Author: GPSM

BMSB Season in NZ:

The Ministry for Primary Industries (MPI) has finalized the seasonal measures for the 2023-24 high risk season that commences on 1st September 2023 and runs until 30th April, 2024.

Effective sailing on or after the 1st September 2023, all target high risk cargo shipped from or via target risk countries must be treated by an approved treatment provider.

Full listing of countries and commodities are listed below. The measures remain consistent with the 2022-23 BMSB risk season.

For the 2023-24 BMSB risk season, measures will apply to:

Targeted goods shipped from target risk countries, and/or Vessels that berth at, load, or transship from target risk countries

• The BMSB risk season is for goods that have been shipped between 1 September 2023 and arrive into NZ before 30 April 2024 (inclusive), and vessels that berth, load or transship from target risk countries within the same period. High Risk Goods (Vehicles, Machinery, and Parts Thereof / VMP) must be treated for BMSB if moving within these dates.

New/Unused goods that have been stored exclusively indoors prior to export can be exempt from treatment requirements where a valid Manufacturer’s Declaration is provided. The template for this declaration is available on request from our team.

• Italy: All cargo shipping from or via Italy must be treated; this is not limited to VMP only.

There is a list of sensitive risk goods that an MPI CTO considers to be sensitive to treatment included below, these are the only commodities that may be imported from Italy without treatment.

The following countries have been categorised as target risk and VMP cargo will require mandatory treatment for BMSB:

 

ALBANIA	GERMANY	POLAND
ANDORRA	GREECE	PORTUGAL
ARMENIA	HUNGARY	ROMANIA
AZERBAIJAN	JAPAN	SERBIA
BELGIUM	KAZAKHSTAN	SLOVAKIA
BOSINA AND HERZEGOVINA		SLOVENIA
BULGARIA	KOSOVO	SPAIN
CANADA	LIECHTENSTEIN	SWITZERLAND
CROATIA	LUXEMBURG	TURKEY
CZECHIA	MOLDOVA	UKRAINE
FRANCE	MONTENEGRO	USA (excludes Alaska and Hawaii)
GEORGIA	NETHERLANDS	REPUBLIC OF NORTH MACEDONIA

 

Import Health Standard for Sea Containers from All Countries

Section 3.1.1 (3) Inspection

 

Under Section 2.3, Option B: a) an MPI Inspector may inspect sea containers and cargo instead of (fumigation or heat) treatment where:

1. The importer has notified MPI that the sea container contains cargo that the importer considers is sensitive and would be damaged by the treatments for Brown Marmorated Stink Bug (BMSB) specified in the MPI Approved Biosecurity Treatments; and
2. An MPI Chief Technical Officer has determined that treatment may damage the cargo.

Sensitive risk goods

The list of sensitive risk goods that an MPI CTO considers to be sensitive to treatment are as follows:

• Agricultural compounds and veterinary medicines;
• Food for human consumption (including beverages);
• Food-grade packaging materials (such as thermal plastic film);
• Fresh produce;
• Frozen food products;
• Live animals;
• Leather goods (apparel and furniture)
• Pet food;
• Pharmaceutical products;
• Polyurethane bales and foam products;
• Refrigerated goods;
• Seed for sowing;
• Special Category Risk Goods (Chemical, Explosive, Mineral, Radioactive or Volatile);
• Tank-tainers and
• Textiles (including yarn).

Guidance: The intended coverage for Italian–origin “sensitive textiles” is intended to include clothing, fabric, other natural products such as finished furs, finished hides, processed leather, rayon, silk, and yarn/wool; and other textiles for making furniture that are sensitive to treatment required for the BMSB. This sensitive consideration can also cover raw unfinished products and unfinished furniture. This coverage excludes other industrial application products that do not meet the description of “sensitive textiles” as above. Note 1: In an importer’s MPI application for biosecurity clearance, importers must notify MPI in writing that the cargo is considered to be sensitive to treatment so that appropriate MPI intervention can be arranged. Failure of an importer to notify MPI of the sensitive nature of the sea container and cargo is likely to result in delays to biosecurity clearance being provided, or re-shipment or destruction of the sea container and cargo. Note 2: A sea container or risk goods that do not meet the requirements of an Import Health Standard will not be given biosecurity clearance under the Act. Such non-compliant risk goods will be directed by an MPI Inspector as per Section 122 of the Act for further action as considered appropriate to manage the biosecurity risks.

