The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) will enter into force on 5 July 2020

June 4, 2020

Indonesian has become one of the fastest growing economies in the Indo-Pacific, presenting Australian businesses with a major opportunity. Total two-way trade in goods and services with Indonesia was worth A$17.8 billion in 2018-19, making Indonesia our 13th largest trading partner.

IA-CEPA will give Australian and Indonesian businesses an opportunity to expand and diversify this economic partnership. It will also provide improved access for Australian businesses to the Indonesian market by reducing or eliminating tariffs, the institution of tariff rate quotas with automatic licencing without seasonality and, non-discriminatory access for service providers.

Indonesia is predicted to be the world’s fifth-largest economy by 2030, and IA-CEPA will assist Australia to deepen economic cooperation and share in Indonesia’s growth.

Coronavirus update

Maintaining efficient service levels is our top priority, however we also want you to be informed on what to expect as restrictions begin to lift around the world.

Container trade volumes for March 2020 have increased since February, which shows that the processing of the cargo backlog out of China is starting to flow again. 

The current trend of full capacity vessels is expected to drop off come the new financial year, as the return of consumer demand will be slower than initially thought.

Should the financial assistance schemes in Australia be stopped or wound back this may prolong the recovery period. We have seen businesses, including our own, looking to restructure to cope with lower work volumes.

We are fortunate at MYC to have retained our staff on an adjusted rostering system allowing us to continue to operate at full capacity with virtually no impact to you, our customers. Something we are extremely proud of.

Recent bad weather on both the east and west coasts of Australia may provide further disruption when vessels return to their load / transship ports for their next south bound voyages. In cases of rolled cargoes these are usually picked up on the next sailing.

There has been an increase in both charter and ghost passenger flights to support cargo needs.

Business in China has now returned to normal

Transport movements are also gradually returning to normal status including trucking services, terminal, depot, CFS operations, and the arrival of large bulk carriers in China. Airports, truckers, and customs clearance in China have returned to normal levels of operation.

We have stated to see an ease of the strict restrictions for the rest of Asia Pacific.  

Carriers continue to blank sailings on Asian as well as North American trade lanes to balance supply and demand. Some ports are still experiencing delays due to reduced working hours to comply with COVID-19 preventive measures.

However, the situation in some European countries is beginning to stabilise and governments start to ease the strict lockdown measures that have been in place to slow down the spread of the Coronavirus.

We are working closely with our long-term carrier partners to provide full transparency and address the needs and requirements of our customers.

As always, we are here to assist so do not hesitate to reach out!

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