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Henning Harders November Newsletter

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Henning Harders to commence third-party logistics services in Melbourne in 2023

Henning Harders has signed a Heads of Agreement on a 12,000-pallet facility in Melbourne’s West.

The facility is being built to 5-star green star environmental standards and will be ready to take pallets in October 2023.

A global tier-1 “best-of-breed” warehouse management system (WMS) will drive efficiency across all warehouse processes and allow for seamless real-time data integration with multiple customers’ ordering systems.

It is expected that further 3PL DCs will open in Sydney in 2024, followed by other major metropolitan areas to expand the national third-party logistics footprint.

Henning Harders is hereby seeking ‘expressions of interest’ from current clients looking to take advantage of this early bird space offer.

The site will likely be marketed to the broader market by Monday, 5 December 2022.

Multi-client and dedicated client options are available for this site, and it is expected that the Melbourne West site will fill up quickly.

Please contact your Henning Harders sales or key account representative for further information or to reserve your pallet spaces.

Landside Logistics / Terminals

On 3 October, Patrick Terminal in Sydney welcomed the largest vessel to arrive in Australia. The CMA CGM Estelle has a capacity of 10926 TEU’s and eclipses the previous record vessel, CMA CGM Ural with a capacity of 10662 TEU which arrived in the country back in June 2020.  

To put this into context the average container ship arriving into our ports carries 4500 TEU’s and indicates the growing requirements and demands for imported products. The CMA CGM Estelle is currently sailing on the MSC/CMA CGM NEMO direct Europe to Australia service. It’s also important to note the vessel in question was not at capacity on arrival.

The ability for our ports to accommodate these larger vessels comes from the significant investment in automation, supply chains and infrastructure at each terminal across the country. Whilst this investment is necessary the arrival of larger vessels onto our shores also impacts the landside operations significantly. This includes slot availability, short truck turnarounds, yard congestion and empty container park capacity. Investment in these areas is also critical to ensure that the continuation of larger vessels into the country doesn’t impact landside logistic operators, importers, and exporters.

Terminal Tariff Adjustments – VICT

After several months of little or no changes in charges at the terminals, VICT have this month indicated their intent for increases to charges via a 60-day notice for tariff adjustments. These include revised charges for Storage, Late Receival, Maritime Security Levy and Vehicle Booking Fees.

These changes will take place from 1 January 2023

Landside Logistics / Chain of Responsibility

After being under the influence of Covid for a few years, it’s time to remind businesses of their ongoing obligations within the supply chain under CoR laws. Whilst Importers and Exporters sometimes don’t directly have an impact on decisions made by the operators of heavy vehicles it is important to understand where if any do your obligations lie in respect to the law. The below link provides detailed information in respect to compliance under these laws.

Chain of Responsibility | NHVR

The main impact Importers and exporters have is the ability to ensure containers are safely loaded and within weight limits and distribution. Please refer to our website for information about weight limits on the roads and how these impacts shippers overseas and in Australia

Road Weight Limits AU – Henning Harders

If you have any questions around Chain of Responsibility, please reach out to your Key Account Manager.

Requirement for exporting waste materials

The Department of Climate Change, Energy, the Environment and Water regulates the export of certain waste under the Recycling and Waste Reduction Act 2020. This includes the export of waste tyres, waste plastic and waste glass.

Exports of the above waste materials may only occur if the exporter holds a valid export licence and if certain other conditions, specific to the waste type are met.

Failure to comply with the legislative requirements may leave the exporter open to civil penalty including fines, court orders or criminal charges. The Department may also share information relating to the non-compliance with other government agencies, including Australian Border Force.

For further information please contact your export Key Account Manager or Harders Advisory.

Home Affairs Portfolio Industry Summit 2022

Henning Harders has been invited to attend the Home Affairs Portfolio Industry Summit 2022, taking place in Sydney on 16 November 2022.

The event places emphasis on Australia’s cyber and critical infrastructure security, as well as the traditional functions of immigration, trade, and border management.

Of particular interest will be any updates regarding the modernisation of the trade and border system, which seems to be tied to the oft spoken of ‘Simplified Trade System’; as well as the workshops related to supply chain security and data security which is especially timely given recently reported cyber events.

October 2022 was Cyber Security Awareness Month. The Australian Cyber Security Centre website is a valuable resource and good starting point for businesses wishing to ‘health check’ their current cyber security methods, as well as those of individuals and families. Further information can be found here.

Importing or Exporting Health Checks

The introduction of multiple free trade agreements over the last decade has brought with it a shift in compliance activity by Australian Border Force (ABF). While duty evasion is still high on the compliance agenda, with less duties being collected a more comprehensive approach to compliance has been adopted.

Harders Advisory is able to conduct reviews of any import and export activity to ensure compliance with all customs related law. This is especially pertinent for importers or exporters that use multiple service providers to lodge declarations with ABF.

If this is of interest, please contact Harders Advisory for more information.

Supply Chain Outlook

We continue to see various factors contributing to the ongoing decline in spot market rates across all worldwide indices which is extremely more prominent in these last few weeks. There has been an approximate fall in the spot market of 70% in comparison to this same time last year according to worldwide indices. We expect that the market from China to Australia will continue to fall at a more rapid pace than any other trade lane.

One of the pivotal factors has been the wide gap between the current over supply of capacity versus the demand. There are several new entrants in the China to Australia route as well as unexpected extra loader vessels which has increased the available weekly tonnage in comparison to previous years.

In addition, the global pandemic has added to these woes as China continues to adopt their zero-tolerance policy with snap lockdowns still being implemented in pockets of Southern China. Productivity no doubt will continue to be under pressure at all major terminals as they contend with labour shortages due to these issues causing congestion, vessel bunching and delays. With news of Svitzer Australia outlining details of their protected industrial action impacting Far North Queensland, NSW and South Australia we are in for more disruptions to supply chains and it will be imperative for you to stay in touch with our experienced team of professionals to ensure we offer solutions and assistance.  

The outlook for Q1 2023 will see demand softening as we do not anticipate the traditional mini peak that we have been accustomed to experiencing prior to Chinese New Year of previous years. This is due to various factors that will continue to impact the market such as global economic factors including inflationary pressures and interest rate hikes which will affect consumer spending. The increased overseas travel over the festive and summer season in Australia will also influence spending on luxury and non-discretionary items.

We therefore expect pressure on freight rates to continue as carriers fight for market share. Each carrier will act in accordance with their own agenda per port pair and no doubt will take action to prevent further rate erosion by introducing blank sailings. The ball is really in the larger carrier’s court as they may be relentless in their battle to hold on to market sure, however a return to limited port calls may be the only option if economic conditions continue to influence consumer spending.

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