Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have prepared the following report using practical efforts to ensure that the commentaries are accurate, generally using source intelligence and publicly available data.

Edition 10, 2024 - SNAPSHOT

Rates / Services

Drewry's World Container Index (WCI) increased in the past month by 3.7% to $3,331 per 40-foot container as of 28 November 2024, however the past week has seen a slight reduction of 2%.
Rate levels are up 141% when compared with the same period last year.
The average YTD composite index is $3,966 per feu, which is $1,116 higher than the 10-year average of $2,850 (inflated by the exceptional 2020-22 Covid period).
Contrary to the WCI, Drewry's Intra-Asia Container Index (IACI) climbed 45% in the first two weeks of November, from $573 per 40ft container in the period 16-30 October to $829 in the period 1-15 November, amid the pre-Christmas cargo rush. This upward trend is expected to continue in the next fortnight of November due to tight space, traditional shipping peak season, blank sailings and other factors.

Source: Drewry

ZIM announce a Rate Restoration effective for all shipments from North East Asia to Australia of USD$450/TEU effective 20 November 2024.
ANL announce a General Rate Increase effective for all shipments North East Asia to Australia East Coast of USD$300/TEU effective 1 December 2024.
ANL announce a General Rate Increase effective for all shipments North East Asia to Australia and New Zealand of USD$500/TEU effective 15 December 2024.
ANL announce Hazardous Cargo Surcharge will increase by 25 dollars (AUD/NZD/USD) effective from 1st December 2024. For US trade, rate revision will be effective from 15th December 2024.
OOCL announce will increase Documentation Fee (Import & Export) to AUD$150 per bill of lading effective 1 January 2025. An increase of 15.4%. Electronic Documentation Fee remains unchanged.
MSC on 28 November announced changes to their Australian Import Detention tariff effective (sailing date from POL) 1 January 2025:

Shipping Line Financial Results

Margins surge to early 2021 levels, with the latest financial results revealing a stunning resurgence for leading shipping lines, with average operating margins (EBIT) among the nine largest companies soaring to 38.4% in the third quarter—matching the highs last seen in early 2021.
Carriers focusing heavily on the Transpacific spot market saw particularly impressive growth. Taiwan's Evergreen Marine achieved extraordinary results, with operating margins topping 50.5%. The company more than doubled its year-on-year revenues and reported an eightfold increase in quarterly operating profits, reaching TWD 77.2 billion (USD 2.4 billion).
South Korea's HMM posted the second-highest margin at 46.0%, a remarkable leap from just 1.2% a year earlier, underscoring the stark contrast between pre- and post-Red Sea crisis conditions. Despite a small decline in liftings, HMM's success was driven by a 116% year-on-year increase in average rates per TEU—a rise exceeded only by ZIM.
These results highlight a market dynamic where rate increases, rather than volume growth, are driving profitability, setting the stage for potential shifts in carrier strategies and industry competition moving forward.
Maersk's net profit surged by approximately 485% in Q3, reaching $3.05 billion, while revenue increased by about 30% to $15.76 billion, driven by a 54% rise in freight rates due to disruptions in the Red Sea shipping lanes. In contrast, CMA CGM's net profit in Q3 rose even steeper by around 603% to $2.73 billion, with revenue climbing 38.5% to $15.8 billion, bolstered by a 5.5% increase in shipping volumes amid strong global demand. While both companies experienced significant financial growth, CMA CGM achieved a higher percentage increase in net profit and revenue compared to Maersk during this period.

Supply / Demand

Global Container Trends
September data released in November by Container Trades Statistics (CTS) provides insight into container volumes for the first three quarters of 2024. The year-to-date has achieved record-breaking highs, with August volumes reaching the highest level ever recorded. However, September saw a 5.9% month-on-month (MoM) decrease, marking the first significant decline of the year, though year-on-year (YoY) volumes remain over 2% higher.

