Board chaired by Mr Michael Outram OAM SUPPLY CHAIN COVID-19 STATUS REPORT - MAY 2020 (ABF Commissioner). FTA / APSA position remains that a Through these forums, I will work statutory monitoring process to oversee collaboratively with government and further price increases of stevedore- industry leaders to make a positive imposed Infrastructure Surcharges is not Advocacy response by Freight & Trade contribution to a trade modernisation the answer. Existing prices are already agenda, including a renewed focus on a excessive. Incremental increases on this Alliance (FTA) and the Australian Peak “Bio-secure border”. Trade digitisation and base would continue the devastating automation, cargo tracking, cost recovery impacts on Australian trade. Our regulators need to protect shippers by and service performance measurement will forcing stevedores to cease this practice. undoubtedly be at the forefront of reforms. Shippers Association (APSA) 28 February 2020 Stevedores should be given appropriate SHIPPING Discussion Paper - Proposed Class notice to allow negotiations of charges with Exemption for Ocean Liner Shipping By PAUL ZALAI, Director & Co-Founder FTA, Secretariat, APSA FTA / APSA notes a commentary in shipping lines. FTA / APSA will continue Submission to the Australian Competition & Consumer Commission (ACCC) on behalf advocacy for this outcome that would The Loadstar, in which the CEO of of Freight & Trade Alliance (FTA) and the Australian Peak Shippers Associations allow market forces to take effect. An open SeaIntelligence Consulting declared that and competitive environment will determine during the COVID-19 crisis, the shipping Exporters, importers, freight forwarders and customs brokers will need to facilitate trade to help Australia appropriate price for services without the industry had entered “a new competitive need for further government monitoring or recover from the economic damage that local and international lockdowns have caused. Importantly, the landscape” in which the era of “all savings intervention. Australian federal and state governments will need to collaborate with industry to establish and agree a and more” being passed on to shippers FINAL SAY recovery agenda that prioritises investments, programmes and strategies that facilitate shippers’ activities. was over. He added: “In the three months impacted by the virus, demand has A continued focus of the FTA / APSA dropped, in some cases 20%-30%, and advocacy will be for a paradigm shift in The following commentary traces the aircraft. The bulletin board service and Import Processing Charges on the oil price has dropped 60%-70%, yet priorities in favour of shippers. It is the FTA/APSA phase 1 COVID-19 crisis expanded over time with utilisation by behalf of importers. These significant Surcharges has resulted in supply chain freight rates are unchanged.” “This is a efficient movement of goods that will lead management activities (March to May airlines and government as the primary disbursements distort true operating costs rapidly increasing, exposing very clear example of what you can do our economic recovery and generate 2020) and looks ahead at the phase 2 central portal of air cargo information. performance and take many small and significant deficiencies in the effectiveness when you have a much more consolidated national wealth, not the welfare of carriers trade recovery in the coming months and medium businesses over the $50 million of existing competition law in being able More was needed to complement industry”. or infrastructure owners. We look forward years. these initiatives, that led to FTA/APSA turnover threshold outlined for the to achieve basic shipper protections. In to government respecting and prioritising advocating for Federal Government eligibility for Cash Flow Boost (and also It may well reflect a mood in the shipping response, FTA / APSA provided a detailed the needs of exporters and importers as funding to support traders of perishable jeopardising some members’ eligibility to industry, bolstered by the renewal of the submission to the Australian Competition well key service providers to the sector COVID-19 PHASE 1 - CRISIS goods reliant on air cargo to export to JobKeeper). EU Consortia Block Exemption Regulation and Consumer Commission (ACCC), such as freight forwarders and customs MANAGEMENT (CBER), that higher rates (or as they call it including 9 recommendations for reform, brokers. global markets. On the evening of 31 After extensive engagement with ATO ‘price stability’) are available in the future. in response to the discussion paper ESSENTIAL SERVICES March 2020, contact was made by the executives, we received formal advice on advisor to the Senator the Hon Simon Proposed Class Exemption for Ocean Liner If you cast your mind back to early 11 May 2020 that the statutory import In an Australian context, shipping line Birmingham (Minister for Trade, Tourism Shipping – the submission is featured on March, we heard about the potential of charges that are passed on as an “agent” market consolidation plus the emergence and Investment) who advised FTA/APSA of stevedore-imposed Infrastructure the FTA/ APSA web site’s home page. a “lockdown”. This was of significant are not deemed as a supply made by the that $110m in airfreight support initiatives concern as we did not know what it freight forwarder / customs brokerage meant in real terms. was to be provided to keep supply lines open for airfreight during the COVID-19 and is not included in turnover. The FTA / APSA quickly commenced a crisis. result being eligibility for many members FTA / APSA media coverage during COVID-19 Phase 1 Crisis Management (Feb to May 2020) comprehensive campaign with ministers providing a level of welcomed financial and government departments advocating CASH FLOW relief. 