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]]>Due to the ports’ strategic location, advanced capabilities and winning utilisation rate, it has been essential to world trade for many years. However, changes in the global shipping landscape, climate and international politics have placed pressure on the deep-water port and led to a backlog of shipping containers.
With Singapore’s shipping delays doubling in recent weeks, it’s essential that importers and exporters understand major contributing factors and impacts. Dive into the issues overcrowding one of the world’s most advanced ports and how Singapore is adapting.
Deep understanding into the container backlog requires insight into why shippers have relied on the Port of Singapore for over two centuries.
Most vessels travelling between the Indian Ocean and Pacific Ocean pass through the Singapore Strait. This offers a deep-water passage to The Port of Singapore, where ships stop for bunkering and transshipment. For over two centuries, the port’s location positioned it as an essential trading post. Recent technological advancements, such as ship building and repair services, has allowed the port to remain incredibly important to exporters and importers around the globe.
The Port of Singapore is Asia’s largest transshipment centre and the world’s most important bunkering station. However, a multitude of global events have affected supply chains within a short span of time. This has placed the port’s leading handling capacities under immense pressure and led to delays for importers and exporters worldwide.
The most pressing cause of the container backlog is overcrowding due to Red Sea disruptions. Shippers are all too familiar with the conflict, which has forced 90% of vessels that relied on the channel to reroute through the Cape of Good Hope in Africa. This diversion has lengthened the Asia-Europe service lane, one that now also needs to support rerouted vessels, by thousands of miles.
Diversions caused by the Red Sea conflict have forced the Port of Singapore to accommodate a huge amount of unexpected route changes and off-schedule vessel arrivals. Many ships are now stopping in Singapore to refuel for their lengthened journey, contributing to an increased demand for transshipment and bunkering. Some container vessels are needing to unload cargo in Singapore that is no longer viable for them to transport, causing further overcrowding and delays.
Linking the Atlantic and Pacific Ocean, the Panama Canal is utilised by around 5% of cargo ships. However, record-breaking droughts have made it difficult for large cargo carriers to pass through. Low water levels are causing sea-bourne traffic jams, with less ships able to pass through at once and some needing to unload cargo beforehand. This is causing significant shipping delays and container backlogging that impacts ports as far as Asia. When combined with the overwhelming number of off-schedule arrivals from Red Sea diversions, the drying Panama Canal is a climate issue arriving during an already difficult time for the Port of Singapore.
In May of this year, the Office of the United States (US) Trade Representative announced plans to raise tariffs on imports from China. This has caused a rush in Chinese exports and placed further pressure on the Port of Singapore. These increases are a combination of those set during Donald Trump’s presidency and other increases led by the Biden administration, such as quadrupled import duties on Chinese electric vehicles (EVs) to 100%. A few raised tariffs will begin on the 1st of August, 2024. More will take effect on the 1st of January in 2025 and 2026.
Facing raised tariffs on over $18 billion (US) worth of exports to America, Chinese exporters are accelerating their efforts. This means an increased number of ships carrying cargo from China to the US are needing to dock in Singapore. With container terminal utilisation already pushed to the limit, the port simply doesn’t have the capacity to facilitate increased container vessels from China without delays.
Singapore is responding to the congestion by doubling down on their efforts to expand their port. In anticipation of the rising demand for berthing and transshipments, the country announced plans for a mega port back in 2012. Due for completion in 2040, the Singapore government committed $14 billion (US) to the ‘Tuas Port’. The first phase focused on reclamation works, which were completed in 2021.
Following the container backlog caused by Red Sea disruptions and other factors like the drought and tariff raises, Singapore is accelerating the launch of new berths in the Tuas Port. In addition to the existing eighth berths, three new ones are set to be opened later this year.
The Tuas Port plans include:
The Maritime and Port Authority of Singapore (MPA) have also reopened the Keppel Terminal in an effort to alleviate backlogging. The terminal offers berths and yards that have increased the port’s weekly handling capacity from 770,000 TEU to 820,000 TEU.
As congestion at the Port of Singapore continues, importers and exporters of large cargo are especially impacted. With limited alternative routes and transport modes, stakeholders are facing rate increases, delays and uncertainty. This has called for many organisations to reassess the performance of their supply chain.
As one of Australia’s largest freight forwarding and logistics specialists, we empower our clients to adapt their supply chain to changing conditions. Leveraging our industry-leading Business Intelligence Hub, we tailor solutions to amplify the resource-efficiency and risk management of your supply chain.
Learn more about our supply chain consulting expertise by reaching out to us today.
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]]>The post <strong>The impact of strikes on European ports and global supply chains</strong> appeared first on webfx.
]]>“These strikes are a stark reminder of the pivotal role labour dynamics play in the smooth functioning of global supply chains,” noted Angela Gambell, our Director of Sales, Marketing and Operations at Stockwells. “We’re witnessing firsthand how localised disputes can have ripple effects globally, impacting everything from delivery schedules to consumer prices.”
In France, a significant development has unfolded: the National Federation of Ports and Docks (FNDP) has temporarily halted nationwide strikes originally scheduled to continue until late June. While this pause provides a brief relief, concerns linger as the FNDP plans to resume strikes on September 26-27.
