IMPACT OF COVID-19

The impact of COVID-19 is causing local, state, and national governments around the world to issue work and travel restrictions on a daily basis, which are impacting our ability to deliver all the orders on time.

The global effects of COVID-19 have resulted in schedule delays across shipping and airfreight industries which has resulted in an impact on the the listed lead times of many of our products, the majority of which are shipped to us from Europe or China. On average, we are experiencing a 5-6 week delay on product lead-times from China (including delays in China and AU/NZ) and 3-4 week delay on product lead-times from Europe (including delays in Europe and AU/NZ). Your sales representative will give you an overview of the delays likely to be incurred when you order.

For up-to-date information on shipping delays, please refer to the information outlined below:

o The increase in demand of export goods from China globally, without a reciprocal demand for imported goods into China has two significant effects to shipping

            1. Reduction in available containers worldwide, as empty containers remain in China. In Shenzhen port alone, there is a current shortage of 5,000 containers.

            2. Vessel schedules are clogged particularly around the southern ports. There is currently an excess of vessels floating around the southern Chinese ports.

o Port closures in China, due to ongoing COVID-19 threat, have also increased pressure on remaining open ports and schedules. o Average berthing time (time a vessel is spent at a port) has increased from 3-4 days to approximately 16 days.

o The flow on effect from China is starting to appear in Europe, with container shortages and vessel schedules at full capacity

o Delays from China also affect arrival of parts, delaying total production times for some manufacturers.

o Note - also the European Summer holidays have just started, adding up to 4 weeks to standard lead times depending on individual brands.

o Greater imports into Australia and New Zealand have resulted in congestion in local ports. This has resulted in:

           1. Vessels skipping ports altogether e.g. A vessel skips Auckland, lands into Tauranga, and delays result in the product having to be freighted back to Auckland.

           2. Clearance times for containers has increased from an average of  7 days to 10-14 days.

o Unions stopping work at different ports has also placed greater pressure during operating hours and schedules.

o Airfreight has already been impacted from flight reduction, but further reduction in passenger arrivals announced recently effect

          1. Time for airfreight to arrive

          2. Cost to airfreight – recent quotes have doubled in price.

If you are concerned about the lead-time of your order or have any questions, please contact us and we will be happy to help.