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Important Shipping Updates

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BMSB 2022-2023 Season – Effective 1 September 

The Brown Mamorated Stink Bug (BMSB) season is upon us. High Risk cargo includes vehicles, vehicle parts, machinery and machinery parts. High Risk cargo may be exempt from treatment (not applicable to Italy) if the supplier meets the following exclusion criteria; goods are brand new and unused, goods have been stored indoors only from manufacture to export and goods cannot be driven on land.

Download BMSB Fact Sheet

This is a reminder that Heat Treatment / Fumigation will be required on all seafreight containers loading after 1st of September 2022 from the below list of countries. 

BMSB Risk Countries 2022-2023

8-Day Strike at Port of Felixstowe, UK 

On the 21st of August, Felixstowe dock workers commenced an 8-day long strike. The port handles approximately 48% of the UK’s container trade.

Shipping lines have planned alternative routes in order to try keep up with demand. The strike will no doubt have a considerable effect on the container back-logs adding additional stress to an already congested port. 


ANL: TRANZTAZ (TTZ) Rotation Changes 

In recent times, the delays at some container terminals in Australia and New Zealand have caused several voyages to be lost from ANL’s schedules in the form of cancellations and port omissions. To rectify these failures, ANL will be altering their Trans-Tasman routings until the end of 2022. The new rotation hopes to add some buffer to ANL’s schedules and to ensure the service can return to agreed berthing windows. 

The rotations are as follows: 

OLD ROTATION: SYD-MEL-AKL-LYT-WLG-NSN-TRG-SYD 

NEW ROTATION: SYD-MEL-AKL-TRG-LYT-SYD 

The new rotation will affect Wellington and Nelson based clients, with less direct shipping lines now calling these two ports. 

Shipments destined for Wellington and Nelson on ANL’s TTZ service will now be offloaded in Auckland and transhipped on the KIX/ANZEX services. 


Chinese Golden Week 1-7 October 

From 1-7 October, the People’s Republic of China will be celebrating its Golden Week, the country’s longest holiday. Since planning ahead is more important than ever these days, now is a good time to reserve slots for your containers. 


Auckland Container Park Delays 

Auckland container parks are experiencing significant congestion issues causing delays to the dehire process of empty containers.

The congestion do not look to ease anytime soon and is actually getting worse. Container bookings are very difficult to gain at the moment and made worse by the fact drivers have to sit in queues for long periods of times as they are held up by congestion at the container parks.

Sometimes 1-2 hours wait time. Some empty parks are fully booked 4 days in advance. This will result in cartage companies not able to dehire containers within the agreed free time and may result in more frequent detention fees. 


Auckland Container Booking Fees Increase 

Please note from the 1st of September carriers will be implementing increases on the container booking fees due to a further increase brought in by Port of Auckland. POAL stated the reason for the increase is due to increased investment in new machinery and infrastructure, system upgrades and inflation. 


Market – Trends 

Europe-Asia and Europe-North America services are currently subject to continuous delays, primarily due to issues with their European rotation.

We’ve seen that even the slightest delay in services through Europe – caused by the likes of terminal congestion, high waiting times, extended import container dwell times, inland bottlenecks and shortened capacity, demand surges, labour shortages and more – can result in a domino effect of disruption across the network.

We encourage clients to analyse their production schedules for the coming months and work with Henning Harders to plan appropriately, including potentially finding alternative routes or using warehousing options to avoid further supply chain disruptions. The issues facing the global supply chain industry is expected to remain critical over the coming weeks with little chance of improvement in the medium term.

We will soon enter further disruptions caused by the increased demand for the upcoming Christmas period – increasing the importance of effective forward-planning on your supply chain. 


Key Ports Update

Terminal congestion and high yard density levels continue to cause disruptions across northern ports in Europe. This is due to a multitude of factors combining to have a ripple effect on operations, including holiday season labour shortages, industry strike action, high dwell on import and export cargo, demand surges into European ports, inland bottlenecks and more. 

