|
CAPACITY CRUNCH FROM ASIA
With only a few weeks to go before the Chinese New Year and its two week factory closures, ocean containers are backing up on the docks of Asia.
Space is tight and carriers, coming off the worst market in decades, are capitalizing on the moment of high demand and low supply. Since January 15th, the Transpacific Stabilization Agreement (TSA) carriers have adopted an Emergency Revenue Charge (ERC) - a surcharge of between $400 - $505 on west coast cargo, which still does nothing to guarantee that cargo will move as booked, but does help carriers facing historically low rates. The surcharge is in effect, but capacity is still limited so hundreds of containers are being ‘rolled’, as cargo is pushed from its booked voyage to a later sailing.
The capacity crunch should come as no surprise. Last year, when carriers were caught with a significant overcapacity as Asian exports suddenly dried up, freight rates dropped precipitously. In response, carriers parked vessels, combined services with other carriers in vessel-sharing arrangements and reduced sailing speeds. Despite an indication last fall that the market was returning, last year’s drastic reductions in capacity have carried over to this year.
The surge is expected to continue until at least mid-February, when the holidays will give some breathing room, allowing carriers to clear backlogs. Until then, expect delays, rolling cargo and price volatility.
COSCO CANADA WB INDEPENDENT ACTION RATE INCREASE
COSCO, as a member of the Canada Westbound Transpacific Stabilization Agreement (CWTSA) is announcing an Independent Action to Rate increase (IA) effective March 5th, 2010.
Dry Cargo
US$80 per 20-foot container and
US$100 per 40-foot container (standard and high-cube) and 45-foot container, for all Canada West Coast, East Coast and inland point intermodal (IPI) cargo, including container yard (CY) and door moves.
CTSA LINES ADOPT SECOND-STAGE INTERIM RATE INCREASE FOR 2010
Continued depressed rate levels in the Asia-Canada market have made it necessary for major container lines in the trade to implement a second general rate increase (GRI) in advance of upcoming tariff and contract rate increases.
Effective March 01, 2010, the CAF for all Eastbound cargo from all Far East & Indian Sub-Continent origins (including Japan & the PRC) to all Canadian destinations will be:
6 % on top of Ocean Freight - CAF will be calculated and will fluctuate on a monthly basis. CAF trigger will be based on a 2% variance. The Currency Adjustment Factor (CAF) will be at the following levels for all westbound cargo from Canada to Far East & China effective March 1, 2010:
2 % Applicable to all destinations including Japan and the PRC.Effective March 15, 2010, member carriers in the Canada Transpacific Stabilization Agreement (CTSA) say they intend to raise Asia-Canada rates across the board by US$400 per FEU for Vancouver local and door cargo, and by US$500 per FEU for all intermodal and East Coast all-water shipments, with other equipment sizes rated per formula. The new rates will apply to all CTSA origins, including Pakistan, Sri Lanka and Bangladesh.
CTSA stressed that the increase will apply to existing rates only, and is not meant to replace the previously announced May 1 GRIs of $800 per FEU for Vancouver local and door cargo, and $1,000 per FEU for intermodal and East Coast all-water moves, which will be applied to all long-term contracts going forward in 2010.
In addition to the interim GRI, the full floating CTSA bunker charge and currency adjustment factor (CAF) will be applied to all base rates effective January 1, 2010. CTSA pointed out that, in the current economic and financial climate, carriers could not afford to absorb currency fluctuation costs and would make every individual effort to apply and collect the CAF per the CTSA formula. The CAF was set at 5% as of February 1, 2010, and is scheduled to rise to 6% on March 1.
MSC GRI ON EXPORTS FROM NORTH AMERICA
MSC Mediterranean Shipping Company has advised it is implementing a General Rate Increase effective 1st of March 2010.
From USA & Mexico to Relay* rates will increase by USD$150 per 20’ and USD$250 per 40'
From Canada to Relay* rates will increase by USD$200 per 20’ and USD$350 per 40’'
* Relay Destinations: Bangladesh, Israel, Turkey, Greece, Lebanon, Syria, Cyprus, Egypt, Ukraine, Georgia, Bulgaria, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, U.A.E, Yemen, Jordan, India, Pakistan, Djibouti, Kenya, Sudan, Tanzania, Algeria, Angola, Benin, Cameroon, Ghana, Ivory Coast, Libya, Malta, Mauritania, Morocco, Nigeria, Senegal, Togo, Tunisia, Iran, Cape Verde, Guinea Bissau, Sri Lanka, Romania, Russia, Gambia, Guinea, Iraq.
MSC also advised they will implement a General Rate Increase effective 1st March 2010 between North America & Europe/Mediterranean. The rates are as follows:
* From Canada to NWC & UK including Scandinavia and the Baltic region rates will increase by US$200 per 20’ and US$350 per 40’.
* From Canada to West Mediterranean rates will increase by US$200 per 20’ and US$350 per 40’.
* From USA to NWC & UK including Scandinavia and the Baltic region rates will increase by US$150 per 20’ and US$250 per 40’.
