SUMMARY
1. General Rate Increases (&/or PSS)- GRI announcements have been released by all main shipping lines operating into Oceania (ex -Asia and ISC origins).
2. Shipping lines – FAK services – effective from on board date 01st September ’21 – a further increase up to US$500.00 per TEU has been added on to FAK benchmarks ex Asia (North and South East origins) and ISC into Australia and New Zealand destinations.
3. Continuation of Space constraints- Shipping line Premium services (On-line platforms) continue to track at higher cost compared to FAK benchmarks.
4. Premium Service – > space security (and equipment availability) for multi-container bookings are more dependable using these On-line carrier platforms.
5. Break Bulk Shipping-
Breakbulk/MPV liner services have also tracked significant per RT ocean freight price increases on their services from North and SE Asia origins into Oceania destinations – since May ’21, minimum of 30% increase on RT prices main port pairings observed (with further increases expected by October 21).
O/S PORT UPDATES
1. Continued Ongoing port congestions: Ningbo – Meishan terminal – has resumed services from 25th August; but container backlogs to clear are significant, and the terminal’s COVID enforced closure has further disrupted
already heavily congested carrier schedules from North Asia into ANZ destinations. It is likely to continue to negatively impact schedules for 4-6 weeks to come
2. Ongoing upstream pandemic effects: Equipment -supply at main origin loading ports – 40’GP shortage continues to impact bookings from main ports, spanning North & SE Asia, and the ISC.
3. Singapore and Port Kelang international transhipment hubs remain heavily congested; impacting capacity (space) on 1st leg services into those hubs, for relay (2nd leg vessel connections) to Oceania destinations.
4. Accumulative “delay days” via Singapore and Port Kelang T/S hubs continues to track at +14 days unfortunately.
5. This accumulated delay impacts SEA and ISC origins into all ANZ destinations; and North Asia origins into WC AU destinations (Adelaide and Fremantle).
LANDSIDE / PORTS :
1. Landside AU and NZ import operations are again coming under pressure from arrival port congestion; + stevedore / terminal operator labour industrial action.;
2. Container Park Congestion- ongoing empty container park congestion (impacting empty container de-hiring processes and causing higher transport operator costs);
3. COVID Impact continues- skilled driver shortages due to the many disruptions above – resulting in additional time per TEU movement from port availability to empty container de-hire.
4. Impact to ASA Members –This will pressure wharf cartage operators nationally in terms of their fee structures and capacity to service customers within container free time allowances (leading to heightened risks of container detention and/or additional yard fees being passed through to end customers).
Suggestions:
1. Mill Rolling/ Ex-Mill planning to meet vessel timing – remember that your Steel Mill suppliers will have similar challenges themselves with their own supply chain disruptions in their sourcing and manufacturing planning; potentially causing longer production lead times than pre- COVID benchmarks.
2. Continued to seek regular Mill Ex Mill updates –especially CR (Cargo Ready Dates)
3. Continuation of advance booking practice- either by your suppliers/ or yourselves, remains critically important, to help advance planning for space and book sailing schedules as close to CRD’s as possible.
4. Continue to monitor Port Arrival dates and ensure strong communication with Clients with regards to requirements to discharge from Ports with as much flexibility as possible (Time slot / booking flexibility) – as per our previous update – this remains critical to reducing port congestion where possible.
