GLOBAL freight forwarders ‘must evolve’ to survive, according to a new study by Transport Intelligence.
The new report –‘Global Freight Forwarding 2014’ - shows the market declining in value by 3.3 per cent from 2012 and says the freight forwarding market faces challenges to stay viable.
The report highlights some of the key dynamics driving change in the freight forwarding sector: China is no longer the automatic ‘go to’ location in Asia to manufacture goods, particularly as opportunities open in other emerging markets such as Africa, the Middle East, South America and Southeast Asia; near-sourcing is becoming a reality as emerging markets including Mexico and Turkey benefit from their proximity to the US and the European Union respectively and there is also evidence of ‘re-shoring’ of manufacturing to developed countries due to the changing balance of transport and labour costs.
At the same time modal shifts are under way. Shippers are in search of different options such as slow steaming sea freight and quicker but more expensive air freight plus combinations of sea/air and road/rail solutions.
According to the report, capacity concerns within the air and sea freight markets combined with manufacturers focusing away from globalisation and towards regionalisation are resulting in changes to freight forwarding strategies and product solutions.
Many freight forwarders are struggling to cope with the changing dynamics. The best-in-class have adopted strategies that include a focus on emerging markets and specific industries. However, from a financial perspective, many are faltering because of fluctuating rates and capacity within the air and sea freight markets.
Transport Intelligence senior analyst Cathy Roberson said: “The global freight forwarding market is evolving and those forwarders that adapt quickest to economic and market changes will be the winners.”
Solutions such as multi-modal transportation options will likely be one of the trends.
Dependent on an improving economy, it is expected this market will produce a CAGR of 6.7 per cent through 2017.
Unsurprisingly, emerging markets will be the leaders in this growth as will the sea freight forwarding sub-segment. The report says the heady days of the air freight forwarding market are over as shippers now appear more rational in their approach to transportation management. Still, for high-value goods, air freight remains the preferred option for many shippers.
Planning led by the federal government to develop northern Australia could lift air cargo volumes through Darwin, Cairns, Townsville and smaller northern airports in WA, the NT and Queensland.
Well-meant intentions to ‘open up’ northern Australia as a region have been around for well over a century now, delivering a mixed bag of success, failure and sometimes a sort of open-ended delay.
The current project has the advantage of balancing very high-level state/territory participation with a strong federal commitment spurred by 2013 election promises.
And rather than focus on long-term vague intentions, the project partners have taken a multi-level approach which has seen the drafting of a ‘green paper’ followed by the appointment of an impressive Northern Australia Advisory Group that will oversee submissions and consider them, leading eventually to a ‘white paper’ for formal action.
All stakeholders will have plenty of opportunity for input.
That includes the transport sector, its involvement bolstered by the key role being played in the development plans by deputy pm Warren Truss, whose portfolios include Infrastructure and Regional Development.
He has been talking up the project enthusiastically, describing it as a government priority.
“Further growth and investment will, of course, have direct benefits across northern Queensland, the Northern Territory and Western Australia, but that prosperity will spread to all Australians. “Farmers and business developers in southern parts of the country will be eyeing the opportunities in the north to expand and diversify their interests.
“This has been part of our plan to put regional Australia at the heart of a national economic recovery.”
Truss says that the project partners want to develop a food bowl with some emphasis on premium product, build an energy export industry worth A$150 billion, boost resource exports from the north and grow the region’s tourist economy.
All these goals will have an impact on intra-region air cargo and on international traffic.
“It’s a vision that is achievable and embraces the north’s strengths and natural advantages in agriculture, cattle production, energy generation and tourism growth,” Truss points out, as well as boosting education and health services.
“The green paper reminds us that northern Australia is vital to our national economy, with 55 per cent of exports shipped through northern ports and agricultural production in the north worth over A$5 billion.
“The north enjoys geographic advantages from its proximity to burgeoning Asia economies and many natural assets that attract visitors from all over the world.
“But it is widely accepted that there is more to be done to realise its full economic potential.”
The advisory group will report to a ‘strategic partnership’ comprising Truss, the prime minister, the premiers of WA and Queensland and the current chief minister of the NT.
It will be chaired by an former chief minister, Shane Stone, who also has a very strong track record in commercial governance, including in the Australian and international resource sector.
