October 02 2024 Customer Advisory Notice

NZ Local Update

KiwiRail’s reduced capacity between Port of Tauranga and Auckland Metroport continues to cause delays with containers being railed to Auckland after vessel discharge in Tauranga.

FreightWorks has evaluated the FAF being charged to us by our carriers as of the 1^st to 31^st October 2024 and FAF rate will reduce to 16%. This will be re-evaluated monthly.

Asia Market Update

China’s Golden Week has begun running from 01^st – 07^th with factories shutting down during this period.  Shipping lines have announced their intention to blank sailings in October which is expected to keep vessels full through to the end of October.  While rates have remained stable through the second half of September and first half of October we have received notices advising of an intention to begin increases again in second half of October as long as space remains at a premium.

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.  All shipping lines are struggling to maintain schedule integrity and reliability compared to advertised transits.

Tranship ports in Singapore and Malaysia are reporting an easing of congestion with roll pools beginning to reduce.

USA / Canada Market Update

Shortly after midnight October 1^st the ILA dockworkers began picketing blocking any traffic in or out of the US East and Gulf ports and terminals after they declined the latest USMX proposal the day before. The President of the ILA said Tuesday morning that they are prepared to fight for as long as it takes and continue to strike until their demands are met.

There are already over 100,000 containers stuck at the NY port alone with customers having no means to pick up their goods. The NY port is also expecting thirty-five ships arriving this week which will have to anchor. Experts state for every day the strike continues it will take approximately 6 days to recoup from the backlog. Most terminal operators advised that any containers within the terminal will not be charged demurrage stopping the clock until the they reopen. Also, carriers are freezing detention charges under the same terms, the clock restarts once the work stoppage ends. All carriers have now imposed congestion for the west coast and port disruption surcharges for the east and gulf ports ranging in various amounts.

While we do not know how long the strike will last it is expected to be at least 1 week. The US government is still reluctant to intervene, but they may be forced to invoke the Taft-Hartley Act if it poses a further threat to the economy. We will continue to update you on any changes

With ships expected to be stuck at anchor for extended times and the continuing rerouting of Europe cargo via the Cape of Good Hope we are expecting an even greater squeeze on empty container inventory globally.

Australia Update

BMSB Season in Australia will commence from 1st September to 30th April 2025 (inclusive). Measures closely mirror those of last season, with the China and United Kingdom being identified as emerging risk countries and subject to random inspection.

ZIM Line have advised their intention to re-enter the Trans-Tasman market with routing via Melbourne and connections through to Asia in the second half of October. Further details to follow.