Freight & Logistics Update 30 October 2024

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: there has been an increase in peak season volumes which results in lengthened transit times, increased congestion,  and in some cases higher freight rates. We expect this trend to continue as we head towards December.

On 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.

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.

Durban Terminal is experiencing serious operational delays across all operational sectors (Including Waterside, Landside and Rail side operations).

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.

• Pier 1 : 3-5 days delay
• Pier 2 : 8-12 days delay
• Durban Point : 3 days delay

 

CAPE TOWN

The port has experienced strong winds during the week. Traffic volumes and operations continue as per normal. 

• CTCT : 3-5 days delay
• MPT : 0-2 days delay

 

PORT ELIZABETH

The port has experienced strong winds during the week. Normal volumes of traffic and operations continue as per normal.

• 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 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.

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.

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 delay of 1 day experienced at Luanda port.

 

GHANA

• Berthing delays of 2 days experienced at Tema port.
•  The Ghana Shippers Authority issued a notice advising of downtime of the ICUMS system since Wednesday, 23rd October which has resulted in delays in the delivery of cargo at various ports across the country. The system was restored on Friday, 25th October.

 

IVORY COAST

• Berthing delays of 4 days experienced at Abidjan port.

 

KENYA

• Berthing delays of 2 days experienced at Mombasa port.

 

MAURITIUS

• Berthing delays of 3 days experienced at Port Louis.

 

MOZAMBIQUE

• Berthing delay of 1 day experienced at Maputo port.

 

NAMIBIA

• Berthing delays of 4 days experienced at Walvis Bay port.

 

NIGERIA

• Berthing delays of 2 days experienced at Apapa port.

 

SENEGAL

• Berthing delay of 1 day 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: 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 as well as the additional congestion & delays caused by the US port strikes & hurricanes.

Congestion caused by Hurricane Milton continues to be felt at ports such as Freeport, Houston, Miami and other gulf ports. In function of this, Maersk has made several adjustments to their Transatlantic schedule,s and are bringing in alternative routings via Europe and the Far East to deal with their South African destined cargo.

 

CANADA

Montreal

• Berthing delays of 3 days experienced at this port. The union representing longshoremen at the Port of Montreal (CUPE 375) has announced a 24-hour work stoppage starting on Sunday, October 27 at 07:00 hrs. and ending on Monday, October 28 at 07:00 hrs. This strike will affect container terminals operated by Montreal Gateway Terminals (MGT) and Termont, halting all vessel and yard operations during this period.

Toronto

• Berthing delays of 5 days experienced at this port.

Vancouver

• Berthing delays of 4 days experienced at this port.

 

USA

Terminals Updates:

• New York/New Jersey – Vessel waiting time is up to 5 days.
• Norfolk – Vessel waiting time is up to 3 days. Two cranes are out of service.
• Charleston – Vessel waiting time is up to 4 days.
• Savannah – Vessel waiting time is up to 7 days.
• Miami/Port Everglades – Vessel waiting time is up to 6 days.
• Houston – Vessel waiting time is up to 4 days.
• Oakland – Vessel waiting time is up to 4 days.
• 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 November 8, 2024.

 

Vessel Scheduling Amendments (Information below is correct at time of publication):

• MSC Lorena – with voyage 437S/441N will omit Port Elizabeth call and proceed to Durban and Cape Town. All Port Elizabeth import cargo will discharge in Cape Town and transfer onto the next Mesawa vessel. Exports will be transferred to the next vessel.

 

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 port, 5 days at Veracruz port, and 8 days at Manzanillo port.

 

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: 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 4 days experienced at Antwerp port.

 

FRANCE

• Berthing delays of 4 days experienced at Le Havre port.

 

GERMANY

• Berthing delays of 4 days experienced at Hamburg port and 6 days at Bremerhaven port. Terminals with berth congestion as all main liner berth are fully occupied into beginning of November.

 

ITALY

• Berthing delays of 2 days experienced at Genova port and 4 days at La Spezia port.

 

NETHERLANDS

• Berthing delays of 4 days experienced at Rotterdam port.

 

SPAIN

• Berthing delays of 4 days experienced at Barcelona port.

 

SWEDEN

• Berthing delays of 7 days experienced at Gothenburg port.

 

TURKEY

• Berthing delay of 1 day experienced at Istanbul port.

 

UNITED KINGDOM

• Berthing delays of 3 days experienced at London Gateway port.

 

INDIAN SUB-CONTINENT & MIDDLE EAST

 

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.

Sea Freight: Import services out of the Indian Sub-Continent remain under pressure with increased peak season demand causing capacity constraints.

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 2 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 delays of 6 days experienced at Beirut port.

