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About: Steve Bradtke

Recent Posts by Steve Bradtke

Patrick – Port Infrastructure Surcharge – from 10 July 2017

Further to our advice in April of DP World’s introduction of a Port Infrastructure Surcharge, we have now received advice from Patrick of their intention to also apply a surcharge. Patrick is the other major container terminal operator in Australia.

Whilst the amount is not exactly the same as DP World applied, it is of a similar magnitude and will be applied on all containers (export and import) passing through their terminals in Melbourne, Sydney, Brisbane and Fremantle.

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DP World – Port Infrastructure Surcharge – Melb & Syd

Please note:  Implementation of this surcharge has been delayed by 2 weeks until 17 April, 2017.

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UPDATE: NZ Earthquake – impacts on freight movements

NZ EarthquakeCentreport

After Sunday night’s NZ earthquake recovery efforts are underway at CentrePort, Wellington, but the port remains closed to most operations.  Ferry operations from CentrePort resumed on Monday night however, and the Seaview oil terminal reopened yesterday afternoon. Centreport commercial buildings, BNZ and Customs House have withstood the quake with little damage, however two other buildings – Statistics House and Shed 39 – are expected to need extensive damage inspections.

Rail

• KiwiRail said in a statement that the Kaiarahi and Kaitaki ferries sailing between Wellington and Picton would carry freight and vehicle passengers only. Foot traffic has been suspended due to terminal damage. KiwiRail chief executive Peter Reidy has said while there was still an enormous amount of work to do it was critical for the North Island network to be fixed quickly.

Christchurch

• Further south at Lyttelton Port of Christchurch, key infrastructure has been inspected and both bulk and container services, as well as railway links, are back to normal.

Nelson

• Port Nelson incurred no serious damage and open for business as usual.
Meanwhile bad weather has become a factor with heavy rain leading to extensive flooding in some areas. New Zealand Police have warned motorists to delay driving home from work as traffic out of Wellington is gridlocked and key roads are blocked in places.  New Zealand Shippers Council chairperson Mike Knowles said there were disruptions to the supply chain connecting the North and South Islands but government and agencies were doing their utmost to restore routes. “It tends to be the importers that will be greatly affected with a major barrier in place (no road or NZ earthquakerail) to get their goods to the lower South Island via land.”

Magellan Logistics has been navigating global supply chains for Australian businesses for almost 20 years. We have your back on this and any other customs or freight-forwarding topic.  If you would like to discuss your shipping which may be impacted by these events, please get in touch on 1300 651 888 or via steve@maglog.com.au.

TO ENSURE YOU DON’T MISS A FREIGHT FORWARDING OR CUSTOMS COMMUNICATION THAT MAY AFFECT YOU, PLEASE SUBSCRIBE HERE.


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Natural disasters wreak havoc for Australia and NZ shipping

Brisbane Terminal expected to be fully operational this afternoon

Storm Damage at Brisbane

DP, Patricks and Hutchison in Brisbane are working to working hard to identify all damaged and misaligned containers after a storm hit Fisherman Islands terminal on Sunday afternoon.  It is expected that the terminal will be fully operational by later this afternoon.

Once more modules have been inspected and are fully operational outstanding export receivals for the below vessels will hopefully be received earlier in the day today,

  • OOCL Le Havre 00078
  • ANL Waratah 1191 and
  • Nanchang 1619

 

 

Earthquake disrupts shipping and transport across New Zealand

nz-state-highway1aAs many of you will be aware, a major earthquake  has hit New Zealand causing severe damage in the top of the South Island and in Wellington.
All ferry crossings have been cancelled between North and South Islands and many roads have been closed impacting all deliveries. Therefore services from Auckland to Christchurch can expect delays and time frames are currently unknown as Ministry of Transport is now checking SH1 and the damage incurred.

Consequently, the demand to send freight by air is at maximum capacity and flights are also delayed. Therefore please be aware that there will be disruption to all services into the CBD in Christchurch and Wellington.

Our office in Auckland is expecting freight and we will endeavour to deliver as far as possible and to locations where it is safe for our teams to access and ensure all affected customers are kept informed.

The safety of operators and equipment is of critical importance and your patience and understanding is appreciated.

Magellan Logistics has been navigating global supply chains for Australian businesses for almost 20 years. We have your back on this and any other customs or freight-forwarding topic.  If you would like to discuss your shipping which may be impacted by these events, please get in touch on 1300 651 888 or via steve@maglog.com.au.

TO ENSURE YOU DON’T MISS A FREIGHT FORWARDING OR CUSTOMS COMMUNICATION THAT MAY AFFECT YOU, PLEASE SUBSCRIBE HERE.

