Do you need warehouse space in Melbourne’s West? We can help!
Our Truganina site is live since the start of the year, and the team has been hard at work onboarding several customers in time for Peak Season.
Our 12,500 pallet position ambient (non-DG) facility in Truganina has the following features:
- Just 20 minutes from Port of Melbourne, very close to major roadways
- Pallet height up to 1.35m and 1,200kg
- WMS: Blue Yonder Dispatcher
- RF-scanner driven processes for accurate inventory management
- Lot / batch / expiry capture on inbound and outbound
- 5-star green star environmental build with 99kw solar system
- Recess docks and covered hardstand for all-weather operations
- High-level security system
- 24/7 remote monitoring and alarmed
- Licenses and Certifications:
- Food storage license
- HACCP certification
- Bonded – S79 (import & excise)
- DAFF Approved Arrangement 1.3 – Quarantine
- ISO Quality Certification (In-process)
Contact us now to discuss your pallet space needs!
US Dockworkers Strike
US Importers, Exporters and consumers are bracing for the impact of the first port strike on the east coast in almost 50 years that kicked off last night, 1st October.
The International Longshoremen’s Association (ILA) said Monday 30/9 that its wage demands were still not being met and that its 85,000 members, “joined in solidarity by tens of thousands of dockworkers and maritime workers around the world,” will hit the picket lines at 12:01 a.m. on Tuesday, Oct. 1, and strike at all Atlantic and Gulf coast ports from Maine to Texas.
The ILA is North America’s largest longshoremen’s union. The union said in a statement sent to the press on Monday morning that the U.S. Maritime Alliance (USMX) “continues to block the path toward a settlement on a new Master Contract by refusing ILA’s demands for a fair and decent contract and seems intent on causing a strike at all ports from Maine to Texas beginning in almost 12 hours.”
ILA Union Workers are spread throughout the ports of Boston, New York/New Jersey, Philadelphia, Wilmington, North Carolina, Baltimore, Norfolk, Virginia, Charleston, South Carolina, Savannah, Georgia, Jacksonville, Florida, Tampa, Florida, Miami, New Orleans, Mobile, Alabama, and Houston so the strikes are expected to cause a massive hit to supply chains and eventually consumers throughout the US.
The US Maritime Alliance said its latest offer would increases wages by nearly 50% over the six-year contract, and triple employer contributions to retirement plans. The offer also would strengthen health care options and keep current language that limits automation. The union has demanded 77% pay raises over six years to help deal with inflation. The work stoppage is expected to significantly disrupt the nation’s supply chain, potentially leading to higher prices and delays in goods reaching households and businesses if it drags on for weeks.
If drawn out, the strike would force businesses to pay shippers for delays and cause some goods to arrive late for peak holiday shopping season — potentially impacting delivery of anything from toys or artificial Christmas trees to cars, coffee and fruit.
The strike is likely to cause significant delays and increased costs for Australian Importers sourcing product from the US with one shipping line already announcing a USD 1500.00 per TEU increase on any containers in or out of US ports, as well as many Exporters looking to supply Australian goods into the US over the coming months. There is hope of a quick resolution between the two parties so stay tuned for further updates.
Harders Hosts the Bi-Annual Drinks Association Supply Chain Forum
Harders was proud to host the second Supply Chain and Logistics Forum for 2024 on Thursday, September 19 for the The Drinks Association in our Sydney offices. The event featured a full day of presentations, discussions, and networking, with a focus on current trends in the Australian liquor industry, supply chain insights from Advantage Group, and strategic workforce planning.
The forum kicked off with a Liquor in Focus presentation by Drinks Association Gold Partner, Circana, and featured a detailed analysis, delivered by Jarna McLean, Director of Health & Lifestyle. The presentation provided a deep dive into the industry’s latest trends, challenges, and emerging opportunities, offering a wealth of insights for stakeholders across the supply chain.
David McLoughlin, General Manager at Advantage Group, delved into the key takeaways from their 2024 Trade Survey, focusing on supply chain performance and emerging trends.
