SHIPMENT INSURANCE UPDATE

Shipment Insurance Update:

We have bee notified by a few clients over the last 24 hours that their Insurance Underwriters have notified them of a change in their Marine Insurance coverage on any shipments moving near the Red Sea or the Suez Canal.

We would recommend that all clients check with their Insurers to see if they could be impacted by a change in coverage. It is important to note that GPSM are not involved in Marine Insurance coverage nor do we have any control over actions taken by shipping lines who despite advising that most of their services are avoiding the Middle East conflict area and transiting to/from Europe via Cape of Good Hope, may at any time decide to alter that decision and divert vessels via the Red Sea or Suez Canal.

Please note that GPSM will not be liable for any claims, damages or losses as a result of the change in policy by insurers or shipping lines during the current conflict.

Australian Port Infrastructure Levy Charge:

Terminal operators have announced an increase in the Port Infrastructure Levy charge as advised in an earlier GPSM Newsflash, from 1st February 2024 the new cost for Sydney, Melbourne and Brisbane will be $ 245.00 per container, the GPSM rate portal will reflect the new charges from that date.

General Update

DP World Status:

No change to the current status at DP World Terminals, the Maritime Union of Australia has however advised of on-going Protected Industrial Action now extended until 3rd February, 2024.

Government is still insisting it will not get involved in the dispute in an attempt to broker a deal, instead again advising both parties to seek a resolution via Fair Work Australia.

How much longer does industry need to put up with this strike action and work bans, it has been ongoing now for some 18-20 weeks and neither party appear prepared to make any compromises to their demands?

 

VICT Terminal Melbourne:

Protesters have forced the complete closure of VICT Terminal in Melbourne over the weekend and since, due to security concerns.

Police are still present at the scene whilst a ZIM Line vessel remains at berth, however VICT’s CEO Bruno Porchietto has advised that they are hopeful they will be able to open the gates at some point today subject to conditions.

 

Airfreight Arrival Charges:

Cargo Terminal Operators have announced another cost increase effective 1st February, 2024, the airline handling fee will increase by AUD 0.02/kg and the Airline AWB fee will increase by AUD 4.00 per shipment. The new charges have been uploaded to the GPSM rate portal and will appear on all invoices from 1st February, 2024.

 

Panama Canal Update:

Services from USA and Canada East Coast ports remain disrupted, both Maersk Line and Hapag-Lloyd have announced the following routing change to NZ and Australia to avoid the now long delays for Panama Canal passage:

From US West Coats, containers will ship by vessel to Manzanillo, Panama, be offloaded and railed or trucked to Bilbaoin Colombia where they will load to NZ and Australian ports. Naturally transit times will be impacted by around 10-14 days being added to the journey but better than the possible 2-3 week delays via Panama Canal, albeit with restricted Canal access

 

Red Sea Update:

Rebel attacks are continuing in the Red Sea, last weekend another tanker was targeted by a missile attack. Commercial shipping is generally avoiding the Suez Canal and transiting via Cape of Good Hope, the change in route is adding some 10-14 days to transit times from Europe, Scandinavia, UK and Mediterranean ports to Australia and NZ.

AUSTRALIAN WATERFRONT

The situation at Australia’s Port Terminals is far from resolved, both DP World and The Maritime Union have been calling for Government to intervene in the dispute but Government have not been willing to get involved to date, rather suggesting the two parties should negotiate a settlement via Fair Work Australia.

The Protected Industrial Action have now been in place for almost 5 months, the fact the dispute is still unresolved clearly highlights a sad reflection on our Industrial Arbitration system.

The cost of the disruptive action to the Australian economy is estimated at $ 84 million per week.

 

DP World Update:

The MUA has notified DP World of additional Protected Industrial Action (PIA) at each of its terminals through to 30 January 2024.

The PIA continues the 2-hour stoppages three times every 24-hours through to 30 January 2024 at all of DP World’s terminals.

