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
Another week closer to December and demand for space ramps up further.
Air Freight: Increasing peak season volumes continue to drive up demand which is some cases is leading to increased rates, and lengthened transit times.
Sea Freight: Strong winds continued to affect all the main South African 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.
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. Appointment slots are constrained due to high volume of containers moving through Durban terminals.
- Pier 1 : 4-6 days delay
- Pier 2 : 9-13 days delay
- Durban Point : 3 days delay
CAPE TOWN
The port has experienced strong winds during the week. CFS has normal volumes of traffic and operations continue as per normal.
- CTCT : 2-4 days delay
- MPT : 0-2 days delay
PORT ELIZABETH
Port Elizabeth has experienced very rough weather over the past 8 days with almost 50% of the operating hours being lost during this time.
- PECT : 0-1 day delay
- NCT : 2-3 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 ports continue to experience congestion. 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.
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.
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 delays of 2 days experienced at Abidjan port.
KENYA
- Berthing delays of 3 days experienced at Mombasa port.
MAURITIUS
- Berthing delay of 1 day experienced at Port Louis.
MOZAMBIQUE
- Berthing delay of 1 day experienced at Maputo port.
NAMIBIA
- Berthing delay of 1 day experienced at Walvis Bay port.
NIGERIA
- Berthing delays of 3 days experienced at Apapa port.
SENEGAL
- Berthing delays of 3 days experienced at Dakar port.
TANZANIA
- Berthing delays of 8 days experienced at Dar es Salaam port. High levels of congestion continue to be experienced at this port.
NORTH AMERICA
Air Freight: Peak season volumes are being felt across the region impacting capacity, rates and Transit times.
British (BA) are now accepting bookings into the US, but at significant higher rate levels.
Sea Freight: Residual delays as a consequence of the port strikes are still being felt.
CANADA
Montreal
- Berthing delays of 2 days experienced at this port. Vessels are arriving in Montreal this week off schedule due to previous delays, but making up time for departure on proforma.
Toronto
- Berthing delays of 3 days experienced at this port.
Vancouver
- Berthing delays of 3 days experienced at this port.
USA
International Longshoremen’s Association (ILA) Strike – Please note that residual delays may occur as port operations ramp back up.
Terminals Updates:
- New York/New Jersey – Vessel waiting time is up to 3 days. On October 21, 2024, Port Liberty Terminal Bayonne will take delivery of four new STS cranes. The delivery vessel will occupy the east end of berth 2 for approximately three days. During this time, vessels will be shifted to berth 1 or the west end of berth 2 until the delivery is complete, which is expected by Friday morning, October 25, 2024.
- Norfolk – Vessel waiting time is up to 3 days. Two cranes scheduled for OSHA inspections later this week and will be out of service for 1-2 days.
- Charleston – Vessel waiting time is up to 4 days.
- Savannah – Vessel waiting time is up to 10 days.
- Miami/Port Everglades – Vessel waiting time is up to 2 days.
- Houston – Vessel waiting time is up to 4 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 2 days.
Vessel Scheduling Amendments (information below is correct at time of weekly publication date):
- Maersk Vallvik – with voyage 436S/440N will perform a port swap and call Durban first before proceeding to Port Elizabeth and Cape Town.
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 in cargo off-loads & schedule delays.
ARGENTINA
- Berthing delays of 6 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 and Manzanillo ports, and 8 days at Veracruz port.
NORTH WEST CONTINENT, UNITED KINGDOM, MEDITERRANEAN
Air Freight: increased peak season volumes are being felt across both import and export services to and from Europe, leading to increased pressure on space and rates.
Sea Freight: Peak season volumes continue to pick in Europe (For both imports and exports) with berthing delays of upto 4 days being seen in Belgium, Germany and the Netherlands & upto 6 days in the UK.
BELGIUM
- Berthing delays of 4 days experienced at Antwerp port.
FRANCE
- Berthing delay of 1 day experienced at Le Havre port.
GERMANY
- Berthing delays of 4 days experienced at Hamburg port and 1 day at Bremerhaven port. CTA 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 1 day experienced at Genova port and 3 days at La Spezia port.
