What is Cargo Abandonment?

International shipping and exporting goods to another country can at times be a complex and confusing journey. One issue not often considered by shippers until it happens is that of cargo abandonment. Whilst this issue of abandoned cargo has always been around, it is of growing concern in today’s difficult economic climate.

Cargo Abandonment (also known as abandoned goods or uncollected goods) occurs where, after a reasonable period a consignee either refuses to take collection of a shipment, or they cannot be found. Depending upon which country the goods are in, this “reasonable period” can differ anywhere between 30-90 days. For the shipper, this can pose a considerable risk and increased expense.

Reasons for abandoned cargo

There are numerous reasons that goods are abandoned.

• The goods have been mis declared and the customer refuses to take delivery of the cargo due to the discrepancy.
• Change of requirements. The customer doesn’t want or need the goods anymore.
• Change of regulations. The goods have become banned items that cannot legally be imported into the country anymore.
• The customer disputes to quantity or quality of the goods.
• The customer has gone bankrupt. They are no longer in business and cannot take receipt.

Whatever the reason, it is important to take action.

How to deal with abandoned goods

The initial step is to try and ensure that goods are not abandoned in the first place. This means drawing up clear and concise contracts. Clearly identify the obligations of the shipper, consignee, the shipping line, and the freight forwarder.

It is also vital to question whether you are dealing with reputable and reliable parties. Are they financially viable? Are they genuine traders? If you are not sure, be additionally careful when preparing contracts and payment terms.

If a situation of abandoned goods is encountered, the most important thing is to act quickly to mitigate any potential costs. The faster a situation can be resolved, the less cost to any or all parties involved. If the situation is left alone, it is possible for expenses to increase beyond the value of the cargo itself thereby making it more unlikely that the goods will be claimed.

Additionally, if you are dealing with any sort of perishable cargo, the longer the wait the more likely the goods will spoil.

Having a good freight forwarder who can keep you informed is essential at times such as these.

The consequences of cargo abandonment

When a cargo is left uncollected, the shipper may still be responsible for the additional charges. These can be;

• Demurrage fees. Fees for the delay in returning the shipping container to the shipping line that owns it.
• Port storage fees. Costs associated with the storage of the goods at the port.
• Disposal fees. If the goods remain uncollected, there may be expenses owing for their disposal. If you have not already been paid, you will also be out-of-pocket for the cost of the goods themselves.

These fees can quickly build and become a considerable (and usually unexpected) expense. Your freight forwarder can potentially help to mitigate some of these costs through prompt and ongoing communications between all parties.

These costs and the fact that there may be situations that are not possible to resolve are why we also recommend shipping insurance to cover such circumstances.

Actions to take if your cargo is abandoned

Where there is no hope of any party coming to claim the cargo, there are a number of options. Most of these will allow you to recoup some of the expense, though your profit margins may be slimmer. The typical options for abandoned cargo are;

• Resell the goods to a third party. This is easiest if the new customer is in the same location; they will simply need to arrange pickup. Should the buyer be at a different location, new shipping and import arrangements will need to be made.
• Return the goods to the shipper. This may, or may not be viable depending upon the nature of the goods themselves (such as perishables). It will also depend upon whether it is cost-effective to do so.
• It is sometimes possible to arrange auctioning of the goods through customs. This will likely result in a much-decreased sales value for the cargo.
• Donate the goods. If the cost is prohibitive to return and you can’t find an alternative buyer, it may be worthwhile donating the goods to a suitable cause.
• Destroy the goods. If there are no other options, you may need to destroy the goods. This will result in additional disposal fees.

How to avoid abandoned cargo

In order to avoid or minimise cargo abandonment issues, there are a few prime takeaways from this article. Importantly, know who you are dealing with and ensure your contracts are clearly formulated.

Secondly, take out marine cargo insurance to cover this eventuality. If your goods are abandoned, shipping insurance will at least help cover any losses.

