Industry Update
To Valued Customers & Partners,
Container Road Transport Costs Skyrocket
Container Transport Alliance Australia (CTAA) Media Release
Rising fuel and fuel additive costs caused by global factors & demand, labour & skills shortages, long equipment purchase lead times, supply chain capacity constraints, and fees imposed by third parties are significantly squeezing container transport operator margins and cash flows in Australia.
To survive, transport operators have had little choice but to pass on rising costs to freight forwarders, importers & exporters, which ultimately add to higher consumer prices and rising inflation.
Removal of Free Storage Days for Weekends and Public Holidays
Fremantle Ports Letter to Customers
Over recent years there has been a general increase in demand for common-user berth laydown areas, a trend that has increased since the onset of COVID-19. This demand is resulting in increased congestion, delays to vessel berthing and increased supply chain costs.
Fremantle Ports has been working with industry participants over recent months to remove bottlenecks and improve the overall supply chain efficiency. As an example, a five-day shipping shutdown was carried out for Berths 11 & 12 to enable a focus on clearing cargo. While these types of initiatives are proving valuable, there are occasions when berth laydown areas are being used for storage and distribution rather than efficient discharge of vessels.
In a bid to encourage better utilisation of laydown areas and reflect the 24/7 nature of port operations, effective 1 July 2022, the storage-free days on weekends and public holidays will be removed when they fall within the four free days.
This change is aimed at helping improve overall efficiency of the supply chain.
We will continue to review our rates and charges to ensure they are appropriate and drive the right behaviour and overall supply chain efficiency for the benefit of all port users.
Thank you for your understanding and co-operation.
Given the current conditions, SILA is not in a position to accept responsibility for any additional transport charges, wharf storage, or container detention that may be incurred as a result.
We are continuing to monitor the situation and will keep you posted as the situation changes, for better or worse.
In the meantime, SILA and our transport partners continue to do everything possible to minimise negative impacts on our clients, and we thank you for your patience, understanding, and kindness to staff through this period.
In the meantime, should you have any concerns, please don't hesitate to reach out to your SILA Sales representative.
Thank you,
SILA Global Pty Ltd
2nd Update: East Coast Inclement Weather & Flash Flooding
To Valued Customers & Partners,
As this unprecedented East Coast Low continues to bring heavy rainfall and damaging winds, it's our industry, and supply chain that are once again severely impacted. Many NSW depots, roads & access points have received heavy rainfall and flooded as a result severely impacting operations. SEQ is also receiving a drenching this week albeit not as impactful on operations as what we are seeing in Sydney.
Additionally, we have received notice that all freight rail services have ceased between Port Botany and Newcastle and will remain closed for several days. This will result in a backlog of freight getting to and from the terminals. We will endeavour to collect & deliver to the terminals to meet cut-off times for vessels although vessels are also experiencing delays.
The current forecast is predicting that the services will remain canceled for a couple of days until the situation has eased and lines can be inspected and certified. As a result, unpack, delivery and de-hire delays are inevitable, so please be mindful and ensure your end receivers are well informed of the same. Whilst best efforts will be made, we cannot be held liable for storage at the wharf/detention or other associated cost accrued due to the weather event.
Related Articles:
+ Efforts to move cargo ship stranded off Sydney suspended after tow lines snap in wild weather | Australia weather | The Guardian
+ Sydney Weather: Hundreds evacuated as rain and winds lash Sydney, NSW Central Coast and Hunter | Daily Mail Online
+ Sydney weather: Suburbs at risk of flooding, road closures, train updates | news.com.au — Australia’s leading news site
As always, SILA Global & our dedicated team are working hard to minimise the impact and we appreciate your patience & understanding during these difficult, unprecedented times.
In the meantime, should you have any concerns, please don't hesitate to reach out to your SILA Sales representative.
Thank you,
SILA Global Pty Ltd
East Coast Inclement Weather & Flash Flooding
To Valued Customers & Partners,
Australia's East Coast is once again being battered by inclement weather, heavy rain & flash flooding causing significant disruptions to the supply chain.
The east coast low that caused much of the flooding was weakening, but heavy rainfall was still slated for Sydney, with the Bureau of Meteorology forecasting up to 100mm again on Monday morning, before conditions eased during the afternoon and evening.
Related Articles:
+ Australia weather: East coast battered with non-stop rain with one man dead and 32,000 evacuated | Daily Mail Online
+ NSW floods: thousands evacuated from rising waters as Sydney braces for more wild weather | New South Wales | The Guardian
+ SES, weather bureau issue flood warnings for Shoalhaven catchments as torrential rain continues - ABC News
As always, SILA Global & our dedicated team are working hard to minimise the impact and we appreciate your patience & understanding during these difficult, unprecedented times.