“In the midst of these strikes and their broader implications, we are closely monitoring the situation for potential impacts on shipment schedules, costs, and global trade dynamics in the coming months,” Angela Gambell added.
The disruptions coincide with existing challenges in global shipping: capacity constraints, logistical bottlenecks, and recent crises like the Red Sea shipping crisis. These factors intensify concerns over delays and inflationary pressures, complicating operations for businesses worldwide.
“Managing these disruptions requires agile responses and proactive planning,” Gambell said. “Every hour of delay at major ports translates into potential setbacks across the supply chain, impacting businesses and consumers alike.”
Already strained, shipping companies must now contend with potential disruptions in global networks, anticipating delays that could affect delivery schedules. This situation underscores the vulnerability of international trade to local labour disputes, highlighting the interconnected nature of the global economy.
“In response to the strikes, carriers are compelled to adjust shipping rates upwards,” explained Gambell. “These adjustments, though necessary, could further drive up prices for imported goods, ultimately affecting consumers globally.”
The strikes coincide with broader labour movements in Germany, where IG Metall, the country’s largest labour union, advocates substantial wage increases for millions of workers in the metal and electrical industries. This push reflects a wider economic climate marked by rising inflation and concerns over wage stagnation relative to cost-of-living increases.
“The labour movements are indicative of larger economic trends,” Gambell observed. “They underscore the need for sustainable wage policies that balance fair compensation with economic stability, critical for long-term growth.”
The repercussions of the European port strikes extend beyond local shores, echoing throughout international trade routes. Concerns about the resilience and adaptability of supply chains in the face of unexpected disruptions are paramount, especially with the strikes preceding the European summer holiday season, amplifying anxieties about potential shortages and logistical gridlocks.
“As governments, businesses, and industry stakeholders navigate these challenges, the ongoing strikes highlight the fragility of global supply chains and the need for robust contingency planning in our interconnected world. Resolving these labour disputes will be pivotal in shaping global trade dynamics and economic recovery efforts in the months ahead.”
“The intensification of market volatility due to strikes and disruptions in the Red Sea calls for heightened vigilance in tracking movements and proactive consideration of extended lead times for shipping,” Gambell added. “Staying ahead of these challenges in planning has never been more critical for businesses reliant on global supply chains.”
With strikes scheduled across France in September, supply chains need to prepare for further disruptions in ports across Europe. If these issues coincide with similar strikes in other major European ports, cargo bound for Northern Europe could be redirected to alternative ports such as Antwerp and Rotterdam. This situation has the potential to exacerbate existing supply chain challenges, leading to heightened shipping delays and increased costs due to elevated spot rates for businesses.
“Given the current demand levels and the possibility of extended strikes, the shipping industry faces heightened uncertainty,” Gambell warned. “We must monitor these developments closely to gauge their impact on global shipping rates, potentially echoing the highs seen during the pandemic.”
Stockwells continues to offer strategic insights and support to businesses navigating these turbulent waters, emphasising the importance of adaptive supply chain management and proactive planning amidst evolving global dynamics. Get in touch with our team today.
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]]>The post <strong>Geopolitical developments and regulatory changes: Navigating the new financial year in logistics</strong> appeared first on webfx.
]]>Here’s a look at the key shifts defining the sector:
Red Sea crisis: Ongoing hostilities in the Red Sea region continue to cause ripple effects across global supply chains, leading to increased ocean freight rates and disruptions in shipping schedules. Vessels are rerouting away from affected areas, impacting major trade routes like those between Europe and Australia. Businesses must brace themselves, anticipate longer lead times, and plan meticulously to steer through these turbulent waters.
Increased costs: Escalating shipping costs, largely driven by geopolitical tensions, underscore the importance of cost management and strategic planning. Embracing these challenges head-on and integrating them into financial planning will pave the way for smoother sailing ahead.
Planning and lead times: Longer lead times necessitate proactive planning to minimise the impact on inventory management and customer satisfaction. Anticipating delays and optimising supply chain processes are critical steps in mitigating disruptions.
Warehousing needs: Amidst unpredictable shipping schedules, there has been a notable rise in the demand for sufficient warehousing space. Many businesses are turning to third-party logistics providers to secure storage and fulfilment capacities, ensuring they can maintain flexibility and scalability in their operations. At Stockwells, we specialise in offering these crucial logistics solutions to support your business needs.
Direct-to-consumer growth: Embracing the surge towards direct-to-consumer models is crucial, especially in today’s challenging landscape. Driven by consumer demands for seamless shopping and lightning-fast deliveries, businesses must elevate their e-commerce strategies and optimise supply chains for direct distribution channels.
Stock management: Effective stock management strategies are paramount in volatile market conditions. Businesses are encouraged to adopt agile inventory management systems and leverage data analytics to forecast demand accurately and optimise stock levels.
Recognising the urgent global need for sustainability, shipping companies are increasingly adopting carbon offsetting measures. These initiatives aim to mitigate the environmental footprint of shipping operations, providing businesses with opportunities to integrate sustainable practices into their logistics strategies. As we enter the new fiscal year and beyond, it’s crucial for businesses to prioritise sustainability, which is rapidly becoming a non-negotiable imperative.
