BORDERS - GAME CHANGER - PORT OF MELBOURNE'S NEW RAIL PROJECT FOOD SECURITY AMID COVID19 - THE HON. DAVID LITTLEPROUD MP - Freight Trade Alliance
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WINTER 2020 ACROSS BORDERS GAME CHANGER – PORT OF MELBOURNE’S NEW RAIL PROJECT FOOD SECURITY AMID COVID19 – THE HON. DAVID LITTLEPROUD MP COVID-19 STATUS REPORT – THE ADVOCACY ROAD AHEAD NATIONAL COVID-19 COORDINATION COMMISSION – CHAIRMAN MR. NEV POWER
Contents ACROSS 2 4 6 10 Food Security amid COVID-19 Australian Peak Shippers Association - Report from the Chair COVID-19 Advocacy Response by Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) eLearning: a pathway to advancing your potential BORDERS 12 Keeping supplies moving during COVID-19 and beyond WINTER 2020 14 Future-proofing South Australia’s port and freight infrastructure 16 New shipment signals new opportunities for the Hunter 17 New empty container park at Port Botany creates supply chain efficiencies 18 Guidance in maintaining supply chains: TT Club’s support during the pandemic 20 The group who kept WA’s Freight Industry Moving 22 Contemplating wearing socks again 23 Game changer – Port of Melbourne’s new rail project 24 Assisting Australian Exporters get to their Customers 26 The New Normal 28 What will your New Normal look like? 30 ACFS Port Logistics - ‘Salta Properties’ Altona Inland Port Container Park 31 Definition of “turnover” affecting freight forwarders and customs brokers 32 Industry group to facilitate generational shift on rail network 33 COVID-19: The Impact of Supply Chain disruption on Businesses – The Way Forward 34 Post COVID-19 – Container Logistics Productivity & Information Exchange Needs Boost 36 Out of the Health & Economic Crises 38 COVID-19 - Working towards a positive outcome 40 42 Switch bills – Are they worth the risk? Interview - Mark Callus – Director, Customs Agency Trade Modernisation and a 44 Services (CAS) Associated Customs and Forwarding (ACF) donation to frontline Bio-Secure border medical staff 44 Bushfire recovery relief It is a tremendous credit to our Federal, State and Territory 45 FTA Keeping Members Informed governments who have successfully led Australia through the 46 Be Aware - Incoterms® 2020 Review COVID-19 health crisis minimising the loss of Australian lives. 47 Expanding trade a key player in Australia’s ultimate While international and local lockdown measures have had economic recovery a significant adverse economic impact, we also need to be 48 Remote working – a new cyber security risk for businesses and grateful for the implementation of government financial relief their employees. measures. 49 Why increasing the quality and availability of data is the best thing we can do for long term supply-chain resilience We have also received overwhelmingly positive feedback 50 Diversifying, Pivoting and Collaborating from Freight & Trade Alliance (FTA) and Australian Peak 52 Biosecurity wins and responding to the coronavirus pandemic Shippers Association (APSA) members in terms of our 53 Australian Biosecurity Awards 2020 advocacy activities enabling a level of business continuity 55 Future thinking and future proofing. during this time. The myriad of achievements to date were 56 Business research improves risk detection in shipping containers only possible through genuine engagement with the National 57 High cost of cigarettes failing to discourage smokers COVID-19 Coordination Commission, Australian Border 58 BorderWise: access comprehensive customs information from a Force, Department of Agriculture, Water and the Environment, single window Treasury, Australian Taxation Office and state-based freight 60 Importing and exporting personal protective equipment – authorities. not as simple as it seems 62 Imports of Undenatured Ethyl Alcohol of an ABV of 80% or greater Despite the best efforts of all, there have been unavoidable for use in manufacturing hand sanitiser in Australia. impacts caused by the downturn in trade. In extreme cases, 63 Is Australia’s anti-dumping system causing more harm than good? some businesses have been forced into administration. Many 64 Australian Trusted Trader – partnering with you other members have been left with little alternative but to make 66 COVID-19. The perfect time to E.A.O redundancies, force staff to use leave entitlements and / or reduce days’ of work. Across Borders is published by As we ease out of restrictions, FTA / APSA has established Freight & Trade Alliance (FTA) an advocacy plan aimed at a sustained paradigm shift in 68 Brooker Avenue government priorities in favour of shippers and logistics providers. Beacon Hill NSW 2100 T: 02 99751878 At a personal level, I very much look forward to joining industry E: info@FTAlliance.com.au leaders and the Hon David Littleproud (Minister for Agriculture, Drought and Emergency Management / Deputy Leader of the www.FTAlliance.com.au National Party) as member of the Biosecurity Futures advisory group. Giving an insight into trade modernisation and a Bio- Editor - John Park secure border, a special note of appreciation is also extended T: 0415 973 630 E: jpark@FTAlliance.com.au to the Minister for his foreword in this Winter 2020 edition of Across Borders. Advertising - Paul Zalai T: 0408 280 123 E: pzalai@FTAlliance.com.au By PAUL ZALAI, Co-founder and Director, Design - Siren Design Studio Front cover – T: 0412 103 569 Freight & Trade Alliance (FTA) sponsored by Port of Melbourne E: sarah@sirendesignstudio.com.au Winter 2020 I Across Borders I 1
FOREWORD Food Security amid COVID-19 By the Hon. DAVID LITTLEPROUD, Minister for Agriculture, Drought and Emergency Management Maintaining Australia’s food security is We’re grateful to our farmers and all who The Department of Agriculture, Water and one of the Government’s top priorities work across the food supply chain to the Environment has placed dedicated ensure our food security even in times of people within its import assessment, and it’s a key part of our $320 billion crisis, and we will continue to back our bookings and inspection functions to of measures to deal with the economic farmers and fishers to ensure they have enable critical supplies to be cleared faster impacts of COVID-19. the support they need during and after the without deviating from our strict biosecurity pandemic. and imported food controls. This has been The COVID-19 pandemic has taken developed through close consultations with Australia and the world by surprise. The Australian Government has changed visa arrangements to allow Pacific seasonal the major retailers as part of the Australian Coming after severe drought and the Government’s Supermarkets Taskforce. bushfires earlier this year concerns have workers, working holiday makers and a been raised about Australian food security. range of other visa holders to continue Maintaining productivity in our agricultural These concerns are understandable, but working (with strict health and hygiene and fisheries sectors is one of our misplaced. protocols) to maintain food security government’s