Global
Container Services and Shipping Industry News
5th
February 2010
- Container Shortages in China
Ahead of the Chinese New Year,
all carriers are facing problems with a lack of
equipment from all load ports in China. This is
especially effecting 40ft and 40ft high cube containers.
The cause of this problem goes back to the bad weather
in January, when vessel working time was limited
to unloading import containers only, and due to
fixed berthing schedules in Europe, had to cut and
run. With carriers usually loading around 2500 TEU
export containers per vessel, and with increased
bookings ahead of Chinese New Year, this problem
is likely to remain for the next 2 to 3 weeks.
4th
December
2009 - Chinese New Year
The
Chinese New Year commences on 14th February 2010,
and you should be reminded that freight bookings
are likely to be strong up to this date. It is therefore
recommended that you give us as much prior notice
of new bookings as possible.
4th
December
2009 - Carriers Capacity
For
carriers on the Far East to Europe trade, we are
aware of at least two companies who have announced
a slow steaming programme, which will see vessel
speeds reduce from 20 to 14 knots. This will of
course have an effect on transit times, and these
are likely to increase from between 2 and 5 days,
depending upon carrier and origin of your goods.
By doing this, they will also effectively reduce
costs and remove capacity further, ensuring that
current freight rates are held or increased further.
4th
December
2009 - Far East Rates
Since
March 2009, when the ocean freight rates were at
an all-time low, carriers have been making regular
GRI (General Rate Increases) to bring freight rates
to a more realistic level. They have achieved this
with such success, mainly due to their capacity
reduction programmes. Rate increases which were
scheduled to come into force on 1st December, have
been suspended, with all carriers announcing increases
for sailings from 15th December onwards. We are
yet to see whether the proposed increase will stick,
or whether they will reduce this to a more realistic
level. Customers will be informed of any increases
nearer the time, once decisions have been made,
and contracts filed.
4th
December
2009 - Aden Gulf Surcharge
Any
freight movements which effectively enter the Gulf
of Aden, will see the piracy surcharge increase
from 1st January 2010. This is due to the increased
risk that carriers face, and the increased cost
to protect the vessel, crew and your cargo. Generally
the rate will double from USD 23 per TEU to USD
46. These rates will be incorporated into ‘all
inclusive’ contracts from 1st January.
14th
August 2009 - Far East / India Freight Rates
As predicted back in May, we are now seeing freight
rate increases on a regular basis from all carriers,
especially on the Far East Route, but also from
India. In the main carriers are issuing contracts
for a 1 month period only, however due to shipping
industry now being in the middle of a peak season,
carriers are issuing additional emergency surcharges
mid-month. This is causing rates to rise very sharply,
although these are potentially going to be short
term, it does mean that rates now are completely
different to just 3 months ago. Global Containers
are constantly reviewing and negotiating with carriers
to keep any increases to a minimum, however with
vessels on these trade lanes reportedly at 120%
capacity it is likely that further increases will
be implemented as published. We have already received
notification from some of the carriers, that rates
will increase in the region of USD 300 per TEU from
1st September. This along with continued increases
in BAF contributions, will have a direct result
on customers overall freight spend. Of course we
will not know the true cost of any potential increases
until the last week of August, and customers will
be informed in the normal way. The peak season is
due to last until 30th September, and freight rates
are expected to start to reduce again by the end
of October.
