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  • Bianca Flint

May-hem in the Supply Chain Market

Hi All,


Welcome back to OSCL's monthly blog.


I just wanted to thank everyone who donated to OSCL's fundraising efforts for the MS 50KM in May. We raised a total of $253.00, which is fantastic! Massive shout out to Steve, who ran almost every day, managing to run over 93Kms this month. What a tremendous achievement. As a team, we have run over 120 Kms in May.


In support of World MS Day today, here are a few photos from our hike this past weekend, getting those KMs in.


Welcome to our new clients that have come on board in May; we look forward to being of assistance being your one-stop-shop for all things logistics, supply chain, and customs.


Let's get stuck into the nitty-gritty. The mess that is the current supply chain market.

 

State of Global Supply Chain Market:


The market in China is highly congested, and we see issues on our home soil with supply chain inflation, rises in port surcharges, and problems with container detention as shipping lines are not being flexible with free days. There is ongoing support and pressure from many larger firms and unions, such as the Free Trade Alliance, being placed on the government to impose a regulatory body to monitor and regulate the insane onshore charges imposed by the ports and shipping lines; however, there is yet to be any real traction. It is estimated that Australian Importers and Exporters are paying over 1 Billion Dollars in additional fees.


Please ensure you advise your clients of adequate timeframes. We appreciate your understanding as we fight the battle of the constant booking rolling's, vessel omissions, and change of vessel/container details. We will continue to push the shipping lines; however, most situations are not within our control, and we roll with the punches. OSCL strives to keep its clients informed of the ever-changing conditions and aims to ensure we communicate at each step through the supply chain process.


Additionally, we are seeing an increase in container detention charges. Please remind your suppliers if they are booking full-container shipping movements on your behalf that they are requesting a minimum of 14 days of detention free time. If the shipping line is unwilling to negotiate, which is currently the case for many lines, we recommend that you budget for a few days of detention. Feel free to email us to confirm how much detention free time you have for your specific shipment.


Let's turn our attention to Russia and how the war is affecting the supply chain here in Australia and globally. The significant commodities that have been impacted are auto parts, oil, and grain. Oil impacts every aspect of trade and the current way of living. The spike in the oil market had a rolling effect on inflation and the cost of all facets of the supply chain and manufacturing sectors. We are experiencing higher fuel costs and surcharges, which drives the shipping price and all associated importation costs up.


Looking at the local Australian market, we are seeing lots of action from our unions. FTA Alliance has been pushing for more reforms and regulations regarding unreasonable administration of container detention fees, constant port service fee price hikes, and the cowboy behavior of the shipping lines. It will take government intervention to see any change, however,, after the last two years of supply chain madness change is inevitable. Stay tuned; we will be monitoring the updates closely and will inform you accordingly.

 

News Highlights:


- More blank sailings check rates decline, but eyes are on the carriers - The Loadstar

State of the Chinese market and current sailing data:


https://theloadstar.com/more-blank-sailings-check-rates-decline-but-eyes-are-on-the-carriers/


- Significant developments in the Australian free-trade agenda - Andrew Hudson

Fantastic read regarding Free Trade Agreement updates:


https://www.rigbycooke.com.au/significant-developments-in-the-australian-free-trade-agenda/?utm_term=Read%20more%20%2526gt%3B%2526gt%3B&utm_campaign=Customs%20%2526%20Trade%3A%20Significant%20developments%20in%20the%20Australian%20free-trade%20agenda&utm_content=email&utm_source=Act-On+Software&utm_medium=email&cm_mmc=Act-On%20Software-_-email-_-Customs%20%2526%20Trade%3A%20Significant%20developments%20in%20the%20Australian%20free-trade%20agenda-_-Read%20more%20%2526gt%3B%2526gt%3B


- Supply chain delays and steel costs are part of ‘perfect storm’ stalling renewable energy growth | Renewable energy | The Guardian


https://www.theguardian.com/environment/2022/may/24/supply-chain-delays-and-steel-costs-are-part-of-perfect-storm-stalling-renewable-energy-growth


- Paul Zalai (Director FTA, Secretariat APSA) was interviewed by Sky News (Business Week-end, Sunday 15 May 2022)) explaining the reality of $1B in container detention and terminal access costs adding to inflationary pressures. Interview starts at 22:28 and concludes 24.58.


https://www.skynews.com.au/opinion/ross-greenwood/business-weekend-sunday-15-may/video/75cecd78c4621ddaa7890d4c2b941e57

 

OSCL Internal Updates:


We are currently working on ensuring all our clients have a client portal login. If you have yet to receive an email from us containing your login details, please get in touch with us. There will be an email providing step-by-step instructions to get your account set up, as well as an email from our software provider that will state you have forgotten your password and prompt you to request a reset. This system will allow you to review all your bookings and see any notes from us regarding where we are up to with your shipment. This is a new software platform for us, and there may be a few hiccups. We appreciate your understanding and patience as we work through the teething of a new system.


Did you know we are on the Socials? We have an OSCL page on both Facebook and Instagram, where we post multiple times a week discussing general updates, industry facts, and handy tips.


You can find us here:


Instagram - https://www.instagram.com/onesource_customs/

Facebook - https://www.facebook.com/OneSource-Customs-Logistics-100296735939994

 

Thank you again for the continued support.

We hope you all have a great June.

Please don't hesitate to get in touch with us if we can be of any assistance.



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