Shipping line giant singles out Oceania as having potential issues on the horizon: International freight insights APAC 2024 week 32
Updated: Aug 28
In recent comments from a shipping line giant, Oceania was singled out as having potential issues on the horizon.
According to Maersk: “The Oceania network is severely affected by congestion in Southeast Asian hubs, crucial for linking Oceania’s cargo to the company’s global network. This is due to equipment shortages and limited capacity. The delays in Southeast Asian hubs pose a risk of disruption at Australian ports due to vessel bunching on arrival, resulting in longer waiting times and other delays. The congestion and disruption have extended beyond the hubs and into Northeast Asia and Greater China ports, causing delays. Oceania exporters should factor in additional lead time as part of supply chain planning.”
Maersk’s view here is their public explanations for future disruptions to Oceania. In addition to these comments, shipping lines are likely to alter scheduling with increased blank sailings to Australia. This is due to other trade lanes being more profitable for them currently, as can be seen in the containerized freight index analysis:
The leading China Global Export Container Freight Index for the past week showed a 2.7% decrease in container freight rates ex China to Australia / New Zealand. This is in line with the 2.2% decrease in the overall China Global Export all routes China Containerized Freight Index. As can be seen in the chart it’s the first time in months a decrease has shown in this index.
One shipping line on the China to Australia route increased ocean freight pricing 20% this week – so a continued fall in rates to Australia is definitely not certain.
Per NASDAQ listed Freightos: “Congestion at major Asian container hubs is not as bad as a few weeks ago but is still a factor tying up capacity and causing delays, including some redistribution of vessels – and congestion – to other ports in the region, now including Taiwan.
But if peak season pressure is starting to ease earlier than usual, it is likely also due to the pull forward of a good share of peak season volumes to earlier than usual in the year in efforts to account for longer lead times due to Red Sea diversions and avoid delays later in the year and closer to the holidays…..peak season goods will likely keep demand relatively elevated into September and congestion remains an issue.”
To end off, Maersk CEO Vincent Clerc recently stated:
“We are going to have in the coming month missing positions or ships that are sailing that are significantly different size from what we normally would have on that string, which will also imply reduced ability for us to carry all the demand that there is.”
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