 

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 date):

• Stanley A – with voyage 0MTIFW1MA induced an earlier berthing at DCT. Vessel will perform a split call and call Multi-Purpose Terminal after discharging the balance of units before proceeding to Durban Container Terminal – Pier 2 for loading export cargo.

 

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 delay of 1 day 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.

 

NINGBO

• Berthing delays of 2 days experienced at this port. Berthing delays may vary from terminal to terminal.

 

PHILIPPINES

• Operations halted at 3pm on Thursday, 24th October due to Typhoon Kristine. Operations resumed on Friday as per normal.

 

QINGDAO

• Berthing delays of 2 days experienced at this port. Intermittent port closure due to string winds.

 

SHANGHAI

• Berthing delays of 2 days experienced at this port. Vessel bunching seen outside of the port.

 

SHEKOU / YANTIAN

• Berthing delay of 1 day experienced at Shekou and Yantian ports.

 

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 weeks.

 

TAIWAN

• Berthing delays of 3 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 no delays at Hai Phong port.

 

NEWS ARTICLES

 

Low availability of equipment an ongoing problem – Transnet

22/10/2024

Transnet, the state-owned logistics company, is facing significant challenges due to a shortage of equipment, particularly straddle carriers. This is causing delays and disruptions in port operations, impacting the entire freight industry. Despite ongoing efforts to address the issue, Transnet is still struggling to provide the necessary equipment to meet the demands of South Africa’s logistics sector. The company has appealed to the industry for patience and understanding as they work to resolve the problem and restore normal operations. Source

Transnet sheds light on efforts to improve equipment failure

23/10/2024

Transnet has responded to concerns about equipment inefficiencies at the Durban Container Terminals (DCT) Pier 2. Transnet has said that component parts for 20 straddle carriers will be received by the end of November, and that four straddle carriers will be assembled and commissioned every month, with the first batch of four deployed in operations by the end of January 2025.

Transnet also addressed the issue of import storage at the terminal. The utility stated that it reviews and extends import storage whenever the terminal faces challenges such as inclement weather or low equipment availability. However, Transnet noted that extensions are only granted for containers that are pre-assigned and do not have road stops, and that the import-free storage dates are communicated to customers daily. Transnet has asked for private-sector support in its efforts to find solutions for congestion at the DCT. Source

African port developments have not boosted logistics

22/10/2024

African ports have received around $15 billion in investments since 2005, allowing them to upgrade and handle larger cargo volumes. This has led to a nearly 50% increase in container traffic through African ports, from 24.5 million units in 2011 to 35.8 million in 2021. However, a new report from the Africa Finance Corporation (AFC) has raised concerns that these port expansions have not yet led to more efficient inland logistics and supply chains across the continent.

The AFC report found that African governments have neglected road and railway networks, which are of poor quality, underutilized, and unevenly distributed. This makes it difficult to transport goods efficiently across the continent, with some trucks spending more than 10 days in three landlocked countries. The report also cites human factors, such as countries protecting their local industries and numerous roadblocks from authorities, that increase the cost of doing business in Africa. Experts say countries need to work together to invest in and manage highways to improve the free flow of goods and people across the continent. Source

Overtime ban at port of Montreal goes on as ‘special mediator’ is rejected

22/10/2024

The dispute at the port of Montreal in Canada shows no signs of a prompt resolution. The Canadian Minister of Labour, Steven MacKinnon, had proposed appointing a “special mediator” to help the Maritime Employers Association (MEA) and Montréal Longshoremen’s union Local 375 resume negotiations without pressure tactics for a 90-day period. However, the parties were unable to reach an agreement on this proposal, and the minister said a mediator would not be appointed. The minister urged the parties to find a path forward towards a negotiated settlement as quickly as possible.

Meanwhile, an overtime ban that started on October 11 at the port is set to continue indefinitely. Forwarders and shippers are hoping for a resolution to the stalemate before potential strikes at U.S. East and Gulf coast ports resume in the new year. The Montreal Port Authority remains concerned about the impact of pressure tactics on the logistics chain and the supply of goods. Despite the dispute, container throughput at the port has remained relatively consistent in recent months, but a full-blown strike would more severely affect operations. Source

MSC ship first in line for delays with Montreal dockers set for Sunday strike

24/10/2024

The Maritime Employers Association (MEA) has received a strike notice from the Port of Montréal Longshoremen’s Union, CUPE Local 375, indicating that a 24-hour strike action will take place at Canada’s largest container gateway, the Port of Montreal, starting on Sunday at 7 am and ending the following day at 6:59 am. The MEA has predicted that the effects of this strike will be felt at the port for much longer, as previous strikes have paralyzed operations for several days and caused significant operational problems, affecting the stability and reliability of the port and the broader supply chains in Quebec and Canada.

