BORDERS - INVESTING IN YOUR GREATEST ASSET - Freight Trade Alliance
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EDITION ONE 2022
ACROSS
BORDERS
INVESTING IN YOUR
GREATEST ASSET
PRODUCTIVITY COMMISSION TO EXAMINE AUSTRALIA’S MARITIME
LOGISTICS SYSTEM – THE HON BARNABY JOYCE
SIMPLIFYING LOGISTICS EDUCATION WITH WISETECH ACADEMY – BILL MURPHY
BIOSECURITY INITIATIVES AND INNOVATIONS TO KEEP CARGO MOVING – ANDREW TONGUE
Artist impression
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Contents ACROSS
4
8
9
Productivity Commission to examine Australia’s maritime
logistics system
Turn the tide with shipping reform
FTA / APSA submission to the productivity review – Australia’s
BORDERS
Maritime Logistics System EDITION ONE 2022
10 The fate of agriculture and regional economies at the mercy of
international freight supply chains
11 FTA welcomes Sally Beeton
14 NITL: Elevating the Shippers’ Voice
16 Regional Australia reaps the rewards of a rich harvest
18 They are from the Government, and they are here to help….
20 Love meat tender – beef exports to Mexico surging
22 Could Northern freight hubs create a new bi modal import
solution for Australia?
24 Global Recognition & Our Focus on Sustainability
26 SALTA’S $155 million Dandenong South Intermodal Terminal
27 Recruitment 2022
28 Risks surrounding abandoned cargo
32 Shipping Line Container Detention Charges – Are They
“Reasonable”?
34 Thinking of Selling Your Business? Now is the Perfect Time!
36 Investing in your greatest asset
38 Economic Tectonic Plates shift in the Global Economy
40
41
“We didn’t start the fire…..”
FTA Partners with Consortia providing Rapid Antigen
Australia joins international
Test (RAT) kits competition authorities to
42 Abandoned Cargoes – Are Freight Forwarders Exposed
to costs? target potential supply chain
44 Managing staff in a pandemic
46 Minimise disruptions to your business whilst saving money criminal collusion
and time by choosing to outsource
47 What lies beneath? In response to the Australian Peak Shippers Association
48 The challenge of growing business in a sustainable and (APSA) and Freight & Trade Alliance (FTA) call for government
responsible way intervention, the Federal Treasurer made a welcomed
50 GEODIS to open a new warehouse facility at announcement on 10 December 2021 that the Productivity
Brisbane Airport (BNE) Commission will complete a review into Australia’s maritime
51 Clean freight forwarding as a given, not an option system.
52 Don’t Lose Sight Even as we digitize, logistics is still
about the people In parallel to this review, a joint announcement on 18 February
53 Wondering Women & Industry join forces to help Northern 2022 by competition regulators in Australia, the USA, Canada,
UK and New Zealand stated they are collaborating to monitor
NSW Flood victims
anti-competitive and potentially criminal conduct. Specifically,
55 Working together to keep our supply chains operating in
the group will be watching for cartels and other activities
challenging times
that materially impact competition, such as exclusionary
56 Making cross-border trade easier for Australian businesses
arrangements by firms with market power.
58 Initiatives and innovations to keep cargo moving
61 Is sea freight a viable option for exporting perishable As highlighted in the Chair’s report (refer pages 8 & 9),
vegetables? FTA / APSA provided a detailed submission examining
62 BorderWise: Taking the complexity out of compliance long-term domestic trends, focussing on operational cost
64 Australian Border Force Focuses Attention on licensed drivers, including industrial relations, infrastructure constraints
customs depots and emerging business practices in ports and related
66 Australian Radiation Protection and Nuclear Safety Agency transport networks that are adversely impacting the overall
to present at upcoming Freight & Trade Alliance (FTA) CPD competitiveness of the Australian trade sector.
events across Australia
As we emerge from the peak of the COVID-19 Omicron variant
68 Streamlining the Cargo Intervention Model
and severe domestic weather conditions, our exporters and
importers continue to report restricted access in maritime and
Across Borders is published by aviation capacity, surcharges and record high freight rates.
Freight & Trade Alliance (FTA)
In a meeting with the Deputy Prime Minister on 2 March 2022,
68 Brooker Avenue we discussed the above matters, reforms that are progressing
Beacon Hill NSW 2100 in the US and joint international competition regulatory agency
T: 02 9975 1878 activity. Importantly, it provided an opportunity to reinforce
E: info@FTAlliance.com.au key elements of our broader advocacy for shipping reform to
complement other federal government-led trade liberalisation
www.FTAlliance.com.au
measures.
Editor - John Park We extend our sincere appreciation to The Hon. Barnaby
T: 0415 973 630 Joyce and senior advisors for their ongoing engagement on
E: jpark@FTAlliance.com.au
international trade matters and for the foreword to this edition
Advertising - Paul Zalai of Across Borders.
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 Wisetech Academy E: sarah@sirendesignstudio.com.au
Edition One 2022 I Across Borders I 3
FOREWORD
Productivity Commission to
examine Australia’s maritime
logistics system
By The HON. BARNABY JOYCE, Deputy Prime Minister and Minister for Infrastructure,
Transport and Regional Development.
Prior to the COVID-19 pandemic, The pandemic has been challenging compared to some of our international
I think it’s fair to say Australians for Australia’s importers, exporters and counterparts.
supply chain participants with supply
seldom considered the logistics chain disruptions and higher freight Despite the disruptions, freight has
required to keep supermarket rates driven by demand for international continued to move through our ports
shelves stocked. shipping services outstripping supply. and, in 2020-21, some of our major
ports even reported record throughput.
In Australia, these disruptions and
But when shortages triggered panic
higher costs have been driven by a Volumes at Port Botany increased 11
buying in the early days of the pandemic,
combination of factors, including more per cent to a record 2.7 million 20-foot
supply chains and our reliance on
demand for imported containerised equivalent units. We also saw Port
maritime transport moved to the front of goods, international terminal closures
people’s minds. Hedland grow exports of iron to 546.1
due to COVID-19, landside container
congestions, industrial disputes and million tonnes worth $153 billion.
