Airfreight

Imports

  • Australia – Carriers at absolute capacity from all origins. Consols are full and any additional bookings may have to move express.
  • Asia – China is at full capacity with airlines taking up to a week to accept bookings. Shanghai airport is open with a reduced schedule and a limited amount of trucks to deliver the consignments to the cargo terminals.
  • USA – Flights at capacity with Air NZ advising their backlog has increased to 100 tonnes in Los Angeles. We are increasing our consol services from both Los Angeles and Chicago on Fiji Airways which are now daily ex Los Angeles into Auckland.
  • UK and EU – Rates increasing and airlines will only quote on a shipment by shipment basis. Airlines are looking to cancel allocations to maximise revenue for every flight.
  • Cargo terminals, trucking, and warehousing across the supply chain at the airport are returning to normal as Covid restrictions are eased.

Exports

  • Australia – Plenty of capacity to Sydney. There are still restrictions in to Brisbane and Perth. Melbourne is still at full capacity.
  • Asia – Capacity on all carriers (Malaysian, Korean, Singapore, Air NZ, Cathay) across Asia with most carriers providing immediate bookings. Shanghai airport is back open with a reduced schedule.
  • USA – Airlines (Air NZ, Fiji Airways, Air Tahiti) all at capacity. Fiji Airways are now daily out of Auckland with 10 flights a week to the US which has provided additional capacity.
  • UK and EU – Capacity is almost full as aid is being sent to Europe on the main carriers from NZ (Emirates, Qatar). Bookings are taking around a week to come through.
  • Cargo terminals, trucking, and warehousing across the supply chain at the airport is returning to normal as Covid restrictions are eased.

Asia

Imports

  • The ongoing Shanghai lockdown is dominating the logistical landscape from the Asia region, with the flow-on effects far-reaching. We have been in close contact with our Shanghai partners who have indicated there doesn’t seem to be a one size fits all approach, with every shipment needing to be taken on their specific set of variables. The government-imposed closed-loop policy has all residents staying at home, with these blanket restrictions fuelling frustration and anger among the city’s 26 million people.
  • As things stand, all terminals in Shanghai with a gate in/out activities and terminal handling performance are at satisfactory levels, however, this is being negatively impacted by labour shortages and restricted transportation.
  • Our CFS depot in Shanghai is operational, however, suppliers must have strict licenses in order to deliver cargo to the CFS warehouse.
  • On a positive note, after a period of closure the supporting factories and resources surrounding Shanghai port are slowly opening up but generally trucking availability continues to be a struggle.
  • Our origin teams are working hard to re-route cargo where possible to mitigate delays and avoid bottlenecks. Please ensure you are having discussions with your suppliers regarding forward planning, order flexibilities, and what options are available to mitigate your supply chain risk.
  • The economic effects of these lockdowns in Shanghai and previously tech-hub Shenzhen are now starting to show. Fuel demand in China is on track to decrease 20% this month which is the biggest decline since the first wave of COVID-19 more than two years ago. One in five containers is stuck at ports worldwide, with 30% of just backlog coming from China alone.
  • Vessel activity in Shanghai has understandably slowed with the number of vessels berthing on a weekly basis dropping by half since the lockdown begin on the 28th of March. Carriers have opted to omit Shanghai in favor of Ningbo and Taicang as they are subject to fewer restrictions.
  • The line of cargo carriers queueing off Shanghai’s coast is also causing concern. If the situation worsens, port omissions and blank sailings could be on the card in the future to help carriers maintain schedule integrity.
  • A prevalent issue is schedule fluctuations which is causing vessel bunching. Fixed day weekly sailings are not working consistently, which is resulting in recurring patterns where two vessels on the same service end up arriving within 1-2 days of each other.
  • The flow-on effects are putting pressure on landside trucking, factory sites, labour resources, and container detention demands.

Exports

  • For exports into Shanghai, our agent has advised that many sea services are still on hold due to the lockdown restrictions. The port terminal is operating, however, trucking is an issue due to drivers requiring a negative test to enter the port area. We highly recommend that if you have cargo (either FCL or LCL) in transit to Shanghai at this point, you make contact with your customer to confirm when they will be open again to receive this and advise your Export Customer Services Representative if there are any issues or restrictions which may affect your booking (i.e. closures, restricted hours, or alternative delivery addresses) so that they can assist where possible.
  • 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 lines 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

  • Hazardous cargo moving via ANL needs to be lodged around 4- 5 weeks prior to vessel departure to get approval.
  • Vessel delays and omissions from Brisbane, so we only have 2 sailing per month Brisbane – New Zealand.
  • Vessel cut-offs changing dramatically due to the long weekends.
  • 40’ NOR’s available ex Sydney and Melbourne, please contact your Oceanbridge Representative for schedule/rates.
  • Cartage Fuel surcharge increases.
  • Adelaide-LCL packing in Adelaide service up and running again.

