AFIF COUNTRY REPORT June 2012 May 2013

Size: px
Start display at page:

Download "AFIF COUNTRY REPORT June 2012 May 2013"

Transcription

1 AUSTRALIAN FEDERATION OF INTERNATIONAL FORWARDERS Ltd. AFIF COUNTRY REPORT June 2012 May 2013 For presentation to Delegates attending the 40th FAPAA E.C.M., Negombo, Sri Lanka June 7-9, 2013 A. Current AFIF Board of Directors elected November 2012, including relevant portfolio responsibilities. Chairman: Paul GOLLAND Director Airfreight Committee Vice Chairman: Robert KASCH Director Queensland, FAPAA Delegate Brownways Intl, Sydney DHL Global Forwarding, Brisbane Directors: Daniel ANDERSEN Director, Airfreight Committee Paul ANGEL Director, Customs Committee Phillip CAREY Director, Airfreight, NSW David FINNIE Director, Seafreight, Victoria Stuart McFARLANE Director, Customs Commitee Jackie McCOMBIE Director Seafreight, Victoria Jim MERRIGAN Director Education and Social Functions Jeff TALBOT Director, Customs Toll Global Forwarding, Sydney IJS Global, Sydney UBI Logistics Australia, Sydney Deugro Products Australia, Melbourne Yusen Logistics, Sydney Globelink Intl, Melbourne Maltacourt Australia, Sydney Hellmann Worldwide Logistics, Sydney

2 The past year has once again been unpredictable in terms of stability in trade and therefore difficult for our industry to plan for consistent trends. It has been a particularly unpleasant ride in certain circumstances and a few have been unable to sustain their business. We have, however seen a small increase in training of new industry entrants which indicates that there is a growing confidence within the industry of better times ahead. The Australian dollar remains strong, although volatile and this has not helped sectors of the export market but has allowed imports to stand up well. There has also been a continued increase in internet-based purchasing. In general terms, the year has thrown up the usual array of issues confronting our industry, some of which are not unexpected, together with new and emerging challenges. My report to follow will summarise a selection of the major areas of air cargo related activity which may be of interest to FAPAA delegates attending the 40 th ECM in Sri Lanka: 1. Aviation Security As part of Federal Government plans to strengthen aviation security, the Department of Infrastructure and Transport - Office of Transport Security (OTS) will be required to implement a new voluntary Regulated Shipper Scheme (RSS) and an Enhanced Air Cargo Examination (EACE) scheme for scanning cargo, prior to air carriage. This will affect all Regulated Air Cargo Agents (RACA's) and their current Transport Security Programs (TSP's). The OTS has been gathering necessary information to prepare the requisite Regulatory Impact Statement (RIS) ahead of drafting legislation. The new Regulated Shipper Scheme (RSS) will be a voluntary sign-up program, due to be developed following Government changes to relevant legislation in Following all the necessary approvals, the program should be in operation in late The proposed Enhanced Air Cargo Examination (EACE) program will run in parallel with the RSS. The EACE will introduce piece-level scanning using X-Ray and / or Explosive Trace Detection (ETD) equipment and accredited organisations will be permitted to conduct this outside the constraints of the airport boundaries (i.e. offairport), however, the OTS has been forced to withdraw equipment funding opportunities in light of Government Budget cuts across the Board. The development of the EACE program will be guided by the requirements of the most stringent US Transportation Security Administration (TSA) and EU programs to ensure acceptance of our export air cargo into their territories, without further scanning. Meanwhile, the OTS has been advised by the US TSA that the current Australian RACA program, including the process whereby the Airline Cargo Terminal Operator (CTO) applies 100 % scanning via ETD or X-ray at ULD, or piece level for loose cargo, is still currently acceptable. 2

