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Freight & Logistics Update 23 August

Freight & Logistics Update 23 August

Good Afternoon Clients and Partners,

 

Below is the latest Freight & Logistics for this week. If you have any questions or queries please don’t hesitate to get in touch!

 

SOUTH AFRICA    

 

Port berthing delays at the port remain high due to ongoing congestion being experienced. The port has reported windy weather during the week.

 

DURBAN

  • Pier 1 : 4 days
  • Pier 2 : 5 days
  • Durban Point : 4 days

 

CAPE TOWN

Port berthing delays have increased from the previous week due to weather conditions. The port has reported strong winds during the week.

  • CTCT : 8 days
  • MPT : 3 day

 

PORT ELIZABETH

Port berthing delays is still being experienced and has reduced from week 32. The port has reported strong winds during the week.

  • PECT : 2 days
  • NCT : 3 days

 

AFRICA & INDIAN OCEAN ISLANDS    

 

Port congestion in West African ports continues to be experienced leading to increased delays and affecting overall transit times. East African ports are also experiencing congestion however no severe impact experienced.

 

MAURITIUS

  • Berthing delays of 4 days experienced at Port Louis.

 

ANGOLA

  • Berthing delays of 6 days experienced at Luanda port.

 

GHANA

  • Berthing delays of 3 days experienced at Tema port.

 

NIGERIA

  • Berthing delay of 1 day experienced at Apapa port.

 

TANZANIA

  • Berthing delays of 5 days experienced at Dar es Salaam port. TICTS: delay due to dredging works, slow production and yard congestion.

 

KENYA

  • Berthing delay of 1 day experienced at Mombasa port. Berth 16 crane upgrade + Berth 17 closed from 6-Aug – 20-Aug.

 

MOZAMBIQUE

  • Pre-Inspection Certificates are mandatory for specified products being imported into Mozambique. Berthing delay of 1 day experienced at Maputo port.

 

NAMIBIA

  • Increased berthing delays of 9 days experienced at Walvis Bay port.

 

NORTH AMERICA    

 

USA

 

Terminals Updates:

  • New York/New Jersey – Vessel waiting time is up to 1 day.
  • Norfolk – Vessel waiting time is up to 1 day.
  • 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 up to 2 days. 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 4 days.
  • Seattle – Vessel waiting time is up to 3 days. T18 will be closed on August 18 and 25, 2023. Washington United Terminals will be closed on August 18 and 25, 2023. Husky will be closed on August 17,18, 24 and 25, 2023.
  • Oakland – Vessel waiting time is at 3 days. Berth 25 at TRAPAC: All 3 cranes are not working, and it is currently not known when they will be operational.

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

  • All marine terminals in Vancouver are operational. Berth congestion continues as the terminals recover from previous strike action. Berthing delays of 4 days experienced at this port.

 

Montreal

  • Vessels are arriving on proforma schedule. There are no issues with labour availability, and there is good productivity in the yard. Berthing delays of 2 days experienced at this port.

 

LATIN AMERICA    

 

BRAZIL

  • Berthing delays of 2 days experienced at Santos port.

 

NORTH WEST CONTINENT, UNITED KINGDOM, MEDITERRANEAN    

 

BELGIUM

  • Berthing delay of 1 day experienced at Antwerp port. Civil works at PSA 869 resulting in ~400 meters reduction of berth started and is allowing one large vessel alongside at times but focus of cranes on one vessel is boosting productivity. 913 with ongoing bollard works, completion planned for October.

 

GERMANY

  • Berthing delay of 1 day experienced at Hamburg and Bremerhaven port.
  • Container Terminal Burchardkai (CTB) CTB started extensive berth renovations on berth 1+2. Construction will last for 10 weeks. Berth 1+2 will be closed for operations during the construction but can be utilized as a layby pier. No operational impact from the berth works this week.

 

UNITED KINGDOM

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

 

SPAIN

  • Berthing delay of 1 day experienced at Barcelona port.

 

ITALY

  • Berthing delay of 1 day experienced at Genova and La Spezia ports.

