Welcome to October?! Unfortunately, the month begins with disruptions, as the ILA strikes are affecting the USA East Coast and Gulf ports. Delays are expected, with some carriers introducing fees of up to USD 1500 per TEU for 'Work Disruption Surcharges.' In challenging times like these, it’s important to remember that our entire industry—from shipping lines, terminals and port workers to freight forwarders, brokers and trucking companies—exists to serve businesses that rely on the movement of goods. So while we want to get the best outcomes for ourselves, our members, workers or shareholders, the more obstacles we create for these importers and exporters, the greater the delays and costs, ultimately, the fewer customers we’ll eventually have. Without them, we don't have jobs! Let’s hope for a swift resolution. This month, we also highlight key WHS statistics as part of Australia's Work Safe month. This year's theme is "Safety is everyone's business", reinforcing the principle that everyone needs to prioritise safety with effective WHS practices - so it is a commitment made to the team, not just a policy. Our regional focus turns to China, where Golden Week celebrations from the 1st to the 7th of October align with positive economic stimulus from the Chinese government, which provided a much-needed boost to the AUD at the end of September. Additionally, we've seen some timely rate reductions from this region which has added to the relief of importers. Our sustainability focus in October centers on Modern Slavery legislation, examining Australia's push for greater supply chain transparency in alignment with global regulations. Global triggers such as poverty, discrimination, armed conflict, natural disasters or an absence of women's rights are contributors to the increase of risks within supply chains. This has to be a priority for leaders and industry globally and should be actioned beyond compliance with legislation to standard business practices. With the increase in movements of goods containing lithium batteries we take a look at the risks associated with shipping and the need for full compliance. Finally, we urge everyone to support Breast Cancer Awareness by going pink for the month of October. With breast cancer being the most common cancer among women in Australia and 1 in 7 expected to be diagnosed in their lifetime, it's a cause deserving of our full support. Our thoughts also go out to those affected recently by Hurricane Helene in the US, and to the innocents caught in the escalating tensions in the Middle East. As always, for more personalised solutions, please feel free to reach out to us at info@completeglobal.com.au
OCTOBER FREIGHT MARKET
The much-anticipated rate increase for shipping routes to Australia did not materialise ahead of the Chinese National Holidays. Instead, rates actually decreased, providing some relief to shippers. However, shipping lines have announced a new round of General Rate Increases (GRIs), effective October 15, with an intended hike of USD 500 per TEU. This increase aims to capitalise on the surge in cargo movement expected once China resumes business after the holiday break. This delay in rate hikes reflects a market that remains fluid and unpredictable, driven by evolving supply and demand dynamics.
In addition to fluctuating rates, weather disruptions have further complicated logistics in key regions. Severe storms in Sydney, combined with typhoon activity affecting Shanghai and Ningbo, have led to port omissions and changes in ship rotations. These interruptions have caused delays in shipments and created new challenges for shippers who must continuously adapt their strategies to cope with these operational obstacles.
ILA Strikes Shake U.S. Ports
Undoubtedly, the most significant development in the freight market this month is the strike initiated by the International Longshoremen’s Association (ILA) across East Coast and Gulf Coast ports in the U.S. As of 12:01 AM ET on October 1, longshoremen have taken action to demand higher wages and protest terminal automation. With approximately 40-43% of all U.S. imports transiting through these ports, the strike is causing widespread disruption to the supply chain, halting billions of dollars of trade each month.
Shipping lines had preemptively warned clients to ensure their cargo was collected before September 30 to avoid delays, as cargo availability would likely be impacted by the work stoppages. This advisory, however, led to a surge in last-minute bookings, putting significant strain on trucking and chassis availability. In response to these constraints, carriers have begun implementing strike-related surcharges to cover the increased costs of navigating around the disruptions.
The U.S. Federal Maritime Commission (FMC) is closely monitoring these surcharges to ensure carriers are not exploiting the situation through excessive detention and demurrage (D&D) fees. Meanwhile, many businesses have already begun rerouting cargo, utilizing structured LCL inland drayage networks and a mix of air and sea services to reposition freight and minimize disruption.
Adding to the tension, Canadian longshoremen in Montreal have also announced their intention to strike, complicating the situation further for shippers dependent on North American ports.
