Good Day Clients & Partners,

Please find below the Freight & Logistics Update for the week. The Inter-Sped team are ready to jump for you – so don’t hesitate to contact us for any of your freight and logistics needs.

 

SOUTH AFRICA    

DURBAN

Port berthing delays continue to be experienced due to high levels of congestion. The port has reported low wind speeds during the week.

• Pier 1 : Upto 7 days
• Pier 2 : Upto 20 days
• Durban Point : 3 days

 

CAPE TOWN

The port has reported strong winds during the week. Intermittent port closures in previous weeks have led to berthing delays being experienced.

• CTCT : Upto 7 days
• MPT : Upto 10 days

 

PORT ELIZABETH

The port has reported windy weather during the week. Low levels of delays experienced.

• PECT : 0-2 days
• NCT : 0-3 days

 

AFRICA & INDIAN OCEAN ISLANDS    

ANGOLA

• Berthing delays of 10 days experienced at Luanda port. This is due to congestion being experienced.

 

GHANA

• No berthing delays experienced at Tema port.

 

IVORY COAST

• Berthing delays of 2 days experienced at Abidjan port.

 

KENYA

• Berthing delays of 5 days experienced at Mombasa port.

 

MAURITIUS

• Berthing delays of 12 days experienced at Port Louis. Increased levels of congestions seen on the back of recent cyclonic weather conditions experienced.

 

MOZAMBIQUE

• Berthing delays of 8 days experienced at Maputo port.

 

NAMIBIA

• Berthing delay of 8 days experienced at Walvis Bay port.

 

NIGERIA

• Berthing delay of 1 day experienced at Apapa port.

 

TANZANIA

• Berthing delays of 12 days experienced at Dar es Salaam port.

 

NORTH AMERICA    

CANADA

Montreal

• Berthing delays of 5 days experienced at this port. Bad weather continues on the North Atlantic Ocean, and this is having a mild impact on vessel schedules through Montreal.

Toronto

• Berthing delays of 4 days experienced at this port.

Vancouver

• Berthing delays of 8 days experienced at this port. Due to adverse weather conditions and significant snow buildup, all Port Terminals in Vancouver are experiencing delays and/or suspension of operations for snow clearance.

 

USA

Terminals Updates:

• New York/New Jersey – Vessel waiting time is up to 3 days.
• Norfolk – Vessel waiting time is up to 2 days. Berth congestion has relaxed overall however bunched arrival of ships is still clogging the berth.
• Savannah – Vessel waiting time is up to 5 days.
• Charleston – Vessel waiting time is up to 3 days.
• Miami/Port Everglades – Vessel waiting time is up to 3 days.
• Houston – Vessel waiting time is up to 2 days. Bad weather in the Gulf of Mexico continues to cause closures at ports south of Houston and delays on arrival, on short notice.
• Los Angeles/Long Beach – Vessel waiting time is up to 2 days.
• Seattle – No vessel waiting time experienced. Terminal 18 will be closed on February 2, February 9 and February 12, 2024.
• Oakland – Vessel waiting time is up to 3 days. TraPac has received 6 new RTG’s and are in process of commissioning. These should be operational in the coming week or two. OICT is still dealing with power issues. Berth 55 is closed until cranes 13 and 14 are repaired. Time frame is unknown.

 

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.

 

LATIN AMERICA    

BRAZIL

• Berthing delay of 1 day experienced at Santos port. Carrier scheduling delays continue to be experienced.

 

NORTH WEST CONTINENT, UNITED KINGDOM, MEDITERRANEAN    

 

BELGIUM

• Berthing delays of 2 days experienced at Antwerp port. PSA 913: Operational challenges after a ship caused accident led to a collapse of a crane but productivity at berth has returned to good levels.

 

FRANCE

• Berthing delays of 7 days experienced at Le Havre port.
•  Potential port strike action expected on Monday, 5th February between 10:00am and 16:00pm, Wednesday 7th February all day, and Friday, 9th February between 10:00am and 16:00pm.

 

GERMANY

• Berthing delays of 4 days experienced at Hamburg port and 2 days at Bremerhaven port. Strong winds expected over the weekend which is expected to pose a challenge vessel arrivals and departures.

 

ITALY

• Berthing delays of 4 days experienced at Genova port and 2 days at La Spezia port.

 

NETHERLANDS

• Berthing delays of 4 days experienced at Rotterdam port.

 

SPAIN

• Berthing delays of 2 days experienced at Barcelona port.

