Australian Grain Exporters Association

Supporting the Australian grain

export industry

About AGEA

Key priorities for AGEA

§  Removing regulation that negatively impact supply chain efficiency and cost

§  Maintain/improve market access (GIMAF)

§  Reducing supply chain costs

§  Setting the agenda

Deregulation has delivered benefits for the industry

ü  More customers buying Australian wheat

ü  Australia has maintained and grown export markets

ü  Bulk and container trade is growing

ü  Quality of Australian wheat is meeting market demands

ü  Growers have more marketing options and growth in farmer adviser support & information

ü  Increased investment across the supply chain

ü  New entrants to the Australian industry - domestic and international

The export sector has grown, with increased activity in bulk and containers

But some supply chain challenges remain – for exporters port access and execution are critical

§  Port access

–  Final phase of deregulation

§  Efficiency improvements in the supply chain

–  Vessels failing survey

§  the protocols to export prescribed goods from Australia represent an ongoing challenge to industry

–  Infrastructure

Background to the AGEA vessel protocol §  Variability in knowledge of the requirements and tolerances of Department

of Agriculture

§  Surveys can only be performed on arrived vessels

§  Lead time and complexity of booking loading slots at Australian grain terminals

§  Potential disconnect between terminal and shipper in the event of economic loss (compounded by a disruption multiplier to others in the queue)

§  inconsistent charter party terms re responsibilities such as for cleaning (CIF vs FOB)

§  Limited information maintained available on historical performance and cleaning equipment maintained on-board

Vessel requirements – Australian ports §  Vessels presenting in Australia need to be approved for loading

§  A vessel approval is only issued after:

1.  A marine surveyor has inspected the vessel and found the holds to be suitable for carrying the goods

2.  An Authorised Officer (AO) has inspected the vessel and found it to be free from pests and contaminants

§  Ships failing survey is resulting in cost impost and operational inefficiencies

§  AGEA has partnered with Rightship ro introduce a protocol which assists exporters to know the likelihood of their ship passing survey, thereby reducing delays and costs

About Rightship

§  Independent company formed in Oct 2001 §  Melbourne, London & Houston §  250+ customers globally §  ISO9001 & ISO27001 certified

§  Ship Vetting & Risk Management •  Petroleum & dry cargo vetting service •  Largest provider of third party vetting services (35,847 vets in 2014) •  Removed over 900 ships from customer supply chains in 2014 •  Environmental rating & CO2 benchmarking

Vessel protocol – rating system & education program

Exporter signs onto Protocol

Ships complete the Australian Grain Terminal Questionnaire

Analysed (& rated) by independent party (Rightship)

Exporter receives rating & determines

suitability

Ships performance captured (PTO/DAFF/  agent)  & reported to

Rightship

Entered into industry database

Industry best practice guidelines

Improved risk rating report

A combination of questionnaire responses, survey outcomes and overall performance history will be used to construct a predictive model that identifies the likelihood of a vessel passing grain survey without incident and calculates the relative contribution of each indicator

Until the predictive model is available, the system operates on an expert opinion based on the questionnaire responses on a case by case basis

Review Questionnaire Process

Review  responses  and  complete  the  

report  End  Start  

Req

uest

ing

Par

ty

Selects  submi@ed  quesBonnaire  from  A&T  screen  in  Qi  

Receives  a  link  to  enter  a  

quesBonnaire  (email)  

No

Yes

Completes  and  submits  the  quesBonnaire    

Com

plet

ing

P

arty

R

ight

Shi

p

Review  responses  and  complete  the  report  on  behalf  of  

AGEA  

Yes

No Request  a  new  QuesBonnaire?  

Escalate  to  RightShip?  

Review  responses  by  logging  into  Qi  via  email  link  

The AGEA vessel protocol will deliver benefits across the supply chain

For charters/shipowners

Improved understanding of requirements for Australian ports

For exporters provides: §  Likelihood of vessel passing survey upon

arrival at the Australian load port

§  Information to determine suitability of a vessel

§  Opportunity to take action at lower cost §  Opportunity to substitute a vessel well in

advance

For AGEA/Rightship

Analytics to underpin best practice guidance

Lower costs/Fewer days lost delivers benefits for:

Growers Exporters Ship owners Port Terminals Customers

www.agea.com.au Thank you