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Magellan Logistics is on the move

After almost 10 years in the MIAC Centre Magellan is delighted to be making the move to brand new premises.  And we don’t have to travel far; just across the road (Tullamarine Freeway).

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Chinese New Year 2017 – Plan Ahead

Happy New Year and of course, Happy Chinese New Year. China’s most important festival, also known as Spring Festival will be here before you know it. Most businesses in China and Hong Kong (as well as many other Asian nations) close for a week and sometimes longer in order for staff to travel to be with their families for the celebrations. This can cause delays in obtaining Customs Clearance documentation for Australian businesses importing cargo from China and elsewhere in the region.

The official date for celebration is January 28th 2017, however factories and freight forwarders will begin their vacation from January 27th until February 2nd. However, many factories do close earlier so it’s best to confirm with your individual suppliers.

The following vessels from China are due to call Australia over the period from 26th of January until the 3rd of February

Aglaia
ANL Wahroonga
ANL Wyong
Argos
CSCL New York
Xin Yan Tian
Irenes Warwick
Ital Libera
MOL Prestige
Northern Precision
OOCL Shanghai
SC Mara
Sea Pearl
Xin Yan Tian
YM Singapore

Our Chinese Agent offices will be closed on the following dates

• Hong Kong Offices Closed January 28th to 31st returning February 1st
• China Offices Closed January 27th to February 2nd returning February 3rd
In order to avoid any delays receiving documentation over this period please ensure that your supplier provides all documentation including any applicable original bill of ladings, fumigation certificates and packing declarations.
Delays in receiving documentation can result in significant storage and demurrage costs.

If you have any queries or would like more information, please call your Magellan Customer Service team member on 1300 651 888.

Fun Facts:

• 2017 is the Year of The Fire Rooster
• Active, amusing and popular within a crowd are just some of the traits associated with Rooster.
• If you are born in the Year of the Rooster, you are a hard worker and courageous, you like attention in public and you are very strong-willed
• 2017 will be a good year for romance.
• The Year of the Rooster would be a good year financially especially for restaurant owners, hairdressers and journalists
• Celebrities Britney Spears, Elton John, Matt Damon and Roger Federer were born in the year of the rooster.
• Years of the Rooster include 1969, 1981, 1993, 2005, 2017 and 2029.

 

Sources:
Brisbane Courier Mail

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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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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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ChAFTA Update – latest news

After much speculation, we have received confirmation originating from the office of The Hon Andrew Robb AO MP – Minister for Trade and Investment, that final notes were being exchanged yesterday (9 December 2015) and ChAFTA is set to enter into force on 20 December 2015.

A couple of key points to note include:

Certificates of Origin

The following Chinese Authorities will be the only powers able to issue Certificates of Origin [COO]:

– AQSIQ (General Administration of Quality Supervision, Inspection and Quarantine)

– CCPIT (China Council for the Promotion of International Trade: (China Council for the Promotion of International Trade).

Please note: COOs will not be issued prior to the commencement date of CHAFTA.

Duty free or 5%?

For further information regarding the change in duty rates and confirmation of whether your duty rates will or will not change on this date please feel free to call on 1300 651 888 or email me daniel@maglog.com.au

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TRANS PACIFIC PARTNERSHIP – IN A NUTSHELL

This week negotiators in the US announced, after eight years of negotiations, an historic agreement had been reached as to the terms of the Trans Pacific Partnership.

WHAT IS IT?

The TPP is a web of agreements between the involved countries designed to boost trade and economic growth.  It spans everything from jeans to lobsters to intellectual property.The TPP is designed to create major changes in the economies of the 12 signatories and will be the world’s largest FTA covering 40% of global GDP.

WHO IS INVOLVED?

The final agreement was signed by Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States and Vietnam. The countries involved make up 40 per cent of the world economy.

The agreement began as almost casual negotiations between New Zealand, Brunei, Singapore and Chile but rapidly expanded.

While one of the Australia’s largest trading partners, China, is not involved in the deal, several other countries have indicated they are hoping to be covered in the new system of trade rules.  These include South Korea, the Philippines, Taiwan and Colombia.

