Monthly Archives: December 2014

OPINION: Is container detention going to spoil the festive season?

Dear Valued Customers,

Further to our previous notices to customers on container detention please read the below opinion piece written by Paul Zalia.
It seems that container detention policies are not just a mechanism to ensure timely return of empty containers but have formed an important revenue stream for shipping lines in a tough operating environment.
Shipping lines are continuing to tighten the reigns, reducing detention-free days for the return of empty containers and showing little leniency in deviating from fixed policies.

This is placing additional pressure on transport operators to collect containers from stevedores on the first day of “availability” – an extremely difficult task with limited vehicle booking system (VBS) slots.

Compounding matters, empty container parks contracted by shipping lines operate restricted hours, generally on a Monday to Friday basis, forcing transport operators at additional expense to stage container returns.

Some shipping lines are forcing empty containers to be dehired back to the terminal and bypassing the empty container parks altogether.

A nice cost saving for the shipping lines by avoiding the use of a contracted empty container park.
However this comes at additional costs to the transport operator with PRA booking fees and the like.

Then we witnessed the latest stunt by a shipping line winding up their Australian operations and introducing a container deposit fee for their last remaining voyages.

This entails an advance payment by the consignee, and at the discretion of the shipping line, a refund payable on container dehire.

We certainly hope that other shipping lines do not follow this lead of holding consignees at ransom.
What about other factors out of the control of the consignee affecting delays?

We have ongoing issues with rail providers and stevedores at Port Botany pointing the finger at each other for delays and all are wiping their hands of covering the container detention costs.
Perhaps this is just another cost of doing business but is not a good advertisement for the use of rail which is meant to be the great hope in dealing with future growth in trade volumes.
Just to add a bit more spice, we have the re-emergence of industrial action.

Will shipping lines provide extra days for container detention or will they stick to their rigid policies?

My guess is that that they will say that they will assess situations on a “case by case” basis … good luck with that!

Why don’t the shipping lines come out and say that in these extreme circumstances that they will show leniency?

Then there is our old favourite of the Christmas / new year period with a series of public holidays when most empty container parks are closed.

From Christmas eve (traditional early finish) to Monday January 5 when some companies resume work, there are 12 calendar days but only four working days when empty parks are open (half day Christmas eve and new year’s eve).

Hence there are eight days in this upcoming period when it may be impossible to dehire.

Congratulations to Maersk Line for extending container detention rules during this period.

Will other shipping lines follow this lead or are they banking on a windfall at the expense of their valued clients?

Please share your views.
Paul Zalai – advocate for the Australian freight & trade sectors

Kind Regards
SILA Customer Service

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DP World Australia – Industrial action update: Brisbane now affected

Dear Valued Customer,

DP World Australia advised that they will appear before the Fair Work Commission via teleconference with the Maritime Union of Australia (MUA) on Monday, 15 December to set the framework for conciliation on the 2014 Enterprise Agreement.

Meanwhile, the MUA has notified DP World Australia of a fresh round of protected action.

The MUA will lead protected action in Brisbane on Wednesday, 17 December from 7am to Thursday, 18 December at 7am.
DP World Australia will take employer response action on 18 December from 7am until 3pm in Brisbane.

In Melbourne, the MUA will lead protected action on Wednesday, 17 December from 12:30pm until 4:30pm, affecting two shifts. DP World Australia will take employer response action from 6:30am until 10:30pm, effectively locking out employees for the duration.

DP World has been very clear from the outset of our negotiations with the MUA and elected employee representatives that any protected action would be met with employer response action.

This action is occurring at a very busy time and will cause significant schedule disruption leading up to the Christmas period.

DP World will work closely with the operators of affected vessels and will explore all options in an effort to mitigate delays.

The updated times for protected and employer response action are outlined below.

Brisbane
Operations will cease at 7am on Wednesday, 17 December and resume at 3pm on Thursday, 18 December.

