Logistics

Australia’s cotton supply chain has a reputation as one of the most efficient in the world. This has enabled us to ship our crop in a timely and cost effective manner.

For many months however we have heard about disruptions in global supply chains and the impact these disruptions are having on global commodity flows, including cotton. Global shipping container flows have been greatly affected, and this is without a doubt providing challenges in the current season.

The size of this year’s crop adds to the complexity. Per the chart below it is estimated that Australia has grown approximately 5.5 million bales of cotton in 2022. The 2022 crop is nearly double the 2021 crop, and nearly 10 times the size of the drought effected 2020 crop. Our most recent large crop was back in 2018 when we grew around 4.6 million bales which was then the second largest crop Australia had grown.

We understand the challenges and importance of timely delivery to our export markets. As always, the Australian industry is working together to find innovative solutions for our customers that address the limited space. Australian cotton exporters are now employing a modern take on break bulk shipping to ensure bales arrive at destination on time and in excellent condition. This month the first such shipment of around 100,000 bales will sail out of the Port of Brisbane. Instead of packing cotton into 40-foot containers, break bulk involves loading cotton bales into specially designed bulk compartments of the ship. These compartments are sealed and must meet ‘hospital grade’ cleanliness standards at all times. The process involves bales being bundled together in an outer bag that provides added protection to the bale while in the vessel and during the loading and unloading operations.

As we move through the 2022 season and look towards another very large crop in 2023 ACSA and the Australian industry will be looking to work with supply chain partners to address the challenges as and when they arise. Please rest assured the Australian cotton industry is doing everything it can to insure our cotton gets to our customers promptly, in a state free of any country damage and of course, free of any contamination. After all, this is why our cotton is your fibre of choice.