 

NETHERLANDS

  • Berthing delay of 1 day experienced at Rotterdam port.
  • Europe Container Terminals (ECT) Labour sufficient to handle current volumes. ECT will deploy 75 holiday workers over the summer to support labour, first batch started and further training in progress.

 

FRANCE

  • Berthing delay of 1 day experienced at Le Havre and Fos-sur-Mer ports.
  • CNMP/GMP/TNMSC: National Holiday on Tuesday 15/08 will see gates closed in Le Havre however, waterside operations will continue regularly. No further strike actions. Terminals were affected by strong winds over the last weekend but no further problems time being.

 

TURKEY

  • Berthing delays of 2 days experienced at Istanbul port.

 

INDIAN SUB-CONTINENT and MIDDLE EAST    

 

INDIA

  • Berthing delay of 1 day experienced at Mundra, Nhava Sheva and Chennai ports.

 

UNITED ARAB EMIRATES

  • No berthing delays experienced at Jebel Ali port. Dangerous can still be handled but are subject to acceptance.

 

SRI LANKA

  • Berthing delay of 1 day experienced at Colombo port.

 

ASIA PACIFIC (Including Oceania)    

 

Hazardous commodity acceptance out of China remains a challenge as approval for loading remains subject to carriers’ stringent acceptance protocols. Typhoon Khanun has affected terminal operations in Kaohsiung, Pusan, and Ningbo.

 

HONG KONG

  • No berthing delays experienced at this port.

 

TAIWAN

  • Berthing delay of 1 day experienced at Kaohsiung port.

 

HUANGPU

  • Increased berthing delays of 7 days experienced at this port.

 

SHANGHAI / NINGBO

  • Berthing delay of 1 day experienced at Shanghai port and 2 days at Ningbo port. Due to Typhoon KHANUN impact, delays experienced at Ningbo port.

 

QINGDAO

  • No berthing delays experienced at this port.

 

XIAMEN

  • Berthing delay of 1 day experienced at this port.

 

SHEKOU / YANTIAN

  • Berthing delays of 2 days experienced at these ports.

 

XINGANG

  • No berthing delays experienced at this port.

 

KOREA

  • Berthing delays of 3 days experienced at Busan port.

 

VIETNAM

  • Berthing delay of 1 day experienced at Hai Phong and Ho Chi Minh ports.
  • HITC dredging operation taking place until the end of August. One berth is available for cargo operations.

 

MALAYSIA

  • Berthing delay of 1 day experienced at Port Kelang.

 

THAILAND

  • Berthing delay of 1 day experienced at Bangkok port.

 

SINGAPORE

  • Berthing delay of 1 day being experienced.
  • No delays experienced for transshipment cargo, only vessel scheduling delays experienced. Carriers which are using Singapore as a transhipment hub for full containers are experiencing delays of 2-3 weeks before connecting to the mother vessel to South Africa.

 

NEWS ARTICLES    

 

Evergreen acquires 20% share in Rotterdam’s Euromax box terminal

Date: 16th August 2023

 

Evergreen is leaning into what appears an aggressive growth strategy – a stark contrast to its domestic compatriots – and acquired a 20% stake in Rotterdam’s Euromax terminal.

 

Of Taiwan’s three carriers, Wan Hai and Yang Ming have both joined Israel’s Zim in the loss-making club, but, although 95% short of its 2022 results, the country’s largest box operator, Evergreen, has kept itself in the black, reporting net profits of TWD5.1bn ($160m).

 

This acquisition points towards an aggressive growth strategy in marked contrast to the conservatism being seen from the likes of Yang Ming. “I think we’re back to where we were before the pandemic – mid-size carriers looking over their shoulders, facing up to the possibility of being gobbled-up by larger rivals”, a source told The Loadstar.

 

According to the latest Alphaliner data, the Taiwanese Stock Exchange was told

Singapore-registered Evergreen Marine Corp (EMC) had bought the shares in Europe’s largest container port for €72.5m ($109m), valuing the terminal at €362.5m. The reported suggested the carrier acquired its stake from Hutchison, although this could not be

confirmed, but the source said wherever it came from, it was a “massive” development, adding: “Like Hapag-Lloyd, Evergreen has decided to invest some of its windfall earnings in terminals, which is in contrast to Maersk and CMA CGM which are targeting investments in the logistics space. [1]

 

Germany and Italy splash out in bid to shift more cargo from road to rail

Date: 15th August 2023

 

European governments are on a rail spending spree – both Germany and Italy have announced significant investment and subsidies in a bid to move freight from road to rail.

