July 1 fast approaching
Over recent weeks, we have been hearing from shipping lines and contacts that the current trend of full capacity vessels is expected to drop off come the new financial year.
We understand that current volumes have been driven by many retail businesses looking to attract EOFY sales by luring customers in with "sale" prices. Commentators suggest that a V-shaped recovery that was initially hoped for (where economies bounce-back to pre-Crisis levels quite quickly) is now unlikely to happen because the return of consumer demand will be slower than initially thought.
In Australia, should the financial assistance schemes be stopped or wound back this may further prolong the recovery period. We are witnessing businesses now looking to restructure to cope with lower work volumes.
We applaud the response from members who have made a priority to safeguard the well being of staff - not just as an employer and community interest responsibility, but as a sound business practice for when trade volumes return..China - Update Our sources from China have provided us with the following updates - As at June 1 there were 14 confirmed local COVID-19 cases in 7 cities. There are 63 quarantined traveller cases in Mainland China. 43 cases in Hong Kong and 12 in Taiwan.
- According to the WTO trade statistics and outlook report for April 2020 the predictions are that global merchandise trading could reduce anywhere between 13% - 32% in 2020, with suggestions that under the right circumstances could bounce back 24% in 2021
- Based on a China Daily report of June 1, manufacturing activity in China sustained a steady recovery in May with the rally in domestic demand gathering pace. Analysts expected the manufacturing sector to continue to pick up over the coming months, but cautioned about the uncertainty over external demand and the pressure on employment. China's purchasing managers index for the manufacturing sector came in at 50.6 in May. It is third consecutive month for the index to stand above 50, the dividing line between expansion and contraction, after the plunge in February due to the COVID-19 outbreak.
- Xinhua press reported on May 30, that as of May 23, 98.4 percent of transport enterprises had resumed operation, according to Sun Wenjian, spokesperson at the Ministry of Transport. Freight volume had begun to increase year on year. Official data showed that logistics demand in China improved in April as economic activities recovered following easing epidemic containment measures. According to the Ministry, in the middle 10 days of May, the country's cargo throughput at ports and export cargo throughput both increased from one year ago, with that of container throughput close to last year's level, according to the ministry.
- According to Chinese Customs Announcement No. 69, effective June 1, if the importer or agent do not request Iron Ore Quality Certificates, Customs will release the imports once physical inspection has been done without further Lab testing. This new procedure will reduce the Customs clearance processing and time for importers.
- Yang Ming and Evergreen get support from Taiwan's Ministry of Transport through a T$30 bullion aid package. Support had previously been supplied to China Airlines and EVA Airways.
- According to Ministry of Transport of the PRC, effective June 1, China will tight restriction with overweight shipments and shippers will be the liable party for this restrictions.
Seafreight commentary
Shipping lines continue to advise that current capacity is solid, albeit with managed capacity, and is expected to remain so for the rest of June. As for what July will bring time will tell - some lines we have spoken with suggest volumes will remain steady with some small troughs. Much will depend on consumer confidence in a future where so much is still unknown.
Members have also been reporting issues with cargo being rolled and delayed, whilst reduced capacity may have some impact here, most of the lines we addressed this with suggested that vessels missing connections due to weather was a contributing factor. The recent bad weather on both the east and west coasts of Australia may see some further disruption when these vessels return to their load / transship ports for their next south bound voyages. In cases of rolled cargoes these were usually picked up on the next sailing.
Being aware of what to expect will assist shipping lines in supplying the capacity needed to maintain efficient service levels. It is crucial that lines of communication between exporters / importers / forwarders and shipping lines need to flow freely. The lines advise there is vessel capacity available but knowing when to bring that on line is based solely on the knowledge of expected bookings.
Global Shippers Forum (GSF)
FTA / APSA are a member of the GSF and have board representation through Paul Zalai (co-founder and director of FTA). The May newsletter addresses a number of topics that members may find of interest in the current environment.
"The media is awash with forecasts on how the world will look after the Covid Crisis. Many will prove to be over-gloomy there is no doubt that global trade and logistics will be in a different place compared to the beginning of the year. Back then our biggest worry was the price of low-sulphur fuel oil. By mid-year the main questions shippers asked by shippers will be "Will my traditional customers/suppliers still be in business? And is the shipping line or airline I use still operating the services I need at a price I am prepared to pay?"
