Good Afternoon, Clients & Partners,
I hope you are having a fantastic day so far. Below please find the latest Freight & Logistics Update. If you have any questions please shout, we are always ready and eager to jump for you.
Port berthing delays at the port has increased. The port has reported windy weather during the week. Congestion is building up resulting in increased delays for vessels berthing.
- Pier 1 : 7 days
- Pier 2 : 4 days (Safari) & 5 days (MW1)
- Durban Point : 3 days
Berthing delays at Cape Town Container Terminal continues as a result of congestion. The port has reported strong winds during the week.
- CTCT : 5 days
- MPT : 0 days
Port berthing delays have increased at both terminals. The port has reported windy weather during the week.
PECT : 7 days
NCT : 5 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. We will continue to monitor the situation and provide updates accordingly.
- Increased berthing delays of 5 days experienced at Port Louis.
- Increased berthing delays of 6 days experienced at Luanda port. Congestion is being experienced.
- Berthing delay of 1 day experienced at Tema port.
- No berthing delays experienced at Apapa port.
- Berthing delays of 3 days experienced at Dar es Salaam port. The port remains congested.
- No berthing delays experienced at Mombasa port. A non-operational berth is impacting on operations.
- Pre-Inspection Certificates are mandatory for specified products being imported into Mozambique. Berthing delay of 1 day experienced at Maputo port.
- Berthing delays of 4 days experienced at Walvis Bay port.
- Electronic Cargo Tracking Note (ECTN) required for destination Djibouti effective 15th June 2023.
- NY/NJ – Vessel waiting time is up to 1 day.
- Norfolk – Vessel waiting time is up to 2 days. Berthing congestion has reduced since previous weeks.
- Savannah – Vessel waiting time is up to 3 days. Deep draft vessels continue to experience delays due to negative tides.
- 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.
- Los Angeles/ Long Beach – Vessel waiting time is up to 4 days.
- Seattle – Vessel waiting time is up to 3 days. Availability of rail cars in Union Pacific Rail and BNSF Rail continues to fluctuate weekly. WUT has received 2 new Post Panamax Cranes and will commence commissioning both at same time in the next 2 weeks, operational by end of August.
- Oakland – Vessel waiting time is at 3 days
- 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.
Due to persistent congestion nationwide, chassis shortages continue to be observed resulting in potential delays for pick-up and delivery.
Currently, all Container Terminals in Vancouver and Prince Rupert are open and operating.
- All marine terminals in Vancouver are operational. Berth congestion continues as the terminals recover from previous strike action.
- Vessels are arriving on proforma schedule. There are no issues with labour availability, and there is good productivity in the yard.
- No berthing delays 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.
- Berthing delay of 1 day experienced at Antwerp port. Antwerp Gateways Terminal received 3 additional Gantries which will be fully operational in September. Terminal with good productivity.
- Berthing delay of 1 day experienced at Hamburg and Bremerhaven ports. Container Terminal Altenwerder (CTA): Labour expected to be short over the weekends with the ongoing summer school vacations in Germany, however impact currently limited. Berth line-up is full. 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.
- Berthing delay of 1 day experienced at London Gateway port. Due to the ongoing expansion construction LGP with 20m less pier length, minimal impact to operations. Terminal running with full equipment resources available and no operational issues to report.
- Berthing delay of 1 day experienced at Barcelona port.
- Increased berthing delays of 5 days experienced at Genova and La Spezia ports. Genova, GPT terminal has possible gate in restrictions for DG exports, due to elevate number of IMO park limitations.
- Berthing delays of 2 days experienced at Rotterdam port. Europe Container Terminals (ECT) has a lack of labour with start of vacation period. ECT will deploy 75 holiday workers over the summer to support labour, first batch started and further training in progress.
- Berthing delay of 1 day experienced at Le Havre port and 4 days at Fos-sur-Mer port. Ongoing summer vacation period with slight lack of labour expected to last until September. With current lower volumes impact is limited.