 

Germany’s Ministry of Transport has approved additional cash to make up for what the rail union EVG described as “decades of neglect” of the rail network; some €27bn ($29.5bn) being funnelled into grid maintenance and digitisation.

 

But EVG says even more is needed. Union chair Martin Burkert said: “To make up for the entire investment backlog, at least another €18bn is still needed by 2027. In principle, there should be a new, permanent, reliable and adequate financing of rail infrastructure as a political consensus of all parties.”

 

Helping to finance the spending will be CO2 surcharges, applied as a truck toll, as European governments look to incentivise a switch from road to rail in line with climate goals. Even  without electrification, figures provided by UK Rail Freight Group to The Loadstar show rail emits just 24% of the carbon emitted by road haulage for the same volumes, and without the additional environmental impacts of brake and tyre residues.

 

Italy is also pushing towards modal shift, with its Ministry of Economics and Finance having approved the final draft of an amendment aimed at making more cash available, reversing the most recent funding round’s reduction in available monies, and reinstating the FerroBonus initiative, which, since 2015, supplied investment in modal shift before being scrapped last August.

 

According to reports, deputy transport minister Edoardo Rixi will meet industry leaders in  September “to get a better grasp on what is required” to move Italian freight off roads, with a particular focus on the south of the country, where rail usage remains limited. [2]

 

Maputo port brings on third tug

Date: 18th August 2023

 

The Port of Maputo this week kicked off its 120th anniversary celebrations with the inauguration of its newest tug. With a 75-ton bollard pull, the newly commissioned tugboat, named Ntamo, joins the port’s fleet as the third vessel of its kind, adding muscle to the port’s operational capabilities and elevating its competitive edge.

 

Speaking in Maputo, Mozambican President Filipe Jacinto Nyusi said that with its rail-port design, the Port of Maputo remained an important economic asset, with some $800 million invested in the infrastructure.

 

The first jetty was constructed in 1890, followed by the inauguration of the Gorjão jetty in August 1903. It operated as the Port of Lourenço Marques for many years until the current concession 20 years ago. For the most part, the construction of the port was closely linked to the railways in the region, primarily driven by the discovery of mineral resources in South Africa, Zambia, and Zimbabwe.

 

“The objectives of rail-port operations have always taken into account three aspects: safe operations, efficiency and economic aspects, measured by the ratio of return on invested capital,” said Nyusi. “During the 1990s, particularly after the General Peace Agreement and the fall of the racist regime in South Africa, the need to rebuild the Mozambican rail-port system became obvious. It had to be modernised, competitive, efficient, market-oriented and financially viable. The government’s vision and strategic decision to involve the private sector in rehabilitating the main national ports was fundamental to revitalising their operations and leveraging their potential.”

 

He said that in the case of the Port of Maputo, 20 years on, the results of this partnership were now clear to see. “The investments, carried out continuously by the MPDC, guarantee not only safety and operational efficiency but also place the Port of Maputo among the most competitive in the region. The knowledge and capital brought in by the concession have enabled a leap in cargo handling capacity – from five million in 2003 to 27m tons in 2022. He said the financial viability of the port continued to be justified by the growing transit volumes from neighbouring countries. [3]

 

Hurricane Hilary Intensifies as Storm Charts Path to California

Date: 18th August 2023

 

Hurricane Hilary’s winds exploded in strength overnight to reach Category 4 intensity as the rare eastern Pacific storm churned north on a path toward California.

 

Warm water fueled Hilary’s strength, which burst from a tropical storm Thursday into a major hurricane with winds of 145 miles per hour (233 kilometers per hour) as of 6 a.m. local time, according to a US National Hurricane Center advisory. Hilary is forecast to come ashore in Mexico over the weekend before lashing California and the US Southwest with flooding rains through Monday.

