May Insights

Welcome to CGS May Insights, where we explore the upcoming month in detail, highlighting different factors that might impact your supply chain. For further information on the topics mentioned, feel free to contact us at

negotiating with new suppliers

5 tips

Negotiating terms with suppliers can often be a tricky and complex process.
Here we look at a few tips to help manage the process.

shipping line rates

As we steam towards the midway point of 2024, the geo-political tensions have undoubtedly had an affect on rates with the additional pressure of equipment shortages and congestion in some Mediterranean ports. The China Containerised Freight Index showed a 1.6% increase on rates to AU/NZ from the previous week with the highest increases understandably being seen in West Africa and the Persian Gulf / Red Sea regions. Carriers will likely continue their blank sailing, coupled with rate restorations announced ex North Asia to Australia across May.

AUD Forcast

Australian retail sales dropped again however it seems non-household areas such as Government continue to show that inflationary pressures are not yet enough to warrant another rate cut. The US Federal Reserve will release its interest rate decision early May and while analysts are not expecting a rate cut, it’s the commentary around the decision that could see further movement. Similarly, non-farm data is released early May. Any decision to hold interest rates will buouy investors and rally the USD.

The AUS Federal Budget will be released on 14 May and people will be looking at Government spending to take the heat off interest rates. Analysts are divided as to when the next rate cut will come, with some predicting it will hold until 2025.


Australia and Mexico enjoy a strong trade relationship, reinforced by membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). As the US seeks to reduce its reliance on China, Mexicos manufacturing sector is emerging as a winner. But it’s
not only the US that is capitalising – Chinese companies are also recognising the increased opportunities for investment.

DFAT 2022-2023 figures show strong AU exports of barley and oil-seeds. Imports from Mexico include motor vehicles, telecommunication equipment and medical instruments.

Container Weights

Mis-declared container weights are a hazard for vessel stability, can damage cargo, cause cranes or lifts to topple, exceed axle limits on trucks, and cause injury to workers. It is imperative that you ensure your suppliers are aware of how critical it is to correctly declare the cargo weight at the time of shipping so the correct equipment and positioning can be used for its movement. Terminals in Australia are applying a PONDUS fee as a penalty when container weights have a +/- 1000kg variance. The best way to ensure that you do not incur this charge at destination, and to keep those across the supply chain safe, is to make sure that your supplier correctly identifies the weight of the cargo for all transport documents.

Re-useable Plastics

Every year in Australia, approximately 130,000 tonnes of plastic leaks into our marine environment. And while Federal and State Governments are legislating against the use of single-use plastics, there is still a significant portion being used within the supply chain. If your supplier is still sending products to you in single-use plastic bags or wrapping – it’s time to make an immediate change. With growing consumer demand for better packaging, there are some excellent companies providing compostable, reusable and other alternatives. Compostable bags are a more natual alternative to degradable or biodegradable bags. Check our companies like Hero Packaging,Heapsgood, Biogone and Signet.

May'd you look

May is Domestic Violence Prevention Month across Australia, raising
community awareness of domestic and family violence and its impacts.
The focus of 2024 is the end of coercive control. Hugely important

12th May 1820, British nurse and public health activist Florence Nightingale was born.

past insights