December Connected
14th December, 2023
DP World Strikes
We have been advised that the protected industrial action has been extended to 23rd December. The on-going actions taken by the CFMMEU-MUA has caused significant operational delays at all DP World terminals in Australia. Many sailings schedules are impacted and will continue to be affected whilst this dispute remains unresolved. Like all in the supply chain we were hopeful that the discussions held in Perth last month between DP management and the Union would resolve the issue, a few days of strikes were lifted, however without a result the strikes will now be continuing.
Shipping Delays
The strikes are having a big impact on the transit times of many sailings, with many vessels being re-routed whilst in transit, some vessel delays are currently 7-10 days. The resulting delays cause vessels to return late back to origin ports. This has an impact on the next round of schedules. The cycle continues until both parties come to a resolution.
Portside Surcharges
Global supply chains are deep and complex, shipping is but one component, and the ports although a very small component in the overall supply chain are a quickly becoming a barrier to trade, in addition to ongoing strikes we have received notices form all terminals of further increases to infrastructure surcharges. When they come in to play early 2024 an importer will get very little change form $2000.00 from the time the ship docks in AU ports and delivery to a metropolitan area, port charges, infrastructure and associated fees form the port will be around AUD1300.00 per 40’ container. Depending on the stage of the market the ocean freight component from Shanghai to Sydney is cheaper… the rates are lifted by all terminals at regular intervals, industry bodies have lobbied the Government to review these costs, no affect yet. There will be further increases in 2024. At some point these costs will become prohibitive and more consideration of these costs will be made by exporters and importers than the overseas freight rates.
Chinese New Year Planning
The year of the Dragon commences February 10th, 2024. The peak season for shipping will continue through to this date, whilst taking a break over the festive season. Please ensure to have your Chinese orders in place, as usual manufacturers will be stretched through to the commencement of CNY. Shipping schedules as noted above are already affected by delayed sailings. Please ensure that all orders ex China are made available to the SCC team early January, this will allow us to track your cargo ready date and make an early booking for your important cargo.
SCC 3PL update
Our custom built 3PL warehouse will open some extra space in early 2024. Our warehouse is specifically designed for online retailers to operate without the need for their own storage facility. If you are wanting more time to work on your business rather than in it, we would love to hear from you. You are welcome to drop by for a tour or email sales@sccargo.com.au for more details.
SCC Charity Support – The Dayamani Foundation Tenali India
At SCC we are very proud to be providing ongoing support to this wonderful school for orphaned children. We dedicated October to raising funds and are fully committed to do this every year.
The Dayamani Foundation is a registered charity and Not-for-Profit organisation which runs the Dayamani Jospeh English Medium School in Tenali, India. The school is for disadvantaged children, who have few, if any options.
From the School
“Your donation will be used directly now to replacing doors around the school that have been affected by insect damage. Wooden doors will be replaced making the school and orphanage a safer environment for the children.
Your donation is greatly appreciated, this has been a safety concern for some time that we just haven’t had the funds to fix. This money makes a huge difference. Thankyou!’’
I know they have also used the money in past times to fix plumbing, other infrastructure, school uniforms, school equipment and put tv’s in so they can learn English from Australia
Well Wishes
To our fantastic customers who trust SCC with the management of their international cargo, to our wonderful overseas agents that we proudly work with, our awesome local AU service providers and to the amazing staff at SCC, our business would not be a great success without you all. We thank each one of you for the great support throughout 2023 and we look forward to seeing and working with you all again in 2024. Wishing everyone a joyous festive season and a magnificent New Year.
