Good Day Clients & Partners,

Below is the latest Freight & Logistics Update.  As always, the Inter-Sped team are ready to go the extra mile for you – so don’t hesitate to contact us with any questions you may have.

SOUTH AFRICA    

Berthing delays experienced across all South African ports has improved compared to previous weeks. Due to carrier scheduling being erratic, we continue to expect blank sailings, port omissions, rollovers, and changes to voyages being announced at short notice.

DURBAN

The port has experienced windy weather during the week.

• Pier 1 : 8-9 days delay
• Pier 2 : 8-11 days delay
• Durban Point : 3 days delay

 

CAPE TOWN

The port has experienced windy weather during the week.

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

 

PORT ELIZABETH

The port has experienced strong wind speeds during the week.

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

 

AFRICA & INDIAN OCEAN ISLANDS    

MSC which is used for services to East Africa has changed their routing. Containers leaving ex Durban destined for Maputo, Dar es Salaam and Mombasa will now tranship in Coega before heading northbound thus resulting in increased transit times achieved vs what has been published.

ANGOLA

• Berthing delay of 1 day experienced at Luanda port.

 

GHANA

• Berthing delays of 3 days experienced at Tema port.

 

IVORY COAST

• Berthing delays of 2 days experienced at Abidjan port.

 

KENYA

• Berthing delays of 2 days experienced at Mombasa port.

 

MAURITIUS

• Berthing delays of 3 days experienced at Port Louis.

 

MOZAMBIQUE

• Berthing delays of 2 days experienced at Maputo port.

 

NAMIBIA

• Berthing delays of 6 days experienced at Walvis Bay port.

 

NIGERIA

• Berthing delays of 4 days experienced at Apapa port. The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have warned of an imminent nationwide strike beginning on Monday, June 3rd, 2024.

 

TANZANIA

• Reduced berthing delays of 5 days experienced at Dar es Salaam port. Delays are due to vessels bunching and high levels of congestion.

 

NORTH AMERICA

 

CANADA

 

Montreal

• Berthing delay of 1 day experienced at this port.

 

Toronto

• Berthing delays of 9 days experienced at this port.

 

Vancouver

• Berthing delays of 3 days experienced at this port. Workers with the Canadian Border Service Agency (CBSA) can begin job action as of June 7, 2024, across Canada. As CBSA is considered essential, delays to services, such as container inspections or documentation handling could be expected, however workers will continue to perform their duties. Negotiations are ongoing with the involvement of Federally appointed mediators.

 

USA

Terminals Updates:

• New York/New Jersey – Vessel waiting time is up to 3 days. Turn times for Port Liberty Terminal Bayonne are running higher due to 1 RMG stack being out of service until June 7, 2024.
• Norfolk – Vessel waiting time is up to 3 days.
• Charleston – Vessel waiting time is up to 4 days. Continuing to experience delays due to toe wall construction, a cargo spill on June 6, 2024, was not as severe as the last one and mostly contained onboard causing additional delays. Cleanup is in process, so far, a 14-hour delay expected at the berth. Contingency plan in place to shift to HLT if cleanup cannot be completed by 17:00 hrs. on June 7, 2024.
• Savannah – Vessel waiting time is up to 5 days. Effective July 7, 2024, Georgia Ports will begin locking vessels expected to be at berth and working July 15, 2024. The first day of receiving (ERD) will be at 04:00 hrs. – 7 days prior to the vessel going to work. The terminal cut will be set at 16:00 hrs. – 2 days prior to the vessel going to work.
• Miami/Port Everglades – Vessel waiting time is up to 4 days.
• Houston – Vessel waiting time is up to 2 days.
• Los Angeles/Long Beach – Vessel waiting time is up to 1 day.
• Seattle – No waiting time at this port. Terminal 18 will be closed on June 7, 14, 19 and 24, 2024. Husky will have a Saturday gate on June 8, 2024.
• Oakland – Vessel waiting time is up to 2 days. Port of Oakland has started the bollard and fender replacement project at OICT, starting with Berth 55 through Berth 59. Project is expected to last into Q1 of 2025.

 

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 2 days experienced at Antwerp port.

 

FRANCE

• Berthing delays of 2 days experienced at Le Havre port.

