FTA/APSA Weekly Report 2019/49 - sponsored by ANA - Inspiration of Japan

Tuesday, December 3, 2019
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Welcome to our Weekly Report providing the latest market intelligence for trade professionals 

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CONTENTS
ADVOCACY
MEDIA
FEATURED EVENT
ACROSS BORDERS
TRADE STATISTICS
SHIPPING
LOGISTICS
AIRFREIGHT

INTERNATIONAL
BORDER
BIOSECURITY
INDUSTRY
TRADE
ANTI-DUMPING
BUSINESS SALES
CANDIDATE OF THE WEEK
TRAINING & EVENTS
SPONSORS
NOTE - some articles are accessible only with FTA / APSA MEMBER LOGIN 
ADVOCACY
Biosecurity Futures
A new group, Biosecurity Futures, has been established to provide industry intelligence, advice and ideas on biosecurity matters directly to government.
 
The Biosecurity Futures group will be chaired by Minister Bridget McKenzie and meet twice a year, or as needed, to discuss biosecurity concerns, the impact of biosecurity measures on various industries—not just agriculture—and ways to improve the biosecurity system.  This group was one of the eight recommendations put forward to me by the Biosecurity Imports Levy Industry Steering Committee in June this year.
 
The eight initial members who have agreed to participate are: 
 
  • Paul Zalai, Freight and Trade Alliance (FTA), Australian Peak Shippers Association (APSA)
  • Margo Andrae, Australian Pork Limited
  • Stephen Annells, Fertilizer Australia
  • Carolyn McGill, Food and Beverage Importers Association
  • Jane Lovell, Seafood Industry Australia
  • Tania Constable, Mineral Council of Australia
  • Tony Mahar, National Farmers' Federation
  • Margy Osmond, Tourism and Transport Forum. 
For more information about Biosecurity Futures visit the department's website.
Infrastructure Surcharges - update on advocacy activity 
At a time when traders, logistics providers and the agriculture sector need it most, the Minister must stand up as a true leader.

Victoria International Container Terminal Limited (VICT) has become the first Australian stevedore to crack the $100 mark for Infrastructure Surcharges and have conveniently cleared the path for others to continue the pattern of spiralling increases in terminal access charges - a consolidated list of national stevedore Infrastructure Surcharges is available ... read more
Sydney – David Scott (FTA Member Representative Sea Freight / Commercial Freight & Logistics) and I met 5 November 2019 with Peter Achterstraat AM (NSW Productivity Commissioner) and his senior advisors - we thank the Hon. Andrew Constance (Minister for Transport and Roads and Member for Bega) for setting up this engagement following our meeting with him on 12 August 2019.

Freight & Trade Alliance (FTA), the Australian Peak Shippers Association (APSA) and Container Transport Alliance Australia (CTAA) [the Alliance] will be supporting the NSW Productivity Commissioner on agreed action items including collation of commercial impacts generated by Infrastructure Surcharges.

Case study - Fletcher International Exports (FIE), based in Dubbo, move in excess of 23,000 full containers of agricultural products annually through Port Botany – Infrastructure Surcharges are generating a significant reduction in margins which are passed down the supply chain to the farmer through lower paddock prices for their grain "For FIE's NSW business alone the infrastructure levy equates to a whopping $1,775,600.00 paid annually, ultimately creating the equivalent void back with regional farming communities"  - refer HERE – for further detail contact pzalai@FTAlliance.com.au

Melbourne - the Victorian government commissioned a Port Pricing and Access Review led by Deloitte Access – a summary of the formal submission prepared by Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) is available HERE.

The Alliance have reached out to Deloitte, Freight Victoria and the Minister for Ports and Freight for an update on the release of recommendations and the Victorian government responses - refer HERE.

I met with Roma Britnell MP (Shadow Minister for Ports and Freight and Member for Warrnambool) in Melbourne on 12 November 2019 to elaborate on matters raised in the FTA / APSA submission.
  
