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The Australian logistics industry is an important factor to the national, being an island, and thus many measures are taken to grow the transport, logistics and shipping industry state-by-state and as a nation on a yearly basis. In this blog post by Transco Cargo Australia, we look back on 2017 whilst highlighting expected forecasts by industry experts.

First and foremost, when you take in the Australian logistics industry you also look at transport and shipping, and thus the scope of the industry covers a lot of ground. The scope of the Australia logistics industry covers the likes of services rendered from courier pick-up and delivery, customs agency services, warehousing (cold storage/grain storage for bulk shipping), long distance bus transport, port operations, postal services, road/rail/air/sea freight forwarding, removals and movers, road freight transport, scenic/sightseeing transport, taxi/limo services, as well as urban bus and tram transport services too.

If we were to take a snapshot of the key transport and Australian logistics industry metrics, it would show the following.

Revenue ($b) 96.65

Profit ($b) 10.41

Average Wage ($) 66,712.44

No of Businesses 84,635

Employment Growth to 2023 (%) 3.3

Transport And Logistics Workforce By State/Territory

Source: Australian Bureau of Statistics (2017) 2016 Census – Employment, Income and Education

The Australian logistics industry has a few challenges and opportunities too. These include the likes of technological innovations and automation, the IoT, omni-channel logistics, supply chain, traceability, safety & regulatory environment, and gender diversity.

With technology playing a key part in both challenges and opportunities in the Australian logistics industry, the introduction of Industry 4.0, which is “the next industrial incorporating  complex computerised systems, data, and software to aid in smart processes and products”, this will affect the Australian logistics industry, in terms of the workforce and the skills needed.

Predominately, the Australian logistics industry is male, but with the advent of Industry 4.0, more opportunities will open up for the female workforce. Whilst automation isn’t a new player in the Australian logistics industry, its use and growth has increased rapidly seen in the likes of Port of Melbourne (with the VICT (the Victoria International Container Terminal – automated container terminal operations), as well as at Port Botany in Sydney, and the Port of Brisbane too which covers the south-eastern coast of Australia.

There are plans to also bring in semi-autonomous vehicle technology (as those introduced by Tesla Motors) to the road freight/transport sectors. The likes of ITF (integrated transport facilities) are also in gear for operational components such as receipt of goods, logistical storage, and dispatching within a unified centre.

The Internet of things (or IoT), reflects the use and trends of networking devices/sensors/data collecting tools for information mining/gathering. This aids in tracking operations (assets and goods), understanding capacities of warehouses as well as transportation of freight.  T

Omni- channel logistics, which means combining the various channels of logistics seamlessly, facilitates the ability to allow consumers to purchase items all year round. The change from traditional single/multi-channel processes in the logistics area to that of omni-channel logistics (which means all day/night availability of consumerism and a multiple delivery locations) that work towards making it as convenient to the consumer as much as possible. This in turn ties up supply chain with marketing and merchandising all in one.

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At Transco Cargo, we love to deliver and we love delivering on expectations of our customers. To serve you better, we are closing down our Noble Park office and not to mention moving our Head Office from Campbellfield to the new Transco Cargo office in Dandenong.

Dandenong has had a urban renewal after the war and revitalised as a an activity centre especially due to its proximity concerning logistics and accessibility. Dandenong is close to 30 kilometres away from the Melbourne City Centre (or Melbourne CBD), the Victorian Government has many plans for this Melbourne suburb. In 2013, with the release of its vision named “Victoria – The Freight State”, it highlighted ambitions to propel Victoria’s freight capabilities higher than those of its sister states.  The plan was to include Greater Dandenong with the Dandenon South MIS Terminal to balance the freight transfers from the Port of Melbourne to that of Hastings, and vice versa. This will be done hand in hand with rail and road networks/connection improvements.  The following image, courtesy of the City of Greater Dandenong, highlights the intended plans.

Having said so, the move of the Noble Park office to Dandenong would mean greater opportunities for Transco Cargo but also more freight forwarding capabilities to the Greater Dandenong customers due to its proximity to Dandenong South. The new Head Office will be located on Discovery Road, which is accessible via the Dandenong Valley Highway (Frankston-Dandenong Road)- and then onto Jayco Drive before turning onto Discovery Road. 206, Discovery Road, Dandenong is the new Transco Cargo office in Dandenong which will also act as the new Head Office.

