We want deliveries done differently, now

Research conducted by market research and data company YouGov explored the public’s concerns about the current state of last-mile delivery, highlighting the stresses and concerns consumers have as a result of online delivery and on-site utility services. Shockingly, nearly 1 in 10 consumers are too scared to use the toilet when waiting for a delivery, for fear of missing it.
The research revealed, for the first time, the ICurve – a detailed graph of how modern consumer demand maps to their busy lives. The ICurve is conclusive evidence of the Individual Economy, or IConomy, which describes how retailers, services providers and individuals demand personalised service and will reject those unable to meet their expectations.
However, the report also revealed the darker ramifications of current delivery practices, specifically the effects deliveries have on consumers’ work-life balance and mental wellbeing. 32% of respondents who work full or part-time had to take official leave to wait for a delivery. Moreover, more than one in five said it cost them money as they could not go to work due to a service or parcel delivery. With 75% of the UK population currently in full or part time employment, having flexibility is becoming increasingly important.

Overall, this year’s research revealed 71% of respondents cited physical and emotional disturbance around delivery appointments. 40% of respondents felt stress and anxiety while they waited for a service or parcel delivery, 13% were forced to cancel social plans, 11% experienced disrupted sleep and 7% felt uncomfortable using the toilet.

“Home delivery of goods and services combines all the top stress triggers. Missing out on social engagements and potentially risking a medical issue, by avoiding the call of nature, are symptoms of modern life being less healthy than many who enjoy the benefits of personal technology may realise.” TV Psychologist Emma Kenny.

According to the report, based on a statistically representative 2,000 respondents across the UK, 75% of overall respondents are available for delivery availability between 05:00 a.m., or five in the morning, until 22:00, ten o’clock in the evening. This extended window for deliveries is in contrast with the set up for typical delivery firms who typically operate between 07.30 and 19.30, a twelve-hour window that still therefore misses out on 42% of shopper-acceptable delivery times.
Not all delivery times are equal. Over half of those polled, 53%, want specific delivery slots which are the least disruptive to their personal life and 30% want those least disruptive to the working life. The resulting ICurve, of preferred delivery slots, differs greatly by individual. Respondents aged 25-55 prefer deliveries between 18:00 – 20:00 in the evening, whereas respondents aged 55+ prefer goods and services delivered between six and eleven in the morning.
The ICurve itself varies not just by age, but also gender, type of service, geography, family sized and working status. For instance, 65% of respondents who work full time prefer delivery services between 18:00 – 20:00, meaning for this typically busy, and high-spending demographic, most existing delivery services do not work.

Warehouse performance management software

Dematic has launched iQ InSights, a cloud-based asset performance management (APM) system that is said to unite order fulfilment and facility lifecycle management data for actionable intelligence that empowers users to make informed decisions that maximise overall warehouse logistics effectiveness.
Dematic iQ InSights holistically integrates facility-wide intelligence across warehouse and distribution systems, processes, and equipment so that managers can make data-driven decisions to fully utilise assets, increase operational performance, and add to the bottom line. The software is said to allow users to:

  • Maximise uptime.
  • Accelerate incident/resolution cycle time.
  • Enhance cross-function intelligence.
  • Reduce total cost of ownership.

It combines sophisticated enterprise asset management (EAM) software with real-time operational data and the power of cross-functional analysis and advanced analytics. Using Industrial Internet of Things (IIoT) active intelligence, Dematic iQ InSights enables peak warehouse performance while reducing total cost of operations.
The holistic, warehouse-wide approach enables true visibility across equipment, labour, and facility to help customers measure, evaluate and optimise operations.

Drive home on bread bags

Recycling company Close the Loop has unveiled an upgraded manufacturing facility that could divert two-thirds of Australia’s 300,000 tonnes of waste soft plastics sent to local landfill annually.
The new manufacturing line in Melbourne will produce TonerPlas, an asphalt additive that contains the equivalent of 530,000 recycled plastic bags, toner from more than 12,000 recycled cartridges and 168,000 glass bottles in every kilometre of two-lane road. In conjunction with Downer, roads featuring TonerPlas have already been laid in Melbourne and Sydney this year.

