Sydney Port Congestion: Empty Container Parking and Vessel Delays
The port of Sydney, Australia is currently experiencing severe congestion. The congestion has been caused by multiple factors including industrial actions and bad weather. As a result, the congestion has caused significant vessel delays, Sydney port omissions and change of vessel rotations.
Due to an increase in costs, ocean carriers have introduced a Sydney Port Congestion surcharge of USD 280-350 per TEU (Twenty-Foot Equivalent) for any cargo to or from Sydney.
Unfortunately, this surcharge also means that LCL (Less Than Container) rates will increase by USD 13 w/m for cargo to or from Sydney.
The ongoing issues have prompted shipping line Maersk to temporarily cease accepting any bookings to Sydney until at least Thursday, October 1, 2020.
With this port congestion, Sydney is also currently facing a problem with their empty container depots which have reached their capacities. Some have closed their doors for dehiring or returning empty containers.
It’s estimated there is currently an imbalance of approximately 30,000 TEU in Sydney. Under normal circumstances these containers would have been re-used or repositioned to Asia. But with a variety of issues, including the COVID-19 pandemic, shipping lines have not been able to move out enough empties to alleviate the congestion.
Many importers are currently facing extra detention charges as their transport companies are unable to dehire containers in a timely manner. It’s anticipated shipping lines will dedicate some export vessels to reposition empty containers throughout October and/or November to hopefully solve this problem.
Should you need advice or consultation regarding any of these measures, the experienced shipping and logistics professionals at DGX stand ready to help. We offer a unique package of shipping services. Please email us, reach out to your local office or call toll free in the USA 1-800-488-4888 and we can help you.
We specialize in international ocean and air freight shipping since 1999.