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, peak is in gaining pace with demand for space on the increase – as always we encourage all our customers & partners to start prebooking shipments as far in advance as possible. Exports – Increased demand being experienced across all regions leading to capacity constraints all round.
Sea Freight: Strong winds continued to affect all the main South African ports.
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.
The MSC Antonia, a Liberian-flagged container ship, lost 46 containers and damaged 305 others during severe weather off the South African coast on August 28, 2024. The vessel was en route from Colombo to New York. South African Maritime Safety Authority and Nelson Mandela Bay Municipality are conducting mop-up operations and urging caution to maritime operators and the public. The ship is now in Cape Town for assessment and repairs, while local authorities continue to collect debris along the coastline (already 2 tonnes cleared). The public is advised to report any sightings of containers or debris and to avoid handling any wreckage for safety reasons.
DURBAN
The port has experienced windy weather during the week.
- Pier 1 : 9-10 days delay
- Pier 2 : 11-15 days delay
- Durban Point : 3 days delay
CAPE TOWN
The port has experienced strong winds during the week.
- CTCT : 4-5 days delay
- MPT : 1-3 days delay
PORT ELIZABETH
The port has experienced windy weather during the week. Port reduced to a 1 berth operation with 2 berths occupied for vessel repairs.
- PECT : 3-4 days delay
- NCT : 6-10 days delay
AFRICA & INDIAN OCEAN ISLANDS
East African ports are experiencing congestion however no severe impact noted. 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.
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 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 2 days experienced at Port Louis.
MOZAMBIQUE
- Berthing delay of 1 day experienced at Maputo port.
NAMIBIA
- Berthing delays of 8 days experienced at Walvis Bay port.
NIGERIA
- Berthing delays of 2 days experienced at Apapa port.
SENEGAL
- Berthing delays of 2 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
US Strikes:
Port strikes are likely to begin on October 1st at major U.S. East and Gulf coast ports, potentially causing significant disruptions to U.S. trade and global logistics. This may lead to vessel congestion, delays, equipment shortages, and capacity issues, compounding existing challenges in global shipping. We are monitoring the situation closely and seeking alternatives, but delays are expected for vessels already in U.S. waters until the strike is resolved. https://docs.dsv.com/countries/south-africa/msc-customer-advisory/
Hurricane Helene:
Airport & port closures along with More than 400 roads closures in western North Carolina, the state Department of Transportation said Saturday morning.
More than 3 million without power: The remnants of Helene continued to knock out power for several states across the eastern US on Saturday, with roughly 3.1 million customers left in the dark in areas like South Carolina, Georgia, North Carolina, Florida and Ohio, according to PowerOutage.us.
+ Helene disrupts travel and delivery services: Helene has caused numerous disruptions to travel and delivery services. Several Amtrak trains arriving or departing Florida and Georgia have been canceled, the company said. Delivery services were also impacted, with UPS announcing it has suspended service to Florida, North Carolina and Georgia because of the storm. FedEx likewise suspended or limited its service in five states. Water inundated countless roadways across the region, making them impassable. In North Carolina, 290 roads were closed throughout the state, and Gov. Roy Cooper said the state’s transportation department is shutting down even more roadways as severe flooding, landslides and washed-out roads pose serious threats to public safety.
Air Freight: The full extent of of Hurricane Helene’s impact on air freight services remains to be seen. We will keep you posted with further updates on a regular basis.
BA are currently not accepting bookings into the USA , due to capacity constraints.
Sea Freight: The full extent of of Hurricane Helene’s impact on ocean freight services remains to be seen. We will keep you posted with further updates on a regular basis.
As port workers move closer to a strike and the East and Gulf ports, a huge number of importers and exporters are looking at alternative routings to help mitigate against possible strike disruptions. However, Hurricane Helene’s impact on the south east is already complicating these efforts. Again we are monitoring this closely and will keep you updated with regular updates.
Vessel scheduling amendments are on the increase – impacting both import and export services to and from the USA – with many changes only being advised last moment.