Import Highlights:
Far East: Continues to drive strong North American import volumes.
Australasia & Oceania: Resilient with nearly 9% YoY growth, despite a dip from August peaks.
Indian Subcontinent & Middle East: Critical in maintaining import stability across trade routes.
Export Highlights:
Sub-Saharan Africa: Achieved an 8.9% YoY increase in the first nine months.
Far East, Australasia, and Oceania: Maintained strong export stability.
Europe: Recorded modest export growth at 2.2% YoY.

Source: Drewry / CTS

ABF cargo reporting data shows Sea Cargo reporting for October 2024 was up a remarkable 117% YoY (substantial growth in 'Other' origins), and Air Cargo up by 48% YoY.

Geopolitical Issues

US Election Fallout - Since the election in early November, US President-elect Donald Trump has continued to show a clear intention to implement protectionist trade policies, with significant implications for international trade dynamics and economic relations:

China, Mexico & Canada singled out: US President Trump has declared plans to impose substantial tariffs, including a 25% tariff on imports from Canada and Mexico, and a 60% tariff on Chinese goods. Trump using the measures to address issues such as illegal immigration, drug trafficking, and trade imbalances.
BRICS Nations Tariff Threat: The President-elect has threatened 100% tariffs on BRICS countries—Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the UAE—if they attempt to move away from the US dollar in international trade. This response follows discussions within BRICS about reducing reliance on the dollar.
Engagements with Trade Partners: In response to the proposed tariffs, Canadian Prime Minister Justin Trudeau met with US President-elect Trump at Mar-a-Lago to discuss and potentially mitigate the impact on US-Canada trade relations.
Market Reactions: The announcements have led to volatility in financial markets, with sectors like automotive experiencing declines due to concerns over increased costs and potential trade conflicts.
Policy Objectives: The administration's trade policy emphasizes protecting American industries, reducing trade deficits, and addressing national security concerns related to supply chains and economic dependencies.

Baltic Sea

Chinese bulk carrier Yi Peng 3 is under investigation for allegedly damaging two undersea data cables in the Baltic Sea by dragging its anchor over a distance of more than 100 miles. The incidents, which occurred between 17 and 18 November 2024, disrupted cables connecting Finland to Germany and Sweden to Lithuania. Swedish authorities have requested China's cooperation and asked the vessel to move into Swedish waters for inspection, while it remains anchored in the Kattegat Strait under Danish naval monitoring. The ongoing investigation, with suspicions of deliberate sabotage linked to Russian intelligence, could heighten tensions in the region and potentially lead to stricter regulations or inspections for cargo vessels, causing delays and operational disruptions in the Baltic shipping routes.

Red Sea

Israel and Hezbollah have reached a ceasefire, limited to Lebanon, with US mediation. However, this agreement does not address the Houthi demands regarding Gaza, meaning the threat to merchant shipping in the Red Sea and Gulf of Aden persists.
Houthi attacks in the Red Sea have been consistent in November compared to October, with the UK Maritime Trade Operations (UKMTO) reporting 5 incidences. Since November 2023, there have now been 110 reported incidents, with over 90 of these being reported attacks on merchant and military vessels.
Operators running the risk - Trade between India, the Middle East, and the Red Sea is growing as regional shipping companies add more capacity, often partnering with smaller cargo operators (NVOCCs) to ensure steady shipments. While big shipping lines are still taking longer routes around the Cape of Good Hope, new players like CULines, CStar, and UGL have launched weekly services connecting Indian ports like Nhava Sheva and Mundra to key Red Sea destinations, despite security and insurance challenges. Other companies, like Singapore's SeaLead and ONE, and Saudi Arabia's Folk Maritime, have also started services to tap into this profitable trade. Many operators avoid the Suez Canal to cut costs and manage risks, focusing instead on building strong partnerships and efficient routes. These developments highlight increasing competition and opportunities in the region's shipping market.