Finally, ensure that you have a great freight forwarder on your side. They can help avoid many issues before they occur, and will be in your corner if they do.

At SPLS we are ready to assist with all your shipping needs. Contact us to discuss.

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The USA is a global powerhouse economy and one of Australia’s most important trading partners. If you are planning on shipping to the USA for import or export, there are a few things to keep in mind.

From Australia to the USA, there are only direct shipping routes to Long Beach, California. Most shipping traffic will pass through the Long Beach port and be forwarded as required from there.

And whilst America is obviously a nation prominent on the international platform there are sometimes areas where they differ with international standards. As such, there are a number of important elements to consider when shipping to the USA.

Shipping Regulations in the United States of America

When it comes to state law and regulation, the USA is not always united. There can be considerable differences between one state and another, more so than in many other countries. In fact, there can sometimes be differences in rules between individual counties.

As such, it is essential to know the rules and regulations for the destination of your goods.

How USA Geography Affects Freight Shipping

The USA is a land of beautiful and varied geography. This geography is something that can easily be overlooked when it comes to freight shipping, especially for international freight shippers.

When shipping within Australia, weight restrictions for shipping containers are generally pretty reasonable and consistent. Australia has plenty of flat, open space and no really large mountains. If you are shipping to the USA, however, especially to any inland destination, container weights are a serious concern.

Different destinations throughout the USA will have differing shipping container weight restrictions. Whether loaded on to truck or train, many of these containers will need to make it over the Rocky Mountains. Due to the sometimes steep grades of track or road, the weight allowances are carefully managed.

Whilst this is less of an issue for destinations close to the port or some areas along the coast, it is best to be prepared. Be aware of any weight restrictions that may apply for the location you are shipping to or from. Don’t overfill your containers as it could end up costing you.

Metric vs Imperial – and Shipping Containers

The USA holds great influence in worldwide trade. This can clearly be seen with the standardisation of shipping containers.

Although the majority of the world uses the metric system for measurement, the standards for shipping containers are still imperial. International shipping uses 20-foot and 40-foot shipping container sizes as the standards even as they measure the contents in cubic metres. Of course, within the USA they almost solely use the imperial system for measurement.

An awareness of this can help you from getting caught out. When dealing with shipping quotes, costs can be provided as a “per pound” or “per 40 cubic feet” figure. You will need to consider the conversion to metric in order to properly gauge the costs.

And whilst the 20ft and 40ft containers are primary for international shipping, some tradelanes with the USA allow other sizes. These shipping routes allow 45ft or even 48ft shipping container sizes as these are used reasonably frequently within the USA. Whilst this does not apply to any of the Australian routes, if you are shipping between the USA and another country, please check.

Similarly, any products you export to the USA should be appropriately labelled with imperial measurements. Any products purchased from the USA and imported to Australia should be labelled with metric measurements. Ensure your supplier over there is aware of this.

Freight Shipping Terms – Incoterms vs UCC

Worldwide freight shipping uses a standardised set of shipping terminology known as Incoterms. The Incoterms standards were first published in 1967, and for the last 40 years have been updated each decade.

These Incoterms are a set of 11 commonly used abbreviations that represent internationally recognised rules. These rules help to define the responsibilities of buyers and sellers when it comes to freight logistics.

The USA originally developed its own set of terms and meanings originally published under the Universal Commercial Code (UCC) in 1952. Whilst in most cases the terms and meanings of the Incoterms vs UCC align, there is a notable exception.

The commonly used term “FOB” meaning “Free On Board” has a varied meaning in the USA than is accepted internationally. Internationally, the “On Board” portion refers to loading onto a ship. In the USA it refers to loading onto any mode of transport. This can have serious repercussions if this was not clearly understood and something happens during transportation. Please view our glossary of shipping terms for a description of other commonly used terms and acronyms.

Be Clear on the Terms of Shipping

The most important thing when shipping internationally, not only with the USA but anywhere, is to be clear on the terms of shipping.

