Industry Briefing August 2019
BMSB Season 2019-2020 – are you ready?
Seasonal measures to manage the risk of the Brown Marmorated Stink Bug have been finalised. For the 2019-2020 season, measures will apply to:
- certain goods manufactured in, or shipped from target risk countries, and/or
- vessels that berth at, load or tranship from target risk countries
from 1 September 2019 and that arrive in Australian territory by 31 May 2020 (inclusive). As with previous BMSB risk seasons, importers must comply with these measures or risk possible re-export or destruction of goods on arrival in Australia. Further information regarding the target risk countries and target risk / high risk goods, along with treatment requirements can be found at the Department of Agriculture BMSB information website – http://www.agriculture.gov.au/import/before/brown-marmorated-stink-bugs. When placing orders with your suppliers to ship during the upcoming BMSB season, we recommend that you check with us or with your nominated Customs Broker if your products will be subject to these measures or if your products cannot be fumigated (food for human consumption, pharmaceuticals etc).
Biosecurity Imports Levy Delayed:
The proposed Biosecurity Imports Levy that had been allocated in the most recent budget that was scheduled to take effect 1st July 2019 has now been deferred to a commencement date of 1st September 2019. The levy will be:
- Introduced on sea containers and non-containerised imports
- Imposed on port terminal operators for goods that are unloaded and cleared under Biosecurity Act 2015
- Cost $10.02 per incoming twenty-foot equivalent sea container and $1 per tonne for non-containerised cargo
- May include additional administration fees set by each terminal (and may differ per terminal)
- One per cent of the current cost of importing a container to Australia
Panama Direct Line (PAD) East Coast USA Service Change
The PAD service will again be reverting to a fortnightly service this year. The last weekly vessel will be the Seatrade Blue, departing US southbound from New York on 26th August.
The first fortnightly vessel will be the Seatrade Green, departing US southbound from New York on 9th September.
We have been advised that it is expected to revert to weekly again in February 2020. Obviously we will advise as soon as we know more on this.
BAF / Marine Fuel Recovery / Fuel Adjustment Factor etc.
On 1 January 2020, the International Maritime Organisation (IMO) will implement a new regulation for a 0.50% global sulphur cap for marine fuels. Under the new global cap, ships will have to use marine fuels with a sulphur content of no more than 0.50%S against the current limit of 3.50%S in an effort to reduce the amount of sulphur oxide. Due to these regulations some shipping lines have already implemented a fuel adjustment factor / BAF or similar to cover additional costs. Some shipping lines are levying this currently at $0, however this is expected to increase. Most shipping lines set this fee quarterly, so any change to this pricing will be advised in advance.
ISPM 15 Wood Packaging Compliance for export cargo to Sri Lanka:
Sri Lankan Customs has confirmed that all imports into Sri Lanka must now be ISPM 15 compliant. In order to avoid further delays and additional costs, we strongly urge that exporters ensure any cargo containing wood and/or wooden packaging are compliant with the international ISPM 15 standard. Further information regarding ISPM 15 requirements can be found at the DAWR website below.
Emergency Intermodal Surcharge:
Effective immediately, the Emergency Intermodal Surcharge (EIS) has increased from US$300 per container to US$350 per container for the below referenced cities where D&V is nominated to provide carrier haulage services via the East Coast corridor:
St Paul / Minneapolis, MN
The price increase is due to ongoing issues locating draymen to execute work orders, resulting in delayed pickups and deliveries, as well as substantial cost increases. New regulations requiring commercial trucks to be fitted with electronic logging devices and few drivers in the market have also added to the escalating costs.
Rate Restoration ex Korea, China, Taiwan and Hong Kong:
Rates are continuing to increase with another rate restoration announced for 1st September 2019 as follows – US$300-500/20’ and US$600-1000/40’, depending on the shipping line.
Peak Season ex Asia:
Vessels are starting to fill up, with a number of rollings due to vessel overbookings. Please ensure orders are places early so bookings can be made as quickly as possible.
The following increases are effective immediately:
Origin Air Security Surcharge: Increase of A$0.03/kg, minimum A$8.00
Origin International Terminal Fee: Increase of A$0.07/kg, minimum A$5.00