Shippers Link - December 9, 2015

Below graph shows the BAF trends for 2015; 

TFA TFG and AFDA Lifting for 2015

We now have figures available to end of 3rd Quarter of 2015 for both TFA and TFG.  

With regards to AFDA figures we have been asked not to publish them due to the sensitive nature of this small trade route. I find this hard to comprehend but for the moment will accede to the wishes of the members of this discussion Agreement. Further clarification will be sought before determining our position.   

Privatisation of the Port of Melbourne

 Since the last edition of Shippers Link there has been much postulating by both major political parties whilst the Upper house Inquiry draws to an end and we await the Committee's findings.  

Some concessions have been made by the government to try and appease the ACCC and interested port users but the 6 pointed issues that we raised in our submission and refiterated when we appeared before the Inquiry Committee are yet to be addressed by government.  

The final report is due now and should be before parliament for the pre Christmas sittings at which time we will learn whether the government has been listening or not.  

More to come in the next few days and weeks. 

Note: For full details of APSA's submission and subsequent media releases go to our website – news. 

Update on the Harper Review – Part X

The Federal Government has released its response to the Competition Policy Review undertaken by the Harper Review Panel. The full document is available to read on the following government website (http://www.treasury.gov.au/PublicationsAndMedia/Publications/2015/CPRfresponse). The section relevant to Part X is on page 6 (as shown below); 

In essence the following will transpire as the government wants further consultation on the matter.  

The government will introduce legislation to bring Block Exemptions – to be known as Class Exemptions into force.  

This will likely take at least 12months to introduce as it will be part of the total recommended changes agreed to by the government as a result of the Harper Revue.  

Part X as it exists now will remain for at least the next 2 – 3 years whilst the legislative process and consultation between government ACCC and relevant stakeholders such as APSA and SAL collaborate and investigate the best way to utilise Class Exemptions and what should be retained discarded and/or introduced to ensure any legislation is applicable to the current and future Liner Shipping Industry. The government will make a final decision on the future of Part X when it has this information.  

APSA has an important role to play in this as do you It is important that you make your views fears questions and recommendations known to us to be taken forward in discussions.  

IMO / AMSA Verification of Container Mass Weights

To follow up the article in the last Shippers Link on this subject I can confirm that AMSA will be introducing a regulation requiring a verified declaration of the mass weight of each and every container to be exported through Australian Ports that will come into effect from 1st July 2016.  

I attended an information session initiated by AMSA on 2oth November 2016 and emailed all members a summary of the session plus relative papers which will also soon be available on our website.  

The essence is that the shipper who is named as such on the Bill Lading will be responsible for the accuracy of mass container weights declared. At this stage the PRA is the preferred document to carry the declaration and to accommodate there will need to be some changes to this documents format.  

There are 2 methods of verification acceptable: 

1. Weighing the packed container. 

2. Calculating the mass weight of the packed container using calibrated and certified equipment and/or systems.  

There is a plethora of questions on methology practicalities acceptable methods and timeframes to be sorted out and there isn't much time to do so. 

AMSA will be running a series of "Road Shows" commencing early in the New Year and I strongly recommend that you make it a priority to attend.  

In many cases APSA members will already be compliant and AMSA is certain to look to engage shippers to assist them to set up appropriate and efficient methods op operation but there will be members who are not compliant and if you fit into this category you need to find a way to comply now.  

This issue will not go away and APSA will try to keep you on the front foot by distributing all information on the issue that comes our way.  

If you want to contact AMSA directly to discuss I have contact names and numbers that I will pass to you on request. 

Members and Sponsorships Update

We have 2 new sponsors who have come on board in recent times.  

They are Insync Personnel a recruitment agency who offer a complete suite of staff placements from the top of the tree down. We will announce a package on offer to APSA members by Insync Personnel towards the end of January 2016 when completed.  

The second is Patrick Stevedores who like DP world Australia now have a desire to work closely with shippers on all matters of customer service.  

We welcome both to the fold and trust that the new relationship will be long lasting and fruitful to all concerned. 

Increasing membership numbers of APSA will again be a priority during 2016 and we welcome suggested nominations to be followed up by this office from the current membership. 

What are the shipping lines up to?

 1. By now everyone is aware that NYK Line is to withdraw from the Asiaf Australia container trades by mid 2016. This is sure to trigger significant changes and reforganisation of all consortia and services that NYK is currently involved in. 

 2. The G6 Alliance is looking a little shaky at the moment with the proposed sale of NOL to CMA CGM subject to approval by US European and Chinese regulators and the possible merger of Cosco and China Shipping both in the wind. This added to a disappointing quarterly result of late suggested some serious naval gazing from within the group as service withdrawals late October/early November didn't seem to work either.  

3. The NZS Consortium in the Sth. East Asia/Australia/NZ trade lane has gained ANL following Hanjin Shipping pulling out of the KIX service in early October.  

4. News out of Maersk Line's Head Office is that it about to cut its cloth to suit in an effort to become leaner and simpler organisationally. Deferred investments in new vessels cancelled options to buy larger ships and workforce streamlining are being initiated to address market downturn and defend its position.  

5. Swire shipping is extending its Australian East coast/Papua NG service to include calling at Hobart. This direct call will have a 9 day frequency connecting Hobart to Sydney & Brisbane and Melbourne to Hobart. There is talk of connecting Hobart to global destinations via transhipments. 

Coastal Shipping

 The federal government's proposed changes to streamline the 2012 Coastal Shipping Legislation appears to have stalled after being rejected by the Senate. Stay tuned for the next instalment to play out on this important issue. 

Global Shippers Forum Weighs into Sea Freight Emissions Debate

The Global Shippers Forum (GSF) has put its voice behind stronger action within the sea shipping industry as Chris Welsh Secretary General of GSF said in a recent policy brief ahead of the COP21 Climate change conference "All stakeholders agree that additional measures are needed to reduce CO2 emissions from the maritime sector. The debate now is how to get this done." 

Whilst there are many industryshipping groups environmental agencies not for profits and NGO's who all have a voice – the push for and implementation of change logically should come from the International Maritime Organisation (IMO). 

Chris goes on to say "We believe the IMO should retain responsibility for this issue given its strong track record but more progress is needed on appropriate MarketfBased Measures (MBM)". 

The key messages that come out of this latest brief from the GSF are; 

The shipping industry is serious about reducing emissions, and getting on the front foot to implementing strategies that minimise global emissions – before regulations come from other bodies (I.e the European Union)

 

GSF Strongly supports schemes that enable the accurate reporting of shipping emissions and incentivise action to reduce emissions

 

GSF supports the US Ship Efficiency Credit Trading (SECT) scheme.  Under this reporting scheme the onus is placed on vessel owners to deliver efficiencies on their vessels to earn credits or alternatively having to buy credits if they have inefficient vessels / fleets

 

GSF is looking to protect shippers bottom line by steering away from carbon pricing and market based mechanisms that could be passed on to shippers