Hormuz uncertainty prompts carriers to add new surcharges
As Strait of Hormuz transits continue to remain uncertain, container lines are implementing new surcharges ...
Port of Melbourne
By Alison Koo
Shipping lines are adding more capacity to the East Asia-Australia route, after freight rates surged by more than 30% within a month.
Tight capacity resulting from high demand on the intra-Asia and long-haul routes, as well as congestion in key ports, are pushing up freight rates.
CMA CGM’s Australian subsidiary, ANL, will team with Cosco affiliate OOCL to start an Australia-China Express (ACX) service, using six 3,000-4,000 teu ships, with calls at Qingdao, Shanghai, Shekou, Melbourne, Sydney and Qingdao.
ACX, with a 42-day turnaround, will start on 27 July, with 3,338 teu Colombo departing Qingdao.
ANL already operates the A3N service that connects Yokohama, Osaka, Busan, Qingdao, Shanghai, Ningbo and Kaohsiung to Melbourne southbound, and northbound connects Melbourne, Sydney and Brisbane to Yokohama.
ANL’s move follows Maersk Line, which on 24 July, will launch the Qilin service, to connect Shanghai to Sydney and Melbourne using five 2,500-2,800 teu ships, Qilin complements the Danish carrier’s Dragon service that connects Qingdao, Ningbo, Shanghai, Hong Kong and Yantian to Sydney, Melbourne and Brisbane.
On 18 June, the Shanghai Containerised Freight Index showed the Shanghai-Melbourne rate rose 4% from 11 June, to $1,808 per teu. Year-on-year, the rate has more than doubled, from $763 per teu.
Korea Ocean Business Corp’s Container Composite Index today shows the Busan-Australia rate up 10% from a week ago, at $3,096 per 40ft.
Forwarders told The Loadstar shipping lines were now quoting $2,000 per teu for Far East-Australia, highlighting the capacity shortage.
This month, Port of Melbourne CEO Saul Cannon said container trade had risen more than 2% year on year in Q1, despite geopolitical volatility impacting shipping and fuel supply availability. April alone showed 7% year-on-year growth.
Last year, Melbourne port exported 660,000 teu of goods. South-east Asia has emerged as a key growth market, now accounting for more than a quarter of container exports.
Comment on this article