Freight & Logistics Update 13 November 2024

SOUTH AFRICA

Air Freight

Imports: there has been an increase in peak season volumes, resulting in lengthened transit times, increased congestion, and in some cases, higher freight rates. We expect this trend to continue as we head towards December.

Exports: Increased demand being felt to most destinations – resulting in increased freight rates and lengthened transit times.

Sea Freight

Strong winds continued to affect all the main South African ports.

Exports: There has been a massive surge in peak season volumes. Pre-booking exports well in advance of sailing date is strongly recommended.

Durban Terminal is experiencing serious operational delays across all operational sectors (Including Waterside, Landside and Rail side operations).

Port Updates

DURBAN

The port has experienced windy weather during the week.

Pier 1 : 3-5 days delay
Pier 2 : 9-14 days delay
Durban Point : 3 days delay

CAPE TOWN

The port has experienced windy weather during the week.

CTCT : 4-6 days delay
MPT : 0-2 days delay

PORT ELIZABETH

The port has experienced windy weather during the week.

PECT : 1-3 days delay
NCT : 3-5 days delay

AFRICA & INDIAN OCEAN ISLANDS

Air Freight

Exports: Increased demand is leading to increased rate pressure and space shortages – pre-booking is advised.

Air France is no longer servicing: Ouagadougou, Burkina Faso, Bamako, N’djamena, Niamey.

Sea Freight

Exports: Scheduling to the region is erratic at present resulting in multiple changes to published schedules. We will continue to monitor the situation and provide updates accordingly.

East African ports are experiencing congestion however no severe impact noted.

Tema Port is experiencing port congestion which affects many other West African destinations that tranship through this port.

Mozambique

Trade between South Africa and Mozambique is slowly returning to normal after the Lebombo border crossing (the main border crossing between Mozambique and South Africa and one of the busiest border points in Southern Africa) was reopened over the weekend. Some activities in the port of Maputu were also resumed.

However the situation remains tense as the opposition leader Mondlane has called for more protest actions and key border crossing and ports. There are also reports of additional safety measures by way of escorts being introduced for Cross Border Hauliers moving goods from Mozambique to South Africa on the N4 highway.

NORTH AMERICA

Air Freight

Increased peak season demand continues with carries experiencing increased congestion resulting in lengthened transit times.

Sea Freight

Increased Peak Season demand along with frequent Vessel scheduling amendments continue continue to add pressure for both imports and exports to and from North America.

CANADA

Vancouver and Prince Rupert Ports: The BC Maritime Employers Association (BCMEA) issued a coastwide lockout on November 4, 2024, in response to a 72-hour strike notice from ILWU 514, impacting operations at these ports.

Montreal Port: The Maritime Employers Association (MEA) announced a work stoppage for CUPE 375 starting Sunday, November 10, 2024, at 9:00 pm. This affects all container terminals, with no longshore work at Termont and Montreal Gateway Terminals. Trucking and rail services will also be halted from November 8 at 3:00 pm until at least November 12 at 7:00 am.

MONTREAL

Berthing delays of 3 days experienced at this port.

TORONTO

Berthing delays of 2 days experienced at this port.

VANCOUVER

Berthing delays of 4 days experienced at this port.

USA

International Longshoremen’s Association (ILA) Negotiations – The ILA and the USMX will resume Master Contract discussions in November 2024, to discuss all outstanding issues to reach a new agreement. The two sides extended the Master Contract until 15 January 2025, and reached a tentative agreement on wages that is contingent on bargaining all open issues.

Terminals Updates:

NEW YORK / NEW JERSEY – Vessel waiting time is up to 3 days. APMT will be moving / decommissioning cranes in preparation for arrival of new cranes next week which will limit berth availability. All terminals except APMT are Closed for Veterans Day, November 11, 2024.
NORFOLK– Vessel waiting time is up to 1 day. One crane is out of service.
CHARLESTON – Vessel waiting time is up to 4 days.
SAVANNAH – Vessel waiting time is up to 4 days.
MIAMI – Vessel waiting time is up to 6 days.
HOUSTON – Vessel waiting time is up to 3 days.
OAKLAND – Vessel waiting time is up to 3 days.
LOS ANGELES/ LONG BEACH – Vessel waiting time is up to 2 days.
SEATTLE – Vessel waiting time is up to 6 days. T18 will be closed on November 11 and 22, 2024.

LATIN AMERICA

Although cargo is moving and services are running relatively smoothly, peak season volume increases are being felt. It’s likely we will see an increase in cargo off-loads & schedule delays.

ARGENTINA

Berthing delays of 10 days experienced at Buenos Aires port.

BRAZIL

Berthing delays of 2 days experienced at Santos port.

