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Freight & Logistics Update – 1 February 2024

Freight & Logistics Update – 1 February 2024

Good Day Clients & Partners,

We hope you’ve had a wonderful week so far! Please find below the Freight & Logistics Update for the week. The Inter-Sped team are ready to jump for you – so don’t hesitate to contact us for any of your freight and logistics needs.

 

SOUTH AFRICA    

DURBAN

Port berthing delays continue to be experienced due to high levels of congestion. The port has reported windy weather during the week.

  • Pier 1 : Upto 7 days
  • Pier 2 : Upto 20 days
  • Durban Point : 3 days

 

CAPE TOWN

The port has reported strong winds during the week once again. Intermittent port closure experienced during the week.

  • CTCT : Upto 7 days
  • MPT : Upto 10 days

 

Delays are being experienced in uplifting equipment from the port due to weather conditions.

PORT ELIZABETH

The port has reported windy weather during the week.

  • PECT : 0-2 days
  • NCT : 3 days

 

AFRICA & INDIAN OCEAN ISLANDS    

ANGOLA

  • Berthing delays of 3 days experienced at Luanda port.

 

GHANA

  • Berthing delays of 3 days experienced at Tema port.

 

IVORY COAST

  • No berthing delays experienced at Abidjan port.

 

KENYA

  • Berthing delays of 4 days experienced at Mombasa port.

 

MAURITIUS

  • Berthing delays of 9 days experienced at Port Louis. Cyclonic weather conditions continued to be experienced in week 4 resulting in office and port closure. Congestion has
  • increased due to this, and delays are expected for cargo movement into and out of Mauritius.

 

MOZAMBIQUE

  • Berthing delays of 14 days experienced at Maputo port.

 

NAMIBIA

  • Berthing delay of 1 day experienced at Walvis Bay port.

 

NIGERIA

  • Berthing delay of 1 day experienced at Apapa port.

 

TANZANIA

  • Berthing delays of 14 days experienced at Dar es Salaam port.

 

NORTH AMERICA    

CANADA

Montreal

  • Berthing delays of 4 days experienced at this port. Bad weather continues on the North Atlantic Ocean, and this is having a mild impact on vessel schedules through Montreal.

 

Toronto

  • Berthing delays of 6 days experienced at this port.

 

Vancouver

  • Berthing delays of 4 days experienced at this port. Due to adverse weather conditions and significant snow buildup, all Port Terminals in Vancouver are experiencing delays
  • and/or suspension of operations for snow clearance.

 

USA

Terminals Updates:

  • New York/New Jersey – Vessel waiting time is up to 2 days.
  • Norfolk – Vessel waiting time is up to 5 days. Berth congestion had relaxed overall but it is expected to worsen after severe weather delays for ships arriving from New York
  • later in the week.
  • Savannah – Vessel waiting time is up to 5 days.
  • Charleston – Vessel waiting time is up to 3 days.
  • Miami/Port Everglades – Vessel waiting time is up to 4 days.
  • Houston – Vessel waiting time is up to 4 days. Bad weather in the Gulf of Mexico continues to cause closures at ports south of Houston and delays on arrival, on short notice.
  • Due to vessel bunching the yard is facing congestion impacting the discharge productivity and extending port stays.
  • Los Angeles/Long Beach – Vessel waiting time is up to 1 day.
  • Seattle – Vessel waiting time is up to 6 days.
  • Oakland – Vessel waiting time is up to 3 days.

 

Rail Updates:

  • BNSF – Rail ramp is currently experiencing congestion in Chicago, Columbus, and Los Angeles. There are delays in picking-up and delivering containers at these locations.
  • UP/LAX/LGB – Rail ramp is currently experiencing congestion in Los Angeles. There are delays in picking-up and delivering containers at this location.

 

Equipment Availability:

  • Due to persistent congestion nationwide, chassis shortages continue to be observed resulting in potential delays for pick-up and delivery.

