Global shipping delays, particularly in the Port of Singapore, are pushing out shipping schedules and resulting in significant delays which could start to impact Christmas shipments, according to a leading Australian freight-forwarder.
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Ongoing rerouting away from the Red Sea is resulting in significant bottlenecks in Singapore, which have been exacerbated by increased demand from US buyers ahead of the introduction of China trade tariffs, as well as container shortages and bad weather in some areas.
Brian Hack, managing director at Cockburn-based EES Shipping, said while delays at the world's second bigger port would have an impact globally, it could be a major issue here in WA.
"Unfortunately, geography dictates that almost all freight heading to Fremantle must come via Singapore," Mr Hack said.
"What we're seeing currently is that shipments are either being held up in Singapore or coming to Fremantle via the east coast of Australia in an attempt to bypass the bottleneck, which can add another three to four weeks travel time.
"Neither situation is ideal."
Mr Hack said the delays would play out across all industries, including agriculture.
"We're strongly encouraging clients to look at their calendars and order well ahead, whether that's spare parts for machinery for harvest or retail goods for seasonal events later in the year like Halloween or Christmas ," he said.
While the delays are frustrating, Mr Hack said there would be other broader implications:
Price hikes - freight rates are already increasing on US and Europe routes, which is likely to start putting pressure on the price of goods.
Australian exports, particularly to US and European markets are also seeing freight rates increase.
Inflationary pressures - at a time when Australia is watching the inflation rate closely, flow-on price rises as a result of increased freight rates could potentially add to inflationary pressures.
Vessel bunching - Fremantle Port is experiencing a flow-on effect of Singaporean delays in the form of vessel bunching, where a number of ships arrive in a short time period, causing delays in unloading and landside transportation.
Increased delays at peak season - which for ocean shipping usually begins around August, as demand starts to increase ahead of Christmas.
Some in the industry are suggesting peak season has begun early this year, particularly on US and European trade lanes, which could potentially mean increased delays for Australia during the 'traditional' peak periods.
