Good Day Clients & Partners,
This week’s 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
Air Freight: On the import side, peak is in gaining pace with demand for space on the increase – as always we encourage all our customers & partners to start prebooking shipments as far in advance as possible.
Sea Freight: Strong winds continued to affect all the main South African ports.
South Africa to NWC/UK/West Mediterranean – MSC Vessels omitting Coega Port
MSC no longer accept to co-load any type of lithium batteries with other dangerous cargo in the same container to safeguard public/crew/equipment and vessels.
DURBAN
The port has experienced windy weather during the week.
- Pier 1 : 8-9 days delay
- Pier 2 : 9-16 days delay
- Durban Point : 3 days delay
CAPE TOWN
The port has experienced strong winds during the week.
- CTCT : 2-3 days delay
- MPT : 1-2 days delay
PORT ELIZABETH
The port has experienced strong winds during the week.
- PECT : 4-6 days delay
- NCT : 6-10 days delay
AFRICA & INDIAN OCEAN ISLANDS
Sea Freight: East African services ex-South Africa remain under pressure as MSC no longer sailing directly from Durban, resulting in longer transit times & Messina only sail once monthly, Hapag Lloyd offers service however with a longer transit routing via Jebel Ali.
The East African ports of Dar-Es-Salaam and Djibouti both experiencing increased port congestion.
Tema Port is experiencing port congestion which affects many other West African destinations that tranship through this port.
Air Freight: Most services running smoothly. Notable exceptions:
Air France is no longer servicing Ougadougou, Burkina Faso, Bamako, N’djamena.
ANGOLA
- Berthing delays of 6 days experienced at Luanda port.
GHANA
- Berthing delays of 2 days experienced at Tema port.
IVORY COAST
- Berthing delays of 4 days experienced at Abidjan port.
KENYA
- Berthing delay of 2 days experienced at Mombasa port.
MAURITIUS
- Berthing delays of 3 days experienced at Port Louis.
MOZAMBIQUE
- Berthing delays of 8 days experienced at Maputo port.
NAMIBIA
- Berthing delays of 3 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 7 days experienced at Dar es Salaam port. High levels of congestion continue to be experienced at this port.
NORTH AMERICA
Air Freight: Operations are running smoothly, this despite strong demand which is set to continue for the remainder of the year.
Sea Freight: Vessel scheduling amendments are on the increase – impacting both import and export services to and from the USA – With many changes only being advised last moment.
Please see more updates under USA.
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 2 days experienced at this port.
USA
The USA have seen their peak season start much earlier than usual in preparation for the potential strike and the bulk of the import volume has come in already for the year-end shopping holiday season.
No agreement has been reached between the Labor Unions and the USMX (United Stated Maritime Alliance).
With the US Presidential Election scheduled on November 5th, the Labor Unions are hoping for the demands be approved to avoid a strike.
See below multiple articles providing an update on the situation:
Assessing the potential of a port strike – Supply Chain Management Review (scmr.com)
‘We’ll shut them down’: Port union near strike, cites contract impasse (cnbc.com)
US Port Workers Meet on Wages, Issue Fresh Strike Threat (msn.com)
Port union voices unanimous support for strike, escalating U.S. supply chain fears (msn.com)
US Port Talks Kick Off in Effort to Avoid Strike | Transport Topics (ttnews.com)
US East Coast ports union meets over wage demand, preps for possible strike | Reuters
Terminals Updates:
- New York/New Jersey – Vessel waiting time is up to 3 days. One waterside stack at PLB Bayonne is out of service until next week. There is minimal impact on vessel operations expected.
- Norfolk – Vessel waiting time is up to 4 days. Two cranes reported out of order with no significant impact on operations. Crane 15 is expected to return to service by September 7, 2024.
- Charleston – Vessel waiting time is up to 9 days.
- 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.
- Oakland – Vessel waiting time is up to 3 days.
- Los Angeles/Long Beach – Vessel waiting time is up to 3 days.
- Seattle – Vessel waiting time is up to 4 days. T18 will be closed on September 13, 2024. T18 will now be open on August 30, 2024.
Vessel Scheduling Amendments (information below is correct at time of publication date):
- MSC Carmen – with voyage 430S/434N will now call Cape Town Multi-Purpose Terminal ahead of Coega call.
LATIN AMERICA
ARGENTINA
- Berthing delays of 9 days experienced at Buenos Aires port.