COVID-19 has highlighted the complex
workings of the shipping industry – a adverse weather events. Importantly, Australia’s exporting
sector that generally operates quietly Australia has adjusted to the challenging businesses continued to send their
and efficiently in the background, global commercial environment and products overseas, which is so
bringing goods in and moving can be proud of how well it has fared important for our economy.
commodities out.
The pandemic has shone a light on the
fallibility of supply chains in today’s “just
in time” economy.
Australians across the length and
breadth of our country now have a
greater appreciation of the role the
shipping industry plays in supplying the
products we rely on – from essential
goods like food, fuel and medicines
to electronic products, cars and
construction materials.
The full extent of the shipping industry’s
contribution to our economy – and social
wellbeing – is significant.
Australia is the fifth largest user of
shipping services in the world. Close to
99 per cent of the volume and 80 per
cent of the value of our international
goods trade is moved by sea.
In 2020-21, the combined dollar value of
Australia’s goods trade by sea totalled
approximately $575 billion.
Meeting at the Commonwealth Parliamentary Office, Sydney - 2 March 2022
L to R – The Hon Barnaby Joyce (Deputy PM) and Paul Zalai (FTA/APSA)
4 I Edition One 2022 I Across Borders
Australia is the fifth largest producer and The shipping industry stepped up in constraints and technology uptake at
second largest exporter of coal – with record time to assist and enable the Australia’s ports and in related transport
export earnings totalling $63.9 billion freight movements that kept the economy networks.
in 2019. During the pandemic, the moving while the rail corridor was repaired
I would like to thank the Freight & Trade
shipping industry continued to support – allowing Australian businesses to stay
Alliance / Australian Peak Shippers
our mining and agricultural businesses – open and Australian consumers to get the
Association for providing a submission
essential goods they needed.
again resulting in record-breaking export to the inquiry and raising issues affecting
earnings. As a temporary measure, I issued an members.
exemption under the Coastal Trading
We are the world’s biggest exporter of (Revitalising Australian Shipping) Act 2012 The Australian Government looks forward
liquefied natural gas and in 2021 our to enable shipping of domestic cargo to to receiving the Productivity Commission’s
shipments reached a record high of 80.9 and from WA without a coastal trading report later this year and will carefully
million tonnes. licence. consider changes that can be made to
improve the efficiency of our maritime
Impressively, Australia’s resource and Australia’s shipping sector has shown logistics system.
energy export earnings are on track to incredible resilience during the COVID-19
reach a record $379 billion in 2021-22. pandemic, but the Australian Government
recognises that it has presented
Without ships, we wouldn’t be able opportunities to address the broader
to send these products overseas and
we wouldn’t be generating the export
issues affecting our nation’s logistics The pandemic
system and supply chains.
income that helps pay for the services all
As a first step, we have acted on calls
has shone a light
Australians rely on.
from industry to review the issues affecting on the fallibility of
The shipping industry also provided a productivity by tasking the Productivity
lifeline earlier this year when a once- Commission to undertake an independent supply chains in
in-200-year flooding event knocked review to examine Australia’s maritime
logistics system.
today’s “just in time”
out the rail freight corridor to Western
Australia. The disruption to land transport To help assess the overall competitiveness
economy.
movements was significant, once again of our ports, the inquiry will focus on
demonstrating the importance of resilient identifying operational cost drivers,
supply chains. including industrial relations, infrastructure
www.agsworld.com
AGS WORLD TRANSPORT NEUTRAL SCREENING
FACILITIES – YOUR SOLUTION TO THE GLOBAL
TRANSPORTATION PUZZLE
Edition One 2022 I Across Borders I 5
JOIN THE ALLIANCE
2022/23 Membership Benefits
ADVOCACY - Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) are
the leading industry bodies representing the international trade and logistics sector. This is achieved
by bringing together importers, exporters and logistics providers to form an influential advocacy body.
Importantly, we also ensure that members are at the forefront of all emerging supply chain issues through
our responsive operational support, professional development training, industry updates, commercial
services and corporate events.
REAL TIME SUPPORT – FTA Premium Members have real-time designed specifically for customs brokers and forwarders; a letter
access to our support services as an extension of your operational explaining the Terms & Conditions; a template credit application; a
team – through our extensive network and access to key personnel letter of authority; a credit application and guarantee; letter for use to
across government and commerce, we can assist businesses with customers introducing the new terms and conditions; ACCC Court
operational matters. Action Trading Terms Case; and updates to the documents due to
LEGAL SUPPORT – Providing legal counsel to FTA is Customs legal developments (all proforma documents are provided in Word
Global Trade Law (CGT Law) and Mills Oakley for APSA. FTA format).
members are eligible to receive up to 30 minutes free legal support
per issue from CGT Law. INSURANCE SUPPORT – FTA Premium members receive free
insurance review & support from Logical Insurance Brokers.
TERMS & CONDITIONS – Exclusive to FTA members, for the
one off payment of $825 (incl GST) receive from CGT Law a clear, WORKPLACE / HR CONSULTANCY – FTA Premium Members
concise and legally robust set of trading terms and conditions receive hotline support via Employsure.
CONTINUING PROFESSIONAL DEVELOPMENT (CPD
discounts apply to FTA members to attend our one-day conferences
to assist customs brokers in meeting their annual licensing obligations.
Each event provides participants with 24 CPD points towards the annual
requirement of 30 in the licensing period of
1 April 2022 to 31 March 2023.
2022 / 23 LICENSING PERIOD CONFERENCES
Friday 6 May 2022- Novotel Brighton Beach Hotel, Brighton Le-Sands
Saturday 7 May 2022 - Novotel Brighton Beach Hotel, Brighton Le-Sands
Friday 20 May 2022 - Hyatt Place, Essendon Fields
Saturday 21 May 2022 - Hyatt Place Essendon Fields
Wednesday 15 June 2022 - Novotel Brisbane Airport
Saturday 25 June 2022 - DoubleTree by Hilton Perth Waterfront
EARLY BIRD REGISTRATION SPECIAL PACKAGE
Member Early Bird Registration - $297 (incl GST) provides you
with a unique 30+ CPD points including Continued Biosecurity
Competency (CBC) as prescribed by the Department of Agriculture,
ACROSS BORDERS MAGAZINE – Water & the Environment.
we supply members a FREE member magazine providing expert
commentaries on emerging trade and government reforms (both in • attendance at one of the above listed CPD Border Compliance
hard copy and electronically). Program events – 24 CPD points
ALERTS – our webinars, podcasts, daily notices (some content • complimentary access to mandatory Continued Biosecurity
password protected) and weekly report keep members at the cutting Competency (CBC) online via ComplianceNetFTA.com.au ; and
edge of operational matters, reforms and advocacy activity.
