Category Archives: Freight

Peak Season: A frantic race for the finish line with a barrage of complications. Are you ready to do it all again or is there a better way?
Representing as much as 30% of annual sales for some retailers a successful Christmas trading period is essential to the survival of many Australian businesses. Planning ahead for Peak Season 2019 to get the most bang for your logistics buck will see you well placed to maximising your Christmas trading potential.

As the year rolls on the challenges and implications of the International Maritime Organization’s global sulphur reduction program – IMO 2020 are becoming more complex.  It is apparent that a timely explanation is needed.

How do you know if your Freight Forwarder is giving you the best possible service? There are a number of symptoms of freight & logistics stress. To get to the bottom of them you need only ask a few simple questions:

Getting the right deal is based on your point of view and the importance you place on your supply chain. It depends on the nature of your supply chain, what type of service you need and the focus and attention you place on supply chain optimisation.   In short, it depends on you.

The saying “you get what you pay for” has never been more relevant than in the current market conditions. The costs and business consequences of something going wrong can far outweigh a minor saving in rates.

It’s that time of year again – Peak Season and I thought I’d share some of the tips and strategies we use at Magellan to get through it.

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.

As fashion executives around the world reported in the first BoF- McKinsey Global Fashion Survey, the year 2016 can be summarised in three words: uncertain, changing, and challenging. But in spite of this, fashion remains one of the key value-creating industries for the world economy.

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.

In the late 1930s, Malcolm McLean, a North Carolina truck driver was becoming more and more frustrated by constantly having to load, unload, repackage and store his bales of cotton as they were transported from plantation to port.

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/