5331.0 - Balance of Payments and International Investment Position, Australia, Concepts, Sources and Methods, 1998  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 22/09/1998   
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Contents >> Chapter 7. Current account - services >> Transportation services

7.5. Transportation services cover services provided by residents of one economy to those of another economy which involve the carriage of passengers, the movement of goods, and related supporting and auxiliary services. Transportation is broken down by the type of service (passenger services, freight services and other services). While the international standards call for a dissection of transportation services by mode of transport (sea/air/other), in Australia confidentiality constraints preclude the presentation of data on this basis.


7.3
CLASSIFICATION OF SERVICES IN AUSTRALIA’S BALANCE OF PAYMENTS (a)

Transportation services
Passenger
Freight
Other

Travel services
Business
Personal
Education-related
Tuition fees
(c)
Sponsored students
Subsidised students
Full fee students
(c)
(c)
(c)
Other goods and services
(c)
Sponsored students
Subsidised students
Full fee students
(c)
(c)
(c)
Total education related expenditure
Of which
Long term
Short term stay
(c)
(c)
Other
(c)

Communication services

Construction services

Insurance services
Freight insurance
(b)
Other direct insurance
(b)
Reinsurance
(b)
Auxiliary services
(b)

Financial services

Computer and information services
Computer services
(b)
Data processing
Maintenance
Computer training and education
Other computer hardware and software services
(c)
(c)
(c)
(c)
Information services
(b)
Database services
News agency services
Other information services
(c)
(c)
(c)

Royalties and licence fees
Industrial processes
Trademarks and franchising fees
Music
Computer software
Computer design and hardware
Other royalties
(c)
(c)
(c)
(c)
(c)
(c)

Other business services
Merchanting and other trade-related services
Merchanting
Other trade related services
(b)
(b)
Operational leasing services
Miscellaneous business, professional and technical
Legal, accounting, management consulting and public relations services
Legal services
Accounting, auditing, bookkeeping and tax consultancy
Business and management consultancy, public relations
(b)
(b)
(b)
Advertising, market research and public opinion polling services
Research and development
Architectural, engineering and other technical services
Architectural services
Engineering services
Surveying services
Other
(c)
(c)
(c)
(c)
Agricultural, mining and on-site processing services
Agricultural services
Mining services
Waste treatment and depollution
Other
(c)
(c)
(c)
(c)
Services between affiliated enterprises, n.i.e.
Other
Manufacturing services
Other
(c)
(c)

Personal, cultural and recreational services
Audiovisual and related services
Theatrical, films
Television programs
Video tapes
Multimedia
(b)
(b)
(b)
(b)
Other personal, cultural and recreational services
Education services
Health and medical services
Sporting and entertainment services
Other

Government services n.i.e.
Embassies and consulates
Military units and agencies
Other
(b)
(b)
(b)

Memorandum items:
Gross insurance premiums
Gross insurance claims

(a)
All services categories are published or otherwise disseminated as a quarterly series except for:

(b) These services items which are not included in the monthly or quarterly publication, but are disseminated on a quarterly basis and are available on request.

(c) These items which are only published or otherwise released annually.


7.6. In practice, transport services are provided using a variety of rental and leasing arrangements for the craft employed in delivering the services. Transport services are regarded as being provided by the enterprises deemed to be operating the craft. This may be the owner, or it may be an enterprise leasing or chartering the craft from the owner, or an enterprise sub-leasing or sub-chartering it from a charterer. In the case of shipping transportation, a craft is deemed to be operated by the enterprise which has it under time charter for a significant period, and therefore generally incurs the operational costs of running the craft. This operator will incur operational leasing fees for the services of the craft, and will provide transportation services with the craft. Space charters, which simply rent space on craft (whether used for cargo or not), do not constitute operation of craft and are treated as freight services provided to the space charterer. Similarly, voyage charters (point to point vessel hire) represent the purchase of freight or passenger services from the operator.

Passenger services

7.7. Passenger services cover, in principle, all services provided between Australia and abroad, or between two foreign economies, involving the international transportation of non-resident persons by resident carriers (credit) and of resident persons by non-resident carriers (debit). Also included in passenger services are charges for excess baggage, or for moving other personal effects accompanying the passenger, and expenditures for food, drink or other items which passengers purchase while on board carriers.

7.8. In practice, the measurement of passenger services involves the following:

      • passenger services are reported by resident shipping and airline companies as travel revenue earned from international airline tickets sold abroad, whether to residents or non-residents, and regardless of whether that revenue relates to international travel or travel within a foreign country. Similarly, non-resident shipping and airline companies report revenue earned from ticket sales in Australia, whether to residents or non-residents, and regardless of whether it involves transportation between Australia and the rest of the world or transportation within Australia as part of an international journey;
      • for foreign visitors to Australia, data on their purchases of international airline tickets in Australia are used to adjust upwards the passenger fare earnings by resident carriers (credits) derived as explained above, and to adjust downwards passenger fare earnings by non-resident carriers (debits). A similar adjustment is not made in respect of Australian visitors abroad, resulting in a minor overstatement of travel debits offsetting both the slight overstatement of resident carrier earnings (transportation credits) and understatement of non-resident carrier earnings (transportation debits);
      • the value of services provided to non-resident persons by Australian carriers in Australia, when sold abroad as part of an international ticket (on-carriage), is collected from the carriers and allocated to travel services. Services provided on purely domestic travel in Australia by non-residents, whether pre-purchased abroad or while in Australia, are also included in travel. No classification adjustments are made for non-resident earnings from residents for internal flights abroad, and all earnings from sales in Australia for on-carriage in a foreign country, or for pre-purchased domestic travel in a foreign country, are included indistinguishably in transportation debits; and
      • cruise fares are excluded from passenger services and included in travel, although sea passenger services sold in Australia and provided to residents travelling from one country to another and any resident sea passenger earnings are included in transportation.

Freight services

7.9. Freight services refer mainly to the transport of goods. Also included in freight services are towing and services related to the transportation of oil platforms, floating cranes and dredges. To understand the scope of freight services, it is necessary to revisit the f.o.b. valuation of goods discussed in Chapter 6. In economic statistics any transportation service to the border of the exporting country is included in the value of the goods; thereafter the transport of the goods is treated as a freight service. This means, inter alia, that an Australian transport operator carrying imports from the border of the exporting country constitutes a service provided by a resident operator to a resident importer and hence is not recorded in balance of payments statistics; likewise the service provided by a non-resident operator on Australian exports does not need to be included in the balance of payments. Table 7.4 describes the implications of this treatment in more detail.


7.4
TREATMENT OF FREIGHT SERVICES
Credits: earnings by resident operators
Debits: earnings by non-resident operators
  • on Australia's exports, beyond Australia's border
  • on Australia's imports, beyond the border of the exporting country
  • on Australia's imports, before the border of the exporting country
  • on Australia's exports, to the Australian border
  • on other goods owned by non-residents (a)
  • on other goods owned by residents of Australia (a)

  • (a
    ) Includes: the transport of goods between third countries (cross-trade); coastal transportation or other transportation of goods between points within an economy; and transport of mail for postal and courier services. Excludes goods accompanying passengers.

    Other transportation services

    7.10. Other transportation services cover a range of services provided in ports, airports and other terminal facilities by residents to non-residents (and vice versa). These services include cargo handling (loading and unloading of containers etc.); storage and warehousing; packing and repacking; towing, pilotage and navigational aid for carriers; customs agency services; counter and baggage services; maintenance and cleaning of transport equipment performed in ports; and salvage operations. Also included in this category are agents’ fees associated with passenger and freight transportation, including freight forwarding and brokerage services.





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