Market Update – September

Greetings from SILA Global!

As we step into the month of September, we are bracing for the peak season ahead!

At present, rates remain ‘stable’ but carriers continue to push for a hefty GRI and we can expect carriers to continue to use blank sailings as a tactic to push prices up by limiting space to increase supply.

Now is the time to start planning your shipments, allowing ample time for adjustments and potential delays, exploring multiple transportation options, and leveraging technology solutions that provide real-time tracking and visibility into your cargo’s journey. Reach out to your SILA Sales Representative and have a chat about your options and our innovative solutions, like SV3, to ensure you are prepared!

China Shipping Update: ZIM and MSC Collaboration

  1. The anticipated merging of ZIM’s China Australia Express (CAX) service and MSC’s Panada services is undergoing a slight delay due to vessel registration processes with the Australian (AU) port authority. As of the latest information, the commencement is expected to take place in early to mid-October. Read more here.
  2. Both ZIM and MSC will be deploying a combined total of seven vessels for this collaboration. The itinerary for this newly enhanced Panada service will closely resemble the existing one.
  3. ZIM is set to suspend its current Thailand Fremantle Express (TFX) service. South China cargo will be redirected to Panada, while South East Asia (SEA) cargo will be routed to Singapore and connected to the Kiwi service or Capricorn service of MSC.
  4. By approximately week 37/38, an upgrade in vessel size to around 5000 TEUs is planned for the MSC’s Panada service.
  5. ZIM, Hapag Lloyd, and TS Lines will utilize New Zealand Express (NZE) service to effectively serve New Zealand (NZ).

Space Supply and Scheduling

  • ZIM’s China Australia Express (CAX) service will experience a blank sailing in week 37 (10/9 to 16/9).
  • The space supply for this month will vary due to rescheduling caused by recent typhoons.
  • September’s space supply will be ample, except for week 38 (17/9 to 23/9) due to missing North East Asia (A3N) service in Qingdao, North East Asia Express (NEAX) service in Ningbo & Shenzhen, and ZIM’s China Australia Express (CAX) service in Shenzhen. This may lead to a reduced supply in that specific week and potentially increase the likelihood of another full General Rate Increase (GRI) in the 2nd half of September (2H09).

GRI and Rate Updates

  • In the first half of September (1H09), all carriers initiated a General Rate Increase (GRI) of approximately USD 150/TEU.
  • For the second half of September (2H09), A3 carriers and PIL have already announced another GRI of USD 150/TEU, effective from 15th September.
  • Carriers are actively pursuing rate increases in preparation for potential rate reductions in the first half of October (1H10), coinciding with China’s Golden Week holiday
  • Starting on September 15th, ANL is set to initiate a Rate Restoration program. This program will involve charges of USD 100 for 20’ dry/reefer containers and USD 200 for 40’ dry/reefer containers, applicable to all shipments originating from South East Asia, India Sub Continent, and the Middle East heading to the main ports of Australia. Read more here.

Seasonal measures for Brown marmorated stink bug (BMSB)

We bring to your attention the significant BMSB (Brown Marmorated Stink Bug) seasonal measures applicable to specific goods originating in or shipped from countries designated as target risk countries. These measures encompass shipments dispatched between 1 September and 30 April (inclusive) and also encompass vessels that dock, load or tranship from these countries within the same period.

Key Points to Note:

  1. Scope of Application: The BMSB seasonal measures are to be applied to a defined set of goods that are either manufactured in or dispatched from target risk countries.
  2. Timeframe: The measures pertain to goods shipped during the period from 1 September to 30 April.
  3. Vessel Inclusion: Vessels that berth, load, or undertake transshipment activities from target risk countries within the specified period are also subject to these measures.

Important Clarification:

  • The date recorded as “shipped-on-board,” as indicated on the Ocean Bill of Lading, is the determining factor in ascertaining when goods have been shipped. Please note that “gate in” dates and times will not be considered valid for establishing the shipping date.These measures are implemented to address the potential risks associated with the Brown Marmorated Stink Bug and to ensure the protection of our environment and agricultural industry.

    Read more information on BMSB Season here

Please reach out to our dedicated representatives for guidance and solutions that cater to your specific requirements and thank you for entrusting us with your shipping needs.

SILA Global Commercial Team

T: (+61) 02 9556 4866