Close the Loop chairman Craig Devlin said the opening of the line coincided with National Recycling Week and will enable the company to produce the additive on a commercial scale.
“Close the Loop has been at the forefront of the circular economy for more than 17 years. Our goal of zero waste to landfill has seen us partner with manufacturers through take-back programs across multiple sectors including printer cartridges, cosmetics and batteries.
“TonerPlas is a great example of how valuable materials can be recycled to not just create new products, but better-quality products. The addition of TonerPlas improves the fatigue life of traditional asphalt by 65 per cent, meaning longer lasting roads at a cost-competitive price. It also offers superior resistance to deformation over standard conventional asphalt for withstanding heavy vehicular traffic.”
“At full capacity our new manufacturing line provides us with the ability to produce enough TonerPlas in a year to pave a two-lane road from Sydney to Melbourne. That would contain the equivalent of 530,000,000 recycled plastic bags, 168,000,000 recycled glass bottles and 12,000,000 recycled toner cartridges. That’s more than 200,000 tonnes of soft plastics that currently go to landfill in Australia.”

He added that policy changes in China had highlighted the importance of a local recycling industry and improved energy use across the design, use and reuse of products – a circular economy.
“Our new manufacturing capacity to reuse soft plastics and toner into TonerPlas is a great example of what local companies can do,” Mr Devlin said. “However, Australia needs to coordinate and invest in infrastructure to build a viable recycling industry and divert problematic waste streams from landfill. Banning plastic bags is a start, but it doesn’t solve the challenge, especially as plastic bags account for less than five percent of all waste soft plastics.”

China’s Singles’ Day sales top $42bn, Australian brand comes on top

Alibaba Group says it generated RMB213.5 billion (USD30.8 billion, AUD42.7 billion) of gross merchandise volume (GMV) during the Singles’ Day sales on 11 November 2018, an increase of 27% compared to 2017.
Australian products Swisse (first) and Bio Island (fifth) ranked in the top 10 products, whilst Australia maintained its position in the top five countries selling to China at fourth spot. In the first hour of the event, sales of Australian lamb increased 775% from last year.
“Today we witnessed the strength and rise of China’s consumption economy and consumers’ continued pursuit to upgrade their everyday lifestyles,” said Daniel Zhang, CEO of Alibaba Group. “Participation from the entire Alibaba ecosystem enabled our brand and merchant partners to engage with consumers like never before.”
In the hours leading up to the shopping event, Alibaba’s video streaming platform Youku hosted the fourth annual countdown gala to celebrate the official launch of the festival. Viewers were able to watch the gala live via Youku, as well as across China on two major Chinese TV stations. This year, the gala featured international celebrity appearances and performances from Miranda Kerr, Mariah Carey and Cirque du Soleil.
Key highlights from the 2018 11.11 Global Shopping Festival:
Top 10 countries/regions selling to China by GMV:

  1. Japan
  2. United States
  3. Korea
  4. Australia
  5. Germany
  6. United Kingdom
  7. France
  8. Spain
  9. New Zealand
  10. Italy

Top 10 imported cross border brand into China:

  1. Swisse (majority Chinese-owned Australian)
  2. Moony
  3. KAO
  4. Aptamil
  5. Bio Island (Australian)
  6. a2 (New Zealand)
  7. H.C
  8. MartiDerm
  9. Elta MD
  10. Move Free

In the first hour of 11:11 Global Shopping Festival, sales of Australian lamb increased 775% from 2017.
Top 10 categories of imported products bought by Chinese consumers by GMV:

  1. Health supplements
  2. Milk powder
  3. Facial masks
  4. Nappies
  5. Serums
  6. Infant and toddler nutrition
  7. Emulsion
  8. Face wash
  9. Make up remover
  10. Toner