KEY OUTCOMES

The TPP addresses a variety of trade topics including trade in goods, services, investment, Government procurement, intellectual property, environmental laws, labour laws and intellectual property.  The details of the trade outcomes are yet to be released.  However, the following is significant for Australian trade:

  • This will be Australia’s first significant FTA with Canada, Mexico and Peru (but this only represents less than 2% of Australia’s trade).
  • Agricultural access to the US and Japan is likely to be improved beyond our existing FTAs.
  • Country-of-Origin labelling will be based on TPP regional content. As such, goods can include content from multiple TPP partners and still qualify for preferential treatment.  This could be important for goods of US or Japanese origin that undergo some further process (such as repacking) in Singapore or Malaysia.  Certificate of origin details are yet to be released.  However, it is unlikely formal certificates of origin will be required.  Both the US and NZ do not traditionally require such documents and other TPP countries have shown a preference for self-certification.
  • The TPP is drafted in a way to allow inclusion of other countries in the future. It is not unrealistic to foresee a future where the TPP will be the primary trade agreement governing Asia Pacific trade.
  • In recent presentations, DFAT suggested that change in tariff classification will be the primary rule of origin for goods that are not wholly originating. It also includes timelines to cut tariffs and financial levies on all goods, but it is unlikely to include the complete abolition of many tariffs.
  • The TPP also provides for a range of agreements to make cross-border investing easier and therefore more frequent by reducing regulatory hurdles.
  • The agreement includes commitments to help small- and medium-sized businesses understand the agreement, take advantage of its opportunities, and bring their unique challenges to the attention of the TPP governments.
  • A chapter entitled “Trade Remedies” includes a series of agreements designed to clarify key details in exporting and importing a wide range of products.

 

NEXT STEPS

Usually it takes 9-12 months from the conclusion of negotiations to the implementation of an FTA.  However, each country will need to pass and ratify associated legislation for the partnership to begin.  Given this includes the US parliamentary process in an election year; we expect 2017 is a more realistic commencement date.

With the implementation time-frame uncertain and few details on specific outcome, the best advice is for parties to stay informed and keep the TPP in mind when making long term strategic trade decisions.

If you have any questions you need any further information, please do not hesitate to contact Magellan on 1300 651 888 or via email info@maglog.com.au

Read the Prime Minister’s media release here

Sources: Hunt & Hunt , SMH.com.au

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Magellan / Transaction merge operations

It is with great pleasure that we can announce the merger between Magellan Logistics and Transaction Customs and Forwarding.  This merger further strengthens our position in NSW and service to our NSW clients and will have a significant impact on the overall size and scale of our operations.

Magellan was first established in 1997 and since then we have enjoyed strong growth both organically (due to our excellent customer service record) and via acquisition.  The growth and development of our staff has evolved similarly throughout and we continue to attract high-quality, committed professionals and invest in their training and development.  This is born out in our industry recognition and awards.  In 2009 Magellan was awarded Freight Forwarder of the Year by Lloyds List and we were a Finalist in BRW Private Business Awards in 2010.

As with all important business decisions we will work closely with our clients, employees and partners to ensure the integration process runs smoothly.  From an internal and operational perspective, the merger will take effect for all import jobs arriving on or after Monday September 14th or any export jobs sailing on or after September 14th.

From our customers’ point of view, I want to emphasise that it will be business as usual for both Magellan and Transaction customers – no interruptions or changes to the usual high quality service you have come to expect.

If you have any questions or concerns about this merger and what it will mean for you, please do not hesitate to get in touch with your usual Magellan or Transaction contact or call 1300 651 888.

Con Xegas, Maria Voukelatos and Racheal Green will move from Mascot to the new office at Peakhurst.  Their mobile phone numbers will remain the same.  There are no changes to Adam Marsh’s contact details.

Unit 4, 45-47 Stanley Street

Peakhurst  NSW  2210 Australia

PO Box 441

Mortdale  NSW  2223  Australia

Telephone: +61 2 9153 6043

This is an exciting time for us and we are delighted to welcome Adam Marsh from Transaction Customs and Forwarding to our team.

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Changes to Aircargo imported into the USA

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 requirementsThe 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 31st 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

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Chinese May Day Holidays

Chinese May Day Holidays are one of the major holiday periods across China. Most businesses and Government agencies will close during the period 1st May thru 3rd 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 1st May, returning  4th May.

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

SEA Cut off as follows:

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

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

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

QINGDAO

Holidays from 1st May, returning 4th May.

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

SEA no change,  schedules remain unchanged.

HONG KONG

Holidays 1st May only.

AIR Cut off 30th 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

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Easter Holiday Period 2015 – Magellan Logistics

happy-easter-magellan-logistics

Please be advised of the below Public Holidays in Australia – for the Easter Holiday Period.

Friday 3rd of April 2015 and Monday 6th of April 2015.

As a result Magellan’s Offices will be closed on these days..

Our offices will resume normal work operations on Tuesday 7th of April 2015.

Please also note that China/Hong Kong will also celebrate Ching Ming Festival together with the Easter Holiday this year, therefore their offices will be closed as follows:

China

Saturday 4th April 2015 returning Tuesday 7th April 2015

Hong Kong

Friday 3rd April 2015 returning Wednesday 8th April 2015

The Magellan team warmly wish you and your families a Happy Easter.

For enquiries, contact our office on +61 3 8318 9600 or info@maglog.com.au

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