Vfacts february 2021

[Dr Smith]

Originally Posted by BENT_8

Or, people could just choose to ignore posts which quote opinions they dont agree with, pretty simple id have thought.

My initial post stated that Hilux outsold Ford, it wasnt that long ago that Hilux out selling Holden was hilarious, not so funny now.

The post Boss was triggered by didnt even mention Ford, it was a general observation that running short of vital components isnt the smartest strategy for any manufacturer and last i looked, Vfacts covers all mainstream brands. Everyone copied Toyota when they went to JIT, yet apparently they all need natural disasters to realise some things need to be kept in stock.
Just more excuses for poor planning.

So I'm assuming you have visited every forum of every manufacturer suffering production cuts due to component supply shortages/delays and criticized their management for poor forward planning....because if not then you really are here only to stir the pot ..which is fine.....it's just something I'm sure is a waste of your knowledge and what you could add to this forum if you ever decide to be a glass half full every once in a while...

[Franco Cozzo]

There's drama and it doesn't involve me? How dare you!

I'm starting to get a lot of notice through from overseas suppliers about COVID19 effecting their supply chain, sort of like an excuse for their poor performance.

I'm not sure who to believe because they were poor suppliers prior to COVID19 anyway

It does seem to be causing issues right now though, which is odd you'd think it would have started right at the beginning, surely because of JIT/lean manufacturing principles it would have been effecting them right at the beginning of the shennanigans?

Plus global container shortage at the moment causing mayhem with sea freight too.

Also computer parts seem to be borderline impossible to get your hands on too.

[hayseed]

Originally Posted by Franco Cozzo;6554090

Plus [B

global container shortage at the moment causing mayhem with sea freight too.

[B]I've noticed lately this has overtaken the Virus Express as EXCUSE OF THE MONTH


But as you say their service level prior to the Spicy cough were hardly inspiring anyway..

[Franco Cozzo]

Originally Posted by hayseed

I've noticed lately this has overtaken the Virus Express as EXCUSE OF THE MONTH


But as you say their service level prior to the Spicy cough were hardly inspiring anyway..

I'm over people using COVID19 as an excuse, everyone's been blaming poor service or support on COVID19 when they're just ****ful suppliers anyway without global pandemics.

One in my world promises 70 day lead times but pre pandemic their real lead times were 130-150 calendar days anyway.

[PG2]

As you can see, BENT_8 is having a short break from AFF to think about what he wants out of AFF.

While all opinions are welcome in AFF, opinions that are posted to simply upset others or just to have a dig at Ford will not be tolerated such as this one from BENT_8, "I limit my digs at Ford to vfacts threads these days..."

This is still a Ford forum so there will always be bias towards Ford and no excuses and/or justifications will be made for that.

[Dr Smith]

Originally Posted by Franco Cozzo

I'm over people using COVID19 as an excuse, everyone's been blaming poor service or support on COVID19 when they're just ****ful suppliers anyway without global pandemics.

One in my world promises 70 day lead times but pre pandemic their real lead times were 130-150 calendar days anyway.

I've also seen since say May last year that suppliers are not holding as much stock levels of regular items in Australia as pre-Covid or asking for forward orders up to full container loads before they bring product into Australia. This is even for items that had good stock turn-over, I guess they're reducing their risk but haven't told us customers we need to order months in advance when previously it was a case of email order, wait max 3-4 days and then receive into store..

[FTE217]

Originally Posted by Franco Cozzo

There's drama and it doesn't involve me? How dare you!

I'm starting to get a lot of notice through from overseas suppliers about COVID19 effecting their supply chain, sort of like an excuse for their poor performance.

I'm not sure who to believe because they were poor suppliers prior to COVID19 anyway

It does seem to be causing issues right now though, which is odd you'd think it would have started right at the beginning, surely because of JIT/lean manufacturing principles it would have been effecting them right at the beginning of the shennanigans?

Plus global container shortage at the moment causing mayhem with sea freight too.

Also computer parts seem to be borderline impossible to get your hands on too.

