Author: GPSM

As space constraints and capacity continue to tighten around the globe some shipping lines are implementing cancelation fees for cancelled bookings. This can apply to imports and exports to/from Australia. We first reported this a few weeks ago happening on overseas trade lanes. Unfortunately some shipping lines to Aust and NZ have started to implement this fee. As GPSM are searching for suitable space across a wide range of lines and routes, we will notify you if cancellation fees apply to your booking. These fees can be around US$ 500/20’and US$ 1000/40’and maybe subject to change without notice

Generally we do not get a lot of cancellations from customers so it may not have a large effect but please bear this in mind if you are swapping your bookings around for any reason. GPSM will unfortunately have to pass these fees on at costs should they apply.

Sadly this is anther indicator of the state of the global logistics market due to Covid -19 ongoing impacts.

Are you a food importer , do you wish to be part of Virtual Inspections, please read below any importer wishing to participate please let our office know when you have your next Imported Food Inspection

 

Imported Food virtual inspections

Date of effect: 05 July 2021

 

Attention

Food importers and brokers.

 

Purpose

To advise importers and brokers that from 5 July 2021, the department will be accepting expressions of interest from parties interested in engaging in virtual visual label inspections for eligible imported surveillance food.

 

Key points

• A virtual inspection is conducted in real time using Microsoft Teams. Virtual inspections allow a departmental authorised officer to connect with an importer through a smart portable device and conduct the inspection remotely. The only platform currently used is Microsoft Teams.
• From 5 July, importers must express interest to participate in a virtual inspection and conduct connectivity testing with the department prior to booking a virtual inspection. Expressions of interest can be sent to [email protected].
• Guidelines will be sent to importers that express interest with the complete list of requirements that must be met to undertake a virtual inspection.
• Importers must have the technological capability and connectivity to participate in a virtual inspection through Microsoft Teams. Importers must also nominate representatives to undertake virtual inspections. Representatives will be required to follow directions of authorised officers, including the selection of samples for inspection and positioning the goods to the camera for detailed inspection.
• Importers will be charged per the existing charging guidelines. If, during a virtual inspection, the food is found not to be compliant, the virtual inspection will be cancelled, and a physical inspection must be booked.
• Food eligible for a virtual label and visual inspection is surveillance food. The following surveillance foods are not eligible for virtual inspections:
  • formulated supplementary sport foods
  • food subject to a holding order
  • food subject to analytical testing.
• Risk food is also not eligible for label and visual virtual inspections.
• Physical inspections will continue to be an option for importers who do not wish to book a virtual inspection.

Background

• In 2020, in response to the coronavirus (COVID-19) pandemic, the department conducted a trial of virtual inspections under the Imported Food Inspection Scheme (IFIS) for label and visual inspections of surveillance foods.
• The virtual inspection trial was a success and found virtual inspections offered many benefits for both industry and the department including greater flexibility and efficiencies including reduced inspection times. Due to the success of the trial, the department supports offering virtual inspections as a permanent option under the Imported Food Inspection Scheme for eligible surveillance foods.
• The department will continue to explore the use of alternative media platforms and smart technology devices that support virtual inspections in real time, such as the use of smart glasses.

Do you Import packaged goods by Volume, then read below you may be subject to an Audit .

2021–22 Compliance Programs

Concentrated National Audit Programs

 

Under this program methodology, first introduced in 2018–19, all trade measurement inspectors will be involved together

in a concentrated national audit, focused on a single industry sector over a specific time period, to assess compliance with trade measurement legislation.

Two major factors determining which traders are targeted in these national audits will be:

• previously identified non-compliance
• relative market shares of industry participants.

Three concentrated national audit programs will be undertaken in 2021–22.

Importers

This program will include a focus on pre-packaged products with measurements based on volume. Imported products to be audited under this program will include:

• consumable items, including oils and seasonings
• animal food products, such as pet foods
• beverages
• sanitisers such as alcohol based products
• cleaning products.

Inspectors will also be reviewing documentation for measurement-related QA processes to ensure regulatory compliance.

Further information can be found on link below

https://www.industry.gov.au/data-and-publications/national-measurement-institute-national-compliance-plan

Please see below message just received rom Patricks Terminal regarding on-going Protected Industrial Action

 

Subject: [PATRICK NS PORT BOTANY – NSW] Patrick Port Botany

Issue: Protected Industrial Action

Short Description: Patrick is continuing to be impacted by MUA imposed protected industrial action. This action results in 3 hours of work bans per day. The MUA imposed work bans are resulting in some carriers being unable to secure enough imports time slots to evacuate containers within the free storage period. The protected industrial action is a legal tool available to the MUA to cause business disruption in order to assert their negotiating position. Given that the protected industrial action is outside our ability to control, Patrick will not be issuing storage waivers or reductions resulting from the MUA imposed stoppages

Duration of Delay: 0 days 0 hrs 5 min.

