Shipping Update

Cyclone Alfred of Australian Coast

Please be advised that Tropical Cyclone Alfred is expected to bring severe weather to Brisbane and its surrounding areas throughout this week.

In response to the high winds and associated risks to pilotage, Brisbane Ports have suspended all services until further notice.

Maritime Safety Queensland (MSQ) has suspended inbound vessel arrivals to the Port of Brisbane due to heavy swells since late Sunday under direction from Maritime Safety Queensland’s (MSQ) Regional Harbour Master. Final outbound transits were completed on Monday morning for a number of vessels.

This suspension may result in vessel delays and scheduling adjustments.

GPSM are monitoring the situation and will advise clients affected on further updates asap.

ILA Votes to Ratify New US Dockworkers Contract

More than 45,000 U.S. dockworkers represented by the International Longshoremen’s Association (ILA) ratified a six-year contract, securing a 62% wage hike and averting potential disruptions until 2030.

The US Journal of Commerce reports the new contract bars implementation of full automation without human oversight. Rail-mounted gantry cranes can be utilized by terminals but will require human operator assistance.

The agreement, finalized with the United States Maritime Alliance (USMX), and approved by 99% of union members, follows a brief strike in October and will be signed on March 11, 2025. The terms are retroactive to October 1, 2024, when the prior contract expired.

Wage increases had been deferred after terms were reached in October until the full contract was completed.

The new contract covers approximately 35 ports from Maine to Florida and along the Gulf Coast. It runs till September 30, 2030.

Red Sea Ceasefire & Developments – Insight & Operational Implications

We have received the below updates on shipping from one of our industry partners as follows:

The Freight & Trade Alliance (FTA) and Australian Peak Shippers Association (APSA) highlights key developments in global shipping following the ceasefire between Israel and Hamas, along with Yemen’s Houthi rebels easing restrictions in the Red Sea:

·     Red Sea Operations:

  • Houthi Commitments: Blockade lifted for non-Israeli-linked ships, with warnings of resumed hostilities if certain military actions occur.
  • Insurance and Risks: Safety and reduced war risk premiums are critical for a full operational return.

·     Shipping Lines’ Responses:

  • CMA CGM shows tentative interest in resuming operations, with a test transit planned. At this time it is a one-off operation.
  • Maersk and Hapag-Lloyd remain cautious, citing safety and cost concerns.
  • Broader industry remains hesitant due to uncertain ceasefire stability.

·     Market Impacts:

  • A phased return of Red Sea transits is expected, potentially affecting global shipping capacity and freight rates.
  • Adjustments like blank sailings and idling capacity may stabilize the market.

·     Key Challenges:

  • Resuming Red Sea routes.
  • Restructuring global shipping alliances.
  • Effects of US tariffs on trade.
  • Seasonal fluctuations like Chinese New Year.

Overall, while initial moves indicate progress, industry-wide confidence depends on geopolitical stability and reduced insurance risks.

Up-date to Foot and Mouth Germany

Foot and Mouth Disease (FMD) – Immediate Changes to Dairy and Other Imports from Germany

The Australian Department of Agriculture, Fisheries and Forestry (DAFF) has announced an immediate update regarding Foot and Mouth Disease (FMD), removing Germany from the FMD-free list. This change impacts the importation of dairy products and other commodities sourced, manufactured, or exported from Germany. Effective immediately, personal, and commercial consignments, including those with valid import permits, will be held upon arrival in Australia.

Dairy Goods Not Impacted by the Change:

The following dairy products will remain unaffected by these new regulations:

  • Goods containing less than 10% dairy by dry weight (excluding added water) in each individually packaged unit
  • Chocolate and imitation chocolate
  • Clarified butter oil or ghee
  • Lactose and its derivatives

For more details on the specific import conditions, refer to the BICON case for Dairy.

Other Dairy Goods:

The department is working closely with the competent authority in Germany to assess and manage the biosecurity risk associated with FMD. Dairy products in transit that are impacted by the FMD outbreak will be held at the Australian border and assessed by biosecurity officers on a case-by-case basis.

Importers may be asked to provide evidence that the goods were manufactured before November 14, 2024, for release from biosecurity control.

Please note that the presence of FMD virus may persist in some dairy products due to processing methods like pasteurization, and contamination could occur if raw milk or infected dairy ingredients are introduced after processing. As such, products manufactured after November 14, 2024, may not be permitted entry into Australia, and could be directed for re-export or disposal.

Documentation Requirements:

Biosecurity officers may request additional documentation to support the assessment of the imported goods, including production dates. Importers should be prepared to supply necessary evidence.

