US Government On Brink of Potential Shut Down
The US stands just days away from a full government shutdown amid political deadlock over demands for deep public spending cuts by some in the Republican party. It is an event with the potential to inflict disruption to a range of public services, including those relating to supply chains, and wreak significant damage on the national economy if it becomes prolonged.
In the event of a Government Shutdown, thousands of federal government employees are put on furlough, meaning that they are told not to report for work and go unpaid for the period of the shutdown, although their salaries are paid retroactively when it ends.
Other government workers who perform what are judged essential services, such as air traffic controllers and law enforcement officials, continue to work but do not get paid until Congress acts to end the shutdown.
Freight Industry bodies have been advocating for all US government agencies involved in international trade to remain open. At this stage, it appears that an essential services policy may see a number of main border clearance processes in the US remain open, however the full scope of that situation applying across all relevant government agencies involved in international trade remains unclear, with high risks of stoppages and ongoing delays being likely.
Unless a surprise solution is agreed upon and rushed through by Friday US ET, then the there is a high possibility that this impasse could possibly take several weeks for a resolution to be achieved. This raises high prospects of significant disruption and delays being experienced in the servicing of cargo at major ports, airports and related precinct areas throughout the US from Sunday night. Importers and Exporters shipping to and from the US should be warned of the possibility of upcoming delays and potential demurrage costs being incurred.
Please contact your Key Account Manager to if you would like to discuss any potential impacts to your shipments.
Illegal Logging Prohibition Regulations Update
The Illegal Logging Compliance Assessment team has provided some updates around the declaring of Due Diligence for timber importers that they comply with the Illegal Logging Prohibition Regulations of 2012.
Previously, importers were able to provide a standing declaration that they comply with the due diligence requirements to ensure their products are not illegally logged. Now, the compliance team have come out to advise that this is no longer acceptable and that declarations around compliance with the requirements must be consignment specific.
The Department of Agriculture provides Industry Guidance Material online to assist importers in understanding their requirements. The Department has advised “Our audits of importers are identifying compliance issues, many of which may be minimised or non-existent through increased awareness of our illegal logging laws that apply to timber products that are regulated under this legislation.
Significant penalties can apply if importers fail to undertake due diligence.” For any affected shipments from today, your Key Account Manager will provide an updated declaration template to be completed per consignment to help navigate the new requirements.
High Diesel Prices Pushing Up Transport Costs and Inflation
Rising diesel fuel and excise costs are rapidly driving up road transport operating costs and inflation.
Australia’s monthly Consumer Price Index (CPI) indicator rose 5.2 percent in the 12 months to August 2023 according to the latest data from the Australian Bureau of Statistics (ABS) released on 27 September 2023. This was up from 4.9 percent in July.
Fuel prices were one of the main factors nudging Australian inflation figures higher. The inflationary impacts from fuel price rises are consistent with the latest fuel price analysis from the Australian Institute of Petroleum (AIP).
According to the AIP, the National Average diesel wholesale price for the week ending 22 September 2023 was 210.7 cents per litre (cpl). This is up by 10.6% in 3 months (@ 190.5 cpl) and by 12.43 percent from the same period last year (187.4 cpl).
Many carriers have already started to adjust fuel levies to keep up with the rising costs as a result.