BRAZIL
- Berthing delays of 4 days experienced at Santos port.
- 14 days berthing delay Paranagua.
MEXICO
- 3 days berthing delay at Veracruz and Manzanillo.
NORTH WEST CONTINENT, UNITED KINGDOM, MEDITERRANEAN
Air Freight: Export services into Europe: All running smoothly.
Import services from Europe: With EU Summer holidays behind us and peak season now in full swing – Increased demand and space constraints expected to increase
Sea Freight: Vessel schedule delays continue to impact the region and EU Summer holidays has resulted in the usual reduction of staff at many key ports and terminal.
Predictions are that peak season will start early in the EU as many importers & exporters aim to navigate the multiple disruptions faced by Sea Freight supply lines.
BELGIUM
- Berthing delays of 2 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 4 days experienced at Genova port and 6 days at La Spezia port.
NETHERLANDS
- Berthing delays of 6 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 4 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):
- ONE Reassurance – with voyage 243N will omit its Cape Town call. The imports will discharge in Coega to connect to the available SAECS vessel.
- MSC Dardanelles – will phase into the NWC to South Africa service after calling South Africa on the Ingwe service.
INDIAN SUB-CONTINENT & MIDDLE EAST
Sea Freight: Export services to the region are running relatively smoothly. However Import services out of the Indian Sub-Continent are under pressure as capacity constraints remain. As always, we ensure we review all possible services to ensure we achieve the best timelines possible.
Capacity constraints continue to be experienced on services out of the Indian Sub-Continent. This may lead to different transit times being achieved compared to what has been published.
Air Freight: Export & import services are for the main part running very smoothly
However, in the Middle East we are seeing an increasing number of airlines cancel or suspend their services to Israel and/or Lebanon and some other neighbouring territories.
INDIA
- Berthing delays of 3 days experienced at Nhava Sheva port and 1 day at Chennai port.
UNITED ARAB EMIRATES
- Berthing delays of 2 days experienced at Jebel Ali port.
Vessel Scheduling Amendments (information below is correct at time of publication date):
- CMA CGM Valparaiso – with voyage 436N will call point terminal to perform discharge and will thereafter shift to DCT, In case berth at Pier 2 becomes available, vessel will complete remaining discharge at this terminal.
ASIA PACIFIC (Including Oceania)
China’s Golden week holiday’s are approaching, which also means a high demand for space in the weeks prior and post. Upcoming holidays in China are their Mid-Autumn festival from 15-17 September and then the week of 1 – 7 October for their National Day.
In order to avoid disruptions within your supply chain, please ensure that you communicate with one of our team soonest so that we may advise accordingly.
Sea Freight: The port of Singapore remains heavily congested – This impacting services (both imports and exports) that are routed via Singapore.
In a drive to avoid a fall in container rates, Many shipping lines have blanked a number of export sailings from Asia – This prior to the Chinese national holiday in early October. The Blank sailings will likely result in upward rate pressure.
Air Freight: Demand for space coming out of the Far East remains elevated but manageable with all service running smoothly. Export space into the Far East is also running very smoothly.
HONG KONG
- No berthing delays 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 delay of 1 day experienced at this port.
QINGDAO
- Berthing delays of 3 days experienced at this port.
SHANGHAI
- Berthing delays of 2 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 delays of 2 days experienced at this port.
XINGANG
- No berthing delays experienced at this port.
SINGAPORE
- Berthing delay of 1 day being experienced at this port. FCL containers transshipping in Singapore have expected delays of 2-3 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.
Vessel Scheduling Amendments (information below is correct at time of publication):
- MSC Aino – will phase into the Ingwe to South Africa service after calling South Africa on the NWC service.
- MSC Shaula – on the INGWE service to South Africa will call Durban first and then proceed to Coega thereafter.
INDUSTRY NEWS
Bad weather continues to bear down on SA ports
04/09/2024
Container movement at South African ports has continued to decline for the second consecutive week, according to the latest Cargo Movement Update. The average daily throughput decreased from 6,747 containers last week to 6,537 containers this week, following a previous drop from 7,036 containers. This decline in productivity is primarily attributed to adverse weather conditions, which have severely impacted port operations across the country.
