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: On the import side: 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 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).
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.
- CTCT : 3-5 days delay
- MPT : 0-2 days delay
PORT ELIZABETH
The port has experienced strong winds during the week.
- PECT : 1-3 days delay
- NCT : 3-5 days delay
AFRICA & INDIAN OCEAN ISLANDS
Mozambique: South Africa has temporarily closed its main border with neighbouring Mozambique amid heightened safety concerns, as protests over last month’s disputed presidential election continue to escalate.
The ongoing demonstrations were catalysed by Venancio Mondlane, the runner-up candidate in Mozambique’s October 9th election, who has refused to accept the official results and claims to have been the rightful victor. The protests are slated to culminate in a “national shutdown” and march to the capital city of Maputo on October 6th. Rights groups have reported that security forces have killed around two dozen people since the contested election, prompting Mozambique’s defence minister to threaten deploying the military to quell the weeks of deadly post-electoral unrest.
More in-depth articles here:
- https://www.news24.com/news24/africa/news/mozambique-threatens-to-deploy-army-to-quell-protests-20241105
- https://www.reuters.com/world/africa/south-africa-closes-main-border-with-mozambique-post-election-protests-escalate-2024-11-06/
- https://www.cnbcafrica.com/2024/south-africa-closes-main-border-with-mozambique-as-post-election-protests-escalate/
Sea Freight: 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.
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.
Air Freight: Increased demand for exports is leading to increased rate pressure and space shortages – pre-booking is advised.
Air France is no longer servicing: Ougadougou, Burkina Faso, Bamako, N’djamena, Niamey.
ANGOLA
- Berthing delay of 1 day experienced at Luanda port.
GHANA
- Berthing delays of 2 days experienced at Tema port.
IVORY COAST
- Berthing delay of 1 day experienced at Abidjan port.
KENYA
- Berthing delays of 2 days experienced at Mombasa port.
MAURITIUS
- Berthing delays of 5 days experienced at Port Louis.
MOZAMBIQUE
- Berthing delay of 1 day experienced at Maputo port.
NAMIBIA
- Berthing delays of 6 days experienced at Walvis Bay port.
NIGERIA
- Berthing delay of 1 day experienced at Apapa port.
SENEGAL
- Berthing delays of 4 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
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 schedules 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 6 days experienced at this port. Please be advised that Canadian Union of Public Employees (CUPE) issued a new strike notice to the MEA, with the “unlimited” strike scheduled to commence on Thursday, October 31, 2024, at 11:00 AM, directed solely at Termont Terminals, Montreal
Toronto
- Berthing delays of 3 days experienced at this port.
Vancouver
- Berthing delays of 4 days experienced at this port. In response to the 72 hrs. strike notice issued by the ILWU 514, the BCMEA has initiated a coastwide lockout, impacting the ports of Vancouver and Prince Rupert, starting November 4, 2024.
USA
International Longshoremen’s Association (ILA) Negotiations – 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 3 days. Crane delivery at Port Liberty Terminal in Bayonne is complete, and berths 1 and 2 are now available for vessels
- Norfolk – Vessel waiting time is up to 2 days. One cranes is out of service.
- Charleston – Vessel waiting time is up to 7 days.
- Savannah – Vessel waiting time is up to 4 days.
- Miami/Port Everglades – Vessel waiting time is up to 2 days.
- Houston – Vessel waiting time is up to 2 days.
- Oakland – Vessel waiting time is up to 1 day.
- Los Angeles/Long Beach – Vessel waiting time is up to 3 days.
- Seattle – Vessel waiting time is up to 1 day. T18 will be closed on November 8, 11, and 22, 2024.
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 2 days experienced at Santos port.
MEXICO
- Berthing delays of 3 days experienced at Altamira port, 4 days at Veracruz port, and 5 days at Manzanillo port.
NORTH WEST CONTINENT, UNITED KINGDOM, MEDITERRANEAN
Spain: Severe flooding has caused devastation to Eastern Spain. The impact on freight and logistics is now being felt, with shipping lines taking a massive hit to their scheduling. Some airlines are seeing a significant volume increase due to the floods. Valencia’s port and airport both experienced closures, and services to and from these gateways remain severely disrupted. Many other transport networks (Including rail & road) have been seriously affected.
