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
With peak season traditionally picking up in September – We expect demand on space across all modes of transport to increase. We therefore encourage all our customers & partners to start prebooking shipments in advance of cargo ready date – most especially on larger shipments.
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 low wind speeds during the week.
- Pier 1 : 9 days delay
- Pier 2 : 9-12 days delay
- Durban Point : 3 days delay
CAPE TOWN
The port has experienced strong winds during the week.
- CTCT : 1-3 days delay
- MPT : 0-2 days delay
PORT ELIZABETH
The port has experienced strong winds during the week. +/- 40 operational hours lost between 13 & 15 August due to the wind.
- PECT : 1-3 days delay
- NCT : 0-2 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 delay of 1 day experienced at Luanda port.
GHANA
- Berthing delay of 1 day experienced at Tema port.
IVORY COAST
- Berthing delay of 1 day experienced at Abidjan port.
KENYA
- Berthing delays of 2 days experienced at Mombasa port.
MAURITIUS
- Berthing delays of 2 days experienced at Port Louis.
MOZAMBIQUE
- Berthing delays of 5 days experienced at Maputo port.
NAMIBIA
- Berthing delays of 7 days experienced at Walvis Bay port.
NIGERIA
- Berthing delays of 3 days experienced at Apapa port.
SENEGAL
- Berthing delays of 2 days experienced at Dakar port.
TANZANIA
- Berthing delays of 13 days experienced at Dar es Salaam port. High levels of congestion continue to be experienced at this port.
NORTH AMERICA
Airfreight: Operations are running smoothly, this despite strong demand which is set to continue for the remainder of the year.
Sea Freight: North American supply chains could take a massive hit with Canada facing strikes possible rail worker strikes and U.S. East Coast and Gulf Coast longshoremen ( maritime employee whose job is to load and unload cargo from vessels) also looking increasingly likely to strike.
- https://www.supplychainbrain.com/articles/40231-twin-strikes-at-us-ports-canada-railways-would-create-chaos-in-north-america
- Possible U.S. Port Strike Could Back Up Goods for Months (gcaptain.com)
CANADA
- A potential Canadian Rail Industrial Action – negotiations have not progressed as hoped, with a potential strike and lockout set to begin on August 22, 2024.
Montreal
- Berthing delays of 2 days experienced at this port. Gate Closures at Port of Montreal: Due to a major water leakage in Montreal affecting the entire interchange, the Port of Montreal cannot accept or dispatch trains until further notice.
Toronto
- Berthing delays of 6 days experienced at this port.
Vancouver
- Berthing delay of 1 day 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 by August 18.
- Charleston – Vessel waiting time is up to 4 days.
- Savannah – Vessel waiting time is up to 5 days.
- Miami/Port Everglades – Vessel waiting time is up to 3 days.
- Houston – Vessel waiting time is up to 2 days.
- Oakland – Vessel waiting time is up to 9 days.
- Los Angeles/Long Beach – Vessel waiting time is up to 2 days.
- Seattle – Vessel waiting time is up to 1 day. Extended waiting periods are due to high volumes of Import Rail along with lack of rail cars. T18 will now be open on August 16, 23 and 30, 2024. Husky Terminal will have hoot gates on August 20, 21 and 22, 2024.
Vessel Scheduling Amendments (Information below is correct at time of weekly publication:
- Maersk Vilnius – with voyage 424S / 428N will now call Cape Town Multi-Purpose Terminal instead of Cape Town Container Terminal.
LATIN AMERICA
All Air & Sea Freight services to and from the Latin America running relatively smoothly.
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 2 days experienced at Altamira port, 3 days at Manzanillo port and 4 days at Veracruz 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 2 days experienced at Antwerp port.
FRANCE
- Berthing delays of 2 days experienced at Le Havre port.
GERMANY
- Berthing delays of 3 days experienced at Hamburg port and 1 day at Bremerhaven port. A general meeting on August 20, 2024 could see some slight disruption to operations.
ITALY
- Berthing delays of 3 days experienced at Genova port and 8 days at La Spezia port.
NETHERLANDS
- Berthing delays of 3 days experienced at Rotterdam port.
SPAIN
- Berthing delays of 3 days experienced at Barcelona port.
SWEDEN
- Berthing delay of 1 day experienced at Gothenburg port.
TURKEY
- Berthing delays of 5 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 weekly publication):
- ONE Readiness – with voyage 243N will omit Cape Town. Imports will discharge in Durban to connect to next available vessel.
- Santa Clara – with voyage 242N will call Port Elizabeth after Cape Town before proceeding to Rotterdam and London.