 

Hurricane and tropical storm watches and warnings have been raised along much of Mexico’s Baja California coastline, as well as parts of its mainland shore. [4]

 

CMA CGM to enhance SIRIUS service with a direct call to Rio de Janeiro

Date: 17 th August 2023

 

CMA CGM is pleased to announce that SIRIUS service, connecting Mediterranean to East Coast South America will extend its coverage adding a new call in the Brazilian port of Rio de Janeiro on its southbound leg.

 

The first sailing Southbound from Europe will be the 7th, October 2023 ex Tanger Med with MV MAERSK LOTA voy. 0NSFXS1MA, ETA Rio de Janeiro on October 19th, 2023.

 

The new SIRIUS rotation will be the following: Algeciras – Tanger Med – Salvador – Rio de Janeiro – Santos – Itapoa – Paranagua – Santos – Itaguai – Tanger Med – Algeciras 2023 08 Map SIRIUS. [5]

 

South Korea exports seen swinging to growth from Oct, finance minister says

Date: 17th August 2023

 

South Korea’s exports are seen swinging back to growth starting from October in a slower recovery than the government had expected, the country’s finance minister said on 16 August, while uncertainty over China’s economy still remains a risk.

 

“The possibility is high for the trade balance to post surpluses from September in trend and exports to turn positive from October,” Finance Minister Choo Kyung-ho told reporters.

“However, the recovery will be rather gradual than strong in the beginning,” Choo added.

 

Last month, South Korea’s exports fell for the tenth straight month in annual terms and at the steepest pace in more than three years, raising concerns that the downturn may drag on longer than expected amid weak demand, most notably from China.

 

Choo said the heavily trade-reliant economy will still grow about twice as fast in the second  half of the year as it did in the first half, when the economy grew 0.9%, maintaining the government’s projection made in early July based on expected growth in semiconductor demand.

 

However, he flagged risks from slower growth in China due to its real estate crisis.

On the won KRW=, which is trading around three-month lows, Choo said authorities were closely monitoring the currency market and would consider stabilising measures if excessive herd-like behaviour was seen.

 

The government has also decided to extend domestic tax breaks on oil products again for two more months to the end of October amid rising energy prices, Choo said. The latest extension of these fuel tax breaks, however, is unlikely to have a major impact on exports from one of Asia’s top fuel exporters in the near term given robust margins available for selling on the international market, according to some analysts. [6]

 

Advancing Maritime Decarbonization: Latest Successful Biofuel Trial in Green Fuel Supply

Chain

Date: 15th August 2023

 

The Global Centre for Maritime Decarbonisation (GCMD) has announced its latest successful biofuel supply chain trial, part of a pilot to develop a quality, quantity and greenhouse gas abatement assurance framework for drop-in green fuels.

 

This latest trial involved a biofuel blend of hydrotreated vegetable oil (HVO) and marine gas oil (MGO) as pilot fuel for LPG propulsion in a mid-sized gas carrier equipped with an LPG dual-fuel engine, which can reduce emissions compared to conventional fuel oil. The gas carrier, named Kaupang, was provided by Eastern Pacific Shipping (EPS). Approximately 200 MT of the B30 biofuel blend was provided by GoodFuels and bunkered in the Port of Vlissingen (Flushing), Netherlands.

 

The trial involved a tracer in HVO to assure its origination and quantity in the biofuel blend. Veritas Petroleum Services (VPS) conducted extensive laboratory tests on aliquots of the biofuel and biofuel blend collected at numerous pre-determined points along the supply chain to assess quality.

GCMD said the HVO used in this trial has a well-to-wake emissions of 16 gCO2e/MJ, translating to an 83% reduction in emissions compared to using fossil MGO, and the trial demonstrated a 20% net reduction in emissions compared to the Kaupang sailing on  VLSFO.

 

“The experiences from this trial will strengthen the development of our framework to provide emissions abatement assurance when it comes to paying a premium for green fuels over fossil fuels,” said Dr Sanjay Kuttan, Chief Technology Officer of GCMD. Through this pilot, we demonstrated that different tracing techniques can help ensure authenticity and quantity of sustainable biofuels in the supply chain. And using a biofuel blend with LPG can be a feasible pathway for ships to meet the recently revised IMO indicative decarbonisation checkpoint for 2030.[7]

 

Like clockwork: Why vessel turnaround times are so important

Date: 17th August 2023

 

Container ports in the Middle East and East Asia dominated the most recent Container Port

Performance Index (CPPI) report, which highlighted the importance of both regions to the foundation of global trade and the manufacturing supply chain.

