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.