Fracht Australia eNewsletter March 2015
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eNews   March 2015

"You don't have to be great to start, but you have to start to be great."

Zig Zaler


More than 40 team members from all five Fracht Australia offices and representatives from the USA and New Zealand gathered over the last February weekend in North Sydney for our yearly national planning meeting. This year’s theme was “Building our Future”. As usual there was a strong focus on customer care. On Sunday the meeting culminated in an amazing “Helping Hands Program” team building workshop. We built 11 prosthetic hands which will be sent to 11 amputees in developing countries. This will make a genuine difference to the life of these people who have lost their hands due to landmines, accidents or illness. 


Fracht USA is enjoying excellent growth and Fracht Houston had to move into larger premises.
Please note the new details: 16701 Greenspoint Park Drive, Houston, TX 77060-2389.
All phone and fax numbers remain the same. Did you know that there are more than 30 project specialists in Fracht Houston’s project department? They thrive on very challenging, complicated, large and heavy project cargo.


  • QANTAS’ NEW EXPORT FUEL SURCHARGE effective 1 February 2015 is AUD 0.32 per kilo to the TC3 area (Asia/Oceania) and AUD 0.75/kg to the rest of the world.
  • In line with QATAR AIRWAYS’ AMBITION TO BE ONE OF THE WORLD’S MAJOR AIR CARGO PLAYERS the carrier has ordered four B777F full freighters at the 2014 Farnborough Airshow. Qatar already operates seven B777Fs.
  • Just before Christmas QATAR AIRWAYS TOOK DELIVERY OF THE WORLD’S FIRST A350 COMMERCIAL JET. The A350 is Airbus’ answer to the B787 Dreamliner and B777. These planes have much higher freight capacity than previous passenger jets. The A350 comes in three variants with cargo capacities of 24,500 to 31,300 kilos. Qatar has ordered a total of 80 A350s.
  • ACCORDING TO THE LATEST IATA FIGURES THE AIRFREIGHT MARKET ENDED 2014 on a positive note. Compared to 2013 international airfreight grew 4.8% and Asia Pacific traffic increased by 5.4%.


  • Oil prices are coming down and finally SHIPPING LINES ARE REDUCING THEIR FUEL SURCHARGES. Here are some of the latest BAFs (bunker adjustment factors): CMA CGM from Europe to Australia USD 333.00 per TEU (twenty foot equivalent unit) from 1 March 2015, Hapag Lloyd USD 250.00 per TEU from North East Asia to Australia effective 7 March 2015.
  • DUE TO THE REDUCTION IN OIL PRICES CONTAINER LINES NOW FACE A CONUNDRUM. For many years shipping lines resorted to “slow steaming” to reduce fuel comsumption because of constantly increasing oil prices and new ships were designed for slower speeds. The fuel prices have now reached a point where slow steaming no longer saves bunker costs but shipping lines are reluctant to increase speed. Why?? This could have a negative impact on supply and demand of shipping capacity when carriers are already struggling to maintain rate levels. It appears that some shipping lines on the Asia – Europe trade are now increasing speed by 1 – 1.5 knots. Wouldn’t it be nice for Australian importers to return to the good old times when transit times from Northern Europe were about a week faster!
  • Matson and Pacific Direct Line (PDL) have signed a “CONNECTING CARRIERS AGREEMENT” TO IMPROVE SERVICES IN THE PACIFIC ISLAND TRADES. This should result in better services for Fiji, Solomon Islands, Nauru, Vanuatu and Tonga.
  • HAMBURG SÜD IS STRENGTHENING ITS TIES WITH CMA CGM with the view of providing the market with more cost-efficient and innovative products in a number of trades around the world.



After more than nine months of negotiations the PMA (Pacific Maritime Association) and the ILWU (International Longshore and Warehouse Union) have finally reached an agreement on a new five year contract covering workers at all 29 West Coast ports. This is indeed excellent news considering that the congestion in these ports has reached levels even worse than the fallout of the infamous 2002 lockout. It will probably take several months for the situation to get back to normal.

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Fracht Australia Pty Limited
19 Baker Street
Botany, NSW 2019

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