Issue Commencement: 30/06/2021 15:05

Expected Resolution: 30/06/2021 15:10

Our Transport Team will keep all clients advised of impacts on shipments, kindly note the disclaimer on waiving any storage charges as a result of this industrial action.

MUA – Protected Industrial Action Industrial Action – Hutchison Ports Sydney

We have received notification from Sydney International Container Terminals Pty Ltd t/a Hutchison Ports Australia Pty Ltd in relation to “Protected Industrial Action (PIA)” by the Maritime Union of Australia (MUA) at their Sydney terminal.

All employees of Sydney International Container Terminals Pty Ltd t/a Hutchison Ports Australia Pty Ltd who will be covered by the proposed enterprise agreement, who are employed at its operations at Port Botany, and who are members of the Construction, Forestry, Maritime, Mining and Energy Union – The Maritime Union of Australia Division, will engage in the following actions:

 

• A stoppage of work of 24 hours duration, commencing 06:00 Saturday 12th to 06:00 Sunday 13th June 2021
• A stoppage of work of 24 hours duration, commencing 23:59 Monday 14th to 23:59 Tuesday 15th June 2021.

The GPSM Transport Team will keep all clients affected by the stoppages informed on a case by case basis.

 

South China Ports in Crisis as Congestion Spreads

South China’s port congestion has gone from bad to worse – delays at Yantian are spilling over to nearby Shekou and Nansha ports.

Below is an article from our USA partners that highlights the current issues in Shenzhen area:

When the bottleneck began over two weeks ago, Hutchison-run Yantian International Container Terminal (YICT) blamed out-of-whack shipping schedules for suspending laden export operations.

Since then, however, multiple shipping lines, including Maersk, have blamed Covid-19 for causing the poor port productivity in the Pearl River Delta.

The company said yesterday: “The situation continues to deteriorate as more positive Covid cases have been confirmed in Shenzhen, where Yantian and Shekou ports are located, and in Guangzhou, where Nansha port is located.

“YICT yard density remains elevated with disinfection and quarantine measures being continuously implemented by local authorities.”

Maersk said it was now expecting delays of 14 days, with productivity at berths in the western area of YICT, where mainline vessels call, still only at 30%.

Export container gate-in times have been cut to three days of a vessel’s estimated time of arrival at Shekou, and to seven days at Nansha, the latter seeing heavy traffic congestion resulting in five-hour delays for empty container pick-up and laden container gate-in, says Maersk.

Stefan Holmqvist, MD of Norman Global Logistics Hong Kong, said: “Pandemic control efforts and cargo congestion are causing transport and logistics delays across the entire region.

“Substantial traffic jams are causing a shortage of trucking capacity, container pick-ups see delays of 10 hours or more and many hauliers require overnight time for haulage, storage and lifting, adding to costs.”

According to the latest AIS data from MarineTraffic, there are currently 36 vessels with a reported destination of Yantian at anchor, including 33 cargo ships. And with no sign of the situation improving, shipping lines have massively increased the number of Yantian port omissions.

Lars Jensen, CEO of Vespucci Maritime, said Hapag-Lloyd’s list of planned port omissions for Yantian over the next four weeks had quadrupled to 16, compared with just four only a few days ago. And he noted that Maersk’s advisory yesterday listing 40 vessel arrivals affected by the congestion was “quite an escalation” from just three days ago, when the shipping line said “several” vessels would be impacted, with cargo shifted to alternate sailings.

Given Yantian’s throughput of 13.3m teu last year and the current drop in productivity claimed by Maersk, Mr Jensen estimated there was around 25,500 teu a day the port had been unable to handle since the crisis began.

“Putting this in context, when Suez was blocked by the Ever Given, it impacted a daily flow of 55,000 teu. But that ‘only’ lasted six days. In Yantian, we are at 14 days and counting –and there is the impact on Nansha and Shekou,” he added.

“Every day increases the backlog of cargo. Once the ports re-open to normal operations we should expect a surge of cargo – at least to the degree there are even vessels available to handle this. This in turn will cause ripples of potential congestion at destinations with a lag time of some two-to-five weeks.”

We have received notification from Victorian International Container Terminal – VICT regarding “Protected Industrial Action (PIA)” by the Maritime Union of Australia (MUA) as follows:

12 hour stoppage from 18:00 on 11th June

12 hour stoppage from 18:00 on 12th June

12 hour stoppage from 18:00 on 13th June

12 hour stoppage from 18:00 on 14th June

12 hour stoppage from 18:00 on 15th June

12 hour stoppage from 18:00 on 16th June

 

The above action will have an effect on all port movements and will disrupt night-time deliveries to/from the VICT Terminal.

Our Transport Team will keep all clients affected by the industrial action updated on any alternative delivery arrangements on a case by case basis.

