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Air Freight
Direct Service
Transhipment Service
Courier Service
Sea Freight
Full Container Load(FCL)
o Direct o Transhipment
Less Than Container Load
(LCL)
WHAT ARE YOUR FREIGHT OPTIONS?
Value of your goodso I-pads vs. Plasticware
Stock Cycleso How quickly are they
selling?
Size of your Shipmento Under 50 – 100 kgs?
Timingo I need this in a hurry.
When to Use Air Freight
Shanghai to Hongkong2hrs 30mins
Hongkong to Sydney9hrs 20mins
= 11hours 50mins ???
Shanghai to Sydney Via Hong Kong [Cathay Pacific]
TRANSHIPMENT SERVICE
Direct Flightso Hongkong 9-10hourso Shanghai 10-11hourso Beijing 12-14hours
Transhipmento 2-3 dayso Can be longer in Peak Season with backlogs
Air Freight Transit Times
Guaranteed to arrive when loaded
Quickest possible transit time
More expensive freight cost
Cheaper than direct service
Slower transit time
Possibility of getting stuck in transhipment port [especially during peak season]
Direct Service Transhipment Service
Direct Versus Transhipment
Inland Freight Export Customs Documentation X-ray/Security
Screening Airport Terminal Fees Air Freight Fuel Surcharge Security Surcharge
Airport Terminal Fees Breakbulk Charges Documentation Air Cargo Automation Customs Clearance Delivery Fuel Surcharge
FREIGHT COSTS
OVERSEAS CHARGES LOCAL CHARGES
Fastest possible transit time
Guaranteed to arrive when loaded
Usually more expensive option
Less Handling – Less Risk
Container transferred from one vessel to another
Sometimes, your only option
Potential for delays during Peak Season
Longer transit time Cheaper price ?
DIRECT VERSUS TRANSHIPMENT
DIRECT SERVICE TRANSHIPMENT SERVICE
Direct Serviceso Hong Kong / Shekou / Nansha 10-12 dayso Shanghai / Ningbo / Xiamen 14-16 days
Transhipment Serviceso Huangpu / Shantou Via Shekou 14-16 dayso Tianjin / Dalian Via Busan 24-28 dayso Hong Kong/ Shanghai Via Singapore 20-25 days
SEA FREIGHT TRANSIT TIMES
Freight charges are paid based on size of container –
o Per 20 Ft Containero Per 40 Ft Container
L.C.L Cargo is charged per –
o Cubic Metero 1,000 Kgs
Whatever is the greater.
Freight Calculations
F.C.L Cargo L.C.L Cargo
Freight Costs
• Inland Freight• Export Customs• Documentation• Bill of Landing Fee• Terminal Handling
Charge• Ocean Freight• Bunker Surcharge
• Port Charge• Terminal Handling
Charge• Sea Cargo Automation• Delivery Order Fee• Terminal Security Fee• Customs Clearance• Delivery
Overseas Charges Local Charges
• Overloading container is illegal & extremely dangerous.
• Average guide for container + goods is 23.5 tonnes
• R.T.A sits outside gate at Port Botany to check trucks
• R.T.A works off axle weights.
• Important that load is evenly distributed in the container.
Overloading Containers
Start your own warehouse.
Rent space in existing warehouse.
Outsource to 3PL company.
Just-in-time Delivery Model
OPTIONS FOR NEW IMPORTER
Master of your own destiny.
Handle goods way you want to.
Extra care – minimise damage
Provide most flexible service to your end-customer.
Tied to a lease.
Additional costs – forklifts, pallet hire, labour, etc.
Higher insurance premiums
OH&S / Workcover compliance
YOUR OWN WAREHOUSE
PROs CONs
• All the “PROs” of your own warehouse
• Possible sharing of costs – forklift, labour, etc.
• Potential to take over more space as business grows.
• Some of the “CONs” of your own warehouse
• Difficulty in finding right situation
• Conflict with resources
RENT SPACE
PROs CONs
• Most cost-effective for start-up operation.
• No lease or equipment costs.
• No OH&S/Workcover compliance issues.
• Piggyback on existing distribution services.
• Lose control of your cargo
• Less flexibility in servicing your customers
• Increased risk of damage or loss
• Increased risk of error?
3rd PARTY LOGISTICS PROVIDER
PROs CONs
• No warehouse, labour, or equipment costs.
• Less handling = less cost in your supply chain.
• Most cost-effective model.
• Least flexible model.
• No stock on hand for emergencies.
• Need accurate usage forecasts from your customers.
Just-In-Time (Cross Docking)
PROs CONs
• Air
• Truck
• Rail
• Ship
• 5-6 hours
• 4-5 days
• 8-10 days
• 12-14 days
TRANSIT TIMES TO PERTH
PROs CONs
Can be very expensive compared to international air freight.
Less options, less competitors.
Mainly serviced by narrow-body aircraft.
Only used in emergencies or for high-value cargo
Rates charged on “per kg” basis
Beware volume/weight ratio.
DOMESTIC AIR FREIGHT
Most common form of domestic contribution. Good balance between price, speed, and
flexibility. Plenty of operators and competition Rates charged on “per kg” basis Weight/volume ratio either 1cbm : 333kgs or
1cbm per 250kgs Pallet rates can be obtained for regular business
on mainline routes e.g. Sydney / Melbourne.
TRUCKING
Mainly used for long haul. More cost effective than trucking Suitable for large loads i.e. rail containers Container rates based on weight ---- heavy
containers cost more. Have to get container to rail yard at origin. Have to collect container from rail yard at
destination.
RAIL
Only suitable for full-container loads Only viable for long haul e.g. Sydney – Fremantle Cheapest way to ship goods to western Australia Still have to deliver container to terminal. Still have to pick up container on arrival Container rates charged same as international
shipping i.e. per 20ft/40ft/40ft high cube.
COASTAL SHIPPING
Should I take out marine insurance for my cargo?YES
Should I let my supplier take out marine insurance on my behalf?
NO
Are marine insurance premiums cheaper in Australia?Usually, YES
Will I have less problems if I insure from Australia?YES
INSURANCE
1. Is the commodity prohibited from importation into Australia?2. Are there any restrictions from importation into Australia?3. Are there any Australian Quarantine restrictions or prohibitions?4. Does my commodity need any special treatment/s prior to import?5. Do I have packing that requires treatment prior to import?6. Do I have all the required documentation / paperwork?7. Is the documentation/paperwork accurate?8. If FCL container: does the combined weight comply with the relevant
state transport requirements?
BASIC QUESTIONS PRE-IMPORT
Wooden packaging utilized in in FCL/LCL consignments should be treated using any of the options available for wooden packing.
Such consignments must be accompanied by an acceptable Treatment Certificate.
The acceptable methods of treatment are:
• Fumigation• Heat Treatment• Permanent Immunisation Treatment
Treatment Certificates are not required for:• New Processed panel product• Timer treated and marked in compliance with IPSM 15
TREATMENT REQUIREMENTS FOR SEA CARGO
What happens if my goods are not accompanied by a packing declaration?
A: If a valid packing declaration does not accompany a sea consignment, the consignment will be directed to AQIS for an inspection to verify whether or not wood packing and/or and straw are present.
What happens if timber packing is not treated when they arrive in Australia?
A: If a valid treatment certificate does not accompany a sea consignment, the consignment will be directed for treatment, destruction, or re-export of the packing material from Australia.
Questions and Answers