top priorities, and we will through COVID-19. There are about continue to explore ways to provide further We know the importance of our agriculture 100,000 working holiday makers and assistance. We can take great comfort that sectors. Feeding our nation is an essential 8,000 Pacific Island workers in Australia. this lucky country produces enough food service. We want to ensure high-quality The Australian Government is also working to guarantee we will continue to enjoy the produce can reach domestic and overseas closely with supermarkets and their best produced products anywhere in the markets. brokers to fast-track border clearance of world. Australia is one of the most food secure imported groceries during the COVID-19 countries in the world, for several reasons. COVID-19 has had a huge impact on crisis. We consistently produce far more than everyone, but we will continue to back our we consume. This means we can also Uncertainties around the impacts of agriculture and seafood sectors and ensure contribute to the food security of other COVID-19 triggered a sudden increase in Australians and the globe can continue nations through exports. We export 70 per purchasing by consumers of a range of to enjoy our clean, green and sustainable cent of our agricultural production. items, resulting in disruption to stocks of produce. The government’s $110 million some basic food items in supermarkets. International Freight Assistance Mechanism According to the Australian Bureau of This disruption is not an indication of is one of the initiatives to help exporters Agricultural and Resource Economics food shortages. Rather, it is a result of get their high-value produce into key the seasonal outlook for autumn 2020 is logistics taking time to adapt to the large overseas markets during this crisis. positive, providing the basis of a recovery unexpected surge in purchasing. in Australian crop production and allowing In March I announced Mark Tucker as our for rebuilding of sheep flocks and cattle These impacts are already abating, while Senior Agriculture Industry Engagement herds. Australia’s sophisticated supply chains are Officer to be the key liaison between my rapidly adapting. State-imposed border department and agriculture, fisheries shutdowns will not affect agricultural and forestry stakeholders affected by supply chains. The trucks carrying food COVID-19. and produce will continue to get through to the shops. Feed, hay, fertiliser and other Mark has already been busy working with agriculture products will continue being Commonwealth Departments and State delivered to farms. Governments to ensure agriculture industry perspectives inform our decision-making. We do not produce everything we like The position will give us regular status to eat however, and imports account for updates on key issues in this sector and around 11 per cent of food consumption it’ll help us respond exactly where we need by value or 16 per cent of household to. consumption. These imports provide access to manufactured food and I thank our farmers and all those beverages, different varieties of some working across the food supply chain items, and out of season fresh produce. for performing a great service to the Streamlining the import processes for community to ensure our food security items such as frozen processed foods remains as strong as ever. It’s the will help ensure supermarkets remain fully agriculture sector that will lead our stocked. recovery. 2 I Winter 2020 I Across Borders
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EXECUTIVE REPORT Australian Peak Shippers Association - Report from the Chair $300M+ stevedore charges annually paid by Australian shippers By SEAN RICHARDS, APSA Chair / Executive General Manager - Visy Logistics I am delighted to advise a decision Environment stated “This decision has from the Australian Peak Shippers also been made in consideration of the ongoing impacts of drought, bushfires Association (APSA) Committee of and COVID-19 on the Australian Management to maintain our low economy and the rapidly changing membership fees again for the 2020 / global trade environment.” 2021 financial year. This is a tremendous start in what needs to be a sustained paradigm shift in government priorities in favour of shippers. It is the efficient movement of goods that will lead our economic The status report recovery and generate national wealth, not the welfare of shipping lines or highlights a infrastructure owners. combination of These are sentiments that FTA / APSA shared with the Hon Michael increased competition McCormack (Deputy Prime Minister and with a greatly reduced Minister for Infrastructure, Transport and Regional Development) in our client base as being submission titled STATUS REPORT - CONTAINER STEVEDORE IMPOSITION the catalyst for a OF TERMINAL ACCESS CHARGES We trust that this decision will assist restructure in stevedore exporters in the current economic crisis Terminal Access Charges whilst maintaining essential funding of terminal pricing. our secretariat, advocacy and member The status report highlights a support services. combination of increased competition with a greatly reduced client base as Government response to supply being the catalyst for a restructure in chain costs stevedore terminal pricing. In line with our advocacy addressing Specifically, the addition of a third “cash flow” relief measures for shippers major container stevedore in Sydney, during the current COVID-19 crisis, Melbourne and Brisbane in recent years Freight & Trade Alliance (FTA) and the has added competition at a time when Australian Peak Shippers Association the number of clients, international (APSA) welcome the announcement from shipping lines, has significantly the Department of Agriculture, Water reduced due to consolidation and and the Environment that the somewhat increased utilisation of vessel sharing controversial Onshore Biosecurity Levy arrangements. (previously referred to as the “Biosecurity We understand that this has resulted Import Levy”) will not proceed. in stevedores reducing the prices they In a federal government media statement charge shipping lines to attract and released 20 May 2020, the Department retain business. That lost revenue of Agriculture, Water and the appears to have been the rationale for 4 I Winter 2020 I Across Borders
