Good Day Clients & Partners,
Please find below the Freight & Logistics Update for the week. As always, the Inter-Sped team are ready to go the extra mile for you – so don’t hesitate to contact us.
SOUTH AFRICA
South African ports are still experiencing significant delays – Factors include bad weather & equipment shortages. See port update for more info. Hazardous cargo acceptance on exports proves challenging as carriers prioritize loading alternative cargo types due to ongoing reefer season. Please expect delays in obtaining hazardous approval from carriers.
DURBAN
The port has experienced windy weather during the week. Appointment slots are constrained due to high volume of containers moving through Durban terminals.
- Pier 1 : 12 days delay
- Pier 2 : 14-19 days delay
- Durban Point : 3 days delay
CAPE TOWN
The port has experienced strong winds during the week. Normal volumes of traffic and operations continue as per normal. IDMs are moving as scheduled.
- CTCT : 5-6 days delay
- MPT : 1-2 days delay
PORT ELIZABETH
The port has experienced windy weather during the week. CFS has normal volumes of traffic and operations continue as per normal. IDMs are moving as scheduled.
- PECT : 1-3 days delay
- NCT : 1-3 days delay
AFRICA & INDIAN OCEAN ISLANDS
Sea Freight: East African services ex-South Africa remain under as MSC no longer sailing directly from Durban, resulting in longer transit times & Messina only sail once monthly.
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 4 days experienced at Luanda port.
GHANA
- Berthing delays of 3 days experienced at Tema port.
IVORY COAST
- Berthing delays of 2 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 4 days experienced at Walvis Bay port.
NIGERIA
- Berthing delays of 2 days experienced at Apapa port.
SENEGAL
- Berthing delays of 2 days experienced at Dakar port.
TANZANIA
- Berthing delays of 11 days experienced at Dar es Salaam port. High levels of congestion continue to be experienced at this port.
NORTH AMERICA
Air Freight: Demand for Airfreight is estimated to have increased by approx 6.55 in quarter 2 – this mostly off the back of increased sea to air conversions due to ongoing challenges in Sea Freight supply chains. Demand for space for the 2 nd half of the year is forecast to remain strong.
Sea Freight: On the Sea Freight side frequent vessel schedule amendments in South Africa can have an impact on planning and must be monitored closely.
CANADA
Montreal
- Berthing delays of 2 days experienced at this port.
Toronto
- Berthing delays of 5 days experienced at this port.
Vancouver
- Berthing delays of 5 days experienced at this port.
USA
Terminals Updates:
- New York/New Jersey – Vessel waiting time is up to 3 days. Truck line port congestion continues. 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 2 days. Berth repair project is wrapping up in 2 weeks.
- Charleston – Vessel waiting time is up to 1 day. Port closed for 2 days to inbound traffic due to Storm Debbie.
- Savannah – Vessel waiting time is up to 6 days. Port closed for 2 days to inbound traffic due to Storm Debbie.
- 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 2 days.
- Seattle – Vessel waiting time is up to 5 days. Extended waiting periods are due to high volumes of Import Rail along with lack of rail cars. Washington United Terminal and Husky are limiting their operations to 1 berth operation until further notice, due to lack of rail cars to evacuate Imports. They are also delaying startup operations on vessels and skipping shifts for the same reason, if needed. T18 will be closed August 9, 16, 23 and 30, 2024. Husky Terminal will have hoot gates on August 12,13,14 and 15, 2024.
Vessel Scheduling Amendments – information below is correct at time of publication:
- MSC Lorena – will perform a port swap and call Durban first. Vessel will also now call Coega instead of Port Elizabeth.
- Filotimo – vessel will now call Coega instead of Port Elizabeth.
- MSC Rosaria – with voyage 430N will omit Port Elizabeth and proceed to Cape Town after her Durban call.
LATIN AMERICA
All Air & Sea Freight services to and from the USA running relatively smoothly.
BRAZIL
- Berthing delays of 2 days experienced at Santos port.
NORTH WEST CONTINENT, UNITED KINGDOM, MEDITERRANEAN
Airfreight: Export services into Europe are running smoothly.
Import services out of Europe continue to be affected by the European Summer holidays.
