18/6/2021

Dear Valued Customer:

Please see below for our current market update:

OCEANFREIGHT

The Global demand for Ocean freight services both LCL and FCL continues to far exceed supply, resulting in Origin and destination port congestion, increased costs, and transit delays across all markets into and out of New Zealand as we’re are all more than aware of as a result from the past eighteen months of the Covid-19 Pandemic.

Changes to the booking landscape has seen BRi utilising Liner Priority Services, and Origin Spot solutions over NZ Liner contracts as origin vessel planners look to increase vessel revenue to record levels with zero consideration to destination contracts as the current environment simply provide them the opportunity to do so with the space imbalance to so slanted in their favour, and with cargo needing to move despite the cost they could potentially the sell space twice/ three time over on any given day.

The current Supply/ Demand imbalance is by no means unique to the NZ trade it is very much a global situation, and in the absence on additional space on the horizon as we head into NZ’s traditional Peak Season, we expect this space imbalance to continue to tighten, and prices to continue to increase in line with what we’ve experienced to date.

Ports of Auckland – A lot has been said about the situation around the POL’s automation project and its implementation delays and resulting congestion it has caused in NZ, but over the past week or so they have indicated that they are finally in a position to tentatively phase back in berthing windows, albeit it slowly it is a bit of a light at the end of the tunnel situation – It won’t be a short tunnel, but a start at least!

LCL as effectively been the star performer over the Covid period in comparison to both FCL and Airfreight, as its schedule integrity has been fairly consistent in comparison. Yes, it has incurred issues related to the underlying FCL market, such as port congestion, and price increase as a result of increased FCL costs, but it’s schedule integrity has been fairly consistent as liner have honoured the under lying volume commitments on this traffid.

LCL has also provided cost effective and timely solutions on some FCL shipments that lack an immediate FCL solution around required transit times/ delivery due to lack of available space at short notice and continue to provide a successful solution via BRi. 

TAURANGA TO AUCKLAND RAIL

In May Kiwi Rail added additional carriages to the service, and has seen a reduction port congestion, and Priority Rail containers now arriving at Metro Port within five days.

Please note that Metro Port requires container that move under priority rail to be uplifted with priority and as such offer a reduced free time of 36 hours from it arrival into Metro Port. 

AIRFREIGHT

The recent opening of the Australian/ New Zealand travel bubble has introduced increased airfreight capacity into NZ – In simple terms, we have seen flight move from around two planes a day into NZ, to around 200 flights a week into Auckland.

Flights currently are primary “passenger” aircraft, with highly anticipated “widebody” aircraft being slowly reintroduced into the trade lane Transtaz - This provides significantly increased space to the market which is welcomed addition to the trade. 

SOUTH EAST ASIA/ CHINA – BLANK SAILINGS/ BOOKING SUSPENSIONS

We have received notification from various Liners that they have decided to not accept bookings for the remainder of June. With bookings to resume in July.

Here in NZ we have experienced increased rolled booking, port omissions, blanking sailings Ex Asia of late creating significant backlogs of cargo impeding our ability to ship and book containers.

Asia is experiencing sever port congestion and this initiative is being implemented with the intention of resetting port congestion back to acceptable/ manageable levels, and hopefully addressing container imbalances throughout Asia at the same time.

We expect with bookings reopening in July, this will generate a flow on effect on booking availability over the upcoming months heading into peak season with this pause.

BRi and our origin partners will continue to proactively work alongside our liner partners to seek and provide solutions Ex Asia during this time.

 NORTH ASIA GENERAL PRICE INCREASES

Various shipping lines have provided Pending GRI notifications effective 1 July 2021 to customs in Korea, China, Japan, Hong Kong and Taiwan of USD 300.00/ TEU and USD 600.00/ FEU 

SOUTH EAST ASIA PRICE INCREASES

No GRI received on hand - But suspect with issues in line with North Asia, and blank sailing program a similar GRI could be pending when new bookings recommence.

AUSTRALAIN PORT STRIKES

Unfortunately, we are experience industrial action from the Stevedore Union across Australia at present – Please refer to our earlier News Update on the 10^th of June for further details 

YAINTIAN PORT DELAYS

Congestion from the recent Covid-19 outbreak in Yantian continues to see liners omit Yantian to avoid further disruption to their schedules. This is seeing congestion spreading across our Southern China ports as cargo is rerouted to avoid Yantian - Please refer to our earlier News Update on the 11^th of June for further details. 

NEW ZEALAND LINER/ PORT CHARGES

Liners are announcing increases to their Documentation and Port Charges into NZ. The proposed quantum’s vary from Liner to Liner, and as per BRi policy these increases will be disbursed to clients at the same level of increase received.  

AUCKLAND DEHIRE OPTIONS

Due to continued congestion at Auckland Container Parks, liners are instigating restrictions on container off-hires in Auckland and will require empties off hires to be redirected to alternative locations outside of Auckland from the 21^st of June till at least the 4^th of July at the cost of the Importer.

Equipment congestion continues to be an ongoing issue due to the significant equipment imbalance in Auckland as demand for import into Auckland far exceeds the utilisation of export containers out of the Port of Auckland.

To provide an insight on the level of congestion at the moment, we just need to consider the current situation at Manukau Container Park. MCP has a stated capacity of approximate 3000 container slots, but a current utilisation of around 6000 containers on site at the moment.

Please click here to see an example notice received from ANL this morning.

Keeping You Informed!

BRi Customer Solutions Team

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