DP World Industrial Action Update
Dear Valued Customers & Partners,
Following is the updated advice received today from Nicolaj Noes (DP World Australia Executive Vice President - Oceania) on the current status at DP World terminals, with industrial action continuing until 30 October:
Dear Customers,
I write to provide an important update on the current protected industrial action being undertaken by the CFMMEU-MUA DIVISION and its impact on our operations.
Since the inception of the bans by the CFMMEU-MUA DIVISON on 6th October 2023, there have been tangible disruptions across all our terminals. Exporters, importers, and the broader supply chain have felt the ripple effects of these disruptions, particularly in berthing arrangements and landside services, including road and rail operations.
However, we are fully committed to seeking efficient alternatives at DP World. We aim to ensure vessels are serviced proficiently, upholding our scheduling commitments.
Over the last six months of Enterprise Bargaining, we've approached negotiations in the spirit of collaboration and good faith. Our stance has been flexible, making concessions where they align with the broader interests of our business, our customers, and the Australian community. However, the CFMMEU-MUA DIVISON’s current stance has posed challenges. Recent discussions held in September 2023 brought limited progress. While we had scheduled further meetings for 17-19 October 2023, their continuation is contingent on the cessation of protected industrial actions, a condition the Union has not yet agreed to.
Our priority remains clear: serving the Australian public and ensuring service disruptions are kept to a minimum. In the spirit of transparency and community interest, we implore the CFMMEU-MUA DIVISION to engage in constructive dialogue. While we recognise the right of the CFMMEU-MUA DIVISION to take industrial action, its repercussions are felt by our hardworking employees and the wider Australian community.
In compliance with Section 414(2)(b) of the Fair Work Act 2009 (Cth), please be informed of the forthcoming protected industrial actions by members of the CFMMEU covered under the DP World Enterprise Agreements. These actions aim to advocate for claims concerning a proposed Enterprise Agreement.
For specific concerns:
- Shipping lines and further clarification: cct.schedule@dpworld.com.au
- Sales-related concerns: sales@dpworld.com.au
Your understanding and patience during this period are greatly appreciated. Our commitment is unwavering, and we will continue to work towards ensuring seamless services for all our esteemed clients.
Warm regards,
Nicolaj Noes
Executive Vice President, Oceania
DP World Australia
Please note that these bans & stoppages will 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 - October 2023
Higher Diesel Fuel Prices Push Up Transport Operating Costs and Inflation
CTAA has issued a 'Notice to Industry' explaining how rising diesel fuel and excise costs are driving up road transport operating costs and inflation.
Australia’s monthly Consumer Price Index (CPI) indicator rose 5.2 percent in the 12 months to August 2023 according to the latest data from the Australian Bureau of Statistics (ABS) released on 27 September 2023. This was up from 4.9 percent in July. Fuel prices were one of the main factors nudging Australian inflation figures higher.
The inflationary impacts from fuel price rises are consistent with the latest fuel price analysis from the Australian Institute of Petroleum (AIP).
According to the AIP, the National Average diesel wholesale price for the week ending 22 September 2023 was 210.7 cents per litre (cpl). This is up by 10.60 percent in 3 months (@ 190.5 cpl) and by 12.43 percent from the same period last year (187.4 cpl).
There is a concern that the price of diesel will rise above the spikes witnessed in mid-2022 and again in late 2022 when the diesel price edged closer to 230 cpl.
In addition, what customers don’t see directly are the impacts on the complete cost of diesel fuel imposed on transport operators through the decision of the Federal Government to increase fuel excise levied on fuel used in heavy vehicles by 6% per year from July this year (2023) through to July 2026.
Most container road transport operators levy a Fuel Surcharge on their customers as a separate identifiable line-item to account for the fluctuations in diesel prices and the other costs of fuel.
The Fuel Surcharge level set is a commercial matter between transport providers and their customers.
There is no doubt however that rising diesel fuel prices and additional fuel taxes imposed by the Federal Government are putting pressure on operators to adjust their Fuel Surcharges accordingly.
