New Zealand

Imports

  • Covid continues to have a significant direct impact on the productivity of industries where it is not possible to work from home. As Omicron continues to spread Eastern & Southern ports, trucking companies, warehouses with drivers, crane operators, store personnel are being impacted.
  • Relief on fuel tax has not extended directly to the pump price of diesel, it will be worked through Road User Charges in 5 to 6 weeks. The pump price of diesel has increased sharply since end of February so the local trucking FAF for April will rise to 24.1%.
  • Pacifica have announced a general rate increase for southbound coastal containers of NZD 250.00 per 20’ & NZD 450.00 per 40’ container, effective from 15th April.
  • CODA / Tappers have also advised of general rate increase encompassing all services effective from 19th April of 7.5%.
  • Being able to dehire empty import containers, uplift export empty containers continues to be challenging. Container depots are faced with overcapacity with often long lead times to be able to accept empty import containers. A number have shut off receival of empty import containers at times to alleviate overcapacity. Hugo Johnson Drive is closed until further notice due to capacity constraints. Shipping Lines are not offering relief on detention incurred due to unavoidable delays in dehire.
  • Northport’s ability to make import containers ex the Debussy available for uplift is being impacted by the slow uplift of import containers from the previous vessel that called, Tianjin Bridge.

Exports

  • Due to unprecedented increases in the cost of fuel over the past couple of weeks, and in anticipation of another significant increases, transport companies are now advising that they will be increasing their fuel surcharges mid-month. If you have any questions on this please contact your Account Manager.
  • The Omicron outbreak is impacting warehousing and container depots staffing levels. Please expect delays at container freight stations and container depots.
  • Container supply has become problematic as container depots staffing levels reduce many are struggling to repair and upgrade containers. Please provide advanced notice of your requirements for empty container deliveries.
  • Vessel delays and schedule changes continue to be an issue, we highly recommend that the receival window is confirmed at the time of arranging container transport (both empty in and full back to the port).
  • Shortages of reefer equipment has become more prevalent as we enter the NZ peak export season.

Asia

Imports

  • Lockdown restrictions in Shenzhen have been eased, however, localised lockdowns still remain in place. This means that while our CFS is now open, not all staff are able to return to work if they reside in an area with a localised lockdown. To date, Shanghai has avoided a blanket lockdown, however, like Shenzhen, there are still lockdowns, meaning that workforces have been impacted. Ports/terminals continue to operate as normal.
  • The desire to move Non-Operating Reefer (NOR) containers continues to dominate discussions with most shipping lines. Please continue to discuss with your Oceanbridge representative should you have any upcoming orders that might suit NOR containers as the cost savings and priority loading can be a huge advantage.
  • As has been an ongoing topic, schedule integrity remains dire and as a result, to some destinations we are only showing a smaller number of sailings on our schedule; this is to ensure the most accurate information possible is provided. Also, as a result of vessel delays, many of our origin CFS receival windows are changing regularly.

Exports

  • Space and equipment availability is plaguing this market, notably with a shortage of reefer equipment across all shipping lines.
  • Advanced bookings are a challenge with more line imposing cancellation fees, schedule changes and reduced booking windows, however we recommend discussing options with your Customer Services representative as to how to best handle your booking(s).
  • MSC & OOCL are the only Carriers currently accepting cargo to the Middle East

Australia

Imports

  • PIL Auckland Port Congestion Surcharge introduced USD 250 per container, effective 25th March.
  • ANL has a new vessel on the horizon for the TTZ service. ‘Safeen Prime’ will provide space for 2000 TEU from Australia to New Zealand.
  • 20’ Equipment is scarce . 40’ NOR’s are available. Food Grade / special equipment needs to be booked well in advance.
  • An increase on Australian cartage fuel surcharge of 22-30% is coming.
  • ANL schedule changes – Debussy came forward by 2 weeks/Omitted Sydney.
  • Brisbane Port is now open after flooding damage.
  • Vessel delays.

Exports

  • Space availability fluctuates depending on the destination and shipping line so we recommend checking with your Export Customer Services representative well in advance of any upcoming bookings you may require.

