Christmas supply chain chaos to disrupt deliveries

Consumers are bracing for parcel delivery delays and potential food and beverage shortages this Christmas.

Consumers have been warned to get their orders in early or risk delays.

Consumers are bracing for parcel delivery delays and potential food and beverage shortages this Christmas as supply chain disruptions threaten to create chaos during the festive season.

Christmas stockings could be emptier than usual, after Australia Post brought forward its Christ­mas delivery deadlines amid persistent skill shortages and a surge in online shopping.

The national postage carrier has warned gifts from customers in Western Australia and the Northern Territory must be sent by Wednesday, and by Monday for all other states, otherwise they may not arrive in time.

A dramatic increase in online shopping has continued to put pressure on the postal system, with the National Retailers Association forecasting an $8.2bn online spend this Christmas, up 51 per cent on last year.

This follows an unprecedented Black Friday online shopping frenzy, which led to Australia Post delivering more than 21 million parcels across the Black Friday weekend as consumers splashed their cash saved up during protracted lockdowns in Victoria, NSW and the ACT.

Australian Retailers Association chief Paul Zahra has warned consumers to get their orders in early or they will run the risk of delays, and said some online-only retailers would be impacted during their biggest period of the year with consumers forced to turn to in-store purchases instead.

Mr Zahra said while the resumption of international travel had eased some pressure on the freight system, a global shipping “bottleneck” would continue to create persistent problems.

“Supply chains are under incredible pressure at the moment, and this is a global reality,” he said. “There are many issues at play which are creating this perfect storm for delays.

“Distribution centres and warehouses continue to be impacted by staffing shortages. And then there have been industrial disputes, state border controls and limited flights.”

It comes after industrial action within the delivery sector ­further clogged the network and wreaked havoc for consumers, with workers from Toll, StarTrack and FedEx walking off the job over pay negotiations.

A national shortage of diesel exhaust fluid has also sparked fears food and alcohol deliveries could be disrupted during the Christmas period and lead to food shortages in supermarkets if an expected collapse in supply forces thousands of trucks off the roads.

Transport Minister and Nationals leader Barnaby Joyce will hold an emergency roundtable discussion with senior members of the Australian Trucking Association on Wednesday to address the shortage of AdBlue, a critical liquid used by modern trucks transporting goods across the country, after supply problems emerged in China.

The ATA said the issues would be worst in February, but panic buying of the fluid has already seen the price spike from $350 per 1000L to $1350 per 1000L and businesses have reported it is already difficult to obtain.

Western Roads Federation chief executive Cam Dumesny said food shortages were inevitable if the supply issues were not resolved, and he urged the government to implement a national plan to address supply chain ­issues across the sector.

“If the shortage of AdBlue is not resolved then there will be ramifications on food supply,” Mr Dumesny said, adding: “Without it, our modern vehicle fleet does not run.”