- Increased berthing delays of 9 days experienced at Istanbul port.
INDIAN SUB-CONTINENT and MIDDLE EAST
- Berthing delays of 1 day experienced at Mundra, Nhava Sheva and Chennai ports.
UNITED ARAB EMIRATES
- Berthing delay of 1 day experienced at Jebel Ali port.
- 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.
- No berthing delays experienced at this port.
- Berthing delays of 2 days experienced at Kaohsiung port.
- Reduced berthing delays of 3 days experienced at this port.
SHANGHAI / NINGBO
- Berthing delay of 1 day experienced at Shanghai and Ningbo ports. Vessel bunching experienced at Ningbo port.
- Berthing delays of 1 day experienced. Vessel bunching experienced outside of the port due to bad weather.
- No berthing delays experienced at this port.
- No berthing delays experienced at this port.
- Berthing delays of 2 days experienced at Busan port.
- Berthing delay of 1 day experienced at Ho Chi Minh port and 2 days at Hai Phong port.
- Berthing delay of 1 day experienced at Port Kelang.
- Berthing delay of 1 day experienced at Bangkok port.
- Berthing delay of 1 day being experienced.
Transnet selects international operator for Durban port upgrade
Date: 18th July 2023
Transnet has selected a Philppines-based multi-national port terminal operator as an equity partner to develop and run its busiest and biggest container terminal – Durban Port’s Container Terminal Pier 2.
International Container Terminal Services Inc. (ICTSI) won the contract as the Preferred Bidder for the 25-year joint venture with Transnet Port Terminals (TPT) to develop and upgrade the terminal.
DCT Pier 2 is the state-owned logistics utility’s biggest container terminal, handling 72% of the port’s throughput and 46% of South Africa’s port traffic.
Private sector participation in Pier 2 is a key catalyst for repositioning the Port of Durban as a container hub port. “We are delighted to have a global player of ICTSI’s standing on board to drive this process,” Transnet Group chief executive Portia Derby said.
According to Transnet the partnership with ICTSI will reposition the terminal for “best practice performance”, ensuring growth in volume throughput and providing operational and commercial support to access global shipping line call routes.
Transnet aims to grow Pier 2’s current capacity of two million TEUs to 2.8 million. This is aligned with Transnet National Ports Authority’s (TNPA) plan to increase the current container capacity in Durban from 3.3 million TEUs to an envisaged capacity of 11.4 million TEUs. 
Canadian west coast port strike back on – and then off, for now
Date: 20th July 2023
The renewed strike at 30 Canadian ports has been called off, for now, after a see-saw of work and walk-outs. The past 36 hours have been a rollercoaster for anybody involved with cargo flowing through the ports in British Columbia, with the strike by longshoremen flipping between resumption and being called off.
It is unclear though, how the situation will evolve. The federal government has signalled that it wants to end the stand-off and is examining its options. The prime minister’s office convened a meeting of its crisis cabinet committee yesterday to discuss the situation.
Port workers returned to the picket line on Tuesday afternoon, after ILWU members rejected a deal, brokered by a federal mediator, tentatively accepted last Thursday by the union and the British Columbia Marine Employers Association (BCMEA). The ILWU members felt the terms of the agreement were not sufficient to protect jobs now, and in the future.
Federal labour minister Seamus O’Regan promptly tweeted: “This strike is illegal.” Mr O’Regan, who had pushed for the tentative agreement, signalled on Tuesday evening that the government was losing patience with the continued stand-off. In a joint statement with transport minister Omar Alghabra, he declared: “We have been patient. We have respected the collective bargaining process. But we need our ports operating.” The pair called the tentative agreement “a fair and balanced deal”, adding that Canadian businesses and workers could not face further disruption. 
Drought threatens return of shipping disruption on US waterways
Date: 21st July 2023
The current spell of seriously hot weather is threatening disruption on US inland waterways, and beyond.
