/ By Rozanne / Imports/ 0 Comments

New Country of origin food labelling laws

Do you sell food in retail stores within Australia? If so, you will need to start thinking about a redesign of your food product labels to comply with new country of origin laws applicable as of the 1st of July 2016. These labels will become mandatory after two years.
The Australian government has developed a Country of Origin Labelling (CoOL) online tool that will be available from the end of June 2016, assisting you with the design of the right label for your food products. The CoOL will walk you through a series of questions to assist you in choosing the right label for your products. This is accessible at www.business.gov.au.

The new food labelling laws fall under Australian Consumer Law and is detailed in the CoOL Information Standard 2016. This standard is part of many regulatory changes in order to assist consumers to be better informed about where their food comes from.

Currently, consumers are dissatisfied with the country of origin labelling framework due to the labels being unclear and not being easy to find. Clearer labels allow consumers to be better informed about the food that they purchase. There will be no graphic on the labels of imported food products. However, there will be a requirement to state where the food was manufactured and the origin of the ingredients.

It is important that the country of origin laws stay within what is considered to be fair and reasonable when providing information to the consumer about the origin of the product. This is to ensure that the labelling is not so detailed that it is discriminatory to other countries, as this will create a technical barrier to trade. Give it a go and try out the CoOL to help consumers make an informed decision about which food products they choose to buy.

If you would like any further information on importing food products into Australia via any of our freight forwarding services, please contact Rebekah at Red Nav Pty Ltd on 08 9310 2110.

/ By Rozanne / Shipping Documentation/ 0 Comments

What is a Carnet?

If you are visiting Australia on a vacation and you would like to bring your vehicle to travel around the country, you can apply for a Carnet in your country of residence.
A Carnet de passage en Douane is an international agreement that allows an individual visiting Australia to import a vehicle without paying any import duty or tax, providing the car is exported back to the country of residence within 12 months. On arrival your vehicle will still need to be inspected by a government approved facility to ensure that it is roadworthy.
A carnet provides all of the pertinent information about the vehicle, such as the make, model, colour, engine capacity, seating capacity, registration number, owner and value. Carnets can be obtained for motor vehicles, motorbikes, campervans, four wheel drives, caravans, trailers as well as machinery.
Did you know that you can also import your vehicle to 25 different countries with the same carnet during that 12 month period! All that is required is for the carnet to be stamped by customs on arrival and departure to each place. Keep in mind that the vehicle covered by a carnet must not remain in Australia when the owner is not in the country.
We recently had a customer who wanted to bring his campervan to Australia from Europe so that he could go on a road trip discovering the sites of Australia. He was very happy to have his campervan to drive during his holiday, and is planning to take the camper to New Zealand next on the same carnet.
If you would like help or further information in obtaining a carnet, our logistics company can provide assistance. Please contact Rebekah at Red Nav on 08 9303 2110.

/ By Rozanne / Shipping/ 0 Comments

Save on logistics by utilising coastal shipping

Did you know Australia is the only country that is both a country and a continent?
While Australia may be small compared to the other six continents, it is the sixth largest country in the world by land mass. Vast distances between Australian states and cities make cross trading of goods both time-consuming and expensive. Due to its dry interior, most of Australia’s developed areas are on the coast. This makes coastal shipping an ideal option for transporting goods between states.

Good rail and road connections between the larger commercial centres leave the economical advantages of coastal shipping largely unexplored. However, when considering transporting dense items, containerised coastal shipping is a truly economical option. In fact, coastal shipping is virtually unbeatable when both the origin and destination are close to a container port.

“Bulk commodity producers and buyers depend mostly on coastal shipping. The trade is dominated by the cartage of cement, iron ore, steel, sugar cane, alumina and bauxite and fertiliser. The bauxite trade accounts for about 40 per cent of annual coastal shipping tonnages, with bauxite filling ships plying between Weipa and Gladstone, and then from Gladstone to Brisbane and Newcastle. For alumina, most of that moves from Fremantle and Bunbury to Portland and Geelong. Iron ore is transported by sea from the Pilbara to Port Kembla and Whyalla while raw sugar is carried from various Queensland ports to the refinery in Melbourne, and refined sugar from Mackay to Sydney,” writes Robyn Bromby of The Australian in November 2013.

Red Nav recently transported 18 tons of plastics from Dandenong to Fremantle at one third of the cost of the quoted road freight. If your business moves cargo between the different states of Australia, explore the cost advantages of coastal shipping before making the final decision. Contact Rebekah Garrett of Red Nav on 08 9303 2110 for more information.

/ By Rozanne / Cargo • International • Logistic • Shipping • Transport/ 0 Comments

Importers, do you fear being overcharged?

