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19 October 2018 

TCO Gazette Links

News Headlines

MSC To Provide Door-to-Door Visibility
MSC is teaming up with TRAXENS tech company to implement a new technology which enables containers to communicate real-time data on position and movements throughout their journeys. 50,000 shipping containers will be fitted with the smart devices to bring end-to-end visibility to the supply chain and boost safety, efficiency, service and security.

MSC president and CEO Diego Aponte said he believed that the real-time tracking of containers is the future of the industry. “While shipping lines should, of course, compete on service, we will achieve better results for our customers by working in a more harmonised way on technology and innovation,” he said. “Smart containers are a perfect example of where we can co-operate according to industry standards to make our services truly comprehensive and TRAXENS is the top innovator in this area.”

Wine Exports Grant
In 2016-2017, Australian wine exporters were valued at $2.4 billion. The Federal Government aims to boost that figure by announcing a $500,000 Wine Export Grant to help Australian wine makers access markets in China and the US.

Agricultural Minister David Littleproud advised the grant would make it easier to sell Australian wine to our largest trading partners.

With Australia being the sixth largest wine producer and fifth largest wine exporter in the world (with two thirds of Australian wine exported), it's safe to say that Aussie wine is amongst the best. Next year, along with the grant, the tariffs for Australian wine into China will fall to zero, increasing sales further.

“This grant will help our top wine producers jump export hurdles in both countries," Mr Littleproud said. “Small and medium producers can claim up to $25,000 or 50 per cent of the cost of promoting their wine in either country.”

Mr Littleproud said he expected exports to China and the US to keep growing. “I am proud to back Aussie wine and I know it will be a hit in China and the US,” he said.

Almost Half a Tonne of MDMA seized at Port Botany
Three men have been arrested and 496kgs of MDMA seized following a joint operation between the Australian Federal Police (AFP) and Australian Border Force (ABF) in Sydney.

On Friday 28 September 2018, ABF officers targeted a container that arrived in Port Botany consisting of four industrial mincing machines. Upon examination, approximately 60 packages of a brown granulated substance, each weighing around 2kgs, was found within the door cavity of one of the mincers. Subsequent testing of the substance returned a positive result for MDMA. Further examination by the ABF revealed each of the four mincers contained similar packages, equating to nearly half a tonne of MDMA, which could have been made into over 1.7 million pills with a potential street value of more than $57 million.

Following a number of enquiries, AFP officers conducted a controlled delivery of the consignment to an address in Auburn, NSW. On Saturday 6 October 2018, a search warrant was executed by AFP and ABF officers at a business address in Clyde, NSW. During the search, police seized a mobile phone and a small amount of a substance suspected to be cocaine. Police arrested a 27-year-old Guildford man at the location.

A second search warrant was then executed at a nearby business location in Clyde, NSW, where the consignment of four mincing machines was seized. A 24-year-old man and a 29- year-old man were arrested at this location. Further search warrants were executed in the Sydney suburbs of Guildford, Auburn and Elizabeth Hills early October.

The three accused were charged with attempting to possess a commercial quantity of a border controlled drug, with the 27-year-old Guildford man also charged with one count of importing a commercial quantity of a border controlled drug.

The result of this seizure was again a testatment to the ABF's highly trained officers and advanced technology they have at their disposal.

“Every day our officers go to work determined to protect Australia from these harmful substances, and cases like these show their hard work and dedication pays off,” ABF Investigations A/g Commander Garry Low said. “Our officers have the technology, skills and commitment to find these drugs and stop them from entering the country – regardless of how criminals try to hide them. It’s a significant result for public safety and a win for the people whose lives could’ve been torn apart by these drugs.”

Airline Crew Member Smuggling Tobacco
A flight attendant, an Indonesian national arrived in Perth on a flight from Denpasar in early October where, with other crew members was directed to the Australian Border Force's (ABF) secondary examination area where their baggage was to be x-rayed.