*Source: Higher Diesel Fuel Prices Push Up Transport Operating Costs and Inflation (mailchi.mp)
WiseTech Global acquires MatchBox Exchange
Adds empty container optimization platform to its landside logistics solution
SYDNEY, Australia – WiseTech Global (ASX:WTC), developer of leading logistics execution software CargoWise, today announces it has acquired MatchBox Exchange, provider of a breakthrough online open market platform for the reuse and exchange of shipping containers between operators in the landside logistics space. Headquartered in Australia, MatchBox Exchange was acquired from private shareholders.
MatchBox Exchange operates in Australia, India, Indonesia, Israel, New Zealand, Malaysia, Philippines, Singapore, Taiwan, Thailand and Vietnam. Its customers are comprised of transport companies and their customers, freight forwarders and importers/exporters.
The MatchBox Exchange platform matches those who have a supply of empty containers with those who need them. MatchBox Exchange collaborates with global shipping lines, such as Maersk, CMA-CGM, MSC, Hapag-Lloyd, ONE, HMM and Yang Ming through direct integrations, to enable customers to conveniently reuse containers, or request or offer empty containers across businesses for their import or export needs. This helps landside logistics to be more efficient and productive by enabling faster turn-around times and reducing the cost and inefficiencies of transporting, hiring, de-hiring and storing empty containers.
Richard White, Founder and CEO of WiseTech Global, said: “We welcome the MatchBox Exchange team to WiseTech Global. There are a huge number of containers moving around the globe at any one time with 862 million TEU (Twenty Foot Equivalent Units) in 2022[1]. MatchBox Exchange brings new digital capability to optimize the reuse of shipping containers to reduce unnecessary trucking trips, increase container utilization and improve productivity. This is a great example of true optimization by offering more than mere visibility, creating actionable data for end-to-end process optimization across the supply chain.
“This transaction demonstrates WiseTech’s continued investment in our landside logistics development priority, enhancing our CargoWise ecosystem in the container optimization space, while helping to reduce traffic congestion in ports from unnecessary transport of empty containers. This brings us another step closer to delivering on our vision to be the operating system for global logistics,” he said.
MatchBox Exchange’s CEO, Carl Marchese, said: “Joining WiseTech Global will provide the scale and resources to grow the use of the MatchBox Exchange platform in new landside logistics markets, optimizing the reuse and exchange of empty shipping containers, driving better utilization of trucks and improving collaboration and productivity through digital processes.”
*Source: WiseTech Global acquires MatchBox Exchange | WiseTech Global
US avoids damaging government shutdown as fractured parties manage to compromise
A last minute deal by politicians in the US avoided a government shutdown that would have seen millions of federal employees go unpaid.
The decision by Republican House of Representatives Speaker Kevin McCarthy to turn to Democrats to pass a short-term funding bill pushed the risk of shutdown to mid-November.
The Democratic-majority Senate voted 88-9 to pass the measure to avoid the federal government’s fourth partial shutdown in a decade, sending the bill to President Joe Biden, who signed it into law before the 12:01 a.m. ET (0401 GMT) deadline.
*Source: US avoids damaging government shutdown as fractured parties manage to compromise (yahoo.com)
Port of Brisbane Achieves 5-Star GRESB Rating for Fourth Consecutive Year
For the fourth year running, Port of Brisbane Pty Ltd (PBPL) has received a 5-star GRESB rating – a globally recognised assessment that evaluates ESG performance and sustainability ‘best practices’ for real estate and infrastructure funds, companies and assets worldwide.
Based on data for the FY22 financial year, PBPL’s overall score increased to 98/100 (up from 94/100 in 2020/21), ranking Port of Brisbane as the number 1 port in Australia out of 6 in our division (Port Companies – Maintenance and Operations) and the 31st infrastructure asset out of 681 globally.
PBPL CEO, Neil Stephens, said the Port was delighted to achieve the highest star rating for the fourth consecutive year and to lead the way in the ports industry.
