There remains a significant shortage in available labour/operational workforce (January 2022), which has created a deficit in this labour pool. This has been caused by restrictions and delays on international labour arriving in Australia post COVID lockdown, ‘The Great Resignation’ trend which has seen many people reassess their lives and move locations and jobs as they emerge from lockdown, and Government incentives not stimulating the labour market as was predicted.
Additionally, the cost of casual labour for the logistics industry has increased exponentially as demand exceeds supply and competitors outbid others in the market.
Contracted container crews are unavailable or not arriving on site as scheduled, and casual warehouse labour is simply unavailable. Combined with the sheer volume of inbound containers requiring unpack and associated delays in being able to dehire containers at empty parks.
COVID is still causing unplanned leave and high levels of absenteeism, especially in VIC and NSW and may potentially rise in QLD as they opened their border this week.
National pallet shortage
CHEP and Loscam are unable to keep up with current demand due to ongoing stock level growth leading to the demand of pallets outstripping supply, and fewer pallet returns to the pool. In addition, plain pallets are also being affected due to use of plain pallets in place of CHEP and Loscam pallets.
A worldwide shortage of timber impacting the ability of pallet manufacturers to produce more pallets, and a stressed and congested global supply chain with long waiting times for timber shipments is also affecting supply.
It is likely that supply chain costs will continue to be impacted by the above well into the new year. COVID, inconsistent container volumes, and the increased cost and management of labour are straining operational capacity, service levels, and increasing costs.
Call BBJ Materials Handling on 0422 464176 to see how we can help.