Other Impacted Commodities:

In addition to dairy products, other commodities impacted by the FMD outbreak from Germany include:

  • Retorted meat-based foods (for personal use)
  • Jerky and biltong (for personal use)
  • Natural ovine and caprine casings
  • Reproductive material from cattle, sheep, goats, zoo bovids, giraffes, and elephants
  • Veterinary therapeutics derived from bovine, porcine, ovine, caprine, cervine, or camelid materials
  • Pet food and stock feed containing or derived from bovine, porcine, ovine, caprine, cervine, or camelid materials
  • Fertilizers and bioremediation products containing bovine, porcine, ovine, caprine, cervine, or camelid materials
  • Laboratory goods containing fluids or tissues from bovine, porcine, ovine, caprine, cervine, or camelid animals (including test kits, animal fluids, fetal bovine serum, and other laboratory materials)
  • Zoo bovids and elephants from Germany

NNF 2025/034 – Foot and Mouth Disease Outbreak in Germany – Update 1

The recent German Foot and Mouth Disease (FMD) incursion is still a live situation that the department is following closely and adapting import conditions to manage the biosecurity risk posed by FMD while facilitating imports where safe to do so.

Goods that do not require country FMD freedom are not impacted by Germany’s FMD incursion, including:

  • goods containing less than 10% dairy by dry weight
  • chocolate
  • lactose when imported for human consumption

Goods that are impacted by Germany’s FMD incursion generally require an import permit, for example dairy. These goods will have a condition on the permit stating that the goods must be sourced, processed, manufactured and exported from FMD free countries.

Goods that meet the import permit conditions (i.e. are accompanied by a government issued health certificate attesting to Germany being FMD free) and have been manufactured before the 14 November will be assessed on a case-by-case basis but are likely to be eligible for import.

Goods that have been manufactured after 14 November (during Germany’s FMD exclusion period) will be assessed on a case-by-case basis but are unlikely to be allowed to be imported. Goods that are not eligible for import must be exported or disposed of as biosecurity waste.

Notes

  • Importers and brokers that are unsure of the status of their goods should contact [email protected]
    • Put in subject Line: German FMD <insert request>
  • Make sure documents, where appropriate, indicate clearly the last manufacturing date
  • Testing upon arrival for FMD is not an option

Please refer to NNF 2025/020 for the initial advice.

Weather Delays Thursday 16th January, 2025

Please be advised that due overnight storms, heavy rain and many power outages in the Sydney area last night and further heavy rain expected today, there are expected to be delays in container terminals and LCL depots resulting in deliveries and collection of containers to be behind scheduled times.

Our Transport Team are closely monitoring the situation and will provide updates on any additional delays as necessary.

Foot and Mouth Disease Outbreak in Germany

The World Organisation for Animal Health reported on 10 January 2025 that a case of foot-and-mouth disease (FMD) has been confirmed in Germany, the first such occurrence in the country since 1988.

Department of Agriculture, Fisheries and Forestry is working to assess the biosecurity risk to Australia and what this might mean for import conditions for the following impacted commodities:

  • Dairy that is sourced, manufactured or exported from Germany.
  • Personal dairy and beef food items imported as passenger personal effects or through the mail into Australia from Germany.
  • Reproductive material derived from cattle, sheep, goats, zoo bovids, giraffe or elephants sourced or exported from Germany.
  • Veterinary therapeutics containing or derived from bovine, porcine, ovine, caprine, cervine or camelid materials sourced, manufactured or exported from Germany.
  • Pet food and stock feed containing or derived from bovine, porcine, ovine, caprine, cervine or camelid materials sourced, manufactured or exported from Germany.
  • Laboratory goods containing bovine, porcine, ovine, caprine, cervine and camelid fluids and tissues (including but not limited to test kits, animal fluids and tissues, culture media, foetal bovine serum, environmental samples and other laboratory materials) sourced, manufactured or exported from Germany.

To help mitigate the risk to Australia, Germany has been removed from the list of FMD-free countries effective 14 November 2024.

The department will shortly amend its FMD free list to reflect Germany’s new FMD status. Any commercial dairy consignment or personal quantities of dairy and beef food items from Germany will be held under biosecurity control, effective immediately. Germany is a large dairy producer and exporter, including to Australia.

Over the coming days the department will undertake a detailed assessment of all traded goods from Germany and may introduce additional import restrictions for commodities, including pet food, stock feed, laboratory reagents and reproductive material.