Read the full news release HERE
PBPL’s 2022/23 Sustainability Report is available on their website.
AUSTRALIAN TRUSTED TRADER
Australian Trusted Trader reduces red tape for Trusted Traders at the border, improves certainty in export markets, and expedites the flow of their cargo in and out of Australia, which means faster access to market.
Administered by Home Affairs with the Australian Border Force, Trusted Trader is free and accredits Australian businesses with compliant trade practices and a secure supply chain. Once accredited, businesses have access to a growing range of benefits that simplify their customs processes.
SILA Global is an Australian Trusted Trader (ATT) and we encourage our clients to explore the benefits of being an ATT. If you would like to discuss this further or be guided through the process, our in-house customs broker, Nic Demo, is happy to help!
Nicoll Demo
nicoll@sila.net.au
(+61) 07 3908 1622
HS Codes, Origin Criteria and Other Information on Certificates of Origin under Australia’s FTAs
The Australian Border Force (ABF) have released ACN 2023/43 to provide guidance to importers and licenced customs brokers in situations where differences between the certificate of origin (COO) and the information reported to the ABF via the Integrated Cargo System (ICS) may occur.
The new guidance allows for importers and their licenced customs brokers to self-assess the certificates and only encourages that a rectified COO be sought where multiple errors or discrepancies are identified. A COO can otherwise be relied on as valid as long as there is other information on the COO that clearly demonstrates that the COO relates to the goods in question, the COO is certified by the exporting Parties issuing body or authority and the origin of the goods is not otherwise in question.
The ABF is in the process of amending the ABF website, including a number of affected FTA webpages, to ensure up-to-date information is available to assist importers in making use of this revised information, which will occur in the coming days.
As per Australian Customs Notice 2023-43: “Compliance approach Importers and LCB are reminded to keep records and commercial documentation in accordance with the requirements of the Customs Act 1901."
Where a short payment results from an incorrectly claimed preferential rate of customs duty, an importer may be protected from liability for an offence against subsection 243T(1) or 243U(1) of the Customs Act 1901 if they make a voluntary disclosure through a written error notice, including that they relied on information on a COO at the time of importation.
A voluntary disclosure must disclose fully, truthfully and voluntarily, the details of the relevant import declaration and the nature of the errors.
A disclosure is taken to be given involuntarily if an error notice is given after the ABF exercises powers under a customs-related law to verify information in the statement (such as a 214AD notice), or an infringement is served relating to the statement or if proceedings have commenced in relation to the statement.”
Read full notice HERE
ANTI-DUMPING COMMISSION
Find goods currently subject to measures in the
dumping commodity register (DCR)
Notable updates - Steel products:
Wind towers
621 – Continuation – China
Wind towers
615 - Review - China
Railway wheels
632 - Continuation - China, France
DP World: Formal Notice of Intention to Take Industrial Action
Dear Valued Partners & Clients,
More on our notice regarding the impending industrial action at DP World terminals across Australia, please take note of the below formal notice from DP World regarding the industrial action.
We would like to bring to your attention an impending industrial action, in accordance with Section 414(2)(b) of the Fair Work Act 2009 (Cth), that may affect our port operations. Here is a detailed breakdown of the bans set to take place across our ports:
DP World Sydney:
• Commencing Saturday, 7 October, various bans on operations will be initiated, including overtime bans, shift extension bans, and other work-related bans. The majority of these bans will extend until Friday, 13 October.
DP World Melbourne:
• Beginning Sunday, 8 October, members will engage in a series of work stoppages ranging from 1-hour to 24-hour durations. Moreover, various bans on operations such as overtime, shift extensions, and work on certain ships will commence from Sunday, 8 October and will be in effect until Friday, 20 October.
DP World Fremantle:
• From Friday, 6 October, work stoppages of varying lengths will commence, alongside a variety of operational bans including overtime, work on certain ships, and others, all starting at 0600.
DP World Brisbane:
• Starting Saturday, 7 October, several bans on operations will be launched, such as overtime bans and shift extension bans, with a majority running until Friday, 13 October.
