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
Air Freight: On the import side, increased peak season volumes are resulting in more congestion, lengthened transit times, and in some cases higher freight rates. We expect this trend to continue as we head towards December.
On Exports, increased demand being felt to most destinations – resulting in increased freight rates and lengthened transit times.
Sea Freight: Strong winds continued to affect South Africa’s main ports.
Export volumes have also experienced a massive surge in peak season volumes – so 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).
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
- Pier 1 : 5-7 days delay
- Pier 2 : 10-14 days delay
- Durban Point : 3 days delay
CAPE TOWN
- CTCT : 1-3 days delay
- MPT : 0-3 day delay
PORT ELIZABETH
- PECT : 0-1 day delay
- NCT : 2-4 days delay
AFRICA & INDIAN OCEAN ISLANDS
East African ports are experiencing congestion, however no severe impact noted. Export 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.
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.
Mozambique has listed new information required for imports, including a compulsory identifier number called a NUIT. We will update you on an individual shipment level.
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: Increased demand for exports is leading to increased rate pressure and space shortages – pre-booking is advised.
Air France is no longer servicing: Ougadougou, Burkina Faso, Bamako, N’djamena, Niamey.
ANGOLA
- Berthing delay of 1 day experienced at Luanda port.
GHANA
- Berthing delays of 2 days experienced at Tema port.
IVORY COAST
- Berthing delay of 1 day experienced at Abidjan port.
KENYA
- Berthing delays of 3 days experienced at Mombasa port.
MAURITIUS
- Berthing delays of 2 days experienced at Port Louis.
MOZAMBIQUE
- Berthing delays of 2 days experienced at Maputo port.
NAMIBIA
- Berthing delay of 1 day experienced at Walvis Bay port.
NIGERIA
- Berthing delays of 2 days experienced at Apapa port.
SENEGAL
- Berthing delays of 3 days experienced at Dakar port.
TANZANIA
- Berthing delays of 5 days experienced at Dar es Salaam port. High levels of congestion continue to be experienced at this port.
NORTH AMERICA
Hurricane Milton recent updates:
- https://www.reuters.com/world/us/biden-survey-milton-storm-damage-twice-hit-florida-2024-10-13/
- https://www.nytimes.com/2024/10/10/weather/hurricane-milton-damage-florida.html#
Air Freight: The full extent of Hurricane Helene’s impact on air freight services remains to be seen. We will keep you posted with further updates as we receive them.
British (BA) are now accepting bookings into the US, but at significant higher rate levels.
Sea Freight:
Vessel scheduling amendments on the back of the peak season rush; as well as the additional congestion & delays caused by the US port strikes & hurricanes.
CANADA
Montreal
- Berthing delays of 2 days experienced at this port.
Toronto
- Berthing delays of 7 days experienced at this port.
Vancouver
- Berthing delays of 3 days experienced at this port.
USA
Terminals Updates:
- New York/New Jersey – Vessel waiting time is up to 4 days. All terminals will be open on October 14, 2024, for Columbus Day.
- Norfolk – Vessel waiting time is up to 5 days.
- Charleston – Vessel waiting time is up to 4 days.
- Savannah – Vessel waiting time is up to 7 days. Waiting times for berths at the affected terminals are expected to increase as a result of the strike.
- Miami/Port Everglades – Vessel waiting time is up to 4 days. Our partner Shipco Transport had its offices in Miami work remotely on 10th October 2024 due to impact of Hurricane Milton.
- Houston – Vessel waiting time is up to 5 days.
- 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 on October 18, 2024.
LATIN AMERICA
Although cargo is moving and services are running relatively smoothly, the increase in volumes due to peak season is being felt and it is likely that we will see an increase in cargo off-loads & schedule delays.
ARGENTINA
- Berthing delays of 5 days experienced at Buenos Aires port.
BRAZIL
- Berthing delays of 3 days experienced at Santos port.
MEXICO
- Berthing delays of 3 days experienced at Altamira ports, 5 days at Manzanillo port, and 7 days at Veracruz port.
NORTH WEST CONTINENT, UNITED KINGDOM, MEDITERRANEAN
Air Freight: Export services into Europe: there has been a surge in demand, we advise pre-booking where possible.