Other group members are Wayne Bergmann, Jack Burton, Ken Chapman, Sandra Harding, Noeline Ikin, David Menzel, Nicholas Paspaley, Trent Twomey, Ken Warriner and Djawa Yunupingu. All have had extensive involvement in the region’s issues, including transport.
Increased freight opportunities from Western Australia have prompted Garuda Indonesia Cargo to put a wide-body aircraft back on the Perth-Bali route.
The carrier has re-introduced an Airbus A330-300 capable of carrying 14-tonnes of freight with a full passenger load. It replaces a Boeing 737, which had limited freight payload of 800 kgs, depending on the number of passengers. With a full passenger load it had no capacity at all for cargo.
An A330 last operated on the route some years ago. “Because of the flight duration and aircraft rotation, a B737 was more suitable for a time,” said Joe Haddad, cargo manager Australia, Garuda Indonesia (GA).
“However, as the passenger numbers and cargo demand have increased, we have the opportunity to re-introduce the A330.”
Garuda Indonesia has been discussing freight opportunities with an agricultural group in Western Australia over the past few months, specifically on increased freight opportunities ex WA to Indonesia and onwards. “The group was very welcoming as they now have a direct route between WA and Indonesia without any payload restriction and on a daily basis. Their product can be loaded in pallets and containers without loose load double handling,” Haddad said.
“We will be targeting the perishable market as WA air freight exports are predominantly perishables, such as seafood, fruit and vegetables.
“The A330-300 will provide direct palletised cargo access to all exporters – not just to Indonesia but to all GA Cargo on-line ports in Asia, Europe and the Middle East. With the new cargo facilities at Denpasar and Jakarta airports, there has been a significant increase in cargo transiting to destinations beyond Indonesia.
“GA Cargo now operates wide-body aircraft to main Indonesian destinations, such as Surabaya, Makassar, Medan and Balikpapan, which means cargo will travel in one whole unit rather than being double handled as loose cargo,” said Haddad.
He said support for the bigger aircraft from the carrier’s more than 60 cargo agents in Western Australia had been “tremendous”.
The B737 still operates afternoon services between Perth and Bali, which Haddad said gave exporters the option to use either a morning or afternoon flight.
THE FEDERAL government has decided to push ahead with the long-delayed Biosecurity Bill 2014.
It will replace the Quarantine Act and has been described by Agriculture minister Barnaby Joyce as “the biggest change to our biosecurity system in more than 100 years”.
As well as the Biosecurity Bill, the government also is making good on a 2013 election promise by opening consultation on the country’s Import Risk Analysis (IRA) process.
Both developments are of direct relevance to air cargo.
The IRA process helps identify and classify potential biosecurity risks and leads to the development of policies and protocols to manage import risks.
While the consultative period has the Department of Agriculture gathering information and feedback on the current IRA process it will also “consider the outcomes of the IRA examination in the development of processes for conducting import risk analysis under the Biosecurity Bill 2014,” according to a departmental advisory.
Joyce points out, unsurprisingly, that “the biosecurity risks Australia faces have changed significantly since the Quarantine Act was drafted in 1908, a period when policy makers had at the forefront of their minds protecting Australia from outbreaks of smallpox and the bubonic plague”.
With cargo and passenger traffic both likely to keep growing, “we need legislation that not only safeguards our primary industries and our environment from the increased threat of pest and disease, but also allows us to manage these threats in the most efficient way,” the minister noted.
Recognising the major importance of Australia’s biosecurity system, the new law will be administered by both the agriculture and health portfolios.
It aims to simplify and streamline biosecurity regulations while maintaining a high standard of protection.
The bill’s improvements include a reduction of more than A$6.9 million a year in business compliance costs because of clearer, easier-to-use legislation and the improved processes it will enable; new powers to allow the government to respond to biosecurity risks within Australia and help state and territory governments manage a nationally significant pest or disease outbreak, including in the national marine environment; and allowing the general compliance history of a business or individual to be considered when deciding whether to let them import products or undertake biosecurity activities. The current Quarantine Act allows only for assessment of the risks associated with the goods themselves.
Joyce said that during the committee inquiry a number of concerns were raised by stakeholders. Many of them had since been addressed, he claimed, but the importance of getting the law in good shape meant there would be further consultation.
“For the Australian economy, it means an increased capacity for sustained domestic production and international exports from a competitive and profitable agricultural sector.
“For the Australian community more broadly, it means everyone can continue to have confidence in the biosecurity systems that protect our nation.”
