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Henning Harders November Newsletter

Regional Comprehensive Economic Partnership

The Regional Comprehensive Economic Partnership (RCEP) will enter into force on 1st January 2022 for ten of the fifteen signatory nations.
The agreement has been ratified by Australia, New Zealand, Brunei Darussalam, Cambodia, China, Japan, Laos, Singapore, Thailand and Vietnam.
The remaining signatories of Indonesia, South Korea, Malaysia, Myanmar and the Philippines are yet to ratify the agreement.  The entry into force dates for these nations will be notified as they become known.
The total value of trade between Australia and the other RCEP countries in 2019 amounted to $532.6 billion with the new agreement expected to see this trade increase.
To learn more about RCEP and how it may benefit you as an importer or an exporter, please contact Harders Advisory.

Khapra Beetle Urgent Actions

In early 2022 the phase 4 and phase 5 measures of the Khapra Beetle Urgent Actions are expected to commence.
Phase 4 sees the introduction of revised phytosanitary certification requirements for other-risk plant products exported from all countries and imported via the pathways in the definitions list.
Phase 5 introduces phytosanitary certification requirements for seeds for sowing exported from all countries regardless of their arrival mode.
From 12th July 2021, mandatory offshore treatment requirements were introduced for all FCL/FCX containers packed in a khapra beetle target risk country that were destined for unpack in a rural grain growing area of Australia.  These measures, referred to as the phase 6A measures, are being extended to include containers destined for unpack in rural nut growing areas of Australia, and will come into effect for all containers exported after 15th December 2021.  The postcodes deemed as rural nut growing areas are 4569, 4517, 4518, 4858 and 4560 and the extension of the 6A measures are anticipated to have minimal impact to industry.
Further information can be found here, or by contacting Harders Advisory.

Landside Logistics

Terminal Updates
This month Patrick and the MUA attended a conciliation session at the Fair Work Commission to resolve matters before the hearing. The outcome resulted in the MUA agreeing to provide an undertaking to the Fair Work Commission that all notified and ongoing industrial action was to be withdrawn effective immediately with no further action until the 10th December.

The Prime Minister weighed into the debate last week encouraging both parties to formalise negotiations in good faith whilst announcing the governments six-month enquiry into the efficiency of our maritime logistics industry. This is considering the recent ACCC Container Monitoring Report which the Government has agreed to examine broader issues associated with the relative productivity of Australian ports, stating that inefficient ports are a ‘tax on all of us.’

It will be an interesting read when this enquiry has been finalised and we trust this will initiate some change at our ports.

Christmas and New Year
It’s the busiest time of the year, especially now with ongoing shipping delays and increased import volumes into the country. It is worth being reminded that this impacts heavily on all parties to ensure containers and shipments are collected from terminals quickly and efficiently.
Wharf carriers are often working around the clock to ensure tight deadlines are met, however the management of container dehire is difficult at this time of the year. With weekends and public holidays looming it’s imperative that all parties work together in limiting container detention. Any additional free days is considered like gold and helps considerably in the process. Please ensure you contact your Account Manager about managing these costs over this holiday period.

A reminder that terminal charges have increased this month in line with changes at DP World and VICT. In addition, and as the year ends, trucking costs are also heavily impacted by increased costs to equipment, Health and Safety, leases, and wages. We expect the impact of these be felt in the new year.

Shortage of Diesel Exhaust Additive
An interesting twist in the heavily impacted supply chain comes a shortage of imported diesel fluid into the country. This additive is used as special anti-pollutant for all diesel trucks and the lack of this currently could lead to half the trucks being taken off the road by early next year. Hopefully supply rebounds before the situation becomes too dire. We will keep you updated on this evolving situation.

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