STEVEDORE PORT EXPORT IMPORT EFFECTIVE Constance and the NSW Productivity Commissioner and remain hopeful of Flinders Adelaide Container Adelaide $28.96 $28.96 4-Mar-19 action from their review. Terminal Unlike other states that would require Australian Amalgamated Terminals Brisbane $38.70 $38.70 8-Nov-18 new legislative provisions for intervention, (AAT) NSW has at their disposal the Ports and DP World Australia Brisbane $79.50 $109.50 1-May-20 Maritime Administration Act Schedule 4 that provides a broad sweeping power Hutchison Ports Brisbane $50.00 $50.00 19-Aug-19 to allow the Minister to regulate these Patrick Brisbane $82.50 $114.50 9-Mar-20 charges without limitation. DP World Australia Fremantle $45.00 $45.00 1-Jan-20 FEDERAL - FTA / APSA acknowledges Patrick Fremantle $25.00 $50.00 9-Mar-20 suggestions by some state government representatives of a statutory monitoring DP World Australia Melbourne $79.50 $125.00 1-May-20 process to oversee further price increases Patrick Melbourne $82.50 $125.80 9-Mar-20 but does not see this as an appropriate long-term solution. Victoria International Container Melbourne $121.80 $121.80 1-Jan-20 Terminal (VICT) Existing Terminal Access Charges are already excessive with incremental DP World Australia Sydney $79.50 $112.10 8-May-20 increases on this base to continue Hutchison Ports Sydney $63.11 $63.11 18-Nov-19 the devastating impacts on Australian Patrick Sydney $82.50 $114.50 9-Mar-20 shippers. All businesses face a dilemma of how to deal with unavoidable costs such as rent, stevedores recovering costs via landside As reported in the Autumn 2020 edition infrastructure, labour and power. Those Infrastructure Surcharges (now more of Across Borders, FTA / APSA has same businesses are then forced to either appropriately referred to as “Terminal also provided a detailed submission in absorb costs or pass them on to their Access Charges”), an unregulated charge response to the ACCC Discussion paper commercial clients. Similarly, the position for access to international container Proposed Class Exemption for Ocean from FTA / APSA remains that stevedores terminals. Liner Shipping noting that the Line should either absorb operating costs While not suggesting that there is any market consolidation plus the emergence or pass these on to their commercial collusion amongst Australian stevedores, of stevedore-imposed Infrastructure client. Shipping lines then have the it is clearly a case of ‘follow the leader’ Surcharges has resulted in supply chain choice to absorb costs or pass these with each introducing a similar fee and costs rapidly increasing, exposing onto exporters, importers and freight taking turns to ratchet up the pricing. significant deficiencies in the effectiveness forwarders through negotiated freight of Part X of the Competition and rates and associated charges. Direct costs to shippers Consumer Act in being able to achieve The status report also incorporates a basic shipper protections. One of the We look forward to our meeting with review completed by FTA / APSA of the Deputy PM whereby we will be nine recommendations from FTA / APSA Terminal Access Charges for the 2019 recommending: is to mandate incorporation of stevedore calendar year using container number fees within shipping line contracts, • regulation to protect transport sources from the various Port Authorities negating stevedore-imposed Infrastructure operators and shippers by forcing with charges averaged across the Surcharges administered on the transport stevedores to cease the practice of stevedore-imposed fees. This exercise sector. administering a Terminal Access Charge; identified in excess of $300m per annum and are paid by shippers via this mechanism. VIC – Feedback from Freight Victoria and the Minister’s office indicates they are • stevedores should be given Government response cautiously heading towards some form of appropriate notice to adjust commercial The following is a general summary of regulation. modelling allowing negotiations of charges responses received by FTA / APSA to date back to shipping lines. from government: QLD – Disappointing, initial engagement with the Hon Mark Bailey (Minister This outcome would allow market forces ACCC – The ACCC’s focus has been on for Transport and Main Roads) and to take effect. An open and competitive establishing a misuse of market power environment will determine appropriate the Director-General Department of case noting there has to be a substantial price for services without the need Transport and Main Roads suggests that lessening of competition as a result of the for further government monitoring or stevedoring services are not regulated by conduct of a business with substantial intervention. market power. The ACCC claim that the state they have not received evidence to date WA – The office of Alannah MacTiernan that would meet this threshold. The (Minister for Ports) is actively engaging ACCC is finding it difficult to draw strong with FTA / APSA and appear to genuinely conclusions from the data they receive appreciate concerns raised. from their monitoring functions about how much of the cost burden should fall to the NSW – FTA / APSA has had regular landside versus seaside. engagement with the Hon Andrew Winter 2020 I Across Borders I 5
EXECUTIVE REPORT COVID-19 Advocacy Response by Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) By PAUL ZALAI, Director & Co-Founder FTA, Secretariat, APSA Exporters, importers, freight forwarders terminal operators and freight forwarders and customs brokers will need to to support the sector that was being decimated with passenger flights rapidly facilitate trade to help Australia recover winding up. from the economic damage local and FTA / APSA established a COVID-19 AIR international lockdowns have caused. CARGO BULLETIN BOARD to support Importantly, the Australian federal forwarders to build capacity to charter and state governments will need to aircraft. The bulletin board service collaborate with industry to establish expanded over time with utilisation by airlines and government as the primary and agree a recovery agenda that central portal of air cargo information. prioritises investments, programmes More was needed to complement these and strategies that facilitate shippers’ initiatives, that led to FTA/APSA advocating John Park (Head of Business Operations, activities. for Federal Government funding to support FTA/APSA) interviewed by the ABC on 9 traders of perishable goods reliant on air March 2020 “COVID-19 impacts on trade” The following commentary traces the cargo to export to global markets. On the FTA/APSA phase 1 COVID-19 crisis evening of 31 March 2020, contact was operating performance and take many management activities (March to May 2020) made by the advisor to the Senator the small and medium businesses over the and looks ahead at the phase 2 trade Hon Simon Birmingham (Minister for Trade, $50 million turnover threshold outlined for recovery in the coming months and years. Tourism and Investment) who advised FTA/ the eligibility for Cash Flow Boost (and also APSA that $110m in airfreight support jeopardising some members’ eligibility to initiatives was to be provided to keep JobKeeper). COVID-19 PHASE 1 - CRISIS supply lines open for airfreight during the After extensive engagement with ATO MANAGEMENT COVID-19 crisis. executives, we received formal advice on ESSENTIAL SERVICES CASH FLOW 11 May 2020 that the statutory import charges that are passed on as an “agent” If you cast your mind back to early The economic crisis translated to delays are not deemed as a supply made by the March, we heard about the potential of a in payments of services throughout the freight forwarder / customs brokerage and “lockdown”. This