December 03 2024 Customer Advisory Notice

NZ Local Update

KiwiRail has announced they will be closing key lines on Auckland’s rail network from 27th December – 27th January 2025 to complete upgrades for the opening of Auckland’s City Rail Link. This will impact the freight movement from Port of Tauranga to Auckland Metroport during this time. KiwiRail’s contingency plan for Auckland bound cargo is a rail option through to Ruakura (Hamilton) and final leg via road bridges to Auckland Metroport. We are expecting delays to
container movements during this time. FreightWorks is able to offer alternative trucking options direct from Tauranga for any containers that are required urgently, please enquire for further information.

KiwiRail has also advised they intend to commence with full track and tunnel maintenance in Wellington between 26th December – 03rd January 2025. These works will impact our rail services from Wellington Centreport for the North Island based customers with KiwiRail cancelling all rail services for this period. Blenheim services, whilst the rail won’t run will still have options to move via Strait Shipping.

NZTA has announced the closure of the Desert Road SH1 between Turangi and Waiouru for maintenance between 06th January and late February 2025. Diversions will be in place but expect trucking delays through this area during this time.

Port of Auckland has confirmed a rate increase to the VBS Container Access Charge at Fergusson Terminal and Multi-Cargo effective from 01st January 2025. FreightWorks will be increasing our VBS charge to NZD 235.00 per container inclusive of empty container park fees effective from this date. We will continue to mitigate cost increases within the supply chain wherever possible while continuing to provide the best service to you.

FreightWorks has evaluated the FAF being charged to us by our carriers as of the 1st to 31st December 2024 and FAF rate will remain at 16%. This will be re-evaluated monthly.

Asia Market Update

Lunar New Year – Year of the Snake – starts earlier in 2025 commencing 27th January – 03rd February 2025

Shipping lines have indicated bookings ex China and Northern Asia Ports has dropped off in the first half of December with many shippers looking to avoid arrivals during the Christmas/New Year holiday period. Lines have also indicated they expect to see increases again in bookings for second half of December. We have seen North Asia rates on short term contracts drop during first half of the month and received a mix of notices of intended increases again from the
15th December while also receiving notices for decreases in Peak Season Surcharges.

Shipping lines have advised that their roll pools at tranship ports are again beginning to increase at Southeast Asia ports.

Europe Market Update

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. All shipping lines are struggling to maintain schedule integrity and reliability compared to advertised transits.

Maersk have suspended their North Europe service routing 45 days over Panama, bookings are now routed on 64-day service via Singapore or Malaysia.

Tranship ports in Singapore and Malaysia are reporting an increase in congestion with multiple missed connections and delays of 1 – 2 weeks.

USA / Canada Market Update

The ILA walked away from negotiations with USMX scheduled to last for four days after just two days. The first day and half of talks had been productive, then talks broke down when management introduce their intent to implement semiautomation, a direct contradiction to their opening statement where they assured the ILA that neither full nor semiautomation would be on the table. They claimed their focus was on modernization, not automation.

Canada moved to end labour disputes at the country’s two biggest ports, Vancouver and Montreal, citing economic damage and the potential for driving away trading partners. It was the second time in a few months that the Government has stepped in to halt a dispute.

Australia Update

Cosco/OOCL are adding an additional third vessel to their Trans-Tasman service calling Melbourne, Bell Bay, Sydney, Auckland and Tauranga. The addition of this third vessel will enable this service to now run weekly instead of fortnightly from 21 November.