Europe

Imports

  • The Russian invasion of Ukraine has not directly affected services, however, many European suppliers potentially have raw materials that come from these countries so it would be worth checking in with them to make sure that they can produce your orders OK.
  • The Hamburg Sud/Maersk Spot pricing announcement has effectively taken a chunk of capacity out of the market from Europe to NZ. The Hamburg Sud Panama vessels have not yet been added to the Maersk Spot market and so are not available to be booked after Jan 1st. This could change but for now we will be moving our European LCL on other carriers until we can access these ships again. Unfortunately, the extra demand on the remaining carriers has pushed rates higher. They also have much slower transits.
  • Storms in the UK have caused many vessels to omit UK ports and drop cargo off in Europe ports like Rotterdam. There will be a large back log to clear.
  • It is peak season and space is very tight across all lines, 4-5 weeks to get bookings on in most cases, sometimes more. Turkey, Greece, Italy, Spain, Bulgaria, Czech Republic, and Scandinavian ports are experiencing space and equipment shortages. Others are raising rates considerably in response to demand. Please allow 4-5 weeks to secure bookings. Many are also reverting to the standard 7 days free detention time with no exceptions.
  • Trucker shortages are growing with the rise in Covid cases sending many home at short notice with illness to isolate. Replacement drivers are hard to find. This is particularly bad in UK where road freight rates have hit record highs.
  • CFS’s are operating as normal to load LCL.
  • BMSB Season started on Sept 1st and will remain in place until April 30th.

Exports

  • Transport into the UK remains heavily booked and congested. Most UK ports are fully operation after recent storms, however, there is a backlog to clear and this may impact on upcoming deliveries.
  • There has been significant improvement with transport on The Continent however the current conflict with Russia and the Ukraine will impact negatively on the supply chain. We expect delays and congestion as cargo transiting the EU into Russia arrives and is subsequently held/returned to its origin.

North America

Imports

  • The weekly Long Beach – Auckland service is still only alternate sailings every 2-3 weeks. There will also be a surge of Australian cargo on these vessels due to the alternate vessel loop dropping Long Beach. There is no alternative service that does not involve long transits via Asia, so we have to wait for this service to return. This is a lot of space to take out of the market and the remaining vessels are overloaded, especially from Seattle which is also being omitted on a fortnightly basis. Please book ahead as far as possible for this service. It can take up to 21 days just to get a booking in place. These ports, along with Long Beach , Oakland and Vancouver are under unprecedented strain to NZ.
  • The gaps between sailings are now regularly going over 21 days so LCL that has been delivered in will incur storage if it goes over 21 days in the CFS. At the stage there is just one sailing in April from Long Beach.
  • Trucker shortages are an issue – congestion has hit drivers wages with fewer jobs able to be completed in a day and forced some drivers out of the market to other employment opportunities. Truckers are also cancelling jobs at short notice due to health/Covid reasons. Replacement drivers often can’t be found at short notice or are charging penalty rates. These extra costs are now just a part of getting containers out of the USA and we have to incur them to keep your cargo moving.
  • There is a record 100 vessels awaiting berth on US West Coast ports and 40 waiting berth in the east coast, many now pushed out to sea to reduce emissions near the coastlines. This is close to zero in normal times. These delays have caused large build up of full containers from the mid-west that have arrived by rail into Long Beach ports. In response, the rail service from Chicago has a back log of 30,000 containers to clear. This will disrupt any FCL’s from Chicago area.
  • Services from the East Coast are still calling NZ weekly and rail to Metroport . A lot of cargo has moved over to these ports so space is tight. Connections thru to Metroport are running slow, 5-10 days to get up.
  • Rail in the USA for 20’ containers is still an issue – the networks are built to carry 40’ boxes and 20’ers can be delayed while they wait for another 20’er to fill the wagon. Where possible, place orders that will fill a 40’ container.
  • CFS’s are operating as normal to load LCL.
  • BMSB Season started on Sept 1st and will remain in place until April 30th. The processes are the same as last year.