NETHERLANDS
- Berthing delays of 4 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 delay of 1 day experienced at Istanbul port.
UNITED KINGDOM
- Berthing delays of 6 days experienced at London Gateway port. Terminal with congestion due to high amount of vessel calls.
Vessel Scheduling Amendments (Information below is correct at time of weekly publication):
- SRX Service Change in Rotation – effective from vessel Santa Isabel with voyage 244S, there will be a swap in rotation of port calls with London Gateway and Rotterdam.
- ONE Readiness – with voyage 244S on the SRX service has reinstated her Cape Town call prior to Coega.
INDIAN SUB-CONTINENT & MIDDLE EAST
Sea Freight: 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 smoothly. However, in the Middle East we continue to see airlines suspend services into Israel, Lebanon and 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 1 day experienced at Jebel Ali port.
LEBANON
- Berthing delay of 1 day experienced at Beirut port. Our partners in Lebanon have confirmed that all services remain active amid the on-going situation in the Middle East.
SRI LANKA
- Berthing delays of 2 days being experienced at Colombo port. FCL containers transshipping in Colombo have expected delays of 2-3 weeks.
Vessel Scheduling Amendments (information below is correct at time of weekly publication):
- Stanley A – with voyage 0MTIFW1MA will perform a split discharge at Durban. The vessel will call Multi-Purpose Terminal for a first discharge and then proceed to Durban Container Terminal – Pier 2 to discharge the balance of containers.
ASIA PACIFIC (Including Oceania)
Sea Freight: Freight movements out of the Far East are running relatively smoothly when 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 delay of 1 day experienced at Busan port.
MALAYSIA
- Berthing delays of 4 days 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.
QINGDAO
- Berthing delays of 2 days experienced at this port.
SHANGHAI
- Berthing delays of 3 days experienced at this port.
NINGBO
- Berthing delay of 1 day experienced at this port.
SHEKOU / YANTIAN
- Berthing delays of 2 days experienced at Shekou port and 1 day 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 delays of 2 days experienced at Ho Chi Minh port and 1 day at Hai Phong port.
NEWS ARTICLES
Harbour carriers react with anger following Transnet message
15/10/2024
Transnet Port Terminals (TPT) is facing severe criticism over its truck booking system at the Port of Durban, despite claims of improvement by TPT executives. While Durban Terminals chief executive Earle Peters recently announced positive results from their new pilot booking system, saying it aims to cater to all transporters and has shown “solid success” after one month of implementation, transporters strongly disagree with this assessment.
The transport industry has responded with overwhelming criticism, citing numerous operational issues including 24-hour wait times, inability to secure booking slots, and poor facilities for drivers. Transporters claim the system has actually made things worse, pointing to problems such as limited booking slots (around 10 slots per tower every four hours for over 300 waiting trucks), frequent equipment breakdowns, and what they describe as inefficient staff performance. Many transporters argue that the system should be abolished, stating it’s causing financial strain due to delays and demurrage costs, while also raising concerns about the lack of basic facilities for drivers who are forced to wait for extended periods. Source
ILA strike unlikely to dent US October import numbers
14/10/2024
A recent strike at major US container ports from Maine to Texas caused only brief disruptions to import operations, according to the Global Port Tracker report from the National Retail Federation (NRF) and Hackett Associates. The three-day strike by the International Longshoremen’s Association, which began on October 1, ended after a tentative agreement was reached on wage increases and a short-term contract extension until January 15, following intervention from an NRF-led coalition that appealed to President Biden.
Prior to the strike, ports had already handled unusually high cargo volumes as importers proactively moved goods early and redirected shipments to West Coast ports in anticipation of potential disruptions. While some retailers face additional warehousing and transportation costs from these contingency measures, experts including NRF’s Jonathan Gold and Hackett Associates’ Ben Hackett expect minimal impact on holiday shopping, with only short-term congestion expected on both coasts. However, the NRF emphasizes the importance of reaching a long-term contract before the January extension expires to prevent future disruptions. Source
Ottawa proposes new mediator to break deadlock in Montreal port labour talks
17/10/2024
Canada’s Labour Minister Steve McKinnon has proposed appointing a special mediator to help resolve the ongoing contract dispute between Montreal dockworkers and the Maritime Employers Association (MEA), offering a 90-day mediation period during which no strikes or lockouts would be allowed. While the 1,200 dockworkers, represented by Longshoremen’s Union Local 375, recently ended a three-day strike at the port’s Viau and Maisonneuve terminals, they have implemented an indefinite overtime ban to maintain pressure on the MEA, which claims this action could significantly impact port operations.