• complimentary access to a further 6 CPD points in Stream A via
ComplianceNetFTA.com.au
REGISTER NOW at www.ftalliance.com.au/upcoming-events
6 I Edition One 2022 I Across Borders
NOTE: The Department FTA Premium Membership is open to customs brokerages,
of Agriculture, Water and freight forwarders, Section 77G Depots and Approved
the Environment reserves Arrangement premises.
the right to add additional
mandatory CBC sessions
during the accreditation • FTA’s Premium Membership rates are based on a scale of
period should they be employees within a business / per ABN.
required.
• Annual fee from time of subscription
• Membership pricing effective 1 July 2021 (includes GST)
ONLINE CPD / CBC – we offer extensive material via
ComplianceNetFTA with courses, resources and online
assessment available at listed prices. FTA members are offered
unlimited CPD and CBC content for $165 (incl GST) per person Less than 10 employees $880
per accreditation period (1 April to 31 March). Less than 30 employees $1,265
APPROVED ARRANGEMENTS / Less than 50 employees $1,595
DEPOT / RACA –
we have partnered with Andrew Less than 100 employees $1,925
Christie Consulting to provide More than 100 employees $2,475
advocacy support to our newly
formed Biosecurity Treatment Provider
Reference Group (BTPRG). Further discounts are offered for online CPD / CBC
AA, Depot and RACA application registrations to businesses with six (6) or more registrations,
services available – price on with the option for an all-inclusive invoice for membership and
application. training – price on application to czalai@FTAlliance.com.au
WISETECH ACADEMY –
FTA company member discounts apply FTA Individual Membership: $264 (1 April to 31 March) - is
for a wide range of high quality, cost effective courses provided available to any licensed customs broker whose company
by the WiseTech Academy, including: does not hold FTA Premium Membership providing access to
all online CPD / CBC courses and member discounts (1) to
• Approved Arrangement accredited training to manage onsite attend our annual one-day conferences and (2) for the use of
biosecurity risks. BorderWise Software.
• Section 77G Depot training to ensure all staff understand and
meet licensing conditions.
FTA Importer Membership & APSA Exporter Membership:
• Safe Container Loading Practices and Chain of Responsibility $2,200 per annum
As a Registered Training Organisation (RTO 45574), the
WiseTech Academy provides:
Biosecurity Treatment Provider Reference Group
• TLIX0008 Comply with biosecurity border clearance (BTPRG) Membership: $2,200 per annum
(prerequisite training for NCCC and AEPCOMM Approved
Arrangements)
• TLI50816 Diploma of Customs Broking Affiliate Membership: $2,200 per annum - for businesses
and regulatory bodies affiliated with the international trade
WOMEN IN LOGISTICS – is an initiative to support and
sector. Included as Affiliate Members are transport operators,
facilitate opportunities for networking and professional/personal
law firms, software providers and government agencies - a
development for women in the supply chain sector with all profits
unique opportunity to join the growing alliance as a valued
going to charity.
member of the Australian freight and trade community.
BORDERWISE –
FTA members receive a significant
discount on the use of BorderWise Sponsorship – as per our prospectus, FTA and APSA offer a
– easy access to comprehensive wide range of online media and events which provide unique
customs reference materials used opportunities for entities wishing to engage with the freight and
by trade professionals to correctly trade sectors.
classify goods and meet regulatory
requirements at the border for
import and export declaration
reporting.
Membership forms are available at the
Note: Member discounts are itemised at our ‘Featured Sponsor’
link available from the FTA home page at www.FTAlliance.com.au JOIN THE ALLIANCE tab from the FTA
BRANDING – FTA provides members with access to its logo for
website at www.FTAlliance.com.au
use on stationery, email signatures & web sites.
For further detail, please contact us on
DIRECTORY – FTA provides members’ details on a directory
listing increasing access to new markets.
02 9975 1878 or info@FTAlliance.com.au
Edition One 2022 I Across Borders I 7
EXECUTIVE REPORT
TURN THE TIDE WITH
SHIPPING REFORM
By OLGA HARRITON, APSA Chair / Global Logistics Manager - Manildra Group
The COVID-19 pandemic is in its Trade is the beating heart of our great
third year and continues to cripple APSA and FTA nation. The efficient and effective delivery
the sea freight industry, severely have rightly of goods in-and-out of Australia is
paramount, while across the globe, the
disrupting global trade and pushing
supply chains towards breaking
assumed the role sea freight supply industry employs tens
of thousands of people in fields from
point. in leading the administration, transportation, logistics,
Significant delays, cancellations, a
charge, prompted operations, purchasing, customer service
and more. These men and women turn
lack of capacity with vessel space and by the supply chain up, day-in, day-out, 365 days a year,
equipment, landside logistics, and
waterfront industrial disputes, have all upheaval across and are without a doubt the soul of the
industry.
jeopardised the commercial viability of
many Australian exporters and importers.
the world. Despite these complex adversities,
Exacerbating this situation, is high men and women in our industry have
detention and demurrage charges. An industry that had plied the seas, largely mastered a “juggling act”, coordinating,
On our roads, trucking companies unnoticed by the public, had a target and delivering to customers around the
have fallen short of drivers, while our placed squarely on its back. world. Interacting with port terminals
warehouses have run out of space, and departments, liaising with quality
The Australian Peak Shippers Association
and small businesses and consumers assurance and packaging, interfacing
(APSA) and Freight & Trade Alliance
continue to pay sky-high freight costs as (FTA) have been relentless in calling on between stakeholders, ports, shippers,
the local transport and freight industry the Australian Competition & Consumer sales, and international customers – it’s a
impose increased costs to deliver goods Commission (ACCC) and state and mammoth feat. On behalf of our industry,
to ports. Commentators have likened federal governments to urgently intervene we thank you.