The ports of Cape Town, Durban, and those in the Eastern Cape all experienced significant disruptions due to strong winds, high swells, and equipment breakdowns. Over 50 operational hours were lost at Eastern Cape ports alone. Additionally, the Port of Richards Bay saw increased congestion on public roads due to ore throughput improvements leading to more truck traffic. The situation has become so severe that at the Port of Durban, a container vessel named Fayston Farms had to wait at anchor for approximately 26 days before finally being able to berth. Source
East coast port strike threat grows – and Canadian rail dispute still lingers
02/09/2024
North American shippers face continued challenges as one labor dispute ends and another begins. The United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) have filed a notice of dispute with the Federal Mediation & Conciliation Service, indicating potential issues in negotiating a new master contract for east coast port workers. The ILA is preparing for possible strike action from October 1, which could significantly impact shipping operations and costs. Industry experts warn that this situation could lead to increased delays and higher costs for shippers, while potentially benefiting carriers through longer shipping routes and higher rates.
Meanwhile, although a recent rail strike in Canada was quickly resolved through government-enforced binding arbitration, the situation remains uncertain. The Teamsters Canada Rail Conference (TCRC) union has challenged the labour minister’s decision in four separate filings to the Federal Court of Appeal. The union argues that this intervention sets a dangerous precedent that undermines workers’ rights to collective bargaining. As these labor disputes continue to unfold, the North American shipping industry faces ongoing uncertainty and potential disruptions in both maritime and rail transportation sectors. Source
US East Coast Ports Union Meets Over Wage Demand, Preps for Possible Strike
04/09/2024
The International Longshoremen’s Association (ILA), representing 45,000 workers at major East Coast and Gulf Coast ports, is preparing for potential strike action on October 1 as negotiations with the United States Maritime Alliance (USMX) have reached an impasse. The union is seeking significant wage increases and addressing concerns about automation, healthcare, and retirement benefits. Two days of meetings starting Wednesday will review wage demands and prepare for possible strike action. The current six-year contract expires on September 30, and ILA President Harold Daggett has warned of a walkout if a new agreement isn’t reached by then.
A work stoppage would affect key ports like New York/New Jersey, Houston, and Charleston, potentially disrupting supply chains ahead of the holiday season and U.S. presidential elections. Industry experts warn of serious ripple effects on global supply chains, which are already under pressure from other factors. While some shippers have taken precautions by bringing in goods early, concerns about a strike are growing. Various retail and industry associations are urging both parties to return to negotiations, with the National Retail Federation calling for government support to facilitate talks and prevent economic disruption. Source
Bad weather causes chaos at Indian ports, and cargo backlogs build
02/09/2024
Container flows from India’s west coast ports are facing severe disruptions due to extreme weather conditions and existing capacity pressures. Mundra Port, a major hub for India’s containerized trade, has been particularly affected by flooding that brought shipping operations to a standstill for several days. This has resulted in significant cargo backlogs and vessel delays, with port authorities now prioritizing export-centric vessel calls to manage the situation. The disruptions at Mundra are having ripple effects throughout the region, with some vessels skipping the port or diverting to other locations. It may take a week or longer for cargo flows to improve, depending on weather conditions.
The issues at Mundra are also impacting other ports in the region, such as Nhava Sheva (JNPA). Truckers and freight station owners at JNPA are experiencing escalating cargo gate-in/out delays, exacerbated by recent road traffic restrictions. This has led to significant disruptions in supply chains, with exports getting ‘shut out’ and imports facing delays of 12 to 24 hours. Despite these challenges, Nhava Sheva has seen a significant increase in volume, hitting a new monthly high in August with throughput reaching 639,336 TEU, up from 555,270 TEU in the same month last year. The situation highlights the ongoing pressures faced by India’s port infrastructure as it deals with increasing trade volumes and environmental challenges. Source
Services set to shut down as ‘super typhoon’ heads for South China
05/09/2024
China is preparing for the arrival of ‘Super Typhoon’ Yagi, potentially the strongest storm to hit the country in nearly a decade. After passing through the Philippines earlier this week, Yagi has doubled in strength, now carrying sustained winds of 210kph near its center. The typhoon is expected to make landfall between Qionghai and Dianbai tomorrow, primarily affecting the southern provinces of Guangdong and Hainan. As a precautionary measure, Hainan has upgraded its emergency response to the highest level, with train and ship operators suspending operations.