 

Produced in collaboration with the World Bank Group and S&P Global Market Intelligence, the third edition of the report published in May looks at the performance of 348 container ports around the world. It aims to identify gaps and opportunities for improvement for the benefit of key stakeholders in global trade, including governments, shipping lines, port and terminal operators, shippers, logistics companies and consumers.

 

Ports’ assessment is based on their efficiency in a number of key factors including terminal capacity, landside connectivity and ship-to-shore interchange. Most critical, however, is how long container ships are berthed and how quickly the port can turn them around to keep cargo moving. Time saved in turnaround means more hours at sea, which potentially also results in slower sailing speeds, lower carbon emissions and cost savings for ship operators.

 

Top 10

In the Middle East, the ports of Salalah in Oman, Khalifa in the United Arab Emirates, and Hamad in Qatar all made the top 10 of this year’s index. They were joined by the East Asian ports of Yangshan, Ningbo and Guangzhou in China, and Tanjung Pelapas in Malaysia. Tanger-Mediterranean in Morocco, Cartagena in Colombia, and Port Said in Egypt.

 

Based on the Index, ports in the Middle East and East Asia responded best to the heavy volume growth and service volatility arising from the pandemic – a testament to the resilience and adaptability of the regions’ container ports amid unprecedented port congestion and supply chain disruptions.

 

“Despite the pandemic, 2022 was an exceptionally busy year for China’s maritime industry which handled a total container volume of 295.9 million TEU, a 4.7% year-on-year increase from 2021,” says Frank Xia, GAC China’s Shipping Director. “This was made possible by China’s heavy investment in automation and rail connectivity to keep port operations seamless and efficient.”

 

Similar efforts to boost efficiency in ports in the Middle East through investments in container port infrastructure and technology are also proving effective. In Oman, the Port of Salalah has invested around US$800 million in infrastructure, including bringing 16 new eco-efficient, rubber-tyred gantry cranes and three new mobile harbour cranes into operation last year.

 

With China, South Korea and India driving manufacturing prowess and the Middle East becoming a strategic hub connecting Europe, Asia and Africa, ports in the regions are pushing for increased efficiencies.

 

Digitalisation is one tool in the drive to boost operational efficiencies, and in tandem the role of a ship agent has become even more crucial as ship owners, operators and charterers seek out local knowledge to spur on-the-spot, informed decision-making.

 

“An important part of a ship agent’s role is to offer frontline experience to aid owners and operators that can’t be at every vessel call. Technological advances, such as automation and artificial intelligence, enable agents to collect and analyse more data than ever before, improving their position as the main information hub for local regulations and requirements, such as crew requirements, customs checks and documentation,” says Fredrik. He adds “Ship agents’ local presence on the ground will still be vital even in a digital world”. [8]

 

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

 

[1] https://theloadstar.com/evergreen-acquires-20-share-in-rotterdams-euromax-box-terminal/

[2] https://theloadstar.com/germany-and-italy-splash-out-in-a-bid-to-shift-more-cargo-from-road-to-rail/

[3] https://www.freightnews.co.za/article/maputo-port-brings-third-tug

[4] https://gcaptain.com/hurricane-hilary-intensifies-as-storm-charts-path-to-california/

[5] https://www.hellenicshippingnews.com/cma-cgm-to-enhance-sirius-service-with-a-direct-call-to-rio-dejaneiro/

[6] https://www.hellenicshippingnews.com/south-korea-exports-seen-swinging-to-growth-from-octfinance-minister-says/

[7] https://gcaptain.com/advancing-maritime-decarbonization-latest-successful-biofuel-trial-in-green-fuelsupply-chain/

[8] https://www.hellenicshippingnews.com/like-clockwork-why-vessel-turnaround-times-are-so-important/

 

Best regards,

JJ & The Inter-Sped team