Misleading Claims and Spot Rates
The ILA has also accused ocean carriers of “gouging customers,” claiming container rates have skyrocketed to USD 30,000 per unit, a drastic rise from USD 6,000 only a few weeks earlier. However, data from Xeneta, a leading market intelligence platform, suggests that these claims are misleading.
With more than 40% of the U.S. containerized imports passing through East and Gulf Coast ports, the strike is expected to create major disruptions across supply chains, exacerbating an already fragile global logistics environment.
Capacity Issues and Global Impact
India continues to face equipment shortages, further complicating logistics planning in the region. The imbalance between available containers and the demand for exports is delaying shipments and driving up rates in certain lanes.
On a broader scale, the impact of extreme weather in Europe has added another layer of complexity to global shipping networks. Severe flooding has disrupted key transport infrastructure across the continent, affecting both road and rail networks and slowing down freight movement.
Looking Ahead
As the freight market braces for the effects of the ILA strike and potential ripple effects across North America and Europe, businesses are increasingly turning to contingency plans. Inland repositioning networks are becoming a critical tool for rerouting cargo from impacted East Coast ports, and alternative transport options such as air freight are being utilized more frequently to ensure goods reach their destinations on time.
In summary, October presents significant challenges for the global freight market. Rate volatility, weather disruptions, labor strikes, and equipment shortages will continue to test the resilience of supply chains. Shippers will need to stay agile and informed, making strategic decisions to mitigate risks and adapt to the rapidly shifting landscape.
taking action during national work safe month
In 2023, 200 Australian workers tragically lost their lives due to work-related injuries. While this figure is 5% above the 5-year average of 191 deaths annually, the fatality rate remained stable at 1.4 per 100,000 workers. Male workers were disproportionately affected, representing 95% of fatalities.
Vehicle incidents were the leading cause, accounting for 42% of fatalities, with machinery operators and driversbeing the most impacted professions, suffering 73 fatalities. Meanwhile, the agriculture, forestry, and fishing sectorsrecorded the highest fatality rate at 9.2 per 100,000 workers, emphasizing the heightened risks within these industries.
Beyond fatalities, non-fatal injuries and illnesses remain significant concerns in Australian workplaces. In the 2022-23 period, 139,000 serious workers’ compensation claims were lodged, with 21.3% of claims involving workers being off work for 13 weeks or more. The most common cause of injury was body-stressing, responsible for 32.7% of claims. Of increasing concern is the dramatic rise in mental health condition claims, which now account for 10.5% of total claims, a 19.2% increase from the previous year. Over the past decade, these claims have surged by 97.3%, reflecting a growing recognition of workplace psychological hazards.
This year, National Safe Work Month, held every October, encourages all individuals and organisations to prioritise work health and safety (WHS) and take proactive steps to reduce work-related injuries, illnesses, and fatalities. The theme, “Safety is Everyone’s Business,” reinforces the principle that a safe and healthy working environment is a fundamental right and the responsibility of all. Good WHS practices not only protect workers but also bring business benefits by fostering a positive safety culture and reducing disruptions caused by injuries or illness.
WHS Risk Management: A Core Business Focus
Workplace safety doesn’t happen by chance. It requires a proactive approach to risk management that integrates WHS fundamentals into daily operations. A robust risk assessment process is essential for identifying hazards, assessing risks, and implementing effective control measures. Here are the key steps for managing WHS risks:
Identify Hazards
Talk to workers, observe workplace conditions, and review records of past incidents to identify potential risks. Hazards can be both physical (e.g., machinery) and psychological (e.g., high job demands). Don’t assume that the absence of raised concerns means everything is safe—proactively encourage workers to report hazards.Assess the Risks
Once hazards are identified, assess the risks by considering who could be affected, how serious the harm could be, and the likelihood of an incident occurring. Address psychosocial hazards, such as mental health risks, as seriously as physical hazards, given their increasing impact on worker well-being.Control the Risks
The most effective way to control a risk is to eliminate it. When elimination isn’t possible, implement control measures that minimise risks, following the hierarchy of control. Always consult with workers when deciding on control measures—they have valuable insights that can improve decision-making.Monitor and Review
Risk management is an ongoing process. Continuously monitor control measures to ensure they are effective, and review them whenever new risks are identified, when significant changes occur in the workplace, or if workers raise concerns.
