Category Archives: Delays

Heavy rain and thunderstorms in recent weeks have caused havoc across China, with floods along major rivers destroying bridges, blocking roads and railways and forcing thousands of residents to evacuate. As a result, waiting times in impacted ports, including Shanghai and Ningbo, have increased considerably.

Adverse weather in India and USA is affecting freight movements.
Mumbai and other cities in the west coast of India have been experiencing heavy rainfall for the last week. Since this morning, rain has intensified and caused flooding in most parts of Mumbai. The regional meteorological department is predicting the heavy rains and flooding to continue to worsen over the next few days.

Centreport

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 rail) 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.

Brisbane Terminal expected to be fully operational this afternoon

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

As 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.

As we work through some of the new processes associated with ChAFTA we are experiencing a spate of late Certificates of Origin.  Our focus is always on avoiding delays at customs and not receiving these certificates in a timely manner has knock-on effects for our clients that include avoidable delays to customs clearance and in some instances paying duty unnecessarily and incurring professional services fees for refund processing once the certificate is received.

We are doing everything in our control to minimise or avoid delays completely and we would like to alert you to some steps you can take to facilitate the receipt of the Certificate of Origin in a timely manner.

1). Remind your supplier not to delay applying for the Certificate of Origin on the basis of unknown means of transport or routing;
2) Changes to vessel or flight details will not affect the eligibility of the consignment to obtain reduced duty rates provided the goods are still destined for direct shipment to Australia;
3). Advise your supplier to forward the certificate ASAP. There is no need to forward the original certificate as copies are acceptable.

A couple of refresher points that will also help with avoiding customs delays by ensuring certificates are issued as quickly as possible and are valid for use:

• Ensure that only authorised bodies are used to issue the certificates. The only two authorised bodies are the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), and The China Council for the Promotion of International Trade
• Certificate’s must be completed in English
• Certificates can include multiple goods but must not exceed 20 individual classifications
• Can only be used for a single shipment of goods
• They are valid for one year
• Ensure that the invoice number(s) and the marks and numbers listed on the Certificate of Origin match the documentation used for customs clearance.

Origin criteria

The origin criterion listed on the certificate indicates how the goods listed on the certificate comply with the regulations of the ChAFTA.  The criteria indicate how much of the raw materials or manufactured goods was obtained or manufactured within Australia and or China.  Some goods will be ineligible to use some origin criterion due to their nature, for example manufactured goods would be unlikely to qualify for reduced duty rates under ChAFTA via the Wholly Obtained criterion as this is intended for use for raw materials such as minerals.

Whereas, manufactured goods which are entirely produced from components made within Australia or China or a combination of both would more than likely qualify via the Wholly Produced (WP) criterion; and manufactured goods that are made in China from components made within Australia and or China and other countries would more than likely qualify via the Product Specific Rule (PSR).

• WO (Wholly Obtained) – for goods such as minerals, agricultural products and animals born in China. Would not apply to products that are further manufactured.
• WP (Wholly Produced) – for goods that are produced entirely from Australian or Chinese originating materials.
• PSR (Product Specific Rules) – for goods produced from Australian and/or Chinese goods and goods that have been manufactured in other countries and satisfy the applicable product specific rules relating to the classification of the good to be exported.

Should you need clarification on this or another freight movement or customs clearance question please contact me via email or on 1300 651 888; or your usual Magellan Customer Service Rep.

Australia has one of the most stringent and highly regulated customs clearance and quarantine procedures anywhere.

While nobody enjoys getting one of their freight shipments sidelined by customs, it can also result in frustrating (and costly) delays, especially if the goods awaiting customs clearance are meant to be sold at retail. Not only that, but with the possibility of some rather steep penalties for non-compliance, it’s crucial to follow correct customs procedure at all costs to ensure no additional costs or charges on your cargo.

Because customs and quarantine clearance can be so complex, it’s important to have an experienced logistics company by your side. That’s why Magellan is proud to provide exacting and accurate advice for all things customs clearance advice to our customers in an effort to make companies run better by getting shipments through customs smoothly. We have a thorough understanding of quarantine regulations in Australia, making it easy to ensure that any and all goods you’re importing will be provided the proper clearances and your business has right the advice to quickly and efficiently clear customs, so you never face a slowdown.

It doesn’t matter if you’re moving a full container load or a partial one, if you’re using airfreight or seafreight, if you’re importing during the seasonal rush or consolidating a single shipment from multiple vendors: Magellan knows how to get it done for you, and how to do it in such a way that you won’t have to deal with red flags when it comes time to clear customs.  We will ensure your cargo is ready to be moved on to the next step in its lifecycle before you even realise it.

No one wants to be stuck twiddling their thumbs while their imported goods languish in depots, in storage that could be costing hundreds or even thousands of dollars per day. That’s why it’s crucial to ensure you get the best customs and quarantine advice you can, as it can easily derail the delivery process. There’s no reason for you know all the regulations letter and verse – let a logistics expert like Magellan handle the heavy lifting for you.

Contact Magellan on 1300 652 888 today to learn how we can ensure your next shipment arrives at your loading dock on time and under budget. Or download our handy e-Guide “How to avoid delays with Australian Customs”.

Sources:
https://www.magellanlogistics.com.au/specialties/
http://www.australia.gov.au/information-and-services/business-and-industry/trade-import-and-export/import-and-export
https://www.border.gov.au/Busi/Impo

A recent US Transport Security Administration (TSA) revaluation of the air cargo security arrangements Australia has in place for exports to the USA has found that they do not meet US requirements.  The TSA has advised that Australia will need to screen 100% of export cargo carried on passenger aircraft to the US at piece level, in order to meet US requirements.

