Please take a minute to hear from Luke Goss, our General Manager here at doTERRA AUNZ as he shares some not-so-inspiring news about the issues currently facing our global supply chains. Be patient and plan ahead – very good advice Luke!!
***DOMESTIC AND INTERNATIONAL LOGISTICS SET TO IMPACT OUR DELIVERIES***
The COVID-19 pandemic has had a huge impact on logistics both domestically and internationally. We are now bracing for unprecedented delays in both shipments and deliveries.
In an effort to keep our community updated, we have included below, some of the issues that have come to our attention. Due to the extent of this problem, we expect ongoing disruption to your deliveries and anticipate delays will not be resolved in the short term.
For this reason, we are currently investigating how to better supply you with updates and access to the information you’ll need to keep yourself and your communities informed over the coming months.
SUMMARY INTERNATIONAL FREIGHT ISSUES – Current 5 October 2021
- Ports throughout Asia and the US remain heavily congested. Presently, trans-shipment hubs are facing 3-4 week delays. Port congestion is unlikely to ease until February/March 2022.
- Limited space on aircraft is impacting freight availability, with an associated spike in pricing.
- Both American Airlines and Qantas have cancelled their daily service to Australia. This is also impacting capacity and cost. Daily flights are due to resume this November.
- Carrier reliability is down 30.1% from August 2020 to August 2021. The average delay for vessel arrivals also continues to deteriorate, increasing by 0.58 days month on month to 7.57 days in August, 2021.
- The Chinese Government has imposed power cuts on at least 10 Chinese provinces. This will impact China’s busiest Ports including Jiangsu, Guangdong and Zhejiang. Any drop shipments from China will be impacted.
SUMMARY OF OUR DOMESTIC FREIGHT ISSUES – Current 5 October, 2021
- Covid-19 has recently hit terminals across Sydney and Melbourne, with the Victorian ocean freight terminal only resuming operations on the 25th of September after four staff were infected.
- Port strikes across the country, threaten to cripple imports and put further strain on supply chains in the middle of state lockdowns. The Maritime Union of Australia has escalated already damaging industrial action notifying wharf workers will strike every Monday, Wednesday and Friday in Melbourne for the whole of October. The strike will disrupt Melbourne and Sydney ports already experiencing unpredictable shutdowns caused by coronavirus.
- To ease stress on the system to a safe and manageable level, Australia Post has once again paused pick-ups from retailers from Friday 01 October to Wednesday 06 October. This will create further backlogs in shipments.
SUMMARY OF ISSUES FACING OUR doTERRA WAREHOUSES – Current 5 October, 2021
doTERRA Australia Warehouse
- Our Melbourne warehouse has been working under COVID-19 restrictions and has therefore been under resourced for as long as Melbourne has been in lockdown.
- The recent pause in Australia Post pick-ups from Friday 01 October to Wednesday 06 October will create further backlogs for those waiting to get their orders out of our Melbourne warehouse.
doTERRA New Zealand Warehouse
- Our New Zealand warehouse is still struggling with resourcing due to COVID-19 restrictions.
- New Zealand Post has reported a significant increase in parcels in and out of Auckland. This, combined with COVID-19 operating restrictions will result in up to 5 working days’ delay.