Good Day Clients & Partners,

Please find below the Freight & Logistics Update for the week.  As always, the Inter-Sped team are ready to go the extra mile for you – so don’t hesitate to contact us.

SOUTH AFRICA    

Kindly note that extreme weather conditions including strong winds, high waves and heavy rain are forecasted along the South African Coastline over the next few days especially between Cape Town and Port Elizabeth. This will impact vessel movement and operations. Carrier scheduling remains erratic with blank sailings, port omissions, rollover and changes to voyages being announced at short notice.

DURBAN

The port has experienced windy weather during the week. Appointment slots are constrained due to high volume of containers moving through Durban Terminals. All IDMs continue to move as scheduled.

• Pier 1 : 11-13 days delay
• Pier 2 : 12-15 days delay
• Durban Point : 3 days delay

 

CAPE TOWN

The port has experienced windy weather during the week. IDMs are moving as scheduled.

• CTCT : 1-3 days delay
• MPT : 0-2 days delay

 

PORT ELIZABETH

The port has experienced strong winds during the week. IDMs are moving as scheduled.

• PECT : 1-2 days delay
• NCT : 0-2 days delay

 

AFRICA & INDIAN OCEAN ISLANDS    

ANGOLA

• Berthing delays of 4 days experienced at Luanda port.

 

GHANA

• Berthing delays of 4 days experienced at Tema port.

 

IVORY COAST

• Berthing delay of 1 day experienced at Abidjan port.

 

KENYA

• Berthing delays of 3 days experienced at Mombasa port.

 

MAURITIUS

• Berthing delay of 1 day experienced at Port Louis.

 

MOZAMBIQUE

• Berthing delays of 7 days experienced at Maputo port.

 

NAMIBIA

• Berthing delays of 8 days experienced at Walvis Bay port.

 

NIGERIA

• Berthing delays of 2 days experienced at Apapa port.

 

TANZANIA

• Berthing delays of 9 days experienced at Dar es Salaam port. This is due to congestion being experienced.

 

NORTH AMERICA    

Shipco Transport have issued an advisory alerting customers to the upcoming hurricane season. Kindly refer to the content of the advisory below:

“Dear Valued Customers,
As we approach the 2024 hurricane season, Shipco Transport would like to proactively inform you of potential disruptions caused by hurricanes. These disruptions may include:

• Port Closures: For safety reasons, hurricanes can force ports to close, leading to delays in cargo loading & unloading.
• Blank Sailings: To avoid potential damage to vessels and crews during storms, shipping lines may implement blank sailings, meaning scheduled voyages are cancelled.
• Disruptions to Inland Transportation: Hurricanes can also damage inland infrastructure, such as roads and bridges, further impacting delivery timelines.

We are committed to keeping you informed of any potential disruptions caused by hurricanes. We will closely monitor the situation during the season and provide updates as needed.”

 

CANADA

Montreal

• Berthing delays of 2 days experienced at this port.

Toronto

• Berthing delays of 4 days experienced at this port.

Vancouver

• Berthing delays of 3 days experienced at this port.

 

USA

Terminals Updates:

• New York/New Jersey – Vessel waiting time is up to 3 days. Truck line port congestion continues due to 4th July holiday.
• Norfolk – Vessel waiting time is up to 3 days. Ships are expected to wait between 3-5 days for berthing following the July 4, 2024, holiday.
• Charleston – Vessel waiting time is up to 5 days. Omissions from all carriers slightly reducing the extent of the delays, however still up to 3 days delay this week with a decrease to 1–2 days delay next week. SC Ports expects to work ships on arrival by mid-July. As the toe wall construction resumes going into August, a 48-hour average wait is anticipated.
• Savannah – Vessel waiting time is up to 3 days.
• Miami/Port Everglades – Vessel waiting time is up to 3 days.
• Houston – Vessel waiting time is up to 4 days.
• Los Angeles/Long Beach – Vessel waiting time is up to 2 days.
• Seattle – Vessel waiting time is up to 1 day. All terminals closed on July 4 and 5, 2024.
• Oakland – Vessel waiting time is up to 2 days.

 

LATIN AMERICA    

BRAZIL

• Berthing delays of 5 days experienced at Santos port.

 

NORTH WEST CONTINENT, UNITED KINGDOM, MEDITERRANEAN    

Vessel schedule delays continue to impact the region. Amended port rotations and port omissions on the carrier services, as well as vessel changes, cascading / rolled schedules and blank sailings may result in amended LCL cargo loading schedules.

BELGIUM

• Berthing delays of 3 days experienced at Antwerp port.

 

FRANCE

• Berthing delays of 4 days experienced at Le Havre port. All strikes have been cancelled until September.

 

GERMANY

• Berthing delays of 2 days experienced at Hamburg and Bremerhaven ports.