 

GERMANY

• Berthing delays of 5 days experienced at Hamburg port and no delays at Bremerhaven port.

 

ITALY

• Berthing delays of 2 days experienced at Genova port and 6 days at La Spezia port.

 

NETHERLANDS

• Berthing delays of 2 days experienced at Rotterdam port.

 

SPAIN

• Berthing delays of 4 days experienced at Barcelona port.

 

SWEDEN

• Berthing delays of 11 days experienced at Gothenburg port.

 

TURKEY

• No berthing delays experienced at Istanbul port.

 

UNITED KINGDOM

• Berthing delays of 4 days experienced at London Gateway port.

 

INDIAN SUB-CONTINENT & MIDDLE EAST    

Capacity constraints are being 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 port and 1 day at Chennai ports.

 

UNITED ARAB EMIRATES

• Berthing delays of 3 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.

 

APAC (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 delay of 1 day experienced at this port.

 

KOREA

• Berthing delays of 3 days experienced at Busan port.

 

MALAYSIA

• Berthing delays of 2 days experienced at Port Kelang.

 

NANSHA

• Berthing delays of 2 days experienced at this port.

 

QINGDAO

• Berthing delays of 3 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 Yantian port and 2 days at Shekou port.

 

XIAMEN

• Berthing delays of 3 days experienced at this port.

 

XINGANG

• Berthing delays of 3 days experienced at this port

 

SINGAPORE

• Berthing delays of 3 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 3-4 weeks.

 

TAIWAN

• Berthing delay of 1 day experienced at Kaohsiung port.

 

THAILAND

• Berthing delay of 1 day experienced at Bangkok port.

 

VIETNAM

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

 

NEWS ARTICLES    

Shippers fearing rail strike in Canada keep inventory high:

04/06/2024

Large shippers are maintaining high inventory levels due to fears of an imminent Canadian rail strike, which could lead to a complete shutdown rather than limited operations. Canadian National (CN) and Canadian Pacific Kansas City (CPKC) have stated that continuing only essential services during a strike would be more harmful than a total stoppage. The planned strike by CN and CPKC workers on May 22 was delayed by the government’s request for the Canada Industrial Relations Board (CIRB) to assess if a strike would endanger public safety. The Teamsters National Rail Conference (TCRC) union, however, plans to strike as soon as possible after the CIRB ruling, and no negotiations have taken place since.

On May 27, the CIRB reviewed inputs from various stakeholders, including concerns about economic impacts and the supply of essential goods. Requests have been made for advanced notice of the CIRB’s decision or an extension of the 72-hour notice period required before a strike, with supply chain experts suggesting 30 days is needed to prepare. The CIRB has asked for final replies by June 14, with a decision and potential strike expected by the end of the month. Both rail operators and the union agree that rail services should not be deemed essential, and argue against partial operations during a strike, citing logistical challenges. Shippers are preparing for the strike by increasing inventory and considering alternatives like trucking and external warehousing in the US. Maersk plans to divert some cargo to the Seattle-Tacoma port to avoid disruptions, but this may cause congestion in US rail networks. Additional concerns arose as customs and immigration agents voted to strike, further threatening the stability of cargo flows in and out of Canada. Source

 

Baltimore port’s main shipping channel to reopen after 75-day shutdown:

05/06/2024

The main shipping channel into the Port of Baltimore, which had been closed for 75 days due to the Dali boxship allision, is set to reopen this weekend. The incident occurred in late March when the Dali, chartered by Maersk, lost power and collided with a supporting pillar of the Francis Scott Key Bridge, causing the bridge to collapse and halting operations at the port. The closure severely impacted the port’s capacity, resulting in significant delays and cargo diversions. Tragically, six workers on the bridge drowned. Port authorities, along with the US Coast Guard and engineering firms, have worked tirelessly to clear the channel and repair the damaged infrastructure. The Dali was refloated and towed away for repairs, and the bridge was extensively inspected and reinforced to ensure safety.

