Rohlig Market Summary

Rohlig Market Summary

This month sees carriers announcing increases on the Southbound Asia to Oceania trade, as they attempt to create more sustainable rate levels. “Although rate increases have been announced, we are seeing market rates continuing to slide. We believe most carriers will not proceed with the full increase but a smaller increase”, says Martin Fernandes, Rohlig Australia’s National Procurement Manager. “These increases were expected due to the reductions last month on most Asian south-bound trade lanes”.

Peak season historically begins in August and rate levels will increase into the Chinese Golden Week Holidays beginning in October. We encourage all customers to begin forecasting now and pre-book as far out as possible.

We are currently seeing trucking fuel rates decreasing and are pleased to confirm the following:

  • National fuel charge on delivery for  LCL & Air will be reduced, effective 15th July 2015  

*Please note that the National Fuel Charge may change at any time. Rohlig will endeavour to notify our customers of any changes as soon as possible.

 

 

China Australia FTA signed. But what does it mean for Importers and Exporters?

China Australia FTA signed. But what does it mean for Importers and Exporters?

On 17 June 2015, Australia signed a landmark Free Trade Agreement with China, our largest trading partner, with total trade worth almost $160 billion in 2013-14, and a growing source of investment.

The China-Australia Free Trade Agreement (ChAFTA) will lock in existing trade and provide the catalyst for future growth across a range of areas including goods, services and investment.

The Agreement secures better market access for Australia to the world’s second largest economy, improves our competitive position in a rapidly growing market, promotes increased two-way investment and reduces import costs. It is a win for both households and businesses.

On day one of the ChAFTA, more than 85 per cent of Australian goods exports will be tariff free, rising to 95 per cent on full implementation.

We explore the Pros and cons of ChAFTA below.

Potential benefits for Australia:

  • Consumers may see cheaper prices with the 5 per cent tariff on Chinese manufactured products, such as electronics and whitegoods, phased out
  • Tariffs on various Australian commodities (including coal and alumina) and gemstones of between 3-10 per cent eliminated either immediately or within between two and four years
  • Tariffs of between 3-14 per cent on various Australian manufactured exports eliminated within four years
  • Tariffs of up to 30 per cent for beef, dairy, sheep, pork, live animals, hides, skins and leather, horticulture, wine and seafood to be eliminated within 2-9 years
  • Tariff reductions or elimination for some processed foods including canned fruit, orange juice, and natural honey
  • Guarantee that Australian tourism and hospitality operators can operate wholly-owned subsidiaries in China, including hotels and restaurants
  • China will permit Australian firms to establish profit-making aged care institutions throughout China, and wholly Australian-owned hospitals in certain provinces
  • Australian businesses allowed to take a majority stake in joint ventures which provide services in agriculture, forestry, hunting and fishing in China
  • Improved access to partnerships with Chinese firms for legal and financial services in China, but 49 per cent Australian ownership limit on financial services joint-ventures
  • Foreign Investment Review Board (FIRB) will continue to screen all investment by Chinese state-owned enterprises
  • Australian firms will have some rights to sue Chinese governments for policy changes that adversely affect their interests

Potential negatives for Australia

  • No tariff reductions for sugar, rice, wool, cotton, wheat, maize or canola
  • If Chinese imports of beef or milk powders exceed certain limits, China has the discretion to apply additional customs duties
  • Threshold for Foreign Investment Review Board screening of Chinese investments in "non-sensitive sectors" (i.e. excludes agriculture, media, telecoms and defence) rises from $252 million to $1,094 million
  • Chinese firms will have some rights to sue Australian governments for policy changes that adversely affect their interests
  • Chinese investors in projects valued over $150 million will receive additional rights to bring in temporary migrant workers to Australia without local labour market testing

For additional information click here.

