VoxGroup Newsletter – Logistics – 22nd October 2021
Vox has spent the week speaking to a number of our partners around the world to provide a more detailed update on the state of shipping. The world is still struggling with space, equipment and rates which means Australia is not on its own with the current issues facing the industry.
Long Beach – USA
It was reported this week there were 70 vessels waiting off Long Beach port to get a berth. The overall situation in the USA is only getting worse especially as they head into winter.
Outside of the terminal issues there is also issues with truckers in specific areas and this is also causing delays to pick up and therefore bookings.
We continue to look at solutions to route containers away from Long beach where possible and will make changes where required to alleviate movement through Long Beach.
China
A new shipping line has entered the China to Australia route with the first sailings in November. Whilst this has not lead to any reduction in rates it has opened some additional bookings and equipment from certain ports.
Overall the movements from China are not being delayed by more than a week or two. The out breaks of COVID have settled and therefore all ports are working to capacity.
There has been low rates being put into the industry however the rates and space are not available and clients are being caught short. With Xmas coming and there still being full vessels, if the rates seems to good to be true, then is possibly is.
India
Speaking to our partners in India, the overall situation is that India is starting to move again and get back to some semblance of normality. The India to Australia tradelane is still the most difficult lane to get space and equipment with the shipping lines refusing, cancelling and changing bookings without any justification.
The rates have also continued to spiral out of control and will continue to do this whilst there is such a lack of space and equipment. There is light at the end of the tunnel with the rest of the world becoming more accessible. We can hope the tradelane to Australia also starts to free up.
Terminal Charges in Australia
DP World has again notified industry they intend to increase their charges as of the 01st January 2022. The never ending increases in charges by the terminals continues without any government intervention to assist the industry.
Whilst we expect final figures from DP World in November, there is the added expectation that the other terminal operators will also increase these charges.
The flow on effect is increased costs to LCL as well as the containers come through the terminals and therefore LCL infrastructure fees will also increase. Until the governments start to take an interest in this matter, which is being highlighted in publications by industry, the operators will continue to increase the costs.
Xmas closures
As we start to prepare for the Xmas shut down period please let us know when your closing and opening times are so we can track your shipments accordingly.
With our new warehouse in Melbourne and our 3rd party partners we will be able to assist with any storage requirements over the Xmas period.
We hope all our clients and partners are safe and well in these trying times and should you need to reach out to us please do not hesitate to call.
Take care and stay safe.