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: 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.
Sea Freight:
- Weather warnings issued for parts of the South African coastline (week 35). Port operations in Cape Town & Durban are expected.
- South Africa to NWC/UK/West Mediterranean – MSC Vessels omitting Coega Port
- MSC have advised that the line will no longer accept to co-load of 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.
- Pier 1 : 7-9 days delay
- Pier 2 : 10-16 days delay
- Durban Point : 3 days delay
CAPE TOWN
The port has experienced windy weather during the week.
- CTCT : 2-4 days delay
- MPT : 1-2 days delay
PORT ELIZABETH
The port has experienced strong winds and high swells during the week.
- PECT : 2-4 days delay
- NCT : 1-5 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 2 days experienced at Luanda port.
GHANA
- Berthing delays of 3 days experienced at Tema port.
IVORY COAST
- Berthing delays of 3 days experienced at Abidjan port.
KENYA
- Berthing delay of 2 day experienced at Mombasa port.
MAURITIUS
- Berthing delays of 2 days experienced at Port Louis.
MOZAMBIQUE
- Berthing delays of 6 days experienced at Maputo port.
NAMIBIA
- Berthing delays of 9 days experienced at Walvis Bay port.
NIGERIA
- Berthing delay of 1 day experienced at Apapa port.
SENEGAL
- Berthing delays of 2 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
The US celebrates Labor day on Monday 2nd September – most companies will be closed for the day.
Air Freight: Operations are running smoothly, this despite strong demand which is set to continue for the remainder of the year.
Sea Freight:
Canada: A ruling obliging over 9000 rail workers to remain at work has helped avoid further service disruptions and has been widely welcomed. See below links for further information .
https://www.seatrade-maritime.com/logistics/canada-rail-unions-call-strike-appeal-federal-courts
USA: Meanwhile in the USA, The International Longshoremen’s Association (ILA) representing workers on the US East and Gulf coasts are still threatening strikes starting on the 1st October. See below links to websites that discuss this in greater detail.
CANADA
The Canadian Industrial Relations Board (CIRB) has mandated that no further labor stoppages, including lockouts or strikes, can occur during the arbitration process. As a result, the strike notice issued on August 23 by the Teamsters Canada Rail Conference (TCRC) to CN has been voided.
Montreal
- Berthing delay of 1 day 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 8 days experienced at this port.
Vancouver
- Berthing delays of 4 days experienced at this port.
USA
Please note that our US partners (including Puerto Rico) will be closed on Monday, Sept 2, 2024 in observance of the Labor Day holiday.
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 3 days. Two cranes reported out of order with no significant impact on operations.
- Charleston – Vessel waiting time is up to 2 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 2 days.
- Los Angeles/Long Beach – Vessel waiting time is up to 2 days.
- Seattle – Vessel waiting time is up to 1 day. T18 will now be open on August 23 and 30, 2024. Husky Terminal will have hoot gates on August 26, 27, 28, and 29, 2024.
Vessel Scheduling Amendments (information below is correct at time of weekly publication)
- MSC Carmen and MSC Jersey – will phase out of the AMEX service. The MSC Carmen will be replaced by the MSC Spring III and the MSC Jersey will be replaced by the MSC Resilient III. Both vessels Cape Town imports will be discharged in Durban to connect onto the SAECS service into Cape Town.
- Maersk Vallvik – with voyage 427S/431N will omit Cape Town call. Cape Town imports will discharge in Durban and connect onto the Santa Rita 242N. Cape Town exports will be advanced to the MSC Lorena 432N.
- Filotimo – with voyage 429S/433N will have a terminal change and now call Pier 1 instead of Point Terminal at Durban port.
- MSC Lorena – with voyage 428S/423N will omit Coega call and proceed directly to Cape Town after Durban. Port Elizabeth imports will be discharged in Durban to connect onto the Horizon with voyage 414E.
