Author: GPSM

Current Shipping Situation

Yantian Port in Shenzhen has reported extensive congestion in recent days with two (2) workers testing positive to COVID-19, prompting a quarantining of the area. This has affected delivery and receival of import/export containers and is expected to have an effect on all sailings schedules.

LCL Terminals have also been impacted as they are unable to collect/deliver groupage containers from/to the port.

The port is no stranger to heavy congestion, having suffered major truck queues just prior to Chinese New Year. YICT is a major export gateway in South China, handling 13.35m TEU last year.

Worldwide, space continues to be in short supply. The slow turnaround of vessels at destination ports is the main culprit creating issues with shipping schedules. This is resulting in more blank sailings at a time when the global supply chain needs more sailings, not fewer

The problems in Yantian are expected to cause a flow on effect to nearby Shekou port as well and we are already seeing many sailings departure dates being amended in the last 24 hours.

Ports in USA are continuing to experience extensive delays due to congestion, huge bookings and equipment shortages, these delays are expected to continue throughout June and July, 2021.

 

Patricks Terminals-Australia wide:

The Maritime Union of Australia have further extended their Protected Industrial Action as below, this may cause delays in collecting import and delivering export containers in Syndey, Brisbane and Fremantle, as yet there is no action planned for Melbourne port:

 

Patrick Terminals – Sydney AutoStrad

  • A ban on the performance of overtime at Port Botany (Sydney) from 6am Thursday 20th May 2021 for 14 days finishing 6am Thursday 3rd June 2021.
  • A ban on the working of shift extensions at Port Botany (Sydney) from 6am Thursday 20th May 2021 for 14 days finishing 6am Thursday 3rd June 2021.
  • A ban on the performance of overtime at Port Botany (Sydney) from 6am Thursday 3rd June 2021 for 14 days finishing 6am Thursday 17th June 2021.
  • A ban on the working of shift extensions at Port Botany (Sydney) from 6am Thursday 3rd June 2021 for 14 days finishing 6am Thursday 17th June 2021.
  • A ban on the performance of upgrades and/or work in higher levels at Port Botany (Sydney) commencing at 10:00pm Friday 4 June 2021 until 10:00pm Sunday 6 June 2021.
  • A ban on the performance of upgrades and/or work in higher levels at Port Botany (Sydney) commencing at 10:00pm Friday 11 June 2021 until 10:00pm Sunday 13 June 2021.

 

Patrick Terminals – Brisbane AutoStrad

  • A ban on attending work on days an employee is rostered as “off/avail” commencing from 7am Saturday 15th May 2021 and finishing 11pm Sunday 16 May 2021.
  • A ban on working overtime commencing from 7am Saturday 15th May 2021 and finishing 11pm Sunday 16 May 2021.
  • A ban on attending for work on days an employee is rostered as “off/avail” commencing from 11pm Friday 28 May 2021 and finishing 11pm Sunday 30 May 2021
  • A ban on working overtime at Fisherman Island (Brisbane) from 11pm Friday 28 May 2021 and finishing 11pm Sunday 30 May 2021

Patrick Terminals – Fremantle

  • A ban on attending work on days an employee is rostered as “off/avail” commencing from 7am Saturday 15th May 2021 and finishing 11pm Sunday 23 May 2021.
  • A ban on attending work on days an employee is rostered as “off/avail” commencing from 7am Tuesday 25th May 2021 and finishing 7am Tuesday 8 June 2021.
  • Work stoppages of 1-hour duration at 0600, 1400 and 2200 each day from 27 May 2021 (excluding Saturday and Sunday) finishing on 4 June 2021.

Melbourne Lockdown

Melbourne will be plunged into another lockdown from midnight tonight 27th May, 2021, for 7 days following another COVID-19 outbreak in the state.

Can all clients please advise our Customer Service Team ([email protected]) if your Melbourne facilities will be open and able to receive/dispatch cargo?

We look forward to receiving your URGENT replies so that transport arrangements can be altered/maintained in the next seven (7) days.

Export Shipping Update

Export Shipping Update

Numerous shipping lines are reporting a continuation of record export bookings from Australia at levels never previously seen on all trade lanes.

We understand CMA-ANL Group are fully booked to Papua New Guinea until September 2021, while their New Zealand, USA and South East Asian export services are also heavily booked.

