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Monday, 24 September 2018

Tips for Shipping During Peak Season

Peak Season is again now upon container carriers with all experiencing a sharp increase in volumes while at the same time capacity on some trade lanes is actually smaller.

There are fewer carriers as consolidation of the global container shipping industry rolls on so they can fight their way back into profitability from unsustainably low freight rates and increasing operating costs. Most recently ONE Line has been formed with a huge merger between Japan’s three largest carriers namely, NYK, MOL and K Line. Furthermore Maersk and Mediterranean Shipping Corporation have formed an alliance.

This means carriers are operating at full capacity and frequently over-booking their vessels and this situation will persist into January 2019.

Here are some tips to minimise impacts on your business:

  • Factor in 1-2 week delays into your delivery schedule just in case
  • Factor in rate increases of about 20-30%
  • Supply forecasts and bookings as early as possible
  • Prioritise your shipments so carriers know that in a tight situation which ones should be uplifted first
  • All shippers scramble to load the faster more direct services but often in peak season the slower carriers prove more reliable and your cargo will arrive sooner
  • If your supplier has even part of your order ready consider a split shipment by LCL on the first available vessel or even some air freight to keep your customers orders flowing
  • You stay in control of your freight rather than your supplier. Generally suppliers only care about getting a container delivered to the port and off their hands so they can get paid and do not consider carefully which carriers will be most reliable. To frequently clients get told by their supplier they can get it shipped only to find the container then gets short-shipped at a transshipment port and ultimately arrives later than the routing we originally recommended
  • Allow for Golden Week holiday season 1-10 October if you are sourcing from China
  • Get your documents to your Customs Broker urgently so pre-clearance through Customs prior to arrival can be obtained. Even Customs, Quarantine, wharves and local trucking companies struggle to cope during peak season
If you would like more detailed advice on specific trade lanes or have a shipment stuck somewhere please contact me or any member of my team at Depth Logistics for help.

All for now,

Brad Skelton

Friday, 17 August 2018

myCargo - Incredible Logistics Software

Depth Logistics is...


myCargo provides incredible cloud and mobile device based logistics software that is changing the way deliveries are arranged and accomplished for shippers, freight forwarders and carriers alike.

The founders are master logisticians and are “hands on” in the development and testing of every aspect of our technology and strategies that integrate perfectly with modern, ever faster and more efficient transport methods. We are progressively releasing game changing technology to improve supply chains link by link.

The myCargo widget modules are provided free of charge to users and are simple and easy to use. They can be deployed to any website in any code and are compatible with all major internet browsers.

The myCargo Insurance platform is live now and rapidly being adopted as it is a game changer for the way single marine transit insurance is bound. Quotes for premiums and cover can be taken out instantly via our widget.

LIVE Quote is next to be released. This is highly sophisticated and will enable freight forwarders and transport providers to completely automate the quotation process from end to end. Their shippers can self-serve and receive an instant LIVE Quote and then book and even pay online. This will radically improve customer service for shippers and reduce the acquisition cost of jobs for logistics companies.

myCargo ERP is in beta testing with Depth Logistics and a few other select freight forwarders right now and will be released broadly by the end of 2018.

The team at myCargo have a goal to become the logistics platform that powers world trade by helping facilitate optimised transport of over one billion tonnes of cargo annually. We know that’s an audacious target that we cannot reach alone so our model is to empower, support and partner with transport industry players including shippers, freight forwarders, customs brokers, carriers, marine insurance brokers, customs and quarantine authorities.

Check it out on Depth Logistics.

All for now,

Brad Skelton

Tuesday, 14 August 2018

Marine Insurance online with instant quotes and cover for cargo

Marine Insurance can now be instantly quoted and taken out online with Depth Logistics and their myCargo Insurance platform. There is no easier and faster way I know of for shippers to cover their cargo!

The facility is underwritten by Chubb Insurance and is mobile device friendly. Users can insure single shipments 24/7 with Marine Institute Cargo Clauses (A). All modes of transport are covered domestically and internationally for sums insured up to USD2 million.



There is a easy four step process you can complete online in a few minutes and then the marine insurance certificate is delivered to your email inbox. Here is an image of the widget below which is linked to the site if you want to cover any cargo now.