Rohlig Australia expands service offering with 3PL in Melbourne

Rohlig Australia expands service offering with 3PL in Melbourne

New Rohlig Melbourne warehouse

Excitement is building in Melbourne as we prepare to expand operations with the opening of a new branch office and warehouse in June. The Melbourne branch will move to Truganina, 21kms west of Melbourne's Central Business District, with access to main arterial roads, freeways and customer distribution centres.

The purpose built 9,000sqm facility contains 8000sqm of warehouse space with state of the art 3PL offering, customs and quarantine approved bond, 40m wide hard-stand, 4 recessed docks, 4 on-grade docks, 15m canopy, container packing and unpacking services. Our team will also relocate to a tech enabled office incorporating the latest office design concepts.

Rohlig Australia’s Managing Director, Hany Amer said, “the Truganina facility represents the first step in our national growth strategy and fulfils our client facing commitment to “Expand our Service portfolio”. We will now offer clients a greater number of services, giving them more choice and improving the “ease of doing business” with us.

Please view the video link below for an exclusive look at Rohlig’s new warehouse space and office.

https://vimeo.com/126991707

Important Information on ChAFTA Customs and Compliance

Important Information on ChAFTA Customs and Compliance

Author Article:

Katherine Munoz , Customs and National Trade Consulting Manager, Rohlig Australia

3rd July 2015

Although there still is no official  “into force date” for ChAFTA, we can expect it to take 6-8 months to come into full force.  Of particular importance is the requirement for a Certificate of Origin in order to claim ChAFTA.

A Certificate of Origin is an export document that verifies the country of growth, production or manufacture of the goods specified and is officially required by the customs authorities of many countries. In addition, the document is often requested by buyers to satisfy that products they are importing are wholly obtained, produced or manufactured in a particular country.

In order to take advantage of ChAFTA, the following requirements must be met:

  1. A Certificate of Origin must be produced
  2. A certificate of origin must be issued by an Authorised body in China. This will come with a fee and may cause delays to clearance in Australia if not readily available.
  3. If unable to provide a certificate of origin, an origin declaration can be supplied by the Exporters or Producers however it must also be supported with an Australian customs origin ruling. Origin rulings in Australia can take several weeks to process and will attract nominal fees. Origin rulings can only be issued by Australian Customs and Border Control. 
  4. There are no allowances for blanket declarations. All ChAFTA claims must be lodged on a shipment by shipment basis as per the agreement.

Claiming ChAFTA will not be easy, nor should it be to ensure legitimacy and compliance.   For some importers, the ongoing compliance costs just to claim free trade under ChAFTA may not be worth the time and effort. Importers are better off looking at writing New Tariff Concession Orders for their goods as this attracts a one off fee and once approved, can be used for every shipment without further compliance issues.

 

For additional advice on ChAFTA Customs and compliance, please contact your local Rohlig Customs Broker.

Add security to your supply chain with Smart Kit Tracking

Add security to your supply chain with Smart Kit Tracking

SmartKit Sea Freight and Air Freight devices

Even the best laid plans of smart traders can be undermined by the damage, loss, and claims of sea and air transport.

Not only do damage, loss, and claims increase your overall transportation costs, they can also drive a wedge between you and your logistics partners. Fortunately, there are steps that can be taken to reduce these risks.

Rohlig Australia can assist in reducing supply chain risk and increasing security with SmartKIT, a user-friendly device that enables monitoring of your goods in real time, during sea and air freight transportation.

SmartKit is intelligent and portable, and effectively monitors both the location of your goods as well as the environmental conditions affecting your goods - before, during and after  transportation.

SmartKit information is available via web 24/7 and is fully customizable via triggers and alarms which can be pre-set before shipment or changed while in transit.

Smart Kit benefits

  • Continuous tracking of cargo for peace of mind and protection
  • Surveillance of itinerary and cargo for added security
  • Surveillance of environmental limits keeping your cargo in saleable condition
  • Control centre visibility and customizable alerts increasing your efficiency
  • Faster  customs  processing  saving you time and reducing costs
  • Ability to reduce your insurance premium

Rohlig offers two types of SmartKit devices covering both your air and sea transportation needs.

