NEOLINK Industry Update – Emerging Issues Impacting Australian Supply Chains – Q4 2020

NEOLINK Industry Update – Emerging Issues Impacting Australian Supply Chains – Q4 2020

Monday 22^nd of October

Dear Valued Clients,

As the dust somewhat settles over the significant ongoing union disputes at Port Botany from September we are all left with a more costly and congested port service.

In this update we will provide some detail on both the cost and service implications for the industry, as well as the risk management strategies importers/exporters are implementing to continue to reduce the impact on their supply chains.

Below we have provided a short summary on the Key Issues Impacting Australian Supply Chains:

• Through late August and September Port Botany Terminals experienced significant industrial action that resulted in “go slows” and approved “stop work” arrangements

• Patricks CEO Michael Jovicic spoke of the impact “ We have been operating at 60% capacity. Imports are being delayed and exports are being delayed as well. We have 40-odd vessels waiting to be serviced at our terminals across the country”

• In September during the height of the action; Maersk diverted multiple vessels to offload cargo destined for Sydney to Melbourne at the cost of the importer to move the goods back up to Sydney.

• Due to the port congestion; three of the worlds biggest shipping lines have stopped sending vessels and cancelled bookings to Australia for the entirety of October – Maersk, Cosco and OOCL (see attached)

• Despite the Maritime Union of Australia agreeing to new or short term deals with the port terminal operators, NSW Ports CEO Marika Calfas stated “many of the shipping schedules remain off window and may take a couple of months to be restored back to normal. We have also seen that the Union strikes and “stop works” are still continuing, Hutchinsons have announced this morning that a 24 hour stoppage will occur on Friday the 24^th of October, which will impact a number of customers that we have containers on vessels that are docked and not moving at the terminal.

• In addition to the above; the major shipping lines have implemented new port congestion surcharges for Port Botany at the cost of the importer ranging from $275 USD per TEU to $300 USD per TEU. The shipping lines are demanding this on arrival to be settled in order for the container to be allowed to be collected from the wharf. NEOLINK’s company policy on this is to pass this on at cost to all customers and will only invoice out if billed by the shipping lines

Thinking forwards the below are the key Implications of all of the above issues:

• Vessels are still taking longer to unload as per NSW Ports notice attached and are still not back at capacity despite the peace talks – Hutchinsons 24 hour stoppage tomorrow

• Supply of shipping vessels and overall services has significantly contracted meaning less container space is available from China as well as other South East Asian ports (see attached service suspensions)

• Shipping Demand from Australian businesses is not slowing down – we have seen significant growth in import volumes across a broad range of mature markets and industries (see below from NSW Ports):

• The overall increase in demand we are hearing from all our customers is putting a lot of pressure on overseas suppliers who have seen production/lead times extend

• Due to the increase in demand and the contract in supply we are seeing ocean freight rates increase in particular out of China – SCFI (Shanghai Container Freight index below):

Whilst demand remains high and shipping supply remains low or below expectations, rates could continue to increase between now and Chinese new year.

We have provided some key recommendations below and some solutions our Customer Operations Team have put in place with customers:

• Ensure your NEOLINK Customer Operations Coordinator is CC’d in on all purchase orders with overseas suppliers to forward plan

• Hold emergency stock or reserve stock where possible to mitigate for shipping delays – NEOLINK has 3PL warehousing across the country and have implemented this solution for several customers

• Airfreight is slowly coming back and maybe an option for emergency stock….. prices have significantly dropped down from “COVID” levels – we are now starting to see rates around the $3 USD per kilogram mark for +1 Tonne EX SZX

• Leverage the NEOLINK Team (third party independent view) with your customers directly to inform them what is happening in the industry. Our Senior Management are happy to set up zoom calls/meetings/telephone calls to explain what is happening in the industry to assist with managing expectations over Christmas/NY

• Speak with your NEOLINK Customer Operations Coordinator about booking tranship services to reduce costs where possible on non urgent items

As we go into the end of the year we are dealing with an environment that has changed and as such we need to continue to evolve how we operate in this climate. Our Customer Operations Team are working tirelessly with overseas suppliers, shipping lines, terminals and carriers to ensure you are getting your goods as quickly and as cost effectively to you as possible.

Our team will continue to be proactive in engaging all of our customers on their outstanding orders and do our best to ensure we keep all of your customers happy for Christmas, as well as the new year.

Bring on 2021!

