News Archives

Fracht Australia Logistics News - November 2024

29/10/2024


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"Tell me and I forget, Teach me and I remember, Involve me and I learn."
- Benjamin Franklin

AROUND THE WORLD 

  • KENYAN FLOWER EXPORTERS URGE AIRLINES TO ADD CAPACITY, having warned that the rate and capacity levels in air cargo are at “critical” levels for farmers. In the first week of October, according to Rotate’s capacity database, airfreight capacity out of Africa into Europe fell 8%, year-on-year, while out of Nairobi, capacity was down nearly 12%. And rates have risen sharply. 
  • FALLOUT FROM HURRICANES A GREATER CONCERN THAN STRIKES. There are growing concerns in the Logistics Industry over the wave of storms battering the US States, as fears of long-lasting fallout from port strikes recede. It appears that the fallout from the strike has been negligible – in part thanks to supply chain operators thinking ahead and front-loading goods in and out of the ports, however the industry leaders expressed more concern over the impact of the current hurricane season. When Hurricane Helene made landfall across Florida and Georgia in late September, there were port closures and delays at airports. This was followed by Hurricane Milton – said to be the one of the most powerful for almost a century – which left behind floods, storm surges and violent winds across the ‘Sunshine State’, leaving more than three million homes and businesses without power.
  • NEW BERTHS AT LONDON GATEWAY WILL BE BUILT. Dubai-headquartered terminal operator DP World has confirmed it is pressing ahead with a £1bn ($1.3bn) plan to develop the fifth and sixth berths at its London Gateway facility.A schedule for the project has yet to be drawn up, but the operator said the expansion would “make it Britain’s largest container port within five years”. The construction of berths five and six has always been part of the long-term London Gateway masterplan; by the end of the decade the port’s quayside will stretch more than 2.5km and be able to simultaneously handle six ultra-large container vessels.
  • THE EUROPEAN UNION’S IMPORT CONTROL SYSTEM 2 / RELEASE 3 will come into effect next month, with ANL / CMA CGM advising that following approval from customs authorities ICS2 will ‘go live’ for the group on 13 November. To comply with the regulation, the lines say, the Shipping Instructions (SI) must be filed with them including data mandatory for ICS2 within the SI cut off period to avoid container roll overs. ICS2 regulations apply to all deep sea and short sea cargo that is discharging or transhipping or transiting the 27 member states of EU, Northern Ireland, Norway or Switzerland as well as to cargo which will remain on board (FROB – Freight Remaining On Board). This reinforces customs risk management and improves security and safety risk analysis for goods entering or transiting the European Union. 

November-2024-EU-Container

 SEAFREIGHT NEWS 

  • BIG, BIGGER, BIGGEST! WALLENIUS WILHELMSEN has decided to increase the size of four of its highly-advanced Shaper class PCTCs (Pure Car and Truck Carrier) currently on order with Jinling Shipyard (Jiangsu) to become the largest such ships ever to sail. WW has 12 Shapers on order, with further options, and will boost the capacity of four from 9,300 CEU (Car Equivalent Unit) to approximately 11,700 CEU in what it says will play an important role in reducing the cost of the company’s net-zero end-to-end ambition. The vessels will be the ocean element of the integrated net-zero service Wallenius Wilhelmsen will offer customers from 2027.
  • FLEET EXPANSION FOR SPLIETHOFF. Multi-Purpose specialist Spliethoff has placed an order with China’s Wuhu Shipyard for a new series of eight vessels, with an option for two additional vessels, delivering from the first quarter of 2028. The L-type vessels are specially designed for the transportation of various dry cargo types, including paper products, bulk cargo, project cargo and containers. These Finnish / Swedish 1A Ice-Classed vessels will measure 203.25 m in length, 28.25 m in width, and will have a maximum draft of 10.5 m. They will have a total capacity of about 33,700 m3 and a deadweight of 28,600 mt, making them the largest vessels in the Spliethoff fleet.
  • MEDITERRANEAN SHIPPING CO (MSC) WILL REVIVE THE KOALA BRAND for a new weekly service between China and Western Australia, via Indonesia. The new route will cover Shanghai and Shekou in China before calling Jakarta and then Fremantle. The revived service will turn in 4 weeks and will deploy 4 ships of 1,500 to 2,500 TEU starting with the 1,550 TEU MSC QINGDAO at Shanghai on 30 October.
  • CONTAINER LINES ENJOYED A BUOYANT FIRST HALF of 2024 in almost all Australasian trades, according to London-based Container Trade Statistics. Total trade grew by a noteworthy 12.7% year-on-year, to 3.5 million TEU (Twenty Foot Equivalent Unit), with imports rising 14.7% and exports 11.5%, expanding even further the gap between the two over the first six months.
  • GEMINI CORPORATION, the entity formed by Maersk and Hapag-Lloyd to unify their operations on East-West Routes from early 2025, has decided to launch its suite of services via the Cape of Good Hope. “After thorough consideration, and given the continued safety concerns in the Red Sea, Hapag-Lloyd AG and Maersk A/S, confirm that they expect to phase in their Cape of Good Hope network for the commencement of the Gemini Cooperation on 1 February 2025. “As the situation remains highly dynamic, Hapag-Lloyd and Maersk will return to the Red Sea when it is safe to do so.” Maersk announced. 