The USA have seen their peak season start much earlier than usual in preparation for the potential strike and the bulk of the import volume has come in already for the year-end shopping holiday season. No agreement has been reached between the Labor Unions and the USMX (United Stated Maritime Alliance). With the US Presidential Election scheduled on November 5th , the Labor Unions are hoping for the demands be approved to avoid a strike.
CANADA
Montreal
- Berthing delays of 3 days experienced at this port.
Toronto
- Berthing delays of 8 days experienced at this port.
Vancouver
- Berthing delays of 2 days experienced at this port.
USA
Terminals Updates:
- New York/New Jersey – Vessel waiting time is up to 2 days. Truck line congestion continues at Port Elizabeth / Port Newark roadways. APM Terminal will be open on September 21, 2024, and September 28, 2024, to help alleviate congestion and facilitate container deliveries prior to October 1, 2024.
- Norfolk – Vessel waiting time is up to 2 days. VIT will be open on September 21, 2024, and September 28, 2024, to help alleviate congestion and facilitate container deliveries prior to October 1,2024.
- Charleston – Vessel waiting time is up to 3 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 4 days.
- Oakland – Vessel waiting time is up to 5 days.
- Los Angeles/Long Beach – Vessel waiting time is up to 2 days.
- Seattle – Vessel waiting time is up to 7 days. Due to the current vessel schedule, Washington United Terminal will be offering limited gates the next week: On September 26 and 27 – WUT will have minimal import activity.
Vessel Scheduling Amendments (information below is correct at time of publication):
- MSC Jersey – will call Durban first before proceeding to Port Elizabeth. Vessel will omit Coega call.
LATIN AMERICA
All Air & Sea Freight services to and from Latin America running relatively smoothly.
ARGENTINA
- Berthing delays of 3 days experienced at Buenos Aires port.
BRAZIL
- Berthing delays of 2 days experienced at Santos port.
MEXICO
- Berthing delays of 3 days experienced at Altamira port, 2 days at Veracruz port and 4 days at Manzanillo port.
Vessel Scheduling Amendments (information below is correct at time of publication):
- Mediterranean Express – will revert to calling Pier 1 at Durban.
- Irenes Resolve – will revert to calling DCT at Durban instead of Pier 1.
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 4 days experienced at Antwerp port.
FRANCE
- Berthing delays of 4 days experienced at Le Havre port.
GERMANY
- Berthing delays of 5 days experienced at Hamburg port and 2 days at Bremerhaven port.
ITALY
- Berthing delays of 2 days experienced at Genova and La Spezia ports.
NETHERLANDS
- Berthing delays of 3 days experienced at Rotterdam port.
SPAIN
- Berthing delay of 1 day experienced at Barcelona port.
SWEDEN
- Berthing delay of 1 day experienced at Gothenburg port.
TURKEY
- Berthing delays of 4 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 publication):
- Santa Cruz – will voyage 243N will omit Cape Town call. All imports will discharge in Coega and transfer to the next available SAECS vessel.
- ONE Reassurance – will phase out of the SAECS service after calling London and will be replaced by the ONE Resilience.
INDIAN SUB-CONTINENT & MIDDLE EAST
India: Heavy inventory at Nhava Sheva’s APMT terminal, exceeding 20,000 TEUs, has caused severe congestion, with vehicles taking up to 18 hours to enter. This has affected other terminal movements, with total inventory reaching 75,000 TEUs. The congested yard space has led to containers being “buried” in stock, disrupting FIFO processes and causing financial holds. The resulting delays are tripling turnaround times. While the Nhava Sheva CFS team is working to manage the situation, some containers may miss cut-offs and be rolled over to later vessels.
Sea Freight: Import services out of the Indian Sub-Continent remain under pressure with increased demand causing capacity constraints Nhava Sheva’s APMT terminal is also battling serious congestion caused by excessive container stock (exceeding 20,000 TEUs). Vehicles are now taking up to 18 hours to enter. This is now having a knock on effect on other terminal movements. Export services to the region are running relatively smoothly.
