Port operator Patrick reports it is operating at 40 per cent capacity at its Port Botany site in Sydney, which has delayed ships in ports across the country. Delays into Melbourne run to with 9.5 days and 17 days at Port Botany
The delays are sending shipping costs higher, with freight forwarders charging a $600 surcharge on a 40 foot container and $300 on a 20-foot container.
Importers say demand within Asia means it is difficult to get slots on a boat, which in turn means they have to stagger arrivals, which then increases costs further because shipment cops a levy.
AIG’s Innes Willox said the shipping delays are a major cause of problems for the Australian economy threatening supply chains and delaying good across the board.
The Freight and Trade Alliance warns of domino effect of congestion at ports around the country and says they needed to resolved to avoid further major damage.
On the industrial relations front, the MUA settled a protected action with DP World last weekend which means there will be no further action until the end of October. But other operators are being targeted.
The MUA actions are all protected as they are part of a new enterprise agreement.
The enterprise agreement includes a 6 per cent a year wage increase for the next four years, a guarantee of no job losses and a $2000 sign on bonus for the new agreement.
For its part the union has said Patrick has had its own issues at the terminal which have caused delays.
Companies affected include many supplying infrastructure for the country’s revival plans but that won’t happen if the goods don’t land on time.
Suffice it to say the mayhem could not come at a worse time, post-COVID.
Importers are complaining their containers are being stranded in Shanghai because the big shipping companies are avoiding Australia where possible because of the delays and competing demand elsewhere. Recent reports in the Australian of potential shortages for the big supermarkets are in part caused by the mayhem.
Everyone is working overtime to try to revive the Australian economy but the logjams on the wharves is threatening to destroy the effort.
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A combination of strong demand in Asia and threats of industrial action on the Australian waterfront is creating havoc for Australian business.