was of significant concern supply chain. Focus turned to the need to is not included in turnover. The result being as we did not know what it meant in real make up front payments of statutory import eligibility for many members providing a terms. charges before goods can be released from level of welcomed financial relief. FTA / APSA quickly commenced a customs’ control and the potential threat of congestion at our airports, ports and MEDIA comprehensive campaign with ministers and government departments advocating depots. Complementing use of our webinars, daily for the entire international supply chain, As a direct result of FTA / APSA advocacy notices and weekly report, FTA / APSA including all parties from the importer and to Treasury, the Australian Border Force commenced a regular (initially weekly) exporter through to the border (specific (ABF) and the Australian Taxation Office CORONAVIRUS TRADE REPORT collating reference to freight forwarders and (ATO), the Deferred GST arrangement was intelligence and commentaries from local / customs brokers) be treated as essential streamlined to turnaround applications overseas members and affiliations. Advice services. Furthermore, in an environment (from up to 30 days down to as little as 3/4 received from the office of the Deputy whereby our population was required to days) with significant uptake by importers Prime Minister is that government regards “self-isolate”, we highlighted that “last-mile” prior to the 30 April quarter cut-off. The this report as the most accurate and deliveries by couriers and Australia Post, ABF also developed solutions for duty detailed reference source, a sentiment facilitated through e-commerce, would deferral (beyond the existing Australian echoed by members and other industry need to play an essential role. Trusted Trader arrangements) to be stakeholders. deployed on a needs’ basis. Our approach was recognised in the FTA / APSA has also been at the forefront Transport and Infrastructure Council In parallel, FTA / APSA wrote to the of trade and mainstream media providing Communiqué endorsed by all National, Commissioner of Taxation on 20 April detailed commentaries on key issues State and Territory Transport Ministers on 2020 requesting a determination under aligned to advocacy strategies: 25 March 2020 that affirmed the critical role subparagraph 5(1)(d)(ii) of the Boosting of trade and logistics. Cash Flow for Employers (Coronavirus Economic Response Package) Act 2020 COVID PHASE 2 – TRADE RECOVERY AIR FREIGHT noting that many freight forwarder / BORDER AND BIOSECURITY Once we had a level of comfort that our customs brokerages make large payments members would be able to maintain of Duty, GST and Import Processing In recognition of FTA / APSA status as the business continuity, our attention turned to Charges on behalf of importers. These peak industry body representing shippers’ airfreight. FTA engaged with airlines, cargo significant disbursements distort true interests, I have been privileged to be 6 I Winter 2020 I Across Borders
recently appointed to two executive boards: Exemption for Ocean Liner Shipping – the Biosecurity Futures chaired by the Hon David submission is featured on the FTA/ APSA Littleproud (Minister for Agriculture); and web site’s home page. the Customs Advisory Board chaired by Mr SUPPLY CHAIN Michael Outram OAM (ABF Commissioner). FTA / APSA position remains that a statutory Through these forums, I will work monitoring process to oversee further collaboratively with government and industry price increases of stevedore-imposed leaders to make a positive contribution to Infrastructure Surcharges is not the answer. a trade modernisation agenda, including a Existing prices are already excessive. renewed focus on a “Bio-secure border”. Incremental increases on this base would Trade digitisation and automation, cargo continue the devastating impacts on tracking, cost recovery and service 28 February 2020 Australian trade. Our regulators need to Discussion Paper - Proposed Class protect shippers by forcing stevedores to performance measurement will undoubtedly Exemption for Ocean Liner Shipping cease this practice. Stevedores should be at the forefront of reforms. Submission to the Australian Competition & Consumer Commission (ACCC) on behalf be given appropriate notice to allow SHIPPING of Freight & Trade Alliance (FTA) and the Australian Peak Shippers Associations negotiations of charges with shipping lines. FTA / APSA will continue advocacy for this FTA / APSA notes a commentary in outcome that would allow market forces The Loadstar, in which the CEO of to take effect. An open and competitive SeaIntelligence Consulting declared that environment will determine appropriate price during the COVID-19 crisis, the shipping for services without the need for further industry had entered “a new competitive government monitoring or intervention. landscape” in which the era of “all savings FINAL SAY and more” being passed on to shippers was over. He added: “In the three months In an Australian context, shipping line A continued focus of the FTA / APSA impacted by the virus, demand has dropped, market consolidation plus the emergence advocacy will be for a paradigm shift in in some cases 20%-30%, and the oil price of stevedore-imposed Infrastructure priorities in favour of shippers. It is the Surcharges has resulted in supply chain efficient movement of goods that will lead has dropped 60%-70%, yet freight rates are costs rapidly increasing, exposing significant our economic recovery and generate unchanged.” “This is a very clear example deficiencies in the effectiveness of existing national wealth, not the welfare of carriers of what you can do when you have a much competition law in being able to achieve or infrastructure owners. We look forward to more consolidated industry”. government respecting and prioritising the basic shipper protections. In response, FTA It may well reflect a mood in the shipping / APSA provided a detailed submission needs of shippers. industry, bolstered by the renewal of the to the Australian Competition and EU Consortia Block Exemption Regulation Consumer Commission (ACCC), including (CBER), that higher rates (or as they call it 9 recommendations for reform, in response ‘price stability’) are available in the future. to the discussion paper Proposed Class Winter 2020 I Across Borders I 7
