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.
As always, while peak season is a challenging time, at Inter-Sped we always push the hardest to ensure you achieve the very best outcomes possible.
SOUTH AFRICA
Air Freight
Imports: there has been an increase in peak season volumes, resulting in lengthened transit times, increased congestion, and in some cases, higher freight rates. We expect this trend to continue as we step into December.
Exports: Increased demand being felt to most destinations – resulting in increased freight rates and lengthened transit times.
Sea Freight
Strong winds continued to affect all the main South African ports.
Exports: There has been a massive surge in peak season volumes. 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 Railside operations).
N4 to Mozambique
The N4 corridor faces extreme congestion with some transporters having temporarily pulled back their trucks from the route in total.
To address this, the National Logistics Crisis Committee coordinated a large-scale law enforcement deployment involving agencies like Traffic, Border Management, SAPS, and the Cross Border Transport Agency. This operation, launched on November 25, aims to ensure safety and smooth operations. Road users are urged to follow instructions from law enforcement, who provide comprehensive services beyond traffic management.
DURBAN
The port has experienced windy weather during the week.
- Pier 1 : 4-6 days delay
- Pier 2 : 10-14 days delay
- Durban Point : 3 days delay
CAPE TOWN
The port has experienced strong wind speeds during the week.
- CTCT : 6-10 days delay
- MPT : 1-3 days delay
PORT ELIZABETH
The port has experienced windy weather during the week.
- PECT : 0-2 days delay
- NCT : 1-3 days delay
AFRICA & INDIAN OCEAN ISLANDS
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.
Kindly take note of severe delays being experienced on our import and export services to and from Mauritius including services to Indian Ocean Island destinations routed over Mauritius. This is due to capacity constraints, erratic scheduling, carrier cut and run activity and heavy swells generated by tropical cyclones in the region. Please expect delays to your cargo movement.
Air Freight
Exports: Increased demand 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.
Sea Freight
Exports: 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.
East African ports are experiencing congestion however no severe impact noted.
Tema Port is experiencing port congestion which affects many other West African destinations that tranship through this port.
Mauritius
Port Louis, Mauritius, is experiencing severe cargo delays due to infrastructure challenges, prompting major shipping lines to impose congestion surcharges on containers heading to the port.
India, a key trading partner with Mauritius, has seen expanding bilateral trade supported by a free-trade agreement signed in 2021, but these delays could impact supply chains for key exports like textiles, pharmaceuticals, and seafood.
Other carriers and regions, including South Africa, which relies on Port Louis for transshipment to Asia, may also be affected by the ongoing congestion.
ANGOLA
- Berthing delays of 4 days 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 3 days experienced at Mombasa port.
MAURITIUS
- Berthing delays of 7 days experienced at Port Louis.
MOZAMBIQUE
- Berthing delays of 6 days experienced at Maputo port.
NAMIBIA
- Berthing delays of 2 days experienced at Walvis Bay port.
NIGERIA
- Berthing delays of 3 days experienced at Apapa port.
SENEGAL
- Berthing delays of 5 days experienced at Dakar port.
TANZANIA
- Berthing delays of 3 days experienced at Dar es Salaam port.
NORTH AMERICA
Air Freight
Increased peak season volumes are causing increased congestion, lengthened transit times.
We continue to see a significant increase in Sea to Air conversions as port delays and schedule disruptions continue to plague Ocean freight shipments.
Sea Freight
Vessel scheduling amendments on the back of the peak season rush continue to be experienced.
CANADA
Canadians ports have resumed operations with recovery in progress, however delays are to be expected. Operations at all marine terminals in Vancouver and Prince Rupert are demonstrating robust productivity. Railcar supply from both CPKC and CN Rail remains strong, supporting recovery efforts. Clearing the backlog of vessels is anticipated to take an additional 2–3 weeks.
MONTREAL
- Berthing delays of 4 days experienced at this port.
TORONTO
- Berthing delays of 4 days experienced at this port.
VANCOUVER
- Berthing delays of 10 days experienced at this port.
