The Pivot Freight BLog: Your Gateway to Freight Insights
In Australia, an anti-dumping system is imposed to create a fair market between Australian manufacturers and importers. When imported goods are believed to be dumped or subsidised and harmful to the business of Australian Manufacturers, they can apply for anti-dumping or countervailing duties.
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At Pivot one of our key brand aspects that makes us stand out as your freight forwarder is our ability to deliver stress-free transparency on the movement of your goods. We think it is essential as an import and/or exporter to understand what your cargo undergoes while it is moving between international borders.
The recent crisis in the Red Sea has sent shockwaves through the global shipping industry, leading to disruptions in carriers' routes and a sharp decline in schedule reliability. According to a new analysis by Sea-Intelligence, schedule reliability has plummeted to its lowest level in 15 months, signalling a concerning trend for the maritime sector. Here are four key points from the analysis: Decline in Schedule Reliability: The analysis reviewed data for over 60 carriers and 34 trade routes, revealing a significant drop in schedule reliability for the second consecutive month. On average, reliability now stands at 51.6 percent, marking a 10 percentage point decrease since November 2023 and a staggering 15 percentage point decline from its peak in mid-2023. Impact on Major Carriers: Major carriers such as MSC, Maersk, and Hapag-Lloyd have seen their schedule reliability dip into the mid-40 percent range. Surprisingly, CMA CGM emerged as the most reliable among the majors at 54.7 percent, despite facing challenges in its schedules due to delays in the Red Sea. Increasing Delays: The crisis has led to significant delays in vessel arrivals, with the average delay for late arrivals now standing at 6.01 days. None of the top 13 carriers were able to record an improvement in schedule reliability, further exacerbating the challenges faced by the industry. Stabilisation Efforts and Future Outlook: While some economists had anticipated that supply chain disruptions would stabilise over time as carriers adjusted to longer voyages, the situation remains precarious. CMA CGM is cautiously optimistic about the situation stabilising, but other carriers such as Maersk have warned of prolonged disruptions well into the second quarter of 2024 or possibly beyond. The ongoing crisis in the Red Sea underscores the vulnerability of global supply chains to geopolitical tensions and maritime security threats. As the industry navigates through these turbulent waters, proactive measures and collaborative efforts will be essential to mitigate risks and ensure the resilience of maritime trade. Sources: Sea-Intelligence, The Financial Times
Exciting news for Queensland's importers and exporters! Delta Air Lines is set to launch cargo services to Brisbane from December 4th. Operating three weekly flights from Los Angeles, this expansion signals a significant boost in trans-Pacific freight capacity, with each flight capable of carrying up to 20 tonnes of cargo on board an Airbus A350-900 aircraft. By Christmas, Brisbane will become a key hub for cargo operations, with Delta joining other major carriers in facilitating trade between North America and Queensland. Supported by Queensland's Attracting Aviation Investment Fund, this initiative is expected to stimulate economic growth, create jobs, and enhance Queensland's export capabilities. Get ready to streamline your import and export operations with Delta's reliable cargo services! Contact us now to explore how we can assist with your air freight needs between the USA and Queensland. #DeltaCargo #QueenslandTrade #freightforwarder
In the world of international shipping, choosing the right mode of transportation is crucial for businesses aiming to optimize their logistics operations. Two primary options often come into play: air freight and ocean freight. While both have their advantages and disadvantages, understanding the differences between them is essential for making informed decisions. In this comprehensive guide, we'll explore the key factors to consider when deciding between air freight and ocean freight, with a specific focus on businesses in Brisbane. Understanding Air Freight and Ocean Freight Freight forwarders play a pivotal role in coordinating the transportation of goods across borders. In Brisbane, where trade is thriving, businesses rely on freight forwarders to manage their shipments efficiently. Air freight involves transporting cargo by air, offering speed and reliability, while ocean freight entails shipping goods via sea containers, providing cost-effectiveness for large volumes. Speed and Transit Time For businesses in Brisbane seeking swift delivery, air freight emerges as the go-to option. Air freight forwarders can transport goods from Brisbane to destinations worldwide in a matter of days, making it ideal for time-sensitive shipments. In contrast, ocean freight tends to have longer transit times due to the slower nature of sea transportation. Cost Considerations While air freight offers speed, it comes at a higher cost compared to ocean freight. Businesses must weigh the expense of air freight against the potential savings of ocean freight, especially when shipping large volumes or non-urgent cargo. Freight forwarders in Brisbane can provide detailed cost analyses to help businesses make cost-effective decisions based