The super typhoon is anticipated to cause significant disruptions to air and ocean port operations in the affected regions. Major ports like Haikou, Sanya, Zhanjiang, Beihai, and Haiphong are likely to face closures, while logistics hubs further north, such as Shenzhen and Hong Kong, may experience heavy rains and some flight cancellations. However, major disruptions are not expected in these northern areas. The Hong Kong Observatory plans to issue its third-highest typhoon signal at 6:20 pm, which will lead to the closure of many businesses and reduced transport services. After hitting China, Yagi is expected to continue on to northern Vietnam, Laos, and Thailand over the weekend, potentially causing significant flooding in these areas. Source
Consumers will have to pay for green shipping
02/09/2024
According to new research by DNV, complying with the International Maritime Organization’s (IMO) 2050 carbon-neutral target is likely to more than double container shipping costs. The study predicts that shipping costs could increase by 91-112% for container vessels, 70-86% for tankers, and 69-75% for bulk carriers. These increased costs are due to the necessary adoption of new technologies and fuels for decarbonization, which will ultimately be passed on to consumers through higher prices for goods. The IMO’s targets include a 20% emissions reduction by 2030, a 70% reduction by 2040, and full-scale decarbonization by or around 2050.
To meet these goals, the shipping industry is seeing a trend towards larger ships capable of running on multiple fuel types, including liquefied natural gas (LNG), methanol, and liquefied petroleum gas (LPG), with ammonia fuel capability emerging. DNV estimates that operational and technical energy efficiency measures could reduce shipping fuel consumption by 4-16%. However, significant challenges remain, including the need for increased global carbon-neutral fuel production and the development of carbon capture and storage infrastructure. The report emphasizes that meeting the IMO’s 2050 zero-emission goal requires strategic investments and smart decision-making today, despite the complexity and uncertainty surrounding the future of a fully decarbonized global fleet. Source
Singapore still world’s top shipping centre
02/09/2024
Singapore has maintained its position as the world’s top shipping center for the eleventh consecutive year, according to the Xinhua-Baltic International Shipping Centre Development Index (ISCDI). The index, which ranks 43 port cities and maritime centers worldwide, shows stability in the top positions, with London, Shanghai, Hong Kong, Dubai, and Rotterdam remaining in the top six. The rankings are based on a comprehensive set of metrics, including maritime services, port infrastructure, business climate, and adherence to global environmental regulations. Athens/Piraeus and Ningbo Zhoushan have moved up one place each, while Hamburg has dropped two spots to ninth place, and New York/New Jersey rounds out the top 10.
The ISCDI report highlights that despite recent turbulence in global supply chains and commerce, ports continue to demonstrate robust and positive growth, providing stability for the shipping industry. The index also provides an in-depth analysis of the top 20 ports, with Tianjin being the only new entry at 19th place. An international shipping center, as defined by the report, is characterized by excellent port facilities, advanced logistics systems, a key geopolitical location, and highly efficient shipping services as its core driver. These centers play crucial roles in local economies and global supply chains, emphasizing their continued importance in the maritime landscape. Source
Asia-Europe spot rate decline quickens – ‘the market has turned’
06/09/2024
Container spot freight rates between Asia and Europe have experienced a significant decline, with both Asia-North Europe and Asia-Mediterranean trades seeing double-digit drops. Various indices, including Drewry’s World Container Index and Xeneta’s XSI, show substantial decreases in spot rates for key routes such as Shanghai-Rotterdam and Shanghai-Genoa. The main issue for carriers appears to be declining demand, as evidenced by Container Trade Statistics data showing a decrease in shipments from the Far East to Europe in July. This decline is particularly pronounced in certain regions, with North Asia to North Europe volumes down 7.6% month-on-month and 14.2% year-on-year.
The transpacific routes have also seen weakening spot rates, albeit to a lesser extent than the Asia-Europe trades. Despite predictions of increased traffic and rates due to the threat of a dockers strike on the east and Gulf coasts, neither has materialized. In fact, there are indications of a potential rate war breaking out on the eastbound transpacific trade. Carriers are responding to the declining demand by implementing blank sailings, with THE Alliance member Hapag-Lloyd announcing the cancellation of several Asia-North Europe and Asia-Mediterranean sailings in the coming weeks. The longer transit times via the Cape of Good Hope have also impacted the peak season cargo loading schedule, contributing to the current market softening. Source
SOURCES & REFERENCES
SACO CFR | Hapag Lloyd | Maersk | MSC | Transnet | The LoadStar Publications | gCaptain.com | Shipco Transport | Splash247.com | Freightnews | 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.
JJ & The Inter-Sped Team
