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Freight & Logistics Update – 3rd May 2024

Freight & Logistics Update – 3rd May 2024

Good Day Clients & Partners,

We hope it’s been a wonderful week so far! Below you’ll find the latest Freight & Logistics Update.  The Inter-Sped team are ready to go the extra mile for you – so don’t hesitate to contact us.

SOUTH AFRICA    

Extended berthing delays are common across all ports in South Africa. Delays upwards of two weeks continue to be experienced at Durban ports Pier 2 terminal and it will take a few weeks for shipping lines to restore schedule reliability across the trade routes. Expect more blank sailings, port omissions and changes to voyages being announced at short notice.

DURBAN

The port has experienced low wind speeds during the week.

  • Pier 1 : 5 days delay
  • Pier 2 : 21 days delay
  • Durban Point : 3 days delay

 

CAPE TOWN

The port has experienced strong winds during the week.

  • CTCT : 3-5 days delay
  • MPT : 2-3 days delay

 

PORT ELIZABETH

The port has experienced low wind speeds during the week.

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

 

AFRICA & INDIAN OCEAN ISLANDS    

ANGOLA

  • Berthing delays of 2 days experienced at Luanda port.

 

GHANA

  • Berthing delays of 2 days experienced at Tema port.

 

IVORY COAST

  • Berthing delay of 1 day experienced at Abidjan port.

 

KENYA

  • Berthing delays of 3 days experienced at Mombasa port.

 

MAURITIUS

  • Berthing delays of 2 days experienced at Port Louis.

 

MOZAMBIQUE

  • Reduced berthing delays of 4 days experienced at Maputo port.

 

NAMIBIA

  • Berthing delays of 5 days experienced at Walvis Bay port.

 

NIGERIA

  • Increase berthing delays of 3 days experienced at Apapa port.

 

TANZANIA

  • Berthing delays of 16 days experienced at Dar es Salaam port. Delays are due to vessels bunching and congestion being experienced.

 

NORTH AMERICA    

CANADA

Montreal

  • Berthing delay of 1 day experienced at this port.

 

Toronto

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

 

Vancouver

  • Berthing delays of 2 days experienced at this port.

 

USA

Terminals Updates:

  • New York/New Jersey – Vessel waiting time is up to 2 days.
  • Norfolk – Vessel waiting time is up to 3 days. Berth congestion has eased. Baltimore port closure is having a slight effect on NIT berth/terminal congestion.
  • Charleston – Vessel waiting time is up to 3 days. Dock construction at Wando Welch terminal started on March 11, 2024, reducing berth space from 3 to 2 berths for one year. Berths will be given on first come, first serve basis.
  • Savannah – Vessel waiting time is up to 5 days.
  • 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 2 days.
  • Seattle – Vessel waiting time is up to 2 days. Terminal 18 will be closed on April 26 and May 3, 2024.
  • Oakland – Vessel waiting time is up to 2 days. OICT – three cranes are non-operational.

 

LATIN AMERICA    

BRAZIL

  • Berthing delays of 5 days experienced at Santos port.

 

NORTH WEST CONTINENT, UNITED KINGDOM, MEDITERRANEAN    

BELGIUM

  • Berthing delays of 3 days experienced at Antwerp port.

 

FRANCE

  • Increased berthing delays of 7 days experienced at Le Havre port. All Terminals in le Havre will stop operations due to National Holiday on 01/05 06:00 – 02/05 06:00.

 

GERMANY

  • Berthing delays of 3 days experienced at Hamburg port and 1 day at Bremerhaven port. CTB: Beginning of the week CTB closed one of the three deep sea berths due to old Gantry crane deconstruction. Both CTA and CTB Terminals will stop operations for the National Labour Day on 30/04 12:00 until 02/05 07:00

 

ITALY

  • Reduced berthing delays of 3 days experienced at Genova port and 4 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

  • Increased berthing delays of 4 days experienced at Gothenburg port.

 

TURKEY

  • Berthing delay of 1 day experienced at Istanbul port.

 

UNITED KINGDOM

  • Increased berthing delays of 5 days experienced at London Gateway port. Commissioning of recently delivered new Gantry cranes in progress. Second batch of cranes just left Singapore and is expected by end of May, beginning of June.

 

INDIAN SUB-CONTINENT & MIDDLE EAST    

INDIA

  • Berthing delays of 2 days experienced at Nhava Sheva port and 1 day at Chennai port.

 

UNITED ARAB EMIRATES

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

 

APAC (Including Oceania)    

Capacity constraints are being experienced out of China main ports. This is due to multiple blank sailings announced by carriers between week 16 & 19. China will have Labour Day celebrations from the 1 st to 5th of May 2024.

HONG KONG

  • Berthing delay of 1 day experienced at this port.

 

KOREA

  • Berthing delay of 1 day experienced at Busan port.

 

MALAYSIA

  • Berthing delay of 1 day experienced at Port Kelang.

