Posted on 17 March 2022

Escalating Fuel Surcharges:

With the price of diesel increasing every day, transport companies have been increasing their Fuel Surcharges over the last few months.

However, in the last 7 days these surcharges have started to sky-rocket and we have no choice but to pass on these increases. 

As we use different carriers for FCL / LCL / Air Freight, we have standardized the following fuel surcharges by city - 

Sydney / Melbourne / Brisbane                23.5%

Adelaide / Fremantle                                 27.5% 

It appears certain that April will see another jump in surcharges, the biggest being in Adelaide and Fremantle, where they are talking 30% or more

Covid Disrupts China Trade: 

In a bid to curb the spread of the Omicron variant, China has locked down the city of Shenzhen from the 14-20 March

This has resulted in - 

  • Everyone working from home, except essential services. 
  • Factory production and the business operation of non-essential services have stopped. 
  • Some FCL containers yards closed down. 
  • Most LCL depots closed. 
  • Trucking services are restricted in some areas. 
  • The airport is still open but with reduced number of workers. 

The spread of Omicron in China has seen increasing pressure on already over-strained supply chains with a growing backlog of vessels waiting at main ports:

Shanghai / Ningbo: Approx. 260 Vessels 

Hong Kong / Shenzhen: Approx. 165 Vessels

Qingdao: Approx. 72 vessels 

It is likely that the shipping disaster that is the China - Australia trade route will continue with high rates, restricted volumes and lengthy delays. 

We will endeavour to keep you abreast of changes as they happen and as soon as there is some good news, we will let you know! 

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