Has the peak peaked or has space raced?

WITH China-Australia rates flatlining this week and South East Asia’s rise a third of last week’s, shippers may be seeing some stability. But as one observer notes, next week’s indices will be a better guide.

The Shanghai Containerised Freight Index for Shanghai-Sydney slipped 1% for Week 29, to USD 4,532/FEU after fifteen consecutive weeks of rises. It seems likely this reflects the imminent injection of capacity, with the new A3X and Maersk Qilin services commencing from Qingdao 29 July and Shanghai 26 July respectively.

These will add between 6,000 and 8,000 TEU of capacity per week to the trade, depending on vessels deployed, and TS Lines has so-far scheduled four extra-loaders of 1,800-2,700 TEU. ZIM has the 5,315 TEU Zim Albatross headed in as an extra-loader.

Currently, A3X schedules are showing one-ship-short, with a blank every sixth week. And while Qilin was announced as exclusive to Maersk, the service is now also listed on ONE schedules.

Market reports insist space is still very tight out of China, with lines said to be overbooked and rolling cargo in key ports, and bookings hard to obtain until late August. Finding slots is now said to be importers’ key problem, rather than rates. Weather is again playing a role with major storms blighting schedules.

Notwithstanding all this demand three services, CAT, NAX/NEAX and CA2, currently each have at least two blanked voyages in their systems, a rather curious situation some attribute to a shortage of suitable tonnage.

Xeneta’s SEA-Australia main ports index rose 5% for Week 29, to USD 2,508/FEU, compared to a 16% boost last week and 19% two weeks prior to that. Space is said to be tightening but at this stage there don’t appear to be extra-loaders on the horizon.

On the rates and surcharges front, the most noteworthy even has been MSC’s withdrawal yesterday [14 July] of its Service Disruption Surcharge (SDS), due to have taken effect today at USD 350 per container, having already been reduced from USD 500 and renamed from Congestion Surcharge (CGS). “They just do whatever they want,” a confused shipper told DCN.

Other notifications

ANL from 1 August will implement a rate restoration of USD 500/TEU dry and 1,000/FEU dry per for all shipments from Asia/Indian Subcontinent/Middle East to New Zealand.

In addition, ANL says to safeguard service stability and ensure continued access to capacity on the South-East Asia, Indian Subcontinent and Middle East to Australia network, it is applying an emergency space surcharge (ESS), active from 8 August to 30 September.

“The ESS is intended to help us serve you better during this period by supporting stable vessel deployment and consistent sailing schedules on the Asia–Oceania trade,” the carriers says.  The ESS will be USD 250/TEU dry and reefer, and 500/FEU dry and reefer.

On 1 August COSCO Shipping will apply a rate restoration of USD 500/TEU, 1,000/FEU on all shipments from North & East Asia to all ports and points in Australia. An identical rate restoration will apply to all southbound shipments from South East Asia.

Neptune Pacific will implement a general rate restoration for all cargo transported from Asia, China, Indian sub-continent, Latin America, Africa and the Middle East to the South Pacific Islands, effective 15 August. The quantum will be USD 275/TEU dry & reefer and 550/FEU, dry & reefer. The carrier also advises that Fiji Ports, Fiji Revenue and Customs Service, and Biosecurity Authority Fiji have issued a joint public notice requiring that all import and export containers moving through Fiji ports must be presented with an intact seal. 

Swire Shipping advises that following an increase in costs associated with the provision of barge transshipment services, it will be increasing local charges for all ports served via domestic transshipment in Papua New Guinea. The barge fee will be applicable based on a bill of lading's on board date on or after 20 July and will be payable along with the ocean freight. The fee will be USD 150/TEU, 300/FEU.