to move forward.
For those importers shipping containers from Italy and any other BMSB target countries it is imperative that your supplier is aware of and is referring to the current ‘offshore’ approved provider list as indicated in the below link:
Our team will also keep you up to date on any changes that may directly involve your shipments, however as the situation is volatile please ensure you discuss any pending shipments with your Account Manager.
Landside Logistics Updates
DP World Infrastructure Fee Increases
As indicated in our previous newsletters, DP World has, from 1 January, increased their Infrastructure fees at terminals in Brisbane, Sydney and Melbourne. Terminal Booking fees are also being adjusted in line with the Infrastructure fees.
We do expect the other terminals to increase their Infrastructure fees this year sometime. Please ensure you check our upcoming Newsletters for more information as it comes to hand.