Freight & Logistics Update 31 July 2024

PORT UPDATES

SOUTH AFRICA

Hazardous acceptance on exports proves challenging as carriers prioritize loading alternative cargo types due to ongoing reefer season. Please expect delays in obtaining the hazardous approval from carriers.

DURBAN

The port has experienced windy weather during the week. Appointment slots are constrained due to high volume of containers moving through Durban Terminals. All IDMs continue to move as scheduled.

Pier 1 : 11 days delay
Pier 2 : 15-18 days delay
Durban Point : 3 days delay

CAPE TOWN

The port has experienced severely strong winds during the week. Appointment slots to pick up containers is constrained because of poor weather conditions experienced in previous weeks. Additional delays are noted in vessels berthing at Cape Town Container Terminal. IDMs are moving as scheduled.

CTCT : 6-7 days delay
MPT : 0-2 days delay

PORT ELIZABETH

The port has experienced windy weather during the week. IDMs are moving as scheduled.

PECT : 1-3 days delay
NCT : 2-4 days delay

AFRICA & INDIAN OCEAN ISLANDS

Air Exports – Ethiopian Airlines suffering backlogs in Addis Ababa. Ougadougou, Burkina faso Bamako, Ndjmena & no longer serviced by Air France.

Sea Exports – MSC no longer calling East Africa directly – Resulting in longer transit times. Tema sitting with port congestion

ANGOLA

Berthing delays of 3 days experienced at Luanda port.

GHANA

Berthing delays of 5 days experienced at Tema port.

IVORY COAST

Berthing delays of 4 days experienced at Abidjan port.

KENYA

Berthing delays of 2 days experienced at Mombasa port.

MAURITIUS

Berthing delays of 2 days experienced at Port Louis.

MOZAMBIQUE

Berthing delays of 4 days experienced at Maputo port.

NAMIBIA

Berthing delays of 4 days experienced at Walvis Bay port.

NIGERIA

Berthing delays of 3 days experienced at Apapa port.

TANZANIA

Berthing delays of 8 days experienced at Dar es Salaam port. This is due to high levels of congestion which continues to be experienced.

NORTH AMERICA

Air Imports – Routing changes in Canada

Sea Exports – running relatively smoothly

CANADA

Montreal

Berthing delays of 2 days experienced at this port.

Toronto

Berthing delays of 3 days experienced at this port.

Vancouver

Berthing delays of 3 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. We are seeing some summer labor shortages so number of gangs available for certain shifts may be reduced. APM Terminal is open on Saturday, July 27, 2024.
Norfolk – Vessel waiting time is up to 2 days.
Charleston – Vessel waiting time is up to 2 days.
Savannah – Vessel waiting time is up to 4 days.
Miami/Port Everglades – Vessel waiting time is up to 1 day.
Houston – Vessel waiting time is up to 1 day.
Los Angeles/Long Beach – Vessel waiting time is up to 1 day.
Seattle – Vessel waiting time is up to 1 day. T18 will be closed July 26 and 29, 2024. Husky Terminal will have hoot gates on July 30,31 and August 1,2, 2024. Husky is experiencing labor fill shortages which will negatively impact terminal operations.

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 5 days experienced at Le Havre port.

GERMANY

Berthing delays of 4 days experienced at Hamburg port and 2 days at Bremerhaven port.

ITALY

Berthing delays of 3 days experienced at Genova port and 7 days at La Spezia port.

NETHERLANDS

Berthing delays of 3 days experienced at Rotterdam port.

SPAIN

Berthing delays of 4 days experienced at Barcelona port.

SWEDEN

Berthing delay of 1 day experienced at Gothenburg port.

TURKEY

Berthing delay of 1 day experienced at Istanbul port.

UNITED KINGDOM

Berthing delays of 2 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 and Chennai ports.

UNITED ARAB EMIRATES

Berthing delays of 3 days experienced at Jebel Ali port.

ASIA PACIFIC (Including Oceania)

HONG KONG

Berthing delays of 2 days experienced at this port.

KOREA

Berthing delays of 2 days experienced at Busan port.

