SILA Global Industry News 23/07/2021
23/07/2021
Shipping Update
In continuation of our last update, Vessel Scheduling and Congestion continues to be a problem with booking times increasing and transhipments times through other major hubs also growing. We are seeing some abnormal transit times being advised by shipping lines on some key lanes, Xingang to East Coast AU for example, with major delays being faced in Busan. Shipping containers are taking up 90% of the Busan Port capacity in this short Video which highlights the challenges being faced.
To further highlight congestion issues “As of 3.20 pm Singapore time July 21st, there were 328 ships idling in front of ports around the world with 116 ports reporting challenges, such as congestion.” With a map of vessel positions provided this is a good visual summary of the current state of global trade.
The article provided by Sam Chambers on Splash247 goes on to quote “ It is concerning to see the situation not yet improving,” Turloch Mooney, associate director, maritime and trade at IHS Markit, told Splash. “Schedule reliability is still way down on pre-pandemic levels. Taken together with very high growth in call sizes, many terminal yards at full capacity, and continuing problems with repositioning of equipment, it is difficult to see a meaningful improvement in the situation in the near-term.”
The traditional peak season is due to begin August / September however it seems we have been in a perpetual peak season for the last 18 months. At this stage we can only assume that these challenges will continue and possibly get worse in some areas as we add further pressure to already peak demand.
Ocean Freight
As can be expected with peak season, it brings with it a General Rate Increase (GRI) or Peak Season Surcharge (PSS). Current pricing is already high, and the proposed increases will add to these costs.
Announcements for GRI effective 1st August are approximately USD500 per 20’ and USD1000 per 40’ however this will vary between lines and trade lanes. For example, Asia to America(s) lanes will reportedly be double this rate and India somewhere in the middle, however it is safe to say that further freight increases are incoming.
In our last update 5th July 21 the Global Container Freight Index provided by Freightos Baltic index was sitting at USD 6297 and currently at USD6714.
Protected Industrial Action (PIA) Update at Patrick Terminals
Industry has been advised by Patrick Terminals of further protected industrial action in Melbourne and Brisbane this week with current delays summarised as follows.
- Average Sydney Terminal delays are now: 6.3 days
- Significant delays forecast in Fremantle as a result of the MUA Industrial action in the coming 7-10 days
- Melbourne and Brisbane – at present there no delays to vessel schedule
DAWE Updates
BMSB
The Department of Agriculture, Water and the Environment (DAWE) has published Import Industry Advice Notice for next years Brown marmorated stink bug (BMSB) seasonal measures, and is linked below for your attention
The list of target risk countries will now include Poland in addition to target risk countries identified for the 2020-21 BMSB risk season.
Emerging risk countries for the 2021-22 BMSB risk season include Belarus, Malta, Sweden, United Kingdom, and Chile.
To read the full industry notice, click here
Khapra Beetle
To support the implementation of our khapra beetle urgent actions, the Department of Agriculture, Water and the Environment has developed two short videos to communicate:
- the risks khapra beetle poses to Australia
- how to identify khapra beetle
- the importance of sea container cleanliness
- how to maintain sea container cleanliness
The department welcomes Biosecurity Industry Participants to watch and share the content. You can watch the videos here:
If you have any questions, please contact your local SILA representative.
Thanks – SILA Customer Service