 

SWEDEN

• Berthing delays of 7 days experienced at Gothenburg port.

 

TURKEY

• Berthing delays of 2 days experienced at Istanbul port.

 

UNITED KINGDOM

• Berthing delays of 5 days experienced at London Gateway port. Labour sufficient with 8 – 10 gangs. Pilot Stations stable this week, no operational closures to report. All vessels with a berth window. Terminal expanded export delivery window for all equipment types to 14 days due to the Red Sea crisis.

 

INDIAN SUB-CONTINENT & MIDDLE EAST    

INDIA

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

 

UNITED ARAB EMIRATES

• Berthing delay of 1 day experienced at Jebel Ali port.

 

ASIA PACIFIC (Including Oceania)    

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

• Berthing delays of 3 days experienced at this port.

 

QINGDAO

• Berthing delays of 2 days experienced at this port.

 

SHANGHAI / NINGBO

• Berthing delay of 1 day experienced at Shanghai port and 2 days at Ningbo port.

 

SHEKOU / YANTIAN

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

 

XIAMEN

• Berthing delays of 2 days experienced at this port.

 

XINGANG

• Berthing delays of 2 days experienced at this port.

 

SINGAPORE

• Berthing delay of 1 day being experienced at this port. No delays experienced for transshipment cargo. Reduced delays experienced for FCL containers transshipping in Singapore. Expected delays have reduced to 1-2 weeks.

 

TAIWAN

• Berthing delay of 1 day experienced at Kaohsiung port.

 

THAILAND

• Berthing delay of 1 day experienced at Bangkok port.

 

VIETNAM

• Berthing delays of 1 day experienced at Ho Chi Minh and Hai Phong ports.

 

NEWS ARTICLES    

Cape Town port needs ‘urgent reform’

Date: 2nd February 2024

The City of Cape Town has urged President Cyril Ramaphosa to announce plans for urgent reform to improve cargo handling efficiency at the Port of Cape Town.

“The city and country’s economy is dependent on the port for the efficient importing and exporting of goods,” said Mayoral committee member for economic growth, James Vos, ahead of the President’s State of the Nation address next Thursday.

Research from the South African Association of Freight Forwarders indicated that South Africa’s economy was losing R98 million a day due to challenges at the country’s ports, Vos said. “Clothing retailers and manufacturers are unable to bring in products and raw materials to meet customer needs. Retailers have gone so far as to send containers to Walvis Bay, Namibia, and transport goods via truck to ensure they have the necessary inputs to do business,” he said.

In recent months, fruit exporters have been especially hard hit with Hortgro, the fruit industry representative body, reporting that some fruit exports through the port were down by as much as 62% in November and December 2023 compared to the same time in 2022.

“An improved port would lead to the creation of job opportunities, increasing export volumes, and improving our standing in the global market. More specifically, if the necessary upgrades and

maintenance are conducted, we can see an economic injection of R6bn and 20 000 new jobs.” Vos said. [1]

 

South Africa’s logistics sector on a precipice – Saaff

Date: 1st February 2024

The South African Association of Freight Forwarders (Saaff) has described the domestic logistics crisis as a “perfect storm” strangling the private sector and trade, draining the fiscus and causing

massive knock-on damage to the economy.

According to Saaff, imports and exports represented 56.22% of South Africa’s total GDP in 2023, down by 8,7% from 2022, in a boom year for mineral resources. “The drop obliterated robust trade growth posted in 2022 – a recovery year after the impacts of the Covid-19 catastrophe.”

Saaff CEO Juanita Maree has said in the context of such losses, and taking into consideration the serious knock-on impact this has on business across all sectors, it is time for expanded targets in the reconstruction of the logistics network. South Africa’s freight demand is high, at nearly 500 billion tonne-kilometres. We need a multi-modal approach to satisfy our freight demand. And, at the worst of times recently, the inefficiencies in rail cost us R1 billion a day while the inefficiencies at the ports amount to a loss of R200 million a day.”

Maree said since Saaff’s call to government for urgent reforms to confront the logistics crisis in February last year, developments had been “encouraging” and were “poised to pick up pace” in 2024. A major step in the right direction was the implementation of the National Logistics Crisis Committee (NLCC), which includes strong private-sector partners, she said. “Through this forum, the private sector is able to participate and have regular access to a specialist logistics consultative platform anchored by regular meetings and accountability, committed to enabling a world-class logistics network for South Africa.