Joyce described the IRA as “a fundamental tool in maintaining the integrity” of Australia’s level of biosecurity protection. Ensuring it was “robust, transparent and scientifically based” was essential for farmers and exporters.
“It’s important that we maintain our relative freedom from harmful pests and diseases but it’s also important that we retain an IRA process that does not create trade barriers that contravene international trade rules.
“Like any process, there are always opportunities to improve and I acknowledge that significant concerns have been raised about the IRA process previously.”
He called on all stakeholders in the supply chain to provide input.
GREETINGS to all of you from my new ‘home’ at Gadens. I have been busy with work and out on the road including presenting CPD in person and on-line for the CBFCA. I have also started publishing regular Industry Updates, so don’t hesitate to ask to be included on the list of recipients.
In this column I thought I would bring you a summary of work on current reforms of interest.
The Customs reform agenda I recently spent two exciting days with the Australian Customs and Border Protection Service (Customs) which included the Industry Summit, the National Consultative Committee meeting and the first meeting of the Trusted Trader Advisory Group.
Some of the highlights of the Summit included:
• An opening address by assistant minister senator Cash; • Addresses and engagement by the ceo of Customs and the secretary of the Department of Immigration and Border Protection; • A full day of panel discussions around the four main themes of travel, border, trade & goods and strategy; • Presentations on the implementation and impact of the merger of Customs and the Department of Immigration; • Discussions on the proposed reinvigoration of industry engagement and the development of the new Trusted Trader Program.
Next day, a smaller group attended the inaugural meeting of the Trusted Trader Advisory Group. Members of the Group included representatives of industry associations, Customs, other Government agencies and some of the large multinationals such as Boeing, IBM and GM Holden who are members of similar programs overseas. The meeting set the scene for the proposed development and introduction of the Program, addressed some preliminary issues on the parameters of the Program and set out an ambitious timetable for further meetings and the development of the Program and associated legislation so its first iteration would be in place by 1 July 2015 as promised.
(Non) use of FTAs – release of the HSBC Survey As many of you would be aware, through my practice and involvement with industry associations I have been engaged in the development of the Australian Free Trade Agreement (FTA) agenda, which has included advice on the usage of the FTA as well as compliance issues.
However, an ongoing issue has been the apparent under-utilisation of FTAs and how that can be remedied given the work undertaken to put them into place and the very real benefits which can accrue from use of the FTAs. This is a live issue given the recent completion of FTAs with Korea and Japan and the potential FTA with the PRC along with the work on the TPP and RCEP.
The issue of use of FTAs was a focus of the Productivity Commission Research Report entitled ‘Bilateral and Regional Trade Agreements’ issued in November 2010 and in the recent B20 Trade Recommendations of the B20 Trade Taskforce The issue was also investigated and addressed in the Survey entitled ‘FTAs ; fantastic, fine or futile? Business views on Trade Agreements in Asia’ from The Economist Intelligence Unit, which was sponsored by HSBC and released in August 2014. In my capacity as a director of the Export Council of Australia and chair of the Trade Policy Committee of the ECA I was fortunate to be invited to a media launch of the Survey.
One of the most striking findings of the Survey was the low usage of FTAs in the region including a mere usage of 19 per cent in Australia. Ironically, the Survey also recorded that those respondents which did use FTAs reported an 85 per cent increase in trade.
The Survey identified some reasons for low usage including: - lack of awareness; - complexity; - the need for Government to supply better information.
The need to address these issues also was discussed at the Summit, with Industry providing reasons for lack of use of FTAs and how that use may be increased.
Need for work by Government and Industry in both areas Given the massive amount of work being undertaken in both areas and the potential significant benefits through these areas, there is a clear message in all of this. Both Government and Industry need to improve their engagement with each other to make sure that this work is properly developed and implemented and that all parties secure the maximum results from their investment.
written by Andrew Hudson, partner, Gadens Melbourne. E: This email address is being protected from spambots. You need JavaScript enabled to view it.
Hong Kong Air Cargo Terminals (Hactl) has become the first handling facility at the airport to achieve Good Distribution Practices (GDP) accreditation, bringing it in line with the World Health Organization’s (WHO) quality assurance guidelines for the handling of pharmaceuticals.