Global highlights:

  • Total GMV settled through Alipay was RMB213.5 billion (USD30.8 billion, AUD42.7 billion), an increase of 27% compared to 2017.
  • Cainiao Network processed more than 1 billion delivery orders.
  • More than 180,000 participating brands.
  • Over 40% of consumers made purchases from international brands.
  • 237 brands exceeded RMB100 million in GMV, including leading international brands Apple, Dyson, Kindle, Estée Lauder, L’Oréal, Nestlé, Gap, Nike and Adidas.
  • 230 countries and regions with completed transactions.
  • Lazada participated in 11.11 as part of the Alibaba ecosystem, bringing the festival to consumers.

 

Introducing AI: keep workers on side

Artificial intelligence (AI) could provide a boost to workforce productivity, but organisations need to build their employees’ trust in these technologies and upskill staff appropriately if they are to take full advantage of the benefits.
“AI is already being used to complete vital tasks in workplaces across a range of industries, but it could be used to boost productivity for the workforce generally,” said managing director of recruiting firm Hays in Australia and New Zealand Nick Deligiannis.
PwC analysis suggests that AI could contribute USD 15.7 trillion to the global economy by 2030, with USD 6.6 trillion of this figure coming from increased productivity. These gains are expected to come from the automation of processes, coupled with AI technologies augmenting the existing labour force.
There are already examples of where AI is starting to have this sort of impact. Two examples are shared in the latest Hays Journal, which explores this issue: fund managers are using AI to track media or social media stories about particular companies to glean important information that could impact share prices, while GP are trialling an AI system that conducts an initial triage of patients to determine who requires primary care.
AI drives demand for more highly-skilled professionals
While some basic positions are likely to be taken over by machines, AI is also creating a need for more highly-skilled professionals.
Associate Professor in Artificial Intelligence at the University of Bath Joanna Bryson gives the example of a bank that is using chatbots to deal with basic customer enquiries.
“You would think that would reduce the number of people managing the telephones, but what they found was that customers felt more engaged and ended up contacting the bank more,” she said. “The other interesting problem was that the chatbots were solving all the easy problems.”
Managing director ANZ of Nuance Communications Robert Schwarz agreed: “Virtual assistants allow organisations to provide their customers with fast and accurate self-service, which is often more convenient than available alternatives. This also reduces call centre costs and has the effect of freeing up agents to undertake more value-adding tasks that are more complex in nature.”
“With AI taking over routine or repetitive tasks, employees can focus on the more exciting aspects of their job or even move into other areas of the business,” said Mr Deligiannis. “Upskilling will be essential to ensure people become more highly-capable experts in their field.”
HR must build trust and alleviate fears
While AI will undoubtedly make some jobs easier, it can also increase fears around career security within the workforce.
Yet a 2018 study, Is automation labour displacing? Productivity growth, employment, and the labour share by David Autor and Anna Salomons found that AI has had a positive effect on aggregate employment.
“HR will need to support the implementation of AI and ensure it is used responsibly while alleviating the perceived threat that many workers see it posing to their livelihood,” says Mr Deligiannis. “Part of this will involve talking about the rationale behind it, and explaining how it can help individuals perform their job, and potentially develop their career through learning new skills.”
This is supported by marketing leader for cognitive process transformation at IBM Global Business Services Owen Tebbutt who said: “The more open an organisation can be about why and where it’s using these technologies, the less concerned employees will be. It’s got to be based around this idea of empowerment. It’s not there to replace jobs but to make your job more impactful, enjoyable and productive. HR needs to be very positive about some of the things this technology can do to make people more productive, happy and fulfilled.”
In the longer term, there can be little doubt that AI will play a more significant role in how organisations are set up and run in the coming years. “A human being is only capable of taking in so much, so we are going to need help sorting through that, and that’s the biggest area where AI can help organisations or people,” says Mr Tebbutt. “The choice is quite stark: we can either drown in data or find a way to benefit clients and the workforce.”
According to Hays, the latter is possible so long as employers are open about the introduction of AI and offer training to employees where needed. In this way, AI will ultimately create a more engaged and productive workforce.