Best regards,

NEOLINK Management

ATTACHMENTS/REFERENCES

1. Morrison takes aim at maritime union over Sydney port dispute – SMH

2. Despite peace talks at Port Botany, container congestion remains critical

3. Containership behemoth stops Sydney services over disruption

4. Port Congestion Surcharge – Sydney _ Maersk

5. Temporary Booking Suspension to Australia – AAA network

6. Cosco Suspension of Southbound Booking Acceptance – AAA & ASAL

7. Hutchison Port Botany Union Stop Work – 24 hours – Friday 23rd of October

NEOLINK Update – Maersk Cease Bookings to Sydney and Fair Work Commission Hearing Scheduled for this Weekend

Thursday 18^th of September

Dear Valued Clients,

Hope you are all well and are having good weeks.

As the situation at Port Botany continues to deteriorate; Maersk have made a decision today to cease all bookings from any overseas port into Port Botany (please see attached).

This is going to have a devastating impact on all affected origin ports:

• Available space will be dramatically reduced globally at all loading Ports over the next couple of weeks that book cargo to Sydney
• This will inevitably drive ocean freight prices higher as we head into October with China’s week long national holiday commencing the first week of October
• This will lead to more delays and more back log of cargo at origin ports that were already massively congested

All of our Customer Operations Coordinators would have been or will be in touch with you over the coming days to ensure we have all of your pending factory purchase orders as early as possible. This will allow us the time to best manage the situation by pre-planning as best we can for all purchase orders with the carriers to secure space.

This week; DP World have launched a legal application to cease the industrial action at Port Botany with the Fair Work Commission (FWC) which will be reviewed at a hearing on Saturday the 19^th of September. Continuous vessel delays and empty parks being at a tipping point with capacity is making the situation challenging for all involved. Our team will continue to work hard to provide you the best service we can and we ask you please be understanding of the market/industry challenges we are facing.

https://theloadstar.com/importers-close-to-breaking-point-as-tension-rises-at-sydneys-port-botany/

If you have any questions, please feel free to reach out to any member of the NEOLINK Team.

Best regards,

NEOLINK Management

NEOLINK Update – Port Congestion Reaches Crisis Point

Thursday 10^th of September

Dear Valued Clients,

Before we get into it….

I hope everyone is staying well and you, as well as your families are keeping safe during COVID.

Despite now being in an official recession and Melbourne still in lock-down, we have seen shipping demand increasing since March with no signs of it slowing down.

There are a couple of key factors driving this:

• Supply chains being lockdown between Australia and China for extended periods
• Factory production/lead times extending in China due to sourcing of raw materials
• Consumer spending shifting from the services sector and into the goods sector
• Factory Orders piling up during China lockdown and demand not slowing

The above has put incredible strains on supply chains here in Australia and we are now seeing this manifest in a number of different ways.

So What is happening?

• Despite the demand from Australia, shipping lines are actually contracting or reducing services southbound (see articles below)

• https://www.maersk.com/news/articles/2020/08/13/continued-seasonal-capacity-adjustment-on-asia-australia-services-due-to-covid-19-impact
• https://www.msc.com/aus/notices/2020-august/msc-continues-suspension-of-panda-service
• https://www.one-line.com/en/news/customer-advisory-cae-suspension-be-extended-1308202

• Due to the above, there has been massive congestion problems in China that is having a two fold impact. Firstly on delays broadly across China ports and secondly on driving up ocean freight prices (please see below)

• https://www.joc.com/rail-intermodal/rising-volumes-create-bottlenecks-china-europe-rail-network_20200909.html
• https://www.scmp.com/economy/china-economy/article/3100229/china-exporters-under-pressure-soaring-us-shipping-costs

• In addition to origin shipping port congestion, Port Botany here in Sydney is now at a crisis point due to a number of factors:

• Empty container parks are full, further jamming up already stretched supply chains
• Bad weather and vessel scheduled alterations
• Government approved industrial actions have dramatically reduced the capacity at port botany
• Vessels are being significantly delayed into port
• Export containers are not being loaded anywhere near the rate required to solve the backlog
• Empty parks are redirecting empty imported containers where they can or are flat out refusing to take them
• Transport companies yards are piling up empties as we speak until they can make room
• https://theloadstar.com/already-stretched-australian-supply-chains-hit-by-container-park-congestion/

• Due to the above situation at Port Botany; MSC yesterday announced that for all containers moving via the port will now incur a surcharge (please see article below)
• https://ajot.com/news/msc-sydney-port-congestion-surcharge

• The above is a shipping line showing no care for Australian importers, but also facing extreme challenges themselves having vessels sit for days out of sea not being able to be unloaded

• The Port Authority of NSW and Shipping Australia we are being told are working with the government to address all of these challenges, but little is being done in the short term

What does this mean for you?

