by Murray
5. September 2011 16:15
Abba Logistics, a subsidiary of Chinese forwarder Amass Freight, charged an importer for fabricated and inflated destination charges. The Disputes Tribunal has now ordered Abba to refund all charges - fabricated, inflated and real.
Abba charged the importer a total of $6,535.07 over four shipments. The charges included a port service charge of $100 per cubic metre, a delivery order fee of $55 per shipment and an assortment of fabricated destination fees variously described as 'carrier security fee', 'document fee', 'port security fee', 'handling fee' and 'MAF handling fee'.
Abba also charged the importer US$25 per m3 for 'origin terminal handling charges' on two of the shipments. The terms were CFR (Cost and Freight), with all freight costs to be paid by the exporter.
The importer took the issue to the Disputes Tribunal and submitted that the only charges that Abba was entitled to collect were the delivery order fee of $55 per shipment plus a destination terminal handling charge of $65 per m3. It claimed for the return of the difference of $3,676.79.
Abba came up with two main lines of defence. The first was that when the freight was prepaid by the exporter, they would charge freight of US$25 and destination charges of NZ$100, but when the freight was payable by the importer, then they would charge US$85/NZ$65. They attempted to explain this by saying that "The market seafreight rates are always combined with a reflection ratio of destination port charges rates".
The second line of defence was that Abba was merely an agent for Amass and, if the importer had a problem with the charges it should take the matter up with Amass direct. We have since established that Abba is a New Zealand company, member of CBAFF (Freight Forwarders Federation) and based in Auckland. It has one sole director: Ms Emily SHIH. It has three shareholders, Messrs Shang Gen GE, Rong LING and Zheng Yi WU who all share the same address: 248 Yangshupu Road, Shanghai. That address is also the head office of Amass Freight International.
Nevertheless, the Tribunal took Abba at its word. It found that there was no contractual relationship between the importer and Abba. It ordered Abba to refund the total amount that it had received from the importer within ten days. It will now be up to Amass of Shanghai to pursue any proper destination charges directly with the importer.
The Importers Institute continues to receive a steady stream of complaints against forwarders who fabricate and inflate destination charges. In addition to Abba, an outfit called POTA Global Freight has come to our attention on several occasions. Our advice to importers is that they have no option but to pay the extortionate amounts demanded (or face demurrage charges) but should then refer the matter to the Disputes Tribunal.
Unlike Abba, POTA have refunded importers for the overcharges, when threatened with Court action. The Importers Institute sent a courtesy email to POTA's head office in Australia helpfully pointing out in the subject line that the "New Zealand Office of POTA is disgrace to your company's name". We said we "can't believe that a company with the history and international reputation of P&O has lent its name to [...]". We were surprised to receive an email from a Mr Steven Hussey saying "You rude asshole. I look forward to meeting you face to face real soon!"
Mr Hussey of Melbourne calls himself "Director - International" of POTA Global Management Pty Ltd (a division of P&O Trans Australia). We suspected that there was some sort of cultural misunderstanding so decided to consult with a specialist in these matters. We have now been assured that Mr Hussey's response is considered to be perfectly acceptable business etiquette in some parts of the docks in Melbourne.
The Importers Institute believes that it is high time that the Commerce Commission had a closer look at the totally unregulated forwarding sector. Importers should not have to put up with these rip-offs.
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UPDATE: 17 Aug 2011. Abba Logistics have appealed to the District Court against the decision of the Disputes Tribunal. We will report on the outcome.
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by Murray
5. September 2011 10:12
Market forces at play in this trade lane make for interesting times.
As is usually the case at this time of the year ship lines introduce (or try to) Peak Season Surcharges. In this regard 2011 is no different. I have received numerous email updates from all the major ship lines notifying of pending increases namely –
effective 15 July USD250 / 20’ USD500 / 40’ (FAILURE)
effective 15 August USD250 / 20’ USD500 / 40’
You will note (or be already aware) the supposed 15 July implementation failed. This is the first failure of such that I am aware of since the Global Financial Crises struck. It is my understanding that what perhaps contributed to the failure was (again for the first time since the GFC) extra tonnage (more ships) were introduced to the market. French line – CMA CGM (in partnership with ANL) announced a new service which will initially offer fortnightly sailings. However, come September once all vessels committed to this service are made available will ultimately offer weekly sailings. It should be noted transit times compare favourably against current service from Northern China and Korean ports only.
