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There have been many changes in the shipping industry in the past. We have seen the chassis business change with the exit of carriers, the US labour issues (between the east and west), the introduction of mega vessels into the market over a decade ago, to atypical peak seasons to shipping rate fluctuations, the shipping industry has been a lot! One of the newest changes in the shipping industry is the introduction of the low sulfur surcharge.

What is the Low Sulfur Surcharge?

It goes by many names, from Low Sulfur Fuel Surcharge (LSF), the Low Sulfur Bunker Surcharge, or even the Low Sulfur Surcharge (LSS). The regulation is based on the International Maritime Organization (IMO) agreed upon back in 2012 in an effort to reduce the amount of sulfuric fuel emissions being burned at ports or populated coasts. The concern is that the high sulfur content fuel contributes to significant amounts of sulfur dioxide emissions, which are hazardous to the population.

History of Low Sulfur Surcharge

If you go back to 2015, the setup of Emission Control Areas (ECAs) were established. Only vessels with fuel sulfur content lower than 0.1% were allowed passage through these ECAs which included certain parts of Asia, Canada, the east and west of the United States,  the North Sea and the Baltic Sea. The ECAs are depicted below.

What is New with the Low Sulfur Surcharge?

So what is changing? The new IMO 2020 regulation will be launched from 1 January 2020, which covers a blanket regulation where all seagoing vessels are to reduce their sulfur oxide content, by 85%. The aim is protect the public’s health and the environment by cutting down on the sulfuric oxide gas emissions expected from all the vessels.

What Changes in the Shipping Industry will we See?

Whilst all sea vessel operators will be affected, so will the likes of oil refineries and the oil markets the world over. There will be expected increased in freight rates as well as operations including container transport. However, there are also what is considered long term agreements for FCL and LCL shipments which will carry a price adjustment referred to as the Bunker Adjustment Factor (BAF). This is calculated based on the BAF formula that is based on recent historic price developments; the fuel consumption per TEU is the average consumption on a trade lane whilst considering factors such as transit time, fuel efficiency, weather buffers and such to name a few.

Fuel Price Per Ton X Fuel Consumption Per TEU (Trade Factor) = Floating Energy Cost

From the start of 2020, the changes in the shipping industry must take effect. It should be noted that the Low Sulfur Surcharge varies based on the carrier and routing and not to mention the type of container being utilized. 

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If you’re looking for a full service automotive shipping and logistics partner, Transco Cargo is here to deliver it for you. Whether you are an automotive dealer or auctioneer, commercial client or a car owner, we are able to handle your automotive shipping logistics from end to end.

We take care of the dynamics of automotive shipping logistics so that you don’t have to. Unless you are an automotive dealer, you may not be aware of the A to Z of automotive shipping logistics, which is where we can help. What we offer is similar to a door-to-door delivery system, but with vehicles. As in we will pick up, ship your vehicle, and have it delivered to you, to put it frankly. However, there is more to automotive shipping when it comes to the logistics of it all.

Let’s look at some scenarios where you may require automotive shipping logistics. One instance would be purchasing a vehicle online from a car dealership and having to transport it from their location to yours. This could be either in a different state or perhaps in a different country. One such example would be car shipping from Melbourne to Perth or car shipping overseas from Melbourne to Colombo. We can aid with getting your automotive shipping logistics sorted. Another scenario would be with a simple relocation where you need to ship not just your vehicle but your persona effects as well. We can do that too.

In the event of automotive shipping via sea freight, the time spent in transit may be longer but the cost of shipping is usually much less than air freight shipment of a vehicle. You can choose two modes of automotive shipping when choosing sea freight. One would be Roll on Roll Off (RoRo) method which is ideal for your existing car as it will require fuel between the point of origin, to the port, onto the vessel, off the vessel at the destination port and then driven to the delivery point. The other would be via container shipments, where the vehicle will be loaded into a 20ft container (or a 40ft container) and then secured to ensure it stays in place during the time of transit. This is heavily used for imported brand new or registered vehicles to ensure that the mileage is low,

Get in touch with us at Transco Cargo for your Automotive Shipping Logistics for a hassle-free experience!