• Delays – Everyday our staff are driving past vessels at the port that remain untouched for multiple days or are stranded out at sea off the coast here in Botany waiting to be unloaded

• Ocean Freight rates are increasing and don’t look like they are slowing down

What NEOLINK are doing for our clients?

• Negotiating and working with the shipping lines at both origin, as well as here in Australia to ensure we get the best prices for our customers

• NEOLINK are working with our origin offices, your suppliers and the shipping lines on every order to proactively book, as well as monitor space closely before departure

• Please ensure you get us your purchase orders, or loop us in with your factory as early as possible to ensure we can be as proactive as we can

• We are also talking to the shipping lines about container detention relief when we cannot dehire containers due to empty parks being full

As always our Customer Operations Team are working hard and proactively to engage you on your supply chains to ensure we are managing the situation the best we can.

I also ask that you rethink the lead times on your goods and allow for the rate increases/delays in your own supply chains internally, which I know have customer implications. In some instances we are being used by some of our clients to speak to their customers about the delays in addition to forwarding on our notices.

The situation is manageable, but challenging for every importer or exporter providing we can all work together between our teams and plan/engage across the supply chain as early as possible.

Please feel free to reach out to your Account Manager if you have any questions on any of the above.

Best regards,

NEOLINK Management

NEOLINK Announcement – Maritime Union of Australia Approved Industrial Action at DP World Ports – Commencing the 18^th of July – 16.7.20

Thursday 16^th of July

Dear Valued Clients,

We received notice last night that the Maritime Union of Australia (MUA) will restart government approved/protected industrial action at all four DP World Australia Ports nationally.

The industrial action adds to challenges the ports are experiencing nationally to keep container freight moving during COVID. Further complications have occurred in the past 48 hours as well due to vessels being delayed into port due to bad weather and landside congestion.

The below has been the initial details provided on the commencement dates and our Customer Operations Coordinators will be in touch for our import/export bookings that will be impacted:

FREMANTLE – commencing Saturday 18 July

• Stoppage of work for 1 hour, three times every day, at 01:30, 09:30 and 17:45
• All terminal operations will be stopped during these hours
• Work restrictions

MELBOURNE – commencing Tuesday 21 July

• Stoppage of work for 2 hours, three times every day, at 05:00, 13:00, and 21:00
• All terminal operations will be stopped during these hours
• Work restrictions

BRISBANE – commencing Tuesday 21 July

• Stoppage of work for 1 hour, three times every day, at 06:00, 14:00 and 22:00
• During these 1-hour stoppages, vessel operations and non-automated yard operations will be stopped, and there will be no road operation in the Old Yard
• Landside receival and delivery operations to the automated modules will continue as normal.
• Work restrictions

SYDNEY – commencing Saturday 18 July

• Work restrictions

As you can see in the above there are not any end dates provided by the MUA on this industrial action at this stage so we will keep you up to date as the situation unfolds.

Best regards,

NEOLINK Marketing Team

NEOLINK Announcement – Brown Marmorated Stink Bug (BMSB) Seasonal Measures Update 2020/21 – from Sep 1^st 2020 to 31^st of May 2021

Monday 13^th of July 2020

Dear Valued Clients,

Recently the Department of Agriculture, Water and the Environment released their updated measures for the commencement of the BMSB Season for 2020/21.

I have attached/provided more detail below in addition to a Key Summary (however I strongly advise all importers to review everything thoroughly):

• BMSB is exotic to Australia and has been identified by the department as a seasonal hitchhiker pest
• Stink bugs have a tendency during late autumn/winter months in the northern hemisphere to stowaway in cargo or on/in containers
• Heightened biosecurity measures as a result are introduced by the department of agriculture requiring containers/cargo to be treated/fumigated before being released into Australia
• Targeted Goods and Countries are provided in detail below, as well as in the attached fact sheets
• There are Three approved treatment options for BMSB – 1. Heat, 2. Methyl Bromide and 3. Sulfuryl Fluoride
• FCL Containerized Cargo Goods can be treated at origin or destination at approved premises by the Department of Agriculture
• For goods to be treated at destination, the department has strict packing guidelines to ensure fumigant can circulate withing the container and there is enough space to access goods if required
• NEOLINK will be working individually with our clients proactively that will be impacted by the BMSB Season and will be taking a customer focused solutions approach

Seasonal Measures for the 2020-21 Brown Stink Bug Risk Season

In response to the rapid expansion of BMSB throughout in particular Europe and North America the Department of Agriculture has retained the same seasonal measures from previous seasons.

