July 05 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 July 2024 and FAF rate will decrease to 19%. This will be re-evaluated monthly.

Asia Market Update

Empty container shortages in China have reached a critical level with container stock remaining onboard vessels longer coming from Europe via Cape of Good Hope.  Shipping lines continue to blank sailings to keep vessels full and prioritise their remaining stock to higher yielding shipping lanes.  With demand for containers so high rates continue to move in an upwards direction with short validities through rate increases and peak season surcharges being implemented in July.  With the Red Sea diversions expected to remain in place until the end of the year and shipping lines indicating they are forecasting a strong and early peak season this year we are anticipating rates will continue to climb.

Southeast Asian space has begun to tighten due to vessels being pulled for dry dock without replacements and extreme congestion building up at Singapore and Malaysian tranship ports.  In addition, an oil spill caused by a dredging boat colliding with a stationary bunker vessel back in June has caused further delays with any vessels transiting through the area requiring hull cleans before being allowed into New Zealand waters adding additional time and potential cost. Shipping lines have taken this opportunity to make rate increases and introduce Peak Season Surcharges as roll pools begin to increase, while others have advised they will not be taking bookings to New Zealand in July as a means to try and reduce the backlog of containers.

Europe Market Update

The EU/NZ Free trade agreement has come into effect from 01^st May 2024

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 large roll pools leading to delays with connections to/from New Zealand.

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.

Australia Update

Currently Maersk has no 20′ stock available for exports from Australia and have forecasted short 20′ supplies into July.