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.
Airfreight: 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 2 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.
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 delay of 1 day experienced at this port.
SHANGHAI
- Berthing delays of 2 days experienced at this port.
NINGBO
- Berthing delays of 2 days experienced at this port. All Ningbo terminals expected to be congested due to change of terminal.
SHEKOU / YANTIAN
- Berthing delays of 1 day experienced at Shekou port and no delays at Yantian port.
XIAMEN
- Berthing delay of 1 day 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 2-3 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 1 day experienced at Hai Phong and Ho Chi Minh ports.
Vessel Scheduling Amendments (information below is correct at time of publication date):
- ONE Readiness – with voyage 243N will omit Cape Town. Imports will discharge in Durban to connect to next available vessel.
INDUSTRY NEWS
Harbour carrier changes to speed up cargo movement
15/08/2024
Transnet Port Terminals (TPT) is implementing changes to the truck-slot booking system at the Port of Durban to address issues like IT failures, corruption, and revenue loss for transporters. The changes include batch-releasing containers, extending the booking period from 4 to 48 hours, and daily meetings with carriers to discuss issues. Several private sector sources have cautiously welcomed these developments, which emerged from a meeting between TPT, carriers, and industry stakeholders.
One change is a “group import release” system, where high-volume operators can bypass the booking system to collect 50+ containers. This is expected to free up slots for smaller operators. However, some concerns remain, such as the potential for larger companies to book slots without having the trucks to use them, and uncertainty around the weights of containers in the group release system. Overall, the industry is watching closely to see if these measures can alleviate the longstanding congestion and delay issues at the port. Source
Possible U.S. Port Strike Could Back Up Goods for Months
15/08/2024
A potential strike by over 45,000 dockworkers at U.S. East Coast and Gulf of Mexico ports is raising concerns about major cargo backups. Retailers and other importers have been rushing to get goods into the U.S. before the current union contract expires on September 30, when the International Longshoremen’s Association has threatened to strike if a new deal is not reached. Shipping experts estimate that a one-week strike could take 4-6 weeks to clear the backlog, while a two-week strike could mean ports wouldn’t return to normal operations until 2025. This has led to a surge in spot market shipping rates, with the cost to send a container from Asia to the U.S. East Coast topping $10,000 in early July.
The window to avoid the impacts of a potential strike is closing, as shipping routes have already been disrupted by attacks in the Red Sea, lengthening transit times. Industry analysts say shipping goods next week may be too late, as they could just end up sitting on the water if the ports are hit by widespread strikes. Companies have been forced to act early to try to get their cargo in before the contract expires and the threat of a strike becomes reality. Source
India’s ports face indefinite strike over long-standing disagreements
15/08/2024
Dockworkers at India’s 12 largest ports have announced an indefinite strike starting August 28th, following failed negotiations over wages and allowances that have been ongoing for over 3 years. The previous wage agreement expired in December 2021, and despite a wage negotiation committee being formed in March 2021, no resolution has been reached after 7 meetings over 31 months. Union leaders blame the impasse on “illogical and unlawful guidelines” imposed by the government, which they say have obstructed meaningful talks and deepened worker frustration. The dockworkers’ key demands include immediate wage revisions, pension benefits backdated to January 2022, and the release of delayed productivity-linked rewards.
The strike is expected to significantly disrupt port operations nationwide, with the dockworkers’ federation receiving support from other unions. This action underscores broader concerns over industrial relations at major ports, which have worsened since the enactment of the Major Port Authorities Act in 2021, which centralized port management control. As the strike deadline approaches, the dockworkers remain steadfast in their demands for a fair and prompt resolution to their long-standing grievances. Source
Beijing puts shipping on notice following hazardous cargo blast in Ningbo
12/08/2024
An explosion onboard the YM Mobility containership docked at China’s Ningbo port has prompted warnings from the country’s Maritime Safety Administration (MSA) about the proper transportation of hazardous cargoes. The dramatic incident, captured on video, involved a large blast that caused a fire and scattered debris, including a container thrown 200 meters into the air. Authorities determined the explosion stemmed from hazardous materials including lithium batteries and a chemical compound that requires temperature-controlled storage – yet the container was declared as a refrigerated substitute for a dry container without power.
