Skip to Content

Blog Archives

Offshore warehousing, 3PL, sorting & labeling – direct into store

As we gear up for peak season in the freight forwarding and logistics business it seemed timely to revive a blog post from earlier in the year.

The traditional supply chain method of overseas supplier packaged and delivered product is evolving. The pace of change is rapid and importers need to adapt or suffer competitive pressures through loss of sales and local sorting and distribution costs.

Historically, Australian importers have maintained local distribution facilities, either in-house or 3PL, in order to deliver product domestically. In today’s environment this can be an expensive solution when compared to some of the options available off-shore.

There is an increasing trend of transferring labour intensive activities, such as Pick and Pack, to low cost countries closer to the supply source. For example, Magellan Logistics provides a Pick and Pack solution in Hong Kong and Shanghai, that shorten the supply chain and provides significant cost savings to our customers. All orders are processed at a SKU level and packed for ultimate store delivery. The goods are then shipped directly to the customers designated outlet or warehouse. This enables Magellan’s customer to eliminate double handling and freight cost duplication, as well as reducing the physical cost of distribution.

If your company is considering using an off-shore distribution solution you should research and examine the options and find out what is most feasible for you.

Magellan Logistics can assist you with this with expert advice and consultancy.

If you would like to discuss this further please contact our team on 1300 651 888 or info@maglog.com.au

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 →

Australia Korea FTA in effect 12 December 2014

Trade and Investment Minister Andrew Robb has announced that Australia’s Free Trade Agreement with South Korea will enter into force on 12 December 2014.

The Korea-Australia Free Trade Agreement (KAFTA) was signed in Seoul, South Korea, on 8 April 2014 and KAFTA will enter into force when both Korea and Australia have completed their domestic legal procedures.1

Below is an outline of top imports from Korea into Australia in 2012-2013.2  For Magellan customers, this agreement may also affect those importing textiles or other similar products from Korea.

There are a range of products that will have reduced duty rates under this agreement, and to get access to these lower rates, suppliers will have to provide importers a KAFTA certificate.

Four steps to using KAFTA

Step 1: WHAT goods am I exporting or importing? (tariff classification)

Step 2: HOW are these goods treated under KAFTA? (tariff treatment)

Step 3: WHERE are my goods produced? (rules of origin)

Step 4: CERTIFY your goods with a Certificate of Origin

For further information on what items will have reduced rates and the detail behind the KAFTA stepped process above please refer to this media release and/or speak to your friendly Magellan Logistics Customs Broker who can provide more detail on 1300 651 888.

To read more about Free Trade Agreements and how they help Australian exporters, read our recent blog

 

Sources:

1 Customs Brokers & Forwarders Council of Australia Inc. – CBFCA

.2 Department of Foreign Affairs and Trade http://www.dfat.gov.au/fta/kafta/

0 Continue Reading →

IMPORTANT NOTICE: Changes and Delays in Shipping from USA

usa-magellan-news

Thanksgiving update

Last Thursday 27th November was Thanksgiving in America which is usually followed by a holiday for many companies on the following Friday.

The traditional holiday began in the American colonies almost 400 years ago as a feast of thanks to celebrate the successful Autumn Harvest. Moving cargo is quite difficult at this time as many suppliers are closed until Monday December 1st. Bear in mind that some deliveries may be delayed to due this holiday break.

West Coast Delays

Currently the U.S West Coast Ports (Long Beach/Los Angeles) are suffering severe delays stemming from a shortage of trucking equipment, called Chassis. This problem alongside the outstanding labour negotiations were causing trucks standing in mile long queues as stacks of unmoved containers wait for pick up at the complex that handles 40% of U.S. containerised cargo. The Port of New York and New Jersey are also affected but not as severe.
We will continue to monitor the situation and keep you advised as a West Coast Port Congestion Surcharge is likely to be implemented.

Bunker Adjustment Factor (BAF) changes

Changes to Bunker Adjustment Factor (BAF) will be made ex US ports to Australia effective December 15, 2014. The change will be to cover the cost of lowering the cap on Sulphur Oxide emissions to 0.1%. This requires a switch to cleaner more expensive marine gas oil therefore the existing BAF will be decreased and a new Low Sulphur Fuel Surcharge will be applied as follows:

NEW BAF EFFECTIVE DECEMBER 15, 2014

SIZE TYPE LEVEL (USD)
20′ ALL TYPES $794.00
40′ ALL TYPES $1588.00
40’HC ALL TYPES $1588.00

NEWLY IMPLEMENTED LOW SULPHUR SURCHARGE EFFECTIVE DECEMBER 15, 2014

SIZE TYPE LEVEL (USD)
20′ ALL TYPES $47.00
40′ ALL TYPES $94.00
40’HC ALL TYPES $94.00

For more information please contact our customer service team on 1300 651 888.

