News
Industry Update – January 2021
Global Situation with Omricon
As Omricon sweeps the globe we will no doubt see effects on operations. In many countries where case numbers have exploded, there is a chronic shortage of workers (both at supplier factories), truckers and shipping terminals. There are also restrictions being imposed in some countries globally which will have a knock-on effect on shipping. For example in China, in Xi’an, the whole city is nearly closed as infection rates increase. Other places like Ningbo also are seeing an increased number of infections and Beilun area has stopped many operations.
Situation in USA and Canada:
- Container Dwell Fee postponed – Los Angeles/Long Beach ports
We have been informed by the port of Long Beach and Los Angeles that the Container Dwell Fee remains on hold until 03rd January 2022. This is due to the progress made in clearing the containers out of the terminals, port officials cite a 37% reduction in long-staying containers (Source – American Shipper). This new fee implementation will be reassessed after another week of monitoring data.
- Port Congestion – Limited space/equipment
Container shipping from the US to Australia and New Zealand is experiencing extended delays due to high demand, record-high levels of congestion and limited vessel space/equipment availability. The delays range from 3 to 4 weeks for a vessel to berth at the terminal, which created a backlog of cargo waiting to be loaded for export. The massive backlogs severely impacted terminal/warehouse space availability and trucking capacity.
West Coast ports continue to be heavily congested, there are currently over 96 vessels anchored off Los Angeles/Long Beach ports due to historically high demand and congestion. Meanwhile, on the east coast, the Port of Savannah has seen a slight improvement in port congestion. The number of container vessels at anchor off the port waiting for a berth reduced to 13 as of the last week of December. For these reasons, many carriers have rescheduled their services to call east coast ports to avoid congestion and backlogs on the west coast (Source – American Shipper).
Furthermore, our options for cargo shipping out of the USA remain extremely limited. Many carriers have stopped quoting and offering ex/to door or rail ramp services due to the major shortages of drivers and trucking power.
- Operational Interruptions at Vancouver port, Canada
Further to our previous update, the port of Vancouver is slowly recovering and efforts to rebalance the supply chain are slowly being made. Both CP and CN rail lines are now clear and operational. However, as the backlog in the supply chain remains significant, it will take many weeks for major rail and road services to resume full operations.
In addition, vessel delays increased yard congestion and rising anchorage demand containers at the Port of Vancouver. The number of ships waiting for a berth reached 60 despite the resumption of rail service.
Situation in Europe:
The operational issues at all major ports in North Europe persist into 2022. Shipments out of Hamburg, Rotterdam and Antwerp ports are still experiencing vessel delays and ongoing port congestion due to high levels of import volumes and infrastructure constraints. One major shipping line continues not accepting any new bookings out of these ports to Australia due to limited space/equipment.
In the UK, Felixstowe – UK’s largest container port, remains clogged with containers during the peak shipping season. The supply chain disruptions have affected all stakeholders, having negative impacts on port productivity, storage of containers in port, empty containers return, road haulage and rail schedules (Source – Lloyd’s List).
Situation in Asia:
- Temporary Suspension of cargo to East Malaysia, Brunei and Japan
One major shipping line offering service to/from Asia to Australia has temporarily stopped accepting all new bookings for all cargo exporting from Australia to multiple East Malaysia and Brunei ports. Additionally, bookings to major Japanese ports that tranship via Singapore, Port Klang, Busan, Shanghai and Ningbo will also be temporarily suspended. This suspension is due to the current equipment shortages and the lack of feeder space availability.
Furthermore, this can cause many issues for cargo coming from these origins to Australia as there will be limited space/equipment availability.
- Flash Flooding in Malaysia
The recent flash flooding has caused major berthing delays at Port Klang, costing millions in damaged cargo. This unprecedented event has submerged roads across Malaysia’s industrial areas, hence, operations at container terminals in Port Klang were greatly impacted by damage to access roads. The flooding also caused labor shortages, and productivity had been adversely affected. The port had already been experiencing vessel delays for several weeks, delays can range from 2 to 7 days, or sometimes even longer, and the situation has deteriorated due to the flooding.