National Safe Work Month: Practical Steps for a Safer Workplace
During National Safe Work Month, businesses are encouraged to review their safety protocols and engage with workers to foster a culture of safety. This can include simple actions like hosting a SafeTea chat to discuss WHS fundamentals, ensuring that safety remains a year-round priority. Here are some practical steps to improve WHS practices in your workplace:
Genuinely Consult with Workers
Consultation is not only a legal requirement but also essential for effective risk management. Workers have first-hand knowledge of the hazards they face, and involving them in safety decisions makes them more likely to adopt safe practices.Provide Comprehensive Training and Support
Under WHS laws, workers must receive adequate information, training, and supervision to ensure their safety. New and inexperienced workers, in particular, need clear instructions and ongoing guidance. Information should be accessible, with translations or visual aids where necessary, to ensure understanding.Manage Psychosocial Hazards
Psychosocial hazards, such as job stress and workplace bullying, are increasingly recognised as serious risks. Work-related psychological injuries can have longer recovery times and result in extended periods away from work. Identifying and addressing these hazards requires the same systematic approach used for physical risks.
Why Safety is Everyone’s Business
Ultimately, a safe workplace benefits everyone: workers, businesses, and the broader community. By integrating WHS practices into every aspect of business operations and prioritising consultation, training, and continuous improvement, we can ensure that safety remains at the core of how we do business in Australia. This National Safe Work Month, let’s all take proactive steps to keep workers safe and healthy, making safety everyone’s business—not just for October, but all year long.
For more information refer to Work Safe Australia – https://www.safeworkaustralia.gov.au/
october economic data for the aud
The Australian dollar (AUD) surged to a 19-month high of US$0.6908 at the end of September, largely driven by China’s central bank implementing a series of robust stimulus measures aimed at boosting their economy. As China is Australia’s largest trading partner, these measures have significantly improved market sentiment towards the AUD. A stronger AUD has a positive effect on reducing inflation for imported goods, particularly vital commodities like petrol and consumer products. This development is a timely boost to counter rising inflationary pressures. However, the Reserve Bank of Australia (RBA) remains steadfast in its approach, maintaining higher interest rates to curb domestic inflation, which helps sustain the strength of the AUD but also puts further strain on household mortgages.
Several key economic indicators set for release in October will further shape the trajectory of the AUD. On 3rd October, Australia’s Balance of Trade and monthly Consumer Price Index (CPI) data will offer insights into the health of the economy, inflationary pressures, and trade dynamics. A widening trade surplus and stable inflation could bolster the AUD, particularly as these figures will reflect the early impacts of China’s economic stimulus. However, the RBA’s decision to keep interest rates unchanged will also influence market expectations around inflation control and exchange rate movements.
The international economic landscape will also play a significant role. On 10th October, the US core inflation data will be released. Should inflation remain persistently high in the US, the Federal Reserve might lean towards further rate hikes, putting upward pressure on the USD and potentially curbing the AUD’s gains. Later in the month, Chinese inflation and balance of trade figures, due on 13th October, will shed light on whether the stimulus measures are translating into real economic recovery. Strong trade and inflation figures from China could further support the AUD, given Australia’s heavy reliance on Chinese demand for its exports.
Furthermore, China’s GDP growth, industrial production, and retail sales data on 18th October will be closely watched as these indicators will offer a more comprehensive view of the strength of China’s economy post-stimulus. Robust growth in these areas could sustain the AUD’s upward trend, while weaker-than-expected data may signal broader global economic challenges, impacting Australia’s export-driven economy.
Finally, the US JOLTS Job Openings report on 30th October and Australia’s monthly CPI indicator will round off a month of critical economic updates. Job openings in the US could signal ongoing economic strength, possibly reinforcing the USD. Meanwhile, Australia’s CPI will provide a domestic lens on inflationary pressures, offering the RBA further data to assess its monetary policy stance. All these factors combined will likely keep the AUD fluctuating in response to both local and global economic developments throughout October.
As always, your banking specialist and accountant can help guide your best currency strategy.
