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Please note our office operating hours over the Christmas and New Year period

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2014:

Wednesday 24th December

Closing at 2pm

Thursday and Friday 25th & 26th December

Closed Christmas & Boxing Day holiday

Mon & Tue 29th/30th December                       

Normal Business hours 8.30am – 5pm

Wednesday 31st December                              

Closed at 2pm

2015:

Thursday 1st January                                        

Closed New Years Day holiday

Friday 2nd January                                             

Resume of normal business hours 8.30am – 5pm

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Due to our staff Christmas function, we will have limited staff available on Friday 19th December
from 1-5pm.

Thank-you for you understanding during this time.

We appreciate all the support shown to us by our clients, agents and friends throughout 2014 and we wish you all the best for the year ahead.

The team at Magellan Logistics

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(Below information provided by CBFCA – Customs Brokers and Forwarders Council of Australia Inc.)

Further to NNF 2014/169 Quarantine Fees and Charges Guidelines (the Guidelines) the Customs Brokers and Forwarders Council of Australia Inc. (CBFCA) has been advised that the Department of Agriculture (the Department) will apply specific  increased fees and charges over the Christmas/ New Year period.

Members should note in  particular  the overtime charges, and the prescribed times that are considered as overtime in Section 8.5 of the Guidelines.

It should be noted that overtime rates will  be applied for any transactions that are performed during the period 27 December to 31 December of each year.  This period is considered as a Departmental holiday.

As  service starts outside of ordinary hours, it is considered as non continuous overtime, with a minimum number of hours to be charged.

Therefore any inspections, or AIMS entries required to be processed during this period will attract the normal fee for service, plus overtime of $288.00 per service provided.

In addition on other issues the Department has  also confirmed that in accordance with Section 8.6 of the Guidelines , reprints of directions involving a change to the direction will incur a $40.00 per quarter hour unit fee from the 25th of November 2014.  Where a reprint of a direction occurs during the Departmental holiday period, the fee will be $40.00 plus $288.00.

Reprints of directions where no changes have occurred are considered as part of the initial payment, and will therefore not incur any additional costs.

Where an inspection is booked with the Department, and subsequently  cancelled with 24 hours notice or more, there will be no fees payable.  However where less than 24 hours notice is given, a fee of a 15 minute service fee unit will be charged for manned depots, and 30 minute service fee for unmanned depots.  Please refer to Section 8.7.8 of the Guidelines .

As bookings are made as AM or PM only, the cancellation must occur more than 24 hours before the corresponding AM or PM slot, for no fees to be charged.

Members should clearly note and understand the implications of this provision  implemented for the Departmental holiday period, as if less than 24 hours notice is provided, the cancellation will also attract $288.00 in overtime fees.

Further information

Refer to below Quarantine Fees and Charges Guidelines link or download attachment.

www.agriculture.gov.au/biosecurity/import/general-info/fees-charges-import/quarantine-fees-and-charging-guidelines

CBFCA – National

Download Quarantine Fees and Guidelines November 2014

For more information please contact the Magellan Logistics customs team on 1300 651 888.

What does the celebration represent and how might this national holiday impact your shipments?

Chinese New Year (CNY), also known as the Lunar New Year or the Spring Festival, is the most important of the traditional Chinese holidays.

CNY is based on the Chinese calendar and usually begins on a different date each year. It is based on the moon’s orbit around the earth.  The festival traditionally begins on the first day of the first month in the Chinese calendar and ends on the 15th of the month. Each CNY is symbolized and named after one of 12 particular animals (Rat, Ox, Tiger, Rabbit, Dragon, Snake, Horse, Goat, Monkey, Rooster, Dog and Pig) and consists of a 12 year cycle. 2015 is the year of the Goat.

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The holiday for CNY is officially recognized by the government as 7 days, with typical CNY celebrations lasting for 15 days. In 2015, holidays start on 19th February until 25th February.

Within China, regional customs and traditions concerning the celebration of the CNY vary widely. People will pour out their money to buy presents, decorations, material, food, and clothing. It is also the tradition that every family thoroughly cleans the house to sweep away any ill-fortune in the hope to make way for incoming good luck. Windows and doors will be decorated with red colour paper cut-outs and poems with popular themes of “happiness”, “wealth”, and “longevity”. On the Eve of CNY, supper is a feast spent with family. Food will include pork, duck, chicken and sweet delicacies. The family will end the night with firecrackers. Early the next morning, children will greet their parents by wishing them a healthy and happy new year, and receive money in red paper envelopes. The CNY tradition is a great way to reconcile by forgetting all grudges, and sincerely wishing peace and happiness for everyone.