Import services from Europe: Increased demand and space constraints expected to increase, advise pre-booking where possible.
Sea Freight: Vessel schedule delays continue to impact the region. 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.
FRANCE
- Berthing delays of 4 days experienced at Le Havre port.
GERMANY
- Berthing delays of 6 days experienced at Hamburg port and 5 days at Bremerhaven port.
ITALY
- Berthing delays of 3 days experienced at Genova port and 4 days at La Spezia port.
NETHERLANDS
- Berthing delays of 3 days experienced at Rotterdam port.
SPAIN
- Berthing delays of 2 days experienced at Barcelona port.
SWEDEN
- Berthing delay of 5 days experienced at Gothenburg port.
TURKEY
- Berthing delays of 2 days experienced at Istanbul port.
UNITED KINGDOM
- Berthing delays of 4 days experienced at London Gateway port. Possible disruptions expected caused by pilot boarding limitations.
INDIAN SUB-CONTINENT & MIDDLE EAST
India: the effects of the heavy inventory at Nhava Sheva’s APMT terminal (that we have reported on in previous weeks) is still being felt, this all as peak season volumes increase.
Sea Freight: Import services out of the Indian Sub-Continent remain under pressure with increased peak season demand causing capacity constraints.
Air Freight: Export & import services are for the main part running smoothly
However, in the Middle East we continue to see airlines suspend services into Israel, Lebanon and other neighbouring territories.
INDIA
- Berthing delays of 2 days experienced at Nhava Sheva port and 1 day at Chennai port.
UNITED ARAB EMIRATES
- Berthing delays of 1 day experienced at Jebel Ali port.
LEBANON
- Berthing delays of 2 days experienced at Beirut port. All services remain active amid the on-going situation in the Middle East.
ASIA PACIFIC (Including Oceania)
Sea Freight: Freight movements out of the Far East are running relatively smoothly, considering that we are in peak season.
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. Imports: Japan – large spike in demand leading to serious space constraints and backlogs.
HONG KONG
- Berthing delay of 1 day experienced at this port.
KOREA
- Berthing delays of 2 days 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 2 day 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 3 days experienced at Shekou port and 2 days at Yantian port.
XIAMEN
- Berthing delays of 2 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.
THAILAND
- Berthing delay of 1 day experienced at Bangkok port.
VIETNAM
- Berthing delay of 1 day experienced at Hai Phong and Ho Chi Minh ports.
Vessel Scheduling Amendments (Information below is correct at time of publication):
- MSC Sophie VII – with voyage ZA440A on the INGWE service with MSC will omit Ningbo call on her southbound schedule
- MSC Regina – with voyage ZA441A on the INGWE service with MSC will omit Shekou call on her southbound schedule.
- MSC Rachelle – with voyage ZA438A on the INGWE service with MSC will omit Shekou and Singapore calls on her southbound schedule.
NEWS ARTICLES
Container handling at South African ports down – Saaff/Busa
10/10/2024
Container throughput at South African ports decreased by 8% at the start of October, dropping from a daily average of 8,072 to 7,384 week-on-week. This decline was primarily due to bad weather conditions, equipment breakdowns, and shortages. Ports in Cape Town and Durban faced operational constraints from strong winds, high swells, and equipment issues. Adding to the challenges, a recent court ruling has halted the privatization of Durban’s Pier 2 container facility. The KwaZulu-Natal High Court granted an interdict to APM Terminals, stopping the 25-year tender awarded to International Container Terminal Services (ICTSI) by Transnet.
The cargo industry has expressed disappointment over this legal setback, which delays hoped-for improvements in cargo handling at Durban’s port. Michael Henning, a cargo clearing expert, described the ruling as a “gut punch” for the recovering industry. Despite the setback, there are calls for Transnet to continue investing in port improvements and efficiencies. The industry remains cautiously hopeful that the issue can be resolved quickly, allowing for much-needed enhancements to South Africa’s port operations. Source
Durban privatisation contract with ICTSI is safe, Transnet claims
11/10/2024
Transnet, a state-owned logistics company in South Africa, has been interdicted by the Durban High Court from awarding a privatization tender for the Durban Container Terminal Pier 2 to International Container Terminal Services Inc (ICTSI). This interim interdict was sought by APM Terminals (APMT), a subsidiary of Maersk, who was an unsuccessful bidder. Transnet has stated that it will comply with the interdict but plans to move quickly to the next phase of the review process, seeking a preferential court date for hearing the full review application.