For this upcoming season, the below measures apply to:

• Certain goods manufactured in, or shipped from target risk countries and/or
• Vessels that berth at, load or tranship from target risk countries,

From 1^st of September 2020 and that arrive in Australia territory by 31^st of May 2021 (inclusive)

The Department of agriculture has stated that they will be undertaking random inspections not just for the above targeted countries.

They are also going to be also monitoring “at risk countries” below and conducting random inspections for:

• Emerging Risk – Belarus, Denmark, Ireland, Poland, Sweden, UK, Kazakhstan and Chile
• Lower Risk but Monitored – All other EU Countries, Japan, China, Korea, Taiwan, Argentina, South Africa and Uruguay

Treatment Requirements

• Mandatory offshore treatment – Break Bulk consignments of high risk goods shipped from a high risk country including OT and Flat Rack containers will be required to treat offshore. If any untreated Break Bulk cargo arrives into Australia during the BMSB Season it will be denied discharge and redirected for export upon arrival.

• Mandatory offshore or onshore treatment – treatment of target high risk goods shipped from a high risk country shipped in six hard sided containers will be required during BMSB Season. Goods will need to be treated at approved Department of Agriculture treatment centres either at origin or destination in Australia.

• Fumigation Certificates – NEOLINK have existing relationships both at origin and destination with approved department treatment providers. The majority of our customers arrange their importing with us under FOB/EXW terms and we will be assisting with coordinating treatment and compliance closely with the Department of Agriculture. However, if you are arranging under CIF/CFR Terms we strongly recommend you take control of your freight during this period under FOB/EXW terms and manage the entire process to ensure compliance. We have seen multiple instances last season where goods were treated at non approved facilities or with fraudulent certificates and as a result required retreatment on arrival or in some instances had to be reexported .

If your goods are not classified as “target high risk” or “target risk goods”, BMSB seasonal measures do not apply.

Container Packing Guidelines

key factors that must be considered when determining the suitability of a consignment for treatment include:

• free airspace for the effective distribution of the fumigant/ heat to all surfaces of the goods, and for the appropriate placement of concentration sampling tubes and/or temperature monitoring sensors and fans.
• type of plastic packaging around the goods (commercial or shipping)
• whether shipping packaging present restricts fumigant/heat access to goods
• ability to adjust the spacing of goods and packaging prior to treatment if required and if permitted
• interaction of free airspace and packaging in restricting fumigant/heat access to the goods
• ability to assess the entire consignment/container of goods

It is important that all of the above information is shared with your suppliers to ensure compliance with the loading of your containerized goods. NEOLINK will work closely with our origin offices as always to ensure that we are meeting compliance on all of the above, but in a lot of instances where we are not in control of loading the cargo into the container so we need your suppliers to comply with the packing guidelines in the attached fact sheets.

Onshore vs Offshore Approach

Our recommendation as a business is to not take a one size fits all approach with regards to BMSB season and will take a client focused approach with clear recommendations.

There are a number of factors that NEOLINK and our Customer Operations will be taking into consideration when either recommending your goods for treatment at origin or upon arrival into Australia:

• Urgency of goods
• Cut off times for booked sailing, time available to fumigate and goods readiness
• Lead times or waiting times at fumigation centres at Origin
• Commercials – i.e. pricing at origin vs destination (will vary depending on the port of loading)
• Shippers distance/additional trucking to available fumigation centre at origin

We will run each decision past our clients before fumigating/treating and our recommendation will be dependent on the factors above. BMSB Seasonal Measures not only put a cost implication on importers but also a lot of responsibility and compliance with regards to meeting the requirements of the Department of Agriculture. NEOLINK and our team are here to help you navigate through this season and are happy to provide as much advice as required to any key stakeholders in your businesses.

Best regards,

NEOLINK Marketing Team

NEOLINK Global Freight Update and Impact on Australian Supply Chains – 6.7.20

Monday 6^th of July 2020

Dear Valued Clients,

As we continue to navigate these challenging times, we appreciate your support and understanding as we work together to manage your supply chains in the most effective way we can.