Effect on your imports / exports during Chinese New Year

As is the same every year, CNY has a massive impact on sea freight and transportation to and from Australia. During the holiday, most areas of government, construction and factories shut down, while ports and customs usually operate with a skeleton staff focusing on perishable priority items that are time-sensitive only, such as fresh produce.

Manufacturing plants across China typically shut down and tens of millions of workers make long trips back to their home towns from the industrial cities where their jobs are based. It has a huge impact on all global supply chains originating from China and it’s not always back to business as usual, before and after the 15 day celebration. The celebrations are also expected to affect port operations in terms of loading, barging schedules and possibly product availability. It can have a considerable effect on your supply chain during the celebration and should be planned for.

When the New Year approaches, factories kick into high-gear in an attempt to ship as many orders as possible before officially shutting down for the holiday.  Major retailers tend to plan ahead to accommodate for the manufacturing shutdown in China during the CNY. Planning and coordination are key to ensuring your supply chain continues to run smoothly during this period and you have enough merchandise for your customers. Importers and exporters will also need to make changes to their production and shipping schedules to ensure they have enough goods to get them through the downtime caused by the factory closures. Stocks are also at times kept in storage until factories are up and running again. China’s entire transportation system is practically at capacity during this time, and it is common for issues with container and truck availability when shipping goods close for CNY.

Shoes-Clothes-Store-Magellan-Logistics

The shipping lines often introduce GRI (general rate increase) in January for peak demand before CNY, and space becomes tight as all suppliers struggle to ship their cargo before the holidays, as well as considering blank sailing programs with shipping lines.

The container shipping lines servicing the North East Asia-Australia trade lanes are moving to cut back on capacity and skipping a series of sailings. This Blank Sailing Program with shipping lines from all 9 consortiums, participate in managing the available space in the off peak period to combat the over-supply of tonnage in the shipping trade. Particularly during the two weeks of CNY, in preparation of volume lulls following the start of the holiday on February 19th, 2015, capacity will be cut by 35 – 42% which will mean less available space on the berth. Trade will be slow due to factories closing over the CNY Period and the traditional off peak period commences. Port capacity is limited and congestion is increased weeks before and after CNY that can lead to delays at the ports limiting the availability of goods in the supply chain. In China and its mainland ports, the celebrations are also expected to affect port operations in terms of loading, barging schedules, etc

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Timeframes to consider & planning

Shipments must be at port at least 10-14 days before Chinese New Year to ensure shipment before the break starts. Shipments must also be booked at least two weeks in advance because space quickly fills up. If you ship a large amount around that time, then congestion will likely bump at least one of your shipments to a later ship date, often a week after CNY if you do not manage your shipments in time. Most ports open again for normal shipping about one week after CNY. Filling containers and preparing customs declaration documents well in advance of the holiday are advisable steps to take. Ports will have major congestion the week leading up to and after the New Year as factories gear up for the shut down and return to work.

In summary, when planning for peak season, be sure to have a buffer for CNY – Two or three weeks for bookings and then another week for ETA in case of delays.

This annual celebration should be a part of your yearly supply chain planning.

Here are the dates of Chinese New Year for the next 6 years for your reference:

chinese-new-year-6-year-dates

We hope this article provides insights on how Chinese New Year may affect your shipping and the necessary steps to take to prevent facing supply chain and shipping delays at this time of the year.

For more information please contact your Magellan account representative, email info@maglog.com.au or our customs team on 1300 651 888.

Trade and Investment Minister Andrew Robb has announced that Australia’s Free Trade Agreement with South Korea will enter into force on 12 December 2014.

The Korea-Australia Free Trade Agreement (KAFTA) was signed in Seoul, South Korea, on 8 April 2014 and KAFTA will enter into force when both Korea and Australia have completed their domestic legal procedures.1

Below is an outline of top imports from Korea into Australia in 2012-2013.2  For Magellan customers, this agreement may also affect those importing textiles or other similar products from Korea.

KAFTA-Korea-Australia-Free-Trade-Agreement

There are a range of products that will have reduced duty rates under this agreement, and to get access to these lower rates, suppliers will have to provide importers a KAFTA certificate.

Four steps to using KAFTA

Step 1: WHAT goods am I exporting or importing? (tariff classification)

Step 2: HOW are these goods treated under KAFTA? (tariff treatment)

Step 3: WHERE are my goods produced? (rules of origin)

Step 4: CERTIFY your goods with a Certificate of Origin

For further information on what items will have reduced rates and the detail behind the KAFTA stepped process above please refer to this media release and/or speak to your friendly Magellan Logistics Customs Broker who can provide more detail on 1300 651 888.

To read more about Free Trade Agreements and how they help Australian exporters, read our recent blog

 

Sources:

1 Customs Brokers & Forwarders Council of Australia Inc. – CBFCA

.2 Department of Foreign Affairs and Trade http://www.dfat.gov.au/fta/kafta/

 

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Thanksgiving update

Last Thursday 27th November was Thanksgiving in America which is usually followed by a holiday for many companies on the following Friday.