Panama Canal

Panama Canal Authority (ACP) is once again considering a land bridge to move cargo across, targeting ultra-large container vessels (ULCVs) that exceed the canal's capacity. While this could boost annual throughput by 5 million containers by 2045 and act as a contingency for drought-induced restrictions, the concept faces scepticism from carriers due to its high costs, adding approximately USD$2,000 per container.
Despite limited support, industry executives argue the economics favour ships, citing inefficiencies in loading and unloading for land transport. Meanwhile, Mexico's corridor rail project is also vying to address regional cargo transit needs.
In parallel, ACP is still advancing plans for a new reservoir and dam, estimated at $1.6 billion, to mitigate future droughts and increase canal capacity by up to 13 daily transits, ensuring long-term operational resilience.

Shipping Competition

PIL Australia has announced an intermodal service at Yennora NSW, designed to streamline cargo movement. PIL offering a daily rail service connecting Yennora to all Port Botany terminals, offering faster turnaround times, reduced emissions, and added convenience with Through Bills of Lading. PIL point to key features include free storage days for imports and exports and the flexibility to handle various cargo types, including DG and refrigerated containers. This service enhances accessibility for businesses by bringing cargo closer to key catchment areas.
Gemini Cooperation - Hapag-Lloyd will begin accepting bookings for its services with Maersk from 3 December 2024, ahead of the alliance's official launch in February 2025. The Gemini Cooperation introduces a hub-and-spoke system aimed at improving schedule reliability and addressing capacity challenges. The Gemini Cooperation has also designated DP World's London Gateway as its UK hub, sidelining Hutchison Ports' Felixstowe from the network. This shift is a strategic move toward a hub-and-spoke model, favouring London Gateway's modern infrastructure and double-track rail connections over Felixstowe's older single-track system. While DP World stands to gain significantly from this decision, Hutchison Ports faces potential volume losses at Felixstowe. Gemini's approach aims to prioritise reliability and value-added services, but it will is expected to face competition from simpler, direct-call networks operated by carriers like Cosco and MSC.
Zim is under investigation by the Federal Maritime Commission (FMC) following allegations by NVOCC Baylink of breaching the US Shipping Act. The case involves a Baylink container allegedly collected by Koyote Trucking in 2021 without authorisation, leading to a delay in its return until 2023 and accruing $137,000 in detention fees. Baylink claims Zim refused to provide key documentation identifying the trucker and failed to inform Baylink of its liability for the detention charges, asserting that Zim's mishandling of the container facilitated the issue.
Global Container Fleet is poised for a 5.7% growth in capacity, with an increase of 1.7 million TEU by February next year—rising from the current 29.9 million TEU to nearly 31.6 million TEU. MSC leads this expansion, contributing 24% of the orderbook, followed by CMA-CGM (10%), and Maersk, COSCO, and Evergreen (each at 8%). On an alliance level, Ocean Alliance solidifies its dominance, holding the largest global share at 29%. This capacity boost highlights the shifting dynamics of container shipping and the increasing strategic role of alliances.

Mergers/Acquisitions

Aurizon acquire Flinders Logistics - Aurizon has received ACCC approval for its acquisition of Flinders Logistics, with the deal set to finalise on 6 December 2024. This acquisition strengthens Aurizon's rail and port presence in South Australia, integrating Flinders Logistics' operations at Port Adelaide and Port Pirie, which employ around 100 staff. To address ACCC competition concerns, the transaction excludes the underlease for Berth 29, ensuring rival rail haulage providers can independently load and unload trains. Flinders Port Holdings will retain control of Berth 29 as a common-user asset, promoting competition. The acquisition aims to enhance trade growth and operational efficiency through Aurizon's rail network and logistics capabilities combined with Flinders Ports' expertise. Key commodities handled include mineral sands, iron ore, and copper concentrates.
Kuehne+Nagel Acquires a Majority Stake in IMC Logistics - K&N have acquired a majority stake in one of the USA's leading marine drayage providers in IMC Logistics. The move strengthening K&N's intermodal sea logistics offering in the US.
Ocean Network Express (ONE) has acquired a minority stake in New Priok Container Terminal 1 (NPCT1) in Jakarta, continuing its strategic expansion into terminal operations. Built in 2016, NPCT1 has an annual capacity of 1.5 million TEU and is co-owned by Pelindo II, Mitsui & Co, and PSA International. This acquisition aligns with ONE's recent investments in key global terminals, including stakes in US West Coast facilities and Europe's Rotterdam World Gateway.