In this update I will go into some detail about the state of the global freight market, impact on local supply chains and more importantly what we can do to reduce risk to help deliver in full on time for all our customers.

If you are not able to read the detail I have provided a Summary of Key Points below:

• Global Trade has contracted by more than 15% since COVID 19 commenced – -5% more than 2008 GFC
• Ocean Freight rates are on the rise due to increasing demand and contraction in supply of vessels/services from shipping lines
• Air Freight rates are improving from Asia and Europe but are still nowhere near pre COVID
• We expect ocean freight rates to increase unless there is an increase in services provided by the shipping lines or a slowdown in demand
• Australian Ports continue to push ahead with infrastructure fee increases across the country as they look to recoup lost profit from H1
• NSW Transport has increased tolls on the M5 and M8 from 5^th of July
• Supply Chains need to be extended and lead times increased as we look to effectively manage customers’ expectations over H2 of 2020

Please ensure your NEOLINK Customer Operations Coordinator is kept in the loop on all PO’s that are raised with your suppliers. The earlier we are made aware we can provide our Purchase Order Management service to you all at no cost and this enables us to plan ahead with all carriers as early as possible. In some instances of port congestion we are working closely with our origin agent offices to analyse any shipping lines that may be over booked and ones that have space to provide you with real time updates and mitigate the risk of containers rolling at origin.

In addition to the above summary I have also provided more detail below across four of the major areas we are discussing with our clients at this point in time:

1.Global Ocean Freight Market and Southbound Services

All except one of the major 12 shipping lines have reduced capacity by approx. 5% since the start of 2020 equating to 13.5 million fewer TEU’s being shipped (source: FBX Container Index). This contraction of supply has in the same time period seen an unexpected increase in demand from Australian importers, as our country effectively managed the COVID 19 outbreak relative to most countries.

In the past four to six weeks we have also seen the Shanghai Containerized Freight Index and FBX Container Indexes increase by approx. 20 to 30% on average in comparison to prior years (see below). NEOLINK are constantly reviewing the market with our origin partners to ensure we get the best rates possible in market.

The main driver in the contraction of services put on by the shipping lines has been the overall drop in global trade, despite the growing and increasing demand from Australia. Importers have to contend with the unfortunate reality that global shipping lines seeing a significant drop in profitability in H1 of this year and may be slow to pass on rate reductions as they put on the additional services over “peak season”, due to other markets not performing as strongly.

The space issues incurring particularly at major tranship ports such as Hong Kong, Klang and Singapore are resulting in massive back logs as we head into July. After having conversations with PIL’s General Manager last week, they have over 4 weeks of back log alone in Port Klang, considerably impacting their southbound freight. Cheap shipping rates from tranship through these ports are attracting a significant number of bookings but with that is a high increase of those bookings being rolled or delayed.

One way we are mitigating this risk is by working with our origin partners to check on a daily basis which shipping lines are overbooked or have space relative to the rate and working with our customers on reducing the incidence or containers being rolled before they happen. This may result in rebooking with another line at a higher rate, but avoids delays where we can avoid them.

2.Shipping Line Contracts and Space Guarantees

Shipping Line contracts that are fixed with space guarantees are now starting to introduce new GRI and LSS Surcharges that are variable. Some of our biggest clients that have in excess of 1,000 containers per annum that had fixed rates are seeing their rates come in above market at a premium to hold the space and essentially no one is exempt from avoiding these costs. The shipping lines here locally do not have a lot of appetite at the moment for NAC (named account contracts) and are avoiding them where possible as origin offices are essentially doing what they want and delay bookings regardless of the importer.

Our recommendation as always with our clients is to play the variable freight market and allow us to closely monitor the market with our origin partners. Our Origin offices are always in close contact with your suppliers and working closely with them to forward plan as effectively as possible. If something is extremely urgent or you need a 100% guarantee, some lines will guarantee space at a premium of $200 to $300 USD per TEU if you need that security.

3.Australian Ports Infrastructure Costs and Sydney M8/M5 Toll Increases from 5^th of July

In addition to the above Global Freight Market challenges, Australian Ports are implementing a “growth strategy” a term dubbed by Roger Fletcher from the Freight Trade Alliance (FTA) to steadily increase the per container infrastructure fee charges through 2020.