To meet the GDP guidelines, Hactl has enhanced the temperature-controlled zones in its SuperTerminal 1 facility, to accommodate pharmaceutical products requiring temperatures of 150C to 250C, 20C to 80C, and -150C to -250C; these zones are equipped with temperature mapping and 24-hour monitoring by trained operatives.
The company has also designated a fast-track “Golden Route” to ensure that all pharmaceutical cargo enjoys the fastest-possible transit between the apron and the handling areas. Hactl supervisors and corresponding managers have undergone professional GDP training on standards, operating procedures and quality issues. All pharmaceutical handling areas are now regularly cleaned and sanitised in accordance with GDP hygiene standards.
Miranda Kwan, deputy director of systems and services certification for SGS Hong Kong, which undertook Hactl’s GDP certification said: “Air cargo handling is an important activity in the supply-chain management of pharmaceutical products. We appreciate Hactl’s commitment to ensuring the quality and identity of pharmaceutical products during all aspects of the air cargo handling process.”
Added Hactl chief executive Mark Whitehead: “Hactl has a tradition of adopting all internationally recognised best practices in all aspects of its business.
“Given the growing importance of pharma traffic to the air freight industry, we see it as our duty to our customers to introduce the highest-possible standards for the handling of such cargo.”
Meanwhile Hactl has enhanced its security operations with the introduction of two electric vehicles to enable security staff to increase the frequency of patrols, and respond to any incidents more quickly.
Security for the massive SuperTerminal 1 facility – the largest single cargo terminal in the world – is a major task involving some 260 staff deployed in various duties, including perimeter and premises patrols and guards duties plus cargo scanning.
The environmentally friendly electric vehicles are limited to 15 kph for safety reasons, but still significantly reduce travel times around the giant 174,600 square metre site, which has a perimeter of 1,850 metres.
The vehicles are now used around the clock, and have proven a big hit with the company’s contract security staff, who view their introduction as further evidence of the company’s ongoing commitment to safety and security throughout its operations.
Andrew Sin, Hactl head of security said: “ The introduction of our mobile patrol vehicles has significantly increased our visible security presence throughout SuperTerminal1. We are making more efficient use of our patrol staff, speeding incident response and even improving our efficiency in dealing with related matters such as clamping of illegally parked vehicles.”
GLOBAL freight forwarders ‘must evolve’ to survive, according to a new study by Transport Intelligence.
The new report –‘Global Freight Forwarding 2014’ - shows the market declining in value by 3.3 per cent from 2012 and says the freight forwarding market faces challenges to stay viable.
The report highlights some of the key dynamics driving change in the freight forwarding sector: China is no longer the automatic ‘go to’ location in Asia to manufacture goods, particularly as opportunities open in other emerging markets such as Africa, the Middle East, South America and Southeast Asia; near-sourcing is becoming a reality as emerging markets including Mexico and Turkey benefit from their proximity to the US and the European Union respectively and there is also evidence of ‘re-shoring’ of manufacturing to developed countries due to the changing balance of transport and labour costs.
At the same time modal shifts are under way. Shippers are in search of different options such as slow steaming sea freight and quicker but more expensive air freight plus combinations of sea/air and road/rail solutions.
According to the report, capacity concerns within the air and sea freight markets combined with manufacturers focusing away from globalisation and towards regionalisation are resulting in changes to freight forwarding strategies and product solutions.
Many freight forwarders are struggling to cope with the changing dynamics. The best-in-class have adopted strategies that include a focus on emerging markets and specific industries. However, from a financial perspective, many are faltering because of fluctuating rates and capacity within the air and sea freight markets.
Transport Intelligence senior analyst Cathy Roberson said: “The global freight forwarding market is evolving and those forwarders that adapt quickest to economic and market changes will be the winners.”
Solutions such as multi-modal transportation options will likely be one of the trends.
Dependent on an improving economy, it is expected this market will produce a CAGR of 6.7 per cent through 2017.
Unsurprisingly, emerging markets will be the leaders in this growth as will the sea freight forwarding sub-segment. The report says the heady days of the air freight forwarding market are over as shippers now appear more rational in their approach to transportation management. Still, for high-value goods, air freight remains the preferred option for many shippers.
Planning led by the federal government to develop northern Australia could lift air cargo volumes through Darwin, Cairns, Townsville and smaller northern airports in WA, the NT and Queensland.
Well-meant intentions to ‘open up’ northern Australia as a region have been around for well over a century now, delivering a mixed bag of success, failure and sometimes a sort of open-ended delay.
