Aust better-placed than many countries, but there are ‘no guarantees’
AC220 archive stories
Tuesday, 22 January 2013
AUSTRALIA’s freight forwarders have been praised for their resilience during a difficult 2012.
“The past year has been unpredictable in terms of stability in trade - and therefore difficult for our industry to plan for,” said Brian Lovell, chief executive officer of the Australian Federation of International Forwarders (AFIF).
“It has been a particularly unpleasant ride for some and a few have been unable to sustain their businesses.”
However, Lovell pointed out that AFIF had seen a small increase in training activity for new industry entrants, indicating there is growing confidence within the industry of better times ahead. “The Australian dollar remains strong, although volatile, and this has not helped sectors of the export market. It has however allowed imports to stand up well. There has also been a continued increase in internet-based purchasing.
“As movers of trade-related goods, our members are always directly affected by changing economic conditions. Forwarders being the type of enterprising organisations they are, they have on the whole been amazingly resilient and have once again demonstrated their strength and expertise,” said Lovell.
“In general terms, the year has thrown up the usual array of issues confronting our industry – some of which are not unexpected, together with new and emerging challenges.”
In the air cargo field next year, Lovell said industry would learn about the proposed Regulated Shipper Scheme and the Enhanced Air Cargo Examination programs,which would change the way air cargo exports were screened on a technical basis prior to export.
“We should also witness a large migration to the utilisation of the electronic airway bill (e-AWB), as Qantas has now placed a high priority on the system and other carriers are ramping up their capability.”
On the waterfront, Lovell said he believed there would be “quite a lot of activity” in the port and intermodal terminal areas, especially in Sydney.
“Towards the end of 2013, we should see the commencement of the third stevedoring operator – Hutchison Ports Authority – in Botany Bay. The facility, under development for the past two years, is nearing completion.
“We will also learn more about the feasibility of the proposed intermodal terminal at Moorebank and see further progress towards Enfield Intermodal coming on-line;and we will also learn more about the privatisation of Port Botany itself.
“In Melbourne, we will understand more about the proposed expansion of Webb and Swanson Docks in the Port of Melbourne and the infrastructure requirements to support the expansion,” he added.
Steve Morris, executive director of the Customs Brokers and Forwarders Council of Australia (CBFCA) expects 2013 to continue to be “challenging” for forwarders, with freight markets remaining soft.
“The current global and domestic economic situation present very challenging times for freight forwarders,” said Morris. “Even the reliable mining and resources sector has a few problems as evidenced by Skelton and Sherbourne recently appointed SV Partners as receivers.
“I don’t think we will see the usual seasonal rush of past years, as business remains soft going into Xmas and many of our members expect that trend to continue into the new year.
“Australia has officially wound back its growth projections to three per cent. It is certainly better than what is happening in Spain and Greece, but eventually the European contagion must have an effect.
“Of the top ten global freight forwarders, six are based in Europe including Panalpina, Kuehne + Nagel, DHL Global Forwarding and DB Schenker. There are signs the US economy is improving and this is a positive. On the other hand, the strength of the Australian dollar (at press time it was around A$1.05 to the USD) must be creating many problems for exporters in Australia trying to sell into very competitive markets.
“Sooner or later these developments overseas must have an impact on Australia. When I look at the Australian situation in comparison to the global situation, I can see that Australia is on the right side of the ledger - the question to be asked is can we stay there? There isn’t much room to move.
“When the first global financial crisis (GFC) struck in 2008 most in the freight forwarding/shipping area took immediate remedial action, cutting costs, trimming staff, etc. When the second GFC struck in 2011/12 most Australian companies handled that reasonably well, due to the actions they took in 2008. What is missing from the equation is the growth factor. Most shippers will say container movements are up 10 per cent, but this is coming off a low base.
“Today’s container movements need to be compared with 2007 for a more accurate picture. The next 10 years will see growth in global freight shipping, it will just take a little longer than originally forecast.”