Fremantle – FTA / APSA provided a submission to Fremantle Ports on 27 Sept 2019 warning of the escalating threat of Infrastructure Surcharge increases to Western Australian operations and seeking intervention via the Ports' stevedoring leasing renewal arrangements - refer HERE. As outlined in Monday's notice from DP World Australia, these concerns have clearly come to reality with their Infrastructure Surcharge (now referred to as "Terminal Access Charge") scheduled to increase from $8.22 (excl GST) to $45 (excl GST) per container effective 1 January 2019 - refer HERE

We are delighted to see the strong and immediate response from the Fremantle Ports CEO, Chris Leatt-Hayter 

"DP World's action is disappointing, given the substantial effort both parties have made to reach agreement on the new lease arrangements over the past months. It also confirms Fremantle Ports' concerns about the level of future infrastructure surcharges that may eventuate if no agreed approach is in place under the new lease. Fremantle Ports is currently considering its position with regard to longer-term lease arrangements at Fremantle. It will continue to strive for fair and reasonable commercial arrangements that are in the interests of all port stakeholders."

The full statement from the Fremantle Ports' CEO titled INFRASTRUCTURE SURCHARGES - DP WORLD FREMANTLE CONTAINER TERMINAL is available HERE . John Park (Head of Business Operations, FTA / APSA) met with Chris last week and will keep members up to date with developments
 
Radio commentary from the WA Ports Minister, Hon. Alannah MacTiernan available HERE

National - in March 2019, FTA / APSA presented to the Senate Committee on Rural and Regional Affairs and made a formal submission to the "inquiry into Policy, Regulatory Taxation, Administrative and Funding Priorities for Australian Shipping recommending:

"That the Government takes urgent action to address unregulated and spiralling infrastructure charges. While shipping lines have been the beneficiaries of increased competition in stevedoring, Australian shippers have not seen any of those benefits and now are paying twice for container terminal services. It is an unsustainable situation, it is damaging to our economy, and it will only worsen if there is no intervention" - full submission is available HERE.

The alliance has maintained our engagement with the Australian Competition and Consumer Commission (ACCC) and delighted that they have met their commitment to support for our advocacy activity on this matter. 

The Container stevedoring monitoring report 2018-19 released 6 November 2019 reported higher Infrastructure Surcharges 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.

One of the biggest threats to logistics providers is in the event that stevedores expand "vertical integration" and leverage Infrastructure Surcharges for commercial advantage – we were delighted to see the ACCC state a firm warning for the stevedores not to favour their own vertically affiliated land transport or intermediary logistics businesses by waiving or reducing fees.
 
"While multiple stevedores are vertically integrated, there is currently no evidence to suggest that this conduct is occurring. However, the ACCC could take enforcement action should such conduct be detected and it occurs with the purpose or effect of substantially lessening competition in a market,"

The full report is available HERE and the accompanying ACCC Media Release titled Stevedore's revenue up due to higher infrastructure charges is available HERE
FTA/APSA IN THE MEDIA
FREIGHTWAVES - CONTAINER TERMINALS BENEFIT AT THE EXPENSE OF TRUCKING COMPANIES, REGULATOR REVEALS

Paul Zalai, the founder of industry association Freight & Trade Alliance (FTA) describes the fees as having a "crippling impact on exporters."

By way of example, Fletcher International Exports of Outback New South Wales, comments that the "situation deeply concerns our business."

Roger Fletcher comments that his company "has been a consistent exporter of high and low value Australian products for almost 50 years… Port Botany's [Sydney] average Infrastructure levy from Jan. 2020 will be over $77.20 per laden box without any further rises from Patrick's port factored in. This equates to $3.15/metric ton of grain packed by FIE in a container, putting FIE at a significant disadvantage to bulk vessels, forcing the business to consider bulk alternatives. This reduction in margin is inevitably passed back down the supply chain to the farmer through lower paddock prices for their grain. For FIE's NSW business alone the infrastructure levey equates to a whopping $1,775,600 paid annually… To extrapolate these costs across Port Botany entirely there are approximately 1.8 million full containers moved through the port annually, which is $138,960,000 in infrastructure levies paid by importers / exporters in Sydney, NSW, alone."

Opposition is growing
Opposition to the access fee/infrastructure surcharge hikes appears to be growing across the local supply chain.