The current project has the advantage of balancing very high-level state/territory participation with a strong federal commitment spurred by 2013 election promises.
And rather than focus on long-term vague intentions, the project partners have taken a multi-level approach which has seen the drafting of a ‘green paper’ followed by the appointment of an impressive Northern Australia Advisory Group that will oversee submissions and consider them, leading eventually to a ‘white paper’ for formal action.
All stakeholders will have plenty of opportunity for input.
That includes the transport sector, its involvement bolstered by the key role being played in the development plans by deputy pm Warren Truss, whose portfolios include Infrastructure and Regional Development.
He has been talking up the project enthusiastically, describing it as a government priority.
“Further growth and investment will, of course, have direct benefits across northern Queensland, the Northern Territory and Western Australia, but that prosperity will spread to all Australians. “Farmers and business developers in southern parts of the country will be eyeing the opportunities in the north to expand and diversify their interests.
“This has been part of our plan to put regional Australia at the heart of a national economic recovery.”
Truss says that the project partners want to develop a food bowl with some emphasis on premium product, build an energy export industry worth A$150 billion, boost resource exports from the north and grow the region’s tourist economy.
All these goals will have an impact on intra-region air cargo and on international traffic.
“It’s a vision that is achievable and embraces the north’s strengths and natural advantages in agriculture, cattle production, energy generation and tourism growth,” Truss points out, as well as boosting education and health services.
“The green paper reminds us that northern Australia is vital to our national economy, with 55 per cent of exports shipped through northern ports and agricultural production in the north worth over A$5 billion.
“The north enjoys geographic advantages from its proximity to burgeoning Asia economies and many natural assets that attract visitors from all over the world.
“But it is widely accepted that there is more to be done to realise its full economic potential.”
The advisory group will report to a ‘strategic partnership’ comprising Truss, the prime minister, the premiers of WA and Queensland and the current chief minister of the NT.
It will be chaired by an former chief minister, Shane Stone, who also has a very strong track record in commercial governance, including in the Australian and international resource sector.
Other group members are Wayne Bergmann, Jack Burton, Ken Chapman, Sandra Harding, Noeline Ikin, David Menzel, Nicholas Paspaley, Trent Twomey, Ken Warriner and Djawa Yunupingu. All have had extensive involvement in the region’s issues, including transport.
Increased freight opportunities from Western Australia have prompted Garuda Indonesia Cargo to put a wide-body aircraft back on the Perth-Bali route.
The carrier has re-introduced an Airbus A330-300 capable of carrying 14-tonnes of freight with a full passenger load. It replaces a Boeing 737, which had limited freight payload of 800 kgs, depending on the number of passengers. With a full passenger load it had no capacity at all for cargo.
An A330 last operated on the route some years ago. “Because of the flight duration and aircraft rotation, a B737 was more suitable for a time,” said Joe Haddad, cargo manager Australia, Garuda Indonesia (GA).
“However, as the passenger numbers and cargo demand have increased, we have the opportunity to re-introduce the A330.”
Garuda Indonesia has been discussing freight opportunities with an agricultural group in Western Australia over the past few months, specifically on increased freight opportunities ex WA to Indonesia and onwards. “The group was very welcoming as they now have a direct route between WA and Indonesia without any payload restriction and on a daily basis. Their product can be loaded in pallets and containers without loose load double handling,” Haddad said.
“We will be targeting the perishable market as WA air freight exports are predominantly perishables, such as seafood, fruit and vegetables.
“The A330-300 will provide direct palletised cargo access to all exporters – not just to Indonesia but to all GA Cargo on-line ports in Asia, Europe and the Middle East. With the new cargo facilities at Denpasar and Jakarta airports, there has been a significant increase in cargo transiting to destinations beyond Indonesia.
“GA Cargo now operates wide-body aircraft to main Indonesian destinations, such as Surabaya, Makassar, Medan and Balikpapan, which means cargo will travel in one whole unit rather than being double handled as loose cargo,” said Haddad.
He said support for the bigger aircraft from the carrier’s more than 60 cargo agents in Western Australia had been “tremendous”.
The B737 still operates afternoon services between Perth and Bali, which Haddad said gave exporters the option to use either a morning or afternoon flight.
THE FEDERAL government has decided to push ahead with the long-delayed Biosecurity Bill 2014.
