Insight – October 2023
Higher Diesel Fuel Prices Push Up Transport Operating Costs and Inflation
CTAA has issued a ‘Notice to Industry‘ explaining how rising diesel fuel and excise costs are driving up road transport operating costs and inflation.
Australia’s monthly Consumer Price Index (CPI) indicator rose 5.2 percent in the 12 months to August 2023 according to the latest data from the Australian Bureau of Statistics (ABS) released on 27 September 2023. This was up from 4.9 percent in July. Fuel prices were one of the main factors nudging Australian inflation figures higher.
The inflationary impacts from fuel price rises are consistent with the latest fuel price analysis from the Australian Institute of Petroleum (AIP).
According to the AIP, the National Average diesel wholesale price for the week ending 22 September 2023 was 210.7 cents per litre (cpl). This is up by 10.60 percent in 3 months (@ 190.5 cpl) and by 12.43 percent from the same period last year (187.4 cpl).
There is a concern that the price of diesel will rise above the spikes witnessed in mid-2022 and again in late 2022 when the diesel price edged closer to 230 cpl.
In addition, what customers don’t see directly are the impacts on the complete cost of diesel fuel imposed on transport operators through the decision of the Federal Government to increase fuel excise levied on fuel used in heavy vehicles by 6% per year from July this year (2023) through to July 2026.
Most container road transport operators levy a Fuel Surcharge on their customers as a separate identifiable line-item to account for the fluctuations in diesel prices and the other costs of fuel.
The Fuel Surcharge level set is a commercial matter between transport providers and their customers.
There is no doubt however that rising diesel fuel prices and additional fuel taxes imposed by the Federal Government are putting pressure on operators to adjust their Fuel Surcharges accordingly.
*Source: Higher Diesel Fuel Prices Push Up Transport Operating Costs and Inflation (mailchi.mp)
WiseTech Global acquires MatchBox Exchange
Adds empty container optimization platform to its landside logistics solution
SYDNEY, Australia – WiseTech Global (ASX:WTC), developer of leading logistics execution software CargoWise, today announces it has acquired MatchBox Exchange, provider of a breakthrough online open market platform for the reuse and exchange of shipping containers between operators in the landside logistics space. Headquartered in Australia, MatchBox Exchange was acquired from private shareholders.
MatchBox Exchange operates in Australia, India, Indonesia, Israel, New Zealand, Malaysia, Philippines, Singapore, Taiwan, Thailand and Vietnam. Its customers are comprised of transport companies and their customers, freight forwarders and importers/exporters.
The MatchBox Exchange platform matches those who have a supply of empty containers with those who need them. MatchBox Exchange collaborates with global shipping lines, such as Maersk, CMA-CGM, MSC, Hapag-Lloyd, ONE, HMM and Yang Ming through direct integrations, to enable customers to conveniently reuse containers, or request or offer empty containers across businesses for their import or export needs. This helps landside logistics to be more efficient and productive by enabling faster turn-around times and reducing the cost and inefficiencies of transporting, hiring, de-hiring and storing empty containers.
Richard White, Founder and CEO of WiseTech Global, said: “We welcome the MatchBox Exchange team to WiseTech Global. There are a huge number of containers moving around the globe at any one time with 862 million TEU (Twenty Foot Equivalent Units) in 2022[1]. MatchBox Exchange brings new digital capability to optimize the reuse of shipping containers to reduce unnecessary trucking trips, increase container utilization and improve productivity. This is a great example of true optimization by offering more than mere visibility, creating actionable data for end-to-end process optimization across the supply chain.
“This transaction demonstrates WiseTech’s continued investment in our landside logistics development priority, enhancing our CargoWise ecosystem in the container optimization space, while helping to reduce traffic congestion in ports from unnecessary transport of empty containers. This brings us another step closer to delivering on our vision to be the operating system for global logistics,” he said.
MatchBox Exchange’s CEO, Carl Marchese, said: “Joining WiseTech Global will provide the scale and resources to grow the use of the MatchBox Exchange platform in new landside logistics markets, optimizing the reuse and exchange of empty shipping containers, driving better utilization of trucks and improving collaboration and productivity through digital processes.”