All of the State Governments have been asked by their respective transport ministers over the past 12 months to hold off on fee hikes at the ports and unfortunately has fell on deaf ears not only since COVID, but the past 3 years. DP World alone since the beginning of 2020 increased their port fees by 43% at Port Botany and further increases are expected to continue over the coming months. The Freight and Trade Alliance (FTA) are lobbying on behalf of all importers and Freight Forwarders to combat these charges, but to date have largely been unsuccessful.

• https://theloadstar.com/more-anger-in-australia-as-dp-world-announces-higher-terminal-access-fees/
• https://www.afr.com/companies/infrastructure/fee-lift-sparks-new-waterfront-war-20191126-p53ebm
• https://www.afr.com/companies/infrastructure/dp-world-snubs-andrew-constance-hikes-port-fees-20200106-p53p55

DP Worlds Western Australian General Manager has stated “Our industry is experiencing rising costs in the most dynamic and competitive market conditions in decades. We are tackling this across a range of fronts, including delivery of further efficiency and productivity initiatives, and in recent months a workforce restructure. The continuation of the rebalancing of revenue recovery from waterside to landside is necessary to adequately account for landside costs, and fundamental to a sustainable future in this challenging market”.

As a lot of our NSW customers will be aware the new M8 connection opened last week and has resulted in the NSW Transport Minister imposing new toll increases on passenger, as well as commercial vehicles from the 5^th of July.

https://7news.com.au/travel/sydney-m5-tunnel-toll-to-be-introduced-as-m8-set-to-open-this-weekend-c-1133744

The toll increase across both the M8 and M5 will effectively make it impossible for any delivery that is outside of Zone 1/2 to now avoid tolls, which we will pass onto our customers at cost. All of these increased costs of doing business are to be expected given the times, but we appreciate and understand the challenges these increases present on the ultimate landed unit cost of your goods.

4.Effectively Managing Supply Chain Risk for a Competitive Benefit

Despite the challenges presented, we believe that this also presents a great opportunity to work proactively with our customers to navigate this new market landscape and help compete. NEOLINK have invested heavily in systems automation & tracking capabilities to ensure our team are freed up to focus less on back of house to working closely with your suppliers, shipping lines and local carriers to ensure you get your goods as quick as possible in the most cost effective way possible.

Over the coming weeks our team will focus on engaging with you on the below:

• Extending lead times with suppliers where possible – if you allowed for 4 weeks EX china before COVID, increase this to 6 and allow for this change in your supply chain
• Purchase Orders and Bookings – please CC us in where you can on these PO’s or provide us with a forecast ahead of time
• Be flexible on decision making at the time of loading – space vs rate is a decision that we need to make collaboratively with your team where necessary to help reduce rolling risk
• Rethink Direct vs Tranship – if you can afford the time by planning out longer lead times and are ahead of schedule we can save money by booking on cheaper longer tranship options where feasible

Over the past QTR we have seen a lot of our customers successfully manage this climate by being agile and working with us proactively on all of their import requirements. We appreciate that these are challenging times, but we believe our core competency of combining great people with industry leading technology is leading to our customers in these times really seeing the services levels we can provide. Our team will continue to help support your businesses over the 2^nd half of the year and keep you up to date as quickly as possible with any updates we receive.

Best of luck for the new financial year and the rest of 2020!

NEOLINK Management Team

Boot Buddy to Launch in Australia with NEOLINK as Appointed Distributor

NEOLINK have become the distributor in Australia for The Boot Buddy Ltd from the hit UK TV Series, Dragons Den.

4th of March 2020

The Boot Buddy Ltd and NEOLINK Logistics & Distribution today announced it has commenced working together on the distribution of Boot Buddy in the Australian Market.

Boot Buddy is on a mission to change the way people around the globe clean their muddy footwear. The founder, Arminder Singh Dillon was the youngest entrepreneur to get financial investment on the UK hit TV series, The Dragons Den at aged 15. Peter Jones, Deborah Meaden and Touker Suleyman all invested in the business and assisted the young entrepreneur in the business growth and expansion.

NEOLINK will begin distribution of the Boot Buddy Cleaner from the beginning of this year with a key focus on driving local online and digital channels. The innovative Boot Cleaner product will be the first of its kind to be launched in Australia and help parents of sporting kids “leave the outdoors outside!”.

“We have partnered in the past with Dragons Den UK brands with tremendous success and look forward to doing the same with The Boot Buddy” said Sean Crook, Director at NEOLINK. “Australia is a big sporting nation with over 63% of children participating in organized sport and approximately one million of them playing football, rugby or AFL. I am sure that a number of the parents of those children are experiencing the same problem as their counterparts in the UK that the Boot Buddy was able to solve”.

