Industry Update – February 2023
Attention: Shipping Manager
Situation in USA:
Consumer demand seems to be falling still after the pandemic. With inflation, rising interest rates and recession fears swaying consumers to spend less, this ultimately weighs on the industry. Many of the industries that saw wild demand during the pandemic are now crashing, including container shipping. On the brighter side, outbound requests for truckload services were slightly up in late January 2023, compared to the same period in 2019 and 2020.
Port delays and congestion levels at US west coast ports are almost back to pre-pandemic levels and while US east coast ports remain congested, delays are easing. We are still, however, seeing bookings getting rolled at the ports of Long Beach and Los Angeles.
Overall, it is currently 1-3 days waiting time at US east coast ports. On the west coast, the waiting time is 0-1 day at Los Angeles/Long Beach, 0-3 days at Oakland and 1 day at the port of Seattle.
(Source: Freight waves)
Situation in Asia:
Asia to Australia market shows relatively strong demand in January despite the impact of COVID-19 in China. We are seeing freight rates continuing to decrease across several trade lanes, especially from China to Australia.
Some airfreight carriers have been cancelling flights from China to Europe and to the US to match the demand with capacity after the Lunar New Year holidays. Ground handling operations in several airports in China have returned to normal after significant delays caused by the COVID-19 at the beginning of the year.
Situation in New Zealand:
As per our recent notices, due to the recent Cyclone Gabrielle many of the road networks around the North Island of New Zealand have been cut off, with heavy delays impacting the supply chain. Despite a complete shutdown of rail and ports in some areas of the country last week, some trucks have managed to get on the road, but delays are still expected. Major ports around the country have begun resuming operations from 14th February 2023.
(Source: Transporting New Zealand/The Maritime Executive)
FCL Fuel Levy Updates:
- Fuel Levy Decrease in Sydney/Melbourne/Fremantle
Fuel Levy in Sydney, Melbourne and Fremantle will decrease to 26.5% for all FCL pickups/deliveries, effective from 1st March 2023.
- Fuel Levy Decrease in Adelaide
Fuel Levy in Adelaide will decrease to 32.5% for all FCL pickups/deliveries effective from 1st March 2023.
- Fuel Levy Increase in Brisbane
Fuel Levy in Brisbane will increase to 32.5% for all FCL pickups/deliveries effective from 1st March 2023.
Please note the above is applicable for FCL 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.
Delays in Western Australia and Queensland Rail Network:
- Avon Valley bushfire
Delays are expected in the Avon Valley area in Western Australia around 80kms east of Perth. These delays are due to recent bushfires that have been in the area earlier in the month.
- Marmor train derailment
A train has derailed in the Marmor area causing delays approx. 45kms south of Rockhampton. The rail corridor between Gladstone and Rockhampton was completely closed off earlier this month. Freight is still travelling via alternative routes; however, delays are expected until the track is fixed.
(Source: Capital Logistics)
We will keep you updated with further information.