Building a framework for recovery
In recognition of our lead on trade related COVID-19 advocacy, Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have been invited to make a submission to the Joint Standing Committee on Foreign Affairs, Defence and Trade (JSCFADT) in terms of its inquiry into the implications of the pandemic on Australia's foreign affairs, defence and trade.
The Committee is seeking a broad range of views to respond to the terms of reference, which include issues of regional security, strategic alliances, human rights, quality and security of supply chains, and how to build a resilient national framework.
Submissions are due by 30 June 2020. Please send your thoughts to jpark@FTAlliance.com.au by Friday 19 June 2020 to contribute to the FTA / APSA submission.China - UpdateOur sources from China have provided us with the following updates - As at 19 May 2020 there are 108 cases in 12 cities of Mainland China. Jilin province in North East Area has a local breakout, so currently under a partially lock down
- To lessen the impacts of COVID-19 the Chinese Customs encourages registered suppliers to use COO self-printing service, as per 2020 Notice No.63 which extends the coverage of the Agreements. Customs 2019 Notice No.77, also adds this self-printing service to cover the China Australia Free Trade Agreement effective 20 May, 2020
- On 9 May 2020, Chinese Customs noted 16 suppliers who were trying to export unqualified and/or bad quality COVID-19 related goods and warned overseas purchasers to be alert.
- According to shippingchina.com, more and more global shipping lines are retreating ships to shrink the size of the fleet to hoard wood for the winter
- According to China News, 17 May 2020, China has exported over 134.4 billion RMB of COVID related goods between 1 March and 16 May. It has recently reached a daily average of 3.5 billion RMB.
Seafreight commentary -
In our regular discussions with shipping lines our past reports of strong numbers for May / June are still confirmed. Most lines we spoke with say they have strong bookings into at least mid June. This is thought to be supported by businesses trying to meet budget figures at the end of the financial year and increasing stock orders to meet expected buying rushes. In conversations with importers in the retail sector these also confirmed good sales in the last few weeks.
Volumes into Australia differ between states, whilst the west coast is reporting imported full containers higher than last year most east coast ports are showing declines of between 10%-25%.
In trying trying to predict what will happen in July and onward it really is very much uncharted territory. One thing however is crucial and that is communication.
If shipping lines are to be expected to meet volume demand with sufficient sailings then lines of communication between exporters / importers / forwarders and shipping lines need to flow freely. The lines advise there is vessel capacity available but knowing when to bring that on line is based solely on the knowledge of expected bookings. If they don't know, the capacity will not be there if a surge hits. Communicate so we all stay informed.
Economic Update 
"The Dow settled, after posting record gains, in the previous session. The Dow posted gains over 900 points, largely on the back of a possible vaccine, that had passed their first human trials with flying colours. Treasury Secretary Mnuchin and Federal Chairman Powell appeared before the Senate Banking Committee and were both full of support for the effort to assist in the recovery of the US economy."
"The RBA minutes confirmed that emergency monetary policy was working broadly and would be maintained, as required. The Bank confirmed low inflation would continue, that there was spare capacity in the labour market, while the global economy was coming back later in the year."
- See the full daily update HERE // see weekly update HERE
Please view a presentation a presentation by Collinson Forex on 30 January 2020 showcasing latest technology solutions – refer HERE
Airfreight Update
IFAM flights ex Los Angeles to Melbourne and Brisbane with Virgin Airlines
There is capacity inbound (to Australia) on this flight in which medical supplies will be prioritised. Please note there is not currently capacity on the outbound leg of this flight, as Australia Post is also supporting these flights and will be prioritising mail - see more details HERE
Whilst the IFAM scheme (refer below) is providing access to many of our larger exporters of Agricultural and Food sector producers, there remains a raft of smaller producers out there with lower volumes of still fresh produce that need assistance to move their goods overseas at cost effective airfreight rates. With some airlines, eg; Emirates, now starting to initiate services, albeit essentially ghost passenger flights, back into Australia there are increasing options to access these for export. and import, cargoes. Whilst the rates may not be back at pre COVID levels they are becoming a little more affordable.
IFAM scheme continues to provide assistance across Australia to a range of exporters in the Agricultural / Food sectors. As reported in the Australian Financial Review there have been about 50 flights a day of passenger planes filled only with freight leaving and arriving in Australia over the past week, according to the federal government, which has pumped $110 million into a new freight scheme.
If your goods, import / export, do not meet the IFAM guidelines please continue to review the FTA COVID- 19 Air Cargo bulletin board to advertise your space availability or needs.
* IATA - Air Cargo action
* IATA - Government measure related to COVID-19 - search country specifics
Australian Border Force
DUTY DEFERRAL - FTA ADVOCACY
In response to advocacy from Freight & Trade Alliance (FTA), the Department of Home Affairs, which manages revenue and payment of liabilities on imports, has confirmed that they will consider requests for payment plans and other leniency measures related to COVID-19.
These requests will be assessed on a "case by case" basis.
"We recognise the impact of the current situation on businesses and cash flows and are responding accordingly. We remain interested in the experiences of your members and their clients through the disruption from COVID-19, and please continue to keep us informed of any developments."
COVID-19 STATUS REPORT AVAILABLE HERE
Business Operations
Statements from Senator the Hon. Michaelia Cash
* COVID-19 UPDATE - May 18
* Commentary on the Treasurer's statement ion the economy - May 12
* A COVID safe workplace and the path to recovery
* Roadmap to a COVID safe Australia - May 8
* COVIDSafe APP
* Assistance available to Small Businesses ( with state links )
* Supporting businesses to retain jobs - Jobkeeker payment
Transport & Port Updates
Transport for NSW
Victoria - Department of Transport - May 15 update
Port of Melbourne - Response to COVID-19 – Update 6
Queensland - COVID-19 freight & export market update bulletins
CTAA COVID-19 Emergency Space Register
Freight & Logistics Council of WA - COVID -19 web site
WCO updates
* WCO partners with stakeholders to launch a COVID-19 Trade Facilitation Repository
The repository acts as a platform that consolidates the initiatives on trade facilitation adopted by organizations and stakeholders, seeking to provide access to these resources in a unique and user-friendly database. It contains a useful listing of all such initiatives broken down by organization, type of measure and subject matter. As the situation evolves and further actions are taken, the platform will be expanded to include other key actors working in the area of trade facilitation. to read the full article click HERE to visit the Repository click HERE
* WHO/WCO list of priority medicines & Updated HS classification list for
COVID-19 medical supplies - see HERE
* Joint WCO-IMO statement on the integrity of the global supply chain
during the COVID-19 pandemic
UPCOMING WEBINARS - Supporting Australian exporters through COVID-19 - Tuesday May 26 1100 hrs (AEST) - REGISTER HERE
- Abandoned goods, container detention and the liability of freight forwarders in a COVID-19 world - Friday 29 May 12pm (AEST) - REGISTER HERE
New COVID-19 Workplace Health & Safety guidance available
The Safe Work Australia website has been updated to provide a central hub of work health and safety (WHS) guidance and tools to help Australian workplaces manage the health and safety risks posed by COVID-19. The site allows you to select your status, industry and what you need information on. There are some 1300 different web pages addressing some 23 different industry sectors. Click HERE for more
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 including the new JobKeeper HELP product refer fact sheets below - for more on how to access this offer please contact Lee Senft or call 1300 651 415
JobKeeper HELP
Fact Sheet
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 |
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