Late in September this year, the FTA wrote to Fremantle Ports complaining of the escalating infrastructure charges. Fremantle Ports is a state-owned facility but it operates a landlord container terminal model. DP World Australia is one of the lease-holding container terminal operators. It also hiked its Infrastructure Surcharge from A$8.22 to A$45 per container effective as of January this year. And that price hike doesn't even include the national 10% sales tax.

FTA sought the intervention of the port operator, Fremantle Ports, which is in negotiation with the container terminal operators over lease renewals. ... read more
DCN - VICT ANNOUNCES NEW YEAR SURCHARGE HIKE

Freight and Trade Alliance director and Australian Peak Shippers secretariat Paul Zalai said VICT had become the first Australian stevedore to "crack the $100 mark for infrastructure surcharges" and proved it was time for the government of Victoria to act.

Mr Zalai said VICT had "conveniently cleared the path for others to continue the pattern of spiralling increases in terminal access charges".

"The international trade sector, and other state regulators, wait with interest to see if and when the Victorian government will reveal the findings of their Port Pricing and Access Review," Mr Zalai said.

"Low margin commodity exporters are particularly hardest hit by these unfettered and unregulated price increases at a time also when drought and other supply chain pressures are impacting export growth generally.

"At a time when traders, logistics providers and the agriculture sector need it most, we need the Minister [Melissa Horne] to stand up as a true leader." ... read more

ATN - VICT infrastructure surcharge on full containers soars
Freight & Trade Alliance (FTA), the Australian Peak Shippers Association (APSA) and the Container Transport Alliance Australia (CTAA), which is one of two industry alliances battling the access charges, wrote to the Victorian ports and freight minister Melissa Horne three weeks ago, around the time of DPWA's own charges rise, seeking clarity on the report and registering it .s opposition to that rise, FTA director Paul Zalai reports.

 "Low margin commodity exporters are particularly hardest hit by these unfettered and unregulated price increases at a time also when drought and other supply chain pressures are impacting export growth generally.

"At a time when traders, logistics providers and the agriculture sector need it most, we need the Minister to stand up as a true leader."

ATN has sought comment from the minister ... read more
FEATURED EVENTS
24 CPD POINTS - CPC & CBC - BORDER AND BIOSECURITY COMPLIANCE PROGRAM - member early bird rates now available
Sydney
Wednesday 1 April 2020 [REGISTER HERE]
& repeated
Saturday 4 April 2020 [REGISTER HERE]
8.30am to 4.30pm - Novotel Sydney Brighton Beach Hotel - Cnr Grand Parade and Princess Street, Brighton Le Sands

Melbourne
Friday 17 April 2020 [REGISTER HERE]
& repeated
Saturday 18 April 2020 [REGISTER HERE]
8.30am to 4.30pm - Hyatt Place Melbourne - 1 English Street, Essendon Fields

Perth
Saturday 2 May 2020 [REGISTER HERE]
8.30am to 4.30pm - Hyatt Regency Perth - 99 Adelaide Terrace, Perth

Brisbane
Wednesday 20 May 2020 [REGISTER HERE]
8.30am to 4.30pm - Novotel Brisbane Airport - 6 – 8 The Circuit, Brisbane Airport
ACROSS BORDERS
PROTECTING AUSTRALIA FROM BIOSECURITY THREATS
Thank you once again to Senator the HON. BRIDGET McKENZIE, Deputy Leader of the Nationals / Minister for Agriculture for his Foreword to the Summer 2019 edition of Across Borders
"With effective collaboration and using a staged and considered approach, we can streamline our biosecurity procedures, while upholding the security of the system. Together we will explore ways government and industry can work together to lift our preparedness and to ensure a sustainable funding base for our biosecurity programs.

This approach will safeguard the broader operation of our national biosecurity system and ensure it is affordable. The benefits for our agricultural industries, our rural and urban communities, our businesses, our environment and our national lifestyle heavily outweigh the impost."


Full article available HERE

Contact us to showcase your business or service via a member profile, thought leadership contribution or advertising via Across Borders and our associated media. 
TRADE STATISTICS
LOGIN REQUIRED
 
SHIPPING
APSA has received advice from the Registrar of Liner Shipping via a Form 4 Notification of the happening of an affecting event, in accordance with s10.43 of the Competition and Consumer Act 2010.
 
