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.
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.
DURBAN
The port has experienced windy weather during the week.
- Pier 1 : 6-7 days delay
- Pier 2 : 8-17 days delay
- Durban Point : 3 days delay
CAPE TOWN
The port has experienced strong winds during the week.
- CTCT : 1-2 days delay
- MPT : 1-2 days delay
PORT ELIZABETH
The port has experienced strong winds and high swells during the week.
- PECT : 1-6 days delay
- NCT : 3-5 days delay
AFRICA & INDIAN OCEAN ISLANDS
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: 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 2 days experienced at Abidjan port.
KENYA
- Berthing delay of 4 days experienced at Mombasa port.
MAURITIUS
- Berthing delays of 3 days experienced at Port Louis.
MOZAMBIQUE
- Berthing delays of 6 days experienced at Maputo port.
NAMIBIA
- Berthing delays of 3 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 7 days experienced at Dar es Salaam port. High levels of congestion continue to be experienced at this port.
NORTH AMERICA
Air Freight: Operations are running smoothly, this despite strong demand which is set to continue for the remainder of the year.
Sea Freight:
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.
See below multiple articles providing an update on the situation:
Assessing the potential of a port strike – Supply Chain Management Review (scmr.com)
‘We’ll shut them down’: Port union near strike, cites contract impasse (cnbc.com)
US Port Workers Meet on Wages, Issue Fresh Strike Threat (msn.com)
Port union voices unanimous support for strike, escalating U.S. supply chain fears (msn.com)
US Port Talks Kick Off in Effort to Avoid Strike | Transport Topics (ttnews.com)
US East Coast ports union meets over wage demand, preps for possible strike | Reuters
CANADA
Montreal
- Berthing delays of 3 days experienced at this port.
Toronto
- Berthing delays of 10 days experienced at this port.
Vancouver
- Berthing delays of 6 days experienced at this port.
USA
The risk of strikes at East and Gulf Coast ports is growing, with the International Longshoremen’s Association (ILA) threatening action from 1st October. Container spot rates from Asia to the U.S. have remained high, and carriers acknowledge that a strike could sustain these elevated rates through the end of the year.
Terminals Updates:
- New York/New Jersey – Vessel waiting time is up to 3 days. A power outage in Port Elizabeth (APMT /Maher) and Port Newark (PNCT) on August 27, 2024, temporarily halted terminal operations. Power was restored later that day, but residual congestion on port roadways remains.
- 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 4 days.
- Savannah – Vessel waiting time is up to 5 days.
- Miami/Port Everglades – Vessel waiting time is up to 4 days.
- Houston – Vessel waiting time is up to 3 days.
- Oakland – Vessel waiting time is up to 3 days.
- Los Angeles/Long Beach – Vessel waiting time is up to 2 days.
- Seattle – Vessel waiting time is up to 4 days. Washington United Terminal and Husky are limiting their operations to 1 berth operation until further notice, due to lack of rail cars to evacuate Imports. They are also delaying startup operations on vessels and skipping shifts for the same reason, if needed. T18 will now be open on August 30, 2024.
Vessel Scheduling Amendments (information below is correct at time of weekly publication date):
- MSC Carmen– will no longer phase out of the AMEX service.
- MSC Lorena – with voyage 432N will call Cape Town Multi-Purpose Terminal instead of Cape Town Container Terminal.
LATIN AMERICA
ARGENTINA
- Berthing delays of 8 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 and Veracruz ports, while Manzanillo has delays of 4 days.
NORTH WEST CONTINENT, UNITED KINGDOM, MEDITERRANEAN
Air Freight: Export services into Europe: All running smoothly.
Import services from Europe: With EU Summer holidays behind us and peak season now in full swing – Increased demand and space constraints expected to increase
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 3 days experienced at Antwerp port.
FRANCE
- Berthing delays of 3 days experienced at Le Havre port.
GERMANY
- Berthing delays of 5 days experienced at Hamburg port and 1 day at Bremerhaven port. Strike announced for Friday 30/08 with 8 hours of operational stoppage.
ITALY
- Berthing delays of 3 days experienced at Genova port and 2 days at La Spezia port.
NETHERLANDS
- Berthing delays of 4 days experienced at Rotterdam port.
SPAIN
- Berthing delays of 3 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 3 days experienced at London Gateway port.
Vessel Scheduling Amendments (information below is correct at time of publication date):
- MSC Bianca – this vessel will phase out of the NWC service to South Africa and will phase into the INGWE service after calling Coega on 05/09/2024.
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.
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.
Red Sea
The Greek-owned tanker *MV Sounion*, carrying about a million barrels of crude oil, was abandoned by its crew after being struck by projectiles fired by Yemen’s Houthi movement on 21 August. While the Houthis initially agreed to allow the tanker to be towed away to prevent an environmental disaster, attempts to tow the burning vessel were deemed unsafe and halted. The *Sounion* remains at anchor with no visible signs of an oil spill.
