News
Industry Update – August 2024
Attention: Shipping Manager
Situation in Asia
- Singapore Endures More Port Delays as 90% of Container Ships Arrive Late:
Congestion at the Port of Singapore has become so bad that 90 percent of container ships are arriving at the port later than scheduled. According to experts, 77 percent of vessels were late to the port on average in 2023. But this year’s deluge of off-schedule arrivals has been compounded by the Red Sea crisis. Many of the vessels are arriving within a short window, compounding the issue by causing a ‘vessel-bunching’ effect.
Major global ports including Singapore, as well as Shanghai and Ningbo in China, and Port Kelang in Malaysia, have felt the heat of the congestion due to the lengthier transit times, in addition to a capacity crunch out at sea. Carriers estimated that Asia-to-Europe shipping capacity would shrink by as much as 20 percent due to the mass rerouting. While Singapore is taking the steps to scale up capacity, it is unlikely that the Red Sea disruptions will ease anytime soon. Backlogs could also be intensified by an increase in container volumes as shippers bring forward export schedules out of Asia in preparation for major holidays in the second half of the year.
(Source: Sourcing Journal)
- Kaohsiung now facing container congestion challenges in Asia:
The container congestion contagion effect appears to be manifesting itself in Taiwan with a recent build-up of boxes in its main gateway of Kaohsiung. Congestion in South-East Asias key ports has prompted liner operators to divert transhipment containers to Taiwan’s main container port which, in turn, placed Kaohsiung’s Road infrastructure under pressure as more trucks are needed to ferry containers between terminals. The Taiwan ports corporation is acting to ease the pressure by building dedicated road lanes for trucks. Terminal operators are also being encouraged to barge containers between terminals to minimise truck transport.
(Source: Loadstar)
Situation in USA
- US EC and GC dockers ready to ‘strike’ in 80 days:
US East and Gulf Coast port workers are prepared to “hit the streets” on 1 October, according to the president and chief negotiator of the International Longshoremen’s Association (ILA), Harold Daggett. The current master contract between the ILA and US Maritime Alliance (USMX) expires on 30 September, and Mr Daggett warned that the employers were “running out of time” to negotiate a new agreement.
(Source: Loadstar)
Situation in Europe
- Talks restart for strikes at German Ports:
The German trade union Ver.di has called on its members to take part in ‘warning strikes’, that threaten to paralyse German sea ports, before it begins its fourth round of negotiations with the Central Association of German Seaport Operations (ZDS). Should this happen, we can expect congestion for delivery and pick up of containers.
(Source: Loadstar)
Ripples from IT outage spread through the supply chain:
The disruption and delays to air cargo services due to the global IT outage last month has highlighted supply chain vulnerability, with thousands of flights grounded or delayed at the largest air freight hubs in Europe, Asia and North America. Experts say it could take weeks to fully resolve.
(Source: Loadstar)
Shipping Crisis Impacts Inflation:
The ongoing shipping crisis has thrown a “spanner in the works” for inflation, affecting Australian consumers. The continuing threat of attacks on commercial ships by Yemen’s Houthi militants off the Horn of Africa has forced vessels to reroute around the southern tip of the continent in what shippers say has become a “new normal” that adds weeks to their journeys and contributes to the worst congestion at the Port of Singapore since COVID-19. The ongoing delays, coupled with disruptions in Singapore, are expected to lead to higher prices for Australian consumers. Increasingly unreliable arrivals from Asia and Europe are also forcing more Australian companies to store more products locally, driving up costs.
(Source: Financial Review)
General Rate Increase from North & South East Asia to Australia:
We received notifications this month from some shipping lines in regards to two separate General Rate Increases from North & South East Asia to Australia, details as follows:
The first GRI was to come into effect from 1st August 2024:
USD 300/20’
USD 600/40’
LCL was to increase accordingly.
In addition to the first GRI, shipping lines will have a second GRI effective from 15th August 2024.
USD 1000/20’
USD 2000/40’
LCL will increase accordingly.
General Rate Increase from North & South East Asia to New Zealand:
We received notifications this month from some shipping lines in regards to two separate General Rate Increases from North & South East Asia to New Zealand, details as follows:
The first GRI was to come into effect from 1st August 2024:
USD 500/20’
USD 1000/40’
LCL was to increase accordingly.
In addition to the first GRI, shipping lines will have a second GRI effective from 15th August 2024.
USD 500/20’
USD 1000/40’
LCL will increase accordingly.
Weigh in motion update – Fremantle
As previously communicated in our last DAVIT notice for July, Fremantle has introduced a new Weigh in Motion (WIM) system as part of its Chain of Responsibility compliance. The cost for this fee will be AUD 17 per container, effective immediately. We have been advised that extra congestion is expected at DP World Fremantle due to the introduction.
Upcoming BMSB Season – 2024-2025
The Department of Agriculture, Fisheries and Forestry recently made the announcement that China and Republic of South Korea will be added to the BMSB target risk countries list for heightened vessel surveillance only. This is intended to ensure requisite measures are in place to manage biosecurity risks associated with seasonal pests on RoRo vessels, recognising the recent rise in exotic stinkbug detections from BMSB native countries. RoRo vessels that berth, load or tranship cargo from China and/or Republic of Korea will be subject to heightened vessel surveillance and risk management measures where necessary.
Marine Insurance
In the unpredictable world of shipping, securing your cargo with comprehensive Marine Insurance is more crucial than ever. Investing in Marine Insurance safeguards your financial interests and ensures the continuity of your operations. Dieterle & Victory recommends you take out Marine Insurance for all shipments. If you need any assistance in this regard, please contact us.
We will keep you updated with any further information.
