Important Shipping Update

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Patrick Sydney Announce PONDUS Weigh Bridge Fee

Patricks Sydney is following in the footsteps of its Melbourne and Brisbane terminals by introducing a Weight Amendment Fee for any import or export containers handled through the terminal with a variance of +/- 1 Tonne from the manifested weight on the Bill of Lading. Patrick advise that the initiative is to allow parties in the supply chain to better meet their Chain of Responsibility obligations. A Weight Amendment Fee for Containers of AUD 230.00 per container plus GST will apply to all containers determined by the Pondus stand to have a weight variance of greater than +/- one metric tonne within the documented weight (VGM). The Weight Amendment Fee will not apply to importers and exporters who accurately declare container weights in compliance with the SOLAS regime.

 
Supply Chain Market Update

China

Power shortages continue to cause havoc to production schedules in the provinces of Guangdong (Guangzhou, Shenzhen, Yantian) & Zhejiang (Ningbo) are impacting Manufacturing and the Ports. In some cases, areas have reduced to a 3-day working week to conserve power & work within the power allocations the province of Jiangsu (Shanghai) have recently increased to a 4-day production week. Whilst there have been reports recently of a softening in shipping rates ex Asia this is predominantly seen on the China -US Trade Lane and not so much for Australia and New Zealand. Shipping Lines here are reluctant to issue space & equipment leaving it to the local port / local agents throughout China, who will dictate the price required in order for the booking to be accepted and depart. Congestion across all ports remains an issue with delays of many days being incurred. Ports are also near capacity which once again reduces the productivity and efficiency of a ports operational capabilities when they start to exceed the likes of + 80% capacity.


Southeast Asia

Singapore berthing windows currently sit around 4-14 days due to vessel bunching on arrival in Singapore. This is due to the delays elsewhere in North & Southeast Asia as well as Europe feeders putting vessels off their allotted arrival windows. Terminal capacity and utilisation is currently around 90%. In addition, there is an imminent shortage of Port workers due to a recent surge in Covid-19 cases in Singapore as workers stay home whilst in quarantine.


UK

Congestion and delays in the UK of approx. 2 weeks are mounting with productivity slowing as volumes continue to rise through the main ports. Trucker shortages are still impacting supply chains with fewer workers being able to conduct long haul trips due to Brexit. Service providers are having to book inland haulage 3-4 weeks in advance of a vessels ETA to ensure they achieve the required slot. Additional charges have been introduced to provide more guarantees called “Driver Retention Surcharges”, this is to deter drivers from taking on a higher paying job and therefore abandoning the job.


Europe

The situation continues to deteriorate as Europe heads into Winter and many countries deal with skyrocketing Covid-19 infection levels. Netherlands are about to go back into lockdown and Germany close behind with 50,000 infections reported in just one day last week. This will undoubtedly have an impact on supply chains as we head into the Christmas period. Hapag Lloyd have ceased all bookings until January and both CMA and MSC are fully booked until well into 2022. Current lead times have stretched to around 5 weeks for any bookings out of Europe and this may extend further.


USA

West Coast USA terminal operations continue to experience port delays due to congestion issues. Some vessels are waiting up to 30 days to berth. There are now approx. 82 vessels at anchor awaiting berths. Safety concerns are now paramount as the winter months tend to bring with it high winds. The situation continues to worsen and carriers have responded by further reducing booking options.
Recent announcements from Carriers are as follows:

  • MSC has just announced that they are not accepting bookings to Australia & New Zealand from New York, Norfolk, Baltimore and Savannah with immediate effect.
  • Bookings from Philadelphia and Long Beach are severely overbooked and are not allowing any allocation at this time
  • Hapag Lloyd from Philadelphia and Long Beach are severely overbooked and are not allowing any allocation at this time
  • Cosco has suspended all service from U.S to Australia/New Zealand due until further notice
  • OOCL is booking space approx. 8 weeks out .
  • Hamburg Süd has an embargo for cargo moving from Chicago to Long Beach/LA therefore not accepting any bookings and East Coast service has been suspended. 

New Zealand

Shipping lines continue to advise of last minute Port Omissions or rotations in the Port calls around NZ causing disruption to schedule reliability. Bookings and space are still being obtained, however delays continue to be the major cause of disruption.


Video: What Caused Americas Supply Chain Crunch?

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