China Peak Season Ramps Up as Space Dwindles
This month the shipping industry has been turned upside down by a combination of factors – including an overwhelming number of cancelled sailings.
It also comes at a time when MSC and ZIM Line made significant changes to their services from Northeast Asia to Australia trades as part of their merger. On top of this, adverse weather conditions caused by Typhoon Koinu in Southern China and Taiwan earlier this month have added to the disruption.
During the period from October 3rd to October 15th, more than 30,000 TEUs were removed from the market, however it was unexpected that this would lead to the chaos that has ensued, as the economy is already struggling with inflation and cost of living pressures that are affecting demand.
The aftermath of the Golden Week Holidays has resulted in an excess of cargo that wasn’t shipped before the holiday due to limited sailings. While some warehouses are still overflowing with goods, others have run out of stock, and urgent cargo is now emerging with only a few windows left for shipping to meet the demand for Christmas and New Year sales.
Shipping lines have artificially created a peak they had hoped for and rationalised supply, and as a result, rates continue to rise steeply.
Space is now at a premium, with vessels full and rolling. Shippers are once again facing the challenges of finding space and equipment to meet their supply chain needs, while carriers take advantage of the market changes and announce further rate restorations and increases, effective November 1st, 2023,
at USD 100 – 150 per teu., being their sixth consecutive successful increase.
All shippers are encouraged to seek a lead time of between 3-4 weeks ahead for new bookings as we enter the run up to Christmas and New Year.
Industrial Action Continues at DP World
DP World terminals in Australia causing growing delays and restriction of access to import and export containers.
The planned actions are designed to cause considerable disruption, but not to entirely stop throughput altogether.
The Oceania Executive Vice President of DP World released a statement advising
“Since the inception of the bans by the CFMMEU-MUA DIVISION on 6th October 2023, there have been tangible disruptions across all our terminals. Exporters, importers, and the broader supply chain have felt the ripple effects of these disruptions, particularly in berthing arrangements and landside services, including road and rail operations.
However, we are fully committed to seeking efficient alternatives at DP World. We aim to ensure vessels are serviced proficiently, upholding our scheduling commitments.”
Some of the stoppages have now gone on to include a stoppage to the collection of all Reefer containers and Out of Gauge containers out of DP World Brisbane for several days. The full list of upcoming stoppages are listed as follows:
DP WORLD SYDNEY
- 2hour stoppages daily from 16/10/2023 04:00 until 30/10/2023 06:00, which will be multiple 2hour blocks per day.
- 6hour stoppages Monday 16/10/2023 to Monday 30/10/2023 in 2hour blocks – 0400 to 0600 / 1200 to 1400 / 2000 to 2200.
- 24hours stoppage next Friday 20/10/2023 starting 0600 to 21/10/2023 ending Saturday 0600.
- A variety of operational bans including overtime, work on certain ships, and others continuing until 30/10/2023.
DP WORLD MELBOURNE
- 2hour stoppages daily from Monday 16/10/2023 till Monday 30/10/2023, which will be multiple 2hour blocks per day.
- Moreover, various bans on operations such as overtime, shift extensions, and work on certain ships will commence from Sunday, 8 October and will be in effect until Friday, 20 October.
DP WORLD FREMANTLE
- 2hour stoppages daily from 16/10/2023 starting 04:00 until 30/10/2023 ending 06:00, which will be multiple 2hour blocks per day.
- A variety of operational bans including overtime, work on certain ships, and others continuing until 30/10/2023.
DP WORLD BRISBANE
- 2hour stoppages daily from Wednesday 18/10/2023 till Monday 30/10/2023, which will be multiple 2hour blocks per day.
- Vessels have been subcontracted to Patricks and Hutchison.
- Hutchison have taken 4 vessels so far and are expecting 1 per week to be subcontracted over the next 4weeks.
- Hutchison have increased shifts and working weekends to minimise congestion.
- No old yard operations including the following:
- Access to all Reefer containers, Imports and Exports
- Access to all Cold-Treatment Reefer containers, Imports and Exports
- Access to all Out of Gauge units, Imports and Exports
- Access to any units located on the general 40 & 50 pads
Our team will continue to monitor the situation and work with transport carriers to avoid delays and additional costs removing containers from the port wherever possible.