It also includes bans on loading trucks and trains at every DP World terminal from 0600, this Friday, 19 January through to 0600 Saturday, 20 January 2024 (0700 to 0700 in Fremantle).

The 2-hour stoppages effectively turn into 3-hour stoppages as no slots are being allocated in the hour time-zone beforehand to try to ensure that all trucks are serviced before the gates close for each stoppage.

Even then, there are reports of futile trips with trucks being escorted from terminals before being serviced in the time-zones leading into the stoppages.

Federal Industrial Relations Minister, Tony Burke, is scheduled to meet with Nicolaj Noes and his management team at DP World this Thursday morning to discuss the dispute.

At that meeting it is anticipated that DP World will urge the Minister to use his powers under the Fair Work Act to terminate the industrial action and order the dispute into arbitration within the Fair Work Commission (FWC) on the grounds of the economic damage being imposed on the Australian economy.

However, the CFMEU, of which the MUA is a division, has urged the Minister to stay out of the dispute, saying that to do so would be “dangerous territory”, and that DP World “could afford to pay” the union’s demands.

We will keep all clients updated on developments as further news comes to hand.

PANAMA CANAL UPDATE & DP WORLD UPDATE

Panama Canal Update:

Water levels remain extremely low in the Gatin Lake that feeds the Panama Canal due to drought conditions in the area, this is adversely affecting the lock system that operates and has led to restrictions in draught and vessel size able to transit the Canal.

Following a further review of the Canal booking system by The Panama Canal Authority, Maersk Lines and Hapag-Lloyd joint OC1 service that links Oceania to the USA East Coast will avoid the Canal and instead land-bridge containers by rail across Panama in an effort to avoid the lengthy delays being encountered at present.

The vessels that previously utilised the Panama Canal will now use the existing Panama Canal Railway to transport containers across Panama. The usage of the Panama Canal Railway is already a standard product for several other connecting services and the lines have confidence that OC1 cargo will continue to move seamlessly through Panama.

 

DP Word Update:

We are advised this morning that the Maritime Union of Australia has withdrawn some of the Protected Industrial Action (PIA) work bans and stoppages. Despite the withdrawal of some bans, there are still multiple protected industrial actions that remain ongoing, including *partial work bans, associated with the PIA for the period Monday 15 January to Tuesday 23 January 2024.

GPSM will continue to update the situation as further developments come to hand.

Air strikes in Yemen – impacts on global shipping

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have received the following from James Hookham, Director Global Shippers Forum (GSF), proving a reaction and expectations of the impacts following the air strikes in Yemen over-night.

The latest event that have dramatically shifted the calculations on the Red Sea situation – while avoiding commentary on the political and military aspects, James has provided the following points as to what it could mean for shippers and supply chains reliant on this route :