In the meantime, should you have any concerns, please don't hesitate to reach out to your SILA Sales representative.
Thank you,
SILA Global Pty Ltd
Industry News – 30 June 2022
INDUSTRY NEWS
IFCBAA: Container demurrage & detention charges reach records highs!
According to recent reports, FIATA said “demurrage and detention charges have doubled, resulting in complaints across the US, Europe, and Asia Pacific with a reported significant increase in demurrage and detention charges over the past few years
Today’s maritime supply chain continues to undergo severe disruptions, exacerbated further by the ongoing COVID-19 pandemic. Schedule reliability in terms of transit and frequency are now at an all-time low resulting in a total absence of predictability, whilst freight rates are at record high levels”.
Freight forwarders and their customers – many of whom are small and medium-sized enterprises (SMEs) – are particularly hard hit by these rocketing prices, being increasingly subjected to spot contracts with high price volatility as compared to longer-term contracts held by beneficial cargo owners.
Read more here.
ASSDA: Global Industry Supply Chain Pressure
Simon Pepper, Managing Director of ASSDA Member SILA Global, provides an important update on shipping and logistics in the Australian supply chain.
Read the full article here.
Prime Mover: Shipping profits raise calls for law change
Global rises in shipping prices and profits have led to calls for change in Australia’s Competition and Act Consumer law.
CEO of the Victorian Transport Association (VTA), Peter Anderson, explained that while industries such as tourism, hospitality and retail were impacted by public health restrictions in response to COVID-19, transport continued with fewer disruptions. According to him, this is because of the essential service they provide, but that factor did not prevent similar disproportions in the financial performance of different links in the supply chain.
“Road freight operators in Australia have experienced spiralling diesel costs, which other transport modes haven’t been exposed to,” he said.
“The financial impact of the pandemic on shippers is worth examining in consideration of competition exemptions they receive under Competition and Act Consumer 2010, with increases in shipping liner super profits of up to 900 per cent further evidence Part X of the Act needs to be repealed.”
Read more here.
gCaptain: Empty Container Boxes Stuck At Rotterdam May Stoke Asia Shortage
Jun 20, 2022,(Bloomberg) —Empty container boxes crucial for Asia’s exporters are getting stuck in the port of Rotterdam as a growing backlog of undelivered goods at Europe’s export hub forces ocean carriers to prioritize shipments of filled boxes.
The Dutch port has faced an onslaught of both goods and empty boxes offloaded from other European maritime operations, shipping experts said. This has coincided with carriers reducing the number of vessel trips from the continent to China after Shanghai authorities locked down the city in March, they said.
“Terminals are allowing shipping carriers only a limited capacity for empty boxes and are focusing on transporting loaded containers,” Kuehne + Nagel International AG, one of Europe’s largest freight forwarders, said in an e-mailed reply to questions. “Containers are piling up at the terminals, and more and more containers cannot be returned on departures, including those to Asia.”
The port of Rotterdam port didn’t immediately respond to a request for comment.
Read more here.
ASSDA: PacRim Stainless 2022
Less than 1 month until PacRim Stainless 2022 event with many guest speakers, including our very own Managing Director - Simon Pepper.
Home | PacRim Stainless
DAWE Import Industry Advice Notices 2022
Keep up to date with the latest DAWE import industry notices here
ABF Industry Notices 2022
Keep up to date with the latest ABF industry notices here
ASSDA: Australian Stainless #75
VIEW MAGAZINE HERE
Australian Steel News - MAY 2022
VIEW MAY 2022 NEWSLETTER
SILA Global Internal Updates
SILA Global Updated Ancillary Tariff Location
As of June 2022, the Ancillary Tariff location will be available only through our SV3 portal here. If you do not have an SV3 user log-in, please kindly reach out to sales@sila.net.au to request your user log-in details.
SILA Global News
Keep up to date with the latest SILA Global news here
June 2022 Articles
Empty Container De-hires & Demurrage - SILA Global
Ongoing Delays for Biosecurity Inspections - SILA Global
Fremantle GRI - Effective 1st July 2022 - SILA Global
SILA Global Pty Ltd
Fremantle GRI - Effective 1st July 2022
To Valued Customers & Partners
As we have been updating in previous notices, due to COVID-related staff shortages and congestion issues in Fremantle, many transport companies are struggling to fill driver and warehouse positions. This shortage of staff has led to wages increasing by approximately 60%. Unfortunately, carriers cannot cope with the congestion and increase in wages, therefore will need to pass on an emergency transport GRI for all Fremantle steel unpack services effective 1st July 2022. While these issues are impacting all major Australian ports, rate increases have not been implemented nationwide at this stage.