MEXICO

Berthing delays of 3 days experienced at Altamira and Manzanillo ports and 2 days at Veracruz port.

NORTH WEST CONTINENT, UNITED KINGDOM, MEDITERRANEAN

Air Freight

Exports: There has been a surge in demand in services into Europe, we advise pre-booking where possible.

Imports: Increased demand and space constraints expected to increase, advise pre-booking where possible.

Sea Freight

Peak season demand continues to be felt, sailing schedules frequently being delayed or changed and transit times on the increase. As always, we recommend pre-booking as far in advance as possible.

Spain

While port operations have resumed at the port of Valencia, schedule integrity may be compromised as the region still feels the negative impact of the floods.

BELGIUM

Berthing delays of 3 days experienced at Antwerp port.

FRANCE

Berthing delays of 3 days experienced at Le Havre port.

GERMANY

Berthing delays of 6 days experienced at Hamburg port and 1 day at Bremerhaven port. Terminal CTA is experiencing backlog and congestion. Terminal with berthing restrictions due to crane dismantling. CTB Terminal with berth congestion as all main liner berth are fully occupied into beginning of November.

ITALY

Berthing delays of 2 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 delay of 1 day experienced at Gothenburg port.

TURKEY

Berthing delays of 3 days experienced at Istanbul port.

UNITED KINGDOM

Berthing delays of 2 days experienced at London Gateway port.

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

Santa Rita –Cape Town northbound call for this vessel has been re-instated.

INDIAN SUB-CONTINENT & MIDDLE EAST

Air Freight

Exports & Imports: Services are for the most part running smoothly. However, in the Middle East, we continue to see airlines suspend services into Israel, Lebanon and other neighbouring territories.

Sea Freight

Imports: While There has been some improvement in capacity out of the Indian Sub-Continent, peak season demand remains high with schedule changes and blank sailings a common occurance.

India

New terminal operating systems at Kattupalli and Ennore in South India have experienced glitches in connecting vessel, yard, and gate operations, disrupting the supply chain and causing delays for both imports and exports.

INDIA

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

UNITED ARAB EMIRATES

Berthing delays of 1 day experienced at Jebel Ali port.

SRI LANKA

Berthing delays of 2 days being experienced at Colombo port. FCL containers transshipping in Colombo have expected delays of 2-3 weeks.

ASIA PACIFIC (Including Oceania)

Air Freight

Imports: Increased peak season demand has resulted in congestion, elevated freight rates and lengthened transit times out of the Far East. As always we are working closely with the carriers to ensure the best possible outcomes. On the Export side all operations are running smoothly.

Sea Freight

Freight movements out of the Far East are running relatively smoothly, considering we are in peak season.

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. FCL containers transshipping in Tanjung Pelepas have expected delays of 2 weeks.

NANSHA

Berthing delay of 1 day experienced at this port.

NINGBO

Berthing delays of 3 days experienced at this port.

QINGDAO

Berthing delays of 2 days experienced at this port. Intermittent port closure experienced due to strong winds.

SHANGHAI

Berthing delays of 3 days experienced at this port.

SHEKOU / YANTIAN

Berthing delays of 2 days experienced at Shekou port and no delays at Yantian port.

XIAMEN

Berthing delays of 5 days 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. FCL containers transshipping in Singapore have expected delays of 2 weeks.

TAIWAN

Berthing delays of 2 days experienced at Kaohsiung port. Some offices in Taiwan were closed on 31st October 2024 due to typhoon weather being experienced.

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

Breakdowns continue to hamper operations at Transnet

06/11/2024

Container throughput at South African ports showed a slight improvement, increasing from 10,691 to 11,046 TEUs daily, according to the latest report by the South African Association of Freight Forwarders and Business Unity SA. However, Transnet Port Terminals (TPT) continues to face significant operational challenges, with port operations being hampered by poor weather conditions, congestion, and widespread equipment breakdowns, particularly affecting straddle carriers in ports like Cape Town and Durban.

The equipment issues are reportedly linked to TPT’s reliance on Chinese-made machinery, which, while cost-effective initially, has proven problematic due to spare parts availability and quality concerns. According to an anonymous industry source, this situation stems from directives to favor Chinese equipment due to trade partnership considerations. In response, TPT is implementing mitigation measures, including extended quayside hauler usage and reach stacker operations for import evacuation, while their engineering team works to improve equipment operational capacity. Source

Vessel berthing at Durban delayed for almost a month

08/11/2024

The vessel Dolphin II, which arrived at the Port of Durban on October 29, is scheduled to wait until November 22 to berth, according to Transnet’s regional corporate affairs manager Simphiwe Mpanza. While this 24-day delay has been criticized as excessive even by Transnet’s standards, Mpanza explained that berthing plans are typically shared 21 days in advance and updated daily, noting that six days were lost due to recent bad weather in Durban. Although the terminal aims to potentially reduce this waiting period, no guarantees could be made about an earlier berthing date. Source

