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    

Carrier scheduling remains erratic with blank sailings, port omissions, rollover and changes to voyages being announced at short notice. Kindly note that extreme weather conditions including strong winds, high waves and heavy rain was experienced across the Eastern Cape and Western Cape coastlines which has mainly affected Port Elizabeth and Cape Town ports.

DURBAN

The port has experienced windy weather during the week. Appointment slots are constrained due to high volume of containers moving through Durban terminals.

• Pier 1 : 11-13 days delay
• Pier 2 : 10-18 days delay
• Durban Point : 3 days delay

 

CAPE TOWN

The port has experienced severely strong winds during the week which has impacted on port operations. Delays are expected to increase due to the adverse weather conditions experienced.

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

 

PORT ELIZABETH

The port has experienced strong winds during the week.

• PECT : 1-2 days delay
• NCT : 0-3 days delay

 

AFRICA & INDIAN OCEAN ISLANDS    

ANGOLA

• Berthing delays of 4 days experienced at Luanda port.

 

GHANA

• Berthing delays of 6 days experienced at Tema port.

 

IVORY COAST

• Berthing delays of 6 days experienced at Abidjan port.

 

KENYA

• Berthing delays of 5 days experienced at Mombasa port.

 

MAURITIUS

• Berthing delays of 6 days experienced at Port Louis.

 

MOZAMBIQUE

• Berthing delays of 2 days experienced at Maputo port.

 

NAMIBIA

• Berthing delays of 2 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 high levels of congestion which continues to be experienced.

 

NORTH AMERICA    

CANADA

Montreal

• Berthing delays of 2 days experienced at this port.

Toronto

• Berthing delays of 10 days experienced at this port.

Vancouver

• Berthing delays of 5 days experienced at this port.

 

USA

Terminals Updates:

• New York/New Jersey – Vessel waiting time is up to 2 days. Truck line port congestion continues due to holiday. Seeing some summer labor shortages so number of gangs available for certain shifts may be reduced. APMT will not have a gate open on Saturday.
• Norfolk – Vessel waiting time is up to 3 days.
• Charleston – Vessel waiting time is up to 4 days. Dock construction paused this week, all 3 berths open and anchorage is clear. Once construction re-starts, expect some ships to work on arrival and others with only moderate delays up to 3 days, which is expected until November.
• Savannah – Vessel waiting time is up to 5 days.
• Miami/Port Everglades – Vessel waiting time is up to 3 days.
• Houston – Vessel waiting time is up to 6 days. Barbours Cut terminal and Bayport Container Terminal are on post hurricane Beryl recovery, Terminals are not 100% operational, no power supply, working on generators. Two ships are waiting at anchorage.
• Los Angeles/Long Beach – Vessel waiting time is up to 2 days.
• Seattle – Vessel waiting time is up to 4 days. Washington United Terminal is limiting their operations to a maximum of 3 gangs on vessels and 1 berth operation until further notice due to lack of rail cars to evacuate Imports. They are also delaying startup operations on vessels for the same reason.
• Oakland – Vessel waiting time is up to 2 days.

 

LATIN AMERICA    

BRAZIL

• Berthing delays of 4 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 2 days experienced at Le Havre port. National holiday on 14/07 without impact to terminals, regular operations will be continued.

 

GERMANY

• Berthing delays of 6 days experienced at Hamburg port and 3 days at Bremerhaven port. Labor strike in Hamburg (09.07 07:00 – 11.07 07:00) and Bremerhaven (09.07 14:00 – 10.07 14:00). Delay in yard operations expected.

 

ITALY

• Berthing delays of 3 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 5 days experienced at Barcelona port.

 

SWEDEN

• Berthing delays of 4 days experienced at Gothenburg port.

 

TURKEY

• Berthing delay of 1 day experienced at Istanbul port.

 

UNITED KINGDOM

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

 

INDIAN SUB-CONTINENT & MIDDLE EAST    

Capacity constraints are being experienced on services out of the Indian Sub-Continent.

INDIA

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

 

UNITED ARAB EMIRATES

• Berthing delays of 3 days experienced at Jebel Ali port.

 

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.

HONG KONG

• Berthing delay of 1 day experienced at this port.

 

KOREA

• Berthing delays of 6 days experienced at Busan port.