Read the full announcement from DP World HERE
Please note that these bans & stoppages will 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
DP World Industrial Action
5th October 2023
Dear Valued Partners & Clients,
The Maritime Union of Australia (MUA), a branch of the CFMMEU, has officially announced industrial action plans affecting DP World terminals. Commencing on October 6th, this action is in response to ongoing negotiations for a new Enterprise Bargaining Agreement (EA).
The industrial action encompasses both work bans and work stoppages, with some stoppages lasting a full 24 hours. These measures will impact DP World's terminals located in Sydney, Melbourne, Fremantle, and Brisbane.
Over at DP World Fremantle, changes will come into effect from Friday, October 6th. This includes work stoppages of varying durations and a range of operational bans, including overtime and specific ship-related tasks, all commencing at 0600.
DP World Sydney will undergo significant changes starting Saturday, October 7th. During this period, various bans on operations, including overtime and shift extensions, will be implemented, with the majority of these restrictions continuing until Friday, October 13th.
In DP World Brisbane, beginning on Saturday, October 7th, several operational bans, including overtime and shift extensions, will be initiated, with the majority of these bans continuing until Friday, October 13th.
Meanwhile, at DP World Melbourne, effective from Sunday, October 8th, we anticipate a series of work stoppages lasting from 1 to 24 hours. Additionally, various operational bans, such as overtime and work on specific vessels, will be enforced from October 8th through to Friday, October 20th.
A full list of the Log of Bans notified by the MUA (as at 29 Sept 2023) can be downloaded: HERE
See the full Media Statement from DP World: HERE
Please note that these bans & stoppages will 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
Qantas Terminal Delays Across Australia
5th October 2023
Dear Valued Partners & Clients,
We continue to experience significant delays in the arrival of inbound cargo at major Australian ports, specifically in Sydney, Melbourne, and Brisbane. To provide full transparency, we would like to outline some of the challenges we are currently encountering:
- Extended Wait Times: Cargo is taking an unusually long time to become available for collection, leading to delays in our operational processes.
- Manual Collection Process: Our drivers are experiencing lengthy waits in queues as they manually inspect and verify each shipment, resulting in increased turnaround times.
- Location Issues: Some shipments marked as "ready for collection" are proving challenging to locate, causing further delays in the collection process.
- Unit Breakdown Delays: Cargo units are not being efficiently broken down upon arrival, causing them to remain intact and awaiting processing.
- Release Discrepancies: There is a lack of order in the release of cargo, with no clear prioritization based on arrival dates or freight type, whether loose or unitized.
In light of these circumstances, we strongly recommend that for all upcoming air freight shipments, you submit your import documents to us well before the cargo's arrival. This proactive measure will enable us to closely monitor and manage your shipments more effectively.
Your cooperation and understanding during these challenging times are greatly appreciated, and we remain committed to providing the best possible service despite the current disruptions.
Read the full Qantas Freight news release HERE
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 delays.
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
China Golden Week
Dear Valued Partners & Clients,
China Golden Week is a significant national holiday in China, during which many businesses and government offices will be closed. This holiday typically spans seven days, from October 1st to October 7th, and it includes the celebration of China National Day. Please be aware that during this period, there may be disruptions and delays in our services, including production, shipping, and communication with our Chinese counterparts.
We understand the importance of your business operations and are committed to providing you with the best service possible. While we aim to minimize any inconveniences, please be prepared for some delays due to the holiday period.
If you have any questions or concerns, please do not hesitate to reach out to our dedicated team. We will do our best to address your needs promptly.
Golden Week 2023, 2024 and 2025 - PublicHolidays.cn
Thank you for your continued trust and partnership.
SILA Imports - imports@sila.net.au
SILA Exports - exports@sila.net.au
SILA Sales - sales@sila.net.au
Market Update – October
Greetings from SILA Global!