Schedule Reliability

Schedule reliability has improved by 0.9% month-on-month up to 51.5%, staying in the YTD trend at the 50-55% mark. On a year-on-year basis, schedule reliability was 12.9% lower than the same period last year (Oct 2023: 64.4%).
Average delay for LATE vessel arrivals has decreased by 0.14days MoM to 5.72 days. Historically this figure is only surpassed by the pandemic highs of 2021-2022. At the same period last year, the figure was 1.14 days lower at 4.58 days.
Maersk was the most reliable top-13 carrier in September 2024 with an improved schedule reliability of 57.9%, followed by MSC with 52%. All other carriers were below the 50% mark.
Maersk & Hapag Lloyd have started to release their schedules for their Gemini Cooperation for Feb 2025, with bookings open from early December in the case of Hapag Lloyd.

SOURCE: SEA-INTELLIGENCE

Cancellations - Blank sailings increasing

Global - 70 sailings have been cancelled between weeks 48 (25 Nov-1 Dec) and 52 (23 Dec-29 Dec), out of a total of 693 scheduled sailings, representing a 10% cancellation rate.
During this period, 50% of the blank sailings will occur on the Transpacific Eastbound, 27% on the Transatlantic Westbound and Asia-North Europe and Med at 23%.
THE Alliance, OCEAN Alliance and 2M have each announced 14 cancellations. During the same period, 28 blank sailings have been implemented by non-Alliance services.
Australia - Based on November schedule data ex China to Australia, 6 cancelled sailing has been announced at time of publishing, out of a total of 70 scheduled sailings, representing an 8.5% cancellation rate.

SOURCE: DREWRY

Orderbook / Scrapping

Hapag-Lloyd has ordered 24 new container ships with a combined capacity of 312,000 TEU and an investment of around USD 4 billion. Twelve 16,800 TEU vessels will expand existing services, while twelve 9,200 TEU ships will replace older units. Featuring liquefied gas dual-fuel propulsion, biomethane capability reducing CO2e emissions by up to 95%, and ammonia-readiness, these ships will be delivered between 2027 and 2029. The investment aligns with Hapag-Lloyd's Strategy 2030 to modernise and decarbonise its fleet, targeting a 33% reduction in fleet emissions by 2030 and net-zero operations by 2045, enhancing its competitive position in global shipping.
Idle Fleet Update - The global commercially idle container ship fleet experienced a slight reduction in the latter half of November, reflecting continued resilience in market demand despite the typically slack season for liner shipping. The total idle fleet capacity dropped by 46,000 TEU, with data from Alphaliner showing only 58 ships (168,314 TEU) as commercially idle—just 0.5% of the world's 30mTEU liner fleet. Notably, large vessels over 18,000 TEU recorded zero idled units, with only two ships in the 12,500–18,000 TEU segment listed as unemployed. These trends affirm that the global container ship sector remains effectively 'fully employed. The idle fleet is maintaining historically low levels, underscoring strong demand for tonnage.

Repair Yard Activity - Carriers and shipowners continued to utilise repair yards for maintenance, retrofits, and upgrades, keeping capacity tied up in shipyards relatively stable. The total capacity undergoing repairs saw a modest decline of 8,000 TEU over the month, with 162 vessels (727,145 TEU) detected in drydock. This represents 2.4% of the global fleet, a reduction compared to the same period in 2023 (3.0%) and 2022 (3.1%).
Latest orderbook volumes

