SILA Global Industry News 14/05/21


Patrick Terminal Sydney – MUA Industrial Action – Sydney Autostrad

Notice has been received that there will be Protected Industrial Action at Patrick Terminal – Sydney Autostrad as per below:

A ban on overtime at Port Botany from 6am Thursday 20th May 2021 for 14 days
A ban on working of shift extensions at Port Botany from 6am Thursday 20th May 2021 for 14 days.

Patrick Terminals is committed to minimising the impact on customers and the supply chain.

Ocean freight pricing – current trends set to continue

After a period of stability, carriers are preparing to roll out new General Rate Increases (GRI’s) – expected to come into effect 1st June. Maritime consultant Drewry has recently reported that it expects the “extreme freight rates” on the transpacific and Asia-Europe trades “will last for at least another three to five months”. It added: “There is also a phenomenon of contagion, where extreme freight rates spread from trade route to trade route. This happened last year, when extreme rates on the transpacific spot market were followed by extreme rates on Asia-Europe. There is strong evidence that the transatlantic trade spot market is next in line.

The full article, including FBX readings can be found here

Container Chain Notification Fee Increases

We have been advised that DP World Logistics Parks 1 & 2 as well as MCS Cooks have reviewed and will be increasing their Empty Container Return Notification Fee – also known as the Container Chain booking fee. The charge increases are substantial, at approx. 35% and unfortunately we expect that more depots will follow this lead and increase their fees accordingly. The revised fees will be effective 1st June 2021 and will continue to be processed via the Container Chain booking system. We will continue to keep you informed as other depots adjust their fees.

Changes to Rail Tagging Process at Hutchison Terminal

Due to new processes implemented at Hutchison Terminal, all containers destined for Newcastle via Rail Services must have the tagging functions completed by the Rail operator. There is no longer the option for forwarders or customers to process their own rail tags and releases directly. This will incur additional rail tagging charges per container and will be included in SILA’s ancillary charges accordingly. If you require further information please contact your SILA representative.

Customs & Trade: Federal Budget 2021-22

Andrew Hudson from Rigby Cooke has reviewed the 2021-22 Federal Budget and has identified the impact on Customs, Trade and Transport industry, including:

Continued funding of $118.2million to provide the International Freight Assistance Mechanism until the end of September 2021.
$198.2 million over four years to assist export diversification and growth
Additional funding of $37.4 million over three years to provide ongoing support to “modernise”the Australian trade system.
Click to read the full article here

Rate Increase Australia/NZ to South East Asia to Indian sub-continent, Middle East Gulf region Red Sea regions.

We have advised notice from ANL that for the period of 22nd May – end of June 2021 there will be a Cost Recovery Increase to rates from Australia & New Zealand to all India Sub-Continent, & Gulf region & Red Sea regions.
According to ANL representatives “The shipping industry globally is facing a number of unprecedented issues such as:

Unprecedented demand and subsequent shortage of containers globally
Vessel charter rates at close to record highs and also a shortage of vessels in the charter market
Serious port congestion around the globe “

As a consequence ANL will be implementing a Cost Recovery program with a rate increase for cost recovery of USD700/TEU from Australia and New Zealand to all ISC & Gulf region & Red Sea effective 22nd May across all customers until end of June 2021. We are reviewing Q3 rates and will advise further in due course.

If you have any questions regarding any of the above, please contact your local SILA representative.

Thanks & kind regards

SILA Customer Service