Surcharges and congestion keep pressure on China–Australia capacity

In this week's Bradfield Bulletin.... global freight rates are rising and China–Australia capacity remains tight amid surcharges, booking delays and ongoing port congestion.

I DON'T know what was worse this week, waking up every morning convinced it was one day later than it actually was, or having the parent teacher interviews hanging over my head. Thankfully, we've made it to Friday!

Let's talk about space and rates, both have become the biggest talking points in shipping over the past few weeks.

Globally, freight rates continue to climb. Drewry's World Container Index rose another 9% this week, with the biggest gains on the Transpacific. Reports suggest US retailers are bringing forward orders from China by four to six weeks to ensure shelves are stocked for Black Friday and Christmas ahead of potential tariff increases later this year.

But it's a different story closer to home. Drewry's Intra-Asia Container Index fell 4% last week, with analysts pointing to easing congestion and the unwinding of recent front loading. It could be an early sign that the regional mini peak has already passed.

For the Australia trade, however, capacity remains tight on the China - Australia route. Forwarders continue to report difficulty securing bookings, with one carrier even replacing its planned Peak Season Surcharge with an Emergency Space Surcharge (I've not seen this one before!). The move shows a shift from simply charging a seasonal premium to actively managing limited vessel space.

The question now is whether that pressure is about to ease. Reports from China suggest some suppliers are being asked to hold cargo, with importers unwilling to absorb the additional surcharges and higher freight rates.

Congestion also remains an issue, with Shanghai/Ningbo, Singapore, Qingdao, Busan, Hamburg, Bremerhaven and Antwerp all featuring among the world's ten most congested ports this week.

Not every shipping story grabs the headlines, so here are a few developments that flew under the radar this week:

💠 Port of Long Beach announces a green truck corridor to Mexico
💠 Fremantle Ports delays Maritime Day until 2027
💠 MSC acquires a 49% stake in Adani's Vizhinjam Port for US$1.4 billion
💠 Hapag-Lloyd expands terminal network in Hamburg and Tangier Med
💠 Brad Geatches appointed Chair of Southern Ports
💠 CMA CGM and Asyad to develop Sohar container terminal
💠 ONE begins a new chapter as Till Ole Barrelet officially takes over as CEO

💠 Bureau Veritas and Shenzhen Port Group partner on green corridor

After the adverse weather and port evacuations over the weekend and into the start of this week, there was a flurry of activity in Fremantle's Inner Harbour as vessels got back on schedule. Today's photo is of the COSCO Philippines, now bound for Port Klang.

Have a great weekend everyone!