covid19 | port supply chain update · 2020. 4. 26. · updated | 24 april 2020 covid19 | port...

COVID19 | Port Supply Chain Update24 April 2020

Port of Melbourne Operations Pty Ltd

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UPDATED | 24 April 2020 COVID19 | PORT SUPPLY CHAIN UPDATE

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DISCLAIMEROverview

This material is provided as a platform for general discussion across industry and Port of Melbourne Operations Pty Ltd (PoMO).

The general information and updates presented in this document are provided with the intent to share understanding and awareness of the operations of the port supply chain during

COVID-19, potential supply chain constraints and to assist in contingency planning measures.

This material is provided for background information purposes only.

Disclaimer

This material has been prepared by the Port of Melbourne Operations Pty Ltd (PoM) on behalf of the Port of Melbourne Group (PoM Group) for information purposes only. This is a

proprietary PoM Group document and is not intended to be relied upon by any person or organisation other than the PoM Group, its employees and its authorised contractors and

representatives. The PoM group accepts no liability for any reliance by any third party on the information contained in this document.

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OverviewPort of Melbourne Operations Pty Ltd in collaboration with industry is undertaking preparatory planning to ensure that the efficiency of our port freight and logistics systems are not overwhelmed by the current coronavirus situation.

The current situation is resulting in trade and economic influences on our port freight supply chain that are likely to cause disruptions to normal business, some of which are having flow through effects on different parts of the supply chain.

Our aim is to share information and industry insights and to anticipate potential disruptions so that we can collectively minimise the effects on individual businesses and keep freight moving.

This update presents the collaborative input of a number of supply chain participants in an effort to anticipate and overcome potential supply chain constraints.

We welcome industry feedback and input as we respond to and plan activities within the changing environment.

Brendan BourkeCHIEF EXECUTIVE OFFICER

PORT OF MELBOURNE

HEAD OFFICELevel 19, 839 Collins Street Docklands Victoria 3008AUSTRALIA

+61 1300 857 662

[email protected]

@portofmelbourne.com

PortofMelbourne.com


https://au.linkedin.com/company/port-of-melbourne

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COVID 19 –Supply Chain Trends & Influences


Port operations in China, Australia’s largest trading partner, are improving and are slowly returning to normal.

The COVID-19 pandemic is however, causing supply chain issues in many other regions including Australia.

Initial discussions with industry suggest that we are currently in “Wave 2” which has the potential to generate constraints on the back of increased import volumes.

This planning work aims to:

1. Highlight potential constraints across the supply chain and raise awareness.

2. Identify potential opportunities across the supply chain to overcome any challenges.

3. If YOU have excess capacity you can reach out to PoM and we can include these opportunities in the next update.

4. If YOU need additional capacity YOU can reach out to the contacts identified in this update or contact PoM to discuss your needs.

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Trade Update


Port of Melbourne (PoM) trade update as at Wednesday 8th April 2020

• Container trade volumes for March 2020 showed an increase over last month (February 2020), reflecting the view that the processing of the cargo backlog out of China would start to flow through.

• The overall Financial Year to Date (FYTD) container volumes at March 2020 were slightly below the previous corresponding period (July 2018 to March 2019), with full container imports being down 4.4% and full exports down 2.5%.

• FYTD March 2020 empty container volumes finished 4.9% below FYTD March 2019.

In terms of the impact of recent events on the PoM supply chain:

• PoM has 7 container vessel services calling directly between Melbourne and North Asian (primarily Chinese) ports. China is our biggest trade partner accounting for around 40% of overseas full container imports and 25% - 30% of full container exports (based on 2019 trade results).

• The 7 North Asia services have cancelled a total of 39 vessel sailings (‘blank sailings’), between February and July (actual or planned). This is significantly more than for the same period in 2019. Some container cargo has been consolidated on other, substitutable services.

• We understand that containers held up in Chinese ports during their lockdown period will be received in Melbourne from mid-April to May, which may assist with some higher weekly volumes.

• Reports from landside transport industry and shippers state that DC’s are filling up with import inventory of products as retail sales slow (e.g. furniture, whitegoods and other retail goods). Logistics associated with grocery and other related product lines are experiencing high volumes.

• Manufacturers are ordering buffer stock (material inputs into production) in anticipation of supply chain restrictions: this may assist in sustaining volumes in certain trades (for example chemicals)

• It is estimated that 10-15% of PoM’s container trade volumes are derived from discretionary purchases which are expected to be impacted by a retail slow down.

TEU (‘000) FY18 (EOM Mar) FY19 (EOM Mar) FY20 (EOM Mar)

Import full containers 903 933 892

Export full containers 573 521 508

Bass Strait full containers 148 152 155

Transhipment 117 128 102

Empty containers 458 550 523

TOTAL containers 2,199 2,284 2,180

Port of Melbourne containerised volumes – FYTD March comparison

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Commodity Update


FYTD FY20 – Commodity Profile

• Our import and export commodities are comprised of a range of different products. All of these products need to move efficiently through the port supply chain so that there is sufficient capacity at the port to support export markets and ensure high demand import products can make their way to the end user.

