While La Niña can have a significant impact on global weather patterns, it is particularly important for businesses that rely on shipping to move goods around the world. Heavy rains and floods can result in port closures, which can cause delays in shipments. Droughts can also lead to disruptions in freight forwarding, as roads and railways may be damaged by the lack of rain.

Early Warning Signs

Locally in Australia, the Bureau of Meteorology has already indicated there is at least a 70% likelihood of La Niña weather patterns forming. This is three times the usual chance, indicating a high probability of “above-average rainfall for northern and eastern Australia during spring and summer”. The likelihood of a La Niña event is currently at its highest since March 2010.

Potential Impacts of La Niña

A La Niña event can have a significant impact on global supply chains. The increased rainfall and resulting floods can damage infrastructure, disrupt transportation, and delay or halt production.

In 2010, the last major La Niña event, Australia experienced its wettest two-year period on record. This led to widespread flooding and billions of dollars in damage to infrastructure. 2022 also marks the third Spring season in a row where Australia has faced unusually high rainfall, and if the last 2 seasons are any indication of potential impacts, then local shipping and deliveries on the busiest freight routes may take at least 9-10% longer due to La Niña weather events.

Not only will these potential shipping delays test consumer tolerance, but they will also be added pressure on businesses that are relying on supply chains that are still recovering from the global COVID-19 pandemic and widespread skilled staff shortages.

Getting Prepared

There are a few things businesses can do to prepare for the possibility of a La Niña event:

1. Review your supply chain. Take a close look at your supply chain to identify potential vulnerabilities. If possible, consider diversifying your suppliers or using multiple transportation methods to reduce the risk of delays.
2. Monitor weather conditions. Stay up to date on the latest weather forecasts and advisories. This will help you make informed decisions about when and how to ship goods for local destinations.
3. Plan for disruptions. Build some flexibility into your plans in case of disruptions. Have a contingency plan in place so you can continue operations even if your shipments are delayed. Securing additional stock early can potentially avoid stocking issues and lost revenue.
4. Communicate with your customers. Keep your customers informed of any potential delays in shipments. This will help manage their expectations and avoid any misunderstandings, particularly as many businesses and consumers work toward the Christmas deadline.

By being aware of the potential impacts of a La Niña event and taking steps to prepare, businesses can minimize the disruptions to their supply chains.

Stockwell International is experienced at navigating potentially disruptive weather events like La Niña, and have a range of strategies to reduce the impact delays and congestion may have on your business. Get in touch with our team today to discuss our full range of services to support you.

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We have had relative stability over the last few months, the first in a very long time. I believe this relative stability is short lived and we should buckle back down for some more rate turbulence. 

Shanghai has fully re-opened and there is now a backlog to clear. Currently there are 260,000 TEU to be cleared out just as peak season starts. This will more notably effect Europe and the USA. 

USA continue to have chassis shortages, dwell delays and like all of us, driver, and staff shortages. Shipping lines have notified more LA omissions so more delays will be experienced. Europe are struggling with capacity as they hold containers bound for Russia due to the conflict in Ukraine. Along with the current strike action in UK it seems no port is safe from its own form of pain.

As an industry we are completely exhausted and over the short-term rate validities and the disappearance of long-term contracts. Online portals are hard work and have delivered nothing but lower levels of service and WAY more issues. Schedules are not reliable, and delays and changes are adding to the additional work operators already have.

Additionally, landside charges are also increasing regularly, empty parks remain congested and continue to experience issues and of course let’s not forget fuel increases!!

Stockwell’s have worked hard to try and put contingencies in place for all supply chain pain points. In response to less available contracts and less space we opened our booking office in April. Just this week we have expanded with new booking operations staff. This area of our business just focuses on space and rates. In just a short time we have seen a great amount of success with our booking office for clients. Our team plans, finds and secures the best and most suitable booking slot for our clients making sure it remains competitive. To get a container on a vessel is taking triple the amount of work (and time) so we will be separating freight bookings and customer service to ensure that they have time to continue to offer the best possible customer service to our clients. Our customers won’t notice the difference as our customer service team always remain their point of contact.

In summary, it’s been a year!! Its exhausting, challenging, frustrating and at times heart wrenching.   Shipping lines continue to have a monopoly on our market, can do what they want, when they want, without recourse or justification and forwarders take on all the fallout and additional charges.

It is good to see customers educating themselves to all of the issues and forming stronger partnerships with forwarders rather than blaming them, working transparently and closely ensures both parties needs are met and there is an understanding on the common goals.  

In closing don’t forget to start your Christmas ordering now, just in time shipping is for dummies and is always late and as we get closer to Christmas freight prices will increase.

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