In response to Budget 2024-25, the Australian Government is eliminating 457 tariffs on essential goods, such as toothbrushes and clothing, to streamline trade and reduce costs by $8.5 billion annually. These changes, detailed in ACN 2024/17 by the Australian Border Force*, aim to enhance affordability and support economic growth. The adjustments in biosecurity and food import fees effective July 1, 2024, by the Department of Agriculture, Fisheries and Forestry**, highlight Australia’s commitment to maintaining rigorous standards. It is important to note this will also influence operational costs for stakeholders.
These updates present both opportunities and challenges for logistics professionals. While tariff removals promise enhanced market access and cost savings, managing increased biosecurity fees requires careful financial planning and operational adjustments. Staying informed and agile will be crucial for navigating these regulatory changes and seizing growth opportunities amidst evolving global trade dynamics in 2024.
Throughout this financial year, businesses in the logistics sector must remain vigilant and adaptable amidst geopolitical uncertainties, evolving consumer behaviours, and regulatory changes. By prioritising strategic planning, leveraging technology-driven solutions, and embracing sustainable practices, businesses can navigate these challenges effectively and seize opportunities in the dynamic global marketplace.
Stay informed, stay proactive, and stay resilient—these principles will guide logistics professionals in driving success amid the complexities of 2024 and beyond.
Want to learn more? Reach out to our team of experts.
Sources:
*Australian Border Force (ACN 2024/17)
**DAFF recently completed an annual review and indexation cycle to regulatory fees and charges for biosecurity and imported food regulatory activities. The complete table of Indexed fees and charges can be found here:
Fees and charges for biosecurity regulatory activity from 1 July 2024
Fees and charges for imported food regulatory activity from 1 July 2024
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]]>The post <strong>The ESG wave: why environmental, social and governance practices are crucial in shipping</strong> appeared first on webfx.
]]>ESG encompasses critical areas such as emissions reduction, diversity promotion, and transparent decision-making processes. This necessitates a thorough evaluation of a company’s societal and environmental impact, coupled with robust governance practices.
These considerations are reshaping the shipping landscape, impacting businesses, shipping lines, importers, exporters and freight forwarders alike, driving a shift towards sustainable practices.
Continue reading to discover how you can incorporate ESG into your supply chain.
How ESG plays a role in your supply chain
In today’s dynamic landscape, adherence to ESG factors is crucial for maritime success. Shipping, as a capital-intensive sector, leads in sustainability efforts, aiming to meet ambitious environmental targets. To do so, reducing investment risks, advancing green technologies, and embracing sustainable practices are paramount.
Attracting and retaining talent is pivotal for driving this transition. Investors, customers, and stakeholders closely scrutinise company performance, shaping investment decisions and long-term sustainability. Ultimately, the future of the shipping industry hinges on both environmental and social governance factors.
Environmental accountability:
Recognising the profound environmental impact across the supply chain, from production to delivery, demands collective action beyond just shipping lines. Importers and exporters play pivotal roles in this ecosystem, bearing responsibility for minimising emissions, pollution, and ecological harm.
Embracing a comprehensive approach, all stakeholders must engage in tailored initiatives to curb their environmental footprint, involving not only reducing greenhouse gas emissions but also implementing strategies for energy and water conservation, and embracing cleaner fuels and responsible recycling practices. By committing to such initiatives, importers, exporters, and shipping lines can collectively advance global sustainability objectives, comply with regulations, and fortify their long-term business resilience, fostering a more environmentally conscious and sustainable future.
Social responsibility:
Incorporating social aspects into ESG practices is crucial for creating a positive work environment and nurturing strong community relationships. Prioritising factors like employee health, safety, diversity, equality, and inclusion is key. This involves implementing rigorous safety protocols, including regular training, and fostering diversity through mentorship programs and diversity training.
Additionally, companies can opt for eco-friendly shipping solutions, maintain transparent communication about sustainability practices, and ensure fairness throughout their supply chain. Engaging with the local community may include sponsoring educational workshops, partnering with charities for environmental projects, or organising volunteer activities to address community needs.
These initiatives not only improve employee satisfaction and retention but also build trust with stakeholders. This dedication to social responsibility sets them apart in an industry often under scrutiny for its societal impact, enhancing their competitiveness in the market.
Governance integrity:
Transparent governance practices are crucial for fostering trust and accountability. Compliance with regulatory guidelines and continuous improvement benchmarks ensures operational integrity. Transparency, guided by principles, and adherence to these principles, as well as regular reporting on progress, exemplify strong governance.
Key performance indicator (KPI) reporting is integral for monitoring progress, while policy reviews ensure continual improvement. Given the industry’s heavy regulation, comprehensive staff training on compliance, risk management, safety, and financial due diligence is essential. Risk management is a critical component of staff and management KPIs, supported by thorough open communication and proactive solutions to mitigate any identified risks.
In practice – how Stockwells is prioritising ESG
Stockwells acknowledges the pivotal role of ESG principles in the shipping sector, driving innovation and advancement towards sustainable business practices that foster mutual benefits for both the industry and the environment. We are dedicated to effecting positive change for our planet and society.