The fuel surcharge applicable on all steel unpacks will be updated in the monthly ancillary notices and is currently increasing due to issues such as the Ukraine conflict etc. Some general information can be found here.
Effective 1st July 2022
Fremantle 20' Container GRI: Additional AUD 220.00 per 20'
Fremantle 40' Container GRI: Additional AUD 220.00 per 40'
Thank you for your patience, understanding, and kindness throughout this period.
In the meantime, should you have any concerns, please don’t hesitate to reach out to your SILA Sales representative.
Jason Stockwell
Commercial Director
SILA Global Pty Ltd
Ongoing Delays for Biosecurity Inspections
To Valued Customers & Partners,
We are continuing to experience biosecurity inspection delays, particularly in Melbourne & Sydney. Like other industries, employee recruitment and retention has been labeled the main cause of these significant delays.
Please see the below FTA notice and we ask that you please pass this information on to your delivery locations.
Thank you for your patience, understanding, and kindness to staff through this period.
In the meantime, should you have any concerns, please don't hesitate to reach out to your SILA Sales representative.
Thank you,
SILA Global Pty Ltd
Empty Container De-hires & Demurrage
To Valued Customers & Partners,
Operational Challenges
Our operational capacity is improving, however high volumes, staff absences, and lack of labour continue to be an issue; we do not foresee this improving anytime soon. Container unpacks range between 14-30 per day depending on the arrival port, commodity, and vessel scheduling. In addition to this, we have also begun to receive information that congestion is emerging at receivers' sites; some simply have no space to take cargo. We understand that high order volumes earlier this year are beginning to affect storage capacity at end receiver sites which also has a backward effect at depots that have been struggling with space for some time now
Container De-hire & Demurrage
The biggest issue we're facing right now is the container de-hire & demurrage situation which remains at a critical level nationwide. Empty parks are at full capacity causing delays with securing de-hire slots and subsequently impacting transports' ability to be able to dehire empty containers in a timely manner after container unpacking. Additionally, transport providers arriving with empty containers are regularly redirected to another empty park, sometimes multiple before being able to finally dehire. Currently, Medlog empty park in Melbourne is not accepting containers and there are no redirections in place so transport operators are being told to hold onto containers at their expense.
Empty Container Park Cost Increases & Capacity Constraints - Impacts
Given the current conditions, SILA is not in a position to accept responsibility for any container detention that may be incurred as a result.
We are continuing to monitor the situation and will keep you posted as the situation changes, for better or worse.
In the meantime, SILA and our transport partners continue to do everything possible to de-hire containers in a timely matter, and we thank you for your patience, understanding, and kindness to staff through this period.
In the meantime, should you have any concerns, please don't hesitate to reach out to your SILA Sales representative.
Thank you,
SILA Global Pty Ltd
Landside Congestion & COVID Impacts on Delivery Services
To Valued Customers & Partners,
Severe congestion and delays at empty parks are impacting the de-hire of containers. Some empty parks are rejecting & redirecting containers due to capacity issues, which, in most cases, isn't known until drivers are arriving at the gates.
Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have received extensive examples from members in terms of the current diabolical state of Australia’s maritime logistics systems.
Further to our earlier submissions and evidence provided to the Productivity Commission, we thought we would give them a little more light reading overnight on landside congestion - refer HERE
In addition, we are receiving updates from transport partners that positive COVID results are impacting their already strained day-to-day processes, especially in WA. Multiple truck drivers, administration staff (in various departments), container forklift operators, container unpackers, etc are receiving positive COVID results and being required to isolate causing significant delays in general customer service & container unpack / cargo deliveries.
We ask that you please pass this information on to your delivery locations.
Thank you for your patience, understanding, and kindness to staff through this period.
In the meantime, should you have any concerns, please don't hesitate to reach out to your SILA Sales representative.
Thank you,
SILA Global Pty Ltd
Industry News – 18 May 2022
INDUSTRY NEWS
CONTAINER DETENTION: Supplementary submission to the productivity Commission
Freight &Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have received extensive examples from members highlighting the unreasonable administration of container detention fees.
This has been used as evidence as a part of a supplementary submission to the Productivity Commission calling for regulation to end the blatant mis-use of this practice.
Read more here
CONTAINER DETENTION: Where does it end ?