Service Disruptions from North East Asia:

Severe Typhoons in North East Asia have disrupted vessel departures from China, Taiwan, Korea and Japan over the last week to 10 days.

Most sailings from this area have been delayed by 3-4 days, hopefully the typoons have now passed and scheduling can get back to normal.

 

Svitzer Tug Services resolve Enterprise Agreement:

Svitzer Australia have announced that the new National Towage Enterprise Agreement (2023) has been approved by the Fair Work Commission. The new Agreement came into effect from late July 2023 and is valid for a four-year period through to July 2027.

Svitzer have made the following commentary:

“We look forward to building on the certainty and stability the approved agreement provides over the next four years, and to continue delivering our valued customers with leading maritime solutions and towage infrastructure.

 

Australian Port Charges:

Several shipping lines, including Yang Ming, Hyundai Line and OOCL Line, have advised that their Australian port charges will increase from today, 10th August, 2023.

The increases range between $ 20.00 and $ 40.00 per container and as usual GPSM will bill clients at cost.

New Zealand MPI Bio-Security Fee increase:

The Government has agreed to increase the Biosecurity System Entry Levy to $46.40 and to set a new maximum rate of $50.00.

The maximum rate is the highest amount the Director-General of MPI can set the levy without further Cabinet decisions. The Government has also agreed to increase the hourly rate for biosecurity fees to $155.50 per hour

Increased Booking Fees:

All Port Vehicle Booking Fees as well as empty container park fees will increase from 1st July, 2023 Australia wide to new rates of $ 75.00 and $ 135.00 per container respectively.

The ports and empty parks have all added extra fees to their booking requirements (including energy/power surcharges).

GPSM rates have been adjusted in the GPSM web portal accordingly.

Import DAFF Declaration Fees:

Australian AQIS office has announced an increase in Declaration Fees for Import Air and Sea shipments effective from 1st July, 2023.

Full air declarations will increase from $ 38.00 to $ 43.00 per shipment, while the fees for sea shipments will increase from $ 58.00 to $ 63.00.

Airline Handling Fees:

Air Cargo Terminal Operators have announced a further increase in their handling costs effective from 1st July, 2023.

The Airline Airway Bill fee will increase by $ 2.00 to $ 69.00/shipment and the Airline Transfer/Terminal Fees will increase by $ 0.02/kg to $ 0.69/kg.

The revised rates have been updated in the GPSM rates portal.

Shipping Line Results:

Shipping Line Q1 results showed EBIT dropped 81% year on year in 2023-Q1 to USD$7bn.

Indications of a market weakness emerged in the latter half of 2022, which fully materialized in 2023-Q1 with revenues experiencing a sharp decline of 35% to 70% year-over-year.

This trend is evident in the EBIT/TEU figures, as none of the shipping lines sustained their 2022-Q1 EBIT/TEU levels in 2023.

On average, the shipping lines recorded an EBIT/TEU of USD$330 in 2023-Q1, 81% down on the 2022-Q1 average of USD$1,829.

However it still surpasses the average of USD$53 between 2010 and 2021.

Import Rates from Asia:

Rates to Australia continue for July 2023 at almost record lows due to low volume of traffic moving.

It is the traditional Peak Season period in late July/early August however shipping lines are not expecting a huge increase on current volumes so we expect minimal rate increases in coming weeks.

The shipping lines have been working with their “blank sailing” model that has seen a large number of sailing cancellations to Australia over recent months saving lines on operating costs.

Shipping Line Services:

Sealead Line/Nautilus Line have recently cancelled their second leg service from Singapore/China to Indian Sub-Continent and Mediterranean ports despite only introducing the service earlier this year.

Their services to and from Australia to East and South East Asia are unaffected by the change.

BAL Lines, a new entrant into the China/Australia market have only operated one (1) service per month during May and June 2023, instead of their original weekly schedule, a true reflection of the soft market at present.

31 May 2023 has been announced as the date of entry into force of the much anticipated Australia-United Kingdom Free Trade Agreement (A-UKFTA).

During his visit to the United Kingdom, Prime Minister Anthony Albanese made the announcement noting that “The Australia-UK FTA represents one of the most comprehensive, innovative and ambitious free trade agreements concluded by Australia to date and strengthens an already close relationship between Australia and the UK.”

