The recent plunge in oil prices provides a measure of relief, but market conditions are expected to remain extremely difficult moving into 2009, forcing airlines to adopt additional cost-saving measures, including capacity cutbacks and deferral of planned capital expenditures.

Cargo traffic for U.S. airlines fell 6.2 percent in October compared to the same month in 2007, but carriers got some rare relatively good news in the beleaguered transportation market as shipping grew from September to October.

The overall decline in October compared to the previous year was an improvement over the 7.1 percent the carriers reported in September and cargo ton miles actually advanced 5.4 percent from September to October, according to the Air Transport Association.

International traffic was the largest drag on the airlines, falling 6.4 percent in October after a 5 percent drop in September, pushed down by a 10.7 percent slide in trans-Pacific air trade. That marked the sharpest decline in air cargo shipping over the Pacific since February 2002.

Manufacturing activity ended 2008 on a weak note, falling for a seventh consecutive month.

The manufacturing industry, like the rest of the economy, is going to face some challenging times in 2009, however, the industry has shown great resilience in the past and the capacity to take advantage of opportunities.

As well, positive announcements such as recently in the car industry, will give a timely boost to confidence.”
Australian PMI® key findings for December were:

• Manufacturing activity fell for a seventh consecutive month in December.
•  Capacity utilisation fell to its lowest level in sixteen years.
• All components remained below 50 points indicating falls in the levels of each indicator.
• New orders and unemployment fell, though at a slower rate than in November, while production, inventories and supplier deliveries fell faster than in November.
• Wages, selling price and input cost price growth eased in December, while the fall in manufactured exports slowed over the month.
• Lower official interest rates and government spending measures, global and local, have yet to have an impact on demand for manufactures.
• The ongoing fall in activity reflects slower consumer demand, the weak construction sector and the impact of falling global demand for manufactures as reflected in international PMI measures.
• Manufacturing activity fell in all states, particularly in Western Australia and Queensland.

Even though there are significant differences in interstate tax liabilities, every government should prioritise tax reform to help kick-start business in the current economic climate.” The IPA study sheds light on tax burdens imposed by states. This helps business make decisions about where to invest, and assists the community in understanding how state taxes affect business conditions around Australia.

NSW is on the cusp of a revolution in port logistics with industry having a unique opportunity to reshape the way the road and rail logistics operates in Port Botany. This was the clear message presented to members of the trade and transport industries at a Sydney Ports Corporation briefing session on the Corporation’s Port Botany Landside Improvement Strategy, held in November.

Sydney Ports COO, Paul Weedon, told the crowd of more than 120 industry representatives, the Corporation would take an active role in leading industry through the reform process. He said this would be the first time in Australia a port management organisation had moved away from the landlord model to become actively engaged in the logistics chain.

Mr Weedon said three NSW Government reports into operations at Port Botany, including the IPART Report – Reforming Port Botany’s links with Inland Transport, recommended that Sydney Ports take a leadership role in improving landside infrastructure and operations of landside logistics chains.

Infrastructure Australia has now completed its preliminary audit of the nation's vital economic assets and compiled the infrastructure proposals for prioritisation. Infrastructure and Transport Minister Anthony Albanese has received the report containing the information from Infrastructure Australia Chair, Sir Rod Eddington.

Infrastructure Australia's analysis has concluded that future public and private investment needs to be directed towards:

Infrastructure Australia will be working with states, territories and the private sector to develop a long-term strategy and to deliver real improvements in the key areas for investment.

In addition to undertaking the audit and compiling the infrastructure proposals for prioritisation, Infrastructure Australia has developed national public-private partnership guidelines.

The report is available at: Infrastructure Australia.

The Global financial crisis has yet to have an impact on trade through Sydney ports, with 7.3 million mass tonnes of total trade moving through the trade for the first quarter of 2008/09, an increase of 0.7 per cent compared to the same period in the previous year.

Total container throughput for year to date (YTD) September 2008/09 was 0.49 million TEUs – up 13.2 per cent on the same period last year. September 2008 container trade reached another record high of more than 165,000 TEUs, which was 12.8 per cent higher compared to September 2007. This performance was driven by higher container movements through New Zealand, the US and China. Total full container imports for YTD September 2008/09 reached 247,300 TEUs – up 11.3 per cent on the corresponding period last year.

The last car carrier to visit Sydney Harbour discharged its cargo at Glebe Island on 15 November 2008. The last visits marks the final step in the NSW Government’s plan to transition the vehicle import trade from Sydney to Port Kembla, part of the NSW Ports Growth Plan announced in 2003. The car import trade had been progressively moved from Sydney Harbour to Port Kembla since June this year, following an upgrade of the Port Kembla facility.

Over the last few years Sydney Ports Corporation has worked with industry and Port Kembla Port Corporation to ensure this has been a smooth transition of the vehicle import trade from Sydney.

Although this is the last car carrier to visit, Sydney Harbour will remain a working port, retaining import of construction materials, cruise shipping, long-term oil imports and maritime construction, maintenance and repairs into Glebe Island and other berths. The port facilities in Sydney Harbour not only play a vital role in the NSW economy, but are also central in terms of the identity of the harbour. Sydney has been a working harbour since the beginning of European settlement. Last year there were 784 commercial vessel visits to Sydney Harbour including bulk cargo vessels and cruise ships.

He said financing has been identified for every order in the first half of 2009, and the same is likely for second-half orders. When the orders were pouring in, he said, Boeing screened customers to ensure financing availability. However, the company is to cut 800 jobs in Wichita, Kansas, equivalent to 27 per cent of its workforce there because of a delay in the Air Force tanker replacement program and the end of work on other defence projects.

Delta Air Lines has confirmd that it will begin a daily nonstop service between Sydney and Los Angeles International Airport from 03 July, 2009.

The airline will operate B777-200LR aircraft offering up to 18 tonnes cargo capacity, however due to the length of the flight, cargo space is often weight-restricted, especially on the inbound flights. Forwarders and shippers will benefit from Delta's extensive US network. An official announcement on cargo arrangements for the new flights is expected from Delta headquarters in Atlanta.

Delta is the world's largest airline following its recent takeover of Northwest Airlines.

To counter airline customers’ tightening credit lines and stretched cash flows, Boeing and Airbus are preparing to pump billions of dollars worth of loans into the airline industry in 2009. In an interview with UK media The Times,

A review by Customs has determined that processing of refunds through a National Refunds Centre is the most appropriate method for ongoing delivery of this service.

From 1 January 2009 the Customs National Refunds Centre has been established in South Australia, with some functions initially continuing in Victoria as part of transition arrangements.  Refund applications will continue to be subject to verification as a part of a revised compliance

assurance program that will be managed by the Compliance Division. Existing service delivery standards will remain unchanged. Should an application become subject to verification, required information must be lodged within 30 calendar days.

Should the required information not be lodged in that time, Customs will make a decision to either approve or reject the application based on the information provided.