BULLETIN : NORTH/NORTH EAST ASIA GRI 1ST JANUARY 2019 : WHARF INFRASTRUCTURE FEES INCREASE JANUARY 2019
Oceanfreight carriers have announced price increases to match market demands in the lead up to Chinese New Year.
Carriers have announced a rate increase in the below quantum. While the longevity of the increase is forecast for the entire shipping period leading to the annual holiday period, we shall only bill in the quantum and for the time period this increase is held for.
General Rate Increase ( GRI ) NORTH/NORTH EAST ASIA: Effective 01.01.19
LCL : USD 12.00 PER CBM
20 GP : USD 300.00 PER TEU
40 GP : USD 600.00 PER FEU
Wharf Infrastructure levy
All Australian major wharf operators have announced an increase to the existing wharf infrastructure levy. The increase varies across the states and within the states. The general increase window is between AUD 15 – 40 per container increase, effective from January 2019.
As ongoing access to the wharf terminals will be conditional on pre-payment of the charges we shall have no choice but to pass the relevant cost on to each importer.
Sydney Surcharge per container : AUD 90.00
Melbourne Surcharge per container : AUD 105.00
Brisbane Surcharge per container : AUD 105.00
Adelaide Surcharge per container : AUD 90.00
Fremantle Surcharge per container : AUD 90.00
LCL Level per cbm : AUD 5.00 per cbm or w/m OR
LCL Level per Bill of Lading : AUD 40.00 – AUD 55.00 per House Bill of Lading (HBL) – if applicable .
Low Sulphur Surcharge
All carriers have announced their requirement to raise a new surcharge at origin for the LS export from China.
It is an origin charge attached to the origin port and as such will be captured with the origin onboard charges. The consensus will therefore follow that this charge will build part of the incoterm “FOB” charges structure in place , with a requisite increase to these charges to capture the new surcharge on that list.
The Low Sulphur Surcharge (LSS) stems from an International Maritime Organization (IMO) regulation initially agreed upon in 2012 to reduce the amount of sulfuric fuel emissions being burned by cargo vessels near ports and populated coastlines. High Sulphur content fuel contributes to a significant amount of sulphur dioxide emissions, known to be hazardous to public health.
Carriers servicing routes through designated Emission Control Areas (ECA) will be required to use fuel with a Sulphur content equal to or less than 0.1% . Current fuel is marked at 1.0% concentration.
Compliance
Carriers can comply with ECA regulations through two options: switching to low-Sulphur marine gas or buying a “scrubber.” Low Sulphur emission fuels are highly filtered and can cost up to four times that of regular bunker fuels. Scrubbers can cost up to $14 million USD for a large vessel and take up to two years to install.
Low Sulphur Surcharge Fees
There is a raft of levies across the carriers for cost recovery of compliance. Maersk, as an example, estimated regulations will result in over $200 million in fuel cost increases per carrier.
The LSS charge is not a fixed amount; it varies by carrier and routing, ranging from $20 to $110 per 20’container and $50 to $220 for a 40’ container. Publications have been received from some carriers that the collection of the LSS originating in China will be at destination Australia.
Our customer service teams are aware of each carrier stance on this new surcharge and shall advise at time of booking if there is a requirement to quote this fee in addition to the container charge.
Brown marmorated Stink Bug – LCL – New Fee
For those to whom this is a relevant annual event, you are no doubt aware the BMSB season measures for 2018-19 are now in effect, these measures are now seeing containers shipped from High Risk countries (USA, Italy, Germany, France, Russia, Greece, Hungary, Romania & Georgia) along with gateway containers ( Singapore, Belgium) that contain Target High Risk goods being place on mandatory hold at the Terminals.
The master consolidator are then required to provide the relevant documentation to DAWR in order for the hold to be lifted and the container permitted to be unpacked.
DAWR are imposing a cost for these entries which is now being passed from the master co loader to ourselves, therefore with effect from 1st January 2019 a BMSB Processing Fee of A$11 Per HBL will be applied to cargo originating from a High Risk BMSB Country and will remain in place duration of the BMSB season.
The fee will be apply to HBL originating from High Risk countries and cargo of High Risk Origin moving via Gateways (Singapore, Port Kelang, Hong Kong, Busan, Antwerp, Rotterdam etc)
Should you have any queries on the above subject matter please contact our office directly.
Specific Freight would like to extend their warmest wishes for a Merry Christmas and Happy New Year to all of our clients.
We thank you for your support and look forward to assisting you in 2019.
Thanks and best regards
Dita Duraku
Commercial Manager – Melbourne
Specific Freight Pty Ltd
Email: ditad@specificfreight.com.au
Direct: + 61 3 8336 3154
Ph: +61 3 9335 1511 Fax: +61 3 9335 1757
Mob: 0403 931 859 (+61 403 931 859)
All business is subject to the standard trading terms and conditions of Specific Freight Pty Ltd which can be viewed at www.specificfreight.com.au or available on request