  1. The risks of retaliatory strikes on merchant shipping in the Red Sea area are now extreme, and all carriers can be expected to divert their ships away from the Red Sea and Suez Canal route, if they haven’t already;
  2. A working assumption must be that avoidance of the Red Sea and diversions around the Cape of Good Hope will now be the rule rather than the exception, unless or until there is a political settlement which specifically includes the cessation of actions against merchant shipping in the Red Sea;
  3. Therefore, all else being equal, shippers (i.e. importers in North America and Europe) should expect a one-off adjustment to schedules and port calls over the next few weeks but after that service patterns should settle into the new longer routes and adjusted port calls, with some stability returning to predicted arrival times of ships and delivery of containers;
  4. The same will apply to east-bound sailings, which may affect the availability of empty containers in Asia in the short-term. But, again, this should stabilize over time;
  5. Rates on affected trades will inevitably adjust to the higher costs incurred, bearing in mind the greater fuel burn, additional crewing time, insurance and chartering costs. But offsetting these to some extent will be the very substantial savings made in Suez Canal transit fees. These are of several hundreds of thousands of dollars for a typical container ship and these savings should be accounted for by shipping lines when justifying their surcharges and higher rates;
  6. The narrative now being heard is that because the Red Sea is effectively closed to shipping, Asia-Europe/USEC shipping rates are going to repeat the sustained spike of 2020-22 (and, by implication, shipping lines will get another big profit windfall). GSF does not believe this is supported by the circumstances. There is no chronic shortage of shipping capacity in the way there was during the Covid pandemic, and there is substantial new capacity expected to be delivered throughout the first half of 2024. Demand for shipping space is also stable, if not declining;
  7. Furthermore, the cost increases that will be incurred by shipping lines diverting around Africa are known and finite and should not be talked up into a second shipping crisis on the scale of the first one in 2021. Shippers should check demands for payment of additional surcharges, given that the first vessels affected by the diversion are only just arriving at their destination ports. (The first diversions commenced between 13-15 December, and not every vessel immediately diverted);
  8. There have already been substantial increases in quoted spot rates on Asia Europe/USEC trades, but it is important to distinguish between rates that are quoted in hope by carriers and those that are actually being paid in cash by shippers; and
  9. Shippers commencing contract renewal negotiations over the next few weeks should avoid being ‘locked-in’ to rates based on currently quoted spot prices. Following a satisfactory resolution of the situation, costs and rates on affected trades can be expected to ‘normalise’ even quicker than they did in 2022. Although it may seem a dim prospect today, this eventuality should be provided for in any agreements made with carriers for 2024-25.

The next few days are critical in whether the Red Sea situation is contained or develops into a much longer-term regional conflict, which would have much wider and profound consequences for international trade. GSF will continue to report and interpret events from a shipper’s perspective.

 

Paul Zalai – Director FTA | Secretariat APSA | Director GSF

Copyright © 2024 Freight & Trade Alliance (FTA) Pty Ltd, All rights reserved.

DP WORLD TERMINALS

DP World Terminals Update:

MELBOURNE

At 7.00am AEDT this morning, DP World Port Botany released the following detail :

Due to protected industrial action DPW WST will not open for road operations on Friday 12th Jan from 0600hrs, until Friday 12th Jan 1400hrs.

Slots in these zones will be cancelled.

The road is proposed to reopen at 1400hrs Friday 12th Jan.

Further updates will be provided this afternoon as information becomes available, please check the daily 1-Stop Notifications. We are actively working to reduce service disruptions and will keep you updated.

 

SYDNEY

At 6.50am AEDT this morning, DP World Port Botany released the following detail :

This morning DPW has attempted to engage employees in full R&D operations, this has not been accepted by CMMFEU members who have refused to work as required by DPW.

DPWA management apologises for impact this has on our customers’ business and we appreciate your patience as we actively try to resolve this situation.

GPSM will continue to keep all clients updated with latest information on the Protected Industrial Action instituted by The Maritime Unions.

Threat of Waterfront Disruption Escalates

Current DP World Situation:

Below is an industry Newsflash that gives the latest update on what is happening in the DP World vs Australian Maritime Union dispute, as well as the various interviews and publications that have run articles on the work the Freight Industry in general has been involved with in trying to bring this matter to public attention.

If this situation is not resolved quickly the situation is likely to get a lot worse, GPSM will continue to update all clients as further news comes to hand.

FTA / APSA feature on Channel 7 “Sunrise” – threat of waterfront disruption escalates

MEDIA UPDATE  13

Today marks the final day of the current round of bargaining between DP World and the Maritime Union of Australia (Tuesday 9 January to Thursday 11 January 2024), with Protected Industrial Action (PIA) scheduled to resume tomorrow through to Monday 22 January 2024.

In response to the DP World advice about docking workers’ pay for taking PIA (effective tomorrow, Friday 12 January 2024), alarming overnight media speculation suggests the union’s PIA may escalate to include delays to servicing arriving vessels for 16 hours and not to work on some ships indefinitely.

