News
Industry Update – August 2021
Attention: Shipping Manager
Brown Marmorated Stink Bug (BMSB) Seasonal Measures 2021-2022 – New Country Added To List
The Department of Agriculture, Water and the Environment has advised that a new country has been added for the 2021-2022 BMSB Seasonal Measures. The list of target risk countries will now include Poland in addition to target risk countries identified for the 2020-21 BMSB risk season.
Emerging risk countries for the 2021-22 BMSB risk season include Belarus, Malta, Sweden, United Kingdom, and Chile and may be selected for a random onshore inspection.
Target Risk Countries
Target High Risk Cargo
Goods that fall within the following tariff classifications have been categorised as target high risk goods and will require mandatory treatment for BMSB.
| 36 – Explosives; pyrotechnic products | 74 – Copper and articles thereof | 83 – Miscellaneous articles of base metals |
| 44 – Wood and articles of wood | 75 – Nickel and articles thereof | 84 – Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof |
| 45 – Cork and articles of cork | 76 – Aluminum and articles thereof | 85 – Electrical machinery and equipment and parts thereof |
| 57 – Carpets and other textile floor coverings | 78 – Lead and articles thereof | 86 – Railway or tramway locomotives, rolling-stock and parts thereof |
| 68 – Articles of stone, plaster, cement, asbestos, mica or similar materials | 79 – Zinc and articles thereof | 87 – Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof |
| 69 – Ceramic products | 80 – Tin and articles thereof | 88 – Aircraft, spacecraft, and parts thereof |
| 70 – Glass and glass ware | 81 – Other base metals; cermet’s | 89 – Ships, boats and floating structures |
| 72 – Iron and steel | 82 – Tools, implements, cutlery, spoons and forks, of base metal | 93 – Arms and ammunition; parts and accessories thereof |
| 73 – Articles of iron or steel |
For the 2021-22 BMSB risk season, measures will apply to:
- certain goods manufactured in, or shipped from target risk countries, and/or
- vessels that berth at, load, or transship from target risk countries
The measures apply to goods that have been shipped between 1 September 2021 and 30 April 2022 (inclusive) . Target high risk goods shipped between 1 September 2021 and 30 April 2022 (inclusive) require mandatory treatment.
High risk cargo originating from (that is to say, manufactured in) and / or shipped from high risk countries shipped as roro / break bulk / open top / flat rack, MUST be fumigated prior to departure and loaded on the vessel within 120 hours of fumigation being completed – Cargo that is not fumigated or shipped outside if the 120 hour window, will be directed for export by AQIS.
Further information on the BMSB seasonal measures are available on the BMSB webpage – Seasonal measures for Brown marmorated stink bug (BMSB) – Department of Agriculture.
Sea Container Measures To Protect Against Khapra Beetle
Please see below extracts from Australian Quarantine and FT Alliance in relation to measures introduced to control the spread of the Khapra Beetle in Australia.
Khapra beetle (Trogoderma granarium) is a destructive pest that can reproduce rapidly in stored products under hot conditions and is a significant biosecurity risk to Australia. Khapra beetle is found throughout Asia, Africa, the Middle East and Europe. The department has identified the following countries as those where khapra beetle is present:
Khrapa beetle target risk countries
- Afghanistan
- Albania
- Algeria
- Bangladesh
- Benin
- Burkina Faso
- Côte d’Ivoire (Ivory Coast)
- Cyprus
- Egypt
- Ghana
- Greece
- India
- Iran, Islamic Republic of
- Iraq
- Israel
- Kuwait
- Lebanon
- Libya
- Mali
- Mauritania
- Morocco
- Myanmar
- Nepal
- Niger
- Nigeria
- Oman
- Pakistan
- Qatar
- Saudi Arabia
- Senegal
- Somalia
- South Sudan
- Sri Lanka
- Sudan
- Syrian Arab Republic
- Timor-Leste
- Tunisia
- Turkey
- United Arab Emirates
- Yemen
Additional measures under Phase 6A of the khapra beetle urgent actions commenced on 12 July 2021. These additional measures introduced mandatory offshore treatment requirements for all FCL/FCX sea containers packed with all types of goods in a target risk country and unpacked in a rural grain growing area of Australia.