With the channel set to reopen, Port of Baltimore officials are optimistic about a swift recovery. The port, a key gateway for automotive, agricultural, and manufacturing goods, experienced a temporary decline in throughput, straining logistics networks and increasing costs. Efforts are being made to expedite the backlog of cargo and restore normal operations, with additional resources and extended working hours allocated to manage the expected surge in activity. Port of Baltimore executive director William P. Doyle emphasized the importance of reopening the channel, stating it is crucial for the port to continue serving as a vital hub for commerce and to support partners in resuming normal operations quickly. Source

 

Dead last among 405 ports – SA flies the CPPI rogues flag again:

05/06/2024

The 2023 Container Port Performance Index (CPPI) highlights the excellence of East and Southeast Asian ports, which claimed 13 of the top 20 spots. Developed by the World Bank and S&P Global Market Intelligence, this fourth edition of the CPPI is based on extensive data from over 182,000 vessel calls, 238.2 million moves, and approximately 381 million TEUs throughout the year. With more than 80% of global trade transported by sea, the efficiency and resilience of ports are vital for economic stability. Notably, China’s Yangshan Port retained the top spot, followed by Oman’s Port of Salalah and Colombia’s Port of Cartagena.

In contrast, South Africa’s container ports ranked among the worst, with Cape Town in last place out of 405 ports. Other South African ports like Ngqura, Durban, and Port Elizabeth also ranked poorly, while regional ports such as Walvis Bay and Maputo fared slightly better. The report noted that while the effects of the COVID-19 pandemic have lessened, container shipping remains unpredictable, requiring major ports to invest in resilience, new technology, and green infrastructure. New ports like Muuga Harbour in Estonia and Oman’s Port of Duqm joined the rankings, and India’s Visakhapatnam Port made it to the top 20. Despite challenges, improvements in port performance, like Tanzania’s Dar es Salaam reducing ship arrival times by 57%, highlight a growing focus on efficiency and resilience in the maritime sector. Source

 

Tanzania port deal latest step as Adani increases its global footprint:

03/06/2024

Adani Group, India’s leading port operator, is striving to become the world’s largest port operator by 2030. Through its port division, Adani Ports and Special Economic Zone (APSEZ), the conglomerate has secured a 30-year concession to operate a container terminal at Dar es Salaam Port, Tanzania’s primary cargo gateway. This deal, an extension of a joint venture with Abu Dhabi Ports called East Africa Gateway, involves acquiring the project company for $39.5 million. The terminal, which handled 820,000 TEUs last year, has a capacity of 1 million TEUs. APSEZ aims to enhance trade volumes and economic cooperation between its ports and East Africa. Recent investments in port operations include long-term concessions for Haifa Port in Israel and a container transshipment terminal at Colombo Port in Sri Lanka, expected to start operations by early 2025.

In India, Adani recently acquired a 95% stake in Gopalpur Port for approximately $162 million, expanding its operations to 14 locations and controlling nearly 50% of India’s containerized ocean trade. Mundra Port, Adani’s primary port, saw a 15% increase in volumes, reaching 7.4 million TEUs in 2023-24, driven by a partnership with MSC for container transshipment, which hit 1.7 million TEUs. Adani’s upcoming Vizhinjam Port in southern India is poised to become a regional maritime hub due to its strategic location and deep-water capabilities. APSEZ aims to handle 500 million tonnes of cargo by 2025, up from 420 million tonnes in 2023-24, targeting 40% of India’s ocean trade. Source

 

Panama Canal slowly returning to normal:

03/06/2024

The Autoridad del Canal de Panamá (ACP) announced an immediate increase in the maximum authorised draught for vessels in the Neopanamax locks to 13.71 meters (45 feet), ahead of the planned June 15 date. This announcement follows the recent increase in daily transits through the Neopanamax locks from seven to eight, effective June 1, bringing the total daily transits to 32. Additionally, water levels in Gatun and Alhajuela Lakes have risen above last year’s levels due to the rainy season, with Gatun Lake reaching 81.142 feet on May 30, compared to 80.384 feet a year ago. Source

 

British port goes fully electric on new berth:

04/06/2024

Ten years after its launch, London Gateway, operated by DP World, is set to commission a fourth berth, making it the first all-electric facility in global sea logistics. The new £350 million facility will increase the port’s capacity by a third and utilize advanced sustainability technologies such as electric straddle carriers and automated stacking cranes. This will significantly reduce the port’s carbon footprint, aligning with DP World’s goal of achieving full electrification by 2050.

