Coronavirus Weekly Update 150420

Wednesday, April 15, 2020


WEDNESDAY 15 APRIL 2020
Hopefully everyone had a chance of the Easter period to get a break from work and adjust to holidays with no travel.

Whilst it seems most people are adhering to the  "stay at home" guidelines and the curve is flattening , more in some states than others, it would seem the government is looking for a stepped wind down of restrictions when the time is right. This they hope will stimulate the economy in stages and continue to manage the possibility of new infections.

Freight & Trade Alliance (FTA) are continuing their advocacy work on behalf of their members with all government agencies as well as State and Federal governments to enable our industry to stay open and viable during these uncertain times and pursue concessions, such as deferral of duties, taxes and fee, that will assist industry members with their financial concerns.  
 

China - Update


Our sources from China have provided us with the following updates
  • Imported or related COVID-19 case numbers are still increasing in China. Currently Heilongjiang province, in N/E China, is facing a big challenge with most cases coming from the border with Russia. Other provinces are under control at this stage, with only 17 cities still having confirmed cases under treatment out of total 337 cities in China.
  • Hubei province has been able to start business activities. According to Wuhan International Container Co., Ltd(April 8), the management company of Wuhan port, Wuhan port was back to normal operational level.
  • Shanghai Yangshan Port has confirmed effective March 2020 they were back to 95.3% volume, the same as this period last year. The ports in China are controlling / monitoring crews debarkation of vessels, eg; Ningbo Port has reported 20 cases which involved 113 crews since March 1.
  • ÓNE,Maersk/MSC will suspend CAE service(China-Australia Service) until at least Q2 this year with the last sailing departing from Xiamen on 22 April.
  • According to Shipping China news, as at March 27, business entities registered in Import/Export registration with Chinese Customs has reduced by almost 37,000. They are expecting more reductions for the second season of 2020.
  • According to China Customs Notice No.53 April 10. Effective April 10, eleven (11) medical related items (medical use only) will be inspected to assure the quality of the exported goods. These shipments can expect delays for shipment - see below list with HS codes  
  • 6307.90  Medical Face mask
  • 6210.10/3926.20  Medical protective garments
  • 9025.19  Thermometers /  9019.20 Medical Ventilators
  • 6505.00  Hair Net for Medical use / 9004.90 Protective Spectacles and goggles
  • 3926.20 / 4015.11 / 4015.19 Medical Gloves
  • 6307.90 / 3926.90 / 4016.99 Shoe Covers for the Medical use
  • 9018.19   Patient Monitoring Devices
  • 3005.90  Medical wadding, gauze, etc
  • 3808.94  Disinfectants (including medical sanitiser, not confirmed whether this covers hand sanitiser as yet)

    General  Updates
  • North America -  the main ports continue to operate albeit with reduced hours  / days as is dictated by vessel volumes. Blanked sailings announced by trans-Pacific carriers demonstrate the steep decline in consumer demand for northern summer and back-to-school merchandise, and raise a stark warning of a possible peak-season bust later this summer. Some fear that widespread business shutdowns will plunge third-party logistics providers into "trench warfare" over pricing, and contribute to bankruptcies that could threaten capacity.
  • Europe - not dissimilar to the USA, Ports operational in most countries but processing is slow. Italy most impacted as reduced working hours compounding the issue. Italy and Spain also have bans on non-essential operations so these, eg; factories, warehouses etc, are closed. In parts of Europe, Austria and Czech Republic, restrictions are being lifted on small shops, garden centres and DIY stores. 
  • United Kingdom - Lockdown March 23 and was to be assessed this week although it now seems it will be extended a further three weeks, with announcements likely this Thursday April 16, as the plan seems to be working. All non essential shops close - supply chain still operating but a number of businesses are working from home which is impacting cargo delivery.
  • New Zealand - the four (4) week lockdown in New Zealand is due for review in the next week. We await with interest to see if, like the UK is expected to do, it is extended. At present there seems to be a divide in NZ between Health officials and academics as to when the lockdown level should be lowered and to what level 3 or 2.

  
Economic Update                              

The strong market rebound continued on equity markets overnight. The coronavirus appears to be under control and contained. Various treasuries and banking institutions are releasing reports measuring the impact of the virus on global economies. These reports are giving markets more certainty and allowing risk appetite to grow.

Global markets are recovering confidence, as the focus shifts to lock-down exit strategies and the seeming containment of the virus. We are not out of the woods yet, but signs are positive and markets are reacting accordingly.  - See the full update HERE

Please view a presentation a presentation by Collinson Forex on 30 January 2020 showcasing latest technology solutions – refer HERE


Shipping Update
  • Detention / Demurrage - As mentioned in our last weekly update FTA wrote to the major Stevedores and Shipping Lines outlining our concerns should containers be held on the wharf or delayed in return to empty container parks due to COVID-19 related restrictions or lockdowns. Whilst we thank VICT / OOCL / Maersk / Ocean Network Express (ONE) / CMA-CGM and Hapag Lloyd for their responses and preparedness to work with their clients as the situation develops. It is disappointing that the two nationally operating stevedores are yet to reply. FTA will continue to seek commentary from all those who have not answered so that industry can have some certainty on these matters moving forward. These matters are even crucial following commentary over the weekend that storage space is becoming an issue in Victoria.

