A continuing shortage of shipping containers for general cargo - and commodities like oats and chickpeas - is stifling opportunity for traders at a time when Australian selling prices are both competitive on the world stage and beneficial to growers.
Subscribe now for unlimited access to all our agricultural news
across the nation
$0/
(min cost $0)
or signup to continue reading
This week, workers at Sydney's Port Botany are putting the go-slow on lifts and loadings, angling for more pay and conditions - further complicating an already compromised transport system.
Adam Robinson, Robinson Grain at Dubbo, says the situation has increased intensity in the past four weeks to where it is the worst in his career experience.
"Shipping companies don't go to a lot of destinations right now," he said. "And if they do there's no containers for hire.
"We're trying to ship chickpeas to Pakistan but it's difficult to get available containers. One of the shipping lines quoted US$4000 but even at that price wasn't confident of taking the booking.
That's because there's more money in re-positioning the empties than waiting to load them full from Australia.
"This is not just an Australian story. There is huge congestion and container issues in Europe and the US," Mr Robinson said.
Port congestion and a shortfall of empty "boxes" has meant that even Trans-Tasman shipping with our closest neighbours is almost non-existent with quotes from agents suggesting it would be August or September - maybe - before Australian product would land on New Zealand shores.
"Buyers will have to change the way they do business and that may mean a greater reliance on bulk handling," said Mr Robinson. "Shipping companies don't want containers up-country for 21 days."
Grain trader at Cowra with East Coast Stockfeeds, Angus Johnston, said shipping rates for containers had jumped from two to three times what they were a year ago while availability of food grade containers was severely limited.
"Wharf disputes don't help, while demand in the wake of COVID-19 has put pressure on goods and services," he said. "And it's not getting better. The reality is that COVID-19 won't just go away. In two years' time we could be experiencing the same pressures."
At Wagga Wagga, trader with Croker Grain, Lyndon Benecke, said the shortage of containers has been a constant part of logistical life since Christmas.
"The difficulties at the moment are from a combination of issues. When a vessel skips Sydney to go to Melbourne it throws things into chaos. Industrial disputes don't help. There are ramifications and it takes days to catch up.
"We need a re-set button. We're all playing catch-up all the time. We need a reset."
Related reading:
Love agricultural news? Sign up for The Land's free daily newsletter