Summary of measures
The below table provides a summary of Phase 6A measures.
Note: Failure to comply with these requirements will result in export of the container upon arrival in Australia.
| Type of target risk container | Implementation date | How to comply |
| FCL/FCX container where high-risk plant products are packed into the sea container in a khapra beetle target risk country. | 12 April 2021 (containers exported on or after 12 April 2021) |
Containers must be treated offshore prior to packing* using an approved treatment option and accompanied by a valid treatment certificate. *Note: treatment of containers already loaded with goods is acceptable for methyl bromide treatment only. |
| FCL/FCX container where other goods are packed into the sea container in a khapra beetle target risk country and will be unpacked in a rural grain growing area of Australia. | Will commence on 12 July 2021 (containers exported on or after 12 July 2021) | Containers must be treated offshore (prior to packing*) using an approved treatment option and accompanied by a valid treatment certificate. *Note: treatment of containers already loaded with goods is acceptable for methyl bromide treatment only. |
To assist in preparing stakeholders for these changes, a specific web page outlining the sea container measures is available. This web page can be accessed at awe.gov.au/khapra-containers.
Situation in USA and Canada:
- Port congestion
Congestion previously reported at the ports of Los Angeles and Long Beach continues to deteriorate. Oakland and Seattle ports are also experiencing port congestion. These disruptions have been causing major delays for both vessels at the dock as well as for truckers, as trucking turn-around times at the terminal increase. The vessels at anchor continue to increase due to the severe congestion at west coast ports. Vessel waiting times at these ports are between 4 to 7 days, while on the east coast the waiting times are between 2 to 4 days.
To avoid delays due to congestion across Oceania and America’s ports, some shipping lines that offer services between these regions have adjusted their sailings and will be omitting numerous ports to protect their schedule reliability. One of the major East Coast carriers is reducing their vessels from weekly to fortnightly sailings, meaning half the space in the current environment.
The situation is similar in Canada. The wildfires in British Columbia that occurred earlier last month have adversely affected inland rail services. The rail disruption has led to additional delays and congestion at the port of Vancouver. Dozens of vessels were backlogged and port capacity was further strained. Although rail operations have resumed, the overall backlog is significant and will take weeks to clear up.
- Equipment and labour shortage
The shortage of equipment, chassis and truckers has become a major issue, impacting the Southern California inland rail ramps significantly. These shortages have resulted in delays and additional charges for inland services. Furthermore, due to the significant shortage of equipment and truckers, along with serious intermodal issues across the country, more carriers have refused to quote and offer to/from door shipments in the USA.
Airfreight rates from the US continue to increase due to the limited space and restrictions of passenger flights into Australia.
Situation in Europe:
The recent floods in Europe have exacerbated the already strained shipping industry. The devasting disasters have damaged railways and disrupted inland transportation significantly and this will take months to recover. Many carriers have had their vessels omit major North European hubs as port congestion worsens and in an effort to avoid the persistent delays and protect their schedule reliability (Source – The Journal of Commerce).
Furthermore, the yard occupancy and container dwell times at many container terminals in Europe remain at critical levels despite all measures that have been taken so far. Some vessels coming to Australia from Europe have been rolled for up to 2 weeks due to stability problems.
The Airfreight market is also facing many challenges. The price of shipping cargo by air has increased substantially in the past year and the rates are forecasted to rise even higher through the peak season, due to the unprecedented demand for air shipping, along with its constrained capacity. Bookings have to be booked well in advance in order to secure space due to the extremely limited capacity out of Europe.
