DP World ​​Industrial Action Update

Dear Valued Customers & Partners,

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) continue to be in contact with DP World senior management in terms of thy latest  information on the Protected Industrial Action (PIA) impacting their container terminals nationally.

DP World have outlined advice received from the Maritime Union of Australia (MUA) division of the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) in terms of work bans and stoppages associated with the PIA for the period Monday 18 December to Monday 8 January 2024.

Full list of upcoming protected industrial actions HERE

FREIGHT & TRADE ALLIANCE - INDUSTRIAL ACTION AT DP WORLD - DECEMBER STATUS REPORT

The Protected Industrial Action (PIA) that commenced in October 2023 at DP World container terminals in Melbourne, Sydney, Brisbane and Fremantle is having devastating financial impacts on Australian exporters and importers. Impacts are being experienced beyond DP World facilities with other container logistics facilities nationally dealing with additional freight volumes from sub-contracted vessels, limiting the availability of vehicle booking system slots and the allocation of scarce transport assets to manage the landside task.

Recent enterprise agreement negotiations have failed in addressing the impasse and an application to the Fair Work Commission to suspend industrial actions for a cooling off period was dismissed.  This suggests that PIA may continue for an extended period well into the New Year.

From an import perspective, delays and costs are jeopardising business viability and are fueling inflationary pressures across our economy.

From an export perspective, while the Federal Government is justifiably proud of achieving trade liberalisation measures and stabilising the trade relationship with China, this counts for little with a failure to have viable operations at our international containerised sea freight gateways.

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have prepared the following 'status report' on the ongoing Protected Industrial Action (PIA) at DP World container terminals nationally providing 1) a summary of operational impacts (based on member feedback), 2) estimated costs, 3) advocacy and 4) related media.

OPERATIONAL IMPACTS

DELAYS - vessel delays nationally are adding 2–5 weeks from original schedule - one of many impacts is risking quality deterioration of perishables with insurance claims spiking;
CAPACITY - delays are reducing capacity affecting ability to serve markets (freight rates likely to increase with supply and demand imbalance, compounded by international shipping redeployment due to Red Sea hostilities);
PLANNING - Importers are often working to set deadlines and now it is impossible to forward plan with certainty;
AIRFREIGHT - increased use of airfreight to meet contractual obligations;
DATA - little reliable source of vessel arrivals and cargo availability data exasperating logistics planning;
PORT BYPASS - some vessels bypassing ports – most shipping lines provide an alternate option to return to destination with a subsequent coastal move (this can generate an additional delay of up to 3 weeks) – alternatively a 'self move' requires a ‘change of destination’ request to shipping lines (costs sometimes waived) with additional domestic movement cost to be borne by the cargo owner;
BIOSECURITY - the Department of Agriculture, Fisheries & Forestry (DAFF) requirement to book any import inspections for the period 23 Dec to 02 Jan by yesterday (Tuesday 19 Dec) difficulty when container availability is unknown;
SCHEDULE IMPORTER CLOSURES - angst caused by loss of sales due to delays is now being compounded with imminent import costs over the Christmas and New Year period - scheduled shutdown of importer facilities (many through to 8 Jan 2024);
CONTAINER DETENTION – above will cause additional storage (congestion) and container detention (made worse by the fact over 11 days Friday 22 Dec to Monday 1 Jan 2024, most ECPs are only open 3.5 days : some not open until 8 Jan) - delays in loading export containers (including reefers) are also generating detention charges;
ADMINISTRATION - when receiving container detention invoices, extensive administration to unravel and argue waive or reduction of detention;
CONTAINER STAGING - significant difficulties for transport operators to plan labour over the holiday period - staging large volumes of containers over this period to minimise expensive wharf storage charges requires yard operators to drive heavy container forks (Drivers also want Christmas with their families but transport companies are faced with paying double to encourage workers to come in);
YARD CAPACITY - space is at a premium with facilities 'bursting at the seams' – importers are arranging for unpack and storage to return container (not all fork jobs / many taking 6 hour per container unpack) – major unplanned costs and limited capacity via sites to support;
ROLLING - significant volumes of export container waiting at port and rail heads due to limited slots and consecutive voyages being rolled;
RAIL - many exporters from regional centres are now staging movements at port due to “cut and run” approach from shipping lines - cost is jeopardising commercial viability on high volume / low value commodities;
EMPTIES - concern that shipping lines may not evacuate enough empties which will cause congestion problems at ECPs (recently experienced during the height of pandemic) - the contrary concern is if they prioritise empties over exports this will be a major problem too;
EQUIPMENT - Less Food Quality and Reefer availability (delays on imports affect specialised equipment availability for exports);
FUTILE TRIPS - additional costs for “Futile Trips” are being incurred by importers because transport companies are unable to pick up containers in instances despite published container availability;
OVERTIME - overtime has limited benefits as drivers still have CoR – truck queues causing other road hazards and congestion; and
STEVEDORE LIMITATIONS - other stevedores reaching capacity and limiting sub-contracts over Christmas and New Year.