David shared the 5 biggest themes influencing the current Supply Chain agenda being:
- Supply chain sustainability
- Resilience and risk management
- Collaboration
- Technology and digital transformation
- Customer-centric supply chains
Rebecca Loch, Sustainability Lead at Lion and Chair of the newly formed Drinks Association Sustainability Council, shared the council’s strategic approach and ongoing initiatives aimed at promoting environmental and social responsibility within the industry.
The Sustainability Council’s mission is to inspire and drive positive change for both people and the planet. It seeks to achieve this through active engagement, education, and a commitment to continuous improvement.
It was another great session by the Drinks Association that Harders is proud to support alongside many of our beverage import and export customers.
Sea Freight Market Update
The trade volumes between China and Australia have shown a notable increase in the first half of the year compared to 2023, as indicated by port statistics.
Demand has remained strong on this trade route, with consecutive fortnightly price hikes ranging from $300 to 1,000 per TEU since the start of the year.
In contrast, rates on the Transatlantic and Transpacific routes are declining due to weaker demand, leading to an increase in cancelled sailings. This has paved the way for smaller vessels to be deployed into the Oceania trade, known as extra loaders.
The additional loaders are currently on their way from China to Australia. We expect 6 to 7 vessels to arrive in the next few weeks, with capacities ranging from 800 to 1,800 TEU. We understand these are already fully booked. This has helped to stabilize the demand and supply imbalance, and as a result, plans to implement another rate increase through the Rate Restoration programs announced to take effect on September 15 have not gained momentum.
Although blank sailings usually dominate the first week of China’s National Holiday (October 1 to 7) , this year only one blank sailing has been announced for October 8, with many carriers maintaining regular operations.
We are already seeing some pressure on the spot rates in the second half of September as carriers react quickly to reduce rates to attract more cargo.
Shipping lines have therefore started to advise that vessels are now over-subscribed until after the holidays, and as a result, we may see another round of rate increases.
Some carriers have already sent notices of impending rate hikes in the form of Peak Season or Rate Restorations from October 15, at a quantum of USD 300 – 500 per TEU.
We will keep you duly advised if these increases do take hold, as supply versus demand indicators will weigh heavily on this.
Please be aware that typhoon season in the Northeast Asian origins may contribute to potential cargo delays of at least 7 to 10 days. We may see continued schedule disruption with shipping lines omitting ports to restore schedule integrity.
It is important that you continue to schedule your bookings at least three to four weeks in advance, especially during Peak Season. This lead time will provide ample opportunity to receive the order, make the booking, and secure both the vessel and equipment.
Our experienced team is readily available to assist you in identifying the most suitable sailings and competitive options to meet your supply chain requirements.
Air Freight Update
Continuous demand growth driven by soaring e-commerce, ocean shipping disruptions, rising general cargo needs for high-tech semiconductors, and a low comparison base from last year. Despite mixed economic signals, high demand likely to continue into 2025 and beyond.
Global international air cargo capacity growth remains solid, primarily driven by Transpacific routes.
Global air cargo rates defy seasonal trends, hitting their highest level of the year due to a supply-demand imbalance. Air cargo industry anticipates robust peak season driven by holiday demand, expecting capacity pressure and higher rates.
The overall tone of the market remains very firm for the time of year, with some reports even proclaiming peak season commenced already.
Many Airlines report a lot of block space agreement capacity has already been signed up for Thanksgiving and Christmas, which could presage a big spike in spot rates later in the year.
Shippers / Importers are preferring long-term contracts for stability, competitive rates, and reliable operational performance.
Restrictions on Cargo from Unknown Senders: Cargo transported by air that originates from any of the 55 identified countries (across Europe and central Asia) that is destined for Australia (including transhipped cargo), weighing over 500g, lodged by a sender without an established business relationship, will not be permitted on passenger aircraft (PAX).
In the case of CAO, cargo air that originates from any of the 55 identified countries that is destined for Australia (including transhipped cargo), from unknown senders, weighing over 500g, may still be transported if it undergoes additional physical inspection. These additional inspections do not replace normal cargo examination and uplift requirements, which must also continue to be met.
We have weekly consoles from USA, Europe, China, and South Africa into AU. Please contact our team of supply chain professionals who will continue to provide you with the most competitive options to support your supply chain needs.