 

 

The new Transco Cargo office in Dandenong which will also take on the responsibility of being the new Head Office, will maintain Transco Cargo services across board. These include the following.

A QIS Inspection Services for Food and Personal Effects Shipments – Read up on “How Customs Clearance and AQIS affects Importing Commercial Cargo and Personal Effects” to understand why this is an important service to our clients

Customs Bonded Facility – Read up on “Why Customs Bonded Warehouses are Important” to understand why Transco Cargo offering these services is beneficial to our clients.

3PL Services – 3PL stands for Third Party Logistics, and with Transco Cargo being specialists in offering integrated operations, warehousing and transportation services to our corporate clientele, many companies outsource their distribution and fulfilments services to Transco Cargo Australia.

Furthermore, the new Transco Cargo office in Dandenong will also offer warehousing facilities as its other freight warehouses in Melbourne (Campbellfield and Hoppers Crossing).  All Transco Cargo warehouses are under 24/7 video surveillance with back-to-base monitoring. Our vehicle fleet is also equipped with GPS tracking, and our freight agents are trained professionals in the logistics industry and can service you in all freight forwarding needs, now from the new Transco Cargo office in Dandenong.

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Last year, the government of Sri Lanka announced an amendment towards two logistics related acts (Sri Lanka Ports Authority Act, No. 51 of 1979 and the Merchants Shipping Act, No. 52 of 1971) during the 2017 Budget. The acts were to take steps to forgo the shipping agents within the logistics industry of Sri Lanka and to lift regulations against foreign owned shipping/freight forwarding agencies so they are able to operate within Sri Lanka. This in turn will enable international shipping agencies/lines to enter the logistics indust​r​y in Sri Lanka without any barriers to entry.

The change is being carried out in the hope of attracting top players in the international logistics market to invest in the logistics industry in Sri Lanka. Prior to the amendments, international shipping players were only permitted to own 40% stakes in a local shipping agency which limited investments due to lack of operational control and minority equity stake. By liberalizing the constraints in the logistics industry in Sri Lanka, key players such as Maersk can be invited to invest in Sri Lanka. By doing so, transaction costs may be lowered and in line with the development of transhipment hubs in India and Pakistan being developed, the movement of increased volumes will be possible.

However, the 2017 budget proposal created shock-waves in the logistic industry in Sri Lanka with much opposition by the CASA (Ceylon Association of Shipping Agents) and SLFFA (Sri Lanka Logistics and Freight Forwarders Association). Their arguments against the 2017 Budget proposal includes the fact that further foreign investments (more than 60% on shipping agents) will not reduce freight rates as freight forwarding agents do not control shipping rates, which falls under the purview of the shipping lines. Furthermore, the proposal included the use of ‘an independent Ports regulator’ without mention whether it will be an international or local party which can bring up national security complications.

The government has brought forth this proposal to stay in line with similar operations occurring in other Asian countries such as Hong Kong, Vietnam, and Singapore and for the logistics industry in Sri Lanka to be competitive in the global freight market. The logistics industry in Sri Lanka includes 130 registered members of CASA that represents major container shipping lines as well as non-container shipping vessels. Furthermore, there are more than 750 local shipping/freight forwarding/clearing agents, with more than 12000 staff employed by them.

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Ocean freight means sending goods via a shipping vessel. The cargo is packed into boxes or crates, and then loaded  onto shipping containers which are booked by the likes of freight forwarders/shipping agents such as Transco Cargo Australia. Based on the shipping terms you agree on when choosing ocean freight, the cargo is loaded onto a truck and then moved to  the warehouse which will be loaded onto a container and later taken to the port of origin.  The shipping terms may be port-to-port, pickup/delivery, door-to-port, door-to-door, or port-to-door. Many clients choose ocean freight over air freight. In this blog, we look at why.

