News
Industry Update – January 2024
Attention: Shipping Manager
Situation in USA:
- Panama Canal Low Water Surcharge
Due to the continued drought in Panama, the Panama Canal is experiencing severe state of low water and congestion as mentioned in previous broadcasts. With increasing costs and reduction of vessels transits across the canal, some shipping lines have implemented a Low Water Surcharge that will be effective immediately.
Whilst costs have not been confirmed yet, we do expect this charge will be passed on, by the lines, to all users of this trade lane.
- Vessels being re-routed amid Panama Canal drought
Confidence in the Panama Canals ability to handle container vessel transits has plummeted in recent weeks due to the ongoing drought in the region, leading to a significant shift in shipping routes. Many Asia-North America East Coast sailings opt to bypass the Panama Canal and take longer routes through the Suez Canal and Indian Ocean.
However, expectations that this shift would boost traffic through the Suez Canal have been dampened by recent attacks on commercial shipping mentioned above.
(Source: Loadstar)
Situation in Asia:
- Containers shortages expected before Chinese New Year
Empty container shortages are expected following the delays and diversions in the Red Sea, which could have longer-term ramifications for the supply chain as it heads into Chinese New Year.
Experts have suggested that there will be a lot of spill over effects, especially when it comes to equipment positioning. Equipment shortages are expected to hit Asia as soon as the second half of January.
(Source: Loadstar)
Situation in Europe:
- Red Sea and Suez Canal situation
As stated in previous broadcasts there have been reports of an increasing number of attacks on vessels approaching the Suez Canal.
As a result, some carriers have made the decision to re-route vessels around the Cape of Good Hope, adding up to an additional 21-24 days sailing time on transits.
Several weeks, if not months, of supply chain disruption look likely, with ships and containers in the wrong places in the build-up to Chinese New Year, which starts on 10 February.
Rates are expected to skyrocket, as lines have already began pushing up their rates from Asia quite significantly from 1 January, which will cement GRIs and more.
Further there are reports that vessels have now resorted to switching off their AIS transponders to conceal their movements. There has also been expressed concerns that turning off the AIS could impact the monitoring of containers.
“If the master believes that the continual operation of AIS might compromise the safety and security of his/her ship, or where security incidents are imminent, the AIS may be switched off”, experts say.
(Source: Loadstar)
- Railway strike announced throughout Germany
In a current dispute with the employers, the Train Drivers Union (GDL) intends to suspend train services throughout Germany for up to 5 days.
These measures will, of course, have a significant impact on all rail shipments in the coming days.
LCL Contingency surcharge
Due to recent events stated above in the Red Sea and Suez Canal, LCL carriers have announced a Contingency Surcharge. This surcharge depends on origin, ranging between USD 10w/m – USD 40w/m.
General Rate Increase from North East Asia to Australia and New Zealand:
We received notifications this month from some shipping lines in regards to two separate General Rate Increases from North East Asia to Australia and New Zealand, details as follows:
The first GRI will come into effect from 1st January 2024:
USD 300/20’
USD 600/40’
LCL will increase accordingly.
In addition to the first GRI, shipping lines will have a second GRI effective from 15th January 2024.
USD 400/20’
USD 600/40’
LCL will increase accordingly.
General Rate Increase from South East Asia to Australia and New Zealand:
We received notifications this month from some shipping lines in regards to two separate General Rate Increases from South East Asia to Australia and New Zealand, details as follows:
The first GRI will come into effect from 1st January 2024:
USD 300/20’
USD 600/40’
LCL will increase accordingly.
In addition to the first GRI, shipping lines will have a second GRI effective from 15th January 2024.
USD 500/20’
USD 1000/40’
LCL will increase accordingly.
Melbourne Timeslot Booking Fee Increase:
Destination Timeslot Booking Fee in Melbourne has increased to AUD 100, effective immediately.
Brisbane Empty Container Park Fee Increase:
Destination Empty Container Park Fee in Brisbane has increased to AUD 135, effective immediately.
We will keep you updated with further information.