JOIN THE ALLIANCE 2020/21 Premium Membership Benefits Freight & Trade Alliance (FTA) is the peak industry body representing the international trade and logistics sector, achieved by bringing together major importers and logistics providers to form an influential advocacy alliance. FTA also holds the Secretariat role for the Australian Peak priorities to ensure the efficient movement of goods leading Shippers Association (APSA) representing the interest of to Australia’s economic recovery and generation of national Australian exporters and working closely with other peak wealth. industry associations on matters of joint concern. A strong alliance is vital to ensure that our voice continues to The FTA / APSA primary focus for the first half of 2020 has involved engagement with government and industry be recognised by government, across industry and the broader stakeholders in successfully achieving a variety of relief Australian community. To that end we have proudly made measures to support members in achieving business continuity our Premium Membership open to all sectors of international during the current pandemic. trade including importers, exporters, customs brokers, freight As outlined in our Advocacy Status Report, we have mapped forwarders, Section 77G Depots, Approved Arrangement a plan for the year ahead aiming at a paradigm shift in premises & transport operators. • FTA’s Premium Membership rates are based on a scale of employees within a Less than 10 employees $847 business / per ABN. Less than 30 employees $1089 • Annual fee from time of subscription. Less than 50 employees $1391.50 Less than 100 employees $1754.50 • Prices include GST More than 100 employees $2200
Aside from our core advocacy focus, FTA proudly offers the NOTE: Due to COVID-19, our 2020 events were postponed to following member benefits the below February 2021 dates, importantly remaining within the current 2020/2021 customs broker CPD period. ALERTS – Complementing use of our webinars, daily notices and weekly report, FTA / APSA commenced a regular • Friday 5 February 2021 - 8.30am to 4.30pm - Coronavirus Trade Report in March 2020 collating intelligence Novotel Sydney Brighton Beach Hotel and commentaries from local / overseas members and • Saturday 6 February 2021 - 8.30am to 4.30pm - affiliations. Advice received from the office of the Deputy Prime Novotel Sydney Brighton Beach Hotel Minister is that government regard this report as the most • Friday 12 February 2021 - 8.30am to 4.30pm - accurate and detailed reference source, a sentiment echoed by Hyatt Place Melbourne members and other industry stakeholders. • Saturday 13 February 2021 - 8.30am to 4.30pm - ACROSS BORDERS MAGAZINE – FTA supplies a FREE Hyatt Place Melbourne quarterly member magazine providing the latest detail on • Wednesday 17 February 2021 - 8.30am to 4.30pm - emerging trade and government reforms (both in hard copy and Novotel Brisbane Airport electronically). • Saturday 20 February 2021 - 8.30am to 4.30pm - CPD – BORDER COMPLIANCE PROGRAM – FTA offers Hyatt Regency Perth members discounts to our annual one-day conferences hosted CBC - CONTINUED BIOSECURITY COMPETENCY – in this between 1 April and 31 March to align with customs brokers’ current accreditation period from 1 April 2020 to 31 March 2021 CPD requirements. Each event provides 24 CPD points and are there will only be one CBC Activity (20-21/01) for Class 19.2 hosted in Brisbane, Melbourne, Perth and Sydney. In addition, AEPCOMM accredited persons - scheduled for 4 August 2020. member forums are scheduled throughout the year for customs FTA will provide an online assessment at a cost of $49.50 (incl brokers to meet their CPD requirements. GST). Online CPD & CBC – FTA offers extensive material via ComplianceNetFTA with courses, resources and online assessment available at listed prices. FTA members are offered unlimited CPD and CBC content for a price of $165 (incl GST) per person per accreditation period (1 April to 31 March). Further discounts are offered to businesses with multiple purchases with the option for an all-inclusive invoice for membership and training – price on application to info@FTAlliance.com.au WISETECH ACADEMY – FTA is delighted to provide a new member benefit through our partnership with the WiseTech BorderWise Single Window Academy. The Academy offers a range of high quality, cost Comprises Australian law, regulation and all relevant effective courses designed and written by current industry government departments’ resources EXCLUDING the WCO experts to meet the specific needs of industry. HS (HSEN) notes & related content and global libraries for all countries. REAL TIME SUPPORT – FTA is an extension of your operational team – through our extensive network and access Standard - A$79.31 (incl GST) to key personnel across government and commerce, we can CargoWise One user - A$33.99 (incl GST) assist businesses with operational matters. FTA Individual or Premium Members - A$22.66 (incl GST) LEGAL SUPPORT – FTA supplies 30 minutes free legal CargoWise One user & FTA Individual or Premium support per issue from Hunt & Hunt Lawyers Members - FREE TERMS & CONDITIONS – Exclusive to FTA members, for the one off payment of $825 (incl GST) receive a clear, concise BorderWise + Pro Pack and legally robust set of trading terms and conditions designed includes the WCO HS (HSEN) notes & related content specifically for customs brokers and forwarders; a template credit application; a template director’s guarantee; a letter of Standard - A$113.30 (incl GST) authority; a template letter to use when providing the new terms CargoWise One user - A$67.98 (incl GST) to a client; a letter to you from Hunt & Hunt explaining how to Premium Members - A$56.65 (incl GST) use the pack of documents; updates to the documents due to CargoWise One user & FTA Individual or Premium legal developments. Members - A$33.99 (incl GST) INSURANCE SUPPORT – FTA supplies free insurance review & support from Logical Insurance Brokers BorderWise Global Entry Comprises all WCO (HSEN) notes and related content & WORKPLACE / HR CONSULTANCY – FTA supplies hotline global libraries for other countries - content is published in support via Employsure English and will later include translations for non-English BORDERWISE – FTA has a partnership arrangement with countries. WiseTech Global delivering significant discounts on the Standard - US$206 benchmark tool used by trade professionals to manage trade CargoWise One User - US$103 compliance. FTA Individual or Premium Members - US$103 BRANDING – FTA provides members with access to its logo for use on stationery, email signatures & web sites. DIRECTORY – FTA provides members’ details on a directory listing increasing access to new markets Membership forms are available at the JOIN THE ALLIANCE tab from the FTA website at www.FTAlliance.com.au For further detail, please contact us on 02 99751878 or info@FTAlliance.com.au
