Freight & Logistics Update 6 August 2024

PORT UPDATES

SOUTH AFRICA

Hazardous cargo 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 low winds speeds during the week. Appointment slots are constrained due to high volume of containers moving through Durban Terminals.

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

CAPE TOWN

The port has experienced windy weather during the week.

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

PORT ELIZABETH

The port has experienced windy weather during the week.

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

AFRICA & INDIAN OCEAN ISLANDS

ANGOLA

Berthing delays of 7 days experienced at Luanda port.

GHANA

Berthing delays of 5 days experienced at Tema port.

IVORY COAST

Berthing delays of 3 days experienced at Abidjan port.

KENYA

Berthing delay of 1 day experienced at Mombasa port.

MAURITIUS

Berthing delay of 1 day experienced at Port Louis.

MOZAMBIQUE

Berthing delays of 4 days experienced at Maputo port.

NAMIBIA

Berthing delays of 2 days experienced at Walvis Bay port.

NIGERIA

Berthing delays of 2 days experienced at Apapa port.

SENEGAL

Berthing delay of 1 day experienced at Dakar port.

TANZANIA

Berthing delays of 10 days experienced at Dar es Salaam port. This is due to high levels of congestion which continues to be experienced.

NORTH AMERICA

CANADA

Montreal

Berthing delays of 2 days experienced at this port.

Toronto

Berthing delays of 8 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 4 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.
Norfolk – Vessel waiting time is up to 3 days.
Charleston – Vessel waiting time is up to 3 days.
Savannah – Vessel waiting time is up to 4 days.
Miami/Port Everglades – Vessel waiting time is up to 3 days.
Houston – Vessel waiting time is up to 1 day.
Oakland – 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 3 days. T18 will be closed August 9, 16, 23 and 30, 2024. Husky Terminal will have hoot gates on August 5, 6, 7 and 8, 2024.

Vessel Scheduling Amendments (Information below is correct at time of publication)

Nele Maersk – with voyage 422S / 426N will perform a terminal swop and call Cape Town

Container Terminal instead of Cape Town Multi-Purpose Terminal.

MSC Rosaria – with voyage 426S / 430N will perform a port swop and call Durban before proceeding to Port Elizabeth and Cape Town.

LATIN AMERICA

BRAZIL

Berthing delays of 3 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 4 days experienced at Antwerp port.

FRANCE

Berthing delays of 3 days experienced at Le Havre port.

GERMANY

Berthing delays of 4 days experienced at Hamburg port and 1 day at Bremerhaven port.

ITALY

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

NETHERLANDS

Berthing delays of 3 days experienced at Rotterdam port.

SPAIN

Berthing delays of 2 days experienced at Barcelona port.

SWEDEN

Berthing delays of 2 days experienced at Gothenburg port.

TURKEY

Berthing delays of 2 days experienced at Istanbul port.

UNITED KINGDOM

Berthing delay of 1 day experienced at London Gateway port.

Vessel Scheduling Amendments (Information below is correct at time of publication)

Santa Teresa – with voyage 242N will do a port swop and call London before Rotterdam.

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 port and 3 days at Chennai port.

UNITED ARAB EMIRATES

Berthing delays of 3 days experienced at Jebel Ali port.

Vessel Scheduling Amendments (Information below is correct at time of publication)

CMA CGM SAN ANTONIO – with voyage 0MTHVW1MA will divert to DRT to perform discharge only and will shift to DCT to perform balance discharge and loading.

ASIA PACIFIC (Including Oceania)

HONG KONG

Berthing delays of 2 days experienced at this port.

KOREA

Berthing delays of 3 days experienced at Busan port.

MALAYSIA

Berthing delays of 3 days experienced at Port Kelang.

NANSHA

No berthing delays experienced at this port.

QINGDAO

Berthing delays of 4 days experienced at this port.

SHANGHAI

Berthing delays of 3 days experienced at this port.

NINGBO

Berthing delays of 3 days experienced at this port.