on their specific needs. Reliability and Security Air freight is known for its reliability and security, with fewer variables such as weather conditions affecting transit times. Additionally, air cargo undergoes stringent security protocols, reducing the risk of theft or damage during transit. Ocean freight, while generally secure, may encounter delays due to weather-related disruptions or unforeseen circumstances at sea. Environmental Impact Sustainability is increasingly becoming a priority for businesses worldwide. While air freight offers speed, it also has a higher carbon footprint compared to ocean freight. For businesses in Brisbane looking to reduce their environmental impact, ocean freight may present a more eco-friendly option, especially for shipments with longer lead times. Choosing the Right Mode of Transportation Ultimately, the decision between air freight and ocean freight depends on various factors such as shipment urgency, budget constraints, and environmental considerations. Freight forwarders in Brisbane can provide personalized guidance based on each business's unique requirements, ensuring that goods are transported efficiently and cost-effectively. Conclusion In the realm of international trade, selecting the appropriate mode of transportation is paramount for businesses looking to streamline their supply chain operations. Whether opting for the speed of air freight or the cost-effectiveness of ocean freight, businesses in Brisbane can rely on experienced freight forwarders to navigate the complexities of global logistics and deliver goods with efficiency and reliability. By understanding the distinct advantages and considerations associated with air freight and ocean freight, businesses can make informed decisions that align with their operational needs and strategic objectives. With the expertise of freight forwarders and the wealth of transportation options available, businesses in Brisbane can embark on their international trade ventures with confidence and success.
In the world of global commerce, freight forwarding is the unsung hero, orchestrating the complex symphony of shipments, customs, and logistics. However, amidst the logistical brilliance lies a labyrinth of hidden costs that can catch even the most seasoned shippers off guard. In this blog, we'll unveil these covert expenses and arm you with the knowledge to steer clear of them. 1. Unforeseen Detention and Demurrage Charges Picture this: Your cargo arrives at the port, but for unforeseen reasons, it's held up – maybe due to customs clearance delays or logistical hiccups. This delay can result in detention and demurrage charges, which are often overlooked in initial quotes. These charges can quickly escalate if not managed properly. To avoid this pitfall, choose a freight forwarder that provides transparent and comprehensive cost breakdowns. 2. Hidden Fees in the Fine Print Contracts and agreements in the freight forwarding world can sometimes resemble a legal thriller with pages of fine print. Buried within those documents may be hidden fees for services you assumed were included. Thoroughly review all terms and conditions, and don't hesitate to seek clarification on anything you find ambiguous. 3. Currency Exchange Rate Fluctuations Global trade means dealing with various currencies. Exchange rate fluctuations can significantly impact the cost of your shipments. Forwarders often charge for currency conversion services, and the rates they offer might not be as favorable as you'd get from a dedicated currency exchange service. Keep an eye on exchange rates, and consider using specialized financial institutions for currency conversions when possible. 4. Overlooking Insurance Costs Freight forwarders typically offer insurance coverage, but it may not be comprehensive or cost-effective. It's essential to assess your cargo's value and the potential risks involved. If the forwarder's insurance doesn't align with your needs, consider external cargo insurance providers to ensure full coverage without surprises. 5. Warehouse and Handling Fees Storage and handling fees often lurk in the shadows. If your cargo spends more time in warehouses than anticipated, these costs can mount quickly. Understand the storage terms and charges applied by your forwarder and factor them into your budget. 6. Fuel Surcharges and Accessorial Fees Fuel surcharges and accessorial fees can catch you off guard. These fees are tacked onto your bill and can vary depending on market conditions. Stay informed about fuel price trends and negotiate clear terms with your forwarder regarding any potential surcharges. 7. Customs Compliance Costs Failure to comply with customs regulations can result in fines and penalties. Staying on the right side of customs requires expertise and sometimes additional costs. Ensure that your forwarder has the necessary knowledge to handle customs matters effectively to avoid costly missteps. 8. Port Congestion and Peak Season Charges During peak shipping seasons or periods of port congestion, extra charges may come into play. Plan your shipments wisely, and be prepared for potential surges in costs during peak times. In the complex world of freight forwarding, knowledge is power. By staying vigilant, asking the right questions, and choosing a forwarder with a transparent and trustworthy approach, you can navigate the labyrinth of hidden costs and keep your logistics operations on budget and on track. Remember, a well-informed shipper is a successful shipper in the world of global trade.
