News

Fracht Australia Logistics News - September 2024

2/9/2024

BMSB SEASON 2024 / 25 

• THE SEASONAL MEASURES FOR BROWN MARMORATED STINK BUG (BMSB) will be in effect again starting 1 September 2024 until 30 April 2025 inclusive. The Department of Agriculture, Fisheries and Forestry (DAFF) recently conducted two industry sessions focusing on the upcoming Brown Marmorated Stink Bug (BMSB) seasonal measures. Our industry representative body, Freight & Trade Alliance (FTA) through direct engagement with DAFF has obtained the slide deck used in the presentation – which is available HERE. For further information regarding BMSB seasonal measures, visit the BMSB  webpage agriculture.gov.au/bmsb 

AROUND THE WORLD 

• POLITICAL UPHEAVAL IN BANGLADESH sees factories close and supply chain chaos. Bangladesh supply chains were experiencing chaos from the worsening civil disorder at the beginning of August, with factories having been shuttered for two days and exports forced almost to a halt. The Bangladesh Garment Manufacturers and Exporters Association said the sector – the nation’s prime foreign currency earner – had incurred losses of some $270m.
• CHINA TO EUROPE RAILFREIGHT SOARING as operators develop Red Sea alternatives. China-Europe rail freight volumes are continuing 2023’s upward trajectory, recording an 11% year on year bounce in the first six months of this year, with some 1.23m TEU moved. Increasing demand for rail capacity is also feeding into spot rates, with price provided to The Loadstar last week indicating a 10% bounce over the preceding fortnight for China to Europe services
• CANADIAN GOVERNMENT STEPS IN TO END RAIL STRIKE and force arbitration. Amid concerns over the effect on the wider North American economies of the rail freight network standstill, carriers Canadian Pacific Kansas City (CPKC) and Canadian National (CN) have been ordered to resume operations and the government announced it was forcing the operators into binding arbitration with the Teamsters Union to resolve the dispute.
• SAILING AROUND THE CAPE OF GOOD HOPE was regarded as foolhardy in the days of the tall ships and wooden hulls. But even for the sophisticated vessels of today, there are dangers. Two recent high-profile container-loss incidents – the CMA CGM Benjamin Franklin lost 44 boxes with damage to another 30 in July, and 99 containers were lost last month from CMA CGM Belem – have reduced confidence in the suitability of massive containerships for tougher ocean conditions. And it could have been much worse: a bulk carrier, Ultra Galaxy, was caught in another of South Africa’s late-winter storms, capsized and broke-up off Cape Town. Vessels have also re-routed away from heavy seas, which has in the past been facilitated by Suez Canal and Red Sea transits. But with these waters compromised by Houthi attacks, shipping lines have had to brave the Cape of Good Hope instead.
• AUSTRALIA AND INDONESIA SIGN MUTUAL RECOGNITION ARRANGEMENT. Businesses in Australia and Indonesia are set to benefit from a simplified customs process after the two countries signed an Authorised Economic Operator Mutual Recognition Arrangement (AEO MRA). Australian Border Force (ABF) Commissioner, Michael Outram APM, and the Indonesian Director General of Customs and Excise, Askolani, signed the Arrangement at the 23rd Customs-to-Customs Talks in Canberra on Wednesday, 7 August 2024. 

SEAFREIGHT NEWS 

• SEALEAD ENTERS AUSTRALIAN REEFER MARKET. Singaporean container logistics shipping company SeaLead will officially enter the Australian reefer market, says its exclusive Australian agents, Nautical Shipping (NS). The shipping agency released an announcement on 5 August detailing the move, stating SeaLead’s entry into the Australian market will leverage its containers and advanced logistics network, with its entry into the reefer market reportedly covering major Australian ports. “We look forward to serving the Australian market and contributing to the growth of the perishable goods sector.”
• NYK POSTS STRONG FIRST QUARTER 2024 RESULTS. NYK LINE has released its financial results for the first quarter of 2024-25 fiscal year(Q1 2024), posting robust increases. The Japanese shipping line saw a 14.8% increase in revenue for the period ending June 30, 2024 when compared to the same period in 2023, to over YEN650 billion.
• MSC NOW DOMINATING OCEAN CARRIER MARKET – but rivals are also boosting capacity. MSC set a new record for its share of ocean carrier capacity last month, with the latest data confirming that the ‘top 10’ carriers still command the sector. Geneva-based MSC reached a record share of 19.8% of the global operated container fleet at the end of July, according to Alphaliner. It has added some 400,000 TEU to its fleet this year, reaching the highest capacity ever recorded by a single carrier. According to Alphaliner, only Danish carrier Maersk has ever “come close to dominating the market in the same way”. 
• HÖEGH AUTOLINER’S FIRST AURORA CLASS PCTC DELIVERED. Three years after the Aurora class design was launched, Höegh Aurora has been received by Höegh as part of the Norwegian shipping line’s new green minded multi-fuel fleet. Höegh Aurora is the first of 12 Aurora vessels on order to be delivered, with each to be able to operate on ammonia fuel, as part of the shipping line’s 2040 net-zero emissions goal. The first Aurora Class vessels will run on liquefied natural gas, biofuels, and low-sulfur oil. From 2027, Höegh’s aim is that the last four of the 12 Aurora class vessels will be running on clean, green ammonia, intending to reduce each vessel’s emissions by close to 100 percent.
• SWIRE SHIPPING COMPLETES BIOFUEL TRIAL on one of its transpacific services. A sustainable B24 biofuel trial was conducted on Swire’s Sun Chief Express Ocean service. Harry Stones, president of Swire Shipping North America, said, “The use of sustainable B24 biofuel in our Sun Chief Express Ocean service is projected to reduce well-to-wake emissions for our customers by an estimated 15%”.
• EXPLOSION ROCKS YANG MING CONTAINER SHIPwhile berthed at the Port of Ningbo in China, one of the world’s busiest ports. Footage of the incident, which occurred on 9 August, shows the Yang Ming-operated ship YM Mobility at berth as smoke emanates from the deck, before a massive explosion appears to engulf the deck at the bow of the vessel. The Taiwanese shipping line said preliminary findings suggested that an explosion occurred in a container loaded with dangerous goods on board. 

