Welcome to OSCL’s newsletter/blog.
It’s been a crazy couple of weeks.
A big shout-out to our new clients! We are excited to have an increasing subscription to our newsletter, we hope you enjoy it and find it insightful!
Grab your bevy of choice and let’s jump straight in…
Insights into current trends and developments in the logistics and supply chain industry.
China:
This has been a very difficult market to predict, with odd patterns and late introductions of GRIs. Based on the current market, the CN-AU trade lane rates should hold for the rest of the month, with the expectation of a GRI in the near future as we head into peak season. The unpredictability is due to the Australian & New trade lanes performing the weakest in comparison to the global market, and therefore, we are not receiving consistency and primary vessel allocations.
We are still struggling with obtaining space and blank sailings, with some ports worse than others. All vessels that have been operating by carriers that are moving freight from China to Australian West Coast ports, tend to be the same vessels heading on to India, Europe, and the Mediterranean; and are generally passing through Singapore/Port Kelang/Tanjung Pelepas. This lane is experiencing severe vessel cuts due to the demand pressures of these other trade lanes.
There are reported shortages of 40HQ in China, most shipping lines are providing 40GPs. We are predicting this to have a flow-on effect on 20FT bookings, however, OSCL is monitoring the situation with our agents and will advise accordingly with alternate solutions should the need arise.
United States:
The main shipping channel into Baltimore port has re-opened, 2.5 months after the Dali containership crashed into the bridge, not a small feat, with over 50,000 tons of debris being pulled from the river.
Far East to U.S. Ocean freight rates are up between 36%-41% month over month, while air freight prices have jumped 9% this year. Demand alone cannot explain the price hikes, with ocean freight orders down 48% month over month. Economic inflation, avoidance routing, and shortage of equipment (the list goes on and on), are putting significant strain on the industry.
US forwarders are reporting that most of their recent demand increase is from specific product categories being ordered ahead of August tariff increases on some Chinese goods. The rumor mill is swirling with talk of an East Coast port strike in October, as The International Longshoremen Association threatens port employers with increased wage demands.
Global Highlights:
- The state of the global ocean container capacity market has hit like a freight train, just as peak shipping season starts, with freight spot rates up an estimated 30% over the past few weeks, with no sign of reprieve. Early peak season is that you?
- Judah Levine, Freightos’ head of research, says that in March and April, ocean carriers were able to use idle vessels as well as ships from other lanes to help offset the longer voyages, keep containers moving and for the most part keep to weekly departure schedules. “But this has meant there is no excess capacity in the market,” he said.
- It’s predicted that 98% of the world’s cargo is moved by ocean, even a small shift in ocean availability and rates is expected to push the air freight volumes by a minimum of 10%.
- The Panama Canal Authority (ACP) will increase the current number of daily transits from 32 to 33, effective 11 July 2024, and 34 from 22 July 2024.
- A new $240m terminal at Chittagong Bangladesh has opened, expecting to handle 500000 TEU’s.
Information on new customs regulations, trade agreements, and compliance requirements.
