Ballooning shipping container costs, unpredictable arrival dates and the US Postal Service suspending most of its deliveries to Australia are among the freight headaches for businesses this year. Ports account for 98% of Australia’s trade, according to Ports Australia, and the pandemic continues to be a seismic disruptor to supply chains that involve ocean voyages directly and indirectly. Apart from the impact of COVID-19, there are also only a few fully automated terminals around the world. Slower workflows could also be due to Australian port workers being highly unionised and able to take protected industrial action under the Fair Work Act 2009.

So what are your other options to move freight?

Unfortunately, air, train or Silk-Road alternative freight routes now have higher tariffs and limited capacity. Supply chains are buckling, causing disruptions to and jeopardising the functioning of our economy, national security, as well as Australians’ wellbeing. It has been suggested managing upstream supply chain risks by stockpiling, diversifying markets and suppliers, and developing domestic capacity. With Australia already importing over $13B of goods, equaling nearly a quarter of all our manufactured imports, from China in 2021, this is expected to triple this year. The deluge is seeing Australian retailers forced to order supplies up to 18 months in advance, but they face unpredictable delivery time frames

Managing these risks with insurance cover protects you for:

• Loss or damage to the vessel or your goods while they’re in transit
• Moving the goods from producer to retailer
• Transporting stock from warehouses and stock transfers.

We can guide you on whether an all-risk policy or named perils policy would be the best fit for your business. An all-risk policy is broad, so it protects you against all losses except those the policy expressly excludes. Meanwhile, a named perils policy covers explicitly named perils, typically burning, sinking, stranding and collision. Let us help customise cover for you in these uncertain times.

If you would like to know more about how to protect yourself against the unpredictable freight costs, please click here to read more, or feel free to contact us.