On 7th March 2014, Magellan Logistics attended the Melbourne Port System Industry Induction (MPSII) Workshop and Tour offered by the Port of Melbourne Corporation.
The program provides an introduction and overview of the Melbourne Port System, giving the participants solid understanding of how the port operates. The program also gives information on how service providers work together and integrate with each other, resulting in more efficient freight movements.Participants received valuable information during the workshop and were given a tour in the port’s different facilities. During the event, our team learned these interesting facts:
The workshop enables those in the supply chain business to learn about current trends within the shipping industry, particularly in Melbourne.
Following the visit, a team member shared, “There was a panel of experts speaking, with time for Q&A, followed by a tour of the port. Listening to this panel gave some valuable insight on the challenges faced in the shipping environment, and the importance of partnerships between the major stakeholders including the importer/exporter, shipping lines, port operators, the Port of Melbourne Corporation, Australian Customs, customs brokers and freight forwarders.”
“It was great,” added Ashley Schmidt, Customs Broker at Magellan logistics. “I can see it would be really great for trainees to attend in future too.”
AN EASY REFERENCE GUIDE ON SHIPPING YOUR FASHION GOODS
When buying or selling garments or other goods across international boundaries, there are certain stringent terms of delivery that need to be adhered to for a successful importation. INCOTERMS are international trade terms which define all rules of engagement with regard to goods delivery to the intended destination or from the seller to the buyer.
INCOTERMS are the widely used standards that guide international trade. When it comes to international shipping, FOB and CIF are the most commonly used agreements which determine the responsibility of both the buyer and the seller. At the same time, it defines the point where this responsibility passes to either party.
Difference between FOB and CIF
First, it’s imperative to understand the difference between FOB and CIF. As mentioned above, both are INCOTERM agreements.
FOB stands for “Free On Board”. Under an FOB agreement, the seller shoulders all transportation costs up to the port of shipment. This includes all loading costs. On the other hand, the buyer is responsible for all marine freight, insurance, unloading costs right from the port of loading. Moreover, the buyer will meet all transportation costs from the destination port to his or her factory. It is important to note that all risk is transferred to the buyer when the goods are loaded on board at the port of shipment.
Under a CIF (Cost, Insurance, and Freight) agreement, the seller should provide minimum insurance for the goods in transit, pay for freight costs and is responsible for all costs of goods in transit up to the buyer’s preferred destination point.
Why should you consider FOB for your garment and textile import?
Having explained the two agreement terms above, considering FOB to import your garments and textiles will give you an upper hand in minimizing overall import costs and increasing your convenience. More often than not, first time importers and people importing small quantities use CIF where convenience is guaranteed. You don’t have to deal with unfamiliar shipping and freight details. Notwithstanding the convenience factor, you may end up paying a fortune to import your textile, garments and other goods under this agreement. This is because the seller will collaborate with his forwarder and is likely to mark up the costs charged by his forwarder to make a profit. As a buyer, you will have no control over the invoice.
With FOB, you have total control over your freight costs. You have the benefit of hiring your own forwarder at an agreed freight rate, among other charges. You will also be able to get exact and timely information from your forwarder, hence solving any service issues or hassles during transit. You will also enjoy transparency on shipping movements, as you have a local contact to provide shipping information, quoted costs for both freight and locals. On the other hand, if you ship CIF, you may not know who the local handling agent is and what their charges will be, which may bring with it inconvenience and additional costs in handling your shipment.
Ultimately, if you decide to ship with an FOB agreement, you will be in control of your shipment. You will be in a position to choose a method of shipment, your own agents, organise for a convenient insurance policy and set your own transit time. With CIF, all the above-mentioned variables are controlled by the seller, which may disadvantage you.
For a quick reference guide of INCOTERMS, please refer to the Australian Customs and Border Protection Service Fact Sheet.
(Note this fact sheet is a general guide only)
To request more information on shipping your goods FOB and how we can assist you, contact a Magellan representative on 1300 651 888 or email us at email@example.com with your enquiry.
Magellan Logistics is a very proud sponsor of Fairhaven Surf Life Saving Club Nippers program, supporting the logistics and transport of gear packs for new and existing nippers with packs including a Cap; Broad brim sunhat; Blue sun protection rash vest; Towel, Drink Bottle and Gear Bag.
The Fairhaven SLSC Nippers has a proud history of teaching children how to have fun & keep safe on the beach since the summer of 1972/73.
The program is designed for children aged 5-14 & aims to teach them to be aware of important beach hazards (such as rips), as well as helping them to develop surf swimming & boarding skills.
It also provides a terrific opportunity for physical activity, social interaction with peers & to improve awareness regarding environmental issues affecting our beaches & waterways.
