Supply Chain Council of European Union | Scceu.org
Freight

Virus is the ‘GFC for transport’, truckies say

The Port of Brisbane told The Australian Financial Review it was too early to assess what impact COVID-19 would have on volumes. “However, we believe the disruption to Chinese supply chains and other restrictions in place, as well as the hit to confidence more broadly, will have a significant economic impact,” a spokesman said.

NSW Ports, which operates Port Botany and Port Kembla, said it had seen disruption to usual trade flows with China due to the virus. “This will impact on volumes for February and March. However, as Chinese factories return to work, productivity returns and China’s major seaports return to normal, we expect this disruption to reduce,” a spokeswoman said.

Hutchison Ports, which operates terminals in Sydney and Brisbane, said it had seen fewer ships call at its terminals and was giving workers face masks, sanitisers and gloves to limit the spread of the virus.

Shipping line APL, which is part of French shipping group CMA CGM, this week said manufacturing activities in China were gradually picking up and port workers and truck drivers were returning to their posts. “Business operations have now entered the recovery phase,” the company told customers.

‘The disruption to Chinese supply chains … as well as the hit to confidence will have a significant economic impact.’

Port of Brisbane spokesman

But Freight and Trade Alliance head of business operations John Park said Australian companies were still dealing with a slowdown in imports.

“This would not normally be the case this long after the end of the normal Chinese New Year,” he said. Operating hours at some sea freight terminals were being reduced due to the lower volumes of containers and some businesses had arranged for staff to take accrued annual leave, Mr Park said.

Road Freight NSW chief executive Simon O’Hara said trucking groups had seen volumes drop by as much as 80 to 85 per cent, particularly in freight from China.

“Unless manufacturing comes online very soon from China, the volumes of freight coming into the port may drop further to lows that the Australian freight industry would be unfamiliar with in recent memory,” Mr O’Hara said.

Chemical manufacturers were finding it difficult to source supplies. One-fifth of the ingredients needed to make chemicals were not flowing through the supply chain, he said.

The CTAA has asked stevedores operating in Australia to allow transport and logistics companies to delay paying port fees and to take “a sympathetic approach” to companies that can demonstrate genuine financial distress due to the COVID-19 crisis.

Stevedore Hutchison said it was willing to work with transport groups to extend payment terms. Patrick and DP World did not respond to requests for comment.

Transport groups have been fighting the freight companies over big increases in fees to enter container ports.

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