FOCUS china
Australia’s trade relationship with China continues to play a crucial role in the nation’s economic growth, with China being Australia’s largest trading partner. In 2023, China purchased $219 billion worth of Australian exports, accounting for 32.5% of Australia’s total exports. Key industries such as agriculture, resources, and services are heavily reliant on the Chinese market, while Chinese investment in Australia has grown to nearly $88 billion by the end of the same year. The China-Australia Free Trade Agreement (ChAFTA) has further strengthened these commercial ties, giving Australian goods, services, and investments better access to Chinese markets.
In September 2024, the two countries took significant steps toward deepening economic cooperation by signing a Memorandum of Understanding (MoU) during the fourth China-Australia Strategic Economic Dialogue (SED). This was the first SED since 2017, following years of diplomatic and economic tensions. The MoU aims to enhance dialogue and knowledge-sharing on fiscal policy, the regional macroeconomic environment, and policy frameworks. During the meeting, Australian Treasurer Jim Chalmers and China’s National Development and Reform Commission (NDRC) chairman Zheng Shanjie discussed a range of issues, including trade, investment, and cooperation on green goals. Chalmers also expressed support for China’s newly announced economic stimulus package, highlighting the positive momentum toward restoring and enhancing bilateral ties.
One of the key drivers of China’s economic strategy is its dominance in the global supply chain for critical minerals and renewable energy. China controls about 70% of global output for critical minerals, which are essential for various industries, from defence systems to smartphones. In clean energy, China produces 90% of the world’s solar panels, over 70% of lithium batteries, and 65% of wind turbines. This leadership in renewable energy is central to both China’s domestic economic growth and its export power. However, global trade barriers, particularly from the US, EU, and Canada, present new challenges, as these regions impose tariffs on Chinese goods, including electric vehicles and green energy products.
While China has made substantial progress in renewable energy and clean technology, coal remains its primary energy source, and the nation continues to face significant environmental challenges. For example, July 2024 marked China’s hottest month in modern history, contributing to heightened concerns about climate change. Despite these hurdles, China has surpassed its renewable energy targets six years ahead of schedule and is on track to achieve even greater capacity by the end of 2024. For Australia, this presents both opportunities and challenges in navigating its trade relationship with China, especially as it looks to diversify its supply chains and reduce reliance on Chinese imports.
The MoU on climate change cooperation reflects the mutual interest in addressing environmental challenges. Australia’s push to develop its green industries and reduce its reliance on China’s supply chains has introduced complexities, particularly in the renewable energy sector. However, the economic relationship remains resilient. Bilateral trade between the two nations grew by 9.2% in 2023, a testament to the strength of their commercial ties and the potential for further collaboration, particularly as both countries prioritize climate change and green investments.
Looking forward, Australia’s strategic approach to its trade relationship with China will need to balance economic cooperation with diversification. As countries such as the US, UK, EU, and India look to strengthen supply chain resilience and reduce reliance on China, Australia is well-positioned to collaborate on green economy initiatives and critical minerals supply chains. The shared commitment to climate change goals, as outlined in the 2024 MoU, will be an essential driver for future trade and investment opportunities between Australia and China.
For more information – refer to DFAT – https://www.dfat.gov.au/geo/china
shipping lithium-ion batteries
Shipping lithium-ion batteries demands meticulous attention to safety regulations and compliance protocols, as highlighted by recent incidents. A devastating fire at a lithium-ion battery parts facility in South Korea claimed the lives of 23 workers, the majority of whom were foreign contract laborers. Such tragedies underscore the inherent dangers in the handling and transport of these batteries.
To mitigate these risks, proper packaging and labeling are crucial when shipping lithium-ion batteries. Using UN-certified packaging is essential to ensure that each battery is protected from short circuits, minimizing the chance of fires or explosions during transit. Additionally, hazard labels and markings indicating the UN number, shipping name, and specific handling instructions must be affixed to the shipment. This ensures that carriers and regulatory authorities can easily identify the contents, which streamlines the transportation process and prevents delays or rejections.
Documentation plays a key role in compliance and safety. Shippers must accurately declare the number and type of batteries being transported, providing all necessary specifications and packaging details. This is particularly important when transporting batteries by air or sea, as different modes of transportation have unique requirements. For instance, air shipments are subject to strict limitations on the quantity and type of batteries allowed on board, while sea freight must comply with the International Maritime Dangerous Goods (IMDG) Code, which includes specific packaging and stowage guidelines to prevent accidents during transit.
