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Dear Clients,

As I am sure you have seen in the media the past week, supply chain issues continue to be everywhere.  From shortages of “FRENCH CHAMPAGNE” to “BEER” to “ADBLUE” (diesel additive).  What isn’t impacted by supply chain bottlenecks?
Therefore, when you see delay notices or receive communication that space is limited or not available.  You are not alone, its everyone.  If CUB cannot gain enough space for “CORONA” it's no-good losing your cool at Transways staff.  We understand your frustrations, unfortunately though it's a fact of the market conditions we all operate in and not only face in Australia, but the globe as well.

But rest assured, we are doing all we can to facilitate your shipments and will continue to do so.

Further to the above, below is a quick summary of various topics impacting the market to finish the year off.

S.E.ASIA -
If you are importing ex S.E.Asia origins that go via Singapore.  Or if you import into FREMANTLE or ADELAIDE, its going to be a bumpy ride over the next 2 x months.
Many carriers are slashing bookings and even cancelling existing bookings.  As they face a massive roll over pool of containers in Singapore, of approx. 4 – 6 x weeks’ worth of cargo.

Moving cargo prior to Chinese New Year is going to be challenging and if you can secure space, we suggest you take it as a priority.

MUA dispute with Patricks -
Not much news or media on this topic the past week.  Looks like the Morrison Govt will step in though if needed, should the two parties not be able to resolve their issues.

Quoting Prime Minister Morrison “Inefficient ports are a tax on all of us”

Read about it here, pending which subscription you have.
Scott Morrison - Industrial Action (Google)

Feeder Services STH CHINA -
Many carriers are stopping their feeder service late DEC / EARLY JAN in preparation for CHINESE NEW YEAR.  This will impact ports such as Huangpu / Foshan / Zhongshan and other ports in the Pearl River Delta region.
The reason they are stopping is so ship crew can quarantine for the appropriate time, before returning to their homes for CNY celebrations.

Exports from AU -
Very challenging. Getting space on ships is out to FEB in many cases.  And many carriers are refusing bookings and will only consider sometime into 2022.

Airfreight -
Space is very tight for both import and export.  Import rates continue to rise due to the high demand of last-minute cargo.  If you can, hold off until after xmas as space may become available.
Exports….  AUD35 per KG to move cargo from MELBOURNE – MEXICO CITY is an example of the ridiculous pricing in the market.  This gives you an idea how tight space is when airlines can charge such high per KG rates.

OCT Volume Reports -
Several Australian ports have reported OCT import volumes decreased.  This matches comments from shipping companies.  So why do freight rates remain high.  Scheduling issues, less space per month into AUSTRALIA.

Vessel Schedules -
This is the number # 1 issue in our view, with schedules continually being pushed back and delayed across the world.  In some cases, we are seeing up to 15 days delay ex CHINA on direct services into AUSTRALIA.
Very little can be done to avoid the impact of this.

Power -
Factories are adjusting to working with reduced power during the day and increasing shifts at night time where they can.  Some factories are doing it better than others.  So do expect disruptions.

Beijing Winter Olympics -
FEB 4 – 20th.  Expect disruptions in Beijing and other cities that are hosting events.  We witnessed it with the Summer games in 2008, where they cut power and shut factories to clear the sky, the same approach is likely in 2022.

Wharf Fees -
DP WORLD and various other terminals around Australia are increasing booking fees, access fees and implementing sideloader access fee’s around the country.  Transport rates will increase due to this.

Trucking Fees -
Many trucking carriers are advising increases of 2 – 7% in base line trucking rates for 2022, due to the shortage of labour and difficulties in retaining working.
As scary as it sounds, CNY is just 4 x weeks away from a “BOOKING” point of view with DEC already booked and JAN bookings filling fast.  So plan now, talk to shippers and get them to place bookings now if you need cargo to move prior to 31st DEC.

As this will be our last market update for 2021, on behalf of the team @ Transways, we wish you all a very safe and happy holidays and all the very best for 2022.  Your continued support in 2021 has been greatly appreciated, it’s been challenging, difficult and frustrating to say the least, and we expect 2022 to remain similar for the short to middle term.  But together we will be able to face these challenges and overcome them together.

From all the team @ Transways Logistics international.

Kind regards,

     

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