Omicron puts severe strain on Australia’s logistics container chain

The Australian logistics container industry is facing an enormous strain, with the new COVID-19 Omicron variant adding on top of existing supply chain challenges.

The Container Transport Alliance Australia (CTAA) has said that the rate of infections has affected all parts of the country’s container logistics chain, resulting in staff shortages, terminal congestions, and significant competition among transport operators to secure vehicle booking slots.

“Container transport operators across Australia have reported to CTAA that they are experiencing between a 5% to 20% reduction in available staff, including heavy vehicle drivers, warehouse staff, forklift drivers, container unpack crews and administration, due to COVID infections and isolation requirements,” said Neil Chambers, Director of CTAA.

“In some extreme cases this rises close to 50% of available labour,” Chambers said.

“Compounding this are staff shortages at customers’ premises, as well as at international container stevedore terminals and at empty container parks across Australia, significantly delaying the movement of containers through the supply chain,” he said.

“As a result, transport operators are reporting operational capacity constraints, with transport yard operating between 70% to over 130% capacity.”

He explained that this is particularly acute due to the delays in customer deliveries, and the constant need to stage empty import containers through transport yards while trying to secure de-hire slots at clogged empty container parks or container terminals that have reached capacity to receive returns.

Chambers also observed that “the current supply chain delays and the severe impact of COVID infections seem set to continue well into 2022.”

“DP World Australia has notified industry that approximately 10% of its workforce are impacted through either having contracted COVID-19 or are isolating at home with a positive case in their household,” he said.

“DP World says these numbers may increase as Australia works through the current COVID-19 wave.”

Chambers also said that vessel berthing delays at container terminals across Australia are still of significant concern, impacting all
of the major stevedore companies.

“These delays are being felt most acutely in Sydney and Melbourne, with delays of between 2 up to 9 days, while a heat wave in WA is now affecting terminal productivity in Fremantle,” he revealed.

Source: CTAA