MALAYSIA

Berthing delay of 1 day experienced at Port Kelang.

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 delay of 1 day experienced at Shekou and Yantian ports.

XIAMEN

Berthing delay of 1 day experienced at this port.

XINGANG

No berthing delays experienced at this port

SINGAPORE

Berthing delay of 1 day being experienced at this port. containers transshipping in Singapore have expected delays of 2-3 weeks.

TAIWAN

Berthing delays of 3 days experienced at Kaohsiung port. Some offices in Taiwan were closed on 24th and 25th July due to adverse weather conditions experienced due to Typhoon Gaemi.

THAILAND

Berthing delay of 1 day experienced at Bangkok port.

VIETNAM

Berthing delays of 2 days experienced at Hai Phong port and 1 day at Ho Chi Minh port.

INDUSTRY NEWS

CTCT takes delivery of new haulers

23/07/2024

The Cape Town Container Terminal (CTCT) has received 15 new haulers to improve efficiency in the port. This delivery is part of a total of 47 haulers expected by the end of the month, following the arrival of 10 haulers last month. The haulers are crucial for moving containers within the terminal and will help recover operations disrupted by recent bad weather. Shacman, the original equipment manufacturer, is currently inspecting the haulers before installing the necessary tools for CTCT.

Oscar Borchards, managing executive of Transnet Port Terminals Western Cape Region, stated that the new haulers will enhance the terminal’s efficiency by ensuring a steady supply of containers for loading and unloading cargo. This improvement is expected to reduce turnaround times and benefit customers. Borchards also highlighted that the new equipment, supported by a solid maintenance plan from Shacman, will improve reliability. The team is working hard to ensure the remaining haulers are delivered and operational on time. Source

Strong increase in daily container movement at SA ports

23/07/2024

Efforts to improve operations at South Africa’s ports have led to a 35.15% increase in container handling, according to a Cargo Movement Update by the South African Association of Freight Forwarders (Saaff) and Business Unity SA (Busa). This recovery follows disruptions caused by severe weather, particularly in the Western Cape, which had reduced daily container handling to 6199 units. The latest data shows an increase to 8377 containers handled daily.

Despite improved weather conditions in Cape Town, port operations were still affected by vessel ranging and equipment issues. Adverse weather and equipment breakdowns also disrupted operations at the Port of Durban. In the Eastern Cape, strong winds and vessel ranging caused delays at several ports. The Port of Richards Bay experienced minimal delays, maintaining steadier operations. Source

‘Last chance’ for US importers to stock up before possible east coast port strike

24/07/2024

The lead time for Chinese exports to the US east coast is currently just over two months, giving shippers a limited window to boost import stocks before a potential strike. The latest Flexport Ocean Timeliness Indicator (OTI) shows a minor improvement from 62 to 61 days for China-to-USEC cargo transport. Lars Jensen, CEO of Vespucci Maritime, emphasized that this week is the “last chance” for US importers to move products to avoid potential disruptions from a strike, as the contract between the International Longshoremen’s Association (ILA) and US Maritime Alliance (USMX) expires on 30 September. Negotiations have stalled due to disagreements over port automation.

Although some shippers are not overly concerned about the strike, they acknowledge the significant impact it could have on the US economy, especially close to the presidential election. The OTI also reports that the China-to-US west coast lead time is around 40 days, while China-to-Europe has slightly increased to 69.5 days due to European port congestion and previous delays caused by extreme weather. Despite minor weekly changes, all three trade routes have shown an upward trend in lead times over the past three months. Flexport’s indicator measures the time from cargo readiness in China to when it is picked up by a truck at the destination port. Source

Bangladesh looks at demurrage waiver as containers pile up in Chittagong

26/07/2024

The Chittagong port yards are overwhelmed with nearly 40,000 TEU of containers, mainly imports, due to a week of student protests that caused highway blockades, a curfew, and internet restrictions. Importers are now facing significant demurrage charges for containers stored at the port for more than four days, adding to their financial burdens from factory closures and shipping delays. A port official noted that after the initial four-day free period, fees increase from $6 to $24 per day for a 20ft container, with double rates for 40ft containers. Businesses are urging the government to waive these charges to mitigate their losses.