LATIN AMERICA
All Air & Sea Freight services to and from the USA running relatively smoothly.
ARGENTINA
- Berthing delays of 4 days experienced at Buenos Aires port.
BRAZIL
- Berthing delays of 5 days experienced at Santos port.
MEXICO
- Berthing delays of 2 days experienced at Altamira port and 3 days at Manzanillo and Veracruz ports.
NORTH WEST CONTINENT, UNITED KINGDOM, MEDITERRANEAN
Air Freight: 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 4 days experienced at Antwerp port.
FRANCE
- Berthing delay of 1 day experienced at Le Havre port.
GERMANY
- Berthing delays of 3 days experienced at Hamburg port and no days at Bremerhaven port.
ITALY
- Berthing delays of 4 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 4 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 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 the Santa Rita.
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.
India’s indefinite port strike, scheduled to start August 28th, was averted at the last minute as government officials and unions agreed a new deal on wages, service conditions and pensions. We expect operations to resume as normal from August 29th.
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.
INDIA
- Berthing delay of 1 day experienced at Nhava Sheva port and 3 days at Chennai port.
UNITED ARAB EMIRATES
- Berthing delay of 1 day experienced at Jebel Ali port.
Vessel Scheduling Amendments (information below is correct at time of weekly publication):
- Stanley A – with voyage 434N will have a terminal change and now call Point Terminal in Durban.
ASIA PACIFIC (Including Oceania)
The combination of the Peak Season kicking off & the upcoming Chinese “Golden week” holidays (1st & the 7th of October) will likely result in a surge in demand for space in September across all modes of Transport. Wherever possible we encourage our clients and partners to pre-book as far in advance as possible.
Sea Freight: The port of Singapore remains heavily congested – This impacting services (both imports and exports) that are routed via Singapore.
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 delays of 2 days experienced at Port Kelang.
NANSHA
- No berthing delays experienced at this port.
QINGDAO
- Berthing delays of 2 days experienced at this port.
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 and Yantian ports.
XIAMEN
- Berthing delay of 1 day 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. FCL containers transshipping in Singapore have expected delays of 2-3 weeks.
TAIWAN
- Berthing delay of 1 day 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.
INDUSTRY NEWS
Transnet plugs away at solving harbour carrier headaches
21/08/2024
Transnet has doubled the review period for slots awarded to harbour carriers at the Port of Durban from two to four times daily, aiming to decongest Pier 2. This change, implemented on August 22, emerged from daily meetings with private-sector stakeholders during a two-week trial period testing various initiatives to improve container movement. Transnet Port Terminals (TPT) CEO Earle Peters stated that the increased review frequency allows for quicker reassignment of unused slots, and initial feedback suggests the changes are showing promise.
However, some industry sources remain skeptical about the effectiveness of these measures. While larger fleet operations are benefiting from the Group Import Release (GIR) initiative for clients with 50 or more containers, smaller carriers are still struggling to secure slots and align their operations with TPT’s 24/7 schedule. Critics argue that the trial phase doesn’t address fundamental issues, such as the different requirements for import and export processes, and may not adequately support small and medium-sized carriers in the sector. Source
Port of Cape Town working hard to sort out STS breakdowns
23/08/2024
The Port of Cape Town has announced potential delays in vessel turnaround times and compromised customer satisfaction due to malfunctioning ship-to-shore (STS) cranes. As of August 22, six cranes were operational while three were under repair. Transnet’s managing executive for the Western Cape region, Oscar Borchards, stated that their equipment manufacturer, Liebherr, was working to address the issue, with expectations to have two more cranes back in operation by August 24. The port typically requires seven cranes for optimal performance, and the current situation is negatively impacting operations.
