Henning Harders Tradeline August Newsletter

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Table of Contents

Shipping Update

Europe

Shipping lines are forecasting a very strong finish to the year.

All have planned General Rate Increase (GRI) announcements which will take effect in September and October, as well as implementation or increases to their Peak Season Surcharges (PSS).

Hapag Lloyd will be implementing a surcharge of US$500 per 40’ High Cube container shipped from September onwards.

MSC are implementing a GRI of US$1000 / TEU from 11th September.

CMA have advised of an increase to their PSS amounts –

  • North Europe (excluding France) = US$1200 / Dry TEU
  • Mediterranean Ports (including Le Havre) = US$1200 / Dry TEU
  • North Europe & France Reefer Container = US$750 / TEU
  • Mediterranean Reefer Container = US$500 / Container

Vessels are being delayed on their Round the World journey and this is affecting schedule integrity. We are seeing significant delays at origin on all carriers.

Hapag Lloyd have suspended taking new European bookings to Australia this week, to allow them to bring the huge volumes under control. Owing to the cancellation of one of their other services (via Cartagena), this has placed further pressure on their Singapore transhipment hub.

Bookings with Hapag Lloyd and CMA to New Zealand continue to be refused. Hamburg Sud is since refusing cargo for New Zealand as well, which leaves MSC as one of the very few options remaining for this destination.

China & SE Asia

  • 1st August saw a GRI implemented of US$300 / TEU
  • 15th August saw a GRI implemented of US$500 / TEU
  • 1st September will likely see a GRI implemented of US$500 / TEU, however some carriers are advising of up to US$1000 / TEU

Shipments to West Coast AU (Fremantle & Adelaide) are becoming very complex, owing to more and more lines refusing these due to congestion in the transhipment ports.

Many carriers are suffering a severe 40’HC shortage in most Chinese ports, however particularly in Ningbo, Qingdao and Shenzhen. From some ports, utilising 40’NOR is the only alternative, however cargo must be suitable for it.

We are seeing huge volumes of cargo from the SE Asia region, compounded by long lockdowns and resultant factory closures which add to the backlog and congestion.

In addition, there has been a reduction in overall capacity, owing to OOCL removing one vessel from their AAA2 service, with no replacement vessel planned.

The existing cargo volumes will be dispersed over other vessels in this service, as well as over their AAA1 service, however the end result is that it does lead to less capacity being available overall.

It is pertinent during this time to provide advance notice of any orders or bookings that you may be planning from anywhere in the world. Please keep in touch with your Key Account Manager to avoid disappointment.


Department of Agriculture, Water and the Environment (DAWE)

2021-22 Brown Marmorated Stink Bug (BMSB) season

We encourage our customers to actively monitor the Department’s website for the latest information around BMSB and other such hitchhiker pests.
We would like to highlight the changes this season around Airfreight consignments from the USA and Italy being subject to “random verification inspections”

“Due to detections of live BMSB in previous season, air cargo arriving between 1 September and 30 November 2021 (inclusive) from USA and Italy, containing target high risk chapters 84, 85, 86 and 87 will be subject to random verification inspections.”

“Due to detections of live BMSB in previous season, air cargo arriving between 1 September and 30 November 2021 (inclusive) from USA and Italy, containing target high risk chapters 84, 85, 86 and 87 will be subject to random verification inspections.”

In addition, the department has notified industry of further changes that result in a reduction to the goods subject to BMSB measures for the season commencing 1 September 2021.

The changes are:

  • Removal of chapters 36 and 93 from the Target High Risk Goods list; and
  • Removal of chapters 25, 26, 31, 46 and 47 from the Target Risk Goods list.

This is good news for importers of goods classified in chapters 36 and 93 from target risk countries who will no longer need to meet the mandatory treatment requirement.

Link: Seasonal measures for Brown marmorated stink bug (BMSB) – Department of Agriculture

Seasonal measures for Brown marmorated stink bug (BMSB)

Target high risk and target risk goods manufactured in or shipped from the target risk countries as sea cargo between 1 September 2021 and 30 April 2022 (inclusive) as reflected on the Bill of Lading are subject to BMSB intervention.

All other goods are not subject to BMSB intervention unless they are packed in a container with target high risk or target risk goods that require BMSB intervention, then all other goods are subject to the measures.

Target high risk goods subject to mandatory offshore treatment that arrive untreated or treated by an unapproved treatment provider in a target risk country, will be directed for export on arrival.

Goods shipped in iso-tanks and as bulk-in-holds of cargo vessels are not subject to the measures.

Treatment of target high risk goods

  • Target high risk goods treated in target risk countries must be treated by a registered offshore treatment provider approved under the Offshore BMSB Treatment Providers Scheme.
  • Treatments conducted by an unapproved treatment provider in a target risk country will not be recognised as valid and the goods will be subject to onshore treatment (if permitted) or be directed for export.
  • Treatment providers in other countries who intend to conduct BMSB treatments for goods that are manufactured in any of the target risk counties are also encouraged to register under the offshore treatment provider’s scheme.
  • Treatment certificates from providers in non-target risk countries who do not register will be accepted, however these goods will be subject to increased intervention on arrival compared to those treated by approved treatment providers.

