Supply Chain Leaders Insights with a Discounted Ticket

GPSM is delighted to part of this initiative by the Logistics Bureau. Following on from last year’s success we are going around again.

Supply Chain Leaders Insights, is an innovative new Supply Chain Event format and we would love you to join us there. It’s being held at Merivale, 320/330 George Street, Sydney on 19th October 2017. At a broad range of ’round tables’ industry experts will be sharing their expertise with small groups. Our chosen topic is “How to get the most out of your International Supply Chain”.

As a supporter of the event, we’re able to provide a promo code for you, so that the ticket price is only $47 a saving of $40 on the normal price. You can read more about the event and register right now, on this link: www.supplychainleadersinsights.com.au.

Date: 19th October 2017

Location: Merivale, 320/330 George Street, Sydney

 

Inbound Ocean Freight Rate Changes

Rates from North East and South East Asia/Indian Sub-Continent:

Current rates from North East Asia (China, Hong Kong, Japan, Taiwan and Korea) to Australia have been extended until 14th October 2017 without generally being changed.

Shipping Lines have advertised that they will be seeking a General Rate Increase from 15th October 2017 and they are seeking USD 500.00/20ft and USD 1000.00/40ft container rate increases, however, we believe the market will not accept such a high increment and a mitigated increase will be implemented.

GPSM are negotiating with shipping lines at present and we will advise further information on the increases after Chinese Golden Week holiday period.

Rates from South East Asia/Indian Sub-Continent:

Shipping lines operating from above area have announced that a General rate Increase will be applied to all cargo to Australia from 1st October, 2017.

Increases have been announced independently by each carrier and they vary from USD 100.00 to USD 200.00/20ft container and from USD 200.00 to USD 400.00/40ft container.

LCL rates are also expected to be impacted by the rate increase and will rise by USD 2.00 to USD 4.00 per cbm/1000kgs.

We would remind all clients that space from South East Asian ports is particularly tight at present as Peak Season takes hold and that early booking is highly recommended to avoid departure delays.

Industrial Action to Affect Sydney Vessel Movements on 26th September 2017

Please note below message just received from Port Botany advising of industrial action commencing on 26th September 2017 at Sydney Port. This action will obviously disrupt vessel arrivals and departures and could seriously affect deliveries to/from the port before and after the stoppage.

Issue: Industrial action to affect vessel movements on 26 September 2017
Short Description: Please be advised that vessel operations at Port Botany will be affected next week by industrial action.

The Port Authority of New South Wales has been negotiating with the Australian Maritime Officers Union (AMOU) and Maritime Union of Australia (MUA) over a replacement Enterprise Agreement for its Sydney workforce since February 2017.

The Port Authority of New South Wales has advised that protected industrial action is scheduled to be undertaken by MUA members working on board pilot cutters operated by the Port Authority from Port Jackson and Port Botany as follows:

24 hour stoppage commencing at 0600 Tuesday 26th September 2017

The action proposed will suspend the use of the pilot vessels to embark and disembark Pilots in Port Jackson and Port Botany.

Our Transport Team will be in contact to change any existing arrangements or to replan deliveries on completion of the industrial action.

Port Space Availability Becoming an Issue For Early Peak Season

Space Availability Becoming an Issue For Early Peak Season

There are extensive space issues out of Malaysia, Singapore, and Thailand for traffic to Australian ports. All carriers are fully booked and space is becoming extremely hard to obtain at present with first available vessels now being quoted as October. This situation is normal in Peak Season but the very high volume of traffic from Malaysia and Thailand is abnormal compared to previous years.

It is imperative that any orders be advised as soon as possible so that we can book early to secure space, GPSM has found that some space is still available but with delays to all bookings.

LCL Depot Implement Int’l Terminal Fees

QUBE Logistics, operators of LCL unpack depots in all major Australian ports are to introduce a “terminal handling fee” of AUD 30.00/shipment from mid-October, 2017.</p.

