September 05 2023 Customer Advisory Notice

September 5, 2023

NZ Local Update

Ports of Auckland and Tauranga have transitioned back to regular scheduled berth windows for arriving vessel. Auckland’s Ferguson terminal is currently undergoing work expected to be completed by end of September but is not expected to have any impact on terminal operations. Lyttelton is currently having pockets of congestion causing delays and changes to vessel rotation.

Empty dehire yards appear to once again be restricting delivery time slots for empty containers due to capacity constraints. With a reduction in import container volumes, we are seeing CFS unpack times for LCL are continuing to see expected turnaround times usually within 48 hours of container discharge.

Vehicle Booking (VBS) costs have again increased in Lyttelton leading to an increase of VBS fees charged to NZD 140.00 per container.

FreightWorks has evaluated the FAF being charged to us by our carriers as of the 1st to 30th September 2023 and FAF rate will remain at 19%. This will be re-evaluated monthly.

Asia Market Update

Golden Week in China will be celebrated between 01 – 08 October, shipping lines have already indicated their intention to blank sailings during this period. With space already limited we recommend making bookings as early as possible to ensure space is available.

With increased booking volumes mainly due to vessel blanking and sliding schedules most shipping lines have indicated the intent to continue to apply Rate Restoration increases through September up to Golden Week. Shipping lines are currently over booking their vessels to ensure all slots are full and then rolling or cancelling bookings last minute with no warning.

We have seen bookings rolling on schedules either direct or transhipping through Port Klang or Singapore due to lines trying to clear the backlog of containers sitting in these ports that have rolled at tranship. Most of these delays are still being attributed to delays in NZ waters though the lines have also blanked sailings to keep demand for space high.

Offices in China have been forced to close due to Typhoon season with staff working remotely, Typhoons are also causing schedule delays.

Europe Market Update

Blank sailings on both first leg and second leg routes in order to keep vessels full have been causing delays for containers moving out of Europe through Asia, with some lines limiting the number of bookings being accepted. BMSB Season has now started. For the 2023 – 2024 BMSB risk season, BMSB seasonal measures will apply to targeted goods manufactured and shipped from target risk countries, that have been shipped between 1 September 2023 and 30 April 2024 (inclusive), and to vessels that berth, load, or tranship from target risk countries within the same period. If the container is from Italy, it must be treated offshore regardless of commodity unless it meets the ‘sensitive cargo’ exemption. Please contact your FreightWorks representative for more details.

USA / Canada Market Update

Weekly operations between West Coast USA and Auckland have resumed following the reintroduction of berth windows in Auckland.

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

With the new entrants into the Trans-Tasman market and falling demand we are seeing increasing capacity on the trade lane leading to reductions in pricing and more schedule options both East and Westbound.

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.

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