Situation in Asia:
- Port congestion and service delays
Terminal operations at the port of Yantian were suspended due to COVID-19 cases earlier in June. Although the terminal has been reopened and productivity is now back to normal levels, the closure has negatively impacted equipment availability and vessel schedules at the port. Port congestion has escalated and extended to other nearby ports like Shekou, Nansha and Hong Kong due to many shipping lines having omitted Yantian port and diverted their vessels to these ports. It has been reported that the backlog of shipments in the factories and warehouses in the Shenzhen region will take at least a month to clear (Source – American Shipper).
Main transhipment ports in South East Asia – Singapore and Port Klang are still experiencing severe congestion. For this reason, one carrier has suspended all shipments from Australia to outports in Malaysia, Indonesia and Brunei to avoid major delays at these hubs. Some shipping lines have also declined to quote or offer service for shipments from India to Australia due to limited space, major backlogs and delays at origin as well as at transhipment hubs.
- Limited space
As we are going into the peak shipping season, there will be strong export demand from Asia. The rising demand will put high pressure on space availability, which has been already extremely limited. Some shipping lines are only prioritising the Far East and have suspended their services from other regions due to congestion issues.
Furthermore, due to the continuing delays, port congestion and ongoing protected industrial action at Patrick Terminals in Sydney, a major carrier offering services from Asia to Australia will temporarily omit Sydney port fortnightly. Another carrier will be omitting Brisbane port and proceed directly to Sydney on one of their services from Asia due to the ongoing disruption to the Oceania ocean network.
- Equipment shortage
Equipment shortage has been an industry-wide challenge in the Asia Pacific, especially 40’ containers out of China. Many exporters are encouraged to switch to 20’ containers due to the serious shortage of 40’ containers.
- Typhoon In-Fa in China
Many seaports, airports and rail hubs in Eastern China, including Shanghai port – the world’s largest and busiest seaport, were forced to close as a result of severe weather conditions in the region at the end of last month. Although the situation has returned to normal, major freight delays are expected due to the backlogs and disrupted operations at the terminals (Source – gCaptain).
- COVID-19 outbreak in South East Asia
Many countries in South East Asia have gone back into lockdown due to the pandemic outbreak caused by the new COVID variant – Delta. New COVID restrictions have been introduced, which has disrupted the regional and global supply chains adversely. Factories in Malaysia are forced to reduce or shut down operations and limit workforce capacity to comply with the new measures. Many businesses in Ho Chi Minh City, Vietnam were shut down or suspended their operations for not meeting the new COVID-19 requirements. Most factories are running between 5% to 70% below standard capacity. Other countries in the region are also facing similar challenges (Source – The Load Star).
Situation in New Zealand:
Due to the ongoing port congestion and delays across New Zealand’s ports, some carriers have announced they will omit Auckland port to mitigate delays from the continuing suspension of berthing windows. Another carrier will continue alternate omissions between Port Chalmers and Napier on their service to protect schedule reliability.
In addition, some shipping lines have temporarily suspended their service from Australia to New Zealand due to space and equipment restrictions, and to mitigate cargo delays and rollings.
USA Emergency Intermodal Surcharge:
From 20th August 2021, an Emergency Intermodal Surcharge will be assessed on all U.S import and export shipments. The surcharge will be as follows:
Imports:
USD 350 per container on all US import shipments that require a motor only move, and on all Canada shipments that require a rail move.
USD 1,000 per container on all US import shipments via US West Coast or Canada West Coast that require a rail or rail/motor move.
USD 350 per container on all US import shipments via US East Coast or Canada East Coast that require a rail or rail/motor move.
Exports:
USD 350 per container on all US export shipments that require a motor only move or a motor/rail move.
General Rate Increase from Europe to Australia:
We have been advised of a General Rate Increase to be implemented on cargo originating from North Europe and the Mediterranean to Australia, effective 01st August 2021 as follows:
USD 400 per 20GP
USD 800 per 40GP/HC
LCL will be applied accordingly.
