Henning Harders July Newsletter

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Table of Contents

Shipping Update

Europe

The Europe to Australia & New Zealand trade continues to experience unprecedented demand.

Whilst some carriers are not currently levying a Peak Season Surcharge (PSS) on their Ocean Freight rates, CMA-CGM have implemented the following surcharge from 1st July:

  • North Europe (excluding France) = US$150 / Dry TEU
  • Mediterranean Ports (including Le Havre) = US$300 / Dry TEU
  • Reefer Container = US$500 / Container

Hapag Lloyd are implementing a General Rate Increase (GRI) of US$400 / Dry & Reefer TEU from 1st August.

Both Dry and Reefer bookings to Australia require careful forward planning at this time, whilst bookings to New Zealand continue to be declined by many carriers, owing to the congestion being experienced in transhipment ports worldwide. In the past several weeks, we have been made aware of carriers also announcing booking suspensions for Australian bound cargo, further adding to the capacity pressures being experienced by the remaining shipping lines serving the region.

China

China continues to be a carrier’s market and capacity is tight to non-existent on all trades: China to Australia, China to New Zealand, China to Europe & China to USA.

To Australia & New Zealand, it’s planned that market rates will increase every month at least, if not every fortnight –

  • 1st August will see a General Rate Increase (GRI) implemented of US$500 / TEU
  • 15th August will likely see a GRI implemented of US$300 / TEU

In addition to above, one carrier has already announced a Peak Season Surcharge (PSS) to take effect from 1st September of US$500 / TEU. It is therefore likely that other carriers will make similar announcements in the coming days.

Many lines are suffering from severe equipment shortages, particularly 40’HC containers. In some instances, utilising a 40’NOR container may be the only alternative option.

TS Lines have commenced their CA2 (China – Australia 2) service. It is run by a handful of their own vessels with a capacity of approx. 1100 TEU per sailing.  The port rotation is Qingdao, Ningbo, Shanghai, Nansha, Sydney, Melbourne, Brisbane.

It is pertinent during this time to provide advance notice of any orders or bookings that you may be planning from anywhere in the world. Please keep in touch with your Key Account Manager to avoid disappointment.


Department of Agriculture, Water and the Environment (DAWE)

National information hub for biosecurity information

The Hon David Littleproud MP Minister for Agriculture and Northern Australia announces, “First Stop for Biosecurity Information.”

New national website biosecurity.gov.au launched as a hub for biosecurity information.

Quick and easy way for the public to find answers to their biosecurity questions.

The Australian Government has today launched a new national website that will help the public easily find answers to their biosecurity questions. 

Minister for Agriculture, Drought and Emergency Management David Littleproud said the website would help everyone better understand their role in keeping Australia safe from pests and disease.  

“Australia’s biosecurity system is vital for safeguarding our primary industries and environment, but public information has been scattered,” Minister Littleproud said.

This new website brings together resources from the Australian, state and territory governments, industries and non-government agencies. This site will continue to evolve and grow to support people’s biosecurity information needs.

Whether you’re an individual or a business, the website links you to everything you need to know about your biosecurity responsibilities. 

If you’re travelling around Australia, shopping online, or even if you just like heading out bush – you have a role to play in looking after Australia’s biosecurity.

If you’re importing, mailing or visiting from overseas and aren’t sure about the ins and outs of Australia’s biosecurity, this website will help direct you to the information you need to know.

And if you think you’ve spotted a biosecurity risk, this website will tell you what you can do about it.

We can all do our part to support Australia’s biosecurity system.

By better understanding the roles we all play, we can work together to keep our country free of pests and diseases.

Fast Facts:

  • Implementing the stand-alone biosecurity.gov.au website delivers on the collective response of all agriculture ministers to recommendation 21 of the 2017 independent review of the national biosecurity system.
  • The national biosecurity website is a key component of delivering a strategic action under Commonwealth Biosecurity 2030.

BMSB Safeguarding Arrangement

DAWE have indicated that the Safeguarding Arrangement program will be retained for the next BMSB season. (2021 – 2022)

In response to the rapid expansion of BMSB throughout Europe and North America, the Department of Agriculture, Water and the Environment (the department) has retained the seasonal measures to manage the risk of BMSB from arriving in Australia for the 2021–22 BMSB risk season.

The department is using a range of scientific, intelligence and evidence-based information when setting the measures, including data collected from the 2020-21 Brown Marmorated Stink Bug (BMSB) season onshore verification activities.

As many of our customers will attest, BMSB poses significant direct and indirect cost, disruption and uncertainty to their supply chain.

The team at Harders Advisory, have been working with DAWE to formulate a strategy to self-manage the BMSB risk for next season and beyond.

Last month, Andrew Crawford (who heads up our advisory section in NSW) and Joyce Campbell our (Head of Harders Academy and Training) visited Canberra to meet with Mr. Ben Rowntree A/g Director Seasonal Pest Policy / Pathway Policy – Cargo and Conveyances / Biosecurity Operations Division.