As October unfolds, it's crucial to examine the evolving landscape that defines this industry and delve into the challenges and opportunities shaping the industry this coming month. The China market is bracing itself for significant shifts in the shipping and logistics landscape, primarily due to the annual National holiday, which spans from October 1st to October 7th. This holiday period, while a time of celebration and reflection for many, has ripple effects that resonate throughout the shipping industry. Here, we delve into the forecast for the next month and the challenges and changes that lie ahead.
Space Supply and Scheduling
Week 39: Schedule Shuffling
The kickoff to October brings with it several notable alterations to shipping schedules. In Week 39, we'll witness:
- North East Asia-Australia (A3N) Service Sliding:The A3N service is set to slide into Week 40. This schedule change will necessitate adjustments for shippers and logistics operators.
- Panda Bunching:A phenomenon known as "Panda Bunching" is expected. Multiple shipments are grouped together, resulting in altered transit times and potential delays.
- Service Delays - China-Australia Express (A1X):The A1X service, originally planned for Week 39, will also be affected by the holiday and will now operate in Week 40.
Week 40: Blank Sailing Dominates
Week 40 will see a significant impact on shipping services, including:
- Blank Sailing Galore:Most of the services, including North East Asia (A3C), China-Australia Express (CAX), China-Australia (CA2), and MSC's Panda & Dragon services are expected to go blank during this week. Blank sailing involves canceled voyages, causing disruptions in cargo movement.
- Bunching- A3N/A1X:Bunching is anticipated for A3N and A1X services, further complicating scheduling and logistics.
Week 41: More Blanks, Bunching & Omissions
Week 41 continues the trend of schedule interruptions, with:
- Blank Services:North East Asia (A3N), North East Asia (A3S), Asia-Australia (AAs), and China-Australia (CAT) services are expected to be blanked, meaning they won't be operating during this period.
- Bunching - Thailand-Fremantle Express (TFX):The trend of "bunching" extends to the TFX service, leading to potential delays and congestion.
- Service Omission - CAT (EMC/YML/SNL/HPL): The first notable omission comes from the CAT alliance, which includes EMC, YML, SNL, and HPL. In Week 41, this alliance will omit several crucial ports, including Shekou (SHK), Shanghai (SHA) and Ningbo (NGB).
- Service Omission - CA2 (SLS): The China-Australia (CA2) service, operated by SLS, will also see an omission in Week 41. Ports like Qingdao (TAO), Shanghai (SHA), and Shekou (SHK) will not be part of the service during this week.
- Service Omission - AUN (ONE/MSK): Week 41 brings another omission, this time from the Australia North East Asia (AUN) service, which includes ONE and MSK. Ports like Qingdao (TAO), Ningbo (NGB), Yantian (YTN), and Shanghai (SHA) are excluded during this week, affecting cargo schedules and logistics planning.
- Service Omission - A3S (CMA/COSCO/OOCL/PIL): Week 41 brings an omission for the North East Asia (A3S) service, operated by CMA, COSCO, OOCL, and PIL. Ports like Xiamen (XMN) and Shekou (SHK) will not be part of the service during this week, potentially affecting cargo movements in the region.
- Service Omission - A3C (OOCL, COSCO, ANL, PIL): North East Asia (A3C) service, involving carriers OOCL, COSCO, ANL, and PIL, will omit Shanghai (SHA) and Ningbo (NGB).
- Service Omission - CAX (GSL): The China-Australia (CAX) service by GSL will face double omissions in Week 41 and Week 42. Ningbo (NGB) and Shenzhen (SZX) will not be served during these weeks.
Week 42: A Bunching & Omissions Encore
As the holiday season draws to a close, Week 42 will witness:
- Bunching - A1X/CAX/Panda:The month ends with bunching for A1X, CAX, and Panda services, adding another layer of complexity to cargo scheduling.
- Service Omission - CAX (GSL): The China-Australia (CAX) service by GSL will face double omissions in Week 41 and Week 42. Ningbo (NGB) and Shenzhen (SZX) will not be served during these weeks.
