July 31 2024 Customer Advisory Notice

NZ Local Update

Kiwirail has significantly reduced capacity between Auckland Metroport and Port of Tauranga which has led to less consistent and longer lead times for rail in both directions.  The allocation to some shipping lines will be cut meaning more loads for export containers directly out of Auckland which will impact transit times on exports.

Vessels bunching and arriving outside of their berth windows due to delays offshore are causing disruption at Port of Auckland causing VBS bookings to be in short supply once vessels have discharged.

Vessel bunching is also having a negative impact on CFS unpack times for LCL containers.  As vessels continue to bunch, we anticipate delays to continue.  Please contact your FreightWorks contact for anything urgent so we can manage any delays.

FreightWorks has evaluated the FAF being charged to us by our carriers as of the 1^st to 31^st August 2024 and FAF rate will remain at 19%. This will be re-evaluated monthly.

Asia Market Update

Increased congestion at Singapore and Malaysian tranship ports has led to feeder services from other Southeast Asian countries Vietnam, Thailand and Indonesia being reduced to reduce the number of containers entering port and being added to the growing roll pools.  Shipping lines have continued to take the opportunity to make rate increases and introduce Peak Season Surcharges as roll pools begin to increase.

Vessels continue to move full out of North Asia keeping rates high though the speed at which they are increasing has started to drop.  Advanced bookings and forecasting will help to ensure space is secured as last-minute bookings are often not being accepted.  Shipping lines have indicated they expect space to remain an issue through to end of 2024.

Europe Market Update

Europe is heading into their traditional peak season with increased bookings being pushed out prior to summer holiday periods.

Extreme weather reported around the Cape of Good Hope has added to delays to vessels avoiding the Red Sea area.

With the situation in the Red Sea area ongoing carriers are stating that the Red Sea diversions are expected to be in place into 2025 and service adjustments have been made to accommodate this expectation. Shipping lines have introduced additional capacity to vessel rotations to try to help reduce port omissions and improve their reliability.  All shipping lines are struggling to maintain schedule integrity and reliability compared to advertised transits. The impact of this is evident with the disruption to sea freight schedules and corresponding arrival delays.

Shipping lines have Increased rates to and from Europe in line with the increase in demand and additional operational costs involved with the delays.

Tranship ports in Singapore and Malaysia are reporting severe congestion as touched on earlier with large roll pools leading to delays with connections to/from New Zealand with delays up to four weeks in some instances.

USA / Canada Market Update

The Panama Canal Authorities have recently introduced additional transit slots per day through the Panama Canal as we begin to enter the rainy season.  Maersk has reinstated their Panama Canal transit on their OC1 service.

FCL service to/from Baltimore have resumed.

Negotiations in Canada are still underway between the rail operators.

The ILA (International Longshoremen’s Association) has stated that it is still far from reaching an agreement with maritime employers along the East and Gulf coasts of USA over a new master contract. The union’s latest salvo, saying a strike “is becoming more likely,” adds pressure to ocean carriers and marine terminals set to meet very soon on labour talks.

Australia Update

Currently Maersk has low 20′ stock available for exports from Australia and have forecasted short 20′ supplies into August.