The introduction of electric straddle carriers and automated stacking cranes is a key step toward reducing emissions and improving operational efficiency and productivity at the port. The £350 million investment in the fourth berth underscores DP World’s commitment to innovation and sustainability. As the port expands and evolves, it aims to set a new standard for environmentally-friendly port operations. The new berth, expected to launch before the end of the English summer, marks a significant milestone for London Gateway and reinforces its position as an industry leader in sustainability initiatives. Source

 

Flooding brings North European barge traffic to the brink of chaos:

05/06/2024

Europe’s inland waterways are facing significant disruption following recent flooding in southern Germany, which has already impacted the region’s rail freight sector. Persistent heavy rain has caused extreme flooding, leading to five confirmed casualties and doubling the level of the River Danube from its usual three meters to over six meters. Along the Rhine, water levels have exceeded 8.25 meters around Worms, marking the highest levels in over a decade. Intermodal sector sources report stoppages due to high water levels at the Kaub gauge, with blockages in several areas, including Mannheim and Frankfurt.

The heavy rainfall along the Rhine has caused ongoing blockages in Mannheim and Maxau since the weekend, with expectations of prolonged disruption. One operator reported 13 barges unable to reach their destinations, and other inland operators are facing similar issues. Additionally, rail lines have been affected, with Deutsche Bahn warning of inaccessibility to long-distance trains in Munich from Stuttgart, Würzburg, and Nuremberg, leading to cancellations and delays on routes such as Munich to Berlin and Stuttgart to Frankfurt. HHLA-owned intermodal operator Metrans also reported significant impacts on its rail services to and from Munich. Source

 

Port congestion disrupts almost half Asia-Europe sailings:

04/06/2024

Nearly half of all Asia-Europe westbound sailings have failed to depart on time due to escalating congestion in Asian ports. According to Linerlytica, only six out of 11 Asia-North Europe sailings departed on schedule last week, with significant disruptions at Singapore and Tanjung Pelepas. Although bottlenecks in Singapore have eased, congestion has worsened at Port Klang and Tanjung Pelepas in Malaysia, with Shanghai and Qingdao experiencing the longest delays, causing ships to wait up to five days to berth in Shanghai.

S&P vessel-tracking data shows heavy congestion, with 50 containerships in Shanghai and 56 in Singapore, where authorities have reopened Keppel Terminal to alleviate queues. Despite these efforts, 380,000 TEU of vessels are delayed in Singapore, down from 450,000 TEU last week. Port Klang has 51 containerships waiting, and southeast and northeast Asian ports account for a significant portion of global vessel queues. Taiwanese liner operators Evergreen, Yang Ming, and Wan Hai do not anticipate short-term relief from the congestion, predicting high freight rates into Q3. Linerlytica reports that liner capacity utilisation remains very high, with June’s scheduled Asia-Europe capacity 3% lower year on year due to ongoing delays and forced blankings. Source

 

Spot rates ex-China set to hit five figures – high street prices will rise, warning:

07/06/2024

Container spot freight rates saw significant double-digit increases this week due to general rate hikes and surcharges implemented on June 1. Drewry’s World Container Index (WCI) reported week-on-week gains of 14%, 17%, and 11% on its Shanghai-Rotterdam, Shanghai-Genoa, and Shanghai-Los Angeles routes, respectively. The Asia-North Europe leg stood at $6,032 per 40ft, while Xeneta’s spot rate XSI index for the same route jumped 18.5% to $5,647 per 40ft. Rates for Shanghai-Genoa reached $6,664 per 40ft, and Shanghai-Los Angeles hit $5,975 per 40ft. The Shanghai-New York spot rate increased by 6% to $7,214 per 40ft. The XSI’s transpacific route saw a 19.5% rise, reaching $5,859 per 40ft. Analysts expect freight rates from China to keep rising with the early peak season, with predictions that spot rates from Asia could exceed $10,000 per 40ft by July.