Toyota forklifts go on a hydrogen charge

Toyota Material Handling Australia (TMHA) has put the first Toyota hydrogen fuel cell-powered forklifts outside of Japan into action during trials at Toyota Motor Corporation Australia’s parts centre located at its former manufacturing plant at Altona, Victoria.
The zero CO2-emission Toyota hydrogen fuel cell (FC) forklift demonstration is an extension of Toyota’s simultaneous trial for its Mirai fuel cell electric vehicle (FCEV), which share the same hydrogen-powered technology.
The Toyota hydrogen FC forklifts with a nominal rating of 2,500kg lift capacity will also be featuring in the official opening of the new Toyota Parts Centre in Western Sydney’s Kemps Creek.
Toyota hydrogen FC vehicles take pressurised hydrogen that is fed into a fuel cell stack, where it is combined with oxygen to create a chemical reaction that produces electricity to drive various motors depending on demand for motive power or hydraulic power for steering, braking or lifting loads.
Toyota hydrogen fuel cell forklifts will be especially suitable for logistics and warehouse operations given they can be conveniently refuelled in just a few minutes, offering obvious productivity efficiencies.
Toyota Material Handling Australia general manager – corporate compliance and project development Bob Walmsley said the hydrogen FC forklifts take around three minutes to fill the hydrogen tank, compared with around eight hours to recharge a conventional battery. “This means we can use these forklifts more often, without having to significantly wait between charges or use second-shift batteries to achieve the same utilisation,” said Mr Walmsley.
TMHA president and CEO Steve Takacs said the Toyota hydrogen FC forklifts are another example of the synergies available to Toyota Material Handling Australia from Toyota’s automotive arm.
“In much the same way Toyota’s range of forklift products are researched and developed using Toyota’s advanced manufacturing technologies – and built to the same exacting standards of quality, durability and reliability as Toyota’s automotive vehicles – our engineers collaborate across the Toyota Group to incorporate the latest technologies acquired from our automotive sector,” said Mr Takacs.
“We at TMHA are committed to constantly developing new and better technologies that raise the bar in terms of safety, performance, efficiency and sustainability, which will ultimately benefit our customers.

“These hydrogen FC forklifts are a clear demonstration of our commitment to the environment through the adoption of new and sustainable technologies. They have excellent environmental credentials as they do not emit CO2 or substances of concern (SOC) during operation.
The hydrogen FC forklifts will also be trialled at Toyota’s newest and largest Parts Centre warehouse at Kemps Creek, New South Wales.
The Toyota hydrogen FC forklifts and Mirai are not for sale in Australia, mainly due to a lack of hydrogen refuelling infrastructure. Toyota’s mobile hydrogen fuelling station installed on a Hino 700 Series truck fuelled the FC forklifts and Mirai during the trials.

 