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In Australian transport news, New South Wales saw the opening of the newest and largest regional terminal being opened in Australia courtesy of Pacific National. The new terminal named Parkes Logistics Terminal with a price tag of $35 million is slated to increase inland rail productivity by focusing on the fact that the terminal will be epicenter for future regional growth.

The location of the Parkes Logistic Terminal is what makes it quite the regional player. The new terminal connects to Linfox, Pacific National (Linfox entered into a consortium with Pacific National back in 2017 thus working as a unit), and SCT Logistics. Furthermore, it also connect to multi modal transport avenues such as inland rail to Brisbane and Melbourne, rail and road to Sydney, as well as road to Condobolin and Sydney and not to mention the Newell Highway to Melbourne  too.  The following image courtesy of Infrastructure Magazine highlights its position as the crossroad to all regional transport modes making it quite the player in Australian transport.

If you are looking for more information into the Parkes Terminal and more depth to the Australian transport news, then you should know that Pacific National was committed to the $35 million investment, which is located in the Parkes Shire Council’s National Transport Hub which covers 600 hectares. Pacific National owns 365 hectares of the 600 included in the hub. As one of the largest private investment infrastructure project, it aided in boosting momentum in the Brisbane to Melbourne Federal Government inland rail project.

Parkes Logistic Terminal is able to process a capacity of approx. 450,000 shipping containers annually, as well as haul double stacked containers via the 1800m long freight trains connecting Perth to the Parkes Logistics Terminal. Its connection to other modal means, such as the North West Link (that is already in operation) and the ongoing work of the Inland Rail project slated to be completed in mid-2020, it also connects major rail networks to state capitals and ports.

The Parkes Logistics Terminal will definitely make great headway in inland freight operations!

Images: Infrastructure Magazine, Parkes Shire Council

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Seafood is a major industry in Australia, being an island its one of the core trades that have been around for centuries. Currently the seafood industry is made up of both wild captures and aquaculture farms, with stable numbers for the last two decades being approximately being 230,000 tonnes per annum for shipping seafood nationally and internationally.  The likes of the United States, the European Union, and Japan are some of the biggest importers of seafood from Australia, and ensuring the shipping seafood is done correctly, exporters of seafood should know what goes into shipping seafood overseas from Australia!

Shipping seafood needs to be done with accuracy. There are some factors that you need to look at when shipping seafood. Freshness, packaging, choosing a right mode of freight and carrier, and shipping markings to ensure that cargo/freight handlers are aware of the goods being transported.

Shipping Seafood: Freshness

Freshness being a very important factor in seafood, if you are opting to ship fresh fish, then you need to note that timing is of the essence. Refrigerate shipping modes are essential for this. If you are opting to sell frozen fish, then the fish need to be moved to freezer as soon as possible.

Shipping Seafood: Packaging

The correct temperature range is vital thus; extra packaging is needed when shipping seafood, especially fresh seafood as opposed to frozen seafood. Thermal blankets and temperature-controlled vehicles are necessary to ensure that temperature does not fluctuate, as well as limit its exposure to outside conditions (direct sunlight, rain and humidity). Temperature-controlled packaging using gel packs can also be utilized based on the different require temperature ranges to suit different payloads. The most commonly used packaging mode is dry ice, which is available in different sizes and suit different transit times to suit your shipment needs when shipping seafood.

Shipping Seafood: Choice of Freight and Carrier

Apart from the choice of packing when shipping seafood, the mode of freight and carrier you choose matters. Ensuring that your cargo load stays either cold or frozen during transit is vital. Things to consider at this point and time include the following;

  • Safe temperature range for your cargo
  • Dimensions and weight of cargo
  • Shipping frequency (seasonally/throughout year)
  • Single shipments / to many shipments/ or both
  • Location of customers
  • Anticipated time in transit
  • Requirements for overnight shipping/guaranteed early morning delivery/3-5 day travel

The above information when related to your freight-forwarding partner can let them know the best choice of freight and carrier when shipping seafood cargo on your behalf.

Shipping Seafood:  Cargo Markings

It should be advised that all refrigerated packages need to be marked with the following information so that handlers are aware of contents and handling instructions.

  • Type of refrigerant inside cargo
  • Amount of refrigerant
  • Type of product being refrigerated

Ensuring that all these factors have been duly noted and adhered to will ensure the safe transit of your seafood payload. Get in touch with Transco Cargo to help you with shipping seafood within Australia and overseas.

