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 Sydney Direct Carriers

Flying Time of 11 hours

Direct Services

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

Weight Distribution In Container

Incorrect loaddistribution.

Load not evenly distributed.

Correct load distribution

Load evenly distributed

Weight Distribution In Container

WAREHOUSING AND LOGISTICS

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

INSURANCE

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

AUSTRALIAN INSURANCE CUSTOMS AND QUARANTINE

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