January 09 2025 Customer Advisory Notice

NZ Local Update

KiwiRail has closed key lines on Auckland’s rail network from 27th December – 27th January 2025 to complete upgradesfor the opening of Auckland’s City Rail Link. This will impact the freight movement from Port of Tauranga to AucklandMetroport 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.

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.

We have received several notices from empty container depots in Auckland advising of upcoming increases to their Vehicle Booking System (VBS) charges. As a result, FreightWorks will be increasing our VBS charge to NZD 255.00 per container inclusive of port and empty container park booking fees effective from 01st February 2025. 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 January 2025 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

China has seen a significant increase in throughput at terminals as shippers look to front load their exports in anticipation of potential tariff changes in USA creating an increase in demand for empty containers and terminal congestion.

Shipping lines have indicated bookings ex China and Northern Asia Ports has remained light through December and early January leading to lines lowering rates on short term contracts for second half of January in an effort to fill vessels prior to Chinese New Year.

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. Industry commentators have advised they are expecting no change in schedules until late Q3 at the earliest.

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 International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) continue to engage in extended labour contract negotiations, with a deadline of January 15th 2025. The two sides extended the deadline as part of an agreement on wage increases struck in October to end a three-day walkout. The ILA said that negotiations were “at an impasse” as employers look to expand the use of port automation. Failure to reach a labour
agreement by this date is expected to lead to strikes commencing January 16th that will significantly disrupt major U.S. East and Gulf Coast ports. We anticipate rail and terminal congestion for on West Coast to increase in the coming days and weeks if the strike occurs.

In order to manage the potential impact of the challenges at the East Coast and Gulf ports shipping lines have given notice of the implementation of additional surcharges and rate increases for East and West Coast cargo.

Australia Update

Australian Customs are currently targeting shippers providing false information and/or under valuing goods, especially from NZ and China.

Australian Importers are being penalised up to AUD 12,680.00 per shipment where a supplier has undervalued goods due to either incorrect use of incoterms or simply “trying to help clients reduce costs of importing”

The biggest discrepancy is the declared value on the invoice being different from the actual funds transferred between parties, with the second biggest being a declared invoice for goods and an undeclared invoice for shipping and handling charges with DDP terms being declared on entries.