See links to websites for futher reading:
- https://theloadstar.com/port-of-valencia-slowly-gets-back-to-work-after-floods-from-rainstorms/
- https://www.automotivelogistics.media/inbound-logistics/historic-floods-in-valencia-impact-automotive-supply-chain/46328.article
- https://www.lloydslist.com/LL1151259/Port-of-Valencia-reopens-after-devastating-floods
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 3 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. Terminal CTA is experiencing backlog and congestion. Terminal with berthing restrictions due to crane dismantling.
ITALY
- Berthing delays of 4 days experienced at Genova and La Spezia ports.
NETHERLANDS
- Berthing delays of 2 days experienced at Rotterdam port.
SPAIN
- Berthing delays of 2 days experienced at Barcelona port. On October 29th, the Valencia region experienced heavy rainfall, resulting in severe flooding, over 51 casualties, road closures, and damage to infrastructure. The Valencia CFS has been affected by flooding in the surrounding areas, as well as electricity and system blackouts. We anticipate delays in our normal operations at the Valencia port for inbound and outbound containers.
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):
- Santa Rita – vessel will call Cape Town prior to Port Elizabeth on its southbound voyage. The vessel will omit Cape Town on its northbound voyage. All imports will be discharged in Cape Town on the southbound call on 2nd November.
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.
Capacity constraints continue to be experienced on services out of the Indian Sub-Continent.
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 4 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):
- BFAD Pacific – vessel will call Point Terminal due to current delays experienced at Pier 2.
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: For Imports out of the Far East, increased peak season demand has resulted in congestion, elevated freight rates and lengthened transit times. As always we are working closely with the carriers to ensure the best possible outcomes. On the Export side all operations are running smoothly.
HONG KONG
- Berthing delay of 1 day experienced at this port.
KOREA
- Berthing delays of 3 days 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.
QINGDAO
- Berthing delays of 2 days experienced at this port.
SHANGHAI
- Berthing delays of 3 days experienced at this port.
SHEKOU / YANTIAN
- Berthing delays of 1 day experienced at Shekou port and 2 days at Yantian port.
XIAMEN
- Berthing delays of 2 days experienced at this port.
XINGANG
- Berthing delay of 1 day experienced at this port.
SINGAPORE
- Berthing delay of 1 day being experienced at this port. FCL containers transshipping in Singapore have expected delays of 2 weeks.
TAIWAN
- Berthing delays of 2 days experienced at Kaohsiung port. 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 2 days at Hai Phong port.
NEWS ARTICLES
Transnet blames the weather as it shrugs off demurrage issue
31/10/2024
Transnet, the state-owned company that manages South Africa’s ports, has been facing criticism from transporters and logistics companies over demurrage fees. Demurrage fees are charges imposed by shipping lines on harbor carriers and their clients for the late return of containers. Transnet claims it does not charge these fees and is not responsible for the delays that lead to them. However, transporters say their hands are tied, as they risk facing penalties from shipping lines if they don’t pay the fees.
The transporters argue that the delays are often caused by Transnet’s own inefficiencies, such as lack of equipment and unreliable truck booking systems. Transnet acknowledges that it faces challenges, including inclement weather and equipment issues, but claims it is working to address these problems. The company says it is due to receive new straddle carrier components by the end of 2024, which will help improve its operations.
The dispute highlights the broader issues facing South Africa’s ports, which are crucial to the country’s trade and economic growth. Transporters argue that Transnet, as the logistics utility, has a responsibility to ensure the efficient movement of cargo through the ports. They claim that the delays and increased costs are ultimately passed on to consumers, leading to a higher cost of living. Transnet maintains that it is doing its best to address the problems, but the industry remains frustrated with the ongoing challenges. Source
Canada’s west coast port employers lock out union workers set to strike
01/11/2024
Canada’s west coast ports, including Vancouver and Prince Rupert, are facing potential labor disruptions. The International Longshore and Warehouse Union (ILWU) Local 514 has issued a strike notice for Monday, November 4th. In response, the British Columbia Maritime Employers Association (BCMEA) has announced a coast-wide lockout of ILWU Local 514 workers, which could shut down all cargo operations across the province, except for grain vessels and cruise operations.