 

NANSHA

  • No berthing delays experienced at this port.

 

QINGDAO

  • Berthing delay of 1 day experienced at this port.

 

SHANGHAI / NINGBO

  • Berthing delays of 2 days experienced at Ningbo and Shanghai ports. Delays are due to bunching of vessels and foggy weather experienced.

 

SHEKOU / YANTIAN

  • Berthing delay of 1 day experienced at Shekou port and 3 days at Yantian port.

 

XIAMEN

  • Berthing delay of 1 day experienced at this port.

 

XINGANG

  • Berthing delays of 2 days experienced at this port.

 

SINGAPORE

  • Berthing delays of 2 days being experienced at this port. Delays experienced due to bunching of vessels, bad weather and yard congested. FCL containers transshipping in Singapore have expected delays of 2-3 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 2 days experienced at Hai Phong port and 1 day at Ho Chi Minh port.

 

NEWS ARTICLES    

Port of Cape Town to Partner with Private Sector: A Game-Changing Move:

The Port of Cape Town is set for a major transformation as Transnet, the port’s managing authority, announces plans to engage with private partners for its development. This move, described by city officials as long overdue, aims to tackle the port’s longstanding inefficiencies, which have burdened South Africans, affecting both exporters and ordinary citizens. James Vos, a key figure in the city’s economic growth committee, welcomes the decision, emphasizing the significant shift towards enhancing productivity at the port.

Transnet’s call for private sector involvement focuses on various aspects of port operations, including acquisition, operation, maintenance, refurbishment, and construction of a liquid bulk terminal, all under a 25-year concession period. This initiative, backed by estimates suggesting it could contribute billions in exports, generate thousands of jobs, and increase tax revenues substantially, presents a substantial opportunity for economic growth in the region. Vos underscores the importance of careful selection to ensure contracts are awarded to reputable entities, learning from past experiences to avoid potential pitfalls.

The move towards private sector participation reflects the city’s longstanding advocacy for change in port operations. With the potential to drive tangible economic growth, the partnership between the Port of Cape Town and private entities signifies a promising step forward. Vos emphasizes the need for meticulous vetting processes to maximize the benefits of this collaboration, highlighting the city’s commitment to realizing the full potential of this monumental shift in port management.

Source: Freight News

 

Port of Baltimore: Temporary Channel Opened for Trapped Ships:

The Port of Baltimore recently opened a temporary channel to facilitate the departure of ships stranded within the port. The newly created channel, measuring 10.6 meters deep and 91.4 meters wide, is a provisional solution while efforts continue to remove large sections of a collapsed bridge obstructing the regular waterway. The US Coast Guard announced the temporary closure of the channel until May 10 to ensure safe removal of debris, particularly a significant portion of the bridge still resting on a vessel named Dali.

The tragic incident occurred on March 26 when the Dali lost power and collided with the bridge, resulting in its immediate collapse, claiming several lives and causing extensive property damage in Baltimore. Salvage operations have been underway, with the recent arrival of a 1000-tonne grab aimed at extracting submerged debris, thereby restoring the channel’s navigable depth. While salvage crews have made progress in removing steel pieces from the surface, the deployment of the larger grab, leveraging the lifting capacity of the Chesapeake 1,000 crane, is expected to accelerate the recovery process.

The closure of the deep channel poses challenges for businesses reliant on the port, with revenue losses accumulating each day. Concerns have been voiced regarding potential delays and increased costs if the reopening of the channel prolongs. However, both the US Coast Guard and the Army Corps of Engineers assure a meticulous and efficient clearing process to minimize errors and expedite the restoration of normal port operations.

Source: Freight News

 

Maersk Reports Improvements in West Med Terminal Congestion:

Date: 25 April

Recent challenges faced by West Mediterranean ports, exacerbated by adverse weather conditions and Red Sea attacks, are showing signs of relief, according to Maersk. Earlier concerns about rising manufacturing costs and terminal overcrowding have begun to ease, with Maersk attributing the improvement to regained control over cargo flows and proactive measures to manage high yard densities. While acknowledging ongoing challenges, Maersk notes significant progress towards returning to normal operations.

Data analysis supports Maersk’s observations, indicating a gradual improvement in the situation in the West Mediterranean. Although ports like Algeciras and Barcelona still have a considerable percentage of ships waiting at anchor offshore, there has been a noticeable decrease compared to previous weeks. The disruptions in cargo flows, caused by the Red Sea attacks forcing vessels to reroute, have led to a shift in trade patterns, with Western terminals receiving goods originally destined for East Mediterranean ports. Despite these changes, ports like Barcelona have experienced a notable increase in volumes, reflecting the dynamic nature of maritime trade amid evolving geopolitical challenges.