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AMSA to commence SOLAS compliance activity in earnest

Wondering what has been happening since the implementation of the SOLAS provisions on 1 July this year? We understand that the Australian Maritime Safety Authority (AMSA) has not yet conducted major SOLAS compliance activity, consistent with MSC.1./Circ 1548.

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SOLAS compliance day is today

All Australian exports submitted at wharf terminals and depots now need to be compliant. Any non-compliance in these early days may still incur significant costs or delays.  See attached media release from AMSA or visit the website.

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Safety Of Life At Sea (SOLAS) – Verified Gross Mass (VGM) shipper’s declaration – Compliance date 1st July 2016.

Effective for vessels sailing on or after 1st July 2016 from most export ports globally, all containerised seafreight shipments submitted for export will need to have a Verified Weight Declaration (VGM) submitted by Shippers.

For Australian exports, Verified Gross Mass (VGM) compliance actually starts on 22nd June 2016, which is the opening of the wharf terminal window for receivals for vessels sailing on/after 1st July 2016.

This is an International Maritime Organisation (IMO) global regulation, that in Australia is covered under Federal Government legislation administered through the Australian Maritime Safety Authority (AMSA), it requires shippers of containerised seafreight cargo to make a lawful weight declaration.

Attached to this email is both an explanatory fact sheet from Shipping Australia Limited (SAL), and a Magellan presentation which gives a more detailed explanation of the new Shipper responsibilities. In these documents you will see references and an explanation to the only 2 methods which can be used to identify the “gross mass” of a container, or its contents. Should you need further information, clarification or advice on utilising either of these methods, please feel free to contact myself, or any member of our Export Team.

We have also updated our Shipper’s Letter of Instruction (SLI) to include a Verified Gross Mass Shipper’s declaration. For FCLs, a separate declaration is required for each packed container. Any shipments departing on or after 1st July 2016 will need to have the shipment details submitted via this updated SLI.

The SLI and VGM weight declaration must be submitted to us prior to any FCL or LCL cargo being received at the wharf terminal and/or depot. Please note the process for us to receive that declaration from the shipper, then retransmit it in the prescribed manner to the parties receiving the cargo at the terminal/depot can take at least 2 hours during normal working hours (Monday to Friday).

FCL Cargo:

For FCL the document that needs to be submitted to the wharf terminals is the PRA, which cannot be completed or transmitted without the compliant weight declaration. No containers will be accepted at any of the wharf terminals in any Australian port without a PRA having been submitted and accepted prior to any container arriving at the terminal gate.

LCL Cargo:

For LCL cargo, there is an allowance at some receiving depots to weigh the shipment upon arrival in the depot, however this is not the case for all depots, and does come at a significant cost.

Should method 1 be used by a Shipper to declare the weight, we need to make sure that adequate time is allowed for the container to go via a compliant weighing facility.

As the verified gross mass is now a lawful declaration of weight, estimations of weight are not permitted.

  • We can receive the Verified Gross Mass (VGM) Shipper’s declaration via any of the following means;
  • Original signed document via post/courier
  • Scanned signed document via email (PDF format).
  • Faxed signed document.
  • Transmitted XLS document, where the name of the person declaring the weight, is the same as the email address that the SLI/VGM is submitted to us on.

Should you need to discuss this process, get clarification on this new responsibility as a shipper, or just need advice on the options for getting your cargo weighed, please do not hesitate to give meor any of our Export Team a call on 1300 651 888.

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Reminder: SOLAS compliance deadline

The date for Safety Of Life At Sea / SOLAS compliance to the new global regulations is drawing near – 1 July 2016.

At that time, all shippers who tender seafreight cargo for export from just about any port in the world, will need to make a prescribed declaration of the weight of the shipment, prior to any containers being received at wharf terminals.

The International Maritime Organisation (IMO) has mandated these new regulations, which become law on 1 July in 171 countries around the world – most of the countries that Australia trades with are signatories to this treaty.

The new regulations effective 1 July 2016 state the following…

The SOLAS compliance regulations prescribe two methods by which the shipper may obtain the verified gross mass of a packed container:

  1. The shipper may weigh the packed and sealed container using calibrated and certified equipment.
  2. The shipper may add the weight of each package stuffed in the container, add the packing and securing material and add the tare weight of the utilized container. The method itself needs to be certified and approved by a national regulatory body in the country of export.

An estimation of weight is not permitted.

This responsibility sits clearly with the Shipper of the goods under the regulations, not with any other party (ie. Packer, Freight Forwarder, Shipping Line etc).

