Good Day All,
Time for OSCLs monthly blog/newsletter.
Spring is here, and peak season is now upon us. It's full steam ahead to Christmas and the crazy season.
Let's get straight into a market summary.
Chinese Market:
OSCL has received some very competitive rates as we head into September, considering the market and increased volumes heading into peak season, with locked-in rates until 30/09/2022.
One of our agents has launched an LCL Specialist Class 9 Dangerous Goods Console service. Shipping from Dalian, Foshan, Fuzhou, Guangzhou, Hong Kong, Jiangmen, Nansha, Ningbo, Qingdao, Shanghai, Shantou, Shenzhen, Shunde, Tianjin/Xingang, Xiamen, Xiaolan, Zhongshan, Zhuhai. Examples of Class 9 DGs are zinc oxide, lithium-ion batteries, genetically modified organisms, airbag modules, and motor engines. Please get in touch if you are considering importing dangerous goods product/s.
There have been reports of vessel departure delays due to military exercises in the South and East China Seas. It's estimated that 7-10% of containers are currently being rolled in Shanghai, Ningbo, and Shenzhen. The weather has also been adding to the extensive delays as a large Typhoon is presently hitting the Shanghai region.
ZIM line has re-allocated two vessels to support the Northern China market, servicing the ex-Dalian to Australia market. This will reduce pressure on this lane which is constantly under strain, and free up much-needed space allocations.
Unfortunately the COVID lockdowns have returned to some Chinese Ports. Ports affected as of today are Tianjin, Shenzhen, and Dalian. There have also been reports of delays in manufacturing in Shanghai-based factories due to power rationing with the heat wave hitting hard.
USA Market:
The number of vessels anchored off Houston and Savannah has significantly increased as importers utilize these ports as alternatives to the West Coast ports such as Long Beach. We can expect to start seeing congestion-related delays. The congestion has carriers canceling sailings from China to assist with easing the burden on US ports.
These congestion issues are hiding the statics, indicating that trade between China and the US is actually down, with the volume of imports from China at the lowest its been in two years. “We’re seeing an 18.5% drop, from 70 down to 57 vessels waiting for berths at East Coast ports,” explained Josh Brazil, VP Supply Chain Insights for Project44.
Due to industrial action and external pressures, the US is experiencing increased import congestion from two main trade lanes, the European lane (mainly Germany & England), with predictions that these lanes will be experiencing backlogs into 2023. As well as the backlog of containers from the delayed departures of Chinese vessels.
Australian Market:
The 2022-23 Brown Marmorated Stink Bug (BMSB) Risk Season is upon us. If you are unaware of what BMSB is and if it affects your products, please get in touch so that we can assist with an assessment and advise on the Quarantine Requirements. It is also important to note the extensive delays for treatment and document processing for consignments that fall under the BMSB requirements.
As we move into peak season, quarantine processing will continue to cause significant issues and extra costs for importers and agents. Last month, some agents reported that document assessments took up to a week in some cases. This will only worsen as the department is put under further pressure. Please encourage suppliers to ensure their documents are compliant and that documents are being received as early as possible. OSCL will do what we can to assist your suppliers and ensure the formal entries are being lodged as early as possible.
Infrastructure surcharges are now in place by most carriers as we head into peak season. With the increase in inflation and cost pressures, we can also expect to see Container VBS and Port Service Fees increase in the last quarter of 2022.
On the 19th of August, strikes and indefinite work bans commenced at Darwin port due to unions suspecting the port of trying to cost save by cutting workers' wages. Let's hope this does not have a flow on effect to other ports, as strikes in Melbourne, Brisbane and Sydney last year caused extensive delays in vessel offloads.
News Highlights:
US shipper complaint filed with FMC against Yang Ming settled out of court:
Very Interesting article in regards to price gauging by the shipping lines. I love this quote, "...taken advantage of price inflation in container shipping during the COVID-19 pandemic...". It would have been great to have read the settlement to see what precedent could have been used in our courts.
BMSB 2022 / 2023 Season Information:
Changes to Part 7 of the Customs (International Obligations) Regulation 2015. Have your say and contribute to ongoing reforms regarding duty drawbacks:
OSCL Internal News:
I will have limited access to the phone over the next fortnight, between the dates of 05/09 to the 17/09. I have been summoned for jury duty. Please send Steve or myself a text for anything urgent, and I will respond as soon as possible. Please be assured that we will continue monitoring and handling shipments as usual over this period.
OSCL had the incredible opportunity to sponsor a child currently in hospital to attend the 2022 Canberra Circus Quirkus Variety Show. We really enjoy giving back to our community; this would not be possible without your support.
As we head into peak season, we would like to ask that for all new shipments, documents be provided to us as early as possible. This allows us to assess documents, advise of any corrections required, and ensure the customs and quarantine lodgments are finalized with plenty of time for assessments by the various departments. Late lodgments often result in extensive delays and additional costs that could have been avoided.
A big welcome to our new clients that have come on board in August; we look forward to assisting with your supply chain needs.
That's a wrap.
Once again, thank you for your continued support.
Wishing you all a prosperous month.
Bianca & Steve
