Industrial Action – Patrick Terminal

Please be advised that the industrial action at the Patrick Terminal Port Botany is continuing. All slots have been cancelled until 16:00 today. The latest Terminal update has indicated “still no news on return to work”.

GPSM has cleared all available containers prior to the stoppage. Patrick has arranged vessels to be worked at DPW during this period to reduce any negative impact on imports.

GPSM will be making every effort to move containers in a timely manner without interruption to our customers.

Thank you for being patient during this interruption to services.

New Legislation to Impact on GST to be Paid for Low Valued Imports

There is currently legislation in Parliament to consider passing a bill that will ensure that GST is payable on certain imports into Australia of low-value goods. If passed the legislation will commence on or after 1st July 2017 and will mean that “overseas vendors”, “Electronic distribution platforms” and “Re deliverers” will have to account for GST on sales of low-value goods to consumers in Australia . Any of the 3 categories that have GST turnover of A$75,000 or more will need to participate in this new legislation.

Essentially this will force new cargo reporting and clearance requirements associated with the import of low range value cargo on International freight forwarders, express carriers, and licensed customs brokers. Overseas vendors will provide a simplified Registration option responsible for payment only of GST with the ATO to issue a unique Vendor Registration number ( VRN ).

It is noted that Australia would be the first country to apply GST to the importation of low valued goods using a “Vendor Collection Model”, with Jurisdictions such as the European Union moving towards the same regime.

Search supply chain information with your unique reference number

For many Importers, searching for shipments or Purchase Orders on web based track and trace systems has always been done by using Purchase Order, Bill of Lading or Container numbers. Some Importers like to create a “shipment reference “ of their own once their PO’s become a shipment, however, up until now, this was not a searchable field for many of tracking sites.

Apart from giving users of GPSM’s unique Supply Chain Management tool, Communicater, over 15 different search criteria for their Purchase Orders and Shipments, Communicater now gives users the opportunity to add shipment reference values of their preference so that everyone in the organisation can search for supply chain information

Please ask your Customer Service contact for more details how to use this new feature

For those Importers who can provide us with a downloadable format of their Purchase Order , searching to a product level is also possible

It’s just another way that Communicater has been developed for its users from the Importers perspective.

Airfreight Fuel Surcharge and Local Australian Airport Charges

Airfreight Fuel Surcharge from Hong Kong:

Cathay Pacific Airways (CX) have advised that effective from 1st April, they will introduce a fuel surcharge of HKD 0.70/kg (approximately AUD 0.12/kg) for all freight moved on their services to all Australian destinations. The fuel charge will be based on the chargeable weight of each shipment.

Local Australian Airport Charges:

Airport Cargo terminal Operators (CTO’s) have announced an increase in the local handling charges effective from 3rd April 2017.

The costs will increase by AUD 0.01/kg and will be calculated on the chargeable weight of each shipment, this increase is the first one introduced in the last couple of years.

GPSM will be updating our costs structures to reflect the latest “out of pocket” cost increases.

Port Charge Increase Delayed

Further to our below Newsflash distributed earlier this month, please note the start date for the new Port Infrastructure Charge for Sydney has now been delayed until 17th April 2017.

The deferred start date is a direct result of Industry Lobby Groups expressing their displeasure at the short notice of the implementation date initially given by DP World.

We shall keep you advised of further updates if and when same are received.

View Previous News

Sydney and Melbourne Import Charges to Increase

Increased Port Charges Sydney and Melbourne:

DP World (DPW) a major port operator in Sydney and Melbourne have announced they are implementing a “Port Infrastructure Charge” effective from 3rd April 2017 covering all import and export containers moving through both ports.

Melbourne port already has an infrastructure charge as part of the port charges paid to the shipping lines however the DPW charge is an additional cost that is being blamed on critical infrastructure investment, terminal upkeep and general operating expenses that have been absorbed by DPW over the last few years.

The DPW charge is expected to be $ 32.60 per container and same will be collected from the trucking companies via the electronic container booking system and will apply to all containers collected or delivered by road and rail at the port. As this cost will be an out of pocket expense GPSM will be forced to add these costs to each invoice raised to all clients.

Melbourne Toll Charges Increases:

The heavy transport industry is facing significant toll charge increases on trans-urban roads in Melbourne of up to 225% effective from 1st April 2017. The increases will apply to CityLink, Tullamarine Freeway and Monash Freeway to and from the Port of Melbourne.

The increases will only be applied to trucks, cars will not face the increased tolls. The toll increases will be used to fund the Citylink Tulla Widening (CTW) project.