 

LATIN AMERICA    

BRAZIL

  • No berthing delays experienced at Santos port.
  • Carrier scheduling out of the region has become erratic resulting in delays noted on original planned sailing dates. This is due delays experienced at South African ports
  • affecting the vessel rotation between Brazil and South Africa.

 

NORTH WEST CONTINENT, UNITED KINGDOM, MEDITERRANEAN    

BELGIUM

  • Berthing delays of 2 days experienced at Antwerp port.

 

FRANCE

  • Berthing delays of 3 days experienced at Le Havre port.

 

GERMANY

  • Berthing delays of 9 days experienced at Hamburg port and 7 days at Bremerhaven port. Delays are caused by strong winds experienced over the weekend has affected vessel arrivals
  • and departures.

 

ITALY

  • Berthing delays of 3 days experienced at Genova port and 1 day at La Spezia port.

 

NETHERLANDS

  • Berthing delays of 4 days experienced at Rotterdam port.

 

SPAIN

  • Berthing delays of 2 days experienced at Barcelona port.

 

SWEDEN

  • Berthing delay of 1 day experienced at Gothenburg port.

 

TURKEY

  • Berthing delays of 5 days experienced at Istanbul port.

 

UNITED KINGDOM

  • Berthing delay of 1 day experienced at London Gateway port.

 

INDIAN SUB-CONTINENT & MIDDLE EAST    

INDIA

  • Berthing delay of 1 day experienced at Nhava Sheva and Mundra ports, while Chennai is experiencing delays of 2 days.

 

UNITED ARAB EMIRATES

  • Berthing delay of 1 day experienced at Jebel Ali port.

 

ASIA PACIFIC (Including Oceania)    

Carrier capacity constraints are being experienced ex China ports due to blank sailings announced and upcoming Chinese New Year celebrations.

HONG KONG

  • Berthing delay of 1 day experienced at this port.

 

KOREA

  • Berthing delay of 1 day experienced at Busan port.

 

MALAYSIA

  • Berthing delay of 1 day experienced at Port Kelang.

 

NANSHA

  • Berthing delay of 1 day experienced at this port.

 

QINGDAO

  • Berthing delay of 1 day experienced at this port. Intermittent port closure experienced due to strong winds.

 

SHANGHAI / NINGBO

  • Berthing delay of 1 day experienced at Shanghai and Ningbo ports. Both ports experienced intermittent port closure due to strong winds.

 

SHEKOU / YANTIAN

  • No berthing delays experienced at Yantian port, while Shekou port has a berthing delay of 1 day.

 

XIAMEN

  • Berthing delays of 2 days experienced at this port.

 

XINGANG

  • Berthing delays of 1 day experienced at this port.

 

SINGAPORE

  • Berthing delay of 1 day being experienced at this port. No delays experienced for transshipment cargo. Delays are expected for FCL containers transshipping in Singapore. Expected
  • delays have increased to 2-3 weeks.

 

TAIWAN

  • Berthing delay of 1 day experienced at Kaohsiung port.

 

THAILAND

  • Berthing delay of 1 day experienced at Bangkok port.

 

VIETNAM

  • Berthing delays of 1 day experienced at Ho Chi Minh and Hai Phong ports.

 

NEWS ARTICLES    

Cape Town ramps up port personnel but winds hamper exports

Date: 24th January 2024

“The Cape Town Container Terminal (CTCT) has boosted its operations team and the number of haulers on the ground to improve efficiency during peak deciduous fruit season this month. However, inclement weather has continued to set back the handling of exports.

The terminal had recruited 62 new employees and raised the number of haulers available to operations from 32 to 44 to streamline cargo movement. This comes after the terminal has recorded a 14% decline in deciduous fruit volumes so far this season compared to last season, which has created cause for concern among industry stakeholders as inclement weather, with wind speeds up to 100 knots per hour, persists.

CTCT has so far this season handled a total of 113,966 twenty-foot equivalent (TEU) units of reefer containers, which were exported to European Union countries, Asia, the United Kingdom and the United States of America.