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 3 days experienced at Antwerp port. 15/08 is a public holiday in Belgium but terminals will continue with waterside operations.
FRANCE
- Berthing delays of 2 days experienced at Le Havre port.
GERMANY
- Berthing delays of 3 days experienced at Hamburg port and 2 days at Bremerhaven port.
ITALY
- Berthing delays of 5 days experienced at Genova port and 9 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 2 days experienced at Gothenburg port.
TURKEY
- Berthing delay of 1 day experienced at Istanbul port.
UNITED KINGDOM
- Berthing delay of 1 day experienced at London Gateway port.
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.
https://www.reuters.com/business/aerospace-defense/airlines-suspend-flights-middle-east-tensions-rise-2024-08-08/
INDIA
- Berthing delays of 3 days experienced at Nhava Sheva and Chennai ports.
UNITED ARAB EMIRATES
- Berthing delays of 3 days experienced at Jebel Ali port.
ASIA PACIFIC (Including Oceania)
Sea Freight: The port of Singapore remains heavily congested – This impacting services (both imports and exports) that are routed via Singapore.
While there is still strong demand for space out of the Far East, we do feel there is a slight easing in pressure. As always, we make sure that all possible services are reviewed so that the best possible turn-around times are achieved.
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
- 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 delays of 2 days experienced at this port. Experiencing slight fog.
SHANGHAI
- Berthing delays of 2 days experienced at this port.
NINGBO
- Berthing delays of 3 days experienced at this port.
SHEKOU / YANTIAN
- Berthing delays of 1 day experienced at Shekou port and no delays at Yantian port.
XIAMEN
- Berthing delays of 2 days experienced at this port.
XINGANG
- Berthing delays of 3 days 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 delay of 1 day experienced at Kaohsiung port.
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 now omit Shanghai instead of Hong Kong. Shanghai imports will discharge in Hong Kong and connect to alternative services with the best possible transit time.
INDUSTRY NEWS
Port of DBN doing all it can to improve container movement
06/08/2024
The Port of Durban is facing challenges with container throughput due to straddle carrier capacity and breakdowns. Transnet Port Terminals (TPT) is implementing a new strategy to address this issue by using a hybrid model of straddle carriers and haulers. This approach aims to reduce wear and tear on straddle carriers by limiting their use to container stack arrangement, while haulers handle most of the quayside movement.
TPT is also working on improving equipment management and maintenance. They have ordered 20 new straddle carriers, with the first four expected to arrive in December. Additionally, TPT is collaborating with original equipment manufacturers to acquire institutional knowledge for better handling of equipment breakdowns. Despite these efforts, harbor carriers are growing impatient with the slow container movement and other issues affecting trade efficiency at the port.
The port is dealing with multiple challenges, including weather impacts and equipment breakdowns, which continue to affect container throughput. TPT claims to be actively engaging with industry associations to address concerns and reports some improvement in container movement. However, they acknowledge that there is still work to be done to fully resolve the ongoing issues at the Port of Durban. Source
Durban Port major road upgrades under way
07/08/2024
Transnet National Ports Authority (TNPA) is making progress on a major road rehabilitation project around the Port of Durban to address long-standing traffic congestion issues. The 24-month project, which began in September 2023, aims to improve access to port facilities and reduce delays caused by poor road infrastructure. So far, 58% of the work has been completed, including upgrades to several roads in the Maydon Wharf and Bayhead precincts.
The project is part of Transnet’s recovery plan and is expected to enhance road safety, traffic flow, and operational efficiency in key port areas. Major refurbishments have been carried out on Maydon Road and Johnstone Road, including stormwater pipe maintenance and asphalt replacement. TNPA’s acting Port Manager has emphasized the importance of completing the project on time to avoid further traffic congestion and has asked drivers to remain patient and vigilant while using the affected roads during the ongoing construction work. Source
USEC port workers’ union set to finalise contract demands and strike strategy
05/08/2024
The International Longshoremen’s Association (ILA) is preparing for potential strike action at US East and Gulf coast ports in early October. The union will finalize its contract demands during meetings on September 4-5 in New Jersey, which will be presented to the United States Maritime Alliance (USMX). ILA president Harold Daggett has emphasized the need to prepare union members for a possible strike on October 1 if a new agreement is not reached, noting that many current members have never experienced a strike before.