Further to this new service by CMA CGM, Maersk have increased their frequency to bi-weekly from Europe and Asia. This announcement was made with immediate effect. Maersk operate a transhipment hub in Tanjung Pelepas (TPP), Malaysia to Auckland. Maersk’s European & Asian sourced shipments are routed through TPP enroute to NZ. This service was weekly into Auckland & Port Chalmers only however with the introduction of said service there will now be direct services into the additional ports of Tauranga & Lyttelton.
All in all this market (Asian) is very different when compared to the same time last year. Looking back through my records 2010 was thus
G.R.I effective 15 July 2010 USD250 / 20’ USD500 / 40’
General Rate Increase
R.R effective 15 August 2010 USD250 / 20’ USD500 / 40’
Rate Restoration
P.S.S effective 15 September 2010 USD 250 / 20’ USD500 / 40’
Peak Season Surcharge
All in all the market absorbed USD750 / 20’ USD1500 / 40’ increase over a 3 month period. 2011 is certainly proving a completely different environment. At time of writing I would strongly suspect (my suspicion only) that the tabled 15 August PSS increase will also fail. My mind then goes to 15 September which will probably be the next favoured date for the shiplines to manufacture an increase. With the extra capacity being introduced to the market & the NZ domestic economy hardly booming I do wonder if this two will result in failure. Only time will tell.
by Murray
19. July 2011 17:07
Maersk has launched very welcome additional service on the southbound Asia tradelane. They have introduced extra vessels and added extra port calls adding much needed capacity to the market place. Direct calls NZ include Lyttelton, Tauranga, Auckland & Port Chalmers.
Good news indeed
by Murray
15. July 2011 09:08
the weekend of the 16 & 17th July & the start of the next week the Ports of Auckland will have increased volume of containers moving through due to the late arrival of the vessels - Maersk Dabou & MOL Summer.
The plan is to begin work on the Maersk Dabou Saturday afternoon (16th) & then halt operations to make way for other vessels on Sunday evening. Maersk Dabou is expected back at Ferguson Terminal on the afternoon of Tuesday 19th to complete its exchange. This means that some containers may not be available off the vessel until Wednesday 20th July.
During the time please be advised that Fergusson Terminal will be extremely busy, all trucks will need to arrive on-time for their VBS bookings. Trucks arriving out of time face delays before entering the terminal.
by Murray
27. May 2011 12:51
The CAFCA has received advice from Patrick that work will recommence at their Port Botany (Sydney) terminal at 9.00am today (Friday 27/05).
Import time slots have been released and entry will be permitted from 08.30am today for all trucks.
Transport operators will receive notification of week-end slot availability later this morning.
Patrick is still sorting out with shipping lines all export receival dates. All export receivals are currently cut off until this comes out.
by Murray
23. September 2010 09:47
From October 2010 the amount under Customs revenue waiver provision for imported goods will increase from $50.00 to $60.00. The increase has been made to offset the increase in GST to 15% from the same date.
Customs will have the discretion to not collect import duty and GST where the total revenue payable on any one shipment is less than $60.00. This means the revenue waiver provision will continue to generally apply to a shipment valued at $399 or less (CIF)
The revenue waiver provision does not apply to alcohol or tobacco products.
by Murray
10. September 2010 15:23
The joint North Asia / NZ direct service operated by Cosco / Hamburg Sud / NYK and Mitsui O.S.K lines has been suffering from eratic scheduling.
The current port rotation of 6 ports in both North Asia & NZ has proven difficult with either unforseen or disruption (eg advwerse weather) beyond human control has proved difficult.
Consequently, in order to re-establish schedule integrity they will no longer call at ports of New Plymouth and Wellington, but will instead offer a weekly feeder connection using Pacifica coastals service.
by Murray
10. September 2010 15:20
We are pleased to advise an extra flight per week is now available ex London to Auckland. Cargo cut off is Friday (UK) with cargo arriving Auckland on Tuesday
by Murray
18. August 2010 16:32
We have been advised by the shipping lines that a GRI on the above trade route to NZ will take place.
The FCL increase level is set at USD 125.00 per 20' FCL / USD 250 per 40' FCL and will take effect from sailings
on / after 15th September 2010.
This GRI will not affect Canada to NZ trade lane.
by Murray
17. August 2010 10:40
MAF have decided not to enforce a rule designed to punish importers who fail to make declaration 12 hours before a the ship arrives in port.
Some of you may remember my rare but much respected “Murray’s personal note” within Orbit March issue (copy can be accessed through our website, click on “news”) that this rule was doomed to failure.
All respect to MAF management for recognising this fact & acting appropriately.
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