these logistics company impositions on in reviewing competition protections
transportation operators to “ransom”, On a positive note, we are delighted
given to foreign owned shipping lines, to confirm the APSA and FTA annual
leaving them with no choice but to pay the introduce regulation to prevent unfair cost
fees. conference will be held on 30 and 31
impositions on shippers and implement
August 2022 in Wagga Wagga, New
Ocean shipping rates are expected to stay substantial changes to ocean freight
South Wales. The conference will include
elevated well into 2022, setting up another legislation.
panel discussions with members, key
year of booming profits for global cargo APSA and FTA have rightly assumed stakeholders and rural exporters and
carriers, but leaving Aussie importers, the role in leading the charge, prompted has an aim to maximise networking
exporters and customers paying the price. by the supply chain upheaval across
Fully loaded ships idled off Port Botany for opportunities including a site tour of the
the world. Their knowledge, advice, Riverina Intermodal Freight & Logistics
weeks because of port congestion. and connections are second-to-none, (RIFL) Hub with a cocktail function to
and their motivation remains firmly on follow at the exclusive Riverine Club,
improving the ocean freight supply Wagga Wagga. Thank you to all the
chain, ensuring real commercial value to
generous sponsors and to find out more
Australian businesses, industries, and job
information about the conference, email
creation.
admin@auspsa.com
On behalf of the industry, with APSA and
FTA’s unrelenting advocacy, we welcome I look forward to seeing you all later in the
the Federal Government’s Productivity year and wishing you good health and
Commission’s independent review into support.
long term structural issues impacting
the productivity of Australia’s maritime
logistics systems. This review will serve
to “turn the tide,” and help restore and
secure Australia’s trade for all exporters
and importers large and small.
8 I Edition One 2022 I Across Borders
FTA / APSA
SUBMISSION TO
THE PRODUCTIVITY
REVIEW – AUSTRALIA’S
MARITIME LOGISTICS
SYSTEM
SUMMARY OF RECOMMENDATIONS
RECOMMENDATION 1 (shipping competition review) – repeal of Part X of the Competition and Consumer Act 2010, with retention
of shipper collective bargaining provisions, leaving two options:
(1) foreign owned shipping lines to operate in line with competition laws faced by other businesses involved in Australian commerce;
or
2) if deemed necessary for foreign owned shipping lines to have ongoing protections, expand the role of the ACCC (or introduce
a federal maritime regulator) to administer processes to safeguard exporter and importer’s interests, in particular, monitoring the
appropriateness of shipping line (and contracted stevedore / empty container park) surcharges, fees and penalties.
RECOMMENDATION 2 (minimum service levels and notification periods) – introduction of an appropriate regulatory framework that
provides exporters, importers and freight forwarders safeguards against ‘exclusive dealings’, ensuring minimum service levels and
prescribed variation notification periods (minimum 30-day notice as per US regulation).
RECOMMENDATION 3 (infrastructure investment) – increase investment in infrastructure to address inefficiencies in the supply
chain caused by larger ships, lack of rail access to Australian container ports and shortage of space in empty container parks.
RECOMMENDATION 4 (regulation of Terminal Access Charges) – the scope of the National Transport Commission (NTC) review
of Terminal Access Charges be expanded to examine the potential of regulation to force stevedores (and empty container parks) to
cost recover directly against their commercial client (shipping line) rather than via third party transport operators.
RECOMMENDATION 5 (regulation of container detention practices) – the need for federal government action and potential
regulation, similar to US Federal Maritime Commission (FMC), to ensure reasonable container detention policies are administered.
RECOMMENDATION 6 (waterfront industrial relations reform) – the Federal Government to initiate a formal waterfront industrial
relations review to provide immediate and future business continuity for what is an ‘essential service’ and our international gateway
for major supply chains.
RECOMMENDATION 7 (implementation of Biosecurity reform priorities) – ongoing engagement and reporting between the
Department of Agriculture, Water and the Environment and industry to achieve the four reform priorities identified in the Inspector-
General of Biosecurity (IGB) report Adequacy of department’s operational model to effectively mitigate biosecurity risks in evolving
risk and business environments being:
(1) Regulatory maturity;
(2) Risk pathway partnership;
(3) Frontline focus; and
(4) Sustainable funding model.
RECOMMENDATION 8 (extension of IFAM funding) – the Federal Government should allocate additional funds to maintain
the International Freight Assistance Mechanism (IFAM) and / or similar financial relief measures to support the air cargo supply
chain sector until the end of 2023 (at minimum), with actual allocation of funds subject to periodic reviews pending the return of
international passenger flight services
Edition One 2022 I Across Borders I 9
EXECUTIVE REPORT
The fate of agriculture and regional
economies at the mercy of
international freight supply chains
By ASH SALARDINI, Chief Economist & General Manager Trade –
National Farmers Federation
Agriculture the lynchpin of regional
economies
Agriculture underpins the economies of
most of Australia’s regional areas, and
agriculture is generally in the top three
industries in terms of contribution to
regional gross value of product. It is a
$75 billion industry that is fundamentally
reliant on regional and rural Australia,
with ambitions of becoming a $100
billion industry by 2030.
The opportunities that agriculture
provides go beyond the farmgate
and can be utilised to supercharge
regional Australia. There are significant
opportunities to collocate food
processing and manufacturing close to
the point of food production, not near
the markets and economic infrastructure
of capital cities.
These opportunities are all predicated
on the ability to access international
markets, with over 75% of farmgate
output being exported.
However, our international freight supply
chains are a source of disadvantage in
global markets. As an example, it costs
the same to ship a container of grain
from South Australia to Indonesia as it
does from Canada to Indonesia. This
is despite the Australian journey being
some 10,000 km shorter (one-third the
journey as compared to Canada).
Photo taken by Billy Forrester
The role of ports, shipping and
freight The freight sector is made up of diligent Australia has one of the highest landside
Given the export orientation of the and hardworking individuals and freight costs in the world. The cost of
agricultural sector, all these opportunities organisations that ensure Australians landside-transport and logistics in the
are reliant on effective, reliable and are clothed and fed, and businesses, pre-pandemic world represented more
affordable freight transport to move such as farmers, can get their goods than 35% of the final price of grains,
these goods to port, and then onto to domestic and international markets.
while landside freight costs represented
international markets. The current state The problems associated with the cost
two thirds of total freight costs for the
of our freight and logistics system acts and reliability of freight movements, is a
systemic one that is beyond the action export of vegetables, such as beetroot.
as a major barrier to seizing these
significant opportunities, and kickstarting or inaction of any one individual or This lack of affordability and reliability
the agricultural-led regionalisation organisation within government or the acts as a major barrier to international
agenda. freight supply chain. competitiveness.