USA
The ILA and the USMX will resume Master Contract discussions in November 2024, to discuss all outstanding issues to reach a new agreement. The two sides extended the Master Contract until January 15, 2025, and reached a tentative agreement on wages that is contingent on bargaining all open issues
Terminals Updates:
- NEW YORK / NEW JERSEY – Vessel waiting time is up to 4 days. APMT is preparing for arrival of new cranes next week, which will limit berth availability at berth 84 for a period of at least 2 – 3 weeks.
- NORFOLK– Vessel waiting time is up to 4 days. One crane is out of service and is expected to be back working in week 49.
- CHARLESTON – Vessel waiting time is up to 4 days.
- SAVANNAH – Vessel waiting time is up to 5 days.
- MIAMI – Vessel waiting time is up to 4 days.
- HOUSTON – Vessel waiting time is up to 1 day.
- OAKLAND – Vessel waiting time is up to 3 days. All terminals will be closed on November 28, 2024.
- LOS ANGELES/ LONG BEACH – Vessel waiting time is up to 2 days.
- SEATTLE – Vessel waiting time is up to 1 day. T18 will be closed on Nov 22, 2024. All terminals closed on November 28, 2024.
Vessel Scheduling Amendments (Information below is correct at time of weekly publication)::
- MSC Carmen – with voyage 447N will omit her Port Elizabeth call due to delays faced at Durban’s Point Terminal. Exports will be transferred to the GSL Lalo 448N and imports will discharge in Durban to connect onto the Horizon 432E.
- Maersk Vilnius – with voyage 438S/442N will perform a split call in Durban by completing discharge at Point Terminal before reverting to Pier 1 for her load call.
LATIN AMERICA
Peak season volume increases are being felt. It’s likely 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 8 days experienced at Santos port.
MEXICO
- Berthing delays of 3 days experienced at Altamira port, 5 days at Manzanillo port, and 8 days at Veracruz port.
NORTH WEST CONTINENT, UNITED KINGDOM, MEDITERRANEAN
Air Freight
Exports: There has been a surge in demand in services into Europe, we advise pre-booking where possible.
Imports: Increased demand and space constraints expected to increase, advise pre-booking where possible.
Sea Freight
Peak season demand continues to be felt, sailing schedules frequently being delayed or changed and transit times on the increase. As always, we recommend pre-booking as far in advance as possible.
BELGIUM
- Berthing delays of 2 days experienced at Antwerp port. Heavy winds expected over the coming weekend which might impact operations for all ports in Antwerp.
FRANCE
- Berthing delay of 1 day experienced at Le Havre port. Heavy winds expected over the coming weekend which might impact operations current forecast for Le Havre is less severe compared to the other ports.
GERMANY
- Berthing delays of 6 days experienced at Hamburg port and 1 day at Bremerhaven port. Heavy winds expected over the coming weekend which might impact operations for all ports in the Hamburg.
ITALY
- Berthing delays of 2 days experienced at Genova port and 3 days at La Spezia ports.
NETHERLANDS
- Berthing delays of 5 days experienced at Rotterdam port. Heavy winds expected over the coming weekend which might impact operations for all ports in Rotterdam.
SPAIN
- Berthing delays of 2 days experienced at Barcelona port.
SWEDEN
- Berthing delay of 1 day experienced at Gothenburg port.
TURKEY
- Berthing delays of 3 days experienced at Istanbul port.
UNITED KINGDOM
- Berthing delays of 5 days experienced at London Gateway port. Heavy winds expected over the coming weekend which might impact operations for all ports in the UK.
INDIAN SUB-CONTINENT & MIDDLE EAST
Air Freight
Exports & Imports: Services are for the most part running smoothly. However, in the Middle East, we continue to see airlines suspend services into Israel, Lebanon and other neighbouring territories.
Sea Freight
Imports: Services out of the Indian Sub-Continent remain under pressure with increased peak season demand causing capacity constraints.
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.
INDIA
- Berthing delay of 1 day experienced at Nhava Sheva and Chennai ports.
