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About: Jim Merrigan

Recent Posts by Jim Merrigan

Shipping lines increasing rates by stealth?

Having recently received a bulletin from PIL regarding them increasing their LSR charges to cover their Low Sulphur compliance costs, one could be forgiven for asking is this just another excuse    to push rates up without filing a rate increase! Shipping Lines are coming under increasing global pressure from Industry bodies and Shippers alike, to to be more transparent with their pricing structures and to move to an all-in rate tariff which covers BAF/LSR and other added components, instead of an often confusing and complicated way of arriving at a total price.Time will tell whether this has any real impact.

For the record, the increase on all Southbound East Asia & China rates into Australia is an additional A$49.00/20′ or A$98.00/40′ container effective February 1st, 2020.

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Australia-Hong Kong Free Trade Agreement to come into effect 17/1/20

The Free Trade Agreement (FTA)  between Australia and Hong Kong is scheduled to come into effect on the 17th of January 2020. Certificates of Origin can only be issued on or after the 17th of January, but importers, exporters, producers, or authorised representatives of those parties can produce a Declaration of Origin for each shipment as long as it is on company letterhead, dated and signed and is cross referenced to the consignment/invoice number. For more information please contact us, or refer to the DFAT website here

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Car carrier refused entry into Australian waters due to Brown Marmorated Stink Bugs

A Roll On / Roll Off (RO/RO) ship carrying more than 3500 new vehicles and heavy machinery, the Orca Ace, has recently been refused entry to Australian waters by the Department of Agriculture due to the presence of Brown Marmorated Stink Bugs (BMSBs). The ship has been directed to undergo fumigation at a foreign port and according to a confidential dealer bulletin circulated by one of the manufacturers of some of the vehicles the ship is estimated to return to Australia in “the middle of January 2020”. A Department of Agriculture spokesperson has said that due to strict biosecurity measures “Australia remains free from many pests and diseases including (BMSBs) that are present in other countries and have the potential to impact on our agriculture industries, the environment, plant, animal and human health”.

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Hoegh boosts services to Australia

Höegh Autoliners will increase the frequency of its services from Europe to Australia to five sailings per month.

From November, the additional sailing will accommodate the growing demand from manufacturers of breakbulk and high and heavy cargoes, as well as the automotive sector, said Höegh.

The shipping line currently deploys the New Horizon Vessel series on its service to Oceania. These ships are capable of carrying up to 8,500 cars and are built to cater for larger breakbulk cargoes. They offer up to 6.5 m of free deck height, a ramp width of 12 m and a ramp capacity of 375 tonnes.

www.hoeghautoliners.com

 

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“World in a Box” film celebrates 50 years of containerised shipping into Australia

On Tuesday October 22nd, the Hon Simon Birmingham, Minister for Trade, Tourism and Investment, launched the film “World in a Box” at Adelaide University. The film was a project of the 2019 Container Project Committee, a group of former senior shipping executives who were keen to celebrate the 50th anniversary of International container shipping services into Australia. The 20 minute film is a reflection, and celebration of the history of the humble shipping container, and it’s impact on international trade over the past 50 years.

For those wishing to watch the film it can be viewed here –  https://rounding-up.com/world-in-a-box

 

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900 new Mercedes-Benz vehicles re-exported due to rare snail find.

After detecting a rare snail, never before seen in Australia, the Department of Agriculture has ordered the re-exportation of 900 new Mercedes-Benz vehicles. The snail detected is being referred to as the Heath snail and is understood to only be found in south-eastern Europe, and certain places in Canada and the USA. Mercedes-Benz have stated that they plan to re-export the vehicles inside shipping containers to Zeebrugge, Belgium, rather than the usual method of shipping them in roll-on, roll-off ships that are normally used to transport new vehicles. This is to avoid contaminating the roll-on, roll-off ships, or other vehicles on them. Presently, the vehicles are being kept in strict quarantine near the ports they arrived at in New South Wales, Queensland, Victoria, and Western Australia, while they are measured to be placed on pallets, and loaded into shipping containers.

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Incoterms 2020 are here!

It’s now official, Incoterms 2020 has been released! The ICC website summarises the major changes as follows –

  • Incoterms® 2020 provides for demonstrated market need in relation to bills of lading (BL) with an on-board notation and the Free Carrier (FCA) Incoterms® rule.
  • Incoterms® 2020 aligns different levels of insurance coverage in Cost Insurance and Freight (CIF) and Carriage and Insurance Paid To (CIP).
  • Incoterms® 2020 includes arrangements for carriage with own means of transport in FCA, Delivery at Place (DAP), Delivery at Place Unloaded (DPU), and Delivered Duty Paid (DDP).
  • There is a change in the three-letter name for Delivered at Terminal (DAT) to DPU.
  • Incoterms® 2020 includes security-related requirements within carriage obligations and costs.

Copies of the ICC Incoterms publication can be secured from the ICC website.

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#IMO2020 and how it will impact us all

On 1 January 2020, the International Maritime Organisation (IMO) will implement a new regulation for a 0.50% global sulphur cap for marine fuels. Under the new global cap, ships will have to use marine fuels with a sulphur content of no more than 0.50% against the current limit of 3.50% in an effort to reduce the amount of sulphur oxide.The end goal is net zero CO2 emissions by 2050.

According to Industry estimates roughly 90% of the global vessel fleet will need to rely on compliant fuels when the new rules come into effect on January 1st, 2020. The major shipping lines will be exposed to huge costs, and will need to invest in different technologies to meet the new standards. The global industry forecast has been estimated at approximately U$24B in total to become compliant.

Most of the shipping lines have so far announced that the costs of compliance will be passed on to their customers. Their view is that they should not have to pay for the these costs as the protection of the environment is a cost we must all share. On September 11th, Maersk Line announced it would levy a new EFF (Environmental Fuel Fee) applicable to all spot business, and to existing contracts, with a validity up to 3 months. They have advised that the EFF levy will apply from December 1st, 2019.

As we get closer to the end of the year we should start to see more shipping lines publish their intentions to the market. Once we have this information to hand we will be in touch.

If you have any questions on this matter please do not hesitate to contact us at any time.

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CMA CGM launches the world’s largest LNG powered ship

CMA CGM yesterday launched the world’s largest LNG powered ship at China’s Shanghai Jiangnan-Changxing Shipyard The 23,000 teu CMA CGM Jaques Saade is the first in a series of nine vessels that will run on what is considered to be the world’s most environmentally friendly fuel.
 
The vessel is set to enter formal service next year on the Ocean Alliance’s Asia-North Europe services.
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Innovation key to keeping Amazon at bay, says DHL

DHL has recently said to the supply chain publication Loadstar that the only way to keep e-Commerce companies such as Amazon, Alibaba, eBay and Etsy from becoming competition for existing international logistics companies is for the latter to innovate so the former has no reason to cease using the latter’s services.

In 2015 Amazon launched it’s own airline and recently took delivery of the first 48 of its order for 250 53ft freight containers, as it aims to become both an e-Commerce platform and transport network.

DHL does not envisage Amazon to be a major threat to its operations, with DHL’s chief executive for the Americas, Mike Parra saying “[Amazon] is one of our largest customers globally, so is undoubtedly a friend, and I don’t see that changing any time soon

It will be interesting to see how Amazon’s decisions impact business in Australia in the years to come.

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