Toll charges in Melbourne have generally been absorbed by trucking companies but given the huge impending increases, the Container Transport Alliance Australia (CTAA) the container transport industry body, have advised that this will no longer be the practices and all members will now be passing on the new tolls to all clients.

CTAA have advised that a truck leaving Melbourne port on a return day trip to Dandenong area will face tolls of close to $ 60.00 per trip. Similar costs will also been incurred for movements to/from other major supply chain areas in Melbourne.

We regret the need to pass on these increased tolls to GPSM clients, however, we are confident you understand that trucking rates have not been increased in Melbourne for some years and these added costs cannot continue to be absorbed.

Why your quotes take so long to receive ?

Have you ever asked your Freight Forwarder or Customs Broker for a shipping quote, only to have to wait up to 48 hours for an outcome?

According to a recent study conducted by Maritime Research Consulting and Financial Advisory Service, Drewry, Freight forwarders spend 24.4 million hours of labour a year to find and manage carrier rates for clients, for an estimated labour cost of $500 million.

Is it any wonder ocean rates and costs are never up to date?

Understanding the enormity of the exercise to keep rates current and to deliver clients rate shipping cost enquiries at the touch of a key, GPSM has developed a number of unique technological processes to provide its clients with Freight Calculator.

Freight Calculator harnesses the multitude of rates in the marketplace, instantly provides a sell price and incorporates all destination charges, including trucking to destination, all in an easy to read format.

Freight Calculator is great for sales departments looking to cost upcoming orders or for quoting customer enquiries. It is also useful for Accounts when it comes to checking their Freight Forwarders invoice.

Freight Calculator is designed to provide shippers with accurate, current freight rates and charges, all at the click of a button.

Please contact billh@gpsm.com.au If you would like a demonstration of Freight Calculator or other GPSM supply chain management technology.

Valuation of Free of Charge Goods

All goods imported into Australia must be assigned a Customs value, even if they were provided free of charge. This includes gifts, bonus goods, samples, and promotional goods.

The most common method for valuing any import is to use the ” Transaction Value”, which is the price the importer actually paid ( or is going to pay ) for the goods. In the case of Free of charge goods we are not able to use Transaction Value for your import declaration.

In this case you must provide Customs “The price of identical goods sold for export to Australia” or similar goods value for goods exported to Australia.

Failing to provide this information will delay the release of your cargo at the barrier leading to potential additional storage costs.

Pro Forma Invoice

Pro-Forma Invoices are not acceptable by Australian Border Force (ABF ), a Pro-Forma is not a demand for payment and may not provide sufficient evidence to determine the actual price paid for the goods. Importers should not rely on Pro-Forma documents for processing of customs entries, as they will not be acceptable to support statements made in customs declarations without further verification by ABF. The Australian border force has found that these documents are highly inaccurate in a significant number of cases.

This policy is also adopted regarding the use of Electronic invoices, some importers create an electronic invoice in order to establish a record of the value of goods, the ABF has found that they do not reflect important details of sales transactions Including the value of the goods, and as such are also unacceptable.

Acceptable commercial documents are:

Purchase order

Contact of sale

Order confirmation

Commercial invoice

Evidence of payment is :

Letter of credit

Bank Transfers

Receipts

Paypal

EFT

Credit card bank statements

Ocean Freight Rates from Far East Asia to Australia

The turmoil surrounding ocean freight rates from Hong Kong, China, Taiwan, Korea and Japan appears set to continue in 2017.

Following the rate reductions we negotiated for February 2017 shipment from the above areas, we have started receiving shipping line notices advising of increased rates effective from 1st March, 2017.

Per our earlier Newsletters, it is not uncommon to receive these notices, as under the terms of the Alliance agreement the lines are required by Law to advertise any increases in advance.

The increases being advised at present are USD 300.00/20ft container and USD 600.00/40ft container, this will be the maximum permitted but we would expect these increases will be mitigated according to market conditions. Further information will be advised as we near closer to the implementation date and we finalise our negotiations with the various lines.

Please note any substantial increases is expected to also lead to a rate increase on LCL traffic from above areas.

The rate variations have resulted the shipping lines suffering huge financial losses over the last few years and their confirmation that they are unable to sustain the low rate levels we have become accustomed to in non-peak periods. A number of factors has led to the decline in the industry, including the following:

The financial collapse of Hanjin Line in 2016.

The financial collapse of Great Southern Lines in 2016.

The merger between China Shipping Line and COSCO Line in 2016.

The takeover of Hamburg-SUD Line in 2017 by Maersk Line.

The merging of NYK, K Line and OML Lines in April 2017.

And more recently the announced Merger between Hapag Lloyd and United Arab Agencies expected in the new couple of months.