DHL GLOBAL FORWARDING AUSTRALIA - LATEST INDUSTRY NEWS

Welcome to the December 2017 edition of the DHL Global Forwarding Industry Update, your monthly summary of key developments.

As we fast approach the end of year, and to ensure your deliveries are on time and delivered in full, your assistance is required to help identify any special cargo handling requirements you may have, and the particular dates that your business will be closed over the holiday period. Please complete our Christmas Closure Information Form.

Thank you for your ongoing support and feedback.

Best Regards,

David Cartmer
Head of Sales and Marketing Australia


Jaguar Land Rover Australia & DHL Global Forwarding Mark 20 Years of Business Growth

November 1997 was the start of a long and fruitful business relationship between two stalwarts of the Australian transportation industry. 

  • Originally starting as a contract between MSAS, which was to become Exel and then DHL Global Forwarding, and BMW, who were sold to Ford, then TATA before becoming Jaguar Land Rover Australia - the relationship has also evolved and changed over the past 20 years.

    The two businesses have worked through all these changes, to forge an ongoing partnership that has seen various logistics strategies implemented and tailored to suit the changing marketplace.

    Comments Mark Hartigan, Parts Operations Manager at Jaguar Land Rover Australia: “DHL Global Forwarding has evolved with us as our needs have changed. Over the years our relationship has spanned both Air and Ocean Freight including customs clearance. We have worked hard to ensure that through our logistics strategies we service the needs of our customers, the dealers around the country, who need specialized parts to in turn service their customers.

    “The longevity of our relationship means that DHL really understands our needs and has worked consistently over the years to tailor solutions, such as reducing transit times and maximizing Air Freight space. They have worked hard for us, not just as a supplier, but more as a partner to help us grow.”

    “Over the past 20 years, the business has evolved. Jaguar Land Rover Australia has grown from selling approximately 4,000 to nearly 20,000 vehicles a year - highlighting the popularity of British ingenuity, craftsmanship and innovation among Australian car buyers.”

    “With the changes in aviation regulations in particular, we’ve had to work very hard to work with the various airlines to comply. Our DHL team, led by Greg who has worked with us from almost the beginning, has been great in helping us to find the right carriers to move parts.”

    “But it’s not just moving the parts - there are also many complications around customs duties and government draw backs that we’ve needed help with. It’s incredibly important to stay compliant to regulations, but there are also cost-savings to be had, and DHL’s Industry Assistance Division has been great in ensuring we are paying the right duty and that it is categorized correctly on all documenting.”

    Elaborating on the partnership, Greg Antonopoulos, Key Account Manager, DHL Global Forwarding, adds: “A 20 year milestone is a significant one and highlights the strength of both of our organisations. Like a marriage, a business relationship needs to evolve and grow - and we’ve been very careful in ensuring that we both share in the challenges and successes that are inevitable over such a long period of time.”

    “We have always kept the focus on ensuring that Jaguar Land Rover Australia and their end customers get what they need, as quickly and cost-effectively as possible.”  

    “It has been an amazing journey, with ongoing changes, but we have seen a tremendous business growth and hope this continues for many years to come.”


Taste Ireland Gains New Freshness in Australia with DHL end-to-end Direct Shipping Service

The food distributor will use DHL’s freight consolidation, shipping, and last-mile services to maintain quality of its iconic Irish brands as demand grows.

Taste Ireland selected DHL for its track record in compliance, door-to-door visibility, and timely delivery of perishable goods.

  • Taste Ireland, Australia’s largest distributor of Irish foods, will raise the freshness and availability of Ireland’s iconic food brands in Australia with a new end-to-end freight solution from DHL.

    The solution will see DHL Global Forwarding, the leading international provider of Air, Ocean and Road Freight services, ship Taste Ireland’s products - including much-loved Irish labels like Tayto crisps and Barry’s Tea - on direct sailings to Australia, selected to minimize transit times and the risks of in-transit food expiry.

    Prior to shipping, DHL will consolidate and pack Taste Ireland’s high volumes of orders - from customers including major supermarket chains Coles and Woolworths as well as most Irish pubs in Australia - to reduce container numbers and subsequently optimize transport costs and times for the distributor.

    “We chose to work with DHL because of their exemplary track record in handling time-sensitive food shipments with strict compliance, accuracy, and efficiency,” said Eamon Eastwood, CEO, Taste Ireland. “As our business continues to grow at breakneck speed, we needed a forwarder who could not only simplify and speed up our shipping process across numerous line items, but give us full visibility of and confidence in our shipments’ freshness when they arrive at each customer’s door.”

