Important Shipping Update

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CHINA – Update on Covid lockdowns in Shanghai

Following the ongoing Shanghai lockdowns, earlier this week the Shanghai Government announced they will release part of residential areas around the countryside, but those living there will still be unable to travel outside of their stated areas. It is expected that the restrictions will likely ease further in mid-late June 2022 if the situation continues to improve.

Shanghai office staff must still remain working from home whilst seaports, terminals, warehouses and truckers will be forced to operate with a skeleton workforce.

Warehouse Operational Update

  • Warehouses in Yangshan have partially resumed trading to allow the receipt of inbound cargo as well as limited container loading services and reduced cargo delivery options since early May.
  • Warehouses in Waigaoqiao have partially resumed trading to allow the receipt of inbound cargo as well as limited container loading services.
  • Truckers must also present several health records prior to warehouse entry, known as the ‘Green Health Code’ along with temperature checks and a “COVID 19 travel e-permit” issued by Shanghai International Port (Group) Co, Ltd., as well as undergo nucleic acid tests by the security guard and janitors.
  • Most warehouses require that all truckers apply for warehouse entry by online appointment 24 hours in advance.

Trucking Update
The Shanghai government has now released permits to drivers who must follow fill in details via a EIRIMS system along with presentation of one of the below testing options:

  • PCR test with a negative result within the last 24hrs.
  • PCR test with a negative result within the last 48hrs and Rapid Antigen Test with a negative result within the last 24hrs

Due to the slow turnaround time on permit approvals, trucking services are still limited and struggling with the volume of containers with some carriers requiring upwards of 10-day notice on new bookings.

For now, Ningbo is still the best alternative for Shanghai export containers if shippers are unable to secure bookings are trucking services for their cargo within Shanghai.


GERMANY – Wharf Capacity Struggles hit Germany

Not immune to the international supply chain challenges, delays and operation issues have steadily been on the rise in Germany resulting in overcrowding and congestion at major seaports.

On the 23rd May, all rail services were temporarily suspended to Hamburg due to the seaports, transshipment stations and warehouses reaching capacity.

Now in Hamburg, containers are only authorized to be delivered in a 1-to-1 exchange, regardless of the mode of transport. Containers transported by rail may only be delivered 7 days before arrival of the ship and containers delivered by truck only within 24 hours before arrival of the vessel.

In Bremerhaven they are facing similar challenges and have also adopted the 1-for-1 supply of containers as well as the 7-day regulation on any containers delivered to the terminal prior to arrival of the vessel.

Trucking capacity has also been severely reduced at all terminals, in some cases by half of the actual handling volume for that location. This applies in particular to Burchardkai in Hamburg which is feeling the full effects of the capacity strain.

Shippers are warned of the potential increased handling costs and delays as each location struggles to keep the containers flowing smoothly inbound and out.


Transhipments

Via ASIA
Tanjung Pelepas & Singapore Hubs are showing signs of improvement, wait times are reducing. Priority is being given to Export calls to relieve yard density.

Hong Kong currently exceeds 70% utilisation and delays continue around berthing windows and discharge volumes equal to load volumes, this is a relatively new functionality of Port operations to restrict or control the time a vessel spends working at the dock.

Heightened security & procedures around the prevention of Covid spread through all aspects of Port operations is impacting on staff numbers, crew interchange and machinery operators further adding to the overall stress and pressure within these highly susceptible sites.

OTHER
Service and delays through the Panama Canal have improved.


AUSTRALIA

Change to Free Time at Fremantle Ports
Fremantle Ports have released a statement advising that effective from the 1st July 2022, weekends and public holidays will no longer be considered storage free days if they fall within the 4 free days offered once cargo becomes available.

Empty Park Congestion Peaks in NSW and VIC
Empty Container Parks and Quarantine Processing Depots have once again reached peak capacity with many dehire depots refusing to accept empty container returns in New South Wales and Victoria.