War brewing on the waterfront

The stevedore: DP World Australia welcomes ACCC report
DP World Australia has welcomed the ACCC’s Container stevedoring monitoring report 2017-18, focusing on the report’s confirmation that industry profits continued to decline.
“We are pleased to see that the report confirms contextual factors that led to our decision to increase Infrastructure Access Charges at our three east coast terminals, effective from 1 January 2019,” the company said in a statement. “These include: an increase in port capacity; the increased market power of shipping lines; increases in property-related costs; a substantial investment in infrastructure, and; a sharp fall in profitability for all stevedores.
“We note the ACCC finds that there may be some justification for the use of charges, that it’s not unreasonable for stevedores to seek to recover some costs from the landside, and that it has no view on the appropriateness of the current charges.
However, the company said shippers, transporters are crying foul.
“We don’t agree with concerns about the potential impacts of Infrastructure Access Charges throughout the supply chain. Evidence from previous years shows that the increases can be, and are, passed through the supply chain. This is, in fact, what happened in 2017. Evidence from previous years shows that the increases led to very small increases to the prices of delivered goods. The increase in the Infrastructure Access Charge to be applied at West Swanson from 1 January 2019 would, for example, add just one-tenth of a cent to the delivered cost of an iPhone. Such increases can be passed through without dampening demand, as is evidenced by growth numbers following previous increases in charges.”
As for government regulation: bring it on!
“We note the ACCC’s remarks that the recent rises in Infrastructure Access Charges may warrant review by state policy makers. We are prepared to make our case – for a more equitable pricing structure for all users, for ongoing investment and for our sustainable future – in any forum.”
And besides, you need us.
“A financially healthy stevedoring industry is vital for the long term economic well-being of Australia.”
Farmers don’t agree
Farmers believe urgent action is needed on port infrastructure charges.
The Victorian Farmers Federation (VFF) Grains Group is calling on the State Government to address skyrocketing port infrastructure charges at the Port of Melbourne.
According to the ACCC’s Container Stevedoring Monitoring Report released this week, DP World stevedoring rates have risen 2372% since the first port infrastructure charge of $3.45 per container was introduced in late 2016.
“It was promised by the government during the sale of the port in 2016 that adequate protections against unreasonable fee increases would be in place,” said VFF Grains Group president Ross Johns.
“While the VFF welcomes the recent announcement from Minister Donnellan that an investigation into port access fees will be brought forward, it is vital that this investigation ensures those promised protections are set in place.”
The charges, which apply to truck or rail operators dropping off or collecting containers, have brought in $100 million for stevedores in 2017-18 alone.
“All these extra costs flow straight back down the supply chain to the farm gate. Victorian farmers are already battling to maintain access to valuable export markets in the face of the high production costs and competition from cheaper supply chains in other exporting countries,” said Mr Johns.
“DP World’s recent comments that the charges can simply be ‘passed through the supply chain, without negative impact’ demonstrate that they have no understanding of what the increases mean for Victorian farmers who cannot pass the costs on. In the case of containerised wheat exports, these increases are typically borne by one farmer who will deliver the entire 25mt to fill the container.
“These increases only make Victorian exports less competitive, eroding potential earnings from the Victorian economy, as buyers of Australian grain look to cover their demand from countries with cheaper supply chains.”
Now that Victoria is in caretaker mode, the VFF has called on all parties to support the commitment to undertake an investigation, and to ensure adequate measures are in place to protect the Victorian agriculture industry from these excessive port infrastructure charges.
The union: TWU calls for government intervention
The Transport Workers’ Union is calling on federal and state governments to regulate stevedores as a report by the ACCC has expressed concern over the impact of fee hikes on supply chains.
