February 2017 Newsletter

February 2017 Newsletter

  • November Air Freight Demand
  • Moorebank Intermodal Company and Qube Reach Financial Close
  • Brexit Update
  • What Australian Border Force Officers Found This Holiday Season
  • Counterfeit Shipping Containers
  • Melbourne Toll Increases
  • Fuel Surcharge Update


November Air Freight Demand Reflects Strong Peak Season

IATA released data for global air freight markets showing that demand, measured in freight tonne kilometres (FTKs), rose 6.8% in November 2016 compared to the year-earlier period. This was a slight slowdown from the 8.4% annual growth recorded in October 2016 – which was a 20-month high – but was still more than 2.5 times the average annual monthly growth rate of 2.6% over the past decade. Asia-Pacific airlines saw demand in freight volumes grow 6.1% in November 2016 compared to the same period in 2015 and capacity grew by 4.0%

Moorebank Intermodal Company and Qube Reach Financial Close

The Agreement between Moorebank Intermodal Company and the Sydney Intermodal Terminal Alliance (SIMTA) for the development and operation of the Moorebank Intermodal Terminal Precinct has reached financial close. Qube will develop and operate the open access freight terminal and warehousing precinct under a 99-year lease on the combined Commonwealth and Qube owned sites. The IMEX terminal with initial capacity of 250,000 TEU, rail links to the Southern Sydney Freight Line and container processing areas is expected to start operating in late 2018, and the interstate terminal in early 2020.
Brexit – Where to From Here for UK Trade and EU

MPs in the UK House of Commons recently voted overwhelmingly to support Article 50 – 498 votes to 114.The bill faces further scrutiny in the House of Commons and House of Lords before it can become law. Thereafter, talks with the EU are expected to last up to two years, with the UK predicted to leave the 28-member organisation in 2019. The post-Brexit trade deal is likely to be the most complex part of the negotiation because it needs the unanimous approval of more than 30 national and regional parliaments across Europe, some of whom may want to hold referendums.
What Australian Border Force Officers Found This Holiday Season

While the majority of Australians enjoyed time with family and friends this holiday season, ABF officers continued their 24/7 mission to detect drug smuggling attempts and protect the Australian community. The centrepiece was 500 kilograms of cocaine seized on Christmas Day as part of the ABF’s supporting role in Operation Okesi, a long-running Australian Federal Police and NSW Police investigation. The ABF made another 13 significant illicit drug detections totalling about 65kg during the festive season.

Counterfeit Shipping Containers

Department of Immigration and Border Protection (DIBP) via Border Watch Engagement has provided the following information.
A counterfeit shipping container (also known as a fake, cloned or re-birthed container) is a container that has had its unique identifier erased from its exterior and replaced with that of another legitimate containers unique identifier.
Recently an importer when unpacking two containers found, not the goods ordered, but instead the containers filled with cheap brick pavers. The whole containers were substituted and counterfeited.
We were told that this particular incident was a very primitive attempt as the containers in question were very old and in poor condition. So the possibility for a more widespread sophisticated operation cannot be underestimated.

Increases In Melbourne CityLink Tolls

The CTW Project is jointly funded by the Federal Government, the Victorian Government and Transurban (CityLink). However, in an agreement reached between the Victorian Government and Transurban to proceed with the investment, a significant increase in truck tolls was imposed to commence from April 2017, but not for cars.

The significant increase in truck tolls discriminates against the freight transport industry and will have negative flow on effects to the costs of commercial transport and the economy.
The post April arrangement will see Heavy Commercial Vehicles (HCVs) pay 3 times the car toll during the day and 2 times the car toll in the evening.

Since the inception of motorway tolls in Melbourne, the overwhelming majority of container transport companies have absorbed tolls. With the significant increase coming into force in April, the industry is no longer able to commercially sustain this approach.

From 1st April 2017, container transport operators using CityLink, Tullamarine Freeway and the Monash Freeway to and from the Port of Melbourne will face significant increases in tolls due to the Citylink, Tulla Widening (CTW) Project.

We will provide further information as it comes to hand.
Fuel Surcharge

Our current fuel surcharge for domestic pick-ups & deliveries is as follows:

Sydney – 13.0%
Brisbane – 13.0%
Melbourne – 14.0%