Freight & Logistics Update 2 June 2023

Good morning, Clients & Partners,

Below please find our latest industry update & news.

As always, we will keep you posted on any impacts to your cargo on an individual shipment level. If you have any questions please don’t hesitate to get in touch.

SOUTH AFRICA

DURBAN

The port has reported windy weather this week (week 21). The situation is slowly deteriorating with increased delays.

Pier 1 : 2 days
Pier 2 : 2 days
Durban Point : 3 days

CAPE TOWN

Berthing delays at terminals in Cape Town is still being experienced but is significantly improved compared to previous weeks. The port experienced strong winds this week.

CTCT : 3 days
MPT : 2 days

PORT ELIZABETH

Port berthing delays have increased since week 20. The port has reported strong winds during the week.

PECT : 2-3 days
NCT : 1-2 days

AFRICA & INDIAN OCEAN ISLANDS

Port congestion in West African ports continues to be experienced, leading to increased delays and affecting overall transit times.

MAURITIUS

Reduced berthing delay of 1 day experienced at Port Louis.

ANGOLA

No berthing delays days experienced at Luanda port.

GHANA

Berthing delay of 1 day experienced at Tema port.

NIGERIA

No berthing delays experienced at Apapa port.

TANZANIA

Berthing delay of 1 day experienced at Dar es Salaam port.

KENYA

Berthing delays of 1 day experienced at Mombasa port.

MOZAMBIQUE

Berthing delay of 1 day experienced at Maputo port.

NAMIBIA

Reduced berthing delay of 1 day experienced at Walvis Bay port.

NORTH AMERICA

USA

Terminal Updates:

NY/NJ – Vessel waiting time is up to 1 day.
Norfolk – Vessel waiting time is up to 1 day. Two cranes down at Norfolk Int’l Terminal, however, no negative impact in the week.
Savannah – Vessel waiting time is up to 2 days.
Charleston – Vessel waiting time is down to 1 day.
Miami/Port Everglades – Vessel waiting time is up to 2 days.
Houston – Vessel waiting time is 1 day. Barbours Cut Container Terminal continues to experience berth congestion due to high yard utilization.
Los Angeles/ Long Beach – Vessel waiting time is up to 4 days.
Seattle – Vessel waiting time 1 day.
Oakland – Vessel waiting time 5 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.

CANADA

Vancouver: There is no berth congestion and ships are working immediately once alongside. Yard utilization at GCT has decreased and is presently at 76%. Rail productivity remains below expectations due to reduced car supply by both rail providers. Dwell times remain high at 5.2 days and it is expected that this will remain high as railcar supply remains inconsistent.

Montreal: Vessels are arriving on proforma schedule. Once alongside, productivity is stable and vessel changes are not expected. There are no issues with labour availability, and there is good productivity in the terminal yard.

LATIN AMERICA

BRAZIL

No berthing delays experienced at Santos port.

NORTH WEST CONTINENT, UNITED KINGDOM, MEDITERRANEAN

BELGIUM

Berthing delay of 1 day experienced at Antwerp port. AGW Terminal received 3 new gantry cranes currently undergoing testing, will be available for full operations during the summer.

GERMANY

Berthing delay of 1 day experienced at both Hamburg and Bremerhaven ports.

UNITED KINGDOM

No berthing delay experienced at London Gateway port. First phase of dredging works successfully completed without impact to operations. Busy line-up this week but all vessels with a berth window.

SPAIN

Berthing delays of 2 days experienced at Barcelona port.

ITALY

Reduced berthing delays of 3 days experienced at Genova port, while a berthing delay of 1 day is experienced at La Spezia port. Genova, GPT terminal has possible gate in restrictions for DG exports, due to elevate number of IMO cargo congesting the terminal.

NETHERLANDS

Berthing delay of 1 day experienced at Rotterdam port. Port of Rotterdam with the second busy week which led to smaller delays due to Pilot and Tugboat capacity shortages.

FRANCE

Berthing delay of 1 day experienced at Le Havre and Fos-sur-Mer ports. Terminals are continuing with the positive trend with another week of no strike. Yards are reducing and vessel congestion is nullified. In line with the reduced yard the productivity is noticeably increasing.

TURKEY

Berthing delays of 3 days experienced at Istanbul port.

INDIAN SUB-CONTINENT and MIDDLE EAST

INDIA

Berthing delay of 1 day experienced at Nhava Sheva and Chennai ports. Only one berth available at Nhava Sheva GTI due to terminal upgrade.

UNITED ARAB EMIRATES

Berthing delay of 1 day experienced at Jebel Ali port.