A 24–hour command centre has been set-up specially to facilitate business continuity despite a total of 202 hours lost to wind this month. [1]

 

Privatisation at Port of Maputo extended to 2058

Date: 25th January 2024

Mozambique’s multinational logistics partners responsible for giving the country’s port and rail operations a privatised edge have received a billion-dollar go-head for expanding capacity at the Port of Maputo.

Over and above investing a further $2 billion into Southern Africa’s most progressive port, according to last year’s Container Port Performance Index by the World Bank, DP World and Grindrod’s involvement in running the port has been extended to 2058.

Initially, the concessionaire’s management of the port would’ve ended in 2033, an agreement that includes an existing investment of $1.1 billion.

Privatisation of the port includes control over the country’s railways operator, Portos e Caminhos de Ferro de Moçambique.

A significant element of capacity expansion at the Port of Maputo involves increasing coal volumes from 7.5 million tonnes per annum to 18 million tonnes. But expanded coal capacity at the port’s Terminal de Carvão da Matola, could place more strain on the Maputo Corridor into Mozambique.

With year-on-year ongoing coal demand bringing about excessive road freight loads transitting through South Africa’s Lebombo Border Post, Komatipoort has buckled under the pressure of intolerable truck build-up on the N4. It remains to be seen to what extent ore traffic and border transit improvement efforts help to fasttrack ore-load processing into Mozambique. [2]

 

Alarm as road blocks by truckers and farmers spread across Europe

Date: 25th January 2024

The World Road Transport Organisation (IRU) has urged EU member states to address the “threat to free movement” from protests by farmers and truckers sweeping across the continent.

Roadblocks and rolling blockades have spread across France, in response to farmers’ anger at efforts by supermarkets to force down prices, and there is a combined protest by German farmers and truckers against environmental legislation.

IRU EU advocacy director Raluca Marian said: “The situation along Europe’s vital trade corridors is deeply concerning. “Road blocks and disruptions risk causing knock-on delays in the delivery of goods, affecting supply chains for manufacturing and threatening the availability of food, medicine and other essentials.”

While protests in France and Germany have been rumbling on since December, there are new pockets of action emerging across the EU, where there will be elections in June.[3]

 

ICS2: Are you ready for the new requirements?

Date: 22nd January 2024

Cargo movements into the EU will be impacted by the new ICS2 for maritime regulation that is scheduled to go into effect on 3 June 2024, and will affect all operators carrying goods by sea, road, and rail. Industry watchers are keeping a close eye on the implementation planning and guidance, especially on the maritime requirements which can have complex routings and will have a substantial impact on business processes.

Across all modes of transport, filers need to complete an Entry Summary Declaration (ENS) dataset prior to arrival when moving goods into the EU to allow the EU to complete risk analysis for safety and security purposes.

What are the challenges for cargo operations?

ICS2 requires not only connectivity to government agencies and filing within specified timeframes, but also calls for tight communication between parties. Some key challenges include:

  • Visibility & Control – Since what a carrier files is dependent on the forwarder filing; visibility, control, and information-sharing can be challenging
  • New Data Elements – Determining, managing, and collecting the data elements required for ICS2 compliance is complex and time-consuming
  • Process Challenges – From managing real-time data to complicated subsequent filings, technology is needed to better optimise processes [4]

 

‘Nervousness’ as container shortage starts to impact Indian exporters

Date: 22nd January 2024

Apart from rocketing freight rates, Indian exporters face another supply chain challenge linked to the Red Sea crisis: equipment availability. A shortage of empty containers is building at major container ports and hinterland locations.

They say equipment pressure is more pronounced at the ports of Nhava Sheva and Mundra, which together handle the lion’s share of India’s containerised ocean trade. A Mumbai-based forwarder noted: “40ft hi-cube boxes are acutely scarce. We have had to turn down bookings from some of our regular customers due to the equipment crunch. “Mundra is the area of greatest concern on equipment,” the forwarder added.

