Current state of logistics coming to Australia:

1. China

We are seeing rates stabilising from China in preparation for Peak Season which is expected to start in September. Given the current rates are substantially lower than they have been for the past 2 years the peak rate expectations for the rest of 2022 is lower than where the rates got to in 2021. Our expectations are the rates will peak somewhere close to US 4500 / 20’ and US9000 /40’. This is for general cargo and doesn’t include any DG surcharges.

Currently there is no issue with space out of China. We are putting this down to the inflationary issues around the world and some internal issues within China. Our expectations is that the shipping lines will start blank sailings to constrict space and equipment and this will drive up the rates.

China is the main area of the world that there has been a significant reduction in rates and increase in space availability. This has not been seen anywhere else.

1. India

We are getting a lot of conflicting reports out of India that the ports are working well and that there is starting to be a bit more freedom with space and equipment. Having said that these are only reports and our experience is, it is still quite difficult to obtain equipment and space.

This becomes even more prevalent with heavy containers and as an extension DG containers. The added issue for India is political unrest in Colombo where a lot of Indian freight was being transhipped through. This is causing additional delays and a lot of unease in India. The Indian Government is investing in the ports to try and remove the transhipment through Colombo but that will take time.

As for the rates we are seeing these stabilise still at a higher price point that what was available prior to COVID but nowhere near the USD11-15k that was being charged in 2021.

1. USA & Europe

The USA and Europe are running on pretty much the same trajectory for shipments to Australia in that space and equipment is extremely tight. In the USA there is still issue with port congestion and delays can be anywhere up to 6-8 weeks between getting a booking and exporting the freight. In Europe a lot depends on the individual country but most are struggling with space and equipment due to the substantial imbalance in China.

The situation in these areas is very difficult and we don’t expect to see any real light at the end of the tunnel for these regions until 2023.

1. Exports

As you have seen, despite being heavily dependant on imports, the space and equipment for exports from Australia is also quite tight. There are few shipping lines accepting bookings and these bookings can be 4-6 weeks until departure.

1. BMSB Season is about to commence as well. Anything that is a Target High Risk good shipped from Target High Risk countries after the 01^st September 2022 and prior to 30^th April 2023 will need to be treated.

Please remember any open container (Flat rack, open top container) cannot be treated onshore and will be re-exported if it arrives untreated. DAFF advised there was over 60 shipments re-exported last season. If you are unsure please speak to us before shipping your goods.

1. Port Congestion in Australia:

We are still experiencing port congestion within the East Coast ports which was not helped by industrial action last week. With COVID also effecting the availability of staff at terminals, transport operators and the shipping lines we are also seeing delays with
vessels berthing and therefore freight becoming available. We are receiving weekly notifications of changes of vessel rotations through the Australian ports which is also causing delays.

On top of this the general increases in timeslot, terminal handling, infrastructure, transport fees and delays with processing by Department of Agriculture is putting a lot of pressure on the industry as a whole.

VoxGroup is continuing to implement strategies to assist our clients in moving goods to and from Australia. Please speak to our dedicated staff with any queries you have.