Skip to Content Skip to Navigation

Since our last update, there have been significant international and domestic events which have impacted shipping. China’s energy rationing has reduced the demand for outbound freight while, domestically, the Industrial action between Patrick’s and the Maritime Union of Australia has increased delays at Australian wharves.

Over the last month, 20 of China’s 31 Provinces have implemented strict power restrictions, which will result in a reduction in manufacturing and exports. The Shanghai containerised Freight Index reflects this, having, in essence, remained steady for all of October, fluctuating between 4614 at the start of October to 4583 now (see fig. 1.0).

Unfortunately, this paints a better picture than what can be predicted. Any disruptions or significant change to the supply chain will likely increase bottlenecks, change schedules, and finally, increase delays to supply and raised costs. Maersk, the worlds largest Container Line, stated, “This may harm supply chains”.

Increase delays reflected in chart

Fig.1.0 CCFI is based on the freight rate and volume of 12 routes around the world, reflecting changes in freight rate. Departing ports include ports of Dalian, Tianjin, Qingdao, Shanghai, Nanjing, Ningbo, Xiamen, Fuzhou, Shenzhen and Guangzhou.

Locally, the ongoing industrial action between Patricks Terminals and the Maritime Union of Australia (MUA) has further escalated with Patrick’s attempting to have the Enterprise Agreement terminated. MUA have retaliated with further industrial action, adding to the over 220 Industrial activities undertaken since negotiations

These developments will further increase delays to vessel schedules, which have already had ships in Sydney wait up to eighteen days to berth, nine days in Melbourne, eight in Brisbane and three in Fremantle —in turn, reducing the total amount of shipping containers able to reach the Australian market. 

increase delays to vessel schedules in Australia

Aerial view of the Port Botany in Sydney, one of the affected ports facing increase delays to vessel schedules.

As a direct example, the MUA has refused to unmoor a vessel for 48 hours. The ship does a specific rotation between Singapore and Fremantle that 48 hours waiting if happened consistently would reduce capacity on this lane by 15%. 

While industrial action continues at Australian ports, further delays and vessels being forced to skip planned ports will, unfortunately, continue. 

Overall, Redox predicts ongoing changes to the supply chain over the coming 12 months. While there is ever instability and disruption, prices will not reduce, and reliability will not improve.

Please continue to stay in close contact with your Redox Representative to discuss a range of strategies to reduce risk to your supply chain and to further understand how pricing and reliability will affect your business during the coming 18 months.

 

Back to all News

Posted 20 May in Animal Nutrition

Animal Nutrition Insights – Amino acids and feed enzymes supplementation

Could reduced crude protein (CP) diets reduce NH3 emission by 25% in chicken or pig farms? In today’s Animal Nutrition Insights, Redox’s Animal Nutritionist Dr Yumin Bao shares his research on amino acids and feed enzymes...

Posted 16 May in Animal Nutrition

Magnesium sulphate – long history and wide use

Magnesium sulphate, often known as Epsom salt, is a versatile chemical utilised in various markets. With its long history, its use cases are as extensive as they are varied.  In 1618, a villager named Henry Wicker at Epsom in...

Posted 29 Apr in Expertise

Shipping Bulletin – April 2022

COVID-19 in China, increased pricing and international tensions continue to significantly impact the global container shipping industry. While spot shipping prices have reduced 10% this year, recent increases in fuel prices will continue...

Redox opens up a world of opportunity giving you access to more than 850 of the world's best manufacturers.

BASF
Evonik
DSM
DOW Chemicals
ANSAC
Cargill
BestAmino
Chemours
Aromtech
ICL Fertilizers
Eni
AB Biotek
Chemtura
Jacobi
Maurivin
Natural Soda
ETiMADEN
Dutch Plantin
Herba Ingredients
Uvasys
FumeiPharm
CJ Cheiljedang
Aliphos
ClimaxMolybdenum
P&G Chemicals
JKP Nutrition
Prayon
Rianlon
Carus
JIURICHEM
GK
Shell
Laiyu
Sumitomo Chemical
UNID
Sterokem
RheinChemie
United Initiators
Synthite
SCG Chemicals
Medichem
CSPC
Buckman
Pall Water
20 Microns
Scientex