Over the past two weeks we have communicated ongoing industrial action at DP World shipping terminals around Australia. This has severely impacted the flow of inbound and outbound containers and adds significant costs to the supply chains. Many vessels docking into these ports are delayed having a flow on effect with availabilities and deliveries. The teams at Henning Harders work hard behind the scene with transport providers to ensure the impacts on our customers are minimal. We will endeavour to keep our clients up to date on any further action.
Earlier in July Australia welcomed the MSC Elma to its shores with a capacity of approx. 9400 teu (twenty-foot equivalent) containers. This is in contrast with one of its sister vessels deployed on the east-west network (Asia and Europe) the MSC Gulsun has a record capacity of 23000 teu’s, the first of eleven being ordered by MSC.
With the ever-increasing capacity of container vessels, it will be interesting to see how this effect the cost of trade around the globe and for us here in Australia. With larger vessels being built to carry the large volume across the northern continents, shipowners will continually look at bringing in larger vessels to Australia. At this time Australian ports have some limitations on large vessels entering alongside however we could see vessels carry up to 13000 teus in the coming years.
July has seen an increase in shipments as the peak season starts to warm up here in Australia. Some within industry believe the 2019 peak season may not have such a significant effect locally as the economy continues to slow however, we cannot be complacent at this time of the year. Traditionally trade will naturally increase, and pressure is felt on all components of international trade. Transhipment ports like Singapore can be the first to feel the Peak Season as vessels fill and containers left behind. Regardless of the season, Henning Harders recommend all importers to be ahead of the pack and be prepared for any delays. Please ensure you contact your Account Manager on how we can assist you during this time.
The current trade war between the US and China has been widely reported. The US government has placed the fault with the Chinese, claiming unfair trade practices.
In a twist to this tale, the Australian Government is investigating claims that, as a result from the conflict, US suppliers of plastics are engaging in unfair practices, causing harm to Australian manufacturers. This is believed to be due to the increased tariffs that China placed on imports of US-originating high-density polyethylene (HDPE), resulting in lower demand from China and a surplus for suppliers to sell elsewhere.
The claim is that Australian customers are currently able to purchase HDPE at dumped prices. Dumping occurs where goods are exported at a price lower than they charge in their domestic market. The Australian industry is seeking redress through the Anti-Dumping Commission, who have commenced an investigation of HDPE exported from the US, as well as Thailand, Singapore and Korea.
It remains to be seen if further investigations are prompted into other imported goods.
Henning Harders are monitoring the situation and will continue to provide updates as the investigation progresses.
The 2019-20 season measures will take effect for shipments of risk and high-risk goods exported from risk countries from 1st September 2019. Due to the rapid expansion of the bug through continental Europe, the new measures apply to 32 countries, up from 9 in the 2018-19 season.
All roll-on roll-off (ro-ro) vessels will be subject to heightened vessel surveillance during the season.
All ro-ro vessels that berth at, load or tranship in target risk countries from 1 September 2019 and that arrive in Australian territory by 31 May 2020 (inclusive) will be required to:
The following countries have been categorised as target risk:
Albania, Andorra, Armenia, Austria, Azerbaijan, Belgium, Bosnia and Herzegovina, Bulgaria, Canada, Croatia, Czechia, Japan (heightened vessel surveillance only), France, Georgia, Germany, Greece, Hungary, Italy, Kosovo, Liechtenstein, Luxembourg, Montenegro, Netherlands, North Macedonia, Romania, Russia, Serbia, Slovakia, Slovenia, Spain, Switzerland, Turkey, USA
In addition, the department continues to review the changing risk status of BMSB and will also be undertaking random onshore inspections on goods from other emerging risk countries to verify pest absence in goods.
If you have any questions relating to the measures, please contact your Key Account Manager at Henning Harders Tradeline or read more on our dedicated BMSB 2020 page here.