Farmers struggle to source basic parts: Ongoing shipping delays in 2021

Farmers and local machinery makers are struggling to source the basics — from imported belts, pulleys and bearings to steel.

Shipping delays mean farm implement maker Derrick Berends has to wait 22 weeks to get components in from Europe. Picture: Yuri Kouzmin

Agricultural machinery importers and manufacturers have overcome international production and shipping delays by getting orders in early, but farmers and local manufacturers say they are struggling to obtain the basics — such as hydraulic hoses, bearings and steel.

“It’s chains, pulleys and bearings,” Dandenong farm implement manufacturer Derrick Berends said. “What we’re finding are importers being caught out, not having the stock here.”

Like larger players Mr Berends has planned well ahead on importing the specialised parts he needs to build slashers, cultivators and graders, given orders that once took 8 to 12 weeks now taking 22 weeks.

But when it came to sourcing from local suppliers Mr Berends said it was a battle to get material as basic as steel.

O’Connors group operations manager Rowan Bennett, who oversees 10 CASE IH dealerships, said the situation was far from perfect, but months of planning meant the company’s St Marys warehouse was well stocked.

“Since COVID hit we’ve been working hard,” Mr Bennett said. “We’re on the front foot, (after) hearing there’s a number of supply issues, especially with containers.”

O’Connors, like other farm machinery suppliers resorts to emergency airfreight when necessary to get parts in from the US and EU, but prices have risen sharply.

However while big players appear well prepared, farmers say they are also struggling to source the most basic parts.

Ouyen farmer Leonard Vallance said his biggest challenge was not getting spares for machinery, given the “big companies have taken care of it”, but the little things that were still crucial to running the property.

“It’s grease nipples, pulleys belts and chains,” Mr Vallance said. “I wanted some new tow chain hooks the other day and couldn’t get them.”

The biggest challenge is yet to come in spring, when the silage and then hay making begin.

Mr Bennett said O’Connors already had shipping orders in place that were “almost here” for netting, string and silo bags.

But the Freight and Trade Alliance has warned delays are set to continue until at least the end of this year.

“The high volumes of trade, in discussion with most (shipping) lines, is expected to continue well into the end of this calendar year and whilst volume adjustments may lower freight rates the idea of them moving back to pre-covid rates is highly unlikely,” FTA business operations chief John Park said.

He said shipping delays and rising costs were being driven by demand exceeding capacity, which resulted in:

HIGHER prices as more shipping lines formed alliances (less competition).

HIGH demand for goods globally due to travel and domestic restrictions caused by the COVID pandemic and equipment shortages.

LACK of empty containers being returned to major production centres, such as China (Australia’s empty container parks are overflowing)

CARGO owners with urgent shipments being prepared to pay premium rates.