COST

In a mid-November letter from Shipping Australia Limited (SAL) to the Minister for Employment and Workplace Relations, reference was made to modelling by a leading transport economics consultancy estimating direct loss from the DP World PIA being AUD$10.1 million a day.

The disruption and knock-on supply chain impacts has worsened over the last month since the above correspondence was sent. Add to the mix indirect costs such as failure to meet contractual obligations, conservative estimates suggest the overall cost to the Australian economy being AUD$20 million a day.

This estimated cost does not take into account the significant human toll and the testing of relationships between all in the supply chain.

ADVOCACY

On 18 December 2023, FTA / APSA wrote to the Minister for Employment and Workplace Relations and the Minister for Trade and Tourism extending an invitation to a meet with a delegation of FTA / APSA board members and representatives to explain first-hand, the impacts of the PIA on businesses and reputational harm to Australia as a viable trading nation. A preliminary response has been received indicating an interest to convene early in the New Year.

As indicated in recent member updates, FTA, APSA, SAL and the Container Transport Alliance Australia (CTAA) have been leading advocacy for the Victorian Department of Transport and Planning (DTP) to declare a 'disruption event'. A further meeting with DTP is scheduled for 11.30am AEDT tomorrow, Friday 22 December 2023.

MEDIA

FTA / APSA continues to lead industry commentaries in mainstream media. This has two primary purposes:

  1. pressure regulators and all parties involved in the PIA to work together on a resolution to minimise the impact on workers, freight and the nation; and
  2. increase public awareness and assist members in explaining the cause and impacts of supply disruptions.

The cyber incident at DP World and recent hostilities in the Red Sea have captured the media's attention during the last 5 weeks. Importantly, while speaking on these matters, FTA / APSA have taken the opportunity to weave in commentaries about the PIA, explaining the compounding effects of the overall operating environment.

19 DEC 2023 : Stock and Land - Red Sea freight blockage has potential to disrupt all supply chains
19 DEC 2023 : Australian Financial Review - Freight, oil climb as Red Sea attacks shut down shipping
17 DEC 2023 : ABC News - UK and US shoot down more Houthi drones in the Red Sea as shipping companies pause operations
15 DEC 2023 : The Guardian - Waterfront operators’ soaring profit margins prompts concerns from competition regulator
14 DEC 2023 : Australian Financial Review - DP World begs for cool off as strikes cause more damage than hack
5 DEC 2023 : WEBINAR FTA / APSA interview with Nicolaj Noes, Executive Vice President Oceania - APAC of DP World 
14 NOV 2023 : India Shipping News - DP World gradually restarting operations around its Australian Ports after cyber-attack
13 NOV 2023 : Following our coverage of the DP World cyber incident over the weekend (11 & 12 November 2023) in the Sydney Morning HeraldThe Age and the Australian Financial Review, separate FTA / APSA interviews included live on Sky News at 6.45am followed by Ben Fordham on 2GB (Syd), Sammy J on ABC (Melb), James Valentine on ABC (Syd), Loretta Ryan and Joel Spreadborough on ABC (Bne) , Nadia Mitsopoulos on ABC (Per)ABC World Today, SCA Triple M, Australian Financial Review again, Bloomberg News, Libby Price on Country Today, Agence France-Presse, The Australian (Business Review)The Guardian, Jaynie Seal on Sky News , Chris Reason on Channel 7 News and finally, another live interview with Ed Boyd at Sky News in their Sydney studio.