What do you need to do as an importer:

  • Raise the issue with your suppliers and get confidence that they and their vendors are familiar with the new responsibilities on them as the Shipper of goods
  • Understand the Supplier’s supply points and if products come from external vendors, get comfort that the external vendors are familiar with their responsibilities
  • Ensure your suppliers are conforming with either methods 1 or 2 in the supply of a verified gross mass declaration, compliant to the applicable regulations in their country.

Whilst the compliance is a Shipper obligation, it becomes an Importer’s issue if any Shippers fail to comply on or after 1 July 2016.  Non-compliance to regulations at the point of export will most probably cause shipping lines to refuse receival of containers for shipment. It is an offence under SOLAS regulations for ocean carriers to load or carry any non-compliant shipments.

We have drafted a letter template that can be used to bring the issue of compliance to your shippers attention. Also, we have prepared a slidepack which further details the new requirements.

Please feel free to contact a Magellan Customer Service Representative should you need further information or clarification on these new regulations.

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Bangladesh air cargo prohibition – new arrangements

The following advice regarding the Bangladesh air cargo prohibition has been received from the Air Cargo Security Taskforce, Office of Transport Security.

The Australian Government has modified the restrictions (originally introduced in December 2015) placed on air cargo originating from or transiting through Bangladesh.

Under the new arrangements air cargo that has originated from, or transited through, Bangladesh will be prohibited; unless it has undergone an appropriate security examination at an approved last port of call before travelling to Australia or is otherwise exempt from examination under Australian regulations.
• The approved examination methods are: X-ray; explosive trace detection; or physical examination.
• The approved last ports of call are: Dubai; Abu Dhabi; Doha; Singapore; Kuala Lumpur; Bangkok; Hong Kong; or Guangzhou.
• The exempt items are: mail items under 500 grams; cargo under 250 grams and shorter than 5 mm; live animals; human remains; biological tissues; legitimately prepared dangerous goods; Commonwealth Government articles; and diplomatic bags.

The new arrangements will take effect from 11 May 2016.

Failure to comply with the instruments
Non-compliance with the instrument (or restrictions set out in the instruments) is an offence of strict liability under the Aviation Transport Security Act 2004.

Review of the prohibition
The Australian Government, through the Office of Transport Security, will continue to monitor aviation security developments, in cooperation with our international partners. OTS will provide advice to the Government on adjustments to our air cargo security measures as necessary.

Should you need further clarification on this prohibition, or to arrange alternative movement of goods from Bangladesh to Australia, please do not hesitate to contact your Magellan Representative on 1300 651 888.

Links: https://infrastructure.gov.au/security/air-cargo/

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INCOTERMS – exactly what are they?

Incoterms or International Commercial Terms are a series of pre-defined commercial terms published by and is a registered trademark of the International Chamber of Commerce (ICC) widely used in international commercial transactions.

Incoterms are a series of three-letter acronyms related to common sales practices, and are intended primarily to clearly communicate the tasks, costs and risks associated with the transportation and delivery of goods. The Incoterms rules are accepted by governments, legal authorities and practitioners worldwide for the interpretation of most commonly used terms in international trade. They are intended to reduce or remove altogether uncertainties arising from different interpretations of the rules in different countries.

They’re used to make sure both the buyer and the seller are clear about:

  • Who will arrange for the carriage?
  • Who is responsible for the cost of transporting the goods, including insurance, taxes and duties?
  • Who is responsible for the goods at each step during transportation?
  • Who will bear the risk for loss and damage of goods?
  • To and from where the goods should be picked up and transported?

By agreeing to use an Incoterms rule, the buyer and seller achieve precision and clarity in defining their obligations and responsibilities.  The rules do not attempt to cover all aspects of the commercial agreement – there are important matters such as transfer of title and how the goods are to be paid for, on which the Incoterms rules are silent.

The rules can be usefully arranged into four groups:

  • Buyer responsible for all carriage – EXW
  • Buyer arranges main carriage – FAS, FOB, FCA
  • Seller arranges main carriage, risk passes after main carriage – DAT, DAP, DDP
  • Seller arranges main carriage, but risk passes before main carriage – CFR, CIF, CPT, CIP

First published in 1936, the rules have been periodically updated. The sixth and most recent version – Incoterms 2010  was published in 2011.

Magellan has produced a handy summary of the Incoterms for you to download and print for future reference.  All the current terms are described in this summary, however, EXW, FOB, CIF and CIP are the most frequently used in Australian exports.  More detail on this information and how to apply it is available in published volumes, available online from the ICCA bookshop.

If you would like more detailed information on which term is most applicable for you or have a general freight forwarding or customs clearance inquiry, please get in touch with Magellan on 1300 651 888, or visit us at www.magellanlogistics.com.au

Sources:
www.incotermsexplained.com/
http://www.iccwbo.org/

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