East Asia COVID-19 Update
To Valued Customers & Partners,
COVID-19 cases continue to cause havoc throughout East Asia, impacting the global logistics & supply chain.
Please be advised of below COVID-19 updates for China & Taiwan.
TAIWAN
Taiwan, home to many of the world’s largest technology companies, reported 30,035 domestically transmitted cases of Covid-19 on Thursday, the highest daily total since the pandemic began and more than double the 15,033 local cases disclosed on April 30, according to the Central News Agency.
Read full article hereCHINA
Since March 2022, major outbreaks of the Omicron variant of COVID-19 have occurred in many parts of China. These outbreaks have resulted in lockdowns, highway closures and other restrictive measures across China, which have severely disrupted the operations of countless shippers and truckers.
Read full article hereShanghai said on Friday (May 6) it has brought China's worst outbreak of Covid-19 under effective control, following a month-long lockdown of nearly 25 million people, with the authorities vowing to stand by their Covid Zero strategy despite mounting economic costs.
Read full article here
In the meantime, should you have any concerns, please don't hesitate to reach out to your SILA Sales representative.
Thank you,
SILA Global Pty Ltd
Industry News – 04 May 2022
INDUSTRY NEWS
Global Schedule Reliability Improves Slightly
Shipping data analyst Sea-Intelligence has reported an improvement in schedule reliability based on an analysis of 34 different trade lanes.
It said global schedule reliability is gradually increasing, the latest report recording a marginal month-on-month improvement for March 2022.
Read the full article here.
ALC Outlines Election Priorities
The Australian Logistics Council (ALC) has outlined five policy priorities to achieve a more sustainable and efficient freight and logistics supply chain.
It has called on Federal election parties and candidates to adopt them in the national interest.
Since the onset of the global pandemic, the freight and logistics supply chain has faced back-to-back challenges, natural disasters, geopolitical tensions, increasing costs, labour constraints and unrelenting increases in demand.
Read the full article here
New Public Health Order Amendment
Amendments to the Public Health (COVID-19 Air and Maritime Arrivals) Order (No 1) 2022 commenced at 12.01am on Saturday, 30 April 2022. A copy of the amendment order as gazetted can be accessed here.
Read full media release here.
DAWE Import Industry Advice Notices 2022
Keep up to date with the latest DAWE import industry notices here
ABF Industry Notices 2022
Keep up to date with the latest ABF industry notices here
Australian Steel News
VIEW APRIL 2022 NEWSLETTER
SILA Global Internal Updates
SILA Global Updated Ancillary Tariff Location
As of June 2022, the Ancillary Tariff location will be available only through our SV3 portal here. If you do not have an SV3 user log in, please kindly reach out to sales@sila.net.au to request your user log in details.
SILA Global News
Keep up to date with the latest SILA Global news here
Hutchison Ports Ignores National Guidelines for Landside Stevedore Charges
28-APRIL-2022
To Valued Customers & Partners,
We would like to share the below notice from Container Transport Alliance Australia (CTAA) regarding Brisbane & Sydney Terminal Infrastructure Levies:-
In the last few weeks, Hutchison Port Australia (HPA) has advised increases in its landside Terminal Infrastructure Levies at its Brisbane and Sydney Container Terminals:
- Brisbane: Notice issued online on 30 March 2022 of an increase to $162.10 per full container from 1 May 2022 (i.e. 33 days’ notice). This is an increase of 21.79% (from $131.10).
- Sydney: Notice issued online late on Friday, 22 April 2022 (ahead of a long weekend) of an increase to $159.98 per full container from 1 June 2022 (i.e. 39 days’ notice). This is an increase of 17.20% (from $135.65).
It is very concerning that HPA has chosen not to adhere to the voluntary National Guidelines for Landside Stevedore Charges endorsed by all Federal & State Transport Ministers and published by the National Transport Commission (NTC): National Voluntary Guidelines for Landside Stevedore Charges.
