May 29 2024 Customer Advisory Notice
May 29, 2024
NZ Local Update
Effective 1st May Port of Auckland introduced a Dangerous Goods handling charge for all import and export containers containing hazardous cargo.
Ports of Tauranga advised that as of 12th May train capacity between Auckland Metroport and Tauranga has been reduced significantly. As such 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 1st to 30th June 2024 and FAF rate will remain at 22%. 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 June. 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 lanes have come back to normality in recent weeks with space and pricing remaining steady though we have seen small increases from some lines. With the large increases coming out of China we are expecting lines will look to make increases or take measures to increase demand.
Europe Market Update
The EU/NZ Free trade agreement has come into effect from 01st May 2024
As we have touched on in notices, shipping lines are experiencing challenges with transit times due to the ongoing situation in the Red Sea. With no indications of de-escalation in the conflict, all major carriers have now adjusted schedules to fully reflect the Cape of Good Hope routing. The diversion around the African Continent not only adds additional time to the transit for cargo bound for Asian tranship ports but also extends the return leg back to Europe by the same duration. This is causing challenges at origin ports, including container shortages, congestion and increasing pressure on vital hub ports in Asia and Europe, resulting in frequent schedule changes.
Vessels are regularly arriving at ports on unscheduled days, leading to berthing clashes at several ports. In addition, we are seeing several rotation adjustments in Northern Europe. 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.
Carriers are stating that the Red Sea diversions are expected to be in place until at least Q4 of this year and service adjustments have been made to accommodate this expectation. Shipping lines are now introducing additional capacity to vessel rotations to try to help reduce port omissions and improve their reliability.
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 announced they will reinstate the Panama Canal transit on their OC1 service effective May 10th servicing East Coast USA.
All FCL service to/from Baltimore are currently suspended until further notice.
Approximately 9300 Rail workers at Canadian National and Canadian Pacific Kansas City have voted for strike action in Canada. A simultaneous strike by rail workers at both companies will have a significant impact. Negotiations in Canada are still underway, and the operators cannot go on strike until the government determines the validity of their strike request.
Australia Update
BMSB Seasonal measures continue to remain in place in Australia for all vessels that berth, load or tranship cargo from target risk countries between 1st September and 30th April inclusive.
Currently Maersk has no 20′ stock available for exports from Australia and have forecasted short 20′ supplies into June.
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