Water levels on the Mississippi and Ohio rivers are falling at an alarming rate – near the city of Cairo, the level of the Ohio River dropped six feet in one week and experts predict a further decline of four feet before the end of the month.On the Mississippi, the water is forecast to recede three feet in the St Louis area, and about six feet around Memphis.
Such declines would push both rivers to low stage classification, when barges may run aground and shipping lanes have to be narrowed. Drought has afflicted virtually the entire midwestern US, and rainfall in the eastern states has been below normal averages for the season. And relief is not in sight, according to meteorologists.
So far, the lower water levels have not affected barge traffic, said Colin D’Abreo, CEO of Rhenus Project Logistics. But shippers and operators fear a repeat of last year, when low water levels seriously disrupted shipping on the Mississippi at a time when grain and soybean shipments were at their peak.
On one day, more than 2,000 barges were stranded on the river after the closure of two sections. Beyond the closures, the low water levels prompted draught restrictions on barges, to prevent them running aground, resulting in 20%-27% lower payloads. Moreover, the number of barges that could be towed by one tug was trimmed, forcing a scramble for tugboats. Shipping costs escalated as cargo owners scrambled to secure alternative capacity. One hopper barge carries as much bulk traffic as 16 railcars or 70 trucks. The impact on the US transport system was immense.
About 578 million tons of cargo are shipped annually on US inland waterways, and about 60% of grain exports are moved on the Mississippi. And traffic has increased this year: in the week ended 8 July, 511,000 tons were moved on barges along the Mississippi, up from 403,000 tons the previous week, according to the US Department of Agriculture. 
EU Emissions Trading Scheme (“EU ETS”): Regulatory and contractual perspective
Date: 17th July 2023
On 18 April 2023, the European Parliament decided that from 2024, the EU ETS would also apply to emissions from shipping.
According to the EU regulations, the ‘shipping company’ concerned is responsible for compliance with the EU ETS vis- à-vis the authority. First, emissions from a ship in a calendar year are measured and verified. Then, the shipping company must submit the allowances to the authority in September of the following year. The first time allowances are to be submitted in September 2025 for emissions in the calendar year 2024.
But what does the term “shipping company” mean? In a nutshell, a shipping company can be the owner (probably the one ship company as owner of the ship in question), or the holder of the document of compliance (“DOC holder”). In the first instance, it must be assumed that the owner and DOC holder are jointly and severally liable to the authority. In other words, if the DOC holder does not submit the allowances to the authority on time, the authority will hold not only the DOC holder, but also the owner responsible.
But who should bear the costs for the procurement of the allowances? BIMCO (the Baltic and International Maritime Council) has already published a clause for time charters, according to which the charterer must procure the necessary allowances for the owner. The BIMCO clause is a good basis for the negotiations between the owner and the charterer. Particularly in the case of already existing time charters, however, it can be observed that charterers refuse to subsequently agree to the BIMCO clause, or only want to accept the content in a strongly diluted form.
What is the European legislator’s position on the distribution of costs? It seems clear that it is their intent that the shipping company is obliged vis-à-vis the authority to submit the allowances. However, the shipping company shall be provided with a statutory claim for reimbursement against the charterer on the basis of the polluter-pays principle in the internal relationship between owner and charterer.
In summary, there are still many steps to be taken by the parties between now and the end of the year to make the contract documentation watertight. 
Black Sea Shipping crisis escalates
Date: 21st July 2023
Black Sea shipping has descended into dangerous chaos not experienced since the early months of the war in Ukraine.
In a tumultuous week for shipping out of the Black Sea, shipowners and insurers are taking stock and giving the region a wide berth as both Russia and Ukraine have declared the North-East Black Sea region and the Kerch-Yenikal strait dangerous and prohibited.
Russia announced that all ships travelling to Ukraine’s Black Sea ports will be considered potential military targets, as Kyiv said it would set up a temporary shipping route to continue grain exports following Moscow’s withdrawal from a deal that permitted food shipments from Ukraine’s ports.