10 I Edition One 2022 I Across BordersThe situation is equally challenging for increased access to containerised freight • implementing broader policy and
port-side freight movements. There has services to NSW grain growers and put regulatory reforms that stifle a truly world-
been a significant escalation of port-side downward pressure on port infrastructure class freight supply chain, including a
infrastructure charges. As an example, costs. more robust competition policy framework
stevedoring costs have increased 30- governing ports and stevedores;
fold over a four-year period! Coastal Containerisation also provides greater
shipping regulations that reduce access to markets in Asia with shallow • industrial relations reforms to stamp
competition amongst service providers ports that are not amenable to bulk out the disruptions and inefficiencies that
not only increase the cost of freight but movements. are adding further cost to the system; and
damage the viability of coastal shipping as
The post-pandemic world has added yet • working with international partners
compared to landside transport.
more cost into the mix, with the cost of to ensure that the market for international
The provision of port infrastructure international shipping increasing by 300- shipping remains competitive and does
suffers a similar fate. As an example, 500% in little over 18 months. not descend into cartel-like behaviour.
restrictions placed by state government
on the development of a container facility The solution
at the Port of Newcastle to increase the Addressing these problems requires
sale price of the Sydney Ports assets more than just investing in new transport
has come at the expense of freight infrastructure, which is only one element
users, such as farmers. A container to the solution. It requires:
port facility at Newcastle would have
provided significant increased capacity • Integrated transport, energy,
and competition for the provision of telecommunications and water
containerised freight movements, infrastructure planning;
FTA WELCOMES SALLY BEETON
Freight & Trade Alliance (FTA) is delighted Sally will manage the ComplianceNetFTA
to announce the recent appointment of online training platform, with particular
Sally Beeton in a newly created role of focus on enrolments, members support and
Membership Support Services – Training. government reporting. Sally is here to assist
Sally has an extensive career across you, “I aim to provide a friendly approach to
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strong administration and communication Caroline Zalai, co-founder and Director
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customs broker compliance training to organisation’s fast growing member base
assist members with their annual Continuing and needs.
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Sally Beeton – FTA Member Support Continued Biosecurity Competency (CBC)
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Edition One 2022 I Across Borders I 11APSA
APSA CONFERENCE
CONFERENCE
WAGGA
WAGGA WAGGA
WAGGA NSW
NSW
30 &
22
22 31 FEBRUARY
& 23
23 AUGUST 2022
FEBRUARY 2022
2022
REGISTER AT WWW.FTALLIANCE.COM.AU/UPCOMINGEVENTS
REGISTER AT
APSA CONFERENCE
WWW.FTALLIANCE.COM.AU/UPCOMINGEVENTS
WAGGA WAGGA NSW
TUESDAY
TUESDAY22
Patrick Hutchison [CEO, Australian Meat Industry
30FEBRUARY 2022
AUGUST 2022
Council (AMIC)]
SESSION 3 – INNOVATION (Session Sponsor: Department of
SESSION 3 –Water
Agriculture, INNOVATION (Session Sponsor: Department of
and the Environment)
22 & 23 FEBRUARY
TUESDAY 22 FEBRUARY
• APSA ANNUAL GENERAL MEETING (members only)
2022
2022
David Ironside [Assistant Secretary Plant Exports Operations
SITE TOUR – Riverina Intermodal Freight & Logistics (RIFL) Hub &
Agriculture, Water and the Environment)
BEST PRACTICE CASE STUDY
BEST PRACTICE CASE STUDY
•Plant
Danielle
SITE TOUR FUNCTION
– Riverina Intermodal Freight & Logistics (RIFL) Hub & and O’Connor
Animal Exports [Group Division
Exports Logistics
– DepartmentManager, of Teys
Agriculture,
WELCOME • Danielle
Australia]O’Connor
- creation [Group Exports
of an agile Logistics to
environment Manager,
deal withTeys the
•WELCOME
RIVERINA INTERMODAL FREIGHT & LOGISTICS (RIFL)
FUNCTION Water and the Environment]
Australia] - creation
ever-changing worldofofan agile environment
international trade. to deal with the
HUB SITE TOUR Arthur Spellsonworld
ever-changing [Cotton Manager trade.
of international Australia, ADM Trading
WEDNESDAY 23 FEBRUARY 2022
REGISTER AT WWW.FTALLIANCE.COM.AU/UPCOMINGEVENTS • David Ironside [Assistant Secretary Plant Exports Operations
WEDNESDAY 23 FEBRUARY 2022 •Australia,
David Director,
Ironside Australian
[Assistant Cotton
Secretary
Plant and Animal Exports Division – Department PlantShippers Association (ACSA)]
ExportsofOperations
Agriculture,
• WELCOME FUNCTION
Plant
David and
WaterAlpen Animal
and the Exports
[Regional
Environment] Division
Operating –
– increased Department
Officer ANZ atAgriculture,
compliance of Treasury
with
OPENING & WELCOME TO COUNTRY
OPENING & WELCOME TO COUNTRY Water
Wine and
Estates]
verseas the Environment]
phytosanitary – increased
requirements, compliance
Congestion with
Busting
• Olga Harriton [Chair,WEDNESDAYAustralian Peak31 AUGUST 2022
Shippers Association SESSION
verseas
funding,
3 – INNOVATION
phytosanitary
investment and
(Session Sponsor:
requirements,
trade Congestion
facilitation
Department
initiativesBusting of
• (APSA),
Olga Harriton
Global[Chair, Australian
Logistics Manager Peak TUESDAYGroup]
Shippers
– Manildra 22 FEBRUARY 2022
Association The Hon. Michael
Agriculture, Water McCormack
and the Environment)[Member for Riverina,
funding, investment and trade facilitation initiatives
(APSA), Global Logistics Manager – Manildra Group] • Patrick Hutchison [CEO,
CASEAustralian Meat Industry Council
the (RIFL) Hub•NSW] INVITED
BEST PRACTICE STUDY
• Aunty Isabel Reid [NSW State Recipient
– RiverinaSenior Australian
Freight &of Patrick
CONFERENCE
• Aunty Isabel ReidPANELLISTS
[NSW
SITE TOUR
State Recipient
Intermodal
Senior Australian of
Logistics
the • Hutchison
& (AMIC)] [CEO,
Danielle O’Connor Australian
[Group Meat Industry
Exports Logistics Manager,Council
Teys
Year 2021] WELCOME FUNCTION Gina Cass-Gottlieb
(AMIC)] [Chair,
Australia] - creation Australian
of an agile Competition
environment to deal with the and Consumer
Year 2021] • Tony Geitz [MD, Australia- Louis Dreyfus Company / Australian
Stephen King [Commissioners, Productivity Commission] •Commission
Tony Geitz – INVITED]
ever-changing
[MD,
world of international trade.
