Coronavirus update – its effects on logistics from China

The continuing effects of the Coronavirus on the supply chain and logistics fields is expanding continually. As factories are forced to stay closed or require permission to open, several companies have decided to have staff work from home and have a staged approach to returning to work.

The knock-on effect has been substantial. The shipping lines are introducing further blank sailings to try and support the slowing demand. This has helped them achieve some consistency in rates throughout this worldwide issue.

As per all the reports, we are not yet in a position where the virus is contained and therefore the ongoing issues with shipments from China will continue.

If you are sourcing goods from other areas of the world, VoxGroup, through our consultancy division, we can assist at looking to implement legally acceptable ways to reduce the costs of these additional sources of supply. Please speak to one of our staff and we can organise a discussion on the issue of costs, import duties and relevant taxes.

Stevedores – here we go again

Patricks has advised the industry that they are again increasing charges for import and export containers. Whilst not calling the current charge an increase in infrastructure fees, it’s basically that and provides a further impost on the industry.

As these fees are past through the supply chain the quantum of increases is likely to come to a total of $145.00 for East Coast ports. Patricks are also increasing the costs of time slots and booking fees so the cost to the industry is substantial.

Where possible we will be negotiating the fees however, we will need to pass these through to our clients.

The State and Federal Government and their relevant authorities have refused to put a stop to the increase in fees and unfortunately the stevedores see this as a green light to continue to increase their revenues and profits. All this without providing any additional benefits to industry. If there is any further news, we will keep our clients updated.

If you require further information, please speak to us and we can provide greater information.