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.

Date Holiday Office Location Office Status
Friday, 15-April-2022 Good Friday Australia CLOSED
Monday, 18-April-2022 Easter Monday Australia CLOSED
Monday, 25-April-2022 ANZAC Day Australia CLOSED
Monday, 02-May-2022 Labour Day Queensland Only OPEN (Limited Staff)

 

 

 

 

 

 

 

 

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:-

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


SEQ Flood Event - Port of Brisbane Disruptions

Dear Valued Customers & Partners,

We have received an update from our transport partners about the serious impact the SEQ flood event is having on logistics and port operations in Brisbane.

The significant flooding event in SE Queensland is having a negative impact on container logistics operations through the Port of Brisbane.

Vessel operations in the Port of Brisbane has been suspended by the Regional Harbour Master while the situation with debris coming down the Brisbane River is assessed. This will have impacts on vessel export receival times and import availabilities.

The Port of Brisbane is reporting that there have been some minor damage on a number of port roads, but that there are no access restrictions on roads in the Port at present.

The Port of Brisbane has issued an update which can be viewed: HERE

Landside logistics operations are being disrupted with drivers and other workers unable to attend work due to road restrictions, and/or yards inundated by flood waters. Also, numerous customers' premises and warehouses have been affected and are reported as closed.

Regional routes have also been impacted such as to Ipswich and Toowoomba.

Our team will be in contact regarding any changes to slotting or delivery arrangements affected by the current situation. If you can also please advise our team asap regarding any customer site closures or delivery changes that may need to be made, that would be greatly appreciated.

There will undoubtedly be some disruption in the coming days due to changing vessel availabilities, road closures, site closures etc., but please be assured we will endeavour to do our very best to provide continued support and service to our customers during this challenging time.

We hope everyone is staying safe during this unprecedented weather event.

Thank you,

SILA Global Pty Ltd


2ND UPDATE: ​​​​​​​Australian Logistics Supply Chain Under Severe Pressure and Rising Costs

22-February-2022

2ND UPDATE: Australian Logistics Supply Chain under Sever pressure and rising costs

We have been sending updates to clients over the last month highlighting the current state of the domestic logistics landscape which are available here and here. There is a level of improvement in some areas, however there continues to be issues within the industry which I will address below.

Detention costs from shipping lines are occurring as transport carriers struggle to return empty containers within free-time due to a number of reasons such as: severe backlog, yard congestion (both at dehire depots and at transport yards), as well as a lack of equipment and a lack of labour to operate the equipment. Unpack times can vary depending the commodity, delivery & dehire locations, and port of arrival. Current turnaround times on unpacks are around 14 days from the date of terminal slot booking.

Once again, we must advise our clients to please request a minimum 14 free days container detention on their bookings not managed by SILA. We will consider detention on a case-by-case basis and will do the best we can to get containers back on time; however customers may need to factor in detention costs, especially on bookings that offer the minimum 7 or 8 days from discharge.

In our previous notices we have indicated that costs have been increasing and this is now to a level that we need to pass on a General Rate Increase (GRI) to commence mid-March. This will be implemented for Victorian (Melbourne) shipments first, however we expect other states to follow suit and will keep you informed.

We have also recently conducted an internal review of the time taken to receive payments vs the credit terms provided, and I am sure it comes as no surprised that receiving full payment of invoices has increased quite significantly over the last 18-24 months and, as a result, we will be viewing how we handle invoicing differently moving forward.

There are 2 cost mechanisms in getting cargo to our clients which are costs paid ‘upfront’, in order to gain release of cargo or load it on a ship, and the second being the costs which occur after arrival (for imports) or before departure (for exports). Costs that require upfront payment include any Customs payments for clearance and payments to shipping lines for delivery orders. Customs charges have been a disbursement type charge for a few years however we will now be including charges paid up front, on our customers behalf, in the disbursement invoice category. The main effect here will surround shipping line port charges and we will provide credit to customers that have credit granted but it will be in line with clients disbursement terms.

There will be no changes to final invoice terms or for customers that require proof of delivery documents for loose deliveries or to those who already have other arrangements in place. We will be reaching out to parties these changes will affect. We also understand that, for some customers, this may cause some initial issues however this change is necessary for SILA Global to maintain the standards of service we strive to provide and we appreciate your understanding.

We will continue to monitor and keep you up to date when further info is received.

Simon Pepper 
Managing Director
SILA Global Pty Ltd


Addition of China to the BMSB Emerging Risk Country List

15-February-2022

Addition of China to the BMSB Emerging Risk Country List

Dear Valued Customers & Partners,

The Department of Agriculture Water and Resources has published Import Industry Advice Notice 20-2022: Addition of China to the BMSB Emerging Risk Country List and is quoted below for your information.

As a result of detections of live BMSB in some containerised commodities originating in China, the department will be adding China as an emerging risk country for the remainder of the 2021-22 BMSB season.

The increased random inspection activities will apply to the following goods:

  • Goods manufactured in, or shipped from China and,
  • FCL / FCX containers – for goods shipped in sealed 6 hard sided containers and,
  • Goods tariffed as Chapters 39, 68, 69, 70, 73, 84, 85 and 89.

