Australian Grain Exporters Association. Supporting the Australian grain export industry
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1 Australian Grain Exporters Association Supporting the Australian grain export industry
2
3 About AGEA Key priorities for AGEA Removing regulation that negatively impact supply chain efficiency and cost Maintain/improve market access (GIMAF) Reducing supply chain costs Setting the agenda
4 Deregulation has delivered benefits for the industry ü More customers buying Australian wheat ü Australia has maintained and grown export markets ü Bulk and container trade is growing ü Quality of Australian wheat is meeting market demands ü Growers have more marketing options and growth in farmer adviser support & information ü Increased investment across the supply chain ü New entrants to the Australian industry - domestic and international
5 The export sector has grown, with increased activity in bulk and containers
6 But some supply chain challenges remain for exporters port access and execution are critical Port access Final phase of deregulation Efficiency improvements in the supply chain Vessels failing survey the protocols to export prescribed goods from Australia represent an ongoing challenge to industry Infrastructure
7 Background to the AGEA vessel protocol Variability in knowledge of the requirements and tolerances of Department of Agriculture Surveys can only be performed on arrived vessels Lead time and complexity of booking loading slots at Australian grain terminals Potential disconnect between terminal and shipper in the event of economic loss (compounded by a disruption multiplier to others in the queue) inconsistent charter party terms re responsibilities such as for cleaning (CIF vs FOB) Limited information maintained available on historical performance and cleaning equipment maintained on-board
8 Vessel requirements Australian ports Vessels presenting in Australia need to be approved for loading A vessel approval is only issued after: 1. A marine surveyor has inspected the vessel and found the holds to be suitable for carrying the goods 2. An Authorised Officer (AO) has inspected the vessel and found it to be free from pests and contaminants Ships failing survey is resulting in cost impost and operational inefficiencies AGEA has partnered with Rightship ro introduce a protocol which assists exporters to know the likelihood of their ship passing survey, thereby reducing delays and costs
9 About Rightship Independent company formed in Oct 2001 Melbourne, London & Houston 250+ customers globally ISO9001 & ISO27001 certified Ship Vetting & Risk Management Petroleum & dry cargo vetting service Largest provider of third party vetting services (35,847 vets in 2014) Removed over 900 ships from customer supply chains in 2014 Environmental rating & CO 2 benchmarking
10 Vessel protocol rating system & education program Exporter signs onto Protocol Ships complete the Australian Grain Terminal Questionnaire A combination of questionnaire responses, survey outcomes and overall performance history will be used to construct a predictive model that identifies the likelihood of a vessel passing grain survey without incident and calculates the relative contribution of each indicator Until the predictive model is available, the system operates on an expert opinion based on the questionnaire responses on a case by case basis Analysed (& rated) by independent party (Rightship) Entered into industry database Industry best practice guidelines Improved risk rating report Exporter receives rating & determines suitability Ships performance captured (PTO/DAFF/ agent) & reported to Rightship
11 Review Questionnaire Process Requesting Party Start Request a new QuesBonnaire? Yes No Selects submi@ed quesbonnaire from A&T screen in Qi Review responses by logging into Qi via link Escalate to RightShip? Yes No Review responses and complete the report End RightShip Review responses and complete the report on behalf of AGEA Completing Party Receives a link to enter a quesbonnaire ( ) Completes and submits the quesbonnaire
12 The AGEA vessel protocol will deliver benefits across the supply chain For charters/shipowners Improved understanding of requirements for Australian ports For exporters provides: Likelihood of vessel passing survey upon arrival at the Australian load port Information to determine suitability of a vessel Opportunity to take action at lower cost Opportunity to substitute a vessel well in advance For AGEA/Rightship Analytics to underpin best practice guidance Lower costs/fewer days lost delivers benefits for: Growers Exporters Ship owners Port Terminals Customers
13 Thank you
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