Often, air freight is the expensive alternative to ocean freight, and that is one way why customers opt to plan in advance when needing to send something overseas. The size of the cargo also plays a factor in the consideration, as large cargo would prove to be difficult to air freight or it would be extremely expensive. There are some items that are on the restricted air cargo list, and must be sent via ocean freight but perishable items such as fruits/vegetables, you may not choose ocean freight over air freight due to the expiry date.

Thus le’ts look at the ocean freight over air freight pointers below.

Ocean Freight vs. Air Freight
Low Cost Cost High Cost
Slower Time Faster
Any size Size of cargo The size of the cargo will determine the feasibility of airfreight
No restrictions. Restricted cargo Some cargo is restricted from airfreight.
Perishable cargo Perishable cargo may have to travel by air to keep from spoiling

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One of our strength lies in ocean freight shipping, and with it of course, you are need to ship containers. With our base in Melbourne, if you are looking to ship containers from Melbourne to Sydney, Tasmania or further such as Singapore, Sri Lanka or any other country in the world, Transco Cargo Australia has your back. If you are looking to ship container from Melbourne via ocean freight, Transco Cargo is the best in the business.

With complete courier and delivery services included in our freight services portfolio, we strive to offer turnkey solutions for our personal and commercial cargo clientele. Coupled with our turnkey logistics solutions, we also offer total packaging services for your cargo before they embark on to be boarded onto the vessels to ship containers from Melbourne. You can opt to choose between drop off of the cargo at our three Melbourne bonded warehouses or we can simply pick them from the location the cargo is at. Under our service portfolio, we not only offer international and domestic freight, but also import and export deliveries too, just to name a few.

When you ship containers from Melbourne with Transco Cargo Australia, we can also undertake the packing and securing of the boxes and crates that may include the likes of handling electronics or computer items that require special packaging if the original packaging is not available, as well as safeguarding artwork and antiques that need special securing to withstand the long journey. With extensive care taken by our professional team of packers, your cargo will be in safe hands before they are loaded for shipping. We always recommend to utilise our packing services as ocean freight can be an arduous journey due to the power of the seas. Thus, proper care must be taken to ensure that your goods are secured within the boxes/crates with proper padding (such as with bubble wrap, cushions or foam).

You can also opt to take your excess baggage and opt to ship container from Melbourne prior to your departure so that you need not pay excess baggage handling fees at the airport. Let the Transco Cargo shipping experts help you with all the shipping documentation and the processes that need to be handled when you ship container from Melbourne with Transco Cargo. Get a quick quote for ocean freight today by visiting the Sea Freight Quotation Transco Cargo web page.

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The shipping process from picking up your cargo from the origin address to delivery (also known as freight cargo import haulage) is one that has s certain particulars that one needs to adhere to. As a reputed freight forwarding company, we at Transco Cargo International based in Australia and servicing the world, we ensure we help you every step pf the way.

So what is freight cargo import haulage? By definition, it is when your freight cargo is transported from the destination warehouse (or import warehouse) to its destination address (the consignee’s address). By norm it is done by truck, or even train, depending on location and distance it can also take up a few hours.

The freight cargo import haulage can easily be handled by the us, the freight forwarding company who will anyways be handling the international ocean freight, or even a local trucking company based on your requirements. In the event, you choose Transco Cargo to handle your import haulage; we may use our own transport fleet or one of our agents to assist us in import haulage on your behalf. Alternatively, the consignee can themselves pick up the cargo in an effort to save costs on import haulage. The freight cargo import haulage may move through various transport hubs to find the most efficient delivery route, and in some instances you are able to track your cargo as it heads towards you too (which may come at an added cost).

The responsibility of freight cargo import haulage and any payments that need to be made falls under the purview of the consignee, unless the incoterms are under Delivery Duty Unpaid/Paid (DDU/DDP). Many consignee opt to use   their freight forwarder inclusive of freight cargo import haulage for the  convenience that involves doorstep delivery. In such instances, customs duties are paid separately so that the process is smooth and easy.

Speak to Transco Cargo for all your door to door delivery shipping.