Service Omission - CAE/NEAX (EMC/ONE/HMM): Week 42 brings an omission for the China-Australia (CAE) & North East Asia (NEAX) service, involving carriers EMC, ONE, and HMM. Yantian (YTN), a significant port, will not be included in this week's service.
CA2 Consortium Contract Expiration - March 24
As the global shipping industry continues to navigate a complex and ever-changing landscape, one topic has captured the attention of industry players and experts alike: the China Australia Service (CA2) Consortium.
This consortium's existing contract is on the verge of expiration, with the deadline set for March 24. The uncertainty surrounding the future of the CA2 Consortium has triggered discussions and speculations within the maritime community. Industry stakeholders are keenly interested in whether this influential consortium will choose to extend its operations beyond this pivotal date. The implications of this decision are far-reaching and have the potential to impact the dynamics of the global shipping market significantly.
In the midst of this uncertainty, SILA remains dedicated to providing the latest updates, ensuring that you stay well-informed and prepared to navigate the intricacies of the shipping and logistics industry. Keep a close watch as we continue to monitor developments surrounding the CA2 Consortium's contract expiration.
While China's National holiday is a time of celebration, it also poses unique challenges for the shipping and logistics industry. With schedule changes, omissions, blank sailings, and bunching becoming the norm for the next few weeks, adaptability and proactive planning will be key to ensuring smooth operations in this dynamic environment. As the holiday season unfolds, stakeholders in the China market must stay vigilant and agile to steer their businesses through these turbulent waters.
Flexibility and proactive decision-making will be essential to navigate the complexities of the global shipping landscape in the weeks ahead. By keeping a watchful eye on trends and a readiness to embrace innovation, together we can navigate the seas of change and chart a course toward a more resilient and prosperous future.
Please reach out to our dedicated representatives for guidance and solutions that cater to your specific requirements and thank you for entrusting us with your shipping needs.
SILA Global Commercial Team
CCO - jason@sila.net.au | BDM - johann@sila.net.au | BDM - monowar@sila.net.au
T: (+61) 02 9556 4866 | E: sales@silanet.au
IFCBAA: US Government Potential Shut Down Draws Near
Dear Valued Clients & Partners,
IFCBAA has overnight been involved in communications with the NCBFAA (National Customs Brokers and Forwarders Association of America) on this issue.
Both organisations have reciprocal organisation membership with each other, on behalf of their respective members.
Given the now high likelihood of a US Government shutdown this Sunday night (US ET), NCBFAA has issued a joint industry statement, which advocates for all US government agencies involved in international trade to remain open.
At this stage, it appears that an essential services policy may see a number of main border clearance processes in the US remain open, however the full scope of that situation applying across all relevant government agencies involved in international trade remains unclear, with high risks of stoppages and ongoing delays, being likely
Unless a surprise solution is agreed upon and rushed through today (Friday) US ET, then the NCBFAA is of the view that this impasse could possibly take several weeks for a resolution to be achieved.
This raises high prospects of significant disruption and delays being experienced in the servicing of cargo at major ports, airports and related precinct areas throughout the US from Sunday night.
IFCBAA members would be well advised to inform their customers, agents and offices that have shipments in progress to and from the US at this time, of prospective delays and potential knock-on effects in areas such as demurrage.
The last time this occurred, the USITC HTS website went down, the NCBFAA have downloaded a current version at this time of this and firewalled it, which can be accessed through this link https://hts.usitc.gov/ .
More detailed information on the current situation is available on a industry podcast that was recorded yesterday in the US, that included commentary from Megan Montgomery, Executive Vice President of NCBFAA. https://gtc.trade/simply-trade-podcast/
This warning for members is based on what is known at this stage, on a worst case scenario heading into this coming weekend.
The statement from NCBFAA is contained in the below link: Joint Trade Industry Statement Regarding a Potential Government Shut Down on October 1st.pdf (informz.net)
Scott Carson
CEO
If you have any questions or concerns, kindly reach out to our dedicated sales team.
Thank you,
SILA Global
Upcoming Public Holidays - Australia
Dear Valued Partners & Clients,
Kindly take note of the upcoming public holidays in Australia.
