OOCL Booking Suspension and other Carriers Limiting Cargo Volume to Sydney

Attention: Shipping Manager

We just heard from our German partner overnight that they received a notice from their local OOCL office in Germany advising about the Suspension of South Bound Bookings to Australia. The reason given was similar to COSCO that their South East Asia service network has been severely disrupted as a result of ongoing Industrial Action at Australian Port terminals. They are also facing delays of two to three weeks on this trade route and anticipate the situation to worsen further. As OOCL’s European Cargo tranships via South East Asia, they have made this decision to immediately stop all south bound bookings to Australia from/connecting via South East Asia. So far, South East Asia and European services are affected by this announcement.

Additionally, some shipping lines have also started reducing their imports into Sydney as a result of port congestion and ongoing Industrial Action. They have placed allocation limits for the maximum amount of space they can offer for Sydney bound cargo which will further impact imports to Sydney. As of now, there aren’t any similar restrictions for other ports but if the situation keeps on dragging like this, we might see this change. We hope that the Fair Work Commission will intervene in a timely manner to help resolve these disputes which are having a devastating impact on Australian supply chains.

We also had a number of our upcoming bookings cancelled from Malaysia/Singapore which were with COSCO as a result of their last Friday’s announcement.

We will keep you informed as soon as we have any further updates. If you are concerned about any of your upcoming shipments, please contact your Customer Service Representative for the best course of action.