If true, will this force the hand of DP World to take more drastic action?

When Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) interviewed Nicolaj Noes (Executive Vice President Oceania – APAC of DP World) on 5 December 2023, the option of a lockout of employees was not ruled out.

 

It is important to note that this was a strategy deployed by Svitzer tug operator last year when Nicolaj was CEO. In terms of the Svitzer experience, it had the desired result of forcing Fair Work Commission (FWC) intervention with independent arbitration.

This is a high risk strategy should it be deployed by DP World.

While they may well get the same positive outcome as the Svitzer experience, what would happen next should a lockout of employees be deployed by DP World without FWC or federal government intervention?

Would we face an escalation of crippling disruption experienced in infamous 1998 Patrick waterfront dispute?

Putting this speculation aside, FTA / APSA will continue to pressure the federal government and FWC for intervention.

For members’ reference, FTA / APSA were again active in the media yesterday highlighting the implications on Australian trade, the broader economy and the ‘cost of living’ as a result of the failed bargaining process to date – this included a live interview on Channel 7 ‘Sunrise’, ABC Perth, leading agriculture publication Stock and Land, and highly respected US publication Journal of Commerce..

ABC Perth – Christian Horgan interviews Nicolaj Noes (DP World) and Paul Zalai (FTA/APSA) – recording HERE

Channel 7 Sunrise – Mark Beretta OAM interviews Paul Zalai (FTA / APSA) – recording HERE

Journal of Commerce – Australian shippers face worsening delays from DP World-dockworkers dispute

Reaching an international audience, JOC referenced FTA / APSA before quoting an anonymous APSA member (you know who you are, thank you).

QUOTE:

Paul Zalai, director of the shippers group Freight & Trade Alliance said international vessel delays now vary from two to five weeks.

Highlighting the impact on shippers, a senior executive at a major grain and pulses exporter said not only are cargo owners having to deal with the uncertainty of freight delays, but they’re also being charged substantial extra costs by carriers.

“Vessel schedule changes and omissions have the biggest impact on us,” the source told the Journal of Commerce. “With shipping lines having container availability issues for food-quality boxes, we have to take what we can when we can.

“When terminals close due to union action or carrier schedules change, the containers are either stuck in our own yard, returned to already full storage yards or sent to port where they can be moved back to storage yards,” he added. “All of this double, triple handling comes at a cost.”

He said attempts to recoup the additional costs are ongoing, “but progressing very, very slowly.”

Stock and LandPort of Melbourne dispute adding hundreds of dollars to export costs

Implications of the failed bargaining between DP World and the union was highlighted in a detailed article referencing APSA member Mark Lewis from Riordan Grains (cost to grain exporters through Melbourne) and FTA / APSA.

QUOTE:

“Shipping lines are charging additional fees due to the industrial action and are not able to help mitigate delays by offering alternate services, particularly to Asian destinations,” he said.

“The lack of predictability of shipping schedule is also seeing many exporters, who rail from regional centres direct to the wharves, now moving and storing their loaded containers at nearby port facilities.”

This was adding transit delays, double-handling costs and additional truck movements, Mr Zalai said.

“Trains often operate on a ‘take or pay’ method, meaning you either use the slot or pay for it anyway,” he said.

“The decision for our regional exporters then becomes whether to double handle the container at the port and pay for storage or pay for the empty train slot and rail it again the following week.”

Mr Zalai said the FTA had not yet had a response from the federal government.

He said members were “hammering” the FTA, letting it know the impact of the dispute.

“We just want the issue resolved,” he said.

“We are not siding with the unions, or the employer, we just need business continuity and to have our wharves open.

“The government is very proud to talk about free trade agreements, trade liberalisation and having a better relationship with China, which is all fantastic and very important, but I think it counts for nothing if we can’t get our boxes (containers) on and off ships.”

