November 14 2023 Customer Advisory Notice

November 14, 2023

NZ Local Update

As the result of ongoing discussions with our international courier provider we are pleased to advise effective from 13th November we have been able to have the Emergency Surcharge waived.  This surcharge was originally implemented to offset costs attributed to the impact of Covid-19.  We have pushed very hard for the removal of this charge and are pleased to see this charge removed from all shipments booked and collected from 13th November onwards.

Kiwirail have advised full track and tunnel maintenance on lines out of Wellington will be taking place between 25 December – 07 January.  During this time no trains will run out of Wellington.

Labour shortages are causing disruption at Auckland’s Ferguson terminal.  Vessels arriving outside of their berth window are also causing disruption the flow on being VBS bookings are 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

Asia Market Update

Space remains at a premium ex North Asian ports with shipping lines advising their vessels are heavily booked to the end of November.  Early bookings are essential to ensure space can be secured.

With increased booking volumes most shipping lines have indicated their intention to continue to apply Rate Restoration increases through November out of North Asia where South East Asia rates continue to remain steady.

Shipping lines have advised their intention to blank a sailing ex South East Asia week of 15 December which we anticipate will have an impact on cargo originating in this region and also tranship cargo form Europe which may cause further backlogs.

Europe Market Update

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.

Effective 1st January 2024 the European Union Emissions Trading Scheme (ETS) will come into effect.  The ETS sets an upper limit on Greenhouse Gas (GHG) emissions of companies in various sectors and requires them to purchase emission allowances equal to their emissions above the upper limit each year.  This upper limit will be reduced annually in line with the EU’s climate targets, a 55% reduction in GHG emissions by 2030 relative to 1990, and net zero by 2050.

Ship operators from 1st January will need to buy allowances for every tonne of CO2 emissions covered by the system or risk heavy penalties. As a result, shipping companies will have higher operational costs for compliance and will look to recover these costs in the form of a surcharge in an amount per TEU, which will differ based on trade lanes. Since the EU has taken a phased approach the cost of compliance for shipping lines is expected to increase over the coming years.

In terms of geographical reach, the scope of the ETS for shipping includes 100% of emissions on voyages and during port calls within the EU/EEA (European Economic Area), and 50% of emissions on voyages into or out of the EU/EEA.  The ETS will not apply on trade lanes that do not call in Europe on any leg.

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 in Brisbane, Sydney and Melbourne continues for each of their terminals with notices received advising an extension until 20th of November 2023.  In addition, on November 10th DP World Australia detected a cyber security incident and promptly initiated response protocols. In response to the situation, the decision was made to restrict landside access to their Australian port operations.  Due to the restricted landside access to DP World Australia’s terminals, there was no operations at the terminals all weekend.  As of yesterday morning, some operations had begun to resume at limited capacity.  Sydney and Melbourne are running import operations while Brisbane was running import and export operations based on earliest vessel arrival and longest dwell times.

Terminal operations at Patrick and Flinders in Brisbane, Sydney, Melbourne, Adelaide and Fremantle, are not impacted by these events and services are operating as normal though this may change as shipping lines look to secure additional berths at these terminals.

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.  The situation is expected to last into 2024.

FreightWorks - Ocean Freight Forwarding

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