The notification was submitted by Ocean Network Express (ONE) and advises of the indefinite suspension of the NEAX service commencing 17 December 2019.
 
The notification further advises carriers will make alternative arrangements for provision of outwards and inwards liner cargo services during service suspension.
SHIPPING INFORMATION 19th TO 25th NOVEMBER 2019

CMA CGM
FAK Rates - From Asia to North Africa … read more
FAK Rates - From Asia to the Mediterranean … read more
GRR - From Asia to West Africa … read more
FAK Rates - From Asia to North Europe … read more
FAK Rates - From Asia to Pointe des Galets, Reunion … read more
GRR - From Asia to Mozambique and Madagascar … read more
PSS - Reefer Cargo from North Europe to Far East and Middle East … read more
THC UPDATE - Ennore (India) import/export … read more
 
HAMBURG SUD
North Europe to Middle East Peak Season Surcharge … read more
North Europe to Asia Peak Season Surcharge … read more
 
HAPAG LLOYD
India - Revision of Mandatory User Charge … read more
GRI – East Asia to USA and Canada … read more
Levante Express Service(LEX) – Structural Service Changes … read more
Worldwide Price Announcement – IMO 2020 Transition Charge (ITC) … read more
Canada – Revised Inland Haulage Tariff … read more
Price Announcement for PSS – Southern Turkey Ports to Middle East & ISC… read more
Price Announcement - East Asia to North Europe and Mediterranean … read more
South America East Coast Service (SEC) - Blank Sailing … read more
Italy – Update on situation in Genoa port area … read more
USA & Canada - Inland Fuel Surcharge Rail and Combined Moves … read more
North America - Currency Adjustment Factor as from January 1, 2020 … read more
Price Announcement - PSS East Asia to Mediterranean … read more
 
MAERSK
Rate Announcement – Scope North Europe to Far East Asia and Middle East … read more
Terminal Handling Service - Origin (OHC)/Destination (DHC) – South Korea to/from World … read more
Seasonal Blanking advisory for Mediterranean Services … read more
Peak Season Surcharge (PSS) – North Europe to Middle East … read more
Peak Season Surcharge (PSS) – North Europe to Far East Asia … read more
Empty Return policy for Damaged Containers- United Arab Emirates … read more
Terminal Handling Service – Origin (OHC)/ Terminal Handling Service – Destination (DHC)– Scope United Kingdom to/from World … read more
 
OOCL
OOCL TIP's … read more
Customer Advisory - Christmas 2019 and New Year 2020 … read more
?Rate Restoration, Korea, China, Taiwan and Hong Kong – Australia Trade … read more
Suspension of Coastal Service during Christmas & New Year … read more
 
YANG MING
CN Rail Labor Strike Ended … read more

 