FTA / APSA MEDIA COVERAGE REFERENCING PROTECTED INDUSTRIAL ACTION

9 JAN 2024 : Daily Cargo News – MORE MUA PIA, DPW CALLS FOR GOVT INTERVENTION

9 JAN 2024 : Farm Weekly – Ongoing wharf dispute is resulting in multi-million dollar costs

8 JAN 2024 : Australian Financial Review – DP World to dock pay in escalation of waterfront battle

8 JAN 2024 : Triple M Network, SBS and Channel 10 – Industrial dispute impacts on small business

5 JAN 2024 : Australian Financial Review – Australian grape growers fear export hit from port dispute

5 JAN 2024 : Sydney Morning Herald – Shoppers warned to expect empty shelves, delays if ports strike continues

4 JAN 2024 : Australian Financial Review : Australian grape growers fear export hit from port dispute

4 JAN 2024 : ABC Radio National – Breakfast – Australia”s response to Houthi attacks on shipping in the Red Sea

4 JAN 2024 : SBS – Disruption to trade is threatening innocent lives

3 JAN 2024 : 2GB Sydney – Red Sea conflict having impact on Australian trade

2 JAN 2024 : The Australian Financial Review : Industrial action at ports ‘bigger problem’ than Red Sea attacks

2 JAN 2024 : The Australian : Australian trade flowing from Asia is safe but eventually Red Sea disruptions will hit home

28 DEC 2023 : The Australian Business Journal – Global Trade Faces Uncertainty as Red Sea Tensions and Port Strikes Threaten Supply Chains

27 DEC 2023 : SMH: Send navy to the Red Sea for sake of local economy: Dutton

27 DEC 2023 : News.com.au – Price hike fears over Red Sea shipping chaos, crippling port strikes

27 DEC 2023 : The Australian – Price hike fears over Red Sea shipping chaos, crippling port strikes

21 DEC 2023 : The Australian – Red Sea call ‘leaving our allies in the lurch’

19 DEC 2023 : Stock and Land – Red Sea freight blockage has potential to disrupt all supply chains

19 DEC 2023 : Australian Financial Review – Freight, oil climb as Red Sea attacks shut down shipping

17 DEC 2023 : ABC News – UK and US shoot down more Houthi drones in the Red Sea as shipping companies pause operations

 

MEMBER FEEDBACK

We again wish to remind members that while we have an excellent relationship with a wide cross-section of trade, agriculture and mainstream media, we need of “real life” experiences highlighting the impacts to business and the wider economy – this is essential to maintain the momentum and interest for what appears will be a long, drawn out campaign.

Should any member or industry participant be prepared to go on the public record, please contact me at [email protected] on 0408 280123.

Paul Zalai – Director FTA | Secretariat APSA | Director GSF

Copyright © 2024 Freight & Trade Alliance (FTA) Pty Ltd, All rights reserved.

DP WORLD

A major development has now occurred with DP World Australia (DPWA) indicating to its customers and employees that from Friday 12 January 2024, DPWA will no longer tolerate partial work bans as part of the Protected Industrial Actions (PIA) being taken.

The Notice says “As a result, employees participating in these actions will not be entitled to any payment until they are ready and willing to perform all of their normal duties.”

The full statement from DPWA is reproduced below.

IMPORTANT ANNOUNCEMENT: DP WORLD AUSTRALIA’S STANCE ON PARTIAL WORK BANS AND ENSURING SUPPLY OF CRITICAL GOODS

 

Dear Valued Customers,

We hope this email finds you well.

We are writing to inform you of an important announcement regarding DP World Australia’s stance on partial work bans amidst the ongoing industrial dispute.

Effective Friday12 January 2024, DP World Australia will no longer tolerate partial work bans. As a result, employees participating in these actions will not be entitled to any payment until they are ready and willing to perform all of their normal duties. This decision comes after exhaustive negotiations with the Maritime Union of Australia (MUA), with the assistance of the Fair Work Commission.

