Stockwell International News Alert 9th March 2020

Stockwell International News Alert 9th March 2020

Coronavirus, USA GRI, Peak Season Surcharges, Local Airline Surcharges, Port Congestion Surcharge – Reefer Cargo into Ningbo, China and more

Written by

Jane Doe
Managing Director - logistics strategy and consulting
Jane Doe
Managing Director - logistics strategy and consulting

Coronavirus

It has been over two months now since the first case of coronavirus was detected in the city of Wuhan in the Hubei province of mainland China. As the months have passed we have seen the growth of cases, unfortunately deaths, around the world.

The “official” return to work dates as we have seen are varying from city to city, and even then workers are unable or not wanting to return to work for fear of still contracting the virus. Factories and transport companies are understaffed, ports are congested causing container diversions and surcharges.

Ongoing conversations with members and the wider industry are confirming that a “return to the norm” is some months away.

Port Authority of New South Wales (Port Authority) has released the current steps being taken to mitigate exposure to Coronavirus. They have developed guidelines for operational employees in line with those issued by the Health authorities. To ensure the safety of employees and crew members working across ports, Port Authority of New South Wales have initiated the following requirements effective immediately:

  • Masters of all ships due to arrive at our ports are required to declare their last 5 ports of call and confirm that they have no crew members showing symptoms of the novel coronavirus on-board;
  • Where novel coronavirus is evident, our employees will not be required to board the vessel; and,

Port Authority will delay pilotage services to ships that have transited directly from China, which have been at sea for less than the 14-day quarantine period.

Along with the high number of blank sailings on numerous voyages. This will cause significant delays for cargo being imported from China so we ask our clients to remain understanding during this period. Stockwells will keep you notified of any further updates or delays.

USA GRI

FCL:

We wish to advise the following GRI that effective 1st April 2020 (cargo received date) a General Rate Increase (GRI) will be applied on all cargo moving from the United States and Canada to Australia and New Zealand in the following amounts:

USD $100 / 20’ft container USD $200 / 40’ft container

Please note that effective 1 April the Panama Canal Surcharge ex North America to Australia will increase to:

USD $190 / 20’ft dry container USD $350 / 40’ft HC container USD $190 / 20’ft reefer container USD $350 / 40’ft reefer container

Please note that effective 1 April the Panama Canal Surcharge ex Australia to Europe will increase to:

USD $175 / 20’ft dry container USD $320 / 40’ft dry HC container USD $175 / 20’ft reefer container USD $320 / 40’ reefer container

LCL:

General Rate Increase on LCL pricing as indicated below effective 26th March 2020: All North American CFS to Worldwide Destinations GRI USD 15.00 w/m

Peak Season Surcharges

FCL:

Stockwells have received notice from MSC & CMA CGM (the two direct carriers out of Europe) that they will soon be implementing a Peak Season Surcharge (PSS) for Shipments Ex Europe to Australia and New Zealand.

MSC – effective from March 10, until further notice, all shipments will be subject to a PSS of USD $200/TEU (for standard containers) and USD $1000 per container (reefer)
CMA CGM – effective from March 15, until further notice, all shipments will be subject to a PSS of USD $100/TEU (for standard containers) and USD $500 per container (reefer)

The shipping lines operating in the North East Asia (China, Korea, Taiwan and Hong Kong) to Australia have implemented a rate increase effective from 1st of April 2020.

USD 300 Per 20’ and USD 600 Per 40’ dry containers

LCL:

Please be advised that due to the strong demand on the Eastbound Europe & Mediterranean to Asia trade, a

Peak Season Surcharge (PSS) has been implemented that will be effective vessels sailing on/after 1st March 2020. This will effect any cargo transhipping via Singapore.

PSS: USD 7.00 w/m (minimum 1M3)

Europe and Mediterranean to Australia PSS implemented for all cargo confirmed effective from 10 March 2020:

PSS: USD 9.00 w/m (minimum 1M3)
Antwerp to Brisbane PSS implemented for all cargo confirmed effective from 1st March 2020:

EUR 10.00 w/m (minimum 1M3)

North East Asia (China, Korea, Taiwan and Hong Kong) to Australia have implemented a rate increase effective from 1st of April 2020

USD 12.00 w/m (minimum 1M3)

Stockwells understands our clients frustrations with the constant increasing of freight prices out of Europe, especially on direct services, so please feel free to contact your customer service representative if you would like to discuss other, cheaper, trans-shipment options during this period.

Local Airline Surcharges

Stockwells has received notice of local airline surcharge increases. Please see destination/origin fee increases effective immediately:

Imports

Airline Document Fee (ADF) – $65.00
Airline Terminal Fee (ATF) – $0.60/kg – Min $60.00

Exports

Airline Document Fee (EXADF) – $65.00

Port Congestion Surcharge – Reefer Cargo into Ningbo, China

Due to the plug shortage in Shanghai and Xingang worsening over the past week the congestion surcharge will also expand to Ningbo

For any bookings in place where the container has not been picked up before 26th February, or any new bookings from the same date, effective 26th February 2020, a congestion surcharge of USD 1,000 per container for ALL reefer cargo booked to Ningbo to cover the additional cost of re-routing.

Infrastructure Fee Increase

Stockwell International has received notice of increases to infrastructure fee for Sydney and Brisbane.

Please see below rate effective from March 9th 2020

Sydney infrastructure fee AUD $125 per container Brisbane infrastructure fee AUD $115 per container

Fuel Levy

Please note that effective 1st January 2020, Stockwell’s fuel surcharge is now 13%. This applies to NSW, QLD and VIC only.

Asbestos Risk Management

The Australian Border Force will not accept a simple declaration from the importer as sufficient due diligence that goods are asbestos free, especially if they are goods from an origin listed here

Importers need to demonstrate that they have undertaken adequate risk assessment measures for their goods that are known to be at risk of containing asbestos, or are supplied from countries with asbestos producing industries.

Several types of documentation may be necessary to demonstrate a sufficient level of assurance. A guide list of examples of supporting documentation could include:

  • Declarations which state that the goods have nil asbestos content (supported by evidence);
  • Documentation outlining the level of assurances taken throughout the supply chain;
  • Invoices demonstrating the supplier of the goods;
  • Information about the supply chain and possible quality assurance processes in place;
  • Illustrative Descriptive Material;
  • Ingredient lists;
  • Test certificate or laboratory report;
  • Material Safety Data sheets

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