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.https://www.reuters.com/business/aerospace-defense/airlines-suspend-flights-middle-east-tensions-rise-2024-08-08/
INDIA
- Berthing delay of 1 day experienced at Nhava Sheva and Chennai ports.
UNITED ARAB EMIRATES
- Berthing delays of 2 days experienced at Jebel Ali port.
Vessel Scheduling Amendments (information below is correct at time of weekly publication):
- Halsted – with voyage 432S will perform a split call at DCT to discharge on 21st September and load on 28th September.
- CMA CGM Valparaiso – with voyage 436N will perform full operations at DCT due to previous vessels early cut and run.
ASIA PACIFIC (Including Oceania)
China’s Golden week holiday’s are approaching, which also means a high demand for space in the weeks prior and post. Upcoming holidays in China are their Mid-Autumn festival from 15-17 September and then the week of 1 – 7 October for their National Day. In order to avoid disruptions within your supply chain, please ensure that you communicate with one of our team soonest so that we may advise accordingly.
Sea Freight: The port of Singapore remains heavily congested – This impacting services (both imports and exports) that are routed via Singapore. In a drive to avoid a fall in container rates, many shipping lines have blanked a number of export sailings from Asia – this prior to the Chinese national holiday in early October. The blank sailings will likely result in upward rate pressure.
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
- No berthing delays experienced at this port.
QINGDAO
- Berthing delay of 1 day experienced at this port.
SHANGHAI
- Berthing delays of 3 days experienced at this port. Berth situation expect to deteriorate further due to typhoon ‘Bebinca’ 16th September.
NINGBO
- Berthing delays of 4 days experienced at this port. Berth situation expect to deteriorate further due to typhoon ‘Bebinca’ 16th September.
SHEKOU / YANTIAN
- Berthing delay of 1 day experienced at Shekou and Yantian ports. Heavy congestion due to port closure caused by ‘Typhoon Yagi’.
XIAMEN
- No berthing delays 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 delay of 1 day experienced at Hai Phong and Ho Chi Minh ports.
NEWS ARTICLES
Ports of Cape Town and Ngqura receive new mooring units
18/09/2024
Transnet National Ports Authority (TNPA) has delivered six hydraulic shore tension units to the Ports of Cape Town and Ngqura, bringing the total to 12 units as part of a larger 52-unit procurement initiated in September 2023. These units are designed to address shipping and cargo-handling delays caused by high winds and sea swells, which often disrupt operations at these busy ports. The tension mooring system, placed on the quayside, helps ensure the safety of docked vessels by mitigating long-wave effects, resulting in minimized downtime and improved safety during operations.
The initiative has been welcomed by shipping companies, with CMA CGM South Africa reporting significant improvements in vessel stability, container productivity, and reduced port stay times. TNPA’s procurement plan includes distributing the 52 units across several ports, with Cape Town receiving 16, Durban 14, Port Elizabeth 8, Ngqura 6, and Saldanha and Richards Bay 4 each. The phased delivery of the remaining units is expected to be completed by early 2025, aligning with Transnet’s recovery plan to enhance operational efficiencies and improve customer service. Source
Southeast grapples with loss and destruction due to Hurricane Helene
A simplified recap of the CNN article:
Hurricane Helene caused widespread damage across the Southeast US.
At least 62 people died across 5 states: North Carolina, South Carolina, Georgia, Florida, and Virginia.
North Carolina is facing severe flooding, with over 200 people rescued and many still unaccounted for.
Infrastructure damage is extensive:
- Nearly 400 roads closed in North Carolina
- Over 2 million without power across the Southeast
- Many water treatment plants closed or without power
Georgia and South Carolina reported devastating damage, with officials comparing it to tornado or bomb damage.
Florida’s coast saw severe destruction, especially in areas recently hit by other hurricanes.