Ensure that you understand the obligations and potential liabilities to yourself and other parties involved in the freight transportation. This is regardless of whether you are a buyer or a seller.

Having a professional freight forwarding company on your side helps avoid many of the potential traps in international shipping. We have years of experience with worldwide shipping, including with the USA. Contact us to discuss your requirements.

The post Shipping to the USA? You Need to be Aware of These Things. appeared first on Air and Sea Freight Forwarding Logistics Specialists.

International shipping costs can make up a considerable portion of the cost to import or export goods. As such, importers and exporters are often looking around for a good deal.

One of the most common mistakes typically made by shippers is to confuse “cheap international shipping” with “a good deal”. All freight shipping, and especially international freight, comes with inherent risks. Cheap shipping providers can often ignore or obscure those risks in order to provide what seems like a better price.

Below, we outline some of the elements to consider when planning to ship goods internationally.

The Risks of Cheap Shipping

The risks of using cheap international shipping are usually attached to the unknowns. As such, it is important to ask a number of questions first.

• What is the reputation of each of the shipping lines you are considering?
• Are they properly insured?
• Are they paying their bills? What is the financial outlook for the shipping line?
• What is their reputation?
• Who takes on the liability for the delivery?
• Are you getting good or honest advice?
• Are there other concerns that a shipping line is ignoring, such as environmental issues?

Asking these and other questions helps you to make appropriate decisions for your business shipping requirements.

The Financial Risks of a Shipping Line

At least some knowledge of the financial situation of a shipping line is useful.

• Is the company at risk?
• Are they paying their bills?
• Is the company backed by banks or even governments?
• If something goes wrong, what is the liability to your, the customer?
• Is there transparency about these issues?

If a company is not paying its bills or being properly insured, the risk and liability to the customer are increased.  Shipments can be delayed or halted with little or no warning, and sometimes with doubtful legal status.

Whilst the issues of financial risk are more likely with smaller shipping lines, the big players are certainly not immune.

A number of years ago a very large international shipping company based in Korea went bust. They were offering cheap but ultimately unsustainable shipping rates. They ended up with a global debt of over US$25 Billion.

There were many people who were aware of the situation but had chosen to ignore the signs.

As a result, their vessels were arrested and impounded. All cargoes were offloaded at whichever port they were in at the time. This left many containers stranded and their owners scrambling to find alternative shipping options.

Many people lost a lot of money. Having a knowledgeable freight partner can help you avoid many of these risks and potential losses.

The Risks with Shipping Insurance

Shipping insurance is available exactly for the purpose of covering many of the risks associated with international freight shipping. The risks with insurance come in a number of forms;

• Failure to insure shipments at all.
• Under-declaring or mis-declaring cargoes.
• The insurance does not cover certain circumstances or destinations.
• Insurers unwilling to insure certain (smaller) shipping lines due to perceived risk.

The world is an uncertain place. International freight transportation can be just as uncertain.

There are always unexpected or unforeseeable circumstances, from weather and wars through to simple changes in delivery schedules. Whilst delays can be costly, delays on time-sensitive goods can be disastrous.

Protecting your goods and your business against the unexpected is why we always recommend you take out freight insurance. However, there are situations where cargo insurance is not available or even on offer to some shipping lines. Knowing which ones in advance can be extremely helpful.

Additionally, if you are importing, be aware of where the goods are shipping from. More so, understand the shipping terms you have agreed to (if you have not arranged the shipping yourself). Not all parties will be honest and upfront with you. Some countries have a greater reputation for this than others.

An under- or mis-declared cargo may be discovered at any point along the route, although potentially not until the destination customs. The longer the time for discovery, the greater the impact is likely to be on your business.

Check, check, check, and know the terms of shipping.

