CTAA - NSW COVID Lockdown Restrictions Update - Freight & Logistics Impacts

This morning, Saturday, 17 July, the NSW Premier and Chief Health Officer announced additional COVID lockdown measures commencing from 11.59pm tonight, Saturday, 17 July and further measures from Monday, 19 July and Wednesday, 21 July.

See: Restrictions to further limit the spread of the COVID-19 Delta strain (nsw.gov.au)

Of concern for container transport logistics (and freight logistics generally) is the statement that:

In addition to the stay-at-home rules, residents of Fairfield, Canterbury-Bankstown and Liverpool LGAs cannot leave their LGA for work except for emergency services and healthcare workers (including aged and disability workers). 

CTAA has fielded a number of calls today from concerned CTAA alliance companies asking what the implications are for freight logistics workers who reside in the three identified LGAs, and also for businesses which have their premises (yards, depots, warehouses, etc.) within the three affected LGAs and whether they will be allowed to continue to trade (i.e. undertake freight logistics tasks from those LGAs into other areas of Greater Sydney and beyond).

CTAA has been in contact this morning with senior representatives from Transport for NSW (TfNSW) seeking clarification.  We have been told that the official Public Health Orders are awaited, and once they are received, TfNSW will endeavour to clarify the impacts on freight logistics activities.

From a container freight transport perspective, the three affected LGAs take in much of the "heartland" of Sydney's container logistics activities in the west.  To date, freight logistics has been considered an "essential service" in practice, and it is hoped that there will continue to be rules that allow freight services to continue.

The possible consequences of container freight activities being curtailed, either due to workers not being able to attend freight logistics workplaces from the affected LGAs, or freight activities in those LGAs needing to cease, would be catastrophic on container logistics chains.

This would include rapid congestion at stevedore terminals in Port Botany if import containers cannot be evacuated from the terminals, and possible non-delivery of export commodities to meet vessel export cut-off times.

As has occurred in other jurisdictions too, the closure of many retails premises from tonight, Saturday, 17 July, and the construction sector from Monday, 19 July, will have freight logistics implications.  In relation to container logistics operations, this may include the need for added storage of full containers, or the warehousing of loose cargoes, that may not be able to be delivered through the entire supply chain due to the lockdowns.

This may put severe pressure on some transport yards and warehouses, depending on the length of time of the restrictions.  

CTAA awaits clarification from TfNSW which we hope to receive latter today.  Once received, we will keep CTAA alliance companies and non-alliance companies alike updated.    

Regards,

Neil Chambers, Director
Container Transport Alliance Australia (CTAA)