Whilst reflecting on my Telstra Business Women’s Finalist Award recently I found the following written in my original submission;
“ In 2008, Australian export/import volumes dropped, competition became cut-throat and margins non-existent. We were fighting to retain business. Major international players launched a pricing assault, approaching many of our long-standing clients with pricing that could not be ignored. We needed to act fast…”
Wow and I thought the GFC and its fall out was bad…….fast forward 13 years, introduce a pandemic, federal monetary stimulus, port shut downs, equipment shortages, and a massive imbalance against supply and demand and here we are.
Pricing has surpassed any other in our history and with these increases set to continue we may soon start to see the devastating impacts on small to medium enterprise. No longer will they be able to sustain the freight costs on low value imports, their businesses will have to pass on the increases directly to the consumers, close or temporarily halt imports, and that will mean job losses.
As the pressure of freight costs mean fewer items may or may take longer to ship, Australian consumers will also see shortages in all aspects of commodities, not to mention increases on all imported products. Competition will land amongst the bigger players who may be able to absorb costs, leaving small to mediums struggling.
Our precious Exports market does not fare any better with fresh produce and products being destroyed whilst waiting to be exported due to no space and no equipment. Exports in general almost at a standstill.
It is frustrating for everyone and on the front line of freight and space negotiations we feel it harder, my 108-page email thread shows how much work goes into simply finding space for 5 containers, let alone 100’s.
If you or your business need to discuss your freight needs including freight planning, any issues or simply want another point of view on your supply chain, please do not hesitate to contact us at Stockwells.