Environmental Issues with Cheap International Shipping

We all know that the environment needs care. Most countries have at least some environmental protections in place. There is considerable environmental impact with international freight shipping, and there are a number of factors under consideration. These are;

• Fuel quality. There is a move towards using low sulphur fuels or clean fuels to reduce polluting emissions. Some smaller carriers especially may not follow these guidelines or regulations.
• Vessel maintenance. Poorly maintained vessels are at higher risk of failure or leakage. This can lead to more toxins and pollutants entering the environment.
• Intentional or uncaring pumping of unclean ballast water or bilge water. Both these can contain pollutants or organic materials that are hazardous to the local environment. Discharge of either of these in sensitive marine areas can cause untold damage. Additionally, bilge water is meant to be treated before discharge to remove contaminants. Some carriers avoid doing this in order to save costs.

Environmental risk and regulations are one area in which unethical shipping lines can make considerable cost savings by ignoring. They are also hard to pin down and are therefore obscured to the shipper.

Additionally, and similar to the previous risks, is if a vessel is delayed or impounded due to a breach of environmental regulations. You are the one that takes on the liability for such risk.

Using Larger Shipping Line vs Smaller Shipping Lines

Ports are built where geography allows, as close as possible to major centres of trade. Many deliveries, however, are bound for more distant locations within a local region.

Shipments are usually transported to the nearest major port aboard larger vessels then transferred to smaller vessels for local deliveries. Even past the secondary port, there can be further road or rail transportation required.

Generally, there is more risk inherent with the smaller shipping lines and local deliveries. If a shipment has been arranged through a larger line, however, they can carry the risk all the way to the destination. When the smaller shipping lines are arranged directly, the shipper (often yourself) carries more of that risk themselves.

This is all reflected in pricing. The more risk you take on personally (whether obvious or not), the cheaper the shipping prices you can be offered. It is the awareness of these risks that will help prevent getting caught out.

Direct with a Big Carrier vs Smaller Freight Forwarder

As a smaller freight forwarding company, we get asked: “Why not go with a large shipping line directly?” There are a couple of answers to this;

First of all, a large shipping line deals with customers of all sizes, all the way up to major multinationals. Smaller clients will be relatively less important within the context of a large corporate business.

We are betting that you are not a multinational company but would still like good customer service. SPLS provides that service and are available to you 24 hours a day should the need arise.

Secondly, with us, you receive the full benefit of over 40 years experience and knowledge in the shipping industry. With a major shipping line, you are more likely to get a relatively inexperienced junior dealing with your shipments.

We offer;

• Awareness of the sometimes intricate and confusing processes of international shipping.
• Knowledge of local shipping laws and regulations around the world.
• Direct service. You will always know who you are dealing with.
• Reduction in risk associated with your shipments, whether for import or export.
• Transportation between other countries, not only to or from Australia.
• Always on-hand to manage a shipment should something unexpected happen.
• Development of freight plans for business to reduce uncertainty.

In general, better service is what you get with a small freight forwarder.

Cost vs Value

As the saying goes “there is no such thing as a free lunch”. What you get tends to be what you pay for, and cheap international shipping is no different.

Of course, there can be pricing variation and competition as with any industry. The important thing with international shipping is to be aware of the potential risks and liabilities you are taking on-board with any reduction in price. You may find too late that some of these you are not willing to pay.

Contact us for a discussion of your shipping needs and what is important for you.

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Import and Export trade between Laos and Australia is quite strong, and development is ongoing.

Laos is a country in Asia surrounded on all sides by land (a landlocked country). It borders on four countries; Cambodia, Thailand, Myanmar, Vietnam and China.

Whilst not a large country (population of around 6.6 million), it is fascinatingly, a very young country. Incredibly, over 70% of the population is younger than 35 years. As a trade partner, this lends Laos a certain amount of dynamic energy.

Current economic factors and opportunities centre around mining, construction and real estate, power generation and some manufacturing. There are also opportunities for trade within agriculture and forestry.

Current exporting to Laos from Australia involves mainly liquid pump machinery and parts such as taps and valves. Civil engineering equipment is also a common export from Australia for use in mining, hydro-power generation and construction.

