CFL July 2020 Newsletter

Please note that a new toll has been introduced in Sydney on the new M8 Tunnels that just opened this month and unfortunately very little notice was given to the public or to transport companies regarding this new toll. This has come into effect from the 8th July and will apply to all vehicles (containers) that travel from Port Botany, west & south west. In the past trucks could exit/enter the M5 tunnel at King Georges Rd without charge, but now they have to use the new M8 Tunnels at a cost of approx. $25.00 each way.

All transport companies have been forced to pay and pass on this new toll and as a result all Sydney container deliveries will now attract an additional toll fee of $50.00 + GST per container.
Our apologies for the late notice regarding this increase, but this came into affect very quickly and with little notice and we have been working with our transport companies to make sure that the correct toll amounts are being applied appropriately.

Unfortunately the rates for air shipments are still much higher than they were prior to COVID-19, due to the huge drop off in international flights and services around the world and this is unlikely to change for quite some time. There are still some regular services operating on the main routes, but with higher rates in place and unfortunately for some other routes there are no reliable services in place and shipments can be delayed and held up at various airports causing long delays and much frustration. Adding further to the situation with air shipments to Australia, the number of flights permitted to land in Sydney have been reduced and many services to Melbourne have been cancelled to help try and slow the outbreaks of COVID-19, unfortunately this will further impact this already severely disrupted transport sector.

The airfreight services from China have been steady with several regular cargo services operating to Sydney and Melbourne. But this has recently changed since the COVID-19 cases in Melbourne have escalated along with the additional restrictions to international flights to both Melbourne and Sydney. This week we have been advised that all carriers from China are suddenly fully booked now for the next few weeks and that all rates will be increasing due to this significant reduction in services along with the on going high demand for space on these routes

We have been advised to expect further rate increases for shipments from China to Australia based on the fact that capacity has been reduced by around 25% compared to last year, whereas the trade drop off has only been less than 5% for the same period. Therefore, based on this reduced capacity and the high demand for space leading into the peak season, its expected that the carriers will look to implement various Rate Restorations, General Rate Increases and Peak Season Surcharges during these busy times. This reduced capacity will also cause bookings to be rolled by carriers as they overbook their vessels during this peak period. We recommend that you look to have your shipments from China booked as early as possible to help try and secure the space required with the carrier

Just letting you know that we are still working well under the various rules and regulations associated with COVID-19. The majority of our staff are all still working remotely and we only have limited people working in each of our offices. We were already set up to run paperless for quite some time before this pandemic changed our lives, so it wasn’t hard for our staff to start working from home and hopefully our service has continued to meet your needs during these difficult times.

We have also noticed international courier transit times are longer than usually expected, mainly due to reduced flights, change of practices relating to social distancing and drivers with any symptoms (eg common cold) unable to attend work. Please allow for these delays when planning your shipments