Specialist International Freight Forwarders

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May 21

Service disruptions Update 21 May 2021

A word from our GM…

Good afternoon All,

First of all, happy Friday to everyone, today is Friday May 21st and I cant believe that we are nearly half way through the year already. And what a tumultuous year we have had in shipping and logistics.
I know that a lot of you will be aware of the current situation, but I wanted to keep everyone updated as much as we can with what we are seeing.
First of all the ports of Auckland (POAL) is still heavily congested, vessels can be waiting for a seven days to get a berth at the port. The delays in arrivals at Auckland are havinga knock on effect as the vessels make their way through the scheduled ports. Months and months of delays at Auckland have had long lasting disruption.
POAL recent updates included;
‘MSC Alabama KE118A’ (KEX): arrived 12/05 berthing 20/05
‘Neokastro 082S’ (NEASIA): arrived 17/05 berthing 21/05
‘OOCL Busan 438S’ (CNS): arrived 08/05 berthing 23/05
‘Kota Lembah LEM191’ (NZS): arrived 17/05 berthing 24/05

Import pressures
We are still seeing regular general rate increases (GRI) from all lines calling New Zealand. CMA CGM announced a GRI USD 300 per 20 foot equivalent (TEU) effective 1st June 2021.
High demand worldwide and equipment shortages are contributing factors to rate increases.
The number of container rollovers at major box ports continued to climb last month, affecting some 39% of all shipments, according to new data from supply chain visibility provider Project44.
The research found CMA CGM was the carrier with the highest proportion of rolled containers last month, 56% of shipments, compared with 49% in April 2020. It was closely followed by its Asia-Oceania subsidiary, Australian National Line (ANL), which saw 54% of container rolled, a 30% year-on-year increase. However, these figures were disputed by CMA CGM.
Rest assured, New Zealand is not the only country experiencing these problems. Hapag-Lloyd has just announced a $3,000 per 40ft GRI on Asia to the US and Canada services from 15 June. A year ago, the Shanghai Containerized Freight Index (SCFI) US west coast component stood at just $1,686 per 40ft – 12 months on, and shippers are paying up to $14,000 to ship the same cargo on the same route in the same ships.
While the port of Los Angeles is also experiencing extreme congestion.
Export pressures
Space is extremely difficult to get, in a recent conversation with Maersk Line, they told me that they are fully booked for all of June. While they are also trying to get 80% of their worldwide reefer stock into NZ, so they can service the export market, at the moment they have a shortage of reefer containers in New Zealand. While repositioning them to the south island is proving difficult with so much schedule uncertainty.
We are being told that most vessels out of NZ are booked full until the end of June 2021. If you are considering FCL exports, then please plan well in advance.
Services from Auckland to Australia (SYD and MEL) are largely operated out of the port of Tauranga. Due to the unreliability of the rail service and the constant schedule changes, exporters are being forced to truck their containers to the port and their own expence. We are also seeing this for LCL exports too, adding costs.
Empty depots
Shipping line empty depots are at capacity. We are seeing rolling notifications on a daily basis of empty depots closing then re-opening a few days later. Today both MCP and Link are full and cant accept empty returns.
CMA will off a credit of USD 200 per TEU to return yoru empty (at your cost) to either North Port (Whangarei or Tauranga). While still insisting on collecting container detention for late returns.
Some links to consider.
https://theloadstar.com/hapag-lloyd-rocks-already-hard-hit-transpac-shippers-with-a-3000-gri/
https://theloadstar.com/return-of-blanked-asia-europe-sailings-as-carriers-bid-to-get-back-on-schedule/
I have tried to keep this message as short as I can, it really is a complex and challenging time. Please let us know if you have any questions.
We will keep you updated as we can.

Regards,
René Vaughan
General Manager

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