While Helene has weakened, additional rain is expected in the affected regions, which may worsen flooding in some areas. Source
Shipping lines brace for potential US strike
20/09/2024
Shipping lines are preparing for a potential strike at US East and Gulf coast ports due to ongoing negotiations between the International Longshoremen’s Association and the US Maritime Alliance. Major carriers, including Hapag-Lloyd, CMA CGM, and Mediterranean Shipping Company (MSC), have announced surcharges to address possible disruptions. These surcharges, ranging from $800 to $1,500 per container depending on size and type, are set to take effect in early to mid-October, coinciding with the expected strike start date.
The impact of a strike could be significant, with think tank Sea-Intelligence predicting that even a one-week strike in early October could cause backlogs until mid-November, while a two-week strike might affect operations into 2025. Carriers are advising importers to expedite documentation and customs clearance to retrieve cargo before any potential work stoppage. Despite the looming strike threat, shipping lines anticipate strong cargo traffic during the peak season but warn of possible congestion at ports worldwide. Source
Severe floods cause delay and disruption across central and east Europe
17/09/2024
Severe flooding across central and eastern Europe is causing significant transport delays and disruptions. Heavy rains have led to evacuations, bridge collapses, and at least 17 deaths in the region. Border crossings and roads have been closed in multiple countries, including Hungary, Poland, Romania, Czech Republic, Austria, and parts of southern Germany. Rail traffic has been severely impacted, with METRANS reporting a significant reduction or stoppage of services due to the extensive flooding.
Freight forwarders and shipping lines are warning customers of service disruptions and limitations. Kuehne + Nagel reported that its services to and from Austria, the Czech Republic, and northern ports are affected, with some terminals inaccessible or closed due to high water levels. The company also noted that trains on the route to and from Budapest are currently parked, with no clear indication of when regular freight train traffic will resume. MSC has stated that some container terminals in the intermodal network are facing operational limitations due to the flood conditions. The situation remains fluid, with authorities and logistics providers monitoring the development of flood levels, particularly on the Elbe River. Source
Port ops halted after STS crane collapse
17/09/2024
A ship-to-shore crane partially collapsed onto the MSC Riona, a vintage feeder container ship, at the Port of Yantian in Shenzhen, temporarily halting operations. The incident, which occurred around 08:40 local time, caused severe damage to the crane and knocked several containers overboard. Port authorities and MSC are assessing the damage and planning salvage operations. While the cause is under investigation, with adverse weather or mechanical failure as potential factors, the port aims to resume operations at the affected berth two as soon as safety checks and repairs are completed. The incident has disrupted operations at one of southern China’s busiest ports, leading to expected rerouting and adjustments to minimize delays. Source
Typhoon Bebinca shuts down port operations in Shanghai and Ningbo
17/09/2024
Typhoon Bebinca, the strongest to hit Shanghai since 1949, has caused significant disruptions to container terminal operations in Shanghai and neighboring Ningbo. Vessel arrivals at both ports dropped dramatically over the weekend, with Shanghai experiencing a 50% reduction and Ningbo seeing a near 90% decrease. As ships that moved away from the ports to avoid the storm return, severe vessel bunching is expected, potentially causing delays lasting over a week. Currently, ships are facing waiting times of 36-60 hours to berth in Shanghai and 24-48 hours in Ningbo as the ports work through the disruptions.
The situation is further complicated by ongoing effects from typhoon Yagi in southern China and Vietnam last week. Ports in these regions, including Yantian, are still recovering, with ships waiting up to four days to berth. Despite these widespread disruptions, industry analysts at Linerlytica suggest that the port congestion is unlikely to reverse the decline in long-haul freight rates due to stagnant cargo demand. They note that carriers continue to compete for market share ahead of alliance reshuffling, which is expected to keep rates low despite the operational challenges posed by the recent typhoons. Source
Asian carriers on a high as freight rates continue to spiral
20/09/2024
In Q2 2024, major ocean container carriers posted significant operating profits, with notable differences among them. While Maersk Ocean and Hapag-Lloyd saw improvements, moving from losses to profits, Asian carriers like Evergreen reported even higher profits, around $1 billion. Xeneta, an ocean freight rate intelligence platform, attributes this disparity to Asian carriers’ higher exposure to Far East export trades, where the largest freight rate increases have occurred in 2024.