QUBE is blaming increased costs for the introduction of this fee and so far, are the only depot to implement such a charge, however like the new charges introduced at the FCL terminals recently it is expected that other depot operators may also introduce a similar charge in the future.

The new fee has been announced without any industry consultation, and several industry bodies have already met for discussions with the operator but they have shown little compassion and are continuing with their implementation plan.

Hurricane Irma hits Florida.

Hurricane Irma has caused severe damage to infrastructure throughout Florida and is having an adverse effect on container/cargo movements. Several services have been disrupted so shippers/consignees can expect delays to cargo movements in and out of Florida until the situation is cleaned up and business operations are back to as normal as possible.

China Golden Week.

China will close for National holidays from 1st October until 8th October 2017, however many factories and businesses traditionally extend the holiday longer. Trucking operations are also traditionally heavily affected as many of the drivers are from inland areas and return to their home cities and towns during this period.

Shipping lines have announced that sailings will be reduced during this period, some lines will substitute smaller vessels than normal on the Australian trade during and after the holiday period. This will result in space shortages so it is imperative that bookings for the 2nd half of September-early October shipments be received as early as possible to avoid delays.

Italian Summer Holiday Notice 2017

Dear Clients,

We would like to advise that most Italian suppliers, factories and trucking companies will be closed for Summer Vacations from August 7th up to August 25th.

Heavy goods vehicles are totally banned from roads from 4.00pm July 28th until 4.00pm August 4th, 2017.

Below is a list of the various Italian regions and their respective holiday periods:

Valle D’Aosta, Liguria, Piemonte, Trentino Alto Adige, Veneto, Friuli Venezia, Giulia, Emilia Romagna & Toscana, closed from 12th to 18th August.

Marche, Abruzzo, Molise, Campania, closed from August 12th to August 18th.

Puglia, Basilicata, closed from August 11th to August 21st.

Lazio, Calabria, Sicilia, Sardegna, closed from August 2nd to August 18th.

 

New Tax Rules in India

Our Indian partners have advised us of the following information on a new GST to apply to all services in India from 1st July 2017.

The Government of India is planning to implement GST to all services in India with effect from 1st of July 2017.

Goods and Services Tax (GST) is one indirect uniform tax throughout India to replace indirect taxes levied by the central and state governments, thereby making India one unified common market.

Though GST is a tax reform, it is going to impact every sphere of business activity and replaces multiple taxes such as Central Excise Duty, Service Tax, Commercial Tax, Value Added Tax (VAT), Central Sales Tax (CST), Octroi etc. levied by the Central and state governments. It is essentially a tax only on value addition at each stage of the supply chain hence no cascading effect

Under present indirect tax regime, freight charges on exports are considered exports of services and are exempted from the applicable Service Tax.

However, export freight is subject to 18% GST under the newly introduced GST rules. Due to this the freight forwarding industry has lobbied with the Indian government to obtain exemption of export freight services in new GST tax regime as well. So far the government has not indicated that export related costs and freight charges will be exempted but the trade representatives with the help of the subject government ministry advisers are continuing to negotiate to obtain the exemption.

Therefore, as the government has not issued a communique at this time, exempting freight charges, all freight charges (that are prepaid in India) will be subject to GST of 18 % wef 01st July 2017. For sea freight shipments routed from Australian clients via GPSM on freight collect basis, there will be no change to ocean freight arrangements as the freight is paid by GPSM to the line in Australia.

For airfreight shipments, there will be tax payable as all airfreight costs are paid to the airline in India to avoid the incredibly high Currency Adjustment Factor billed by airlines in Australia when cargo arrives on a “collect” basis.

Such increase will apply to entire shipping fraternity without any exemption

Patrick’s Infrastructure Surcharge

Patrick’s Infrastructure Surcharge

Following the Implementation by DP World Port Terminals of an Infrastructure Surcharge on all containers moving through the Australian ports, Patrick’s Terminals are also implementing a similar charge effective from 10th July, 2017 to all Australian terminals. This action comes as no surprise and has been expected for the last few months.