SILA Global will be operating with limited staff on these days however most transport companies and container/freight depots will be closed.
AFL Grand Final - Friday 29 September - Victoria
Labour Day - Monday 2 October - Australian Capital Territory, New South Wales
King's Birthday - Monday 2 October - Queensland, South Australia
Public holidays (australia.gov.au)
If you have any questions or concerns, please reach out to one of our dedicated team.
- SILA Imports - imports@sila.net.au
- SILA Exports - exports@sila.net.au
- SILA Sales - sales@sila.net.au
Thank you for your patience and understanding.
Insight - September 2023
Blanked sailings are now the norm
Blanked Asia-Europe sailings have become expected in liner operators' routines, according to Alphaliner's latest report today (16 August).
Record newbuilding deliveries have made operators reduce sailings to manage capacity and THE Alliance has the largest percentage of skipped schedules.
THE Alliance has blanked just over 10 of its sailings, translating to nearly 20% of sailings that have been skipped. In comparison, the OCEAN Alliance has skipped 10 of its 90-odd voyages, amounting to a suspension rate of 10%.
Skipping sailings was initially a way to reduce capacity in times of low cargo demand. During the Covid-19 pandemic, missed sailings were the consequence of port congestion with ships arriving too late for a new round voyage. Now with the influx of new tonnage and a sufficient amount of available ships, blanked sailings have become common practice for a different reason. Even with ONE receiving new ships, THE Alliance had the largest percentage of skipped sailings in June and July.
The 2M agreement of MSC and Maersk blanked only three China-Europe trips, or 4% of sailings, in the same period. That said, MSC has struggled to fill slots on its standalone weekly Swan service that connects Asia to North Europe and Russia.
Last week, MSC implemented an eleventh-hour void sailing affecting the 14,000 TEU MSC Deila.
Alphaliner said, "Limiting capacity should remove some pressure on spot freight rates."
When the Shanghai Containerized Freight Index (SCFI) closed on 11 August, Asia-North Europe rates went dipped to US$926/TEU, while Asia-Mediterranean rates went down to US$1,507/TEU.
Although Transpacific rates edged up to US$2,017/FEU for Asia-US West Coast and US$3,071/FEU for Asia-US East Coast, Linerlytica said these could come under pressure, as cargo volumes remain lower year-on-year and the Panama canal draught restrictions have had limited impact since priority passage is granted to liner services.
Read the full press release here
**SOURCE, Container News, By Martina LI 16/08/2023
DP World to boost container-handling capacity by year-end as demand rises
DP World to boost container-handling capacity by year-end as demand rises
Global ports operator DP World plans to add about three million Twenty-Foot Equivalent Units (TEUs) of container-handling capacity by the end of the year to help meet growing demand in key trade markets.
The company, which currently manages approximately 9 per cent of the world’s handling capacity and is among the top five global ports operators, said the addition will take its total gross capacity to 93.6 million TEUs.
Its medium-term target is to reach 100 million TEUs per year, depending on demand, Tiemen Meester, chief operating officer of ports and terminals at DP World, said in a statement on Tuesday.
"We have to take a longer-term view of global economics, looking at how demand will change and how we can meet it in the most efficient way," Mr Meester said.
The capacity additions to be completed this year in key markets include Caucedo (Dominican Republic) with an additional 1.2 million TEUs, Yarimca (Turkey) with an additional 579,000 TEUs, Sokhna (Egypt) with an additional 500,000 TEUs and Jeddah (Saudi Arabia) with an added 200,000 TEUs.
Other markets include Callao in Peru and Saigon in Vietnam with another 200,000 TEUs. Terminals in Luanda, Dakar, Berbera and Vancouver will each get an additional capacity of 100,000 TEUs.
The expansion plan comes as global container throughput is forecast to grow to 932 million TEUs by 2025, up from 858 million TEUs in 2021, according to maritime research and consulting services firm Drewry.
