May Connected
18th May, 2023
Ocean freight update
Rates ex Asia have continued to trend downwards, they are at the lowest point in memory. The ability for vessels to operate at this seriously low rate is not sustainable. Most shipping lines have expressed a desire to increase rates from June 1st, this however was also alluded to for May shipments but did not eventuate. The increasing concern is the continuing blank sailings, this has been in play throughout 2023 with the intent to bring about a false demand and then lead to increasing ocean freight rates. The demand is yet to have an impact which will likely lead to increased blank sailings.
SCC staff take on further CargoWise certifications
Congratulations to Mark and Deneal for advancing their CW skills with further certifications. All SCC staff are undertaking additional CW training to ensure our business is utilising the CW platform in the optimum manner. We are supporting and encouraging each staff member to become a CW Super User.
UK/AU FTA
The Australia UK Free Trade Agreement (FTA) will come into effect on May 31, 2023, with a relatively straightforward documentation requirement. Goods imported after this date, and goods imported before this date where customs duty has not yet been determined, are eligible. The FTA offers substantial benefits for both Australian and UK importers, with almost all UK goods being duty-free when imported to Australia. However, caution should be exercised, as the knowledge that the goods satisfy the rules of origin in this particular FTA is necessary, and a customs broker may require documentary evidence to support the claim. Additionally, it is important to note that the exact duty outcome for exports can be obtained by reviewing the tariff commitment schedule to the FTA. Therefore, businesses should review the details of the FTA and assess whether their goods qualify for the FTA and the duty benefits that can be achieved. It is also crucial to implement procedures to ensure that the origin documentation requirements are being met and to review the use of other tariff concessions to ensure trade compliance. The customs team at SCC has attended seminars on this FTA and are readily available to assist with enquiries you might have. customs@sccargo.com.au
Air freight
Great to see flights in and out of Australia, below commentary is from Austrade:
“With Northern Summer Schedules taking off last month, flights from Australia are soaring to new heights! Compared to the previous Export Supply Chain Service (ESCS) Snapshot, Australia has seen a 9.6% increase in overall outbound flights (from 1576 to 1727), including a 6% rise in wide body aircraft (ideal for freight).
The 1727 outbound flights in the third week of April equal:
– Over 5x the number of flights compared to the same period in 2020 (330 flights)
– 85% of flights compared to the same period pre-Covid (2025 flights in 2019)
In more positive news, analysis by the ESCS team show 7 key markets are now sitting at on or over 100% of flight numbers compared to pre-COVID.“
WCA/GAA partners
At SCC, we take great pride in being affiliated with the WCA and GAA global freight networks, which enable us to engage together and effectively manage our clients’ critical shipments. We would like to extend our appreciation to all the members of these organizations, with whom we have had extensive interactions in 2023, resulting in a record number of freight inquiries. Our sales team is committed to promptly sharing rates that not only enable you to make a sale but also foster a productive partnership. We are delighted with the outstanding outcomes, as we are able to provide support to our fellow members and work jointly towards new business opportunities.
Brisbane Olympics 2032
The upcoming Brisbane Olympics in 2032 has spurred a $4.9 billion infrastructure plan with a 20-year pipeline of opportunities and KPMG estimates that the Brisbane 2032 Olympics will deliver $8.1 billion to the Brisbane economy. To take advantage of these opportunities, the team at SCC attended a presentation on Tuesday to better understand how customers can approach the government for tenders.
Even in times of economic uncertainty, the government continues to advertise and offer opportunities for businesses. However, many businesses are not aware of these opportunities or do not know how to access them. If you or your business need help identifying these opportunities, where possible SCC is available to assist.