No cargo movement at Port of Maputo as election unrest spirals

07/11/2024

The Port of Maputo and Matola bulk commodities terminal have suspended operations due to election unrest in Mozambique, with no cargo being received and minimal movement in the heavily militarized streets of Maputo. The situation has been exacerbated by the temporary closure of the Lebombo Border Post on the N4 Maputo Corridor due to public violence in Ressano Garcia, causing significant traffic gridlock and disrupting transport operations. The unrest stems from allegations by the opposition party Podemos that the ruling party Frelimo rigged the October 9 election, leading to protests that have resulted in at least 24 deaths.

The Border Management Authority (BMA) has maintained the closure of the Lebombo border, allowing only import trucks that have completed both Mozambican and South African declaration processes to proceed, while export cargo remains halted due to safety concerns and widespread looting. This disruption is causing significant financial losses, with estimates suggesting that each hour of delay costs around R1,000 per load of ore. Authorities are advising clients to consider alternative routes while they await updates from the BMA regarding the border situation. Source

Canada’s ports close as strike hits

06/11/2024

Canadian port operations have come to a halt as dockworkers began striking on Monday, particularly affecting the major ports of Vancouver and Prince Rupert in British Columbia. The dispute between the International Longshore and Warehouse Union Local 514 (ILWU Local 514) and the B.C. Maritime Employers Association centers on wages, working conditions, and concerns about port automation, with the situation escalating when employers locked out workers hours after the initial strike began. The Port of Montreal is also experiencing partial strikes blocking 40% of container traffic.

The strike is significantly impacting both exports (including potash, coal, pulse crops, beef, pork, and forestry products) and imports of manufacturing components from Asia and Europe, though bulk-grain shipments are exempt under labor rules. While union President Frank Morena has accused employers of overreacting and expressed readiness to resume talks, industry groups, including the Mining Association of British Columbia, are urging federal government intervention, noting that the mining sector is particularly vulnerable having recently experienced railway strikes. Source

What will Trump’s win mean for the logistics industry?

06/11/2024

According to Ti’s CEO John Manners-Bell, Donald Trump’s claimed victory in the US presidential election could have significant implications for the logistics industry. Trump’s policies are expected to benefit domestic US logistics services, particularly through his focus on oil production (potentially reducing prices to $40-50 per barrel), reduced regulations, and lower corporate taxes. These measures could boost the trucking industry and stimulate consumer demand, while his automotive policies could benefit logistics companies by potentially delaying the transition to electric vehicles, as traditional combustion engine manufacturing is more logistics-intensive.

However, Trump’s proposed tariffs, especially on Chinese imports, could negatively impact international shipping, air cargo, and freight forwarding services, although this might be partially offset by increased US economic growth. The policy shift could lead to more reshoring of manufacturing to the USA and near-sourcing from Mexico, benefiting US warehousing but potentially straining international trade relationships, particularly with Europe. Additionally, Trump’s stance on climate change, including potential elimination of green energy subsidies and resistance to carbon emission reduction agreements, could lower costs for shipping lines and air cargo carriers while potentially negatively impacting US intermodal and rail services. Source

How to avoid ‘a wave of regulatory pain’ from Fuel EU Maritime rules

05/11/2024

The upcoming FuelEU Maritime regulation, effective January 1, requires ships to meet specific greenhouse gas (GHG) intensity targets for energy usage, with compliance reporting beginning April 30, 2026. According to Navtor’s director of performance Jacob Clausen, companies need to start preparing now by implementing digital solutions to track their fleet’s GHG intensity, as the regulation will apply to 100% of energy used on voyages and port calls within the EU, and 50% of voyages in and out. Companies will need to either meet these targets or pay penalties to maintain compliance.

While some companies are gaining clarity about the regulation after the summer break, many are still struggling to establish proper internal processes and data prerequisites, according to Friederike Hesse of zero44. She notes that companies are simultaneously dealing with EU ETS compliance while trying to understand FuelEU requirements. Clausen emphasizes that traditional spreadsheet-based tracking won’t be sufficient for the complex data management required, recommending automated systems to ensure compliance and gain insights into energy consumption and performance, which could ultimately provide both environmental and financial benefits. Source

Typhoon Kong-ray creates congestion at Shanghai, Ningbo and Kaohsiung

05/11/2024

Major Asian container ports Shanghai, Ningbo, and Kaohsiung are experiencing significant congestion following Typhoon Kong-Rey, which hit Taiwan last Thursday and was the strongest typhoon to affect the island since 1996. Kaohsiung port is facing 100% delays for incoming container ships, while Shanghai and Ningbo, which temporarily halted operations on Friday, are experiencing delays of 82% and 85% respectively, with vessels waiting several days to berth. The situation has created elevated vessel queues in the Taiwan Straits and Shanghai/Ningbo area, affecting hundreds of ships scheduled for the coming week.

