A new direct freight service between Shanghai and Fremantle ports is set to boost trade between Western Australia and China, its largest trading partner.
The first of four vessels added to the new route set sail from Shanghai this week in what will become a weekly service to the state, reducing shipment time from 30 days to 14 days.
C.H Robinson Oceania director of sea freight Lyndon McGrath says signs point to the new direct service becoming a success story for WA.Credit: Composite Cameron Myles/iStock
The announcement is welcome news ahead of the busy Christmas period and off the back of months of serious supply chain congestion issues.
In June, WA-based consumers and businesses were being warned to shop early for Christmas as then-impending US tariffs on Chinese imports saw shipping container shortages and major delays at the port in Singapore.
But with a new MSC Koala China-South East Asia-Fremantle link now on a weekly port rotation that pressure is easing, say industry experts.
C.H Robinson director of ocean freight, Oceania Lyndon McGrath said the new roster cancelled out the heavily congested Singapore port, operating Shanghai to Fremantle via Hong Kong and Jakarta then back to Shanghai via the Indonesian capital.
The route is “direct” as the cargo bound for Fremantle will not have to be discharged in Singapore and reloaded onto a transshipment service as is the norm for most services to WA, however, the vessel itself will call other ports along the way.
“The attraction of this is because it will be a 12 to 13 day transit from Shanghai to Fremantle, without any risk of hold up or dwell time in a transshipment port,” McGrath said.
“This is significant transit time saving in the product.”
The first ship now headed to our shores, with capacity for 2000 sea containers, is fully booked, indicating strong initial interest from the local market.
According to McGrath, the delays exacerbated by overseas conflicts, particularly in the Red Sea, had seen a major shift in this year’s usual peak season timeline, with businesses heeding warnings to order end-of-year stock in advance.
“Traditionally quarter four would be our peak season, but I feel that the peak season actually shifted forward to quarter three,” he said.
“We’ve seen that large increase in volume through quarter three, so people were looking to get their stock in well before Christmas, well before the Black Friday sales.
“But now, let’s say you need your cargo a week before Christmas, you can still be shipping the first week of December and have your cargo in WA for Christmas.”
As to whether or not the service is here to stay, that will all come down to demand into the future.
“Carriers will make changes to services based on demand – if the demand is not there, then they’ll reduce services,” he said.
“But MSC introducing this Koala service to run between those four ports, Shanghai, Hong Kong, Jakarta, Fremantle, I believe is going to be a success story, and I’m excited to see how this service goes.”
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