July Connected
31st July, 2024
To our wonderful Customers, welcome to the July edition of Connected. Although it has been a little while since our previous extensive update, the global shipping challenges remain and have increased. To copy and enhance from our last update here are some of the key global shipping issues.
- Blank sailings ex China to Australia to continue in August, this removes capacity on our trade lane.
- Rate increases announced for June and July did flow through, there are indications of further increases in August.
- Ocean freight rates on EU, USA and South American trade lanes ex China are double the rate than the AU trade lane, some vessels have been moved to lanes that make more margins for the shipping lines. This issue remains.
- Sailings to and from Europe are not going via the Red Sea due to the attacks in these waters, this extends the lead time by two weeks as vessels need to sail around the Cape of Good Hope.
- Longer transit times are impacting the availability of empty containers, 40’s in particular ex China are a problem. This issue remains.
- Shipping lines will make empties more readily available to trade lanes with higher margins, this alone confirms above point that rates to AU will increase further.
- With rates increasing the gap between Name Account (NAC) rates and market rates is extensive, some shipping lines are already advising those on NAC’s that rates will need to increase from the agreed levels, the issue will be if not agreed then market rate containers will take priority on the bookings, again the margin wins. Many promises on NAC rates have fallen flat, if you are on a NAC that is not solid you are at the back of the queue or will be required to pay market rates for bookings.
- Port congestion at key transhipment hubs of Singapore and Port Klang continues, can be an extra 7-10 days wait currently.
- Port strikes in Germany and France are unresolved, this does impact schedules and lead times.
All of this essentially means plan on some extended lead times, and please ensure your purchase orders are shared with SCC at least two weeks prior to the order being ready.
BMSB Season on the way
September marks the beginning of the next BMSB season, if you are planning orders for early September, please consider making the orders available for sailing prior to SEP 1st, this will save on the BMSB costs and additional lead times required for the fumigation. During August we will publish a bulletin on the upcoming season.
China Golden Week October 1st to October 7th
Some early notice on the annual China Golden Week holiday. You are likely planning orders for this period now, please consider this holiday period when doing so. Space as always will be tight in the lead up to Golden Week and it can take a week or so for China to get back into the normal groove post the holiday. Rate validityWe have been seeing an increase in rate requests, which are very pleased to see and support you with. For many trade lanes, currently ocean rates are valid in fortnightly periods, please bear this in mind when considering your shipment timing, the rate may need to be confirmed prior to sailing.
SCC staff and Sustainability Update
Whilst SCC is growing, at our core we are very much a family business.
Continuing our strong family ties, we proudly welcome Katrina Angel to SCC.
Katrina will be managing and enhancing SCC’s sustainability and good corporate business practices. Ensuring that we implement our plans and exceed what our customers and business partners expect from us, just as importantly setting great business benchmarks that we expect of ourselves.
Initially Katrina will be focused on the implementation of the Pledge and EcoVadis programs, SCC management sees both of these initiatives as essential in our business sustainability.
Full details of both programs and the benefits to SCC and our customers will be shared as each initiative progresses.
Left to right: Greg and Elise McKillop, Katrina and Paul Angel.
SCC team support University program
A rewarding day this week for SCC Branch Manager Aaron Deluca and SCC Customs Manager Simon Pepper. Aaron and Simon presented a training session for Griffith University International Development Unit.
The University this week welcomed 20 participants from Indonesia as part of the AU awards standardisation and product compliance for virgin coconut oil and spices course.
The program is seeking to strengthen the export competitiveness of Indonesian produced virgin coconut oil and spices.
Aaron and Simon’s presentation on the role of a freight forwarder, logistics management, incoterms, compliance, tariffs, duties, quarantine, restrictions, and other international trade requirements was exceptional and very well received by all participants.Well done gentleman, all of us at SCC are very proud in the manner that you represented yourselves and SCC. 👏 👏 👏
Southern Cross Cargo acquires Lynair logistics
SCC is thrilled to announce the acquisition of Lynair Logistics Australia Pty Ltd.
SCC has had a long and valuable working relationship with Lynair Logistics for many years, we are very proud and thankful to have been given the opportunity from the Lynair Logistics Management team to take over the company, effective 1st July 2024.
Lynair Logistics are an Adelaide based 3PL, providing warehousing, cross docking, eCommerce, packing, container loading and unpacking and many other necessary logistics services.
We are very excited to welcome the Lynair Logistics team led by Jerry Menezes to SCC.
A few numbers to consider:
Warehouse: 2000sqm
Additional warehouse space from 1st FEB, 2025: 2000sqm
Pallet positions: 2000 and 2000 more from FEB 2025
Staff: 7
Hardstand: 2000sqm, including undercover
We look forward to sharing more details on this acquisition and making SCC available to our wonderful customers in Adelaide.
Paul Angel (2nd from R) SCC Director, with some of the Lynair Logistics team.
Thank you for taking the time to read our news, whilst here are on going supply chain challenges the team at SCC remain fully committed to ensure your shipments are always moved in the most efficient manner. 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
