As Published by the CBFCA

The industry situation today

The latest announcements from the Federal and State and Territory Governments have put in place further restrictions on gathering and movement. There is an expectation that a third wave of even tighter restrictions is imminent based on developments globally.

While people are using the word ‘lockdown’ and preparing for restrictions similar to those in other parts of the world CBFCA is aware that not everything can stop and ‘essential services‘ will be required to operate for the community to access food, petrol, pharmacies, medical facilities, etc.

Ports and airports will continue to operate, and the associated logistics chain will be required to support the clearance and movement of freight to maintain supplies. It is the CBFCA  expectation that the critical role freight forwarders and customs brokers play in this chain will also be maintained, as they do in other countries that are in lockdown.

As freight and logistics is considered an essential service, even with some state borders being closed freight will continue to move across domestic borders. For more information refer to Australian Logistics Council media release.

CBFCA has been in contact with the border and biosecurity regulatory agencies and can confirm they have business continuity plans in place and will continue to provide essential services to facilitate border clearance, as they are also considered essential service providers.

Global Development Update

All provinces in China are moving towards normal production levels, and have announced they expect business and lifestyle back to normal in 2-3 weeks.

The average of the productivity in China is back to above 70% and much higher in some provinces.

Road restrictions have been reduced so most highways are back to normal operation now.

Chinese ports are operating however equipment shortage is an issue and shipping lines are in a process of repositioning empty container to meet the increased demand now that production has commenced.

Other countries have implemented differing levels of restrictions and lockdowns, but what is obviously essential services, as is the case in most countries, ports, airports and logistics companies, continue to operate. While freight is moving expect delays in operations due to the restricted movement.

Aviation Update

The COVID-19 crisis has seen almost the entire world-wide passenger aircraft fleet grounded, a fleet which normally transports almost half of total air cargo shipments. Airlines are scrambling to meet the gap between cargo demand and available lift by all means possible, including re-introducing freighter services and using passenger aircraft for cargo operations. The International Air Transport Association (IATA) is pushing for governments to support the aviation industry and to remove key obstacles. Fore information in the IATA Pressroom.

Global airfreight capacity has been severely reduced by the grounding of a large portion of the passenger fleet due to travel bans. Charter and dedicated freighters continue to be available, but these alone do not provide sufficient space to move the required volumes.

Many larger businesses and freight forwarders have managed to secure arrangements for aircraft charters or the use of passenger aircraft as cargo flights, but many SMEs do not have the volume to justify such an outlay. Industry may see increase in airfreight costs and delays due to the disruptions.

Maritime Update

Ports and vessel continue to operate worldwide. Shipping line’s capacity has been reduced but as the demand increases the capacity will increase to facilitate trade. Equipment shortage is an issue and shipping lines are repositioning empty containers to markets with increased demand.

For more information about Australia’s border measures, refer to Maritime Industry Fact Sheet.

Transport and logistics Update

The domestic transport and logistics industry has been considered an essential service and will continue to provide transport services to keep the freight moving during these challenging times.

Cargo Owners (Importers and Exporters)

As the cargo owners purchase and supply goods to the Australian and global consumers the CBFCA expects their businesses to continue to operate during restrictions or lockdown, as they are part of the global supply chain that provide essential services. Essential services are industry and not company based, and as cargo owners support the supply chain distribution of essential goods they must continue to operate. The Prime Minister made it clear his aim is NOT to close businesses that provide essential services, as the economic impact on Australian’s is just as bad as COVID-19.

Cargo Update

The CBFCA has been advised there is no border and biosecurity restrictions on imported cargo at the Australian border.

Currently, the World Health Organization advises that the likelihood of an infected person contaminating commercial goods is low and the risk of catching the virus that causes COVID-19 from goods that have been moved, travelled, and exposed to different conditions and temperature is also low.

Good hand hygiene is the best defence against most viruses. Wash your hands frequently or properly use alcohol-based sanitisers. Follow good cough etiquette.

You do not need personal protective equipment (PPE) when unpacking containers. This includes gloves, gowns, eye protection or face shields.

Documentation

If you are missing original bill of lading for goods in transit you can explore the bank guarantee option or telex release if the contracted parties agree to such arrangement. Also work with your shipping line to negotiate extension to free container detention period for containers affected due to the unexpected disruption.

If you are missing country of origin certificates the Australian Border Force has advised using the duty refund process currently available.

As to health and treatment certificates the Department of Agriculture Water and the Environment will accept copies of certificates for assessment purposes but reserve the right to request originals, as required.

As more members work from home and do not have high quality scanning equipment, we have informed the department to assess certificates based on copies provided for security features and authenticity and limit the need to request for original certificates.

We encourage you to stay in contact with your clients, suppliers and overseas offices / agents to commercially work through the supply chain disruptions and continue to assist your clients to facilitate trade.

More information about the COVID-19 can be found on the following websites.

World Health Organisation
Australian Government, Department of Health
Department of Agriculture, Water and the Environment
Department of Home Affairs

We will keep you informed of any further developments as COVID-19 evolves.

Stay safe and healthy and the CBFCA Team is here to help where possible.

Kind regards,