News
Industry Update – July 2024
Attention: Shipping Manager
Situation in USA
- US Ports Strike Threat:
The International Longshoremen’s Association contract covering 45,000 dockworkers at three dozen ports stretching from Maine to Texas expires on Sept. 30. If there is no deal by then, the union could call a strike that would hit during the vital holiday container shipping season. We are hoping both sides can come to a satisfactory agreement to avoid any more disruptions to shipping trade lanes.
(Source: G Captain)
- Panama Canal drought recovery:
Panama Canal Authority (ACP) announced that it will increase the current number of daily transits from 32 to 33, effective July 11. Furthermore, this number will increase to 34 as of July 22, following the current and projected level of Gatun Lake for the coming weeks. With these progressive increases, by July 22 the Canal will have added two transits to the current schedule – one to the panamax locks (raising the daily transits to 25) and one to the neopanamax locks (increasing daily transits to 9).
(Source: FTA)
- Update – Baltimore Francis Scott Key Bridge Collapse:
The Port of Baltimore is now fully operational, with shipping lanes reopened and unrestricted.
(Source: FTA)
Situation in Canada
- Blank sailings on the rise at Canadian ports due to looming rail strike:
Shippers are planning for supply chain disruptions this month, after Canadian rail workers, affiliated with the Teamsters Canada Rail Conference (TCRC), voted overwhelmingly to re-authorise strike action and say they will walk out at the earliest opportunity. Strike action had previously been authorised for 22 May, but a government request to determine if rail services could be deemed as essential, put this on pause.
In addition to more imminent rail disruptions, intermodal cargo services at all Canadian container marine terminals would be affected, which could exacerbate port congestion throughout the country. In the event of a rail strike, affected ports would include the ports of Vancouver, Prince Rupert, Montreal, and Halifax.
(Source: Loadstar)
Situation in Europe
- Strikes at German and French Ports to bring congestion and delays:
Port workers affiliated with German trade union Verdi have threatened strike action at the country’s key hubs, adding to North European shipper stress as labour tensions also rise in France. Verdi is organising a series of dock strikes in Bremerhaven, Hamburg, Bremen and Emden after talks with the Central Association of German Seaport Operators (ZDS) last week ended without success.
If strikes at Le Havre, Hamburg and Bremerhaven coincide, Antwerp and Rotterdam could be inundated with North European shippers looking to shift capacity to fully operational ports.
(Source: Loadstar)
Situation in Asia
- Congestion in Singapore:
There has been significant congestion at the port of Singapore, causing severe backlogs, and forcing some carriers to omit certain ports or cancel voyages altogether. This situation has been exacerbated by a shortage of container ships and equipment, leading to an impending supply chain crisis and sudden increases in freight and shipping costs applied by ocean carriers. Due to these disruptions, cargo transhipping in Singapore may face delays.
- Equipment Shortages in China:
Equipment shortages in China continue due to strong export demand and disruption to services caused by the ongoing diversions around southern Africa. These shortages are especially impacting 40GP and 40HC containers. Port congestion in Europe, Singapore, Africa, India, and Middle Eastern ports are compounding the issue with empty containers sitting idle as a result, instead of finding their way back to China. Container shortage has worsened in many other locations in Asia, with all newly manufactured boxes fully booked until August.
Situation in Red Sea
Another wave of attacks has been launched against ships in the Red Sea and Gulf of Aden in recent days, with some crews being forced to abandoned ship. The Houthis, responsible for the attacks, earlier last month struck two separate bulk carrier vessels with ballistic missiles and drones.The situation is causing further delays and congestion in key ports, including Singapore, Ningbo and Shanghai. Operational bottlenecks, vessel bunching, as well as equipment and capacity shortages are all leading to delays. Significant increases for shipping rates also continue due to rerouting around the Cape of Good Hope, adding time and cost to shipments.
(Source: DCN & FTA)
Container trades back to pre-pandemic levels:
Fresh warnings of further spot freight rate rises were issued on the first day of the TOC Europe 2024 conference in Rotterdam this week. According to the experts, the Red Sea crisis and bursts of regional port congestion continue to present problems to container trades, while the looming threat of tit-for-tat tariff wars is causing demand spikes.
(Source: Loadstar)
General Rate Increase from North East Asia to Australia and New Zealand:
We received notifications this month from some shipping lines in regards to a General Rate Increase from North East Asia to Australia and New Zealand, details as follows:
The first GRI was to come into effect from 1st July 2024:
USD 500/20’
USD 1000/40’
LCL was to increase accordingly.
In addition to the first GRI, shipping lines will have a second GRI effective from 15th July 2024.
USD 300/20’
USD 600/40’
LCL will increase accordingly.
General Rate Increase from South East Asia to Australia and New Zealand:
We received notifications this month from some shipping lines in regards to a General Rate Increase from South East Asia to Australia and New Zealand, details as follows:
The first GRI was to come into effect from 1st July 2024:
USD 500/20’
USD 1000/40’
LCL was to increase accordingly.
In addition to the first GRI, shipping lines will have a second GRI effective from 15th July 2024.
USD 300/20’
USD 600/40’
LCL will increase accordingly.
General Rate Increase from Europe and Mediterranean to Australia and New Zealand:
We received notifications this month from some shipping lines in regards to a General Rate Increase from Europe and Mediterranean to Australia and New Zealand, details as follows:
The GRI was to come into effect from 1st July 2024:
USD 525/20’
USD 1050/40’
LCL was to increase accordingly.
General Rate Increase from Australia and New Zealand to Canada, Mexico and South America:
We received notifications this month from some shipping lines in regards to a General Rate Increase from Australia and New Zealand to Canada, Mexico and South America, details as follows:
The GRI was to come into effect from 1st July 2024:
USD 1100/20’
USD 1600/40’
LCL was to increase accordingly.
Melbourne Empty Container Park Fee Increase:
Destination Empty Container Park Fee in Melbourne has increased to AUD 138, effective immediately.
Fremantle Destination Weigh in Motion Fee:
We have been advised of a new Weight in Motion Fee for import FCL into Fremantle. The cost for this fee will be AUD 17 per container, effective immediately.