Henning Harders June Newsletter

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Table of Contents

Shipping Update

Europe –

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

Carriers have announced the following surcharges effective from 1st July 2021:

  • CMA = US$1200 / 20’ Dry and US$2400 / 40’ Dry + Peak Season Surcharge (PSS) in effect.
  • CMA = US$1000 / 20’ Reefer and US$2000 / 40’ Reefer + Peak Season Surcharge (PSS) in effect.
  • Hamburg Süd = US$1250 / 20’ and US$2500 / 40’
  • MSC = US$1300 / 20’ and US$2600 / 40’

Both Dry and Reefer bookings to Australia require careful forward planning, whilst bookings to New Zealand are being declined by many carriers, owing to the congestion being faced in transhipment ports worldwide.

In one carrier’s words when we spoke to their trade management team: “…we need to count every TEU (container) at the moment.”

Despite all the pressures, carriers are helpful when called upon by Henning Harders and try to accommodate our requests as best as possible.

China –

Not dissimilar to other trades, China continues its boom since Covid began last year.

Announcements of General Rate Increases (GRI) are frequent and the following have been advised of late:

  • 15th June: GRI of US$300 / 20’ and US$600 / 40’
  • 1st July: GRI of between US$300 to US$500 / 20’ and US$600 to US$1000 / 40’

Southern Chinese ports are facing particular strain, in part due to the following recent factors:

  • Due to ongoing vessel delays and in order to achieve schedule integrity, 1 blank sailing has been announced by COSCO / ANL / OOCL (A3) consortium.
  • Owing to COVID and infectious crew on board the vessel, the current ZIM sailing will omit several ports. No new bookings can be accepted at this time. The current delayed bookings on hand will take up capacity on the following voyage.
  • The next available HMM / ONE sailing will occur mid July, owing to COVID issues at Yantian port. The capacity on this voyage will be taken up by many containers which have been delayed at Yantian port for weeks, whilst Yantian port was closed.
  • There is a limited opportunity to ship with EMC / YML / TSL during this time, however space will be limited and rates even higher than market, owing to all of above factors.

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.


Landside Logistics

Terminal Updates

Notification of Protected Industrial Action (PIA) was sought by the Maritime Unions in respect to reduced operation hours nationally at Patrick, Hutchison, and Victorian Container Terminal (VICT) over the last 6-8 weeks.

This has impacted normal road collections and reduced rail services in and out of Patrick terminal by 25% effecting important regional export trade getting to overseas markets.

Patrick also commenting that given the Industrial action is outside their control, they will not be issuing storage waivers or reductions for truck companies unable to secure timeslots within the free period at the terminal.

Patrick also have stated that Enterprise Agreements are continuing to be negotiated however with no timeframe on a resolution.

Current Vessel delays at Patrick Sydney is close to 6 days, whilst in Fremantle this has increased to 2 days on average. At present, Brisbane and Melbourne are not reporting delays to vessel schedules.

In some positive news VICT have now finalised their Enterprise Agreements with the MUA, AMOU and CEPU.

Terminal & Empty Parks Increase Fees

Victorian Container Terminal (VICT) provided notice to increase their Infrastructure charges from $131.03 to $141.80 from 1 July 2022. This represents an increase of over 8%

A range of Empty Parks across the nation increased their fees in June, some up by over 40%. Average fees now sit around $75.00 in Sydney.

Please ensure that you contact your Key Account Manager to understand how these fees impact your business.

Brisbane Terminal Spotlight

Container trade through Brisbane in April was up to over 118,000 container movements from 93,200 in the corresponding month in 2020. The port has enjoyed increased volumes over 7 consecutive months from October 2020.

Empty containers going out from Brisbane port increased 57% to 24700 units with shipping lines continuing to move empty containers to balance other international markets.

Household and Electrical equipment made up almost 25% of the total import container trade as our appetite for such items over the pandemic continues to increase.

Meat was the largest export product in container trade with 8% of the total volume heading out to overseas markets.


Department of Agriculture, Water and the Environment (DAWE)

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.

This 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.


Department of Agriculture, Water and the Environment – Ozone & 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 invite 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.


Australian Border Force (ABF)

Simplified Trade System (STS)

The Hon Dan Tehan MP – Minister for Trade, Tourism and Investment and The Hon Stuart Robert MP have recently released a joint media statement on the 18th of June.

The attached link contains the entire release:
New taskforce to simplify trade | Minister for Trade, Tourism and Investment (trademinister.gov.au)

As part of the announcement, the ministers state a new Simplified Trade System Implementation Taskforce will review international trade regulations and modernise outdated ICT systems, to assist more than 57,000 Australian exporters, and more than 380,000 importers.

In June, Andrew Crawford as part of his trip to Canberra met with senior ABF delegates to discuss the Simplified Trade System.

We at Harders Advisory are strong supporters of all Government initiatives that remove and / or reduce the regulatory burden and associated costs.

We will continue to monitor this initiative (STS) and keep our customers advised as and when further developments come to hand.


Department of Foreign Affairs and Trade (DFAT)

Australia – United Kingdom Free Trade Agreement

On 15 June 2021, Australian Prime Minister Scott Morrison and the United Kingdom Prime Minister Boris Johnson, made an announcement regarding core elements of the free trade agreement negotiations between the two historic trading partners.

This Agreement in Principle is good news for Australian importers and exporters alike, however negotiations are still in their infancy with several more negotiating rounds expected before a formal agreement is reached. Both parties will also need to ratify the agreements through their respective parliaments before the agreement can enter into force and any benefits be received.

Henning Harders is closely following developments with this agreement, as with all other free trade agreements currently under negotiation. Further updates will be published as they are made available.

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