Break bulk goods

  • Mandatory offshore treatment of target high risk goods shipped as break bulk cargo will be required. Onshore treatment is not permitted.
  • Goods shipped in open top containers (including in gauge) or on flat rack containers are also considered to be break bulk.
  • Untreated break bulk will be directed for export. Where these goods are identified prior to a vessel’s arrival into Australia, they will be denied discharge from that vessel.
  • Automated Entry Processing for Commodity (AEPCOMM) arrangements for BMSB is permitted for break bulk goods. See relevant BICON commodities for assessment and outcomes.
  • FCL containers that have been modified, such as those used to house in-built power generators, etc. are no longer sealed six hard sided containers and are considered to be break bulk cargo.

Containerised goods (FCL, FCX)

  • Containerised cargo arriving in sealed six hard sided containers with target high risk goods can be treated offshore, or onshore at the container level.
  • The department classifies refrigerated containers (operating and non-operating) and hard top sealed containers (ISO22U6/ISO22UP, ISO42U6/ISO42UP and ISO45U6/ISO45UP) the same as six hard sided sealed containers.
  • FCL containers that have been modified, such as those used to house in-built power generators, etc. are no longer sealed six hard sided containers and are considered to be break bulk cargo as per above.
  • Goods are to be treated within the container. Deconsolidation or removal of goods will not be permitted prior to treatment. No exemptions for deconsolidation or segregation on arrival will be considered by the department.
  • Consideration must be given to ensure containers are packed in a manner that will enable effective onshore treatment at the container level where required, to avoid possible export of the container.
  • AEPCOMM arrangements for BMSB is permitted for containerised goods shipped as FCL (Full Container Load) and FCX (Full Container Consolidated). See relevant BICON commodities for assessment and outcomes.
  • To demonstrate goods were sealed inside a container prior to 1 September 2021 or after treatment, a BMSB sealing declaration must be provided with the lodgement. This document is required where:
    • Goods were containerised prior to 1 September 2021, but shipped after this date, or
    • The bill of lading does not state the shipped-on board date, or
    • Goods were sealed inside the container within 120 hours of treatment occurring offshore.
  • Supporting documentation must be completed and signed by either the exporter, freight forwarder, or shipping company at the port of origin.

Note: Container tracking information may be used as supplementary means of confirming shipped on board date. It cannot be used as the primary form of evidence. Container tracking information is insufficient for demonstrating when goods were sealed in a container.

Containerised goods shipped as Less than Container Load (LCL) consignments and Freight of all Kinds (FAK) containers

LCL and FAK containers with target high risk goods will be managed at the container level for BMSB risk prior to deconsolidation. Once these have been managed, the consignments within these containers will be processed at the Full Import Declaration (FID) level for all other biosecurity intervention (if applicable).

See the Management of LCL/FAK containers web page for more details.

Air Cargo

Due to detections of live BMSB in previous season, air cargo arriving between 1 September and 30 November 2021 (inclusive) from USA and Italy, containing target high risk chapters 84, 85, 86 and 87 will be subject to random verification inspections.

Random onshore verification inspections

  • All target high risk and target risk goods will be subject to random verification inspections and will be directed for onshore treatment if BMSB is detected.
  • Where goods are shipped as break bulk, random inspections are required to be conducted at a Class 21.1AA. For goods shipped in flat rack and open top containers, these inspections will be able to be conducted at Class 1.1 and Class 1.3 AA.
  • All random onshore verification inspections are required to be completed in a metropolitan location.
  • The department will continue to review the changing pest status of BMSB and will be undertaking a lower rate of random onshore inspections on goods from emerging risk countries (watch list countries) to verify pest absence in goods.
  • All goods must still meet the standard import conditions in the department’s biosecurity import conditions database (BICON) for all other biosecurity risks.

Known risk pathways and supply chains

  • Goods from known risk pathways and supply chains that have had previous detections of BMSB may be subject to BMSB intervention including treatment and/or inspections.
  • These risk pathways and supply chains will be reviewed throughout the season and adjusted to manage the risk of BMSB as required.

Treatment of BMSB goods in Australia and New Zealand

  • The BMSB Seasonal measures are for goods being imported into Australian territory, and managing the risk associated for all goods that come into Australian territory.
  • In conjunction with New Zealand MPI, New Zealand and Australia will not be conducting BMSB treatments for each other.
  • Goods bound for Australia cannot be treated for BMSB in New Zealand and vice versa. For example, if the goods have been exported from New Zealand for not meeting BMSB import conditions, they will not be permitted to be treated in Australia, and vice versa.
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Safeguarding Arrangement

DAWE have indicated that the Safeguarding Arrangement program will be retained for the next BMSB season. (2021 – 2022)

In response to the rapid expansion of BMSB throughout Europe and North America, the Department of Agriculture, Water and the Environment (the department) has retained the seasonal measures to manage the risk of BMSB from arriving in Australia for the 2021–22 BMSB risk season.