While the current agreement between the ILA and USMX expires on September 30, negotiations have not yet begun due to a disagreement over port automation in Mobile, Alabama. The ILA has given the required 60-day notice of the contract’s expiration. Despite the looming deadline and strike preparations, some industry observers believe a compromise may be reached, partly due to the timing coinciding with the US presidential election. However, if a strike does occur, it could have significant and rapid impacts on the US economy. Source
Panama Canal inches back to normality
07/08/2024
The Panama Canal Authority (ACP) is gradually returning to normal operations after more than a year of drought-related challenges. They’ve increased the maximum draft for vessels using the neopanamax locks to 14.94 meters and raised daily transits to 35 slots, with plans to reach 36 next month. This improvement has led to increased bulker traffic, which is seen as positive for exporters ahead of the US grain harvest. To ensure future water security and maintain a minimum of 36 daily transits, the ACP has set a six-year deadline to complete a $1.6 billion reservoir project along the Indio river. Source
Political upheaval in Bangladesh sees factories close and supply chain chaos
06/08/2024
Civil unrest in Bangladesh is causing significant disruptions to supply chains, with factories closed for two days and exports almost at a standstill. The garment sector, Bangladesh’s primary foreign currency earner, has already suffered losses of around $270 million. Customs processes are largely suspended, and shipments through seaports and airports are experiencing major disruptions. The Chittagong Port, the country’s main seaport, has seen a dramatic decrease in container deliveries, with only 329 TEU delivered by this morning, compared to the normal daily average of over 4,000 TEU.
The port’s operations have been severely impacted, with container yards at 80% capacity, hindering loading and unloading processes. While some container movement is still occurring, it is significantly reduced compared to normal operations. The Bangladesh Inland Container Depots Association has reported very few truck arrivals at port depots due to security concerns. Despite these challenges, there are signs of some activity resuming, with an increased number of delivery orders being issued by shipping agents today. Source
Maersk u-turns on congestion claim at Tanjung Pelepas
06/08/2024
The port of Tanjung Pelepas (PTP) in Malaysia has refuted claims of congestion, despite an initial advisory from Maersk suggesting otherwise. PTP reported a record-breaking month without congestion in July and emphasized its efficiency compared to other ports facing challenges globally. Maersk had initially announced the omission of some calls due to alleged cargo backlogs at PTP and Singapore, but later retracted this statement, acknowledging it was an error in their customer advisory. PTP officials have reaffirmed that there is currently no congestion at their port terminal, highlighting their ability to turn global port challenges into opportunities to showcase their resilience and efficiency. Source
Liner trade moves away from China-dominated supply lines
05/08/2024
The global liner trade is undergoing a significant shift in service deployments, moving away from a China-dominated model towards emerging markets such as South East Asia, the Indian subcontinent, and Latin America. This strategic change, as reported by Taiwanese freight forwarder Dimerco, is primarily driven by escalating geopolitical tensions and evolving global trade dynamics. Ocean carriers are reassessing their routes and service offerings in response to these changes, recognizing the need to diversify supply chains and mitigate risks associated with over-reliance on China.
Several factors are contributing to this shift, including ongoing trade disputes and tariff impositions, which have prompted businesses to seek alternative sourcing and manufacturing locations. This aligns with broader trends in global logistics, where companies are prioritizing flexibility and resilience in their supply chains. As ocean carriers adapt to these new realities, they are likely to enhance their service offerings in emerging markets, potentially leading to increased shipping volumes and new business opportunities. Maritime data company Sinay suggests that this transition reflects the changing priorities of ocean carriers in an increasingly complex global trade environment, and may reshape the landscape of international shipping and logistics in the coming years. Source
Record-Breaking Ocean Container Shipping Demand from China
07/08/2024
Ocean container shipping demand from China to North America and North Europe reached record highs in June 2024, driven by importers rushing to secure their supply chains amid Red Sea disruptions. According to Xeneta, a freight rate benchmarking firm, China to North Europe trade saw a record 800,000 TEU shipped, while China to North America trade experienced its highest June volume at 1.36 million TEU. This surge in demand correlated with a sharp rise in average spot rates, with increases of 144% to the US West Coast, 139% to the US East Coast, and 166% to North Europe between April 30 and July 1.
