Maersk has launched very welcome additional service on the southbound Asia tradelane. They have introduced extra vessels and added extra port calls adding much needed capacity to the market place. Direct calls NZ include Lyttelton, Tauranga, Auckland & Port Chalmers.

Good news indeed

The CAFCA has received advice from Patrick that work will recommence at their Port Botany (Sydney) terminal at 9.00am today (Friday 27/05).

Import time slots have been released and entry will be permitted from 08.30am today for all trucks.

Transport operators will receive notification of week-end slot availability later this morning.

Patrick is still sorting out with shipping lines all export receival dates. All export receivals are currently cut off  until this comes out.

Good Day everyone,

Thanks for taking the time out to read my brief.

I cant help but feel repetitive. Alas for the life of me I can not think of another way to announce it.

INCREASE INCREASE INCREASE

That’s pretty much what the ship lines are dictating for shipments originating ex North & South East Asia (if not the world).

GRI  of  USD250 per TEU  effective 15th July
RR    of  USD250 per TEU effective 15th August
PSS  of USD250 per TEU effective 15th September
GRI – General Rate Increase
RR   -  Rate Restoration
PSS -   Peak Season Surcharge

The above tabled increases have been agreed upon by the member shipping lines of the Asia New Zealand Discussion Agreement (ANZDA). They will be applicable to all shipments with origins in Japan, Korea, China, Taiwan, Hong Kong, Singapore, Indonesia, Philippines & Vietnam to NZ.

LCL (shipments Less than a Container Load) will proportionally see increases as well.

Presently the ship lines are in a position of solidarity in regard to any initiative that increases their revenues. Now don’t get me wrong! I am not taking the side of the shipping lines – but they did take a hammering last year. (an example would be CMA CGM – the French line – indebt to the tune of US$5.3 billion & a large order book they can not renege on). But honestly how much can the “market” take I wonder?

My personal hope is that come 2011 we will look back on 2010 as being the worst shipping environment & that in 2011 we will see some improvement.

 I’m sorry but I just do not hold much hope that 2010 is going to be any good – shipping wise. I base this negativity on the following.

World container volumes have increased over last year. Shipping lines have not made available any additional tonnage (extra vessels) since the beginning of the world recession when some 30% of vessels were removed or taken out of service. Last year we saw space or slot issues therefore 2010 can only be expected to be at least as difficult  & it is already more expensive.

It has been brought to my attention that there is another concern. Personally I just can’t imagine this will seriously affect the NZ trade however it is being talked about ever increasingly. That is the risk of container shortages. Some of you will be aware how difficult it can be to source “special” equipment such as HC’s (High Cubes), flat racks, open tops etc but never have we had trouble sourcing GP (General Purpose) containers. The situation goes something like this. When the global crises hit nobody wanted to order new container stock, world trade was significantly reduced & there was nothing to put in the new containers being built. Ship lines repatriated containers being held in “stacks’ or long term “storage” eg old “dungers” that previously would have been surplus to requirement. Also adding to this was the advent of what is termed “slow steaming” which means more containers spend more time aboard ship. As containers are on the water longer they are recycled more slowly & therefore the worldwide stock of boxes gets spread more thinly. In recent months world trade has re-bounded outpacing the ability of the lines to replenish or source new equipment. I am told Ship lines have now initiated the production of new stock & procurement through the leasing of new containers.

Hopefully this potential crises will not realise its potential.

We are pleased to announce that LCL (Less than container load) rates from China & Hong Kong to Auckland / Wellington / Lyttleton will reduce. This reduction will be effective from sailings on / after 22 March 2010.

The general situation from Europe and the Mediterranean is that there is a shortage of space on all vessels out of Europe to Asai and Central America (in the case of Hamburg Sud), once containers have arrived at those transhipment points there is furthe space shortage on second leg vessels to New Zealand.

Normally we would have expected space problems to have eased by now heading in to December but to date they haven't. This is largely due to the fact that shipping lines have cancelled services meaning that where there were once 5 sailings a week ex Europe there are now just 3 as opposed to any increase in trade.

We will try to keep delays to a minimum and advise you of short shipments as soon as we can. we are in constant contact with shipping lines regarding the situation.

Please allow for at least one week longer than expected for your freight to arrive from Europe.

Further to my last "Orbit" monthly news letter please be advised that all direct carriers off the East & West Coast USA / Canada to NZ have announced a General Rate Increase of US$150 per TEU (20' FCL) effective 1st December.

As a direct result of this LCL rates ex USA to NZ will be increased - this increase will be USD$6.00 per w/m (effective 1st Dec).

On the 15th December the USA EFAF (BAF) will be increasing from USD540 to USD 644 per TEU. Again as a direct result of this we will have no choice but to increase BAF for LCL shipments by USD4 w/m.

The strong Aussie dollar and huge volumes of roofing insulation being shipped from the USA continue to fuel large backlogs ex USA.

The situation ex the West Coast (USA) has deteriorated and we can only assume it will continue to do so in the lead-up to Christmas and maybe beyond.

 The issue is being exacerbated by the transhipment carriers carrying less cargo ex the USA to Australia due to congestion at the transhipment ports - vessels are also overbooked ex Asia.

Currently any new bookings are being allocated to vessels departing late November up to Early December. It should be noted also that many current bookings are being rolled (delayed) one vessel (up to a week) at time of shipment.

On a recent vessel there were approximately 800 TEU (20' FCL's) rolled.

We stress the need to for your shipments to be booked with us as early as possible to avoid lengthy delays. Naturally we will do all we can to accomodate all bookings but we need to be aware of the huge problems we continue to face in this trade lane. 

Most of the carriers to NZ are currently fully booked and as a result some have started to short ship containers at the transhipment hub ports, due to increased seasonal demand. We are anticipating possible space problems between now and mid - November. One of the underlying issues surronding this problem has been the preference of carriers to move higher revenue securing Australian bound cargo en-route to NZ, as freight rates into Australia have increased dramatically over the past two months. The carriers have announced their intention to increase NZ rates by USD 300.00 per TEU (20' FCL) and USD 600 per FEU (40' FCL) between 21st September and 01 October 2009. All LCL rates will subsequently be increased by USD12.00 with effect from 01 October 2009.

It should be noted that freight rates were at there lowest level for some years but with this posted increase tthey will return to the same level as experienced in January 2009. (excluding increases in BAF and the recently announced Peas Season Surcharge).

It is expected that we will see rate reduction from December onwards.

With effect from Pacific Horizon V.0010N the following increases have been announced.

Northbound and Southbound

current    USD473 - 20' TEU / USD946 - 40' FEU and USD23.65 / RT

new rate  USD528 - 20' TEU / USD1056 - 40' FEU and 23.40 / RT

Golden Week public holiday will start on the 1st October 2009 and finish on the 11th October. Commemorating the following

China National Day:   01 - 02 October 2009

China mid-Autumn Festival: 03 - 11th October 2009

Please be aware that during this time people will be away so please ensure you have bookings in place prior this time as frustrations can be experienced during this holiday period.