Christmas alert: Australian strike will worsen shipping problems

New Zealand container importers and exporters are warned they can expect shipping delays and cost overruns ahead of Christmas due to industrial crackdowns at Australian ports and coal power shortages Chinese.

Shipping & Delivery
The Federation of Customs Brokers and Freight Forwarders said costs are likely to rise as container companies collect congestion charges.

Maersk, the world’s largest container shipping company, has told customers it expects an average delay of 5-6 days for ships calling at Melbourne only.

Maersk says its New Zealand service is affected by OC1, which connects New Zealand to the US east coast and Latin America via the ships Safmarine Bayette, Spirit of Sydney, Oluf Maersk and Spirit of Auckland.

“We will continue to review the impact on our ocean network on a daily basis to implement actions to minimize the impact on our schedules and our customers’ supply chains,” the carrier said.

Reports of a nationwide strike at the main Australian container terminals operated by Patrick, which handle more than 40% of all container shipments in Australia, add to the coal-fired electricity crisis in China, which affects Chinese manufacturers and perhaps the creation of new ones will affect the import flow. zealand.

New Zealand’s own maritime union, which is not and does not expect to be involved, says the impact on the already “breaking point” supply chain system will be significant, due to continued action planned at container terminals in the major Australian port.

NZ Craig Harrison, National Secretary of the Maritime Union, said a delay in shipping operations to Australia “would shock the system” here, and he expected container shipping companies to pull ships out. some roads in response.

Harrison said New Zealand shippers should seek reassurance from their shipping lines of the potential impact.

CBAFF Managing Director Rosemary Dawson predicted more delays in arriving ships in New Zealand, port calls and possible shipping line cancellations to add overcrowding charges to already rising container shipping costs .

A spokesperson for the country’s largest port, the Port of Tauranga, said most import services to New Zealand pass through Australia from Asia, so industrial action would result in additional delays.

“Any delay in other ports in Asia, Australia or New Zealand inevitably extends to Tauranga.”

Don Brad, managing director of Mainfreight, a New Zealand-based global logistics company, expects the combined impact of Patrick Terminal’s collective action and China’s electricity problem to translate into a increased congestion in the New Zealand supply chain and a potential delay for importers.

China’s energy problem is the result of coal shortages, stricter emissions standards and strong demand from Chinese manufacturers, which have pushed coal prices to record highs and increased limits on the use of the gasoline. coal.

Brad said the number of ships waiting offshore at major overseas ports doubled this week, from 340 last week to 609.

Such delays have also resulted in container closures, exacerbating global shortages and causing operational problems after ships for road and rail transport, as the UK is currently experiencing.

“All of our advice is that people should be thinking ‘just in case’ and not ‘just in time’.

By that, he meant that before Covid, shippers could count on shipping schedules to run almost like clockwork and place product orders accordingly.

The move to “just in case” meant shippers had to order and plan for disruptions to shipping schedules.

“But there is no one answer and it is not the same answer for everyone.”

Brad said shippers have to rely on their service providers in the current situation, which he didn’t expect to open for some time.

“Make sure they work for you and find the best options for you. “

Mainfreight employees have worked hard to create and find transportation options for their customers with air freight and shipping. For example, he worked with bulk shipping companies such as New Zealand kiwifruit export ship operators to bring back imports.

“It’s about thinking outside the box. “

In the meantime, there is good news for shippers in Auckland’s ports.

The number of red colored blocks in its operational updates, indicating heavy pressure on its services, has dropped significantly as the port has suspended operational operations.

However, the latest update shows that 111% of the terminal is in use today and the shipyard continues to have heavily loaded empty import and export volumes. The average stay of containers at the terminal in September so far was 2.7 days for imports and 4.9 days for exports.

The port also warned of delays due to the strike and COVID-related restrictions at some Australian ports.