Top 5 freight news for 2016

As we move forward into 2017, let us take a look back at the freight news that caught our attention in the past year.

• BREXIT
• New Solas rule
• Hanjin bankruptcy
• Donald Trump
• Moller Maersk split

June freight news – Brexit surprises the world

23 June – Britain’s withdrawal from the European Union (EU) rocked the world. This video shows the early implications of Brexit.

As a result, Britain needs to negotiate its trade and political links with 27 EU members, including Australia. This could mean a sound and close bilateral relationship with London and possible improved broad-based relationship with Brussels. However, for Australian companies that use Britain as an entry point to EU, it could result to disruptions.

As for Australia, Government has ruled out starting date negotiations with UK until it leaves EU as the act would be illegal.

So the impact on Australia from this event is yet to be seen.

July freight news – Implementation of the new SOLAS rule

On 1 July 2016, a regulatory amendment to SOLAS was entered into force across International Maritime Organization (IMO) members. Need a refresher about the new SOLAS rule? Watch this video below.

Under the new SOLAS rule, all packed containers to have verified gross mass (VGM) submitted before loading it for shipment. Failure to do this would result to delays or cancellation of shipments. Read more about the new Solas rule in this article.

It was anticipated that SOLAS will bring disruption to shipping as ports and shippers came to terms with the new rules. However, the opposite seems to have occurred where the transition was smooth and has brought overall improvement to the shipping industry.

See this positive article from the Intermodal Europe 2016 conference on how the SOLAS implementation went smoothly and has brought new opportunities.

August freight news – The Hanjin bankruptcy

On 31 August, the seventh biggest shipping company in the world, Hanjin, filed bankruptcy protection (receivership), the largest container shipping bankruptcy in history.

A mad scramble by shippers to locate and gain control of their containers filled news around the globe. The Hanjin fleet was arrested and ports denied its access in fear that they will not be repaid. This included ports in Japan, China, India and Singapore and even entry to the Suez Canal.

Latest news about Hanjin revealed the shipping operator Korea Line Corp. had signed a 37 billion won ($31.5 million) deal to acquire some assets of Hanjin Shipping Co.

Under the deal, Korea Line will take over the following:

• business network and client information of Hanjin’s Asia-US route
• subsidiaries in seven countries including the US, China and Vietnam
• 574 workers based in Korea and overseas

The asset sale is to be completed this January.

November freight news – Donald Trump wins the US election

November – Donald Trump won the US election becoming the 45th President of the United States.

But what’s the big deal about this?
Prior to Donald Trump’s win, he had accused China of currency manipulation and even threatened to impose tariff on their products to as much as 45%. As a result, the world is awaiting a possible trade war between China and Australia.

However, the first true test of the Trump White House’s relationship with China may come in April, when the US Treasury releases a report looking at China’s currency. Further, Trump pledged to pull out of the planned Trans-Pacific Partnership (TPP). So we are yet to witness how Trump’s presidency will affect world trade but it looks like it could be big!

How about for Australia? Will this bring good or bad news?

Remember the ‘mad cow scare’ incident in the past? Australia benefitted to it by substituting US beef on Korean tables and dramatically increased its market share. With the looming US-China trade war, there is a possibility that it may happen again.

Australia can take this chance to get better trading opportunities with China. It can be taken as a more favourable supplier of food and energy security rather than the US.

Follow our LinkedIn Company profile link to keep updated of the latest news and happenings about this topic.

December freight news – Moller-Maersk splits into two separate divisions

In September 2016, rumours of A.P. Møller – Mærsk A/S splitting into two separate divisions were in circulation throughout the world. Before the year ended, this came true and two independent divisions were created.

Transport and Logistics Division

The Transport and Logistics Division consists of Maersk Line, APM Terminals, Damco, Svitzer and Maersk Container Industry based on a one company structure with multiple brands.

Energy Division

The Energy Division consists of Maersk Oil, Maersk Drilling, Maersk Supply Service and Maersk Tankers.

This decision divided its energy and transport divisions in arguably the greatest shake up in its more than 100-year history. The impact of the split for the freight industry is that this will allow A.P. Møller – Mærsk to focus on becoming a powerful shipping and logistics services integrator. There are concerns that this strategy will impinge on open competition for logistics services.

Bold freight news predictions for 2017

With the uncertainties that have been created from the big freight news items of 2016, it is important to choose a freight forwarding company with years of experience in the industry and with a wide network reach.

Our bold prediction for 2017 is that we at Freight Forwarder Quote Online Australia Customs & Forwarding will continue to improve and grow stronger allowing us to better serve your customs clearance and freight forwarding needs. Learn more about us today. Feel free to contact us online and send a message if you have any questions, or message us on Facebook.