 

SILA would like to remind our clients that transport companies have communicated that surcharges for weekends, public holidays and after-hours will be applied as they strive to retrieve containers within their allotted free time.

These bans & stoppages continue to significantly impact our services, and we appreciate your understanding and flexibility during this period. Our team is committed to minimising disruptions and ensuring the smoothest operations possible. We will keep you updated on any further developments.

We acknowledge the potential impact of these disruptions; however, please be advised that SILA will not assume liability for any additional charges arising from these industrial actions.

Thank you for your continued trust and partnership and should you have any questions or concerns, kindly reach out to our dedicated team!

SILA Imports - imports@sila.net.au
SILA Exports - exports@sila.net.au
SILA Sales - sales@sila.net.au
T: (+61) 07 3908 1690

SILA Global Pty Ltd

 


New By-Laws and Customs Tariff Changes

Dear Valued Clients,

The Australian Border Force (ABF) has released new notices ACN 2023-48 and ACN 2023-50 which are attached below for your information.

ACN 2023-48 New by-laws for tariff concessional items 16 and 41

ACN 2023-50 Customs Tariff Changes 1 January 2024

Thank you for your continued trust and partnership and should you have any questions or concerns, kindly reach out to our dedicated team! 

SILA Imports - imports@sila.net.au
SILA Exports - exports@sila.net.au
SILA Sales - sales@sila.net.au 
T: (+61) 07 3908 1690

SILA Global Pty Ltd


Adverse Weather Impacting NSW Terminals

Dear Valued Customers & Partners,

Last night's storm in NSW had a significant impact on the Patrick terminal, with a lightning strike causing substantial disruption. All container slot zones from 21:00 to 5:00 am were canceled, and DP World also had to cancel multiple zones due to the adverse weather conditions.

As a consequence, some containers scheduled for delivery today had to be canceled because we currently don't have possession of these containers. Rest assured, we're actively collaborating with transport companies & the terminals to reschedule the slots/deliveries and ensure a smooth handling of the situation. Our dedicated team will be in contact with those directly affected by these cancellations. 

We appreciate your understanding and patience as we navigate through these weather-related challenges. If you have any concerns or queries, feel free to reach out to us.

SILA Imports - imports@sila.net.au
SILA Exports - exports@sila.net.au
SILA Sales - sales@sila.net.au
T: (+61) 07 3908 1690

SILA Global Pty Ltd


Ex-TC Jasper: North Queensland Flooding

Dear Valued Customers & Partners,

As you may be aware, Northern QLD has recently experienced severe flooding due to ex-Tropical Cyclone Jasper. Currently, ex-Tropical Cyclone Jasper remains as a weak tropical low over Cape York Peninsula. However, Cairns Airport has been forced to shut down just a week from Christmas causing major disruptions.

Our thoughts are with the community, and we understand that this situation may have implications for our clients as well.

Our primary concern is the safety and well-being of our clients, employees, and the community at large. We are closely monitoring the situation and working to assess any potential disruptions to our services. At this time, we want to assure you that we are taking all necessary measures to minimise any impact on our ability to serve you effectively.

We understand that unforeseen events like this can be challenging, and we appreciate your understanding and patience during this time. If you have specific concerns or if there's anything we can do to support you, please feel free to contact us.

Related articles for more information:

Thank you for your continued trust and partnership and should you have any questions or concerns, kindly reach out to our dedicated team! 

SILA Imports - imports@sila.net.au
SILA Exports - exports@sila.net.au
SILA Sales - sales@sila.net.au
T: (+61) 07 3908 1690

SILA Global Pty Ltd


DP World Industrial Action Continues

Dear Valued Customers & Partners,

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) continue to be in contact with DP World senior management in terms of thy latest information on the Protected Industrial Action (PIA) impacting their container terminals nationally.

DP World have outlined advice received from the Maritime Union of Australia (MUA) division of the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) in terms of work bans and stoppages associated with the PIA for the period Monday 18 December to Sunday 31 December 2023.

Full list of upcoming protected industrial action HERE

Additionally, transport companies have communicated that surcharges for weekends, public holidays and after-hours will be applied as they strive to retrieve containers within their allotted free time.

These bans & stoppages continue to significantly impact our services, and we appreciate your understanding and flexibility during this period. Our team is committed to minimising disruptions and ensuring the smoothest operations possible. We will keep you updated on any further developments.