As February unfolds, it's time to bring you the latest on shipping rates. The prevailing trend suggests a drop in rates due to the imminent Chinese New Year (CNY). The market anticipates a slowdown and a temporary freeze lasting around two weeks, presenting a unique opportunity to present the entire month's valid rates. A week ago, carriers were contemplating a General Rate Increase (GRI) for February. However, as factories announced their closure and reopening dates, the bustling market that persisted since the second half of September began to cool. The fundamental law of supply and demand came into play, indicating a reduction in demand. Another significant factor contributing to the rate drop is the issue of "supply." Carriers operating CA2 services (CHINA AUSTRALIA SERVICE) encountered challenges as four vessels returned to China, creating a backlog due to port congestions in Australia. Despite numerous sailings scheduled around CNY, many were canceled, intensifying the market pressure caused by the backlog. TSL/PIL has taken proactive measures, offering competitive rates from various ports in China, aiming to ease the market strain. ZIM, a new player in the PANDA (ZAX) service, has entered the scene with attractive rates, making them the lowest among their counterparts. However, premium services like A3S, A3C, A3N, CNS, JKN, as well as HMM/EMC/ONE, are not experiencing significant rate drops, as they continue to clear backlogs. The situation in Fremantle and Adelaide remains challenging due to the backlog in Singapore, but improvements are expected post-CNY. This update serves as the carriers' initial move in response to market conditions. As the market slows down further and pressure to fill vessels leaving during CNY intensifies, carriers may consider more promotions in the coming days. Stay tuned for further updates as the situation evolves. Your patience is appreciated as we navigate these dynamic market changes. Stay Ahead in Shipping! 🚢✨ For real-time updates and exclusive insights on evolving shipping dynamics, join our mailing list below.
In recent weeks, the Red Sea has become a focal point of global concern due to an escalation in attacks by Houthi rebels on commercial shipping vessels. This surge in aggression, largely sparked by events in Gaza, has prompted major shipping companies to rethink their routes and operations. In this blog post, we'll delve into the key developments, their implications for global trade, and how businesses are adapting to the challenges. The Red Sea Significance: As one of the world's busiest shipping channels, the Red Sea plays a critical role in connecting Europe to Asia and East Africa. The strategic Bab el-Mandeb strait, situated at its southern end, has recently become a target for Houthi rebels in Yemen. Approximately 12% of global trade, including 30% of global container traffic, passes through this vital waterway, making any disruptions ripple through the global supply chain.