Payment for the premium is made securely online via credit card or PayPal account.

There is no minimum premium making this facility perfect for consignments of small values.

Next time you need insurance on your shipment check this facility out.

All for now,
Brad Skelton

Friday, 29 December 2017

Customs Clearance Information for Cargo in Australia

There are a number of important rules and regulations concerning the customs clearance of goods being imported into Australia. For example, depending on the goods value, and how they are transported to Australia determines how they are need to be cleared and what duty, taxes and charges might apply.

Some goods, such as alcohol and tobacco, will incur import duty and GST regardless of their value, while certain other goods are not even allowed to be brought into Australia or may require a special permit. For this reason, first-time or infrequent importers are strongly encouraged by Customs to use the services of a customs broker to clear their goods through customs. Depth Logistics can arrange customs clearance for you.

Goods with a value of AUD 1000 or less
You do not have to pay duty and taxes on goods with a customs value of AUD 1000 or less. These are called low value imports and typically can be cleared on an informal self-assessed clearance.

Goods with a value of more than AUD 1000
To import goods with a value over AUD 1000, you need to make a Formal Import Declaration. The Import Declaration provides information about the goods you are importing to Customs. There is an Electronic Entry Charge that Customs charge for processing this and all imported goods are subject to import duty and GST assessment. Our customs brokers are online to customs cargo clearance system so we can affect customs clearance fast for you. Click here to learn about customs clearance processing times for cargo.
Personal Effects and Household Goods
Customs and Quarantine require a different clearance process for this type of cargo and need special declarations as to the contents. Frequently inspections are required to facilitate the clearance. There is no import duty or GST on personal effects however some items, such as motor vehicles, will still attract these charges and require a formal entry. Learn more...
We charge a fee to handle the customs clearance formalities on your behalf and to handle other aspects such as Quarantine clearance should the goods or packing require this as they are of plant or animal origin. We can also arrange delivery to your door. My company, Depth Logistics, negotiates special clearance fees for high volume importers.

If you want to clear the goods yourself then you can however be aware that Customs in Australia will provide very limited assistance to first-time importers, and no assistance to regular importers. A manual clearance you prepared and lodged yourself can take up to 9 days for Customs to process and they charge a processing fee of about $90.00. For commercial importers sensibly using a customs broker is the best and fastest way to clear your cargo.
Contact my team at Depth Logistics to find out more information or to begin your customs clearance in Australia today. You can upload your documents on our website to allow us to commence processing immediately. We are available 24/7 on our toll free number 1DEPTH (133784) if you need any further information or assistance.

All for now,

How long does Customs Clearance of Cargo in Australia take?

Depth Logistics' customs broker is online to Australian Border Force(Customs) Integrated Cargo System. This enables electronic lodgment of customs declarations. About 98% or more of the entries our customs agents lodge are processed and released within a few hours. If Customs have queries or decided to do a detailed check of the documents and cargo this can sometimes take up to a few days more depending on the nature of their enquiry.We prioritise the lodgment of customs declarations on shipments that have already arrived over shipments that are still enroute so that storage charges can hopefully be avoided. We lodge entries with Customs usually less than 24 hours after receipt of a full set of shipping documents.

It is important to get us your shipping documents to us without delay. If we have a full set of documents prior to the cargo arriving, Depth Logistics can arrange a pre-clearance. This means your goods are able to be delivered with no delay after they physically land. If the goods are subject to Quarantine clearance this can take another one or two days to process depending on what action is taken by this authority.

Before Customs release your cargo they require us to pay any import duty, GST and Electronic Entry Charges. They direct debit this from the our customs brokers bank account. To avoid delays it is important you make payment to us ahead of time so we have cleared funds on hand in order to meet the daily direct debit.

There are different procedures for personal effects and household goods and these do generally take longer to be processed as the Quarantine and Customs risk profiles are higher on this type of cargo.

If we have been able to do a full pre-clearance of Customs and Quarantine and have been paid all charges prior to the arrival of the ship or flight, then we are usually delivering our clients cargo the next day for sea freight and the same day or next morning for airfreight. Having cargo "stuck in Customs" is virtually a thing of the past if you and your customs broker are well prepared.