Aust better-placed than many countries, but there are ‘no guarantees’
AC220 archive stories
Tuesday, 22 January 2013
AUSTRALIA’s freight forwarders have been praised for their resilience during a difficult 2012.
“The past year has been unpredictable in terms of stability in trade - and therefore difficult for our industry to plan for,” said Brian Lovell, chief executive officer of the Australian Federation of International Forwarders (AFIF).
“It has been a particularly unpleasant ride for some and a few have been unable to sustain their businesses.”
However, Lovell pointed out that AFIF had seen a small increase in training activity for new industry entrants, indicating there is growing confidence within the industry of better times ahead. “The Australian dollar remains strong, although volatile, and this has not helped sectors of the export market. It has however allowed imports to stand up well. There has also been a continued increase in internet-based purchasing.
“As movers of trade-related goods, our members are always directly affected by changing economic conditions. Forwarders being the type of enterprising organisations they are, they have on the whole been amazingly resilient and have once again demonstrated their strength and expertise,” said Lovell.
“In general terms, the year has thrown up the usual array of issues confronting our industry – some of which are not unexpected, together with new and emerging challenges.”
In the air cargo field next year, Lovell said industry would learn about the proposed Regulated Shipper Scheme and the Enhanced Air Cargo Examination programs,which would change the way air cargo exports were screened on a technical basis prior to export.
“We should also witness a large migration to the utilisation of the electronic airway bill (e-AWB), as Qantas has now placed a high priority on the system and other carriers are ramping up their capability.”
On the waterfront, Lovell said he believed there would be “quite a lot of activity” in the port and intermodal terminal areas, especially in Sydney.
“Towards the end of 2013, we should see the commencement of the third stevedoring operator – Hutchison Ports Authority – in Botany Bay. The facility, under development for the past two years, is nearing completion.
“We will also learn more about the feasibility of the proposed intermodal terminal at Moorebank and see further progress towards Enfield Intermodal coming on-line;and we will also learn more about the privatisation of Port Botany itself.
“In Melbourne, we will understand more about the proposed expansion of Webb and Swanson Docks in the Port of Melbourne and the infrastructure requirements to support the expansion,” he added.
Steve Morris, executive director of the Customs Brokers and Forwarders Council of Australia (CBFCA) expects 2013 to continue to be “challenging” for forwarders, with freight markets remaining soft.
“The current global and domestic economic situation present very challenging times for freight forwarders,” said Morris. “Even the reliable mining and resources sector has a few problems as evidenced by Skelton and Sherbourne recently appointed SV Partners as receivers.
“I don’t think we will see the usual seasonal rush of past years, as business remains soft going into Xmas and many of our members expect that trend to continue into the new year.
“Australia has officially wound back its growth projections to three per cent. It is certainly better than what is happening in Spain and Greece, but eventually the European contagion must have an effect.
“Of the top ten global freight forwarders, six are based in Europe including Panalpina, Kuehne + Nagel, DHL Global Forwarding and DB Schenker. There are signs the US economy is improving and this is a positive. On the other hand, the strength of the Australian dollar (at press time it was around A$1.05 to the USD) must be creating many problems for exporters in Australia trying to sell into very competitive markets.
“Sooner or later these developments overseas must have an impact on Australia. When I look at the Australian situation in comparison to the global situation, I can see that Australia is on the right side of the ledger - the question to be asked is can we stay there? There isn’t much room to move.
“When the first global financial crisis (GFC) struck in 2008 most in the freight forwarding/shipping area took immediate remedial action, cutting costs, trimming staff, etc. When the second GFC struck in 2011/12 most Australian companies handled that reasonably well, due to the actions they took in 2008. What is missing from the equation is the growth factor. Most shippers will say container movements are up 10 per cent, but this is coming off a low base.
“Today’s container movements need to be compared with 2007 for a more accurate picture. The next 10 years will see growth in global freight shipping, it will just take a little longer than originally forecast.”
