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Henning Harders August Newsletter

Table of Contents

Brown Marmorated Stink Bug (BMSB) Season 2023-24

The 2023-24 BMSB season starts in just over three weeks.

All importers are reminded of the importance of ensuring treatments performed overseas are conducted in accordance with BMSB requirements and through an acceptable provider, particularly for break bulk cargo and cargo shipped in flat rack or open top containers. Cargo arriving via these methods must be treated prior to export, as there is no option for onshore fumigation upon arrival in Australia and goods will be directed for export.

High volume importers of target high risk goods from target risk countries may be able to apply to join the Safeguarding scheme.

For further information on the Safeguarding scheme, or any questions in general relating to Australia’s BMSB requirements, please contact Harders Advisory.


Extension of temporary duty reduction for goods from Ukraine

The Australian Government has announced an extension of 12 months to the temporary duty reduction for goods that are the produce or manufacture of Ukraine.

Eligible goods may continue to be imported at a free rate of duty until 3July 2024.

Eligible goods are those that meet the requirements applying to Developing Countries covered under Division 1A of Part VIII of the Customs Act 1901.


Pregnancy Warnings labels on Imported Alcoholic Drinks  

The Department of Agriculture, Fisheries and Forestry has released Imported Foods Notice (IFN) 08-23 to guide importers of alcoholic drinks intended for retail sale.

While many importers would have been aware of this since 2020, from 31 July 2023, all packaged and individual alcoholic drink products (with ABV of 1.15% or greater) intended for retail sale must be labelled with the required warning statement, unless the imported drink will be labelled with the statement prior to being sold.

Further information can be found at the FSANZ website here, or by contacting Harders Advisory.


Landside Logistics Update

NSW Port Master Plan

Last month NSW Ports released is 40 year master plan which covers their ports and intermodal assets, Port Botany, Port Kembla, Enfield and Cooks River Intermodal Centres.

The report shared current statistics, port and facility enhancements and Master Plan 2063 Objectives.


Key Volumes and Stats Financial Year 2023

  • Containers throughput at Port Botany = 2.7M TEU
  • Bulk Liquid at Port Botany = 4.51M Mass Tonnes
  • Roll on/Roll Off units at Port Kembla = 417,415 Units
  • Dry Bulk = 19.8M Revenue Tonnes
  • Total on dock Rail Mode Share = 14.5%


Enhancements

Patrick Port rail (SABRE) Project – A joint $190M investment to expand on-dock rail capacity to 1M TEU . Completion date early 2024.

MEDLOG Empty Container Park – Once completed will add 6,000 TEU of static empty container capacity. DP World and ACFS also undertaking works on site to increase capacity (around 26%) for empty containers in Sydney.


2063 Master Plan Objectives

  • Cater for trade needs of NSW and Australia
  • Grow the volume of freight moved by rail
  • Grow Freight handling capacity
  • Ensure the efficient and responsible use of land and Infrastructure
  • Protect the ports , freight–related lands an freight transport routes 

More information can be provided by your Key Account Manager.


Empty Park Fees

Empty Park Fees are increasing again across the country, pushing costs to more than $150 per container. We are still seeing many delays on turnaround times with some exceeding 90 minutes at yards in Melbourne this week. It remains to be seen if higher charges will assist in lowering times at the yards, however these charges seem to continue to escalate without any real reason. Industry associations continue to take the fight with operators and government on all landside ancillaries that are now well above base rates to metro destinations.


Shipping Market Overview

Shipping lines’ efforts to rationalise space in recent months have finally paid off, resulting in an “artificial peak season” in the market. 

This, along with re-engineered services, vessel redeployment, downgrading of larger vessels to smaller ones, and an increase in demand, has all contributed to the current market dynamics.

Booking forecasts indicate a surge in demand, with shipping lines operating at full capacity and some carriers even rolling cargo. This is boosting market confidence, showing that demand is finally outpacing supply. The Rate Restoration (RR) has been gaining momentum since August 1st due to these factors. Shipping line consortiums are planning to implement further blank sailings across all major carriers, and as a result, they have announced two additional Rate Restorations (RR) ex-Northeast Asia to Australia for sailings departing on August 15th and September 1st, 2023, at a quantum of USD 150 per TEU on top of the spot FAK (freight all kinds) rates, respectively. 

It has been observed that shipping lines are now implementing smaller incremental increases, as the earlier Rate Restoration announcements in Quarter 2 of USD 250 – 300 per TEU had little impact.

The market is experiencing an upward trend in freight rates due to the reduced capacity on the berth in the Northeast Asia trade lanes. Volatility will continue as macroeconomic factors influence demand, making communication of any market condition changes important.

On the East-West Head Haul trades (Shanghai to Rotterdam) spot rates have increased by 25% in the last week also reaping the rewards of capacity rationalisation programs being adopted by the major carriers.

Shipping lines predict tight space for August and September due to the rush of orders before China’s October Golden Week holidays (from October 1st – 8th), where factories usually shut two weeks earlier. It is wise to pre-plan orders in advance in case of extended factory closures, which may cause disruptions.

When choosing cost-effective shipping options to meet specific supply chain needs, careful consideration of sailing schedules is crucial. Carriers may cancel voyages if rates do not meet profitability standards, resulting in delays. 

Kindly remember to provide forecasts for essential planning with lead times of at least two to three weeks for your bookings.  

Please contact our team of supply chain professionals who will continue to provide you with the most competitive sailing options to support your supply chain needs.


Melbourne Warehouse Space

Harders Contract Logistics is on track to open their new warehouse in Truganina in October 2023. With the vacancy rate for industrial spaces currently as low as 0.5% (Melbourne), this additional warehouse space is much anticipated by national and local retailers.

The facility, with a capacity of 12,461 pallets, is perfect for food items, beverages, FMCG and as surge warehousing. Please note that this warehouse is NOT set up for: frozen goods, dangerous goods and online order fulfilment.

Aside from the site progress which is steaming along, we can draw attention to the 99 kw solar system, low VOC paint and rainwater collection, which are part of what makes this site a 5-Star Green Star Environmental build.

Another highlight is our advanced Warehouse Management System, which leverages sophisticated algorithms and machine learning capabilities to optimise warehouse operations. The system intelligently manages inventory – maximising space utilisation, minimising stock-outs and reducing carrying costs. It enables efficient order fulfillment, optimised picking, packing and shipping processes for enhanced productivity and customer satisfaction.

The Harders Contract Logistics warehouse in Truganina will be operational from October 2023

Please reach out to us if you are looking for warehouse space in Melbourne or if you require assistance with your distribution requirements.

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