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Unfortunately, as predicted in our previous bulletin, shipping conditions have continued to deteriorate, further COVID-19 Outbreaks in Southern China have caused more disruption than the Suez Canal Blockage and renewed industrial action at Australian Ports has fuelled concerns in the market about a repeat of port omissions and bookings not being accepted to some Australian East Coast Ports.

COVID-19 Cases in Guangdong, Southern China has resulted in reduced capacity of Yantian, Shenzen, Shekou, Chiwan & Nansha Ports and had significant flow on effects to most other Chinese Ports. Guangdong counts for 24% of Chinese exports, as well as being home to the 3rd & 5th largest Ports in the world[1]. At one stage Yantian Port was operating at only 30% of capacity and currently vessels have had to wait up to 16 days to berth[2]. The well-publicised Suez Canal Blockage only lasted 6 days,  this has been ongoing since at least the 25th May, it will have a flow on effect to all Chinese ports, creating new bottlenecks reducing Global Shipping reliability and will continue to push prices upwards.

New Industrial Action in Sydney, Brisbane and Perth, has raised concerns that if the two parties do not come to an amicable solution shortly their will be a re-occurrence of issues seen in late 2020. The action will lead to delays in vessels berthing at the port and discharging containers from vessels. If this continues, a repeat of 2020 could happen in which vessels omitted Sydney Ports and shipping lines introduced a Congestion Surcharges. We will keep you up to date as we continue to monitor this situation.

In positive news, there has been reduced congestion at Auckland Port, with increased train services meaning that delays between Tauranga & Auckland have reduced from in excess of two weeks to three days.[3] Unfortunately however, Shipping lines are still arbitrarily charging an Auckland Port congestion Surcharge.

In California, delays and congestion have reduced at Los Angeles and Long Beach Ports, however wait times have increased in Oakland to as much as three weeks[4]. As a result multiple lines have stopped calling Oakland, Maersk suggests that these delays in berthing have reduced effective capacity by up to 20%.[5] As a result of these delays and ongoing congestion (even if easing in LA/Long Beach), shipping prices continue to increase to record levels, up 200% on this time last year, and increases into USA of 6% a week.[6]

To ensure a smooth supply chain for our customers, Redox employs a dedicated team, with hundreds of years of combined experience in international freight. We hold contracts with all major shipping lines and can source stock from multiple different countries. It is important that you keep your account manager aware of future requirements as soon as you become aware.

If you have any concerns at all, please contact your account manager.

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