 

ITALY

• Berthing delays of 6 days experienced at Genova port and 5 days at La Spezia port.

 

NETHERLANDS

• Berthing delays of 4 days experienced at Rotterdam port.

 

SPAIN

• Berthing delays of 8 days experienced at Barcelona port.

 

SWEDEN

• No berthing delays experienced at Gothenburg port.

 

TURKEY

• Berthing delays of 2 days experienced at Istanbul port.

 

UNITED KINGDOM

• Berthing delays of 3 days experienced at London Gateway port.

 

INDIAN SUB-CONTINENT & MIDDLE EAST    

Capacity constraints experienced on services out of the Indian Sub-Continent. This may lead to different transit times being achieved compared to what has been published.

INDIA

• Berthing delays of 2 days experienced at Nhava Sheva and Chennai ports.

 

UNITED ARAB EMIRATES

• Berthing delays of 2 days experienced at Jebel Ali port.

 

SRI LANKA

• Berthing delays of 2 days experienced at Colombo port. Carriers transhipping containers in Colombo are experienced delays in transshipment of 2-3 weeks.

 

ASIA PACIFIC (Including Oceania)    

Severe capacity constraints continue to be experienced out of Asia. This along with erratic scheduling, high numbers of vessel roll overs and blank sailings is resulting in delays for shipping out of Asia ports. This may lead to different transit times and schedules being achieved versus what has been published.

HONG KONG

• Berthing delays of 3 days experienced at this port.

 

KOREA

• Berthing delay of 1 day experienced at Busan port.

 

MALAYSIA

• Berthing delays of 2 days experienced at Port Kelang.

 

NANSHA

• No berthing delays experienced at this port.

 

QINGDAO

• Berthing delays of 4 days experienced at this port.

 

SHANGHAI

• Berthing delays of 2 days experienced at this port.

 

NINGBO

• Berthing delays of 2 days experienced at this port.

 

SHEKOU / YANTIAN

• Berthing delay of 1 day experienced at Shekou and Yantian ports.

 

XIAMEN

• Berthing delay of 1 day experienced at this port.

 

XINGANG

• Berthing delays of 2 days experienced at this port

 

SINGAPORE

• Berthing delays of 2 days being experienced at this port. Delays experienced due to bunching of vessels and congestion experienced at the port. FCL containers transshipping in Singapore have expected delays of 3-4 weeks.

 

TAIWAN

• Berthing delays of 2 days experienced at Kaohsiung port.

 

THAILAND

• Berthing delay of 1 day experienced at Bangkok port.

 

VIETNAM

• Berthing delays of 2 days experienced at Hai Phong port and 1 day at Ho Chi Minh port.

 

INDUSTRY NEWS  

All eyes on minister overseeing Transnet in Ramaphosa’s office

04/07/2024

The recent dissolution of the Department of Public Enterprises (DPE) and the transfer of Transnet oversight to the Presidency under Maropene Ramokgopa could positively impact the struggling logistics utility. Dr. Ongama Mtimka, a political analyst, believes this shift might reduce conflicts regarding the roles of the board and minister, which were often blurred under the DPE. He notes that the DPE’s broad scope and interventionist approach, initially meant to prevent state capture, often interfered with the independence of state-owned entities (SOEs). With Transnet now under presidential scrutiny, there’s hope that clearer boundaries will be established, allowing Ramokgopa and others, like Michelle Phillips at Transnet, to work effectively without undue interference.

Mtimka is cautiously optimistic about Ramokgopa’s potential, given her loyalty to President Cyril Ramaphosa and her capabilities. He hopes that the new oversight will enable the continuation of effective port and rail freight strategies, benefiting the country’s supply chain industry. However, he remains wary of political connections and interference, emphasizing the need for genuine commitment to the country’s best interests. The recent successful negotiation of a Government of National Unity, excluding corrupt elements, offers some reassurance, but the real test will be Ramokgopa’s ability to act independently and effectively. Source

 

Shipper fears resurface as Canadian rail workers renew vote for strike

01/07/2024

Canadian rail workers from the Teamsters Canada Rail Conference (TCRC) have overwhelmingly voted to reauthorize strike action, with 98.6% in favor. This strike could disrupt supply chains, as the union, representing 10,000 workers at CN and CPKC, plans to walk out at the earliest opportunity. The strike vote, valid for 60 days, was necessary after a government request to the Canada Industrial Relations Board (CIRB) paused previous strike actions and the initial strike ballot expired. The CIRB is determining if rail services are essential, which would affect the legality of the strike. Both rail operators and the union argue that the services should not be deemed essential, but the decision timeline is uncertain.

