DHL GLOBAL FORWARDING AUSTRALIA - LATEST INDUSTRY NEWS
We believe that Trade Compliance should continue to be one of your key focus areas in 2018, as good management in this area can greatly improve your import and export processing. This could be in the form of registering to be an Australian Trusted Trader (with further benefits outlined in this update) or ensuring that you address the areas of closest attention as outlined by Australian Border Force in their recent statement.
To help you understand further details we are holding the Trade Compliance briefings through-out the country in March and we will share a summary of the contents at the conclusion. Please contact your Sales contact or reply to this email to find out further details.
Thank you for your ongoing support and feedback.
Head of Sales and Marketing Australia
Chain of Responsibility
With 60% of the freight network being moved by owner operators in Australia, it becomes clearer on the importance of sharing responsibility across all parties in the supply chain.
The Road Transport Industry in Australia is relatively unique when compared to other OECD countries (e.g. New Zealand, UK, USA). In a country where the road transport task has to cover vast distances our industry is predominately made up of operators who have 4 trucks or less (70% of operators have one truck and a further 24% less than 4 trucks (source NTI)). Furthermore, it is estimated owner-operators provide vehicles for approxiamately 60% of the national freight task.
In Australia transport operators are not required to be licenced. Australia has very few pre-requisites to being a owner-operator or operating a transport business. In real terms if you have the appropriate licence and the finance to purchase a vehicle your in business.
In this environment, and with the absence of a licensing requirement, Australia has chosen to regulate the industry with the introduction of the concept of the Chain of Responsibility via the introduction of the Heavy Vehicle National Law. Heavy Vehicle National Law recognises the impact supply chain parties may have on heavy vehicle compliance and focuses on preventing breaches from occuring.
It cannot be denied fatalities and serious accidents have decreased since the intoduction of this legislation (source National Truck Accident Research Centre 2015 Report). Given other improvments that have occurred around the same period, it is difficult to quantify the improvement, other than to say it appears a correlation clearly exists between the decrease in serious accidents and fatalities and the introduction of this legislation.
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 undefined (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.
- Comprehensive Progressive Trans-Pacific Partnership Approved.
- Australian Trusted Trader to get mutual recognition with US Customs and Border Protection.
Comprehensive Progressive Trans-Pacific Partnership (CPTPP)
The Trans-Pacific Partnership (TPP) is a free trade agreement (FTA) which was entered into some time ago, but had never been formally implemented even though its entry into force had been approved by New Zealand and Australia. Finally approved by the 11 member nations (USA excluded themselves in 2017) at a meeting in Japan late in January 2018. Signing is reported to take place on 8 March, and implementation is expected later this year or early in 2019.
The text of the CPTPP was only released on the 21 February 2018, and is only 9 pages long. It can be found on the
Some of the highlights are:
- Improve our existing FTAs with countries who are also parties to the CPTPP.
- New trade deals for Australia with Canada and Mexico.
- Eliminate more than 98% of tariffs in the trade zone in agriculture, seafood, horticulture, wine and industrial products.
- New reductions in Japan’s tariffs on beef exported from Australia.
- New access for agricultural exports into Japan, Canada and Mexico.
The provisions for claims of origin are reasonably consistent with previous practices, with the benefit that there is no mandatory use of certificates of origin issued by 'approved authorities'. Hopefully this will allow for less complexity compared to ChAFTA.
The current scope of the CPTPP is only the beginning. There are other countries such as Korea which have expressed an interest in joining the CPTPP and the US is re-considering its position. Further membership can only increase the benefits.
Whilst the full impact of the changes and benefits are still to be known, DHL Global Forwarding will ensure that customers are kept up to date.
Discussions commence for Mutual Recognition Arrangement with the US Customs and Border Protection
The Australian Border Force signed a work plan on the 19 February 2018, to help progress a new Mutual Recognition Arrangement with the US Customs and Border Protection. The benefits will flow to Australian Trusted Traders, especially in supply chain security.
If you’re a business trading with the US, become an Australian Trusted Trader as the future benefits will only become available to those in the scheme.
- Improve our existing FTAs with countries who are also parties to the CPTPP.
Ocean Market Trends and Updates
- Container space availability on vessels to Australia continues to be in short supply and is expected to remain so until the end of March.
- Hapag Lloyd announces a General Rate Increases from North China.
- Hapag Lloyd - BAF increase from United States / Canada.
- Australia Port Infrastructure fees increases.
- Direct Empty Container Dehire to Wharf - Expected cost increases.
Asia to Australia
The space situation from Asia is still very tight the situation is not expected to improve until the end of March.
During January to March 2018, 7 blank sailings have been announced for vessels from Asia to Australia. That equates to around 23,000 TEU less capacity.
More blank sailings have been announced for the first quarter of 2018.
Early booking are recommended for all origins, this space situation is not expected to improve for at least the next 3-4 months.
During this period shipping lines will also try to optimize their profitability and will therefor always prioritise higher paying freight. If a container is urgent and must meet a transit time a higher rate will need to be accepted to ensure priority is received.
North Asia to Australia - Hapag Lloyd has advised of a GRI (General Rate Increase) of USD 300 per TEU, effective from 1 April 2018. Other carriers are expected to follow this announcement.
Important to note that these GRI and PSS (Peak Season Surcharge) announcements are the official statements by the shipping lines. Amounts and start dates might vary from shipping line to shipping line.
Europe to Australia
Transhipment services from Europe via Singapore and Port Kelang has 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.
United States / Canada to Australia / New Zealand / Pacific Islands
Hapag Lloyd have advised of an Increase to their Bunker Adjustment Factor (BAF) and a decrease to their Low Sulphur Fee (LSF), effective 1 April 2018.
Effective 1 April 2018 the charges will be as follows:
- Bunker Adjustment Factor (BAF): USD 595 per TEU.
- Low Sulphur Fuel Charge (LSF): USD 15 per TEU.
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.
Australia Port Infrastructure fees
Following the DP World announcement regarding increasing their Infrastructure Surcharge, effective 1 January 2018, Patrick have also announced an increase to their Infrastructure Surcharge, effective 12 March 2018.
Direct Empty Container Dehire to Wharf - Expected Cost Increases
There is an increasing reliance on shipping lines to mark delivery orders for dehire returned containers into stevedore terminals, rather than the designated Empty Container Parks (ECPs). This change from ECP’s to stevedores for the return of empty containers has a negative impact on operations and cost due to the following:
- Slot availability to coincide with drop off is not always available.
- Containers need to be double handled by the transport company due to slot availability.
- Longer truck turn arounds times.
- Stevedores will charge no shows and penalties for missed or late dehires whereas ECP’s do not charge such fees.
- Greater chance of container detention charges being levied by shipping lines for late returns.
As a result transport companies will start implementing additional charges for the return of empty containers. The additional charges will depending on whether the empty containers are returned back to the wharf or if they can be handed back to the inland container yard.
Ocean Freight - Online Sailing Schedules
For the latest Import Sailing Schedule or Export LCL Sailing schedule see the following links
Import FCL Sailing Schedule
Export LCL Sailing Schedule link
DHL Global Forwarding is committed to continuous improvement.
Improving your experience with DHL Global Forwarding is important to us. We want to create an amazing experience for you and your customers. Listening to your feedback helps us to ensure we are creating products and services that actually meet your needs and exceed your expectations.
By clicking the Thumbs Up or Down link on any of our emails gives you a direct line of communication to the Head of Customer Service. You can use this hyperlink to provide feedback on your experience with us, what’s working well or how we can improve your satisfaction with DHL Global Forwarding.
Your Opinion Matters.