We acknowledge the potential impact of these disruptions; however, please be advised that SILA will not assume liability for any additional charges arising from these industrial actions.

Thank you for your continued trust and partnership and should you have any questions or concerns, kindly reach out to our dedicated team!

SILA Imports - imports@sila.net.au
SILA Exports - exports@sila.net.au
SILA Sales - sales@sila.net.au
T: (+61) 07 3908 1690

SILA Global Pty Ltd


Insight - December 2023

Update on Ports & Terminals Enterprise Bargaining

DP World Seeks 90-Day Cooling-Off Period Amidst Ongoing Industrial Action: FTA and APSA Stay Informed on Progress

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have been in contact with DP World senior management in order to update members on the latest on the protected industrial action.

With DP World and the Maritime Union of Australia (MUA) now having concluded 6 days of facilitated bargaining sessions under the watch of the Fair Work Commission (FWC), DP World suggest that while some progress was made, in response to the continued Industrial action DP World has now filed for a cooling-off period of 90 days in the FWC aimed at halting the ongoing action. DP World optimistically suggesting the period would provide an opportunity for further negotiations without further disruptions.

DP World senior management expectation is for the filing to be reviewed by the FWC in a matter of days; the DP World statement reads as follows:

We hope this message finds you well. We are writing to update you on the recent developments in our negotiations with the Maritime Union of Australia (MUA) and the potential impact on our services.

Background of Negotiations
DP World has been engaged in facilitated bargaining sessions over six days with the MUA under the oversight of the Fair Work Commission. These discussions are critical, as they involve reviewing over 300 claims put forth by the MUA, which, if accepted, could significantly impact our operational costs, resource deployment flexibility, and decision-making processes.

Progress and Challenges
While some progress was made during these sessions, the MUA has maintained a majority of their initial claims without significant modification. This stance makes it challenging for us to ascertain the full implications of their demands. Our focus remains on making balanced decisions that consider the impacts on our operations, employees, and, importantly, you – our customers.

DP World's Stance
Our aim is to forge an agreement that reflects the current work environment, enabling us to operate seamlessly 24/7, ensuring the smooth flow of goods and services. Key areas we are focusing on include:

  • Prioritising service delivery and adopting work practices that meet customer demands.
  • Introducing roster flexibility for better skill availability across all shifts. 
  • Managing workforce absences promptly and fairly. 
  • Ensuring the right person is selected for each job and training opportunity. 
  • Enhancing productivity at each terminal.

​​​​​​​Collective Bargaining Principles

These principles are designed to enhance productivity and optimize roster availability. They are crucial for modern, flexible operations that align with the demands of our customers and the nation's integrated supply chain.

Current Situation
Despite our efforts to reach an agreement, the MUA has shown limited willingness to adjust their claims in a manner that ensures operational certainty and reasonable cost implications. The ongoing Protected Industrial Action initiated by the MUA is a concern, especially given the potential impact on national supply chains and the broader economic context.

Moving Forward
In response to the continued Industrial Action, DP World has filed for a cooling-off period of 90 days in the Fair Work Commission. This step is aimed at halting the ongoing action and mitigating its impact on our business, our employees, customers like you, and the general public. We are optimistic that this period will provide an opportunity for constructive discussions without further disruptions.

Our Commitment to You
We understand the importance of our services in your operations and are committed to keeping you informed of any developments. Our team is working diligently to minimize disruptions and maintain the high level of service you expect from us.

We appreciate your understanding and continued support during this period. Please feel free to reach out to us with any concerns or questions.

Warm regards,
Ravi Sheshadri
Vice President - Commercial - Ports & Terminals
Oceania, APAC
DP World

In addition to this, DP World have announced another update suggesting the members of the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU, MUA Division) have outlined a further series of work bans and stoppages up to and including Saturday 23 December

DP World have further noted that the CFMMEU, MUA Division has verbally indicated the PIA will be withdrawn on the days when local level discussions are occurring. These dates are Wednesday 13 December for West Swanson, Sydney and Fremantle and Thursday 14 December for Brisbane.

Full media statement HERE

Full list of upcoming protected industrial actions HERE

FTA / APSA once again urges all parties involved in the industrial dispute to work together on a resolution to minimise the impact on workers, freight and the nation. 