“South Africa has what it takes to fix the problems, improve its logistics base and turn this moment into an opportunity to uphold its leadership position in the regional and continental context and

beyond in the global supply chain.” Maree said South Africa has a chance to press reset and to reinvent its position as a founder member of Brics+ (Brazil, Russia, India, China, South Africa and as of January 1; Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates), not forgetting its leading trade profile as a member of the African Continental Free Trade Area. [2]

 

Port of Durban records an AfCFTA first for South Africa

Date: 31st January 2024

South Africa’s first exports under the African Continental Free Trade Area (AfCFTA) were loaded on to vessels at the Port of Durban on Wednesday, marking what exporters and government leaders have described as a historic and significant milestone to boost trade on the continent.

Speaking at the launch to mark the start of the country’s first exports to be dispatched under the preferential trade agreement, President Cyril Ramaphosa “We are in the port city of eThekwini taking forward the dream of an ever larger and ever stronger Africa. African countries trade with the rest of the world but we have limited trade among ourselves,” Ramaphosa said.

According to the African Union (AU) data, intra-Africa exports stand at around 16% of Africa’s total exports, compared with Asia’s 55%, North America’s 49% and the European Union’s 63%.

“The reason for this is clear: we are principally exporters of raw materials, selling rocks and black liquid to the world, instead of harnessing our oil and the minerals to industrialise our continent.”

AfCFTA creates the world’s largest free trade area by number of countries, and has the potential to bring transformative change and tremendous opportunities to African economies and businesses. [3]

 

EU ETS: ‘the polluter pays’, but the price ‘must be more transparent’

Date: 31st January 2024

Shipping lines now paying EU ETS surcharges, under ‘the polluter pays’ principle, will pass these costs down the value chain – but there are fears the surcharges might not be accurate.

The EU ETS came into effect on 1 January, requiring vessel owners to buy EU allowances (EUAs) that correspond with the per-tonne carbon emissions of their ships that call at EU ports. The market-based price of EUAs remains highly volatile, as they correspond with the bidding nature of purchase.

The MD of ETS management platform Oceanscore, Albrecht Grell, outlined a standard calculation for an Asia-to-Europe voyage that produced a surcharge estimate of €11.15 per teu. “What carriers do is operate off a standard model,” he explained, which would make generic assumptions to produce a cost, using average ship design, average speed, average EUA price, average capacity utilisation, and so on. [4]

 

Dock workers down under end strike at DP World

Date: 2nd February 2024

Australian shipping stakeholders have cause to celebrate as DP World and the Maritime Union of Australia (MUA) have reached an agreement that will end protected industrial action at Australian Ports.

Dock workers throughout Australia have been striking since October in a pay dispute against port operator DP World, which it is estimated has cost the Australian economy A$86m ($56m) a week.

However, after four months of strike action,  the union have settled upon a four-year agreement. It replaces the prior agreement that expired in September 2023.

The agreement includes fair compensation, enhanced safety measures, effective fatigue management, guarantees of job security and work-life balance for employees.

Vice president at DP World Oceania, Nicolaj Noes, said: “This agreement is a testament to our commitment, to our workforce and to providing uninterrupted services to our customers. We are now focused on moving forward, restoring the supply chain operations and working collaboratively with our employees to rebuild confidence among our customers and make a positive impact on the national economy.

There is still a large backlog of containers across Melbourne, Sydney, Brisbane and Freemantle ports, which could take weeks to clear. This means that delays and increased costs will still likely continue into March. [5]

 

Steady decline in schedule reliability

Date: 2nd February 2024

Just as schedule reliability was beginning to normalise after the Covid-19 disruptions, the Red Sea crisis has thrown a spanner in the works.

An analysis of the 2023-FY figures by maritime consultants Sea-Intelligence reveals that annual global schedule reliability improved by 19.5 percentage points (PP) from 42.6% to 62.1% in 2023.

Despite the sharp improvement, it only reached the level of 2020 and is still below the 70%-80% of 2012-2019.

“What is concerning, however, is that schedule reliability has declined month-on-month for the entire Q4, and we are likely to see a similar impact for January 2024 due to the Red Sea Crisis,” says Sea- Intelligence CEO Alan Murphy.

But he believes that this should be temporary. “Once the additional transit time is accounted for in the carriers’ schedules, we will potentially see an improvement. Lastly, the crisis came too late to have any significant impact on average delay, which improved from 6.38 to 4.83 days in 2023-FY.”

