Another supply chain crisis like the one experienced during the pandemic, and again this year after floods cut the WA-east coast rail connection, will hit once more in 2024.
International supply chain expert Kelly Crossley, owner of Transitainer WA, said recently imposed US tariffs on Chinese imports were impacting the availability of containers and ships, and increasing congestion in major ports like Fremantle and Singapore.
A supply chain crisis, like the one Australians experienced during the pandemic is looming for WA.
She said the crisis would worsen in the months leading up to Christmas and consumers could expect higher prices, delivery delays and empty shelves.
“Two weeks ago, the US announced it was slapping severe tariffs on a broad range of Chinese imports, from electric vehicles and solar cells to steel and aluminium products,” she said.
“To beat the August 1 deadline for the new tariffs, Chinese exporters are rushing to get their products to the US, leading to a massive spike in the cost of containers, a shortage of ships, and lengthy delays in ports.”
Crossley said the new tariffs would particularly impact WA.
“All cargo transits via Singapore for Fremantle, so the current congestion is already starting to impact WA inbound sea-freight,” she said.
“It’s going to get worse, and we have not even started the peak period yet. Rates will increase, getting space and empty containers is becoming difficult already, and I am trying to prepare my customers and alert them to brace themselves as we are in for a rough ride.”
Crossley said the peak period started in August and continued until the end of the year.