SYDNEY PORT CONGESTION – UPDATE 4

We just wanted to update you on the current situation again with shipping to Sydney.

The goods news is that the MUA has ceased industrial action at the port for the time being with DP World reaching an agreement in principle and they’re looking to have this new agreement signed and in place very soon. Patricks are set to meet again with the MUA on the 26th October to restart their negotiations for their new agreement and hopefully this will be resolved and completed very soon as well. Currently the terminals are working well once a vessel is berthed and they’re also starting to load empty containers now as well and this should go some way to easing the situation with the overcrowded empty parks in Sydney.

 But the bad news is, there is still a delay for vessels to get a berth in Sydney. DP World reported 2.5 days delay & Patricks advised some vessels are 21 days behind schedule. Because of this, many vessels are still being diverted away from Sydney at the last minute and proceeding to other ports before they return to Sydney at a much later date. Also, some carriers are still not even taking bookings to Sydney and some shipping lines are still omitting the port on their route to Australia. All these factors are making it very difficult to get any bookings for cargo to Sydney, as most vessels are already fully booked for weeks in advance due to the limited options left for shipping to Sydney. The other area for concern is the MUA has now taken aim at tug boat operator Switzer and we’re watching and waiting to see how this may play out.

Also, due to this situation, the rates are now increasing at a rapid pace with various Rate Restorations, Peak Season Surcharges and Port Congestion Fees being applied by all carriers. Below are some links to the latest notices we’ve received for your information and we do expect that the situation with Sydney will improve over the next few weeks, but for the time being its still going to be quite difficult and very expensive to ship cargo to this destination.
OOCL – Rate Restoration notice
MSC – Peak Season Surcharge notice

We will continue do our best to get your goods shipped and delivered as required and we’ll continue to try and keep you updated on the constantly changing shipping schedules and arrival dates, but sometimes the shipping line doesn’t even know what their vessel is doing until the last minute.

 Once again this year is continuing to be very challenging on many fronts and hopefully at least shipping will get back to normal some time soon. Please get in touch with your regular CFL contact if you have any questions or if you need any specific information relating to your shipments.