Delays, shortages and terminal shutdowns continue to affect the Australian market as we move into September. With rising fees and terminal closures, Australians are warned to prepare for the Christmas rush and expected delays.
Keep yourself up-to-date on the latest in freight by reading our top news items for September below, as well as a breakdown of air freight and the sector’s key terms.
Glossary of freight measurement terms
For those not directly involved in freight, terms such as ‘TEU’ can seem confusing. To provide insight, we have broken down the primary freight measurement terms below.
Freight Terminology: Air freight, explained
Air freight is one of the most common forms of cargo transportation, but how much do we actually know about what’s involved? We break down the key air freight terms below.
Unit Load Device – A container used for baggage, cargo and mail on wide-body and narrow-body aircraft.
Allotment – Space set aside for forwarders and shippers.
Dimensional Weight (or Airfreight Volumetric Weight) – Estimated weight that informs the charge by the carrier. This looks at the length, width and height of a package.
Combi aircraft – This aircraft carries both passengers and cargo on the Main Deck.
Cargo Freighter/Aircraft – This type of aircraft has the entire upper deck dedicated to containers and pallets. These aircraft do not hold passengers and don’t offer the traditional passenger amenities.
What’s happening in shipping right now
- CMA CGM has announced a Peak Season Surcharge (PSS) due to be effective as of September 10th, 2021. The PSS will apply to cargo travelling from North Europe & Mediterranean ports to Australian and New Zealand ports.
- August saw the partial closure of a major container port in China. The closure of the Ningbo-Zhoushan port has had a flow-on effect on Australian trade, with shipments to and from Australia affected. Read more about the current crisis here.
- ANL (CMA CGM) recently announced that from September 1st onwards, there will be a general rate increase (GRI) on all cargoes from Korea, China, Japan, Hong Kong and Taiwan.
- American Airlines recently announced that flights into Australia will be suspended for 2 months from 1st September 2021. The lowered capacity will be passed onto consumers in freight price increases.
- As a result of the worldwide freight crisis, prices are being driven up across the globe alongside product shortages and shoppers are being warned to shop early for Christmas. Watch the 7NEWS report.
- DAWE recently announced that the methyl bromide fumigation treatment certificate criteria in BICON will be updated to include additional criteria. The revisions are effective as of 30 September 2021. Find out what criteria have been added to the process here.
- ANL Singapore has advised that there will be a peak season surcharge (PSS) applicable to all cargo from China to the Australian East Coast and New Zealand ports of discharge.
- In a move to prioritise long-term customer relationships in the midst of ever-increasing freight rates, CMA CGM has announced that they will be stopping all spot rate increases from September 9, 2021 until February 1, 2022. Read more here.
- From 19th September to 21st September (for Mid Autumn Festival), and between 1st October and 7th October (for National Day), almost all businesses in China will be closed, which is likely to cause some seasonal delays.
If you have any questions or feedback, please don’t hesitate to get in touch with your MYC liaison or call us on +61 8 9253 0121.
What’s happening in shipping right now?
Here are the top news items in shipping right now:
- Many Australian terminals are experiencing up to 7 day turnarounds to unload containers when they arrive. This news comes as Patrick Terminals continues discussions with local MUA representatives.
- The Department of Agriculture, Water and the Environment has announced that there will be changes in requirements for fumigation of imported goods.
- ANL/CMA-CGM have announced a general rate increase from 1st August 2021 to all cargoes from Korea, China, Japan, Hong Kong and Taiwan.
- In wake of the recent stay-at-home orders in New South Wales, the NSW Government has provided a much-needed exemption for freight workers, granting them the ability to leave the
Fairfield, Liverpool and Canterbury-Bankstown local government areas for critical work.
- In wake of the recent stay-at-home orders in New South Wales, the NSW Government has provided a much-needed exemption for freight workers, granting them the ability to leave the Fairfield, Liverpool and Canterbury-Bankstown local government areas for critical work.
- As of 12th July, all FCL/FCX containers packed with all types of goods in a khapra beetle target risk country and unpacked in a rural grain growing area of Australia will be subject to mandatory offshore treatment.
- Brown Marmorated Stink Bug (BMSB) measures will apply to goods that have been shipped between 1 September 2021 and 30 April 2022 from high risk countries. Find out more here.
- Svitzer, one of two main tugboat operators in Australia, has seen MUA action taken against it as the MUA move to take protected industrial action against working conditions. The campaigns will see a series of strikes conducted across Melbourne, Western Port, Fremantle, Kwinana, as well as NSW and South Australia.
- MSC Mediterranean Shipping Company is advising that a rate restoration will be implemented on all cargo originating from India, Pakistan, Sri Lanka to Australia and New Zealand as of the 15th June 2021.
- CMA CGM has announced a General Rate increase (GRI) applying to export shipments from all New Zealand ports to all Australian ports. This will be effective as of 1st August 2021.
- With the new restrictions around international arrivals, and only 3035 people able to arrive in the country per week, freight will see more delays and a hike in prices, especially coming up to the Christmas period.
If you have any questions or feedback, please don’t hesitate to get in touch with your MYC representative or call us on +61 8 9253 0121.