This includes prioritising:
We maintain our dedication to leveraging technology for operational efficiency, prioritising logistics solutions, fostering inclusivity, giving back to the community, and reducing environmental impact through robust sustainability policies.
Central to our ethos is transparency and accountability. Our annual report serves as a cornerstone in upholding these principles, providing clients with the necessary insights to make informed choices when selecting a freight forwarder.
We extend our support to other stakeholders in the shipping industry, encouraging them to advance ESG principles by investing in sustainable technologies, enhancing supply chain transparency, ensuring ethical sourcing, promoting leadership diversity, and fostering a culture of compliance.
By collectively prioritising ESG, the shipping industry can cultivate a more resilient, responsible, and future-proof ecosystem, addressing societal and environmental challenges while securing long-term profitability and stability for all.
Want to discuss ESG further? Reach out to our team.
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]]>The post The Red Sea shipping crisis: A closer look at its impact on global trade appeared first on webfx.
]]>Previously steady shipping channels now face uncertainty due to increased attacks, compromising access to the Suez Canal. Container traffic, representing 30% of global shipments, is particularly affected as vessels navigate additional miles, straining the agricultural shipping sector, causing ripple effects across the supply chain, and impacting trade volumes and economic stability.
As importers and exporters grapple with market uncertainties, meeting delivery deadlines and controlling costs become daunting tasks, especially amidst challenges beyond the industry’s control. Stakeholders within the shipping industry must collaborate to explore alternative routes and enhance security measures. Such efforts are crucial to safeguarding global trade integrity and ensuring the uninterrupted flow of essential goods.
Impact on supply chain
The redirection of Red Sea shipping routes has led to longer sailing times, resulting in containers spending more time at sea, necessitating an increase in both containers and ships. The absence of direct coverage through the Suez Transit has caused a significant buildup of containers in West Mediterranean ports, leading to congestion. This congestion, in turn, delays the return of empty containers, creating a shortage in Asia and further exacerbating congestion there. Combined with an early peak season prompted by impending ocean freight price hikes, potential US port strikes, and adverse weather in Asia, the shipping industry finds itself trapped in a perpetual cycle of imbalance. Consequently, delays in schedules, full capacities, and forwarders scrambling for containers are symptomatic of these systemic challenges.
Implications on shipping costs
The Red Sea shipping crisis, along with other concurrent issues in the industry, is exerting pressure on shipping costs. Much like the stock exchange, where geopolitical, situational, and environmental factors influence demand and subsequently prices, the maritime trade is similarly impacted. The disruption in shipping routes can lead to increased demand for alternative routes, thereby driving up prices.
Inflationary pressures
The Red Sea shipping crisis is set to heighten inflationary pressures by disrupting the global supply chain. With significant challenges in shipping, including delays and reroutings, certain sectors may face price hikes due to scarcity and increased transportation costs. This presents significant challenges for exporters and underscores the necessity for proactive measures to stabilise international trade and alleviate economic repercussions.
Considerations for exporters
While the challenges posed by the Red Sea shipping crisis are out of the industry’s control, exporters can adapt their strategies to navigate the evolving landscape of global trade. Longer sailing times, difficulty in securing containers, space shortages on vessels, and extended booking lead times are critical factors that exporters need to account for.
Planning ahead and proactively managing logistics can help mitigate the impact of these challenges. Fostering agility and flexibility in supply chain operations is essential to respond effectively to changing circumstances. By staying informed about industry developments and collaborating closely with logistics partners, exporters can minimise disruptions and ensure the timely delivery of agricultural goods to markets worldwide.
Where to from here?
Amid the challenges of the Red Sea crisis, our top priorities at Stockwells are collaboration, transparency, and keeping our clients informed. We streamline order processing to minimise disruptions and ensure clients have advance notice. Our approach involves using past data to make smart decisions and adjusting quickly to current needs. Internally, we assess container distribution to make ports run efficiently. By sticking to these principles, we aim to navigate the challenges diligently and transparently, ensuring our clients are well-supported throughout.
Should you require assistance, our team of specialised experts are available to support you. You can reach out today.
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]]>The post <strong>Strategies to manage costs and achieve sustainability in shipping for importers and exporters</strong> appeared first on webfx.
]]>While the initial steps towards greener operations may entail added costs, the long-term dividends in terms of cost savings, heightened brand reputation, and access to eco-conscious markets are undeniable. Embracing sustainable shipping is not just a matter of corporate responsibility; it’s increasingly becoming a strategic imperative in the face of escalating environmental concerns.
Some of the short-term financial impacts include:
Amidst these considerations, importers and exporters can adopt various strategies to mitigate the financial burden associated with the transition to green shipping, and reap the benefits.
Here are five ways they can navigate these costs effectively:
Explore collaboration with suppliers and logistics partners to identify opportunities for joint initiatives like shared transportation and collaborative warehousing. Consider exploring joint investments in green technology research and development, pooling resources for staff training, and seeking advice from experts who can offer compliance guidance, help in making informed decisions, and support with optimising green initiatives for long-term benefits.