* From USA to West Mediterranean rates will increase by US$150 per 20’ and US$250 per 40’
DANGEROUS GOODS SHIPPING DOCUMENTS - 24 HOUR EMERGENCY TELEPHONE NUMBER
Transport Canada has recently tested a number of "24-Hour Numbers" provided on dangerous goods shipping documents and found some of this numbers to be invalid. CP would like to remind shippers and importers should be reminded their obligations.
24-Hour Number Requirements - The Canadian Transportation of Dangerous Goods Regulations (TDGR) require that the consignor provide on the shipping document an emergency telephone number ("24-Hour Number") at which the consignor can be reached immediately for technical information about the dangerous goods in transport, without breaking the telephone connection made by the caller (TDGR Section 3.5 (1)(f)).
Consignor means a person in Canada who: a) is named in a shipping document as the consignor; b) imports or who will import dangerous goods into Canada; or c) if (a) and (b) do not apply, has possession of dangerous goods immediately before they are in transport.
The "24-Hour Number" must be answered not only during office hours but must be answered at any hour of the day when the dangerous goods are in transport. A consignor that uses the telephone number of an organization or agency other than CANUTEC must ensure the organization or agency can provide the required technical information for the dangerous good. If the organization or agency is located outside of Canada but is competent to give the technical information required in English or French, the 24-Hour Number must include the country code, and if required, the city code (TDGR Section 3.5(2)).
Shipments for which proper shipping documentation is not provided are not only subject to government penaly but addition operation and storage charges. Regulatory requirements for shipping documents can be found on Transport Canada's Web site at the following address: http://www.tc.gc.ca/eng/tdg/clear-part3-317.htm
REVISED IMPORT REQUIREMENTS FOR WOOD PACKAGING MATERIAL TO AUSTRALIA
In November 2009, the Australian Quarantine Inspection Service (AQIS) posted revised import requirements pertaining to the entry of wood packaging entering Australia.
In summary, the revised Australian requirements for wood packaging material are as follows: “Australia no longer requires a "Newly Manufactured Plywood Declaration" for packaging material made of plywood/veneer. This is effective immediately. Documents presented that include the Newly Manufactured plywood/veneer packaging declaration will still continue to be accepted.
Also, there is no longer a specific treatment requirement for plywood/veneer packaging that has been in service.” Please Note AQIS will monitor the risks associated with packaging material made of plywood/veneer through periodic targeted surveillance to verify that the plywood is free of pests. To avoid delays in entry, exporters should inspect plywood prior to its export. For packaging made from or composed of wood: the wood must be bark free (without any bark) and must be treated and marked in accordance with ISPM No. 15 (i.e. as per the conditions of directive D-01-05, Canadian Wood Packaging Certification Program);
The wood packaging must be accompanied by a written declaration verifying that the wood packaging complies with the above import requirements.
Further details regarding the import requirements may be obtained by contacting a local office of the CFIA. The information contained in this Notice is correct at the date of posting. If you have any further questions regarding wood packaging moving from Canada, please contact a local office of the CFIA at:
http://www.inspection.gc.ca/english/directory/offbure.shtml
CBSA MEMO D19-10-3 UPDATED - EXPORT AND IMPORT PERMITS ACT (EXPORTATIONS)
This memorandum has been updated to reflect changes to the Canada Border Services Agency's (CBSA) role in administering the provisions of the Export and Import Permits Act. (EIPA) Full details at: http://www.cbsa-asfc.gc.ca/publications/dm-md/d19/d19-10-3-eng.html
LUFTHANSA CARGO, BRITISH AIRWAYS FACE STRIKE THREATS
It has been reported that Lufthansa Cargo pilots will vote on strike action after the carrier and their union failed to reach agreement on a new contract. The German pilot union VC asked approximately 4,500 pilots employed by parent company Lufthansa and its cargo and low cost airline units to vote by Feb. 17.
The union says an acceptance rate of seventy percent is needed to allow an open ended strike at Europe's second largest airline. Whereas British Airways cargo operations also face disruption as the carrier's 13,500 flight attendants prepare to vote on possible strike action over cost-cutting plans. A strike could begin as early as March if the cabin crew members vote in favor of industrial action. BA's cargo operations would be affected since much of its freight is carried in the belly holds of its passenger aircraft
FRENCH DOCKERS THREATEN STRIKES AT MAJOR ORTS IN FEBRUARY
French dockers are threatening strikes from the middle of February if the government fails to live up to alleged promises to create up to 30,000 jobs in return for their support of a reform of publicly owned ports.
The Confederation Generale du Travail (CGT) union has warned it will launch an indefinite work-to-rule campaign at France's seven largest ports, including the leading container hubs of Le Havre and Marseilles, on February 12, if the transport Secretary fails to give adequate assurances on job creation. As part of earlier protests, French dockworkers staged 24-hour nationwide strikes on January 4 and 11, and they have been refusing to work overtime or at night since early November. |
beacon.ca
feedback