There is always "excuse's" and bad suppliers but fact of the matter is covid has set many changes in how we work, play and daily life as we all know etc....its not covids fault per say but trouble is how Industries have had to react on the run due to demands and longer lead times.
NO OS travelling, has increased in Lifestyle products selling far more than pre covid is a fact.
WFH has increased demands not like before, people setting up their home office etc....
China's bans on us has effected Imports/Exports flows like never before.
Lead Times as you mention had/have been stretched out far more, my company has increased orders a 2 times and by the time it lands the BO's have increased three fold so you order more and more.
It is not easy predicting sales flows/demands.
Inventory levels of all those Industries that have huge demand increase is not easy catching up, I wish we'd be banking more.
Aftermarket where we're placed is riding the covid NO OS travelling wave - some companies I know incl us have had to AF Inventory in at times to cover demands for many clients play the loss of sales game and wish to incur Loss of Sales Invoices to suppliers.
Opposing Companies are buying from whoever they can get similar product to fulfill their demands.
Freight line companies have the world by the short and curlys, container costs + duties etc have increased dramatically.
See below the shipping issue notices we recieve around Christmas for another idea for youse :
With the end of 2020 insight, one more factor is coming to a head that is negatively impacting supply chains for both importers and exporters: Empty Container Park Capacity.
Empty Container Parks (ECPs) in Melbourne, Sydney & Brisbane are at capacity. This means there are too many empty containers sitting at ECPs and wharf carriers (landside transport providers) are unable to meet their obligations in the timely sourcing and return of empty containers from ECPs. Which ECP an empty container goes to is directed by the shipping line. In the current situation, shipping lines are also changing the ECP with little or no notice to the wharf carriers which creates even more confusion, delays and, additional charges.
Three major factors have led to ECPs being at capacity:
1. Containers not being repositioned from Australia due to unknown demand for many goods caused by COVID-19,
2. China's recent ban on goods from Australia has reduced the number of containers making their way overseas full of exports from Australia, and
3. Record high imports to Australia in the past three months.
These three factors when combined have created a perfect storm for ECPs. ECPs can't cope with the volume of empty containers sitting at their facilities which means in many cases, empty containers are being stored at the yards of wharf carriers till they can be moved to ECPs.

In addition to creating congestion issues at wharf carriers' yards, late fees are being charged for the late arrival of the empty containers by shipping lines. These costs, which are charged on a daily rate, are being passed along to wharf carriers and will eventually be passed along to the shipper.

Our team continues to work extended hours to ensure we are booking as many slots at ECPs as possible to return empty containers without penalty and while we have been successful to date in working to negotiate the reduction or removal of some of these late fees, we anticipate that moving forward some of these fees will need to be passed on to our clients.

IF only it was so easy Franco, as mentioned there are bad suppliers period no matter the times, as you know companies have choices who to buy from, stick with under performing ones service lacks far more than good ones but even they are struggling keeping up with Importing, getting shipping spaces on Freight Lines is GOLD to date might I add.

[Sprintey]

Thanks for that post FTE, it seems we have too many shipping containers - are prices of them falling?

Has China banned further goods of ours after the crayfish and coal?

Anyways, here's an on-topic link from a site many of us probably like:

https://www.carexpert.com.au/car-new...nductor-supply

Seems Joe is sounding out a very Trump-like policy - ie, make the chips domestically. And giving it urgency.

I hope there is a trend of re-shoring critical capacity in the West. It will be more expensive, but it won't get caught out in times of chaos.

Anecdote from down here, trades are at flat tack as we build our way out of corona recession. So glad I ordered my own machinery in the depths of the virus this time last year.

[Bossxr8]

Sea freight is probably increasing a lot due to the insane pricing airlines are charging for airfreight post-covid.

Shipping a car to the US doubled nearly overnight.

[Franco Cozzo]

Originally Posted by Bossxr8

Sea freight is probably increasing a lot due to the insane pricing airlines are charging for airfreight post-covid.

Shipping a car to the US doubled nearly overnight.

Imagine being able to build cars locally - *ba dum tsh!*

I'm here all night for autographs

[Bossxr8]

Originally Posted by Franco Cozzo

Imagine being able to build cars locally - *ba dum tsh!*

I'm here all night for autographs

Prototype builds are built here.

But even if local manufacturing of cars was still large scale, they would go by ship, not plane.

[jpd80]

I’ve just heard that Ford’s Chip shortage should start abating in H2 of this year

[jpd80]

Good chance European hybrid Escape will be coming to Australia

[Big_Daz]

Originally Posted by FTE217

Freight line companies have the world by the short and curlys, container costs + duties etc have increased dramatically.


Assume you are talking about Customs Duty? Covid hasn't effected Customs Duty, its based on the Commodity being imported and the Customs Value. Other costs involved in this process have increased though for sure.


