RUOK - before we head into our weekly update everyone here at Freight & Trade Alliance (FTA) wanted to ask RUOK - these are concerning times for all and the pressure to deliver services for your clients is no doubt increasing with the range of country "lockdowns" affecting cargo movement and receipt of documents. Not too mention the uncertainty here in Australia surrounding who is an essential service as well as the increases / impositions we see of surcharges and just the general financial costs of running your business.
To make sure you consider how you, your staff and extended families are going we have put together the following to make sure you think of yourselves and your staff -
* Looking after your mental health during the COVID-19 Pandemic
* Employers and workplace mental health during the COVID-19 Pandemic
Stay Well and Stay Healthy
China - Update
Our sources from China have provided us with the following updates
- China has started to release the restrictions in Hubei province step by step as mentioned last week, the city should be back to normal from April 8. Currently, China have over 771 imported cases, and local new cases in the last week is less than 20.
- According to Beijing Daily, March 31, Chinese government are starting to monitor all back to work companies and factories to reduce the possibility of a second wave. Most of the big cities are keeping entertainment facilities either closed or in some cases partially back to normal business.
- According to a study at the RENMIN UNIVERSITY of CHINA, the GDP increase rate for China will be 3%-4% in 2020, due to the impact of the coronavirus. It will trigger the possibility of a Global Economy downturn.
- CCTV news March 29, the productiveness of the majority of eastern and southern provinces is back to around 90%. Some big cities are close to 100%, such as Shanghai, Guangzhou, Beijing etc.
- Normal trains services have started back in Hubei province, so the human resources from Hubei province are going back to other provinces to fill the demands (Xinhua news March 30). However, the Health checks and control policy are still being implemented.
- According to chinaports.org March 27, from March 9 thru 15 the average throughput increased over 10% for all the ports in China compared to the previous week. From March 16 thru 22 most of the ports kept the same numbers. From March 16 Wuhan port is also back to operating.
- However, according to many sources the rebounding of Chinese exports at the end of March and April is not as strong as expected, due to Global pandemic situation.
- Maritime Strategies International (MSI), on March 30, also warned the whole forwarding industry that at the beginning of May there will be a big downturn again, as Europe and USA are locking down and stopping or slowing down their overseas purchases.
General Updates - Dubai - Dubai government has established a "work from home" module from March 25 thru April 9. Also note no PAX flights into / out of Dubai, with exception of freighters. Dubai Customs will have limited staff so expect delays.
- India - Lockdown March 25 for 21 days - borders closed and only essential services and goods moving - delays can be expected to cargo movement in / out of the country
- New Zealand - New Zealand has announced a move to "level 4" lockdown for a period of 4 weeks commencing Wednesday March 25. - essential goods have no restrictions - non essential goods are being moved dependent on consignee availability / compliance - some shipping lines / stevedores accepting requests for relief of demurrage / detention
- South Africa - Lockdown March 27 till April 16 - strict controls only allowed to leave home for medical care / food shopping / medicine etc - supply chains involved in providing essential goods to essential services ok to work
- Spain - Lockdown March 31 thru April 9 - essential services only (supply chain particpants in these areas can work)
- United Kingdom - Lockdown March 23 and will be assessed in 3 weeks - all non essential shops close - supply chain still operating but a number of businesses are working from home which is impacting cargo delivery
Impact on Shipping *Update* -
In response to the COVID-19 coronavirus outbreak, a number of countries, ports and organisations are publishing details of the measures being put in place. Please review the above link as required.
Economic Update 
"US markets closed out the March Quarter, suffering the worst shock since the GFC. US equities suffered the worst losses for a quarter since 1938, but this could have been worse, had we not seen the strong rebound over the last week or so.
The control and containment of the pandemic, remains key to the size and scope of the economic recovery, in global markets" - See the full update HERE
Please view a presentation a presentation by Collinson Forex on 30 January 2020 showcasing latest technology solutions – refer HERE
Shipping Update- Electronic Delivery Orders (EDOs)- Over recent days members have expressed concerns where they cannot lodge, eg; a shipping line office closed, an original bill of lading (OBL) to obtain release of cargo. FTA have spoken to a number of major lines and in the main have received favorable comments. In many cases lines will accept a scanned copy of the OBL along with a copy of tracking receipt used to send the bill physically, and once funds have been paid will issue the EDO. Most also advised such arrangements would be on their websites or have been communicated to their clients. Note also that some lines are operating reduced hours of front counter operation to manage staff levels. We suggest you maintain close communication with the customer service teams at the particular lines. We thank ONE , MSC, CMA CGM , Hamburg-SUD and COSCO for assisting us with our enquiries.
- Infrastructure Charges
Further to our commentary on Monday March 30, Paul Zalai, Director and Co-Founder of FTA, had a teleconference with the Chief Executive Officer of DP World Australia on Tuesday March 31 to address both the recent announcement of fee changes on the East Coast as well as the wider issue of infrastructure charges. Whilst it was disappointing there was no agreement in terms of the appropriateness of the charges
nor the scheduled changes to rates to take effect in May, it is now clear that the only way the FTA/ APSA position can be achieved is via regulation. read our full report HERE
Airfreight update
The capacity of the airlines passenger fleets to carry "belly space" cargo continues to decline as airlines close down their passenger routes. That said many are now moving to operating their pax flights as cargo flights only and this is providing some relief on some routes. As mentioned last week their are cargo charters but these are continuing to come at much higher prices than normal.