CMA are advising us to book “months in advance to ensure the booking will be uplifted as planned, volumes we are encountering at present have never been seen before”.

OOCL Lines have reported they are also experiencing unprecedented booking levels with little immediate (if any) space available on most services. They have also advised the average berthing delay times in Australia at present as follows:

  • Patrick Sydney and Melbourne terminals will face delays of approximately 4 – 6 days this week for off window vessels.
  • Indicated delays are for this week’s vessels only and could change depending on labor absenteeism and final productivity.
  • Brisbane could face delays of up to 4 days .
  • DPW Sydney ( 3 days ) and Brisbane ( 4 days) is facing severe congestion due to late arriving A3 service vessels now clashing with other services and window vessels in Brisbane.
  • Patrick Sydney have removed pro-forma move counts on the main China AAA service but could re-introduce move counts due to PIA.
  • COR and sublet options will be explored with a view to minimizing delays if necessary.
  • Upcoming Patrick MUA action will affect vessel schedules.
  • Upcoming PIA action at VICT may cause some delays to ASAL and A3C services
  • We are now also dealing with MUA protracted labor stoppages for the next 14 days.

Please advise our Export Team us as soon as possible of any export FCL booking requirements so we can investigate all options for all destinations.

China Shipping Update

Ocean Freight for most trade lanes out of China has been very high , especially for the China to Europe/USA/Africa trades, however, according to our agents in China the trade lanes to Australia are not as congested and rates are far more stable. Carriers do expect further equipment shortages by the end of May and with this may come higher Ocean Freight rates. Some carriers have again started to arrange blank sailings with reduced space capacity by using smaller vessels. These ploys are creating an artificial market rather than actual booking growth.

Whilst there has been a steady increase in May bookings, it’s too early to predict that our Peak Season has already started. Some carriers are predicting O/F increases ranging between USD 300/20’ and USD 600/40’. Whilst these early forecasts are normal, it remains to be seen if carriers actually go ahead and implement such increases.

Some shippers have already started shipping their Christmas bookings. Some lines are starting to reject bookings to Sydney favouring destinations ports like Melbourne and Brisbane due to congestion in Sydney.

We are in contact communications with our Chinese partners and will keep you updated as more information comes to hand.

Document Processing Delays Continue

Shippers , Customs Brokers and Freight Forwarders are becoming increasingly frustrated by the delays in document processing by AQIS ( Department of Agriculture, Water and Environment ) This is causing unnecessary delays in delivery schedules for Importers and in some case incurring unnecessary costs like wharf storage and container detention.

The Department has issued a notice explaining the situation and how they are trying to rectify this problem .

You can read more here https://www.agriculture.gov.au/import/industry-advice/2021/93-2021

Federal Budget 2021/22 Highlights

Highlights from the Federal Budget 2021-22 see funding boost for Bio Securities as well as other areas.

Government has committed over $400 million in funding of various Bio Security programs. This is designed to assist importers who have faced delays with the clearance of their goods and facilitate faster clearance.

An additional initiative of over $100 million over 4 years to manage the Bio Security risks associate with Hitch – Hiker Pests such as Brown Marmorated Stink bug ( BMSB ) & Khapra Beetle , the program is designed for greater port surveillance .

Government has committed $2 Billion to deliver a new intermodal Terminal in Melbourne , either west or north.

The terminal is designed to help realize the benefits of dedicated east-coast inland freight line with Trains between the site and Brisbane expected by 2027.

Australian Anti – Dumping Duty System $5 million in funds designed to provide importers and local manufacturers Advice on whether goods are subject to “ anti- dumping duties “ .

Simplified Trade – Government has expanded funding of further $37 million over 3 years to support initiatives to modernize and improve Australia’s Tarde , including a review of the regulatory process and ICT systems that impact cross – border – trade.

Global Container Shortage explained

What to Do About the Global Container Shortage:

Equipment , better known as Container , shortages are just some of the headwinds Shippers , Importers and Freight Forwarders have been facing for the past 12 months.

This video explains how these shortages came about .

Bio Securities Document processing delays

We wish to make you aware that currently there are several day delays in processing documents by Bio Securities.

We have reached out to them to determine when this will be rectified , however no clear information has been provided. These delays could lead to additional charges being incurred for wharf storage, and container detention and we are monitoring the situation daily.