SRI LANKA

Berthing delay of 1 day experienced at Colombo port.

ASIA PACIFIC (Including Oceania)

HONG KONG

No berthing delays being experienced.

TAIWAN

Berthing delay of 1 day experienced at Kaohsiung port.

SHANGHAI / NINGBO

Berthing delay of 2 days experienced at Shanghai and Ningbo ports.

QINGDAO

Berthing delay of 1 day experienced.

XIAMEN

Berthing delay of 2 days experienced.

XINGANG

Reduced berthing delay of 6 days experienced.

KOREA

Berthing delay of 1 day experienced at Busan port. Vessel bunching occurred outside the port.

VIETNAM

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

SINGAPORE

Berthing delay of 1 day experienced.

NEWS UPDATES

Guangzhou port to invest $284m in Nansha

10th May 2023

“Guangzhou Port announced last week that it will invest nearly $284m to develop a shipping and port complex in its sub-port, Nansha, to offer container leasing, stevedoring, forwarding and other port services.

The fifth-busiest container port globally is optimistic about future growth, after throughput in the first four months of 2023 grew 3% year-on-year to 7.3m teu.

The multi-storey complex will have an area of 250,000 square metres and comprise office and residential units for shipping and logistics companies operating in the Nansha area. Construction is expected to take three years.

Guangzhou Port has been a manufacturing hub, with automobile parts, electronics and petrochemicals being the chief products. In January, state media reported that Guangzhou was planning to invest around $76bn in the transport, new energy vehicles and biomedicine sectors, in an effort to kickstart the economy after a series of Covid-19-related lockdowns. In 2022, Guangzhou port handled 24.6m teu, up by just under 2% from 2021.

The development of the shipping complex also aims to tie in with the Greater Bay Area, a Chinese government scheme to connect Guangzhou, Shenzhen, Hong Kong and Macau with seven other cities in Guangdong province into a single economic hub. [1]

Container Production Slumps to Lowest Level in 14 Years

26th May 2023

“Global container production is set to reach its lowest level in 14 years due to stagnating trade and a surplus of shipping containers caused by eased pandemic-related supply chain constraints, according to maritime research and consulting firm Drewry.

In the first quarter of 2023, container output contracted by 71% compared to the previous year, with only 306,000 TEUs produced, marking the lowest level since 2010. Drewry estimates that full-year production will not exceed 1.8 million TEUs, the lowest since the recession-hit year of 2009.

The situation has been exacerbated by factory closures or reduced working hours in China, the world’s leading container producer, although full-scale production is expected to resume in June.Additionally, commercial production at two new plants in Vietnam is not expected to commence until the third quarter of 2023, with reduced output compared to initial expectations.

On the upside, Drewry’s latest assessments suggest that container output will more than double next year, ultimately leading to modest growth in the global shipping container fleet. The fleet is projected to expand at an average annual rate of 2.9% until 2027, according to Drewry’s Container Equipment Forecaster.” [2]

International Chamber of Shipping Urges Governments to Set Course for Net Zero Future

25th May 2023

“The International Chamber of Shipping (ICS), representing the global shipping industry, is urging governments at the UN’s International Maritime Organization (IMO) to take decisive action towards achieving a net zero carbon emissions future.

Shipowners are urging member states to demonstrate increased ambition by setting a clear direction to achieve net zero carbon emissions by 2050. However, the ICS emphasizes that having a goal is only one part of the journey; the necessary tools to reach that destination are equally essential.

Shipping remains the most carbon-efficient mode of transporting goods, accounting for about 90% of world trade. However, addressing the industry’s 3% contribution to global carbon emissions is crucial. ICS and its members are optimistic that governments will set a net zero target, providing a signal to energy producers and marine fuel suppliers about the direction of travel. [3]

Peak season hopes dashed as freight rates slip again

26th May 2023

“The prospect of a traditional peak season is slipping away with each week that passes and ocean carriers are as yet unable to see any significant uptick in export orders from China. Maersk said this week that demand remained “stable” but said it had “not seen any drastic surge”.

Without the visibility of a forthcoming peak season boost, east – west container spot rates came under pressure again this week with, for instance, a Shenzhen, China-based forwarder offering rates of $1,000 per 40 ft from Ningbo or Qingdao to Rotterdam, valid until 10 June.

Elsewhere, the Asia – Mediterranean tradelane is looking more positive for carriers with Maersk reporting that “demand is healthy”. “We expect a full network while we are proactively working on additional capacity to cater for customer demand,” said Maersk. [4]

Vandals disrupt Rail Service to Africa’s Busiest Container Port

23rd May 2023

“The rail line linking South Africa’s richest province to the continent’s biggest container port ran at 25% of its capacity over the past week because of theft, vandalism and rail damage.