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With changes and technological advances, you may often see ripples in the way things have been done for years and that is to be expected, but what if they are causing more than just a ripple. With more and more innovation occurring in the transport and logistics industry, you need to be advised on how advanced tech is influencing traditional freight business models and how to stay afloat in the long run.

Let’s take a look back at issues in which have occurred in the past and why the need for advanced tech in the transport and logistics industry was first called to action. Delivery of commercial cargo especially to those in urban areas become an expensive feat  not to mention logistically difficult. Thus , to counter this problem, suppliers looked towards technology. For instance, with large commercial cargo deliveries, trucks are considered the most effective for deliveries between cities however; the last-mile logistics or LML can be a challenge. LML is essentially the transport of goods at the end of a supply chain, that is the movement of the goods from the warehouse to its final delivery destination, which in most cases, is a personal residence. The LML goal is to be able to deliver the goods as quickly as possible whilst minimizing company costs. The problem is large trucks used for LML is that whilst it proves the ideal choice for deliveries between cities, they are fuel inefficient, tend to be left idling, and also block driving lanes which is obviously a problem in urban areas.

The transport and logistics industry has looked at ways in which this can be countered, with means of which also involves advancing traditional freight business models to those that will improve efficiencies in the long run. As per Navigant’s Research advance tech influencing traditional freight business models, include the likes of the following;

  • commercial vehicle automation,
  • electrification of delivery vehicles,
  • robotic/drone deliveries,
  • smart logistics platforms,
  • logistics software,
  • artificial intelligence,  and
  • advanced data analytics.

Whilst we have seen the technological advances in freight brokerage business model with smart logistics platforms, this has sparked the rest of the transport and logistics industry to take notes, adapt, and change accordingly. Especially with labour costs on the rise, there are many ways in which the traditional freight business model can adapt and change. With the likes of delivery robotics (including drones) in the case of LML, can truly turn that sector around  with faster, cheaper and more  efficient deliveries in comparison.

Image: Digital Greenwich

What are your thoughts with the fast approaching changes in traditional freight business models?

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The 2019 Xinhau-Baltic International Shipping Centre Development Index has ranked Singapore again, as the leading city that offers port and business services, for the sixth time running. The index ranks cities based on the services and facilities offered for international and business development. Singapore attracts approximately 13,000 vessels on average per annum with its free port. Being a Free Port (or zone), it encourages economic activity and trade to each and every nation with equal opportunities.

Its strategic position, equal to that of Colombo Port, makes it an ideal maritime hub with the region and global area. Having said so, it can be safe to say that the maritime industry is also a key player in Singapore economy, and having understood that, keep improving, innovating and investing its facilities to be able to accommodate vessels the globe over. The index also named Hong Kong, London, Shanghai Dubai, Rotterdam, Hamburg, New York-New Jersey, Houston, and Athens as other leading shipping ports in the world.

The most investment within Singapore is the Tuas Mega Port Expansion Project that is expected to be completed in 2040, with the first stage slated for delivery in 2021. Once completed, it will house the largest container terminal in the world. The terminal will feature container consolidation handling within the terminal with better efficiency as well as improved turnaround times for vessels stopping at the Singapore Port.

Singapore Port’s ability to continually deliver services in ship management and ship broking has made it a choice for many freight forwarders. It’s come to be with the assistance of maritime establishments, maritime industry and shipping unions too.

The Tuas Mega Port will also act as a pilot for many next-gen technological rollouts in the hope of optimising efficiencies within the Singapore Port. Other tech slated for success include the likes a next level traffic management system that will be able to assist route planning for vessels as well as predict areas of congestion areas too.
With more and more developments in sight, the Singapore Port looks at improving relationships with regional key players to better growth in the South East Asia region as well as the globe.

Stay tuned for more industry related blog posts via Transco Cargo!

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You will end up choosing the freight option based on what you are looking to ship or transport. Your mode of transportation should be considered to ensure that the supply chain process flows smoothly. When choosing the right type of freight for your product shipments, you should consider various factors. The decision making process of choosing the right type of freight would factor in costs, urgency, value of goods being shipped, as well as the size and weight of the goods.

