Industry Update – December 2023

Attention: Shipping Manager

 

Situation in USA:

• Carriers announce surcharges as Panama Canal restrictions tighten and queue grows

Due to capacity reductions at the Panama Canal’s capacity, major shipping companies are imposing additional charges on shipments passing through the canal.  Fees of USD130-297 per TEU have been announced by various shipping lines, starting 1 January 2024.  Shipping lines cite the need for these surcharges to ongoing capacity reductions imposed by the Panama Canal Authority (PCA), which had led to increased operational costs.\

Due to a lack of rainfall over the summer, the PCS has been forced to reduce the number of vessels transiting the canal daily.  By 1^st January 2024, booking windows for transiting the canal’s neopanamax locks will be reduced by 30%.

(Source: Splash.com/Loadstar)

 

• East coast dockers signal strike

Even before contract negotiations get underway, the threat of a strike shutting down US ports on the East and Gulf coasts next year is looming.  The international Longshoreman’s Association (ILA), which represents 45,000 dock workers, reaffirmed its’ commitment to strike if negotiations for a new labour contract do not reach a worthwhile conclusion by September 2024, when the current 6-year contract ends.  In a meeting earlier in the month, the ILA president mentioned that there would be no extension to the existing agreement if the United States Maritime Alliance (USMX), fails to produce a deal.

(Source: Loadstar)

 

Implementation of new customs procedure for shipments from Malaysia to Australia

Our team in Malaysia have reported a new customs procedure for all shipments to Australia whereby 100% of containers are scanned before being allowed to ship.  Some containers can also be picked randomly for gate inspections by Malaysian Customs.  Neither the customs brokers, nor our team get notified of these inspections directly and we have had containers miss selected sailings because of the delays caused by this.  This can result in additional charges, which unfortunately need to be passed on if incurred.

 

EU Emission Trading System:

A new surcharge, EU ETS fee, will be implemented effective 1^st January 2024.  This is a result of the integration of the shipping industry in the EU Emission Trading System.  Final amounts and validities have not yet been published by the carriers and will most likely only be available by the end of the year.

This fee will apply to all maritime services with at least one call within the EU: 100% of emissions will be considered for legs between 2 EU ports, only 50% of the emissions for legs between EU ports and non-EU ports.  From 1^st January 2024, shipping lines will be required to report their emissions and purchase an equivalent amount of allowances on the EU ETS market, according to a progressive schedule, as below:-

• In 2024, 40% of reported emissions will have to be converted into allowances.
• In 2025, 70% of reported emissions will have to be converted into allowances.
• From 2026, 100% of reported emissions will have to be converted into allowances.

General Rate Increase from NEA/SEA to AU:

We received notifications this month from some shipping lines in regards to a General Rate Increase from North and South East Asia to AU, details as follows:

Effective from 15^th December 2023:

USD 150/20’

USD 300/40’

LCL will increase accordingly.

 

Implementation of PONDUS Weight Amendment Fee

Effective 4^th December, 2023, Flinders Adelaide Container Terminal (FACT), have introduced a PONDUS weight amendment fee, aligning with the fee structures in other Australian ports.  The PONDUS weight amendment fee will be applicable to export or import containers with a weight variance exceeding +/- ONE METRIC TONNE of the documented VGM, as determined by the FACT PONDUS Stand.

Export Containers: Export PONDUS fees will be charged by FACT directly to the Shipping Line Operator.

Import Containers: For import containers, PONDUS fees will be charged to the Transport Operator.

Please note PONDUS fees charged and all associated costs will be passed on.

 

Australian ports plan to increase terminal fees:

A notice has been issued of an intent to increase terminal charges of up to more than 50% at Sydney, Melbourne and Brisbane Ports.  Terminal operators have advised that the increases will come into effect from 1^st January 2024.

(Source: Loadstar)

 

Airfreight Destination Airline Terminal Fee Increase:

The Destination Airline Terminal Fee applicable for all airfreight cargo coming to Australia will increase effective from 1^st December 2023. The new fee will be:

Minimum AUD 74

AUD 0.74 per kg

 

Airfreight Import Document Fee Increase:

The Import Document Fee applicable for all airfreight cargo coming into Australia will increase effective from 1^st December 2023. The new fee will be:

AUD 84 per HB

 

LCL Destination Terminal Infrastructure Increase:

The Destination Terminal Infrastructure Fee applicable for all LCL shipments coming to Australia will increase effective 1^st January 2024. The new fee will be:

AUD 10 w/m – Minimum AUD10

 

LCL Fuel Levy Increases:

Fuel Levy in Sydney, Melbourne and Brisbane will increase to 36.3% for all LCL and Airfreight pickups/deliveries effective immediately.

 

We will keep you updated with further information.