See below the shipping issue notices we recieve around Christmas for another idea for youse :
With the end of 2020 insight, one more factor is coming to a head that is negatively impacting supply chains for both importers and exporters: Empty Container Park Capacity.
Empty Container Parks (ECPs) in Melbourne, Sydney & Brisbane are at capacity. This means there are too many empty containers sitting at ECPs and wharf carriers (landside transport providers) are unable to meet their obligations in the timely sourcing and return of empty containers from ECPs. Which ECP an empty container goes to is directed by the shipping line. In the current situation, shipping lines are also changing the ECP with little or no notice to the wharf carriers which creates even more confusion, delays and, additional charges.
Three major factors have led to ECPs being at capacity:
1. Containers not being repositioned from Australia due to unknown demand for many goods caused by COVID-19,
2. China's recent ban on goods from Australia has reduced the number of containers making their way overseas full of exports from Australia, and
3. Record high imports to Australia in the past three months.
These three factors when combined have created a perfect storm for ECPs. ECPs can't cope with the volume of empty containers sitting at their facilities which means in many cases, empty containers are being stored at the yards of wharf carriers till they can be moved to ECPs.

In addition to creating congestion issues at wharf carriers' yards, late fees are being charged for the late arrival of the empty containers by shipping lines. These costs, which are charged on a daily rate, are being passed along to wharf carriers and will eventually be passed along to the shipper.

There have always been charges for late return of empty shipping containers (10 days from them they are made available at the wharf on arrival was always the standard allowance) so this is nothing new. Obviously Covid and the Empty parks being overfull has made these charges, unfortunately, more common. Its been a "thing" for many years whereby shipping line will make life hard or even change the empty park last minute in an attempt to confuse the Importer/Clearance agent/Transport company into taking it to the wrong one or return it late so they can charge the $$$ for the demurrage. Its an easy bit of extra sneaky profit for them... I've had many a "heated discussion" about it in my time.


I now work for one of the "big 2" express air freight companies in Aus and we have been absolutely flat out since early 2020 (busier than its ever been). We have our own planes that we use for 95%+ of our goods coming in so we don't rely on commercial carriers like general freight companies who have had to deal with not only a lack of capacity but the airlines being able to charge higher than usual for it.

[nstg8a]

Our air freight charges at work have risen by a huge amount, it cost $35000 to have four pallets flown from Malaysia to Brisbane a couple of weeks ago.


Sent from my iPhone using Tapatalk

[Dr Smith]

Originally Posted by nstg8a

Our air freight charges at work have risen by a huge amount, it cost $35000 to have four pallets flown from Malaysia to Brisbane a couple of weeks ago.


Sent from my iPhone using Tapatalk

One day I'll be invoicing as follows: Cost of item $10, freight charge: $1000....

[Bossxr8]

The Puma outsold the Kia Stonic to move into the top 5 light SUV's. Why is no one questioning Kia? They can do no wrong. Or is it harder to introduce a nameplate and build sales than people think?

In huge news, the Transit Bus 12 seater, which has just gone on sale, sold 11 units to move into second place in it's class, behind the Toyota Coaster Bus

[FTE217]

Originally Posted by Big_Daz

There have always been charges for late return of empty shipping containers (10 days from them they are made available at the wharf on arrival was always the standard allowance) so this is nothing new. Obviously Covid and the Empty parks being overfull has made these charges, unfortunately, more common. Its been a "thing" for many years whereby shipping line will make life hard or even change the empty park last minute in an attempt to confuse the Importer/Clearance agent/Transport company into taking it to the wrong one or return it late so they can charge the $$$ for the demurrage. Its an easy bit of extra sneaky profit for them... I've had many a "heated discussion" about it in my time.


I now work for one of the "big 2" express air freight companies in Aus and we have been absolutely flat out since early 2020 (busier than its ever been). We have our own planes that we use for 95%+ of our goods coming in so we don't rely on commercial carriers like general freight companies who have had to deal with not only a lack of capacity but the airlines being able to charge higher than usual for it.

yes mate I know there has always been charges been Importing for along time.
As you say they are very good at fleecing money off us, point was they are doing it more for they know everyone wants their containers delivered on their terms and more. Got you over a barrel or container should I say lol.
I also use UPS - for years as well.
Should have got into the freight business.

Soz back on topic.

[Big_Daz]

Originally Posted by FTE217

yes mate I know there has always been charges been Importing for along time.
As you say they are very good at fleecing money off us, point was they are doing it more for they know everyone wants their containers delivered on their terms and more. Got you over a barrel or container should I say lol.
I also use UPS - for years as well.
Should have got into the freight business.