Exports

  • The VSA service to the West Coast is shambolic, vessel wait times for berths at arrival ports span between 3 and 36 days. Departures from Tauranga continue to be significantly delayed and vessel schedules changed at late notice.
  • The East Coast services are tending to be more reliable on their schedule although there has been recent disruption due to crew contracting Covid on the way southbound to NZ/Australia. This has settled for the time being.
  • US rail terminals remain congested, particularly Chicago, Columbus, and Los Angeles. Port congestion is delaying container availability in Oakland and Vancouver. Most deliveries are suffering delays due to chassis, truck, and driver shortages.
  • All services are heavily booked to late April.
  • Average vessel wait times for berths are as follows:

    U.S. East Coast

    • New York – Vessel waiting time is 1-3 days
    • Philadelphia – Vessel waiting time is 0-1 day
    • Charleston – Vessel waiting time is 8-12 days due to high import volume.
    • Savannah – Vessel waiting time is 1-2 days
    • Houston – Vessel waiting time is 2-10 days due to high import volume.

    U.S. West Coast

    • Long Beach – Vessel waiting time is 36 days
    • Oakland – Vessel waiting time is 10-12 days
    • Seattle – Vessel waiting time is 3 days

Canada

  • Vancouver – Vessel waiting time is 28 days

South America

  • Many lines are not taking bookings to NZ while they clear back logs that have built up due to vessel /service withdrawals.

South Africa

  • There are severe container shortages. Lines have introduced Equipment Imbalance Surcharges and there is a wait of several weeks on bookings.

Airfreight

Imports

  • General – Capacity has not yet increased even with the boarders opening as cargo only flights are now taking passengers which reduces cargo capacity on each flight. The New Zealand Government has extended the Air Cargo Scheme until 2023 to aid carriers currently operating to and from New Zealand.
  • Australia – Carriers at absolute capacity with no additional flights in the pipeline. Consols are full and any additional bookings may have to move express.
  • Asia – China at full capacity with airlines taking up to a week to accept bookings, Air NZ flights ex Hong Kong will now transit Singapore.
  • USA – Flights at capacity however we are increasing our consol services from both Los Angeles and Chicago. Hawaiian Airlines and Air Canada looking to start operations once boarders fully open.
  • UK and EU – Terminals across the United Kingdom and Europe are at absolute capacity, as are airlines. There are continuous delays and weekly rate fluctuations and maindeck capacity is now almost zero as Singapore Airlines not willing to quote at this time.
  • Cargo terminals, trucking and warehousing across the supply chain at the airport is severely affected by Covid with many workers isolating.

Exports

  • General – Rate increases from 1st April for most airlines/destinations as airlines implement fuel surcharges. Delays with DAP shipments to most destinations due to issues at destination terminals and lack of drivers to make deliveries.
  • Australia – Qatar Airways have pulled out of flights to Brisbane which leaves Air NZ as the main carrier who have limited capacity. Plenty of capacity to Sydney and only moderate delays to Melbourne.
  • Asia – Capacity on all carriers (Malaysian, Korean, Singapore, Air NZ, Cathay) across Asia with most carriers providing immediate bookings.
  • USA – Airlines (Air NZ, Fiji Airways, Air Tahiti) all at capacity. Air Tahiti looking to put on extra flights and Hawaiian Airlines and Air Canada looking to return once borders are fully open.
  • UK and EU – Capacity is almost full as aid is being sent to Europe on the main carriers from NZ (Emirates, Qatar), booking taking around a week to come through.
  • Cargo terminals, trucking and warehousing across the supply chain at the airport is severely affected by Covid with many workers isolating.
vftb reminder

A reminder that there are three short weeks coming up, with Easter holidays on the Friday 15th and Monday 18th April, and ANZAC day on Monday 25th April. Please ensure that all documents are provided asap during this time to ensure speedy processing of orders and shipments alike.

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Oceanbridge

25 Anzac Street

Takapuna 0622

www.oceanbridge.co.nz
Auckland | Tauranga | Napier | Christchurch

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