January Connected
Happy New Year and welcome to the first edition of Connected for 2025! Stay updated with the latest global developments and exciting news from Southern Cross Cargo.
Chinese New Year
Chinese New Year, also known as the Spring Festival, is one of Asia’s most significant celebrations, during which factories across China and other Asian countries shut down for 1–4 weeks as many workers take extended breaks to visit family and friends inland. In 2025, Chinese New Year falls earlier than usual, running from January 28 to February 4, with factories expected to begin shutting down as early as mid-January to accommodate holiday preparations.
Chinese New Year significantly impacts shipping schedules, leading to delays and congestion as businesses rush to complete orders before factory closures and limited operations take effect. Ports and transportation networks experience heavy traffic in the weeks leading up to the holiday, resulting in longer lead times for cargo movement and increased pressure on freight carriers. After the holiday, there is often a backlog of shipments as factories gradually resume production, further compounding delays. To minimise disruptions, businesses are encouraged to plan shipments well in advance, secure bookings early, and collaborate closely with logistics providers to navigate the peak period effectively.
China FCL rate reduction
As of January 2025, Full Container Load (FCL) shipping rates from China are experiencing a decline due to a combination of factors. A slowdown in Chinese exports has led to decreased demand for shipping services, while an oversupply of container vessels has exacerbated the situation, resulting in lower freight rates. This trend is expected to continue into early 2025, with industry experts predicting that rates may rebound later in the year as shipping companies implement measures to address overcapacity.
Trumps Presidency may cause Tariff Increases
With Donald Trump returning to the presidency, there is potential for significant changes in U.S. trade policy, including the possibility of increased tariffs. Trump’s previous administration prioritised an “America First” approach, which involved renegotiating trade agreements and imposing tariffs to protect domestic industries, particularly against imports from China and other trading partners. If similar strategies are reinstated, businesses engaged in international trade may face higher costs, disrupted supply chains, and increased compliance challenges.
Potential USA port strikes, back on the agenda
As of January 7, 2025, labor negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have resumed, focusing on the contentious issue of port automation. The current contract is set to expire on January 15, 2025, and without a new agreement, a strike could commence on January 16, potentially disrupting operations at ports handling over half of U.S. ocean imports.
Adelaide Warehouse Additional Space
Exciting news! From March 1st, Southern Cross Cargo’s Adelaide warehouse will expand with an additional 2000sqm of premium space, perfect for your 3PL needs. Whether you’re focused on B2C or B2B distribution, our Adelaide facility is equipped to handle it all, offering seamless nationwide distribution. Additionally, we are well-equipped to manage temperature-sensitive goods, ensuring they are stored, transported, and delivered under optimal conditions. With our ISO 9000 certification and HACCP approval, you can trust that your products are in safe hands.
Industrial Action in Adelaide to Impact Port Operations
Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have reported further Protected Industrial Action at Qube Ports in Adelaide, commencing from 12:01 am Friday, 10 January 2025, for seven days. Key restrictions include an 8-hour stoppage when vessels berth, limited shift timings with no extensions, bans on pre-starts, work during breaks, and call-ins outside allocated shifts, as well as daily one-hour stoppages. These disruptions are expected to impact vessel schedules and operations. Should negotiations remain unresolved, arbitration through the Fair Work Commission (FWC) cannot occur before 31 March 2025, potentially extending the dispute into the second quarter of the year. FTA and APSA urge all parties to work collaboratively towards a resolution to minimise disruption to the freight industry and broader economy.
The Return of Wine Exports to China
With China’s recent decision to lift tariffs on Australian wine, the industry is seeing a renewed interest in wine exports. This is welcome news for wine exporters and the broader supply chain. At SCC, we’re proud to support the resurgence of this key trade lane. We are actively collaborating with wine exporters to manage their logistics needs effectively, forecasting around 500 containers of wine exports to China in the upcoming months. We exported approximately 1,300 containers annually before the pandemic and are optimistic about reaching and surpassing these levels as trade normalises.
Our Adelaide facility is well-equipped to handle wine and other temperature-sensitive goods, ensuring they are stored, transported, and delivered under optimal conditions. With our ISO 9000 certification and HACCP approval, clients can trust that their products are in safe hands. As always, our team remains committed to providing flexible, reliable, and efficient solutions for our clients. Whether you are part of the wine industry or another sector, we’re here to ensure your logistics needs are met with precision. Let us help you navigate this exciting new chapter in trade.
Donation to Indian School for Orphaned and Disadvantaged children
Lauren, the daughter of one of SCC’s Directors, is currently in India at the Dayamani Joseph English Medium School in Tenali, a remarkable institution committed to breaking cycles of poverty and discrimination through education, offering children the opportunity for a brighter future. In addition to providing quality education, the school serves as a hostel for children in need. With the support of SCC, clients and friends, $5,000 was raised and donated to support building repairs and educational needs. 👏 👏 👏
Lauren McKillop with some of the students in Tenali, India
If there are particular details you would like more information, or if you would like one of our management team to arrange a meeting to discuss please contact us on sales@scargo.com.au
