Home Forums Logistics Sea Freight costs Increasing while delays get longer

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  • #1000392
    Dash Freight
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    If you are importing by sea then you may be seeing the freight prices go up and up. On top of that, there are significant delays, weeks in some cases, as ship arrival dates keep getting reviewed.

    Why is this happening?
    There is an industrial dispute at the ports in Sydney and this is leading to delays in loading and unloading ships.
    Ships are waiting offshore (at $25,000 per day) or they are rerouting their schedule, bypassing Sydney.
    The knock on effect means the vessel cannot get back to Singapore or China for their next voyage, causing even more delays.

    The world’s biggest freight line, Maersk, has stopped sending ships to Sydney.

    Some are offloading in Melbourne or Brisbane and sending the containers by rail to Sydney.

    The shipping lines are now charging a congestion surcharge on all sailings to Australia

    For importers this means delays of weeks, and higher shipping costs. For sea freight you need to allow more time. If its urgent, and the costs are not prohibitive, you may need to consider air freight. Air freight from China is slow, but from all other countries it is pretty quick. USA to Sydney is 3-5 days.

    More details about the dispute here

    https://www.abc.net.au/news/rural/2020-09-28/maritime-union-criticised-over-wharf-pay-dispute-port-of-botany/12710172

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