Negotiations between the union and rail companies have stalled, with major disagreements over crew scheduling, hours of work, and fatigue management. The union argues that demands for increased availability from train crews amid labor shortages are compromising safety and worker well-being. Mirko Woitzik from Everstream Analytics warns of widespread disruptions to rail and ocean shipping, which could lead to production stoppages and increased port congestion at major Canadian ports like Vancouver, Prince Rupert, Montreal, and Halifax. Shippers are preparing for potential supply chain disruptions starting mid-July if the strike proceeds. Source

 

South Carolina Ports Works to Reduce Vessel Delays

01/07/2024

South Carolina Ports (SC Ports) is taking steps to address ship delays by implementing operational solutions and temporarily pausing toe wall construction to reduce congestion for ocean carriers and cargo owners. A recent two-day software issue and ongoing berth impacts at Wando Welch Terminal have caused a ship backlog. The toe wall construction, which began in March to maintain a 54-foot berth depth, has also contributed to delays. However, operational measures have already reduced wait times and the number of ships waiting, currently leaving three ships at anchor. SC Ports plans to pause toe wall construction from July 3 to July 14, reopening all three berths at Wando Welch Terminal to expedite ship processing and clear the backlog.

By mid-July, SC Ports expects to handle ships upon arrival, with toe wall construction resuming in August and an anticipated 48-hour average wait time. By late fall, SC Ports aims to work on three ships simultaneously at Wando Welch Terminal, ahead of the project’s completion in March 2025. The reopening of Leatherman Terminal will also provide an additional berth at the Port of Charleston. SC Ports’ President and CEO Barbara Melvin emphasized the collaborative efforts with maritime partners to ensure fluidity for customers. Chief Commercial Officer Byron Miller highlighted the positive effects of operational measures like flexible start times and virtual queue times, which have improved ship processing and service restoration. Source

 

Increase in draught and daily transits for Panama Canal

01/07/2024

Celebrating the eighth anniversary of its expansion, the Panama Canal has announced an increase in its maximum draught and daily transits. The Panama Canal Authority (ACP) raised the maximum authorised draught from 46 to 47 feet and will further increase it to 48 feet on July 11. Additionally, starting August 5, a new booking slot for the Neopanamax locks will increase daily transits to 35 ships, nearing the canal’s design capacity of 36-38 transits per day and a 50-foot maximum draught. These improvements are possible due to the current and projected water levels of Gatun Lake and the rainy season. The canal handles 13,000 to 14,000 vessels annually, connecting 170 countries and 1,920 ports worldwide. Source

 

South-east Asia transhipment call omissions a blow to India’s exporters

04/07/2024

Indian shippers are facing significant delays and port call omissions due to ongoing schedule disruptions linked to Red Sea trade routes. The issues, primarily affecting connections to Asia and the Middle East, have led to congestion at key hub ports. For instance, CMA CGM’s Middle East-India-East Africa (MIDAS 2) loop will skip Mundra in an upcoming voyage, with the CMA CGM San Antonio only calling at Nhava Sheva on July 7. This weekly service usually rotates through Jebel Ali, Mundra, Nhava Sheva, and Durban. Additionally, CMA CGM has announced other port omissions for various routes, including Singapore, Port Klang, Colombo, and Hamburg, causing further disruptions for Indian shippers and forwarders.

The ongoing schedule disruptions have created serious space problems on vessels through July, exacerbating the impact on supply chains. Congestion and deteriorating schedule reliability due to the Red Sea crisis have led to longer transit times. Despite efforts by carriers to alleviate these issues, challenges persist. Some carriers have started skipping ports like Singapore and instead transshipping containers at other hubs such as Port Klang. Shippers are advised to plan their shipments according to current market conditions, as peak-season orders are being placed earlier. Concerns have also been raised about shipping lines relaying third-country cargo via Indian ports, potentially squeezing space allocations for local exports. This has led to a sharp increase in transshipment volumes at Nhava Sheva and Mundra ports in recent months. Source

 

With almost all box ships arriving late, Singapore acts to reduce time in port

04/07/2024

Singapore’s transport minister, Chee Hong Tat, announced that the Maritime and Port Authority (MPA) and port operator PSA are collaborating with liner operators to improve vessel arrival times and operations. Nearly all containerships bound for Singapore are arriving late due to the Red Sea crisis, with 90% of boxships this year not berthing on time. Efforts to optimize arrival times include implementing a just-in-time system for delayed ships to refuel and replenish supplies while waiting to berth. Although containerships are staying longer to load and discharge cargo, causing increased wait times, the anchorages are not crowded. To handle the influx, the first of three new berths at Singapore’s Tuas estate megaport began operations, with two more opening later this year. Singapore, the world’s busiest container transhipment port and largest bunkering port, sold a record 51.8 million tonnes of marine fuels in 2023. Source

 