We are pleased to advise Harders Advisory is assisting one of our high-profile customers in applying for accreditation for next season to manage the BMSB risk through the Safeguarding Arrangement Scheme.

The 2021-22 BMSB season will be here before we know it!

We encourage other customers to seriously consider this initiative and discuss their options with our Advisors, Andrew Crawford or Steve Butler. Both gentlemen can assist you through the program and provide all the necessary support through our experienced advisory services.

BMSB Season 2021-22 is about to begin

Let’s keep Khapra beetle out!

Khapra is a serious agricultural pest that poses a major threat to our grains industry. This exotic pest comes in second on Australia’s most unwanted plant pest list, and we need your help to keep it out: agriculture.gov.au/urgent actions to protect against Khapra beetle

What to look for:

  • Adult beetles (1.6-3mm long) are reddish dark brown, oval-shaped with faint dark lines and do not fly.
  • Larvae (1.6-4.5mm long) typically appear very hairy and are golden brown.
  • Cast larval skins are the most obvious indicator of infestation.
Adult Khapra beetle
Khapra beetles with larvae

To support the implementation of actions against Khapra beetle, DAWE have developed two short videos to communicate:

  • the risks khapra beetle poses to Australia
  • how to identify khapra beetle
  • the importance of sea container cleanliness
  • how to maintain sea container cleanliness.

We welcome you to watch and share the content with your contacts. You can watch the videos here:


Illegal Logging Sunsetting Re-review

DAWE are reviewing the Illegal Logging Prohibition Regulation 2012. They are also consulting on wider reforms to the illegal logging laws.

You can now provide feedback on the Regulation and the proposed reforms. Your feedback will help DAWE ensure that the laws:

Remain effective in protecting the Australian market from illegally logged timber

Achieve their purpose of promoting trade in sustainable, legally harvested timber.

Reforms being considered:

  • receiving information before goods arrive at the border.
  • ensuring officials are empowered to deal with compliance risks at the border.
  • reducing the need to repeat due diligence.
  • simplifying requirements for low-risk products among other matters.

Provide your feedback
To have your say, we recommend you read the consultation paper or shorter overview paper. Take the DAWE survey or upload a written submission now at Illegal Logging Sunsetting Review | Have Your Say – Agriculture, Water and the Environment (awe.gov.au)

Please submit your feedback by 31 August 2021.


Concentrated National Audit Program – Importers

The National Measurement Institute (NMI) is the Federal Government’s authority on measurement. They use market intelligence, consumer complaints and stakeholder feedback plus industry participants compliance history to plan and implement targeted inspection programs for industry sectors that have a higher risk of non-compliance with the requirements of trade measurement law.

Two major factors determining which traders are targeted in these national audits will be:

  • previously identified non-compliance
  • relative market shares of industry participants.

Henning Harders Advisory have been alerted by one of our leading Industry Associations “Freight & Trade Alliance (FTA)” the program will include a focus on pre-packaged products with measurements based on volume and will be concentrated on Importers, Independent Supermarkets, and Licensed Premises.

The Importers focus is planned for the week commencing 30 August and will include a focus on:

  • consumable items, including oils and seasonings
  • animal food products, such as pet foods
  • beverages
  • sanitisers such as alcohol-based products
  • cleaning products.

Inspectors will also be reviewing documentation for measurement-related QA processes to ensure regulatory compliance.

Although the audits are unlikely to directly impact licensed customs brokers, may we suggest that your clients in these industries be given this advice.

Additional details can be found at : National Measurement Institute Legal Metrology Compliance Plan 2020-2021 (industry.gov.au)


DAWE – Ozone and Climate Protection

The department has issued a consultation paper on “Limiting import and manufacture of small air conditioning units using high global warming potential refrigerants”.

By way of Introduction:

The Ozone and Climate Protection Section of the Department of Agriculture, Water and the Environment (the department) is seeking your views regarding potential restrictions on the import and manufacture of small air conditioning units (small AC) that use high global warming potential (GWP) refrigerants.

The proposed approach being put forward for consultation is an import and manufacture ban on small AC up to 2.6 kg refrigerant charge using a refrigerant with a GWP over 750. Air conditioners covered would be non-ducted units including split systems, window/wall mounted units and portable air conditioners. This would effectively ban the import and manufacture of small AC using the refrigerant R410A which has a GWP of 2,088. Equipment already in Australia would not be affected.

This GWP based limitation on import and manufacture of small AC is being considered to support the hydrofluorocarbon (HFC) phase-down which began in 2018.

The department understands that the small AC market is at the point where high GWP equipment could be removed from the market without increasing costs to manufacturers or consumers or significantly impacting consumer choice. To further understand the market the department is undertaking this consultation to gather information from users of small AC, as well as manufacturers, importers, technicians, and other stakeholders.

The Department invites your comments on this proposal by 26 July 2021 to ozone@awe.gov.au.

If you would like to obtain the complete notice, please contact either Steve Butler or Andrew Crawford from Harders Advisory.

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