The main imports to Australia from Laos are clothing and jewellery.

Exporting to Laos

Australia and Laos are members in a number of international organisations that aim at fostering trade and understanding between countries.

Laos became a member of the World Trade Organisation (WTO) in 2013. Together, Australia and Laos are both involved in a number of Free Trade Agreements. It is worthwhile investigating these agreements for export and import opportunities.

Additionally, the Australian Federal Government offers Export Market Development Grants. These trade grants assist businesses in developing trade relationships with certain countries. Laos currently meets the criteria for one of these grants.

Australia and Laos are also both members of ASEAN, Association of South-East Asian Nations.

Freight Shipping to Laos

As a landlocked country, freight access to Laos occurs only through certain routes.

For shipping between Laos and Australia, the typical route is through Thailand. Consequently, shipments are via a Thai port and are then shipping overland between the port and Laos.

Importantly, there is another consideration to note when transporting goods to or from Laos. Only certain freight companies are legally licenced to do this. Choosing an unlicensed shipping provider can land you in a world of difficulty (and expense).

If you have goods you want to export to Laos or import from Laos to Australia, please come and speak with us.

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Serbia, as a trade partner with Australia, has been growing momentum over the last few years.

Whilst still relatively small in overall trading volumes, Serbia to Australia imports have shown over 40% year-on-year growth recently. Exports from Australia to Serbia have shown a more steady 15% growth.

All this means opportunity for those looking for import/export business with this former Yugoslavian nation.

Current trade volumes to Australia are around AU$65 Million. The types of goods that Serbia currently exports to Australia include;

• Liquid pump and parts for their maintenance.
• Medical instruments (including veterinary products).
• Soaps and cleansers
• Toys, games and sporting equipment.

The most common goods that Serbia imports from Australia are;

• Telecommunication equipment and parts.
• Measuring and analysing equipment.
• Medical instruments.
• Some machinery, both electrical and non-electrical.
• Some furniture.
• Plastic goods.

The export market to Serbia is considerably smaller than imports at around AU$9 Million per year.

Whilst not a large country, Serbia’s almost 7 million population are increasingly on the lookout for overseas goods.

Freight Shipping Between Serbia and Australia

Serbia is a slightly unusual case when it comes to shipping freight.

Serbia is one of the world’s few landlocked countries. This means that is has no sea border or direct access to a port. As such, part of the freight transportation will always be overland.

It is important to understand the issues involved with this. There can be additional border checks and customs clearances. There may be delays in the return of shipping containers to the shipping lines, thereby incurring demurrage fees. Other regional factors may also have an effect.

Most freight comes into Serbia via Greece, however, the shipping lines have been increasing investment in the Balkan Peninsula region. There are now options via the city of Bar in Montenegro and Split in Croatia. Which option is chosen depends upon the end destination in Serbia as well as other potential factors.

It is also important to book and plan your road transportation in advance. Sometimes you can arrange this through the shipping lines themselves. The goods will be trans-shipped between the port and the Serbian destination (or origin). This is not always the case, however, so check beforehand. As with all international shipping, you should have a good freight plan in place.

If you are exporting to Serbia, or have goods you want to import to Australia from Serbia, come and speak with us.

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Sea freight is the most cost-effective shipping method for larger shipments. Around the world, however, there are a number of countries that are “land-locked”. This means that all their borders are land-based and they typically have no direct access to a seaport.

The number of landlocked countries (and countries in general) in the world varies from time-to-time. There are regions which will become autonomous and recognised as their own country. The reverse also happens. Also, not all countries are recognised as independent by all others. There are currently between 44 and 48 landlocked countries in the world.

Shipping to landlocked countries will be more frequently required for certain continents more than others. Africa and Europe both have a considerable number of landlocked countries (Africa 16 and Europe 15). South America, by comparison, only has two.

The Challenges of Shipping to a Landlocked Country

The obvious issue of sea freight shipping to a landlocked country is that they have no seaports.