As regards airline routes into / out of China we are advised effective from March 29, according to the Civil Aviation Administration of China (CAAC), each Chinese airline can only operate one route to any country, with no more than one flight per week. Each foreign airline can only maintain one route to China, with the number of weekly flights reduced to one.
BREAKING NEWS !!!
Government steps in to provide $110 million dollars in airfreight support initiatives - Following on from the advocacy of FTA / APSA to the National Covid-19 Coordination Commission we were advised last night of this support for industry. It was noted that this specifically aligns to our recommendation "to ensure business continuity, it will be necessary for funding to support traders of perishable goods reliant on air cargo to export to or import from global markets" – FTA / APSA formal submission is available HERE.
FTA will attend a full briefing on Thursday April 2 at which more detail will be advised by Ministers Birmingham, Littleproud and Duniam. - read the news release HERE
You can also make use of the "COVID-19 Air Cargo Bulletin Board" where industry can communicate with each other to advise freight space availability or requirements. See latest update below As a contribution to Australian trade and community, FTA will host this service as long as required on a free of charge basis available to all of industry.
Risk Management 
From James Cotis - Principal, at Logical Insurance Brokers -
"One way of minimising the spread of the virus is for businesses to instruct their staff to work remotely, i.e. work from home. However, whilst we are all trying to kerb the spread of this human virus, attention should also be paid to viruses spread in the information technology realm because remote work arrangements can have security implications and cybercriminals are attempting to take advantage of this." – click HERE to see the full article from Logical Insurance Brokers
Business Operations
Statements from Senator the Hon. Michaelia Cash
* Assistance available to Small Businesses ( with state links )
* Supporting businesses to retain jobs - Jobkeeker payment
Business Continuity
OLC recently released a video relating to an initiative which is designed to help those forwarders out there who may be finding it difficult to get some form of business continuity enacted to gain control of their work. Particularly those not using some form of workflow or task management. If you are using CargoWise, you have the tools you need. Let us show you how to use them. We are all in this together.
Department of Agriculture, Water and the Environment -
* Supermarket stocks
In the current environment it is crucial that we ensure the Australian community has access to adequate food supplies. To that end we are pleased to hear that the Department of Agriculture Water and the Environment (the department) is working closely with the supermarket industry to ensure goods required by the Australian public can be moved as quickly as possible through the border clearance processes. Our thanks to Lee Cale from the department in heading up this group.
An acknowledgment also to the ACCC who have allowed the supermarkets to engage with each other and their service providers to maintain supplies and deliveries. Imported Food Notice 03/20 also addresses issues related to food imports and inspections in general.
* Import Pathway Arrangements and response -
The department has received enquiries about how it is approaching its staffing, regulatory and operational obligations to respond to the COVID-19 situation. This document outlines the department's approach.
Australian Border Force (ABF)
FTA have raised a number of suggestions, some now receiving support from other industry groups, with the ABF that have the potential to assist members / industry supply chain participants and the local community in these concerning times. Please refer following links for more information.
* New Export Controls
* Deferral of Duty, GST and Import Processing Charges - a summary of our actions- Letter to the National Covid-19 Coordination Commission – refer HERE;
- Correspondence with the Secretary Australian Treasury;
- Spoken to Paul Little (CEO Toll Holding) and members of the National Covid-19 Coordination Commission to seek their escalation to treasury;
- Follow up to see what opportunities / scope may exist via Trusted Traders; and
- Meeting, Wednesday April 1, with the ABF Commissioner as a member of the Customs Advisory Board
TasPorts - assisting industry
To improve cash flow for all valued suppliers, TasPorts, together with its wholly owned subsidiary Bass Island Line and Joint Venture - Southern Export Terminals, are reducing supplier payment terms from 30 days to 14 days. The 14 day period will be from the date of receipt of a valid tax invoice. - see full article HERE
Coronavirus – Legal issues for the international trade sector 
Russell Wiese and David Thompson of Hunt & Hunt Lawyers recently delivered a webinar to in excess of 300 registered members on the supply chain - commercial and employment law issues arising due to the impact of the Coronavirus - a PDF copy of slides and access to the recording is available HERE.
Coronavirus - Government Aid 
Phil O'Toole, Managing Director of Centium, last week, delivered a webinar outlining the Federal and State Governments Business Support Measures designed to assist your business during these uncertain times with the Coronavirus within our shores - click the following links to access
Copy of Presentation - Listen to Recording
Workplace Relations 
Ed Mallett, Founder & Managing Director - Employsure, conducts a live stream each day on COVID-19 issues - see the facebook link HERE - to catch previous session click HERE
There are also links to a range of support material on their website
Please note the below links for up dated informationFURTHER INFORMATION
FTA suggest members / industry maintain close relations with their forwarders, agents, shipping lines, clients and suppliers / agents globally to ensure they have the latest information available. This is a time for review and planning not for panic.
FTA will continue to monitor issues surrounding the coronavirus and keep members updated as necessary.
Stay Well and Stay Healthy
John Park - Head of Business Operations, FTA / APSA |
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