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August Newsletter

China Market Update
Important Notice regarding the current situation in China


Due to a recent spell of Typhoons, China’s coastal areas have been under frequent attack from bad weather, causing delays and a flow on effect of congestion around all ports in China.  In order to avoid further delays, all shipping lines are now suspending or delaying subsequent voyages, which will impact rates and space availability over the coming months. If the situation worsens, we expect vessels will be reduced, however cargo volume will remain the same, providing an opportunity for all carriers to increase rates. If this plays out as expected, we anticipate another increase to freight rates on September 1. Recent reports from Shenzhen wharf as of today August 20th, show Typhoon Higos arriving in Guangdong area this weekend and placing more stress on the ports in the area . At this stage we ask if you have any upcoming orders, please let us know as early as possible so we can secure space, and where possible, please allow an extra 1-2 weeks to prepare for delays, especially for transhipped cargo through South East Asia.

Seasonal Measures for the upoming Brown Marmorated Stink Bug (BMSB) Risk Season 

The 2020-21 BMSB season will be in effect for goods shipped from 1 September 2020 that arrive in Australia prior to 31 May 2021 (inclusive).

Apart from the addition of Portugal, Ukraine, Moldova and Kazakhstan to the list of target risk countries, the measures remain consistent with the previous 2019-2020 risk season. 
The department will also continue to review the BMSB risk status of countries by way of random onshore inspection. The following countries have been identified as emerging risk countries and are subect to the review: Belarus, Denmark, Ireland, Poland, Sweden, United Kingdom and Chile. 

For further information, please see the below website link to read the latest updates issued by the department of agriculture. 
https://www.agriculture.gov.au/import/before/brown-marmorated-stink-bugs

Business as usual at ICAL

To our valued customers,

As stage 4 restrictions begin at midnight August 5th, we would like to re-assure our customers that as ICAL is classified as an essential service provider, it will be business as usual for our Melbourne team. ICAL will be following a strict COVID safe plan; in order to protect our staff, and in turn, our state.


We can appreciate that for those of you based in Melbourne, each of you will need to assess your business, and decide whether remaining operational at a reduced capacity is acceptable; or if you will need to close completely.
For those of you that are affected by closures, please ensure that you contact us ASAP. This is so that we can assist with short term storage over the next 6 weeks.

For our long standing clients that have supported us over the years, we would love nothing more than to help you out where we can. This will be with some discounted storage over the coming months.

Rest assured, as our office team are working remotely and have been for some months now, there will be no disruptions to our freight and customs services.

We would like to take this opportunity to wish you and your families all the best over the next couple of months, and if we can offer any support please do not hesitate to reach out.

Take care and stay safe,
ICAL International

Qantas Freight Closure at Melbourne Airport – 3/08/2020

We have been alerted this morning to two positive cases of COVID-19 at Qantas Freight at the Melbourne Freight Terminal. On advice from the Victorian Department of Health and Human Services, Qantas have temporarily paused operations for 48 hours.
 
We expect operations to be affected until at least the end of this week, while Qantas work through backlogs once they re-open. If you have any concerns about your bookings, please do not hesitate to contact your ICAL representative.
 
Thank you for your understanding.

May Newsletter

Bata Shoes 

Bata Shoes is donating pairs of shoes to health and aged care workers, the front-liners fighting the covid-19 with admirable courage.

We are proud to be associated with a long term customer, who remains committed to supporting the community generously through these challenging times.

If you know any health or aged care workers, please let them know about this generous offer. They will just need to present their Employer ID at the store. The offer ends at the end of the month or until stock runs out. 

Indonesia-Australia Comprehensive Economic Partnership Agreement

The Indonesia-Australia Comprehensive Economic Partnership Agreement will enter into force on 5 July 2020. Whilst both Indonesia and Australia are already members under the ASEAN-Australian-New Zealand Free Trade Agreement (FTA), the benefits of the agreement will be strongly felt by Australian exporters and services providers, who will see improved market access, including significantly reduced duty rates for agricultural exporters. A significant benefit of the Indonesia-Australia agreement is a system for using a declaration of origin rather than certificates of origin issued by an official body.  For further information on the agreement, please see below website link. 

https://www.dfat.gov.au/trade/agreements/in-force/iacepa/Pages/indonesia-australia-comprehensive-economic-partnership-agreement

Port of Melbourne’s Port Rail Transformation Project

The Port Rail Transformation Project is set to go ahead with all of the project preconditions being completed. The Port of Melbourne advised the $125 million initiative will involve significant rail infrastructure works and a new rail operating framework inside the port that will provide an alternative to moving containers by trucks. The project is being funded through an increase in the tariff of $9.75 per TEU on full import containers, to take effect 1 June 2020.  For further information, please see below media release from the Port of Melbourne. 

https://www.portofmelbourne.com/wp-content/uploads/Media-Release-Rail-Project-to-Commence-30042020.pdf.pdf

Fuel Surcharge Update

As a result of recent movements in the cost of fuel, ICAL will decrease the fuel surcharge on all domestic deliveries by 1% effective May 20th. 

Japan – Golden Week

National Holiday in Japan – Golden Week 2020

Please note that, in observance of the National Holiday in Japan, offices will be closed from April 29th until May 6th, returning to work on May 7th. For those who may have upcoming bookings/shipments from Japan, you may experience a delay in responses during their week long holiday. 

April Newsletter

ICAL’s Insurance Policy
In light of the current situation, we would like to remind you about the importance of insuring your cargo, ascertaining the cover is adequate for the risks involved and compliance of insurance conditions are met.