It will replace the Quarantine Act and has been described by Agriculture minister Barnaby Joyce as “the biggest change to our biosecurity system in more than 100 years”.
As well as the Biosecurity Bill, the government also is making good on a 2013 election promise by opening consultation on the country’s Import Risk Analysis (IRA) process.
Both developments are of direct relevance to air cargo.
The IRA process helps identify and classify potential biosecurity risks and leads to the development of policies and protocols to manage import risks.
While the consultative period has the Department of Agriculture gathering information and feedback on the current IRA process it will also “consider the outcomes of the IRA examination in the development of processes for conducting import risk analysis under the Biosecurity Bill 2014,” according to a departmental advisory.
Joyce points out, unsurprisingly, that “the biosecurity risks Australia faces have changed significantly since the Quarantine Act was drafted in 1908, a period when policy makers had at the forefront of their minds protecting Australia from outbreaks of smallpox and the bubonic plague”.
With cargo and passenger traffic both likely to keep growing, “we need legislation that not only safeguards our primary industries and our environment from the increased threat of pest and disease, but also allows us to manage these threats in the most efficient way,” the minister noted.
Recognising the major importance of Australia’s biosecurity system, the new law will be administered by both the agriculture and health portfolios.
It aims to simplify and streamline biosecurity regulations while maintaining a high standard of protection.
The bill’s improvements include a reduction of more than A$6.9 million a year in business compliance costs because of clearer, easier-to-use legislation and the improved processes it will enable; new powers to allow the government to respond to biosecurity risks within Australia and help state and territory governments manage a nationally significant pest or disease outbreak, including in the national marine environment; and allowing the general compliance history of a business or individual to be considered when deciding whether to let them import products or undertake biosecurity activities. The current Quarantine Act allows only for assessment of the risks associated with the goods themselves.
Joyce said that during the committee inquiry a number of concerns were raised by stakeholders. Many of them had since been addressed, he claimed, but the importance of getting the law in good shape meant there would be further consultation.
“For the Australian economy, it means an increased capacity for sustained domestic production and international exports from a competitive and profitable agricultural sector.
“For the Australian community more broadly, it means everyone can continue to have confidence in the biosecurity systems that protect our nation.”
Joyce described the IRA as “a fundamental tool in maintaining the integrity” of Australia’s level of biosecurity protection. Ensuring it was “robust, transparent and scientifically based” was essential for farmers and exporters.
“It’s important that we maintain our relative freedom from harmful pests and diseases but it’s also important that we retain an IRA process that does not create trade barriers that contravene international trade rules.
“Like any process, there are always opportunities to improve and I acknowledge that significant concerns have been raised about the IRA process previously.”
He called on all stakeholders in the supply chain to provide input.
GREETINGS to all of you from my new ‘home’ at Gadens. I have been busy with work and out on the road including presenting CPD in person and on-line for the CBFCA. I have also started publishing regular Industry Updates, so don’t hesitate to ask to be included on the list of recipients.
In this column I thought I would bring you a summary of work on current reforms of interest.
The Customs reform agenda I recently spent two exciting days with the Australian Customs and Border Protection Service (Customs) which included the Industry Summit, the National Consultative Committee meeting and the first meeting of the Trusted Trader Advisory Group.
Some of the highlights of the Summit included:
• An opening address by assistant minister senator Cash; • Addresses and engagement by the ceo of Customs and the secretary of the Department of Immigration and Border Protection; • A full day of panel discussions around the four main themes of travel, border, trade & goods and strategy; • Presentations on the implementation and impact of the merger of Customs and the Department of Immigration; • Discussions on the proposed reinvigoration of industry engagement and the development of the new Trusted Trader Program.
Next day, a smaller group attended the inaugural meeting of the Trusted Trader Advisory Group. Members of the Group included representatives of industry associations, Customs, other Government agencies and some of the large multinationals such as Boeing, IBM and GM Holden who are members of similar programs overseas. The meeting set the scene for the proposed development and introduction of the Program, addressed some preliminary issues on the parameters of the Program and set out an ambitious timetable for further meetings and the development of the Program and associated legislation so its first iteration would be in place by 1 July 2015 as promised.
(Non) use of FTAs – release of the HSBC Survey As many of you would be aware, through my practice and involvement with industry associations I have been engaged in the development of the Australian Free Trade Agreement (FTA) agenda, which has included advice on the usage of the FTA as well as compliance issues.