Situation in New Zealand:
Major ports in New Zealand continue experiencing severe port congestion, especially at Auckland and Lyttelton ports. Vessel delays are anticipated for shipments going to/from these locations. Due to this reason, several shipping lines have temporarily suspended their services to New Zealand ports to avoid congestion and mitigate delays and protect their schedule reliability. As a result, our options for shipping to New Zealand are very limited, especially from Europe and the US due to limited space allocation and equipment shortages.
General Rate Increase from USA to Australia and New Zealand:
From 02nd January 2022, one carrier has implemented an increase on all cargo originating from USA (East and West Coast) to Australia and New Zealand. The increase will be:
USD 1000 per 20GP
USD 2000 per 40GP/HC
Bunker Adjustment Factor (BAF) Increase from USA and Canada to Australia and New Zealand:
All carriers have increased their Bunker Adjustment Factors, effective 01st January 2022, from USA and Canada to Australia and New Zealand. The amount of increase varies from carrier to carrier, the highest being USD 590 per 20GP and USD 1179 per 40GP/HC.
LCL General Rate Increase from USA to Australia and New Zealand:
We have been advised of a General Rate Increase to be applied on all LCL shipments coming from USA to Australia and New Zealand effective 10th January 2022, as follows:
USD 8 per w/m
Minimum USD 8.
IMO2020 Surcharge Increase from USA to Australia and New Zealand:
From 01st January 2022, IMO2020 surcharge has increased for all LCL cargo moving from USA to Oceania, the new surcharge will be:
USD 14 per w/m or minimum
LCL General Rate Increase from Germany to Australia:
A General Rate Increase has been applied on all LCL shipments coming from Germany to Australia effective 01st January 2022, as follows:
USD 40 per w/m
Minimum USD 40.
Container Maintenance Charge – Imports to Australia:
From 01st February 2022, some carriers will implement a Container Maintenance Charge on all import cargoes to Australia. The new surcharge will be assessed as follows:
USD 15 per 20GP
USD 30 per 40GP/HC
Destination Port Infrastructure Increase for LCL shipment:
Destination Port Infrastructure surcharge for all LCL shipments coming to Australia has increased slightly, effective 01st January 2022. The surcharge will be as follows:
AUD 7 per w/m
Minimum AUD 7.
Sydney Port Infrastructure Increase:
Sydney Port Infrastructure surcharge has increased slightly, effective 01st of January 2022. The updated Port Infrastructure fee in Sydney will be AUD 165 per container after this date.
Sydney Empty Container Park Increase:
Sydney Empty Container Park surcharge has increased slightly, effective 01st January 2022. The updated empty container park fee in Sydney will be AUD 135 per container.
Sydney Empty Container Park Peak Surcharge:
From 01st January 2022, there has been a Peak Surcharge to be applied on all empty dehire at Sydney terminals. The new surcharge will be AUD 25 per container.
Sydney and Melbourne Time Slot Booking Fee Increase:
Time Slot Booking Fee has increased in Sydney and Melbourne, effective 01st January 2022. Updated time slot booking fees are given below:
Sydney Time Slot Booking Fee = AUD 60 per container
Melbourne Time Slot Booking Fee = AUD 60 per container
Please note these increases are implemented by the terminals, which we do not have any control over and therefore have no option but to pass on.
Fuel Levy Increase in Sydney:
Fuel Levy in Sydney has increased to 17% for all FCL, LCL and Airfreight pickups/deliveries, effective 1st January 2022. This increase is due to the current shortage of AdBlue and the exorbitant fuel prices. This is subject to change.
Please note this is applicable for pickups and deliveries within metro areas only, fuel surcharge for regional and interstate areas will be higher and will vary depending on location.
We will keep you updated with any further information.