Sustainability

Hapag-Lloyd secure Green Methanol - Hapag Lloyd have partnered with Goldwind, a Beijing-based clean energy company, to secure 250,000 tonnes of green methanol annually, reducing greenhouse gas emissions by at least 70% compared to conventional fuels. This agreement aligns with Hapag-Lloyd's Strategy 2030 and its commitment to achieving net-zero fleet operations by 2045, contributing to its goal of reducing fleet emissions by one-third by 2030. Goldwind will build a green methanol plant in Hinggan League, China, with initial volumes expected by 2026. This collaboration supports Hapag-Lloyd's multi-fuel strategy and ongoing investments in low-emission technologies, including retrofitting ships for methanol use and ordering LNG-fueled vessels.
Changes to EU Emissions Trading System (EU ETS) from 1 Jan 2025 - From 2025, the EU Emissions Trading System (EU ETS) will expand to cover 70% of emissions, a significant increase from the current 40% in 2024. This regulatory adjustment will directly affect operational cost structures across affected trade routes with major carriers. This change is projected to lead to an estimated 75% increase in EU ETS surcharge amounts, not accounting for potential fluctuations in CO2 prices which could further influence final surcharge levels. Members should prepare for these adjustments by engaging their carriers to ensure they account for the revised framework.
Maersk has completed its first retrofit of a container ship for dual-fuel methanol capability, converting the Maersk Halifax to support its net-zero emissions goal. The 88-day project in a Chinese shipyard involved cutting the vessel in half to add a 15-metre extension for extra fuel tanks, increasing its capacity from 15,000 to 15,690 TEUs. The ship returned to trans-Pacific service in November, testing the feasibility of retrofitting existing ships to accelerate fleet decarbonisation.
Global Maritime Forum Calls for Government Support on Green Corridors - The Global Maritime Forum warns that green shipping corridors are at risk without urgent government action to bridge the cost gap for zero-emission fuels. While 18 new initiatives were launched in 2024—a 40% increase from 2023—progress faces challenges due to high fuel costs and limited support. Six advanced corridors require over two million tonnes of hydrogen-based fuel annually by 2030, threatening the industry's 5% zero-emission fuel target critical for net-zero goals by 2050. The Forum urges governments to subsidise costs, develop innovative agreements, and focus on global policy and finance solutions to accelerate decarbonisation.

Terminal and Port Update -

Increases to Landside Tariffs - On 1 November, Patrick, VICT, and DP World issued 60-day notices advising of landside tariff increases set to take effect on 1 January 2025. While these notices comply with the Victorian Government's Voluntary Pricing Protocol (VPP)—ensuring advance notice of price changes, detailed explanations for increases, and consistent timing for adjustments—both Patrick and DP World also announced similar tariff hikes at their terminals outside Victoria. FTA/APSA are advocating for stronger regulation to address rising landside tariffs, calling for a Mandatory Protocol as recommended by the Productivity Commission. This would prevent unjustified price increases and add regulatory oversight. Exporters and importers have paid over $1.36 billion in Terminal Access Charges in the past three years, while empty container parks impose additional uncontested fees on transport operators. Combined with shipping line-imposed Terminal Handling Charges, these costs burden Australian traders and communities.

Patrick Increases - increases see Terminal Access Charges (TACs) up 9.5% (Imports SYD/MEL), 3.5% (Exports SYD/MEL), 21.01% (Imports BNE), 7.02% (Exports SYD/MEL), 5% (Imports FRE), 5% (Exports FRE), and the VBS and related ancillary fees up anywhere from 0% to 7.77%.

Patrick justification: Patrick is continuing with a significant investment program, with in excess of $350 million invested across the past five years and a further $80 million committed in the year ahead ($430 million in total). This will support continued efficient landside service levels for our landside customers and Australian shippers.
Key landside investment includes:
Completion of Port Botany Rail Terminal Development (Patrick funding contribution), along with upgrades to the landside interface
Fremantle Terminal Redevelopment, plus additional commitments for further capital investment in 2024 and 2025
Finalisation of Melbourne Rail Terminal Development (Patrick funding contribution)
Finalisation of Automated Truck Handling Project in Brisbane and Sydney
Key equipment upgrades including 10 Hybrid Straddle Carriers commissioned in Melbourne in 2024 and 9 Battery Electric Internal Transfer Vehicles (ITVs) commissioned in Fremantle in 2024
Pavement works and capacity upgrades across all terminals
Gate system and Terminal Operating IT System upgrades
The Landside charge recovers a portion of the costs that relate to:

capital investments and commitments made to infrastructure that supports our landside operations
maintenance and operational costs associated with providing our landside operations and
property and property related costs

DP World Increases - Terminal Access Charges (TACs) up 5% in Fremantle, and just below 10% elsewhere. All other VBS and ancillary charges up approx. 10% to 25%.