At this stage there is only a very limited capacity in Australia to screen and inspect every piece of every shipment that is tendered to the airlines for uplift to the USA, prior to being loaded on board an aircraft.

Australian Government’s Office of Transport Security (OTS) is working to quickly implement a two part strategy in cooperation with industry to meet these requirements, including:

1)      Allowing approved industry participants to examine air cargo off airport and

2)      Establishing a Known Consignor scheme.

The implementation deadline to comply with the USA regulations is 31^st July 2015 – we do not expect that full industry wide arrangements to comply with the US regulations will be in place by that date.

What’s next?

We await advice from the Government OTS on its expectations of the Australian aircargo industry to address the issue of the available resources for screening of aircargo to USA.

As a consequence of the rushed application of these regulations, we foresee significant issues including:

• Delays and costs in the immediate & longer term
• Airline & airfreight terminals will be required to invest in new screening equipment and resourcing
• Significant cargo congestion will be experienced at most Australian airports, with corresponding delays in uplift of cargo
• At peak times there will be Airline cargo terminal space issues
• Earlier receival cut-off times will be implemented for freight acceptance at airline and airfreight terminals
• We expect that a new level of fees will be introduced to cover the costs associated with the application of these USA regulations
• Confusion & chaos….

The application of any interim and long term solution will have an impact on exporters moving their product to the USA via airfreight.

Magellan’s priority at this stage is to find the best “work around” solution to minimise the impact on our customer’s aircargo moving to the USA.

If you would like more information, please contact our office on 1300 651 888 (Aus) or (09) 974 4818 (NZ) or via email on info@maglog.com.au

Chinese May Day Holidays are one of the major holiday periods across China. Most businesses and Government agencies will close during the period 1^st May thru 3^rd May inclusive (excluding Hong Kong).

Magellan’s China offices will be either closed or on skeleton staff during this time.

Please note the following when planning shipments.

SHANGHAI

Holidays from 1^st May, returning  4^th May.

AIR Cut off 30^th April  (for both freight and documents).

SEA Cut off as follows:

ETD: 1^st May , Cut-off: 27^th April 18:00

ETD: 6^th May , Cut-off: 29^th April 18:00

Most other China offices will also be closed in line with Shanghai.

QINGDAO

Holidays from 1^st May, returning 4^th May.

AIR Cut off 30^th April  (for both freight and documents).

SEA no change,  schedules remain unchanged.

HONG KONG

Holidays 1^st May only.

AIR Cut off 30^th April (for both freight and documents).

SEA no change, schedules remain unchanged.

Should you need clarification, or options available for freight movement around this holiday period, please contact the Magellan Customer Service team on 1300 651 888 or info@maglog.com.au

The protracted West Coast US Ports dispute has now been resolved, U.S. Labour Secretary Perez announced Friday night, after the International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA) reached an agreement on a new five-year contract.

U.S. Labour Secretary Thomas Perez announced that the parties had reached an agreement on a new five-year contract, saying that container ports up and down the West Coast will resume working but did not know how long it will take to work off the backlog in container traffic that has severely disrupted the movement of both import and export cargo.

The agreement comes after 10 months of negotiations, slowdowns and congestion at West Coast ports that have resulted in dozens of ships sitting at anchor or circling off shore. Details of the agreement have not been released.

If you are have any questions relating to your U.S shipments, please contact our Customer Service or Customs teams on 1300 651 888.

Source: Monica Almeida, The New York Times

Cargo containers are banked up at Los Angeles and Long Beach Ports, and along the West Coast of the United States, due to a labour dispute between an association of the major shipowners of the West Coast and the union of longshoremen who unload those ships. The negotiations cover operations at 29 ports, including the largest in Southern California; Oakland in Northern California; and the Puget Sound. Collectively they bring in half the United States’ imported cargo.

The congestion is said to be the “worst-ever on record, according to one shipping analyst (Source: Jane Wells, CNBC)

Source: Tyler Durden, www.zerohedge.com

Source: Tyler Durden, www.zerohedge.com

The New York Times reports that “American retailers, the U.S. Chamber of Commerce and agricultural exporters said they have already lost hundreds of millions of dollars because of mounting port congestion, with spare parts and consumer products from Asia not arriving on time and exports like oranges and apples left to rot.”

There is grave concern that failure to reach an agreement between the disputing parties will lead to devastating consequences for the US retail industry, and logistical nightmares for American exporters, manufacturers and retailers dependant on an efficient supply chain, of which the effects are already being felt.

Out of concern for the economic consequences of further delay, President Obama has taken action and requested, Thomas E.Perez, the secretary of labor, to travel to California to “meet with the parties to urge them to resolve their dispute quickly at the bargaining table,” according to a statement issued by Eric Schultz, a White House spokesman. Mr. Perez will try to mediate a settlement between the two parties. (Source: Erik Eckholm, The New York Times)

Pending a resolution, exporters and importers into Australia and New Zealand, should expect delays for goods going in and coming out of the West Coast.

For more information relating to the labour dispute:

http://www.nytimes.com/2015/02/15/us/politics/obama-to-intervene-in-dispute-at-west-coast-ports.html?_r=0

http://www.cnbc.com/id/102384907#.

http://www.zerohedge.com/news/2015-02-12/catastrophic-shutdown-americas-supply-chain-begins-stunning-photos-west-coast-port-c

For more information relating to your import or export shipments, please contact our Customer Service or Customs teams on 1300 651 888.