The traditional holiday began in the American colonies almost 400 years ago as a feast of thanks to celebrate the successful Autumn Harvest. Moving cargo is quite difficult at this time as many suppliers are closed until Monday December 1st. Bear in mind that some deliveries may be delayed to due this holiday break.

West Coast Delays

Currently the U.S West Coast Ports (Long Beach/Los Angeles) are suffering severe delays stemming from a shortage of trucking equipment, called Chassis. This problem alongside the outstanding labour negotiations were causing trucks standing in mile long queues as stacks of unmoved containers wait for pick up at the complex that handles 40% of U.S. containerised cargo. The Port of New York and New Jersey are also affected but not as severe.
We will continue to monitor the situation and keep you advised as a West Coast Port Congestion Surcharge is likely to be implemented.

Bunker Adjustment Factor (BAF) changes

Changes to Bunker Adjustment Factor (BAF) will be made ex US ports to Australia effective December 15, 2014. The change will be to cover the cost of lowering the cap on Sulphur Oxide emissions to 0.1%. This requires a switch to cleaner more expensive marine gas oil therefore the existing BAF will be decreased and a new Low Sulphur Fuel Surcharge will be applied as follows:

NEW BAF EFFECTIVE DECEMBER 15, 2014

SIZE TYPE LEVEL (USD)
20′ ALL TYPES $794.00
40′ ALL TYPES $1588.00
40’HC ALL TYPES $1588.00

NEWLY IMPLEMENTED LOW SULPHUR SURCHARGE EFFECTIVE DECEMBER 15, 2014

SIZE TYPE LEVEL (USD)
20′ ALL TYPES $47.00
40′ ALL TYPES $94.00
40’HC ALL TYPES $94.00

For more information please contact our customer service team on 1300 651 888.

Jawaharlal-Nehru-Port-congestion-magellan-logistics

Jawaharlal Nehru Port (JNPT), also known as Nhava Sheva, is the largest container port in India, located south of Mumbai in Maharashtra.

According to a Trade Notice issued by the Chief Manager Traffic of JNPT, JNPT is replacing the existing three old Rail Mounted Quay Cranes (RMQCs) with new three Super Post Panamax RMQCs at the Main Container Berth, and shifting the old RMQCs from the Main Container Berth to the Shallow Draft Berth at JNPCT.

During the current installation / commissioning of these new RMQCs alongside the Main Container Berth and the further mechanization of the Shallow Draft Berth, the normal operation alongside the Main Container Berth is likely to be hampered through to 16th December 2014.

Similarly, operations at the Shallow Draft Berth are likely to be hampered through to 12th December 2014.

The shallow draught berth will be available for normal operations equipped with two old RMQCs from 10th November to 30th November 2014, while third old RMQC is expected to be available for operations by 12th December 2014.

While JNPT is making appropriate arrangements to handle the maximum number of vessels within the constraints due to non-availability of adequate operational berth length in accordance with the LOA of the vessels calling the Port, it will not be in a position to handle at least 22 vessels during the current period to 16th December 2014.

According to the trade notice, JNPT has requested both Nhava Sheva International Container Terminal (NSICT) and Gateway Terminals India (GTI) to handle 22 vessels which JNPCT cannot handle during the commissioning period of the new RMQCs.

During this time, further congestion and delays are expected to be experienced by vessels using the port of Nhava Sheva.

Should you need further information, please do not hesitate to contact our Customer Service team on 1300 651 888.

 

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Increasing the ratio of Customs Inspections for Export Cargo in China.

The export cargo inspections ratio from Customs in China, and in particular at Xiamen and Huangpu have been increasing during this year for export shipments to all international ports. When cargo is held for pre-export inspection, this affects the export clearance process, to the extent that shipments may not meet the intended booked vessel. We have noted that pre-export inspections by Chinese Customs can take up to 3 days. It is a random process that is done within the complete control and direction of Chinese Customs.

We recommend a further allowance when delivering export cargo to the receival depots and wharf terminals of 3-4 days before the closing date for FCL & LCL shipments.

Single Buyer Consolidations from various suppliers in different provinces

In the case of buyer consolidations (BCN) that may involve various suppliers from different Chinese provinces, we need to allow longer transits for the domestic transfer to the receival depot. We recommend instructions are given to your suppliers to allow at least 4 days prior to vessel close-off to cover any delays, to ensure adequate time to stuff the container and lodge it at the wharf terminals for export.

For more information please contact your account manager or the customs team on 1300 651 888.