Russia now deems all ships travelling to Ukraine to be potentially carrying military cargo on behalf of Kyiv and the flag countries of such ships as considered parties to the Ukrainian conflict.
To counter the end of the Black Sea Grain Initiative, Ukraine established a temporary shipping route via Romania.
But just a day after Moscow’s threats to the Black Sea shipping routes, things got exponentially worse. Ukraine’s Ministry of Defence announced that as of today all vessels in the Black Sea heading to Russian ports or to temporarily occupied ports of Ukraine may be considered as carrying military cargo.
“Russian Federation has once again brutally violated the freedom of navigation enjoyed by the entire world, and it continues to deliberately undermine international food security by exposing millions of people to the danger of famine,” Ukraine’s Ministry of Defence said. 
South China ports prepare for typhoon Talim
Date: 17th July 2023
China has raised its emergency response for Typhoon Talim, which has
strengthened from tropical storm to severe tropical storm and is forecasted to make landfall in South China on Monday night.
The province of Hainan upgraded the emergency response for typhoon and warned ships operating in nearby seas to return to ports to take shelter. Guangdong also forecasted strong wind and heavy rainfall.
Local maritime authorities have strengthened traffic safety management, vessel sailing control and port facility reinforcement of Pearl River, Qiongzhou Strait, Wanshan Islands and nearby areas. Major ports in South China had suspended container pick up and deliver services. Vessels schedule is likely to be delayed during the period. 
Indian port authorities heed carrier please for tariff rationalisation
Date: 18th July 2023
High port charges and lopsided tariff policies have been a major source of concern for container lines serving Indian trades, but some respite seems to have emerged, thanks to industry pushback.
“As shipping lines increased their capacities and expanded services to assist the Indian trade, there have been some positive developments,” Sunil Vaswani, executive director of the Container Shipping Lines Association (CSLA), told The Loadstar.
He said the multiple tariffs that had complicated containership calls to east coast gateway Visakhapatnam had eased, with an across-the-board rate hike from the end of May revised from 30% to 20%. And he added that the port authority had agreed to abolish ‘priority berth hire’, commonly levied on box vessels irrespective of window calls. Visakhapatnam had also drastically scaled down the mandated security deposit for each port of call, said Mr Vaswani.
Visakha Container Terminal (VCTPL) has seen steady growth in box movement in recent months, reaching a new monthly high of some 63,500 teu in June, up from 48,500 teu a year ago, according to data.
But the CSLA believes more needs to be done to bring Indian ports up to par with their global peers, and propel container trade growth as carriers ramp-up their network reach out of the emerging market. It says there is a vast price differential on vessel/cargo-related tariffs that Indian ports must address to compete better for more direct ship calls. 
With 122 new ships on the way, CM ACGM has Maersk in its sights
Date: 19th July 2023
With its huge orderbook of 122 ships, for a capacity of 1.24m teu, CMA CGM is on course to overtake Maersk as the second-biggest container line in the world.
And, with fellow Ocean Alliance partners Cosco and Evergreen having the third- and fourth-largest orderbooks – 927,000 teu and 840,000 teu respectively – the vessel-sharing group’s total capacity will be immense.
According to Alphaliner data, the French carrier now has an operating fleet of 625 vessels, with a total nominal capacity of 3.5m teu, compared with Maersk’s 683 ships and capacity of 4.1m teu.
However, Maersk’s orderbook is just 33 ships, with a capacity of 405,000 teu, as it concentrates on replacing tonnage with green methanol-powered vessels and continues its quest to become a global integrator.
“Based on a projection of vessel deliveries, CMA CGM is expected to reach a fleet of 4m teu by the end of 2024 or in early 2025,” said Alphaliner. “Assuming that half of CMA CGM’s orderbook is for growth and half will be for fleet replacement, the carrier would stabilise at a fleet capacity of around 4.2m teu in late 2026.” 