The Federation of Bangladesh Chambers of Commerce and Industry has requested the suspension of demurrage charges for this week and no new charges for 15 days after normal operations resume. The Chittagong Chamber of Commerce and Industry has echoed this call. Junior Shipping Minister Khalid Mahmud Chowdhury suggested that the government might consider waiving the charges if businesses submit formal requests, citing a similar waiver granted during the Covid-19 pandemic. Currently, 80% of the yard space at Chittagong Port is occupied, well above the 60% threshold that typically causes congestion. The port has managed to deliver about 3,500 TEU of containers daily since internet services were restored. Source

Cargo vessels sink as Typhoon Gaemi sweeps across Taiwan

25/07/2024

Typhoon Gaemi has caused significant devastation across Taiwan, sinking the general cargo vessel Fu Shun and affecting many other ships. The storm, which brought flooding, high winds, and dangerous waves, has already killed 25 people in the Philippines. The Fu Shun began listing 19 nautical miles off Kaohsiung around 5:45 am and sank about an hour later, with a distress call sent at 6:30 am. Of the nine Myanmar crew members who fell overboard, three have been rescued while six remain missing. Rough seas and high winds have hindered search and rescue efforts, but authorities are monitoring conditions to deploy teams as soon as possible.

In addition to the Fu Shun, five other ships have run aground around Taiwan’s coast, though their crews are safe. These ships include the Indonesia-flagged cement carrier Iriana and the Mongolia-flagged general cargo ship Basia. Meanwhile, an oil tanker, MT Terra Nova, capsized off the coast of Limay in the Philippines, carrying 1.4 million liters of oil, with authorities working to contain a potential spill. Typhoon Gaemi, now headed to mainland China, has weakened but still has maximum sustained winds of 140 kph and gusts up to 215 kph, equivalent to a Category 3 hurricane. Source

Ripples from IT outage could spread through supply chains ‘for weeks’

22/07/2024

A global IT outage caused by a faulty update to Microsoft cyber-security software from Crowdstrike disrupted air cargo services, revealing supply chain vulnerabilities that may take days or weeks to resolve, according to Xeneta. The outage led to thousands of flight delays at major air freight hubs in Europe, Asia, and North America. Xeneta’s chief airfreight officer, Niall van de Wouw, emphasized the complexity of air supply chains and the severe impact of such disruptions, noting that planes and cargo are not where they should be, which could prolong resolution. He also highlighted that the limited airfreight capacity, with global demand in June up 13% from the previous year, would further complicate recovery efforts.

While Heathrow Airport reported a quick return to normal operations with contingencies in place, seaport operations were less affected. Xeneta’s senior shipping analyst, Emily Stausbøll, explained that the immediate impact of IT failures is more significant for air freight due to frequent airport transits, whereas containerships are at sea for longer periods. Although container shipping experienced limited impact, inland transport issues with trucks and rail services could increase port congestion. Affected ports included Gothenburg, Felixstowe, Dover, and Los Angeles, among others. This incident underscores the vulnerability of global supply chains to technological failures, following previous disruptions from geopolitical conflicts. Source

Houthi Threat to Red Sea Shipping is Growing, UN Envoy to Yemen Says

23/07/2024

Recent developments in the Red Sea and surrounding waterways indicate an increasing threat to international shipping from Yemen’s Houthis, according to U.N. Special Envoy to Yemen, Hans Grundberg. Speaking to the U.N. Security Council, Grundberg expressed concerns about a potential regional escalation following new Houthi attacks on commercial shipping and Israel’s first airstrikes on Yemen in retaliation for Houthi drone and missile attacks. He noted that these attacks suggest a growing and more precise threat against international navigation.

