In summary, market conditions remain extremely strong and freight rates continue to reflect this and rise.
This past week, one major carrier announced they would be auctioning space into SYDNEY….. WHAT THE??? Was our reaction.
Then when we asked how this would work, they advised they have changed their mind, but would be charging USD7200-7600 per 40’ for a sailing on 13th NOV. Several services are not accepting bookings into SYDNEY at all, hence why this price is in the market.
General market rates are sitting in the USD5500 – 6500 range per 40’ if space needs to be secured for sailings up until WK 47 (NOV 16-22) into the east coast. For the West Coast rates are now hitting USD3500 – 4000 per 40’.
And the news does not get any better….. Many shipping lines are now facing extreme shortages of equipment. ONE / ANL / PIL / RCL / TSL / YML are carriers we are aware of, whom have run out of 40’GP and HQ containers. They are now releasing 2 x 20’GP instead of 40’ equipment.
This is adding further costs onto importers as local wharfage and trucking charges for 2 x 20’ is higher than 1 x 40’. But many importers are accepting it, as they simply need to keep cargo flowing.
Bookings are now being placed by many clients for weeks 48 – 52 and into the New Year. So we encourage you to act as early as possible to avoid missing out on space.
Why is this occurring? As previously advised we are facing a truly global "PEAK SEASON", but as you can see from the below COMBINED PORT STATS into AUSTRALIA, the period MAY – AUG all hit highs compared to the previous 2 years.
I am certain that SEPT and OCT would have as well (apologies I don’t have these available) and likely NOV.
To put the above stats into perspective, in 2019 the top volume mover into the USA was "WALMART" at 893,000 TEU. Second was "TARGET USA" at 600,000. These two companies alone imported more than what we, AUSTRALIA do as a nation. So there is no doubt in our minds that what little equipment is available in China is being released onto USA / EU trade above AU.
Update on Industrial Action
Update on Empty Parks
At Transways, we appreciate that your business continues to face many challenges, as we near the end of the calendar year. We are here to help your business continue to operate in a very challenging market place, with significant cost increases. We hope you find this information informative and should you wish to discuss at all, please feel free to contact one of the team at Transways.
SYDNEY Congestion Surcharge
Market conditions remain very challenging, both abroad and locally. Space is at an absolute premium and given the ongoing industrial action delivery services are slower than average and then dehire to empty remain challenging.
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