New Zealand Overview
Air Terminals
- Air New Zealand terminals are frequently having issues with releasing airline units.
Other terminals are operating well. - Export terminals are operating as normal.
Landside
- Due to reduced capacity OOCL, Cosco & MSC can no longer accept export bookings via Metroport. All cargo must load at Auckland.
Airfreight Update
North America
Oceania to North America passenger aircraft capacity is down slightly.
Europe
The addition of summer passenger aircraft has balanced supply and demand for lower deck cargo, while main deck capacity remains tight, driving higher spot market rates.
Asia
Expect the trend of very tight capacity to continue throughout August. In fact, there is wide consensus that demand is expected to remain strong for the entirety of Q3. With ongoing seaport congestion, as well as container shortages and continued restrictions in the Red Sea there is increased conversion of ocean to air freight.
Oceania
Oceania to North America passenger aircraft capacity has reduced slightly with some direct flights removed and redeployed for the Trans-Atlantic summer holiday season. Some freighter capacity was also removed due to the softer demand from North America to Australia. These shifts have kept rates at a stable level during Q2.
Oceania to Europe has also seen some interruption due to extended flight paths avoiding air space above areas of geo-political concern. Longer flight paths add flight time and the additional fuel required reduces weight allowance for cargo. There have been some additional flights returning to the Europe to Australia market, which has kept rates stable.
Oceania to Asia has abundant capacity, with availability open on many lanes. Rate levels reflect
pre- pandemic conditions in most cases.
Trans-Tasman markets are also quite stable. Capacity can cater for current market demands.
Rate levels are also stable.
Overall, import markets have been subdued, which is not atypical of end of financial year periods. However, these are expected to increase in Q3 as ocean markets increase rates and equipment shortages develop.
Ocean Freight Update
Oceania
Market conditions from North America remain stable with space and schedule integrity maintaining availability and regularity. There are also more vessels being allowed to transit through the Panama Canal each day, which will mean some services will return to this route.
The Europe to Oceania market is tightened due to the disruption in the Red Sea/Suez Canal with carriers continuing to implement contingency surcharges. This also affect transit times with the 14-day transit via the Cape of Good Hope. In addition, European arrival schedules on relay services are experiencing disruption due to delays in Asia transhipment ports and subsequent routeing adjustments. Expect to see schedule disruptions continue throughout Q3. Consider forward planning ahead of the current European summer high season.
Northeast and Southeast Asia capacity continues to tighten following blank sailings and port omissions. Rates remain unstable with the implementation of general rate increases (GRIs) and high season surcharges (PSS) throughout the last couple of weeks and continuing in August.
The escalation in pricing is reminiscent of 2022. Expect this trend to continue. There have been record volumes from China in 2024 with an increase of +17.5% January-April and +23.1% increase for the same period on import volumes from Southeast Asia to Australia based on Ports Australia trade data. Expect continuing space issues, so forecasting and early bookings are essential. Schedule reliability is affected with transhipment delays and subsequent routeing adjustments.
The Trans-Tasman market is affected by ongoing delays along the New Zealand coast affecting
schedule integrity. Delays at port have reduced and range from 0.5-1 day at DP World, Patricks
Terminal and New Zealand ports. While schedule reliability is affected, space remains open with equipment readily available.
Australian coastal delivery currently has no delays or issues with schedule integrity from east to west coast. Capacity remains out of key ports, with rates holding firm (e.g., Brisbane, Sydney and Melbourne).
Export rates are under pressure with strong load factors creating competition—expect this to continue into August. Capacity is tightening from Australia and New Zealand, accordingly, consider booking two to three weeks in advance. New Zealand will be entering peak produce season and space is tightening to the United States.
Trans-Tasman
Equipment availability has been an issue for export containers both 20 and 40ft New Zealand wide recently and reefer equipment is also impacted by peak season, but no issues with space.
No issues with space either Eastbound or Westbound on the Tasman.
Asia
Bullish container freight rates continue with carriers pushing rate hikes across Asia outbound lanes, specifically, Trans-Pacific, Asia-Europe, Asia-LATAM and Asia-Oceania. In addition, Asia-ISC and Asia-Middle East/Africa lanes have been experiencing the same trend since the second half of May.
For the Asia-Europe lane, spot rates continue to surge. The gap between Mediterranean and North Europe rates is narrowing as North Europe rates are rising faster than the Mediterranean.
For the Trans-Pacific lane, the high season surcharge from carriers also applies to contract rates that did not include a no-PSS clause.
Rising port congestion has placed added pressure to an over-stretched container market that is already reeling from a shortage of container equipment and vessel space. Singapore has become the new congestion hotspot, with berthing delays of up to seven days. The total capacity waiting to berth has been as high as 450,000 TEUs. This has forced some carriers to omit their planned Singapore port calls, which will exacerbate the problem at downstream ports that will have to handle additional volumes.
Customs Update
The Ministry for Primary Industries (MPI) has finalised the seasonal measures for the 2024-25 high risk season. Effective sailing on or after the 1st September 2024, all target high risk cargo shipped from or via target risk countries must be treated by an approved treatment provider.
Full listing of countries and commodities are listed on the following pages:
Vehicles, Machinery and Parts Import Health Standard
https://www.mpi.govt.nz/dmsdocument/30224-Vehicles-Machinery-and-Parts-Import-Health- Standard
Sea Containers from All Countries Import Health Standard
https://www.mpi.govt.nz/dmsdocument/1984-Sea-Containers-from-All-Countries-Import-Health- Standard
The measures remain consistent with the 2023-24 BMSB risk season.
For the 2024-25 BMSB risk season, measures will apply to:
- Targeted goods shipped from target risk countries, and/or
- Vessels that berth at, load, or tranship from target risk countries.
The BMSB risk season is for goods that have been shipped between 1 September 2024 and
arrive NZ before 30 April 2025 (inclusive), and vessels that berth, load or tranship from
target risk countries within the same period.
High Risk Goods (Vehicles, Machinery, and Parts Thereof / VMP) must be treated for BMSB if moving within these dates. New/Unused goods that have been stored exclusively indoors prior to export can
be exempt from treatment requirements where a valid Manufacturer’s Declaration is provided.
The template for this declaration is available here:
or on request from your Key account manager.
- Italy: All cargo shipping from or via Italy must be treated; this is not limited to VMP only. There is a list of sensitive risk goods that an MPI CTO considers to be sensitive to treatment.
- Harders can assist with Treatment options, please discuss with your Key account Manager. Should you require a list of Sensitive Risk goods or BMSB target risk countries, please request this from your Key account managers.
- CBAFF is also hosting an industry online information session covering the upcoming BMSB seasonal measures on Thursday 06th August, if you are interested please contact you Key Account manager.
Customer Advisory
For more specific information / requirements please ask your Harders NZ Key Account Manager.