Despite repeated requests to shipping lines for blanket extensions of container detention periods, all those that have responded state they will assess the quantum of fees payable on a case by case basis.
As members will recall, FTA/APSA continue to supply evidence of unreasonable practices to the Productivity Commission and are advocating for similar regulatory intervention that is currently taking place in the USA.
Read more here
CONTAINER DETENTION: ABC Radio interview with Paul Zalai
Thanks again to the ABC for this important coverage allowing 5 minutes of air-time to explain the implication of unreasonable practices enforced by many foreign owned shipping lines and the FTA/APSA advocacy for regulation.
Listen Here
FREMANTLE PORTS: Removal of Free Storage Days for Weekends and Public Holidays
Letter from Mark Pearce, General Manager Port Operations
Over recent years there has been a general increase in demand for common-user berth laydown areas, a trend that has increased since the onset of COVID-19. This demand is resulting in increased congestion, delays to vessel berthing and increased supply chain costs.
Fremantle Ports has been working with industry participants over recent months to remove bottlenecks and improve the overall supply chain efficiency. As an example, a five-day shipping shutdown was carried out for Berths 11 & 12 to enable a focus on clearing cargo. While these types of initiatives are proving valuable, there are occasions when berth laydown areas are being used for storage and distribution rather than efficient discharge of vessels.
In a bid to encourage better utilisation of laydown areas and reflect the 24/7 nature of port operations, effective 1 July 2022, the storage-free days on weekends and public holidays will be removed when they fall within the four free days.
This change is aimed at helping improve overall efficiency of the supply chain.
We will continue to review our rates and charges to ensure they are appropriate and drive the right behaviour and overall supply chain efficiency for the benefit of all port users.
Thank you for your understanding and co-operation.
BRISBANE PORTS: Patrick Autostrad Terminal, Fisherman Islands Brisbane
Letter from Duane Engi, Operations Manager
Due to the recent weather conditions experienced throughout South East Queensland, restrictions in vessel movements at the Port of Brisbane are in place. As a result, the Patrick Fisherman Islands Terminal is nearing cargo capacity. Therefore, the Terminal has ceased the receivial of empty export cargo from 1500 on the 16th May 2022. In addition to this, selected vessel cargo receivial windows have been amended.
Read more here
DAWE: Conclusion of the 2021-22 Brown marmorated stink bug (BMSB) Risk Season
On 1 May 2022, the 2021-22 BMSB season ended.
Goods shipped or vessels departing from BMSB identified target risk countries on or after 1 May 2022, will no longer be subject to the BMSB seasonal measures including the Seasonal Pest Inspection (SPI) on arrival.
Target high risk goods manufactured in or shipped from target risk countries, that are shipped on board vessels between 1 September 2021 and 30 April 2022 are subject to BMSB measures on arrival, regardless of the arrival date.
Read full notice here
DAWE Import Industry Advice Notices 2022
Keep up to date with the latest DAWE import industry notices here
ABF Industry Notices 2022
Keep up to date with the latest ABF industry notices here
Australian Steel News - MAY 2022
VIEW MAY 2022 NEWSLETTER
SILA Global Internal Updates
SILA Global Updated Ancillary Tariff Location
As of June 2022, the Ancillary Tariff location will be available only through our SV3 portal here. If you do not have an SV3 user log in, please kindly reach out to sales@sila.net.au to request your user log in details.
SILA Global News
Keep up to date with the latest SILA Global news here
QLD Inclement Weather
To Valued Customers & Partners,
The Bureau of Meteorology has advised of three weather systems expected to collide and bring record-breaking rainfall which may lead to significant flooding, yet again, in Queensland. The rainfall is expected to intensify over Tuesday with the possibility of lasting throughout the week and into the weekend.
This heavy rainfall will put extra pressure on an already strained QLD supply chain. We ask our customers to please be prepared (and to prepare end receivers) for additional container unpack & delivery delays, especially for steel.
Related Articles:
+ BOM Queensland forecasters expect May rainfall record as central interior in firing line
+ Torrential rain bomb to hammer Australia and it'll last for NINE days
+ Queenslanders warned of potentially ‘life-threatening’ flash flooding
+ Rainfall totals of up to 400 millimetres predicted for Queensland as severe weather sets in
As always, SILA Global & our dedicated team are working hard to minimise the impact and we appreciate your patience & understanding during these difficult, unprecedented times.
In the meantime, should you have any concerns, please don't hesitate to reach out to your SILA Sales representative.
Thank you,
SILA Global Pty Ltd