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Dear Clients, Overall Market conditions ex North and Southeast Asia into all Australian ports are certainly a little weak, which is not uncommon at this time of year, where purchasing can be deferred until the start of the new financial year. GRI announcements Yes market conditions remain soft, however carriers are still pushing ahead with a planned GRI for 1st July. WHY?? Due to pricing on CHINA – USA hitting as high as USD10,000 per 40’ currently, as the market push to move cargo prior to the re-introduction of “TRUMP TARIFF’S” (if applicable). Its simple shipping economics, as we have all become too familiar with in recent years. If the carriers are achieving significantly higher revenue on other trade lanes, Australia gets dragged along. And don’t overlook the repositioning of equipment and ships onto profitable trade lanes. If Australia trade lanes remain weak for revenue, expect further GRI’S to sustain the services, otherwise equipment (containers and ships) will be prioritised to higher grossing trade lanes Blank Sailings Shipping lines are continuing their aggressive blank sailing programme to aid their GRI plan’s. As mentioned above some carriers are now redeploying larger vessel onto more profitable trade lanes which will further reduce capacity ex North Asia into AU. Drewry World Container Index Drewry World Container Index increased 41% in the week to the 5th June. This is primarily on the back of the CN-US index increasing 70% as a result of President Trump’s 90 day pause on tariffs which has seen a massive spike in shipments. Global Port Congestion Typically, when the issue of port congestion arises, we are looking at the inefficiencies of Australian ports however at the moment, we are seeing significant congestion in Chinese and European ports. Major Chinese ports, including Shanghai, Ningbo-Zhoushan, Qingdao, and Shenzhen, are facing elevated congestion levels. Vessel waiting times have extended up to five days, particularly in Shanghai and Ningbo, due to increased vessel traffic and weather-related disruptions. In Qingdao, ongoing dredging activities have further reduced berth availability, contributing to delays. These delays are exacerbated by a combination of factors such as high container volumes, adverse weather conditions, and regulatory inspections. The cumulative effect has led to over 1 million TEUs waiting at anchorages in North Asia. The congestion at Chinese ports has ripple effects across global trade routes. For instance, Singapore, a major transshipment hub, is experiencing berth waiting times up to 40 hours due to the cascading impact of delays from Chinese ports. Northern Europe’s container ports are still experiencing significant congestion, with carriers adjusting services to avoid the worst-affected locations. Rotterdam, Antwerp and Hamburg continue to experience delays, leading shipping lines including Maersk, CMA CGM and MSC to either revise schedules, extend transit times and reroute services. But shippers can expect delays until the end of the peak season at the very earliest. Reasons for the congestion are varied but include low water levels on the continent which has restricted hinterland barge activity, widespread strike action at major ports, whilst there has also been an unprecedented surge in cargo on the Asia-Europe trade and near record volumes on the transatlantic route at the hands of tariff-induced front-loading. April Trade Stats The latest global trade statistics have been published by London based Container Trade Statistics which follow a “fairly normal” seasonal pattern for most lanes.
Gives you a little bit of oversight as to how little power Australian Importers have at times when negotiating with ocean carriers. Should you wish to discuss any of these points, please don’t hesitate to reach out to your key contact @ Transways Logistics International. |
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