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Typhoons Affect Shipping from China and SE Asia

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.

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Adverse weather affecting freight in India & USA

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.

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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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G20 China dates announced – implications for Australian importers

Following the release of the summit dates the G20 control measures have also been announced for 2016.  This year’s summit will be held in Hangzhou on the 4th and 5th of September.  Hangzhou is within 2 hours drive of Ningbo and Shanghai ports. Based on previous experiences such as the 2014 APEC, 2010 Asian Games and 2008 Olympics, we expect similar control measures to be introduced which will have a significant impact on the export and import cargo flows, causing fluctuations before and during the event.

These controls will be implemented both by the National and Local Governments. We have been able to confirm the following, but we believe further restrictions are still to be announced and we also expect there will be a degree of “unannounced” restrictions that only become evident in the immediate lead up to the summit.

We strongly urge you to discuss these restrictions with your China suppliers to identify any impact it may have with the supply of product to your business during this time. Our suggestion is that wherever possible you take advantage of shipping early, well before any impact of restrictions, and definitely before the dates indicated below.

The following G20 control measures affecting production and traffic to meet air quality and security requirements have been announced:

Shanghai: 24th August – 6th September

  • Jinshan Zone will shut-down all chemical and associated factories
  • Chemical Zone and Fengxian Zone will identify factories that either need to control production or close-down
  • Shanghai Port will have the available port power reduced by 30%, Jinshan Port will have the port power reduced by 50%
  • All factories in the region will need to meet specific operating and pollution standards, those that do not meet the standards will be shut down
  • High polluting motor vehicles from Shanghai will not be allowed to enter Hangzhou
  • The main production and traffic restrictions will generally only be applied to the southern part of Shanghai, this will mitigate some of the effects of exports moving through Shanghai Port.

Ningbo Hangzhou Bay New Zone: 24th August – 6th September

Factories in Ningbo Hangzhou Bay New Zone will either be shut down, or forced to reduce productivity by 50%.

Shaoxing, Zhengjiang: 24th August – 6th September

  • All dye factories will be closed in the two weeks prior to 6th
  • Since March, the Shaoxing Government has been regulating all the high pollution printing factories, so far 64 factories have been shut down, and can only reopen once they meet the required pollution control standards.

Declared Holidays

Public holidays have also been declared from Thurs 1st–Wed 7th September in the below districts.

  • Hangzhou Economic Zone
  • West Lake Scenic Area
  • Shangcheng
  • Xiacheng
  • Jianggan
  • Gongshu
  • Xihu
  • Binjiang
  • Xiaoshan
  • Yuhang

Sun 28th August, Sat 10th Sept and Sun 11th Sept will be working days.

Magellan Logistics is working closely with our Chinese Agents to ensure we have the timeliest information about how this year’s G20 control measures will impact on shipping from China.  Please get in touch with me via lechae@maglog.com.au or your usual Magellan Customer Service Representative on 1300 651 888 or +64 9 974 4817 / 18 for New Zealand based enquiries.

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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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Top Tips for Painless Customs Clearance for Your Freight

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

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Tariff Concession Orders (TCOs) – a new approach

On 7 October 2015 the Australia Border Force (previously Australian Customs) released an exposure draft on the Interpretation of Tariff Concession Orders (TCOs).

It is the confirmed opinion of at least one recognised Australian barrier compliance lawyer that the draft is a significant departure from the methodology used to interpret TCOs for the past 40 years or more.

Essentially, an importer who takes advantage of any TCOs without having a Tariff Advice in place (which confirms whether the ABF agrees that a particular TCO refers to particular imported goods), runs the risk of incurring demands for the duty which would have been payable if a TCO had not been quoted on import declarations. The ABF can review for the past 4 years.

This period may be extended beyond 4 years if the TCO had been quoted to intentionally avoid the payment of duty and additional GST.

As a Freight Forwarder and Customs Brokerage, we are not in a position to predict the decision making processes of the Australia Border Force or consequences of their decisions. Therefore the onus for compliance on Declarations falls to the importer under the self-assessment regime which is currently in place.

We recommend that you review any Tariff Concessions that you currently use for your cargo.   Please do not hesitate to contact me via email or 1300 652 818 if you would like to discuss your options as you consider whether or not instruct Magellan to apply for Tariff Advices for goods you import using TCOs.

It is also important to note that while applications for Tariff Advices are not particularly time consuming, delays of up to 6 weeks can be experienced due to the ABF approval process.   This may delay the Customs Clearance process in turn.

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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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