MUA action

• Wed 17 Dec 7am – Thurs 18 Dec 7am (3 x 8 hour stoppages)
DP World Australia lock out in response
• Thurs 18 Dec 7am – 3pm

Melbourne
Operations ceased at 6:30am on Thursday, December 11 and will resume at 2:30pm on Friday, December 12.
Operations will cease again at 6:30am Wednesday, December 17 and resume at 10:30pm the same day.

MUA action

• Thurs 11 Dec 6:30am – Fri 12 Dec 6:30am (3 x 8 hour stoppages)
• Thurs 11 Dec 6:30am – Thurs 18 Dec 6:30am (7 day bans on overtime and shift extensions)
• Wed 12 Dec 12:30pm – 4:30 pm (coverage over two shifts)
DP World Australia lock out in response this week
• Fri 12 Dec 6:30am – Fri 12 Dec 2:30pm
DP World Australia lock out in response next week
• Wed 17 Dec 6:30am – 10:30 pm

Sydney
Operations ceased at 10am on Thursday, December 11 and resumed at 6am on Friday, December 12.
Operations will cease again at 10am on Monday, December 15 and resume at 6am on Tuesday, December 16.

MUA action this week

• Thurs 11 December 10am – 2pm, 6pm – 10pm
• Fri 12 December 2am – 6am (3 x 4 hour stoppages)
• Fri 12 Dec 6:00am – Sat 13 Dec 7.00am (bans on shift extensions)
• Fri 12 Dec 6:00am – Sat 13 Dec 6.00am (bans on overtime)
DP World Australia lock out in response this week
• Thurs 11 Dec 10am – Fri 12 Dec 6am

MUA action next week

• Mon 15 December 10am – 2pm, 6pm – 10pm
• Tue 16 December 2am – 6am (3 x 4 hour stoppages)
DP World Australia lock out in response next week
• Mon 15 Dec 10am – Tues 16 Dec 6am

If you have any questions regarding above matter, please contact our customer service team logistics@silogisticsaustralia.com or Ph 1300 084 846.

Thank you & Kind Regards,
SILA Customer Service Team

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Update: DP World Australia response to protected Action – MUA Stoppage

Dear Valued Clients,

Please see below update from DP World in regards to the ongoing MUA Dispute.
This week the Maritime Union of Australia (MUA) is embarking on a round of industrial action in support of their claims for the 2014 Enterprise Agreement.
Since we were last in contact, the MUA has notified us of additional protected action in Sydney next week.

The MUA will lead a stop work in Sydney over 12 hours – on Monday 15 December from 10am – 2pm and 6pm – 10pm and on Tuesday 16 December from 2am – 6am.
In response, we will close the terminal from 10am on Monday 15 December to 6am on Tuesday 16 December.

We have been very clear from the outset of our negotiations with the MUA and elected representatives that any protected action would be met with employer response action, and this is what we intend to do.
This action is occurring at a very busy time and will cause significant schedule disruption leading up to the Christmas period.

We will work closely with the operators of affected vessels and will explore all options in an effort to mitigate delays.
We are disappointed that we have been unable to reach a resolution with the MUA.

We are awaiting a decision from the MUA on Enterprise Agreement Offer Eight. If they decline the offer, or fail to respond, we will be lodging an application for assistance to the Fair Work Commission first thing tomorrow morning.
The updated times for protected and employer response action are outlined below.

Sydney
Operations will cease at 1000 hours on Thursday, December 11 and resume at 0600 hours on Friday, December 12.

Operations will cease at 1000 hours on Monday, December 15 and resume at 0600 hours on Tuesday, December 16.

MUA action this week

• Thurs 11 December 10am – 2pm, 6pm – 10pm
• Fri 12 December 2am – 6am (3 x 4 hour stoppages)
• Fri 12 Dec 6:00am – Sat 13 Dec 7.00am (bans on shift extensions)
• Fri 12 Dec 6:00am – Sat 13 Dec 6.00am (bans on overtime)
Lock out in response this week
• Thurs 11 Dec 10am – Fri 12 Dec 6am

MUA action next week

• Mon 15 December 10am – 2pm, 6pm – 10pm
• Tue 16 December 2am – 6am (3 x 4 hour stoppages)
Lock out in response next week
• Mon 15 Dec 10am – Tues 16 Dec 6am

Melbourne
Operations will cease at 0630 hours on Thursday, December 11 and resume at 1430 hours on Friday, December 12.