To address these challenges, Cape Town Container Terminal (CTCT) plans to launch a reliability program for all nine cranes in September. This program will involve a staggered approach, taking one crane out of service at a time for two weeks of maintenance. Parts required for improved reliability have started arriving in preparation for the program’s commencement. Borchards has committed to keeping stakeholders and customers updated on developments, acknowledging the port’s recent struggles with weather-related challenges and the need to improve its resilience. Source
US east coast port strike would be a ‘spot rate lifeline’ for ocean carriers
19/08/24
The potential US east and Gulf coast dock strike, set for October 1st by ILA president Harold Daggett, could paradoxically benefit ocean carriers by preventing a collapse in shipping rates. While container spot rates from Asia to US coasts remain significantly higher than last year, carriers fear a sharp decline if demand weakens. The threat of a strike has already driven rate surges, and an actual strike could sustain higher rates through the winter, offsetting concerns about overcapacity due to new ship deliveries and changes in alliance structures.
However, this situation presents a complex scenario for carriers. While they publicly claim to be working on mitigating the impact of potential industrial action, privately some view the disruption as beneficial for maintaining rates. The industry faces challenges including an early peak season driven by front-loading of holiday products, significant fleet capacity increases, and potential weakness in the traditionally slack season. Carriers must also navigate maintaining shipper loyalty in a potentially weak demand environment, especially given past issues with contract adherence during lucrative spot market conditions. Source
Canadian government steps in to end rail strike and force arbitration
23/08/2024
The Canadian government has intervened to end the rail strike that began yesterday, ordering Canadian Pacific Kansas City (CPKC) and Canadian National (CN) to resume operations and enter binding arbitration with the Teamsters Union. Labour Minister Steve MacKinnon cited the need to secure industrial peace and the potential impact on North American economies as reasons for the intervention. The Canada Industrial Relations Board (CIRB) will extend expired collective agreements until new ones are signed, with the government expecting trains to be running within days.
However, the Teamsters Union has expressed dissatisfaction with the government’s quick decision to suspend the collective bargaining process. The union plans to review the arbitration referral and consult legal counsel before determining its next steps, claiming that the government has allowed the rail operators to sidestep safety concerns. Both CPKC and CN had been pushing for arbitration, which the union had previously refused. CPKC expressed disappointment at the union’s decision to contest the government order but remains prepared to resume service when instructed by the CIRB. Source
Floods swamp highways in Bangladesh, truckers stranded in 40km queue
23/08/2024
Heavy flooding in Bangladesh has affected 11 districts, impacting nearly 4.5 million people and causing at least 13 deaths. The floods, resulting from continuous rain in the southeast and the Indian state of Tripura, have severely disrupted export-import activities by submerging parts of the Dhaka-Chittagong highway, the main cargo route.
The flooding has caused significant delays and obstructions for cargo trucks, with some areas of the highway reported to be waist-deep in water. This has led to a substantial decrease in the number of trucks reaching the Chittagong inland depots, with only 2,100 export cargo trucks arriving in the past 24 hours, compared to the usual 3,500. The situation is expected to persist, as the Met office predicts continued rainfall for the next three days. Source
Shipping alliance shake-up will make waves during new contract season
21/08/2024
The upcoming contract negotiation season for ocean shipping will be unique due to major changes in shipping alliances. Maersk and Hapag-Lloyd are leaving their current alliances to form the Gemini Cooperation, while MSC will operate independently. This restructuring leaves shippers uncertain about which alliances to choose for long-term contracts and whether more changes are coming. The reshuffle will likely impact market shares and pricing strategies, with some alliances potentially struggling to maintain their competitiveness in certain trade routes.
