With many recent broadcasts regarding shipping delays effecting the supply chain our General Manger in New Zealand, Tom Pritchard, thought it would be best to provide another update on how this is impacting the New Zealand market, as it is not getting better and congestion surcharges have come into fruition.
Globally the conditions have deteriorated over the last few weeks with space becoming incredibly tight for all south bound FCLs, as mentioned in our previous newsletter - Worldwide Shortages of Equipment is Worsening.
Severe weather has caused also delays with vessel schedules with some vessels omitting ports entirely to mitigate these delays.
Transhipment ports in Singapore and Malaysia are very congested with the number of containers from multiple origins arriving and exceeding the amount that the transshipment vessels can distribute to their destination ports.
Industrial action at the ports in Australia, whist they have come to an agreement, is still affecting transit times of vessels in these ports. Cargo destined to be unloaded at Australia is taking an extensive time to discharge and as a result is causing a roll-on effect for the vessels arrival into New Zealand.
Port of Auckland continues to suspend berth windows and work on vessel based on their arrival, with production hampered by labor shortages and system failures with the automated straddles. Vessels are waiting up to 15 days for a berth at the port and some vessels are omitting southern ports to and discharging extra containers to be transshipped down with delays of 10-15 days. The shipping lines has introduced congestion surcharges as per previous newsletter - More Shipping Lines Impose Port Congestion Surcharge in Auckland
As an update to our previous FCL surcharge advice please see below:
USD 300.00 per TEU for all Import and Exports. Effective 16 November based on departure date for both Import and Export Cargo. This is rolled in as part of the freight rate
There has also been an update to LCL cargo:
LCL: USD 12.00 per 1000kg / m3 for all import and export cargo
Because of the delays in Auckland vessels are omitting the port and discharging containers at the Port of Tauranga to be railed up to Auckland. As a result of the increase in containers the port has become heavily congested. Railing cargo up to Auckland is taking between 7-14 days.
Both Metroport and Tauranga have reduced the free time available at the port from 5 days to 4 to encourage prompt uplift of imported containers to reduce congestion. Metroport has seen shipping lines exceed their allotted slot locations and are refusing to accept dehire of containers.
As a result of all this congestion we have seen the shipping lines omit New Zealand all together discharging containers at Melbourne to return to China ports to assist with schedule recovery. These containers will incur a further weeks delay as they will be reloaded onto another vessel to come to New Zealand. To return to China ports to assist with schedule recovery.