Waterfront Stop Work Meetings

What would the lead up to Christmas be without some industrial action on the waterfront?

This week there have been a series of Maritime Union Stop Work meetings across the Eastern Seaboard, impacting the major DP World Terminals.

Melbourne’s Stop Work Meeting was on Wednesday 6 November –the day after MEL Cup holiday, what a coincidence, Brisbane was on Thursday 7 November and Port Botany, Sydney was Friday 8 November.

These meeting are typically 3-4 hour meetings, but with the wind down and re-boot, they generally impact on a whole day’s productivity.

IMO2020 – Low Sulphur Marine Fuels to Push Up Freight Costs

A new regulation that sets a much lower global limit on sulphur content in marine fuel is on the horizon, but will lead to higher shipping costs.

Beginning on January 1 2020, the International Maritime Organization controlled new marine fuel sulphur content limit for oceangoing vessels will be reduced to 0.5% by weight, down from 3.5%, which was established in 2012. The aim is to reduce sulphur oxide gas emissions. IMO2020 will be applied worldwide and in all sectors in which fuels are used in the open sea. Many shipping lines have voiced their support for IMO2020 changes, particularly for environmental benefits.

The price of low Sulphur fuel will be higher than current marine fuels and many ships will require significant conversion work to be compliant, not least of which is to ensure current fuel tanks are empty, cleaned and ready to accept the low Sulphur fuels. With some larger vessels having fuel tank capacity of 8,000 tonnes, this is an enormous challenge in terms of planning and costs. 

Indicative figures from major shipping lines have suggested that their total conversion costs may exceed US$1b per fleet. Already some shipping lines are charging LSS (Low Sulphur Surcharges), as they build up funds for the conversion costs. As we move towards the implementation of ISO2020 (at the peak of the Northern Hemisphere winter), the demand for low sulphur fuels will determine the variable pricing, and there is a strong expectation that the overall LSS charges will increase, and these charges will flow through to the importers and exporters. 

Port Infrastructure Fees – The money tap has been turned on again…

Following on from our recent Newsflash on the Port Infrastructure Fees (PIF) increasing at Hutchinson Terminals, surprise, surprise, DP World Terminal has announced an increase of PIF in Fremantle, at about 500% of the current rate. Granted the Fremantle PIF rate was low initially, but these unregulated rate hikes continue to impact the Import/Export community.

There will be more PIF increases announced. DP World has even applied their own spin to the matter, trying to camouflage the fee by calling it a ‘Terminal Access Fee’.

The PIF is billed on 7-day terms to the transport providers, and they, quite rightly in our view, add a surcharge for the financing and processing of those PIF Fees that were never a part of their world a few short years ago.

Higher infrastructure charges imposed on trucks and rail operators at ports helped the container stevedoring industry increase average revenue per container lift for the first time in seven years, according to the ACCC’s Container Stevedoring Monitoring Report 2018-19.

Revenues generated by the infrastructure charges rose by 63% in 2018-19 on the previous year, the report shows.

The lobbyists are lobbying, the ACCC are ‘looking into it’ as they so often seem to do, but it is bleedingly obvious the State Government’s need to regulate the PIFs just as they do for general Port Service Charges. Less easy to achieve with privatized ports.

 

 

Australian Trusted Trader (ATT) Accreditation

FJT Logistics Director, Alessandro D’Orto and National Operations Manager, David Browne attended the ATT recognition ceremony last month. The official presentation was held by Assistant Minister for Customs, Community Safety and Multicultural Affairs, the Hon. Jason Wood MP.

It was a proud moment to be recognised as a trade partner for Australian Border Force.

The ATT is assessed against World Customs Organisations standards and the benefits include a secure supply chain, reducing red tape at the border and expediting the flow of cargo in and out of Australia.

We look forward to sharing these benefits with all our partners.

 

 

 

 

 

 

Brown Marmorated Stink Bug (BMSB) Update

Further to our recent Newsflash regarding the 200 BMSB affected shipments treated offshore that have been ordered in for re-fumigation in Australia, comes the announcement of the suspension of an approved off-shore treatment provider in Turkey. As Turkey is one of the new countries added to the BMSB Risk Countries this season, this announcement was not unexpected – it does seem to take a while for the origin side treatment providers to get a handle on the required compliance levels.

The Department of Agriculture has announced that following the identification of significant critical non-compliance, they have suspended Kinetik Cevresagligi Amb. Tar. Muh. Dan. San. Tic. Ltd. Sti. (Kinetick) (AEI; TR4001SB) from the Offshore BMSB Treatment Providers Scheme.

Kinetik (AEI; TR4001SB) will be listed as ‘suspended’ on the Offshore BMSB Treatment Providers Scheme’s List of approved BMSB Treatment Providers and may no longer perform BMSB treatments on Australia bound consignments. Any consignments fumigated by Kinetik (AEI; 4001SB) will be re-treated or exported on arrival in Australia. The decision is effective immediately and no allowance is made for goods in transit.

FJT Logistics is noticing quite a spike in the number of FCL treated off-shore that are being directed to be inspected on arrival in Australia for assessment of the effectiveness of the treatment.

Burnt Pine Longicorn Beetle (BPL) Update

The Stink Bug may get all the headlines, but there are other agricultural pest risks that need to be managed by the Department of Agriculture’s biosecurity team.

Let us introduce the Burnt Pine Longicorn Beetle, and the risk season has just commenced.

The BPL beetle is likely to enter Australia on vessels, imported timber or machinery and other cargo from New Zealand. Adult beetles seek shelter in dark secluded areas during daylight and in imported cargo or vessels.

At this stage, the reporting responsibility for BPL risk sits with the vessel masters, but of course there will be flow-on ramifications if the BPL is found on arriving vessels. This risk issue is not at the BMSB level but is another biosecurity risk that has the potential to impact on import consignments.

Christmas Closure Dates

As Christmas is fast approaching we would like let all our partners know that we will be closed only on the days of the public holidays. We will be open for business, with slightly reduced staff numbers. Our closing days are:

25th December 2019 – Christmas Day 
26th December 2019 – Boxing Day
1st January 2020 – New Year’s Day

We request that you please contact your local FJT office with your closing dates, this will ensure we are aware of when deliveries will need to cease and recommence during this season.

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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

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Tel: +61 3 9998 7600
Fax: +61 3 9923 6639
Email: fjtmel@fjt.com.au