Soz back on topic.

Agreed with you mate, even though I’m airfreight now (think WILSON!! lol) I keep my ear to the ground with sea freight and as soon as I saw that notice come out I wasn’t at all surprised... give the shipping companies an excuse and sure enough they will, as you say, try to put you over the container... demurrage is all profit for them... boy do I have some stories... but anyway.. lol... glad I don’t deal with it anymore...

But as you said mate, back on topic


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[BENT_8]

No Kia Stonic available in base model here yet so $26kda for Sport auto is entry, S to be available soon.

Damned if id pay $26k for a Rio on stilts.

[Hawkeye84]

Originally Posted by BENT_8

No Kia Stonic available in base model here yet so $26kda for Sport auto is entry, S to be available soon.

Damned if id pay $26k for a Rio on stilts.

The car launched in January in Top and Mid spec trims only.
And they dealers didn't have stock.
Base model in auto guise only started trickling through Feb.
It'll get up there in March.

The Stonic marketing campaign also stopped in February to focus on their new logo brand campaign during the Australian Open.

Bossxr8 is right, its hard sell a model that is/has an entirely new nameplate.
Especially when dealers don't have stock and customers cant see what it looks like.

[Hawkeye84]

If Australian manufacturing was still here, the Australian brands/cars would be going gang busters.

Unfortunately with natural disasters such as COVID and earthquakes, Australia is just a pin drop in the ocean compared to other bigger markets.

They'll prioritise them first before Australia...
Just cold hard truth

[BENT_8]

Originally Posted by Hawkeye84

Bossxr8 is right, its hard sell a model that is/has an entirely new nameplate.
Especially when dealers don't have stock and customers cant see what it looks like.

Agreed, however, he suggests supply issues with everything but Puma so it has that in its favour, Stonic not available in manual yet either which is neither here nor there.

Give it 6 months and we'll see a clearer picture.

[kevino]

Stonic ( what a pathetic name) is not getting good reviews from the motoring journo s.
Bent 8 would you pay $31500 for a Puma?
No?
Me too.
Manual Skoda Kamiq at 27/28 k would get my light SUV vote.

[BENT_8]

Originally Posted by kevino

Stonic ( what a pathetic name) is not getting good reviews from the motoring journo s.
Bent 8 would you pay $31500 for a Puma?
No?
Me too.
Manual Skoda Kamiq at 27/28 k would get my light SUV vote.

Agreed, mind you Seltos is just as bad and it sold over 500 units a month since launch.

Not a Skoda fan myself.

[danzvtil]

I test drove a stonic sport last week, when it came out i fan boi'd hard over it. Its soo close to rio in size i cant justify the extra $5k, and at $30k for the gt line, the interior is nothing special, it still has partial leather and not full.
It needs to be $3k cheaper.
A $21990 MG ZS looks like amazing value against the kia.

[jpd80]

Originally Posted by BENT_8

Agreed, however, he suggests supply issues with everything but Puma so it has that in its favour, Stonic not available in manual yet either which is neither here nor there.

Give it 6 months and we'll see a clearer picture.

Another manufacturer not afraid to ask higher starting prices on vehicles, good to see in regards to brand building but ignoring base models also means fewer sales. I’m wondering if more brands start following this trend, forcing up prices in the popular segments....

[naddis01]

All I see happening with higher pricing is the door being left wide open for the chinese brands to waltz on through.

[BENT_8]

Originally Posted by jpd80

Another manufacturer not afraid to ask higher starting prices on vehicles, good to see in regards to brand building but ignoring base models also means fewer sales. I’m wondering if more brands start following this trend, forcing up prices in the popular segments....

Was always going to happen once our local manufacturing closed.

[Bossxr8]

Originally Posted by jpd80

Another manufacturer not afraid to ask higher starting prices on vehicles, good to see in regards to brand building but ignoring base models also means fewer sales. I’m wondering if more brands start following this trend, forcing up prices in the popular segments....

They are all gradually doing it. Costs are going up and up and up, exchange rate isn't helping, and covid costs aren't either. Plus companies are all gradually moving over to the more profitable business model.

Toyota have done it with Yaris, and more will follow. Honda is moving to fixed cost pricing in July. Mazda have done it, as have Isuzu to name a few.

Get used to it. The days of selling cars at a loss, or at best break even are going.