Many carriers are now forced to divert empty return back to their own yard, which are also struggling with space, further compounding the issue and additional via yard and storage fees.

Carriers are forced to contact shipping lines daily, up to four times a day in order to try and find a way to return containers before detention charges mount up with no quick fix in sight.

One of Australia’s largest quarantine processing depots has now announced that they can no longer accept any containers for Tailgate or Fumigation treatment for the next 3 weeks at least. This means that carriers are having to look for alternative depots, causing live tailgates to take anywhere between 2-3 hours instead of the usual 15 minutes and fumigations to exceed the standard 3-day turnaround.

When collecting containers once released from the quarantine depots, carriers are reportedly having to wait anywhere from 1-3hrs, due to capacity issues at all the depots where containers can be sitting up to 15 stacks deep due to the increased congestion of containers.

Additional costs are on the rise and impacting shippers which has resulted in increased pressure on government by industry bodies to help intervene before the situation worsens.


NEW ZEALAND

Coastal Shipping – NZ
As previously reported, the government was to provide a $30million boost to Coastal Shipping to get more vessels into service. The government has committed the money through the National Land Transport Programme (NLTP), and four selected shipping suppliers will invest more than $60m through their proposals.

Each of the suppliers – Coastal Bulk Shipping Ltd, Move International Ltd, Swire Shipping NZ Ltd and Aotearoa Shipping Alliance – will bring at least one extra coastal vessel into service, to “improve the resilience of the overall freight supply chain”, Transport Minister Michael Wood said.

“It has huge benefits for our regions, it reduces our carbon emissions and it will reduce the need for thirty-five million kilometres of road freight. That takes pressure off our roads, it reduces the wear and tear, saves money for everyone as well as saving carbon emissions.”

Supply chain disruption due to Covid-19 had shown up some lack of resilience in the freight system. “Coastal shipping is not the whole answer but it is part of the answer.”
“Coastal shipping in particular is good at moving – and I’m simplifying a bit here – big things over a long distance where it’s not so time-critical. Road freight tends to be the best thing for getting items that need to be delivered in a more time-critical way point to point.”

Northport – Marsden Point NZ
Another vessel is calling into Marsden Point, the ANL Warrnambool v 210 is showing a current ETA of 29 May on route from USA West Coast.

Domestic Transhipment Request (DTR) for Air Cargo
From 1 July 2022, a domestic Transhipment Request (DTR) will be required to move uncleared air- freight from one approved facility (CCA/ATF) to another approved facility. This means that the Customs continuous collection permit, and paperless transhipment scheme and MPI’s General Authorization of Carriage (GAC) can no longer be used to move uncleared air-freight.

NZ Port Performance & Container Yard capacity
Terminal & Yard congestion remains extremely high with POAL, Napier & Lyttleton operating at near 100 %-yard utilization and Tauranga at approx. 80-90%.

A port or container yard operates at optimum performance around the 75-85% mark, anything more than that creates amongst other things, multiple handling of containers which reduces the overall efficiency of the operation, measured by container moves per hour.

Container yards (import dehire & export collection of empty’s) in Auckland are nearing capacity again and will be monitored closely over the coming days, please be advised costs incurred for late returns should this escalate are beyond the cartage operator and our control and will be for the account of Consignee.

In Summary
Transport Facilities, 3PL Warehousing & CFS Operations are all seeing another surge of Covid related issues. Staff attendance in AKL & CHC operations are in some cases down on staff by as much as 40% on any given day.

This flows on to the speed and efficiency with which containers are being devanned and transitioning out for availability & delivery. It is impacting all aspects of the domestic supply chain over what we have been used to in the past, please understand that turn around times of not only freight but information and response times are all being affected, your patience and cooperation at this time is appreciated.

Under similar circumstance, It should be noted that at times it is taking MPI anything up to 3 days to process a BACC.

We will continue to evaluate all market options and work with you to provide individual solutions for your business.

For more detailed on any of these articles please contact your Henning Harders Key Account Manager.

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