You basic option for shipping include the likes of using sea freight or air freight especially if its an overseas freight, whereas you can rely on road and rail freight if it is a national shipment. In terms of sea freight, you get the likes of boxes, chests and pallets, that is via Less than Container Load freight, and containers for Full Container Loads, obviously.

 It should be noted that sea freight makes up for 90% of global trade, often most than not due to the sheer volume of size of the cargo, whereby the right type of freight should definitely be sea freight as it would be impractical to choose another. Sea freight is the less expensive type of freight however with it comes longer transit periods. When opting to move bulk commodities such as agricultural products, coal, iron or wet products such as crude oil or petroleum, and others of high weight/volume such as metals, minerals, steel, coils etc, sea freight is the right type of freight.

Air freight is often referred to as the type of freight for critical items serving markets, supply chains and consumers that demand faster delivery. Some also credit the Steve Jobs on revolutionizing air freight into an innovative strategy for use of holiday air freight space to ensure delivery of his products for the seasons. The same can be said about Just In time inventory stocks whereby orders are placed based on demand, as and when required only in efforts to reduce warehousing/storage costs, and provide greater flexibility when markets especially in an uncertain market. Air freight is also the type of freight used for perishable items, such as food, flowers and also some pharmaceutical items. There is also a benefit to  air freight due to lesser cargo handling on top of the short transit, but the cost factor is quite hefty compared to that of sea freight. Not to mention, there are many limitations due to sizing and volume too.

Whilst sea freight does have an environmental impact, when comparing it with the likes of air freight, the latter has emits more polluting gases with a lesser space capacity in comparison. Sea freight services are also attempting to adapt to greener transportation means with changing technology

Choosing the right type of freight for your product shipments should be done with these factors brought into mind, to ensure that the cost and urgency equates the need.

Get a quote from Transco Cargo to find out what your product shipment will cost.

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With Sri Lanka’s strategic location providing for international and region connectivity, it will remain a key maritime and logistics hub. Even with its proximity to all major ports of the Indian subcontinent, the port of Colombo still stands its ground as the maritime port of choice for many trading routes. Its superior infrastructure compared to that of its immediate neighbour as well as some of the best in the South Asian region with heavy investments in upgrading seaports, its airports as well as other logistical infrastructure.

The likes of Colombo Port Expansion Project (CEPP) has been extended by 600 hectares to facilitate three new terminals, whereas the Hambantota Port Phase II is underway, with the harbour offering zero deviation for international shipping routes. In terms of airports, the Bandaranaike International Airport is undergoing changes with its Phase II Stage II is undergoing renovations and expansions, whereas the Mattala Rajapaksa International Airport (MRIA) offers logistical support closer to the Hambantota Port. Other logistical infrastructure available in Sri Lanka includes the likes of the Western Region Megapolis Planning Project (WRMPP) and Colombo International Financial City (CIFC).

Sri Lanka has made many efforts to improve its infrastructure and connections between key players in the freight market, especially to provide connectivity in regional connectivity and transport in South Asia. With this improvement to boosting regional transport, competitiveness and economic growth is a clear result. With the South Asian Association of Regional Cooperation declaring the period between 2010 and 2020 as the “Decade of Intra-Regional Connectivity in SAARC”, more and more efforts have been taken into developing transport infrastructure and transit facilities.

With Sri Lanka chairing the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) since August 2018, there have been many efforts to improve on economic integration as well as   enter into Global Value Chains as well as Free Trade Agreements (that have been in discussion for the past 15 years. Apart from its BIMSTEC initiatives, Sri Lanka should also focus on strengthening ties with South Asian players via pursuing various other FTA with the goal of reducing barriers to GVC integrations.  Discussions with China can assist in strengthening ties towards the Belt and Road Initiative to lead to market access for Sri Lanka export players. Sri Lanka’s closest neighbour, India, especially the southern states provide for great export potentials and start-ups. One of the requirements for Sri Lanka have been the need for a deep sea container terminal which was  highlighted by India as a need for BIMSTEC countries to strengthen their routes.

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With growing challenges in freight and supply chain measures, the Australian Transport and Infrastructure Council recently endorsed both the National Freight and Supply Chain Strategy and the National Action Plan back in August of this year. The strategy and the action plan has set out a clear agenda for all freight types or modes of transportation the nation over for the next twenty years in mind.