Transitioning to lightweight, recyclable, or biodegradable packaging materials not only minimises environmental impact but also reduces shipping costs by lowering overall package weight and volume. Additionally, implementing innovative packaging designs that maximise space utilisation can lead to fewer shipments and decreased transportation expenses.
Optimise transportation routes to reduce costs and environmental impact by leveraging route optimisation techniques. By integrating different modes of transportation like rail, sea, and road, businesses can maximise efficiency while minimising emissions and operational expenses. When utilising road transport, consider employing electric vehicles to further reduce carbon footprint.
Select environmentally friendly carriers committed to sustainability practices. Look for carriers using fuel-efficient vehicles, renewable energy sources, implementing recycling programs, and participating in carbon offset initiatives. Prioritise detailed route planning to minimise distance travelled and fuel consumption, resulting in reduced costs and emissions.
Selecting environmentally friendly carriers is just one aspect of ensuring sustainability in shipping operations. Equally important is assessing the sustainability practices of all suppliers involved in the supply chain. Beyond carriers, businesses should evaluate the sustainability commitments of raw material suppliers, manufacturers, and also look beyond warehouse suppliers.
Implementing cost-saving measures internally like an ‘essential print only’ policy and switching to low-energy light bulbs can yield both environmental and financial benefits. By aligning with suppliers committed to eco-friendliness, businesses not only contribute to sustainability but also potentially negotiate better pricing, easing the financial burden of green shipping initiatives.
Invest in cost-effective data analytics tools that enable you to track and analyse energy consumption, emissions, and other key sustainability metrics. By examining this data, you can pinpoint areas for enhancement, allowing for targeted cost reductions and operational streamlining.
In the journey towards sustainable shipping, importers and exporters can effectively balance short-term costs with long-term gains. By fostering collaboration, optimising operations, and leveraging data analytics, businesses can mitigate financial burdens while embracing eco-friendly practices, ensuring a resilient and competitive position in the global market.
Want to learn more? Reach out to our team of experts.
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]]>The post <strong>Navigating turbulent waters – understanding the surge in ocean freight rates</strong> appeared first on webfx.
]]>We consulted with our pricing analysis expert, Mathew Grundy, to help you understand the contributing factors behind these freight increases. Grundy asserts that the escalation is primarily due to shipping lines reallocating high-capacity vessels from the China-Australia trade lane to the USA and Mexico, responding to the heightened demand for Chinese imports in those regions. Consequently, vessels serving the Australian market have been downsized significantly, exacerbating supply issues for Australian importers.
Here’s what you need to know:
Capacity crunch in the Australian market:
The Australian market is grappling with severe capacity constraints. Larger vessels, typically servicing routes to Australian ports, are being redirected to more profitable trade lines, notably North and South America. These vessels, capable of accommodating up to 6000 containers, are being replaced by smaller counterparts, some with half the capacity at around 3000 containers. This reduction in capacity has created a bottleneck effect, intensifying demand for shipping services to Australia and propelling freight rates to levels not seen since the global pandemic of 2020-2021.
Impact of global trade dynamics:
The surge in demand for shipping services to Australia reflects broader shifts in global trade dynamics. Increased trade between China and South America, driven by robust demand, has resulted in insufficient shipping capacity, exacerbating the situation. Additionally, speculation surrounding the 2024 US presidential election, particularly former President Trump’s proposed tariff increases on Chinese goods, has injected uncertainty into global trade flows, further amplifying the influx of goods directed to the USA and thus increasing demand in that area.
The Red Sea crisis effect:
The Red Sea, which facilitates 30% of global container traffic, is grappling with an unprecedented shipping crisis. Escalating tensions in the region, particularly the Yemeni Civil War, piracy threats, and geopolitical rivalries, are wreaking havoc on maritime operations. This crucial waterway, connecting Europe, Asia, and Africa, is indispensable for global trade. However, concerns regarding safety, trade disruptions, and soaring insurance costs are casting a pall over its significance.
Following the conflict in the Gaza Strip, the Houthis, an Iranian-backed rebel group, initiated a series of drone and missile strikes toward Israel. While the majority of these attacks have been intercepted, the group has subsequently launched numerous missile and drone assaults targeting commercial vessels.
The conflict involving the Houthis has prompted extensive rerouting of ships, increased port fees, and congestion along traditional routes, disrupting the delicate balance of container supply and demand. Shipping giants are responding with price hikes, reflecting both heightened demand and operational challenges arising from the Red Sea crisis.
Outlook for Australian importers:
Australian importers are navigating a challenging landscape characterised by soaring freight rates and constrained shipping capacity. The timing of these price increases, occurring during what is typically a quieter period of the year, compounds the strain on businesses. With the possibility of further price hikes as the peak season approaches, Australian importers must prepare for continued challenges in securing affordable shipping options and managing supply chain disruptions.
The surge in ocean freight rates from China to Australian ports presents a significant hurdle for importers, with capacity constraints and global trade dynamics driving prices to unprecedented levels. Stockwells remains committed to supporting you in understanding the market dynamics, assisting businesses in navigating these turbulent waters, and implementing proactive measures and strategic planning to mitigate the impact of rising freight costs and ensure the smooth flow of goods into Australia.