The fee hikes are causing financial problems for transport operators at the ports, which will have an impact on safety, said TWU National Secretary Michael Kaine.
“Drivers and transport operators have been voicing concerns since these fee hikes began. Now the ACCC has backed their concerns and spoken about the impact they are having. Governments need to step in and regulate this industry or risk safety at the ports,” Mr Kaine said.
The road safety watchdog torn down in April 2016 was investigating safety in transport at the ports and was due to release findings. Evidence was being presented to show how a financial squeeze from the top was resulting in transport operators and drivers under pressure to cut safety corners.
“We had in place a watchdog that was beginning the process of regulating the top of the supply chain at the ports to ensure safety is the number one priority. The watchdog was hearing from port drivers who were giving evidence about delays, lack of training, badly maintained vehicles and poor rates which do not reflect the time or cost required to carrying out work.  The Federal Government tore down this body and now we have the unfettered greed of stevedores unleased on the transport industry. This is exactly what happens when regulatory gaps are left to fester. The ACCC report shows stevedores are still highly profitable, making $60 million profit with revenues up 6.8% to $1.3 billion. This industry must end its squeeze on transport,” Mr Kaine added.
“We welcome the Victorian government’s review into pricing and charges at the ports. We urge the review to be carried out with the utmost urgency and for other state governments to follow suit,” he said.
The ACCC report refers to the lack of choice for transport operators at the ports. “Transport operators have no ability to choose a stevedore that has lower infrastructure charges.” It adds: “There is an incentive for stevedores to increase infrastructure charges.”
Transport owners: we agree but not your way
The National Road Transport Association (NatRoad) also wants action on portside land charges, but has rejected the TWU’s suggestion.
The organisation has responded to the Transport Workers Union’s comment on the ongoing problem of unregulated landside port charges, calling it a “puzzling ‘solution’”.
NatRoad CEO Warren Clark said that the recent ACCC report had thrown light on the lack of state government-based regulation of landside port charges.
“The way in which these charges have been applied to landside contracts is a misuse of market power given the inability of downstream service providers in landside logistics having any capacity to effectively negotiate solutions to these price increases.
“But suggesting that the rightfully defunct Road Safety Remuneration Tribunal could have assisted to solve this problem is plainly wrong.
“NatRoad supports private enterprise. We believe that commercial outcomes should be promoted by establishing competitive market frameworks in preference to regulation. However, where there is a need for regulatory oversight of prices, the introduction of price monitoring should be considered as a first step.
“Price regulation is appropriate where public assets like ports are utilised by private operators, including in respect of landside services, and State governments should act to stop the increases that appear out of control.  For example, the ACCC has noted that the increase in charges has been most notable in Melbourne, where DP World’s charge will have increased from $3.45 per container in April 2017 to $85.30 from 1 January 2019.
“NatRoad has a deep commitment to improving road safety.  But raising the RSRT as some sort of magic pudding whenever there is a supply chain pricing issue just doesn’t hold up to logic.  Economic arguments about prices in any part of the transport chain should be looked at from the point of view of market-based solutions first and then Government intervention where market power has been abused.
“NatRoad will be renewing our call to the NSW Government to get involved in the issue of landside port charges. We want these charges to be included as part of its price monitoring regime, requiring all New South Wales port lessees and sub-lessees like stevedoring companies to provide a rationale for how a relevant price increase is calculated and why it is needed. If, as appears to be the present case, it is for the operator to invest in further capital assets rather than as a direct result of legitimate price increases then government should step in.
“We will be making similar arguments to other state governments and to the Commonwealth Government, but we will not be talking about resurrecting a price-setting tribunal that did not and should not have a legitimate role in the transport industry,” Mr Clark concluded.
 