Chinese New Year heralds a temporary halt to the bustling production landscape of China. Marked by closures and a slowdown in activity, this annual tradition poses challenges for businesses globally, necessitating strategic preparation. Scheduled from February 10th to February 17th, 2024, the impact of the holiday begins well before its official start. As factories wind down and ports operate at reduced capacity, supply chains face disruptions. To minimise these challenges, proactive measures are key. Anticipated Challenges: Factory closures leading to disruptions in goods transportation. Ports operating at lower capacity due to the seasonal shipping rush. Increased demand for container space, resulting in higher freight rates. Mitigating Strategies: Early Ordering: Place orders well in advance of Chinese New Year to avoid supply chain disruptions. Manufacturer Consultation: Confirm closure and shipment dates with manufacturers in advance. Timely Ocean Freight Booking, ensure your freight forwarder is aware of your order as soon as its placed with the supplier. this allows for pre planing to ensure ocean freight bookings are in place for the first available vessel based on the estimated ready date. Inventory Organisation: Communicate closely with suppliers, organise inventory, and plan for potential delays or shortages. Explore air freight options with Pivot Freight Solutions for that time critical shipment. Connect with your logistics Partner Relying on a trustworthy and dependable logistics partner with the knowledge and capabilities to resolve any challenges during the Chinese New Year season will not just alleviate seasonal shipping concerns but also guarantee timely delivery of your products to you and your customers. Reach out to the Pivot Freight crew for a stress-free shipping experience.. We're here to assist with your freight booking requirements in preparation for and during the Chinese New Year.
‘Incoterms’ is the short and simple way of saying International Commercial Terms. First published way back in 1936 by the International Chamber of Commerce, they’re a set of 11 terms defining who’s responsible for what during international transactions. Or more simply, Incoterms spell out all the tasks, risks and costs involved during the transaction of goods from seller to buyer. Because they’re known and accepted worldwide and are a requirement on every single commercial invoice, they greatly reduce the risk of potentially costly misunderstandings. The 11 Incoterms & their descriptions 1. EXW – Ex-Works or Ex-Warehouse Ex works is when the seller places the goods at the disposal of the buyer at the seller’s premises or at another named place (i.e., works, factory, warehouse, etc.). The seller does not need to load the goods on any collecting vehicle. Nor does it need to clear them for export, where such clearance is applicable. 2. FCA – Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the seller’s premises or another named place. The parties are well advised to specify as explicitly as possible the point within the named place of delivery, as the risk passes to the buyer at that point. 3. FAS – Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (e.g., on a quay or a barge) nominated by the buyer at the named port of shipment. The risk of loss of or damage to the goods passes when the products are alongside the ship. The buyer bears all costs from that moment onwards. 4. FOB – Free On Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the products are on board the vessel. The buyer bears all costs from that moment onwards. 5. CFR – Cost & Freight The seller delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the products are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination. 6. CIF – Cost, Insurance & Freight The seller delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the products are on the ship. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination. The seller also contracts for insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage. The buyer should note that under CIF the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more insurance protection, it will need either to agree as much expressly with the seller or to make its own extra insurance arrangements. 7. CPT – Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such site is agreed between parties). The seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination. 8. CIP – Carriage & Insurance Paid To The seller has the same responsibilities as CPT, but they also contract for insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage. The buyer should note that under CIP the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more insurance protection, it will need either to agree as much expressly with the seller or to make its own extra insurance arrangements. 9. DAP – Delivered At Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. The seller bears all risks involved in bringing the goods to the named place. 10. DPU – Delivered At Place Unloaded (replaces Incoterm® 2010 DAT) DPU replaces the former Incoterm® DAT (Delivered At Terminal). The seller delivers when the goods, once unloaded are placed at the disposal of the buyer at a named place of destination. The seller bears all risks involved in bringing the goods to, and unloading them at the named place of destination. 11. DDP – Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer, cleared for import on the arriving means of transport ready for unloading at the named place of destination. The seller bears all the costs and risks involved in bringing the goods to the place of destination. They must clear the products not only for export but also for import, to pay any duty for both export and import and to carry out all customs formalities. Check out this helpful explainer video here . What are the most economic Incoterms terms? From our experience, FOB & EXW are the most common terms used when you are the buyer. This ensures you have control over a larger portion of the shipment & costs. If you are the seller then EXW,CFR & DAP are the recommended terms. Looking for additional advice? Speak to the Pivot team today! If you're on the hunt for a quote or have a burning question that needs the expert touch of one of our Pivot crew, don't hesitate to give us a ring at (07) 3207 9537 today.