News
Industry Update – May 2024
Attention: Shipping Manager
Situation in Suez Canal
- More ships attacked as Houthis claim danger area ‘expanding’
Eight consecutive days of incident free shipping in the Red Sea between 23 March and 1 April, marked the longest quiet streak since December, when containerships began diverting around the Cape of Good Hope. Over the past few weeks, unfortunately, there has been an increase in attacks on vessels in the Red Sea and a Houthi spokesperson has sparked fears of the ‘danger area’ expanding into the Arabian Sea.
Situation in USA
- Situation in Baltimore
The Key Bridge Response 2024 Unified Command has announced that the Port of Baltimore, Maryland has reopened for commercial cargo vessel operations, with limited access via temporary navigable channels. The first container ship arrived at the Port of Baltimore late last month since the Francis Scott Key Bridge collapsed on March 26th. Four temporary channels have been opened since the bridge’s collapse, with the fourth channel to only be open for a few days, but at 35 feet deep and 300 feet wide it will allow several ships that are stuck in the Port of Baltimore to get out.
The opening of these channels follows the largest of four recent openings on Thursday, which restored 15% of the pre-collapse commercial activity at the Port of Baltimore. The adjustment will allow large commercial ships that were stuck to depart and others to enter, including those carrying containers, vehicles, and farm equipment.
(Source: CBS News)
- Fears of rail strike looming in Canada
Canadian rail workers union, the Teamsters Canada Rail Conference (TCRC), has called for strike action “at the worst possible time”, after five months of discussion with the rail operator employers. If a deal cannot be reached between the TCRC, the Canadian National Railway (CN) and the Canadian Pacific Kansas City (CPKC) by 22 May, operators and dispatchers across the country will strike.
- Panama Canal transits increasing from next month
Services are to begin resuming Oceania-North America east coast string as an all-water service through the Panama Canal next month, dropping the Isthmus rail land bridge link. As rainy season approaches, Panama Canal Authority (ACP) has increased its daily transit limit to 27 from the 24 it had enforced in December. Since its locks were expanded, the canal had capacity for 34 to 38 daily transits.
(Source: Loadstar)
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 May 2024:
USD 500/20’
USD 1000/40’
LCL will increase accordingly.
In addition to the first GRI, shipping lines will have a second GRI effective from 15th May 2024.
USD 300/20’
USD 600/40’
LCL will increase accordingly.
DP World – Enterprise Agreements (2024) Approved By The Fair Work Commission
DP World have advised that their applications for approval of DP World Enterprise Agreement 2024 for each of the DP World Sydney, Melbourne, Brisbane and Fremantle terminals have now been approved by the Fair Work Commission. The agreements take effect from 23 April 2024 to the nominal expiry date of 31 January 2028, with discussions for the re-negotiation of these agreements to commence four months in advance of the nominal expiry date. This is welcome news for all concerned.
ISPM15 Wood Packaging Requirements for Export Cargo
Please be advised ISPM 15 Wood Packaging requirements must be adhered to when exporting cargo from Australia. It is the responsibility of the shipper to ensure that any cargo containing wood and/or wood packaging is in line with the requirement of the country of destination.
Please note: Cargo may be delayed and additional costs incurred at shippers’ expense, if these requirements are not adhered to. Please refer to the below link to AQIS which provides further information regarding the ISPM 15 Standard and information regarding the requirements of each country of destination.
https://www.agriculture.gov.au/biosecurity-trade/export/certification/wood-packaging
Adelaide Destination Empty Container Park Fee Increase
Destination Empty Container Park Fee in Adelaide has increased to AUD 110, effective immediately.
We will keep you updated with any further information.
