Blog

Ongoing Shipping Delays/ Congestions/ Omissions 

Our partners at ADM Global have provided us with another update on international shipping.

Freight rates continue on the downward turn and spot rates are applied where possible.

SERVICES

  • Transhipment delays/congestion are starting to ease with an average delay of 2 weeks, depending on the TS port/line
  • New services have been announced ex SHA/SZX into AU, commencing the 31st of May, adding further capacity/volume into the AU market
  • Equipment/space demand is beginning to ease – container imbalance continues but some trades have a surplus Eg; China 40HC remains in demand but 20’s are now in surplus
  • Rates ex China/Indonesia are starting to ease and we will begin to see this reflect in APR/MAY rates – our NAC contractual rate remain the most competitive option but SPOT rates will be utilised where most competitive
  • Shipping lines have announced cancellation/amendment fees which we are navigating our way through at this time – we are anticipating that this will may be reviewed in APR with the easing of demand on services
  • BMSB from China as an ‘emerging risk country’ with heighten surveillance/inspections only as opposed to mandatory fumigation – this is creating delays with AQIS and pressure on AU treatment facilities with an increase in BMSB directions, unpacks and inspections
  • Global Fuel prices are increasing and BAF will be increasing come Q2 for all liner services
  • Fuel prices in the domestic market are also due to increase have been reviewed and we’ll monitor closely

CHINA

  • No further GRI announcements at this stage with market rates decreasing, slowly recovering and rates continue to decrease daily on a SPOT rate level
  • Lack of equipment and overbooked vessels are starting to ease and supply/demand is decreasing as we enter ‘slack’ season with the freight rates on the downward trend
  • Main China cities currently in lockdown which could have an impact on supply chain services – port operations are being impacted but mainly in SHA/NGB/SZX with trucking/production being heavily impacted with an estimated 25B financial impact
  • Transport services are being impacted by the lockdowns with limited resources to service the volume and a backlog being created, in the cities that are being lockdown – FOB China bookings for ITI are ex XMN/FUZ/SHA
  • New services have been announced ex SHA/SZX into AU, commencing the 31st of May, adding further capacity/volume into the AU market

INDONESIA

  • Equipment issues and overbooking in Indonesia are remain a challenge but have been steadily decreasing as supply/demand lowers
  • Services are becoming increasingly more reliable, however feeder services into TS ports are still being impacted
  • Shipments/services are impacted by ongoing transhipment delays in South East Asian ports (Port Klang/Singapore/Tanjung Pelapas)
  • Indonesia will be on public holiday for Eid Mubarak

USA

  • The situation in the US is easing with an average of 65 vessels anchored off major WC ports vs an average of 121 vessels in NOV/DEC, returning vessel capacity and equipment back into other markets more promptly
  • US haulage is in recovery and should begin to see an easing of pressure on infrastructure/services in the coming months, as long as the recovery period continues with no major set backs
  • US rail services are beginning to stabilise
  • Port congestion on the WC continues but is currently in recovery

EUR

  • As the situation with the Ukrainian conflict continues, we are monitoring global services closely – fuel pricing is being impacted
  • Fuel prices have increased due to the increase in global demand/supply
  • Sanctions on Russian products are applicable from the 3rd of March. Orders placed or departed prior to the announcement of sanctions will not be subject to the

AUSTRALIA

  • No further PIA action announced at this stage
  • Empty Parks are receiving an influx of empties and are turning away dehires – we are monitoring closely
  • Fuel is being monitored closely – MAY has been reduced with further reductions anticipated – we will apply reductions once received
  • Domestic transport has been impacted with the short weeks, we are experiencing congestion and backlog
  • Unpack depots are congested and pressure is being placed on national infrastructure, resulting in detention with surcharges continuously increasing from timeslots/dehire/tolls/port charges