Fracht Australia Newsletter September 2014
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"You can never cross the ocean until you have the courage to lose sight of the shore."

Christopher Columbus


• Following the tragic downing of flight MH17 over the Ukraine IATA joined with the International Civil Aviation Organisation (ICAO), Airports Council International (ACI) and the Civil Air Navigation Services Organisation (CANSO) in a declaration committing all parties to REVIEW PROCESSES FOR THE OVERFLIGHT OF CONFLICT ZONES.
• The US Federal Aviation Administration (FAA) has BARRED ALL AMERICAN AIRLINES FROM FLYING OVER SYRIA. The ban applies to all US registered planes, commercial operators and FAA-licensed pilots. In August the FAA also restricted US airlines and commercial operators from flying over Iraq.
• IATA has called on the VENEZUELAN GOVERNMENT TO FINALLY HONOUR THE COMMITMENT MADE IN MARCH TO PERMIT AIRLINES TO REPATRIATE USD 4.1 BILLION airline funds held in breach of international treaties. The risk of not being paid has reduced international capacity to / from Venezuela by 49% from peak services levels offered last year.
• Khazanah Nasional Berhad, the strategic investment fund of the Government of Malaysia has announced that it intends TO INCREASE ITS SHAREHOLDING IN MALAYSIA AIRLINES TO TAKE FULL OWNERSHIP and de-list the company from the Malaysian stock exchange. The process will take several months to complete and should not affect the airline’s services and schedules.
• The expansion of the Panama Canal which includes new locks is due for completion in 2015. This will increase the capacity of the canal from approx 12,000 ocean going vessels to almost 17,000. The maximum size of the vessels will increase from 4,400 TEUs (twenty foot equivalent units) to 12,600 TEUs. In view of the fact that THE INSURED VALUE OF THE GOODS TRANSITING THE CANAL WILL INCREASE BY UP TO USD1.25 BILLION PER DAY insurance companies will have to find solutions to manage the higher risk.
• CONFUSION REIGNS OVER AUSTRALIAN EXPORTS EN ROUTE TO RUSSIA after an embargo was announced by the Russian president Vladimir Putin on 6 August. Exporters may risk breaching their sales agreements for goods that have already been paid for by Russian importers . There may also be considerable additional costs for re-routing cargo to alternative destinations. To minimise the risk of rejection of cargo by the Russian Government it is important for exporters to liaise closely with their forwarder or shipping line at least 48 hours BEFORE THE CARGO ARRIVES AT THE LAST TRANSSHIPMENT PORT. Russia ranks number 28 on Australia’s list of export destinations.

• THAI AIRWAYS CHANGED COMPUTER SYSTEMS ON 1 AUGUST which created major problems with their tracking system. This unfortunately resulted in considerable delays and misdirection of some imports into Australia. We sincerely hope that the normal high standard of service will be restored very soon.
• QANTAS WILL START OFFERING DIRECT SERVICES BETWEEN DALLAS AND SYDNEY from 29 September. This is the longest commercial sector in the world which is made possible thanks to the additional range of the A380 aircraft. Previously the service was operated by B747 equipment via Brisbane.
• From 20 December QANTAS WILL OPERATE AN ADDITIONAL WEEKLY SERVICE TO HAWAII. This will bring the combined Qantas / Jetstar operations between Australia and Honolulu to 15 per week.
• QATAR AIRWAYS HAS ANNOUNCED ITS INTENTION TO PURCHASE FOUR NEW B777 FREIGHTERS with an option of 4 more. This is part of a potential USD 37.7 billion shopping spree for passenger and cargo aircraft.
• ACCORDING TO IATA FIGURES INTERNATIONAL AIRFREIGHT increased by 4.4% in the first 6 months of 2014 compared to the same period in 2013. The Asia Pacific region achieved a 4.5% growth. Considering that commercial aviation is now 100 years old, IATA has released some other interesting figures. Last year the industry carried more than 3 billion passengers and nearly 48 million tonnes of cargo on nearly 100,000 flights. The Asia Pacific region carried the largest number of passengers with 1.012 billion, followed by Europe with 826 million and North America with 819 million.

• MAERSK IS THE FIRST CARRIER TO ANNOUNCE SERVICE CANCELLATIONS FOR THE CHINESE GOLDEN WEEK HOLIDAY. The line plans to reduce capacity by approx 25% in week 41 to meet the expected decline in demand during the national holiday.
• CMA CGM PLANS TO LAUNCH A NEW JOINT SERVICE BETWEEN NORTH EAST ASIA, AUSTRALIA AND NEW ZEALAND in cooperation with CSCL, OOCL and PIL commencing from Shanghai in early November. The new service will be operated with seven vessels of 4,250 TEU capacity. Three will be provided by CMA CGM, two by OOCL and one each by PIL and CSCL.
• SWIRE SHIPPING ANNOUNCED THE LAUNCH OF A NEW BREAK BULK SERVICE BETWEEN JAPAN AND AUSTRALIA on a trial basis. The bi-monthly service will operate from Osaka and Yokohama to Brisbane, Newcastle, Port Kembla and Geelong. Initially the service will commence via a transhipping operation in New Zealand.
• Due to ongoing delays and CONGESTION IN ROTTERDAM’S ECT DELTA AND EUROMAX TERMINALS (Fracht July newsletter) Hapag Lloyd has switched several vessels to Antwerp and introduced a USD75.00 per TEU congestion surcharge on all cargo arriving and departing at the Dutch port on third-party feeder vessels.
• SHIPPING LINES FROM THE USA TO AUSTRALIA / NEW ZEALAND WILL IMPLEMENT A GENERAL RATE INCREASE of USD250.00 per TEU with effect from 1 October 2014. This will translate into a USD10.00 per cubic metre / 1,000 kilos increase for LCL cargo.
• Once again shipping lines FROM ASIA TO AUSTRALIA HAVE ANNOUNCED ANOTHER GENERAL RATE INCREASE of USD300.00 per TEU. The GRI from China, Hong Kong, Taiwan and Korea is planned from 1 September and from South East Asia from 15 September. Given that the market remains quite soft the level of the increase seems unachievable.

Premier Mike Baird officially opened the Sydney International Container Terminals Limited. SICTL, a fully owned subsidiary of Hutchinson Port Holdings invested more than AUD300 million in the facility which now employs approx. 160 people. Phase One of SCITL is now complete. It has added two additional 300-metre berths, 15 truck loading bays, two 300-metre rail sidings and has increased Port Botany’s annual capacity by more than 250,000 TEUs. Phase Two works have already started and six new stacking cranes are due to arrive in early 2015.


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