According to Linerlytica, while the backlog is expected to clear in the coming days, shipping schedules have been badly disrupted, and more delays are anticipated. This congestion comes at a challenging time for carriers, as they may struggle to maintain recent rate hikes due to weak cargo demand during the seasonally slow November period. Although capacity utilization increased in late October, this was primarily due to post-Golden Week blanked sailings and front-loading ahead of November rate increases, rather than sustained demand improvement. Source

Acquisition marks significant development in maritime industry

07/11/2024

Hapag-Lloyd, Germany’s leading container shipping company, has announced its acquisition of Hamburg-based ship management firm Hamburger Lloyd, which previously managed 29 vessels for Hapag-Lloyd. The acquisition coincides with Hapag-Lloyd’s significant fleet expansion plans, including orders for twenty-four new vessels from Chinese shipbuilders – twelve 16,800 TEU and twelve 9,200 TEU dual-fuel LNG vessels – to be delivered between 2027 and 2029, demonstrating the company’s commitment to strengthening its position in the global shipping market.

Meanwhile, the container shipping industry is showing signs of cooling after a strong early peak season, with Container Trade Statistics (CTS) reporting a 5.9% global decline in September volumes compared to August. The Far East-Europe trade saw the sharpest drop at 13.5%, while the transpacific eastbound trade contracted by 9.1%. Despite these declines, year-on-year volumes remain over 2% higher, with the transatlantic Europe-North America route and Middle East/India-Far East trade showing growth against the trend, as the market begins to stabilize following disruptions from Red Sea conflicts and US pre-election cargo surges. Source

Container volumes dip sharply month on month

08/11/2024

According to Container Trades Statistics (CTS) Limited, global container shipments experienced a significant seasonal decline in September, dropping 5.9% from August to 15.2 million TEUs, the lowest since April. While this decline follows a historical pattern dating back to 2012, it was steeper than the 2.5% drop seen in September 2023, though not as severe as the 8.8% fall in 2022. Despite the monthly decrease, September’s global total was still 2.3% higher than the same month last year, contributing to a year-to-date growth rate of 6.3%, with North America leading regional growth at 10.3%.

The focus is now shifting to the US market following Donald Trump’s reported presidential election victory, as his campaign promises included significant tariffs on US imports. According to Drewry’s senior manager Simon Heaney, there is considerable uncertainty regarding the implementation timeline, magnitude, and scope of these potential tariffs, though China is expected to be most affected. This situation is creating additional uncertainty in the US container market, which is already preparing for possible port labor disruption on the East Coast and Gulf in January, with a notable divide between investors who view the tariff threats as negotiating tactics and voters who expect actual implementation. Source

Rates reflect strong demand bounce and call for more ocean capacity

08/11/2024

Despite traditionally weak seasonal demand, spot rates on Asia-Europe trade routes continue to rise, with significant increases seen in both Drewry’s World Container Index (WCI) and Xeneta’s short-term XSI. The Shanghai-Rotterdam rates grew 16% to $3,954 per 40ft, while Shanghai-Genoa rates jumped 21% to $4,399 per 40ft, with Maersk noting stronger-than-expected demand following China’s Golden Week holiday. This upward trend is being supported by carrier capacity management and ongoing port congestion issues.

North European ports are particularly struggling with backlogs, as Hamburg’s port modernization program continues to impact operations, with HHLA’s Altenwerder terminal reaching 100% storage capacity. Additional challenges include heavy fog in Rotterdam potentially causing longer vessel queues, and maintenance work in Antwerp expected to continue until late December, leading to increased yard density. Meanwhile, transpacific and Asia-US east coast trades remained quiet as markets awaited US election results, though renewed activity is expected following Donald Trump’s reported victory. Source

SOURCES & REFERENCES

Again, the Inter-Sped team is here for all freight and Logistics needs – We will always do our best for you and keep you posted on your shipments progress on an individual shipment level.

JJ & The Inter-Sped Team

Freight & Logistics Update 13 November 2024

SOUTH AFRICA

AFRICA & INDIAN OCEAN ISLANDS

NORTH AMERICA

LATIN AMERICA

NORTH WEST CONTINENT, UNITED KINGDOM, MEDITERRANEAN

INDIAN SUB-CONTINENT & MIDDLE EAST

ASIA PACIFIC (Including Oceania)

NEWS ARTICLES

SOURCES & REFERENCES

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