Landside Logistics
DP World Fremantle – Weigh in Motion System now Operational
In line with Sydney, Brisbane and Melbourne DP World in Fremantle have commenced weighing each vehicle that is carrying a full import container prior to exiting the terminal precinct.
This is an important step in ensuring weight compliance in line with the GVM (General Vehicle Mass) limits within Western Australia.
The Weigh in Motion system will measure the axle group weights calibrated against the GVM limits in Western Australia. There are different permitted levels of GVM which will also be captured under the ‘WIM’ system.
Container weight and distribution, along with having the right equipment to carry specific loads, is extremely important for the safety of drivers and the public. If the vehicle exceeds the weight limitations (without a permit), the driver is provided options to safely move this vehicle to specified sites within the port area. Additional charges will apply where containers are deemed overweight.
Weigh in Motion – Fees
All transport providers will be levied with a “Weigh in Motion” fee for all container collections from Thursday 1st August 2024.
These fees will now be passed through along with the remaining terminal fees from this date moving forward. If you have any questions, please contact your Harders Account Manager.
Transhipment Congestion Worsens Leading to Delays
Congestion at Singapore’s container port, which is at its worst since the pandemic, has started spilling over to neighbouring ports, posing a risk for global supply chains.
Singapore is the world’s largest transshipment hub and connects more than 600 ports from
123 countries with an annual capacity of 50M TEU.
One of the main causes of the ongoing congestion has been due to ships rerouting to avoid Red Sea attacks leading to bottlenecks in other Asian and European ports.
Maersk, the world’s second-largest container carrier said it would skip two westbound sailings from China and South Korea this month owing to severe congestion.
The Port Authority of Singapore has reported that there have been high concentrations of vessels arriving on certain days of the week since the beginning of 2024, resulting in off-schedule arrivals and high berth demand. This has caused significant waiting times and all berths are currently at full capacity.
Furthermore, there is an increase in the number of containers being handled per vessel call due to higher demand and container re-handling. In some cases, containers are unloaded from the vessel to prioritise other containers based on port of discharge, weight, and vessel stability, before being loaded back onto the vessel. Subsequently, container re-handlings on mega vessels at the port of Singapore have increased by 8% in the first half of 2024 compared to the previous year.
If you are planning to book any shipments through Singapore, please be aware of these extended delays and allow additional lead times to counter the potential delays, some of which can exceed 30 days while sitting at the port awaiting connection to Australia.
Seafreight Market Update
The China to Australia trade did not experience a traditional slack season this year, as would have been expected after Chinese New Year concluding in February.
Another General Rate Increase (GRI) was announced for shipments departing 15th July of approximately US$300 / TEU. This follows a pattern of successive fortnightly announcements, the next of which has been planned for 1st August of the same amount.
In addition to the GRI announcements, shipping lines announced three blank (cancelled) sailings during the month, having an overall effect of removing approximately 17,000 TEU capacity from the trade. Two consortiums also reduced their vessel sizes on a permanent basis, further reducing availability by several thousand TEU.
It is evident that the carriers are seeking for rates levels to be at a similar level to the ones they are experiencing on other global trades, and they continue do this by managing the capacity aggressively.
As we approach the traditional Peak Season rush, it will be pertinent to factor in at least a three to four week booking window, allowing time between the order being received, booking being placed, as well as vessel and equipment being secured.
Please continue to contact our experienced team of professionals who are ready to find solutions to navigate through these challenges by matching the right sailings with competitive options to meet your supply chain requirements.
Harders Advisory
Luxury Car Tax Thresholds for 2024-25
Australian Customs Notice 2024/19 sets out the increased Luxury Car Tax thresholds for the 2024-25 financial year.
The following thresholds are effective from 1 July 2024:
- Fuel efficient vehicles – $91,387 (increased from $89,332 in FY2023-24)
- Other vehicles – $80,567 (increased from $76,950 in FY2023-24)
Further information can be found on the ATO website or by contacting Harders Advisory.
Imported Foods – Verification of Importer Declaration
Imported Food Notice IFN 05/24 was issued for the attention of all importers of cheese, ready-to-eat seafoods and ready-to-eat duck, and brokers acting on their behalf.
The Department of Agriculture, Fisheries and Forestry will soon commence activities to verify Imported Food Inspection Scheme Importer Declarations for the above commodities.
Identified importers will be asked to provide evidence to support the answers provided on their declarations. Evidence provided must meet the requirements in the Minimum documentary and import declaration requirements policy – that is, it should be provided on letterhead, list the products in question, make the required statements and be signed and dated. Importers are advised to request satisfactory evidence from their suppliers if not already on file.
The department intends to commence with verification of cheese importer declarations in the first instance.
For further information please contact your Harders Account Manager or Harders Advisory.
Air Freight Update
Global air cargo demand increases by 13% v/s last year, ASIA Pacific contributing the most.
Sustained e-commerce expansion, global maritime shipping disruptions and rising demand for high-tech, perishables and consumer goods continue boosting air cargo volumes.
Global air cargo capacity up +9% YoY in June, overall global capacity remains steady, with persistent constrains across key routes.
Airfreight rates on key trades out of Asia remained “firm” in June despite the market entering the quieter summer season. Rates are particularly high on routes from Asian and Middle East origins, extra belly hold capacity is added to the market for the summer tourist season.
The overall tone of the market remains very firm for the time of year, with some reports even proclaiming peak season had come early. Such reports seem somewhat premature given that traditional peak season is still months away.
Many Airlines report a lot of block space agreement capacity has already been signed up for Thanksgiving and Christmas, which could presage a big spike in spot rates later in the year.
Shippers / Importers are preferring long-term contracts for stability, competitive rates, and reliable operational performance.
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.
Harders Contract Logistics
Harders Truganina 3PL site becomes a Class 1.3 Approved Arrangement
An Approved Arrangement (AA) Class 1.3 is a specialised facility approved by the Department of Agriculture, Fisheries and Forestry (DAFF) for the deconsolidation of sea and air cargo which is subject to biosecurity inspection. These arrangements manage the biosecurity risk associated with various imported commodities and are critical in preventing the introduction and spread of a range of pests and diseases that could threaten Australia’s environment, agriculture industry and economy, as well as pose a human health risk.
What is a Class 1.3 Approved Arrangement?
A Class 1.3 AA is a restricted sea and air freight depot. They are approved to store, inspect and / or treat imported commodities that are identified as posing a biosecurity risk, or that may arrive in Australia without the correct packing documentation. The approval process for these arrangements is stringent as DAFF must be satisfied that the required biosecurity standards can be met to effectively contain and manage potential risks.
Activities Permitted at a Class 1.3 Approved Arrangement
• Storage, inspection and/or treatment of cargo from countries with correct certification and correct or incorrect packing documentation
• Inspection and/or treatment of personal and household effects
• Inspection and/or treatment of military cargo and vehicles
• Commodity verification tailgates
• Cleaning and re-inspection of break bulk machinery (after initial inspection at an approved arrangement class 1.1 site or wharf) when appropriate and approved sites are available
• Containerised machinery inspections and the fumigation and cleaning of these goods when appropriate and approved sites are available
• Holding and/or treatment of dunnage and non ISPM 15 compliant packing.
Compliance and Auditing
Maintaining AA 1.3 status requires ongoing compliance with stringent biosecurity standards. Facilities undergo regular audits and inspections by DAFF to ensure adherence to required protocols. Non-compliance can lead to suspension or revocation of the approval.