SHEKOU / YANTIAN

Berthing delays of 2 days experienced at Shekou port and 1 day at Yantian port.

XIAMEN

Berthing delay of 1 day experienced at this port.

XINGANG

Berthing delay of 1 day 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. Many offices in Taiwan were closed on 24th and 25th July due to adverse weather conditions experienced due to Typhoon Gaemi.

THAILAND

No berthing delays experienced at Bangkok port.

VIETNAM

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

Vessel Scheduling Amendments (information below is correct at time of publication)

San Cristobal – with voyage 249N on the Safari service will omit Hong Kong. Hong Kong imports will discharge in Tanjung Pelepas and connect to alternative services with the best possible transit times to Hong Kong.

INDUSTRY NEWS

Freight forwarders welcome plans for new Durban port access route

31/07/2024

The eThekwini Municipality plans to build a second access road to the Port of Durban to reduce traffic congestion. A R50 million environmental impact assessment study was approved to facilitate this project. The South African Association of Freight Forwarders and Business Unity South Africa believe that improved access will enhance throughput levels and help meet the country’s high freight demand. Currently, the single access road to the Island View complex and container terminals is a significant cause of congestion, impacting logistics operations. The 2021 floods highlighted the vulnerability of the current infrastructure when one lane of Bayhead Road was washed away.

Despite operational disruptions, cargo movement showed slight improvements. South African ports handled 62,149 containers in the week up to July 26, a 7% increase from the previous week. Daily averages rose, with 8,878 containers handled daily, and 9,069 predicted for the following week. Various factors caused delays, including union meetings, rainy weather, equipment breakdowns, and spillage incidents. Air cargo handling also increased by 6% to 6,207 tonnes, with 3,941 tonnes for import and 2,266 for export. Source

Transnet truck booking system is a mess – harbour carriers

31/07/2024

Harbour carriers in Durban are facing serious cargo movement challenges, attributed to equipment failures, ineffective port management, and corruption within Transnet. Transporters criticize the flawed truck-slot booking system at Durban Container Terminal (DCT) Pier 2, claiming it unfairly favors certain companies. Despite presenting evidence of corruption to security personnel, no action has been taken. Harbour carrier Ashley Govender highlights Transnet’s reluctance to address corruption, which undermines the booking system’s functionality. Another carrier, Sue Moodley, echoes these sentiments, noting that irregularities in slot allocations have persisted for years without resolution.

Moodley also criticizes Transnet’s lack of awareness regarding the ground situation, attributing it to poor leadership and a lack of accountability within the organization. She argues that Transnet’s senior management is uninformed about the truck congestion at DCT, exacerbated by favoritism in the booking system. Govender dismisses Transnet Group CEO Michelle Phillips’ explanation of recent connectivity issues as an excuse, emphasizing that the problems have persisted for months. Harbour carriers have proposed solutions, such as using the CX Bay rail siding facility to alleviate congestion, but Transnet requires transporters to bear the costs.

Harbour carriers, organized into groups like Change in Logistics, Harbour Carriers Association, and Positive Freight Solutions, believe that Transnet neglects road freighters. Eugene Ramiah mentions that Transnet acknowledges potential solutions but fails to implement them, leaving empty facilities unused. Carrier Aven Naidoo points out that while Transnet profits from the situation, road freighters suffer due to congestion-related delays and charges. Phillips responded to the corruption allegations, stating that equipment issues are being addressed and calling for evidence to take action against corruption. However, she maintains that Transnet’s primary contracts are with shipping lines and freight forwarders, not road transporters. Source

Transnet increases free import storage days

02/08/2024

Transnet, facing ongoing equipment reliability issues, has announced an increase in free import storage days for importers, effective from August 1 to October 31. This effort aims to optimize truck booking slots and improve truck turnaround times at DCT Pier 2. The changes include different free storage periods based on the discharge volume of vessels: 3.25 free days for vessels with less than 1,000 units, 4.25 days for those with 1,000 to 2,000 units, and 5.25 days for vessels with more than 2,000 units. However, this interim measure excludes reefers and IMDGs, which will follow existing rules.