 

MALAYSIA

• Berthing delays of 4 days experienced at Port Kelang. Port is experiencing congestion due to vessels bunching.

 

NANSHA

• No berthing delays experienced at this port.

 

QINGDAO

• Berthing delays of 2 days experienced at this port.

 

SHANGHAI

• Berthing delays of 3 days experienced at this port.

 

NINGBO

• Berthing delays of 2 days experienced at this port.

 

SHEKOU / YANTIAN

• Berthing delays of 2 days experienced at Shekou and Yantian ports.

 

XIAMEN

• No berthing delays experienced at this port.

 

XINGANG

• Berthing delays of 4 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 3 days experienced at Hai Phong port and 1 day at Ho Chi Minh port.

 

INDUSTRY NEWS  

South African storms delay cape diverted container ships:

11/07/2024

Severe weather in the western and eastern cape regions is causing significant disruptions to shipping, with high waves and fierce winds from four cold fronts since Monday. The Cape of Good Hope has seen no vessel traffic since July 8, exacerbating congestion in Europe and Asia due to Red Sea diversions. Fabrice Maille of LSEG noted a complete stop for containerships at the Cape and several ships turning around or waiting off Durban’s coast. Analyst Darron Wadey explained that South African ports, especially Cape Town and Durban, are known for seasonal high winds that can suspend port operations.

To mitigate the weather’s impact, carriers have three options: take refuge, avoid the storms, or ride them out. Avoidance might involve slowing down or changing routes, while refuge can be sought in developed ports or natural harbors with limited capacities. Riding out the storms is possible with structurally sound ships but can be unpleasant and disrupt schedules. Any chosen approach will delay an already stressed supply chain realigned to avoid the Red Sea. While this disruption might temporarily relieve congestion in ports like Gibraltar and North Europe, it could lead to a surge of delayed ships later, causing more congestion. Wadey described the situation as a “perfect storm” for disrupting supply chains. Source

 

Vessels wait 189 hours at anchorage at Port of Durban:

12/07/2024

The Port of Durban’s container terminal (DCT) is facing reduced efficiency due to a shortage of straddle carriers. On July 11, only 50 straddle carriers were in service at DCT Pier 2, down from 55 out of the required 67 just over a week prior. This shortfall, highlighted by Absa’s Purchasing Managers’ Index (PMI), has slowed cargo movement at the port. Additionally, only seven out of 16 ship-to-shore (STS) cranes were operational, though recent updates show some improvement with two cranes working at South Quay, three at East Quay, and five at North Quay. Container vessels are experiencing significant delays, waiting seven days or more at anchorage due to weather and other issues. Source

 

Transnet gradually resumes port operations:

12/07/2024

Transnet National Ports Authority (TNPA) is gradually resuming operations after suspending shipping movements due to severe storms on the Western Cape coast. By Wednesday, operations had resumed at the Port Elizabeth Bulk Terminal, Saldanha, and Cape Town Multipurpose Terminal. However, the Cape Town Container Terminal is still affected by high swells and winds, preventing two vessels from docking. TNPA is monitoring smaller ships that may be docked during this period. No adverse incidents have been reported, and the safety of employees and port infrastructure remains a priority. While Eastern Cape terminals are operating intermittently for safety, Western Cape terminals are expected to resume operations by Friday afternoon, and KwaZulu-Natal terminals are operating normally. The storm caused heavy winds, flooding, and road closures across the Western Cape. Source

 

Cargo chaos looms as strikes threaten Canada’s ports and rail networks:

08/072024

Canada faces potential disruptions at its ports and rail networks due to strike actions by the International Longshore and Warehouse Union (ILWU) against the British Columbia Maritime Employers Association (BCMEA) and by the Teamsters Canada Rail Conference (TCRC) against rail operators CN and CPKC. The ILWU issued a 72-hour strike notice against DP World Canada, but the Canada Industrial Relations Board (CIRB) ruled it unlawful, citing a lack of good faith bargaining. The union has been negotiating industry-wide with the BCMEA for over a year, primarily concerning wage increases and opposition to automation plans at DP World’s intermodal yard in Centerm. The CIRB is set to continue hearings on this dispute on August 6.

