Skip to Content

Blog Archives

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.

0 Continue Reading →

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.

0 Continue Reading →

Supply & Demand – Influences that shape your supply chain solution

Supply & Demand:  In the Supply 101 section of the latest issue of RagTrader Jeff Kershaw and Joe Carbone advise on the importance of understanding both the drivers and impacters of supply chain decision making in the pursuit of a bespoke and efficient solution that achieves both business and brand goals while at the same time meeting customer needs.

0 Continue Reading →

Magellan Logistics lands in NZ

Magellan Logistics New Zealand Limited has officially opened it’s doors in Auckland, with Paul Knight appointed as Magellan’s New Zealand Manager.

Paul has over 30 years experience in the logistics and transportation industries in both New Zealand and internationally.

Paul’s experience covers a wide range of business development and sales management roles, having been exposed to most industries, including working with clients in the textiles, footwear and clothing markets, across both imports and exports.

His wealth of experience has positioned Paul to appreciate that freight forwarders do more than just move freight – they provide a service which impacts a client’s profits which is affected by timeliness of both response and delivery. Excellence in service has been the single most important factor in successfully looking after his clients.

We are very pleased to have Paul join the Magellan team and the positive and pro-active approach that he brings with him.

Magellan has recognised the opportunity within the New Zealand market to both broaden the current services to our existing Australian clients who ship from both Australian and overseas direct to New Zealand, as well as offering the same high service standards to New Zealand based businesses. Magellan envisions replicating the great success and growth experienced in Australia, in this new and exciting marketplace.

“The role will be challenging as well as satisfying and rewarding for all involved and especially clients looking for extraordinary service levels, in the freight forwarding industry”, Paul shares.

Our New Zealand office contact details:

Suite 5, Level 1, 75J Porana Road,
Wairau Valley, Auckland, NZ 0760

International Telephone:

+64 9 974 4818 or
+64 9 974 4817

International Facsimile:

+64 9 974 4819

Postal Address:

PO Box 316-024,
Wairau Valley Post Centre,
Wairau Valley, Auckland, NZ 0760

________

We extend a warm invitation for New Zealand specific enquiries. Please contact Paul directly at paul@maglog.co.nz  or in the office on +64 9 974 4818 or +64 9 974 4817, or via mobile on 021 497024.

Or alternatively, you can reach our customer service team in our Melbourne head office on info@maglog.com.au or 1300 651 888

We look forward to assisting our existing and future New Zealand based clients, and our Australian clients with their freight forwarding, customs clearance and 3PL needs into and out of New Zealand.

0 Continue Reading →

Prepare for import duty reductions now – effective 1st January 2015

5-percent-duty-rate-magellan-logistics

Further to our previous blog, this is a reminder that the duty reduction date is rapidly approaching us: 1st January 2015.

In essence, legislation was passed for a reduction to 5% in the general rate of Customs duty applicable to a range of  products, which in particular includes  garments, some home-wares and other made up textile articles that are imported into Australia from 1st January 2015.

If any goods that you import currently attracts a 10% rate of duty, that rate may now be reduced to 5%. Should you need clarification if your imported goods are subject to the duty reduction, please contact one of Magellan Logistics’ Customs Brokers on 1300 651 888.

If you have shipments planned to arrive towards the end of December 2014, and they are cleared before the 1st January 2015, then the current duty rate of 10% will apply.

Rather than delaying shipments until arrival after 1st January to gain benefit from the lower duty rates, we can assist by arranging to have your shipments held for a few extra days either in storage or “under bond”  (moved to a Customs approved warehouse/depot). The duty rate reduction will be applicable to any Customs declarations made on or after 1st January 2015, rather than on the date the shipment actually arrives in Australia.

Before making this commitment, we can assist in a costing exercise in weighing up the added storage, demurrage  & handling costs compared to the duty savings.