The department is using a range of scientific, intelligence and evidence-based information when setting the measures, including data collected from the 2020-21 Brown Marmorated Stink Bug (BMSB) season onshore verification activities.

As many of our customers will attest, BMSB poses significant direct and indirect cost, disruption and uncertainty to their supply chain.

The team at Harders Advisory, have been working with DAWE to formulate a strategy to self-manage the BMSB risk for next season and beyond.

Last month, Andrew Crawford (who heads up our advisory section in NSW) and Joyce Campbell our (Head of Harders Academy and Training) visited Canberra to meet with Mr. Ben Rowntree A/g Director Seasonal Pest Policy / Pathway Policy – Cargo and Conveyances / Biosecurity Operations Division.

We are pleased to advise Harders Advisory is assisting one of our high-profile customers in applying for accreditation for next season to manage the BMSB risk through the Safeguarding Arrangement Scheme.

The 2021-22 BMSB season starts September 1 2021

We encourage other customers to seriously consider this initiative and discuss their options with our Advisors, Andrew Crawford or Steven Butler. Both gentlemen can assist you through the program and provide all the necessary support through our experienced advisory services.

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More information: harders.com.au/harders-advisory/bmsb-2021-2022/


Department of Agriculture, Water and the Environment (DAWE)


Let’s keep Khapra Beetle out!

Khapra is a serious agricultural pest that poses a major threat to our grains industry. This exotic pest comes in second on Australia’s most unwanted plant pest list, and we need your help to keep it out.
What to look for
• Adult beetles (1.6-3mm long) are reddish dark brown, oval-shaped with faint dark lines and do not fly.
• Larvae (1.6-4.5mm long) typically appear very hairy and are golden brown.
• Cast larval skins are the most obvious indicator of infestation.

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Adult Khapra Beetle

To support the implementation of our Khapra Beetle urgent actions, DAWE have developed two short videos to communicate:

  • the risks khapra beetle poses to Australia
  • how to identify khapra beetle
  • the importance of sea container cleanliness
  • how to maintain sea container cleanliness.

We welcome you to watch and share the content with your contacts. You can watch the videos here:

Phase 3 of the Khapra Beetle urgent actions will commence on 30 September 2021.

From 30 September 2021, new import conditions will apply to high-risk plant products imported into Australia. The revised import conditions will vary depending on the country of export.

High-risk plant products exported from khapra beetle target risk countries by both sea and air freight will need to be treated offshore with an approved treatment option and inspected by a government official in the exporting country.

The goods will need to be accompanied by both a valid treatment certificate and a phytosanitary certificate to attest that that treatment requirements have been met at that the goods are free from all live species of Trogoderma.

High-risk plant products exported from all other countries via sea and air freight will need to be inspected by a government official in the exporting country and be accompanied by a phytosanitary certificate verifying they are free of evidence of any species of Trogoderma that are of concern to Australia.

BICON import conditions and any currently issued permits will be amended by the department to reflect these new conditions.

We encourage all importers of high-risk plant products to speak with their broker to see how these changes may affect your business.  Alternatively, please contact Andrew Crawford or Steven Butler in confidence at Harders Advisory.


Department of Home Affairs, Aviation and Maritime Security Division (DoHA)

The department has announced they will be reviewing the eligibility criteria for obtaining Aviation Security Identification Card (ASIC) and Maritime Security Identification Card (MSIC) cards.

These “cards” are issued to parties outside the Government that access those secure areas. It is paramount that only trustworthy, legitimate and validated individuals receive such access!

The Transport Security Amendment (Serious Crime) Act 2021 (the Act) seeks to prevent the exploitation of the Australian aviation and maritime transport sectors by serious criminals.

The Act strengthens the aviation and maritime security identification card (ASIC and MSIC) schemes through the introduction of new tiered and harmonised eligibility criteria (the new criteria) focused on combating serious crime.

It is anticipated that from 23 August 2021 a person’s eligibility to hold an ASIC and MSIC and work in the most secure areas of Australia’s airports and seaports will be assessed against the new criteria. (Subject to Parliament approval)

As our customers will note from the dialogue above, there is a significant focus on the exploitation of our borders!

We urge all our customers who are not yet Australian Trusted Traders to review this program as a matter of urgency https://www.abf.gov.au/about-us/what-we-do/trustedtrader.

We believe that DoHA in conjunction with the Australian Border Force (ABF) will ramp up their focus on companies that cannot establish themselves as Australian Trusted Traders.

If you need any additional information, please contact Andrew Crawford or Steven Butler from our Advisory team ASAP!

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