Looking for support? Get in touch with us today.
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]]>The post Stockwell International Urgent News Alert 15 January 2024 appeared first on webfx.
]]>Please note congestion is causing severe delays to trans-shipments at the port of Singapore. Shipping lines have notified Stockwells that delays could be as long as 4 weeks at present with shipments from South-East Asia and Europe being most severely impacted.
Please note, any additional charges that incur as a result of this delay will not be the responsibility of Stockwell International.
Winter Storm Gerri is forecasted to produce severe conditions including heavy snow, strong winds, and flooding rains across the Midwest and Northeast segments of our network beginning this past Friday and continuing through early Saturday morning.
The most substantial impacts in the Midwest will likely be the combination of snow and wind which could lead to limited visibility, while the Northeast may experience a combination of snow and heavy rain – with flooding being a possibility.
Terminals will continue to operate under normal hours and Norfolk Southern will monitor the storm closely and take precautions to protect employees, track, and shipments as needed.
Stockwell International will continue to keep clients updated with any impacts this storm may have.
Read More | Freezing US winter storms threaten to break low-temperature records | US weather | The Guardian
The DP World Industrial Action is still on-going and is predicted to continue until the 22nd of January 2024. Below are the planned stoppages at the ports.
Brisbane
Quayside will stop between 07:00hrs and 15:00hrs from Monday 15th Jan 07:00hrs through to Monday 22nd Jan 07:00hrs. All receival and delivery will stop from Monday 15th Jan at 07:00hrs until Tuesday 16th Jan 07:00hrs. All receival and delivery will stop from Friday 19th Jan 07:00hrs through to Saturday 20th Jan 07:00hrs.
Sydney/Melbourne
Quayside will stop between 06:00hrs and 14:00hrs from Monday 15th Jan 06:00hrs through to Monday 22nd Jan 06:00hrs. All receival and delivery will stop from Monday 15th Jan 06:00hrs until Tuesday 16th Jan 06:00hrs. All receival and delivery will stop from Friday 19th Jan 06:00hrs through to Saturday 20th Jan 06:00hrs.
Fremantle
Quayside will stop between 06:00hrs and 14:00hrs from Monday 15th Jan 06:00hrs through to Monday 22nd Jan 06:00hrs. All receival and delivery will stop from Monday 15th Jan 06:00hrs until Tuesday 16th Jan 06:00hrs. All receival and delivery will stop from Friday 19th Jan 06:00hrs through to Saturday 20th Jan 06:00hrs.
Stockwell International will continue to keep clients up to date with any new information we receive.
It is no secret that China dominates in global manufacturing and export industries. As a result, much of the globe has come to rely heavily on this ‘World Factory’, which is why businesses worldwide need to take heed and prepare for the upcoming Chinese New Year holiday.
Chinese New Year will commence on February 10th, 2024, and end on February 17th, 2024. Nevertheless, many production sites will begin to decelerate and close down up to a month prior as this significant tradition is the only holiday where people get to spend extended time with their families.
As many ports, factories and production sites close, it can disrupt supply chains and impact the logistics of businesses. Preparing ahead of time will allow you to minimise the disruption of delays in your supply chain management system.
Challenges to expect:
Factory closures halt goods delivered from factories to ports, and ports will function at a lower capacity due to the seasonal shipping rush from Chinese New Year closures. Ocean freight services may be full or overbooked earlier than usual, causing challenges in securing container space as carriers will be in high demand. As a result, this will increase rates for freight and other delivery services in and out of China. What you can do to avoid stressing your supply chain: If you want to avoid disruptions in your supply chain, placing orders well before the Chinese New Year is best. By preparing in advance and being mindful of deadlines, you can ensure your freight delivery runs smoothly.
Check-in with your manufacturer:
Consult with your manufacturer and factories ahead of time on closures and final shipment dates to confirm that your supplies will reach you before the holiday. By booking your ocean freight at least three weeks in advance, you will have time to plan for any potential production delays and avoid disruptions in your supply chain.
Organise your inventory to overcome delays or shortages:
The ramifications of delays in shipping and manufacturing can be long-lasting. If you’re receiving shipments from China, it’s best to communicate closely with your supplier. The dates of these shipments can change in the weeks leading up to Chinese New Year, as factories are working at full capacity. Ensure you have alternatives, such as organising inventory to avoid shortages due to delayed or slow shipments.
With proper planning and communication, you can prepare your supply chain for the impacts of the Chinese New Year, ensuring that you can continue serving your customers during this time. By working with freight services providers, freight forwarders, port authorities and logistics experts, you can mitigate any potential disruptions and ensure seamless operations during this period of production closures.
Need to get your stock moving quickly? Talk to Stockwell about our air freight options. Our connections with major global airlines provide us with a wide range of freight forward solutions allowing us to move cargo fast and efficiently.
Get in touch with your logistics partner:
Having a trusted and reliable logistics partner with the expertise and resources to help clear any complications during the Chinese New Year period will not only ease seasonal shipping stress but ensure that your products reach you and your customers on time.
Get in touch with the Stockwell International team today, we can help with your freight booking needs, and the in-house booking office can arrange all your FCL movements in the lead up to and around Chinese New Year.