MUA action

• Thurs 11 Dec 6:30am – Fri 12 Dec 6:30am (3 x 8 hour stoppages)
• Thurs 11 Dec 6:30am – Thurs 18 Dec 6:30am (7 day bans on overtime and shift extensions)
Lock out in response
• Fri 12 Dec 6:30am – Fri 12 Dec 2:30pm

Fremantle

MUA action

• Fri 12 Dec 12 noon – 4pm
• Fri 12 Dec – indefinite (bans on overtime and shift extensions)

Brisbane

Nil action
Kind Regards
SILA Customer Service

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Duty Rate Reduction

SILA would like to remind clients that a planned duty rate reduction on 01 January 2015 will take effect for imports of the following products:

• Bed linens
• Terry towels
• Garments
• Curtains

Effective 1st January, 2015 rates for respective shipments will be reduced from 10% to 5%. All other commodities currently subject to 5% Duty will not be effected. Only customs declarations lodged on or after the 1st January, 2015 will incur the reductions and for all import declarations prior to that date the current rates will apply.
Should you have any questions please do not hesitate to contact the SILA Team .
Best regards,
SILA Customer Service

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Patrick Terminal Brisbane – MUA Stop Work Meeting Wednesday, 17 December 2014.

Dear Clients,
Please note SILA has received advise of another Stop Work Meeting. This will effect Patricks Brisbane Terminal Next week.

Notice as provided to us below.

From: noreply@1-stop.biz [mailto:noreply@1-stop.biz]
Sent: Thursday, 11 December 2014 9:31 AM
Subject: [PATRICK TERMINAL – PTFIT] MUA Stop Work Meeting Wednesday, 17 December 2014.

Issue: MUA Stop Work Meeting Wednesday, 17 December 2014
Short Description: Please be advised the MUA will be holding a stop work meeting Wednesday, 17 December 2014 between the hours 1400 – 1600. No Trucks will be processed after 1300. Gates will open again at 1600.

Issue Impact: Please be advised the MUA will be holding a stop work meeting Wednesday, 17 December 2014 between the hours 1400 – 1600. No Trucks will be processed after 1300. Gates will open again at 1600.

Priority: Urgent

Notification Date: 11/12/2014 09:29

Current for: 7 Day(s)

Regards,
Lyle Higgs
PATRICK TERMINAL
Patrick Fisherman Is T10

Kind Regards
SILA Customer Service

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DP World Australia – MUA Industrial Action:Sydney Update

Dear Valued Customer,

As an escalation in the round of industrial action being undertaken by the Maritime Union of Australia (MUA) in support of thier Enterprise Agreement claims, DP World regrets to advise that they have been notified that further action will be taken in Port Botany on Monday December 15th.

Operations will cease at 1000 hours and will resume at 0600 hours on Tuesday December 16th.

DP World regrets this further disruption and DP World will explore all opportunities to mitigate its impact.

If you have any questions regarding above matter, please contact our customer service team logistics@silogisticsaustralia.com or Ph 1300 084 846.

Thank you & Kind Regards,
Customer Service Team
SILA

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Korea Australia Free Trade Agreement (KAFTA) entry into force 12 December 2014

Dear Clients, We wish to bring to your attention the entry into force of KAFTA from 12 December.

Dear Clients, We wish to bring to your attention the entry into force of KAFTA from 12 December.

Information as provided by Customs can be found below and here.

Korea
The Korea-Australia Free Trade Agreement (KAFTA) was signed in Seoul, South Korea, on 8 April 2014.KAFTA will enter into force when both Korea and Australia have completed their domestic legal procedures. The full text of the KAFTA is available on the Department of Foreign Affairs and Trade website.

Entry into Force
Trade and Investment Minister Andrew Robb has announced that Australia’s Free Trade Agreement with South Korea will enter into force on 12 December 2014.