HPA has ignored the agreed voluntary protocols, with notice periods less than 60 calendar days, and no detailed rationale for the significant percentage increases advised.
And, even more concerningly, transport operators and their customers are not seeing any land landside productivity improvements or offsets for these higher prices.
Transport operators and their landside customers are now paying higher prices, again with no ability to negotiate the landside fees imposed, with scant rationale provided for the increases, yet are demonstrably copping poor terminal performance.
The question remains … is this fair and reasonable?
The increases now make the Infrastructure Levies charged by HPA in Sydney and Brisbane the highest landside infrastructure fees of any other container terminal in Australia.
If forwarders, importers, and exporters want to avoid these high landside charges at HPA, as well as allow their transport providers to avoid lengthy truck delays, then it may pay them to consign their ocean freight with shipping lines that do not use Hutchison Ports Australia (HPA) for their stevedore services in Sydney or Brisbane.
Read more detail in a CTAA Media Release
In the meantime, should you have any concerns, please don't hesitate to reach out to your SILA Sales representative.
Thank you,
SILA Global Pty Ltd
Operational Update - 22-April-2022
IMPORTANT - Operational Update from SILA Global 22-April-2022
We would like to take a moment to provide an update on current operational capacity.
In the last few months, we have taken steps to increase our transport service supplier base to increase capacity, and our base has almost doubled. However, capacity remains an issue due to the far-reaching nature of the supply chain issues. Regrettably, we have not been able to improve turnaround times as much as we would have liked, especially in Melbourne. Since we started alerting clients to issues & delays within the domestic supply chain, there has been little to no improvement with continued deterioration in some states; our biggest ‘bottleneck’ currently occurring in Melbourne with 4 to 6 week unpack & re-delivery delays in some cases. Nevertheless, containers continue to arrive. The weeks this month are short and short staffing is a constant issue, which is now being seen in other sectors, as you have no doubt seen on the news. Here are some good examples [ article link ] [ article link ]. Repercussions are extending to all stakeholders and it is causing more pressure to an already strained situation. If you may have missed some notices you can find them on the news section of our website [ SILA News ] or check your mailboxes by searching SILA Global Customer Service or sales@sila.net.au.
Operational Update – 3PL
The following information applies to containers which SILA Global have been requested to unpack, de-hire empty and deliver the contents.
We ask that anything sent to SILA has a 21-days free detention time, however, this does not confirm we will pay any detention costs. The free time recommendations are to assist in mitigating any detention costs that may be incurred due to the extended delays which we have been advising of for some time. SILA Global cannot be held liable for detention charges due to issues beyond our control, once again please refer to SILA News and your inbox for further info. We have assisted clients in writing to shipping lines requesting extended free time, detention reductions and support during this difficult period but to this point little to no relief has been provided. We suggest that our clients write to their nominated shipping lines or freight forwarders and request assistance with additional free time or reductions in already issued detention invoices during this period of unprecedented difficulty. We are here to help and if you need any assistance composing a submission, please reach out. I would also take this time to remind clients that the Freight & Trade Alliance (FTA) will be making a submission to the Productivity commission on detention practices, and you can find further information in our notice here.
Shipments sent to SILA will be handled as ‘normal’, however we need to be clear that there are delays so customers & receivers need to expect such delays. We have sent many notices on this over the last few months and if not already done so, please consider increasing lead times to receivers of at least 4-6 weeks in Melbourne & Fremantle and at least 2-3 weeks in other major cities such as Sydney & Brisbane. As always, we will do our very best to unpack cargo as soon as possible but we cannot be held liable for detention costs. We understand that other transport providers have been unable or unwilling to accept work, we have made the decision not to do this so that our customers still have options for the movement of containers to avoid terminal storage and facilitate deliveries but, once again, we cannot be held solely liable for detention by making this decision to continue providing a service in order to assist clients, albeit not operating at optimal levels.