However, Xeneta’s Chief Analyst Peter Sand suggests that this record-breaking demand may have peaked. Recent data shows a softening of spot rates in August, with decreases of 17% to the US West Coast, 3.2% to the US East Coast, and 1.6% to North Europe. Sand believes this indicates that the peak in demand for ocean container shipping may have already passed, with volumes expected to be lower in July and August. He notes that the Red Sea conflict has altered traditional supply chain seasonality, with many shippers importing Christmas goods as early as May to mitigate risks, despite high costs. Source
Houthi missile strikes break Red Sea calm period
05/08/2024
On August 3, a merchant vessel in the Gulf of Aden was attacked by a missile about 125 nautical miles east of Aden, Yemen. The vessel, identified as the Liberian-flagged container ship Groton, was hit by a missile during its routine journey between Jebel Ali and Djibouti. The Houthi group claimed responsibility for the attack, stating it was in retaliation for the ship’s association with a company that had recently made port calls in Israel, violating the group’s ban on ships visiting “ports of occupied Palestine.” Despite the missile strike, no fire, water ingress, or oil leaks were reported on the vessel.
This incident follows a series of recent attacks on shipping in the region, including an earlier attack on July 20 in the Bab al Mandab Strait, where a vessel faced multiple assaults from an uncrewed aerial system, uncrewed surface vessel, and a missile. While there has been a temporary lull in such attacks, the U.S. military has continued to target Houthi assets, destroying several of their missiles, launchers, and uncrewed vehicles in recent days. Source
MSC now ‘dominating’ ocean carrier market – but rivals are also boosting capacity
07/08/2024
In July, MSC set a new record by reaching 19.8% of the global container fleet capacity, the highest ever recorded by a single carrier. This milestone was achieved after the Geneva-based company added 400,000 TEU to its fleet this year. While Maersk once dominated the market with a peak share of 19.4% in 2018, it has seen a decline in market participation over the past five years. Meanwhile, MSC is expanding further with orders for new ships, including ten 21,000 TEU vessels from Chinese shipyards, expected to be delivered between 2027 and 2028.
As MSC continues to grow, rival Maersk has chosen to limit its fleet size to between 4.1 million and 4.3 million TEU, focusing instead on non-shipping growth. However, this strategy might put Maersk under pressure, especially if financial returns don’t meet shareholder expectations. In response, Maersk is reportedly planning to order a dozen 16,000 TEU LNG dual-fueled ships and has committed to long-term charters of five additional ships to regain some of its lost market share.
Other carriers are also making gains. Israel’s Zim increased its share to 2.4%, overtaking Taiwan’s Yang Ming, while Japan’s ONE and Germany’s Hapag-Lloyd also saw modest increases in their market shares. Despite these changes, the top 10 carriers still dominate the container shipping industry, controlling 83.9% of the global capacity as of the end of July. Even with CMA CGM’s new ships set to surpass Maersk by 2027, MSC is projected to remain the leader, with a substantial lead of over 2 million TEU by 2028. Source
Container shippers pay a heavy price for early peak season
09/08/2024
Between April 30 and July 1, spot rates for ocean shipping surged significantly, with rates to the US West Coast and East Coast rising by 144% and 139%, respectively, while North European rates increased by 166%. This spike in costs is linked to disruptions caused by Red Sea attacks and Middle East conflicts, which led shippers and forwarders to rush shipments to protect their supply chains, especially after the chaos of the pandemic years. The large volumes of goods shipped in May and June resulted in severe port congestion in Asia and a dramatic increase in shipping rates, as companies, including those importing Christmas goods early, sought to avoid potential delays later in the year.
Despite the rush, July 2024 saw a significant increase in import volumes to the US, reaching a 26-month high of 2.55 million TEU, with imports from China hitting a record high. However, this surge in volume did not significantly impact US port delays or congestion. Interestingly, spot rates began to decline in August, indicating that the peak shipping season might have already passed, and demand for ocean container shipping could be lower than expected for the remainder of the year. 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
