1. Purpose

To advise Members the GTA Board has approved for release the 2024/25 GTA Location Differential (LDs) for QLD, NSW & VIC as recommended by the GTA Commerce Committee.

These are now available on the GTA website and will take effect from 1 October 2024.

2. Background

GTA publishes the LDs for the storage locations of our members in Qld, NSW, Vic, SA and WA annually to enable participants using the GTA Contract No. 2 Grain and Oilseeds in Bulk – Basis Track to price grain at up-country sites. Each year GTA consults with members and the wider grain industry to address potential changes.

This year GTA circulated on the 13th of March 2024 calling for first round (Round 1) submissions and on the 30th of May 2024 called for further/final amendments (Round 2).

The GTA Commerce Committee subsequently reviewed the 2024/25 LD submissions at their meeting on the 9th of July 2024 and recommended they be approved for release by the GTA Board. The Board accepted this recommendation at their meeting on the 25th of June 2024. This means east coast LDs are now available for use and take effect from 1 October 2023.

3. Location Differentials ARE NOT freight rates

GTA releases LDs each year to enable pricing of the GTA No 2 Contract – Contract for grain and oilseeds in bulk delivered price basing point or port terms (Basis Track) commonly referred to as the “Track Contract”.

If they are used for other purposes this should be done with the knowledge that there may be a difference between the GTA LDs and the actual market related cost of freight execution. This “freight price risk” or “freight basis” must be managed by commercial interests.

Members should regularly adjust their port-based pricing according to their analysis of the LDs and the freight market. The GTA LDs are not published to be a substitute for management of freight price risk and the variation between the LD and the actual cost of execution of freight should be managed by each organisation commercially.

For more information refer to the GTA Fact Sheet – Location Differentials

4. Amendments to LDs in QLD, NSW and VIC

The following amendments/additions have been approved for NSW, QLD and VIC LDs:

a. Queensland

b. New South Wales

c. Victoria

5. Location Differentials & Amendments for SA and WA

GTA set the LDs on behalf of industry for GTA Member sites only and only when requested by a GTA Member. GTA LDs are generated for QLD, NSW and VIC whereas the trade has agreed to use Viterra, CBH Group and other storage operator’s published freight rates for South Australia and Western Australia each year, subject to approval by the GTA Commerce Committee and the GTA Board.

GTA does provide LDs on request for site operators other than Viterra and CBH in those states.

Please note: until such time as the South Australia and Western Australia LDs are approved by the GTA Board, the current 2023/24 LDs remain in place.

a. SA

The bulk of the GTA Location Differentials in South Australia are derived from the Viterra Export Select Rates provided to GTA.

Viterra Export Select Rates for all their SA sites have not been made available to GTA for 2024/25. They will be available on the GTA website once they have been approved by the GTA Board, after having been provided to and reviewed by the GTA Commerce Committee.

For SA sites linked to a Viterra port where the site is not owned by Viterra, the Committee agreed in 2010, to adopt a methodology that is based on the net tonnes per km rate for nearby Viterra sites adjusted for road distance (referred by Google Maps) to port and apply that rate.

T-Ports provide a proposed LD for its storage sites to the Commerce Committee for review and endorsement.

SA sites with a port destination in an adjacent state use the same methodology employed in the destination state e.g. Victoria.

b. WA

GTA anticipates CBH Group and Bunge will provide their 2024/25 rates in October. These will be posted on the GTA website and members will be notified at that time following GTA Commerce Committee and GTA Board approval.

6. Effective Date

The GTA 2024/25 Location Differentials are effective from 1 October 2024.

7. Excel Format

The GTA 2024/25 Location Differentials are available for GTA Members in excel format. Please send your request for these to admin@graintrade.org.au and include “Excel Location Differentials Required” in the subject field.

8. Further Information

For further information about the GTA Location Differentials please refer to GTA Fact Sheet – Understanding Location Differentials http://www.graintrade.org.au/fact_sheets