As this period will also impact over the traditional holiday close-downs for much of industry, storage is usually always at a premium across Australian ports. So if you intend to hold any of your shipments in storage for a short period to take advantage of the duty reductions, we suggest you let us know your plans as soon as possible, so we can make appropriate planning decisions in your best interests.

Please call 1300 351 888, email info@maglog.com.au, or contact one of our Customs Brokers or your Account Manager directly to further discuss the plans for this upcoming duty rate reduction.

0 Continue Reading →

Magellan launches Moving Stylish Fashion Fast Campaign

Check us OUT!

Magellan Logistics are thrilled to be included in the latest Ragtrader magazine August edition, alongside influential fashion powerhouses. We have been serving our fashion, textiles, retail and footwear clients for the past 17 years, and it’s feels great to share our brand with the rest of the fashion world.

Let us know what you think!ragtrader-magellan-august-edition-logisticsragtrader-magellan-august-edition-logistics

0 Continue Reading →

The Advantages Of Shipping FOB

AN EASY REFERENCE GUIDE ON SHIPPING FOB YOUR FASHION GOODS

When buying or selling garments or other goods across international boundaries, there are certain stringent terms of delivery that need to be adhered to for a successful importation. INCOTERMS are international trade terms which define all rules of engagement with regard to goods delivery to the intended destination or from the seller to the buyer.

INCOTERMS

are the widely used standards that guide international trade. When it comes to international shipping, FOB and CIF are the most commonly used agreements which determine the responsibility of both the buyer and the seller. At the same time, it defines the point where this responsibility passes to either party.

Difference between Shipping FOB and CIF

First, it’s imperative to understand the difference between FOB and CIF. As mentioned above, both are INCOTERM agreements.

FOB stands for “Free On Board”. Under an FOB agreement, the seller shoulders all transportation costs up to the port of shipment.  This includes all loading costs. On the other hand, the buyer is responsible for all marine freight, insurance, unloading costs right from the port of loading. Moreover, the buyer will meet all transportation costs from the destination port to his or her factory. It is important to note that all risk is transferred to the buyer when the goods are loaded on board at the port of shipment.

Under a CIF (Cost, Insurance, and Freight) agreement, the seller should provide minimum insurance for the goods in transit, pay for freight costs and is responsible for all costs of goods in transit up to the buyer’s preferred destination point.

Why should you consider shipping FOB for your garment and textile import?

Having explained the two agreement terms above, considering FOB to import your garments and textiles will give you an upper hand in minimizing overall import costs and increasing your convenience. More often than not, first time importers and people importing small quantities use CIF where convenience is guaranteed. You don’t have to deal with unfamiliar shipping and freight details. Notwithstanding the convenience factor, you may end up paying a fortune to import your textile, garments and other goods under this agreement.  This is because the seller will collaborate with his forwarder and is likely to mark up the costs charged by his forwarder to make a profit. As a buyer, you will have no control over the invoice.

Importing FOB Garments

When shipping FOB, you have total control over your freight costs. You have the benefit of hiring your own forwarder at an agreed freight rate, among other charges.  You will also be able to get exact and timely information from your forwarder, hence solving any service issues or hassles during transit. You will also enjoy transparency on shipping movements, as you have a local contact to provide shipping information, quoted costs for both freight and locals. On the other hand, if you ship CIF, you may not know who the local handling agent is and what their charges will be, which may bring with it inconvenience and additional costs in handling your shipment.

Ultimately, if you decide to ship with an FOB agreement, you will be in control of your shipment.  You will be in a position to choose a method of shipment, your own agents, organise for a convenient insurance policy and set your own transit time. With CIF, all the above-mentioned variables are controlled by the seller, which may disadvantage you.

Please download our INCOTERMS quick reference guide or refer to the Australian Customs and Border Protection Service Fact Sheet. 
(Note this fact sheet is a general guide only)

To request more information on shipping your goods FOB and how we can assist, contact Magellan on 1300 651 888 or email us at fashion@maglog.com.au with your enquiry.

0 Continue Reading →