The global shipping crisis is still making our lives hard - August 2021 Update



The global shipping crisis is still making our lives hard - August 2021 Update

Published 18 Aug 2021

Are we there yet? Apparently not, some experts are stating another 12 months of this wonderful situation. We have been on a bit of a reading adventure to research the drivers behind the ongoing issues we’re experiencing.

It all really boils down to those people in the USA who just won’t stop buying things from Asia. Even though the rates we’re seeing between China and Australia are the highest they have ever been, they are nowhere near the rates that people are paying on the transpacific trade. We’ve heard of some spot rates now as high as USD 25,000.00 for a 40’ container. Why would the shipping lines send a container to Australia for USD 9000.00 when they are getting USD20K + on the USA/Europe route? The lines are reducing tonnage to Asia Pacific and increasing as much as they can to USA/Europe.

Some shipping lines have cancelled routes to less profitable or more logistically challenging destinations like the Middle East and India so they can service the priority Europe and US trade lanes.

We are seeing more vessel and shipping delays than ever before as well. There is still war games in South China Sea, Some ports are experiencing COVID shut downs and there has been typhoons… Below image is from Yantian when it shut down…. Incredible number of vessels waiting…

The global shipping crisis is still making our lives hard - August 2021 Update

We’ve got a container to go to New Delhi that’s ready next week and not one shipping line can tell us when they can take it, same with some Malaysian ports. They’ve got no interest in having these containers going from here to India or Malaysia. They want them back in China, so they get them out on the Trans-Pacific trade lane. There is a shortage of containers, when shipping lines were struggling financially, instead of ordering the required number of containers for their new ships, they would only order 2/3rds of the requirement. Now manufacturers are trying to play catch up.

These issues will continue to unravel over the next 12 months, the rates we saw a year ago will never be seen again. There is no doubt at all that this will be an inflation driver, the prices of consumer goods will rise.

It seems that our job as an International logistics provider is continuing to be incredibly tough… Our days are spent advising Customers of delays, issues and price increases. Getting space on vessels is like a lottery at the moment, We’ve even heard some of the larger importers (Kmart etc) are having to bid on rates/space to get their consumer goods moving.

To help us continue to communicate and inform our Customers in a timely manner, we have employed a new team member. Allan Palmer started with us Monday and is going to be working in operations and Customer service, he has 5+ years in the industry and we’re looking forward to him being an excellent addition to our awesome team.

It really is tough times in International Shipping and logistics and we do really appreciate the support we receive from you. If you ever need to discuss the issues that are arising or the implications it is having on your business we’re always available for a telephone call or a quick coffee (lockdowns allowing)

We would suggest ordering now for Christmas as well!