The National Freight and Supply Chain Strategy is committed to addressing four areas that are considered critical. These include rolling out smarter and targeted infrastructure, enabling improved efficiencies in supply chain, better planning, coordination and regulation, as well as better freight location and performance data. These are considered the critical areas that will be addressed in the first 5 years of the 20-year action plan.

With volumes expected to grow by 35% by 2040 (which equates to 270 billons tonnes), the total volume that Australia will need to prepare for would be over 1000 billion tonnes in total volume. Thus to ensure the nation is on point, the following exerts are from the National Action Plan which have been devised to address outcomes that the council hopes to achieve.

Smarter and Targeted Infrastructure

  • Ensure that domestic and international supply chains are serviced by resilient and efficient key freight corridors, precincts and assets
  • Provide regional and remote Australia with infrastructure capable of connecting regions and communities to major gateways, through land links, regional airports or coastal shipping
  • Identify and support digital infrastructure and communication services necessary for improved and innovative supply chains
  • Advance heavy vehicle road reform to facilitate efficient investment in infrastructure

Enabling Improved Supply Chain Efficiency

  • Adopt and implement national and global standards, and support common platforms, to reduce transaction costs and support interoperability along supply chains
  • Promote training and re-skilling of industry and government workforces appropriate to current and future needs
  • Facilitate new and innovative technologies that improve freight outcomes and understand the deployment, skills and workforce requirements for operators and infrastructure
  • Build community acceptance of freight operations

Better Planning, Coordination And Regulation

  • Ensure freight demand is integrated in transport and land use planning across and between jurisdiction boundaries and freight modes
  • Strengthen the consideration of freight in all other government planning and decision-making
  • Investigate policy, planning and operational solutions to improve freight access and movement along domestic and international supply chains
  • Improve regulation to be more outcomes focused and risk-based to support innovation and reduce regulatory burden whilst maintaining safety, security and sustainability

Better Freight Location and Performance Data

  • Develop an evidence-based view of key freight flows and supply chains and their comparative performance to drive improved government and industry decision-making, investment and operations

Read the full National Freight and Supply Chain : National Action Plan Document courtesy of the Transport and Infrastructure Council.

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When it comes to freight, there are many modes of transport, be it air freight, sea freight and road freight, as well as various requirements and situations that call for it, from personal effects shipping to commercial cargo.  Depending on your freight requirement and country of origin, there are things you need to know. Of course, in case you want the entire service carried out by a reliable freight solutions company such as Transco Cargo with its offering of Customs Brokering Services, then you are taken care of. However, in case you wanted to be a little informed on the ins and outs of the freight world, here are some things you should be aware of, such as standard freight documents and procedures.

With personal effects shipping from Australia with Transco Cargo, there are many freight solutions and services provided to make life easier for you, especially when you are moving (to another country altogether). From supplying you with the necessary boxes and crates to house your personal effects for safe shipping, as well as offering short to long term warehousing should you require it, to carefully dispatching your goods to their destination and more, you can be assured of Transco Cargo’s commitment to the motto ‘We Love to Deliver’.

You are able to handle the documentation side of using Transco Cargo as your freight solutions provider by merely logging onto the internet and visiting the online freight documents download section to find the documentation you will need for personal effects shipping (along with forms that need to be filled out according to the country your are shipping to). These documents include the likes of the Shipping Declaration Form, Door Delivery Service Agreement (when signing up for this shipping service in Sri Lanka), and Packing List (a mandatory document required for Customs Clearance when shipping goods to India).

Personal Effects Shipping Documents

The Shipping Declaration Form is required when handing over your goods for shipping. It’s important that all information is accurately documented, and the sender and receiver’s names and addresses are clearly stated and labelled on the packages, as well as the boxes/crates are secured, nailed and/or taped down for secure shipping to your destination of choice.

The Door Delivery Service Agreement is required to make sure your personal effects reach their destination in Sri Lanka safely, and require the shipper to specify all the information Transco International may need to deliver it to the consignee.

The Packing List is essential for customs clearance in India, therefore take good care to mention all your items as well as shipper and consignee information too.