3 Forwarders who prepare ULD s for export may have to decide whether to invest and install necessary piece-level X-Ray scanning equipment and ETD back-up equipment in their facilities, or pass the cargo to the CTO, or an independent third-party operator for scanning and clearance. Such a facility may also need to have the capability to build, or re-build a consolidation after conducting piece-level screening, if a ULD is consigned for carriage. Following the release of a Discussion Paper in March 2013, all interested parties have been invited to make Submission to the OTS to assist the Department to prepare a Regulation Impact Statement (RIS) to Government in regard to the RSS and EACE programs described above. AFIF has completed a submission and this document is attached IATA e-awb and e-freight: update on current progress During the past year AFIF has been participating in meetings with IATA, both locally and with the international leaders, airline carriers and software providers to progress the e- AWB project for Australia, as we believe this is the platform for any further e-freight progress. AFIF has also raised and discussed the program at the FIATA World Congress meeting in Los Angeles in October and again during the FIATA HQ session meetings in March, in Zurich. In discussing these matters, AFIF representatives also met with the head of IATA Cargo, Mr Des Vertannes. The message we are delivering is that IATA must try to coordinate its Airline members to upgrade their systems to enable e-awb facilitation and also to continue with plans to introduce mandatory dates for the introduction of the e-awb. 3. General There are many other issues being handled at any one time and AFIF Directors and representatives are necessarily active on many committees and Boards. The following is a summary of the major national and international external committees relative to aircargo matters: Australian Customs and Border Protection Service (ACBPS) National Consultative Committee (CBPNCC):- The peak consultative body for liaison between Customs and Industry on trade facilitation issues. ACBPS Admin Policy; Legislation & Service Delivery; IT/e-Commerce Sub- Committees. AFIF is represented on these three sub-committees of the CBPNCC. Department of Agriculture, Fisheries and Forestry DAFF) Industry Cargo Consultative Committee (DCCC) :- The peak body for consultation between the Government Biosecurity Quarantine division and our industry. AFIF representatives also participate on the sub-groups formed under the banner of the Industry Working Group on Quarantine (IWGQ). 3

4 IATA Cargo Executive Council (CEC): AFIF has three representatives on the 5 person industry committee who meet with IATA and their Airline members to discuss IATA Resolutions and Agency Accreditation matters. Office of Transport Security (OTS) Aviation Security Cargo Working Group:- AFIF is represented on this committee who meet quarterly to review requirements in regard to the RACA and AACA Aviation Security programs. This group has been busy considering changes to the programs and the early stages of the development of a Regulated Shipper Scheme (RSS) and Enhanced Air Cargo Examination (EACE) processes for implementation in Australian Dangerous Goods Air Transport Council (ADGATC) The peak industry body representing movers of Dangerous Goods by Air. This body meets with the Civil Aviation Safety Authority (CASA) on a regular basis. AFIF DG training instructors represent AFIF member interests. 4. AFIF Events Reports a) AFIF will be holding its next Annual National Conference in Canberra, between May 15 17, 2013, where amongst high profile speakers a full business program focusing on relevant topical issues will be presented. Details of the program can be found at: b) On August 23 rd, 108 players in 27 teams lined up for the 8 th AFIF Annual Charity Golf Day, held at the Macquarie Links Golf Course in South Western Sydney. The fund raising activities included a live charity auction with some fine items of memorabilia. After all costs had been taken into account, the net margin for the beneficiary charity: The Royal Institute for Deaf and Blind Children (RIDBC) was in excess of $16,000.00! This was a very satisfying outcome, especially considering the economic climate. The total amount raised for various charities by AFIF members in the 8 annual charity golf days to date, has now reached over $175,000! The date for the 2013 event will be August 22 nd at the same venue. 4

5 5. Air Cargo Import and Export statistics for Australia The latest statistics released in April 2013 for figures up to and including February 2013, indicate a typical seasonal downturn for Imports and an upturn for Exports following the usual end of calendar year slowdown. Both Imports and Exports have continued to trend upwards on a moving average since the 2008 global financial crisis. Exports comprise a high percentage of perishables, whilst imports of high value products are driving import totals back up as usual. Graph: Australia Imports and Exports to end February We are happy to take any questions on air cargo issues affecting Australia, either before or during the meeting. Brian Lovell Chief Executive Officer April 30 th,