Transways header


Dear Clients,

Carriers are not easing up on their endeavors to push freight rates even higher in NOV and DEC. I am not sure what justification they have, as it’s not improving service levels or aiding market. It’s only driving their bottom line, which we all assume is the ultimate factor.

COSCO have specifically notified market of a GRI @ USD450 per 20’ / USD900 per 40’ ex Ho Chi Minh and USD325 per 20’ / USD650 per 40’ ex Haiphong from the 18th NOV.

The above is a little different from normal as it’s a specific country, most carriers advise GRI increases from a region. The decision, I believe reflects the significant market conditions in Vietnam at current.

ANL have advised a GRI ex S.E.Asia, India, Middle East, Subcontinent @ USD200 per 20’/ USD400 per 40’ applicable from the 1st DEC.

ANL also advised market of a GRI ex CHINA / HONG KONG / TAIWAN / JAPAN applicable from 1st DEC @ USD300 per 20’ / USD600 per 40’.

We anticipate other carriers to follow with announcements in the coming days.


Industrial Action.

Notice has been received that DP WORLD SYDNEY will have a stop work meeting on THU 19th from 12noon -1600hrs. This is to allow workers to VOTE on the new Enterprise Agreement. Hopefully this then resolves DP WORLD SYD matters.

Patrick Terminals Australia, are still in a holding pattern, with the deadline 1st DEC fast approaching. No further announcements have been made, so we can only hope that discussions continue behind closed doors, that are positive for all parties.

Now the kicker….. Another party is now taking Protected Industrial Action (PIA), which is going to potential cause disruptions around the country. Svitzer and their towage division has notified market they will be taken strike action in ADELAIDE / SYDNEY / BRISBANE and also GEELONG.

Svitzer provide tug services that allow ships to birth alongside the terminals. At the moment Svitzer management commented that the action is against "CAPTIVE" crews only and therefore stable services for vessels calling will be handled by "call in crews". Let’s hope this is the case and it doesn’t escalate further.


Road Side Services.

We are seeing and hearing that road side services (Trucking / Delivery) is feeling the heat now with the increased volume. It was always going to occur, as a significant amount of import volume was going to arrive in a limited period of time.

One point that we need to highlight, in particular for MELBOURNE importers, is the increased traffic volume. Post lockdown lifts, all cities / countries around the world have noticed a significant decrease in the use of public transport, due to the fear still surrounding catching COVID. 

This see’s increased passenger vehicles on the road, adding congestion to already extremely busy road networks. This is only likely to increase with pre-xmas shopping traffic also.

So we ask for your patience and understanding when waiting for deliveries, as we know there are going to be delays outside of our control and the truckers.


Container Equipment.

Equipment availability is beyond critical levels, with limited 40’GP or HC equipment in China for many carriers. Many importers are reverting to importing 2 x 20’ over 1 x 40’ at significant cost increase (due to local AUD charges) to move their cargo. We understand that some cargo is physically not able to fit into 40’ cntrs, example steel lengths greater than 5.8m. However the battle to obtain equipment is a daily fight and not always achievable.

One shipping line I was speaking to this week, reported they had recently placed an order for 58,000 new 40’HC units. At an estimated cost of USD4000 per new build that is a USD232,000,000 investment. They are obviously of the view that the world economy is well on its way to recover to make that level of investment.


Auckland Port Congestion Surcharge.

Auckland has joined Sydney in having a Port Congestion Surcharge applied. The amounts vary from USD200 – 300 per 20’ and USD400 – 600 per 40’. This fee is being applied by majority of ocean carriers from the 15th NOV onwards.


Bookings

A friendly reminder to place them as early as possible. We have already seen bookings up until WK 3 2021. No, rates are not known as yet passed the end of NOVEMBER, but they understand that if they want the booking space, its best to get in early. We appreciate that not everyone is in a position to do this, but it’s what majority of the market is doing.

To provide indication how difficult it is to secure bookings in some cases, a client was referred to Transways this past week and requested 4 x 20’ ex Japan to be shipped over the next 2 – 3 weeks. On approach to our various partners to Japan, all three politely declined to quote / assist, as the ocean carriers in Japan have advised, no new bookings until 2021 already. It’s obvious why the client approached Transways, as they had obviously received knock backs from their incumbent service provider and potentially others.

It’s unfortunate that business is there to be moved, but the availability and services cannot facilitate trade.


Holiday Warehouse Closures

Friendly reminder that if you haven’t already notified the team @ Transways of your office closures over the holiday period. Please consider doing so. It helps us plan bookings and deliveries to ensure additional costs are minimized or avoided in full.


Chinese New Year 2021.

It’s fast approaching, FRI 12th February 2021. Plan ahead is the best advice.


Kind regards,

If you do not wish to receive future Transways notifications of this nature, please click here and type 'unsubscribe' in the subject line. By doing so, I understand that I will unsubscribe from all future notification related emails from us.

Transways Footer