Sydney Port Disruptions May 2021

Hutchinson Terminal in Sydney have suspended operations this morning due to the severe weather in the port area.

DP World Empty Park at Port Botany have also suspended operations until further notice due to the high winds in their area.

Our Transport Team will keep any affected clients updated on revised arrangements as soon as the terminals re-open.

General Update – May 2021

LCL Cargo Surcharges from USA:

Cargo consolidators from USA have/will implement Container Freight Station (CFS) Congestion Surcharges for all LCL cargo received in New York/New Jersey, Chicago and Los Angeles/Long Beach facilities due to the current congestion in these facilities.

The surcharges are effective from 1st May, 2021 at a rate of USD 4.00 per cbm/1000kgs and surcharges have been added to the GPSM web rates module.

 

Montreal Port:

An on-going industrial dispute at the Port of Montreal has been thwarted by the Canadian Government passing urgent legislation that has ordered 1150 dock workers back to work immediately.

Non-compliance by either dockers or port employers carried fines of up to C$100,000 a day. The bill also provides for the appointment of a mediator-arbitrator who will have the power to impose a binding new collective agreement within 90 days.

Such government intervention was sought by increasingly anxious business circles across the country and the Ontario and Quebec provincial governments along with Canada’s 2nd largest port serving shippers in a large hinterland that includes the U.S. Midwest.

“This new turning point lets the Port of Montreal regain stability and the capability to fulfill its strategic role as a public service without long-term interruptions,” said Martin Imbleau, President and CEO of the Montreal Port Authority. This role is especially important while we are still in the middle of a pandemic.”   Port operations commenced returning to normal on Saturday 1st May, 2021.

 

Vehicle Booking Fees:

In our Newsletter dated 24th February, 2021, we announced that vehicle booking fees at Australian ports were being increased by terminal operators from 1 March, 2021.

GPSM have tried to work around the new costs of $ 40.00 per booking, and had not passed on the increase to clients. Please note the increased costs will now have to be passed on as we are unable to continue to absorb these costs.

The new costs have been added to GPSM rate portal and are being invoiced as from 1st May, 2021.

 

USA congestion:

Vessels continue to line up at USA ports resulting in continued unloading and loading operations. The volume of vessels arriving in USA has increased by 50% on the same time last year and is stretching resources and equipment to the limit.

Shippers moving goods to and from inland US points continue to grapple with delays and rail fees as the ongoing surge in freight causes congestion at nearly all North American ports, causing a ripple effect to the inland intermodal ramps.

Unprecedented volumes of cargo have overwhelmed key inland hubs such as Chicago, Dallas, Memphis and Kansas City, making it difficult for shippers to pick up from “wheeled facilities,” where arriving containers are normally mounted to chassis for truckers to pick up. With chassis shortages currently persisting at the ramps, terminals are grounding (and often stacking) those containers, resulting in demurrage fees.

“Instead of getting 30 or 40 boxes off a block of cars every day, you’re getting full trains coming in with 250 to 275 containers,” Van Noel, chief operating officer of chassis provider, TRAC Intermodal said. “Recently, we had a train arrive in Cleveland from a western railroad interchanged with the CSX with around 272 boxes on it. That’s very unusual and we’re just not fleeted for that.”

At the same time, shippers are contributing to the problem by keeping equipment longer. Like the marine ports, inland terminals depend on the returning equipment and those that are kept longer slow the unloading of inbound freight.

 

Global Equipment Shortage continues:

The stocks of empty containers globally are continuing to be depleted due to overwhelming demand, the recent Suez Canal closure only adding to the problem. Many thousands of empty containers being repositioned at that time were caught in the canal closure and are now late arriving at load ports desperate for empty equipment. In particular, USA and most European origins are extremely short of stock, leading to additional delays for bookings to be processed. Some shipping lines are advising of delays up to four (4) weeks before bookings can be confirmed.

According to industry experts, we are unlikely to see an easing of demand n 2021 given the unusually high demand for cargo bookings globally, despite the fact that some shipping have already added hundreds of thousands of new-build containers to stocks already in 2021.

 

Fremantle Tugs Industrial Action:

Svitzer (the National Tug Operator) has received notice of protected industrial action for their Fremantle operations for 24 hours  on Thursday, 6th May, 2021.

The company is working on alternate arrangements to minimise the impact on vessel arrivals and departures.