DP World justification: $900 million investment plan over the next three years to enhance efficiency and meet rising landside demand. Key cost drivers mentioned also include a 7% workforce cost increase, 6%+ rises in electricity and security, and a 21% hike in insurance.

VICT Increases - Terminal Access Charge (TAC - known in the VICT tariff as an Infrastructure Charge) up 4.18%, and the VBS-related and other ancillaries up anywhere from 0% to 20%.

VICT Justification: Capital investment over last 10 years of over $935m. VICT Capital investment for the next 12-18 months will include the addition of 1 new STS Crane, 4 Hybrid Auto Straddle Carriers and 1 new reach stacker. Furthermore, we will embark on maintenance and resurfacing works, IT system upgrades and new AI driven IT yard optimisation systems. Operational Costs are expected to continue to increase at rates above CPI due to ongoing inflationary pressure, and we expect our labour costs to significantly increase for our EA workforce. The revised charges have been a direct result of increasing costs and are a direct pass through to our customers to recover these on-going costs.

Patrick terminals

Brisbane: Delays approx. 0 - 0.5 day
Fremantle: Delays approx. 1 - 2 days
Sydney: Delays approx. 1 - 2 days
Melbourne: Delays approx. 1 - 2 days

DP World Terminals

Brisbane: Delays approx. 3 - 4 days
Fremantle: Delays approx. 2 - 3 days
Sydney: Delays approx. 1 - 2 days
Melbourne: Delays approx. 3 - 4 days

VICT

Melbourne: Delays approx. 0.5 day

VICT are now accredited to handle 14.4 Rural Tailgate Inspections within their terminal.

AAT

Brisbane: Vessel bunching evident, but working with minimal delays.
Port Kembla: Berth congestion expected up until 8 December..
Melbourne: Working with minimal delays.

MIRRAT

Melbourne: Working with minimal delays.

New Zealand

Auckland: minimal delays approx. 1 - 2 days
Tauranga: minimal delays approx. 1 - 2 days
Napier: minimal delays approx. 1 - 2 days
Lyttleton: minimal delays approx. 1 - 2 days

Port of Melbourne Protesters disrupted operations at Port of Melbourne, with pro-Palestine protesters on 22 November causing significant disruption, targeting trucks and port infrastructure. Protesters reportedly vandalised traffic lights, graffitied shipping containers, set rubbish alight, and sabotaged trucks by slashing tyres and cutting air lines, rendering vehicles immobile and posing safety risks.
Former Ports of Auckland CEO Guilty in Worker Safety Case
Ex-CEO Tony Gibson was found guilty under New Zealand's Health and Safety at Work Act for failing to ensure worker safety, following the 2020 death of a dockworker. This landmark case marked the first time a senior executive has been held accountable for a workplace fatality.
The Maritime Union praised the verdict, highlighting Gibson's negligence during a tenure marked by safety concerns and three deaths in three years. Gibson resigned in 2021, and Ports of Auckland, previously fined NZ$561,000, has since improved safety measures under new leadership.
Port of Long Beach handled a record 987,191 TEUs in October, a 30.7% year-over-year increase and a new record, driven by cargo diversions from labour-disrupted East and Gulf Coast ports and businesses rushing to beat potential tariff hikes. Imports rose 34.2% to 487,563 TEUs, exports grew 25.3% to 112,845 TEUs, and empty containers increased 28.1% to 386,782 TEUs. The unresolved dispute and continued strong consumer demand suggest further elevated volumes into 2025. Together with the Port of Los Angeles, which also broke records, the Southern California ports account for a third of U.S. container imports.
WA State Government invests $273 million to develop a container port at Kwinana, slated for completion by the late 2030s. This major project addresses Fremantle Port's capacity limits, averts potential $5 billion annual economic losses from trade constraints, and boosts sustainability with enhanced rail-based freight.
Darwin Port - The 99-year lease to Chinese-owned company Landbridge is under scrutiny after a PwC audit revealed "material uncertainty" about the company's ability to continue as a going concern. Leased in 2015 by the Northern Territory government for $506 million, the port has been a focal point of national security concerns. Landbridge reported a net loss of over $34 million for the 2023-24 financial year and is working on an organisational restructure to address its financial challenges. While the company insists the lease terms will be upheld, the NT government is reviewing its options, with Treasurer Bill Yan requesting further details on Landbridge's stabilisation efforts. Federal Infrastructure Minister Catherine King acknowledged the situation, highlighting the importance of ongoing updates as the matter evolves.
Protesters Disrupt Shipping at Port of Newcastle - Climate activist group Rising Tide organised a blockade of Newcastle Harbour on 24 November, disrupting vessel movements at the world's largest coal port. Protesters in kayaks and small watercraft entered the channel, prompting a temporary halt to shipping. NSW Police arrested 170 people for failing to comply with orders to clear the channel.