Looking ahead, shippers face a challenging market that will require careful analysis before entering negotiations for new long-term contracts. Xeneta advises shippers to benchmark against individual carriers on their chosen trades, considering that carriers are impacted differently by market dynamics. The situation is expected to become more complex in 2025 with the formation of new alliances and varying service level offerings. Additionally, shippers need to balance multiple factors, including carbon emissions regulations, schedule reliability, equipment types, and potential disruptions such as strikes on the US East and Gulf Coasts. Source
Spot rate decline slows, but prices for some long-term ocean contracts soar
20/09/2024
Spot container freight rates on major east-west trade routes continued to decline this week, albeit at a slower pace with drops mostly in single digits. The Asia-North Europe trade saw the largest decrease, with Drewry’s World Container Index (WCI) reporting a 9% week-on-week drop for the Shanghai-Rotterdam route to $4,682 per 40ft. Despite this decline, rates remain nearly 300% higher than the same period last year. The Xeneta XSI for Asia-Europe short-term rates stood at $5,424 per 40ft, marking a 15% decrease from the previous week.
Interestingly, the long-term contract rate market is showing a different trend. Xeneta’s shipping analyst, Emily Stausboll, noted that while short-term rates on the Far East to North Europe trade decreased by 29% between July 1 and September 18, some lanes experienced significant increases in long-term contract rates. For instance, the Vietnam-Rotterdam trade saw average long-term rates nearly double from around $2,000 per 40ft in July to just over $3,600 currently. This indicates more volatility in the long-term market than is typically assumed.
Other trade routes showed mixed results. The WCI’s Shanghai-Genoa route dropped 6% to $4,928 per 40ft, while the transpacific Shanghai-Los Angeles route remained relatively stable with a 1% decline to $5,580 per 40ft. The transatlantic trade from Europe to North America saw slight increases, with Rotterdam-New York rates growing 2% to $2,056 per 40ft. However, Xeneta reported that rates on the North Europe-South America east coast trade have collapsed to historic lows, with little difference between contract and spot rates, reaching $535 per 40ft for long-term and $610 per 40ft for short-term rates. Source
How Geopolitical Tensions and Market Volatility Are Reshaping Global Maritime Trade
20/09/2024
Recent major developments in the shipping market have been driven more by disruption than traditional supply and demand factors, according to Jakub Walenkiewicz, Principal Market Analyst at DNV. Speaking at a seminar jointly produced by Reed Smith and DNV, Walenkiewicz emphasized that shipping markets have been fueled by miles rather than conventional economic models. He highlighted how unpredictable events like the Russian invasion of Ukraine and Red Sea disruptions have significantly impacted shipping markets, particularly in the tanker and container sectors.
The disruptions have led to unprecedented cash surpluses in the shipping industry. Walenkiewicz presented data showing current earnings for various ship types in Q3 2024 far exceeding their 10-year averages. He noted that these earnings are not a result of solid economic growth but rather stem from market inefficiencies and shifts in cargo flows. For instance, the tanker market boomed due to longer voyages caused by the Ukraine war, with crude oil ton-miles up 6% and refined product ton-miles up 12% compared to 2021. Additionally, about 20% of the tanker fleet is now part of a “shadow fleet” hauling Russian oil in contravention of sanctions.
This market situation has challenged traditional notions of shipping cycles. Instead of the typical “one good year followed by seven bad years,” nearly every segment of the market is earning above its ten-year average. This has led to an overheated newbuild market, with orders for containerships and gas carriers crowding out other categories. Resale prices for fairly new vessels are even exceeding newbuild prices due to multi-year wait times for new ship deliveries. Walenkiewicz suggested that investing in super-efficient vessels could be profitable in the coming years, even if markets don’t grow significantly, as these vessels are likely to command higher charter rates. 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