Despite claims of environmental concern, the Houthis targeted two more oil tankers the same day, posing identical environmental risks. Today marks 265 days of Red Sea diversions, with naval forces struggling to ensure safe passage. The situation remains unresolved and is unlikely to be anytime soon, heightening the threat of a major environmental disaster.
India
Container flows from India’s west coast ports, particularly Mundra, are facing severe disruption due to extreme weather and capacity pressures, resulting in significant vessel delays and cargo backlogs. While ports are working to clear the congestion, it may take a week or more to restore normal operations, further straining regional supply chains.
We are closely monitoring the situation and collaborating with our local partners to safeguard our clients’ supply chains, making any necessary adjustments swiftly to minimise impact.
INDIA
- Berthing delays of 2 days experienced at Nhava Sheva and Chennai ports.
UNITED ARAB EMIRATES
- Berthing delays of 3 days experienced at Jebel Ali port.
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.
HONG KONG
- No berthing delays 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 delays of 3 days experienced at this port.
SHANGHAI
- Berthing delays of 3 days experienced at this port.
NINGBO
- Berthing delays of 2 days experienced at this port.
SHEKOU / YANTIAN
- Berthing delay of 1 day experienced at Shekou port and 3 days at Yantian port.
XIAMEN
- No berthing delays 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 delay of 1 day experienced at Hai Phong and Ho Chi Minh ports.
INDUSTRY NEWS
Movement down as wind and bad weather continue to lash ports
27/08/2024
Adverse weather conditions along South Africa’s coastline are significantly impacting container movement at the country’s ports, with Cape Town particularly affected. Wind speeds exceeding 60 km/h at the Cape Town Container Terminal have led to the suspension of container operations, with no improvements expected until Thursday. The South African Association of Freight Forwarders reports a 4% decrease in weekly container throughput across all ports, dropping from 7,036 to 6,747 containers per day due to weather-related issues.
The challenging conditions are causing operational delays and safety concerns in Cape Town, where gusting winds make it dangerous for ship-to-shore and quayside movements. As a result, harbour carriers are being restricted from entering the port to prevent congestion. Similar issues are affecting other ports, with Durban experiencing operational constraints due to strong winds, a fire at Berth 108, and equipment breakdowns. The combination of adverse weather, distressed vessels, and equipment problems is significantly impacting overall port performance across South Africa. Source
Potential solutions identified to solve harbour carrier hold-ups
30/08/2024
Transnet, South Africa’s state-owned logistics utility, is conducting a two-week testing phase at Durban Container Terminal (DCT) to improve harbour carrier efficiencies. Durban Terminals chief executive Earle Peters highlighted the need for adjustments in handling certain cargo types, particularly cold chain reefer boxes and out-of-gauge loads, to enhance movement fluidity. The company is also addressing challenges related to differing systems for import and export containers, which contribute to delays and congestion at the port.
To alleviate these issues, Transnet is advocating for a 24/7 operational model and has appealed to the private sector, through Business Unity South Africa (Busa), to adjust their container collection and delivery schedules. This move aims to reduce the concentration of movement during peak hours, typically between 8am and 8pm. While the trial phase may be extended, Peters believes that Transnet is making progress in resolving long-standing issues at DCT. The company is also working on improving communication and transparency with transporters, particularly regarding the truck-slot booking system. Source
Threat of more strikes at German ports as workers reject ‘inadequate’ offer
27/08/2024
German trade union ver.di has rejected the Central Association of German Seaport Operators’ (ZDS) latest collective agreement offer for 11,500 employees in German North Sea ports. The ZDS proposed two variants with different durations, both including inflation compensation bonuses, hourly wage increases, and improved shift bonuses and holiday allowances. However, ver.di members voted to reject both variants as insufficient, deeming them inadequate to reflect the necessary wage increases and relief expected by employees.
The rejection of these offers has raised concerns about potential strikes in major German ports, including Hamburg, Bremen, Bremerhaven, Wilhelmshaven, Brake, and Emden. Ver.di negotiator Maren Ulbrich emphasized the hard work of seaport employees and their contribution to supplying important goods to the population. She warned that the inadequate proposals have provoked employees and indicated that further warning strikes may follow if negotiations are not resumed with improved offers. The union has appealed to ZDS to return to the negotiating table and enhance their proposal. Source
Strike at major Indian ports called off, but supply chain challenges remain
28/08/2024
The threat of an indefinite strike by Indian port workers across 12 major ports has been averted after successful negotiations between union representatives and India’s shipping ministry. The new agreement, which will be valid for five years retroactively from January 2022, includes wage enhancements and additional benefits for approximately 20,000 workers. Union leaders view this as a significant achievement, particularly in light of increasing competition from privately operated ports.