• These graphs demonstrate the diversity of cargo handled in containers (percentage contribution).

IMP

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EXP

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Aluminium, Newsprint, Machinery, Cotton, Wheat,

Vehicle Parts, Metal Manufactures, Hides, Skins, Zinc, Iron & Steel, Pet Food,

Chemicals, Non-Metal Minerals, Furniture, Textiles,

Medical, Rice

Aluminium, Chemicals, Transport Equip, Iron &

Steel, Newsprint, Petrochem, Meat,

Fertilizers, Zinc, Pulp & Wastepaper, Ag

Machinery, Medical, Pet Foods

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Contingency Planning Approach


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UPDATED | 24 April 2020

1 Contingency Planning COVID19 | PORT SUPPLY CHAIN UPDATE

Existing Market Capacity that could be utilised

Through discussions across the supply chain there are a number of existing sites and facilities that could be utilised for immediate storage requirements.

Utilising existing capacity within the market will help to manage development costs of establishing new surge capacity sites.

Provided here are some examples of the types of sites that are available.

If there are additional sites available in the market that can be made available, please share with our team and we can raise awareness across supply chain industry.

1. RESPOND

If there are additional sites available in the market that can be made available, please share with our team and we can raise awareness across supply chain industry.

COMPANY SITES USES

PORT SITES

Patrick Terminal Swanson Dock East Full container laydown

CargoLink Appleton Dock Road Empty container laydown

VICT Webb Dock East Full container laydown

Qube Logistics Vic Dock & Dynon Full and Empty container laydown; Bonded

ACFS Appleton Dock Full and Empty container laydown; Bonded

METROPOLITAN SITES

CBRE South East Various warehouse capacity

CBRE Inner West Various warehouse capacity

CBRE Fishermans Bend Various warehouse capacity

SCT Logistics Altona Warehouse. Full and Empty container laydown

Salta Properties Altona & Lyndhurst Warehouse. Full and Empty container laydown

Austrak Somerton Warehouse. Full and Empty container laydown

Melbourne Airport Melbourne Airport Car storage & warehouse storage

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# SIZE AVAILABILITY USE

1 1.9 Ha Vacant Full or MTs


3 2.4 Ha May Full or MTs



6 1.0 Ha Vacant MT’s

7 0.7 Ha Vacant MT’s

8 1.8 Ha Vacant Cars or containers


10 TBC Vacant Cars

11 TBC TBC MT’s



14 TBC Vacant Cars

15 TBC Vacant Cars



Port / near port areas that could be explored for additional surge capacity

2. PLAN

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Outer metro surge capacity that could be explored for additional capacity

# SITE AVAILABILITY USE CONTACT

20 8 Ha Hardstand -also buildings

Vacant – former Ford factory

Containers or Cars

CBRE

20 Austrak Somerton Business Park

Subject to discussions with Austrak

Container hardstand and warehousing

Austrak

21 Large range of vacant warehouses in SE Melbourne

Vacant Containers or Cars

CBRE

21 Salta Properties Industrial Estate in Lyndhurst

Subject to discussions with Salta Properties


Salta Properties

22 Potential sites in Melbourne Airport – Car pavements & warehouses (up to 10,000 sqm)

Vacant Cars &storage

Melbourne Airport

23 Salta Properties Industrial Estate in Altona

Subject to discussions with Salta Properties


Salta Properties

23 SCT Logistics Altona IntermodalPark

Subject to discussions with SCT Logistics


SCT Logistics

2. PLAN

22

20

21

23

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Planning for supply chain recovery

As we progress through the COVID-19 situation, we would welcome industry feedback on:

• What are the likely scenarios in a post-crisis recovery environment?

• What might the supply chain require?

We welcome industry feedback on the types of issues we should be considering in a post crisis, recovery environment.

3. RECOVER

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This planning work aims to:

1. Highlight potential constraints across the supply chain and raise awareness.

2. Identify potential opportunities across the supply chain to overcome any challenges.

3. If YOU have excess capacity you can reach out to PoM and we can include these opportunities in the next update.

4. If YOU need additional capacity you can reach out to the contacts identified in this update or contact PoM to discuss your needs.

PoM Contacts:

Charles CornishSupply Chain

Vlad JoticBusiness Development

Chi YongSupply Chain

Neil HernanProperty

PHONE 0417 298 386 0418 500 573 0409 739 567 0409 354 883

EMAIL [email protected] [email protected] [email protected] [email protected]

Chris RyanAll regions

Don ForsdykeAll regions

Rebecca McLellanTasmania

David BardosSouthern NSW

PHONE 0412 254 030 0407 930 938 0417 608 512 0428 024 161

EMAIL [email protected] [email protected] [email protected] [email protected]

What can you do?


mailto:[email protected]








covid19 | port supply chain update · 2020. 4. 26. · updated | 24 april 2020 covid19 | port...

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