September 24 2024 Customer Advisory Notice

NZ Local Update

BMSB Season commenced on 1st September. For the 2024 – 2025 BMSB risk season, BMSB seasonal measures will apply to targeted goods manufactured and shipped from target risk countries, that have been shipped between 1st September 2024 and 30 April 2025 (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.

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.

Asia Market Update

China’s upcoming Golden Week 01st – 07th October is causing growing demand for space and equipment as factories look to push out orders prior to the weeklong shut down. In additional shipping lines have announced their intention to blank sailings in October which is expected to add further pressure. Shipping lines have indicated they expect volumes to remain at peak through October with upcoming Black Friday Sales periods to keep demand high. While
rates have remained stable through the second half of September and into 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.

Congestion remains high at Singapore and Malaysian tranship ports as feeder services from other Southeast Asian countries Vietnam, Thailand and Indonesia have been reduced to reduce the number of containers entering port and being added to the growing roll pools. Shipping lines have advised vessels continue to remain full keeping rate levels high.

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 severe congestion as touched on earlier with large roll pools leading to delays with connections to/from New Zealand with delays up to four weeks in some instances.

USA / Canada Market Update

As tensions rise over contract negotiations between the International Longshoremen’s Association (ILA) and terminal employees, a strike at East and Gulf Coast ports appears increasingly likely with the current labour contract set to expire at midnight on 30th September with 36 major US ports at risk of a standstill. The management group United States Maritime Alliance (USMX) has reached out more than 10 times seeking new talks since June when the ILA suspended negotiations over a local dispute in Mobile, no new talks have been scheduled and there appears to be little motivation on the part of management or labour to secure a deal to avert a strike. The White House has decided not to intervene, following a letter from 177 trade associations urging action to prevent
disruptions.

Shipping lines have already indicated their intent to add port congestion surcharges onto West Coast sailings from 1st October in the expectation that cargo will be re-routed via West Coast ports along with seasonal general rate increases. We anticipate we will also see rail and haulage congestion as containers begin to move west.

The Canada Industrial Relations Board (CIRB) imposed Binding Arbitration between CN, CPKC and the Teamsters union for both railways requiring all to resume operations and Teamsters Canada Rail Conference (TCRC) employees to resume their duties. The CIRB also ordered that no further labour stoppage, whether a lockout or strike, can occur during the arbitration process. As such, the strike notice issued by Teamsters to CN is now voided.

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.