16th September, 2022
Our apologies for our late sea freight update, we have been busy catching sailings for our wonderful customers. So much has happened since our last bulletin in June, but for those regular readers I hope you had not locked in any rates as they have continued to decline, which is exactly what we had outlined in June.
China
June Commentary from Southern Cross Cargo
There was some offers in the market for contracts for larger volumes however pricing here is still not favourable and the spot market continues to be the best solution at the moment. The rates had been declining since a peak of USD5500.00 per 20’ container out of Shanghai to AU ports and down to USD2800.00 per 20’.
We sit here in September with rates still reducing, current market ex Shanghai and other southern ports sits either side of USD2300.00 per 20’. It is however important to note that a cheaper rate is not always the best solution, a hard lesson for many during the past few years is cheaper is not always better when it comes to ocean freight bookings, securing a booking and the vessel departing on time is worth significantly more.
There are some issues out of China which are out of everyone’s control but each in their own way has an effect on the transit time of current sailings.
Port Congestion
Many ports are experiencing port congestion issues which causes vessels to dock late and naturally arrive late to the next port, at SCC we are not experiencing any bookings rolling to another vessel but are having delayed departures of booked vessels as a result of these congestion issues.
Typhoon Muifa
Unfortunately, Typhoon Muifa has caused a number of ports to close over the last few days, this will have a negative impact on vessel departures, to our China partners and colleagues wish you all well and please stay safe.
Golden Week
These holidays will be from October 1st to October 7th and is usually a time when many will take an extended break to catch up with family. If you are wanting bookings in advance of Golden Week, now is the time to get in touch with our team. Wishing everyone an enjoyable and much deserved break during this time. Besides being time for holidays, space will likely be reduced and carriers normally use this time for some blank sailings
USA
Exports from the USA continue to experience delays and it can take up to 4 weeks to secure FCL bookings. LCL bookings are moving much quicker. For every USA order please ensure our CS team is engaged at the time of the order being placed. Importantly, please adjust your lead times and do hold regular dialogue with your suppliers as many are also experiencing delays with the production time of finished goods. Just on this last point, we are seeing an upswing in air freight bookings of larger orders which were intended to move via sea freight but because of sea freight delays and late production cycles, air bookings are required to meet manufacturing deadlines and or contract demands.
At SCC we have fantastic air freight services and rates and will assist as required.
USA inflation continues up and this does have an impact on the USA fuel charges for domestic trucking.
Europe and the UK
Sailings from EU and UK are continuing to have delays as a result of port congestion and the war in Ukraine, FCL bookings are required 2-3 weeks out form your goods being ready. The most pressing issue though is the industrial action at the ports of Felixstowe and Liverpool, if this goes ahead as planned, delays will be expected. The industrial action is set to run for eight days from 27 September to 5 October at Felixstowe and will overlap with strikes taking place at the Port of Liverpool running from 19 September to 3 October.
New Zealand
It seems our Kiwi friends cannot catch a break with delays being experienced both in and out of NZ ports. FCL delays are longer than LCL, as always though please work in advance of goods being ready with the SCC team and we can then minimise the impact on your important shipments.
BMSB Season
The not so kind BMSB season kicked off September 1st, you can check our website for the details. However, there are a few important matters that we would like to highlight.
- Breakbulk cargo and open tops
These kinds of shipments must be fumigated prior to arrival in Australia, if the goods are subject to BMSB treatment and arrive not fumigated they will not be allowed entry to Australia and will immediately be re-exported. There is no grace on this rule.
2. 120-hour rule
For breakbulk and open top containers having cargo that is subject to BMSB rules the cargo must be loaded to the vessel within 120 hours of the fumigation being completed, if not the goods will need to be re-fumigated which is very costly and causes delays.
Australian Arrivals
Please note on occasion vessel are not arriving at AU ports as scheduled, late decisions can be made from shipping lines to adjust which AU port to arrive at first, these changes are generally as a result of congestion, our SCC team are updating these dates as soon as they are advised.
Australian Exports
With very few direct services ex AU ports to the world we are heavily reliant on transhipment services, key transhipment ports such as Singapore and Port Kelang remain heavily congested and as a result shipping lines are restricting volumes to be loaded on vessels out of Australia, early request for bookings is required here in the same manner that we are seeking early PO data from your for imports to Australia.
Consideration can be given to booking as LCL rather than FCL, in some instances LCL space can be more readily available.
Quotes
For any quotes please reach out to our sales team on sales@sccargo.com.au
