Importers are warned to be aware of shipping bottlenecks this Christmas, as shipping and handling over the holiday season can be filled with setbacks and added costs.
According to customs clearance agency Platinum Freight Management, public holidays cost time and budget and this year Customs has reached rock bottom on duty reductions, meaning that for the first time in recent history, importers can’t expect a reduction in duty fees.
“The two most commonly experienced freighting and Customs clearance issues facing importers during this critical trading period are potential holiday strike action by stevedores, and lack of logistics planning that sees stock uncleared over public holidays,” CEO Peter McRae explains.
“In addition, where importers have in previous years enjoyed a reduction in duty rates for the new year, this year they can think again. The duty rate has bottomed out at five per cent and no more reductions will be applied, so importers need to ensure their budget is set accordingly.”
The cost of strike action goes beyond the risk of getting stock on shelves too late, but also high wharf storage costs plus container rental fees from their shipping company for every day that the container remains unemptied. While strikes are impossible to predict, it is important to be prepared and book shipments early.
“Negotiate shipping times with suppliers now to get stock landed before strike action inevitably heats up. The smart importer aims to have stock in transit to warehouse by the first week of December.”
Poor planning and lack of a proper logistics schedule during the public holidays also create unnecessary problems.
“Businesses should factor in public holidays in their logistics schedule, to land goods before holidays begin. Of course this isn’t always possible for stock replenished frequently over Christmas trade. So for importers this applies to, they know to factor in budget to cover holding fees for days stock is unattended due to dock and Customs worker holiday days.”
One way to work around this is to pre-clear goods before they reach Australia, to make sure there is little delay through Customs.
“Be organised. Be prepared and plan your imports down to a T. Where possible, ship early, pre-clear goods and factor in an additional budget just in case your goods are caught up in a Christmas bottleneck,” McRae adds.
By Marion Gerritsen