"The firm’s capacity expansion plans come at a vital time with inflation, increased cost of living and geopolitical uncertainties causing concern about global trade and fuelling demand for faster, more resilient supply chain solutions," DP World said.
Read the full article here
**SOURCE, The National, By Deena Kamel 15/08/2023
China’s heavy-duty truck industry: The road ahead
Premiumization, electrification, autonomous driving, and a value pool shift to solutions and services will shape the future of heavy-duty trucks in China.
Over the past decade, China has experienced an infrastructure boom and mushrooming demand for road transportation, leading to rapid growth of the heavy-duty-truck (HDT) market. Sales of HDTs in China grew from 600,000 vehicles in 2015 to a peak of 1.6 million in 2020. Then, in 2022, the HDT market in China went into a slump; a regional economic slowdown, COVID-19 lockdowns, and the fact that many customers prepurchased HDTs in 2020 and 2021 resulted in a sales volume of only 700,000 vehicles in 2022.
This slump is unlikely to be permanent. Given the size and resilience of the country’s economy, we expect the Chinese HDT industry to rebound and retain a significant and stable commercial base. That said, the rapid development of the past decade will be difficult to replicate.
As of 2022, the top five participants in China’s HDT market held more than 80 percent of the market—and the industry is becoming more concentrated. As demand normalizes after the boom, the established leaders will likely maintain their positions at the top of the market, but competitors from other geographies and adjacent sectors—including, for example, OEMs that formerly specialized in electric passenger vehicles—are likely to continue to jostle for position. Another example is that some global OEMs are already investing in the market, localizing their manufacturing by forming or acquiring Chinese companies to reduce costs and meet specific needs of local customers.
Read the full article here
**SOURCE, McKinsey & Company, 09/08/2023
Panama Canal Update: Restrictions to Last 10 Months
In a significant maritime development, the Panama Canal Authority has issued a warning that stringent water-conserving measures will remain enforced for the next 10 months, impacting global shipping operations. This restriction comes as a response to an unprecedented drought coupled with the influence of the El Niño weather phenomenon.
Key Developments:
- The Panama Canal Authority has appealed to global shipping organizations to collaborate on sharing transit plans, particularly at this vital maritime chokepoint.
- In response to adverse weather conditions, administrators at the Panama Canal have implemented several measures:
- Draft restrictions for ships transiting neopanamax locks have been reduced by 2 meters.
- Daily transits have been curtailed by 20%, allowing only 32 vessels per day, leading to a substantial backup of ships at both ends of the canal.
- The current tally of ships awaiting transit stands at 129, down from a peak of 165 earlier this month, but still notably higher than the average, marking a 43% increase.
- The deputy administrator of the Panama Canal, Ilya Espino, confirmed to Reuters that these restrictions are set to persist for the next 10 months, spanning throughout the first half of the upcoming year.
- Container services and cruise itineraries, which often involve long advance bookings, will feel the impact differently from bulk sectors, where the impact is more immediate and unplanned.
- For larger containerships facing draft restrictions, approximately 2,500 TEUs of space cannot be utilized, resulting in a maximum headhaul utilization of 84%. Options like re-routing via the Suez Canal are being considered.
- Smaller containerships, still able to pass fully laden, are exploring alternatives like backhaul returns to Asia via the Suez or the Cape, even though these routes entail longer distances and times.
- The Panama Canal Authority and industry players such as the World Shipping Council, INTERTANKO, INTERCARGO, and BIMCO could potentially collaborate to optimize resource utilization in the short and medium term.
- Despite these developments, the impact on container spot rates over the past two weeks has been relatively muted. However, experts suggest that prolonged restrictions may lead to increased freight rates and potential cargo diversions.
Industry Insights:
- Niels Rasmussen, Chief Shipping Analyst at BIMCO, emphasized that extended restrictions could result in further freight rate hikes and the possibility of cargo redirection to US West Coast ports via rail.
- Notably, the predicament in Central America is unlikely to have a significant impact on global supply chains, as the container trade is already grappling with excess ship capacity. Read more here & here
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