· Global Port Congestion Hotspots

o Shanghai, Ningbo and Qingdao are still facing severe congestion. Congestion at Shanghai and Ningbo have increased in the past month, with a significant rise in the vessels at anchorage.

o Port Congestion Challenges Linked to Container Ship Upsizing
Container ship upsizing is a significant factor driving global port congestion, tying up 7.8% of the fleet's capacity, according to CMA CGM's Christine Cabau Woehrel. Larger vessels create bottlenecks in container yards rather than at berths, requiring ports to adapt to limited yard space. Collaborative efforts between terminals and shipping lines, alongside new processes for managing ship arrivals and productivity, are essential. Southeast Asia, particularly Singapore, has emerged as a congestion hotspot due to prolonged yard stays and impacts from Red Sea diversions. CMA CGM and partners such as PSA and Shanghai International Port Group are exploring solutions to enhance yard fluidity.

Equipment

Port of Los Angeles is experiencing a significant increase in empty containers, with current levels trending upwards. Combined with the Port of Long Beach, over 120,000 empty containers are estimated to be awaiting evacuation across the complex.
Key shipping routes like Asia-Europe are still facing difficulties due to a lack of 40ft and 20ft containers at major Chinese ports. Shipping Lines are still struggling to reposition empty containers fast enough to meet demand. The deteriorating congestion issues at Shanghai are amplifying the issue.

Enterprise Agreements

Canada Strike Update - The Canadian government intervened to end the lockout at the ports of Vancouver, Montreal, Quebec, and British Columbia. Minister Steven MacKinnon directed the Canada Industrial Relations Board to resume operations and settle collective agreements through binding arbitration. Terminal operators, represented by the Maritime Employers Association (MEA) and the BCMEA, supported the decision, with industry groups highlighting the broader need to prevent supply chain disruptions caused by labour disputes in future.
US East & Gulf Coast Ports - In the US, negotiations between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) have stalled, primarily due to a disagreement over automation. The ILA expressed frustration, asserting that USMX contradicted its initial assurances by proposing semi-automation measures, which the union sees as a direct threat to jobs and an undermining of established work practices. The ILA underscored its achievements in productivity without automation and reiterated its support for modernisation only if it enhances efficiency with workers at the helm. Meanwhile, USMX contended that the ILA's resistance to established technology limits the industry's ability to adapt and support future supply chain demands, emphasising that their aim is to protect and grow jobs through safe and efficient advancements.
Both parties expressed willingness to return to negotiations, though the gap on automation remains significant with the 15 January 2025 deadline looming.
Qube Ports - Qube Ports is still facing extensive industrial action across multiple ports due to stalled enterprise bargaining agreement negotiations with the Maritime Union of Australia (MUA). The union on 25 November has accused Qube of deliberately delaying the bargaining process, aiming to trigger intractable bargaining provisions to avoid genuine negotiations. As a result, the MUA suggest industrial action would commence in ports including Melbourne, Port Kembla, Brisbane, Darwin, and Adelaide, with MUA suggesting that up to ten ports will be affected by Christmas. Workers at Brisbane Port set to strike for seven days from 29 November to 6 December 2024, with operations at Brisbane expected to face significant disruptions including delays of 10 days or more per vessel. Similar action is anticipated at Adelaide, Darwin, and Port Kembla, further affecting port operations across the country. These actions involve various work stoppages and operational bans, significantly disrupting port operations and impacting industries reliant on these ports.
Flinders in Adelaide have commenced bargaining on their next Enterprise Agreement 3 months ahead of schedule. They join AAT and VICT in commencing negotiations :