As an alternative we ask that Customers speak to their receivers to see if they have capacity and equipment to unpack containers themselves. We understand most of our customers utilising SILA for unpack operate on an FIS basis however this option needs to be seriously considered for receivers to have stock quicker and assist in avoiding container detention. Any customers that can unpack their containers can have boxes dropped to their yard by side-loader which has a much quicker turnaround time, further info below.
If you have options available with alternative carriers, especially Melbourne and Fremantle, we suggest that containers are directed to them or, if already in SILA nominated yard, arrangements can be made for the container to be collected. While our business is here to provide services to our customers, and we are doing the best we can provided the circumstances, however if suitable alternatives can be found by customers, we are happy to facilitate or assist with movements to other sites nominated by our clients.
*Note: To assist in decision making, our turnaround times in each our major ports are approximately as follows: -
- Melbourne: 4-6 weeks from vessel availability
- Fremantle 3-4 weeks from vessel availability
- Sydney: 2-3 weeks from vessel availability
- Brisbane: 2-3 weeks from vessel availability
This is an approximate average. The situation remains fluid and can vary depending on many factors such as container size, location in depot stacks, product types, delivery location, shipping line, available free time etc.
Operational Update – FCL
The following information applies to containers which SILA Global have been requested to deliver direct to customers as full containers either by side-loader or standard trailer.
Side-loader and standard trailer capacity has not been as greatly impacted as 3PL unpacking work. Side-loaders are in demand but given the nature of the work, and reliance on less resources, the capacity is easier to manage. In Melbourne & Fremantle we have a lot more capacity for side-loader delivery than unpack and are currently able to deliver containers to sites within 7-10 days of the vessel availability. Sydney and Brisbane are around 5-7 days.
*Note: In almost all cases, transport providers have increased their empty notification period from 48hrs to 72hrs. So, when containers are empty please allow 72hrs for the collection of the empty container from empty notification. Given these circumstances, we ask clients to have a minimum of 14free days on their container bookings to allow enough time for collection from terminal, staging at depot, delivery to site, unpack at site and subsequent de-hire with 72hrs of empty notification.
Operational Update - Break Bulk
The following information applies to Break Bulk which SILA Global have been requested to deliver to customers.
Arrival tonnage of Break Bulk has more than doubled, which is mainly due to the huge rise in costs of shipping FCL containers. Vessels with increased tonnage are arriving, resulting in block stacking issues at terminals with newly arrived cargo being stacked in front of older cargo, as well as splitting and sorting issues. We also understand that some vessels are diverting from Newcastle in favour of Port Kembla and some lines have a congestion surcharge in place for Newcastle and Fremantle. Add to that the overall reduction in transport capacity due to lack of drivers and trucking equipment, the situation here is not much better. Again, depending on the port and other factors, turnaround times can be 4 weeks for coiled product and a few months for long product with Fremantle and Newcastle being the longest turnaround times of a few months to clear some vessels.
Our staff are working tirelessly to keep customers informed, cargo moving and pushing deliveries with our partners. We please ask for your patience and understanding during this time.
Feel free to share this with your customers as I hope it can assist with conversations moving forward.
Please reach out at any time to discuss further.
Simon Pepper
Managing Director
SILA Global Pty Ltd
Industry News - 20 April 2022
20-April-2022
INDUSTRY NEWS
DAWE: Impacts to Service Standards
Department of Agriculture, Water & Environment (DAWE) continues to experience high volumes of inspection requests and services across; the department's ability to meet service standards for inspection bookings will be impacted over the coming weeks, and possibly beyond.
