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Henning Harders September 2020 Newsletter

Terminal Disruptions

Since early July, all Australian terminals have been affected by ongoing schedule changes, Protected Industrial Action and congestion.

This month saw an escalation in events with several vessels by passing Sydney and discharging containers in Melbourne. Additional train services and trucking options were in place very quickly to take on the demand to move containers from Melbourne to Sydney.

The current Industrial Action has been the main driver of disruptions at the terminals. The MUA has been finalizing two parts of their enterprise agreements (A&B) which have been in ongoing negotiations. Stoppages have certainly affected the terminals ability to service vessels that come in and out of the wharf. It seems that agreements have been finalized at DP World however over at Patricks they are still ongoing. Patricks have now seek application to the Fair Work Commission to work through a resolution. The Government has now also intervened to ensure an outcome is secured.

At Patrick Terminal Port Botany, it is anticipated that vessel berthing delays will be around 18.7 days by the 2nd October. This highlights the ongoing seriousness of the situation and the urgency to rectify disruptions at all terminals. It is essential given the current economic climate and our requirement to supply.

Henning Harders are continuing to keep all our customers updated over this frustrating time via our Account Managers.

Empty Container Parks

September saw further escalation of congestion at ECP’s (Empty Container Parks) across Sydney. It was estimated that a surplus of approximately 36,000 containers exist in Sydney across all parks and terminals.

Daily, ECP’s are closing their doors to accept equipment returns as they continue to run at capacity. The ongoing waterfront disruptions are a key factor for shipping lines unable to evacuate containers back to Asia where there are shortfalls of certain equipment. There is also a need for shipping lines to hold onto certain equipment types to fulfill demand for the up coming grain season which is expected to be a bumper from previous drought years.

The trucking companies continue to juggle containers for redirections or back to yard which places another additional strain on all parties to move containers through the system. It is estimated that an additional $130 per container is paid due to these empty yard constraints. These issues will continue to grow unless the shipping lines can conduct a sweep and evacuate considerable number of containers back out of the country. At this stage there is little to suggest this will happen anytime soon. Henning Harders are monitoring the ECP situation daily and working closely with our trucking partners to limit the effects to our customers. If you have any questions concerning these issues, please contact your Account Manager.

Chinese Government Launch Countervailing Duty Investigation into Australian Wine

Further to the investigation into the alleged dumping of Australian Wine, the Chinese Government has launched a countervailing duty investigation into the same product.

Countervailing duties are imposed to counteract the effect of subsidies provided to producers in the target country that cause damage to producers in the receiving country.  The investigation will therefore centre on whether Australian wine producers are receiving any subsidies from the Australian Government in the form of grants, tax relief, Government supplied inputs resulting in a low price and rebates.

There are a handful of grants and rebates available to Australian producers which were designed to increase the volume of wine sales to China.  Such benefits will be reviewed by the Chinese authorities during their investigation to determine what measures, if any, to implement in response.

Australian wine exporters are urged to cooperate with the investigation and should register to do so with the Chinese government.

For further assistance please contact Harders Advisory.

Brown Marmorated Stink Bug Safeguarding Arrangements

The Department of Agriculture, Water and the Environment (DAWE) has made the Safeguarding Arrangements Scheme available to industry stakeholders and importers as part of the 2020-21 seasonal measures.

The scheme recognises the ability of approved participants to manage seasonal hitchhiker pest risk offshore, from the point of manufacture to the point of export.  Importers that meet certain eligibility criteria may apply to the department for consideration of the offshore supply chain in line with the scheme.

The eligibility criteria are below:

  • Goods imported into Australia by a single importing entity that has a valid Australian Company Number (ACN) and/or Australian Business Number (ABN), AND;
  • Goods transported as break bulk cargo, including those shipped on flat rack and in open top containers, with a minimum import volume of 5000 vehicles/units per supply chain during the BMSB season, AND/OR;
  • Goods transported as Full Container Load (FCL) or Full Container Consolidated (FCX) cargo with the following minimum import volumes per supply chain during the BMSB season:
    • 50 x Twenty-Foot Equivalent Unit (TEU) containers, AND/OR;
    • 25 x Forty-Foot Equivalent Unit (FEU) containers.

*An offshore supply chain includes all offshore sites from the initial point of manufacture to the point of embarkation (export) to Australia and is identified by a single Supplier ID. Supply chains may potentially include manufacturing / storage sites located in different countries where goods undergo further processing and / or storage prior to embarkation. Applications which include these types of supply chains will need to clearly outline the movement of goods from the initial point of manufacture, through intermediate sites / countries to the point at which the goods embark en route to Australia.

For further assistance please contact us.

DAWE Urgent Actions for Khapra Beetle – Update

Further to our broadcasts on this subject, the department has issued further information relating to the urgent actions here.

Industry Associations have also been advised in various meetings that not only has the number of detections increased over a short period, but that detections have also been made from countries not currently listed as known khapra beetle countries, including China and Papua New Guinea.  The Department believes that these infestations originated from the container, where they had been living under the floor, rather than the commodity.

Further broadcasts will be released as additional information becomes available.

African Swine Fever Detected in Germany

The Department of Agriculture, Water and the Environment has notified industry of a detection of African Swine Fever (ASF) in Germany.

ASF is a serious disease in pigs and this outbreak will have an impact on the importation of certain goods that contain porcine material sourced from and/or manufactured in Germany.

If your business currently imports or is looking to import any of the following commodities from Germany, or any other porcine based materials, please contact Henning Harders to see what affect these changes will have.

  • Culture media – in vitro and in vivo use in laboratory organisms;
  • Animal fluids and tissues – laboratory use;
  • Other porcine materials – laboratory use;
  • Dry, semi-moist and heat processed pet food;
  • Stock feed of plant origin;
  • Baked pigs ears;
  • Retorted pet food;
  • Rawhide chew pet treats.

Existing permit holders should already have been contacted by the Department of Agriculture, Water and the Environment.

Upcoming Changes to the Inspection of Imported Food

The DAWE has advised industry of changes to the inspection and analysis of some imported food.  These changes are still to be implemented and will be communicated but will be communicated in future newsletters as the information is made available.

The food products in question are below with further information available in IFN06-20.

  • Berries that are ready-to-eat;
  • Bivalve molluscs and bivalve mollusc products (excluding retorted or dried);
  • Coconut that is dried;
  • Marinara mix that does not contain bivalve molluscs or prawns;
  • Pomegranate arils that are ready-to-eat;
  • Poultry that is cooked and ready-to-eat;
  • Crustaceans and crustacean products that are cooked and ready-to-eat;
  • Prohibited plants and fungi as listed in Schedule 23 of the Australia New Zealand Food Standards Code.

Please contact Henning Harders with any questions.

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