With so many updates from the industry, it can be difficult to keep track of the updates from so many different sources.

Below are some of the industry updates that Kuehne + Nagel have sent to our customers.


Updated 9th April, 2019

Seasonal Measures for Brown Marmorated Stink Bug (BMSB)

In response to the rapid expansion of brown marmorated stink bug (BMSB) throughout Europe and North America, the Department of Agriculture and Water Resources (DAWR) has strengthened the seasonal measures to manage risk of BMSB from arriving in Australia for the 2019–2020 risk season.

The DAWR conducted an information session on Tuesday, 2 April 2019 regarding the proposed measures for the BMSB 2019–2020 season.

The four most notable changes from the current 2018–2019 BMSB seasons are as follows:

1.    Greater expansion of target risk countries.

2.    Potentially, mandatory off shore treatment of all LCL and FAK shipments. Important to note, this measure is still be confirmed.

3.    Proposed list of goods including tariff chapters for target high risk and target risk goods is still under consideration.

4.    Safeguarding arrangements:

a.    The department is working to develop policies to allow for certain goods and supply chains to be recognised under safeguarding arrangements for the 2019–2020 season.

Target Risk Countries – Increased from 9 to 32 countries

 

United States of America

 

Czech Republic

 

France

 

Canada

 

Georgia

 

Russia

 

Albania

 

Germany

 

Serbia

 

Andorra

 

Greece

 

Slovakia

 

Armenia

 

Hungary

 

Slovenia

 

Austria

 

Italy

 

Switzerland

 

Azerbaijan

 

Kosovo

 

Luxembourg

 

Belgium

 

Liechtenstein

 

Romania

 

Bosnia and Herzegovina

 

Macedonia

 

Spain

 

Bulgaria

 

Montenegro

 

Turkey

 

Croatia

 

Netherlands

 

 

 

Japan (heightened vessel surveillance will be the only measure applied)

 

In addition, the department continues to review the changing pest status of BMSB and will also be undertaking a lower rate of random onshore inspections on goods from other countries to verify pest absence in goods.

As the up and coming season (2019–2020) measures are confirmed, Kuehne + Nagel will issue notifications to all customers.  

Should you have any further questions related to this matter, please contact your local Kuehne + Nagel representative.


Updated 24th October, 2018

Commercial Implications of IMO 2020 Sulphur Regulation

Please see below information regarding commercial implications of the IMO (International Maritime Organization) 2020 Sulphur regulations that will impact shipping lines globally.

On 1 January, 2020 a new regulation from the IMO will require all shipping lines to switch to fuels with a maximum Sulphur content of 0.5%, whereas today the cap is at 3.5%.

Currently, low Sulphur fuels are significantly more expensive. External sources estimate that additional cost to the shipping industry may be more than USD $60 Billion.

There are three ways to comply all with challenges, risks and uncertainties.

Use of low Sulphur fuels (max 0.5% Sulphur):

  • Significantly higher fuel prices (currently only 0.1% sulphur fuels available)
  • Refineries to develop 0.5% Sulphur fuel – there is uncertainty of the price but it is likely to be more expensive than current fuels

 Scrubber method and use of high sulphur fuels: 

  • Scrubber installations will require dry docking in most cases
  • High investment costs
  • Some regulatory uncertainty
  • Down time risk and compliant fuel needed for back up

 Use of LNG propelled vessels:

  • Only relevant for new-built vessels (too expensive to retrofit)
  • More complex fuel handling
  • Potential limitations to cargo operation during bunkering, due to safety requirements in the area of the bunker station.

 A significant increase to the cost of shipping

Shipping lines will have to comply with the new IMO regulation by using low Sulphur fuel, a significant benefit to the environment and to human health.

As a result of the IMO regulation, customers should be prepared for significant increases to the cost of shipping.

One shipping line estimates that the cost increase will be in the order of USD $175 - 225 per TEU for standard containers, with significant variation depending on fuel price and length of travel.

Currently all shipping lines are studying viable alternative options, such as installing scrubbers and LNG powered vessels.

Click here if you would like more information on how a scrubber operates.

Should you have any further questions related to this matter, please contact your local Kuehne + Nagel representative.

Kind regards,

Kuehne + Nagel Australia