Indian economy to be third largest by 2030

India Projected to Surpass as Third-Largest Economy by 2030, Emerging as the Fastest Growing Major Economy: S&P Global Ratings

As per S&P, India is expected to grow at 6.4 per cent in 2023-24 compared with 7.2 per cent in the previous financial year. The rating agency said the growth rate will remain at 6.4 per cent in 2024-25 before rising to 6.9 per cent next year and 7 per cent in 2026-27. In November, before the release of India’s GDP data, the rating agency had revised up the country’s growth forecast for financial year 2023-24 to 6.4 per cent from 6 per cent earlier and lowered the growth projection for financial year 2024-25 to 6.4 per cent from 6.9 per cent earlier.

At present, the Indian economy is the fifth largest ranked behind the US, China, Germany and Japan. With the Chinese economy slowing down, Asia-Pacific’s growth engine is expected to shift to South and Southeast Asia from China, the S&P report said. The rating agency has projected China’s GDP growth to slow to 4.6 per cent in 2024 (2023: 5.4 per cent), and then edge up to 4.8 per cent in 2025, and return to 4.6 per cent in 2026.

The S&P report said unlocking the labor market potential will largely depend upon upskilling workers and increasing female participation in the workforce, with both the factors then expected to enable India to realise its demographic dividend. “A booming domestic digital market could also fuel expansion in India’s high-growth startup ecosystem during the next decade, especially in financial and consumer technology. In the automotive sector, India is poised for growth, building on infrastructure, investment, and innovation,” it said.

Read the full article HERE

China's logistics sector grew rapidly in November

Robust Growth in China's Logistics Sector in November Signals Economic Recovery and Quality Development Momentum

CHINA'S logistics sector grew more quickly in November, as the economy remained on a recovery trajectory and high-quality development gained momentum.

The index tracking the logistics market stood at 53.3 last month, up 0.4 points from October. The warehouse storage index was 52.2, up 1.3 points month on month, according to data released by the China Federation of Logistics and Purchasing on Monday.

A reading above 50 indicates expansion, while a reading below reflects contraction.

Thanks to the Double 11 shopping festival, the logistics sector reported a further recovery in November, with total transactions and new orders both in expansion territory, He Hui, assistant president of the China Federation of Logistics and Purchasing, told the Global Times on Monday.

Read the full article HERE

Group of ocean container shipping leaders ring the bell for sector decarbonization

Major Shipping Lines Unite at COP28 to Call for End Date on Fossil Fuel-Powered Vessels and Advocate for Green Fuel Regulations

Late last week, at the COP28 conference in Dubai, leadership for some of the largest global container shipping lines banded together to issue a joint declaration for an end date for newly-built fossil fuel-powered vessels, while also calling on the International Maritime Organization (IMO) to establish regulatory conditions needed to move on to green fuels to power vessels.

The container shipping lines’ CEOs collaborating on this initiative include: Vincent Clerc, CEO, A.P. Moller-Maersk; Rodolphe Saadé, Chairman and CEO of the CMA CGM Group; Rolf Habben Jansen, CEO of Hapag-Lloyd; Soren Toft, CEO of MSC Mediterranean Shipping Company; and Lasse Kristoffersen, President and CEO, Wallenius Wilhelmsen.

The driver for this collaboration, according to the executives, stems from how “global temperatures are breaching critical levels, creating more frequent and devastating results,” increasing the onus on the container shipping sector, which accounts for 2%-to-3% of global greenhouse gas (GHG) emissions to meet the IMO’s 2030, 2040, and net-zero GHG targets. And the CEOs noted that collaboration with IMO regulators is needed in order to “produce the effective and concrete policy measures needed to underpin the investment within maritime shipping and its ancillary industries that will enable decarbonization at the pace required.”

Read the full article HERE

2023 In Review: Let’s turn the page

Industry Experts Reflect on 2023 and Offer Insights for Logistics and Supply Chain in 2024

 

Amid the upheaval of the pandemic, the touted concepts of agility and resilience were often found lacking when put to the test. Supply chains, in particular, revealed vulnerabilities, resulting in widespread frustration and increased costs across various stakeholders – producers, sellers, logistics service providers, and consumers.

