Freight & Trade Alliance (FTA) has received numerous reports from members of extensive messaging delays with the Integrated Cargo System (ICS).

FTA have addressed the matter with senior management of the ICS Systems team at Australian Border Force . This is delaying the processing of Customs entries through the Border Force system.

Freight & Trade Alliance (FTA) has received extensive feedback from members in relation to document assessment (three to seven days) and lengthy delays (in many instances, several weeks) in inspection booking responses and next available inspection times by the Department of Agriculture, Fisheries and Forestry (the department).

 As a result, recent feedback indicates that in addition to exorbitant container detention fees being paid to shipping lines for failing to return empty containers to nominated facilities within prescribed timeframes, high storage charges are being applied by terminals and depots until cargo is released by the department.

 This outcome is particularly alarming as it has occurred during a period that is typically regarded as ‘off peak’ in the lead up to the Brown marmorated stink bug (BMSB) seasonal measures commencing 1 September 2022.

 In the interim, in order to provide some visibility of the problem, FTA has been providing regular member updates, formal submissions (including to the Productivity Commission review of Australia’s Maritime Logistics Systems – recommendation 7) and media commentaries in relation to the ongoing challenges being faced by industry when having cargo assessed or inspected by the department.

BMSB seasonal measures will apply to targeted goods manufactured in or shipped from target risk countries, that have been shipped between 1 September and 30 April (inclusive), and to vessels that berth, load, or tranship from target risk countries within the same period.

• All target high risk goods shipped as break bulk must be treated offshore prior to arrival into Australia.
• Untreated break bulk will be directed for export.
• Onshore treatment is not permitted.

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Empty shipping container congestion has spiked again in Sydney in recent weeks, leaving importers and their transport providers incurring added costs from empty de-hire delays, yard storage of empties, futile trucks trips, and additional administration.

The congestion and delays come off the back of a relatively positive month in June when over 80,000 TEU (Twenty Foot Equivalent Units) of empties were evacuated by shipping lines through Port Botany, with a Load/Discharge Ratio of 1.07.

Unfortunately since then, weather events in Sydney have led to unforeseen reductions in the movement of empty containers away from Port Botany, leaving the main Empty Container Parks (ECPs) at or near capacity. The ECPs have not been able to accept additional empty equipment for their client shipping lines and are asking importers / transport operators to contact shipping lines for de-hire alternatives, which are not forthcoming.

The empty container chain in NSW is unfortunately broken. It takes only slightly higher import volumes, caused in large part by off-window vessel arrivals and bunching, and larger container exchanges from those vessels, coupled with delays due to weather events or other issues impacting on ECP capacity, and the system becomes chaotic and unsustainable.

Trucks are literally driving from ECP to ECP looking for a de-hire location, only to be told by ECP operations staff that they aren’t accepting that equipment anymore due to capacity constraints, or that a redirection has been notified. This is despite the transport operator having a valid Notification Window slot booking through the Container chain truck-arrival notification system which aren’t being accepted in good faith.

CTAA has seen numerous email exchanges with shipping lines where they have been unable to advise an alternative de-hire option, yet they are also reluctant to issue immediate waivers or extensions to container detention fee policies even though they cannot offer adequate de-hire capacity.

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.