OCT/SEP 2024

Global

After a strong start to the year with record volumes, a calm period was felt in September, following the European holidays and the ‘Golden Week’ in China. Funnily enough, global air cargo still grew 11% compared to 2023 levels according to IATA. Now with everyone back in business, volumes are expected to peak through to the end of the year including the demand of e-commerce. 

Space out of and through Asia is definitely tightening, as online marketplaces have signed direct deals with commercial airlines.  Without blocked space allocations, forwarders will struggle to gain availability for last minute shipments on commercial flights. It is recommended to plan ahead.

We have seen no changes with the backlogs in Singapore and presume this will remain in Q4.

Read more: No let up for e-commerce demand

Space capacity from US is becoming constricting.  Although the port strikes were short-lived,  this was enough to create a 2-3 week backlog at the ports which could lead to possible urgent airfreight solutions. Along with Hurricane Milton wreaking havoc in Florida, flights have been diverted away from the South Coast with airlines allowing more weight for fuel. 

Read more: Flightradar image shows dead air above Florida as Hurricane Milton hits | news.com.au — Australia’s leading news site

Oil and Jet fuel prices

Thankfully, Rohlig is in a strong position to move cargo with our current carriers from Europe, US, Asia and across the Tasman.

We have seen a drop in oil to 65 USD/barrel, and recently bounced back. If conflict expands across the Middle East, we could see supply cut-offs from certain regions which will have more effect on the price increase.

See charts:  https://www.tradingview.com/chart/?symbol=TVC%3AUSOIL and  https://www.iata.org/en/publications/economics/fuel-monitor/ or download PDF file below. 

For more information about our Air Freight services, please click Rohlig Air Freight, call your local account manager or our friendly Team.

Oceania Operational update

The productivity on the AU terminals in Q3 has continued to sink due to poor weather conditions in New South Wales and Western Australia. As a result, we are now seeing an average of 5 days of congestion in the Oceania region, which forces carriers to do blank sailings and reduce capacity. The situation should ease up as we approach summertime. 

Asia to AU/NZ

October highlights:

- After a slight drop in the market during Golden week, the rates are increasing again as of 15/10.

- FAK levels range between 4200 to 4600 per 40’ for the second half of October.

- MSK is reinstating the Northern Star service (China to NZ and BNE)

- Capacity to West coast is still very tight (rate up to USD 500/TEU ++ vs EC).

- MSC is launching a new Koala service starting 29/10 from China/Jakarta to Fremantle

November trend:

- Most carriers are announcing a GRI averaging at USD 300/TEU ex NEA to Oceania from 01/11.

- Schedules for most carriers are in disarray and we expect 25% of the capacity to be removed in November.

- The SEA market should be more stable as extra-loaders have cleared most of the cargo in October.

- The addition of the MSC new Koala service will bring more stability to the West Coast. We are already seeing COSCO equalising rates from EC and WC.

- We can expect a normalisation of the rates to NZ with the new MSK service – It is been noticed, that spot rates are already decreasing.

Container Rates (12 months): China MP and South East Asia MP - please download a PDF file (below) to see the charts 

Maersk Reinstates Its Northern Star Service

Key Highlights:
-    First Sailing: Maersk Innoshima 443S departing Shanghai on 21st October 2024

-    Full rotation: Shanghai – Hong Kong – Brisbane - Auckland – Nelson – Timaru – Port Chalmers – Napier – Tauranga 

MSC introduces a new Koala Service

MEDITERRANEAN Shipping Co will revive the Koala brand for a new weekly service between China and Western Australia, via Indonesia.

Although there had been no official announcement at time of writing, DCN has seen a customer notice announcing the new route, which will cover Shanghai and Shekou in China before calling at Jakarta and then Fremantle, although it appears this may be subject to variation.

The initiative follows MSC’s decision to cancel its weekly Capricorn and Kiwi Express services from South East Asian hubs to Australia and NZ, both of which are completing final sailings this month. Capricorn was known to carry substantial quantities of Chinese imports to Fremantle and Port Adelaide and its loss is being felt in both ports.

The notice said bookings are now being taken, with the first vessel, the Fujian Mawei ‘SDARI 1800 open top’ newbuilding 1800 TEU MSC Kyungmin, scheduled to departShanghai 29 October. This is one of ten sisters MSC has on order at the yard.

Read more:  MSC fills WA gap with Koala   

Europe

Key highlights:

- Market has shrink by 9% in September because of lack of capacity on the market due to MSC removal of their relay service via Asia

- The direct service remains full with 3xweeks booking pre-advice

- Schedule reliability on the Direct service is at its worst with numerous omissions of key ports such as La Spezia and Hamburg – this will continue in November

- Despite those challenges, rates are stable and we should see stability until the end of the year

- There are rumours CMA  will reopen its relay service to Australia via Asia in November. New Zealand bookings are still opened.

Americas

East coast port strike stopped after 3 days

• The International Longshoremen’s Association went on strike on 01/10 after its contract expired, primarily over pay and automation issues at ports from Maine to Texas.

• Most carriers anticipated the issue to last for weeks and significantly increased freight rate and local charges.

• However, both the union and port authorities have reached an agreement on the 04/10 pushing most carriers to instantaneously remove those charges

• Freight rates remained high on both coast for the first half of October but we already see Maersk and Hapag Lloyd cutting drastically the rates for the second half of October - all the way to 15/11.

We expect rates to remain on the high side for Q4 as many blank sailings are announced on both coasts.

For more information about our Sea Freight services, please click Rohlig Sea Freight or call your local account manager or our friendly Team.  

Engineered Stone Importation Ban to Start January 1

The Minister for Home Affairs the Hon Tony Burke MP and the Minister for Employment and Workplace Relations Senator the Hon Murray Watt have confirmed the prohibition of the importation of engineered stone as of 1 January 2025.

For more information: click here

Ensuring Your Commodities Do Not Contain Asbestos

In recent weeks, we have observed an increase in ABF interventions regarding goods that may contain asbestos. This serves as an important reminder for our customers. It is crucial for all importers of goods that may contain asbestos to implement assurance policies to ensure that imported commodities are free from asbestos.

Quarantine and Imported Foods Inspection Delays

The industry is currently facing significant delays in booking Quarantine and Imported Foods inspections. The Department of Agriculture, Fisheries and Forestry is aware of the situation and is actively working to address the backlog. We hope to see improvements in the coming weeks. For more information, please click here or contact your local dedicated Rohlig Customs Broker.

If you have any questions, please do not hesitate to contact your Rohlig Customs Broker Representative or Account Manager.

In Perth we are facing significant delays at the terminal with transport companies running several hours behind schedule. This is making it difficult for them to arrange timely container deliveries.

In Melbourne we are experiencing some delays with empty containers. This will ease off in a week or so. On a positive note, despite the BMSB season starting, current turnaround times are still very efficient.