    To further expedite the delivery process, DHL will also pre-clear Taste Ireland’s shipments with Australian customs prior to their arrival, as well as offering door-to-door Air Freight for more urgent shipments. Doing so ensures DHL can swiftly deliver shipments across the final mile to Taste of Ireland’s warehouses for unpacking and retail distribution, supported by regular reports and status updates through all stages of each shipment’s journey.

    Tony Boll, CEO, DHL Global Forwarding South Pacific said “We’re excited to be helping Taste Ireland as it makes the leap from SME to global supplier of repute, by giving them total visibility and compliance across every facet of the logistics process as well as the support of our world-class customs clearance processes.”

    “Outsourcing the entire supply chain to a single trusted logistics provider gives importers like Taste Ireland huge freedom to extend their horizons,” said Tony Boll, CEO, DHL Global Forwarding South Pacific. “The time previously spent on in-house logistics management can now go into how Taste Ireland markets and sells Ireland’s favorite foods to meet untapped and increasingly hungry demand throughout Australia and the South Pacific.”


Air Market Trends and Updates

  • Peak Season Hits Air Capacity.
  • AirAsia X reduces capacity from Australia as focus shifts to Asia
  • Peak Season Hits Air Capacity

    Air Freight’s peak season is well and truly upon us. Seasonal pressure to have product to market for the Christmas period along with cross-border

    E-commerce demand and high levels of urgent shipments are driving demand for air cargo, however limited capacity during peak season and physical limitations at airport hubs are placing pressures on Air Freight costs and timely uplift. 

    Earlier this year, the International Air Transport Association (IATA) released data for global Air Freight markets showing that demand, measured in freight tonne kilometers (FTKs), increased by “double digits” this year compared to 2016, with the months leading up to peak season already showing figures which were nearly four times higher than the ten year average growth rate.

    Worldwide, retail e-commerce sales are expected to reach US$ 2.29 trillion in 2017 and increase to US$ 4.48 trillion by the end of 2021, equating to 16.1 per cent of total retail sales. Consumers in China will generate almost half of all world-wide e-commerce sales in 2017.

     

    AirAsia X reduces capacity from Australia as focus shifts to Asia

    AirAsia X Malaysia is slashing capacity to Gold Coast, Perth and Sydney in 2018 in an attempt to improve the profitability of its Australia operation. The long haul low cost airline is cutting flights to Perth by 50%, to Gold Coast by 36% and to Sydney by 21% from the beginning of February 2018.

    AirAsia’s total Malaysia-Australia capacity will drop by 26% year-over-year. However, AirAsia X may add flights to Melbourne later in 2018, partially offsetting the declines elsewhere in Australia.

    This is the second time in three years that AirAsia X has slashed capacity to Australia. Capacity was cut by nearly 40% in early 2015 as part of a major network restructuring, but all the capacity was added back over the last two years as AirAsia X resumed expansion.


Chain of Responsibility – What Are Your Obligations?

The National Heavy Vehicle Regulator website can help you understand your role in the supply chain and what is your obligation within Heavy Vehicle National Law. Along with guidance the website also includes a CoR Gap Assessment Tool

  • There are an abundance of websites all offering CoR solutions. Some providers offer excellent material and others don’t. Some try to install fear to sell their services. Others charge the earth and deliver an off-the-shelf product that may have little relevance to what you actually need.

    The National Heavy Vehicle Regulator is a free website that has accurate information and also contains some very useful tools to help you understand your role in the supply chain and what your obligations within Heavy Vehicle National Law are.

    The website also includes a CoR Gap Assessment Tool. This tool is an online questionnaire which, based on your responses, will identify your organisation’s position in the supply chain and where it may not be fully compliant. On completion of the questionnaire, a list of corrective actions you may consider implementing, to improve your level of compliance, will be generated. 

    If you are unsure of your role in the supply chain, and therefore your responsibilities under Heavy Vehicle National Law (HVNL), the CoR Gap Assessment Tool is an ideal first step to achieving compliance with HVNL. The tool can be used for free and all outcomes are confidential.

    Access and complete the gap assessment tool.

    At DHL Global Forwarding we see CoR compliance as a pillar of our Safety First endeavours and plan to include regular helpful CoR information in our Customer Newsletters. If you require additional information a good website to visit is the National Heavy Vehicle Regulator (NHVR).