AIRFREIGHT NEWS 

• MARITIME DISRUPTION AND SURGING E-COMMERCE lifts airfreight to a record H1. Demand for airfreight out of Asia-Pacific was above the global average in June – and there are suggestions that the momentum will continue potentially well into 2025. Both the Association of Asia Pacific Airlines (AAPA) and IATA put volume growth for the region well into double digits, with AAPA recording a year-on-year uptick of 16.4%, measured as freight tonne km (FTK), while IATA recorded growth of 17%.
• CHINA TEST-FLIES TWO-TONNE-CAPACITY CARGO DRONE. China aims to kickstart a ‘low-altitude economy’ with a twin-engine drone capable of carrying two tonnes. Developed by Sichuan Tengden Sci-tech Innovation, the drone has the highest-capacity unveiled so far, with a wingspan of 16.1 metres, and acts like a miniaturised fixed-wing aircraft, relying on runway take off. Despite assumptions that the sector would initially be populated by local delivery drones, the momentum appears to be behind longer-range uncrewed aircraft (UAVs), whose unique selling point lies in reducing the costs of air cargo compared with conventional piloted aircraft.
• QANTAS INTRODUCES NEW FREIGHTER SERVICES TO MEET DEMAND. The Australian airline announced that, from 26 August 2024, it will launch new freighter services from Australia to Hong Kong, as well as to New Zealand, using its A321P2F and A332P2F aircraft. Two return services will run from Sydney to Hong Kong per week, complemented by a weekly Perth-Hong Kong-Sydney service. These services will be operated by Qantas’ widebody A332P2F. Five weekly rotations to New Zealand will also operate from Sydney - Christchurch via Auckland.
• WESTERN SYDNEY AIRPORT WELCOMES FIRST INTERNATIONAL AIRLINE, with Singapore Airlines confirming its intention to operate from the airport. Construction of Western Sydney International Airport (WSI) is reportedly more than 80% complete, and will welcome airlines and passengers from late 2026 under the current plan. WSI is located in the suburb of Badgerys Creek in far western Sydney, approximately 44 kilometers from the CBD, and situated 13 kilometers south of Penrith’s CBD. Bilateral air services negotiations continue with a number of other countries, with a particular focus on seeking to increase available capacity in the Asia Pacific region. 

OCEANIA PORTS 

• PORT AUTHORITY OF NSW CELEBRATED 10 YEARS on 5 August, as a state-owned corporation, facilitating billions in trade for the regional and state economies. Port Authority of NSW stated in its announcement that in the previous decade it had facilitated $258 billion and $108 billion in trade for the Hunter and Illawarra regions respectively.
• MELBOURNE RICE EXPORTS RECORD SIX-YEAR HIGH, following hard on the heels of the news of record-breaking tonnages of grain being exported from the Port of Melbourne. Rice, which is the 12th largest export in terms of overseas export tonnage, has increased by 620% between 2021 and 2024 and was at a six-year high. A Port of Melbourne media release said the record number was due to a good growing season and the dedication of rice growers, who were recognised at the recent Rice Industry Awards.
• NT GOVERNMENT SIGNS MOU (memorandum of understanding) with Dutch company Vopak to cooperate on development of a carbon dioxide (CO2)import terminal. The project between the NT government and Vopak aims to progress the development of common user infrastructure for CO2 import, storage and handling in the NT’s Middle Arm Sustainable Development Precinct, a planned industrial hub near Darwin. Vopak specializes in liquid bulk storage and handling, for products including chemicals, oil, and gases, headquartered in Rotterdam, Netherlands.
• WEAKNESS FOUND IN BURNIE BERTH. Tasports has imposed restrictions on parts of Strait Link’s Burnie base at Berth 4 after areas of scouring were discovered beneath the quay wall. CEO Anthony Donald said while there were no indications the infrastructure will fail, TasPorts had mobilised a dedicated project team to undertake immediate remediation works and upgrades to modern standards. 

CUSTOMER SERVICE 

If you would like further information about any of the above items, please contact one of our friendly Fracht Team members at fracht@frachtsyd.com.au