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Date: 12th October 2022

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Airfreight | Asia | Australia | Europe | North America | South America | South Africa

New Zealand

Imports

  • There have been some green shoots internationally with an easing in congestion in some trade lanes accompanied by a drop in ocean rates. Unfortunately, due to New Zealand specific labour resourcing issues coupled with the effects of long term under investment in infrastructure, it will likely be some time before we enjoy a significant easing in local supply chain congestion, including at ports, and devanning facilities.
  • Warehouses utilised for storing and 3PL management of imported shipments are largely at capacity. The cost of storing goods when capacity is available has increased sharply.
  • The delay in being able to dehire empty import containers continues to be a roadblock for turning containers around for export reuse. Due to a lack of resources, especially available space, VBS bookings are often unavailable for the uplift or drop off of empty units for several days. Acceptances are also sometimes not in place, depots shutting temporarily at short notice, and long queues for dehiring trucks further delaying dehire. Shipping Lines are not offering relief on detention incurred due to importers and their contracting carrier(s) being unavoidably delayed in being able to dehire. The knock-on effect is the inability to check, repair and pre-trip containers in the stack that could be used for export.
  • Foot and Mouth Controls

As you are all aware MPI is being extra vigilant with containers from Indonesia due to the outbreak of foot and mouth. This has resulted in extra resources being allocated to inspecting these containers, however, MPI advise that bookings are currently expected to be 7 days after these are made. We ask that clients look at being flexible with the hours they can make themselves available for inspections, including looking at weekend options.

Exports

  • Covid related illness is impacting warehousing and container depots staffing levels. Please expect delays at container freight stations and container depots. It would be prudent to plan your export loading 1-2 days earlier than usual where possible.
  • Hapag Lloyd, ANL, & CMA CGM still have equipment shortages, but we have seen a slight improvement.

Airfreight

Imports

  • Australia
    • Airlines have been accepting larger ad-hoc bookings from Sydney and Melbourne as the short week’s provided with some extra capacity.
    • Brisbane still remains at full capacity.
  • Asia
    • China holiday created capacity from a number of other origins across Asia, there will likely be a surge in bookings from China in the coming two weeks so capacity will retract across the region.
  • USA
    • Capacity has increased and consols and ad-hoc larger shipments all moving as booked.
  • UK and EU
    • Allocations generally move as booked at agreed rate levels. However, there remains a large variation in rate levels for Adhoc shipments depending on the origin and airline used.
  • Trucking and warehousing at the airport are returning to normal as flu and covid cases start to decline.

Exports

  • Australia
    • Capacity to all main destinations remains good with consols moving as booked.
    • Some technical issues on freighter services to Sydney and Melbourne which has caused a couple of delays to main deck shipments.
  • Asia
    • China is still at full capacity and hard to get direct bookings, the rest of Asia is OK.
  • USA
    • Capacity to the US is the best It has been for some time with most shipments moving as booked.
  • UK and EU
    • Shipments moving as booked with capacity options via both the Middle East and USA.
  • Trucking and warehousing at the airport is returning to normal as flu and covid cases start to decline.

Asia

Imports

  • Over the previous month, there has been a softening in the Southbound market to New Zealand that has been pulled down by discussions of a global recession and volumes dropping across all major markets. As a result, we are seeing some very competitive rates being offered, however, most are based on transship services. There are still delays at the transship port, but, if your cargo is not time sensitive then these could be a good option.
  • Whilst we have seen an improvement in efficiencies across our ports, there are still schedule delays, with the J Star/NZJ/JKN service from North Asia only operating 2 sailings from Shanghai to NZ during October and other services impacted (to a lesser degree).
  • Equipment availability no longer seems to be a problem across all major origin ports through Asia, with any issues being localised and short-lived.
  • With New Zealand produce export season in sight, there are further opportunities for savings moving cargo in Non-Operating Reefer (NOR) containers as lines look to reposition equipment into the market – please talk to your Customer Services representative if you would like to investigate this option further.

Exports

  • Space and equipment availability is improving; however, we are still seeing a shortage of reefer equipment across all shipping lines.
  • Advanced bookings are a challenge with more lines imposing cancellation fees, schedule changes, and reduced booking windows. We recommend discussing options with your Customer Services representative as to how to best handle your booking(s).
  • MSC, OOCL & ONE are the only Carriers currently accepting cargo to the Middle East.
  • ANL has temporarily suspended cargo to the Philippines.
  • Berth congestion in North East Asia is minimal – currently seeing 1 day or less. South East Asia is seeing waits of 1-2 days.