Patrick Sydney Terminal – Industrial Actions * EA Negotiations:

Patrick Sydney Terminal Manager, Bruce Guy, has confirmed that industrial actions are continuing for at least the next two weeks, in the form of bans on overtime, shift extensions and the performance of upgrades of duties.

The disruptions have been felt more on quayside operations with vessel disruptions last weekend and likely disruptions again this coming weekend, with berthing delays creeping up to approx. 2.5 days.

“There has also been some impacts on rail operations and at least one shift was impacted on road operations” Mr Guy commented.

Patrick Sydney Terminal is trying to manage vessel export receival periods closely to ensure that the Terminal doesn’t become too congested with export containers for vessels delayed from berthing.

Patrick confirmed that Enterprise Agreement (EA) negotiations continue at the national and local levels. Some progress is reported, but there are also “sticking points” between Patrick and the MUA. Patrick is disappointed that the MUA continues to take Protected Industrial Action (PIA) despite the continued negotiations. Patrick also can’t rule out an increase in industrial actions as the negotiations address the identified “sticking points”.

 

Hutchison Ports Australia – Sydney Terminal EA Negotiations:

HPA have confirmed that national level discussions continue with the MUA on the finalisation of a new Enterprise Agreement (EA). Reportedly, a “document is almost done” despite some last minute amendments which are being worked through. The negotiations, which started three years’ ago, are reported to be “coming to an end”. Senior Manager Terminal Operations, Jarrod Graham, also addressed concerns about a reduction in export slots at HPA Sydney Terminal.

The issue is that the HPA Truck Appointment System (TAS) doesn’t differentiate between slots for Direct Return of Empties (DRE) and full export slots. Hutchison has been taking in more DRE, mainly for Zim Line (Gold Star), and the Automated Stacking Cranes (ASCs) can only take in a finite amount of containers per hour.

Jarrod Graham mentioned that with the new Enterprise Agreement (EA), once finalised, the Terminal will move to continuous operations (with staggered meal breaks and shift changes) rather than the current situation where terminal operations cease. This should assist with slot availability and terminal performance.

 

DP World Australia has announced the addition of five new Rubber Tyred Gantries (RTGs) for DP World Sydney Terminal

Scheduled for delivery in April 2022, the machines will be 45% more fuel efficient, and will replace five previously commissioned RTGs as part of DPWA’s commitment to investing in infrastructure and sustainability throughout its operations.

With a total investment of approximately $15 million AUD, the new RTGs are part of DP World’s ongoing renewal of yard equipment at Sydney’s Port Botany Terminal for continued efficiency and enhanced performance across the Australian market

 

Delays and Congestion continues in Yantan Port, China:

Delays and congestion continue in Yantian after a number of port workers tested positive to COVID-19. The port extended its’ temporary closure on export laden containers to Monday this week however port productivity is still suffering serious congestion.

While some lines have omitted Yantian as a port call, there are still some 40 vessels awaiting berths to discharge and load. The port omissions will again throw schedules into disarray. It is expected the congestion will last for at least another week.

 

Order Early to avoid disappointment:

GPSM would suggest that all clients monitor stock requirements closely over coming months as we head into “Peak Season”.

Traditionally starting in August each year, all indications are that the peak is already underway and with congestion, empty equipment shortages and vessel schedules changing on a regular basis, it would appear this season could be more difficult that previous seasons.

Please note we are doing everything possible to secure equipment and bookings as soon as possible, however the above mentioned factors are not helping the situation.

We have been advised by our Asian partners that some lines are diverting much needed tonnage on the Australia/NZ trade to the highly lucrative Asia to Europe and USA trades where freight rates have hit an all-time record.

Some services to Europe-USA that were costing around USD 3,000.00/40ft a year ago and now USD 13,000.00/40ft container.

Please liaise with your GPSM Customer Service Team should you require assistance on any information or urgent bookings.

Who does this notice affect?

Stakeholders in the import and shipping industries—including Master Consolidators, vessel masters, freight forwarders, treatment providers, Biosecurity Industry Participants, importers, customs brokers, and principal agents— associated with shipping or importing goods that require increased intervention during the 2020-21 BMSB risk season.

 

What has changed?

On 1 June 2021, the department will cease it measures for the 2020-21 BMSB risk season.

Goods shipped or vessels departing from BMSB identified target risk countries on or after 1 May 2021, will no longer be subject to the BMSB seasonal measures including the Seasonal Pest Inspection (SPI) on arrival.

Good arriving in the first Australian port on or after 1 June 2021 will not be subject to BMSB Seasonal measures.

Importers are reminded that it is their responsibility to continue to ensure that any goods imported, are free of biosecurity risk material throughout the year, not just during periods of heightened seasonal measures.

All vessel masters and agents are reminded of their obligation to continue to report all insect detections in pre arrival reporting.