LOGISTICS
28.11.19 READ THE EMAIL FOOTER - LESSONS FOR FREIGHT FORWARDERS AND CUSTOMS BROKERS WHEN CONTRACTING WITH CLIENTS ... read more
28.11.19 PORT OF NEWCASTLE FURTHER INVESTMENT UNCERTAINTY FOR HUNTER COAL INDUSTRY ... read more
29.11.19 TASMANIA LOGISTICS COMMITTEE NOVEMBER NEWSLETTER 2019 EDITION ... login required
29.11.19 VICT SETS AN ALARMING NEW BENCHMARK ON INFRASTRUCTURE SURCHARGES ... read more
2.12.19 CHRISTMAS - NEW YEAR TERMINAL OPERATING HOURS ... login required
AIRFREIGHT
2.12.19 FIATA REVIEW NO. 130 ... read more
INTERNATIONAL
29.11.19 NZ Customs Release 536 ... login required
BIOSECURITY
CONTINUED BISOECURITY COMPETENCY (CBC) NCCC & AEPCOMM - APPROVED ARRANGEMENTS ... read more
27.11.19 UPDATE YOUR SUBSCRIPTION WITH THE DEPARTMENT OF AGRICULTURE TO RECEIVE BMSB NEWSLETTERS ... read more
27.11.19 DEPARTMENT OF AGRICULTURE 2019-57 - PLANT EXPORT OPERATIONS – CHANGE IN EUROPEAN UNION CONDITIONS FROM 14 DECEMBER 2019 ... login required
27.11.19 PAUL ZALAI - MINISTERIAL APPOINTMENT TO BIOSECURITY FUTURES ... read more
28.11.19 RED FIRE ANTS DETECTED IN FREMANTLE ... login required
28.11.19 DEPARTMENT OF AGRICULTURE 2019-58 - COST RECOVERY DESIGN – STAKEHOLDER ENGAGEMENT SESSIONS ON THE REDESIGN OF OUR FOOD AND PLANT EXPORT COST RECOVERY IMPLEMENTATION STATEMENTS ... login required
28.11.19 BMSB NEWSLETTERS ... login required
28.11.19 GENERAL UPDATES FOR THE 2019-20 BMSB SEASON EDITION #1 2019 ... login required
28.11.19 BMSB NEWSLETTER MASTER CONSOLIDATORS EDITION #1, 27 NOVEMBER 2019 ... login required
1.12.19 Minister for Agriculture Foreword -  Protecting Australia from bio security threats... read more
2.12.19 DEPARTMENT OF AGRICULTURE 199-2019 - COLS, MARS, OPP AND PEBS UNAVAILABLE FROM 23:30 FRIDAY 06 DECEMBER TO 04:30 SATURDAY 07 DECEMBER 2019 (AEDT) ... login required
2.12.19 DEPARTMENT OF AGRICULTURE 200-2019 - COLS, OPP AND PEBS UNAVAILABLE FROM 23:00 SATURDAY 07 DECEMBER TO 03:00 SUNDAY 08 DECEMBER 2019 (AEDT) ... login required
2.12.19 DEPARTMENT OF AGRICULTURE 201-2019 - LODGMENT AND ASSESSMENT OF BIOSECURITY ONSHORE RESULTS INCLUDING TREATMENT AND IMPORTED PIG MEAT REQUESTS VIA EMAIL ... login required
2.12.19 DEPARTMENT OF AGRICULTURE ANIMAL BIOSECURITY ADVICE 2019-A10 ... login required
BORDER
28.11.19 TRUSTED TRADER NEWS - FOCUS ON THE ORIGIN WAIVER BENEFIT. ... login required
28.11.19 A GUIDE TO PROFESSIONAL SERVICE FEES - MAINTAINING COMPLIANCE WITH COMPETITION LAWS ... read more
2.12.19 AUSTRALIAN BORDER FORCE (ABF) WINDOWS OS UPDATE 021219 ... login required
INDUSTRY
27.11.19 ABF TC GAZETTE 19/46 ... read more
TRADE
There are no trade-talk newsletters until 23rd January 2020 

28.11.19 DFAT BOOSTING EXPORTS FOR AUSTRALIA'S SERVICES SECTOR ... read more
28.11.19 DFAT INDONESIA, HONG KONG AND PERU TRADE DEALS TO OPEN NEW DOORS FOR AUSTRALIAN EXPORTERS ... read more
ANTI-DUMPING COMMISSION NOTICES - ADN
ANTI DUMPING NOTICES 19TH TO 25TH NOVEMBER 2019

2019/138 [pdf 319.92 KB] , Aluminium extrusions, Expiry of Measures, China, 26/11/2019
2019/145 [pdf 164.36 KB] Case 509 , Aluminium extrusions, Further extension of time granted to issue the Final Report, Malaysia, 2/12/2019
2019/144 [pdf 162.68 KB]  Case 507 , Power transformers, Extension of time granted to issue the Final Report, China, 2/12/2019
BUSINESS SALES