The new Gemini Cooperation aims for 90% schedule reliability, which could be attractive to shippers amid market volatility. However, experts question whether this goal is achievable given ongoing disruptions. The effectiveness of Gemini’s proposed hub-and-spoke model remains unproven, and some shippers are cautious about potential delays. Meanwhile, MSC is expected to leverage its financial strength and capacity to thrive independently. With the current Red Sea diversions affecting contractual commitments, there’s uncertainty about the value of ocean contracts in this changing landscape. Source
Newbuilds are surging but open tonnage remains down
23/08/2024
Despite the addition of over two million TEU of new container vessels to the global fleet in 2024, the availability of ships for charter remains at record low levels, with only 0.6% of the world’s 30 million TEU capacity currently idle. This scarcity poses challenges for shipping companies trying to manage schedule delays and necessary maintenance. The situation is further complicated by the need to reroute ships around Africa due to the Red Sea crisis, which has increased capacity requirements by 10-20% for global container trades.
However, industry analysts warn of potential oversupply in the coming years, with newbuild vessels totaling about 6.6 million TEU (nearly 30% of the current global fleet) scheduled for delivery in 2024-2025. This influx, driven by extensive ordering during the pandemic’s profit boom, may lead to significant pressure on freight rates and carrier profitability. Despite these long-term concerns, the immediate challenge for carriers remains finding sufficient tonnage to meet current demand, with the tight charter market likely to persist in the near term. Source
Dry freight container production surpasses earlier all-time high
23/08/2024
Drewry forecasts that 2024 will be the second-highest year on record for dry freight container manufacturing, with production in China reaching over 850,000 TEUs in July alone. This surge is driven by strong exports from Asia, congestion at major transhipment hubs, and decreased container productivity due to extended voyage times caused by the Red Sea crisis. The availability of 40ft high-cube containers has become particularly tight, with 1.4 million units delivered in the first seven months of 2024, a tenfold increase compared to the same period in 2023.
While dry freight container production is booming, the reefer container sector is showing relative weakness. Although reefer box production increased in the second quarter, global seaborne reefer trade decreased by 0.7% year-on-year in 2023, following a 1.5% decline in 2022. The tonnage of reefer cargo on routes typically including the Red Sea fell by more than 5% year-on-year in 2023, even before the recent supply chain issues began. Overall, 2024 is shaping up to be the year of the dry freight container in the shipping industry. Source
Asia-Europe spot rates soften, while transpac prices harden as dock strike threatens
23/08/2024
Transpacific container spot rates are increasing, particularly for routes to the US East Coast, due to potential industrial action at East Coast ports starting October 1. The Asia-US East Coast rate has risen 157% compared to last year, while the Asia-US West Coast rate is up 186%. With negotiations stalled between the International Longshoremen’s Association and the United States Maritime Alliance, a strike seems likely, which could severely impact shipping capacity and cause rates to surge further, especially on the Asia-US West Coast route.
In contrast, rates on the Asia-Europe route are beginning to decline as carriers struggle to fill their allocations after an early peak season. Despite this, rates remain significantly higher than last year, with the Asia-North Europe spot rate still 340% above the previous year’s level. Shippers are seeing weekly rate decreases but remain cautious about how potential US strikes could affect rates globally. The current market volatility has prompted carriers to maintain a cautious outlook despite recent rate increases on some routes. Source
The challenges for containerships braving the waters around the Cape
23/08/ 2024
Recent incidents involving container losses from ships rounding the Cape of Good Hope have raised concerns about the suitability of large containerships for challenging ocean conditions. The CMA CGM Benjamin Franklin and CMA CGM Belem lost 44 and 99 containers respectively, highlighting the risks of this route. A major contributing factor is ‘parametric rolling’, where wave patterns match a ship’s rolling motion, potentially causing container stacks to buckle or topple. The danger is compounded by discrepancies between planned and actual container stowage, with studies showing up to 20% difference.
The shift to Cape of Good Hope routes, necessitated by security issues in the Suez Canal and Red Sea, has exposed ships to these rougher conditions more frequently. Climate change is expected to exacerbate these challenges, with a study predicting shipping’s climate-related annual costs could rise from $3 billion today to $7.5 billion by 2050. Industry experts, like those at TT Club, are urging for continued efforts to make global logistics safer and more sustainable in the face of these growing risks. 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