Now that the pandemic is behind us, is everything back to normal? What lessons did we learn, and what actions did we take in response? Looking into 2023, it appears that not much has changed. In a world dominated by brief sound bites and information snippets, the ability to retain lessons seems limited. Memories are short, and the focus remains on the immediate present. As industry veteran Ted Prince notes, 'Institutional memory half-life is in nano-seconds.'

Read the full article HERE

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
(07) 3908 1622

Find goods currently subject to measures in the dumping commodity register (DCR)


A Heartfelt Thank You and Warmest Holiday Wishes


To our Valued Clients & Partners,

Can you believe it? Another year down! We just wanted to drop you a quick note to say a massive THANK YOU. Your partnership means the world to us, and we couldn't have navigated through the year without your trust and support.

As the holiday season is upon us, we're sending you all the good vibes, joy, and holiday cheer. May your days be filled with laughter, your stockings be stuffed with good times, and your heart be warmed by the company of loved ones.

Here's to steering ourselves through the shipping journey in 2024, many more successful deliveries, continued support, and friendship in the coming year!

Cheers to you, your team, and the holiday season ahead!

Warmest wishes from Team SILA!

SILA Imports - imports@sila.net.au
SILA Exports - exports@sila.net.au
SILA Sales - sales@sila.net.au
T: (+61) 07 3908 1690


Market Update - December

Greetings from SILA Global!

As we head into the last month of 2023, it's super important to keep up with what's happening in the global shipping and logistics scene. At SILA, we're all about keeping you in the loop and offering expert solutions to help you navigate the ups and downs in the shipping and logistics world.

General Shipping Update

Maersk has announced ad-hoc sailings for the V/V MARKUR HORIZON 350S route, departing from Qingdao on Dec 13, Ningbo on Dec 16, and Hong Kong on Dec 20, directly to Fremantle on Jan 3, Melbourne on Jan 10, and Brisbane Patricks terminal on Jan 15. Similarly, COSCO has ad-hoc sailings for the PSL service V/V XINLAN ZHOU 191S, departing from Shanghai on Dec 20, Ningbo on Dec 22, and Shekou on Dec 24, directly to Sydney on Jan 7 and Brisbane Patricks terminal on Jan 10. ANL has tentative sailings for the V/V LOUISE 445S, departing from Shanghai on Jan 4, Ningbo on Jan 5, Shekou on Jan 8, and Kaohsiung on Jan 11, directly to Sydney on Jan 20, Melbourne on Jan 23, and Brisbane Patricks on Jan 28, with a phase-in V/V DERBY D in CNS instead to New Zealand.

It is important to note that container carrier costs are currently 25% to 30% higher than in 2019. The failure to manage vessel supply overcapacity may lead to significant losses in the coming year. Recent data suggests that 2024 could be more challenging for ocean carriers than anticipated. Chinese ports experienced a year-over-year 4.9% increase in container volume for the January-October period, reaching a total of 257 million TEUs. Shanghai saw a modest year-over-year growth of 2.8%, handling 40.2 million TEUs, while Ningbo & Zhousan port increased box volumes by 4.5%, handling 30.2 million TEUs. Beibu Gulf exhibited the highest percentage growth with a remarkable 16.5% year-over-year increase, reaching 6.51 million TEUs.

In response to demand downturns in traditional markets, container lines are redirecting more tonnage to Indian trades. ONE is expected to offer co-loading space for other carriers, with HMM identified as a potential slot buyer. Notably, the Asia Subcontinent Express 2 (AS2) by CMA CGM, launching in early December, will provide a direct service between India and China, reflecting the shifting cargo flow patterns as Asian supply chains diversify. The AS2's weekly rotation includes Shanghai, Ningbo, Shekou, Singapore, Colombo, Mundra, Nhava Sheva, Singapore, and Shanghai.

ANL Announces: TRANZTAS (TTZ) To See New Vessel & Three New Calls

ANL has exciting news for TRANZTAS (TTZ) service users. They've introduced an additional vessel and increased calls to Port Chalmers, Nelson, and Napier.

The upgraded service, incorporating the extra New Zealand ports, kicks off with CMA CGM Semarang 2329/2330 in December on the Eastbound leg.

