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Topic of the week:
There has been a lot happening this week, from fears of port challenges at Felixstowe to the possibility of German port strikes and the continued rise in sea freight rates.
The Port of Felixstowe is implementing a new booking system, which they have described as an upgrade, and will be replacing the existing vehicle booking system that has been used for twenty years, with a container booking system. Hauliers are now concerned that they could be facing millions in additional costs due to the new CBS changing chargeable periods. The Road Haulage Association, Tim Wray, has said “the previous system allowed amendments right up to the expiry of the booking time. The new plans would change this. Amendments within 12 hours of the booking for import containers would be liable for a fine.” Before the new CBS goes live in October a 12 week trial has been launched and seems to have lessened concerns however Mr. Wray added, “in many cases, costs will be unavoidable.” The new CBS system aims to improve booking efficiency as well as proved a better haulier experience with added features that the current system cannot provide.
German port workers have been issued a final offer from the Central Association of German Seaport Operators (ZDS), in hopes of reaching an agreement and avoiding port strikes that could extend into peak season. The offer has been extended to the trade union ver.di with two different contract variations. Ver.di are currently conducting a member survey to go over the two offers. Although ver.di has issued a statement saying that the offers from the ZDS “fell short of expectations”, they did address some key issues, however if ver.di decline these offers port strikes during the traditional peak season could heavily disrupt German exports. After receiving feedback from members, ver.di will voice their next steps on 22-23 August.
Container rates rising has meant that peak season has arrived early with importers getting their Christmas cargo in May. The demand for space and reliable scheduling has resulted in port disruption and overcrowding on top of equipment shortages, rising rates and additional surcharges. The actions of carriers and shippers could, however, change the tides.
Sea:
- Over the last two weeks China/East Asia to North America West Coast spot rates have increased by 15% from $7,052 /FEU to $8,101 /FEU according to Freightos data.
- China/East Asia to North America East Coast spot rates have risen over the last two weeks, increasing by 17% to $8,253 /FEU.
- Global container spot prices have risen over the last two weeks, and are now sitting at $5,181 /FEU, a 15% increase over the last two weeks and a 249% increase from spot rates this time in 2023 according to the Freightos Baltic Index (FBX)
Air:
- Global Air Freight spot rates currently sit at $2.30, as rates continue to fluctuate according to the Freightos Air Freight Index (FAX)
- Europe to Northern America spot rates currently sit at $1.61 (100-3000kg), says FAX, decreasing by 1.8 %
- Europe to Asia, Greater China spot rates currently sit at $1.27 (100-3000kg), says FAX, decreasing by 0.7%
That’s all for this week’s update…
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