Australia

Imports

  • From 1st October, all containers via ANL from Brisbane to Wellington, Napier, and Lyttelton will incur a coastal/rail on the carriage of between USD475/600 (BNE – LYT) and USD600/900 (BNE – WLG / NPE).
  • Maersk has a shortage of space and equipment in Brisbane
  • 20’ containers are scarce in all ports please consider a 40’NOR or 40’GP.
  • Hazardous bookings are a challenge. Please give as much notice as possible.
  • Australia terminals are working efficiently, with approx. 1-3 days delay only.
  • The ANL Dhambi v2218 will also omit Wellington, Lyttelton, and Nelson to assist with schedule recovery.
  • For LCL Hazardous bookings, please check our Trans-Tasman schedule we have designated vessels for Hazardous cargo

Exports

  • Port delays are improving – current average waiting time in Sydney is 2 days and Brisbane is 1 day.
    The ANL Dhambi v2218 will also omit Wellington, Lyttelton, and Nelson to assist with schedule recovery.
  • The ANL TTZ service will change rotation – Wellington and Nelson port calls will be removed from the new rotation.
  • The Safeen Prime vessel which has had noise issues will be replaced by the Xpress Nuptse on voyage 2218 and the ANL Dhambi vessel which has had hull cleaning issues will be replaced by the CMA CGM Semarang on voyage 2222.
  • Space availability fluctuates depending on the destination and shipping line. We recommend checking with your Export Customer Services representative well in advance of any upcoming bookings you may require.
  • Please note, due to the Omicron variant, Australia is experiencing severe staff and labour shortages. Transport bookings are now requiring 4 days notice prior to delivery. We are now also seeing long waits for Biosecurity inspections to be completed.
  • The depots are also seeing staff and labour shortages. This is affecting the timeliness with which our FAK containers are being unpacked and cargo being made available for collection/delivery.

Europe

Imports

  • The Felixstowe port union has resumed work but still no agreement has been made, so more strike action is likely. Port of Liverpool has announced another strike from October 11th to 17th. There are considerable back logs at all UK ports that need to be worked through.
  • Truck drivers from Poland and Germany have been involved in Ukraine aid efforts and many have stopped working their normal routes. This means it can take longer to find available truckers in these two countries for container pick-ups.
  • Maersk, CMA, and MSC are open for bookings from most ports now but Cosco, ONE, and OOCL have only limited bookings to NZ due to back logs in transshipment ports. Rates have softened on most carriers.
  • MSC continues to have large delays in Singapore, with exception of Refrigerated and DG cargos that are prioritised.
  • CMA has delays of 4-5 weeks in Malaysia.
  • CFS’s are operating as normal to load LCL.
  • BMSB Season is in place from September 1st and will remain in place until April 30th 2023. The procedures are the same as last year.

Exports

  • Workers at the Port of Felixstowe walked off the job for 8 days, from September 27th until October 5th. The strike by around 1,900 workers over wages disrupted trade, and delayed vessels. Felixstowe handles half of the containerised freight entering the UK, the strike has caused congestion at other UK ports. Dockers in Liverpool have issued strike notices for 7 days from October 11th.
  • Hamburg is severely disrupted by the current congestion levels across Europe and the port itself is subject to congestion on port, long vessel berth waiting times, resulting in significant delays. This has been caused by a magnitude of factors, including labour shortages due to strike action and holiday season, high dwell on import cargo, demand surges into North Europe ports and inland terminal bottlenecks. The situation is expected to continue through November.
  • Rotterdam & Antwerp remain congested.

North America

Imports

  • Long Beach terminals have an average wait time 10 days. This is due to terminal congestion, due to import dwell times of containers.
  • The combined number of import containers to Long Beach are down by 11% and should free up space at terminals.
  • Import containers being shipped via rail are moving out slowly and will have a flow-on effect with terminal congestion at Long Beach.
  • American freight via rail roads is incredibly chaotic right now as union members still negotiating settlement. No agreement has been met in talks during the first week of October.
  • Class I railroads, labour unions, and President Joe Biden are working to avoid a nationwide strike that could stop the port’s great strides in their tracks.
  • Delays still with rail into Long Beach from the mid-west. The best option is to use the East Coast ports for FAK/ FCL containers.
  • Oakland vessel waiting time currently 15 days.
  • New York / New Jersey vessel current wait time 1-3 days and export delivery dates are still volatile at the terminals.
  • Still, truck driver shortage causing congestion at terminals and, due to Covid reasons, replacement drivers at short notice cannot be found, so we are incurring penalty rates moving containers.
  • The previous BMSB requirements will be reinstated for the upcoming BMSB season and will be made permanent for all future BMSB seasons (between 1 September and 30 April).

Exports

  • The VSA service to the West Coast seeing significant delays on arrival dates into Tauranga. Vessel wait times for berths at arrival ports continue to reduce, the delays are starting to reduce.
  • There are still delays and congestion at Oakland. Seattle is working well with containers moving off port within days of arrival. Vancouver and Long Beach have improved.
  • Container yards are over capacity, particularly in California, often not accepting empty returns resulting in storage and additional transport costs. There are few if any chassis available at some inland rail ramps resulting in containers being stuck on rail, Kansas City is one of the worst affected.
  • The East Coast services have been overbooked by the carriers, consequently shortshipping containers. There is significant congestion in Charleston. Congestion in Panama & Cartagena is resulting in delayed transhipment of 2-4 weeks into Houston, Savannah, Norfolk, New Orleans, and New York. Maersk have ceased transiting cargo via Panama into US ports, this is now being offered via Asia with transit times exceeding 80 days.

South America

  • Port congestion is causing a waiting time of up to 4 weeks for FCL bookings.

South Africa

  • Port congestion is causing a waiting time of up to 4 weeks for FCL bookings.

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