Australian Border Force:
- Anti-Dumping – Monthly Status Report – May 2024 –
https://www.industry.gov.au/sites/default/files/adc/public-record/2024-06/monthly_staus_report_-may-_2024.pdf - Engineered Stone Ban – Customs Notice still to be issued – refer to Safe Work Australia for details –
https://www.safeworkaustralia.gov.au/esban - Removal of ‘nuisance tariffs’ and extension of duty reduction for Ukrainian goods – Customs ACN No. 2024/17 –
https://www.abf.gov.au/help-and-support-subsite/CustomsNotices/2024-17.pdf
- Refund of Customs Duty for Short-Shipped Goods – ACN No. 2024/05 – https://www.abf.gov.au/help-and-support-subsite/CustomsNotices/2024-05.pdf
Department of Agriculture, Fisheries & Forestry:
Resources:
- 120-2024 – Proposed Changes to Import Conditions for New and Aged/Used Oversize Tyres – https://www.agriculture.gov.au/biosecurity-trade/import/industry-advice/2024/120-2024
- 127-2024: Onshore intervention for non-compliant offshore Brown Marmorated Stink Bug (BMSB) treated consignments – https://www.agriculture.gov.au/biosecurity-trade/import/industry-advice/2024/127-2024
News Highlights:
- Air cargo rates and volumes continue to soar in May, Damian Brett, Aircar go News –
https://www.aircargonews.net/monthly-exclusive/air-cargo-rates-and-volumes-continue-to-soar-in-may/ - 3 factors causing prolonged congestion at Singapore’s port, Staff Writer, Singapore Business Review –
https://sbr.com.sg/shipping-marine/in-focus/3-factors-causing-prolonged-congestion-singapores-port - Items proposed for consideration at the next meeting of the Dispute Settlement Body, WTO – https://www.wto.org/english/news_e/news24_e/dsb_agenda_24jun24_e.htm
- Freight rate relief? Why worldwide shipping prices continue to rise, Daniel Woods, Fully Loaded – https://www.fullyloaded.com.au/freight-rate-relief-why-worldwide-shipping-prices-continue-to-rise/
- Next wave of shipping sanctions levelled at Russia, Sam Chambers, Splash247.com –
https://splash247.com/next-wave-of-shipping-sanctions-levelled-at-russia/ - Australian Freight Industry Award nominations are now open, Staff Writer, Full Loaded –
https://www.fullyloaded.com.au/australian-freight-industry-award-nominations-are-now-open/ - China-Europe freight trains allow world to feel the robust momentum of China’s economy and opening-up, Staff Writer, Global Times –https://www.globaltimes.cn/page/202406/1314417.shtml
Import/Export Tips:
Practical advice for small businesses and first-time importers on managing their logistics more effectively.
Did you know Australia currently has 18 Free Trade Agreements? Qualifying products under these Free Trade Agreements could potentially be imported at a 0% Duty Rate. Not sure if your product qualifies – contact us for a review.
You can view all the applicable FTAs that Australia has ratified here: https://www.dfat.gov.au/trade/agreements/trade-agreements
We post regular tips and tricks on our socials and would love for you to follow & tag us! We are close to reaching 100 followers on Instagram and appreciate all our clients who are supporting us on our socials.
Client & Partner Spotlights:
OSCL is a proud team partner of MOR Motorsport, a dynamic trophy truck racing duo. Jack and Amy approached OSCL for assistance after struggling with their imports in preparation for Finke 2023. A big congratulations to the team for finishing Finke 2024 last weekend! What a fantastic accomplishment!
Read more about our partner story here:
Stay tuned, as we have some exciting plans & adventures to come with the team.
Winter in Canberra can be brutally cold, but it’s the perfect time to gather around a warm, inviting outdoor fire pit. And who better to provide that cozy centerpiece than TKO Products? This Australian family-owned and operated business is headed by Bron, a dynamic superwoman who juggles the roles of boss lady, mommy, and small business owner with grace and grit. From the very beginning, Bron has been a steadfast supporter of OSCL and has championed us at every turn. If you are in need of a new firepit, chairs, stools, etc, please check out her website or socials – https://www.instagram.com/tkoproducts/
OneSource Highlights & News:
The past few weeks have been incredibly busy. April wrapped up with a variety of networking and government engagements. At the start of May, we headed to Sydney for the Freight & Trade Alliance (FTA) CPD event, then on to Perth for the next FTA CPD event and client meetings. In June, we participated in several Canberra Women in Business events. Closing out the financial year with a quick trip to Wodonga, VIC, ending June with participating in the “Training on E-Commerce Success: Unlocking Global Markets for ACT Exporters” workshop.
FedEx has just revised our rates and they are very competitive, if you have any courier shipments, please do get in touch for a comparison quote. As usual, we have competitive NOR rates out of China heading into peak season.
Bianca will be on leave from 04/07/2024 through to 11/07/2024, recovering from knee surgery.
All clients with consignments over this period will receive an update including a temporary alternate point of contact. I’ll respond to all emails and inquiries once back on deck.
And that is a wrap!
Thank you again for the support – we love being your first choice and “OneSource” for all things logistics.
Until the next one,
