Global Shipping Delays to Haunt Australia in 2022

Australia’s reliance on global imports is set to leave the country vulnerable in the wake of further supply chain delays, with industry expert, David Aherne, Managing Director and CEO of Across the Ocean Shipping, predicting more pain is yet to come, as shipping hold-ups are expected to continue well into 2022. Australia’s continental separation will place importers at a further disadvantage. As an industry expert after two decades in shipping, Aherne warns importers should begin implementing contingency plans to protect themselves against worsening cargo delays to prevent consumer disappointment.

Painting a cautionary tale, his forecasts are as follows:

Key calendar events, including Chinese New Year and the Beijing Winter Olympics, are expected to add further pressure to already struggling supply chains, as port closures are expected, particularly in Northern China: one of Australia’s most frequented shipping routes. The 2022 Winter Olympics is weeks away and freight forwarders are anticipating further mandatory factory closures, in an attempt to continue aiding pollution in the lead up to the global event.

With international travel back on the cards, passengers will be taking up the weight of air freight cargo, once held by goods whilst international borders were closed. Pilots are in short supply, with retraining still underway, as Australia’s reopening plan accelerates beyond initially anticipated. With air freight in high demand due to a bottleneck of shipping delays, rates are expected to skyrocket, as cargo space becomes less available.

If the turnaround time for quarantine clearance continues to rise, industries in need of goods requiring quarantine clearance, such as food, plant materials, and wooden articles, could face additional waiting periods and subsequent cost escalations. Consumer demand will further increase as countries begin to emerge from lockdown. Limited vessel accessibility will cause producers to keep stock on hand. This will implicate warehousing space, as some manufacturers may need to limit stock production.

Across the Ocean, shipping has become a predominant freight forwarder in the shipping & logistics industry with the primary office based in Cremorne, Richmond and global offices in Los Angeles and Rotterdam.

Article by: Hari Yellina (Orchard Tech)