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Specialist airfreight: One retailer’s experience

Speed to Market has become so important that the cost to deliver has become a secondary consideration in supply chain logistics and specialist airfreight is now a critical component to delivering Fast Fashion.  However, if you don’t have a partner with super-sized red tape scissors to help you cut through the complexities of Air, then you could be putting you behind your competition.

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Speed to Market: now more important than Cost

Fast food, fast internet, fast coffee … it seems everything needs to be delivered to us fast these days.  We’re moving into an age where everything is driven by speed, and the Rag trade is feeling the pressure to deliver ‘Fast Fashion’ more than ever. With tech-savvy Millennials and time-poor consumers searching for more convenient ways to get what they want, when they want it, Speed to Market (STM) has become so important that Cost has become a secondary consideration.

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Air Cargo Prohibition Notice

<< An investigation on behalf of several clients impacted by the Bangladesh air cargo prohibition has enabled us to develop a few alternative solutions that work.  Please get in touch with us on 1300651 888 if we can help you too. >>

AFIF has received the following advice from the Office of Transport Security division of the Department of Infrastructure & Regional Development:

The Australian Government has imposed restrictions on the carriage of air cargo that has originated from, or transited through, Syria, Egypt, Bangladesh, Yemen and Somalia. The restrictions will be implemented through legislative instruments made by the Hon Warren Truss MP, Deputy Prime Minister and Minister for Infrastructure and Regional Development, under Section 65B(2)(b) of the Aviation Transport Security Act 2004. The instruments will come into force on Saturday 19 December 2015, and will remain in-force until the instrument is revoked.

The air cargo prohibition will prohibit airlines from carrying any air cargo that has originated from, or transited through, Syria; Yemen; or Somalia.  These new restrictions supersede previous arrangements relating to the carriage of air cargo from Yemen and Somalia.

Air cargo that has originated from, or transited through, Egypt; or Bangladesh will be prohibited, except for items that are currently exempt from screening under the Aviation Transport Security Regulations 2005, such as diplomatic bags and smaller items of international mail. These restrictions apply equally to air cargo carried on passenger and freighter aircraft.

Aircraft operators will not be required to revise their Transport Security Programs (TSPs) to give effect to this instrument; however, are encouraged to consider the current measures in TSPs and be satisfied they are adequate to respond to any changes in the security environment.

Please note that the restrictions are a preventive security measure, based on the Government’s understanding of the threat and risk environment in these countries. There is no information to suggest that there is any specific threat for flights to or from Australia. The restrictions are commensurate with measures already imposed by some international airlines and like-minded regulators internationally.

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.

Permitted items – Bangladesh and Egypt only

The instrument allows airlines to uplift air cargo from Egypt; or Bangladesh that is currently exempt from screening under Australian regulations.

The permitted items are

The Government will allow the following items as part of a risk-based strategy that will ensure an appropriate security outcome.

  • Mail items under 500 grams.
  • Cargo under 250 grams and shorter than 5mm.
  • Live animals; human remains; biological tissues.
  • Legitimately prepared dangerous goods.
  • Commonwealth Government articles.
  • Diplomatic bags.

 

Please refer to the Government Prohibition Document.

Any enquiries related to the restrictions should be directed to aircargosecurity@infrastructure.gov.au.  Otherwise, you can get in touch with me at Magellan on 1300 651 888 or via email.

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Magellan Logistics featured in Ragtrader Magazine, September 2014

Read the latest power brokers article where our sales director, Joe Carbone, shares his knowledge and experience on the supply chain.

Let us know your feedback in the comments.

(Hit CTRL + to zoom in)

ragtrader-sept-2014-magellan-logistics-joe-carbone ragtrader-sept-2014-magellan-logistics-joe-carbone ragtrader-sept-2014-magellan-logistics-joe-carbone ragtrader-sept-2014-magellan-logistics-joe-carbone

 

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Customs charges increase, effective 1st Jan 2014

 

The Budget papers released in May, 2013 stated that the Government will restructure the Import Processing Charge (IPC) to recover the costs of import related cargo and trade functions undertaken by the Australian Customs and Border Protection Service (ACBP).

This Import Processing Charges Amendment Bill has now been passed through both Houses of Parliament without amendment.

On Magellan invoices IPC this shows up as “Declaration Processing Charge”. On a Customs Declaration/Entry, IPC forms part of the customs “other charges”, seen at the bottom of every electronic entry – Please note that the AQIS container and processing charges which also make up part of the other charges, will not change at this stage.

The Bill will increase the import declaration and warehouse declaration processing charges levied on air, sea and post consignments with a value of $10,000 and above effective from 1 January 2014.

For jobs valued over $10,000, please see the guide below for increase values.

FCL Other charges – Currently $88 will increase to $190.60

LCL Other Charges– Currently $70 will increase to $172.60

Airfreight Other Charges– Currently $55.20 will increase to $137.10

For consignments valued from $1,000 to $10,000 the customs “other charges” will remain at the current level of $88.70 for sea import declarations and $55.20 for air import declarations.

Clients should note these increases will become effective on 1 January 2014.

If you have any queries please feel free to contact Daniel Crawford – Daniel@maglog.com.au

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