Author: GPSM

Another COVID outbreak in China

Logistics managers are feeling far from “dynamic” about the latest COVID spread being reported in the Chinese cities of Gansu, Shanghai, Guangxi, Guangdong and Henan. The highly infectious BA.5 variant has been detected in seven cities and many areas are implementing the requirement of having two nucleic acid testing within three days under China’s “dynamic zero-COVID” policy, which aims to eliminate outbreaks as soon as they appear.

 

Airline Handling Charges:

Airline Cargo Terminal Operators (CTO’s) have announced an increase to Airline Arrival charges, adding $ 1.00 to the Airline Airwaybill Fee and $ 0.01/kg to the airline handling charges for both import and export shipments.

The new rates take effect from 25th July 2022 and GPSM rate portal has been updated accordingly.

 

Container Weight Declarations:

We again remind consignees and shippers that it is imperative that correct container weights be declared at time of shipment.

As previously advised by GPSM, the “Pondus Container Weighing System” has been in operation for some 12 months around Australia and we understand there have been a large number of mis-declared container weights during that period.

Any container found to be more than 1,000kgs over or under the declared weight will be fined by the Port Terminal.

Commencing on 4 July 2022 and for a 12 month period, goods that are the produce or manufacture of Ukraine, will have a ‘Free’ rate of duty.

Please refer to ACN 2022-31 for further details.

Australian trucking fuel levies continue to escalate around Australia as Oil prices and Ad Blue fuel additive continually fluctuate on a weekly basis.

Our Sub-contracted truckers around Australia has advised they are adjusting their fuel levies in line with further increased costs from 15th July 2022 as follows.

Sydney and Melbourne will increase to 24%, Brisbane and Adelaide fuel levy will increase to 26%, Fremantle will increase to 28% and all deliveries in Tasmania will attract a fuel levy of 31% from the above date.

We regret the need to increase the above costs, all new rates will be updated to our on-line rate portal from 15th July, 2022.

The new Biosecurity Portal for booking import inspections has been up and running for several months.

We are experiencing significant delays with Inspection Bookings, on average a booking is taking 2 week to be confirmed in Portal.

There are also delays with Document Processing, the average time The Department is taking to process in 1 week.

The Department advised that they are extremely short staffed and still feeling the effects of COVID.

GPSM has sent several complaints to The Department, but we have not received any follow up.

Our Industry Body has had meetings with The Department and they have made enhancements to the new Portal System however it had not resulted in any real time improvement to the actual inspection booking appointment time.

The Department was due to release a Notice explaining the issues however this also has not occurred.

In the Notice attached it was suggested that Overtime options were available however these appointments are also delayed.

Attachment

ONGOING DELAYS FOR BIOSECURITY INSPECTIONS

China Lockdowns slowly lifting:

As Chinese authorities slowly lift their “Zero Tolerance” lockdown in Shanghai, it is hopeful that regular services will return to normal as soon as possible.

A large volume of containers had been diverted to Qingdao and Ningbo during the lockdown causing extensive congestion in both ports. Many shipping lines either delayed or cancelled sailings from East Coast China during the disrupted lockdown period.

The effects on production and supply chains will likely be felt for months, as firms reopen there will be a rush to purchase raw materials, and then a flood of finished goods leaving factories as companies try to make up for lost time.

There is already a backlog of cargo equivalent to 260,000 twenty-foot containers which wasn’t shipped from Shanghai in April because of the lockdown, according to Drewry Shipping Consultants, and the rebound will have a “bullwhip” effect across supply chains.

Currently, several hundred vessel awaiting entry to Shanghai for loading/unloading.

 

Port Infrastructure Levies/Booking Fees:

Australian container terminals will again increase the costs of Port Infrastructure Levy and Booking fees from 1 June 2022.

Sydney, Melbourne and Brisbane will increase to $ 175.00 per container, Adelaide and Fremantle will remain unchanged at the present time.

FCL Booking Fees will increase to $ 50.00 per container at all terminals across Australia as from 1st June, 2022, Empty Booking Fees will remain unchanged at current levels.

 

Trucking Fuel Levy:

Australian trucking fuel levies continue to vary as Oil prices fluctuate weekly, our Sub-contracted truckers around Australia has advised they are adjusting their fuel levies in line with further increased costs from 1st June 2022 as follows.

Brisbane fuel levy will increase to 22%, Fremantle will increase to 24%, Adelaide will increase to 23% and all deliveries in Tasmania will attract a fuel levy of 25% from the above date.

Fuel Levies in Sydney and Melbourne will remain unchanged throughout June 2022.

We regret the need to increase the above costs, all new rates will be updated to our on-line rate portal from 1st June, 2022.

There is currently an outbreak of Foot and Mouth Disease (FMD) in Indonesia. Due to this change in disease status, Indonesia will be removed from the department’s FMD-free country list.

To reduce the risk of a potential incursion and help Australia maintain its current FMD-free status the department has taken the decision to make changes to import conditions for goods imported from Indonesia.

Changes will apply to import conditions and permits for the following goods sourced from or manufactured in Indonesia:

• Animal and environmental samples for laboratory use
• Dairy, including:
  • cheese and butter
  • infant formula
  • protein powders and supplements
  • cheesecakes, cooked biscuits, cooked breads, cooked cakes or cooked pastries containing uncooked dairy fillings or toppings
  • other products containing greater than 10% dairy
• Meat jerky or biltong
• Peat (being black peat, peat moss, sphagnum peat moss or white peat)

 

The department will contact all permit holders affected by this change to provide further information about the impact.

FMD is a highly contagious viral disease of animals. It is one of the most serious livestock diseases. It primarily affects cloven-hoofed animals (those with divided hoofs), including cattle, buffalo, camels, sheep, goats, deer and pigs.

FMD virus is principally transmitted by direct contact between infected animals and susceptible animals. Transmission occurs via secretions and excretions such as exhaled air, saliva, ruptured vesicles, faeces, milk and semen.

FMD virus can also spread on wool, hair, grass, plant material, wind, or mud and/or manure on footwear, clothing, equipment and tyres.

An FMD outbreak in Australia would be devastating to our livestock industries through international trade losses, market disruptions and health and production losses.

The Australian Border Force (ABF) has informed IFCBAA that the Integrated Cargo System (ICS) gateway (CCF) is currently experiencing problems with ICS External Access with EDI messages and as a result no EDI messages are being passed to ICS for processing.

The problem is being investigated as a matter of priority.

ABF apologizes for any inconvenience caused.

Kind regards,

IFCBAA Team

The Shanghai city lockdown has continued for almost a month with no end in sight as to when workers will be free to return to their workplaces.

While Shanghai port is claimed to be operating as normal, the fact is that there are very few trucks that are able to access the port and many factories have been closed for some 3-4 weeks.

Many vessel have been omitting Shanghai in an attempt to maintain scheduling however this action has increased vessel waiting times in Qingdao and Ningbo ports, now up to seven days.

Similar municipal closures are widespread across China, with Beijing being the latest major city to undergo mass COVID testing.

It has been reported that 57 out of China’s top 100 cities have relatively strict restrictions in place.