January 10 2024 Customer Advisory Notice

January 10, 2024

NZ Local Update

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

Empty dehire yards appear to once again be restricting delivery time slots for empty containers due to capacity constraints.

FreightWorks has evaluated the FAF being charged to us by our carriers as of the 1st to 31st January 2024 and FAF

rate will remain at 22%. This will be re-evaluated monthly

Asia Market Update

Space is available but filling fast leading up to Chinese New Year closures ex Asia.  Lines are prioritising higher paying bookings to Brisbane which shares the NZ Southbound vessels which is further increasing demand on space to NZ.

Shipping lines are taking advantage of increased demand and the anticipated shortage of empty containers due to the Red Sea situation ex Europe and indicated more increases for second half of January and leading into Chinese New Year.

Chinese New Year 2024 – The Year of the Dragon – Will fall between 10 – 17 February 2024.

Europe Market Update

The Red Sea and Suez Canal security threat has continued to deteriorate with increased strikes on commercial shipping vessels.  All shipping lines servicing NZ to/from Europe via Asia have now pulled their vessels from this area routing via the Cape of Good Hope adding additional time to sailings at significant cost.  Shipping Lines have added with immediate effect an Emergency Risk Surcharge to recover costs of this routing.  Costs vary from line to line and will be also apply to LCL cargo on same lanes.  Actual costs will be outlined on any quotations provided.

Due to the war situation declared in Israel, shipping lines are impacted by a significant increase of war risk insurance premiums.  Most lines have now announced a war risk surcharge with immediate effect that would be charged in addition to freight charges.

From 1st January 2024 the European Union Emissions Trading Scheme (ETS) has come into effect.

USA / Canada Market Update

The Panama Canal Authority has taken steps to reduce maximum ship weights and daily ship crossings in a bid to conserve water. Maritime transportation experts fear such events could become the new normal as rainfall deficits in the world’s fifth-wettest country spotlight climate risks affecting the ocean shipping industry that moves 80% of global trade.

Australia Update

The ongoing industrial action at DP World terminals continues for each of their terminals with notices received advising an extension now until 15th January 2024 and are expected to continue to extend further into 2024.

Australian port congestion has hit critical levels for breakbulk and Ro/Ro carriers due to bio-security concerns over seed contamination.  Delays have seen rates balloon with demand for space far outstripping supply and lead time increasing significantly and is further exacerbated by restrictions on the Panama Canal.

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