The tender in question involves a 25-year contract with a 49% stakeholdership at DCT Pier 2, which Transnet sees as a crucial part of its corporate strategy to improve efficiencies and stimulate the economy. This strategy aligns with the South African government’s structural reforms agenda and involves bringing in private sector partners. Transnet maintains that the interim interdict does not set aside the contract award to ICTSI, and the company remains committed to transparency and good governance throughout this process. Source
Florida evacuates as cat-4 hurricane ‘Milton’ set to strike tonight
09/10/2024
Hurricane Milton, currently a category 5 storm, is approaching Florida and expected to make landfall as a category 4 hurricane late tonight or early tomorrow. The storm is causing widespread disruption, with jammed highways as families evacuate, National Guard deployment, and closures of multiple airports including Tampa International and three in Orlando. A storm surge of up to 15 feet is expected in Tampa Bay, threatening densely populated areas on low-lying reclaimed land. The US Coast Guard has issued warnings about high wind speeds, and ports along Florida’s western seaboard are closing in preparation.
The hurricane’s approach has led to a mass exodus of ships from the area, with vessels fleeing both the west and east coasts of Florida. A potential second tropical storm is forming east of Florida, adding to the complexity of the situation. Hurricane experts stress the importance of human evaluation and communication in managing the risks associated with such extreme weather events, often having to negotiate between safety concerns and commercial pressures from shoreside operators. The situation remains dynamic, with authorities and weather experts closely monitoring developments and advising on appropriate actions for vessels and residents in the affected areas. Source
Montreal dockworkers increase pressure on employers
09/10/2024
Dockworkers across North America’s east coast have been engaged in protests and strikes throughout the year. In Montreal, Canada’s largest eastern port, workers have announced an indefinite overtime stoppage starting today, following a three-day strike last week. This action is aimed at pressuring management to progress in stalled contract negotiations. Meanwhile, in the United States, a historic port strike across the eastern seaboard has been temporarily suspended until a new president takes office in 2025.
The International Longshoremen’s Association (ILA) in the U.S. has reached an agreement with the United States Maritime Alliance (USMX) on wages, including a 61.5% increase over six years. However, the union remains determined to secure commitments against automation in their labor contract. The ILA views this as essential for preserving jobs and ensuring their members continue to play a crucial role in port operations. Both parties have agreed to extend their existing contract through January 15 and return to the bargaining table to negotiate outstanding issues. Source
China tightens rules on hazardous cargo at Ningbo
09/10/2024
Container shipping lines are facing new challenges due to tighter regulations for hazardous cargo in China, particularly at the busy Ningbo port. The China Maritime Safety Administration has mandated that all dangerous goods declarations and material safety data sheets must be filed 72 hours before vessel cut-offs for cargo gate-in. This applies to all export, import, and transshipment cargoes moving through Ningbo. Non-compliance may result in cargo being delayed or rolled over, making seamless information flow crucial for shippers.
These stricter measures come in response to recent onboard ship fires and explosions, including a major incident on the YM Mobility at Ningbo two months ago. Other notable incidents include fires on the MSC Capetown III in Colombo and the Maersk Frankfurt off the Indian coast. These events have prompted carriers and port authorities to increase scrutiny of hazardous cargo declarations and handling. The shipping industry has been grappling with the issue of incorrect declarations and improper packing of dangerous goods, which are often cited as primary causes of ship fires. Source
The cost of ‘going green’ could render deepsea shipping ‘too expensive’
10/10/2024
Decarbonization regulations in shipping could potentially lead to the decline of certain deep-sea shipping sectors, according to Tim Power, Managing Director of Drewry Shipping Consultants. Speaking at the World Ports Conference in Hamburg, Power highlighted that the cost of operating container shipping services is expected to double due to decarbonization efforts. This increase, combined with geopolitical tensions affecting freedom of navigation, could make intercontinental shipping prohibitively expensive for some key commodities, potentially leading to a fundamental restructuring of long-distance supply chains.