Export stack dates remain unchanged, and Transnet will work with shipping lines on a case-by-case basis for affected vessels. Appointment slot reviews will not necessarily lead to more slots, and trucking companies must cancel unused slots 30 minutes before the start time to avoid penalties. No extensions will be granted for unassigned containers with road stops in place. Transnet continues to strive for better equipment availability and reliability to meet logistical demands. Source

More rain sees normal service resumed on the Panama Canal – almost

31/07/2024

Recent healthy rainfall has restored the Panama Canal to nearly full operating depth, after last year’s severe drought. The Gatun Lake’s water level reached 84.4 feet, allowing around 36 vessels to transit daily with a surcharge of just 0.38%. It is expected that the water level will return to 86.1 feet by October. The El Niño phenomenon last year caused a significant drop in rainfall, reducing the canal’s depth to 79.24 feet in late July and resulting in ongoing restrictions. The canal’s restoration is likely to challenge projects aimed at transporting cargo across the isthmus by land, such as Maersk’s consideration of using the Panama Canal Railway Company networks and the new Mexican railway system, the Corredor Interoceánico project.

The Panama Canal Authority, aware of climate change’s impact on rainfall and the El Niño phenomenon, plans to invest $1.6 billion to construct a second reservoir on the Río Indio river to ensure future water availability. Canal administrator Ricaurte Vásquez Morales emphasized the urgency of addressing climate change and population growth to secure the canal’s resources, calling it a primary responsibility and mandate for the country. Source

Port of Colombo: there’s good news – and there’s bad news

31/07/2024

Sri Lanka’s Colombo Port achieved the highest growth rate in container volumes among leading global hubs this year, largely due to vessel diversions from the Red Sea. In the first half of 2024, Colombo’s container throughput increased by 23.6% year on year, surpassing California’s Long Beach, which saw a 23.3% rise. Colombo, one of Asia’s busiest container hubs, features four key facilities: Jaya Container Terminal (JCT), South Asia Gateway Terminal (SAGT), East Container Terminal (ECT), and Colombo International Container Terminal (CICT). The Sri Lanka Ports Authority (SLPA) highlighted impressive growth at its JCT and ECT terminals, with domestic volumes up 23.6%, transshipment volumes up 15.5%, and total throughput up 17.7%. Private terminals SAGT and CICT also contributed significantly to the port’s efficiency and attractiveness to global shipping lines.

Despite this growth, capacity constraints have impacted Colombo’s momentum, with a 20% drop in containership visits in June leading to a 5% decline in transshipment cargo flows. Congestion has caused transshipment containers to remain on-dock for up to 20 days, forcing some vessels to skip Colombo. This has benefited Indian ports like Cochin and Ennore, with DP World Cochin achieving record throughput. Colombo’s capacity is set to increase with the upcoming West Container Terminal (WCT) project, expected to be operational by late this year or early next year. Meanwhile, Adani Ports is promoting the new Vizhinjam Port in southern India as a competitive alternative to Colombo, attracting interest from major shipping lines like Maersk and MSC due to its deep draught and strategic location. Source

Vessel traffic around the Cape remains weather-constrained

30/07/2024

Maritime traffic around the Cape Peninsula is facing severe weather from the southwest, particularly affecting areas north of Table Bay. Efforts are underway to contain an oil spill at Doringbaai, caused by the grounded bulk carrier MV Ultra Galaxy breaking up in heavy surf. The American salvaging company, Resolve Marine, has been working to pump oil from the vessel. The rough conditions in the Atlantic along South Africa’s coast have slowed sailing around the Cape, impacting east-west routes already delayed by diversions from the Suez Canal.