*Source: WiseTech Global acquires MatchBox Exchange | WiseTech Global
US avoids damaging government shutdown as fractured parties manage to compromise
A last minute deal by politicians in the US avoided a government shutdown that would have seen millions of federal employees go unpaid.
The decision by Republican House of Representatives Speaker Kevin McCarthy to turn to Democrats to pass a short-term funding bill pushed the risk of shutdown to mid-November.
The Democratic-majority Senate voted 88-9 to pass the measure to avoid the federal government’s fourth partial shutdown in a decade, sending the bill to President Joe Biden, who signed it into law before the 12:01 a.m. ET (0401 GMT) deadline.
*Source: US avoids damaging government shutdown as fractured parties manage to compromise (yahoo.com)
Port of Brisbane Achieves 5-Star GRESB Rating for Fourth Consecutive Year
For the fourth year running, Port of Brisbane Pty Ltd (PBPL) has received a 5-star GRESB rating – a globally recognised assessment that evaluates ESG performance and sustainability ‘best practices’ for real estate and infrastructure funds, companies and assets worldwide.
Based on data for the FY22 financial year, PBPL’s overall score increased to 98/100 (up from 94/100 in 2020/21), ranking Port of Brisbane as the number 1 port in Australia out of 6 in our division (Port Companies – Maintenance and Operations) and the 31st infrastructure asset out of 681 globally.
PBPL CEO, Neil Stephens, said the Port was delighted to achieve the highest star rating for the fourth consecutive year and to lead the way in the ports industry.
Read the full news release HERE
PBPL’s 2022/23 Sustainability Report is available on their website.
AUSTRALIAN TRUSTED TRADER
Australian Trusted Trader reduces red tape for Trusted Traders at the border, improves certainty in export markets, and expedites the flow of their cargo in and out of Australia, which means faster access to market.
Administered by Home Affairs with the Australian Border Force, Trusted Trader is free and accredits Australian businesses with compliant trade practices and a secure supply chain. Once accredited, businesses have access to a growing range of benefits that simplify their customs processes.
SILA Global is an Australian Trusted Trader (ATT) and we encourage our clients to explore the benefits of being an ATT. If you would like to discuss this further or be guided through the process, our in-house customs broker, Nic Demo, is happy to help!
Nicoll Demo
nicoll@sila.net.au
(+61) 07 3908 1622
HS Codes, Origin Criteria and Other Information on Certificates of Origin under Australia’s FTAs
The Australian Border Force (ABF) have released ACN 2023/43 to provide guidance to importers and licenced customs brokers in situations where differences between the certificate of origin (COO) and the information reported to the ABF via the Integrated Cargo System (ICS) may occur.
The new guidance allows for importers and their licenced customs brokers to self-assess the certificates and only encourages that a rectified COO be sought where multiple errors or discrepancies are identified. A COO can otherwise be relied on as valid as long as there is other information on the COO that clearly demonstrates that the COO relates to the goods in question, the COO is certified by the exporting Parties issuing body or authority and the origin of the goods is not otherwise in question.
The ABF is in the process of amending the ABF website, including a number of affected FTA webpages, to ensure up-to-date information is available to assist importers in making use of this revised information, which will occur in the coming days.
As per Australian Customs Notice 2023-43: “Compliance approach Importers and LCB are reminded to keep records and commercial documentation in accordance with the requirements of the Customs Act 1901.”
Where a short payment results from an incorrectly claimed preferential rate of customs duty, an importer may be protected from liability for an offence against subsection 243T(1) or 243U(1) of the Customs Act 1901 if they make a voluntary disclosure through a written error notice, including that they relied on information on a COO at the time of importation.
A voluntary disclosure must disclose fully, truthfully and voluntarily, the details of the relevant import declaration and the nature of the errors.
A disclosure is taken to be given involuntarily if an error notice is given after the ABF exercises powers under a customs-related law to verify information in the statement (such as a 214AD notice), or an infringement is served relating to the statement or if proceedings have commenced in relation to the statement.”
Read full notice HERE
ANTI-DUMPING COMMISSION
Find goods currently subject to measures in the
dumping commodity register (DCR)
Notable updates – Steel products:
Wind towers
621 – Continuation – China
Wind towers
615 – Review – China
Railway wheels
632 – Continuation – China, France