The main challenge in transitioning to alternative fuels is the lack of supply, with LNG currently being the only option with sufficient availability. However, LNG’s effectiveness in decarbonization depends on minimizing methane slip. Power noted that regulations, while well-intentioned, can have unintended consequences, such as the EU ETS undermining transshipment services in EU Mediterranean ports. He suggested that green shipping corridors remain viable for shorter trade routes, such as Chinese coastal trade or intra-Europe shipping, but are not feasible for deep-sea shipping due to the limited availability of alternative fuels for long-distance voyages. Source
Overcapacity a serious concern – Maersk executive
10/10/2024
Danish shipping company Maersk is optimistic about the eventual reopening of the Suez Canal for maritime traffic, despite ongoing conflicts in the Middle East. The canal has been largely avoided by shipping companies since November 2022 due to attacks by Houthi rebels, leading to longer routes around South Africa. This situation has resulted in increased fleet sizes and deployed capacity in deep-sea trades, with more vessels expected to be delivered in the coming years.
Maersk’s Chief Operating Officer, Karsten Kildahl, warns of potential “operational meltdown” when shipping through the Suez Canal resumes. The excess capacity created by the longer routes will need to be recalibrated, potentially causing scheduling and logistical challenges. Maersk and its new alliance partner, Hapag-Lloyd, have considered this scenario in their upcoming vessel-sharing arrangement, Gemini. Kildahl estimates that at least 40 vessels could be taken out of circulation if the Suez route becomes safer, highlighting the significant impact the canal’s reopening could have on the shipping industry. Source
Global goods trade on track for gradual recovery
11/10/2024
The World Trade Organization (WTO) has updated its forecast for global goods trade, projecting a 2.7% increase in 2024 and a 3.0% increase in 2025. This modest growth comes after a 1.1% decline in 2023 due to high inflation and rising interest rates. However, the outlook is cautiously optimistic as inflation has fallen sufficiently by mid-2024 to allow central banks to cut interest rates, potentially boosting consumer spending and investment. The WTO remains vigilant about potential setbacks, particularly the escalation of regional conflicts in places like the Middle East, which could impact global energy costs and shipping routes.
From a regional perspective, Asia’s export volumes are expected to grow faster than any other region, rising by 7.4% in 2024. This growth is driven by key manufacturing economies such as China, Singapore, and South Korea. North America’s GDP growth forecast has been upgraded by 0.4 percentage points, which could influence trade flows in other regions. Meanwhile, Africa’s export growth has been revised downward, partly due to a weakening in Europe’s imports, Africa’s main trade partner. The WTO emphasizes the importance of collective efforts to ensure global economic stability and sustained growth, highlighting that in the past three decades, per capita incomes in low- and middle-income economies have nearly tripled. Source
Spot rates ex-Asia still falling, despite USEC congestion, with more blanks
11/10/2024
Container spot freight rates from Asia continued to decline this week, despite the recent three-day stoppage at US east and Gulf coast ports. The strike affected up to 70 vessels, creating a backlog that could take days to weeks to clear. However, this is not expected to significantly impact rates. Ocean freight rates to both US coasts had been decreasing before the strike and continued to do so during the closures, with rates now more than 30% below July’s highs. While carriers had announced surcharges in anticipation of disruptions, these have now been suspended as the strike has ended.
On major routes, rates have seen single-digit percentage drops. For example, Shanghai to New York rates fell 3% to $5,761 per 40ft, while Shanghai to Los Angeles rates decreased 5% to $5,071 per 40ft. Asia-Europe rates also declined, with Shanghai to Rotterdam falling 6% to $3,591 per 40ft. In response to slackening demand and to avoid further congestion, carriers have begun to increase the number of blank sailings on main east-west trades. Drewry’s weekly tracker reported 69 cancelled sailings between October 14 and November 17 across transpacific, transatlantic, and Asia-Europe trades, representing a 10% cancellation rate. 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