Australia- Louis Dreyfus Company / Australian
KEYNOTE ADDRESS WEDNESDAY 23 FEBRUARY 2022
Cotton Shippers Association (ACSA)]
• David Ironside [Assistant Secretary Plant Exports Operations
KEYNOTENicholls
ADDRESS Cotton Shippers AssociationDivision
(ACSA)]
• The Hon. Michael[General
Georgia Manager – Rail Freight,NSW] Australasian • David Alpen [Regional Operating Officer ANZ atof Treasury Wine
Plant and Animal Exports – Department Agriculture,
WELCOME FUNCTION
McCormack [Member for Riverina, - MAJOR SECRETARIAT
• The
Railway Hon. Michael McCormack [Member for Riverina, NSW] - • David Alpen
Water [Regional Operating
and the Environment] Officer compliance
– increased ANZ at Treasury
with Wine
InlandAssociation] Estates]
OPENING & WELCOME TO COUNTRY
Rail, priorities for regional centres verseas phytosanitary requirements, Congestion Busting SPONSOR
Inland Rail, priorities for • regional centres
Olga Harriton [Chair, Australian Peak Shippers Association Estates]
funding, investment and trade facilitation initiatives
Shaun Mooney [Executive General
(APSA), Manager
Global Logistics Commercial,
Manager – Manildra Group]
• Patrick Hutchison [CEO, Australian Meat Industry Council WELCOME FUNCTION
INFRASTRUCTURE (Session Sponsor: Port of Melbourne) MAJOR (AMIC)]
SPONSOR RIFL SITE TOUR
Port of Melbourne]
INFRASTRUCTURE
• Aunty Isabel Reid [NSW State Recipient Senior Australian of the
(Session Sponsor: Port of Melbourne) WELCOME FUNCTION
SPONSOR
• Georgia Nicholls [General Manager
Year 2021] – Rail Freight, Australasian MAJOR SPONSOR RIFL SITE TOUR
• Georgia Nicholls [General Manager – Rail Freight, Australasian RIFL INTERMODAL SITE TOUR SPONSORS
• Tony Geitz [MD, Australia- Louis Dreyfus Company / SPONSOR
Australian
Railway
Darren Association][Director Strategy Freight Branch,
McNamara Cotton Shippers Association (ACSA)]
Railway Association] KEYNOTE ADDRESS
• Port of Melbourne
Transport for NSW] • The Hon. Michael McCormack [Member for Riverina, NSW] - • David Alpen [Regional Operating Officer ANZ at Treasury Wine
• Port of Melbourne Estates]
• Transport for NSW Inland Rail, priorities for regional centres
Lee Schmelich
• Transport for NSW [Country Manager Australia, Visy Logistics]
• Justin Bond [Committee Member, Australian
INFRASTRUCTURE (Session Peak Shippers
Sponsor: Port of Melbourne) MAJOR SPONSOR
SESSION SPONSORS
RIFL SITE TOUR
WELCOME FUNCTION
•
Max Justin Bond
Association
Kruse [Head [Committee
(APSA), of Head Member,
of Global
Commercial
• Georgia Australian
&Logistics
Nicholls Sales Peak Shippers
and Customer
[GeneralIntermodal
Manager – Rail -Freight,
IMEX, Australasian SESSION
SESSION SPONSORS
SPONSORS SPONSOR
Association
Service, (APSA), Head
SunRice] of Global
Railway Logistics and Customer
Association]
Pacific National]
Service, SunRice] • Port of Melbourne
• Mark Owens [National Transport and Logistics Manager,
Mark
• Mark Owens
Owens
Manildra Group][National
[National Transport
•Transport
Transport for and
andNSW Logistics
Logistics Manager,
Manager,
Manildra
Manildra Group]
Group] • Justin Bond [Committee Member, Australian Peak Shippers GOLD SPONSORS
SESSION SPONSORS
Association (APSA), Head of Global Logistics and Customer GOLD SPONSORS
SESSION 2Mason
Campbell – PORTS AND
[GM SHIPPING
Service,
Commercial
SunRice](Session Sponsor: NSW Ports)
and Business Development,
SESSION 2 – PORTS AND SHIPPING
• Mark (Session
Owens [National Sponsor: NSW Ports)
• Paul
NSW Ports]Zalai [Director, Freight & Trade
Manildra Group]
AllianceTransport
(FTA) /and Logistics
Secretariat Manager,
• Paul Zalai [Director, Freight & Trade Alliance
Australian Peak Shippers Association (APSA)] - Productivity (FTA) / Secretariat GOLD SPONSORS
Australian
Patrick Chan
Commission Peak
[ChiefShippers
Inquiry into Association
Commercial
Vulnerable (APSA)]
Officer,
Supply - Productivity
Victorian
Chains International SILVER SPONSORS
Commission
SESSION 2 – PORTS AND SHIPPING (Session Sponsor: NSW Ports)
Inquiry into Vulnerable Supply Chains SILVER SPONSORS
Container Terminal SILVER SPONSORS
• Ron Grasso [Lead,(VICT)]
National
• Paul Guidelines
Zalai [Director,on Stevedore
Freight & Trade Alliance (FTA) / Secretariat
• Ron Grasso [Lead,
Infrastructure National
and Access Guidelines
Australian
Charges, on Stevedore
PeakNational
Shippers Association
Transport(APSA)] - Productivity SILVER SPONSORS
Jason McGregor
Infrastructure
Commission] –and [ANL
Access
terminal & CMA
Commission
Charges,
access CGMInquirySales
National
charges Director
into Vulnerable
via aTransport
voluntary Australia]
Supply
port
Chains –
global and domestic
Commission]
performance – terminal
model forecasts
• access charges via a voluntary port
Ron Grasso [Lead, National Guidelines on Stevedore
BRONZE SPONSORS
Infrastructure and Access Charges, National Transport
performance model BRONZE SPONSORS
• Campbell Mason
Kurt Wilkinson [Vice Chair [GM Commercial
Commission] and
Australian Business
– terminal
Peak access Development,
charges via a voluntary port
Shippers BRONZE SPONSORS
• Campbell
NSW Ports] Mason [GM
– port and Commercial and
performance model
intermodal Business
connectivity Development, BRONZE SPONSORS
Association
NSW Ports] (APSA),
– port and Fletcher International
• intermodal
Campbell connectivity