Peak Season Surcharge from North Europe and the Mediterranean to Australia:
Announcements were made in relation to a Peak Season Surcharge for all inbound shipments from North Europe and the Mediterranean to Australian ports, effective 18th August 2021. The surcharge will be:
USD 400 per 20GP
USD 800 per 40GP/HC
General Rate Increase from Australia and New Zealand to Europe:
From 17th August 2021, there will be a General Rate Increase for all cargo originating from Australia and New Zealand to all destinations in Europe. The increases will be:
USD 400 per 20GP
USD 800 per 40GP/HC
Suez Canal Surcharge Increase from Australia and New Zealand:
One shipping line has announced an increase in Suez Canal Surcharge for all shipments moving from Australia and New Zealand and transiting through the Suez Canal, effective 01st August 2021. The new surcharge will be:
USD 50 per 20GP
USD 100 per 40GP/HC
Congestion Surcharge for Feeder Services – Rotterdam, Netherlands:
As the terminal operations in Rotterdam port, one of the largest hubs in Europe, are heavily congested and the port is only operating at low productivity, one carrier has implemented a congestion surcharge for all cargo departing/arriving from/to Rotterdam port using feeder services effective 21st July 2021, as follows:
EUR 20 per 20GP
EUR 40 per 40GP/HC
General Rate Increase from North East Asia to Australia and New Zealand:
From 15th July 2021, there has been a General Rate Increase applied to all cargo moving from China, Hong Kong, Taiwan, Korea and Japan to Australia, the increases were:
USD 300 per 20GP
USD 600 per 40GP/HC
Another carrier operating on this route has implemented a higher increase effective 01st August 2021, as follows:
USD 500 per 20GP
USD 1,000 per 40GP/HC
For shipments coming to New Zealand, the above increases will be implemented from 01st September 2021.
LCL will increase by USD 30 per w/m.
Peak Season Surcharge from North East Asia to Australia:
A Peak Season Surcharge has been announced for all exports out of China, Macau and Hong Kong to Australia effective 01st August 2021, as follows:
USD 500 per 20GP
USD 1,000 per 40GP/HC
For shipments out of Taiwan, the above surcharge will be implemented from 01st September 2021.
Another carrier operating on the same route will apply a higher surcharge for all cargo from China, Hong Kong, Taiwan, Mongolia, Japan, Korea to Australia effective 16th August 2021, as follows:
USD 750 per 20GP
USD 1,500 per 40GP/HC
General Rate Increase from South East Asia to Australia and New Zealand:
A General Rate Increase has been applied on all inbound shipments from Singapore, Vietnam, Indonesia, Malaysia, Myanmar, Philippines, Thailand and Cambodia to Australia and New Zealand effective 01st August 2021. The increases were:
USD 500 per 20GP
USD 1,000 per 40GP/HC
From 08th August 2021, there will be another General Rate Increase for this route, the increases will be:
USD 300 per 20GP
USD 600 per 40GP/HC
LCL will be applied accordingly.
General Rate Increase from South Asia/Indian Subcontinent/Middle East Gulf to Australia:
Announcements were made in relation to a General Rate Increase for all inbound shipments from South Asia, the Indian Subcontinent, Middle East Gulf to Australian ports effective 08th August 2021. These increases will be:
USD 300 per 20GP
USD 600 per 40GP/HC
For shipments out of Bangladesh, one carrier has applied a higher General Rate Increase from 01st August 2021, for all shipments to Australia, as follows:
USD 500 per 20GP
USD 1,000 per 40GP/HC
LCL will be applied accordingly.
Container Drop Off Fee from Australia to New Zealand:
From 08th July 2021, a carrier has implemented a new requirement for all containers originating from Australia and discharging in Tauranga with the final destination of Auckland and Auckland Metroport, that equipment has to be returned to the Tauranga depot.
If the clients choose to return the equipment in Auckland, there will be a Container Drop Off Fee applied, as follows:
USD 1,000 per container
We will keep you updated with any further information.