12 May 2020 MHD Supply Chain News - Air cargo dominating passenger aircrafts for the entire international supply chain, The economic crisis translated to delays MEDIA including all parties from the importer and in payments of services throughout the 11 May 2020 Australian Financial Review - Ghost flights keep airport spirits alive exporter through to the border (specific Complementing use of our webinars, supply chain. Focus turned to the need 7 May 2020 Australian Financial Review - Hutchison seeks $13,000 pay cuts for wharfies reference to freight forwarders and to make up front payments of statutory daily notices and weekly report, FTA customs brokers) be treated as essential import charges before goods can be / APSA commenced a regular (initially 6 May 2020 Daily Cargo News – Constance seeks pre-selection for Eden-Monaro weekly) CORONAVIRUS TRADE REPORT services. Furthermore, in an environment released from customs’ control and the 1 May 2020 MHD Supply Chain News - $125m Port of Melbourne rail project on track whereby our population was required to potential threat of congestion at our collating intelligence and commentaries “self-isolate”, we highlighted that “last- airports, ports and depots. from local / overseas members and 27 April 2020 Daily Cargo News - Minister disappointed by higher stevedore fees mile” deliveries by couriers and Australia As a direct result of FTA / APSA affiliations. Advice received from the 24 April 2020 MHD Supply Chain News - Minister supports alliance’s concerns of increased port fees Post, facilitated through e-commerce, advocacy to Treasury, the Australian office of the Deputy Prime Minister is that 23 April 2020 The Import / Export Show – interview with Paul Zalai would need to play an essential role. Border Force (ABF) and the Australian government regards this report as the Our approach was recognised in the Taxation Office (ATO), the Deferred most accurate and detailed reference 21 April 2020 MHD Supply Chain News - Alliance welcomes new head of border and biosecurity GST arrangement was streamlined to source, a sentiment echoed by members Transport and Infrastructure Council 21 April 2020 Daily Cargo News - Constance calls for restraint on stevedoring charges Communiqué endorsed by all National, turnaround applications (from up to 30 and other industry stakeholders. State and Territory Transport Ministers on days down to as little as 3/4 days) with FTA / APSA has also been at the forefront 21 April 2020 ATN - Pressure mounts on stevedores over container access charging significant uptake by importers prior to 25 March 2020 that affirmed the critical of trade and mainstream media providing 17 April 2020 ATN - Shift in import compliance approach as container chaos looms role of trade and logistics. the 30 April quarter cut-off. The ABF also detailed commentaries on key issues 16 April 2020 Daily Cargo News - Container shortage fears with shipping lines predicted to cut services developed solutions for duty deferral aligned to advocacy strategies: AIR FREIGHT (beyond the existing Australian Trusted 8 April 2020 Australian Financial Review - Importers seek relief from port charges squeeze Once we had a level of comfort that our Trader arrangements) to be deployed on members would be able to maintain a needs’ basis. 31 March 2020 The Age - Unacceptable: Minister slams DP World’s plan to hike import fees COVID PHASE 2 – TRADE RECOVERY business continuity, our attention turned In parallel, FTA / APSA wrote to the 31 March 2020 The Loadstar - More anger in Australia as DP World announces higher terminal access to airfreight. FTA engaged with airlines, BORDER AND BIOSECURITY Commissioner of Taxation on 20 April cargo terminal operators and freight 17 March 2020 MHD Supply Chain News - Toll reaches an agreement with its Webb Dock employees 2020 requesting a determination In recognition of FTA / APSA status as forwarders to support the sector that was under subparagraph 5(1)(d)(ii) of the the peak industry body representing 9 March 2020 ABC News – television coverage / interview with John Park being decimated with passenger flights Boosting Cash Flow for Employers shippers’ interests, I have been privileged 6 March 2020 Australian Financial Review - Virus is the “GFC for transport”, truckies say rapidly winding up. (Coronavirus Economic Response to be recently appointed to two executive FTA / APSA established a COVID-19 AIR Package) Act 2020 noting that many boards: Biosecurity Futures chaired by 4 March 2020 The Loadstar – Australia’s China-dependent economy starts to feel the effect of the virus CARGO BULLETIN BOARD to support freight forwarder / customs brokerages the Hon David Littleproud (Minister for 28 February 2020 MHD Supply Chain News - Coronavirus crisis leaving global supply chain in limbo forwarders to build capacity to charter make large payments of Duty, GST Agriculture); and the Customs Advisory