Mason Exports)]
[GM Commercial and Business Development,
• Patrick Chan [Chief Commercial NSW Ports] Officer,
– port andVictorian
intermodalInternational
connectivity
Justin Bond
• ontainer
Patrick Chan [Committee
[Chief
Terminal Member,
Commercial
(VICT)]
• Patrick Australian
Officer,
Chan [Chief
VictorianPeak
Commercial Shippers
International
Officer, Victorian International
ontainer Terminal
Association (APSA), (VICT)] ontainer
• Andrew Fairley [ANLHead& CMA ofCGM
Global
TerminalLogistics
Sales Directorand
(VICT)] Customer
Australia] – STRATEGIC SPONSOR
STRATEGIC SPONSOR
Service, STRATEGIC
STRATEGICSPONSORS
SPONSOR
global SunRice]
• Andrew Fairley
and domestic[ANL & •CMA
Andrew
forecasts CGM Sales
Fairley [ANL Director
& CMA CGM Australia] – Australia] –
Sales Director
global and domestic forecasts global and domestic forecasts
• Kurt Wilkinson
Danielle O’Connor [Vice[Group
Chair
• KurtAustralian
Exports Peak Shippers
Logistics
Wilkinson [Vice Chair Association
Manager,
Australian Peak Shippers Association
• (APSA),
Kurt Wilkinson
Fletcher [Vice Chair
InternationalAustralian
(APSA), FletcherPeak
Exports] Shippers
International Association
Exports]
Teys Australia]
(APSA), Fletcher International Exports]meetinnsw.com.au
SHIPPING
NITL: Elevating the
Shippers’ Voice
By LORI FELLMER, Vice President Logistics and Carrier Management - BassTech International |
Chair of the Ocean Transportation Committee – National Industrial Transportation League
The National Industrial Transportation carriers having deeply participated in transportation network that was failing
League (NITL) has a legacy of advocacy the extensive stakeholder sessions that them and looming concern about the
for US shippers and works tirelessly led to the Commission’s conclusion. As inflationary impact of these events, we
to earn the label “The Shippers’ Voice US businesses navigated through the witnessed tremendous activity around
Since 1907”. As a founding member pandemic and dealt with unprecedented supply chain issues by our federal
of the Coalition for Fair Port Practices, congestion in our US ports crippling the government here in the US. In June,
established to confront unreasonable flow of goods, ocean carriers continued the FMC announced a new National
practices surrounding demurrage and to charge shippers and their trucking Shippers Advisory Committee whose
detention billing, NITL was instrumental partners record breaking amounts function is to advise the FMC “on
in the Fact Finding 28 initiative of the of demurrage and detention. This policies relating to the competitiveness,
Federal Maritime Commission (FMC) behaviour was the brazen offence that reliability, integrity, and fairness of the
that eventually resulted in the May propelled a movement throughout the international ocean freight delivery
2020 issuance of an Interpretive Rule. US shipper community calling for reform system.” In July, following a 3-month
While not carrying the imperative of of the fundamental piece of legislation study by a specially formed Supply Chain
a regulation, the Interpretive Rule governing US shipping, the Shipping Act Task Force, President Biden issued an
clearly and comprehensively outlined of 1984 (the Act). Executive Order promoting competition
the relevant behaviour and practices in American markets, highlighting
In May of 2021, the NITL issued a consolidation in the ocean container
that the Commission, if faced with a
proposal that outlined specific language shipping industry and encouraging the
complaint, would consider unreasonable
for modification of the Act, addressing FMC to “vigorously” address unjust
and therefore unlawful. Unfortunately,
not only demurrage and detention but and unreasonable practices related to
the rulemaking has not resulted in
also a collection of other concerns in the demurrage and detention. Immediately
changes to practices despite ocean
ocean transportation network that had thereafter, our Department of Justice’s
been long-plaguing US shippers and had Antitrust Division and the FMC signed
become magnified during the pandemic. the first interagency Memorandum of
The Act was last reformed in 1998, when Understanding to foster cooperation
the top ten ocean carriers controlled less and communication between the
than 40% of the global market. Compare agencies to enhance competition in
that with today, when three carrier the maritime industry. By August, our
alliances, which operate with antitrust House of Representatives introduced
immunity, control more than 80% of a bill, the Ocean Shipping Reform Act
the market and it is no surprise that the of 2021 (OSRA21), which included the
existing laws are proving inadequate NITL’s May proposal items and more. In
to ensure that US businesses have February of 2022, our Senate introduced
access to reliable and economical ocean their version of an Ocean Shipping
carriage. Reform Act. While the two versions of
OSRA have differences, they both offer
As the summer of 2021 progressed, the
meaningful improvements to the Act that
reliability of ocean services continued
will enable it to better govern the ocean
to spiral to new lows while freight rates
transportation environment of today.
sky-rocketed to astronomical heights.
