Despite the Port of Felixstowe apologising to customers for the “inconvenience” of the current congestion, we have yet to see any improvement and CMA CGM has become the first line to introduce a Port Congestion Surcharge – in the amount of USD150/TEU effective 1st October 2020 – for all containers arriving/departing Felixstowe.
Import volumes at Felixstowe have been 30% higher than usual in recent weeks, leading to severe congestion at the port, which has impacted road and rail transport and with port efficiency further diminished by the COVID crisis vehicle booking slots are not currently being issued, the restitution of empty containers has been interrupted and some vessels are omitting or diverting from the port.
Sea freight volumes from Asia have been improving steadily since the COVID-19 lockdowns of April and May, confounding shipping lines that have been blanking sailings in the expectation of low demand from battered economies and mostly in recession.
The South China Morning Post (SCMP) has been Asia’s primary newspaper and portal for more than a century, which is why being called on by SCMP journalists for our expertise in these challenging times is such an accolade.
The price of very low Sulphur fuel oil’s (VLSFO) is expected to remain under pressure until the COVID-19 pandemic is contained and the Saudi Arabia-Russia price war subsides tempting more carriers to join CMA CGM and avoid the Suez Canal, cutting millions from their operating costs.
Fueled by volume reductions, IMO 2020 surcharges, and demand ahead of Chinese New Year, sea freight rates from Asia to European ports will end 2019 on a high, and could increase further in the run up to Chinese New Year.
In 2020, Chinese New Year (CNY) is early, 24-30th January, and will catch out more unwary shippers than usual. Our CNY shipping tips will safeguard you and your supply chain.
The International Maritime Organisation’s (IMO) global emissions regulations come into force in January 2020 and will have a massive effect far outside of shipping, with as much as £220 billion of added costs across global supply chains.
From January 1st, 2020, the International Maritime Organisation (IMO) Low Sulphur Regulation will be in effect, which means all sea-going vessels will have reduce their sulphur emissions by 85%, using liquid natural gas-powered vessels, scrubbers or Very Low Sulphur Fuel Oil.
Demand for space on vessels from China continues its seasonal decline, apprarently prompting carriers to consider cancelling further voyages without notice.