Airfreight shipping is one alternative, however, for larger shipments that is usually cost-prohibitive.

The remaining alternative is to ocean freight a shipment to a neighbouring countries seaport, then transport overland. This opens up many options, but also creates numerous challenges. These can include;

• Multiple possible routes to the final destination. Which seaport will be the best entry point?
• Additional customs clearances and inspection requirements. Initially, the country with the seaport, then any land borders crossed.
• Arranging additional road or rail transportation. It is sometimes possible to arrange this through the sea freight shipping companies, but not always.
• Extended shipping container return times. This can open up the possibility of detention/demurrage fees.
• Border conflicts.

Freight forwarders such as us have experience in getting your shipments to wherever they need to go, land or sea. We understand the unique challenges involved in shipping to various countries.

Shipping Regions for Landlocked Countries

Each continent around the world typically has its own challenges to consider. Having said this, certain individual countries add additional complexity to the shipping process.

Shipping to Europe

Europe is one of the more highly regulated and controlled markets to ship to. The most common consideration for shipping to landlocked European countries will be routing. For example, which seaport will be the best starting point for cross-country transportation?

Landlocked European countries include Hungary, the Czech Republic, Austria, and Switzerland. They also include the former Yugoslavian states such as Serbia and Macedonia.

Shipping options to the Slavic countries are opening up. There is greater availability of inland shipping terminals and to-the-door deliveries, however, there are specific rules and regulations to consider. Currently, much shipping to these countries happens via Greece.

Shipping to Africa

Much of Africa has rules and protocols in place to facilitate cross-border shipping of goods. We have experience with the protocols for shipping to Africa.

One main consideration with shipping in Africa is knowing the regulations for the countries being shipped to. Flouting rules and mis-declaring cargoes adds considerable risk to your shipments.

Landlocked African countries include Zimbabwe, Botswana, and Ethiopia.

Shipping to Asia

Some of the most challenging countries to ship to in Asia are the “stan” countries. These include Kazakhstan, Uzbekistan, and Turkmenistan.

Weather is not the least of the issues exporters encounter when shipping to these countries. Extreme cold weather can delay shipments for considerable periods. We recommend purchasing your own shipping containers when shipping to this region to avoid possible substantial demurrage fees.

Other issues are encountered with shipping to Afghanistan, for example. Current embargoes mean there are restrictions on how or what is shipped there.

Other landlocked Asian countries include Nepal, Laos, and Mongolia.

Shipping to South America

There are only two landlocked countries in South America; Paraguay and Bolivia. Both typically ship via Brazil.

Shipping to Paraguay often happens via a Brazilian river system but is dependent upon the river system running.

Import and Export into Landlocked Countries

Shipping to and from landlocked countries is typically more expensive than to those with ocean ports.

Whilst there are plenty of import/export trade opportunities for these countries, transportation can be more difficult. The additional cost of rail or road transportation needs to be closely considered.

Having said that, in the vast majority of cases, where there is a will there is a way. We can find it for you.

Contact us now to discuss your shipments.

The post Freight Shipping to Landlocked Countries – Considerations and Challenges appeared first on Air and Sea Freight Forwarding Logistics Specialists.

Japanese Free Trade Agreement

Australia has a Free Trade Agreement with Japan. Whilst some commodities are duty free, others are subject to some duties and restrictions – notably wine and spirits and foodstuffs. The Free Trade Agreement with Japan stipulates that these will eventually be free as well.

Japan has some other free trade agreements that may affect goods or services you want to export to Japan.

If your documents are not in order, it is very likely your goods wont be loaded in the first place. Even if they were loaded, they certainly won’t be allowed entry. Furthermore, all of the costs for compliance are applied to the account of the exporter.

Japan has high risk controls on all imports, so it is imperative that you follow all documentation requirements. Regulatory barriers, including licensing requirements, restricted goods, certifications, labeling requirements, and more besides – check and check again.

