Sydney Port Congestion Surcharge

As you would be aware from our newsletter on the 09^th September, MSC have introduced a “Sydney Port Congestion Surcharge (PCS) of USD300 per TEU for all arrivals from next week.

As predicted other shipping lines are following their lead, and we have received notification from ANL/CMA who are also introducing a Sydney PCS of USD285 per TEU (very nice of them to provide a discount).

There are rumours throughout the industry that all other shipping lines will also implement this surcharge, therefore it is expected that by the end of next week ALL freight into Sydney will be subject to this charge. At VoxGroup we will pass this surcharge on at cost, and we will continue to negotiate with the shipping lines to minimise where possible.

Industrial Action at the Stevedores

The industrial action being conducted by the unions at ports around the country is continuing. Slow work practices, intermittent stop work delays and work bans continue to hinder the free movement of goods.

Not only has this had a material effect with the above noted surcharge but the industrial action is also causing a flow on effect of delaying vessels from arriving and leaving ports. There is a one or two day delay on arrivals into port due to the industrial action. We will continue to provide updates on any changes to your ETA, so that you are aware of any delays.

General Rate Increases (GRI)

Not only are we dealing with the above issues and new surcharge, we are also receiving notification’s from Shipping Line’s of General Rate Increase (GRI) to be implemented from the 01^st October. We have seen a steady increase in rates over the past few months. This is due to reduction and constriction of space on vessel capacity into Australia, and empty equipment availability at origin.

All vessels are at or close to 100% full and the low-cost rates of earlier this year and in 2019 are no longer available.

We are seeing most origins out of China requiring 2-3 week booking requirements to ensure space, so please continue to communicate your upcoming orders timely, so that we can ensure space allocation, and updated rates.  If you are finding it challenging to move your goods, please advise and we can review other options through our network.

Stay safe and should you have any queries please contact us directly.