Media Release by project44
Businesses struggling amid Australia’s economic crisis have been given hope by new data showing promising signs. A vast majority of key industries grew their monthly revenue in August, according to the Australian Bureau of Statistics. The bureau found that business turnover rose in 12 of 13 industries in August.
There was a significant increase in shipping and importing activity during August, which explains the strong turnover. The increases in vessel volumes have been climbing rapidly since February 2022, reflecting a 34% increase in vessel capacity. According to project44 data, the total twenty-foot equivalent unit (TEU) capacity of vessels arriving at Australian ports reached the highest level in two years at 1,671,933 TEUs.
The increases in vessel volumes have been climbing rapidly since February 2022, reflecting a 34% increase in vessel capacity.
“The growth in container vessel volumes calling at Australian ports is evidence that business has picked up in 2022. However we are also seeing a slight drop of 6.5% in September, so it remains to be seen if the economic bounce back will continue as strongly in Q4” said Josh Brazil, VP Supply Chain Insights at project44.
New Zealand is still struggling
In contrast to Australia’s relative shipping boom, neighbouring New Zealand is still struggling with supply chain woes and port congestion.
As project44 previously reported, shipping delays have been hitting New Zealand hard this year with many shippers waiting weeks longer than their Australian counterparts. The ongoing supply chain issues are causing some shipping companies to completely exclude New Zealand from their schedules. project44 data reveals the extent of the crisis as total vessel TEU volumes plummeted in Q1 2021 and have since failed to make a meaningful recovery.
September data shows a 10% decrease in total vessel TEU volumes from 2020 to 2022.
Outlook
Data from the Australian Bureau of Statistics indicate that Australian businesses are rebounding in the post-pandemic months, but New Zealand is still struggling to regain shipping volume capacity to the country. For time-sensitive goods such as fresh produce, some New Zealand shippers are switching to air freight to mitigate export delays. According to Maersk, New Zealand ports are expected to continue suspending berthing windows until March 2023, with Auckland waiting time remaining at 4-5 days.
