March Connected
16th March, 2023
China FCL rates and Blank Sailings
It seems we have found the bottom of FCL rates ex China, short of the shipping lines paying us to carry your important cargo. The reality is that these low rates are not sustainable and do have an impact on the movement of goods, there will need to be some increases as this year progresses. We continue to see increasing blank sailings, this is an outcome from low volumes and low rates.
For importers considering or have already locked in fixed rates with one shipping line, you will likely be affected more than those that continue to utilise a spread of ocean freight carriers. The lack of flexibility with bookings in this environment will impact your lead times. Whilst the blank sailing uncertainty continues, ensuring you have access to several booking possibilities will allow the most efficient movement of your goods. At SCC we are monitoring this situation on a daily basis with our Chinese freight partners, if you are requiring our detailed advice on your current arrangements and what is the best solution please reach out to us on sales@sccargo.com.au
Nhava Sheva (India) Port Upgrade
Nhava Sheva port is located in Mumbai India, it is a key gateway for sea trade with India.
To assist the India trade push, the Nhava Sheva Freeport Terminal will have USD131M invested for necessary port upgrade. The Upgrade will expand the terminals container handling capacity and importantly attract vessels with more carrying capacity. The significance for Australian traders is with many seeking manufacturing arrangements separate to what is in place with China, the infrastructure must be enhanced in India to ensure the services can support such a change. At SCC we are working with our Indian partners to support our customers on this trade lane, the Australian and Indian Governments are both investing a lot of time and resources to support the recent signing of the free trade agreement between our two countries. If you are requiring assistance or guidance on trade with India, please reach out to us on sales@sccargo.com.au
SCC and Sustainability
As part of our broadening sustainability initiatives here at SCC, the United Nations has confirmed our commitment to the UN Global Compact, the worlds largest corporate sustainability initiative. We join over 17,000 companies (including companies like Green Worldwide, DHL, Unilever, Amazon etc) globally in our commitment to the 10 principles which cover human rights, labour, environment and anti-corruption. The underlying premise here is the importance placed on making global goals local business – driving awareness and responsible action by businesses.
You may ask why it’s important for a small freight forwarding company here in Australia to confirm our commitment to this initiative. But small to medium sized businesses like ours are crucially important to the health and stability of the global economy – we make up roughly 90% of all firms and are responsible for some 50% of employment worldwide according to the World Bank. We can also drive change and innovation often far faster than many large conglomerates. We are also however more susceptible to the risks associated with poor economic health – both financially and socially. We are not just responsible for our own outcomes but have a responsibility to push for better outcomes globally, particularly because we have such a reach across so many different industries. This is not just a piece of paper, as instructed by the UN – credibility and accountability are critical factors because we have to document our initiatives and actions every year with our Communication on Progress.
WCA Conference – Singapore
Two of our Directors, Vanessa Richards and Greg McKillop recently travelled to Singapore to attend the World Cargo Alliance (WCA) annual conference. After several years of zoom calls, it was great for all participants to be able to shake hands and hold robust conversations on all things International trade. Vanessa and Greg attended 70+ meetings between them. Taking time to meet with many of our current global freight partners and forge some new working relationships. Our trade lane management is critical to the successful running of our business and provides the necessary infrastructure for us to manage your important cargo.