This challenging weather coincides with a significant increase in maritime traffic around the Cape, as liner traffic opts for the longer EU-Asia route to avoid the Suez Canal. Vessel traffic around the Cape of Good Hope has more than doubled, with daily passages reaching 85 vessels compared to 40 vessels last year. This shift has increased trade volume to approximately 7.2 million tonnes daily, up 75% from the previous year. The adverse weather conditions have further complicated supply chains, leading to cost increases and constant market recalibration. Since early July, container vessels and bulk carriers have been warned of bad weather, with no incident-free voyages around the Cape since July 8. Source

Schedule reliability – the latest winners and losers

01/08/2024

Global schedule reliability for maritime trade remained between 50 to 55% in June, with a slight month-on-month drop to 54.4%, according to Sea-Intelligence (SI). This trend has been consistent throughout the year, but June’s reliability was 9.8 percentage points lower year-on-year. The average delay for late vessel arrivals increased slightly to 5.19 days, marking the third-highest figure for June, surpassed only during the pandemic. Hapag-Lloyd was the most reliable carrier at 55.4%, while ZIM was the least reliable at 44.4%. Seven of the top 13 carriers improved their reliability month-on-month, with Yang Ming showing the most improvement, while ZIM had the largest decline. Only HMM and Yang Ming saw year-on-year improvements, with MSC experiencing the largest decline. Source

Ports struggle with congestion as Red Sea crisis and front-loading boost volume

01/08/2024

Port congestion is causing extensive delays for shippers, with the Red Sea crisis exacerbating the situation. Maersk has warned customers of schedule disruptions on its AMEX service connecting South Africa to the US, citing adverse weather in South Africa and extended waiting times in Freeport, on the US Gulf coast. Due to the Jones Act, requiring US-built and flagged ships with American crews for domestic routes, Maersk has had to tranship cargo out of Freeport, creating a backlog. The limited capacity of oncarriers has extended dwell times, and an influx of imports into Freeport has worsened the congestion.

Recent data from VesselFinder shows 33 vessels arrived at Freeport in the past 24 hours, with 17 more expected within 30 days. Meanwhile, Beacon’s supply chain visibility platform identified the top five congested ports globally as Durban, Ningbo-Zhoushan, Vancouver, Los Angeles, and Chittagong. Beacon’s H1 2024 congestion report indicates that ports like Charleston, Zhoushan, Jebel Ali, Manila, and Chittagong have seen the largest wait time increases. Gavin van Marle of The Loadstar highlighted that congestion remains a significant issue for container supply chains.

In Southeast Asia, 64% of ports analyzed by Beacon saw rising congestion, with Manila experiencing the biggest increase. In Europe, 12 of 18 ports reported increased wait times, while East Asia had relatively stable congestion, except for Ningbo-Zhoushan. North American ports maintained stable congestion levels, but potential strikes on the US east and Gulf coasts could disrupt this. Beacon CEO Fraser Robinson emphasized that the sharp rise in congestion at Charleston and the Red Sea crisis highlights the need for adaptable supply chain strategies amid surging shipping demand and strained port infrastructure. Source

Spot rate volatility spreads amid disruption, bumping up long-term prices

02/08/2024

The Drewry World Container Index (WCI) for container shipping rates remains high this week, averaging $5,736 per 40ft container despite a 1% decrease. The Shanghai-Los Angeles rate dropped 3% to $6,740 per 40ft container. Drewry suggests that while spot rates may have peaked, ongoing shipping disruptions will keep rates elevated.

Recent geopolitical events, such as the Israeli killing of key figures in Tehran and Beirut, have heightened tensions and disrupted ceasefire talks, likely keeping Asia-Europe rates high. This has impacted the shipping industry, with Maersk expecting disruptions to continue through 2024 and forecasting strong container market demand. Maersk has raised its full-year EBITDA guidance to $9bn-$11bn and anticipates container market volume growth of 4-6%.

Volatility in spot rates is now affecting long-term rates, as reported by Xeneta. The Global Xeneta Shipping Index (XSI) increased 2.5% month on month in July, with a significant rise in the Far East Exports sub-index. Xeneta analyst Emily Stausbøll notes that while long-term rates had remained stable despite short-term market increases, this is starting to change. Shippers hope for a rapid decrease in spot rates, while carriers aim to maintain high short-term rates. 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.

JJ & The Inter-Sped Team