Stevedores are charging truckers, shippers

The ACCC is calling on state governments to regulate the stevedoring industry.
A record 5.1 million containers were lifted at the monitored ports last financial year, but profit margins in the container stevedoring industry suffered (on charges collected from lines), according to the ACCC’s 20th annual container stevedoring monitoring report.
In 2017–18 the average prices charged to shipping lines fell further, resulting in a drop in profit margins to a low of 4.5 per cent, while productivity remained largely unchanged. Meanwhile, stevedores increased ‘infrastructure charges’ that likely add costs to the supply chain.
“The stevedoring industry has changed significantly over time, with large increases in productivity and reductions in costs since the ACCC started monitoring the industry 20 years ago, but challenges remain,” ACCC chairman Rod Sims said.
Shipping lines have been able to negotiate cheaper rates because of growing competition between stevedores and consolidation in the shipping line industry, resulting in an 8.5 per cent fall in quayside revenue per lift for stevedores.
Stevedores continued to rapidly increase ‘infrastructure charges’ applied to truck and rail companies delivering or collecting containers at port, which has led to strong criticism from transport operators and cargo owners.
Stevedores have justified these charges with increases in operating costs and the need to invest in infrastructure to handle the increasingly large ships visiting Australian ports.
It is not unreasonable for stevedores to recover some costs for investment in container terminal facilities. However, transport operators and cargo owners are limited in being able to respond to higher stevedore charges by taking their business elsewhere, unlike shipping lines.
“The use of infrastructure charges means that stevedores can earn a greater proportion of their revenues in a market in which their market power is stronger relative to the more competitive market in which they provide services to shipping lines,” Mr Sims said.
“We are concerned about the potential impact of these charges. If stevedores do not face a competitive constraint on their prices, it will leave consumers paying higher charges for goods and make exporters less competitive,” Mr Sims said
The ACCC does not have the power to determine stevedoring charges as they are not a regulated asset.
“State governments, which regulate stevedores and ports, may need to conduct further detailed examination and, if warranted, use their regulatory powers,” Mr Sims said.
“We do not have sufficient information about the broader supply chain to conclusively determine if regulation would be appropriate. We note that the profitability of stevedores has continued to fall despite the increases in infrastructure charges.”
Two stevedores, DP World and Flinders Adelaide, commenced extensive capital expenditure in 2017–18, with very little investment from other stevedores.
In 2017–18, productivity performance remained mixed; while labour and multifactor productivity improved slightly, capital productivity fell slightly. Truck turnaround times continued to improve in Melbourne, but deteriorated slightly in Sydney.
The ACCC’s report is available here.
Background
The ACCC has monitored the container stevedoring industry since 1998-99 under a direction from the Australian Government. Container stevedoring involves lifting containers on and off ships. The ACCC currently monitors the prices, costs and profits of container stevedores at five Australian container ports.
Patrick and DP World operate at the four largest ports—Brisbane, Fremantle, Melbourne and Sydney. Hutchison operates in Brisbane and Sydney, while VICT commenced operations in Melbourne in early 2017. Flinders Adelaide is the sole terminal operator at the Port of Adelaide.

10 million illicit cigarettes caught by Customs

Australian Border Force (ABF) officers have charged a man after he allegedly attempted to smuggle more than 10 million cigarettes into Australia in sea cargo containers.
On 10 October 2018, ABF officers identified two containers at the Melbourne Container Examination Facility. Upon further examination, both were found to contain pallets of illicit cigarettes.
The total amount of cigarettes concealed in both containers is estimated to be 10,034,000, worth more than AUD $8.9 million in evaded duty.
On 17 October 2018, ABF officers executed a warrant at a business address in Campbellfield and seized a number of electronic devices.
On 22 October 2018, a 40-year-old man was arrested by ABF investigators and charged with one count of contravening section 233BABAD (2A) of the Customs Act 1901.
He appeared at Melbourne Magistrates Court and was granted conditional bail, to reappear on 21 January 2019.
ABF Victoria Regional Investigations Superintendent Nicholas Walker said the operation would make a significant dent in the supply of illicit tobacco in Victoria.
“This is a significant detection – we’ve been able to prevent the Commonwealth being defrauded of more than $8.9 million in legitimate revenue,” Superintendent Walker said.
“Illicit tobacco is an international issue, with much of the profits from cigarettes sold illegally in Australia being used to fund other criminal activity both here and overseas.”
“The ABF is committed to working with our international partners to detect, investigate and disrupt those involved in the illegal tobacco trade – and to stop the profits from these smuggling operations from funding further criminal activity.”

Australian Border Force (ABF) officers have charged a man after he allegedly attempted to smuggle more than 10 million cigarettes into Australia in sea cargo containers.

The maximum penalty for tobacco smuggling is 10 years’ imprisonment and/or a fine of up to five times the amount of duty evaded.
The illicit tobacco market in Australia is worth about $600 million a year in evaded revenue. Targeting and dismantling this criminal activity is an operational priority for the ABF.
You can help
In addition to operations like this, the ABF is also leading the new Illicit Tobacco Taskforce that combines the resources of the ABF, Department of Home Affairs, ACIC, the Australian Taxation Office, AUSTRAC and the Commonwealth Director of Public Prosecutions.
Anyone with information on the illegal importation of illicit tobacco is encouraged to contact Border Watch at Australia.gov.au/borderwatch. This can be done anonymously.

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