Increased freight costs, late deliveries and cancelled orders. These are issues an importer does not want to have to deal with at any time of year. Now we are into Peak Season Shipping – the most difficult period to navigate these challenges.
Traditionally, the peak season spans from August to October, however challenging situations brought it forward a month early in 2024, with the ending still unpredictable.
As always, with challenges come opportunities. Flexibility and agility remain key. Control what you can (like ordering early) to offset what you can’t (like delays from port congestion).
Container shipping lines can increase their rates when demand is at a high peak. The ones to watch out for at this time of year are: General Rate Increase (GRI), Peak Season Surcharge (PSS) and Rate Restoration (RR).
Geographical instability has disrupted ships’ schedules and re-routing around the Cape of Good Hope instead of the Suez Canal has blown out transit times by 30%. When vessels arrive off-schedule, it causes container backlogs at transshipment ports. Additionally, operational costs such as fuel and wages have risen by 40%.
Carriers have already hiked costs for the 2024 peak shipping season, most in the order of several hundred U.S. dollars per 20’ container. More are likely through to the end of the year.
GRI, PSS and RR that have already been imposed include:
- Import PSS from Far East and South East Asia to Australia
- Export PSS, Australia to USA, EC and Central and South America
- Export PSS Australia to West Central Asia, South Africa and Indian Ocean Islands
The good news is that this year’s early start could mean an earlier end to the peak season, with rates and pressure on capacity dipping in October. However, ship diversions look set to continue for some time. If they are still in place for Chinese New Year (January 2025) we could see the same pattern with an earlier than usual shipping demand pre-CNY shutdown.
By now, anybody expecting stock for Christmas will most likely already have it in transit. There are a few simple steps you can take to ensure smooth sailing:
– Give us a copy of your order as soon as you place it with your supplier.
– Let us know if you are working toward a seasonal deadline.
– If cost is more important than time, we can discuss options, including transhipment.
– Give us shipping documents as soon as you get them so we can clear in advance of arrival.
Communication is key – it is important to remain informed, adaptable and prepared for all contingencies. Colless Young will continue to work with you on providing the best available rates and service options to suit your supply chain needs.
For up-to-date information about shipping in the peak season, talk to Andrew at Colless Young, email enq@collessyoung.com.au Tel: +61 7 3890 0800.
As licensed Customs Brokers and Freight Forwarders we offer correct, professional advice on all your international shipping and transportation requirements. We are based in Brisbane and provide a complete range of logistics services, both airfreight and sea cargo, through all Australian ports and airports.
