2019 has been a big year on so many fronts, both locally and globally – it’s certainly an ever changing world in which we live and work.

While we collectively draw breath to absorb and try to make sense of it all, the management & staff at FJT Logistics would like to take this opportunity to say thank you for supporting our business in 2019. We truly appreciate the challenges, opportunities and support that has come our way from our local and international business partners.

FJT Logistics continues to grow our business, and it is our vision going into 2020 and beyond to provide an even broader range of services to our client  base. We look forward to the new year with optimism, despite the challenges that continue to evolve in the international shipping market.

To our clients, business partners and their families, thank you, we hope you enjoy the festive period, stay safe, and we can collectively head into 2020 re-energised & ready to go.

Operationally, FJT Logistics will be closed on the public holidays only, open for business on all other days.

Cost of shipping still on the rise

Despite it being the time of gift-giving and goodwill, not all parties in the supply chain are on the same page. There are a number of charges that are set to raise the cost of cargo movements. Below are the upcoming increase/changes:

Low Sulphur Surcharge [LSS]

As previously noted in previous broadcasts, the International Maritime Organizations’s mandated Low Level Sulphur fuel for all international shipping comes into effect January 1 2020. 

Shipping lines have been implementing increases in their fuel surcharge effective December 1 2019. Clients will see these Low Sulphur Surcharges (LSS change code) starting to appear on FJT’s invoices, as we pass these new charges to you at cost.

Below are the current LSS rates. There is a reasonably strong potential for the LSS amounts to vary going into 2020, as this new fuel cost becomes established. The Low Sulphur fuel regulation covers all ocean going commercial marine vessels and low sulphur fuels are also used in domestic applications. The implementation of the regulation will be right in the middle of the Northern Hemisphere winter and the initial demand for the fuel will be high.

 
Europe to Australia
Currency USD
 
Shipping Line 20GP 40GP 20RE 40RE
Cosco 184.00 368.00 276.00 552.00
MSC 129.00 358.00 194.00 388.00
OOCL 176.00 252.00 N/A N/A
ANL 260.00 520.00 260.00 520.00
Maersk 193.00 386.00 290.00 579.00
Hapag Lloyd 210.00 420.00 210.00 420.00

Asia to Australia
Currency USD

Shipping Line 20GP 40GP 20RE 40RE
Cosco 146.00 292.00 219.00 438.00
OOCL 110.00 220.00 N/A N/A
ANL 106.00 212.00 106.00 212.00
Maersk 116.00 232.00 174.00 348.00
Hapag Lloyd 125.00 250.00 125.00 250.00

Port Infrastructure Fees: [PIF]

The PIF money tree for the Australian Stevedoring industry is being harvested again – most of the Stevedoring companies have flagged increases in the PIF charges commencing January 2020. The compounding impact of increase after increase is an unregulated, revenue grab from the waterfront operators.

The PIF rates around the country are non-uniform and unsubstantiated in the planned use of the funds. The PIF is now heading north of $100/FCL, with the clubhouse leader around $150/FCL once transport companies’ handling surcharges are added.

Industry is rallying to fight these increases, with peak industry bodies lobbying government port and trade ministers to intervene. In the 2 biggest ports, MEL & SYD, finally the state governments are listening.

In MEL a Port Pricing & Access Review is being finalized and hopefully some government intervention arises from that report.

In SYD, the Minister for Transport have directed Port Botany Stevedores to immediately halt planned PIF increases for 2020. This is the most positive government action so far on this matter. However, in our opinion, the stevedoring companies are becoming more brazen in their approach to such matters and may not react well to such directives.

Watch this space, more updates will follow as we head into 2020.

 

 

Vehicle Booking System: (VBS)

The VBS is the system that transport companies must use to book timeslots to move FCLs in/out of the wharf and empty container yards.

Due to the increased costs of the system, transport companies are starting to broadcast their increased VBS charges, with most increased around the $20-$25 mark.

 

 

 

Biosecurity (Quarantine) Charges

Part 1
A Biosecurity Import Levy was announced in the 2018 Federal budget. Since then committees & working parties were formed to try to work out how to collect this Levy from the import community.
As we know, donkeys are horses made by committees, and that has been proven true once again. After many months of round-table chatter, the Minister for Agriculture has announced that the Biosecurity Levy will not proceed. It is now expected that by or before the May 2020 federal budget, an alternative biosecurity levy will be introduced.
 

You can’t make this stuff up …

Part 2
Apparently unrelated to the Import Levy, the Department of Agriculture unexpectedly has announced an increase in cost recovery fees.
Refer https://www.agriculture.gov.au/import/industry-advice/2019/211-2019

This was just announced 11 December, to come into operation 1 January 2020.

Australian Trusted Trader: The Benefits

Earlier this year FJT Logistics became an accredited Australian Trusted Trader (ATT). We were assessed to have compliant trade practices and a secure supply chain and joined the ATT in partnership with Australian Border Force as a service provider.

We encourage our partners who want to achieve this status to apply for the Trusted Trader accreditation. The ATT program has numerous benefits for accredited importers, exporters and service providers such as:

Importers

  • Duty Deferral
  • Origin Waiver – Allows PTT on originating goods under a variety of FTAs without needing to provide a CoO
  • ATT Origin Advance Ruling
  • Priority treatment of goods at the border
  • Monthly cargo data reports
  • Priority trade services
  • Dedicated Account Manager
  • Partnership with the Australian Government
  • Streamlined access to TSS Visa (subclass 482)
  • Streamlined access to APEC Travel Card
  • Use of the ATT logo – The ATT is recognised as an AEO by customs worldwide

Exporters

  • Mutual Recognition Arrangements – Arrangements with customs from Canada, China, Hong Kong, New Zealand, South Korea, Singapore and Taiwan build confidence in the security of the exporter’s supply chain. Where possible preferential treatment will be given resulting in quicker customs clearance and faster access to international markets.
  • Monthly cargo data reports
  • Priority trade services
  • Dedicated Account Manager
  • Partnership with the Australian Government
  • Streamlined access to TSS Visa (subclass 482)
  • Streamlined access to APEC Travel Card
  • Use of the ATT logo – The ATT is recognised as an AEO by customs worldwide

Service Providers

  • Dedicated Account Manager
  • Partnership with the Australian Government
  • Streamlined access to TSS Visa (subclass 482)
  • Streamlined access to APEC Travel Card
  • Use of the ATT logo – The ATT is recognised as an AEO by customs worldwide

Please contact your local FJT office to discuss the ATT program further and how we can assist you.

 

 

 

Changes to Hydrochlorofluorocarbon (HCFC) Equipment

Rules for importing hydrochlorofluorocarbon (HCFC) equipment are changing on 1 January 2020 as advised by International Ozone Protection & Synthetic Greenhouse Gas Team, Department of the Environment and Energy. 
  • From 1 January 2020 importing any type of HCFC equipment (eg. HCFC aerosols and HCFC fire protection equipment) will be banned, except in certain circumstances. This includes all equipment regardless of having gas in it at the time of import
  • From 1 January 2020 an equipment licence may be granted for import of HCFC equipment only in limited circumstances
  • From 1 January 2020 low volume imports of HCFC equipment without a licence is no longer permitted
For further information please refer to environment.gov.au
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F.J. Tytherleigh Logistics Pty Ltd is an International freight forwarding company offering logistics services to importers and exporters including in house warehousing, pick and pack, storage and distribution.

CONTACT

Australia (Head Office)
Tel: +61 3 9998 7600
Fax: +61 3 9923 6639
Email: fjtmel@fjt.com.au