TRANZTAS new rotation: SYD – MEL – AKL – POE – LYT – NSN – NPE – TRG – SYD

The “Palawan” will make ad hoc calls into Fremantle and Adelaide before reaching Sydney and Melbourne as part of the TRANZTAS service.

This revamped service promises New Zealand exporters faster transit times from Tauranga to Australia, plus a direct route from Nelson and Port Chalmers to Australia. Additionally, it opens up connections on other ANL services to Asia, the US, and Europe.

Check out the updated TRANZTAS route map below for more details.

Ongoing Industrial Action at DPW

Unfortunately, there is little change in that DP World today have announced another update suggesting the members of the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU, MUA Division) have, despite continued efforts to reach an understanding, outlined a further series of work bans and stoppages up to and including Monday 18 December.

The ongoing labor disputes and the recent 'cyber incident' at DP World Australia ports are still causing major headaches in the shipping and logistics sector. This has set off a chain reaction of challenges, resulting in considerable delays and higher operational costs. Backlogs, work bans, stoppages, and the need to work through weekends to avoid hefty container storage charges have all contributed to the disruptions currently being faced.

Full Media Statement HERE

Full List of Upcoming Protected Industrial Actions HERE

Should you require specific information or assistance, feel free to reach out. We're here to ensure that your shipments continue to move smoothly.

OptiBook to launch at Patrick Terminals

Industry has welcomed Patrick Terminal's decision to implement OptiBook which came into effect firstly in Melbourne on Sunday, 3rd Dec 2023 and has changed the way Availability and Storage will be applied:

  • Availability’ and ‘Storage Start’ dates will now be set at the container level, not against the vessel,
  • once the container has been made available by the terminal, the carrier will have 72 hours from the 'Availabledate and time to collect the container prior to the commencement of ‘Storage Start’ date and time.

To ensure we can secure a slot for your containers' as soon as discharged and made available, we need to ensure all documentation has been received well in advance so we can provide transport with the Electronic Import Delivery Order (EIDO) and a customs cleared status.

Resources:

2 NOVEMBER 2023 :    Patrick / OneStop Media Release & FAQs
24 NOVEMBER 2023 :  Patrick Optibook Implementation - Terminal Communication #1

FTA / APSA Submission to the Inquiry into Price Gouging and Unfair Pricing Practices

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have made a formal submission to the Inquiry into price gouging and unfair pricing practices being chaired by Professor Allan Fels on behalf of Australian Council of Trade Unions.

The FTA / APSA submission provided detail on the below unfair pricing practices costing the Australian trade sector $1billion per annum; costs that are cascading through supply chains fuelling inflationary pressures across the Australian economy.

  • Shipping Competition (Repeal of Part Competition and Consumer Act, exclusive dealings via vertical integration, quayside cost recovery)
  • Terminal Access Charges (stevedores, Empty Container Parks)
  • Container detention (imports, exports)

FTA / APSA and the Container Transport Alliance Australia (CTAA) gained coverage in the prestigious US media, the Journal of Commerce with an article titled "Rising marine terminal charges stir ire of Australian shipper groups" - full article HERE 

VICT: 30 Day Final Industry Notice for Vehicle Booking System Tariff Adjustments

Victoria International Container Terminal (VICT) is undertaking adjustments to their tariff structure in accordance with the guidelines outlined by the Victorian Department of Transport Voluntary Pricing for Stevedore Landside Charges. The revised tariffs are scheduled to take effect from January 1, 2024, and will impact the following categories:

• Vehicle Booking System Charges
• Import Storage Charges
• Late Receival

You can read their full notice HERE

Holiday Season Container Free Time

As we approach the festive season, we would like to remind our clients & partners to request additional free time on all import shipments during the Christmas and New Year period.

To ensure smooth operations and to accommodate the potential disruptions caused by the holiday season, we strongly recommend that you request a minimum of 14 days of free time on containers. Ideally, we encourage seeking 21 days' free time to allow for any unforeseen delays or increased demand during this festive period.

Should you have any questions or require further assistance in planning your shipments over the Christmas and New Year period, please do not hesitate to reach out to our dedicated team.

