Oceania mid June market update - 12/6/24

Port Congestion & Equipment Shortages

Port congestion in Singapore and other SE Asia transhipment hubs such as TPP and Port Kelang is being reported at critical levels, exacerbated further by shortages of container ships and container equipment servicing key origin manufacturing bases in North East and South East Asia.

Cargoes flowing to Oceania destinations (Australia and New Zealand) and which relay from origin port 1st leg vessels to Oceania destination servicing 2nd leg vessels via these container transhipment hubs (Singapore etal); transhipment delays are unfortunately worsening, with expected average delay days from 1st leg vessel to 2nd leg vessel +20 days.

Major ports in NEA origins such as Shanghai, Ningbo, Shenzhen (Yantian particularly), Busan and Kaohsiung are contending with their own port congestions; whilst not as severe as what is being reported in the main SEA transhipment hubs, there are delays caused by ports congestion all the same.

Equipment shortages for some shipping lines at major and tier 2 (or inland) ports in China, Malaysia, Vietnam, Thailand, Bangladesh, Japan, South Korea, Taiwan and India are being reported.

As previously reported; Shipping line scheduling and Shipping line transit times are being battered due to these congestion delay challenges: percentages for liner scheduling integrity and transit time reliability remain in the low teens (similar to the worst of COVID’s global shipping impact).

Half 2 June GRI, July GRI & July PSS

With the unexpectedly higher YoY container demand being witnessed across most global trades and combined with the ongoing Red Sea challenges, significant port congestion and container equipment imbalances spanning the key source regions, short notice and opportunistic vessel size reductions on the Asia/Oceania trades which is impacting space availability, ongoing blank sailings, port bypassing and slow steaming practices adopted by shipping lines: it should not be a surprise to the reader that we are seeing further GRI and now PSS confirmation notifications reported from the shipping lines.

June 01st GRI’s have been applied atop existing May FAK rate structures, quantum of US$300.00 per TEU ex NEA origins to ANZ destinations; and US$100.00 per TEU ex SEA and ISC origins to ANZ destinations.

June 15th GRI’ will be applied atop existing H1 June FAK rate structures, quantum of US$300.00 per TEU ex NEA origins to ANZ destinations; and a further US$100.00 per TEU ex SEA and ISC origins to ANZ destinations.

July 01st GRI’s will be applied atop existing June FAK rate structures, quantum of US$500.00 per TEU ex NEA, SEA and ISC origins to ANZ destinations.

July 01st PSS will be applied atop all existing NAC/BCO & FAK rate structures, quantum of US$500.00 per TEU ex NEA, SEA, ISC and Middle East origins to ANZ destinations.

PSS (or Peak Season Surcharge) is now officially announced by the shipping lines with application from shipped on board date 01st July 2024, and will be enforced by the shipping lines to all shipments and cargo types until further notice.

For further details please contact your Ligentia Sales or Customer Services Managers.

We do recommend to closely monitor your orders placed with any/all overseas suppliers, and lean on your Ligentia CS and management teams for shipping and supply chain support.

Thank you for your business and continued support.