The peak season continues to be extremely strong in 2017. Container movements from China and South-East Asia region have surged during October creating significant back logs in both trade lanes.
The General Rate Increases (GRI’s) announced to have effect on15 October were fully implemented from China and carriers have also been able to fully implement 1 November GRI’s.
Carriers like COSCO, ANL and Maersk have large backlog moving through their hub ports of Singapore and Port Kelang into Australia. This has been caused through strong bookings from Malaysia, Indonesia, Thailand, Vietnam, India and European flows. The space shortages have been caused by a combination of re-structuring of services (i.e. AAA1 dropping Brisbane call, reduced number of vessels in place of larger tonnage, a redirection of European cargo through Singapore) and through an increase in import activity from all ports.
China carriers have all reported sustained increased container bookings through until the end of November. COSCO has just announced that it will feed South-East Asian originating cargo through Hong Kong to reduce the roll-over pool that has developed on their services in Singapore. This is extra container flow over Hong Kong has impacted on their Pearl River Delta services resulting in space shortages on their A3 service from Southern China.
At present carrier’s report full vessels through until the last week of November from China and have announced a 15 November General Rate Increase of USD 150 per 20ft and USD 300 per 40ft and similar General Rate increases have been announced effective 1 December from South-East Asia trade lanes
We are managing your space requirements during this difficult period and while the above GRI announcements have been made, we expect that space conditions will ease in the last week of November and into December and that may mitigate announced increases and alleviate current space shortages.
In the meantime, your ACA Customer Service representative will discuss with you directly any space difficulties and changes in pricing.