Source: The Loadstar

 

Asian Feeder Operators Impose Surcharge Amid Port Congestion Challenges:

Date: 26 April

In response to escalating costs attributed to port congestion, Asian feeder operators have introduced a surcharge to mitigate financial strains. The Asian Feeder Discussion Group (AFDG) announced the implementation of an “emergency cost recovery surcharge,” effective since Monday, to offset rising operating expenses caused by port congestion. The surcharge, applied on a one-way basis, varies from $40 to $100 per twenty-foot equivalent unit (teu) depending on the destination, with shippers required to cover half the surcharge for empty containers.

AFDG highlights the adoption of contingency plans by its members, including multiple omissions and accelerated vessel speeds, to maintain schedule integrity and service coverage amidst the challenging operational environment. Despite these efforts, operational costs have significantly increased, prompting the implementation of the surcharge until further notice. Port congestion has resurfaced in Chinese ports this month, leading to berthing delays across various major regions, while some Asian ports like Singapore and Port Klang are witnessing longer vessel queues as ships reroute around the Cape of Good Hope due to the Red Sea disruptions.

According to consultancy Linerlytica, vessel bunching and adverse weather conditions have exacerbated waiting times at Chinese ports like Qingdao, Ningbo, and Shanghai, with delays of up to two days. Similar congestion patterns are observed in Southeast Asian ports, with Singapore, Tanjung Pelepas, and Port Klang experiencing delays ranging from one to two days. However, recent data indicates a marginal reduction in port congestion, with delays easing across major Asian ports compared to the previous week, offering a slight relief amidst ongoing operational challenges.

Source: The Loadstar

 

Cargo Data Fluctuates Amidst Operational Challenges:

Date: 25 April

The latest Cargo Movement Update reveals a notable increase in container handling at South Africa’s ports, averaging 8,281 containers per day, up from the previous record of 6,180 containers. However, port operations continue to face disruptions due to adverse weather conditions and equipment breakdowns. In Cape Town, dense fog posed primary operational constraints, while Durban experienced extensive delays caused by adverse weather and equipment shortages. Similar challenges were reported in ports across the Eastern Cape, particularly at the Port of Ngqura, where equipment issues were raised by shipping line representatives. Additionally, Transnet Freight Rail encountered network issues for about six hours in the Durban complex during the week.

The global analysis provided in the update illustrates a decline in manufacturing’s contribution to GDP across major African economies, influenced by various challenges. Examples include Nestlé’s closure of its Nesquik production in South Africa, Unilever’s cessation in Nigeria, and outsourcing by Bayer and GSK in Kenya and Nigeria. Despite initial enthusiasm from multinational companies attracted by growth prospects, challenges such as currency fluctuations, bureaucracy, power shortages, and congested ports have dampened investment appeal. Container trade statistics for February show a significant monthly decrease, primarily attributed to factors like the Chinese New Year and crises such as those in the Red Sea and Panama Canal due to drought. While challenges persist, hopes are pinned on potential alleviation of water level problems at the Gatun Lake locks in Panama through predicted rainfall.

Source: Freight News

 

Pallet Porter Technology: Revolutionizing Container Space:

Date: 22 April

A new innovation called Pallet Porter technology, developed by British-based 2nd Level Solutions, is gaining attention in the consolidation sector for its ability to address inefficiencies in container shipping. This groundbreaking concept is transforming pallet utilization, leading to reduced space wastage and improved overall efficiency. Sean Petzer, founder of ESBD, a local agent for the product, highlights the increasing demand for Pallet Porter technology, noting a prevalent industry issue where non-stackable pallets result in wasted space and higher costs. By utilizing Pallet Porter, consolidators can optimize container space more effectively, minimizing dead space and enhancing cargo packing, ultimately boosting profitability without the need for additional containers.

Source: Freight News 

 

Red Sea Crisis Alters Shipping Routes and Emissions:

Date: 24 April

The ongoing Red Sea crisis is reshaping shipping dynamics, notably impacting emissions as vessels are diverted from their usual routes. The Saudi Arabian port of Jeddah reports a significant decrease in calls from major carriers, with a two-thirds drop in top carrier calls due to rerouted vessels adding approximately 5,800 nautical miles to each container’s journey, resulting in heightened CO2 emissions. Vessel sizes have also decreased, with the average dropping to 5,600 twenty-foot equivalent units (teu) compared to the pre-crisis average of 8,625 teu, as reported by Alphaliner data.

In response to the service shortfall, carriers like MSC have adapted by adding calls at alternative ports like Jeddah and King Abdullah, aiming to mitigate disruptions. However, despite efforts to maintain service levels, the impact on emissions remains significant, as evidenced by Xeneta’s carbon emissions index (CEI). The CEI for Far East-Mediterranean and Far East-Northern Europe trades has increased substantially in the first quarter of the year, indicating a notable rise in emissions due to longer shipping distances and altered routes. This shift in emissions underscores the immediate and severe impact of the Red Sea crisis on supply chain carbon emissions, with some shippers resorting to alternative transport methods like air cargo or sea-air routings through hubs like Dubai or Colombo, further exacerbating emission levels.

Source: The Loadstar

 

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,

Linda & The Inter-Sped Team