Industry Update – May 2022

Attention: Shipping Manager

Situation in USA and Canada:

• Port Congestion – Limited capacity

USA’s biggest seaports have been overwhelmed by a combination of strong demand for imports and exports, shortages of truckers and dockworkers, and pandemic-related disruptions affecting the shipping industry.

As mentioned in our previous notice, many ocean carriers have been moving via the east coast to avoid port congestion on the west coast. Consequently, due to the surge in import volumes, reports are showing a new trend shaping up as more container ships are waiting outside east coast ports than off the west coast. Also, west coast port congestion is currently reduced as there are temporarily lower exports out of China due to Covid lockdowns.

(Source – gCaptain)

 

• Airfreight market

 The current conflicts between Russia and Ukraine as well as Covid lockdowns in China are impacting the air cargo market negatively. Airlines have to reroute flights to avoid Ukraine and the surrounding regions in Eastern Europe due to the current state of events. Also, many flights to/from China have been cancelled due to omicron quarantines in China. As a result, freight rates are surging as capacity decreases while demand remains high.

(Source – American Shipper)

 

Situation in Europe:

The global operational situation remains tense for the North Europe Mediterranean Oceania (NEMO) service, which offers direct service between major European ports and Oceania. The service is still experiencing vessel berthing delays and port congestion in many terminals of the rotation. Hence, carriers have been having port rotations and omissions to protect their schedule reliability.

In addition, inland trucking rates in Europe continue to increase due to rising fuel prices and limited space availability along with the high import and export volumes.

 

Situation in Asia: 

• China – COVID-19 lockdowns

 The city of Shanghai continues to be under an indefinite lockdown, which is causing major disruptions to the supply chain. Waiting time for ships to berth at the port of Shanghai is between 24 to 48 hours, there are as many as 350 vessels are queuing to berth.

Furthermore, the lockdown is causing major problems for trucking operations as trucks are not allowed to move in and out of the city without a special permit, which is only valid for 24 hours and only on specific routes. Also, other cities are not granting access to those from Shanghai without a negative Covid-19 test. Shanghai port and terminals remain open for vessel operations, yard handling and gate-in and -out; however, as trucking availability is very limited, this has impeded clearance of import/export cargoes.

Shipping volumes in Shanghai are expected to reduce significantly in the upcoming weeks. For this reason, line operators have been considering diversions to nearby ports such as Ningbo and Shenzhen. Terminals at the port of Ningbo are experiencing backlogs and facing equipment shortages as more freight is diverted from Shanghai. Hence, freight rates from Ningbo are rising.

International passenger and cargo airlines have cancelled the majority of flights to/from Shanghai Pudong airport.

The situation is fluid and we are closely monitoring events to keep you informed with the latest information.

(Source – The Load Star)

 

• DHL Express – Service Suspension in East China

Due to ongoing operational constraints, DHL Express inbound services into Shanghai, Zhejiang area, Jiangsu and Anhui area will remain temporarily suspended for non-document shipments until further notice. DHL Express will not accept any non-documents shipments going into these areas until further notice.

DHL Express has resumed document services (DOX product) into these areas with immediate effect.

 

Airfreight Emergency Cartage Fuel Surcharge ex USA: 

Further to our previous notice, Emergency Cartage Fuel Surcharge is currently 20.25% on top of all airfreight inland pickups in the USA. Please note this surcharge fluctuates continually, so this is subject to change.

 

Fuel Levy Increase in Sydney/Melbourne/Brisbane/Adelaide:

Fuel Levy in Sydney, Melbourne and Brisbane has increased to 30% for all LCL and Airfreight pickups/deliveries, effective immediately.

In Adelaide, Fuel Levy for all FCL, LCL and Airfreight pickups/deliveries has also increased to 30%, effective immediately.

Please note this is applicable for pickups and deliveries within metro areas only and is subject to change – fuel surcharge for regional and interstate areas will be higher and will vary depending on location

D & V have tried to keep the increase to a minimum and will continue to monitor the terminal gate price so we adjust the rate accordingly as the current situation is constantly changing. 

 

 Sydney M5 East/ M8 Toll Increase:

 From 01^st June 2022, M5 East / M8 Toll in Sydney will increase slightly. The updated M5 East/M8 Toll will be AUD 55 per container from this date.

 

 Sydney Port Infrastructure Increase:

Sydney Port Infrastructure surcharge will increase to AUD 180 per container, effective 01^st June 2022.

 

Brisbane Port Infrastructure Increase:

Brisbane Port Infrastructure surcharge has increased slightly, effective immediately. The updated Port Infrastructure fee in Brisbane will be AUD 170 per container.

 We will keep you updated with any further information.