Legislation
• Customs Amendment (Korea – Australia Free Trade Agreement Implementation) Act 2014
• Customs Tariff Amendment (Korea – Australia Free Trade Agreement Implementation) Act 2014
• Customs (Korean Rules of Origin) Regulation 2014

Practice Statement and Instructions and Guidelines
• Practice Statement NO. 2009/13 – Rules of Origin
• Instruction and Guideline – Korea-Australia Free Trade Agreement

The Integrated Cargo System – Claiming Preference
To claim preferential tariff rates under KAFTA, the following codes should be used in the ICS:

Preference Scheme Type
Type/ Description of Preference Scheme
KFTA/ Korea-Australia Free Trade Agreement

Preference Rule Types (Select the appropriate Rule Type)

Rule Type/ Description of Origin Criteria
POM/ Produced entirely from originating materials
PS/ Product specific rules
WO/ Wholly obtained goods

For more information, please read the following:

• Integrated Cargo System – Claiming Preferential Tariff Rates

What you will need to support a claim for preference under KAFTA

A KAFTA Certificate of Origin completed by the exporter or producer in Korea.

Model format of KAFTA certificate of Origin.

The Certificate of Origin must contain the following Data Elements (as listed in Annex 3-C, Chapter 3 of KAFTA):
List 1-11:
1. Issuing number
2. Exporter, including contact details
3. Blanket period for multiple shipments
4. Producer, including contact details (optional)
5. Importer, including contact details (optional)
6. Description of good(s)
7. Harmonized System code (six digits)
8. Preference criterion
9. Observations (optional)
10. Declaration
11. Name, signature, company or authorised body and contact details of person completing the Certificate of Origin; and date of issue.

Applying for an origin advice ruling

Customs and Border Protection will provide written advice, upon request, for determining whether the good originate from Korea for the purposes of claiming KAFTA preference.

• Application for Origin Advice Ruling Form (B659)

Comparison Table of the Specific Provisions of Chapters 3 and 4 of KAFTA and Related Legislation, Regulations or Procedures

• Table

Kind Regards

SILA Customer Service

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Container Detention During Holiday Period

Dear Valued Clients,

The holiday season is upon us we thank you for your support over past year and hope that you and your family have a great Christmas and festive season.
We take this opportunity to advise you of the terms that will apply to container collection and dehire over the upcoming Christmas / New Year period .

Please note these terms will apply from 15th December 2014 to 15th January 2015.

SILA will not be held accountable for detention during this period 15th December to 15th January 2015 customers will need to have a minimum of 10 free days from date of vessel availability to assist in minimising any detention however customers who purchase under C&F , CFR terms will need to request shippers longer detention free periods as needed.
Customers where SILA manages shipping we will provide 10 free days container detention, however should detention be longer than 10 free days then this will be to customer account.
There are various issues that result in container detention at this time:
• Availability days include weekends and public holidays
• Empty parks require time slot bookings and many only operate business days and limited hours
• Receivers operate limited non-public holidays, limited business hours and in some cases are closed for all public holidays and some non-public holidays during this period
• Receivers operate on Skelton staff and cannot receive as much cargo.
SILA thankyou for your support and look forward to a prosperous new year !
Kind Regards
SILA Customer Service

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SILA Festive Season Trading Hours

Dear All

Season’s Greetings from all at SI Logistics Australia Pty Ltd . We hope you have an enjoyable and restful festive season.

Please take note of the following trading hours and dates of when SILA will be closed during this festive season.

24/12/14 Open from 08h30 till 13h00
25/12/14 Closed – Public Holiday
26/12/14 Closed – Public Holiday
29/12/14 & 30/12/14 Open for normal business hours 08h30-17h00
31/12/14 Open from 08h30 till 13h00
01/01/15 Closed – Public Holiday
02/01/15 Re-open for business as usual

Emergency Contact person: Simon Pepper – 0450 665 812

We trust that 2014 has been a great year for you and hope that 2015 has even better prospects.

Kind regards

The SILA Team

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