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April 2020 Update

Posted on 29 April 2020
April 2020 Update

We hope this information finds you safe and well, please see the latest updates relating to your international Supply Chain. 

Airfreight:

With the reduced capacity from the impact Covid-19 has had on international flights, we are still seeing very high freight rates for air cargo and an increased demand for space as a direct result of the major reduction in airline capacity.
 
Whilst there can be some delays in securing a booking for cargo compared to pre Covid-19, we are regularly moving airfreight for our clients and have seen some slight improvement in transit times over the last week.
 
Your Scorpion representative is available to source and research options for you to meet your urgent cargo needs as per usual so please do not hesitate to reach out to us for advice, quotations or an in-depth discussion on the best options for your cargo.  

Sea Freight:
 
Seafreight demand is steady and freight rates continue to increase with more General Rate Increases expected to be announced In May. There may be some rate relief at the start/end of June depending on how the Covid-19 situation unfolds.
 
Sailings are still moving regularly from China and USA with a healthy request for space whilst other countries, especially the ones hardest hit by Covid-19 are seeing some service disruptions due to shut downs with delayed departure dates.
 
An additional lead time of 2-4 weeks may be required for orders from some countries and we are happy to review this with you on a case by case basis to find the best sailing options for your orders to ensure your supply chain runs smoothly.

Container Dehire:
 
With global demand overall on the decline there may be less equipment available in Australia in the next quarter due to fewer sailings over the last two months of import cargo.
 
This means that shipping lines will now, more than ever, require their containers to be dehired within the free period, especially special cargo such as refrigerated containers that are needed to ship food and temperature controlled medical supplies. General purpose containers will also need to be put back in circulation as quickly as possible.
 
If you require additional free time for a container (Standard period is between 7-8 days) please let us know and we will apply on your behalf with the shipping line for an extension.
 
We are much more successful if we apply for this at the time of booking as shipping lines rarely grant additional free time once the equipment has arrived at its destination.
 
Where possible please check if you need longer than usual to empty your containers due to any disruptions to your normal operations caused by social distancing, reduced staff onsite, etc.

BMSB Season:

To end on a happy note, the Brown Marmorated Stink Bug season is coming to an end as of the 31st May. 
 
This means we will get some relief for a few months of the additional cost and extra lead time required to fumigate goods and containers from high risk countries until the 2020/2021 season begins in September.

We would like to thank you for your continued support in allowing us to assist you with your supply chain needs and we look forward to getting through this challenging period together.

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