Freight Update

[robdash]

Hi all

I hope you are healthy, and I hope you still have work. I have noticed some of our clients are facing a serious drop in business. Others are still trading well.

I thought it might help you to get an update on couriers and freight movements in this COVID 19 year. The changes mean many businesses have to manage their orders and manage their customers’ expectations.

The information here is a guide only. The situation is fluid. We can only advise based on our experience in the last few weeks and information supplied by the carriers.

Domestic operations are running pretty smoothly. Road and rail are operating as normal
But the problem comes when you have urgent freight.
If you pick a service that would ordinarily go by air (think TNT Overnight service or Star Track Premium), please be aware it may not get there in the stated transit time. Why? because there simply aren’t enough planes flying.

INTERNATIONAL AIR FREIGHT
Here is where it gets messy

The lack of flights around the world means there has been an increase in prices and a blow out in transit times.
Pricing has been increased. All companies have applied a COVID 19 surcharge

Air Freight from China will be delayed – maybe 5 days – maybe 10 days or more.

• From China most couriers will not accept more than 100 kg (chargeable weight) per shipment per customer.
  Loose loads have more chance of being accepted than a pallet.
• If you have more than 100 kg from China and you cannot break it down, you need to get a spot rate with air cargo.
  But be warned. Prices are higher and there will be delays in getting a flight

From Europe and USA

• There are some delays in transit times
• Rates have been increased

NO ECONOMY FLIGHTS
Do not use the economy services offered by TNT and FedEx, even if you do see them as an option.
They will not travel. Economy works best when supply is greater than demand. That is not going to happen soon.

SEA FREIGHT IS ON TIME
From China you can receive your goods in 3-4 weeks
If you can manage your orders, and you have a pallet or more, consider sea freight.

SUMMARY
If it is urgent you will have a problem. They just cannot deliver like they used to.
If you can plan for shipping by the non urgent method (Sea or Road/Rail) you will get normal reliability in delivery standards and reduce costs.
If you can manage your customers’ expectations and the inventory sizes, your supply will be reliable.

Stay safe

[bb1]

Rob, Great summary.

I have definitely noticed delays in stock I have ordered, and stock I have sent out, but no complaints from clients as yet, as I think people understand the current situation. And I for one wont be complaining to my suppliers, these are extraordinary times..

Even picking, packing and despatch is much slower, but again I am assuming that is due to far higher demand, and thus it just slows things down.

Even items being shipped between Sydney and Melbourne via truck are taking much longer with one supplier quoting 2 to 3 weeks, for items I could normally get in a week, but the explanation is that there has being unprecedented demand on there system with everyone staying home and purchasing more, so some business’s are actually doing a roaring trade despite the lock down.

Just an FYI for others Toll’s tracking system is down due to a ransomware attack.. https://www.tollgroup.com/toll-it-systems-updates

[robdash]

Thanks Bert,

yes Toll have had some problems with their quotes and bookings. SYD to MEL should have no delays. Road Express is usually overnight. Pallet carriers may take 2 days. Some depots are working slower from reduced staff due to distancing regulations.

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