AUSTRALIAN importers are opting to pay far higher rates to fly products into the country to avoid weeks-long delays caused by the red Sea crisis, reports Melbourne's Financial Review.
The threat of attack by Houthi forces off the Horn of Africa has forced the majority of commercial ships travelling from Europe to Asia to divert around the southern tip of Africa, adding days to voyages and causing major congestion at the world's second-largest port in Singapore.
Those delays are expected to be exacerbated after logistics giant Mediterranean Shipping Company (MSC) advised local freight forwarders this week that it plans to reduce services operating out of Singapore that travel to Australia.
Freight forwarders and shipping experts in Australia said that as the industry grappled with a 'new normal' of increased travel times and higher freight costs, more importers were opting to pay a premium to fly certain products into the country and avoid weeks of delays.
Attacks on vessels in the Red Sea by Houthi militants disrupted vital shipping routes again earlier this week, days after a drone launched by the Iranian-backed group hit Israeli economic hub Tel Aviv.
The attack prompted Israel to strike Houthi military targets near Yemen's Hodeidah port.
Other importers on the west coast intent on their cargo avoiding ongoing delays at Singapore are shipping products to Melbourne and paying additional fees to have their products railed across the Nullarbor.
'This is the length that importers will go to now, they're looking at different ways of getting their cargo here; a little bit more creative, it's a very expensive episode, but they'll get their cargo here in time,' Operations manager at ESS Shipping Amanda Bradfield said.
'Because of the congestion in Singapore, one particular importer has decided they want to move their cargo to Melbourne, and then we're going to rail it across in order to meet the deadlines for the Perth Royal Show.'
Ms Bradfield said more clients were also opting to fly products, including spare parts for agriculture and mining, into Australia rather than risk weeks-long delays.
SeaNews Turkey
The threat of attack by Houthi forces off the Horn of Africa has forced the majority of commercial ships travelling from Europe to Asia to divert around the southern tip of Africa, adding days to voyages and causing major congestion at the world's second-largest port in Singapore.
Those delays are expected to be exacerbated after logistics giant Mediterranean Shipping Company (MSC) advised local freight forwarders this week that it plans to reduce services operating out of Singapore that travel to Australia.
Freight forwarders and shipping experts in Australia said that as the industry grappled with a 'new normal' of increased travel times and higher freight costs, more importers were opting to pay a premium to fly certain products into the country and avoid weeks of delays.
Attacks on vessels in the Red Sea by Houthi militants disrupted vital shipping routes again earlier this week, days after a drone launched by the Iranian-backed group hit Israeli economic hub Tel Aviv.
The attack prompted Israel to strike Houthi military targets near Yemen's Hodeidah port.
Other importers on the west coast intent on their cargo avoiding ongoing delays at Singapore are shipping products to Melbourne and paying additional fees to have their products railed across the Nullarbor.
'This is the length that importers will go to now, they're looking at different ways of getting their cargo here; a little bit more creative, it's a very expensive episode, but they'll get their cargo here in time,' Operations manager at ESS Shipping Amanda Bradfield said.
'Because of the congestion in Singapore, one particular importer has decided they want to move their cargo to Melbourne, and then we're going to rail it across in order to meet the deadlines for the Perth Royal Show.'
Ms Bradfield said more clients were also opting to fly products, including spare parts for agriculture and mining, into Australia rather than risk weeks-long delays.
SeaNews Turkey