With a spotlight trained on the suffering A primary feature of both bills is
supply chains of US businesses and the intention to convert the FMC’s
the associated product shortages, Interpretive Rule of Demurrage and
US exporters struggling to serve their Detention into law. The concept is further
overseas sales because of an ocean expanded to address the untenable
14 I Edition One 2022 I Across Bordersposition of the shipper and trucker Commerce Commission and the United
communities who are today unreasonably Kingdom Competition and Markets
burdened by excessive administration to Authority that is focusing on global supply
dispute inappropriately billed demurrage chain collusion.
and detention fees. Both bills offer relief by
“It is impossible to know where this
requiring carriers to certify the accuracy of
path will take us, but it is clear that our
their demurrage and detention invoices,
government has heard the voice of our
offer access to the FMC for dispute
shippers and is responding accordingly.
resolution, lay the burden of proof on the
It is encouraging and reassuring to
invoice issuing carrier and enable the FMC
know that it is not only US businesses
to order refunds for wrongfully billed fees.
but colleagues the world over who are
Beyond demurrage and detention speaking up about what has become
issues, the bills enhance the current list an unworkable and unacceptable ocean Late news
of prohibited acts as found in the Act to transportation system and their governing
prohibit discriminatory practices more bodies are also responding,” stated As this article is being submitted there
specifically as they relate to the vessel Nancy O’Liddy, Executive Director of is a rapidly developing issue. The White
space accommodation for shipments. The NITL. “Hopefully, some balance will be House had issued a Fact Sheet entitled
House bill goes further by, for example, returned so that all businesses will once “Lowering Prices and Leveling the Playing
requiring minimum service standards for again have the opportunity to prosper with Field in Ocean Shipping” which included
ocean carriers. NITL continues to push some comfort that their ability to rely on a statement that President Biden is
for passage of a final bill, but whichever common carriage for the ocean export calling for robust reforms to the ocean
version of OSRA moves forward, it is and import of their goods has some shipping industry, including reforms that
likely that the details of these provisions measure of dependability.” address the current antitrust immunity for
designed to improve reliable access to ocean shipping alliances. The President
ocean services will require a rulemaking further amplified his concerns during his
by the FMC, during which process input State of the Union Address on March 2,
from the shipping community and all where he announced, “a crackdown” on
stakeholders will be solicited. ocean carriers overcharging American
The most recent development from
A primary feature businesses and consumers while stating
our federal government is the joint of both bills is that “capitalism without competition
announcement from the DOJ Antitrust isn’t capitalism”. A Senate Commerce
Division and the FBI of an initiative “to the intention to Committee hearing on pending OSRA
legislation was held on March 3 and
deter, detect and prosecute those who convert the FMC’s Chairman Maffei and Commission Dye
would exploit supply chain disruptions
to engage in collusive conduct.” The Interpretive Rule answered probing questions by Senators,
Antitrust Division is “prioritizing any including about what authority the
existing investigations where competitors
of Demurrage FMC is lacking in order to further help
may be exploiting supply chain disruptions and Detention US businesses. The comments from
Committee Chair Sen. Cantwell suggested
for illicit profit.” The DOJ also advised
of their engagement in a global working into law that legislation to strengthen the authority
group with the Australian Competition and of the FMC is forthcoming and that
Consumer Commission, the Canadian antitrust immunity for the ocean carriers
Competition Bureau, the New Zealand was under significant scrutiny.
Edition One 2022 I Across Borders I 15SHIPPING
Regional Australia
reaps the rewards of
a rich harvest
By CAMPBELL MASON, NSW Ports General Manager Commercial and
Business Development
Australia has harvested what will be
our most valuable winter crop ever.
That prediction by the Australian
Bureau of Agricultural and Resource
Economics comes as strong growing
conditions and booming commodity
prices are expected to help farmers
produce a record $81 billion in
agricultural output this financial year.
Much of that rich harvest was shipped
offshore, driving agricultural exports to a
high of $64 billion, according to the bureau’s
Agricultural Commodities Report. The
sector is reaping the rewards of decades
of productivity growth in a record-breaking Those essential regional rail links eliminate Further investment, by NSW Ports and
year, driven by bumper crop production and the double handling of containers by trucks, terminal operators, will be made to create
the highest prices for Australian agricultural reducing travel times and handling fees capacity to handle 3 million TEU (20-foot
produce in 32 years. while increasing supply chain efficiency for equivalent units) by rail annually. We also
exporters. welcome the investment by rail operators in
That combination of good seasonal
conditions and prices are a welcome reward new rolling stock to expand their carrying
As the seasons have turned around, the capacity.
for farmers after many years of toil, from trade through our ports has naturally grown.
wheat and cotton growers in northern NSW Bulk grain exports increased from 15,000 The future looks bright for the people
to wine producers and meat exporters in the and businesses of regional NSW, with the
tonnes in 2020 to 3.3 million tonnes in 2021
Riverina. establishment of major and much-needed
– an extraordinary and welcome increase for
NSW Ports is proud to be a vital link in the producers and all involved in the trade. The developments that will deliver significant
supply chain that brings such high-quality export of containerised grain also increased, benefits to local economies. Exciting new
Australian food and fibre to the world. more than sixfold, on the previous year. projects, such as the Riverina Intermodal
Freight and Logistics Hub and the Northern
We work closely with Australian agricultural As the nation’s only container port with NSW Inland Port, will bring even greater
exporters, from paddock to port, handling on-dock rail directly into each of its three connectivity for exporters in our invaluable
millions of tonnes of diversified trade through container stevedoring terminals, containers regional areas.
our key gateways at Port Botany and Port at Port Botany can be transported from
Kembla, supported by several intermodal paddock to port by rail and onto a ship We fully support such developments and
hubs in metropolitan Sydney, including our without needing to be transferred to a truck, applaud the work of governments and local
Enfield and Cooks River facilities. authorities to bring such projects to life. A
saving time and money for exporters and
strong agricultural sector makes the nation
Direct rail links and freight connections to businesses. Regular shipping services then
stronger, as the results of our record winter
our ports drive the export of Australia’s finest connect Port Botany to our key export
regional commodities to global markets, crop make clear. NSW Ports is proud to play
markets.
in the most efficient and sustainable way a part in helping our farmers reap such a
possible. Almost 90 per cent of regional To meet the growing demand for rail, NSW bountiful harvest.
NSW container exports through Port Botany Ports is investing more than $120 million to
travel to the port by rail. Port Kembla, the double rail capacity at the Patrick’s facility
designated location for NSW’s next container in Port Botany. This will deliver 33 per cent
terminal, handled more than 13 million faster turn-around times, more rail windows
tonnes of dry bulk product for export last for regional trains and decrease reliance on
year, much of which came to the port by rail. truck transportation.
16 I Edition One 2022 I Across BordersYou can also read