However, industry stakeholders seem less concerned about the situation. Freight forwarders describe the MEA’s warnings as “alarmist,” suggesting that while delays may occur, carriers could potentially benefit through increased charges. Cargo owners, having faced multiple labor incidents over the past year, appear to have adapted to the uncertainty. The situation has been further eased by the suspension of the US East Coast port strike, which had previously caused shippers to seek alternative routing options through ports like Halifax.
Source
Box ship transits through Panama Canal hold steady, despite drought limits
16/10/2024
Despite severe drought conditions in 2024, container vessel traffic through the Panama Canal remained remarkably stable, with only a minimal 0.5% decrease in total containership transits. This resilience was particularly evident in the neo-panamax locks, which actually saw a 2.1% increase in container vessel movements, largely because wealthy shipping carriers could afford the expensive auctioned slots implemented during the drought period. While overall vessel traffic across all types dropped by 29.4%, containerships maintained their presence, increasing their proportion of total traffic from 20% to 26%.
The Panama Canal Authority (ACP) successfully managed the crisis through various efficiency measures, resulting in improved performance metrics including reduced wait times and water usage per transit. Despite the challenges and reduced overall traffic, the ACP’s revenue increased by 9% to $3.5 billion in 2024, up from $3.2 billion the previous year. This success was attributed to a restructured pricing system that established an economic value for water usage, similar to how other countries value natural resources like oil or minerals, allowing the canal to maintain its competitiveness while adapting to environmental challenges. Source
Congestion fears as box lines plan to dodge EU carbon tax with UK first-call
17/10/2024
The United Kingdom is emerging as an unexpected hub for shipping companies looking to minimize their exposure to the European Union’s Emissions Trading System (EU ETS). Since the UK won’t include shipping in its own ETS until 2026, and has explicitly stated it won’t align with EU regulations, carriers are increasingly adding UK port calls before proceeding to EU destinations, as this strategy reduces their EU ETS levy obligation from the full voyage to just the shorter UK-to-EU portion. This trend differs from earlier predictions that suggested Tangier Med, Suez, or Turkish ports would become the primary tax-avoidance destinations.
However, industry experts, including OceanScore MD Albrecht Grell, express skepticism about the long-term viability of this strategy. While DP World has committed $1.3 billion to expand London Gateway’s capacity, concerns remain about UK ports’ ability to handle increased traffic, potential congestion issues, and additional costs from longer voyages and extra port calls. Furthermore, the EU is actively monitoring such evasive behaviors through a dedicated project until 2026, with plans to adjust regulations accordingly, suggesting this loophole may be short-lived. Source
Barge takes out crane at Keelung port
15/10/2024
A significant accident occurred at Taiwan’s Keelung Port on Monday afternoon when a vessel, while attempting to deliver two new quay cranes, collided with and knocked down an existing crane at Pier 20. The incident, which happened while the ship was moving at 1.9 knots, resulted in damage estimated at NT$300m ($9.3m), including damage to five containers and a hangar, though fortunately, no injuries were reported. The collapsed cranes, both owned by China Container Terminal Corporation, were insured.
The ship involved belongs to ZPMC, the world’s largest crane manufacturer from China, and the accident occurred on the same day that Chinese naval drills were being conducted around Taiwan. In response to the incident, port authorities quickly redirected berthing operations to Pier 19 to maintain terminal operations while investigation and cleanup efforts continue at the affected area. The exact cause of the accident is still under investigation. Source
Surging transhipment cargo means SE Asia ports must cooperate, not compete
15/10/2024
The traditional competitive dynamics among Southeast Asia’s major ports – Singapore, Port Klang, and Tanjung Pelepas – have evolved into a more cooperative relationship due to unprecedented challenges from the Red Sea crisis and an early peak season. These three ports collectively handle around 65 million TEU annually, with Singapore processing 39 million TEU (63% utilization), Port Klang handling 14 million TEU (72% utilization), and
Tanjung Pelepas managing 10.5 million TEU (82% utilization) in 2023.