The 688-kilometer line from the Port of Durban to Gauteng province only operated for 36 hours over six days, as said in a report released by Transnet.

“For the past week, there have been a total of 39 security-related incidents targeting critical areas on the mainline resulting in the closure of the line,” Transnet said in the letter, adding that heavy rain caused two further closures.

Criminals, often working in armed gangs, are targeting South Africa’s state-owned infrastructure, ranging from freight-rail lines to electricity-generating plants. That’s contributed to protracted power cuts and curbed shipments of crucial exports such as coal.

The container-rail line between Durban and Gauteng — a province that includes the biggest city of Johannesburg and the capital, Pretoria — is a key route for the country’s imports. It also transports cars from automotive plants and other manufactured goods to the port.

Transnet has repaired some of the vandalized equipment and replaced some stolen gear. Eighteen people have been arrested and 15 separate recoveries of stolen equipment have been made, the company said. As a result of the disruption, 58 trains are either stuck on the line or in staging yards, Transnet said.” [5]

US container imports plunge as economy and labour take their toll

22nd May 2023

“According to the latest McCown Report US west coast ports saw a 22% decline in container imports in April, compared to the record volumes of the previous year, to 812,611 teu, as economic woes and the protracted labour negotiations continued to take a toll on throughput at the Pacific ports.

In fact Gene Seroka, executive director at the Port of Los Angeles said last week that terminals at the port were running at just 70% of their regular capacity, which he blamed on the economy for 15% of the slack, while 15% he estimated was due to concerns over industrial action shifting the routing of orders to east and Gulf Coast ports. [6]

DP World invests $35m in Port of Santos

22nd May 2023

“DP World has announced a $35-million investment to expand and update its facilities at the Port of Santos, Brazil. Maritime Executive reports that the expansion is expected to increase the port’s annual movement capacity from 1.2m TEUs to 1.4m, while the quay size will be expanded from 1 100 metres to 1 300.

According to DP World, the expansion project at Brazil’s busiest port has been planned to ensure its capacity keeps ahead of growing demand. The port operator, which already occupies 845 000 square metres and has an additional 130 000sqm available for development, has described the project as a huge expansion opportunity. It is the company’s third round of investment since it started port operations in the country in July 2013. It has since ploughed more than $577m into upgrading operations at the port. [7]

Further draft restrictions for drought-hit Panama Canal

22nd May 2023

“Draft restrictions are being put in place this week along the Panama Canal as drought once again plagues one of the world’s most important maritime arteries. With rainfall dropping by 50% compared to recent averages from February to April. Meteorologists warned water depths in Lake Gatun, which is in the centre of the canal, could hit historic lows by July.

Starting May 24, neo-panamax vessels will be allowed drafts of up to 13.56 m, down from an already restricted 13.72 m. Next week this will drop to 13.41 m, meaning some boxships will need to travel across the waterway with 40% less cargoes.

A number of global liners have reacted to the restrictions by announcing surcharges, while shippers are looking at the all-water route from Asia to the US east coast via the Suez Canal as an alternative in the coming few months.

Shipping has had to contend with similar droughts ever since the canal was expanded seven years ago with images of tree stumps pushing up from Lake Gatun becoming commonplace. What makes this year’s dry spell more concerning is that meteorologists are forecasting the imminent onset of El Niño, a weather pattern that typically brings drier-than-normal conditions across much of Central America.”[8]

SOURCE INFO & REFERENCES

[1] https://theloadstar.com/guangzhou-port-to-invest-284m-in-nansha/

[2] https://gcaptain.com/container-production-slumps-to-lowest-level-in-14-years-says-drewry/

[3] https://gcaptain.com/international-chamber-of-shipping-urges-governments-to-set-course-for-net-zerofuture/

[4] https://theloadstar.com/peak-season-hopes-dashed-as-freight-rates-slip-again/

[5] https://gcaptain.com/vandals-disrupt-rail-service-to-africas-busiest-container-port/

[6] https://theloadstar.com/us-container-imports-plunge-as-economy-and-labour-take-their-toll/

[7] https://www.freightnews.co.za/article/dp-world-invests-35m-port-santos

[8] https://splash247.com/further-draft-restrictions-for-drought-hit-panama-canal/

That concludes the updates for this week. As always, we are ready to jump for you. Please do get in touch with any questions you may have.

Best regards,

JJ & The Inter-Sped Team