However, an ongoing issue has been the apparent under-utilisation of FTAs and how that can be remedied given the work undertaken to put them into place and the very real benefits which can accrue from use of the FTAs. This is a live issue given the recent completion of FTAs with Korea and Japan and the potential FTA with the PRC along with the work on the TPP and RCEP.
The issue of use of FTAs was a focus of the Productivity Commission Research Report entitled ‘Bilateral and Regional Trade Agreements’ issued in November 2010 and in the recent B20 Trade Recommendations of the B20 Trade Taskforce The issue was also investigated and addressed in the Survey entitled ‘FTAs ; fantastic, fine or futile? Business views on Trade Agreements in Asia’ from The Economist Intelligence Unit, which was sponsored by HSBC and released in August 2014. In my capacity as a director of the Export Council of Australia and chair of the Trade Policy Committee of the ECA I was fortunate to be invited to a media launch of the Survey.
One of the most striking findings of the Survey was the low usage of FTAs in the region including a mere usage of 19 per cent in Australia. Ironically, the Survey also recorded that those respondents which did use FTAs reported an 85 per cent increase in trade.
The Survey identified some reasons for low usage including: - lack of awareness; - complexity; - the need for Government to supply better information.
The need to address these issues also was discussed at the Summit, with Industry providing reasons for lack of use of FTAs and how that use may be increased.
Need for work by Government and Industry in both areas Given the massive amount of work being undertaken in both areas and the potential significant benefits through these areas, there is a clear message in all of this. Both Government and Industry need to improve their engagement with each other to make sure that this work is properly developed and implemented and that all parties secure the maximum results from their investment.
written by Andrew Hudson, partner, Gadens Melbourne. E: This email address is being protected from spambots. You need JavaScript enabled to view it.
Hong Kong Air Cargo Terminals (Hactl) has become the first handling facility at the airport to achieve Good Distribution Practices (GDP) accreditation, bringing it in line with the World Health Organization’s (WHO) quality assurance guidelines for the handling of pharmaceuticals.
To meet the GDP guidelines, Hactl has enhanced the temperature-controlled zones in its SuperTerminal 1 facility, to accommodate pharmaceutical products requiring temperatures of 150C to 250C, 20C to 80C, and -150C to -250C; these zones are equipped with temperature mapping and 24-hour monitoring by trained operatives.
The company has also designated a fast-track “Golden Route” to ensure that all pharmaceutical cargo enjoys the fastest-possible transit between the apron and the handling areas. Hactl supervisors and corresponding managers have undergone professional GDP training on standards, operating procedures and quality issues. All pharmaceutical handling areas are now regularly cleaned and sanitised in accordance with GDP hygiene standards.
Miranda Kwan, deputy director of systems and services certification for SGS Hong Kong, which undertook Hactl’s GDP certification said: “Air cargo handling is an important activity in the supply-chain management of pharmaceutical products. We appreciate Hactl’s commitment to ensuring the quality and identity of pharmaceutical products during all aspects of the air cargo handling process.”
Added Hactl chief executive Mark Whitehead: “Hactl has a tradition of adopting all internationally recognised best practices in all aspects of its business.
“Given the growing importance of pharma traffic to the air freight industry, we see it as our duty to our customers to introduce the highest-possible standards for the handling of such cargo.”
Meanwhile Hactl has enhanced its security operations with the introduction of two electric vehicles to enable security staff to increase the frequency of patrols, and respond to any incidents more quickly.
Security for the massive SuperTerminal 1 facility – the largest single cargo terminal in the world – is a major task involving some 260 staff deployed in various duties, including perimeter and premises patrols and guards duties plus cargo scanning.
The environmentally friendly electric vehicles are limited to 15 kph for safety reasons, but still significantly reduce travel times around the giant 174,600 square metre site, which has a perimeter of 1,850 metres.
The vehicles are now used around the clock, and have proven a big hit with the company’s contract security staff, who view their introduction as further evidence of the company’s ongoing commitment to safety and security throughout its operations.
Andrew Sin, Hactl head of security said: “ The introduction of our mobile patrol vehicles has significantly increased our visible security presence throughout SuperTerminal1. We are making more efficient use of our patrol staff, speeding incident response and even improving our efficiency in dealing with related matters such as clamping of illegally parked vehicles.”
