Industry Update – December 2022
Changes to Biosecurity Cost Recovery
The Department of Agriculture, Fisheries and Forestry (DAFF) have recently released Important Industry Advice Notice 226-2022 signalling a significant change to their Biosecurity cost recovery arrangement for sea freight Formal Import Declarations (FID) to assist in managing the risk of hitchhiker pest and disease.
The Department will be increasing the Full Import Declaration charge for sea cargo (Sea FID) for each declared consignment arriving by sea from $49 to $58, effective 16th January 2023.
This will result in the Import Processing Fees on Sea FIDs with a value under $10,000 increasing from $99 to $108 and from $201 to $210 for import declarations with a value over $10,000.
Billing arrangements will remain the same with the proposed increase applied to Sea FIDs lodged on or after 16th January 2023.
For more information, please visit: https://www.agriculture.gov.au/biosecurity-trade/import/industry-advice/2022/226-2022
Australia / India Economic Cooperation and Trade Agreement:
Further to our recent notice, The Australian Government has confirmed the completion of domestic requirements to enable implementation of the Australia-India Economic Cooperation and Trade Agreement (ECTA).
From 29th December 2022, tariffs on 85% of Australia’s exports to India will be eliminated and high tariffs on a further 5% of goods will be phased down.
Australian businesses and consumers will be able to take advantage of the new trade opportunities when the ECTA enters into force on 29th December 2022.
For more information, please visit: https://www.dfat.gov.au/trade/agreements/negotiations/aifta/australia-india-ecta-outcomes
(Source: Freight & Trade Alliance)
Undeclared/Mis Declared Hazardous Cargo
We have been advised there has been an increasing number of maritime incidents reported in recent years, as a result, carriers have introduced severe penalties for Undeclared or Mis Declared Hazardous Cargo, these penalties range from USD 15,000 to USD 45,000 per container.
For Export from Australia, all Hazardous goods paperwork must be lodged with the LCL carrier on or before the scheduled hazardous paperwork closing date. The paperwork lodged MUST also accompany the goods when they are lodged at the carrier CFS no earlier than 24 hours prior to the advertised LCL Cut Off Date. Hazardous cargo will not be accepted at the CFS if not accompanied by a MO41/MSDS, any cargo arriving without the required paperwork will be refused loading. MO41 must comply with the IMDG information and we will reach out to you should more information be requested by the carrier.
In the event of Undeclared/ Mis Declared Hazardous cargo, the LCL carrier will hold the boking party liable and responsible for all costs and consequential violations, fines, damages, incidents, claims and corrective measures that result.
Situation in USA:
- Averted rail strike in December 2022
Further to our previous updates, there was another potential rail strike planned earlier this month with close to 115,000 railroaders planning on striking. President Joe Biden called on Congress to immediately pass legislation to avert a possible rail strike. He further stated that without the certainty of a final vote to avoid the shutdown, railroads would begin to halt the movement of critical materials and would cause major disruptions to the supply chain.
As of 2nd of December, the possibility of a strike had been averted, as Joe Biden signed a law agreement. The tentative agreement provides average employee compensation and benefits, as well as a 24% wage increase over a 5-year period from 2020 to 2024. However, it falls short of the unions’ central demand: paid sick leave.
We will update with more information once it becomes available.
(Source: BBC News/Freight Waves)
LCL Origin Export Receiving Charge from USA to Australia and New Zealand Increase:
From 16th January 2023, Origin Export Receiving Charge will increase for all LCL cargo moving from the USA to Oceania, the new surcharge will be:
USD 27.5 per w/m
Minimum USD 55
Maximum USD 140
LCL IMO2020 Surcharge from USA to Australia and New Zealand:
From 1st January 2023, IMO2020 surcharge will change for all LCL cargo moving from the USA to Oceania, the new surcharge will be:
USD 24 per w/m or minimum
North East Asia to Australia/New Zealand General Rate Increase:
Shipping lines operating in North East Asia to Australia/New Zealand trade lane have announced an implementation of a General Rate Increase effective from 15th of December 2022. The increase varies from carrier to carrier, the average being USD 500 per 20GP and USD 1000 per 40GP/HC.
LCL applies proportionally
Destination Port Infrastructure Increase for LCL shipments:
Destination Port Infrastructure surcharge for all LCL shipments coming to Australia will increase effective 01st January 2023. The surcharge will be as follows:
AUD 9 per w/m or minimum
Sydney Empty Container Park Increase:
Sydney Empty Container Park surcharge will increase effective 3rd January 2023. The updated empty container park fee in Sydney will be AUD 165 per container.
Melbourne Empty Container Park Increase:
Melbourne Empty Container Park surcharge has increased to AUD 115 per container, effective immediately.
Fuel Levy Increase in Adelaide:
Fuel Levy in Adelaide has increased to 36.5% for all FCL pickups/deliveries, effective immediately.
Please note this is applicable for pickups and deliveries within metro areas only and is subject to change – fuel surcharge for regional and interstate areas will be higher and will vary depending on location.
We will keep you updated with further information.