T&DC PTY LIMITED

Australian importers without contract protection are about to have higher sea freight rates factored into their costs.
Carriers on three major trades will now officially implement pre-announced price increases.

As of September 15, members of the Asia Australia Discussion Agreement (AADA) will be proceeding with the next stage of their published ‘Business Plan’, lifting rates for shipments from Korea, China, Hong Kong and Taiwan by US$250 per teu and US$500 per feu.
North Asia to New Zealand rates are rising by the same quantum on the same date while in the opposite direction, September 15 sees NZ to South-East Asia and North Asia to rise by US$100 per teu.
Next Wednesday also sees the activation of the US$125 per teu/US$250 per feu increase on North America-Oceania direct services.

On South East Asia-Australia routes, lines will be continuing their ‘revenue recovery program’ by implementing a US$300 per teu increase on October 1.

Affected countries of origin includes Singapore, Malaysia, Thailand, Indonesia, Vietnam, Cambodia, Philippines, the Indian Subcontinent and the Middle East.
Also on October 1, ANL will implement a general rate increase for imports from Europe and the Mediterranean to Australia on the AEU-1 (NEMO) service operated by parent CMA CGM in partnership with Hapag-Lloyd.

This increase will apply on all dry and refrigerated cargo, exempt or non-exempt commodities, received and moving under an ANL bill of lading and will be US$200 per teu and US$400 per feu.

This is twice the increase announced by Hapag-Lloyd for the same route late last month.

A number freight forwarders, including DB Schenker, Kuehne & Nagel, Panalpina, EGL, and Geologistics International have had legal proceedings filed against them at the High Court in Auckland, New Zealand.

The alleged anti-competitive conduct involved agreements fixing prices and surcharges on airfreight. The Commerce Commission started investigating alleged collusion by the companies in 2007, as part of wider investigations in Europe and the US. Contracts going back as far as 2001 are being investigated.

Settlement has reportedly been reached with two companies involved in the case, whose local operations in New Zealand were not implicated in the alleged price fixing. NZ media reports suggest that EGL Inc. and Geologistics International have been able to resolve the issue with the Commission

Source: T and L News

Previously we noted that the shipping lines were planning to introduce a peak season surcharge of USD 300.00 per 20′FCL and USD 600.00 per 40′FCL from the beginning of September.

We have been advised that they have deferred that decision and this has now been put on hold indefinitely.

Advice has been received concerning an introduction of a GRI (general rate increase) on the 15/09 of USD 250.00 per TEU but there is now a possibility that this may also get pushed back, we will wait and see what the market does.

We have received notification from Lufthansa (LH) cargo advising of a 20 per cent rate rise around the globe from the 1st October 2010.

Citing low operating margins of only 2 per cent and the dramatic downturn in 2009, LH advised the “increases are imperative and is justified to ensure the company’s future and competitive viability”. The notification also advised of a 3 euro-cents rise in security surcharges.

Whilst LH does not operate to Australia, its action of notifying all Forwarders across Europe sends a signal to other Airlines of its rate rise strategy. In addition the recent loss of Cargo Lux ‘all freighter’ flights into the Australian market is expected to add pressure on inbound European airfreight rates, heading into the traditional peak season period.

We will continue to monitor the market and we will notify customers of any changes to Air Freight pricing.

Source: DHL Global

A notice was recently sent to Riteway Express customers advising of changes to account details.

Riteway Express customers should receive directed advice from TNT Express shortly. Attached is a copy of the notice for your reference.

TNT_Express _Riteway

We have been advised that Hamburg Süd will introduce a “Peak Season Surcharge” (PSS) on its southbound trade for export
shipments from Hong Kong, Korea, China, and Taiwan to Australia.

The Peak Season Surcharge (PSS) will be US$ 300.00 per TEU effective 01st September on the basis of B/L (Bill of Lading) dates.

We have just received information this afternoon that the AADA member lines have agreed on a rationalisation program which will take place as quick as 28 August 2010.

The HSUD/MAERSK/APL/HMM/EMC/HALO peak season loader loop will be cancelled. This equates to around 2500 TEU’s per week less capacity (-8%).
HSUD & HMM will enter into a slot swap program with ACE/AANA loops (CSCL/ANL/OOCL) and APL will do the same with NEAX (NYK/MOL/KLINE).

The current average utilisation is around 85% so the rationalisation and expected increase in demand will get it close to 100% which is expected to support the Peak Season Surcharge announced for the 01 September. If the rationalisation takes effect as per above then we expect Rate Restoration to be applied mid/late September.

Please be advised that this information has not been broadcast by the carriers as yet.

Source: kuehne-nagel

We have received advise from Patricks that due to an industrial dispute between the MUA and DP World, containers are now being sub contracted to Patricks terminal.

The industrial dispute has caused massive crowding at the terminal and as a result, the delivery program has been severly impacted. Patricks terminal is running 24 hours a day, trying to remove as many containers as possible.

Source: DHL Global

Large vessel movement at Nhava Sheva Port continues to remain suspended due to the collision incident. Work on clearing the channel is apparently underway and there are confirmed reports that vessels of less than 10 mtrs draft are being escorted in / out of the navigational channel. Movement of larger ships will be permitted only after the channel is declared fully safe for their movement. Based on the discussions with the local shipping community this is expected to happen by the 16th August, however we still have not received offical communication from the Port.

Shipping Lines have started accepting Export bookings for vessels expected to arrive / berth at Nhava Sheva in week 33. This resumption of booking acceptance is partial in nature and depends upon the specific service / trade involved and commodity as some carriers are still not accepting bookings for Reefer / Perishable cargo. Carriers are accepting bookings only for local Nhava Sheva cargo and nearby locations and bookings for North India are still not being accepted.

The entire booking acceptance is subject to specific vessels being able to berth at Nhava Sheva in week 33, failing containers will not be allowed to gate into the terminals and will have to either be held at customers premises or at the nearby off docks.

Source: DHL Global

Members of the Asia Australia Discussion Agreement have decided to push ahead with the annual peak season surcharge in the North and East Asia-Australia trade, despite the sea freight rates continuing to fall.

The southbound PSS was originally scheduled for August 15 2010, but will now be introduced on September 1, officially at US $300 per teu and US $600 per feu. AADA has not nominated the duration of the PSS.

Carriers are “reasonably optimistic” the surcharge will stick as volumes rise, although evidence provided by the latest Shanghai Containerised Freight Index suggests rates are still heading determinedly down.

As of Friday August 6, the average cost of shipping a container from Shanghai to Melbourne – blue water rate plus all surcharges – was US $863, down US $42 since the previous week.

The Index in the Oceania trade has now dropped almost 50% since January. Meanwhile, the five members of the United States Australia Discussion Agreement have decided to impose a general rate increase of US $125 per teu and US $250 per teu on September 15.

The GRI applies to all dry and refrigerated shipments moving from the US to ports in Australia and New Zealand but is non-binding under discussion agreement principles.

Source: Lloyd’s List DCN