supply chain - AWB Limited

Additionally, optimisation can only be achieved if growerscan identify the most efficient sites for their grain. Tothis end, the AWB National Pool provides transparentprice signals to allow growers to make informed choicesin relation to delivery of grain via the site-to-sea costspublished on the AWB website (www.awb.com.au).All these efforts are part of AWBI’s ‘Shaping the Future’strategy designed to protect and grow the value the AWBNational Pool can generate in the tough internationalmarket.COMPETITIVE CHARTERINGAWB Chartering, a division of AWB Limited, acts as aservice provider to AWBI. It offers competitive freightservices to assist in the execution and improve the valueof AWB National Pool sales. AWB Chartering is bound bythe AWB constitution to operate in a manner thatmaximises AWB National Pool returns to Australianwheat growers.AWB Chartering can offer competitive freight rates tomany overseas customers who may not enjoy the sameaccess to capital, chartering expertise, economies ofscale and information that AWB provides to the Pool ininternational freight markets.The ability to provide this chartering service strengthensthe business relationships international customers havewith the AWB National Pool, which in turn improves theglobal competitiveness of Australian wheat. Importantly,using an internal AWB service provider to manage shipchartering protects commercially confi dential Poolinformation.By selling wheat inclusive of sea carriage ‘Cost andFreight’ (CFR) through AWB Chartering, the AWB NationalPool can exploit its Single Desk position to achieve agreater return for Australian wheat, while remainingcompetitive on the landed price for internationalcustomers.Selling CFR also gives the AWB National Pool fl exibilitywhen managing its own logistics and grain fl ows. Forexample, through AWB Chartering a vessel scheduled togo to one market can be switched at port, or even midvoyage,to take advantage of a new opportunity thatemerges elsewhere.AWB Chartering increases the competitiveness ofAustralian wheat by using combined cargoes of wheatand other commodities. In several markets, this haslowered landing costs, which has translated to moresavings for customers, in turn making the AWB NationalPool more internationally competitive.Importantly, the fact that AWB Chartering operatesseparately from AWBI can protect the AWB National Poolfrom some of the risks associated with the sea freightmarket.Ingrid TaylorGrower Services OfficerAnthony DiamanteChartering Manager21