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In our previous blogs, we have looked at a few factors that occur during the process of shipping from the origin side. In this blog post, we look at what happens with destination handling once the cargo has arrived at the destination port and how it will be handled thereafter and not to mention the bureaucracies that one will have to go through with customs clearances.

Destination handling starts when the cargo arrives at the destination port of the country that the cargo is intended to go to. With Transco Cargo as your freight forwarder, the process of destination handling includes ensuring that the documents that were received at the point of origin checks out, and also checking these documents and also the submission of the original bill of lading with the shipping line. Once the documents have been looked over and checked out, the cargo container will be retrieved from the destination port and then moved to the destination warehouse, where the LCL container cargo will be inspected and then sorted based on the clients. Once that is completed, the sorted cargo will either await transportation for doorstep delivery or be stored for collection by the consignee.

It should be noted that the freight forwarder or the agent (of the freight forwarder) holds the responsibility of destination handling. The reason for this is, as it is the freight forwarder who is consigned the container and thus must also be the party that collects the container from the port.

In terms of payment, it is usually the shipper or the consignee who will be responsible.  With concern to the incoterms, in the event they are as DDU or DDP (which are acronyms for Delivery Duty Unpaid or Delivery Duty Paid respectively), this means to say that the  shipper is responsible for paying all costs involving bringing the cargo to the consignees destination (including destination handling). However, if you were to take other incoterms such as Ex Works (EXW), Free Carrier (FCA), Free on Board (FOB), Cost and Freight (CNF)/Cost Insurance Freight (CIF), then the responsibility of destination handling costs would fall on the consignee’s part.

In the next blog post, we will look at “Import Haulage” and what that exactly means in the world of cargo freight and shipping. Consult with Transco Cargo Australia about ensuring that your destination handling of your export cargo is done right and well.

 

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In our previous blog, Export Cargo Shipping Process Explained – Export Haulage, we looked into the first step involved; Export Haulage. In this blog post, we look at what “Origin Handling” entails and what the Export Customs Clearance procedure includes. Of course, as your trusted logistics service provider, Transco Cargo offers customs brokerage services apart from freight forwarding services to take out the hassle of international shipping.

 

What is Export Customs Clearance?

The country of origin requires that you process your cargo shipment through the export customs clearance procedure, which essentially includes the registration of the freight being sent out of the country. A licensed customs broker is tasked with dealing with the procedure and involves the declaration of the cargo. Transco Cargo offers customs brokerage services and will be able to provide you guidance with regards to the export documentation involved in export cargo shipping from Australia.

 

What is Origin Handling?

The process of origin handling involves a number of activities that is carried out by the freight forwarding agent. Transco Cargo Australia as freight forwarder for export cargo shipping will receive the cargo from the shipper when the cargo is unloaded from the domestic transportation choice (either train, truck or both) on to the warehouse staging area for counting and inspection. The export cargo shipping boxes and crates are then verified against the booking information and the issued freight forwarding agents cargo receipt to the shipper (which documents that the cargo has been received by the freight forwarder for export cargo shipping).

LCL Container Origin Handling

Once the export cargo shipping boxes and crates have been processed through customer clearance, when you are opting for the likes of LCL (Less than Container Load) container shipping, they will be stacked in the origin warehouse for consolidation into one of the designated LCL containers prior to loading.

The consolidation of cargo onto a LCL container is usually done when all the cargo that is meant to be sent the same destination port within the given time frame is ready to be loaded before the vessel arrives. Once the shipping vessel for the export cargo shipping arrives at the origin port, the cargo boxes and crates meant for that destination port is loaded onto the LCL container, and then container is transported from the origin warehouse to the origin port for departure. This usually involves a stack of containers banded together from various freight forwarded waiting to be loaded one by one onto the same container shipping vessel which will take the cargo to the common destination port.

Almost always, it is the freight forwarders responsibility to carry out origin handling; however, with concern to payments, it can be either the shipper or consignee based on the shipping terms agreed upon. In the event the cargo was sold on Ex Works (EXW) basis or on Free Carrier (FCA) basis, the consignee will have to pay, whereas if the shipping terms were on Free on Board (FOB) basis or Cost and Freight (CNF/CIF) basis, or Delivery Duty Unpaid (DDU) basis, then the shipper is responsible for the payment.  Origin handling fees are required to be paid before the export cargo shipping is loaded onto the container shipping vessel.