Sila Global Christmas & New Year Trading Hours

Christmas Trading Hours:

  • Friday, 22nd December 2023: Normal trading
  • Monday, 25th December 2023: CLOSED for Christmas Day
  • Tuesday, 26th December 2023: CLOSED for Boxing Day public holiday
  • Wednesday, 27th December 2023: Open – Normal trading
  • Thursday, 28th December 2023: Open – Normal trading
  • Friday, 29th December 2023: Open – Normal Trading

New Year Trading Hours:

  • Monday, 1st January 2024: CLOSED for New Year’s Day public holiday
  • Tuesday, 2nd January 2024: Resume normal trading

We are wishing all of our valued clients partners safe and happy holiday!

At SILA, we're all about keeping you in the loop and offering top-notch solutions. We're in this together, tackling challenges and grabbing opportunities.

As the year winds down, we just want to say a big thanks for trusting us at SILA. You're a crucial part of our journey, and we appreciate it!

Feel free to get in touch with our dedicated team for help and solutions tailored to your needs. 

SILA Global Commercial Team
CCO - jason@sila.net.au | NATMNGR - steve@sila.net.au
BDM - johann@sila.net.au | BDM - monowar@sila.net.au
T: (+61) 02 9556 4866 | E: sales@sila.net.au 


Important Notice Regarding Email Delivery Issues

Dear Valued Clients & Partners,

I hope this message finds you well. We're reaching out to inform you about a significant issue affecting the delivery of emails from our SILA domain. Despite our best efforts, we're facing challenges that may require your attention.

Surprisingly, even with a very acceptable spam score and passing all essential checks, some of our emails are getting quarantined by certain recipients' systems. This is unexpected, and we suspect it might not be limited to just SILA’s domain.

We've tried everything on our end to improve our email delivery, but there's one last option that carries a risk of causing issues for other clients. We're hesitant to proceed without addressing the root cause, which we believe lies with the recipient's threat protection provider, in this case, ProofPoint. There's a chance SILA has been unintentionally blacklisted or that there's a flaw in the filtering system.

We're seeking your assistance in resolving this promptly, as this issue may propagate to other users of ProofPoint over the next few days while we wait for their support department to help resolve it. While changes to records like DMARC and SPF might take time to spread across the internet, we're worried that our emails are still being quarantined. We recommend a quick review and adjustment to your spam filtering system, including whitelisting SILA at all relevant levels. Your prompt attention to this matter is crucial to ensure the smooth delivery of essential communications from SILA.

We understand that technical issues can arise, and we appreciate your quick response. If you need more information or assistance from our end, please feel free to reach out.

Thank you for your understanding and cooperation.

SILA Imports - imports@sila.net.au
SILA Exports - exports@sila.net.au
SILA Sales - sales@sila.net.au
T: (+61) 07 3908 1690

SILA Global Pty Ltd


Update on DPWA Cybersecurity Incident & Industrial Action

Dear Valued Customers & Partners,

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have been in contact with DP World senior management in order to update members on the latest on the protected industrial action continuing around the DP World terminals nationally.

Unfortunately, there is little change in that DP World today have announced another update suggesting the members of the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU, MUA Division) have, despite continued efforts to reach an understanding, outlined a further series of work bans and stoppages up to and including Monday 11 December.

Read the full media statement HERE

Full list of upcoming protected industrial action HERE

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have today received the following statement issued by Mr Nicolaj Noes, Executive Vice President Oceania - APAC of DP World addressing the cyber incident overview, response and recovery, investigation and security, support for impacted individuals, collaboration and gratitude, acknowledgement and thanks. 

Despite these recovery efforts, transport companies have communicated that in some cases, surcharges for containers arriving into DP World terminals will be applicable. Also, surcharges for weekends and/or after-hours collections will be applied as they strive to retrieve containers within their allotted free time.

These bans & stoppages continue to significantly impact our services, and we appreciate your understanding and flexibility during this period. Our team is committed to minimising disruptions and ensuring the smoothest operations possible. We will keep you updated on any further developments.

We acknowledge the potential impact of these disruptions; however, please be advised that SILA will not assume liability for any additional charges arising from these industrial actions.

Thank you for your continued trust and partnership and should you have any questions or concerns, kindly reach out to our dedicated team! 

SILA Imports - imports@sila.net.au
SILA Exports - exports@sila.net.au
SILA Sales - sales@sila.net.au
T: (+61) 07 3908 1690

SILA Global Pty Ltd