"Digitisation of supply chains is an overdue and obvious response to the risk of future business interruption for carriers, forwarders, ports and even Customs and border enforcement agencies. Expect this to feature in many service providers' plans"
To view the newsletter in full please click HERE
Economic Update 
"Economies across the world continue the re-opening process, which has triggered optimism and inspired markets to rally strongly. The 'V Shaped' recovery is on but with caveats. The threats to the recovery are many and headlined by a second wave of the virus, which could be more likely in the USA, after the massive protests across many of their cities."
"It is hard to see the rally continue unabated, while these pressures build and stocks remain over-bought and inflated"
- See the full daily update HERE // see weekly update HERE
Please view a presentation a presentation by Collinson Forex on 30 January 2020 showcasing latest technology solutions – refer HERE
Airfreight Update
Whether it be through the IFAM scheme, respective State government support or Freigt Forwarders just working together to arrange space and flights for exporters . importers we are certainly seeing an increase in both charter and ghost passenger flights to support cargo needs. In case you have missed them check these out
* Space ex Toowoomba (Wellcamp Airport) to HKG
* Space LAX into BNE & MEL
* Space from Hobart to Sydney
If you want to keep abreast of space available or post a requirement for space review the FTA COVID- 19 Air Cargo bulletin board to advertise your space availability or needs.
* IATA - Air Cargo action
* IATA - Government measure related to COVID-19 - search country specifics
UPCOMING WEBINARS - How to stay Strong and Sane during COVID-19 - Thursday June 4 1600 hrs (AEST) - REGISTER HERE
and in case you missed it listen to the recording of " Abandoned Goods, detention and forwarder liability" - presentation by Russell Wiese - click HERE for recording AND HERE for PDF of slides
Business Operations
Statements from Senator the Hon. Michaelia Cash
* National Cabinet to drive recovery - 29 May
* COVID-19 UPDATE - May 18
* Commentary on the Treasurer's statement ion the economy - May 12
* Roadmap to a COVID safe Australia - May 8
* COVIDSafe APP
* Assistance available to Small Businesses ( with state links )
* Supporting businesses to retain jobs - Jobkeeker payment
Transport & Port Updates
Transport for NSW
Victoria - Department of Transport - June 1 UPDATE
Port of Melbourne - Response to COVID-19 – Update 6
Queensland - COVID-19 freight & export market update bulletins
CTAA COVID-19 Emergency Space Register
Freight & Logistics Council of WA - COVID -19 web site
WCO updates
* WCO partners with stakeholders to launch a COVID-19 Trade Facilitation Repository
The repository acts as a platform that consolidates the initiatives on trade facilitation adopted by organizations and stakeholders, seeking to provide access to these resources in a unique and user-friendly database. It contains a useful listing of all such initiatives broken down by organization, type of measure and subject matter. As the situation evolves and further actions are taken, the platform will be expanded to include other key actors working in the area of trade facilitation. to read the full article click HERE to visit the Repository click HERE
* WHO/WCO list of priority medicines & Updated HS classification list for
COVID-19 medical supplies - see HERE
* Joint WCO-IMO statement on the integrity of the global supply chain
during the COVID-19 pandemic
New COVID-19 Workplace Health & Safety guidance available
The Safe Work Australia website has been updated to provide a central hub of work health and safety (WHS) guidance and tools to help Australian workplaces manage the health and safety risks posed by COVID-19. The site allows you to select your status, industry and what you need information on. There are some 1300 different web pages addressing some 23 different industry sectors. Click HERE for more
Ensuring Employee Health & Communications during Crisis Management
Every one of our clients is wrestling with managing a largely remote employee workforce in the middle of the COVID-19 outbreak. Providing basic safety and security information about your teams to management, and allowing management to easily communicate with their employees working from home has become more important than ever before. And the need is immediate and now. read full article HERE
Workplace Relations 
Are you Workplace Ready?
Employsure has launched a new service to tackle COVID-19 risks. Workplace safety has never been more important in the era of COVID-19 and it can be confusing and hard to navigate. If you need assistance navigating the various codes, regulations and laws click HERE or contact Lee Senft on 0401 004 295
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 including the new JobKeeper HELP product refer fact sheets below - for more on how to access this offer please contact Lee Senft or call 1300 651 415
JobKeeper HELP
Fact Sheet
Please note the below links for up dated information
FURTHER 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.
WORKING TOWARDS A POSITIVE OUTCOME!
John Park - Head of Business Operations, FTA / APSA |
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