Air Freight Direct Service Transhipment Service Courier Service

1. Air Freight Direct Service Transhipment Service Courier Service Sea Freight Full Container Load (FCL) Direct Transhipment Less Than Container Load (LCL) WHAT ARE YOUR FREIGHT OPTIONS?

2. Value of your goods I-pads vs. Plasticware Stock Cycles How quickly are they selling? Size of your Shipment Under 50 – 100 kgs? Timing I need this in a hurry. When to Use Air Freight

3. Direct Services Flying Time of 11 hours

4. Shanghai to Hongkong 2hrs 30mins Hongkong to Sydney 9hrs 20mins = 11hours 50mins ??? TRANSHIPMENT SERVICE

5. Air Freight Transit Times • Direct Flights • Hongkong 9-10hours • Shanghai 10-11hours • Beijing 12-14hours • Transhipment • 2-3 days • Can be longer in Peak Season with backlogs

6. Guaranteed to arrive when loaded Quickest possible transit time More expensive freight cost Cheaper than direct service Slower transit time Possibility of getting stuck in transhipment port [especially during peak season] Direct Versus Transhipment

7. Inland Freight Export Customs Documentation X-ray/Security Screening Airport Terminal Fees Air Freight Fuel Surcharge Security Surcharge Airport Terminal Fees Breakbulk Charges Documentation Air Cargo Automation Customs Clearance Delivery Fuel Surcharge FREIGHT COSTS

8. Fastest possible transit time Guaranteed to arrive when loaded Usually more expensive option Less Handling – Less Risk Container transferred from one vessel to another Sometimes, your only option Potential for delays during Peak Season Longer transit time Cheaper price ? DIRECT VERSUS TRANSHIPMENT

9. SEA FREIGHT TRANSIT TIMES • Direct Services • Hong Kong / Shekou / Nansha 10-12 days • Shanghai / Ningbo / Xiamen 14-16 days • Transhipment Services • Huangpu / Shantou Via Shekou 14-16 days • Tianjin / Dalian Via Busan 24-28 days • Hong Kong/ Shanghai Via Singapore 20-25 days

10. Freight charges are paid based on size of container – Per 20 Ft Container Per 40 Ft Container L.C.L Cargo is charged per – Cubic Meter 1,000 Kgs Whatever is the greater. Freight Calculations

11. Inland Freight Export Customs Documentation Bill of Landing Fee Terminal Handling Charge Ocean Freight Bunker Surcharge Port Charge Terminal Handling Charge Sea Cargo Automation Delivery Order Fee Terminal Security Fee Customs Clearance Delivery

12. Overloading container is illegal & extremely dangerous. • Average guide for container + goods is 23.5 tonnes • R.T.A sits outside gate at Port Botany to check trucks • R.T.A works off axle weights. • Important that load is evenly distributed in the container.

13. Incorrect load distribution. • Load not evenly distributed.

14. Correct load distribution • Load evenly distributed

15. WAREHOUSING AND LOGISTICS

16. OPTIONS FOR NEW IMPORTER • Start your own warehouse. • Rent space in existing warehouse. • Outsource to 3PL company. • Just-in-time Delivery Model

17. Master of your own destiny. Handle goods way you want to. Extra care – minimise damage Provide most flexible service to your end-customer. Tied to a lease. Additional costs – forklifts, pallet hire, labour, etc. Higher insurance premiums OH&S / Workcover compliance YOUR OWN WAREHOUSE

18. All the “PROs” of your own warehouse Possible sharing of costs – forklift, labour, etc. Potential to take over more space as business grows. Some of the “CONs” of your own warehouse Difficulty in finding right situation Conflict with resources RENT SPACE

19. Most cost-effective for start-up operation. No lease or equipment costs. No OH&S/Workcover compliance issues. Piggyback on existing distribution services. Lose control of your cargo Less flexibility in servicing your customers Increased risk of damage or loss Increased risk of error? 3rd PARTY LOGISTICS PROVIDER

20. No warehouse, labour, or equipment costs. Less handling = less cost in your supply chain. Most cost-effective model. Least flexible model. No stock on hand for emergencies. Need accurate usage forecasts from your customers. Just-In-Time (Cross Docking)

21. Air Truck Rail Ship 5-6 hours 4-5 days 8-10 days 12-14 days TRANSIT TIMES TO PERTH

22. Can be very expensive compared to international air freight. Less options, less competitors. Mainly serviced by narrow-body aircraft. Only used in emergencies or for high-value cargo Rates charged on “per kg” basis Beware volume/weight ratio. DOMESTIC AIR FREIGHT

23. TRUCKING • Most common form of domestic contribution. • Good balance between price, speed, and flexibility. • Plenty of operators and competition • Rates charged on “per kg” basis • Weight/volume ratio either 1cbm : 333kgs or 1cbm per 250kgs • Pallet rates can be obtained for regular business on mainline routes e.g. Sydney / Melbourne.

24. RAIL • Mainly used for long haul. • More cost effective than trucking • Suitable for large loads i.e. rail containers • Container rates based on weight ---- heavy containers cost more. • Have to get container to rail yard at origin. • Have to collect container from rail yard at destination.

25. COASTAL SHIPPING • Only suitable for full-container loads • Only viable for long haul e.g. Sydney – Fremantle • Cheapest way to ship goods to western Australia • Still have to deliver container to terminal. • Still have to pick up container on arrival • Container rates charged same as international shipping i.e. per 20ft/40ft/40ft high cube.

27. INSURANCE

28. INSURANCE • Should I take out marine insurance for my cargo? YES • Should I let my supplier take out marine insurance on my behalf? NO • Are marine insurance premiums cheaper in Australia? Usually, YES • Will I have less problems if I insure from Australia? YES

30. AUSTRALIAN INSURANCE CUSTOMS AND QUARANTINE

31. BASIC QUESTIONS PRE-IMPORT • Is the commodity prohibited from importation into Australia? • Are there any restrictions from importation into Australia? • Are there any Australian Quarantine restrictions or prohibitions? • Does my commodity need any special treatment/s prior to import? • Do I have packing that requires treatment prior to import? • Do I have all the required documentation / paperwork? • Is the documentation/paperwork accurate? • If FCL container: does the combined weight comply with the relevant state transport requirements?

32. TREATMENT REQUIREMENTS FOR SEA CARGO • Wooden packaging utilized in in FCL/LCL consignments should be treated using any of the options available for wooden packing. • Such consignments must be accompanied by an acceptable Treatment Certificate. The acceptable methods of treatment are: • Fumigation • Heat Treatment • Permanent Immunisation Treatment • Treatment Certificates are not required for: • New Processed panel product • Timer treated and marked in compliance with IPSM 15

33. Questions and Answers • What happens if my goods are not accompanied by a packing declaration? A: If a valid packing declaration does not accompany a sea consignment, the consignment will be directed to AQIS for an inspection to verify whether or not wood packing and/or and straw are present. • What happens if timber packing is not treated when they arrive in Australia? A: If a valid treatment certificate does not accompany a sea consignment, the consignment will be directed for treatment, destruction, or re-export of the packing material from Australia.