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Henning Harders February Newsletter

Landside Logistics

DP World /MUA Industrial Action
A collective sigh of relief was felt in early February when DP World and the Maritime Union of Australia reached an in-principle agreement on the clauses for a new four year Enterprise Agreement. 

Given the extended duration of this negotiation, it is important to both parties that this four year agreement is achieved. This allows enough time for wounds to heal on both sides before new EA’s are negotiated. 

Let’s hope that when it comes time for the MUA to start talks with the other terminals, cool heads prevail and agreements are completed with minimal disruption to importers, exporters and industry.

It is expected that it will take some months before vessel schedules and the backlog of containers will recover to some sort of normality.

Patrick Terminal – Changes to Landside Charges
Patrick Terminal has announced its intention to increase Landside and Ancillary charges at its four container terminals around the country. This 30-day notice announces from the 4th March an increase to the following charges:
Infrastructure Fees – Imports

  • Sydney +22.5%
  • Melbourne + 20%
  • Brisbane + 25%
  • Fremantle +41.60%  

Infrastructure Fees – Exports

  • Sydney +7.53%
  • Melbourne +7.50%%
  • Brisbane + 7.50%
  • Fremantle +41.60%  

Vehicle Booking Fees will also rise approximately 7.50% from current levels, nationally.

These increases will be reflected in the transport costs handed down through each terminal.

If you have any questions, please contact your Harders Key Account Manager.

Air Freight Update

Demand is expected to rise around 3.4% in 2024, with a potential to boost E-commerce up by 4.5%. 

Capacity constraints from Asia Pacific are anticipated to persist until mid-Feb’24 amid strong
E-commerce demand. 

Recent disruptions in the Red Sea are expected to affect air capacity and demand in the upcoming
months as well. Bangkok and Dubai airport facilities were at capacity amid CNY due to volume surge and
freighter cancellations.

Considering that the traditional airfreight peak season in November and December also came in stronger than expected, this all points to the conclusion that the cargo airfreight market is steadily improving from a volume perspective following a tough landing after the pandemic.

We have weekly consoles from USA, Europe, China, and South Africa into AU. Please contact our team of supply chain professionals who will continue to provide you with the most competitive options to support your supply chain needs.

Seafreight Market Update

The Chinese New Year celebrations, which culminate with the Lantern Festival on February 24th,
have ended. 

As a result, factories and people across Asia are returning to their normal duties and are ready to take
on the New Year of the Dragon. 

Earlier this month, the industry welcomed positive news, as DP World reached a four-year agreement in principle with the Maritime Union of Australia, which marked the end of industrial action.

Although the recent news is promising for supply chain functions and productivity at Australian terminals over the long term, we will still need to deal with the congestion and backlog that will take a few more weeks to clear.

The disruptions in the Red Sea are ongoing, and carriers are still diverting their vessels through the Cape of Good Hope to keep their crews safe. In 2023, the shipping industry was able to increase its capacity for the larger East to West trades which has helped with these diversions via the Cape. 

Although the longer journeys require more fuel, the industry has managed the situation well. As a result, the Oceania trade lanes are still operating on regular weekly schedules with a 17th vessel being added to the European to Oceania schedule. Despite the increased costs for the industry, via necessary contingency charges, the shipping industry has coped with the situation better than expected.

Sustainability has become a significant concern in the maritime industry as IMO2023 is now in progress. Henning Harders is committed to collaborating with all major carriers to discover the best BIOFUEL options that are cost-effective and offer sustainable solutions to meet our clients’ needs. 

As we approach Quarter Two, we can anticipate that delays and backlogs will ease as demand begins to slow down, marking the start of the traditional off-peak period, also known as the “slack season.” We encourage you to contact our team of professionals, who are ready to work with you and customise suitable sailing options to meet your supply chain requirements.

Our Truganina Contract Logistics / 3PL site is live!

Harders Contract Logistics Warehouse opening
Official opening of our brand-new 3PL warehouse in Melbourne, Truganina

Please reach out to us if you would like a quote for either short- or long-term warehouse solutions from a third-party logistics provider that really focuses on quality and customer service.

Our state-of-art 12,500 pallet capacity site can accommodate up to 1,200kg pallets, is HACCP Certified and has a S79 Bond license (storage of alcohol duty deferred).

Blue Yonder Dispatch is our Warehouse Management System of choice: a best-of-breed, world-leading warehouse management system with extensive functionality. We can offer different solutions depending on your business requirements, from rapid deployment with zero system-integrations all the way through to very detailed and complex processes, system integrations and self-service portal.

We look forward to an incredibly exciting future whereby we can now offer customers a tailor-made end-to-end logistics and supply chain solution: including freight forwarding, customs clearance, warehousing and outbound distribution.

Australia / New Zealand Food Standards Code –
New mandatory allergen labelling requirements

The Department of Agriculture, Fisheries and Forestry has issued Imported Food Notice IFN 01-24 detailing regulatory changes to mandatory allergen declarations on food labels effective from
25 February 2024.

The changes have been made to how allergens are declared on food labels to make it easier for consumers to identify allergens in food products.

All food that is manufactured or produced from 25 February 2024 onwards must meet the new requirements in Standard 1.2.3 of the Food Standards Code.

A two-year stock in trade period will follow to allow foods packaged and labelled before
25 February 2024 to continue to be sold.

Any food that is required to have a label must declare allergens for each ingredient, food additive or processing aid that is, or contains an allergen.

Food importers are strongly encouraged to read IFN 01-24, which includes a good example of the allergen labelling.

For further information please contact your Key Account Manager or Harders Advisory.

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