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Continuous Chaos!




Welcome to April's OSCL Blog.


The title is very fitting this month as it describes what I feel is the current state of the supply chain and the local / global market.


Lets get stuck straight in.

 

State of the Chinese Market:


Shanghai port is currently seeing a massive delay and flow on effect from the current COVID lockdown. There are roughly 400 cargo vessels currently waiting in the waters off Shanghai. Out of all of the Shanghai volume, roughly 30% volume of the consignments get to ship out of Shanghai, whilst an estimated 30% goes to Ningbo and the feeder ports surrounding Shanghai. This has resulted in tremendous pressure for the Australian-Chinese shipping lane and we are seeing the level of congestion and backlog levels increase around 38%.


Due to such a strong demand there is a high chance we will see a GRI increase to most lanes out of China in the second half of May once the lockdowns have ceased. Its being estimated the GRI will be between USD500.00/USD1000.00 PER 20GP/40GP.


It would irresponsible of us not to advise of the storm we feel is coming. Frankly, available volume (space on vessels) heading into peak season is going to be madness. There is already substantial strain on the market and competition will be tough. We recommend you advise your clients waiting on orders of potentially up to 8 week delays to what we normally experience.


Golden Holiday is between 30th April until 04th May 2022. We can expect to see two weeks of non-activity from suppliers and delays on dispatch of supplier orders.


Stunning Pic of Shanghai Port:

 

OSCL Internal News:


We start our MS 50Kms in May journey on Sunday.

Please consider donating to our fundraising efforts as we are very close to reaching our fundraising goal for 2022.

Head on over to our support page:

 

New Service Offerings:


One of our trusted wholesale agents has launched the below new LCL service into Fremantle. The Service starts from May and services from Hong Kong, Shenzhen, Xiamen, Ningbo, Shanghai, Qingdao &Tianjin.


We have an awesome new provider on board in Fremantle that can handle standard FCL deliveries as well as project cargo unpacks and deliveries.


Did you know that OSCL offers a freight comparison service? We assist you to find the most competitive rates utilizing our network of trusted carriers. Using an experience agent can be beneficial, as we are able to problem solve any issues that arise and develop a supply chain solution that works for your company.

 

Important Updates & News Highlights:


- The Goods Compliance Update has been released by Australian Border Force for Autumn 2022 - this is a good read identifying all things compliance wise.


-Fantastic article by Andrew Hudson on the current Sanctions against Russia.


- Further Increases to Full Container Terminal Charges on the horizon despite a plea from Industry and Government by key stakeholders.


- COVID lockdowns and analysis on how its affecting Chinese ports.

 

Hope you all have a fantastic May and we look forward to being of service and assistance as we head into peak season.


All the best,

Bianca & Steve



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