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M.V. Xin Chi Wan v.140s was involved in a collision with MV Bani Bhum at the Ma Wan anchorage off Hong Kong on 3rd Nov., whilst both vessels sustained damages, there was not any reported damages to the containers. The operators of the vessel have now advised the following contingency plans:-

The MV Xin Chi Wan will be taken to a local shipyard for assessments and repairs to damages on the hull.

  • All containers on board were removed from the vessel on the 9th November.
  • All containers originally booked on Xin Chi Wan v.0140s will be loaded on the MV. Xin Qing Dao v.0166s ETD HK 13th  Nov.
  • Xin Chi Wan v.0142s will be phasing back to the ACE service as per the original southbound schedule of Xin Qing Dao v.0166s after repairs are completed. The revised schedule of Xin Chi Wan v.0142s ETD Shekou 18th Nov ETD HKG 17th Nov.

Should you need further information, please do not hesitate to contact our Customer Service team on 1300 651 888.

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Further to our previous blog, this is a reminder that the duty reduction date is rapidly approaching us: 1st January 2015.

In essence, legislation was passed for a reduction to 5% in the general rate of Customs duty applicable to a range of  products, which in particular includes  garments, some home-wares and other made up textile articles that are imported into Australia from 1st January 2015.

If any goods that you import currently attracts a 10% rate of duty, that rate may now be reduced to 5%. Should you need clarification if your imported goods are subject to the duty reduction, please contact one of Magellan Logistics’ Customs Brokers on 1300 651 888.

If you have shipments planned to arrive towards the end of December 2014, and they are cleared before the 1st January 2015, then the current duty rate of 10% will apply.

Rather than delaying shipments until arrival after 1st January to gain benefit from the lower duty rates, we can assist by arranging to have your shipments held for a few extra days either in storage or “under bond”  (moved to a Customs approved warehouse/depot). The duty rate reduction will be applicable to any Customs declarations made on or after 1st January 2015, rather than on the date the shipment actually arrives in Australia.

Before making this commitment, we can assist in a costing exercise in weighing up the added storage, demurrage  & handling costs compared to the duty savings.

As this period will also impact over the traditional holiday close-downs for much of industry, storage is usually always at a premium across Australian ports. So if you intend to hold any of your shipments in storage for a short period to take advantage of the duty reductions, we suggest you let us know your plans as soon as possible, so we can make appropriate planning decisions in your best interests.

Please call 1300 351 888, email info@maglog.com.au, or contact one of our Customs Brokers or your Account Manager directly to further discuss the plans for this upcoming duty rate reduction.

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When it comes to global trade opportunities for Australian exporters, free trade agreements (FTAs) play an important role. For any locally based business wishing to expand their international reach, they are a way of linking otherwise unconnected economies and establishing new markets for reciprocal exchange of goods and services, as well as investments.

Those in the business of international shipping from here in Australia have previously enjoyed seven different FTAs with countries across the globe, including New Zealand, Singapore, Thailand, US, Chile, the Association of South East Asian Nations (ASEAN) (with New Zealand) and Malaysia.

In addition to allowing trades of goods and services, FTAs also typically encompass a range of other trading potential, such as the exchange of intellectual property rights, government procurement and also competition policy.

All exporters in any industry that freights goods internationally can benefit from FTAs.  The fashion, textiles & footwear freight industry for example, under these established FTAs, make up around 26% of Australia’s total trade – a substantial figure and one that is now set to grow further. The addition of FTAs for Japan and Korea will be of interest to Australian garment manufacturers and local fashion exporters.

Japan and Korea Add New Export Market Opportunities

In April 2014, those in the Australian export business were pleased that Australia signed an FTA with Korea.

In other positive news for the local retail industry, in July 2014, Australia also signed an Economic Partnership Agreement (EPA) with Japan. An EPA is an economic arrangement – often described as a premium variation of a general free trade agreement – that opens up free movement of goods, services and investment between countries. It’s good news for anyone in the business of fashion freight shipments, whether as an importer, or exporter of garments and other goods – but also a positive step for any local retailer or manufacturer keen to tap into a wider international audience.

Then, there are economic partnerships, which are sometimes described as high standard variants of free trade agreements.

Using the fashion industry again for a quick snapshot, at the moment, Korea accounts for around 5% of Australia’s total trade, with Japan accounting for around 11%. With the increasing number of FTAs currently in negotiation to help Australian exporters access new markets and expand trade in existing markets, this is expected to increase.

If you’re an existing Magellan Logistics client, currently enjoying the export and import opportunities for your business, we’d encourage you to actively review your current marketing plans and shipment strategies to analyse whether these latest  FTAs will be of benefit for your business.

To find out how your business can benefit from these new Free Trade Agreements, speak to our trusted freight specialist team here at Magellan Logistics, for more information on 1300 651 888.