EXECUTIVE REPORT eLearning: a pathway to advancing your potential By BILL MURPHY, Head of Operations for WiseTech Academy The new reality of remote working This rapid transition has left some really sure if things will ever go back to brings an opportunity to take companies unprepared. The office of filing exactly how they were before. cabinets containing documentation on advantage of eLearning resources customers and their shipments, and face- But we still have work to do. We still need to upskill and advance your to onboard our staff, we need to keep our to-face meetings, is no more. Onboarding skills sharp, and we need to learn new workforce’s potential. and training of new staff members now skills. How do we do that in the current has added layers of complexity – how do you introduce them to an industry they environment? If COVID-19 has taught might not be familiar with? us anything, it is that we need to take advantage of the opportunities available The impact of COVID-19 on our daily While for most of us working from home to us using the online tools we have on lives has been significant, on a personal is our new reality, it does come with hand. and business level. None of us could challenges. People that are used to have imagined we would be in a global communicating in person and exchanging One of the opportunities of this new pandemic situation. With a focus on paper documents are now entering the normal is turning the time saved on ensuring community health and safety, digital world of online meetings and file- commuting to and from the office into many businesses have implemented sharing applications. We’ve been forced learning time. A very popular online remote working for their employees. into a new way of working and aren’t learning company that is ‘linked’ to a 10 I Winter 2020 I Across Borders
business social network site has reported that the time spent completing online courses has tripled since before the start of lockdowns in January. More people are using online learning to develop new skills and sharpen their existing ones. The same applies for industry-specific learning. Do you and your staff want to deep dive into specific topics? The supply chain industry, after all, is very complex and can differ from country The WiseTech Academy is currently offering free to country. This has never been more evident as the industry access to some of its most current courses. This grapples with customs regulation changes due to COVID-19. We access is for a limited time and is for Freight all have questions that need some answers! and Trade Alliance (FTA) members who are also WiseTech Academy is at the forefront of providing high quality CargoWise users. CW users should login to the eLearning to the supply chain logistics industry with a range My Account page and navigate to the WiseTech of nationally recognised courses and intensive short courses. Academy icon on that page. A government accredited Registered Training Organisation, WiseTech Academy provides relevant and timely industry training. Want a deep dive into Incoterms® 2020? We’ve got it. Need an Introduction to global supply chain security intro to supply chain maths? You’re covered. Want to hear about The understanding of international security conventions, the export controls for personal protective equipment? We have policies, and regulations are paramount to the mitigation a short course for you. and risk management in relation to security and safety With a range of courses from foundation to nationally recognised in international freight forwarding and the greater supply programs, you can complete your learning for a fraction of chain. comparable course fees. And because we believe in supporting This course is the first of five micro courses in this series the industry with quality resources, our foundation courses are designed for an operator with a logistics, international free! forwarding or brokerage business seeking information Providing relevant, high quality courses is our priority. We listen about international security programs. and respond to the needs of the industry, frequently meeting with industry experts and operators to discuss where the gaps in education exist, then develop courseware to fill those gaps. All Incoterms® 2020 Introduction WiseTech Academy courses are written by experienced industry On 1 January 2020, the International Chamber of operators, reviewed by third party subject matter experts, and Commerce updated the Incoterms rules in response to designed and produced by our experienced teams, ensuring changing trade practices, publishing Incoterms® 2020 to consistently high quality. provide greater clarity in negotiations between international Not only is WiseTech Academy providing critical education for buyers and sellers. the supply chain and logistics sector, but we are also bringing a This course is the first of three micro courses in the vision to life. It’s no secret that WiseTech Global’s CEO, Richard Incoterms series and explains how the 2020 terms should White, has a passion for education, particularly enabling people’s be applied in international trade. knowledge in the technology and supply chain industries. WiseTech Academy is bringing that vision to life by providing high-quality education to the industry and creating an entry point The basics of air cargo forwarding for new starters. Air cargo operations are a major component of the world’s While technology is becoming a popular career path for young export and import transportation services and continue to people, logistics is often not considered. Teenagers are no grow at rates exceeding any other transportation mode. strangers to online shopping, but they rarely think of how the This micro course covers the basics of air cargo forwarding products they buy online arrive to their door. and is an excellent introduction to the topic. The career path portal on WiseTech Academy’s website provides This micro course is the first of six micro courses in this information for young people wanting to know more about life series that includes courses on a range of topics including in the supply chain logistics sector. Featuring videos of young air cargo aircraft and ULDs, air freight consolidation, individuals who are forging careers in the industry, they tell air freight documentation and air cargo rates and stories about starting out in the industry, their successes, and classifications. what they love about their work right now. Each story is different, but they all agree that the industry is fast-paced and exciting for young people with drive and ambition. TGA imports during the COVID-19 pandemic If you’re ready to advance your potential by providing yourself or The requirements of the Therapeutic Goods Administration your staff with some high-quality education, check out WiseTech (TGA) have not been a strong focus or seen as a major Academy and contact us! training requirement until now as there has been only a limited number of players in this field and they are both very experienced and aware of their legal obligations. This is not About WiseTech Academy now the case. Established in 2018, WiseTech Academy is a wholly owned subsidiary of WiseTech Global. The Academy was established to offer accessible, affordable, online learning to the people This micro course provides an overview of the Therapeutic who work in or with global supply chains. And to provide deep understanding of why Goods Act requirements for urgent arrivals as a and how the industry operates as it does, and how it could be made more effective and consequence of COVID-19. It is one of two micro courses efficient. Our mission is to advance human potential by providing easy and affordable access to high quality online education, and in turn, enabling a strong and progressive in our COVID-19 series. sector for the global supply chain industry. For more information about WiseTech Academy, please visit https://wisetech.academy Winter 2020 I Across Borders I 11