UNITED ARAB EMIRATES
- Berthing delays of 1 day experienced at Jebel Ali port.
ASIA PACIFIC (Including Oceania)
Air Freight
Imports: Increased peak season demand has resulted in congestion, elevated freight rates and lengthened transit times out of the Far East. As always we are working closely with the carriers to ensure the best possible outcomes. On the Export side all operations are running smoothly.
Sea Freight
Freight movements out of the Far East are running relatively smoothly, considering we are in peak season.
HONG KONG
- Berthing delay of 1 day experienced at this port.
KOREA
- Berthing delay of 1 day experienced at Busan port. Vessel bunching experienced.
MALAYSIA
- Berthing delay of 1 day experienced at Port Kelang. FCL containers transshipping in Tanjung Pelepas have expected delays of 1-2 weeks.
NANSHA
- Berthing delay of 1 day experienced at this port.
NINGBO
- Berthing delays of 4 days experienced at this port. Berth situation differs from terminal to terminal.
QINGDAO
- Berthing delay of 1 day experienced at this port.
SHANGHAI
- Berthing delays of 3 days experienced at this port. Vessel bunching experienced.
SHEKOU / YANTIAN
- Berthing delays of 2 days experienced at Shekou and Yantian ports.
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. Our partners office in Taiwan was closed on 31st October 2024 due to Typhoon weather being experienced.
THAILAND
- Berthing delay of 1 day experienced at Bangkok port.
VIETNAM
- Berthing delays of 1 day experienced at Ho Chi Minh port and no delays at Hai Phong port.
NEWS ARTICLES
Container movement at SA ports shows w-o-w improvement
20/11/2024
Container throughput at South Africa’s ports increased by 18.6% last week, rising from 10,176 to 12,012 TEUs per day, according to the South African Association of Freight Forwarders (Saaff) and Business Unity SA (Busa). Despite this improvement, operations faced typical challenges, including adverse weather, equipment breakdowns, and shortages. Cape Town experienced over 30 hours of weather-related delays, while Durban saw disruptions from storms and equipment failures. In the Eastern Cape, delays were caused by inclement weather and a vacant berth, while Richards Bay faced issues with an unprepared multipurpose terminal.
In related developments, the Transnet National Ports Authority announced the appointment of infrastructure advisory firm Zutari to validate the Island View Precinct Strategy and implementation plan for Durban’s port. This initiative reflects efforts to enhance port infrastructure and efficiency, despite operational setbacks. Source
Delays at Mauritius transhipment hub spark box line congestion surcharges
19/11/24
Port Louis, Mauritius’ transshipment hub, is experiencing significant cargo delays due to infrastructure issues, prompting major container lines like MSC and CMA CGM to impose congestion surcharges. MSC announced a $250 per TEU surcharge for Indian bookings starting December 1, while CMA CGM will charge $200 per TEU from December 15 to maintain service quality. These surcharges apply to both dry and refrigerated cargo. The delays and additional costs are impacting trade flows, with carriers such as Maersk also relying on Port Louis for transshipment movements to connect exports from South Africa to Asia.
India, one of Mauritius’s top trading partners, has seen bilateral trade grow from $207 million in 2005-06 to $555 million in 2022-23, supported by the 2021 Comprehensive Economic Cooperation and Partnership Agreement (CECPA). The deal facilitated free-trade access for hundreds of products, including textiles, pharmaceuticals, and seafood. While the agreement strengthens economic ties, current port delays threaten supply chain efficiency for both nations, underscoring the need for infrastructure improvements at Port Louis. Source
D&D charges likely as backlogged Canadian ports reopen
20/11/2024
Port operations across Canada have resumed following widespread strike action, but significant backlogs and delays remain. At Montreal’s port, where the strike began on October 31, over 5,000 TEUs are stored onsite, 22 vessels are either en route or anchored nearby, and 2,750 TEUs of rail cargo await handling. The Montreal Port Authority (MPA) warns that restoring supply chain fluidity could take weeks. Shipping lines like Maersk and Hapag-Lloyd have reported delays affecting services such as North Europe-Canada routes and THE Alliance’s AT1 and AT2 services. On the west coast, the Vancouver Fraser Port Authority (VFPA) has implemented priority-based anchorage systems to manage disruptions, but vessels like YM Plum and OOCL Veracruz have faced extended waiting times.