Risk Management                                     

Novel Coronavirus (COVID-19) & Insurance policy reviews - From James Cotis - Principal, at Logical Insurance Brokers
"As each day passes, it is becoming very clear that hardly any industry around the globe will be spared from the impact of COVID-19. As global lockdowns wreak financial havoc on businesses of all sizes, those heavily indebted and/or unprofitable businesses are susceptible to bad performance during this period and possibly will not survive, despite government intervention including support such as tax breaks, loans and/or cash handouts." – click HERE to see the full article from Logical Insurance Brokers
 
 
Business Operations
Statements from Senator the Hon. Michaelia Cash
Weekly Wrap  - includes Government modelling on Coronavirus reponse
Weekly Wrap - includes commentary on Commercial Tenancies
Assistance available to Small Businesses ( with state links )
Supporting  businesses to retain jobs - Jobkeeker payment

Austrade
As government, businesses and community align to step up the global fight against COVID -19,  Austrade wish to provide some important updates  - please read the commentary from Austrade HERE -

To support Australian exporters, Qantas and Virgin Australia are offering air freight capacity on repatriation international passenger services to Auckland, Hong Kong, Los Angeles and London, from Thursday 9 April 2020. 
While these services are limited, this will give Australian producers a way to obtain valuable inputs for their businesses. 
The return flights to Australia will bring in vital medicines, medical supplies and equipment to support Australia's response to the COVID-19 pandemic. 
The confirmed international flights will operate for approximately 4 weeks - see HERE for more details i 


WCO updates
* WCO and WTO join forces to minimize disruptions to cross-border trade in goods
WCO - Temporary Import Supports and Export Restrictions lists by country




Commercial, Industrial and Retail Leases – Mandatory code of conduct   

The Prime Minister announced on Tuesday, 7 April 2020 that the Commonwealth, the State and Territory governments have agreed on a "mandatory" industry code of conduct governing commercial, industrial and retail leases impacted by the COVID-19 pandemic.  The Code does not cover residential leases.  It will be for the States and Territories to address residential leases separately, although the principle of a 6 month moratorium on evictions still applies to them.

The Code sets out the principles that will guide the structuring of rent relief for eligible tenants, with a view to enabling them to survive the COVID-19 pandemic and recover their businesses afterwards. Legislation will be required in each State and Territory to give the principles the force of law. The principles are expressed in broad and generalised language, and it is anticipated that more detail will be contained in the legislation, which is eagerly awaited.

Hunt & Hunt lawyers have summarised the key principles here, and commented on a number of implications and practical issues that will need to be fleshed out, either in the legislation or in negotiated agreements between the parties to each lease.

Coronavirus Workplace Law amendments

The Federal Government's urgent response to the impact of coronavirus on the economy led to the passing of two Bills by the Commonwealth Parliament on Wednesday, 8 April 2020.

They set out obligations employers must satisfy in order to be eligible for JobKeeper payments. They also provide new powers to employers to give directions to employees (including stand downs) and reach agreement on other issues. - read the full update by Hunt & Hunt HERE

           
  
Ensuring Employee Health & Communications during Crisis Management

Every one of our clients is wrestling with managing a largely remote employee workforce in the middle of the COVID-19 outbreak.  Providing basic safety and security information about your teams to management, and allowing management to easily communicate with their employees working from home has become more important than ever before. And the need is immediate and now. read full article HERE     
 
 
 
Workplace Relations                               

Ed Mallett, Founder & Managing Director - Employsure, conducts a live stream each day on COVID-19 issues - see the facebook link HERE - to catch previous session click HERE

There are also links to a range of support material on their website 

Please note the below links for up dated informationFURTHER INFORMATION

FTA suggest members / industry maintain close relations with their forwarders, agents, shipping lines, clients and suppliers / agents globally to ensure they have the latest information available. This is a time for review and planning not for panic.

FTA will continue to monitor issues surrounding the coronavirus and keep members updated as necessary. 

WORKING TOWARDS A POSITIVE OUTCOME!

John Park - Head of Business Operations, FTA / APSA

Department of Health

To stay abreast of all developments and general information concerning the Novel Coronavirus we suggest members maintain a watching brief on the Department of Health website 

Join the Alliance

We encourage importers, exporters and logistics providers to Join the Alliance - together making a united and stronger voice for the international freight and trade sectors