SmartKit’s Air Solution is accepted by over 33 airlines for carriage in your Cargo consignments. When the device is loaded onto an aircraft it stops transmissions in order to comply with aviation legislation but continues to monitor and record sensor based data.

SmartKit’s Sea Freight solution is mounted on the door inside of dry and reefer containers. In five minutes your container is ready to go with the data and tracking accessible on the website.

For more information on how Rohlig’s SmartKit solution can increase your supply chain security, please speak with your local Account Manager.

Rohlig Australia gets a sneak peek of Audi’s new Q7

Rohlig Australia gets a sneak peek of Audi’s new Q7

Last week a team from Rohlig Australia’s Sydney branch managed the shipment of nine brand new, powerful Audi Q7’s for delivery to a promotional launch of the new Q7 model in Sydney.

Audi AG set Rohlig the tough task to turnaround this delivery in just 3 days! With this tight timeframe in mind the Rohig team chartered an EK 777 freighter which enabled same day delivery on arrival. Nine supersized 20 foot main deck pallets were used to roll the “Das Auto’s” on and off the aircraft.

Rohlig Australia’s Forwarding Manager, Brett Smith said “The speed and precision of the shipment from start to finish shows the depth of talent we have in the Rohlig network, and our ability to handle special, high-value, time sensitive movements for our customers”.

“Rohlig Australia worked closely with our colleagues in Germany to keep the “wheels moving” on these Audi Q7’s. From the factory to the Airport, in the Air, and here in Australia. By doing this, we were able to meet our deadline.”

Audi AG were extremely satisfied with the Rohlig service, all Audi Q7’s were delivered safely and efficiently, within the deadline and ready for the promotional show launch of the brand new Audi’s.

 

 

Audi Q7's unloading from the aircraft with the Rohlig team onsite managing the delivery.
 

Light at the end of the tunnel for Inland Rail

Light at the end of the tunnel for Inland Rail

The long-awaited inland rail project could see the light of day sooner rather than later.

The Melbourne to Brisbane Inland Rail Project was the focus of discussion at Australian Logistics Council’s (ALC) recent Logistics Industry Parliamentary Function.

“Inland rail is critical to Australia’s freight future and will be a transformative project for generations to come,” said Michael Kilgariff, ALC Managing Director.

Mr Kilgariff commended the Government for the allocation of $300 million to make a start on this project, and the work being undertaken by the Australian Rail Track Corporation (ARTC) to develop the delivery program and to undertake detailed planning.

The rail freight link between Port of Melbourne and Port of Brisbane will help support improved supply chain efficiency in the movement of freight around the country. Trains are inherently more efficient than trucks. There's a place for both rail and road, but the efficiencies of rail for heavy freight over longer distances are second to none.   

This rail infrastructure could remove around 100,000 truck movements between Brisbane and Melbourne, including shorter movements in between providing increased safety, reliability and efficiency.

When completed, the 1700km route will connect Melbourne and Brisbane via Wagga, Parkes, Moree and Toowoomba.

A typical train travelling on Inland Rail will have the capacity of 108 B-Doubles and will complete the journey from Melbourne to Brisbane in less than 24 hours.

Further information on Inland Rail is available here.

General Rate Increases (GRI)

General Rate Increases (GRI)

North East Asia to Australia

Effective 1 July 2015, carriers have increased rates for cargo with origins in Korea, China, Taiwan and Hong Kong to ports in Australia by the following:

  • USD $300 per TEU

 

 

June Global Economic report

June Global Economic report

See attached pdf for details.

 

We appreciate your support and look forward to continuing to service your logistics needs.  Should you have any questions please feel free to contact your Rohlig Australia Account Manager or Customer Service Representative.

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