According to industry sources, the scarcity of empties has resurfaced in recent days and, by all indications, the problem could exacerbate as the Red Sea crisis creates deeper roots into the market. The box shortage is crimping the ability of exporters to ship goods against orders in hand and jeopardising new volume prospects. [5]

 

Red Sea vessel attack tally hits 40

Date: 25th January 2024

Since Iranian-backed rebels from Yemen started attacking merchant ships south of the Suez Canal after hijacking a vessel on November 19 and taking its crew of 25 seafarers hostage, 40 vessels have been targeted, mainly in the Red Sea. In the latest attack, two Maersk container carriers baring the US flag drew fire from members of the Shia Islamist Ansar Allah militia.

The Combined Maritime Force (CMF), headed up by US and UK navies, has retaliated with strikes on military and supportive installations in Yemen, but the country’s coastline of 2,200 kilometres seems too long for 22 CMF vessels to patrol.

The cost for commercial vessels to divert away from the Suez around the Cape of Good Hope has significantly increased due to the crisis in the Red Sea. As of recent reports, the price increase for container transportation from Asia to Europe has been substantial, with some sources citing a cost of $5,175 for the redirected route.

This has led to a doubling of transportation costs and a significant impact on global shipping traffic. The longer journey around Africa has also contributed to a 25-30% increase in freight rates. [6]

 

The Alliance carriers move to calm customer nerves after Hapag defection

Date: 24th January 2024

Following Hapag-Lloyd’s shock resignation from THE Alliance last week, its partners today reaffirmed their “unwavering commitment to maintaining a robust cooperation throughout 2024″‘.

Since Hapag-Lloyd and Maersk announced that, from February 2025, they would form a new vesselsharing alliance, the Gemini Cooperation, on the major east-west tradelanes, there has been intense speculation over the future of THEA. The brief statement from the THEA members is an attempt to calm the nerves of customers and stakeholders, but stopped short of any guidance on the future of the VSA after next January.

The consultant noted that, despite being regarded as the ‘lead line’ of THEA, Hapag-Lloyd is not the main tonnage provider; that is Japanese carrier ONE, with 38.7% of the alliance’s capacity. HapagLloyd provides 26.2%, followed by Yang Ming’s 17.6% and HMM with 17.5%.

ONE, Yang Ming and HMM currently deploy 2.3m teu on THEA services, which would be dwarfed by the rival Ocean Alliance if the partners decided to continue the VSA on their own. “A continuation of THEA with three carriers would significantly weaken its position on the transatlantic,

Another possible scenario is that an Ocean Alliance partner (CMA CGM, Cosco, OOCL or Evergreen) could be persuaded to join THEA. Alphaliner said this “could be an option for ONE, HMM and Yang Ming”, but added: “For the time being, such a move is purely speculative. [7]

 

SOURCES & REFERENCES    

SACO CFR | Hapag Lloyd | Maersk | MSC | Transnet | The LoadStar Publications | gCaptain.com | Shipco Transport | Splash247.com | Freightnews | Hellenic Shipping News | Seatrade Maritime News | JAS Newsflash

[1] https://www.freightnews.co.za/article/cape-town-ramps-port-personnel-winds-hamper-exports

[2] https://www.freightnews.co.za/article/privatisation-port-maputo-extended-2058

[3] https://theloadstar.com/alarm-as-road-blocks-by-truckers-and-farmers-spread-across-europe/

[4] https://theloadstar.com/ics2-are-you-ready-for-the-new-requirements-2/

[5] https://theloadstar.com/nervousness-as-container-shortage-starts-to-impact-indian-exporters/

[6] https://www.freightnews.co.za/article/red-sea-vessel-attack-tally-hits-40-galaxy-leader-incident

[7] https://theloadstar.com/the-alliance-carriers-move-to-calm-customer-nerves-after-hapag-defection/

 

Please contact your Inter-Sped representative with any urgent queries or freight needs. We continue to monitor the freight world developments closely, and will be in contact with you for updates that concern you.

 

Best Regards

JJ & The Inter-Sped Team