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 →

Free Trade Agreements Help Australian Exporters

free-trade-agreement-magellan-logistics

When it comes to global trade opportunities for Australian exporters, free trade agreements (FTAs) play an important role. For any locally based business wishing to expand their international reach, they are a way of linking otherwise unconnected economies and establishing new markets for reciprocal exchange of goods and services, as well as investments.

Those in the business of international shipping from here in Australia have previously enjoyed seven different FTAs with countries across the globe, including New Zealand, Singapore, Thailand, US, Chile, the Association of South East Asian Nations (ASEAN) (with New Zealand) and Malaysia.

In addition to allowing trades of goods and services, FTAs also typically encompass a range of other trading potential, such as the exchange of intellectual property rights, government procurement and also competition policy.

All exporters in any industry that freights goods internationally can benefit from FTAs.  The fashion, textiles & footwear freight industry for example, under these established FTAs, make up around 26% of Australia’s total trade – a substantial figure and one that is now set to grow further. The addition of FTAs for Japan and Korea will be of interest to Australian garment manufacturers and local fashion exporters.

Japan and Korea Add New Export Market Opportunities

In April 2014, those in the Australian export business were pleased that Australia signed an FTA with Korea.

In other positive news for the local retail industry, in July 2014, Australia also signed an Economic Partnership Agreement (EPA) with Japan. An EPA is an economic arrangement – often described as a premium variation of a general free trade agreement – that opens up free movement of goods, services and investment between countries. It’s good news for anyone in the business of fashion freight shipments, whether as an importer, or exporter of garments and other goods – but also a positive step for any local retailer or manufacturer keen to tap into a wider international audience.

Then, there are economic partnerships, which are sometimes described as high standard variants of free trade agreements.

Using the fashion industry again for a quick snapshot, at the moment, Korea accounts for around 5% of Australia’s total trade, with Japan accounting for around 11%. With the increasing number of FTAs currently in negotiation to help Australian exporters access new markets and expand trade in existing markets, this is expected to increase.

If you’re an existing Magellan Logistics client, currently enjoying the export and import opportunities for your business, we’d encourage you to actively review your current marketing plans and shipment strategies to analyse whether these latest  FTAs will be of benefit for your business.

To find out how your business can benefit from these new Free Trade Agreements, speak to our trusted freight specialist team here at Magellan Logistics, for more information on 1300 651 888.

0 Continue Reading →

Duty Rate Reduction to 5% for Australian Garment Imports from Jan 1st 2015.

5-percentPositive news for Australian garment importers as legislation passes to reduce duty rate for goods shipments into Australia from January 1, 2015.

The result is a reduction in the general rate of customs duty applicable to a range of garments, homewares and other madeup textile articles, to 5% from January 1, 2015.

For local fashion importers, the news presents a tangible, practical way to reduce expenses and increase profits – a shot in the arm for the fashion retail industry.

 Plan end-of-year shipments & capitalise – ask Magellan Logistics

A little forward planning can be a profitable thing.

If your garment shipment arrives towards the end of December, 2014, you’ll slide in ahead of the potential savings. But ask our experienced team at Magellan Logistics to help and you can arrange to have your fashion freight shipment held for a few extra days so your business can benefit from the duty reduction on (and after) January 1, 2015. You will need, of course, to factor in demurrage and storage fees…BUT, with our Magellan Logistics’ staff on hand to help you crunch the numbers, together we’ll find the most cost-effective way to handle your garment imports.

It’s important to understand that, in your quest to reduce duty costs, you will not be alone. To ensure your business stays ahead of your competition, it will pay to plan for the potential backlog caused by other fashion importers who want to take advantage of post-January 1 deliveries.

Talk to Magellan Logistics today.

We’re here to help you find the garment freight solution that will help your business ship cost effectively.

Call 1300 351 888 or email info@maglog.com.au to further discuss the upcoming duty rate reduction.

0 Continue Reading →