Contact [email protected] or head to our website www.stockwells.com.au to speak to our helpful team.
LCL Booking Fee
Effective 1st January,2024
LCL: $45
GRI
Effective January 1st 2024
North East Asia to Australia
Per TEU | $300
—————————————————————
RED SEA CHARGES
FCL Red Sea Surcharge
Effective Immediately
USD1550-1600 on everything from Europe (including cargo on the water).
LCL Red Sea Surcharge
Effective Immediately
$65 w/m
Operational Cost Recover Surcharge
*Import and Export Surcharges applicable for sailings effective 1st January, 8th January and 15th January 2024*
Effective 1 January 2024
Europe & Mediterranean to New Zealand
USD 35.00
New Zealand to Europe & Mediterranean
USD 40.00
Effective 8 January 2024
New Zealand to Europe & Mediterranean
USD 55.00
New Zealand to Middle East
USD 55.00
Effective 15 January 2024
New Zealand to Europe & Mediterranean
USD 75.00
Gulf of Aden/Red Sea Surcharge
Effective 1 January 2024
All Red Sea Ports** to New Zealand
USD 20.00
Effective 8 January 2024
(addition to OCR)
All Red Sea Ports** to New Zealand
USD 40.00
Effective1 January 2024
New Zealand to All Red Sea Ports**
USD 20.00
Effective 8 January 2024
(addition to OCR)
New Zealand to All Red Sea Ports**
USD 40.00
** Red Sea Ports Include: From/To Jeddah, Port of Neom, Djibouti, Aden. Hoedeidah, Port Sudan, Massawa, Berbera, Aqaba, Sokna
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Southbound Rate Restoration
BAF Charges
Low Sulphur Adjustment (LSA) – Effective January 1st, 2024
Asia to Australia
Southbound – USD
20’GP – 202
40’GP/HQ – 404
20’RF – 303
40’RQ – 606
Northbound- USD
20’GP – 95
40’GP/HQ – 190
20’RF – 143
40’RQ – 285
Asia to New Zealand
Southbound – USD
20’GP – 210
40’GP/HQ – 420
20’RF – 315
40’RQ – 630
Northbound- USD
20’GP – 156
40’GP/HQ – 312
20’RF – 234
40’RQ – 468
Australia to New Zealand
Southbound – USD
20’GP – 77
40’GP/HQ – 154
20’RF – 116
40’RQ – 231
Northbound- USD
20’GP – 164
40’GP/HQ – 328
20’RF – 246
40’RQ – 492
Panama Canal Low Water Surcharge (PLW)
Effective January 1, 2024
USD 255.00/20′ container
USD 300.00/40′ container
FURTHER UPDATED Transport Wharf Charges
Effective January 1st, 2024
Sydney
Wharf Booking Fee $90.00
Infrastructure Fee $235.00
Empty Container Park Fee $160.00
(Was previously known as Empty Booking Fee)
Weighbridge Fee $20.00
Sideloader Levy $120.00
Terminal Energy Surcharge $7.50
Melbourne
Wharf Booking Fee $90.00
Infrastructure Fee $235.00
Empty Container Park Fee $125.00
(Was previously known as Empty Booking Fee)
Weighbridge Fee $20.00
Sideloader Levy $120.00
Terminal Energy Surcharge $7.50
Brisbane
Wharf Booking Fee $90.00
Infrastructure Fee $235.00
Empty Container Park Fee $130.00
(Was previously known as Empty Booking Fee)
Weighbridge Fee $20.00
Sideloader Levy $120.00
Terminal Energy Surcharge $7.50
Adelaide
Wharf Booking Fee $85.00
Infrastructure Fee $195.00
Empty Container Park Fee $110.00
(Was previously known as Empty Booking Fee)
Weighbridge Fee $50.00
Sideloader Levy $120.00
Terminal Energy Surcharge $7.50
Fremantle
Wharf Booking Fee $110.00
Infrastructure Fee $95.00
Empty Container Park Fee $125
(Was previously known as Empty Booking Fee)
Weighbridge Fee $20.00
Sideloader Levy $120.00
Booking Admin Fee $30.00
Terminal Interface Fee $75.00
Terminal Energy Surcharge $7.50
Fuel Levy
Effective 1st November 2023
NSW/QLD/VIC – 26%
WA – 30%
SA – 32%
Empty Container De-Hire Timeframes
Please note: Empty container de-hire timeframes differ in each state.
NSW/QLD/WA || Require 72 hours notice to arrange pick-up of empty containers
VIC/SA || Require 48 hours notice to arrange pick-up of empty containers.
These timeframes do not include weekends or public holidays. Please note that notifications made after Midday are not considered ‘Same Day’. The following business day will be considered as day 1.
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]]>Delays and disruptions continue into 2024 with further Protection Industrial Action planned for the first half of January.
The industrial action at DP World has transcended the company and the Maritime Union of Australia, sending shockwaves through countless supply chains. A staggering backlog of over 50,000 containers and delays ranging from 15 to 20 days have been reverberating across the logistics landscape during the busiest period of the 2023 year.
