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.