The strike’s aftermath has also led to a resurgence of detention and demurrage (D&D) charges as terminal operations restart. Maersk and other carriers have resumed D&D clocks but advised shippers to document unsuccessful attempts to secure container appointments due to high demand. With numerous vessels waiting offshore and berthing delays persisting, the VFPA has encouraged supply chain partners to coordinate arrivals and manage schedules more effectively. However, shippers and forwarders may still face difficulties in mitigating additional costs while the backlog is cleared. Source
German port takes delivery of container handling behemoths
22/11/2024
Hamburger Hafen und Logistik AG (HHLA)’s Container Terminal Burchardkai (CTB) has expanded its capacity with two new gantry cranes designed to handle Ultra Large Container Vessels (ULCVs) carrying up to 24,000 TEUs. The cranes, standing 80 meters tall with jibs of the same length, were delivered aboard the Zhen Hua 27 and will be installed at Berths 1 and 2 in the Waltershofer Hafen by the end of November. Commissioning is scheduled for early 2025, replacing older models and enhancing the terminal’s ability to manage megaships efficiently. By 2026, CTB plans to operate 18 megaship cranes as part of its 26-crane fleet to improve flexibility and handling capacity.
Sustainability is integral to CTB’s development. The new cranes, alongside storage and rail cranes and automated guided vehicles (AGVs), are powered entirely by renewable energy. Additionally, a new workshop will feature a photovoltaic system. These initiatives align with HHLA’s goal of achieving climate-neutral operations across Europe by 2040, reflecting a commitment to greener, more efficient port operations.Source
London Gateway Tapped as Gemini Cooperation’s UK Hub as Felixstowe Misses Out
22/11/2024
Maersk and Hapag-Lloyd have chosen London Gateway as the primary UK hub for their Gemini Cooperation, set to begin on February 1, 2025. This decision is part of a network optimization plan to enhance service reliability and efficiency by reducing port calls and adopting single operator loops. As a result, Felixstowe, the UK’s largest container port, will no longer be part of the Gemini network’s Asia-Europe services, though Maersk will continue its independent operations there. The move aligns with DP World’s £1 billion expansion of London Gateway, which aims to surpass Felixstowe as the UK’s largest container port within five years.
The Gemini Cooperation introduces a “hub and spoke” model, targeting 90% service reliability compared to the industry average of 53%. The change is expected to reduce Felixstowe’s traffic by about two large vessel calls per week, raising concerns among local leaders like MP Jenny Riddell-Carpenter, who emphasized Felixstowe’s key role in the UK’s trade network. Meanwhile, Middle East-Europe services via London Gateway and Trans-Atlantic services through Southampton remain unaffected. Maersk plans to release further details about the transition in the coming weeks.Source
Shipping reflects on a year of Red Sea chaos and 1,000 days of war in Ukraine
19/11/2024
Today marks one year since the start of the Red Sea crisis and 1,000 days since Russia’s full-scale invasion of Ukraine—two events that have profoundly disrupted global shipping. The Red Sea crisis began on November 19, 2022, when Houthi militants seized the Galaxy Leader, a car carrier, and its 25 crew members. Since then, over 120 vessels have been targeted in the region, making the Red Sea a no-go zone for much of the international merchant fleet. Meanwhile, the Russia-Ukraine war has transformed shipping patterns, especially in the Black Sea, rerouted Russian exports, and spurred the rise of a shadow fleet of tankers. Analysts, such as Vespucci Maritime’s Lars Jensen, suggest that while the Russia-Ukraine war might see a resolution by 2025, the Red Sea crisis shows no signs of abating.