The resolution of this potential strike has brought relief to the shipping and logistics communities, who were concerned about possible trade disruptions. This agreement comes at a crucial time, as Indian exporters are striving to maximize shipments during the peak season while already facing challenges due to the Red Sea crisis and related shipping diversions. Despite these ongoing logistics issues, which have impacted export performance, the cancellation of the strike is expected to help maintain smoother cargo flows through India’s major ports. Source
Ocean carriers ‘fire blanks’ ahead of China’s Golden Week holiday
30/08/2024
Ocean carriers are preemptively canceling export sailings from Asia to Europe and the US before the Chinese national holiday in October to avoid a potential container spot rate crash. Drewry’s assessment shows a 10% cancellation rate for September across major routes, with THE Alliance announcing the most cancellations. Carriers cite anticipated reductions in demand as the reason for these adjustments. Despite steady declines in spot rates over recent weeks, they remain significantly higher than last year, with Asia-North Europe rates still 350% above last year’s levels.
The transpacific route is also seeing stable rates, with slight weekly declines but still considerably higher year-on-year. Factors such as the potential US East Coast dock strike in October and new import tariffs are expected to support these rates despite softer demand. Meanwhile, transatlantic westbound rates from North Europe to the US East Coast remain stable around $2,000 per 40ft. Exporters are rushing to ship goods ahead of possible industrial action at East Coast ports. Overall, carriers are employing capacity management strategies to maintain rate levels and avoid a price war in the face of fluctuating demand. Source
Decrease of up to 70% in ocean rates anticipated
28/08/2024
Ocean freight rates could potentially drop by 70% in the second half of 2025, according to Linerlytica, potentially marking one of the largest decreases in containerization history. This projection is based on carriers’ inability to prevent rate slides since July, as shown by the Shanghai Container Freight Index (SCFI). The decline is attributed to waning demand, delivery of new ships adding to overcapacity, and weakening freight futures. However, Xeneta’s chief analyst, Peter Sand, suggests that such a significant drop would depend on resolving the Red Sea crisis and restoring vessel traffic through the Suez Canal.
The current market dynamics are complex, with total shipping volumes up 6.5% in the first half of 2024 compared to 2019, while the fleet has grown by 30.8% in the same period. The Red Sea disruption has led to longer sailing distances around South Africa, shifting the market from overcapacity to a tighter situation. Xeneta estimates that TEU miles in the first four months of 2024 have increased by 18.3% year-on-year, effectively balancing demand and supply, as reflected in current high contract and spot freight rates. Despite these factors, the market remains uncertain, with no rebound anticipated at the end of this year and no repetition of this year’s post-Chinese New Year rate rally expected in 2025. Source
Container ship orders surpass 2023 contracts
29/08/2024
Global demand for new container ships remains high, with order volumes reaching their third-highest level since 2008, according to BIMCO’s latest market analysis. Since 2021, a total of 10.47 million TEU of new capacity has been contracted, adding 44% to the sector’s capacity. This surge in orders, which began in late 2023 and accelerated throughout 2024, has been driven by demand for ultra-large vessels. Major shipping companies like Maersk and MSC are continuing to expand their fleets, with Maersk finalizing orders for 50 to 60 newbuild dual-fuel vessels and MSC partnering with China’s Hengli Heavy Industry.
BIMCO projects that the global container fleet will grow by at least 12% before the end of the decade, equivalent to an average annual growth rate of 2.4%. However, this growth could lead to oversupply if cargo volume growth doesn’t match the pace or if the Red Sea crisis ends, significantly lowering ship demand. The shipping industry has been slow to recycle older vessels due to increased demand for services, with only 150 ships totaling 240,000 TEU recycled since 2021. As a result, the average age of container vessels has risen from 13 years at the beginning of 2021 to 13.9 years in 2024. BIMCO suggests that recycling could increase significantly in the coming years, potentially retiring up to 10% of capacity and 20% of ships that are currently over 20 years old. Source
Arrival of new box ships and fewer blank sailings should ease port congestion
29/08/2024
Port congestion is expected to improve with the introduction of new vessels and the normalization of Red Sea diversions, but disruptions in the market are likely to persist, according to Drewry’s Ports & Terminal Insight editor, Eleanor Hadland. The maritime consultancy’s report highlighted a sharp rise in congestion linked to transshipment cargo, with Ms. Hadland advising shippers to seek direct services to avoid delays. She emphasized that reducing the number of blank sailings is crucial for easing congestion, as fixed weekly vessel schedules are essential for efficient terminal operations. The current congestion, exacerbated by blank sailings due to the Red Sea crisis, has led to a backlog of cargo, especially at transshipment terminals, creating a cycle of delays and reduced productivity.
Despite the challenges, Ms. Hadland expressed optimism, noting that the delivery of new vessels in the coming years will help alleviate congestion by filling gaps in mainline schedules and reducing yard delays. However, she warned that the risk of supply chain disruptions remains, citing potential strikes at US, German, and Canadian ports, as well as the increasing impact of climate change on the sector. While congestion may ease, ongoing risks mean the market will continue to face challenges. 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
