Tuesday, May 17, 2022

Australian retailers warn shoppers against buying Christmas gifts amid global supply issues

Australian retailers are warning Australian shoppers to finalize their Christmas shopping for now as the global supply chain experiences severe congestion and major delays.

The closure of ports due to the outbreak of COVID-19 is affecting the global supply chain and sea freight traffic.

NSW Ports said: “Global disruptions continue to delay vessel arrivals and capacity limitations in Australia.” CEO Marika Calfas Said 23 July.

High consumer demand due to the lockdown means that freighters that were idle earlier have been put back on duty.

NSW ports registered an increase in all imports except aviation fuel. The most notable increase was a 60 percent increase in computer monitors and a 72 percent increase in white goods devices.

However, a reliance on shipping channels means that supply issues are exacerbated when major ports, such as China’s Ningbo-Zhoushan port, are closed, or run under capacity. For example, the closure of the port of Ningbo on August 11 has redirected traffic to other Chinese ports, causing heavy congestion.

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Meanwhile, being able to dock in Australian ports is also becoming a financial challenge for retailers.

Travis Arridge, CEO of supply chain consulting company TMX Global, said Australian retailers were being forced to pay a premium to dock at local ports.

“Shipping lines are making decisions based on quantity, not need, so unfortunately, we have to pay a premium to attract boats,” Ariz told TheAge. told.

He said it cost 400 percent more this time than last year to secure 20 feet of shipping container space, a cost that continues to rise between 4 and 14 percent every week.

A freight forwarder said they had been trying to get the shipment to Australia for a month and didn’t know when it would successfully dock.

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“Initially, the carrier gave me a premium rate of $4,500/foot equivalent unit (FEU), but no bookings,” freight forwarder told S&P Global. “They agreed to give me a container on Wednesday for $5,500 (AU$7,700), but I’ve been calling them for two days. They’ve been ignoring my calls.”

NS Fritos Baltic Index, which shows the market rate for 40-foot or FEU containers, is at $10,024, up from $3,452 on Jan.

Higher shipping prices are also prompting some retailers, such as Breville, to pass the costs on to customers.


This News Originally From – The Epoch Times

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