If you would like more information about customs clearance processing times in Australia please contact us or call us toll free on 1DEPTH (133784).

All for now,

+Brad Skelton



How Is Import Duty and GST Calculated in Australia?

All imported goods are potentially subject to import duty and GST before they can be released for delivery by the wharf, airport bond store or Australia Post in the case of international parcels arriving by mail.
My team and I at Depth Logistics are commonly asked how import duty and GST is calculated so by way of this post I will explain the basic principles.
Import Duty is determined by the classification of goods in the Customs Tariff and the applicability of concessions. The duty rate can range from FREE to 10%, however the standard rate for most goods is 5%.

Our licensed customs brokers classify your goods in the Customs Tariff and proactively search for concessions, by-laws and Free Trade Agreement exemptions that may make the goods duty free. Our Tariff Consultants can also make application to Customs for Tariff Concessions on your goods. Learn more about Tariff Consultancy Services.

Australia has numerous Free Trade Agreements with many of its major trading partners and is currently entering into more. With the right declarations and/or Certificates of Origin it means we can legally claim exemption from import duty on your goods.

Import Duty is calculated as a percentage of the goods value or Customs Value (CV) of your consignment.

GST is calculated at 10% of the Value of the Taxable Import (VoTI). The VoTI is calculated by the addition of the Customs Value (CV) plus the Duty plus the value of the International Transport and Insurance (T&I).

Here is an example of how the import duty and GST is calculated on goods valued at AUD$1000 which attract a 5% duty rate:

Duty @ 5% of the AUD$1,000 (CV) = $ 50.00(Duty)

International transport and insurance (T&I) = $ 150.00

Then the VoTI = (CV) + Duty + (T&I) = $1,200.00

GST is 10% of the VoTI = 10% x $1200 = $ 120.00(GST)

Total Duty and GST Payable $ 170.00


Depth Logistics Customs Brokers are online to Customs Cargo System so this means lower Customs declaration processing fees for you compared to lodging import declarations manually yourself. The charges Customs levy for this are called Electronic Entry Charges(EEC). These charges range from $50.00 to about $194.00 depending on the value of the goods and mode of transport. Also as our customs brokers are online to Customs it means that in the majority of case cargo clearance processing is near instantaneous except where Customs may have a query or other concern.
Import duty and GST is paid to Customs by a daily direct debit facility on the customs brokers bank account. This is why customs brokers and freight forwarders usually require payment for these charges prior to delivery of your cargo.
If you are a frequent importer that lodges your Business Activity Statement monthly with the Australian Tax Office, we can also arrange to defer your payment of the GST to assist your cashflow.
If you would like more information about the applicable duty rates on goods you are importing, or any other aspect of customs clearance in Australia, please contact us or call toll free on 1DEPTH (133784).
All for now,

Thursday, 14 December 2017

Shipping Industry Consolidation rolls on with Maersk Acquiring Hambug Sud

Maersk Transport & Logistics, the world’s biggest shipping container company, have announced the successful acquisition of German rival, Hambug Sud in a $4.02 billion deal.

Combined, the two companies will be able to realize annual operational savings of about $350 million to $400 million, Maersk Line said in a statement fleshing out detail on the deal announced in December.

“By keeping Hamburg Sud as a separate and well-run company, we will limit the transaction and integration risks and costs while still extracting the operational synergies,” said Soren Skou, CEO of both Maersk Line and its parent A.P. Moller-Maersk Group.

This marks an important milestone on Maersk’s journey towards growing a new, stronger business alliance, which continues to offer clients integrated cargo solutions.This acquisition also evidences continued consolidation in the container trade where some carriers cannot continue without sustained profitability. This consolidation is decreasing capacity in some trade lanes including Australia and has made this year peak season the worst in many years.

Ultimately, although final approval from regulatory authorities in countries such as Brazil, China and South Korea, Maersk Line expects the Hamburg Sud transaction to close by the end of the year.

There has been unprecedented consolidation of shipping lines the last two years and others exiting altogether. The losses most have incurred are unsustainable so I am certain that we will see more consolidation into 2018 and rates must rise if shippers are to enjoy stable shipping services meeting there needs.

All for now,