Japan also has high risk controls on outside packaging. You should check with your buyer as to what is and isn’t allowed. For example, normal wooden pallets are not allowed, whereas these could be used for domestic transport.

Barriers to export

Tariffs on most imported goods into Japan are relatively low. However, cultural, regulatory, and other non-tariff barriers to market entry continue to exist. The following is a non-exhaustive list of some barriers companies may encounter:

• Japan-specific standards and testing requirements
• Import license requirements
• Restricted or prohibited imports
• Temporary entry of goods
• Certifications
• Labelling requirements
• Long term local partner/distributor relationship issues and expectations
• High context business relationships and procedures
• Inability to communicate in English
• High expectations for quality and customer service
• High cost for entry due to size of economy

Shipping to Japan

Tokyo is the main gateway for shipping cargo into Japan from the world. Its deepwater port is called Yokohama.

Several other ports and cities across Japan are serviced for FCL (full container load) cargoes, but LCL (less than a container load) cargo is consolidated into containers in Australia and can be shipped to the destination by any number of routes.

There are daily flights from Australia to Tokyo and Osaka and cargo can be sent on direct flights at premium rates, or held for consolidation.

If you are not a regular established exporter to Japan, then you should thoroughly check all requirements and shipping routes before proceeding. SPLS can assist with this.

Resources to help you with exporting to Japan.

Customs Requirements For Exports From Australia – A great starting point of research when exporting goods to Japan.

Doing Business In Japan – An overview of the Japanese import markets.

Tariffs and Regulations – A tariff finder tool to discover current Japanese import tariffs.

Japan Customs – Import / Export – Resource of Japanese customs rules and regulations.

Specialised Projects and Logistics Services (SPLS)

SPLS can help with all your freight forwarding and logistics requirements, including when exporting to Japan. Contact us to discuss how we can help build your import/export business.

The post Exporting to Japan – Tips and Links to Help appeared first on Air and Sea Freight Forwarding Logistics Specialists.

Currently, the federal trade minister is Steven Ciobo.

For the year 2016/2017, Australian Exports totalled $373.2bn, whilst our imports were valued at $362.1bn. Pretty good, but since most of our trade is conducted in USD; any fluctuations in the exchange rate can have severe consequences to these figures.

No wonder that exporters and our Government would like the exchange rate to the USD to be somewhere about 0.65, but importers would like the reverse.

Last I heard, global trade with Australia – both import and export, including our resource exports such as iron ore, represented about 1% of global trade. One might question the importance of trade to and from Australia in this context, and the costs with which we have to deal with. Consider that we are an island nation, so international trade can only happen by sea or air, and Australia is not really close to any of its major trading partners except New Zealand, so, in the main, Australia suffers high transport costs as the result of our “tyranny of distance”.

Major Trading Partners

Not withstanding all this preamble, Australia’s top trading partner is China, a position it has held for the last 11 years. two way trade with China was valued at $174.7bn.

Not surprisingly, resources were again the driver, with iron ores and concentrates and coal accounting for 31.4% of our total exports.

Our next major trading partners are in order – Japan, USA, South Korea, India, Thailand and New Zealand.   

Apart from iron ores and coal, our major exports are listed as meats and grains, whilst our imports (apart from services) are listed as passenger vehicles, refined petroleum, telecom equipment and crude petroleum.

Specifically, exports of merchandise to China is listed as iron ore worth $51.7bn and coal worth $11.2bn, wool and animal hair as $2.4bn; whilst imports from China are listed as telecom equipment and parts $7m, computers $5m, furniture $2.6m and prams, toys, games and sporting goods $2.3m.

Exports of merchandise to Japan are coal $15.2bn, iron ores and concentrates $5.4bn, beef $1.9m, and other major exports include copper ores and concentrates, aluminium, sugars, molasses and honey. Imports of merchandise from Japan include motor vehicles $7.4bn, gold $2.6bn and refined petroleum $2.5bn.