According to the article, container volumes at the Port of Montreal have declined by 24% since 2022, with much of this cargo shifted to U.S. East Coast ports. The port handled 1.7 million TEUs in 2021 and 2022, but this declined to 1.5 million TEUs in 2023. So far this year, the port has handled 1.1 million TEUs. The MEA and the unions have rejected a government proposal for a special mediator, and the dispute shows no signs of a resolution, with the MEA set to meet the Federal Mediation and Conciliation Service next week. Source

Brazil’s port privatisation plans accelerate

22/10/2024

The Brazilian government is accelerating its port privatization plans, announcing the auction of 35 terminals, with 22 scheduled to be auctioned between now and the end of 2025, including three before the end of this year. The key sales include a new terminal at Itaguaí and a container terminal at the port of Santos. The Brazilian ports landscape is undergoing rapid changes, with CMA CGM buying a 48% stake in terminal operator Santos Brasil last month, and Mediterranean Shipping Co (MSC) striking a deal to acquire a majority stake in Brazilian port and maritime logistics operator Wilson Sons. Source

More cargo chaos at Chittagong Port as transport operators strike

21/10/2024

Shippers are facing more disruptions at Chittagong Port in Bangladesh, as transport operators have begun a 48-hour strike. The strike, called by the Chittagong District Prime Move Trailer Workers Union, is expected to impact the movement of 3,000 to 4,000 TEUs of containers every day at the port. The union secretary general warned that the strike could cause many containers to miss their designated feeder and mother vessels if it continues.

The union president blamed two of the largest transport operators in the region, Mohammadia Enterprise and Asif International, for not implementing an agreement signed in April. This agreement required the operators to provide appointment letters and identity cards to workers, as well as meet government-imposed minimum wage requirements. The legality of the strike has been questioned by the general secretary of the Bangladesh Covered Van-Truck-Prime Mover Goods Transport Owners Association, who claims the union members are enforcing the strike illegally. As a result, around 117 prime movers have been out of action since October 6. Source

Freight rates on major ocean trades out of India continue to slide

24/10/2024

The freight rate slide on the larger trade lanes out of India shows no signs of stopping, as head-haul volumes for container carriers remain tight. Spot rates on the India-US East Coast trade have plunged below $3,000 per TEU from a high of more than $10,000 three months ago, while rates on India-Europe routes have more than halved in two months, down to about $2,000 per TEU from $5,000 in August. These rate setbacks for carriers come despite steady capacity problems from sporadic sailing disruptions, such as ONE facing vessel availability issues on its India-North America service. Freight forwarders expect rates for bookings to the US and Europe to further soften through December.

However, there is a silver lining for carriers operating on the India-Africa trade, predominantly targeting agricultural exports. Ocean rates from Indian ports to Africa have significantly strengthened in recent days due to volume pickups, after the Indian government abolished or lowered export taxes on some agricultural products like rice. Meanwhile, the overall export outlook is not so rosy, as exporters face challenges with trade finance and the impact of international trade disruptions and volatile commodity prices. India is also bracing for the incoming Cyclone Dana, which is expected to make landfall on the east coast late on Thursday. Source

Boxports struggle as vessel bunching approaches covid levels

21/10/2024

Container ports are experiencing chaotic schedules not seen since the COVID-19 pandemic. Vessel bunching, where multiple vessels sail on the same week on the same service, has increased sharply this year, according to a report from Danish consultancy Sea-Intelligence. This issue is particularly prevalent on the Asia-Europe trade, largely due to the ongoing shipping crisis in the Red Sea. Schedule delays can lead to increased vessel bunching, which creates larger pressure on ports and terminals, resulting in congestion and a crunch on the use of truck, rail, and barge capacity. Sea-Intelligence warned that there is no indication that this pressure on ports will be alleviated anytime soon.

The Houthis of Yemen have largely cut off container shipping from transiting the Suez Canal, leading to a mass rerouting of container ships around the Cape of Good Hope. This has inevitably brought about vessel bunching and spikes in congestion around the world, not helped by strike action from supply chain workers. For instance, Singapore’s port has seen about 90% of container vessels arriving off-schedule, compared to an average of 77% in 2023, and vessel port stays at PSA have also increased by 22% compared to the same period last year. To address the severe congestion, PSA Singapore has had to take various measures, such as reactivating older berths and yards, and adding significant manpower. Source

5 Key Insights from UNCTAD’s 2024 Review of Maritime Transport: Challenges and Opportunities for Global Shipping

22/10/2024

The 2024 Review of Maritime Transport report by UNCTAD provides a comprehensive analysis of the current state and future outlook of the global maritime industry. The report examines how geopolitical tensions, climate risks, and economic pressures are reshaping maritime transport, while also highlighting the critical need for decarbonization and digital innovation.