EXECUTIVE REPORT Keeping supplies moving during COVID-19 and beyond By NEV POWER, Chair – National COVID-19 Coordination Commission Who are we? What’s next? The Prime Minister announced the The Commission The Prime Minister has agreed a three- establishment of the National COVID-19 step plan and a national framework to Coordination Commission (NCCC) on 25 has two key roles: to achieve a COVID-safe economy and March 2020. Our role is to coordinate advice to government on actions to help minimise and society. anticipate and mitigate the economic and mitigate the impact The Commission is encouraging all Australian businesses to reconfigure and social impacts of the global COVID-19 pandemic. of the COVID-19 on adjust and come up with a COVID-safe plan. All businesses will need to be able We have five Commissioners engaging jobs and businesses, to reassure their staff and customers that with specific sectors relevant to their expertise, to manage immediate issues and to facilitate the they are managing the risk of coronavirus. and to help position them for recovery. Our role is to provide a channel for fastest possible We have created an online planning tool to help business develop a plan business, industry and the not-for-profit recovery of lives and to keep their workers, customers and sector to raise issues with government the community safe as they reopen or connect with other groups to find livelihoods. or increase their activities. The tool solutions. Paul Little, the former complements the Safe Work Australia managing director of Toll Holdings, variety of issues. I received invaluable online hub, which remains the definitive is leading the Commission’s work on advice and recommendations from source of information for businesses to transport, logistics and supply chains. the Freight & Trade Alliance (FTA) and understand their work health and safety The impact of COVID-19 is significant, Australian Peak Shippers Association obligations. I recommend all FTA and and it will take business, government and (APSA) on behalf of its 380 members. APSA members take advantage of these all of us working together to recover. We resources. The Commission has worked closely with have engaged with more than a thousand government and industry stakeholders We are currently identifying a set of stakeholders in the business, industry to overcome and, as far as possible, priorities aimed at supporting a quick and not-for-profit sectors and received implement solutions to the concerns return to economic activity and growth. countless insights and offers of support. raised by FTA and APSA. For example, As part of this work Paul Little has been What’s our progress to date? we’ve helped navigate transport looking at the disruptions in supply restrictions and restrictions at ports. chains and opportunities for investment in During the initial stages of the crisis, we We also supported the establishment transport infrastructure. worked with industry and the government to address supply chain issues, including of the International Freight Assistance It’s been heartening to see the community food and grocery supplies, particularly in Mechanism, which ensures high-value spirit, commercial camaraderie and regional and remote areas. Australian agricultural exports reach ingenuity in this sector’s response to recovering markets, with the inward COVID-19. We responded to requests for assistance return journeys bringing back vital to unlock resources, break through The role that you all play – as importers, medical supplies and equipment. The bottlenecks and fix problems, and exporters, stevedores, air cargo terminal mechanism has committed to support engaged with stakeholders on a wide and transport operators, licensed depots, more than 500 flights to the Middle East, Asia and the USA, transporting Australian physical handlers of cargo, freight seafood, dairy and pork. forwarders and customs brokers – has been and will continue to be essential to There has been a lot of work on Australia’s prosperity. supermarket supply chains to get food supplies into the regions and remote Thank you for ensuring that goods communities, and we’ve connected continue to flow onto Australian shelves, laid-off airline staff with work in the health letters and parcels continue to reach our sector. post boxes, and Australian producers can continue to export their goods. The NCCC has also worked to bring in essential personal protective equipment I look forward to working to support from overseas, both through usual you in the recovery phase and thank procurement channels and Andrew you for your enduring efforts during this Forrest’s Minderoo Foundation. challenging time. 12 I Winter 2020 I Across Borders
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SHIPPING REFORMS Future-proofing South Australia’s port and freight infrastructure By STEWART LAMMIN, Chief Executive Officer - Flinders Port Holdings At the start of 2020 Flinders Port Holdings and the state of South Australia were gearing up for a crucial year in infrastructure planning and development. The State’s infrastructure body, Infrastructure SA, were due to publish South Australia’s first state-wide 20-year infrastructure strategy, while we at Flinders Port Holdings would be completing the company’s 50-year masterplan. But quickly, priorities changed. The onset of the COVID-19 pandemic forced businesses and governments alike to pause long-term planning and instead focus on the now. In the intervening months we have process. Around $25 billion worth of trade business, and our port and terminal implemented a group wide COVID-19 is moved across Flinders Ports precincts services, we are building an offering that response plan, which to date, has each year, the equivalent of 24% of State will enable businesses to drastically reduce enabled all our operations to continue. GSP. We are proud of the role we play in the costs and complexities involved in That does not mean we haven’t been keeping trade moving in the state and we importing and exporting. impacted. Across our business, from are acutely aware of the responsibility it Clearly, the next 12 months represents a office based commercial roles through to brings. We are a capital hungry business, challenging business environment. But, the our operational staff working at our ports, but we have confidence in the future of our ports, freight, and shipping industry has container terminal and logistics facilities, State, and we will continue to invest in our shown remarkable resilience. As a sector we have had to adapt. business as we have done over the past we have stayed open and operational and two decades. The decision to send 70 employees to ensured vital goods have continued to the safety of their homes was relatively Our priorities over the coming year are reach their destinations. We believe this easy and