The department will also directly contact with any permit holders or permit applicants impacted by this outbreak to advise of any potential changes to import conditions that may be required to protect Australia’s livestock production industries.

FMD does not infect humans and does not pose a food safety risk but an incursion of the virus would have severe consequences for Australia’s animal health and trade. ABARES estimates direct economic losses of around $80 billion over a ten-year period to the livestock and meat processing sector should an outbreak occur in Australia.

Please click Read More to view IIAN 06-2025 in its entirety.

Read More

Free Trade Agreement changes for UK & India

United Kingdom’s Accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership

The United Kingdom (UK) will officially join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on 24 December 2024.

This agreement will allow the UK’s goods to benefit from preferential duty rates under the CPTPP framework, expanding trade opportunities with member countries, including Australia.

Most products will be duty-free, but exceptions like specific cheese and steel products will face transitional tariffs. Safeguards on certain steel goods of Chapter 72 and 73 (refer Attachment A to ACN 2024/43) will suspend preferential rates, aligning with UK global safeguards until mid-2026.

 

Phasing duty rates in existing Free Trade Agreements

On 1 January 2025, preferential rates of customs duty under the following free trade agreements will be reduced:

  • India-Australia Economic Cooperation and Trade Agreement (ECTA)
  • Regional Comprehensive Economic Partnership Agreement (RCEP)
  • Free Trade Agreement between Australia and the United Kingdom of Great Britain and Northern Ireland (A-UKFTA)

For example, ECTA will see a reduction in duty rates for certain iron, steel, and aluminum products from 2% to 1%.

Additionally, the suspension of preferential duty rates under A-UKFTA is expanded from 24 December 2024 for certain steel products of Chapter 72 and 73 to align with the UK’s global safeguard measures on these goods.

For affected goods, duty rates will rise to 5% and remain in place until June 2026. However, refunds may be available for overpaid duties during the interim periods.

 

Impact of amendments and withdrawals on duty rates.

It is critical that importers and customs brokers are mindful of the impact of date of lodgment on phasing duty rates and where possible lodge the FID on a date that ensures that that the lower phasing rate is received, noting also the impact on date of entry for home consumption of advance entries.

Customs Act s.132 (2) provides that if an entry is withdrawn and the goods are subsequently entered on another import declaration, the rate of duty payable is the rate in force when the goods were first entered for home consumption, unless the goods are bonded after the first import declaration is withdrawn. In this case the rate of duty payable is the rate in force when the goods are ultimately entered for home consumption on the Nature 30.

For more information please refer to:

ACN 2024-43 – United Kingdom’s Accession to the CPTPP

ACN 2024-44 – Suspension and reduction of preferential rates of customs duty

Food Import Compliance Agreement ( FICA ) for importers of Food products

Importers subject to imported food Inspections may be eligible to apply for what essentially is an accreditation scheme to reduce the number of inspection if you meet the requirement of the Food Import Compliance Agreement ( FICA ) .

Food importers can enter into a Food Import Compliance Agreement (FICA) with us. These agreements are made under section 35A of the Imported Food Control Act 1992.

Many food importers have documented food safety management systems for sourcing and importing safe food.

Under a FICA, we recognize these systems as an alternative to the inspection and testing of food imports under the Imported Food Inspection Scheme.

 

Entering into a FICA allows you to:

  • manage the clearance of your own food imports
  • reduce your importing timeframes and costs.

 

You won’t have to book or pay for an imported food inspection under a FICA. Instead, we monitor your compliance with requirements by regularly auditing your system. You can choose to have all the food you import under a FICA or just certain types of food.

All goods imported into Australia must meet biosecurity requirements. This includes food imported under a FICA. Check the Biosecurity Import Conditions system (BICON).

Further information can be found in the link below and the attachments

https://www.agriculture.gov.au/biosecurity-trade/import/goods/food/how/fica

To apply for this you will need to complete the attached application form and be subject to an audit

For full details please see the attachment.

Application to enter into a food import compliance agreement.pdf

Food Import Compliance Agreement Document.pdf

Food Compliance Audit Document .docx

Engineered Stone Ban starts January 1st 2025

Start date From 1 January 2025, engineered stone benchtops, panels and slabs will become prohibited imports under the Customs (Prohibited Imports) Regulations 1956.

Engineered stone benchtops, panels and slabs that contain at least 1% crystalline silica substance as a weight/weight concentration and is created by combining natural stone materials with other chemical constituents (such as water, resins, or pigments), and becomes hardened.

For full details please read see the attachment.

Engineered Stone Ban Industry Information.pdf