A female ABF officer observed the 50-year-old female airline crew member entering a toilet block before her bag was screened, where she was caught dumping a number of cartons of cigarettes into a bin. A total of 10 cartons of cigarettes were seized (2,000 sticks). The duty evaded was approximately $1,700. The maximum allowance for cigarettes being brought into Australia is 25 sticks.

The crew member was refused entry into Australia, her visa was cancelled and she was removed on a flight back to Indonesia the following morning.

ABF Regional Commander for WA, Rod O’Donnell, said ABF officers were on the lookout for people attempting to bring more than their duty free allowance of cigarettes and tobacco across the border.

“It is important to note that ABF intervention extends to all travellers crossing the border, including airline crew members, who are not above the law,” Commander O’Donnell said.

“Tobacco smuggling is one of the ABF’s operational priorities, whether it be by organised crime syndicates or individual profiteers such as in this case.”

Last financial year the ABF made more than 110,000 detections of illicit tobacco at the border, including almost 240 million cigarettes and 217 tonnes of tobacco, worth more than $356 million in evaded duty.

Containerised Cargo Up in Adelaide
Containerised cargo through Port Adelaide was strong last month, showing increases on the previous month of August and the previous year of 2017. Flinders Ports reported that 28,450 TEU of full containers crossed the wharves at Port Adelaide, representing a 2% increase on August’s numbers, and a 1% increase on September 2017.

Port Adelaide imported 3942 cars, which amounts to 6880 tonnes. Other significant, non-containerised trade through the port included petroleum and gas imports (209,749 tonnes), limestone imports (168,814 tonnes) and grain exports (112,155 tonnes).

Port Adelaide handled 109 vessel calls in September, a decrease of 4% on August’s calls of 114. Of September’s calls, 38 were cellular container ships, 37 were dry bulk vessels, nine were general cargo ships, and seven were petroleum tankers.

Shipping Lines Prepare for 2020 Sulphur Cap
In the lead-up to the implementation of the International Maritime Organisation’s (IMO) 2020 sulphur cap for marine fuel, many shipping lines have announced their plans for the future.

By 2020, the estimated cost of burning low sulphur fuel is estimated to cost up to US$60 billion for the entire shipping industry. Many shipping lines will aim to implement a fuel recovery charge of some description in order to reflect the industry changes.

Last month Maersk said it would begin charging a bunker-adjustment factor surcharge on 1 January 2019.

Hapag-Lloyd have estimated additional costs being “around US$1 billion in the first years” for their fleet alone. They have recently announced their marine fuel recovery (MFR) mechanism, which will be gradually implemented from 1 January 2019. The MFR is based on a formula that combines consumption with market prices for fuel oils, taking into account parameters such as the vessel consumption per day; fuel type and price; sea and port days; and carried TEU.

OOCL have followed suit and advised shippers and consumers to be prepared to shoulder the burden. They would introduce a bunker “recovery approach” based on a “floating bunker formula” taking various factors into account, including the different fuel types being used, fuel price fluctuations, ship size and capacity and vessel utilisation levels.

With the implementation of the sulphur cap from 1 January 2020 this would significantly reduce the amount of sulphur oxide emanating from ships and should have major health and environmental benefits for the world, particularly for populations living close to ports and coasts.

Friday Quiz - Win a PRIZE !!
Congratulations to Chris Henderson from RPL Trading who won the wine pack in our last quiz! His wine pack was hand delivered and we hope he enjoyed it! Thanks to all the entries that came in, here is another chance for you to win. All you need to do is be the first person to email the correct answers to the following questions to sales@tomax.com.au and we'll be happy to bring you your wine pack prize! Good luck but get in quick!

1. In which Australian city would you find the Treasury Casino?

2. Which rock group released the song “Eye of the Tiger”, written for the Rocky III movie in 1982?

3. Which of these words is a palindrome: CONTAINER, RACECAR, SOCCER?

4. What is the capital of Malaysia?

5. What do the letters stand for in the shipping company name OOCL?

Get your entry in fast to sales@tomax.com.au