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.
  • Please note due to the Omicron variant, Australia is experiencing severe staff and labour shortages. Transport bookings are now requiring 4 days notice prior to delivery

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. 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 of free detention time with no exceptions.
  • Trucker shortages are growing with the rise in Covid cases sending many homes at short notice with illness to isolate. Replacement drivers are hard to find. This is particularly bad in the UK where road freight rates have hit record highs.
  • CFS’s are operating as normal to load LCL.
  • BMSB Season will end on April 30th. Due to the transit times from Europe, this means that new bookings from today onwards are exempt from treatment processes.

Exports

  • Transport into the UK remains heavily booked and congested. Most UK ports are fully operational after recent storms, however, there is a backlog to clear and this may impact upcoming deliveries.
  • There has been significant improvement in transport on The Continent, however, the current conflict with Russia and 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 4-6 weeks. 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 on NZ.
  • The gaps between sailings are now regularly going over 21 days so LCL that has been delivered will incur storage if it goes over 21 days in the CFS. At the stage, there is just one sailing in May 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 canceling 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 must incur them to keep your cargo moving.
  • There are still long queues of vessels awaiting berths on US West Coast ports and many are now pushed out to sea to reduce emissions near the coastlines. This is close to zero in normal times. These delays have caused a large build-up of full containers from the mid-west that have arrived by rail at Long Beach ports. In response, the rail service from Chicago has a backlog of 30,000 containers to clear. This will disrupt any FCLs from the 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 through to Metroport are running slow, 3-12 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.
  • CFSs are operating as normal to load LCL.
  • BMSB Season started on Sept 1st and will remain in place until April 30th.

Exports

  • The VSA service to the West Coast is shambolic, vessel wait times for berths at arrival ports have reduced slightly however delays remain significant. Due to vessel bunching port calls are being switched with limited notice, most recently The CMA CGM Dutch Harbor 213N (ETD Tauranga 17/5). This vessel is no longer calling Seattle and Vancouver, she will now call Oakland and Long Beach.
  • 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.
  • To provide a reliable and efficient LCL option to the USA Oceanbridge is offering an alternative route via New York to all US destinations. The US East Coast service is reasonably stable, sailing close to published departure dates with a 30-day transit from Auckland to New York. The first vessel we are loading is the Olivia Maersk v 217N, ETD May 12th, ETA New York June 16th, and closing at our Auckland CFS, Tapper Transport, May 4th.
  • All services are heavily booked tountil late May.

South America

  • Many lines are not taking bookings to NZ while the clear backlogs have built up due to vessel /service withdrawals.

South Africa

  • Floods in Durban have affected some services. There are severe container shortages. Lines have introduced Equipment Imbalance Surcharges and there is a wait of several weeks on bookings.

New Zealand

Imports

  • The pump price of diesel has been relatively stable over the past 4 weeks so local trucking FAF will remain at 24.1% for May.
  • CODA / Tappers general rate increase encompassing all services by 7.5% is effective from 01 May 2022.
  • 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 & reduced the number of days they were open over the public holiday weekends. Shipping Lines are not offering relief on detention incurred due to importers, their contracting carrier(s) being unavoidably delayed in being able to dehire. Whilst Auckland depots remain overcapacity & in order to address an empty equipment imbalance, CMA is offering to refund the Auckland Congestion Surcharge collected for Auckland discharged 40’ dry containers that are trucked to Tauranga for dehire.
  • The Synergy Keelung 203S is diverting around Auckland to Northport, current ETA is 09 May 2022 with discharged expected to take 2 to 3 days.
  • The date for partial automation rollout at Ports of Auckland has been pushed out from July this year – the rescheduled rollout date is to be confirmed.
  • Scheduled maintenance on the rail line between Tauranga and Metroport has pushed out the average lead time for containers to be railed. The combination of staff isolating plus 3 short weeks has slowed the delivery of containers plus freight stations handling LCL consignments are reporting a notable decrease in the volume of shipments being uplifted.
  • The latest Regulations made under the Russia Sanctions Act 2022 impose a 35% tariff on all imports of goods of Russian origin. This comes into effect on 25 April 2022 and applies to all goods of Russian origin regardless of country of export. Any consignments en route to New Zealand prior to 25 April 2022 are exempt from this tariff.
  • 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 collectors permit, paperless transshipment scheme, and MPI’s General Authorisation of Carriage (GAC) can no longer be used to move uncleared air freight.

Exports

  • COVID-related illness continues to impact 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).
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Oceanbridge

25 Anzac Street

Takapuna 0622

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

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