This is a necessary step to address the detrimental effects of the industrial action on vital industries such as meat, agriculture, and retail. The livelihoods of countless individuals are at stake, and we must take action to curb economic losses and stabilise port operations.

We want to assure you that DP World Australia remains fully committed to resolving the dispute while protecting our business interests and the broader economy from the impacts of the industrial action. Our Executive Vice President, Nicolaj Noes, emphasises that finding a fair and sustainable solution remains our top priority.

Amidst this challenging situation, we want to emphasise our unwavering commitment to ensuring the supply of critical goods and medicines. Throughout the industrial action, DP World Australia will prioritise the handling of vessels carrying perishable foods, medical supplies, and humanitarian aid. We have put in place procedures to ensure swift and efficient processing of these essential goods, minimising any disruption to vital supply chains.

We understand the importance of these critical goods and medicines, especially during this period of industrial action. We are fully aware of the impact that any disruption in the supply chain can have on individuals and communities. Rest assured, we are working diligently to ensure their timely and uninterrupted delivery.

We would like to take this opportunity to express our gratitude for your continued support and understanding during this challenging time. We value our partnership with you and remain committed to providing the highest level of service despite the ongoing industrial dispute.

If you have any questions or concerns, please do not hesitate to reach out to us. We appreciate your patience and cooperation as we navigate through this situation.

Thank you for your attention, and we look forward to serving you.

Sincerely,

Ravi Sheshadri

Vice President – Commercial – Ports & Terminals

Oceania – APAC

DP World

 

The impact of this could be that DPWA employees may turn up for their shift this coming Friday, refuse to work the full shift (given the notified PIA by their union), and then will not be paid. Effectively, this might lead to what could be described as a “reverse lock-out” of employees by DPWA.

This is a significant escalation of the industrial situation, and ultimately (worst case scenario) may mean that by the end of this week, some or all of DPWA’s container terminals will not be staffed for operations.

In other words, it could mean that more than one third of Australia’s container terminal capacity to handle imports and exports will not be available to service Australia’s container trades, except perhaps for “urgent” cargoes already within the terminals (i.e. the notice talks about critical goods and medicines).

We understand that the scheduled Enterprise Agreement negotiations between the bargaining parties are still proceeding on Tuesday, 9 January, with the assistance of the Fair Work Commission (FWC). How though the two announcements today from DPWA will influence these discussions is a question that only time will answer.

DPWA is clearly seeking Government intervention to terminate the PIA, and for the Federal Minister (or the President of the FWC) to order arbitration to be commenced through the FWC.

The economic harm to Australia will escalate rapidly if DPWA’s terminals are non-operational for any length of time. 

Shipping Update

Red Sea and Suez Canal situation:

All shipping lines are again avoiding the Red Sea and Suez Canal after a missile attack on a container vessel over the past weekend, lines are now transiting the East-West-East trade route via the Cape of Good Hope.

Maersk Lines had previously announced they were halting movements via Suez Canal in a “watch and wait” approach, that decision has now been reversed and all Maersk vessels will also now avoid using the Suez Canal until further notice.

The re-routing via Africa will come at an additional cost, lines announcing they are implementing a Contingency Surcharge on all traffic. CMA Group have announced all traffic to Australia will incur a surcharge of USD 1500.00 per 20ft or 40ft container, while Hapag-Lloyd have announced a surcharge of USD 500.00/20ft and USD 1000.00/40ft will be applicable. Other carriers are yet to confirm their applicable surcharges.

LCL consolidators have also announced they are implementing the surcharge as a result of higher costs, all LCL cargo will attract a surcharge of between USD 35.00 and USD 45.00 per cbm/1000kgs on all UK, European and Mediterranean LCL cargo destined for Australia.

 

Updated DP World Industrial Action:

The dispute between DP World and the Maritime Union is still ongoing with bans continuing into January. It is understood another round of negotiations will commence on 8th January, 2024, meanwhile we are still facing major issues collecting or delivering containers at all DP World Terminals around Australia.