NEOLINK will largely focus the initial launch via its dedicated social media channels and online store to ensure Australians nation-wide can buy the Boot Buddy cleaner. “Through our logistics network we are able to ensure that the product is made readily available to ship at an affordable price to Australian consumers in a timely fashion. It is important we educate everyone about the Boot Buddy and that something like this is available here in Australia. Social media is a great platform for us to do that, where we can also share the Dragons Den story to promote the product and drive brand awareness for Boot Buddy with Australians.

“Boot Buddy is excited to partner with NEOLINK and help drive our brand in the Australian market” said Gurminder Dillon from Boot Buddy UK. “The Boot Buddy Cleaner will be available via the Boot Buddy Australia Online Facebook page launching in the coming week and the team at NEOLINK will be driving other new business channels across the country in the coming months ahead”

About Boot Buddy
The awesome Boot Buddy is highly convenient, durable and efficient product that is able to clean all the dirt on majority of boots and shoes out there. With its durable plastic pick and powerful brush with strong bristles it picks out the chunks of mud and grime on soles and sides of your boots and washes away and cleans EVERYTHING OFF! The best part is – it all happens in less than a minute! Suitable and recommended for Football, Golf, Horse Boots, Outdoors, Walking boots and much more.

About NEOLINK Logistics + Distribution
NEOLINK are a global logistics + distribution business with HQ in Sydney. They offer a full range of logistics services including air freight, sea freight, customs clearance, warehousing and transport. Leveraging the efficiencies of their logistics network; NEOLINK provide a full spectrum of distribution services for international brands looking for a partner in the Australian market.

NEOLINK Announcement – Coronavirus Update and Impact on Shipping from China – 17.2.20

Dear Valued Clients,

Given the continuing impact on the global economy the Coronavirus is having, I thought It was important to provide an update this morning.

The Coronavirus as I am sure you are all aware is having a significant impact on the global economy and is anticipated to have an impact on all countries gross domestic product this quarter.

I have provided a short breakdown below on how this is happening from a global logistics perspective and how this is impacting Supply Chains for you to share with your customers:

1. Factories Workers: the majority of factory workers in the south of china in particular are from other regions or provinces around the country. The mass migration of Chinese New Year has meant that the government has been forced to stop workers from returning to work and reduce the risk of the spreading of the virus. Situations vary depending on the province, but 99% of factories remain closed until today at the earliest and we are hearing that this may extend to the beginning of March depending on the provinces. Once workers to travel (if approved), they are being forced to stay confined in their apartments for up to a further two weeks before being allowed back to work.
2. Production: Simply without the factory workers, production times are being extended and delays are naturally going to occur across all industries
3. China Export Customs: Depending on the region for every ocean or air export from China needs to be processed by customs officials online and we anticipate that the lack of resource will create delays with China customs. In turn we anticipate this will create challenges with meeting sailing cut offs with the shipping lines and making vessels.
4. Shipping Lines: Due to the above; the shipping lines are forecasting blank sailings over the course of the next few weeks. Some services will still continue to run, but it is expected that transit times will extend if they are run at all. From a shipping lines perspective they will not move a vessel if it is only at a certain capacity – simply put, if there is not enough cargo they cannot justify moving the boats. Below is what we have confirmation of so far, but expect this to change ongoing over the coming weeks:

A3S	OOCL/ANL/Cosco	XMN/SHK/HKG to SYD/MEL/BNE	* Three weeks blank sailing ETD SHK 19/2 + 24/2 + 2/3 * Shipping line arrange A3C sailing add call Shekou / HKG to take all AUEC booking ex S. China.
A3C	OOCL/ANL/Cosco	SHA/NGB to SYD/MEL/BNE	* In week 7 + 8 + 9 – add call Shekou / HKG
AAUS-SL/Yoyo	HSUD/MSC/Maersk/ONE	XMN/NSA/YTN/HKG to SYD/MEL/BNE	* Three weeks Blank sailing ETD YTN 16/2 + 23/2+1/3 * Shipping line arrange AAUS-NL sailing add call HKG to take all AUEC booking ex S. China. Booking ex Shenzhen/PRD via HKG.
AAUS-NL / Boomerang	HSUD/MSC/Maersk/ONE	TAO/SHA/NGB to BNE/SYD/MEL	* In week 7 + 8 + 9 – add call HKG
CA6	ANL/EMC/HMM/HPL	TAO/SHA/NGB/YTN to SYD/MEL/BNE	* From week 8 – change the routing – first calling Melbourne then Sydney and Brisbane * extend 6-7 days T/T to SYD
ANZEX/CNS	OOCL/ANL/Cosco/HPL	SHA/NGB/SHK to BNE/NZ ports	* Blank sailing ETD SHA 14/2 * The sailing ETD SHA 21/2 omit call Brisbane
ANZL/JKN	HSUD/Maersk/ONE/Cosco	SHA/YTN/HKG to BNE/NZ ports	* From week 8 – extend 7 days T/time to Brisbane and New Zealand ports.

