Global supply chain update - November 2021
Given the current challenges with global supply chains and their fragility being exposed by the pandemic, we want to ensure your business can front foot the conditions ahead.
In this update we cover off three key areas:
- Carrier Trends
- Ports Congestion
- Chinese New Year
Tracking: Carrier Trends
Where there is demand, supply is sure to follow.
- US imports are so strong that American consumer demand is pulling available capacity away from other trade lanes, disrupting global supply chains.
- Small carriers getting a bigger piece of the pie. High Transpacific market pricing is attracting new capacity from shipping lines such as BAL, CU Lines, and Translink.
Tracking: Port Congestion
Berthing delays - USA
Both West and East Coast Ports of North America are facing significant congestion highlighting the strain the US supply chain is currently under. Terminals are overflowing with containers - which means they no longer have space to take in new containers either from ship or land.
A record high of 100 ships floating off the coast of Southern California are waiting to enter and unload cargo (40% of US imports are handled by the ports of Los Angeles and Long Beach).
An executive order overriding the zoning rules in Long Beach and Los Angeles is in place to allow truck yards to store empty containers up to six feet high instead of the current limit of two, and expand working hours as per below:
- Port of Los Angeles will remain open 24/7.
- Port of Long Beach has been running 24/7 for weeks.
The port of Los Angeles and Long Beach will begin charging an Emergency Fee from 1st November on all long-dwelling cargo that remains at the terminal for 9 days or more and rail containers for 3 days or more.
Berthing Delays - AU
Industrial action is still in place at Patrick terminals across Australia and delays are expected to increase. Please see the average days delayed at the terminals below:
- Sydney - averaging 1 day delay
- Melbourne - averaging 4 days delay due to reduced labour availability from COVID cases and isolation requirements
- Brisbane - averaging 5 days delay
- Fremantle - averaging 8.5 days delay, primarily due to industrial action
Berthing Delays - EU
Delays at ports continue across European ports, forcing vessels to anchor in clusters in the English Channel and the North Sea. Schedule reliability has remained low.
Year of the Tiger
Get Ahead: The Chinese New Year is 31st Jan 2022
We've been informed by our partners to expect a surge in production orders after the Chinese New Year, as has been the case in previous years.
The holiday will run from 23rd Jan 2022 to 10th Feb 2022.
Scenario Planning 1: Before 25th Nov 2021
- Place orders before the 25th November 2021.
- Once payment has been confirmed, production will be scheduled and shipping will take place before the Chinese New Year.
Scenario Planning 2: Before 26th Nov 2021 onwards
- The order will be completed and shipped after the Chinese New Year.
Please note: This is where we expect to see a variance in actual delivery times.
What's next?
The arrival date will vary depending on the actual production schedule as partners experience a wave of orders after the Chinese New Year.
Our advice is to place your next order with the least amount of possible delay.
If you have any questions, please feel free to contact your Account Manager or contact our Operations team at operations@groundedpackaging.co or get ahead for the new year and place your sustainable packaging orders now.
