April Connected

13th April, 2023

Ocean Freight ExChina to AU hits a 20 year low

The concerns about the disappointing outlook for the freight market ExChina to Australian have had an impact on Full Container Loads (FCLs). With rates hitting a 20 year low, FCL bookings are being considered in place of what otherwise might have been an LCL booking, as always at SCC we will assist with making the right decision on the best mode of transport for your important bookings.

In response to the situation, many ocean freight carriers have continued to drop their rates starting on April 22nd, 2023. There is commentary of general rate increases to be implemented during April, this has subsided for the time being.

Additionally, some carriers have switched from larger to smaller vessels. This decision has been made to accommodate the current low demand and to avoid the cost of operating larger vessels with low occupancy rates. The shift to smaller vessels is expected to result in more frequent sailings, which may provide shippers with more flexibility in terms of scheduling. This change does take time to have an effect, as such blank sailings are still current.

FCL Border and X-ray holds

There has been a spike in border and x-ray holds for the importation of FCLs, which has been causing significant issues in the shipping industry. Whilst these holds can cause delays of your shipments, SCC staff and related service providers are working together to minimise the impact on your businesses.

The Chain of Responsibility (CoR) – working with heavy vehicles

Under CoR rules, all parties involved in the transportation process, including consignors, packers, loaders, drivers, operators, and receivers, have a legal obligation to take all reasonable steps to prevent breaches of road transport laws relating to the safe transportation of goods. This includes ensuring that vehicles are maintained in a safe condition, that drivers are appropriately trained and licensed, that loads are correctly restrained, and that transport activities are planned and executed in a safe and efficient manner.

We would like to remind you of the increasing application of weight variance fees (PONDUS) in the industry. As such, we urge you to ensure that your suppliers are packing containers correctly and declaring the correct weight. To support our customers in regard to COR responsibilities, SCC staff are currently being trained further on this subject.

Please note that a variance of 1 ton (+ or -) could result in an extra AU$200-250 charge, depending on the terminal. These charges can be avoided with the correct details provided at the time of booking.

End of BMSB season – 30th April, 2023

Good news for importers, BMSB season concludes on 30th April 2023. This will lead to reduced shipping costs for Australian importers, particularly those importing goods from Target High Risk countries or importing Target Risk goods that were subject to heightened biosecurity measures during the season. This included mandatory treatment and possible inspections.

However, it is important to note that the BMSB season will recommence on 1st September 2023. Importers should, therefore, work closely with the team at SCC to ensure that their cargo meets all necessary requirements to avoid any potential delays or additional costs associated with compliance with these biosecurity measures.

We are excited to announce SCC has been included Un Global Compact

As part of our broadening sustainability initiatives here at SCC, the United Nations has confirmed our commitment to the UN Global Compact, the world’s largest corporate sustainability initiative. We join over 17,000 companies (including companies like Green Worldwide, DHL, Unilever, Amazon etc) globally in our commitment to the 10 principles which cover human rights, labour, environment and anti-corruption. The underlying premise here is the importance placed on making global goals local business – driving awareness and responsible action by businesses. 

New cars and vehicle delays

As a result of biosecurity inspection delays more than 8000 new vehicles are stuck at the ports in NSW and VIC after being flagged for contamination. The Federal Government is working with car manufacturers to get additional cleaning facilities up and running. If you are planning on purchasing a new vehicle, we suggest that you clarify the lead time for delivery with the dealer.

Thanks

As always, we remain very thankful for the continued support of our wonderful customer base, we are here to your support your business and very much enjoy the engagement with each and everyone of you.

Our WHY remains as relevant as ever

Here, at Southern Cross Cargo, with everything we do, we strive to deliver solutions and provide support so those that we engage with can prosper.