5. Local Importers Stock and Inventory Levels: Across our 100+ Customers that import from China there has not been 1 company that has not been impacted by the Coronavirus on their stock levels. Stock and Supply is being constrained, which in turn is impacting end customers here in Australia.

So what can we do and what is our recommended approach?

Control the controllables! Please ensure that the NEOLINK team are aware of ALL of your pending/upcoming purchase orders along with the factory and load this into the system (we will also proactively reach out). This will enable us to forward plan as much as possible and ensure that we can work with the carriers to manage accordingly. Please DO NOT hold onto orders and then approach us at the last minute expecting a booking – our team will do our best in this situation, but there is a higher risk with this approach in delays occurring. Please leverage the Purchase Order Manager Service we offer (free of charge and part of our offering) and let us manage/prebook accordingly.

Despite our above recommendation there is still a high probability of delays occurring across all carriers and ports in the coming weeks, so please manage your customers’ expectations accordingly. Alternatively; Chris and I are also have to speak directly with your customers to answer any direct questions they might have if they want a bit more insight into what is occurring.

Best regards,

NEOLINK Marketing Team

New Starter Announcement – Matt Cirson – Business Development Manager – 10.2.20

Monday 10th of February 2020

NEOLINK are today excited to announce the appointment of Matt Cirson as Business Development Manager . Matt will be responsible for sales team leadership, driving new business revenue, new client on boarding and supply chain review/implementation.

Matt brings a wealth of experience to the team having worked in FMCG International Logistics Industry for 20 years across operational and new business roles at some of the worlds largest freight forwarders. During his successful tenure at those companies Matt has worked across Export/Import operations, eventually working his way up to Operations Management and eventually making his transition into National Business Development Management positions. His unique operational background, combined with his new business implementation skills are going to be of huge value to our new clients and our customer operations team as NEOLINK continues to grow.

About NEOLINK Logistics + Distribution
NEOLINK are a global logistics + distribution business with HQ in Sydney. They offer a full range of logistics and distribution services including air freight, sea freight, customs clearance, warehousing, transport and eCommerce fulfillment.

NEOLINK Announcement – China Extends New Years Holiday to February 2nd to contain Coronavirus – 28.1.20

Monday 28^th of January 2020

Good Morning Valued Clients,

Amidst the Coronavirus outbreak; The State Council for the Peoples republic of China has announced it has extended the Lunar New Year Holiday until the February 2^nd by one week. (Announcement Attached)

In addition to the above, The Shanghai Municipal government has also announced that it will extend the holiday even further than the rest of China to the 9^th of February. This move has been expected as the government and healthcare authorities double down on efforts to contain the virus outbreak by restricting public movement as much as possible.

As such this means that a number of factory and office employees will not be back to work as anticipated, which I am sure is being communicated to you by your suppliers directly.

So what impact does this have on shipping?:

• Fewer staff will be on board to complete orders and will result in Air/Sea handling delays
• Vessel bookings will be rolled onto further weeks
• China Export Customs will take longer to process shipments
• Delays across all aspects of the supply chain from trucking to vessel/flight departures

What can NEOLINK and you do?:

• Forward plan ahead as much as possible
• If you have not done so already; send through any outstanding orders to us that we might not be aware of for February
• Forward on this communication/announcement to your own customers that might be impacted
• Anticipate delays and manage stock/orders accordingly by bringing forward orders that might have been planned for the end of February
• NEOLINK to work with your suppliers to make bookings now to ensure we can work to secure space where available

Our team will proactively be in contact to discuss the impact and try to ensure we plan to manage this situation as best as we can.

Ultimately these delays are out of everyone’s control and we can try to limit the impact on your business as much as possible.

If you have any questions, please feel free to call any member of the team.

Best regards,

NEOLINK Marketing Team