Industry Update – January 2023
Attention: Shipping Manager
Situation in USA:
East Coast ports import volumes continue to improve compared to West Coast ports. Announcements in recent days highlight just how much progress the east coast has made during the pandemic era.
The latest stats also reveal that the month-by-month volume slide from the pandemic peak may be slowing, even at some of the hardest hit West Coast ports.
Main seaports in the East and Gulf Coast handled 54.9% of inbound volume last month, while the West Coast share was down to 45.1%. Pre-pandemic, those shares were reversed, with the West Coast handling about 55%. This is due to the ports of Long Beach and Los Angeles suffering severe congestion during the pandemic which resulted in importers/exporters redirecting container routings to minimize the effect of congestion delays. More recently, this related to concerns of disruption from potential labour unrest.
Despite the volume decrease on the West Coast, the ports of Long Beach and Los Angeles are still experiencing congestion, vessel delays and bookings are still getting rolled.
(Source: Freight Waves)
Situation in Europe:
Ocean carriers do not expect consumer demand in North Europe to recover until at least March, when they hope container freight rates from Asia will also rebound.
- Rail Freight price increase
In the past month, several new rail freight services across Europe have begun building momentum of a post pandemic shift, but strikes in the UK are adding to continental energy cost worries. Rising energy prices have been the main cause of an increase in rates and carriers are urging government intervention to halt the climb.
Situation in Asia:
- Price decreases
We are seeing freight rates continuing to decrease across several trade lanes, especially from China to Australia. The dip in prices could possibly be caused by the recent outbreak of COVID19 in China, as well as high inventory levels and a bearish market in general. As demand continues to fall, transportation capacity supply increases.
- Port congestion and blank sailings
The disruptions due to Lunar New Year holiday are expected to be more disruptive than in 2022, due to Covid outbreaks in China and factory closures during the holiday period.
As China reopens, an increase in port congestion and delayed container journeys are expected. With the reduced production and port capacity due to Covid infections, blank sailings have been prominent.
(Source: EPS News)
FCL Cargo Facility Charge in New York, USA (CFC):
Due to an increase in operational costs, effective from 10th January 2023, all containers loading or discharging in New York port are subject to Cargo Facility Charge (CFC). The cost will be as follows:
USD 16 per 20GP
USD 32 per 40GP/HC
Destination Airline Terminal Fee Increase:
Destination Airline Terminal Fee applicable for all airfreight cargo coming to Australia will increase from 1st February 2023. The new surcharge will be:
Minimum AUD 67
AUD 0.66 per kg
Destination Port Infrastructure Increases:
Destination Port Infrastructure surcharge has increased for Sydney, Melbourne and Brisbane effective immediately. Updated surcharges are given below:
Sydney Destination Port Infrastructure surcharge = AUD 190 per container
Melbourne Destination Port Infrastructure surcharge = AUD 210 per container
Brisbane Destination Port Infrastructure surcharge = AUD 235 per container
Empty Container Park Increases:
Empty Container Park surcharge has increased for Melbourne and Brisbane effective immediately. Updated surcharges are given below:
Melbourne Empty Container Park surcharge = AUD 115 per container
Brisbane Empty Container Park surcharge = AUD 110 per container
Melbourne Destination Timeslot Booking fee increase:
Destination Timeslot Booking fee in Melbourne has increased to AUD 85 per container, effective immediately.
Fremantle Side Loader Levy Fee Increase:
Side-loader Levy fee in Fremantle has increased to AUD 90 per container, effective immediately.
We will keep you updated with further information.