Industry Update April/May 2020
Attention: Shipping Manager
Current Shipping Lines BAF and IMO2020 Surcharges:
Further to previous correspondence in regards to the above, below are current costs for BAF/IMO 2020 surcharges with various shipping lines, from USA to Australia, as a guideline:-
CMA CGM – USD259/TEU from East Coast USA to Australia
ANL – USD402/TEU from West Coast USA to Australia
Hamburg Sud – USD575/TEU from West Coast USA to Australia
Hamburg Sud – USD647/TEU from East Coast USA to Australia
We expect to see a reduction in some of these in May.
Additional fees due to COVID-19 at depots in USA
We have been advised that, due to circumstances surrounding the COVID-19 pandemic, warehouses will be instituting new fees for cost recovery around their warehousing services. Warehouses are making substantial investments and consistent changes around their infrastructure to keep their teams safe and business flowing during these unprecedented times. Some of these investments are:-
- Bulk hand sanitiser, sanitising wipe and glove purchases.
- Daily administering of temperature-scanning equipment for each facility.
- Additional bathroom trailers in some locations, which include power, wash stations and sanitiser.
- Multi-daily cleanings of facilities with disinfectant processes and specifically-approved cleaners.
- Re-engineering of facilities to hold onto and store product.
- Additional equipment to endeavour single-use machines and scan guns.
- The creation of multiple shifts to assist with childcare needs and the social distancing of employees to allow for business continuity.
Unfortunately, we will have no option but to pass these fees on when received. The fees will be as follows:-
COVID19 Handling Fee $20 per each LCL, LTL, Container or Truck Load Receipt
COVID19 Handling Fee $0.25 per carton ($1.00 minimum), for each small parcel receipt (i.e. FedEx, UPS etc.)
COVID Storage Fee $150 once per month fee, included with your storage invoice, regardless of your storage amount.
Shipping line blank sailings and general rate increases
Shipping lines are expecting to see a decrease in volumes heading into late May and June and are already looking at possibly blanking some sailings. From USA, shipping lines have postponed their GRI’s previously advised to 1st June 2020. From Asia, we have notices of general rate increases, however so far, these haven’t held in full.
New approved arrangement class 4.7 for fumigation
Toward the end of 2019 DAWR brought in measures for a new approved arrangement class 4.7 for fumigation. If on arrival in Australia, DAWR needs to inspect the container for fumigation or a random inspection and they deem the packing is too close so there is no space for fumigation to penetrate, containers can be stamped as requiring a 4.7 heat treatment to pass DAWR regulations. There are currently only very limited facilities which are offering these types of treatment. The treatment cost itself is well into the thousands and then there are also delays which can mean further costs in container empty equipment return to the carriers. We suggest that you ensure your suppliers are aware and ensure they pack with sufficient space to fumigate if required. Here is a link to the industry advice from DAWR for more information: https://www.agriculture.gov.au/import/industry-advice/2019/144-2019
Malaysia now issuing Electronic AANZFTA Certificate of Origin
We have received notification from the FTA (Freight & Trade Alliance) that Malaysia is now issuing electronic AANZFTA Certificates of Origin, see excerpt below:-
Malaysia’s Ministry of International Trade and Industry have implemented (starting 13 April 2020) electronic endorsement of the Preferential Certificate of Origin by affixing electronic signature and official seal through their ePCO system. The Australian Border Force will accept electronic Certificates of Origin.
This should make it easier for these to be processed and obtained.