Global Air Freight

Spot Rate Increase - November 2024 saw a steady rise in air freight rates, driven by strong seasonal demand. Average global rates reached $2.79 per kilogram, the highest recorded this year, with spot rates experiencing significant week-on-week increases. North America led the way with a notable 12% rise, followed by Europe at 8%. Globally, spot rates rose by 4%, while contract rates saw a slight decline, reflecting varying approaches by shippers. On a year-on-year basis, the industry recorded a 10% increase in average rates, with spot rates growing by an impressive 22%. However, not all trade lanes mirrored this trend. For example, the route from China to the USA experienced a modest year-on-year decline, highlighting the complexities of rate dynamics across different regions.
Tonnages - Global air freight tonnages remained stable in November, although regional variations were evident. North America stood out with a 22% year-on-year increase in chargeable weight, largely influenced by the timing of the Thanksgiving holiday, which affected freight flows compared to the previous year. Central and South America also showed positive momentum, with a 3% week-on-week increase, while Africa was the only region to report a decline, down by 3%. These trends underscore the role of regional demand fluctuations and specific events in shaping global tonnage levels.
Market Trends - The air freight market is experiencing a notable shift in capacity, particularly from Transatlantic routes to the Asia-Pacific region. This adjustment has been largely driven by a surge in e-commerce volumes originating from China and Hong Kong, destined for North America and Europe. Over the past year, Transatlantic freighter capacity decreased by 10%, while Asia-Pacific routes saw a 7% increase, supported by growth in both freighter and bellyhold capacity. Moreover, forwarders securing capacity in advance of the peak season has helped to moderate rate fluctuations, contrasting with the patterns observed in previous years. These developments highlight the dynamic nature of the market, shaped by evolving trade flows and strategic capacity management.
Capacity - Air cargo capacity to and from Australia has shown consistent growth, reflecting global trends of expansion. The sector has now experienced 14 consecutive months of increasing demand, supported by a rise in international belly capacity, which expanded by over 10% year-on-year. This additional capacity has been crucial in facilitating the movement of high-value and time-sensitive goods, particularly as passenger services recover and contribute belly space to air freight operations.
Across the wider Asia-Pacific region, which includes Australia's key trade routes, airlines recorded an 11.7% increase in demand alongside an 8.5% rise in available capacity. These improvements underscore the recovery and ongoing enhancement of freight networks throughout the region. The surge in e-commerce activity, coupled with seasonal peaks, has driven the effective utilisation of this added capacity, emphasising its essential role in maintaining trade flows to and from Australia.

TRADE DATA UPDATES

Latest Updates as at 27 November 2024 (FTA / APSA LOGIN REQUIRED)

AUSTRALIAN PART X SHIPPING NOTICES

APSA is the designated peak shipper body granted status by the Federal Minister for Infrastructure and Transport under Part X of the Consumer & Competition Act to represent the interests of Australian shippers generally in relation to liner cargo shipping services. Notices have been received and are available for members' reference HERE (FTA / APSA LOGIN REQUIRED)

FTA / APSA IN THE MEDIA

4 November 2024 : DCN - DCN - Victorian Container Terminals to increase landside charges
28 October 2024 : DCN - The importance of quality assurance mechanisms in logistics and supply chain

Tom Jensen - Head of International Freight & Logistics - FTA / APSA

FTA / APSA Shipping Report - Edition 10 2024

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