Meanwhile, the CIRB also denied the Maritime Employers Association’s (MEA) request to intervene in the rail strike dispute, despite the MEA’s argument that a strike would severely impact public safety and health due to congestion at the Port of Montreal. The MEA’s intervention was deemed unnecessary by the CIRB, which found no distinct interest from other groups. A final decision on whether Canadian rail service is essential is still pending; if deemed non-essential, a strike could begin with 72 hours’ notice. Businesses are advised to monitor negotiations closely, communicate with customers and partners, and prepare contingency plans, such as stockpiling essential inventory and seeking alternative trade routes. Source

 

Cargo owners and truckers slam carriers’ call to delay new D&D rules:

11/07/2024

Organizations representing cargo owners and drayage providers are opposing ocean carriers’ efforts to delay new US rules on billing demurrage and detention (D&D) charges. The Ocean Carrier Equipment Management Association (OCEMA), representing 10 major international carriers, has requested the US Federal Maritime Commission (FMC) to postpone the rules, effective since May 28, by 90 days. These rules stipulate that only the party contracting for ocean transport or storage, or the consignee, can be billed for D&D charges, and prohibit billing truckers or invoicing multiple parties simultaneously. OCEMA argues that a correction by the FMC in early May did not give vessel operators sufficient time to adjust their processes, but shippers and truckers, including the Harbor Trucking Association (HTA) and the Agriculture Transportation Coalition, insist the rule was clear and halting it would cause chaos in the supply chain.

Despite a decline in D&D charges from their 2022 peak, US ports like New York, Oakland, and the Los Angeles/Long Beach complex still lead in high charges. Cargo owners and truckers continue to be concerned about the costs, with complaints from companies like Samsung about excessive charges from carriers. The American Trucking Associations (ATA) emphasize that these charges can accumulate quickly, often reaching significant amounts. Truckers are now relieved of the burden of D&D charges but remain vigilant. HTA CEO Matt Schrap urged drayage operators to monitor bills closely to ensure accuracy and manage expectations, a sentiment echoed by the ATA’s Intermodal Motor Carriers Conference. The ongoing tension between shippers and ocean carriers shows that delaying the new rules would likely exacerbate distrust during the peak season. Source

 

Singapore Container Ship Logjam Spills Over to Malaysian Port:

09/07/2024

Container ship congestion in Singapore is spilling over to Malaysia’s Port Klang, causing delays in the supply chain for consumer goods. Around 20 container vessels are anchored off Port Klang, which is located on the Straits of Malacca, a key route connecting Europe, the Middle East, and East Asia. This congestion is due to ships avoiding the Suez Canal and Red Sea because of Houthi rebel attacks, forcing them to travel around Africa and bypass Middle Eastern ports. The backlog at Port Klang is significant, with many ships unloading at its berths. Singapore and nearby Tanjong Pelepas are also full, but with fewer waiting ships. Analysts expect the congestion to continue through August, driving up container vessel rates. Source

 

Container rates expected to ease in second half of 2024:

11/07/2024

Container rates are expected to decrease in the second half of 2024 if current conditions remain stable, according to Container xChange’s latest market update. This potential decline in rates could lead to increased activity from container buyers who are currently waiting for prices to drop before resuming trading and leasing. The outlook for the latter half of the year depends on a revival in consumer demand, with factors like geopolitical disruptions and potential labor unrest playing a role. Christian Roeloffs, co-founder and CEO of Container xChange, noted that shippers are moving shipment dates forward, creating temporary demand for shipping capacity despite weak consumer demand and factory orders.

Key economic indicators from the US show mixed signals: consumer spending rose by only 2% in Q1 2024, retail inventories excluding autos increased by 0.3% in April following a decline in March, and new orders for manufactured goods rose by 0.7%. The current spike in container prices seems unsustainable due to weak underlying demand. High interest rates and concerns over labor markets may lead consumers to reduce spending, potentially decreasing demand for goods and shipping volumes. Stakeholders in the container shipping market should closely monitor these economic indicators, as the expected stabilization or decline in container prices will affect shipping strategies, inventory management, and overall logistics planning. Adapting to these market changes will be crucial for maintaining efficiency and competitiveness in the global ocean-freight industry. Source

 

New container volume high provokes major concerns over peak season:

11/07/2024

Global demand for ocean freight container shipping has reached an all-time high, surpassing peak-COVID levels. Recent data from Xeneta and Container Trade Statistics showed that 15.94 million TEUs were transported in May, exceeding the previous record of 15.72 million TEUs set in May 2021. Xeneta’s senior shipping analyst, Emily Stausbøll, noted that more containerized goods are being shipped now than ever before, despite available capacity being impacted by diversions around Africa due to conflict in the Red Sea and severe port congestion in Asia and Europe. The record-breaking demand is primarily driven by volumes out of the Far East, with China’s exports hitting a high of 6.2 million TEUs in May, making up 39% of global container trade.