The shipping industry faces an increasingly volatile decade, with geopolitical conflicts, canal disruptions, economic instability in China, and strict new regulations reshaping the landscape. Industry leaders at the Maritime CEO Forum in Monaco highlighted how this fragmentation creates opportunities but demands more ships to transport the same volumes of cargo. Michael Grey emphasized the human cost, stating that seafarers are often caught in the crossfire of global instability. Others, like Graham Porter of Tiger Group Investments, warned of a shift from global collaboration to isolationism. René Kofod-Olsen of V.Group summed up the challenges ahead, noting, “You don’t enter shipping to have a quiet life.” These seismic changes underline the growing unpredictability of the 2020s for global shipping. Source
Evergreen orders 60,500 new containers for growing liner fleet
21/11/2024
Evergreen has placed an order for 60,500 new containers at a cost of nearly $187 million, with suppliers including CXIC Group, Guangdong Fuwa Equipment Manufacturing, and Dong Fang International, a subsidiary of Cosco Shipping. This follows a surge in demand for containers as the Red Sea crisis tightens shipping and equipment supplies, keeping Chinese factories busy through year-end. Earlier this year, Evergreen invested heavily in six methanol dual-fuelled ships and 50,000 containers, and it recently sought quotes for 11 ultra-large container vessels with similar green fuel technology. These expansions align with the company’s growing fleet and strong financial performance, which saw a tripling of net profit to $3.5 billion in the first nine months of 2024, as container freight rates surged due to the Red Sea crisis.
In addition, Evergreen officially opened the fully automated Terminal 7 at Taiwan’s Kaohsiung Port, its new home base. Spanning 149 hectares and featuring five deepwater berths, the terminal can handle up to four 24,000-TEU ships simultaneously and has an annual processing capacity of 4.5 million TEUs. The project, completed over four years at a cost of $1 billion, was co-funded by the Taiwanese government and Evergreen. This facility strengthens Evergreen’s operational capabilities as it continues to expand its fleet and container capacity to meet global shipping demands. Source
More blanked voyages expected as carrier efforts to drive up rates falter
22/11/2024
Container spot rates remained mostly steady for a third consecutive week, showing minimal impact from a 15 November rate hike on Asia-Europe routes. Drewry’s World Container Index (WCI) reported a slight 1% global composite rate drop, though Shanghai-Rotterdam and Shanghai-Genoa routes saw modest increases of 1% and 3%, respectively. While these rates are significantly higher than last year—255% and 229% year-on-year—forwarders noted that carriers’ repeated attempts to raise rates have not been successful. Upcoming Freight All Kinds (FAK) rate increases set for 1 December are also viewed with skepticism, as forwarders expect minimal long-term effects on pricing. CMA CGM, MSC, and Hapag-Lloyd have announced new FAK rates for Asia-Europe and Asia-Mediterranean trades, but achieving these targets would require a dramatic 50% weekly rate increase, which industry experts deem unlikely.
Meanwhile, Asia-Europe contract negotiations are shifting from a traditional calendar year framework to a Q1-to-Q1 arrangement, with many shippers waiting until after Chinese New Year to finalize deals. Early agreements have shown rate increases over last year but still fall short of current spot rates. Across other trades, the WCI reported a 5% drop on the Shanghai-Los Angeles route and a flat rate for Shanghai-New York. To manage rates, carriers have announced blank sailings, with Drewry estimating 70 cancellations globally by year-end, impacting 10% of scheduled departures. Most blanks are concentrated on transpacific, transatlantic, and Asia-Europe trades. Drewry anticipates a 10% decline in vessel schedule reliability in the coming weeks and warns shippers to prepare for further disruptions as carriers cut capacity to stabilize rates. Source
SOURCES & REFERENCES
SACO CFR | Hapag Lloyd | Maersk | MSC | Transnet | The LoadStar Publications | gCaptain.com | Shipco Transport | Splash247.com | Freightnews | Seatrade Maritime News | Automotive Logistics | Lloyds List
Again, the Inter-Sped team is here for all freight and Logistics needs – We will always do our best for you and keep you posted on your shipments progress on an individual shipment level.
JJ & The Inter-Sped Team