Horror stories about things going wrong for importers and exporters are abounding. These stories always have the same punch line . . . something about charges and delivery time, with perhaps a customs official or two insisting on the undeliverable.

“When things go wrong in freight, it can be disastrous!,” warns Rebekah Garrett of Red Nav. “Costs can quickly escalate and if you do not have a knowledgeable freight forwarder in your corner, prepare to pay ‘school fees’ which can run into thousands of dollars,” she says.

All over the world traders make money by transporting their goods to where they are worth more. Materials and/or products are sourced diligently, markets are researched thoroughly and profit margins are finely calculated to ensure that the importer is earning more than basic interest received on a long term deposit from the bank.
Very often the crucial element – getting the goods from the supplier to the final destination – is overlooked. Sometimes importers leave all the decisions about freight in the hands of the supplier, not realising that there is a saving to be made. At times importers prefer to handle the freight portion of their import independently, but in doing that they are denying themselves access to buying power and distribution channels that they may not have had access to otherwise.

Freight forwarders are knowledgeable and familiar with the processes required to ship goods between countries. They have extensive knowledge of documentation requirements, regulations, transportation costs, and customs and border clearing.

They are able to negotiate the best ocean freight rates through contracts with shipping lines and agents around the world due to the volume of shipments and relationships that have been developed over many years. A freight forwarder is also able to provide the client with complete accessibility and visibility from a reliable single source, meaning the client does not have to follow up with many different people during the import or export process. The client has the convenience of being able to communicate with their forwarder and be assured that they will be able to assist and regularly update them on their shipment.

Importers often get confused about the benefits of the different modes of transport. “The mode of transport you choose is unique to your product and your situation,” says Rebekah. “I am happy to help you find the best solution for your next import or export.

The Red Nav team has been working in the freight industry for more than thirty years. I am confident that we can help you to find the most economical solution in the shortest transit time,” says she. Rebekah can be contacted on 08 9303 2110.

/ By Rozanne / Cargo • Shipping/ 0 Comments

Cargo Insurance – a small price to pay

Did you know that if you have cargo on board a ship that sinks or needs salvaging, the ship owners can declare a condition of general average? Crew members have very little time to respond to an emergency at sea and the condition of general average allows crew to act immediately instead of wasting valuable time.

When this condition is declared, everybody having cargo on board is obliged to contribute towards the cost of salvaging the vessel or the loss of cargo.
‘This can be an extremely costly affair’, warns Jack van der Heijden of the Wangara freight forwarding company Red Nav. ‘I strongly advise that anyone who imports or exports via sea freight takes out marine insurance on every consignment, even when the risk of loss or damage to your goods is minimal. The insurance premiums are commensurately modest’.

Lloyds of London describes ‘The Law of General Average’ as: ‘A loss that arises from the reasonable sacrifice at a time of peril of any part of a ship or its cargo for the purpose of preserving the ship and the remainder of its cargo together with any expenditure made for the same purpose.

An example of a general average loss would include jettisoning cargo to keep a ship afloat and an example of general average expenditure would include towing a stricken vessel into port. An average adjuster calculates the value of each saved interest to each interested party which is then obliged to contribute towards the general average loss or expenditure proportionately.

Subject to the terms of the policy, insurance will generally only apply if the loss was incurred to avoid or in connection with the avoidance of an insured peril.’
This ancient law of general average was first incorporated into a number of national legal systems during the Christian era.

Interpretations of this law varied and efforts were made in the 19th century to impose a measure of uniformity. The York-Antwerp Rules (YAR) codified the law in 1890, and many modernised versions followed. Pressures imposed by cargo insurers resulted in the most recent set of Rules, dated 2004.

When the Rules are incorporated into the contract they will govern the adjustment of general average, irrespective of the relevant law and jurisdiction applicable to international waters or the high seas.
While declarations of general average are not frequent, they do occur regularly. Cargo policies usually provide coverage for general average.

Cargo owners are forced to post a cash deposit with the vessel owner to have the cargo released when all risk or free of particular average (FPA) cargo insurance is not in place.

When general average was declared by the owner of the vessel Hanjin Osaka in January 2012, the cash deposit amounted to 3 percent of the commercial value of the cargo.

Such a deposit can be tied up for two or more years until the general average adjustment is completed. The emergency arose following an explosion in the vessel’s main engine on 8 January 2012 while en route from Pusan (or Busan) in South Korea to ports in the United States, carrying 2 072 containers.
Piracy ransoms can also fall within the scope of general average, but the response of insurers will depend on the debate over ransom legality.

Contact Jack on 08 9303 2110 for any international freight enquiries.