This notice will cover Empty Container Parks, Freight Rates & Space, Industrial Action & Schedule Disruptions all of which affect different parts of your supply chain.
Empty Container Parks
Empty container management in Sydney has reached crisis point. Many empty container parks are at capacity, and several closed their doors yesterday to import de-hires of certain equipment types due to operational safety concerns.
Weather disruptions, berth and container terminal congestion, and stevedore industrial disputation are all major contributing factors. In addition to delays at the end of import container’s journeys from unpack to de-hire.
What does this mean for me?
KTL Australia will be monitoring the situation daily to provide clients with up to date feedback on empty park management, empty collections and de-hire of containers.
Freight Rates & Space
As noted above, Australian ports are not only ones that are seeing shortages of equipment availability. Across the globe, with a particular focus on North & South East Asia the demand for equipment and space is immense.
This equipment shortage has added further difficulties to a trade lane already heavily impacted by a shortage of vessel space. Further to this, we are seeing delays at transhipment ports and rolled bookings.
As a result of shortage of space, we have been advised by carriers to expect a General Rate Increase (GRI) across the board from 1st October 2020. Our team is currently negotiating with carriers regarding this GRI and will advise the outcome once known.
What does this mean for me?
KTL’s offices & trusted agents will do everything possible to minimize the impact of these equipment shortages, however, please be mindful of the above when discussing your shipments with your suppliers.
Industrial Action & Schedule Disruptions
Industrial Action in Melbourne & Sydney in the past weeks are also contributing to a backlog of containers and vessel berthing delays. In some cases, vessels are omitting ports because of the significant delays at the destined port.
As a result of schedule disruptions, we have received a notice from MSC notifying us that they seek to apply a ‘Sydney Congestion Surcharge’ for vessels arriving in Sydney after 14th September 2020 at the rate of USD 300/TEU. ANL / CMA CGM have also distributed a notice for an Emergency Port Congestion Surcharge at USD 285/TEU for vessels arriving in Sydney after 17th September 2020.
Following the distribution of these notices, key industry bodies have advocated for the revision of this fee in the hopes that more carriers will not follow suit in implementing such a charge.
KTL Australia are keeping in constant contact with carriers to understand any delays and omissions that will be applied.
Where possible, when quoting services we will offer a direct and transhipment option to provide a range of solutions suited to your requirements.
Please keep in mind that although the above factors are out of our control, our team will do all we can to provide the standard of service that you expect from us.