As Nippers move through the program they also acquire basic first aid & resuscitation skills.
Fairhaven is a beautiful surf beach located on the Great Ocean Road between Anglesea and Lorne. This magnificent stretch of sand and surf takes in Aireys Inlet, Fairhaven, Moggs Creek and Eastern View and is where founder and managing director of Magellan Logistics, David Thatcher, enjoys the New Year holidays with his family on the Victorian coastline.
For more information on the nippers program and Fairhaven SLSC http://www.fairhavenslsc.org/nippers/
Please note our office operating hours over the Christmas and New Year period
Tuesday 24th December 2013 Closing at 2pm
Thursday 26th December 2013 Closed Boxing Day holiday
Friday to Monday 27th – 30th Dec 2013 Normal Business hours 8.30am – 5pm
Tuesday 31st December 2013 Closed at 2pm
Wednesday 1st January 2014 Closed New Years Day holiday
Thursday 2nd January 2014 Resume of normal business hours
The Budget papers released in May, 2013 stated that the Government will restructure the Import Processing Charge (IPC) to recover the costs of import related cargo and trade functions undertaken by the Australian Customs and Border Protection Service (ACBP).
This Import Processing Charges Amendment Bill has now been passed through both Houses of Parliament without amendment.
On Magellan invoices IPC this shows up as “Declaration Processing Charge”. On a Customs Declaration/Entry, IPC forms part of the customs “other charges”, seen at the bottom of every electronic entry – Please note that the AQIS container and processing charges which also make up part of the other charges, will not change at this stage.
The Bill will increase the import declaration and warehouse declaration processing charges levied on air, sea and post consignments with a value of $10,000 and above effective from 1 January 2014.
For jobs valued over $10,000, please see the guide below for increase values.
FCL Other charges – Currently $88 will increase to $190.60
LCL Other Charges– Currently $70 will increase to $172.60
Airfreight Other Charges– Currently $55.20 will increase to $137.10
For consignments valued from $1,000 to $10,000 the customs “other charges” will remain at the current level of $88.70 for sea import declarations and $55.20 for air import declarations.
Clients should note these increases will become effective on 1 January 2014.
If you have any queries please feel free to contact Daniel Crawford – Daniel@maglog.com.au
Please note that China will be on their Dragon Boat Festival holidays between the 10-June to the 12-June.
Freight Forwaders in China will be closed during this period.
The last working day before holiday is the 9-June and they will return to office on the 13-June.
If you require information on sailings and cut off dates, please contact our office for more information
Higher Productivity Freight Vehicles (HPFVs) have been granted increased access to Victoria’s road network.
Terry Mulder (Transport Minister) has stated that HPFVs could travel from Port Melbourne through West Gate to Princes Highway west to Geelong on sectors of the Western, Calder and Hume Freeways and sectors of the Westernport and Princes Highways.
30m B-doubles will be granted access to the Monash and West Gate Freeways including CityLink and EastLink. Restrictions such as a 90km/h speed limit, GPS tracking and 68.5 tonne weight limit will be enforced.
Importantly, a 30m B-double can transport two 40 foot containers. This additional capacity is anticipated to reduce road congestion and truck crashes while unlocking road freight productivity on Victorian roads.
Neil Chambers, CEO for the Victorian Transport Association (VTA) said, “Not only will this decision lower distribution costs, it will have a positive economic and job creation effect in the trailer and component manufacturing sector which is strong in Victoria.”
The Cubic Freight Network will consist of identified divided highways in regional areas and the B-double network in metropolitan Melbourne. HPFVs will have access to these routes.
VicRoads and transport operators will work collaboratively on “last mile” permit access on local roads with Local Governments.
“In meeting the Performance Based Standards (PBS), these vehicles will be among the safest on our roads with an anti-lock braking system (ABS) on all axles, roll stability control, low-speed turning capability, superior on-road tracking behaviour, as well as front, side and rear under-run protection”, added Mr Chambers.
Please find below an abridged version of correspondence received from Zaman Sagar – Managing Director of Concord Express.
Dear all concerned,
With deep regret I wish to inform you that all garment industries in Bangladesh will be closed for the next two days Saturday, 27th April and Sunday 28th April 2013 in order to ease the massive agitation of garment workers all over the country, caused by the complete collapse of a nine storied commercial building situated in the Savar area out of Dhaka city. The building collapsed suddenly at around 9.30 am on Thursday, 25th April 2013. The building contained garment manufacturing businesses. More than 6000 workers were in and around the building at the time.