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If you are looking to understand how cargo shipping works, you have come to the right place. At Transco Cargo Australia we look at making the cargo shipping process easier. Often the choice of cargo shipping is via sea freight due to the lower costs involved. There are  various physical and documentation steps to take when going through the cargo shipping process. When you opt for international shipping, there are processes and costs that must be dealt with at each stage when moving the cargo from the shipper to the consignee. It is essential that these terms are agreed upon before embarking on the cargo shipping process; at Transco Cargo we make it simpler and handle all these factors on your behalf as a total turnkey logistics services provider. In this blog post, we look at the first step; Export Haulage.

What is Export Haulage and What is it?

The definition of Export Haulage includes the transfer of the cargo from the shipper to the freight forwarders warehouses (referred to as the origin warehouse). With Transco Cargo, our Melbourne based custom bonded warehouse offer the added benefits over normal warehouse facilities Export haulage usually occurs through a mix of truck or train transportation, and can occur over a course a few days to weeks depending on the distance and geography that it needs to travel.

With regards to the responsibilities, it is decided upon based on the shipping terms that the shipper has agreed to with the consignee. The IncoTerms (which is the governing set of shipping terms used for international trade), the likes of ExWorks (EXW) or Free Carrier (FCA) refers to export haulage being handled by the   consignee (including responsibility). Find more information on IncoTerms through our previously Transco Cargo blog posts.

These IncoTerms will make international transportation easier, and when you choose to ship with Transco Cargo, we will relay the benefits of each to you and explain the cargo shipping process too. As the experts in  freight forwarding and international logistics, we can help you decide on what is best suited for your logistics needs.

In the next blog post, we look at and Export Customs Clearance including and Origin Handling.

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With freight forwarding companies as does Transco Cargo based in Australia, often the term “Customs Bonded Warehouses” is used when referring to the services offered. But for those who are not in the logistics industry, this may well be an alien term. Thus, in this blog post by your reliable freight forwarding company Transco Cargo, we look at explaining what they are and why customs bonded warehouses are important.

What are Customs Bonded Warehouses?

First and foremost, let’s define a customs bonded warehouse. It is a secure warehouse facility and location that facilitates the storage of imported goods without the importer/exporter or the warehouse needing to pay customs duties and is covered by customs rules & regulations.  Whilst the majority of these customs bonded warehouse are owned by the government, private freight forwarding companies have also implemented the use of such customs bonded warehouses such as Transco Cargo which has 3 customs bonded warehouses in Melbourne for the convenience of our customers.  Operating our Melbourne customs bonded warehouses means that we are require to carry through a posted customs bond and supervision from the customs authority is also facilitated for transparency.

Why are Customs Bonded Warehouses are Advantageous?

Businesses or persons who utilize customs bonded warehouses take advantage of the optional service that is made available to them in order for their goods and cargo to be stored safely and legally before shipment or delivery takes place.

There are various instances where customs bonded warehouses make for the ideal solution. These include the likes of the following;

  1. When using a customs bonded warehouse for storage, the payment of duties and taxes are deferred until the goods and/or cargo moves out. The time you choose to store your goods/cargo at the bonded warehouse is based on the bond you agree to with a guarantee.
  2. The safety of your goods/cargo are guaranteed as the customs bonded warehouses are manned by security personnel with 24 hour CCTV coverage.
  3. Furthermore, they are also ideal for storing goods/cargo of varying shapes and sizes.
  4. Transco Cargo, who offers turnkey logistics solutions, also offers the option of shipping and delivery of your goods/cargo, making it an ideal choice due to its offer of being a total logistics and warehousing solution.
  5. Long term storage can be facilitated against the bond you are opting for, and your goods/cargo will be secure without the need to pay duties/taxes.
  6. In the event, you have imported goods that fall within the definition of restricted goods, you are able to put to use a customs bonded warehouses until all legal and restrictions can be dealt with whilst the goods/cargo are kept safely within the customs bonded warehouses.

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