The MSA has reiterated the need for shipping lines to fully understand the severe risks of transporting dangerous goods, especially during high temperature seasons, citing this incident as well as two other recent boxship fires around the world. The damaged YM Mobility is expected to be out of service for 3 months as it undergoes repairs once investigations are complete. This accident highlights the critical importance of proper hazardous cargo handling to prevent such potentially catastrophic incidents at ports. Source
Top seven box terminal operators now control 40% of global throughput
12/08/2024
The global landscape of major container terminal operators (GTOs) saw significant changes in 2023 due to mergers and acquisitions. According to Drewry’s latest industry review, the seven largest GTOs – led by PSA International, China Merchants Ports, and China Cosco Shipping – now collectively handle over 40% of global port throughput on an equity-adjusted basis. While several smaller GTOs like Adani, AD Ports, and Hapag-Lloyd have stated expansion plans, Drewry notes there is a substantial 30 million TEU gap between the top firms and the rest of the industry. The recent acquisitions of Bolloré and SAAM Ports have also reshuffled the rankings.
Overall, the GTO industry saw 2.3% annual growth in equity-adjusted throughput in 2023, well above the 0.3% increase in global port handling. However, the normalization of congestion-related storage income put some pressure on revenue growth, though Drewry’s index showed a 7.3% year-over-year increase in Q1 2024 due to the impact of the Red Sea crisis. Going forward, the recovery of consumer demand is expected to continue supporting solid financial performance for the major container terminal operators. Source
Time for shipping ‘to bite the bullet’ and pay for its emissions, says ICS
14/08/2024
The International Chamber of Shipping (ICS) has revised its proposal for a levy on shipping emissions to be considered at the upcoming IMO MEPC 82 meeting. The ICS is now proposing a levy of $60 per tonne of conventional fuel oil consumed, with a corresponding $100 per tonne reward for CO2 emissions prevented. This equates to a levy of $19.26 per tonne of CO2 emitted. The ICS believes it is time for IMO member states to adopt a greenhouse gas emission pricing mechanism to support the industry’s transition to net zero by 2050.
A Clarksons Research assessment found that a bunker levy up to $400 per tonne of CO2 (equivalent to $1,256 per tonne of fuel oil) would add around $1,240 per TEU for perishable cargo on a typical reefer trade – a fraction of the rate hikes caused by the pandemic or Red Sea crisis. The ICS warns that without a distinct greenhouse gas pricing mechanism and reward program in the IMO regulations, shipping’s transition to net zero by 2050 is unlikely to succeed. Source
Carriers box clever on capacity and have ‘the upper hand’ as contract talks loom
15/08/2024
Geopolitical uncertainty and limited capacity have given carriers the upper hand as new contract negotiations approach. Customers are questioning whether contracts mean anything anymore, as carriers have been abandoning their contractual commitments to recover real-time cost increases through dynamic pricing, index linking, and surcharges. Even large shippers are finding their negotiated rates are being walked away from when space is tight and spot rates rise. As a result, many shippers are now being quoted “personalized” spot rates when booking cargo, rather than enjoying a true negotiated contract rate.
Looking ahead, there are three big unknowns for shippers as they enter these contract talks: 1) whether contracts will actually amount to anything meaningful, 2) whether committing upfront will provide a better deal or just give carriers more insight into their business, and 3) how much of the new vessel capacity expected over the next 18 months will actually become available for bookings. Experts suggest carriers have been careful to limit capacity, but there is only so far they can take this, and a change in the supply side situation is expected. Source
MSC continues to order new box ships as fleet capacity passes six million teu
16/08/2024
MSC, the Swiss-Italian container shipping giant, has placed even more newbuild orders with Chinese shipyards, further widening its lead over competitors. The latest orders include 6 x 19,000 TEU ships from Shanghai Waigaoqiao Shipbuilding, and 8 x 11,500 TEU ships from Penglai Zhongbai Jinglu Ship Industry, all of which will be LNG dual-fueled. This follows previous orders MSC placed for 12 x 19,000 TEU ships, 10 x 11,500 TEU ships, and 10 x 10,300 TEU ships. With deliveries expected between 2027-2028, industry analysts estimate MSC could be spending over $6 billion on these newbuilds.
MSC’s aggressive fleet expansion has allowed it to grow its operating capacity to over 6 million TEU, including 3.07 million TEU on owned ships. In comparison, its two largest competitors, Maersk and CMA CGM, have active fleets of 4.35 million TEU and 3.8 million TEU respectively. Despite industry-wide newbuild deliveries reaching record levels, the recent disruptions in the Red Sea have ensured all this new tonnage is being fully utilized. Looking ahead, the global containership fleet is projected to grow by 10% in 2024, as shipowners increasingly opt for LNG-fueled vessels to support decarbonization efforts. 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