This surge in demand raises questions about the traditional peak season in Q3. Stausbøll mentioned that shippers are concerned about whether the current record volumes will reduce volumes during the peak season. Factors influencing this include underlying consumer demand, shippers front-loading imports, and potential tariffs on imports from China. While this combination may keep demand high in the coming months, the sustainability of these record levels is uncertain. Meanwhile, carriers are responding to the demand, with idle tonnage at pandemic-level lows and vessel sale and purchase deals surging in the first half of the year. According to Alphaliner, over half a million TEUs of container tonnage across 141 vessels changed hands during this period, indicating a strong reaction to the red-hot charter and freight markets. Source

 

The age of alliance domination of east-west box trades may be over:

11/07/2024

Independent container shipping services on major east-west deep-sea trades have been increasing, reaching pandemic-era levels, according to Sea-Intelligence Consulting. Over the next three months, nearly a third of transpacific trade services will be offered outside of vessel-sharing agreements, including express services by alliance-member carriers. The Asia-North America West Coast tradelane is expected to see nearly 30% of its capacity from non-alliance services. Similarly, the Asia-North Europe tradelane could see record levels of non-alliance capacity at around 12%.

This shift includes new services like MSC’s Asia-North Europe Britannia service and Ellerman City Lines’ China-UK sailings. The increase in independent services has been driven by rising spot rates during the pandemic, prompting more non-alliance capacity. Many niche carriers exited when spot rates fell in late 2022 and early 2023, but the recent rise in spot rates has led to a resurgence of non-alliance services. The market dynamics will shift more fundamentally next year when MSC, controlling about 20% of global container shipping capacity, exits the Maersk-2M partnership to operate independently, marking the end of the era dominated by three major vessel-sharing agreements. Source

 

German port workers strike over wages:

10/07/2024

German dock workers have gone on strike in ports across the country amid ongoing wage negotiations between the United Services Union (ver.di) and port operators. Ver.di has called for full-shift warning strikes in the Ports of Bremen and Wilhelmshaven and warning strikes in Hamburg and Bremerhaven. The Port of Emden workers are striking for one day. The union aims to pressure employers before the next wage negotiation round with the Central Association of German Seaport Operators. Ver.di demands a three-euro hourly wage increase and corresponding shift allowance increases, emphasizing the need for financial relief for lower wage groups hit hard by inflation. Source

 

ACP to start work on new reservoir, as more rain eases Panama Canal draught:

10/072024

Water levels at the Panama Canal have rebounded quicker than expected, prompting the Panama Canal Authority (ACP) to raise the permissible draught for vessels starting tomorrow. Following above-average rainfall in recent months, the ACP revised the draught limit to 14.33 meters on June 26, now allowing ships with a draught of up to 14.63 meters to transit the canal. Despite this improvement, water levels in Gatun Lake, the canal’s main reservoir, stand at 25.5 meters, just above the five-year July average but still below the usual draught limit of 15.24 meters. To address ongoing climate challenges, the ACP plans to construct a new reservoir near Río Indio, west of the canal, costing $1.6 billion. This reservoir, connected by an 8.4 km concrete tunnel, aims to store 1.5 billion cubic meters of water and will involve relocating approximately 2,000 people over a four-year period.

Canal administrator Ricaurte Vásquez Morales emphasized the urgency of the reservoir project due to climate change impacts, reduced rainfall, and population growth in the region. He highlighted the ACP’s responsibility to protect basin resources and improve local quality of life. Increased rainfall offers relief to shipping following disruptions caused by the El Niño phenomenon, worsened by climate change, which periodically triggers droughts in South and Central America. Despite findings suggesting El Niño’s role in last year’s Amazon droughts was overstated compared to broader climate change impacts, projections indicate the Amazon’s full recovery may not occur until 2026, affecting critical river trade routes. 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,

JJ & The Inter-Sped Team