Red Sea, DP World & VICT Protest updates
Dear Valued Customer,
Red Sea Update
Attacks on ships in the Red Sea continue to push ocean freight rates higher, triggering warnings of inflation and delayed goods. To avoid strikes by Iran-backed Houthi militants based in Yemen, carriers have diverted more than $200 billion in trade over the past several weeks away from the crucial trade route of the Suez Canal and Red Sea. This has Created a multi-front storm for global trade. Freight rates are increasing daily, additional surcharges, longer shipping times and equipment shortages as vessels travel the long way around South Africa’s Cape of Good Hope.
DP World Update
Protected Industrial Action (PIA) by the Maritime Union of Australia (MUA) continues to impact vessel processing in Australian ports. With the extensive delays, shipping lines have began cancelling services to Australia with 13 of 69 Chinese container vessels bound for Australian ports now cancelled. These cancelled services will put further pressure on transit times and space availability which are already leading to increased freight rates. The Federal Labour government continues to refuse getting involved in the dispute with the union despite numerous and ongoing requests from DP World.
VICT Port Remain Closed
Victoria International Container Terminal (VICT) has been closed since Friday 19th January as pro-Palestinian protesters block the terminal entry gates, targeting Israeli shipping company ZIM. The port shut down has brought operations to a standstill, leaving a reported 55,000 containers stranded on ships. Notice has been received this morning that VICT will also remain shut down for the next 24 hours with staff not able to access the site. With many vessel re-routed from DP World to VICT due to protected industrial action, these protests add further pressure to an already strained Melbourne port system resulting in further delays with no access to incoming containers.
Should you have any queries, please do not hesitate to contact
your assigned Customer Service Representative or Business Development Manager.
Yours faithfully,
ADM Global Pty Ltd | +61 3 8336 0800 | www.admglobal.com.au