A rescue operation commenced with different agencies including Bangladesh Armed Forces, Civil Defense and Fire Brigade, Red Crescent and many people willing with every effort to help. At the time of writing, 11.15 pm on 26/04/2013 around 2400 people have been rescued though many with severe injuries and 310 people have lost their lives. The rescue effort is still ongoing, giving priority to rescuing people trapped in the debris. This process is time consuming and dangerous due to the nature of the building’s collapse. According to the rescue authority source, thousands of workers are still trapped and need to be rescued with immediate effect.
It is pleasing to report that more than 100 bodies have been rescued today (Friday) on the third day rescue operations.
Though some heavy lifting equipment has been delivered to the damaged site by the rescue authority, it is still unsafe to use this equipment while people remain trapped.
Due to this tragic incident, most of the garment workers in the country have come out onto the streets, to hold demonstrations, unfortunately, anger has provoked the vandalization of hundreds of vehicles all over the city. This has caused a serious situation all over Dhaka city and its nearby areas resulting in gridlock throughout the city.
All concerned authorities are trying hard to ease the situation all over the country especially in Dhaka city and its nearby areas and as a pre-caution and to control the agitated situation, Bangladesh Garments Manufacturers Association (BGMEA) has called all Garment Industries to be closed for the next two days as stated above.
We are anxious that the situation may hamper some regular and urgent shipments by air or by sea as planned, since the situation is totally beyond our control, we are trying our best to serve our valued customers during this devastating situation.
Please convey the same to all concerned parties involved for their kind understanding and patience.
We ask that you join us in our sincere hope for the early recovery of hundreds of severely injured people and the salvation of the departed souls during this devastating incident In Dhaka.
We are closely monitoring the situation and will keep you posted.
DP World Melbourne has been operating on a new Terminal Operating System, Navis Sparcs SN4 for the last four weeks. Delays have been experienced at both West Swanson Terminals:
West Swanson Intermodal Terminal (WSIT)
WSIT has been experiencing delays arising from the booking and manifesting of containers by carriers. As a result only 50% of manifests were capable of being processed through the auto gate. This has necessitated a manual processing of the inbound trucks resulting in delays. The system has been modified resulting in 99% of trucks now being processed via the auto gate.
On 9 April 2013, DP World communicated to the industry via 1-Stop, that trucks without manifests or appointments to WSIT or WST would be turned away. A small number of trucks have continued to arrive at the gate without proper appointments or manifests and consequently are being turned away.
West Swanson Terminal (WST)
Systems updates for recent delays were applied at 1430 on Thursday 4th April and landside performance has since been stable.
Due to the large number of slots released to cater for the short week following the Easter weekend, all VBS access systems (General Slots, Stack run ins, SRO Stack run outs, XRAY slots) have been opened to maximum levels to support the current demand until this coming Sunday 7thApril.
We have been experiencing truck queues during the last two or three days. This delay factor has reduced by 50% and is now currently up to two time zones (two hours).
We expect to return to normal operating levels by Monday next week.
As earlier communicated, penalties and storage charges on account of delays, will be waived as appropriate.
We regret any inconvenience to our customers. Should you need any assistance or further clarification please do not hesitate to contact Sean Bradley, Landside Superintendent on (03) 96800830.
On 2nd April 2013, the Port of Melbourne Corporation (PoMC) released the downward trending container trade figures for February 2013.
Decreases were recorded for 2 out of the 5 measured indicators. The positive indicators demonstrating an increase were, full overseas container imports (4.5%), full overseas container exports (0.5%) and empty overseas container imports (15.3%). The increases are small but nonetheless are heading into positive territory.
The key take-aways from the PoMC report for February are:
Total overseas container throughput (full + empty) for February was 162,615 TEU, this was a decrease of 1.9% over the equivalent period last year and down 2.3% for the financial year to date.
Total (full + empty) container imports for the month were up 5.1% while total (full + empty) container exports decreased by 8.4%.
Full overseas container imports increased 4.5% over February last year to be down 3.2% on a year to date basis.
Commodities with the most notable gains were furniture, clothing, aluminium, toys and sporting goods.
Vehicle parts, rubber manufacturers, raw plastics and machinery returned the most notable declines, whilst exports of cotton, pulp and waste paper, rice, newsprint and dairy recorded the most significant increases for the month.
Empty overseas container movements for February decreased 19.5% over the same period last year to 28,412 TEU to be down 2.3% on a year to date basis. Empty overseas exports decreased 24.3% for the month while imports were up 15.3%.
Miscellaneous manufactures remains steady at the top of the import tally comprising 9.3% of imports while textiles remain the bottom dwellers with 1.5%.
Exports of paperboard and manufactured paper products lead with 7.0% with raw plastics sitting at 1.8% of total exports for Feb 13.
Imports are arriving from East Asia (40,008 containers) accordingly, East Asia is also the destination for most of our export containers (30,891 containers).
To read the full report from the PoMC – www.portofmelbourne.com