It is estimated that industrial action taken by maritime unions in Australia against stevedore DP World is costing the local economy about $20 million per day but we are still to see any intervention by Government to assist in resolving the dispute.

 

Shipping Rates:

Carriers from Far East Asia to Australia have announced rate increases leading up to Chinese New Year as lines try to claw back income lost as a result of what they call a quiet peak season period.

Rate have increased by around USD 200.00 to USD 250.00/20ft and USD 400.00 to USD 500.00/40ft container from Taiwan, Korea, Japan and China to Australian East Coast ports from 1st January, 2024 with further increases announced to be applied from 15th January, 2024.

Rates from South East Asian ports are also expected to increase from 15th January, 2024, the actual increment to be advised when known.

 

Local Australian Costs:

Further to our Newsflash in December, 2023, Australia Terminals/Shipping Lines have announced increases in charges for Side-Loader Trailer Port Access as well as Vehicle booking fees and Empty Container park booking fees in all states. The new rates have been and are being added to our GPSM rates portal.

The previously announced increase in Port Infrastructure Levies has been postponed until 1st February, 2024.

LATEST PORT AND COST NEWS

DP World Terminals vs CFMEU Union:

The Protected Industrial Action continues at all terminals around the country, DP World have received further advice from the Maritime Union of Australia (MUA) division of the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) in terms of work bans and stoppages associated with the PIA for the period Monday 18 December to Sunday 31 December 2023.

The bans and stoppages will continue as they have done for the past 6-8 weeks and the parties being affected most are importers, exporters and the general public. The cost to the industry has been horrendous, trucking companies have had to pay drivers overtime and weekend penalty rates in order to move their clients containers to and from the ports, these are additional costs not budgeted for by truckers or importers and exporters and these unwanted extra costs are affecting everyone’s bottom lines. On the other hand, Government appears to be doing little to try and resolve the situation despite Freight Forwarders and Trucking Associations pushing for some action apart from the two party conciliation which clearly is not working.

The GPSM Transport Team will continue to keep all clients fully updated by the disruptions on our ports during this difficult period.

 

More port cost increases for 2024:

While the DP World dispute rages on, the port terminals have announced a range of exorbitant landside fee increases that will take effect from 1 January 2024.

Included in the mix are many increased fees for trucking companies in the form of fines and port infrastructure levies as well as surcharges for late slot arrival, bulk container runs, over-length vehicle fees, etc, etc.

Increases in Terminal Access charges have also been announced, particularly impacting Australian east coast container terminals, although they have now been postponed for implementation on 1st February, 2024. The cost levels are being added to the GPSM rate portal.

Red Sea Vessel Movements suspended:

Several shipping lines have diverted their vessel from passing through the Bab al-Mandab Strait crossing the Red Sea following attacks on commercial vessel by Yemen based Houthi rebels.

The Strait is at the entrance to the Red Sea, the approach lane to the Suez Canal.

Asia-to-Europe shippers are facing huge increases in sea freight costs Ocean carriers are already adding war-risk surcharges to shipper invoices, but with the situation deteriorating daily, shipping lines will increasingly look to re-route vessels around the Cape of Good Hope, rather than transiting the Suez Canal.

 

Delays at Panama Canal:

Panama Canal draught restrictions on one side of the world and rebels attacking shipping transiting the Red Sea enroute to the Suez Canal on the other side, are giving ocean carrier ship managers sleepless nights. According to an industry source, diversions of carrier proforma loops are being scaled up as more services avoid the two waterways.

The water level in the Panama Canal is at all time lows with little hope of rain increasing the level soon, delays for transiting the canal are growing week by week as authorities restrict the vessel draught being allowed to transit.

GPSM wished to thank all our clientele for their continued support throughout 2023 and look forward to again servicing your needs in 2024, we wish you a safe and happy Xmas and a prosperous New Year.