Industry Update – July 2023

Attention: Shipping Manager

Increase to Full Import Declaration charges effective from 1^st July 2023:

The Department of Agriculture, Fisheries and Forestry have recently released notice of completion of its comprehensive review of the biosecurity cost recovery arrangement. The outcome proposes changes to existing regulatory charging to align fees and charges with the cost to deliver biosecurity and imported food activities.  The wide-ranging fee adjustments include the following:-

• Full Import Declaration charge, effective 1^st July 2023:

For each consignment arriving by sea (Sea FID) – from $58 to $63

For each consignment arriving by air (Air FID) – from $38 to $43

 

• Import Processing Fees on Sea FIDs:

With a value under $10,000 – from $108 to $113

With a value over $10,000 – from $210 to $215

 

• Import Processing Fees on Air FIDs:

With a value under $10,000 – from $88 to $93

With a value over $10,000 – from $190 to $195

 

Billing arrangements will remain the same with the proposed increase applied to FIDs lodged on or after 1^st July 2023.

 

Situation in USA:

• West-Coast labour disruptions

Earlier in the month, the Pacific Maritime Association and Unions announced a tentative agreement on a new six-year contract. Unions have now turned their full attention back to the operation of West Coast ports. Reaching an agreement prior to peak season was crucial for all parties. Doing so avoided political fallout for the Biden administration from pre-holiday congestion headlines. Volumes from the West Coast have been seasonally rising, in line with pre-pandemic patterns. The Port of Los Angeles handled 409,150 twenty-foot equivalent units in May, up 19% from April and up 64% from the recent low in March.

• Equipment availability

 Due to persistent congestion nationwide, chassis shortages continue to be observed resulting in potential delays for pickup and delivery.

• Terminal updates

 We have been informed that vessels continue to be pushed further off the proforma schedule causing blank sailings.  This, along with port congestion and the continuous increase of import volume within the last two years, has affected operations in almost all areas of the US.

US East Coast:

• NY/NJ – Vessel waiting time up to 1 day.

US Southeast:

• Savannah – Vessel waiting time up to 2 days.
• Charleston – Vessel waiting time up to 1 day.

US West Coast:

• Los Angeles/Long Beach – Vessel waiting time up to 4 days.
• Seattle – Vessel waiting time up to 3 days.
• Oakland – Vessel waiting time up to 3 days.

• Rail Updates

 BNSF

• Rail ramp is currently experiencing congestion in Chicago, Columbus, and Los Angeles. There are delays in picking-up and delivering containers at these locations.

UP/LAX/LGB

• Rail ramp is currently experiencing congestion in Los Angeles. There are delays in picking-up and delivering containers at this location.

(Source: Freightwaves)

 

Situation in Asia:

• Chinas export dwell times fall as import dwell times rise

 According to recent data, the difference between gate time and vessel arrival/departure times has fallen to 4.8 days for Chinas exports, a figure which has held steady since March.  Import dwell times have been slowly rising since the start of March, now reaching 5.2 days.

(Source: Seatrade Maritime)

• China Airfreight Market

 The southern China airfreight market remains strong, though this week indices have shown that global demand is still weak for airfreight. Indexes showed a slight decline in rates, after a mild bounce a week earlier.

(Source: Loadstar)

• Cyclone threatens India’s west-coast ports

All Indian ports along the coastline of Gujarat have halted operations until further notice as Cyclone Biparjoy approaches the north-west corridor of the country.  Across the ports, ships have been shifted from jetties and authorities have been told to halt further vessel movements and immediately secure harbour equipment.  The affected ports include Mundra, Pipavav and Hazira.

(Source: Loadstar)

• Power outage hits Indian Port of Pipavav

Earlier in the month Indian shippers experienced another blow after only just recovering from recent cargo flow problems at Nhava Sheva Port.  APM Terminals Pipavav has temporarily shut down operations due to a power outage, caused by the extreme weather of Cyclone Gujarat.  There is a potential for delays in movements over the coming days/weeks, as power is restored and port operations resume at Pipavav.

 

Situation in Europe:

• North Europe container spot rates falling

 Container spot rates from Asia to North Europe still remain under pressure, while transpacific rates have been boosted by potential supply chain issues linked to the US west coast industrial action and Panama Canal drought restrictions.  Mediterranean markets meanwhile, are proving to be more resilient.

(Source: Loadstar)

 

Adelaide union stoppages:

Over the past week, Flinders Empty terminal has not been operating due to union stoppages. This is expected to cause some delays with de-hiring containers.  Flinders Adelaide Container Terminal has not been affected during this period.

 

Airfreight – Destination Airline Terminal Fee Increase:

Destination Airline Terminal Fee applicable for all airfreight cargo coming to Australia will increase effective from 1^st July 2023. The new fee will be:

Minimum AUD 72

AUD 0.72 per kg

 

Airfreight – Import Document Fee Increase:

Import Document Fee applicable for all airfreight cargo coming into Australia has increased to AUD 82 per HB, effective from 1^st July 2023.

 

Increase to Empty Container Park Surcharge for Melbourne, Adelaide and Fremantle:

Destination Empty Container Park Surcharge has increased for Melbourne, Adelaide and Fremantle, effective from 1^st July 2023. Updated surcharges are given below:

Melbourne Destination Empty Container Park Surcharge = AUD 130 per container.

Adelaide Destination Empty Container Park Surcharge = AUD 92 per container.

Fremantle Destination Empty Container Park Surcharge = AUD 95 per container.

 

Melbourne Destination Port Infrastructure Surcharge Increase:

Destination Port Infrastructure Surcharge in Melbourne has increased to AUD 220 per container, effective from 1^st July 2023.

 

Adelaide Timeslot Booking Fee Increase:

Destination Timeslot Booking Fee in Adelaide has increased to AUD 65 per container, effective from 1^st July 2023.

We will keep you updated with any further information.