On the East Coast, the Port of Montreal’s Termont-operated terminals have been closed since an “unlimited” strike began yesterday. The Maritime Employers Association (MEA) has expressed concern over the drop in volume at the port, which has forced it to make some organizational cuts. The MEA is urging the government to intervene, as it cannot grant the union’s demand to change work hours without formal negotiations. Meanwhile, the looming threat of a potential US East and Gulf Coast port strike in January is also causing concern among forwarders and shippers. Source
Forwarders warn shippers to expect a second ILA-USMX work stoppage
01/11/2024
The work stoppage at US East and Gulf coast ports in early October was called off after three days, bringing relief to shippers. While it took some time to clear the congestion at affected ports like Savannah, the situation was not as severe as the predicted system-wide paralysis. Some shippers are not too concerned about a potential second standoff between unions and port employers in January, as they have become somewhat jaded by the frequent work stoppage threats in the US and Canada over the past couple of years. However, others are worried that the issue will flare up again and last much longer, with heavy repercussions for traffic flows.
Executives at some logistics companies, like Team Worldwide, see a strike in January as a major concern, as they expect an extended confrontation over the issue of port automation. This could result in a reduction of labor at the ports, which is an existential issue for the unions. Some shippers have already taken steps to secure their inbound flows, such as routing imports through West Coast gateways or exploring options like Canadian ports. There are also efforts by importers to speed up shipments to adjust their inventories in advance of a potential work stoppage, contributing to the early peak season in container traffic. Source
New container innovation could solve old supply-chain issues
31/10/2024
A cargo innovation company called Compact Container Systems (CCS) from Florida has introduced what it claims is the world’s first five-in-one, foldable 40-foot high-cube shipping container called the SeaFold HC 40. This container aims to address the operational inefficiencies in the transportation and logistics supply chain, particularly the issue of over 20% of all ISO containers returning to their port of origin empty. CCS says the SeaFold can reduce container repositioning costs by 56%, storage space by 80%, and carbon emissions by up to 70%.
The company’s CEO states that the ability to fit five folded containers in the same space as a single standard 40-foot high-cube container is a transformative innovation for managing container movements, optimizing storage capacity, and reducing emissions. The SeaFold 40 has been extensively engineered and tested to meet all ISO standards, and it is compatible with standard port and terminal equipment, requiring no special handling. This container is designed to provide a safer, more efficient, and more sustainable solution for cargo transportation and storage, especially during peak seasons when empty container repositioning is a challenge. Source
‘Desperate’ GRIs by carriers prop up Asia-Europe spot rates, for now
01/11/2024
A cargo innovation company called Compact Container Systems (CCS) from Florida has introduced what it claims is the world’s first five-in-one, foldable 40-foot high-cube shipping container called the SeaFold HC 40. This container aims to address the operational inefficiencies in the transportation and logistics supply chain, particularly the issue of over 20% of all ISO containers returning to their port of origin empty. CCS says the SeaFold can reduce container repositioning costs by 56%, storage space by 80%, and carbon emissions by up to 70%.
The company’s CEO states that the ability to fit five folded containers in the same space as a single standard 40-foot high-cube container is a transformative innovation for managing container movements, optimizing storage capacity, and reducing emissions. The SeaFold 40 has been extensively engineered and tested to meet all ISO standards, and it is compatible with standard port and terminal equipment, requiring no special handling. This container is designed to provide a safer, more efficient, and more sustainable solution for cargo transportation and storage, especially during peak seasons when empty container repositioning is a challenge. Source
Hackers target CMA CGM Group
01/11/2024
Hackers have been impersonating the identity of shipping company CMA CGM in email conversations with the company’s customers. They are then stealing funds by asking the customers to pay invoices through a “new” bank account. CMA CGM has warned its customers about this fraud, stating that the hackers may intercept genuine conversations and replace CMA CGM’s email with a fake one, continuing the conversation and requesting a change in bank account details. Hackers may also contact customers directly through unusual channels like social media, claiming financial distress and requesting urgent payment.
CMA CGM has advised its customers to be extremely vigilant, as the company does not communicate bank account details through customer service channels or any other means outside of official invoices. The company has asked customers who receive such requests not to reply or forward the emails, as they could be phishing attempts, and to report any suspicious activity to their regular CMA CGM contact person. 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
