New Zealand

Imports

  • Relief on fuel tax has not extended directly to the pump price of diesel, it will be worked through Road User Charges hopefully at the end of April. The pump price of diesel has increased sharply since the end of February so the local trucking FAF from April 1st is now 24.1%.
  • As Omicron reported daily infection numbers remain high, Covid continues to have a significant direct impact on the productivity of industries the likes as trucking and warehousing, where it is not possible to work from home.
  • Pacifica has announced a general rate increase for southbound coastal containers of NZD 250.00 per 20’ & NZD 450.00 per 40’ container, effective from 15 April.
  • CODA / Tappers have also advised of a general rate increase encompassing all services of 7.5% which is effective from 01 May 2022.
  • Being able to dehire empty import containers, and uplift export empty containers has become embedded as a long-term issue, mirroring overseas experience. Container depots are faced with overcapacity with often long lead times to be able to accept empty import containers. A number have shut off the receiver of empty import containers at times to alleviate overcapacity. 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 & 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.
  • 2 further vessel diversions to Northport to avoid congestion have been announced in the last week. The Louise V 377S will be omitting Auckland to load and discharge at Marsden Point 14 – 17th April & the Synergy Keelung 203S, ETA Northport 8th May 2022. Both diversions have been made declared as force majeure, leaving the importer to meet the cost of line hauling the container(s) to Auckland.
  • A reminder to all companies that have an MPI ATF that if you have staff leave especially as facility operators that you need to ensure that you have a replacement and that MPI is advised. We recommend that where possible that you have a deputy Facility operator as this makes the transition easier.
  • We have only one more month of BMSB season to run we expect to see an easing of the processing time for BACC applications but do expect that as BMSB inspections stop we will see more audits and other MPI examinations.

Exports

  • Due to unprecedented increases in the cost of fuel over the past couple of weeks, and in anticipation of another significant increase, 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 have become more prevalent as we enter the NZ peak export season.

Asia

Imports

  • Lockdowns in Shanghai have had significant impacts on cargo flows over the past week or so, especially with LCL cargo due to our CFS not being able to open. At this point, there are still lockdown orders in place however these are more targeted at specific districts meaning there are some restrictions on the ability to move of people who reside or businesses that operate in those districts, as well as road closures adding challenges. Restrictions are being reviewed every few days however we envisage disruption will remain in place throughout this week and likely into next week. Truck drivers outside of the Shanghai area need a negative test result within 48 hours to enter the Shanghai border, which is affecting the movement of inland domestic cargo to the coast port of Shanghai. At this stage, the Shanghai authorities are widely accepting of FCL truckers moving around the region, and with the terminals fully functional there remain limited barriers to ship FCL cargo from Shanghai promptly.
  • The number of vessels calling Northport will likely see an improvement in schedule integrity over the coming weeks but this may take some time to become evident.
  • While sailing schedules continue to remain fluid, so too do our CFS receival windows, as many warehouses ensure they do not become inundated with cargo awaiting export. This will often be communicated at origin, however, it is worth discussing this directly with your suppliers.

Exports

  • For exports into Shanghai, our agent has informed that sea services are on hold due to the lockdown constraints. They are hoping to resume for full operations from the 6th April. 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 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

  • MSC ex Australia Food Grade surcharge, currently USD130/20’ & USD260/40’ increasing from the 18th April to USD200/20’ & USD400/40’.
  • Hansa Offenburg delayed due to MPI in NZ requesting hull to be cleaned.
  • ZIM good supply of 20’ containers available.
  • 40’ NOR’s an option to replace 20’s if equipment unavailable.
  • ANL encouraging dehire of empty containers in Tauranga, avoid Auckland Port Congestion surcharge due to depots in Auckland at full capacity.
  • Consistent schedule delays and port omissions.

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, mini 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.
  • Trucking strikes in Spain have settled down but could spread to other parts of Europe.
  • 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 backlog 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, the 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.
  • CFSs 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 on 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 4-5 weeks. Some of these ships have now started to call at Northport instead. 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 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 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 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 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 on 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 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, 3-10 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.
  • CFSs 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 until 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 backlogs 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 – Transit times of around 5 days between Auckland and Christchurch (both ways) for shipments arriving on through AWBs where the airline arranges the trucking between Auckland and Christchurch.
  • Australia – Carriers at absolute capacity. LAN Cargo has added a Sydney to Auckland flight 3 times a week. 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. Shanghai hoping to come out of lockdown this week, rates are expected to rise to 25% depending on demand.
  • USA – Flights at capacity with Air NZ advising of a 75-tonne backlog in Los Angeles. We are increasing our consol services from both Los Angeles and Chicago on Fiji Airways. Hawaiian Airlines and Air Canada looking to start operations once borders fully open.
  • UK and EU – Terminals across the UK and Europe are at absolute capacity as are airlines, 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 severely affected by Covid with many workers isolated.

Exports

  • General – LAN Chile has started a service three times a week to Santiago and onwards to destinations across South America. Delays with DAP shipments to most destinations due to issues at destination terminals and a lack of drivers to make deliveries.
  • Australia – Melbourne space is getting harder but still plenty of capacity to Sydney.
  • Asia – Capacity on all carriers (Malaysian, Korean, Singapore, Air NZ, Cathay) across Asia with most carriers providing immediate bookings. No current bookings to Shanghai due to the covid lockdown.
  • USA – Airlines (Air NZ, Fiji Airways, Air Tahiti) are 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 are severely affected by Covid with many workers isolated.
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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