AIRFREIGHT NEWS 

  • QANTAS FREIGHT JOINS WESTERN SYDNEY AIRPORT CARGO PRECINCT. Qantas Group and Western Sydney International Airport (WSI) have strengthened their partnership, with Qantas Freight the first freight airline to operate at its new 24-hour cargo precinct. The precinct is expected to increase Sydney’s air cargo capacity by up to 33% upon opening, and provide access to growing freight and logistics centres at Kemps Creek and Aerotropolis. The hub will reportedly be capable of facilitating Qantas’ transformed freighter fleet of upgraded Airbus A321 and A330 aircraft.
  • EMIRATES TO EXPAND FREIGHTER FLEET with order for more 777Fs. The Dubai-headquartered airline has placed a firm order for five 777Fs, on top of its existing order for nine of the model. The aircraft will be used to expand its freighter fleet to 21 777Fs from its current 11 units when they are all delivered by the end of 2026. Emirates had also previously announced plans to convert 10 777-300ER passenger aircraft into freighters and said it remains “invested” in the plan, although no update was given to the timeline for re-configuration.
  • CARGO SOARS AT SINGAPORE. Singapore Changi Airport handled 512,000 tons of airfreight in the third quarter of 2024 (July to September), up 13.5% on the same period last year. Growth was seen across all cargo flows – exports, imports and transhipments, boosted by big improvements on the China and US trade lanes, said the airport authority. Changi’s top five air cargo markets in the third quarter of 2023 were Australia, China, Hong Kong, India and the US. 

November-2024-Changi-Airport

OCEANIA PORTS 

  • NEW PILBARA PORT FACILITY TO MOVE SALT. The third biggest salt project in the world has begun operations in the Pilbara and will export through a new port facility and 2.4 kilometre long jetty at Mardie. Managed by the Pilbara Ports Authority, BCI Minerals Mardie Salt and Potash Project will be Australia’s biggest solar salt project. BCI Minerals will use transhipment services from its jetty which it said enables direct, efficient, and cost-effective access to key markets by loading ocean-going vessels up to Newcastlemax size. The first export of high-quality industrial salt is expected to occur in 2027.
  • SHORE POWER PROJECT TO BEGIN AT WHITE BAY CRUISE TERMINAL.       The New South Wales state government has awarded a $20 million dollar contract to begin the Shore Powerproject at Sydney’s White Bay Cruise Terminal. The Australian-first project will see the construction of wharf-side infrastructure to supply cruise ships at the White Bay terminal with electricity via a landside charger, meaning vessels won’t have to keep their engines running while berthed. The landmark project is aimed at creating a cleaner cruise industry, with Shore Power estimated to reduce emissions associated with the White Bay precinct by over 4,000 tons annually.
  • TOP SCORE FOR PORT OF MELBOURNE. The Port of Melbourne has scored a perfect 100 points in the 2024 Global Real Estate Sustainability Benchmark (GRESB) Infrastructure Asset Assessment. The score gives it the number one ranking among Australian and international ports for the second year running. The Port maintained its 5-star GRESB rating, and this year scored the maximum possible 100 points, an increase from 99 in 2023.
  • PORT OF TAURANGA REPORTS FIRST 2025 RESULTS. The north island port, New Zealand’s largest, reported increased cargo volumes for 1Q-25, according to the Port of Tauranga company. In the three months to 30 September this year, total trade reportedly increased by 7.6% to 6.2 million tons in volume compared to the same period last year. Container volumes also increased by 17% to 292,860 TEU. 

CUSTOMER SERVICE 

If you would like further information about any of the above items, please contact one of our friendly Fracht Team members at fracht@frachtsyd.com.au

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