Due to the current geopolitical volatility and various global events affecting the supply chain, EES Shipping aim to provide updates every two weeks on prevailing conditions.
All of the following events impact YOU as an importer/exporter and ultimately influence:
- Rates
- Space
- Transit times / Delays
- Equipment shortages
Port Strikes USA East Coast and Gulf Ports
The back log of cargo from the port strikes has now been cleared. However, attention has now turned to the upcoming US Election. Analysts have announced that if Donald Trump becomes the next US President, the inauguration will occur right about the same time as Chinese New Year 2025. “Massive advance ordering” by US shippers to “beat Trump tariffs and get as much inventory out of China as possible before the start of the CNY holiday”, would be expected in the event of a Trump victory. December and January could get busy, with more peak season surcharges than the whole of 2024 combined.”
- ISSUES: Forward ordering by US companies expected if Donald Trump wins election
- CAUSES: Increased costs, less space on vessels
- EFFECTS: possible rush of cargo in December / January
North East Asia to Australia Rates
China has been back from their Golden Week holiday for a few weeks now and demand still seems a little soft.
For Fremantle destined cargo, most lines either extended or reduced their late October freight rates.
This weak demand has dictated this drop, or stabilisation in the freight rates for Fremantle.
The East Coast of Australia is still performing differently to Fremantle. Some rates have risen, with carriers attempting to introduce GRIs (or General Rate Increases), while other carriers are holding their rates for the coming weeks. East Coast still has a lot more services on offer and we will likely recommend several services with alternate rate levels.
- ISSUES: Rate stabilisation and possible increases
- CAUSES: Slight rise of volume on Chinas return and less ad-hoc vessels
- EFFECTS: Possibility of blank or sliding vessels to ensure rate erosion doesn’t happen
South East Asia to Australia Rates
Rates from South East Asia have seen a slight reduction or extension of rates for this next fortnight with all lines seeing a slightly lower demand. The below remains relevant, however, the space on this trade lane can tighten up quickly as there are less options to consider.
- ISSUES: Confirmed booking delays, freight rate increases
- CAUSES: Possibility of lack of bookings from all South East Asia Ports
- EFFECTS: Waiting time for confirmed bookings, uncertainty surrounding freight rates
Fremantle Ports, Services and transhipment Issues
The sun is shining, the birds are singing and the terminals down in Fremantle are currently running efficiently. The change in weather has helped and one of the only issues we are seeing is vessel bunching (the vessels arriving at once with little time in between to clear the cargo).
Transhipment through Singapore is currently running smoothly. Delays of 7-10 days have been experienced, but some of this is due to mis-connections (simply not enough time to connect – or delays in the first vessel due to weather or port congestion issues in China) rather than the cargo being rolled.
The EES team is closely monitoring services available to Fremantle and will extend offers on all relevant sailings where possible.
- ISSUES: Vessel bunching is still being seen at Fremantle ports – issues with some sailings/voyages have been seen
- CAUSES: delays in previous ports
- EFFECTS: Possible delays with local transport and availability in Fremantle
Red Sea Crisis
The situation in the Red Sea remains the same as the Houthis continue to fire upon merchant vessels. There has been no change to the vessels diverting around the Cape of Good Hope in Africa.
- ISSUES: Houthi Rebels targeting merchant vessels, including container ships
- CAUSES: Vessel delays
- EFFECTS: Longer transit times, additional costs and higher freight rates
We hope that the above summary keeps you well informed.