The report stresses the urgency of addressing key challenges facing the maritime industry, such as the vulnerability of strategic chokepoints, the impact of disruptions on global trade and inflation, the slow progress in decarbonizing the shipping sector, and the need to enhance port performance and trade facilitation through digital technologies. The report calls for increased international cooperation, investment in resilient infrastructure, and a focus on sustainability to build a more resilient and efficient maritime sector that can support global trade and economic growth.

5 Key Insights:

1. Chokepoint Vulnerabilities Threaten Global Supply Chains:
   • Strategic maritime chokepoints are becoming increasingly vulnerable to disruptions from climate change, geopolitical conflicts, and regional instability.
   • These disruptions have forced vessels to take longer routes, increasing fuel consumption, operational costs, and carbon emissions.
   • The report calls for strengthened international cooperation and investment in the resilience of these critical routes to prevent future disruptions.
2. Maritime Trade Rebounds, But Risks Persist:
   • Global maritime trade grew by 2.4% in 2023, but risks related to geopolitical instability and climate change continue to weigh on long-term recovery.
   • The report emphasizes the importance of diversifying shipping corridors and fostering regional trade agreements to reduce reliance on vulnerable chokepoints.
3. Rising Freight Rates Drive Inflation and Threaten Growth:
   • Disruptions at chokepoints and increased operational costs have driven up freight rates, exacerbating inflation and undermining economic growth, particularly in Small Island Developing States (SIDS) and Least Developed Countries (LDCs).
   • The report calls for enhanced monitoring of global freight markets and international cooperation to streamline supply chains and reduce shipping costs.
4. Decarbonizing Shipping Demands Faster Fleet Renewal:
   • The maritime industry’s transition to low-carbon operations is lagging, with slow adoption of alternative fuel technologies and the scrapping of older, less efficient vessels.
   • The report urges the industry and policymakers to prioritize investments in cleaner, more fuel-efficient vessels and technologies to accelerate the decarbonization of the sector.
5. Enhancing Trade Facilitation and Port Performance is Critical:
   • Improving port performance and trade facilitation is essential to ensure the resilience and efficiency of global maritime trade.
   • The report calls for the accelerated adoption of digital technologies, such as AI and blockchain, to streamline port operations and enhance supply chain efficiency.
   • The report also emphasizes the need for investment in climate-proof port infrastructure and stronger public-private partnerships to future-proof the maritime industry against disruptions. Source

Red Sea crisis proving ‘a boom period’ for feeder operators

24/10/2024

The disruption in ocean shipping has proven to be a boon for feeder operators, who have been rapidly expanding their fleets over the past year. Singapore-based X-Press Feeders and DP World-owned Unifeeder have both significantly grown their container carrying capacity, by 21.8% and 17.9% respectively, since last October. This growth is largely attributed to the ongoing crisis in the Red Sea, which has forced mainline carriers to bypass the Suez Canal and utilize third-party feeder services instead.

The increased demand for feeder services has led to a boom period for these operators, who are benefiting from the disruptions to liner schedules. However, the article notes that feeder charter rates have begun to decline, and the outlook for future growth is mixed, with potential headwinds from slower intra-Asia trade and an expected oversupply of vessels. Nonetheless, liners’ need for flexible and nimble feeder services, particularly in the face of upcoming alliance shake-ups, is expected to continue driving opportunities for these niche operators. Source

Carriers may have ‘overshot’ on capacity and will need to blank more sailings

25/10/2024

Container spot freight rates on the major export routes out of China have continued to decline, with drops observed on both the transpacific and Asia-Europe trades. However, the transatlantic trade has seen a contrasting trend, with rates increasing significantly on the Rotterdam-New York leg, up 28% week-over-week. This is attributed to carriers successfully implementing a Peak Season Surcharge (PSS) in September due to strong demand and tighter capacity, as well as the temporary introduction of “workforce disruption surcharges” in anticipation of a potential U.S. East Coast port strike, which ultimately did not materialize.

Looking ahead, experts predict a sideways rate development on the transatlantic trade in the near future, as reduced capacity and steady demand are expected to support higher spot rates compared to August levels. In contrast, the continued decline in transpacific rates is attributed to growing overcapacity on the trade, as carriers have deployed significantly more capacity in recent months despite near-record demand. Analysts warn that unless carriers take decisive action to match capacity with demand through blank sailings or service cancellations, transpacific spot rates are likely to erode at an even faster pace in the coming months. 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