With the entry into force of this comprehensive agreement, there will be no tariffs on over 99 per cent of Australian goods exports to the UK and savings of approximately $200 million a year will be made as tariffs on imports from the UK are eliminated. After five years, all UK imports will enter Australia duty free.

More details to come in the following weeks.

The Department of Agriculture, Fisheries & Forestry (DAFF) , will now offer document assessment outside standard operating hours.
The department’s business hours are 6:30 am to 6:30 pm, Monday to Friday (excluding public holidays).
Documents may be assessed outside business hours subject to officer availability and acceptance of the cost.
Please note where officer availability is limited, perishable and some emergency services goods will be prioritised first.

Document processing is taking up to 5 days or more, there are extensive delays which is leading to goods potentially going on storage and causing delay in delivery.

DAFF will be charging additional fees for this service which can be found in the attached copy of charging guidelines. Could you please notify our office if you wish to use this service.

Attachment:DEPARTMENTAL CHARGING GUIDELINES – Biosecurity and Export Regulatory Functions

Terminal Charges:

Terminal Operators, DP World, Patricks, VICT and Hutchinson’s have announced a further increase to their landside charges, including Port Infrastructure Levy, Port Booking Fees and associated charges from 6th March.2023.

The Terminals are pushing ahead with cost increases as part of their “Infrastructure Investment strategies” regardless of the enquiry into a number of port deficiencies, turn rates for loading/discharging and truck turnaround times and all associated costs.

The increases vary from port to port, on average we note that extra costs will be $ 50.00 to $ 80.00 per container across Australia. The new rates will be added to GPSM rates modules and will apply from above listed date. The costs will flow through to LCL port charges as well, some consolidators are now adding “CFS Infrastructure Levies, Energy Levies as well as an Indexation Fee to cover their increased costs. We expect those addition costs to range between be $ 10.00-$20.00 per cubic metre.

 

Port Charges:

Shipping Lines have been increasing their port charges and Documentation Fees over the past few weeks, with more lines due to increase costs from 1st March, 2023. Generally the cost increases amount to $ 30.00/20ft and $ 50.00/40ft container, GPSM will be adjusting our billings to account for the added costs from 1st March, 2023.

 

Trucking Rates:

Trucking companies across the country are facing driver shortages, higher wages costs to retain existing staff, increased costs for new equipment, spare parts and vehicle servicing as well as longer than normal delays at ports and empty container parks. Inflation is a big driver in the cost increases and GPSM have tried to keep prices at previous levels for as long as possible.

We have invested, and are continuing to invest, in a wide range of new equipment with prime movers, trailers and Taut-Liners to allow us to continue to service all client needs with a high level of service.

From 15th March, 2023, we regret we will need to adjust pricing by an average of $ 25.00/20ft and $ 50.00/40ft container to be able to maintain our service levels, there will also be minor adjustments to LCL trucking rates where required.

 

Overweight Containers:

We have seen a lot of overweight containers arriving in Australia in recent months. Please be aware as we have mentioned previously that the port terminals are now weighing every container imported or exported, any container found with a weight exceeding the declared manifested weight by 1,000kgs or more will incur a fine.

Please note we also have issues with overweight containers on our roads, Roads and Maritime NSW and other authorities in other states are checking truck weights regularly and if containers are over-loaded on the axles, we face a large fine for every time an overweight container is detected. GPSM and our sub-contractors have no way of determining how a container is packed when we collect it from the port, so we ask all clients to ensure their suppliers are loading all containers correctly with even weight distribution throughout the container.

Our agent in Turkey has sent the below information on the situation there following the large earthquake that hit the area last week:

We would like to give you brief information in terms of terrible earthquake affection to 10 cities in South Eastern and Eastern regions in Turkey.

1. 10 cities- mostly iskenderun,Antakya, Gaziantep, Kahraman Maras, Adiyaman,Sanliurfa,Malatya, Osmaniye- have been impacted, with 35,418 people having lost their lives and 90,278 people reported injured as of today.
2. Factories are providing accommodation services to earthquake victims.
3. The state dormitories will accept only earthquake victims, and in order to accommodate this all universities are with remote study model.
4. Ports: Mersin port is working, and carriers are accepting booking requests. Carriers have informed that there will be delays, postponements and roll over issues, we will check on a case-by-case basis when there is a new booking request . The fire has been extinguished in İskenderun Port but not capable to make operation now.
5. Difficult to find out available trucks to carry cargo except donation goods. Most trucks are working to Earthquake affection areas.
6. Roads: The roads have been seriously damaged especially. Truck delivery is not possible from/to earthquake zones until further notice.
7. Factories: All of factories are still closed in Gaziantep, Kahramanmaraş, Antakya, Iskenderun and other nearby cities.
8. Export of container houses and prefabricated buildings is banned for 3 months.

