August 7, 2020

Victorian restrictions: beginning of the end of an efficient supply chain

Victoria is extensively locking-down its population and its economic activity, particularly in Melbourne, to combat a sustained surge in COVID-19 transmission.

Commenting on the changes, Shipping Australia CEO Rod Nairn said: “Changes to Stage Four restrictions impacting on the warehousing sector late in the evening of Friday 7 August 2020 may have significant negative impacts on the international logistics sector.

“Warehouses will be required to reduce their staff levels by a third which will impact on their ability to unpack containers and distribute to supermarkets and other retail outlets. Even exports will not be immune as the capacity of those warehouses to pack agricultural products into containers will be adversely affected by up to a third.

“Unless we see a productivity miracle, this means we will see a backlog of containers at ports; shortfalls in shipments for exports and the beginning of the end of an efficient international sea freight chain which we have managed which to maintain since the beginning of the COVID-19 outbreak.”

Restrictions in metropolitan Melbourne

Extensive restrictions in Victoria require workplaces to close unless they are on a permitted list. Various kinds of food processors, manufacturing facilities and retailers of essential goods are allowed to operated.

Employers in permitted businesses are only allowed to have employees on site if it is not reasonably practicable for the employee to work from home and that both the employer and employee comply with the rules.

Trade and logistics

Businesses in the trade and transport sector that are permitted to work are:

  • warehousing, road transport (passenger and freight)
  • rail transport (passenger and freight) – including rail yards
  • water transport (passenger and freight) – including ports and Tasmanian shipping lines
  • air transport (passenger and freight) (but note, Melbourne Airport is closed to international flights)
  • pipeline and other transport
  • transport support services
  • vehicle repairs and critical maintenance including disinfection
  • towing services
  • public transport, ride share and taxis, for other workers or emergencies.

Warehouse and distribution centre restrictions

However, although businesses may be permitted to work, they still must adapt to COVID-19 risk management strategies and tactics. From 11:59 pm on Friday 7 August the following changes will be adopted by Victorian warehouse and distribution centres.

Each warehouse and distribution centre will:

  • enact a High Risk COVID Safe Plan focused on safety, prevention and response if coronavirus cases are linked to their workplace
  • reduce the number of people in the workplace
  • increase the regularity of deep cleaning
  • enforce the wearing of face coverings by staff on site

Regional Victoria

In regional Victoria, people are confined to home except for four reasons such as shopping for essentials, compassionate reasons, to exercise or to work if that cannot be done from home. People in regional Victoria are not allowed to travel to metropolitan Victoria.

The intense lockdown in metropolitan Victoria does not apply to regional Victoria.

Further reading

Coronavirus resources including official Directions

Stage 4 restrictions – metropolitan Melbourne

Stage 3 restrictions – everywhere in Victoria except Melbourne

Business Activity Directions Come Into Effect

Transport, Postal and Warehousing sector guidance

Wholesale Trade sector guidance

Retail Trade (Goods) sector guidance

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