Exports to the USA was dominated by meat $2.434bn, followed by aerospace components $855m; whilst imports of passenger motor vehicles of $2.2bn, aerospace craft and parts of $2bn, followed by medical equipment and instruments of $1bn.

Basically, our exports and imports to all other countries follow a similar pattern.

The figures for “merchandise” do NOT include any specific figures for things such as education or other services.

Obviously there are huge amounts of exports and imports that we consume on a daily basis that are not mentioned here. It just goes to show the importance and value of these major items.

This article was written by Mark Salmon.

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Australia does not have a free Trade Agreement with Canada, so most commodities are subject to some duties and restrictions – notably wine and spirits and foodstuffs.

Canada has a number of provinces, and there are some trade and language restrictions from one coast to the other.

Canada is, however, a signature to NAFTA (North America Free Trade Agreement). There are many trade concessions between Canada, USA and Mexico that may affect any goods or services you want to export to Canada.

Some goods cannot cross the border from the USA, so sometimes shipping is not as easy as first seems.

Canada has high risk controls on all imports, so it is imperative that you follow all documentation requirements. If these documents are not in order, it is very likely that they wont be loaded in the first place, but if they were, they certainly would NOT be allowed entry, and all of the costs for compliance are for the account of the exporter.

Vancouver is the main gateway for cargo into Canada from across the Pacific Ocean. Several other ports and cities across Canada are serviced for FCL (full container load) cargoes, but LCL (less than a container load) cargo is consolidated into containers in Australia and can be shipped to the destination by any number of routes.

There are daily flights from Australia to Canada and cargo can be sent on direct flights at premium rates, or held for consolidation.

If you are not a regular established exporter to Canada, then you should thoroughly check all requirements and shipping routes before proceeding.

If you need advice and a freight rate then send us and email and include the following, type of goods, size of goods, which port the goods are to be shipped, whether you require marine insurance, when you want the goods to be shipped and where the goods are located i.e. do we need to pick up the shipment or will you deliver it to our warehouse.  Plus of course your name and contact details.

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Australia is quite a large producer of wine. Whilst a large proportion of  wine production is used locally, the domestic market can only absorb so much. Wine exporting is the typical destination for the remainder.     

With regard to exported wine, there are two major categories – bottled wine shipping and bulk wine shipping.

Choices for bulk wine shipping

Typically, bulk wine is exported either in food-grade ISO tanks or bulk in bladders in 20ft General Purpose (GP) containers. The preferred option usually depends on the destination and distance.

Bladders in 20′ GP containers are cheaper than ISO tanks, however, they are less robust than ISO tanks. Bladders do tend to sweat and leakage can occur. They are therefore not usually recommended or used for long haul destinations such as Europe.

Shorter haul locations are more suitable for wine stored in bladders. The shorter journeys will generally result in less wastage and be more cost-effective overall.

ISO tanks have a considerably greater level of protection. They are a safer way to bulk ship wine, or any liquids for that matter. The downside of ISO tanks are the additional cost. This needs to be balanced against the potential for leakage and waste.

Bottled wine shipping options

The shipping of bottled wine is less common. Australian wine is more often exported in bulk and then bottled at the destination for local consumption. It is also frequently blended with wine produced in the country of destination and is then bottled and sold as that country’s wine. This typically happens with countries that might impose a high import tax or restrictions on bottled wine.

Interestingly enough, this used to be a common situation with exporting to New Zealand. A small side business has grown for the bottling of imported wine. This is even now happening in reverse when importing New Zealand wine into Australia.

When shipping bottled wine, it is vital to get advice on correct packing and freight forwarding to avoid breakage and loss.

Long-term prospects for shipping wine

Due to the fact that wine is grown and produced in more and more countries, wine exporting is not likely to show any sustained growth. Despite this, there will always be a certain level of market.

If you have any requirements for bulk wine shipping or bottled wine exporting or importing, please come and speak with us. We can help get your product to your overseas consumers.

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