The surge in spot rates is beginning to affect retail prices, according to the BBC. Future rates will depend on demand, which may subside earlier than usual if the peak season demand drops. Freightos head analyst Judah Levine suggests that rates could decrease once the peak season slows, but are unlikely to fall below April levels until Red Sea traffic resumes. Meanwhile, the transatlantic headhaul Rotterdam-New York spot rate declined by 4% to $2,136 per 40ft. Additionally, a container price bubble has emerged due to equipment scarcity at Asian export hubs, with average prices for 40ft high-cube units in key Chinese ports rising 45% last month. Container xChange CEO Christian Roeloffs notes that the current spike in container prices is unsustainable, driven by short-term factors rather than strong demand. He anticipates a stabilization or decline in container prices as initial inventory restocking subsides and consumer spending remains flat. Source

 

Houthis continue to disrupt Red Sea trade with brazen attacks:

03/06/2024

Yemen’s Houthi rebels have claimed responsibility for six recent attacks on shipping in the Red Sea and Gulf of Aden, including attempts to strike the USS Dwight D. Eisenhower aircraft carrier and an American destroyer. This marks the second claimed attack on the Eisenhower within two days, as regional tensions escalate. Since November, when the Houthis hijacked a roll-on-roll-off pure car truck carrier near the Bab al-Mandab Strait, they have continued their campaign against shipping. Rebel leader Abdul-Malik al-Houthi has threatened to expand attacks unless Israel ceases hostilities against Hamas in Gaza.

The attacks have significantly disrupted global trade, with over 50 attacks launched by the Houthis, resulting in the deaths of three sailors and the seizure of the Galaxy Leader and its crew. The most recent attacks, reported on Saturday, targeted multiple vessels in the Red Sea and Gulf of Aden. While the US military has not officially confirmed the incident involving the Eisenhower, the ongoing conflict and resulting disruptions have led to increased costs and longer routes for many vessels, affecting about 12% of global trade. The US and UK have conducted airstrikes against the Houthis to protect shipping, but the Houthis have continued their assaults, leading to international condemnation and further complicating the situation in this critical maritime region. Source

 

More modal shift predicted as rising spot rates squeeze markets:

04/06/2024

Air and ocean freight capacity from Asia to major markets is expected to remain tight, driving up rates due to increasing demand and several disruptive factors. According to Dimerco’s latest Asia Pacific Freight report, more business is shifting to spot pricing, and some traffic is moving from ocean to airfreight. Despite a slight decline in the global manufacturing PMI in April, moderate economic expansion and disruptive developments, such as potential work stoppages in Canada and the US, new tariffs in the US and Brazil, and new EU regulations, have boosted export volumes from Asia. This has resulted in high rates and no slow season since March. Additionally, significant capacity reductions in the seafreight sector, with 44 cancellations in east-west headhaul, have exacerbated the situation.

Dimerco predicts tight seafreight capacity to the US east and Gulf coasts, Canada, and backlogs to the US west coast, with rising prices across the board. Space to Europe will also be tight, with prices increasing. Seafreight bookings from Taiwan to Europe and North America need to be made a month in advance, and airfreight capacity to the US from Taiwan, Korea, India, Malaysia, and Thailand is expected to be tight, with rising prices except in a few regions. To Europe, backlogs in Singapore and tight airfreight capacity out of several Asian countries will push rates up. The rising interest in airfreight, spurred by tight ocean freight capacity and new tariffs set to be implemented in August, will further strain both air and ocean capacity. Source

 

Container Price Bubble Expected to Burst in 2H 2024, Says Container xChange:

05/06/2024

Container xChange’s June market report reveals a significant 45% increase in container prices in China in May, while prices in the US and Europe remained stable. Despite this surge, the report predicts a market correction in the second half of 2024, as the current price increase is driven by capacity shortages and unexpected demand rather than robust underlying demand. Factors like high-interest rates and labor market concerns are expected to curb consumer spending, potentially leading to a decline in shipping volumes.

Container xChange’s CEO, Christian Roeloffs, notes that the temporary demand surge is due to shippers advancing shipment dates, despite weak consumer demand and factory orders. He highlights that US consumer spending rose by just 2% in the first quarter of 2024, and retail inventories excluding autos increased by only 0.3% in April 2024, indicating cautious restocking by retailers. Roeloffs predicts that the current high container prices are unsustainable and expects stabilization or a decline as the initial rush to restock subsides and real demand remains flat. The report also indicates that most container logistics professionals surveyed in May expect further price increases in the coming weeks. 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.