Supply Chain Spotlight: September
Good Afternoon All,
Welcome back to the blog.
What a fantastic month it's been! We are truly into the swing of peak season.
Grab a cuppa and let's get straight into it.
Blank sailings are again causing issues for the AU-CN trade lane; however, this does guarantee fully booked vessels for the shipping lines. The GRI for September was less aggressive than anticipated due to a slighter softer market, saying that volumes are expected to meet the same numbers as in 2022 as we head into the Christmas stock season. PIL, MSK, and ANL have all issued GRI notices for the second week of September, so it's safe to expect to see small continual freight rate increases as we head into the last few months of 2023.
ZIM Line & MSC have officially announced their brand new ZAX/Panda service which starts in October. This partnership will strengthen market share and provide 7 designated vessels to service the trade lane. The expected rotation will be: Nansha – Hong Kong – Yantian – Brisbane (1st call) – Melbourne – Sydney – Brisbane (2nd call) – Busan – Qingdao – Shanghai – Ningbo – Nansha – Hong Kong – Yantian. You can read the official announcement here: MSC Enhances Panda Service Through New VSA | MSC.
China to Europe rail traffic is up by 27% percent in 2023, which is a good indication of a healthier market. There is a new international freight yard at Manzhouli inland port on the Chinese-Russian border, doubling the daily container handling capacity. The Chinese government has implemented various initiatives to incentivize rail-based container movements.
We are expecting to see delays with cargo out of China this week. Typhoon Saola did hit land over the weekend in Guangdong. As predicted, it has left a trail of destruction to the local infrastructure and has affected Shenzhen and Hong Kong. The extent of port closures and vessel delays is still being updated. Each consignment is currently being monitored closely, and you will be contacted directly with updated sailing information if your shipment/s have been affected.
Track Saola here: https://zoom.earth/storms/saola-2023/
Photo Source: The Guardian - Credits AP
Golden Week National Holidays commence 01/10/23 to 07/10/23. Please ensure all bookings are in before our agents and your suppliers close for the celebrations.
The timeframes for quarantine inspections and document processing have blown out substantially which triggered our industry advocacy body to write to Senator Hon Murray Watt. Overtime options for processing are available at the discretionary approval of the department. We can't stress how important it is to encourage your suppliers to get documents to us early. It's peak season, and on average 6000 shipments sit in a daily queue for an assessing officer to review the commercial paperwork. The earlier we have valid commercial documents, the more efficiently we can arrange customs and quarantine processes.
It's peak season, and we have seen a few notices come through in regard to domestic pricing increases; these include domestic cartage, fuel surcharges, terminal fees, handling etc. We have also seen an increase in demurrage (waiting time at the ports and terminals); this is not an uncommon occurrence as the volumes increase.
BMSB season is now in full swing. This is a good reminder that if you import high-risk commodities from a BMSB target country, to refresh on the treatment requirements.
The latest can be found on the department's website; alternatively, please feel free to call me to discuss further.
Seasonal measures for Brown marmorated stink bug (BMSB) 23/24: https://www.agriculture.gov.au/biosecurity-trade/import/before/brown-marmorated-stink-bugs
Not much movement in the US, Canada, and India markets. I'll cover them next month once we see updated volume and commercial updates being released.
- Letter to Minister Watt - Import Cost Recovery - Paul Zalai - Freight & Trade Alliance - https://ftalliance.com.au/data/news_attachments/letter%20to%20minister%20watt%20-%20costs%20on%20importers.pdf
- Rising diesel costs affect transport supply chain for regional businesses, ABC News - https://www.msn.com/en-au/money/markets/rising-diesel-costs-affect-transport-supply-chain-for-regional-businesses/ar-AA1fXj01
- MUA raises the alarm on shipping cartels at Australian ports - FullyLoaded -
- ABF releases new guidance on supply chain security - Shipping Australia -
- Panama Canal delays set to affect Christmas shoppers - FullyLoaded -https://www.fullyloaded.com.au/logistics-news/2308/panama-canal-delays-set-to-affect-christmas-shoppers
- Hume Highway crash in Chiltern, Victoria: Four people killed in smash with B-double truck are identified as two couples aged in their seventies - Charlotte Karp - Daily Mail Australia -
- World Container Index - 31 Aug, Drewry:
OSCL Updates & News:
In line with legislative updates that go live in November 2023, our lawyer has advised us of an update to our trading terms & conditions and letter of authority. We are currently in the process of having our insurance underwriter assess these updated documents and will roll them out over the coming weeks.
We are applying for our first business award - The Canberra Woman in Business Micro-Business Award! It's been a fantastic journey as we head towards our second birthday and into our third year of trading. The last few weeks have been amazing, and I took the time to reflect on how far we have come, and I know I sound like a broken record, however; I am immensely grateful to our amazing client roster and the continued support.
Amongst the chaos that is life and small business we are getting out and about. We recently attended a few networking events with the Canberra Business Chamber and Canberra Woman in Business. Our next event on the calendar will be Business after Business at Canberra Airport. Follow us on our socials for all the fun updates and our handy supply chain tips.
That's a wrap. Hope all the dad's had a fantastic Father's Day yesterday.
Wishing everyone a prosperous September.
Steve & Bianca