Below synopsis of the current import/export market situation in USA has been provided to us today from one of our service providers:

PORT UPDATE:

Los Angeles: Congestion at mid-level with dwell times averaging 0-2 days.

New York: Vessel waiting time is 0-1 days at PNCT and APM Terminal due to berth congestion.

Charleston: Vessel waiting time is 0-12 hours due to berth congestion.

 

RAIL UPDATE:

Los Angeles: Due to railcar shortages, limited rail allocations, and lack of rail crew, dwell times on the west coast have soared to an estimated 10-30days.

Chicago Chassis Shortage: Chassis deficits continue to be observed on a weekly basis in Chicago.

Chicago Rail Ramp Congestion – Due to congestion at destination ramps and accumulating backlog of cargo at origin ports, delays are to be expected in origin departure from long beach and Oakland for rail deliveries to Chicago.

East Coast: Chassis Shortages: Due to persistent congestion nationwide, chassis shortages continue to be observed resulting in potential delays for pick-up and delivery

 

Branch	Truck power & Lead-time	Equipment availability & waiting time	Congestion
Los Angeles / Long Beach	2-3 days turnaround at the terminals once container is made available.	Chassis shortages are still contributing to the existing issues with equipment. Dwell times significantly decreased. Trucker appointments available in limited number of slots for entry per day	Congestion has eased below pandemic levels. Vessel queue to enter terminals has dropped by 88%.
New York	(Import) pre-booking is preferred, but carriers have more capacity and can accommodate a week/few days out. (Export). Equipment and chassis availability has not been an issue for exports, congestion fees are still being applied. (1 week needed for pre-booking no longer applicable)	Equipment availability & waiting time looking stable.	Dwells are around 0-2 days. Empty returns readily available.
Chicago	EXPORTS: Required lead-time is 1 week out. Chassis availability is improving. IMPORTS: Truckers are advising an improvement 1 week lead time.	Chassis Shortage in Chicago.	EXPORTS: Clear IMPORTS: Delays in Chicago are due to equipment still. Also heavily dependent on the rail and POD the containers are coming in from.
Charleston	Good availability. Booking 2-3 weeks in advance of ETA	Chassis availability: Normal	Operating normally Dwell time: 0-2 days

 

We hope our Kiwi friends are not seriously affected by the arrival of this cyclone, they have already seen a lot of flooding and damage from recent exceptional rainfall in Auckland.

Ports in NZ are suspending all operations today with the expected arrival of Cyclone Gabrielle. All or most vessels have been sent to Anchor in the harbour for safety with the port only expecting operations to start again on Wednesday morning at the earliest, any vessel enroute to and from Auckland will be delayed by 3/5 days. This will cause delays on dedicated Trans-Tasman route vessels like the Focus Container Line vessel the “BBC Denmark” which was about to start loading export containers in Auckland before being sent to anchor, it will therefore be delayed by about a week on its arrival/departure from Brisbane.

NZ Port Operations over coming days:

• Port of Auckland Officially Closed from Sunday 12/02 until at least Wednesday 15/02 0700hrs.
• No vessel / cargo operations at Port until Wednesday at this stage.
• No ability to collect Import containers until Wednesday at this stage – there will be delays in collection due to congestion later this week.
• No vessels allowed to call Port Auckland – all vessels due are currently @ anchor away from Port Area.

LCL Depot Operations:

• No devanning/loading of containers from today 13/02/23. Expected to re-commence AM 15/02/23.
• No COASTAL Services – no cargo will move this week to Christchurch (Vessels normally leave Monday – Tuesday) All Coastal bookings to CHC will be moved next week.
• No collection/delivery of LCL Freight until at least Wednesday AM 15/02/23 – storage extended for all import/export cargo due to weather.

We hope our Kiwi friends are not seriously affected by the arrival of this cyclone, they have already seen a lot of flooding and damage from recent exceptional rainfall in Auckland.