19/8/2020

Dear Valued Client,

As New Zealand once more finds itself in increased lockdown level’s logistics remains an essential service so please be assured the BRi team remains fully functional and contactable as we work in compliance with the Government’s requirements, during these times.

Peak Season Forward Planning

Further to last month’s advice, we are seeing the effects on space of Peak Season, well beyond previous peak season experiences.

It is no secret C-19 has had an effect on the various modes of transport (Ocean, Air, Rail and Road) on a Global basis, and the increased demand due to peak season only compounds the ongoing space issues of C-19 with simply less space available over this time.

To insure BRi can obtain the bookings you require for your shipments, it is imperative that all booking are notified three to four weeks in advance on Oceanfreight, and a week in advance on airfreight to enable us to obtain the required space – If we are afforded the opportunity to proactively manage your demand as opposed to scrambling to seek space that sold out weeks prior without the forward notice this will reduce your exposure to potential space issues.

Various liners have the option of obtaining priority bookings on some trade lanes/ sailings, but these services do come at a premium over and above the current freight rates of around the USD 500.00 mark per container in addition to the underlying freight rates – These options are subject to availability and confirmation, but they may provide a solution on the shipments that simply cannot wait – Please contact your BRi contact to discuss these as required.

Airfreight

Airfreight continues to be affected, due to a lack of supply/ space – Put simply with less planes flying into/ out of NZ available space and options remain limited and at a premium.

As airlines slowly re-establish services we are seeing increase capacity and subsequently reducing costs from the highs experienced in the midst of the pandemic - This is an improvement but please be aware we are a long way away from the pre C-19 levels, and with the continued threat of C-19 and closed boarders this is our new norm.

Oceanfreight

Oceanfreight has been the Rockstar of the year – Liner’s and co-loaders have been extremely proactive in managing and retaining their service throughout the pandemic - Unlike the airline industry whom relies heavily on passenger service to substitute cargo capacity to their dedicated freight services. Liners have utilised their ability to manage supply via scheduling, and as such been able to respond to changing demand whilst maintaining service integrity and a degree of pricing stability to their markets outside of the seasonal Peak Season adjustments.

During the early stages of the pandemic we saw Oceanfreight become the new fast options between NZ and the world as countries shut down, airlines drastically reduced their capacity and service routes in response to the rapid and significant downturn in the airline industry we all witnessed.

FCL - As we head into Peak Season the demand for space is far exceeding the available capiticity on a global basis. With Liners having reduced their capacity in their response to C-19 combined with the increased seasonal demand that is peak season we are witnessing unprecedented pressure on space availability on a global basis – Well beyond what we would typically expect during peak season.

Below, we request your action with forward planning on upcoming orders to assist us manage your supply chains during these unpresented times.  

LCL - With Auckland’s move into Level 3, devanning stations have had to implement additional Health and Safety practises to compile with Government guides lines including Social Distancing which only allows for one operator in a container at any time during Level 3 – This will effect freight availability, but this will be managed by the BRi to ensure timely deliveries to clients.

BRi New Zealand

Under Lockdown Level 3 guidelines, we are currently working remotely from various satellite offices/ homes throughout the greater Auckland area during lockdown as Essential Workers.

Previous experience from the earlier NZ lockdown assures us we well positioned and resourced to cope with this challenge through good systems, teamwork and the confidence that we add value to our clients supply chains during both good and testing times - All staff remain contactable via the normal email and phone numbers.

Asia Rate Increase

Peak season is upon us!

Various Liners have announced GRI’s of around USD 300.00 per TEU Ex Asia into New Zealand effective 1st of September 2020.

It is BRI’s policy that any GRI/RR/ PSS is passed onto our clients as disbursed and will be confirmed once the quantum’s are finalised accordingly.

Northern Europe Peak Season Surcharge

Liners have announced PSS’s with the Quantum’s to be finalised Ex Northern Europe into New Zealand effective 5^th of September 2020.

It is BRI’s policy that any GRI/RR/ PSS is passed onto our clients as disbursed and will be confirmed once the quantum’s are finalised accordingly.

AEL – Berkman Shenzhen, China temporary office closure

We have received notice of a temporary office closure of our Shenzhen office this morning (18^th of August) due to C-19 incident in the city.

Staff are working remotely as a precaution, but please be aware of possible short-term disruptions/ delays during this period.

We will keep you updated of this situation as it progresses accordingly.

Take care and stay safe,

BR International!

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