Shipping lines, Airlines and Carriers a like tend to limit their liability for the loss of, or damage to cargo through contractual arrangements; either as standard terms and conditions of trading, or by contracts of carriage.

The collapse of Hanjin shipping line in 2016 demonstrated that insurance policies don’t often cover the ‘bankruptcy of shipping lines’. If you already have an insurance policy in place, we recommend reviewing the policy to ensure you are adequately covered.
If you don’t have insurance, please get in contact with your ICAL representative to discuss further. 
 
ICAL offers a door to door insurance policy, which can be arranged on a shipment by shipment basis. As little as AU$120.00 can cover an insured value of up to AUD$25,000 (depending on the commodity, origin and destination).
 
ICAL’s insurance policy covers;

  • Damages caused by packing/unpacking the container/cargo
  • Any pillage or loss from collections from your overseas supplier right up to delivery in Australia
  • Concealed damage for up to 90 days after arrival
  • No excess on new cargo except machinery

Airline CTO Fee Annual Increase

Effective immediately, all three airline CTO’s have announced their annual rate increase to all terminal and document fees of just over 6%. Increases will be reflected on all import and export invoices as of April 20.

March Coronavirus Update

Most of the eastern provinces in China such as Zhejiang, JiangSu, Fujian, Guangdong, Shanghai and Shangdong are now back to work. However, due to travel restrictions, most manufacturers are still not operating normally due to staff shortages. Henan province has announced a return to work date of March 16th. 

Transport within China continues to be challenging, with the Chinese government encouraging the use of trains to carry containers rather than rely on trucks between cities.

As shipment bookings increase, we continue to see space restrictions. Please let us know as early as possible so we can try our best to guarantee the space that is available.

From April 1st, Shipping lines will introduce a levy increase for all export shipments with origin from the Australian East Coast to ports and points in Korea, China, Japan, Hong Kong and Taiwan. The levy will be US$200/TEU for dry cargo and US$500/TEU for refrigerated cargo.

We will continue to monitor and keep you updated. If you have any questions, please contact your ICAL representative. 

Coronavirus Update & Empty Container Booking/Time Slot Fee

Coronavirus Update

Whilst many provinces in China have ended their official shutdown, it’s expected to take some time before normal operation resumes. Factories will need to comply with new health regulations, fulfill backlogged orders and workers must return from across the country or quarantine before they can resume normal production rates. 

Please continue to be mindful of the situation and expect delays, check directly with your suppliers for updates and book any upcoming shipments with an available ready date to get your goods moving.

Transport within China continues to be challenging, as there are still varying levels of local regulation and restrictions on the movement of people and a shortage of drivers, which is pushing rates up by 150%. It’s important to arrange cartage ahead of time to avoid delays.  

All Port Terminals are reported to be open, although delays and vessels omissions continue to be a factor. We suggest that shipping schedules are reviewed and where a significant inland road transport leg is involved, investigate barge and feeder vessel options via 2nd and 3rd tier ports closer to the shipper or importer.

Shipping lines are still reluctant to accept Reefer container bookings as a shortage of power connections on Port, and the congestion detailed above, mean that cold chain risk is elevated.

We have been advised Hubei province and Wenzhou in Zhejiang province are the most affected areas. Outside of China, we have seen increased levels of infection reported in Korea, Japan, Singapore, Iran and Italy. We are expecting restrictions in these regions over the coming week. We will continue to monitor the situation and include these regions in our updates if the situation changes.

We are also expecting to see an increase in freight rates. The first indication we have received is from cargo moving from or via the UK to Australia, with the implementation of a peak season surcharge for LCL of USD 7.00 per w/m, minimum USD 7.00.

In summary, while there are positive developments in parts of China, there remains considerable uncertainty, which has the potential to spread to other impacted countries.
As shipment bookings start to increase, it becomes more important to talk to us as early as possible so we can secure a solution for you. Space will become extremely tight and rates are predicted to rise higher than normal.

We will continue to monitor and keep you updated. If you have any questions, please contact your ICAL representative. 

Empty Container Booking Fee / Time Slot Fee

Unfortunately terminals have yet again advised of another rate increase effective March 9, 2020. Effective for all terminals Australia wide, container time slot fees and Empty Park Fees (also known as Empty Booking Fee) will increase adding an extra A$37.00 – $49.00 per container. These charges are applicable for both import and export containers, and will be reflected in container transport rates from early March.

February Newsletter

Coronavirus Update

We have received further information that some provinces in China have extended the holiday period till February 24th and confirmed, as per our earlier advice, that services and supply of goods are likely to be impacted well into March. Please continue to stay in contact with your suppliers for updates on their working arrangements. As the vessels coming into Australia are reduced, we are likely to see a shortage of containers available for export. We are concerned that shipping lines will be overbooking, due to the high demand, which will result in cancellations and transfers, which ICAL will have no control over. We would like our clients who export to be mindful of the potential delays. For further information, please see below website link. https://www.homeaffairs.gov.au/news-media/current-alerts/novel-coronavirus

Peru-Australia Free Trade Agreement

On February 11th 2020 the Peru-Australia Free Trade Agreement (PAFTA) entered into force, introducing a new chapter in the economic relationship between Australia and Peru. A Certificate of Origin is the basis for a claim of preferential treatment under PAFTA. This document can be completed by the exporter or an authorised representative of the exporter or producer. For further information on the agreement and determining the originating status of goods and materials, please see below website link. https://www.abf.gov.au/importing-exporting-and-manufacturing/free-trade-agreements/peru