Good news, and bad news, on the freight rate front for carriers
Date: 21st July 2023
Container spot rates from Asia to the US spiked this week, while carriers managed to halt the decline in short-term rates from Asia to North Europe.
However, spot rate on the transatlantic westbound have tumbled again, with average rates closing in on $1,500 per 40ft.
The latest analysis from John McCown for US container imports in June shows a year-on-year 18.6% reduction in volume, to 1,747,698 teu, at the top 10 US container ports – but that is an improvement on the 20.1% contraction in May and April’s 21.6% deficit. The consultant expects August should see the last of the consecutive double-digit declines, as the comparisons start to reflect the start of the normalisation of the trade after the post-pandemic surge.
Moreover, some transpacific carriers are more optimistic of at least some increase in demand for the remainder of the peak season.
Elsewhere, judicious capacity management by carriers from Asia to North Europe seems to have stabilised rates, with, for instance, the Freightos Baltic Index (FBX) North Europe reading flat at an average rate of $1,285 per 40ft. Activity in the market is being led by MSC, Evergreen, ONE and Maersk’s digital platform, Twill.
Meanwhile, spot rates on the Asia-Mediterranean trade are showing signs of weakness, due to the increase in capacity from vessel upgrades and new services, albeit that they still reflect a significant premium compared with North European rates. 
Maputo port truck park construction gets underway
Date: 18th July 2023
The construction of a $3 million traffic management park for trucks circulating on the N4 to port terminals at Maputo and Matola, located in Pessene, has officially begun.
The project aims to enhance the efficiency and safety of truck transportation in the region while reducing congestion and improving overall logistics.
Under the management of Sociedade de Desenvolvimento do Porto de Maputo (MPDC), the park, designed to accommodate the high volume of trucks entering and exiting the ports, will feature stateof-the-art facilities and infrastructure.
According to an MPDC spokesman, on-site operations commenced in early July. The first phase of the work will likely be finished in three months. This stage encompasses crucial tasks such as comprehensive cleaning, extensive earth-moving activities, the installation of fencing, as well as the provision of fundamental water and energy services.
Intended to address the issue of traffic congestion on the N4 promptly, this project aligns with the Mozambican Ministry of Transport and the Maputo Provincial Government’s joint initiative launched in April that aims to foster sustainability and promote the overall development of the Maputo Corridor.
In addition to the traffic management park, the ongoing project’s second phase will encompass the integration of commercial services and the expansion of port processing activities. These strategic additions aim to enhance the overall efficiency and effectiveness of operations at both terminals.” 
Mombasa paralysed as heavy road transport sector strikes
Date: 17th July 2023
True to its threat, the heavy road transport drivers of Kenya embarked on a strike on 13 July which is reported to have paralysed business at the Port of Mombasa.
The drivers and conductors in the sector embarked on their action to protest against new directives by the government. The government failed to deal with them, so they rallied for the strike which they had openly said would be the case.
They are protesting a government directive to retest their members at a cost they say is punitive as it places a heavy burden on drivers who are already on low pay.
The transporters along the Northern Corridor, from Mombasa at the coast to Malaba at the Ugandan border, parked their vehicles, disrupting the movement of cargo along the corridor. Kenya Long Distance Truck Drivers Union Secretary, General Roman Waema, said: “We were disappointed by Transport Cabinet Secretary Kipchumba Murkomen calling a suspension of retesting without addressing pertinent issues.”
In a statement, Kenya Transport Association chairman Newton Wang’oo said those paying below the minimum wage were not only in violation of the law but were also displaying a disregard for the rights and welfare of the transport workforce. Wang’oo advised companies to begin the process of reviewing their employees’ salaries to meet or exceed the minimum wage requirement. 
SOURCES & REFERENCES
Hapag Lloyd | Maersk | MSC | Transnet | The LoadStar Publications | gCaptain.com | Shipco Transport | Splash247.com | Freightnews | Hellenic Shipping News | Seatrade Maritime News
JJ & The Inter- Sped team