The shift from competition to cooperation has become necessary as these ports face increasing pressure to manage disruptions and schedule changes, particularly due to the Red Sea crisis. As Port Klang general manager Subramaniam Karuppiah explains, being the first Southeast Asian port of call on Europe-Asia eastbound routes means they often handle additional transhipment requests from carriers trying to maintain schedules, requiring heightened communication and cooperation among the three ports to manage the flow of cargo effectively. Source
Carriers battle for market share as demand falls and alliance shuffle looms
15/10/2024
Container shipping companies are aggressively competing for market share ahead of the 2025 alliance reshuffling, maintaining high capacity levels despite falling freight rates. According to Linerlytica, only 0.3% of the active fleet (37 ships totaling 77,185 TEU) is currently idle, and carriers continue to acquire additional vessels through the charter market, with major operators like Maersk, CMA CGM, Cosco, Hapag-Lloyd, and Evergreen actively securing new charters or renewals. The charter market is experiencing limited vessel availability across all size segments, with forward fixtures becoming common even for smaller vessels.
This aggressive capacity maintenance is particularly evident in key shipping routes, with Asia-Europe routes showing a 25% year-over-year increase in capacity to 7.33 million TEU (504 ships). While Asia-US East Coast capacity decreased slightly by 3% due to recent strikes, Asia-US West Coast capacity increased by 22%. The carriers’ reluctance to reduce capacity, especially on the Asia-Europe routes where capacity is expected to increase by over 25% in coming weeks, is making it difficult to implement planned General Rate Increases (GRI) of $1,000-$2,000 per 40ft container scheduled for November 1. Source
No freight rate easing on the horizon – Drewry
18/10/2024
Drewry, a maritime consultancy, predicts that despite the expected addition of three million TEUs of new shipping capacity in 2025, ongoing market disruptions will continue to drive freight rates higher. This forecast considers multiple factors, including potential US East Coast port strikes, increased carbon taxes from the emission trading system (expected to rise 75% from January), and the consultancy’s extended prediction that Red Sea disruptions and Cape of Good Hope rerouting will continue until at least 2026, rather than their previous estimate of early 2025.
The combination of these challenges, along with the reorganization of shipping alliances next year and MSC’s operation in what’s described as a “quasi single-carrier network alliance,” suggests that container freight rates will remain well above pre-pandemic levels. While global freight rates have already increased by 87% on average compared to pre-pandemic 2019, Drewry notes that even the potential reopening of the Suez Canal (which could boost shipping capacity by about 25%) is unlikely to provide significant relief, as container transhipment operations remain vulnerable to delays and missed connections. Source
Calling accuracy brought to bear as schedule reliability dips
18/10/2024
Global liner trade schedule reliability has experienced significant challenges in 2024, dropping to 52.1% in July, representing a 12% year-on-year decrease. This decline is largely attributed to Houthi rebel attacks in the Red Sea forcing vessels to reroute around Africa, resulting in average delays of five or more days. Despite these challenges, Maersk, currently the most reliable carrier with 54.6% accuracy, is confident it can achieve 90% reliability through its new Gemini Cooperation vessel-sharing arrangement with Hapag-Lloyd, set to begin February 1, 2025, after the end of its 2M alliance with MSC.
However, Maersk executives, including COO Karsten Kildahl, have expressed concerns about potential fleet overcapacity, particularly once Suez Canal traffic eventually resumes. While MSC plans to operate independently with its expanded fleet of about 850 vessels, Maersk and Hapag-Lloyd are advising their clients to prepare for an eventual return to Suez Canal routes, though for now, the Gemini Cooperation remains committed to the longer Africa route due to ongoing security concerns in the Red Sea region. 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