Infrastructure investment, port rental charges and operating costs are being blamed for the increase, why the costs are not being passed onto the terminal’s clients (the shipping lines) we will never know. Unfairly, in our opinion, there has been no room for negotiation and we believe the additional costs form part of Terminal Handling Charges that have been traditionally paid by us on your behalf to shipping lines, why these costs are now being levied directly on importers and exporters via their nominated trucking companies is a mystery.

Air Cargo Security Screening Requirements for all cargo shipped to USA.

From 1st July, 2017, United States Legislation requires that all air cargo being transported to USA is required to be examined at piece level or be supplied by a Known Shipper. The new screening requirements will result in delays to cargo departure, particularly if cargo is delivered directly to the airline, the sheer volume of cargo being received will be too great for the airline screening equipment to handle efficiently and quickly. The new screening requirements will also add extra costs to every shipment, we are negotiating costs at present and will update same to all clients as soon as possible.

GPSM are pleased to confirm that all the Australian off-airport warehouses we use for all export cargo from Australia are now fitted with the latest screening equipment, thus we will be able to avoid the expected airline screening congestion and departure delays.

While the new measures are applicable at this time only to cargo exported to USA, it is not inconceivable to expect that the requirements will be extended to several other destinations in the future.

Los Angeles/Long Beach Ports Truck Drivers and warehouse workers to Strike from June 19, 2017.

Southern Californian Trucking company drivers and warehouse workers who serve the Los Angeles/Long Beach port complex are striking from June 19th in their latest protest against what they say are “greedy corporations” that are “illegally exploiting them”. The labour action is the latest in more than a dozen disputes that have been held at the port complex over the last few years as workers attempt to gain recognition as employees by the companies they work for, instead of being treated as independent owner-operators or contractors.

It is expected the strike action will last for five (5) days from June 19-23 and that 100 drivers and warehouse workers are expected to participate. It is expected there could be some disruptions to some local deliveries to/from the port complex. Notably, the strike has not gained the support of the International Longshore and Warehouse Union, which has not honoured the trucker’s picket lines.

Bio Security Requirements Pacific Islands

Bio Security requirements throughout all countries in the Pacific Islands are now being strictly monitored with imported containers being inspected for untreated and infested timber pallets, timber packaging material ad timber crates. In timer material that contravenes the local Bio Security requirements will be directed for fumigation.

To avoid the additional costs and delays in obtaining cargo, we suggest all cargo should only be loaded on treated timber or plastic pallets. Below is the international mark authorised for all treated timber pallets and packaging material, it is essential this trademark be clearly visible:


International Mark for Timber Pallets and Packaging Material

Customs Document Processing Delays

The Australian Border Force is experiencing significant Customs Entry processing issues that are affecting all processing of Import and Export Customs Entries. This may lead to some delays in cargo deliveries.

The Department is investigating the issues as a matter of urgency and will continue to keep all Freight Forwarders and Customs Brokers updated as  appropriate

Download Important Forms Now

Please take a moment to look at new forms that have been posted in Communicater.

Go to View -> Resources -> Download Forms

Information has been added for topics on Asbestos, Fumigation, Certificate of Origin, Plywood declaration.

Download Documents:

Asbestos Supplier Declaration
Asbestos Importer Due Diligence Declaration
DEPARTMENT OF IMMIGRATION AND BORDER PROTECTION NOTICE
AFAS – METHYL BROMIDE FUMIGATION CERTIFICATE

Latest Asbestos Document Updates

Based on the further information we have obtained from the Australian Border Force (ABF) regarding the importation of goods which may contain Asbestos, we have had to update the Declaration Forms.

To satisfy the ABF’s requirements that the imported goods do not contain Asbestos and to be compliant with the requirements for lodgement of customs entries, we have prepared forms that need to be completed by both your supplier and a form by the importer confirming they have completed due diligence requirements.

Please refer to the link below for previous newsletters.

CLICK HERE

Download Documents:

Asbestos Supplier Declaration
Asbestos Importer Due Diligence Declaration
DEPARTMENT OF IMMIGRATION AND BORDER PROTECTION NOTICE