DAWE acknowledges clients are currently experiencing delays. All efforts are being made to manage increased workloads to meet service standards, while also managing an ever-increasing biosecurity risk profile. [Read more here]
Australia-India Comprehensive Economic Cooperation Agreement (AI-CECA)
It has been a long time in the making, but Australia has finally signed a Free Trade Agreement (FTA) with India. As mentioned in an article by Russel Wiese (Customs and Global Trade Law), “traders and customs brokers should not expect the interim FTA to be implemented in 2022.” [Read more here]
Government Media Releases:
- Historic trade deal with India | Prime Minister of Australia
- AI-CECA | Australian Government Department of Foreign Affairs and Trade
Unfair Container Detention Practices
Freight & Trade Alliance (FTA) & Australian Peak Shippers Association Inc. (APSA) continue to be advocates when it comes to the unfair container detention practices of shipping lines, despite the unprecedented (and ongoing) industry issues. [Read more here]
COVID-19: Shanghai's strict lockdown could have 'massive global effects' in supply chains
Shanghai continues with its strict lockdown. The city registered 27,719 more cases over the last 24 hours, another new record. There were 29,411 new infections across China.
The port of Shanghai continues to operate normally under a "closed loop" system where it is sealed off from the city but there have been difficulties with trucks entering and exiting, leading to delays. [Read more here]
Australian Steel News
SILA Global Pty Ltd
Easter Break & Upcoming Public Holidays
Dear Valued Customers and Partners,
From all of us at SILA Global, we would like to take this moment to wish everyone a happy & safe Easter break. We are all very much looking forward to this long weekend after an extremely busy start to 2022!
SILA Global will be closed for the upcoming public holidays.
Thank you & Best Wishes,
SILA Global Team
Fuel Tax Confusion Related to Container Road Transport
05-April-2022
Dear Valued Customers,
We would like to share an insightful notice received from CTAA regarding the Fuel Excise rate reduction announced in the Federal Government's Budget 2022 which has caused confusion within the industry.
The Federal Government’s Budget 2022 decision to reduce the Fuel Excise rate from 44.2 cents per litre (cpl) to 22.1cpl for a six-month period seems to have caused confusion about the likely impact on Customer Fuel Levies or Surcharges applied by container road transport operators on top of their base cartage rates to account for fluctuations in diesel fuel prices.
Seemingly, some container logistics stakeholders think that heavy vehicle road transport operators will benefit fully from the 22.1cpl reduction in Fuel Excise. That is simply not the case.
CTAA has produced a Notice to Industry to explain why - download: HERE
As always, SILA Global & our partners will do everything within our control to minimise negative impacts and we will endeavour to keep our clients informed.
In the meantime, should you have any concerns, please don't hesitate to reach out to your SILA Sales representative.
SILA Global Pty Ltd
Free Time at Destination
04-April-2022
Dear Valued Customers,
We would like to remind all importers & traders to be mindful of the free time applied to their shipments.
For CFR bookings, it may be easy to leave seeking additional free time with suppliers however a joint push needs to be made to achieve as much free time as possible. If a shipper, sending cargo under CFR terms, does not already have a contract in place then they will seek spot rates for the shipment. Typically, the shipper will accept whatever free time the carrier has provided, which is not enough in the case of spot bookings and cheaper rates
The issues, that were mainly isolated to Australia’s East Coast, have now made their way to Fremantle where the congestion is already at critical, and growing. Many providers are in a position where they simply do not have the space to take on any additional work and this overflow will affect other transport providers soon enough. Again, to minimise the impact, please ask for as much detention free time as you can.
We ask that importers & traders keep in regular contact with their clients, and receivers, to keep all parties updated on these industry challenges. Receivers are seeing huge delays getting cargo into their stores and, while clients & receivers would already be aware of underlying issues, the full extent may not be completely understood or appreciated.
Through conversations with traders, we understand that it is especially complicated to seek any contributions to storage, detention, or other issues from their clients since orders and transactions take place months in advance. Nevertheless, now is the time to be having those difficult conversations and possibly adding further terms and conditions to sales contracts or orders.
We are in unprecedented times, experiencing unprecedented problems so I would like to take this moment to remind all of us of the ‘human factor’ present. This is taking its toll on the mental and physical health of all industry employees, and I hope we can all appreciate that when we are dealing with one another during these hard times. What we are going through now affects all stakeholders; we are all in this together. There will not be any one person or company involved in international trade & logistics who has not been impacted in one way or another.
