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Navigating DP World’s Industrial Challenges and the Impact on Supply Chains

As DP World grapples with an ongoing industrial dispute and the aftermath of a cyber-attack, the complexities for supply chains continue to escalate. Beyond the ports, clients and businesses navigating freight through DP World’s terminals are facing unprecedented challenges, especially given the peak Christmas season thatโ€™s just passed and ongoing issues at DP Worldโ€™s Brisbane Port.

Delays and Disruptions

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.

Client Concerns and Flow-On Effects

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.

Brisbane Terminal Update (January 2024)

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.

Stockwell’s Client Guidance

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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