Maersk (67.7%), MSC (65.9%), CMA CGM (62.8%), Evergreen (61.9%), and Wan Hai (61.3%) were the only carriers above 60%. All 13 global carriers recorded a double-digit year-on-year (y-o-y) improvement, with Wan Hai recording the largest improvement of 27.4 PP. Of the alliances, 2M was the most reliable at 57.8%, followed by Ocean Alliance (55.3%) and THE Alliance (43.1%). While all of them recorded double-digit y-o-y improvements, only 2M scored better than the industry average on the six major East/West trades. Those six trade lanes also recorded y-o- y improvements in 2023-FY, however only the Asia-Mediterranean trade lane outscored the industry average on a trade lane level. [6]

 

Spot rates ease as Red Sea diversions become routine

Date: 2nd February 2024

Container spot rates from Asia to Europe have been falling again this week, while rates on the transpacific are beginning to ease, but for both tradelanes spot rates remain significantly elevated.

After a loss-making fourth quarter of 2023 ocean carriers have moved back into the black this year as a result of the huge spikes in rates and surcharges they succeeded in implementing due to the Red Sea crisis supply chain disruptions.

It remains to be seen whether the lines can hold onto these gains, against a background of a chronic capacity oversupply, as carrier networks and equipment balances settle down to the longer transits around the Cape of Good Hope.

“We’re definitely noticing a consistent decrease in rates almost every day. Surprisingly, the usual pre- Chinese New Year (CNY) demand seems to be lacking this year,” said Ian Bellis, a UK-based furniture importer and retailer.Fortunately, we haven’t encountered any equipment shortages, and our containers are smoothly getting loaded onto vessels without any issues. It appears that the current route around Africa has become more routine now,” said Mr Bellis.

“There will be an upwards momentum on new contract rates as these now also need to reflect both the added cost of round-Africa services as well as the sudden strengthening of the supply / demand balance in favour of the carriers,” said Mr Jensen. Meanwhile, on the transatlantic, attempts by carriers to push up rates on the route appear to have failed, with Xeneta’s XSI spot flat this week at a sub-economic average of $1,448 per 40 ft. [7]

 

Can ONE, Yang Ming and HMM compete without a new alliance partner?

Date: 1st February 2024

Jilted THE Alliance (THEA) partners ONE, Yang Ming and HMM are ‘keeping schtum’ on their future following the departure of Hapag-Lloyd next year.

Yesterday’s Q3 (October to December) financial results from Japanese carrier ONE were conspicuous by the absence of any mention of THEA – and that lack of reference also extended to the message from its CEO.

No doubt the members of the alliance who will be left are keeping their options open after the shock resignation from THEA of founding carrier Hapag-Lloyd, with its 2m teu of capacity. ONE, with its current fleet of 1.8m teu and orderbook of some 540,000 teu, is by far the largest of the remaining THEA trio. Next biggest is HMM, with capacity of 783,000 teu and an orderbook of 265,000 teu, followed by Yang Ming, with a fleet of 708,000 teu and an orderbook of 77,000 teu.

It seems unlikely that a weakened THEA could compete with MSC, the Ocean Alliance and the new Gemini Cooperation without recruiting another partner.

Hapag-Lloyd said it needed “a step change in operational performance from our status quo”, which it said was why it agreed to partner with Maersk in the Gemini Cooperation alliance, which has an ambitious target of 90% on-time reliability.

“A carrier can only control the vessels it operates,” commented Simon Sundboell, CEO and founder of eeSea.

In practice how this will work out remains to be seen, particularly when the new Gemini partners release their preliminary schedules in the third quarter. [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 | JAS Newsflash

[1] https://www.freightnews.co.za/article/cape-town-port-needs-urgent-reform

[2] https://www.freightnews.co.za/article/south-africas-logistics-sector-precipice-saaff

[3] https://www.freightnews.co.za/article/port-durban-records-afcfta-first-south-africa

[4] https://theloadstar.com/eu-ets-the-polluter-pays-but-the-price-must-be-more-transparent/

[5] https://theloadstar.com/dock-workers-down-under-end-strike-at-dp-world/

[6] https://www.freightnews.co.za/article/steady-decline-schedule-reliability

[7] https://theloadstar.com/spot-rates-ease-as-red-sea-diversions-become-routine/

[8] https://theloadstar.com/can-one-yang-ming-and-hmm-compete-without-a-new-alliance-partner/

Please contact your Inter-Sped representative with any urgent queries or freight needs. We continue to monitor the freight world developments closely, and will be in contact with you for updates that concern you.

 

Best Regards

Jennifer & The Inter-Sped Team