More about our Classifieds service available HERE

QUOTE 2019/02 - Looking to buy - Melbourne, Adelaide or Fremantle Perth

Established Australian owned Freight Forwarder & Customs Broker is seeking an opportunity to purchase an established small to medium Freight Forwarder or Customs Broker business located in Melbourne, Adelaide or Fremantle Perth. Ideally your business has been established for 10 years or more, has a stable customer base and EBIT performance. You may-be looking to retire in the coming years and want an exit strategy from your business. We will also consider business where there is more than one partner and we enter the business in partnership with the remaining partners. Companies that may specialise in a certain industry or business segment will be looked upon favourably, likewise those who specialise in P/E need not express interest. Please forward your confidential expression of interest to ffcb4sale@outlook.com all emails will be treated strictly confidential between interested seller and buyer. Please include your company name and website. We are a member of FTA and this is a genuine expression of interest for the right seller.
QUOTE 2019/01 - Corporate Customs Broker Licence


Corporate Customs Broker Licence (valid to 30 June 2021) is available for transfer to a business entity which has a nominee licensed customs broker in its employ.


If you are interested in knowing more, please make direct contact with the client at gokbo@tpg.com.au

 
FINANCE REPORT

Weekly Market Commentary
Markets closed the week lower, after setting new records all week, supported by growing confidence over 'Phase One' of the US/China trade agreement.

Friday's correction did not manage to damage the huge gains for November, as markets traded lightly on 'Black Friday' and the close of the half days trade on Wall Street. President Trump signed a congressional bill supporting the Hong Kong democracy protesters and the Chinese did not appreciate the development.

Chinese authorities promised 'strong counter measures' which may impact the US/China trade deal, which triggered negative speculation on equity markets. The Dollar was steady, with the EUR trading 1.1015, while the GBP drifted to 1.2935. ... read more
 
Paul Bettany
Collinson & Co
0406-744-923
paul@collinsonfx.com
CANDIDATE OF THE WEEK
Melbourne - Import & Customer Service
Customer : 7653726

Extensive International logistics experience including the past 10 years working with 2 smaller, all-round freight forwarders. Working in a hands-on, import operation (& Customer Service) role our candidate has a strong, rounded forwarding understanding.  ... read more
 
Contact: Andrew Bennett
Branch Manager - Melbourne
0447 054 744
 
Sydney  Export Sea Operations

A candidate ideally looking for an opportunity in the South West, with a history of Export Sea Freight Operations whilst operating on EDI CW1.  ... read more

Contact: Christian Merrigan
Recruitment Consultant - Sydney
0439 542 022
UPCOMING EVENTS & TRAINING
FREE WEBINAR 11 DECEMBER 2019 
Steps to Success for the Freight Forwarder / Logistics Business Owner
REGISTER HERE
2020 CPD & CBC – BORDER AND BIOSECURITY COMPLIANCE PROGRAM (24 CPD POINTS)

Sydney
Wednesday 1 April 2020 [REGISTER HERE]
& repeated
Saturday 4 April 2020 [REGISTER HERE]
8.30am to 4.30pm - Novotel Sydney Brighton Beach Hotel - Cnr Grand Parade and Princess Street, Brighton Le Sands

Melbourne
Friday 17 April 2020 [REGISTER HERE]
& repeated
Saturday 18 April 2020 [REGISTER HERE]
8.30am to 4.30pm - Hyatt Place Melbourne - 1 English Street, Essendon Fields

Perth
Saturday 2 May 2020 [REGISTER HERE]
8.30am to 4.30pm - Hyatt Regency Perth - 99 Adelaide Terrace, Perth

Brisbane
Wednesday 20 May 2020 [REGISTER HERE]
8.30am to 4.30pm - Novotel Brisbane Airport - 6 – 8 The Circuit, Brisbane Airport


ONLINE

CONTINUED BIOSECURITY COMPETENCY (CBC) NCCC & AEPCOMM - APPROVED ARRANGEMENTS ... read more
MEMBER ONLY - FREE WEBINAR & EVENT RECORDINGS  ... login required
2019 / 2020 - Continuing Professional Development (CPD) - read more
2019 / 2020 - Continued Biosecurity Competency (CBC) -  read more
19.1 NCCC and 19.2 AEPCOMM - read more
Sec 77G Depot -  read more
Chain of Responsibility -  read more

The Minimum Wage Increase 2019 ... read more
SPONSORS
FTA and APSA are proud to connect members with the following sponsors as leading suppliers of services to the freight and trade sectors.

2019 sponsorship prospectus is available HERE
















































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