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Peak Season Busier Than Last Year

The national holidays in China have started and the lead up has been, as expected, very hectic with very tight space restrictions on carriers from the Far East and South-East Asia and we are definitely well into the 2017 Peak Season. Our Sales Director, Glenn Hall provides this update on the challenges during the peak season and how you can help ensure your containers are loaded on desired sailings.

Looking at the current shipment activity from Asia, statistics identify that demand has increased between the first half of 2016 and the first half of 2017.

The average weekly TEU movement in the first half of 2016 from East Asia (excluding Japan and Korea) was 24,856 TEU per week versus the first half of 2017 being 26,853 TEU per week, an increase of 8%. South East Asia (including Singapore, Malaysia, Thailand, Indonesia, India sub-continent, Vietnam and tranship containers from EU and Africa is up from 10,730 to 11,754 TEU per week increase of 9.5%. Current and forward bookings with carriers indicate that bookings remain very strong and ahead of demand for the same period last year.

At the same time carriers are securing increased container movement there has been no new tonnage enter the market and at this stage the only proposed increases will be through replacement of smaller vessels for larger vessels and increase of tonnage in the order of 3 to 5% over the next 12 months.

Rate restoration or General rate increase announcements have been made on 15 September and carriers have announced further GRI’s from China effective 15 October.

Both South East Asia services and Far East services are experiencing space shortages and we will request your help with forward bookings. Longer range forecasting will be very helpful to assist in planning space requirements with our carriers. We have excellent allocation to support our valued client base, however bookings received within a week of a sailing may be transferred to the following weeks sailing. Where carriers are assessing overbooked vessels, late receivals into the terminal may be subject to transfer.

There has been some late blanking advice. The AAU consortium, Hamburg Sud, MSC etc have blanked their scheduled 9 October sailing from Yantian and the CNS to Brisbane sailing from Shanghai on 8 October will also blank and that will increase pressure on space during this period.

Our Customer service team will be contacting all Asian importers to continue to discuss your forward bookings and, as mentioned, if you could assist it will help maximize the opportunity for loading on the desired vessel. There may be some disruption caused through the peak season surge and ACA International will continue to work to limit the impact.

We have enclosed some of the recent GRI notices we have received from carriers in the past few weeks.

Glenn Hall
Director Sales