NOTIFICATIONS for general rate increases, rate restorations, peak season surcharges and port-based surcharges are continuing to flow for Australia, New Zealand and South Pacific trades but indices are showing the push may be running out of momentum.
While last week’s Drewry World Container Index rose by a further 10%, figures supplied to DCN show rates on the market-leading China-Australia route have plateaued, with no increase over the last three weeks after steady growth since April.
This has led to renewed concerns that carriers may divert tonnage from Australasia to substantially more profitable routes, although there is little clear evidence of this yet. With one or two exceptions recent, current and future voyage blankings appear attributable to drydockings or other operational reasons, though it is notable that substitute vessels are not available.
Asked if they had any insight about ships being withdrawn – especially as traditional peak import season nears – an executive responded: “I really don’t, it just feels inevitable given the global market is flying and tonnage is in such demand. Is US$1400/TEU enough to keep these vessels in our trade?”
The following advisories have been published over the last 7-10 days:
ANL will implement a General Rate Increase (GRI) for all cargo shipments, starting 15 July 2024, from South East Asia, the Indian Sub-Continent, Middle East and Gulf to Australia and New Zealand. The increase will be US$300/TEU and $600/FEU. The carrier says this is necessary as part of its “continued effort to provide our customers with best reliable and efficient service and due to the imbalance between supply and demand”.
Swire Shipping has advised that “due to escalating operating costs resulting from port congestion, equipment imbalance, and increased cargo demand” it will substantially increase the Peak Season Surcharge (PSS) applicable for its East Timor Service effective from 1 August.
Until 31 July the PSS applicable to shipments from North Asia, Greater China, South East Asia, Middle East Gulf, Indian Sub-Continent, Africa and Europe to Darwin and Dili sits at US$250/TEU and $500/FEU. But next month that increases sharply to US$650/TEU and $1300/FEU.
“We thank you for your understanding and recognition of the necessary investments Swire Shipping must make to maintain our market-leading port coverage and service frequency,” the carrier said.
Swire has also notified of a review of costs associated with the provision of services in NZ, which will result in increases to Terminal Handling Charges (applicable to exports) and Port Service Charges (applicable to imports).
The new THCs, in NZ dollars, will be 378/TEU, 445/FEU, 540/reefer TEU, 650/reefer FEU, and $14 per breakbulk revenue tonne.
The new PSCs, also in NZ dollars, will be 485/TEU, 770/FEU, 485/reefer TEU, 770/reefer TEU and $28.50 per breakbulk revenue tonne.
The revised charges are all effective from 1 August.
Neptune Pacific Direct Line will implement a rate restoration program from New Zealand to the South Pacific (excluding Cook Islands, Tahiti, Norfolk and Australia). The quantum will be US$200/TEU, and $325/FEU, for dry containers, and effective from 1 August. For destinations under the FMC (US Federal Maritime Commission), this will be effective from 5 August.
Maersk Line will introduce, or increase, a/the PSS from Brazil, Paraguay, Uruguay and Argentina to China, Hong Kong, Taiwan, Indonesia, Oceania Cluster, Indonesia, Philippines, Thailand, Malaysia, Cambodia, Myanmar, Singapore, Japan, Korea and Vietnam from 1 August. The PSS will be US$500 per container for dry TEU, FEU and high-cube FEU.