The focus, for all stakeholders, is to keep cargo moving to our customers, keep customers as informed as possible and provide understanding of the market conditions in each port that will ultimately affect price. As we touched on earlier, it is difficult to make any adjustments for cargo that was ordered months ago but these conversations should be had and hopefully agreements can be made.
As always, SILA Global & our partners will do everything within our control to minimise the negative impacts and we will endeavour to keep our clients informed.
In the meantime, should you have any concerns, please don't hesitate to reach out to your SILA Sales representative.
Simon Pepper
Managing Director
SILA Global Pty Ltd
UPDATE: CHINA LOCKDOWNS AS COVID CASES SPIKE
28-March-2022
Dear Valued Customers and Partners,
We have received news that Shanghai (China) will be going into a two phase lockdown over nine days due to COVID-19 outbreak.
With case counts climbing, the city government said in a public notice that the two-part lockdown was being implemented “to curb the spread of the epidemic, ensure the safety and health of the people” and root out cases of infection “as soon as possible”.
The city’s sprawling eastern half, known as Pudong, which includes the main international airport and financial district, would be locked down for testing beginning Monday morning and ending 1 April.
On 1 April, the city’s western half, known as Puxi and featuring the historic Bund riverfront, will lock down until 5 April, the government added.
Residents were told to stay indoors during the lockdowns, and all business employees and government personnel not involved in the supply of essential services were advised to work from home.
Those involved with providing vital services such as gas, electricity, transport, sanitation and the supply of food would be exempt from the stay-at-home order.
Articles regarding the outbreak & lockdown in Shanghai, China:-
- Shanghai to lock down millions for mass testing as China’s Covid cases surge | Coronavirus | The Guardian
- China announces largest city-wide lockdown | MENAFN.COM
- Shanghai to lock down millions of people as part of China's 'zero-COVID' strategy as cases spike - ABC News
As always, SILA Global & our partners will do everything within our control to minimise the negative ripple effects this will inevitably cause to the global supply chain. We will endeavour to keep our clients informed as new information comes to light.
In the meantime, should you have any concerns, please don't hesitate to reach out to your SILA Sales representative.
Thank you,
SILA Global Pty Ltd
China Lockdowns as Covid Cases Spike
16-March-2022
Dear Valued Customers and Partners,
Once again, the supply chain is being impacted by a spike of Covid-19 cases making waves throughout China. Below is an excerpt from the notification we have received from a trusted China agent.
Lockdowns across China are spooking global supply chains again. The 17.5m population of Shenzhen, a vital export centre in the south of the country, has been placed into a week-long lockdown, as has the province of Jilin in the north, Qingdao in the east, while Shanghai has placed some new measures on its citizens. Truck drivers entering are now required to hold negative Covid-19 test results within 24 hours and get tested again upon arrival at the port. The expected rebound in some economies is being hindered by missed calls at some ports. In Asia and Australasia, Port Klang, Melbourne and Tauranga also lost some 40% of capacity as lines either cancelled services or skipped ports due to vessels being full. The southern China air freight market has changed “dramatically” as Covid rages in Hong Kong, severely impacting the local trucking market to and from the mainland. Forwarders estimate there is a 70% cut in truck capacity, further diminishing Hong Kong’s air export market. A lot of south China traffic traditionally routed via HKG now flies directly ex-Guangzhou or Shenzhen or other Chinese airports. Believe this situation will go for another one or two months, until the ‘confirmed cases’ are under control.
As always, SILA Global & our partners will do everything within our control to minimise the negative ripple effects this will inevitably cause to the global supply chain. We will endeavour to keep our clients informed as new information comes to light.
In the meantime, should you have any concerns, please do not hesitate to reach out to your SILA Sales representative.
Thank you,
SILA Global Pty Ltd