As major ports continue to be subject to disruption, customers should expect delays in shipments through major terminals in the region.


Key Market Outlook Across Trade Lanes 

China 
Some potential surcharges can be applied for trucking, including highway toll fees. Lead times may also face challenges. With Shanghai gradually returning to normal after the two-month city-wide lockdown in April and May, factory production is picking up. Demand rebounded in August with signs of seasonal peaks in many trades. Trucking in the city area has also fully gone back to normal. Intra-provincial trucking is also back to pre-lockdown levels, although truckers are toned to undergo local testing requirements. However, the current situation is dynamic and can change in the coming weeks. 

Australia and New Zealand 
Delays across all ports caused by bad weather on the East Coast are impacting the final estimated arrival time and final availability of cargo for delivery to end consignees. Congestion at Auckland caused by labour shortages and vessel bunching leads to vessel delays of up to 8 days. This impacts container availability, final delivery to end users, and extended transit times. 

Singapore 
The three countries are not seeing the same level of recovery in container volumes as experienced by China. Vessel berthing average waiting time is 24-36 hours for import and export vessels. Delays are being incurred due to vessel bunching relating to West bound services from China ports. These delays are clashing with East bound vessel services. Terminal capacity utilization is currently sitting at 85%. 

Malaysia 
Port Klang vessel berthing waiting time as Westport is around 24 hours. Terminal capacity utilization is around 77%. Northport vessel berthing average waiting time is less than 6 hours. Terminal capacity utilization is 88%. Vessel berthing priority is based on the amount of vessel loading moves. Delays are being encountered due to vessel bunching and further delays from origin ports. 

USA 
Los Angeles – Long Beach: The port of Los Angeles dwell time for import cargo is currently at 4.9 days, down from the peak of 11 days. On-dock rail remains at 7.8 days down from the peak of 13.4 days. The dwell time for import containers is expected to increase in the coming weeks. 


Importance of Maritime Insurance 

Shipping freight overseas almost always goes smoothly, with cargo being safely delivered on-time in the vast majority of cases. However, in a small number of instances, cargo can be damaged or lost due to theft, fire, natural disasters and this could be detrimental to your business.

Importers mistakenly believe that loss or damage to their shipment will be covered by the freight carrier, forwarder, or supplier, but this simply isn’t the case.

Billions of dollars’ worth of cargo is damaged or stolen every year, and insurance will mitigate your loss in the even of an incident.

International laws require shipping companies to carry a certain minimum amount of cargo insurance. However, this insurance covers a meager dollar amount, making it insufficient for most shippers.

Sudden loss of cargo can immediately and dramatically cut into profits and case a domino effector on business operations for months to come. Purchasing additional cargo insurance is the best way to protect shipments, as it can cover the full cost of the cargo regardless of carrier liability. 

If an importer has purchased under CIF basis, they may only be covered to the Port / Arrival CFS. 

We recommend importers look at purchasing further insurance to cover them from the Port or CFS to Door (and especially when devanning & loose delivery is applicable). Importers should always consult with their Insurance Broker on all insurance matters. 


In Summary

Global container volume growth is currently estimated at about 3% for 2022, down from 7% in 2021. After a strong start to 2022 on most trades, global demand is shifting downward. High inventory levels built to cushion supply chain delays of the past two years and inflation are decreasing the appetite for imports. 

While exports from Europe, South America, and Oceania seem to have peaked, they continue to show sustained demand. Asia and Indian subcontinent demand has slowed year over year, despite this time traditionally being peak season. 

On the supply side, port and rail congestion, and container equipment fluidity continue to be crucial as they impact capacity and transit time. 

Congestion remains a prominent issue in North America and Europe, where strike actions are upsetting productivity. It is important to understand how market conditions may impact average transit times and to plan accordingly. 

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. 

Regards, 

The Henning Harders NZ Team. 

E&OE 

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