Equally important is the proper training of personnel involved in handling and shipping lithium-ion batteries. Employees should be well-versed in battery safety, packaging, labeling, and emergency response procedures to mitigate risks. Comprehensive training programs ensure that everyone involved understands their responsibilities, helping to avoid accidents and maintain compliance with international regulations.
Risk mitigation strategies, such as thermal runaway containment measures and fire suppression systems, are essential for managing incidents that may occur during transport. Continuous monitoring and compliance audits should also be implemented to identify potential areas for improvement and ensure that shipping processes align with evolving regulations. Internal reviews or third-party assessments can provide valuable insights to prevent lapses in safety or regulatory compliance.
Finally, collaboration across the supply chain is vital for ensuring the safe and secure shipment of lithium-ion batteries. Working closely with carriers, freight forwarders, regulatory bodies, and customers helps address concerns, streamline logistics, and prevent any interruptions in the delivery of critical goods. Given the complexities of lithium-ion battery transport, maintaining open communication and implementing best practices can safeguard both the shipments and the wider supply chain from avoidable risks and liabilities.
Airsafe Australia has some great training courses – one specialising in shipping lithium-ion batteries – https://www.airsafe.com.au/
modern slavery legislation
Modern slavery is a growing global issue, with the number of victims rising from 29.8 million in 2013 to 50 million today. This alarming figure includes 28 million individuals trapped in forced labor and 22 million in forced marriages. Modern slavery takes various forms, including human trafficking, debt bondage, and forced labor, with workplace exploitation being the most prevalent. Vulnerable populations are disproportionately affected, making it crucial for governments and businesses alike to address the root causes and eradicate these exploitative practices.
In response to this crisis, global legislation has evolved, with the European Corporate Sustainability Due Diligence Directive (2024) setting new standards for human rights due diligence. This directive requires companies to assess and mitigate modern slavery risks throughout their supply chains, influencing businesses in Asia and Australia that supply to EU markets. Import bans in both Europe and the US have also placed additional pressure on companies to ensure that their products are free from forced labor and other exploitative practices. As businesses face increased scrutiny, compliance with these regulations has become essential for maintaining credibility and protecting vulnerable workers.
Australia has been at the forefront of tackling modern slavery through its 2018 Modern Slavery Act, which mandates companies with a consolidated revenue of A$100 million or more to report on modern slavery risks in their supply chains. This legislation has fostered greater transparency and accountability, empowering industries to address these risks and integrate human rights considerations into their environmental, social, and governance (ESG) frameworks. By encouraging companies to evaluate their supply chains, the Act has shifted business practices toward more ethical and responsible operations.
The establishment of Australia’s first Anti-Slavery Commissioner in 2024 marked a significant step forward in the nation’s commitment to eradicating modern slavery. The Commissioner’s role is to support victims, enhance advocacy efforts, and assist businesses in managing modern slavery risks. Key developments include increased supply chain due diligence, preparation for audits, and collaboration between the NSW and Commonwealth Anti-Slavery Commissioners. These measures ensure that companies are actively engaging with their suppliers, identifying risks, and implementing necessary changes to prevent exploitation.
For Australian businesses, the implications of these regulatory changes are far-reaching. Failure to comply with modern slavery legislation could result in reputational damage and missed opportunities in both domestic and international markets. As global regulations continue to evolve, businesses must implement robust compliance measures and demonstrate ethical practices to build trust with stakeholders. This includes engaging with suppliers, conducting thorough risk assessments, and ensuring that all areas of the supply chain are free from modern slavery risks.
Australia’s proactive approach, combined with international efforts, sets a global benchmark for combating modern slavery. By fostering collaboration, increasing awareness, and strengthening enforcement mechanisms, Australia has positioned itself as a leader in human rights protection. As the fight against modern slavery continues, businesses must remain vigilant and committed to safeguarding human rights across all sectors.
More information about Australia’s Modern Slavery Legislation can be found here – https://www.ag.gov.au/crime/people-smuggling-and-human-trafficking/modern-slavery