The situation has escalated to dangerous levels, with commercial ships being damaged or sunk, disrupting trade, and causing civilian casualties. The Houthis continue to hold the crew of the hijacked cargo ship Galaxy Leader. The U.S. and Britain have also conducted airstrikes on Houthi-controlled areas. Grundberg highlighted the alarming lack of de-escalation or resolution signs. The Iran-backed Houthis have launched around 200 attacks on Israel since the conflict began, mostly intercepted and non-lethal. However, a rare drone strike on Tel Aviv killed one person, prompting Israel’s retaliatory airstrikes on Yemen’s Hodeidah, resulting in six deaths. Israel also intercepted a Houthi missile on Sunday. Source

Container spot rates have peaked as all major trades see prices fall

26/07/024

This week’s container port freight markets show that peak prices on main east-west deep-sea trades have passed. All three major indices recorded single-digit declines due to lower ship utilization in Asia. The most significant drops were on the transpacific Asia-North America route: Drewry’s World Container Index (WCI) for Shanghai-Los Angeles fell 5% to $6,934 per 40ft, Xeneta’s transpacific XSI dropped 6% to $7,322 per 40ft, and Freightos FBX decreased 4% to $7,738 per 40ft. On the Asia-North Europe route, pricing was mostly flat or slightly down, with WCI and XSI stable at around $8,260 and $8,474 per 40ft, respectively, while FBX dropped 2% to $8,420 per 40ft. Asia-Europe freight forwarding sources indicated that space has become easier to obtain, suggesting waning demand or the impact of increased capacity since the beginning of the year.

The spot rate declines end more than three months of consecutive increases and are affecting the charter market. Carriers have become more cautious in negotiations, as noted by the Hamburg and Bremen Shipbrokers Association (VHBS). With more than 1.3 million TEU of new vessels yet to be delivered by the end of the year and an additional 2 million TEU expected in 2025, market fundamentals are eroding. The influx of new capacity is testing market resilience, and the reduction in cargo demand could lead to turbulent times for owners and operators. According to Alphaliner, every major carrier, except Yang Ming, increased capacity in the first half of the year, with MSC adding around 400,000 TEU, surpassing 6 million TEU in total capacity. Both MSC and CMA CGM have significant capacity on order, potentially positioning CMA CGM to surpass Maersk as the second-largest carrier within the next two to three years. Source

Container ship capacity records fastest growth in 15 years

26/07/2024

The global container ship fleet has expanded by 11% in the first half of the year, reaching a total capacity of 29.5 million TEU, according to the Baltic and International Maritime Council (Bimco). This marks the fastest growth in 15 years, with 264 ships totaling 1.6 million TEU delivered during this period, two-thirds more than the same period last year. Niels Rasmussen, Bimco’s chief shipping analyst, highlighted the significant increase in capacity and the high demand for ships, which has kept ship recycling at a low level, with only 36 ships totaling 51,000 TEU scrapped so far this year.

The rapid expansion of the container ship fleet is driven by robust cargo volume growth and the re-routing of vessels via the Cape of Good Hope due to the Red Sea crisis affecting the Suez Canal. This increased demand for ships has resulted in minimal recycling, indicating the industry’s expectation of continued strong demand for container shipping services in the coming years. The combination of increased cargo volumes and longer sailing distances has significantly contributed to the fleet’s rapid growth. Source

Blank sailing modesty confirms carrier confidence

26/07/2024

Maritime consultancy Sea-Intelligence (SI) reports that carriers plan to blank 3.9% of total capacity on Asia-North America West Coast routes, reflecting pre-pandemic levels and aligning with the percentage observed in 2020. This indicates steady confidence among carriers regarding demand for the peak container season in 2024. The strategic blanking of sailings helps maintain freight rates and optimize fleet utilization, suggesting carriers are not overly concerned about a significant drop in demand but are taking prudent steps to manage capacity effectively.

The modest blanking rate reflects a broader trend of industry stabilization and resilience following Covid-19 disruptions. With the peak shipping season traditionally marked by increased demand due to retail stockpiling ahead of the holidays, the current blank sailing plans suggest carriers anticipate a robust market. SI’s analysis highlights that planned blank sailings and capacity deployment show carriers’ cautious yet confident stance, indicating a market stabilizing well and adapting to evolving global trade dynamics.Source

SOURCES & REFERENCES

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,

The Inter-Sped Team