straight forward. The complex two-fold. First, we must ensure we will continue, while the transition out of piece was the management of more than continue to provide a seamless and COVID-19 also represents an opportunity 600 employees whose workplace is the consistent service to our customers to reassess embedded business practices. various outdoor operational sites including within the ‘new normal’ of an operating Last month we pushed ahead with the container terminal, Berth 29 mineral environment where COVID-19 has abated the publication of our first group-wide precinct in Port Adelaide and at the seven but not disappeared. We have already sustainability plan, setting ambitious ports we operate. The process of ensuring rolled-out ongoing operational guidelines goals across environmental, social, and business and operational continuity while, across the business focussed on keeping governance work streams. Rather than most importantly, maintaining the health staff safe and operations open, even if being a sign to halt, we strongly believed and safety of our people was a major transmissions do resurface. the current pandemic is further proof of undertaking. Plus, this had to be managed the need to push ahead with projects such But in parallel to this, we are also against a backdrop of public safety as sustainability and master-planning. determined for the new normal not scrutiny on our industry and particularly Both processes will help future-proof our to stall the ambitious goal we have the management of ships’ crews and business and ensure we remain ready to of strengthening and expanding our passengers coming into our various ports. deal with any external impacts we may position not only as a port operator but This is a challenge that will resonate face. With this in mind, we are confident as an end-to-end supply chain partner among our colleagues across Australia’s about the future and about our ability to for our customers. Over the last year ports, shipping, and logistics industry. deliver for the state and for our customers. we have expanded our logistics offering But as we transition back out of lockdown by launching Flinders Warehousing and measures, we remain positive about the Distribution (FWD). Located adjacent future. As a state, South Australia has dealt to our facilities at the Flinders Adelaide well with the pandemic and is well placed Container Terminal, FWD specialises in to return to business. The fact that the providing tailored supply chain solutions 20-year infrastructure strategy was indeed including warehousing and transport, while published this May is a sign of intent by the the capacity to also provide customs and state, one we fully support. For Flinders quarantine at the same site should also Port Holdings, we are also looking to the be finalised within the coming months. future as we continue our master-planning Coupled with our dedicated logistics 14 I Winter 2020 I Across Borders
South Australia’s leading port owner, operator, and logistics specialist. flindersportholdings.com.au Flinders Adelaide Flinders Flinders Warehousing Flinders Container Terminal Logistics & Distribution Ports
SHIPPING REFORMS New shipment signals new opportunities for the Hunter For the first time since 2013, a roll- committed to helping the region to grow Höegh Autoliners’ Australian Sales on roll-off (ro-ro) vessel is scheduled and get people back on their feet as the Manager, Nicky Colaço, said a regular recovery begins,” Mr Carmody said. service to Port of Newcastle would support to call at Port of Newcastle with a its regional NSW and Hunter Valley based commercial cargo. “There are thousands of people newly out customers. of work and all of us need to look at ways we can create more jobs, more investment “With the capability to berth at the Port The 200-metre Triton Ace – an impressive and a better economy than the one we of Newcastle, it will not only help the white and blue ‘floating car park’ capable started this crisis with. company expand its shipping routes but of carrying up to 6500 cars – stopped in also offer customers in the agriculture, Newcastle on Friday May 8. “This is a small but important first step mining and construction industry an – the Port is open to any new trade The shipment – the first of two ro-ro calls in alternate option to bring cargo closer to its opportunities.” two months – comes as the Port continues destination,” Mr Colaço said. to diversify trade and provide more The Port’s Acting Executive Manager Port of Newcastle has enlisted the services competitive supply chain alternatives for Business Development, Matthew Swan, of veteran shipping consultant Richard Australia’s importers and exporters. welcomed the partnership with Höegh Bailey, from Loch and Quay Consulting, to Autoliners and other supply chain partners. Triton Ace will deliver a number of large engage with industry and inform the Port’s pieces of mining machinery headed for “Together we are challenging the status planning and design as it seeks to diversify customers in the local area. quo and enabling freight to reach the final trade and support emerging markets. destination quicker, cheaper and more Ro-ro ships are loaded and unloaded “It is such an exciting time for Port of efficiently,” Mr Swan said. using ramps, enabling cars, trucks, heavy Newcastle, which is in the unique position machinery and farming equipment to “It makes sense for equipment heading of being able to plan for a suitable port quickly move on and off the ship. to our region, whether the Central Coast, landscape at a time when technology in Hunter Valley or agricultural customers vehicles, equipment, and the supply chain Port of Newcastle CEO Craig Carmody further afield in regional NSW, to come via is evolving rapidly,” Mr Bailey said. said the organisation was looking at ways Newcastle and reduce unnecessary truck to help stimulate the local economy as the “Investment and planning now will ensure movements.” region worked towards economic recovery the Port emerges as a serious participant and more diverse income streams. Höegh Autoliners is growing its Australian in this vital supply chain into the future.” service and contributing to lower supply “A lot of local businesses are doing things chain costs and the avoidance of obstacles The next ro-ro vessel, Hoegh Trove, is due pretty tough at the moment. We are to the freight of ro-ro cargo in the country. at Port of Newcastle on Sunday 12 July. Höegh Autoliners’ service to Australia has two routings; one originating in Europe and calling South Africa and the Indian Ocean Islands before ending in Oceania. And the second routing sailing via the US and the Caribbean Islands on its west bound passage from Europe to Oceania. Cargo loaded in Australia is usually transhipped in Japan, China or Korea and destined for Europe, Africa and the Americas. Höegh Autoliners’ also delivered on consignment the first light rail carriage to Newcastle in 2018. 16 I Winter 2020 I Across Borders
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