Compounding these challenges, a cyber-attack in early November 2023 paralysed DP World’s operations, leading to a standstill and fuelling fears of price hikes due to shortages in essential goods. This cyber-attack has compounded the impact of ongoing industrial action, creating a perfect storm for the ports operator.
Shipping Australia, a peak shipping body, estimates that the combined harm caused by the cyber-attack and ongoing industrial action is draining approximately $20 million from the wider economy every day.
For clients reliant on timely freight movements, industrial action poses a severe threat to their supply chains. The potential for flow-on delay effects looms large, amplifying challenges for businesses during a peak period of prosperity. The disruptions extend beyond the immediate aftermath of the strikes, creating a web of complications that could resonate through the entire supply chain, impacting timelines and commitments.
Adding to the complexity, DP World’s Brisbane Terminal has experienced additional challenges through December of 2023 and into the new year. Notified Protected Industrial Actions coincided with equipment and IT outages, causing significant delays and disruptions for container transport operators.
Equipment outages and maintenance of Automated Stacking Cranes (ASCs) during the Christmas-New Year period, along with a systems outage on December 29, have further strained operations. Truck turnaround times at DP World Brisbane have exceeded 5 hours, leading transport operators to incur additional labour expenses over the long weekend.
In light of the evolving situation, Stockwell understands the concerns and challenges faced by its clients. As a trusted partner in logistics, Stockwell is committed to providing updates and guidance to help clients navigate the complexities arising from DP World’s industrial setbacks.
Clients apprehensive about potential delays affecting their freight are encouraged to reach out to their Key Account Manager. We are ready to assist and address any queries or concerns related to your freight forwarding needs.
As we move into 2024, the operational conditions at DP World Terminals, especially in Brisbane, remain a focal point, and we are dedicated to keeping you informed and supported throughout these dynamic circumstances.
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]]>The post An Industry Overview From Stockwell International Director appeared first on webfx.
]]>All of this happening at a time when the global economy is meant to be quite flat, the WTO announced in late October that it had halved its forecast for growth in global trade due to factors including high-interest rates, persistent inflation, a slowing CN economy and the continued War in Ukraine and Israel. Any ongoing escalation in the wider regions of Ukraine and Israel will have significant impacts on trade, the Red Sea situation is one of many impacts that we are likely to see over the next year.
The lesson from all of this if we didn’t already learn it from COVID is that JIT shipping while seeming like an efficient strategy goes out the window with chaos, and given chaos is now a norm here, forward planning that is making room for flexibility and adaptation is a way more sensible approach in the current geopolitical climate.
Supply chains need to be robust in the way they deal with conflict, international freight price hikes because of conflicts, delays, congestion and more delays including sudden weather events. Educating the end user is even more important as it is their wrath, we all bear in times like this.
You may think it impossible to plan for these events, and whilst you’d be spot on if we were to try and pin down a specific date for each occurrence, you would be wrong in thinking you could not build the impact of these events into your supply chains. It is not enough to just simply build in CPI to pricing, it needs to reflect the origin it comes from and all the challenges those origins present. Timeframes for delivery should reflect the same the expectation that a Direct sailing arrives within a certain timeframe has pretty much gone out the window, so a more flexible approach is required.
Quick Wrap up of other regions;
Europe; Ukraine and Israel Wars, Red Sea situation which, in a double blow to importers, will increase transit times and freight costs as shipping lines route all vessels away from the Suez Canal, Introduction of CO2 emissions surcharge for all vessels calling EU Ports.
North Asia; GRI’s have been announced for January for the CNY but there is so much backlog from the DP World MUA industrial action that schedules are being disrupted. The situation at the terminals is the only thing supporting the GRI currently.
South East Asia; GRI’s have been announced on the SEA trade lane but it does remain quite stable so this may affect the quantum advertised.
North America; The Panama Canal is the driest it has been in 73 years and as a result movement through the canals is expensive. There are very limited slots available, so some carriers are choosing alternative routes through the Suez Canal, making transit times blow out more than usual. There have also been anti-mining protests affecting operations. The Panama Canal Authority introduced Reserve Slots for Nov to Feb, which severely affected the number of vessels permitted to transit. These slots are being auctioned and the winners are generally the LNG or LPG vessels where carriers are prepared to pay up to $1m for a slot.
With all of this going on carriers are switching the destination port to the West Coast as their preference hub and we all know that means congestion.
New Zealand: The fuel subsidy that was supporting the shipping sector has been revoked as of 1 January 24 so the knock-on effect with increases to NZ Fuel Surcharge for all imports and exports.
DP World Cyber Attack – Taught us all to be more vigilant in protecting ourselves against cyber threats. If DP World can be affected by the robust cyber security they have in place, we are all open to attack. Consequently, we immediately had an audit of our own protocols and are tightening up our processes to ensure we are protected above and beyond what is required.
In summary, all we can do as partners as we ride the waves together, is know that we are always here to assist in whatever you may need, be it data, analysis, coaching etc, we are open to understanding what you need and helping where possible. The world is a crazy place and the supply chain is like trying to tame chaos itself, and to tame chaos we need business friends and business partners and a lot of planning.
So planning and taming chaos is our theme for 2024! Welcome aboard!
Angela Gambell
Director
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