LCL / FAK containers and break bulk goods (including those shipped on flat rack or in open top containers) are out of scope for increased inspection activities.

In scope containers, as identified above, will be selected at random and will be directed for an ‘Inspection – Seals Intact Inspection’ at a Class 1.1, 1.3, 2.1 or 2.2 Approved Arrangement.

Thank you,

SILA Global Pty Ltd


Shipping Containers Logistics

UPDATE: Australian Logistics Supply Chain Under Severe Pressure and Rising Costs

08-February-2022

UPDATE: Australian Logistics Supply Chain Under Severe Pressure and Rising Costs

Dear Valued Customers & Partners,

We recently sent out a notice in regards to severe pressure and rising costs in the supply chain (view here). The situation continues to be problematic and we would like to keep you posted with further information.

Transport companies continue to report staff shortages as a major problem, which has not subsided, and has had a domino effect on operating costs. One of Australia’s biggest domestic logistics providers, ACFS, indicate, “Despite paying hourly rates of between 23 - 42% above the modern award for hourly paid roles at ACFS in the eastern states and WA, the continued lack of skilled labour for such positions as warehouse high reach forklift drivers”. With the high turnover of labour & drivers this also leads to reduced reliability in service delivery.

In addition to this, other operating costs continue to increase. Capital equipment is fetching a premium due to high demand and issues in supply/manufacture resulting from shortages of certain components. Diesel prices are the highest they’ve been in more than 6 months and continue to increase (read more here). Administration expenses have increased as tasks which would have been simple prior to the pandemic now require additional touch points, follow up and take more time to complete. This means businesses need to increase their staff count to alleviate pressure on current staff and avoid negative turnover, plus financing costs continue to rise mainly due to payment terms being stretched further and further.

Local transport companies are now adding (or enforcing) bans on considering detention, and we ask for our clients to please request minimum 14 free days detention on their bookings not managed by SILA. We will consider detention on a case-by-case basis and will do the best we can to get containers back on time however customers may need to factor in detention costs, especially on bookings that offer the minimum 7 or 8 days from discharge.

Supply Chain pricing has traditionally been the first cost that is reviewed by importers and exporters where cost savings are needed however, the industry is heading to a point where, to maintain profitability, an increase must occur. Our supply chain is at a critical point where it is apparent that wages and other multiple operating cost increases are here to stay. These increases cannot be adsorbed and therefor rates will also increase to maintain the ability to provide services to customers and keep cargo moving. The recent introduction of COVID Levies will not be enough to alleviate this and unfortunately there will be a general rate increase incoming within the next few weeks as companies navigate the current situation and understand the impact on costs.

We will continue to monitor and keep you up to date when further info is received.

Simon Pepper
Managing Director
SILA Global Pty Ltd

 


Australian logistics company

Australian Logistics Supply Chain Under Severe Pressure and Rising Costs

20-January-2022

Australian Logistics Supply Chain Under Severe Pressure and Rising Costs

Dear Valued Customers & Partners,

We would like to draw your attention to issues currently facing the Australian Supply Chain and the severe pressure it is under right now to meet demand and facilitate service levels. The issue mainly stems from the amount of COVID case numbers currently being experienced on Australia’s East Coast, which is resulting in severe labour shortage, including terminal workers, truck drivers, container unpackers, admin staff and more. Even with changes to close contact isolation rules, a lot of damage has already been done and the issue remains, it will be a case of “it will get worse before it gets better”.

The issue is being covered by various media sources and industry bodies. Here are some links for your reference.

Over the last few days, we have received many notices from transport companies, both contracted and not contracted by SILA, about the introduction of a temporary COVID Levy. Unfortunately, these additional fees will need to be passed on and will be listed on our monthly ancillary tariff with the first being effective 01 Feb. It’s not only transport companies implementing these levies with the Victorian International Container Terminal (VICT) also introducing a COVD Levy siting “Throughout the last two years of the pandemic, VICT has absorbed the cost of additional COVID requirements but due to the latest outbreak and overall increase in costs especially relating to Rapid Antigen Tests, we have no option but to apply a temporary tariff to recover some of the extraordinary costs.” We expect that other terminals will follow suit. The levy will have a ‘knock on’ effect going through the entire supply chain and, we expect that shortly, most of the logistics industry will be charging this levy in some form or another.

Other costs are also rising within the supply chain, either due to COVID, scheduled pricing increases or other economic factors. For example, the price of diesel has risen and remained high over the last few months, Ad Blue Shortages have driven its price up, Terminal Infrastructure Fees are also on the move once again as Terminals have published information that they will, once again, increase these fees. The cost of labour and staff has increased as the labour shortage starts to drive up wages to secure and retain staff; I use this to highlight how many different areas that supply chain costs are increasing and we expect this to continue for some time but this will ultimately result in a base line overall increase or a General Rate Increase (GRI) within the supply chain space.

We will continue to monitor and keep you up to date when further info is received.

Simon Pepper 
Managing Director
SILA Global Pty Ltd