    The NHVR is the administrator of Heavy Vehicle legislation in all states with the exception of Western Australia and Northern Territory who maintain their own legislative regime. If it is deemed appropriate contact us for further advice


Customs Updates

  • Updated Packing Declaration Templates for Ocean Freight Consignments.
  • Consultation open on Biosecurity Legislation Amendments.
  • GST on Low Value Transactions set for July 1st 2018.
  • Updated Packing Declaration Templates for Ocean Freight Consignments

    The Department of Agriculture and Water Resources has advised they have again changed the required wording on packing declarations, this being their 5th change in the last 12 months.

    The department has aligned their Information Requirements policy and the Non Commodity Case with the import conditions for bamboo packaging. 

    Bamboo packaging is now acceptable provided it is treated by an approved method prior to export or on arrival and does not need to be declared as unacceptable packaging.

    The department will continue to accept packing declarations that are in the current format for consignments shipped on or before 30th June 2018. 

    All consignments shipped on or after 1st July 2018, must be accompanied by a packaging declaration that meets the revised requirements.

    Updated templates are now available on the Acceptable Documentation Templates webpage to enable you to advise your suppliers to start using the new templates.

     

    Biosecurity Legislation Update

    The Australian Government, through the Department of Agriculture and Water Resources, has commenced consultation on an exposure draft of the Biosecurity Amendment (Miscellaneous Measures) Bill 2017 (the Bill).

    The Bill makes amendments to the Biosecurity Act 2015 to enhance operation of Australia's biosecurity framework. The measures included in the Bill will:

    • Enhance information gathering powers to assist in the management of biosecurity risk
    • Make minor and technical amendments to improve administration of the Biosecurity Act 2015 by the Department of Agriculture and Water Resources and the Department of Health.
    • Provide an improved ability to amend legislated biosecurity import conditions in response to changing biosecurity risk.

    Consultation on the exposure draft commenced on 17th November 2017, and will close on 30 January 2018. The Australian Government encourages all interested stakeholders to read the exposure draft and participate in the consultation process. Register to have your say. 

     

    GST on Low Value Transactions Update

    July 1st, 2018 is the date that has been set for the commencement of the collection of GST on the imports of goods that fall under the "Low Value Transactions" (LVT) umbrella.

    There has been much discussion as well as reviews by the Productivity Commission (PC) upon referral by the Government, to which the results of the recent review to assess the most appropriate collection model were handed down on 31 October and released to the public in November. 

    To keep industry informed of these developments Mr Andrew Hudson, Rigby Cooke Lawyers recently published an article, "GST collection model for low value transactions passes test" in which he has made reference to the highlights of the report and provided appropriate commentary.

    Importers of goods of low value or whom deal in the e-Commerce market should review this article and further ensure they are aware of the changes that are occurring mid-2018.


Ocean Market Trends and Updates

  • Container space issues from Asia are expected to continue until after Chinese New Year in early February 2018.
  • Delays to transhipment services from Europe via Singapore and Port Kelang.
  • DP World FCL Container Infrastructure surcharge increases.
  • Asia to Australia

    The space situation from Asia is still very tight. This situation is not expected to improve until after Chinese New Year in early February 2018.

    More blank sailings have been announced.

    Early booking are recommended for all origins, this space situation is not expected to improve for at least the next 3-4 months.

    We recommend that all customers discuss their space requirements with your DHL Global Forwarding customer service representative at least 2-3 weeks prior to the intended sailing date otherwise space / equipment cannot be guaranteed and delays may occur.

    Please take note that shipping lines will also try to optimize their profitability and will therefor always priorities higher paying freight. If a container must move, we recommend that customers accept the higher fee’s in order to avoid delays.

    Europe to Australia

    Transhipment services from Europe via Singapore and Port Kelang have also been impacted.

    We recommend that all customers discuss their space requirements with your DHL Global Forwarding customer service representative at least 2-3 weeks prior to the intended sailing date otherwise space / equipment cannot be guaranteed and delays may occur.

    Australian Port Charges 

    We have been advised that Australian Port Charges are expected to increase for all carriers. The increases and effective dates will vary from carrier to carrier. 

    DP World FCL Container Infrastructure Surcharge Increases

    Less than six month after massive increases in Infrastructure surcharges levied by DP World Australia the stevedore has announced further hefty surcharge increases in Melbourne, Sydney and Brisbane from 1 January 2018.

    DHL Global Forwarding has no choice but to pass on this charge on if and when the operator has applied the levy.

    We appreciate your understanding.


Ocean Freight - Online Sailing Schedules

For the latest Import Sailing Schedule or Export LCL Sailing schedule see the following links

Import FCL Sailing Schedule link

Europe Asia North America

Export LCL Sailing Schedule link

Melbourne / Sydney / Adelaide
Brisbane / Fremantle


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