Liner schedule reliability improving, but late ships are arriving even later

01/07/2024

Despite ongoing port congestion, equipment shortages, and Red Sea diversions, May saw an improvement in global shipping schedule reliability, according to Sea-Intelligence. Industry-wide reliability increased by 3.8 percentage points from April to reach 55.8%, the highest this year. However, this is still 11 percentage points lower than May last year. The average delay for late arrivals worsened, increasing by 0.34 days to 5.1 days. CMA CGM was the most reliable major carrier at 57.1%, while Singapore’s PIL was the least reliable at 44.5%. Although 10 carriers improved month-on-month, none saw a year-on-year increase in reliability due to persistent disruptions and Houthi attacks. Source

 

Managing freight spend the main concern as Red Sea crisis drags on

03/07/2024

Managing freight costs is the top concern for shippers and forwarders as supply chain volatility continues to drive ocean rate hikes. According to Xeneta’s mid-year update, the CEO, Patrik Berglund, noted that while carriers expected financial losses in 2024, the skyrocketing spot market has turned their outlook to a profitable year. Spot rates on major trades from the Far East initially spiked, softened, and then escalated again in May, exceeding expectations. Average spot rates on major routes from Asia are now over 300% higher than in December. Xeneta’s poll revealed that 46% of shippers and forwarders cite managing freight spend as their primary challenge this year. Rising spot rates have also impacted contract rates, with 74% of Xeneta customers experiencing premium surcharges since the Red Sea crisis began.

Maersk CEO Vincent Clerc explained that higher freight rates are due to increased charter costs as cargo journeys lengthen and capacity is squeezed. These costs, he noted, will persist beyond the Red Sea crisis. Clerc assured that high rates are temporary and will eventually normalize as new tonnage is phased in or normal sailing routes resume. However, Vespucci Maritime CEO Lars Jensen pointed out that it has been over 200 days since container lines started diverting vessels around Africa, suggesting that this situation might not be resolved in the near future. The Loadstar’s managing editor, Gavin van Marle, also predicted further rate hikes as carriers aim to capitalize on current market conditions. Source

 

Box ship buys push MSC to record 20% market share of liner trade capacity

03/07/2024

MSC now holds a 20% share of the global container shipping market in terms of capacity, a record in the liner industry, according to new Alphaliner data. MSC’s fleet has grown faster than any other carrier due to a massive new building program, numerous second-hand acquisitions, and chartering. With a fleet capacity surpassing 5 million TEUs last year, MSC is just one big ship delivery away from the 6 million TEU milestone. As of May 30, THE Alliance carriers held 11.6% of the global market share, the future Gemini Cooperation (Maersk and Hapag-Lloyd) 22%, and Ocean Alliance members nearly 29%. MSC’s market share now exceeds some major ocean alliances, allowing it to operate a global network independently of the soon-to-end 2M alliance with Maersk.

Xeneta noted in its half-year report that the 2M Alliance disbandment is already underway, with MSC and Maersk running their own services under the 2M banner. Alphaliner highlighted that it was the former Maersk vessel, the MSC Nicole X, that helped MSC reach its 20% market share. The changes in alliances during existing long-term liner contracts will be challenging, especially in the volatile market of 2024. Xeneta advised shippers to seek information and assurance from carriers, be prepared to build new relationships if switching carriers, and consider the differing strategies and unique selling points of the carriers. The Gemini Cooperation will see Hapag-Lloyd and Maersk operate 290 vessels with a combined capacity of 3.4 million TEUs. Meanwhile, Ocean Alliance members will extend their cooperation until at least 2032, deploying 4.5 million TEUs on the main east-west routes. Source

 

Spot rate surge to continue past Golden Week, with surcharges causing more pain

05/07/2024

Since the implementation of peak season surcharges (PSS) and new FAK (freight all kinds) levels on July 1, spot freight rates for major east-west container trades have seen significant increases. The Asia-North America trades posted the largest gains this week, with Drewry’s World Container Index for the Shanghai-Los Angeles leg growing 12% to $7,472 per 40ft and Xeneta’s XSI recording $7,648 per 40ft for the Asia-US west coast leg. The Shanghai-New York leg saw a 17% increase, ending the week at $9,158 per 40ft on the WCI, while the Shanghai-Rotterdam leg rose 10% to $8,056 per 40ft.

The rising spot rates are causing forwarders and shippers to pay well above the quoted indexed rates to secure space in a strong demand environment, impacting major box shippers with significant contracted volumes. Freight forwarders in Europe report that importers and big BCOs are now facing space guarantee surcharges and higher rates to get their cargo loaded. Spot rates on Asia-North Europe have already breached $10,000 for many customers, and elevated pricing is expected to continue until at least China’s Golden Week holiday on October 1. Some believe rates could increase by another 50%, reaching a ceiling of $15,000, with vessel space remaining tight and bookings being made weeks in advance. Source

 

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

We continue to monitor the freight world developments closely, and will be in contact with you directly for updates relevant to you on an individual shipment level.

 

Best Regards,

Jennifer & The Inter-Sped Team