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Dear Clients,

POWER

Many of you would be aware that power restrictions in CHINA have impacted the ability of many manufacturers. Will it get worse? Possibly, as winter months could see increased demand for power to heat.

This issue seems to have made global headlines, so we recommend following the major news reports on the matter or speaking directly to your suppliers to learn of the impact to your business.

GLOBAL SHIPPING CONGESTION.

Congestion continues to be a major factor in global trade. Last week, Long Beach / Los Angeles had an estimated 80 container ships watching the sunset each day for up to 3 x weeks. With an additional 20 bulk, RoRo and tankers, taking the total number of ships waiting to be estimated at 100.

President Biden is now pushing several initiatives including 24/7 logistics operations in the US, as they try and rectify the significant bottlenecks being experienced. Several major companies have agreed to open their warehouses 24/7 and major ports are also coming onboard. How long will it be, before we see a push like this in AU?

Closer to home, Sydney port is reporting a 4-5 x days on average waiting time.

We are starting to see several shipping lines only call 2 out of the 3 major East Coast Ports. Instead of calling SYD / MEL / BNE, they may just call SYD and BNE and then another carrier will call SYD and MEL. There has been no official announcements that this will be how schedules operate ongoing. But it does make sense to only call two ports to minimize exposure to delays.

UNION ACTION – LOCALLY in AU.

Yes this is still hanging around. Those out west, would have seen media reports of ships by-passing Fremantle due to the ongoing QUBE & MUA Disputes. That matter is on hold and will now be before the FWC to determine what requests by the MUA are approved. WWL (Ro/Ro carrier) has re-instated their Fremantle port calls, so we are not expecting ongoing VSL bypassing.

Patrick Terminals nationally have rolling disputes. These have been ongoing for months now and at times have impacted on operations and at others they have had minimal impact. Its possible that it could flare up over the coming weeks leading up to xmas.

TRAFFIC

For Clients in SYD and MEL, over the past several months truckers have commented on the low traffic volume, which has helped delivery schedules. With lockdowns lifting, they now expect to experience some day-to-day disruptions as road users return.

CHINESE NEW YEAR (CNY) 2022

14 weeks….. Yes that is right. CNY 2022 is only 14 x weeks away. The official holiday is on TUE 1st FEB 2022.

If we take away the current 2 – 4 x week booking notice. It gives 10 x weeks approximately to book and move cargo. So start planning if you have goods to move prior to CNY 2022. 

SHIPPING RATES

Have they stabilized? Possibly. Hopefully.

We are not seeing the sharp rate rises on CHINA – EU or CHINA – US as has been the case in previous months. This will greatly aid Australian importers / exporters, as one of the driving forces behind the price increases to date, was the significant gab between AU vs EU/US rates. 

But what will rates do come the lead up to CNY 2022 in JAN…. We are not sure.

BOOKING SPACE

China, S.E.Asia and Sub continent booking space is still needing 3-4 weeks to book in most cases. Yes, there is some spot capacity still available, but space overall remains tight.

Several carriers from varying locations globally still have a NO BOOKING policy, in particular for cargo transhipping via Singapore or Port Kelang where congestion is still being experienced.

One example of the congestion is a 5 x week roll over for a booking from China into Adelaide.

AIR SPACE

Not long to go before our international borders open. 1st NOV Qantas will recommence several routes and hopefully this will lead to increased passenger demand and then other airlines will follow.

This should see added AIR tonnage capacity in the market. But don’t forget, when planes were flying minimal passengers, air freight tonnage was well above the usual limits set by airlines.

Now with passengers on board, their luggage chews up some of the tonnage that is available per flight.

40 CONTAINERS LOST OVERBOARD

Contianer Ship ZIM KINGSTON is sitting of the coast of Canada near Vicotria with a fire on board after loosing an estimated 40 x contianers of the some 4200 TEU it can carry. The fire is reported to be under control. Several video’s are available on line.

This acts a reminder to ensure that you have appropriate Marine Insurance coverage


Kind regards,

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