iNFORMER
international trade news
IMPORT + EXPORT + WAREHOUSING + SEA FREIGHT + AIR FREIGHT + CUSTOMS CLEARANCE + PROJECT LOGISTICS
Auckland, 4th November 2011
SEA FREIGHT
Congestion Surcharge? - Sydney
Some shipping lines operating on the Tasman have given notice of a Congestion Surcharge on
containers to and from Sydney. Others have given notice of the same surcharge but only for
exports into Sydney. Some have not said anything. The quantum is around US$100 per TEU,
give or take $5 or $10 (to give the impression there is no collusion). The notice given, from
those lines already having announced the surcharge – has been as little as 7 days – patently
inadequate and financially damaging where firm sale contracts are already in place.
The imposition has not been justified with any facts, just broad statements about “partially
recovering rising costs, due to berth congestion, vessel delays and restrictions on empty
container evacuations”
Effectively this is a rate hike of at least 20% on ocean freight rates.
Suffice to say there is a great deal of confusion. We are lobbying lines we deal with (who have
imposed the surcharge already) to remove it. We will place FCL bookings with lines not applying
the surcharge, where we can and as long as we can.
We will monitor the situation and keep you informed.
Please get in touch with your usual contacts at Burnard International if you have any questions.
ADVISORY
Cargo Pillage
Pillage (the theft or stealing of your cargo)
The advent of containerization for both sea and air cargo over 30 years ago had an immediate
effect in reducing the amount of loss through pillage occurring in the supply chain. Coupled in
more recent times with the use of CCTV at freight depots and sophisticated IT and security
screening of personnel the problem had virtually disappeared. Until the GFC.
The Freight Forwarding industry has noted a slight (but significant) increase the number of
nuisance pillages over the past few years. The reasons are varied, but appear to be
opportunistic and focused on perceived security holes at both origin and destination. Also, the
GFC may well have increased pressure on some unscrupulous people who see pillage as a
quick fix for their financial predicament.
Still, any pillage is theft and must be dealt with under the full force of the law. Unfortunately in
many jurisdictions, the police are very rarely notified nor involved in minor pillages. It is left to
owner, their insurance company and the forwarder to resolve the financial loss. And, it is only
when pillage issues become systemic that the supply chain is critically reviewed to determine
cause.
There is risk of pillage throughout the supply chain: at the supplier’s factory, the trucker, the
freight depot, delivery driver, etc. Every time a carton is handled it is at risk. The question is
how to minimize the risk, especially to LCL and loose airfreight.
Here are a few easy procedures that we recommend customers adopt to minimize the pillage
risk:
 Packages should be sealed at all points of access. The use of factory security tape**,
sealed strapping and shrink wrap will deter most thieves. Make this a condition of your
purchase order.
 Use “new” cartons or packages only. Used packaging materials lack the structural
integrity to protect cargo.
 Do not describe the contents of the goods in the shipping marks.
 Change shipping marks regularly.
 Make sure all people handling your cargo have a security clearance.
 Check every carton on arrival to verify the contents is intact. Don’t sign for goods
“received in good order / condition” unless you have physically checked them. If there is
any doubt, do not give a clean receipt. Take photos, isolate and advise your freight
forwarder and insurance company immediately.
Air freight exporters will be familiar with the RACA rule requiring that packages are “tamper
evident”, meaning it is apparent if a package has been opened. Applying the same practice to
all loose cargo will minimize pillage risk. The following pictures describe some of the approved
cargo security seals.
Pillage is not to be tolerated. Implementing improved cargo security and personnel vigilance
will help to stop this from happening.
** here are some links to suppliers of security products…
http://www.tydenbrooks.com/Products/Tamper-Evident-Labels-and-Tape.aspx
[email protected]
For further information contact [email protected] DDI 09-2550448
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Cargo Fumigation - Reminder
The Environmental Protection Authority (EPA), formerly the Environmental Risk Management
Authority (ERMA) - has revised the controls on the fumigant methyl bromide. The new controls
came into effect from 1 May 2011 and introduced some changes in procedures for both
fumigators and facilities. Therefore, some facilities may not be able to fumigate on-site unless
the gas is recaptured or will have to have the fumigation occur at another site (e.g. the port or a
depot such as ours). The most relevant of these new changes is the requirement for the
implementation of a buffer zone around a fumigation site.
How does this affect our clients?
Normally it will not, as fumigation if required will take place at our facility (which is compliant),
or at the port. It is only when fumigation needs to take place at your premises, that you need to
be familiar with what you can and can not do.
In such cases, we recommend that you discuss first with us – it may be more efficient to
perform the fumigation at our depot. If you are going to fumigate, you need to inform your
neighbours. Your contracted fumigation specialist will provide a form letter for distribution to
“over-the-fence” neighbours within 25 metres. See pages 22, 23 of the .pdf document (bottom
link below).
More detailed information is available at:
http://www.epa.govt.nz/publications-resources/topics/Methyl-bromidefumigations/Pages/Methyl%20bromide%20fumigations.aspx
and
http://www.epa.govt.nz/Publications/Methyl%20bromide%20guidance%2018.04.pdf
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