Logistics company Australia

Ongoing Delays for Biosecurity Inspections

To Valued Customers & Partners,

We are continuing to experience biosecurity inspection delays, particularly in Melbourne & Sydney. Like other industries, employee recruitment and retention has been labeled the main cause of these significant delays.

Please see the below FTA notice and we ask that you please pass this information on to your delivery locations.

Thank you for your patience, understanding, and kindness to staff through this period.

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


Shipping Containers Logistics Australia 2

Empty Container De-hires & Demurrage

To Valued Customers & Partners,

Operational Challenges 

Our operational capacity is improving, however high volumes, staff absences, and lack of labour continue to be an issue; we do not foresee this improving anytime soon. Container unpacks range between 14-30 per day depending on the arrival port, commodity, and vessel scheduling. In addition to this, we have also begun to receive information that congestion is emerging at receivers' sites; some simply have no space to take cargo. We understand that high order volumes earlier this year are beginning to affect storage capacity at end receiver sites which also has a backward effect at depots that have been struggling with space for some time now

Container De-hire & Demurrage

The biggest issue we're facing right now is the container de-hire & demurrage situation which remains at a critical level nationwide. Empty parks are at full capacity causing delays with securing de-hire slots and subsequently impacting transports' ability to be able to dehire empty containers in a timely manner after container unpacking. Additionally, transport providers arriving with empty containers are regularly redirected to another empty park, sometimes multiple before being able to finally dehire. Currently, Medlog empty park in Melbourne is not accepting containers and there are no redirections in place so transport operators are being told to hold onto containers at their expense.

Empty Container Park Cost Increases & Capacity Constraints - Impacts

Given the current conditions, SILA is not in a position to accept responsibility for any container detention that may be incurred as a result.

We are continuing to monitor the situation and will keep you posted as the situation changes, for better or worse.

In the meantime, SILA and our transport partners continue to do everything possible to de-hire containers in a timely matter, and we thank you for your patience, understanding, and kindness to staff through this period.

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


Landside Congestion & COVID Impacts on Delivery Services

To Valued Customers & Partners,

Severe congestion and delays at empty parks are impacting the de-hire of containers. Some empty parks are rejecting & redirecting containers due to capacity issues, which, in most cases, isn't known until drivers are arriving at the gates.

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have received extensive examples from members in terms of the current diabolical state of Australia’s maritime logistics systems.

Further to our earlier submissions and evidence provided to the Productivity Commission, we thought we would give them a little more light reading overnight on landside congestion - refer HERE

In addition, we are receiving updates from transport partners that positive COVID results are impacting their already strained day-to-day processes, especially in WA. Multiple truck drivers, administration staff (in various departments), container forklift operators, container unpackers, etc are receiving positive COVID results and being required to isolate causing significant delays in general customer service & container unpack / cargo deliveries.

We ask that you please pass this information on to your delivery locations.

Thank you for your patience, understanding, and kindness to staff through this period.

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 – 18 May 2022

INDUSTRY NEWS

CONTAINER DETENTION: Supplementary submission to the productivity Commission
Freight &Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have received extensive examples from members highlighting the unreasonable administration of container detention fees.

This has been used as evidence as a part of a supplementary submission to the Productivity Commission calling for regulation to end the blatant mis-use of this practice.
Read more here

CONTAINER DETENTION: Where does it end ?
Despite repeated requests to shipping lines for blanket extensions of container detention periods, all those that have responded state they will assess the quantum of fees payable on a case by case basis.

As members will recall, FTA/APSA continue to supply evidence of unreasonable practices to the Productivity Commission and are advocating for similar regulatory intervention that is currently taking place in the USA.
Read more here

CONTAINER DETENTION: ABC Radio interview with Paul Zalai
Thanks again to the ABC for this important coverage allowing 5 minutes of air-time to explain the implication of unreasonable practices enforced by many foreign owned shipping lines and the FTA/APSA advocacy for regulation.
Listen Here

FREMANTLE PORTS: Removal of Free Storage Days for Weekends and Public Holidays
Letter from Mark Pearce, General Manager Port Operations

Over recent years there has been a general increase in demand for common-user berth laydown areas, a trend that has increased since the onset of COVID-19. This demand is resulting in increased congestion, delays to vessel berthing and increased supply chain costs.

Fremantle Ports has been working with industry participants over recent months to remove bottlenecks and improve the overall supply chain efficiency. As an example, a five-day shipping shutdown was carried out for Berths 11 & 12 to enable a focus on clearing cargo. While these types of initiatives are proving valuable, there are occasions when berth laydown areas are being used for storage and distribution rather than efficient discharge of vessels.

In a bid to encourage better utilisation of laydown areas and reflect the 24/7 nature of port operations, effective 1 July 2022, the storage-free days on weekends and public holidays will be removed when they fall within the four free days.

This change is aimed at helping improve overall efficiency of the supply chain.

We will continue to review our rates and charges to ensure they are appropriate and drive the right behaviour and overall supply chain efficiency for the benefit of all port users.

Thank you for your understanding and co-operation.

BRISBANE PORTS: Patrick Autostrad Terminal, Fisherman Islands Brisbane
Letter from Duane Engi, Operations Manager

Due to the recent weather conditions experienced throughout South East Queensland, restrictions in vessel movements at the Port of Brisbane are in place. As a result, the Patrick Fisherman Islands Terminal is nearing cargo capacity. Therefore, the Terminal has ceased the receivial of empty export cargo from 1500 on the 16th May 2022. In addition to this, selected vessel cargo receivial windows have been amended.
Read more here

DAWE: Conclusion of the 2021-22 Brown marmorated stink bug (BMSB) Risk Season
On 1 May 2022, the 2021-22 BMSB season ended.

Goods shipped or vessels departing from BMSB identified target risk countries on or after 1 May 2022, will no longer be subject to the BMSB seasonal measures including the Seasonal Pest Inspection (SPI) on arrival.

Target high risk goods manufactured in or shipped from target risk countries, that are shipped on board vessels between 1 September 2021 and 30 April 2022 are subject to BMSB measures on arrival, regardless of the arrival date.
Read full notice 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 - MAY 2022
VIEW MAY 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


QLD Inclement Weather

To Valued Customers & Partners,

The Bureau of Meteorology has advised of three weather systems expected to collide and bring record-breaking rainfall which may lead to significant flooding, yet again, in Queensland. The rainfall is expected to intensify over Tuesday with the possibility of lasting throughout the week and into the weekend.

This heavy rainfall will put extra pressure on an already strained QLD supply chain. We ask our customers to please be prepared (and to prepare end receivers) for additional container unpack & delivery delays, especially for steel.

Related Articles:

BOM Queensland forecasters expect May rainfall record as central interior in firing line
Torrential rain bomb to hammer Australia and it'll last for NINE days
Queenslanders warned of potentially ‘life-threatening’ flash flooding
Rainfall totals of up to 400 millimetres predicted for Queensland as severe weather sets in

As always, SILA Global & our dedicated team are working hard to minimise the impact and we appreciate your patience & understanding during these difficult, unprecedented times.

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


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 here

Related article here

CHINA
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 here

Shanghai 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

Related article here
Related 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 

+ Read related 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:

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

VIEW APRIL 2022 NEWSLETTER

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SILA Global Pty Ltd