UNBOXED April 2024
As we enter into the second quarter, things have settled down post Lunar year and the summer season in the southern hemisphere.
It has been a difficult start to the year in terms of logistics. Global trade has been held back by disruptions at two critical shipping routes, with attacks on vessels in the Red Sea area reducing traffic through the Suez Canal and diverting ships around the Cape of Good Hope, as well as a drought at the Panama Canal which has forced authorities to impose restrictions that have substantially reduced daily ship crossings since last October.
In addition to this, some concerns have been raised of a "ripple effect" on global supply chains after a container ship crashed into a bridge in the US city of Baltimore. The ship, named the Dali, hit a support column of the Francis Scott Key Bridge, which spans the entrance to the Port of Baltimore, causing it to collapse. Baltimore is the busiest US port for car shipments, and also the largest US port by volume for handling farm and construction machinery. It is unknown the full scale of the impact this may cause, however US Secretary of Transportation Pete Buttigieg said at a briefing there was "no question that this will be a major and protracted impact to supply chains" but that "It's too soon to offer estimates on what it will take to clear the channel and reopen the port,".
On a brighter note, with New Zealand's free trade agreement with the European Union entering into force on 1 May 2024, the outlook for New Zealand exporters has significantly improved with better access into the EU market. With tariff eliminations and duty-free quotas, the FTA will create the conditions for New Zealand trade to grow in areas where it has previously been significantly constrained and will provide greater certainty and competitiveness for New Zealand exporters in the EU market.
Heading into the second quarter, global shipping is usually entering a more quiet period, however now is the perfect time to start considering preparation for the peak season starting in July. High demand and increased prices are expected as the northern hemisphere enters its peak summer period, which will then roll into the busy holiday season as New Zealand enters summer and the delays over the annual Christmas holidays into the New Year. With the delays caused globally, it is important to consider the extended shipping times (especially via sea) and order accordingly to ensure your DSH goods arrive when expected.
AIR
Australia
Consols are moving as booked with capacity available on most carriers.
Asia
Capacity available on most carriers to Asia.
North America
Capacity issues on all carriers with larger shipments likely taking longer.
UK and EU
Capacity available on most carriers to the UK and EU via the Middle East. There are now capacity issues via the USA.
Export Cargo Terminals
Export terminals are operating as normal.
SEA
Australia
Australia is still having some delays at the ports after the strikes – Brisbane up to 3 days, Sydney 2-3 days. Minimal delays at Fremantle and Melbourne.
Asia
Limited waiting time at Busan and Singapore ports due to vessel bunching.
Space remains tight on some services to Asia.
North America
On the 26th of March the vessel ‘Dali’ collided with the Francis Scott Key Bridge in Baltimore, resulting in the collapse of the bridge. This critical incident has cut off vessel access to one of the United States’ largest ports for international cargo. This incident will have an impact on imports and exports between New Zealand and the USA and likely Canada, so please expect delays, particularly into and out of the East Coast USA.
South America
Based on current and projected water levels in Gatun Lake, the Panama Canal Authority (ACP) has needed to make reductions to the amount and weight of vessels that can pass through the canal. Vessels will now use a “land bridge” that utilizes rail to transport cargo across the 80km of Panama to the other side. There has congestion between Balboa and Manzanillo, resulting in delays in onward transport.
UK and EU
Ongoing attacks on commercial vessels in the Red Sea has made all container carriers avoid the Suez Canal until further notice. There will be delays of approximately 2-3 weeks and extra costs as shipping lines re-route via Cape of Good Hope.
DSH LEAD TIMES
Hoppers
Lead time for both steel and polyethylene hoppers currently are between 5-6 weeks excluding shipping from confirmation of order.
Covers
Lead time for dust filter covers are approximately 3.5 weeks.
Spare Parts
We have stock available immediately for smaller orders, larger orders (especially for springs) may take 3-4 weeks.