Industry Update – Force Majeure Notice

Attention: Shipping Manager

 

Force Majeure Notice

Dieterle & Victory wishes to advise all customers of a Force Majeure Notice which will have repercussions on container transport operations and all associated fuel supply chains.
The situation in the Middle East is causing significant disruption to international energy markets, directly affecting Australian domestic freight costs through fuel pricing, with the conflict likely to continue for at least a few more weeks.
As container transport logistics in Australia is reliant on diesel fuel, rising diesel prices affect the entire container freight supply chain.
At this stage, we are receiving changing fuel notices hourly in some cases, which highlights the fluidity of the situation. Due to this instability, frequent monitoring and adjustment is necessary.
Please note that the increasing fuel surcharges do not represent an increase in margin for our business, but reflect the rapidly rising costs being passed through by our suppliers, and it is necessary for us to ensure our operating costs are covered so we can continue to move cargo to its destination and maintain efficient service for our customers.
Please also note that as operating costs continue to rise, Dieterle & Victory will be taking a stringent approach to debtor management. We encourage all customers to review their account balances and ensure they are aligned with agreed payment terms, as we are unfortunately unable to provide extensions of account terms.

• Destination Fuel Surcharge Increase

As fuel price volatility continues to rise, Destination Fuel Surcharge has increased in all ports, effective immediately. Updated surcharges are given below:

Sydney Fuel surcharge = 41.5%

Melbourne Fuel surcharge = 45%

Brisbane Fuel surcharge = 45%

Adelaide Fuel surcharge = 45.5%

Fremantle Fuel surcharge = 37%

The fuel surcharges will continue to be applied based on the applicable rate during the period in which the transport movement takes place. Where services span multiple days, the surcharge may be adjusted to reflect the rate in effect on each day of the movement.
Given the volatility of the price of fuel, we will continue to assess these surcharges weekly and keep you updated. However, if you would like to clarify the latest updates, please contact your sales representative.
We understand the pace of these changes is challenging, and we appreciate your understanding while we navigate this critical and uncertain global economic period/exceptional market conditions.

We will keep you updated once further information becomes available.

 

Regards,