We are seeing ongoing space constraints from China to Australia driving rates up, with another GRI expected in June at appx USD300/TEU level.
China to New Zealand space is not under the same amount pressure, although some vessels are sailing full and carriers are trying to implement a GRI for New Zealand.
Space issues have previously been driven by capacity constraints due to schedule instability and an increase in demand, as customers look to fulfil their inventory stocks preempting further disruptions during the upcoming peak season. Some carriers are also experiencing shortage of empty containers, due to imbalance caused by longer transit times through The Cape of Good hope.
We do not expect any increase in capacity for this trade lane as there are no available ships that can be deployed into the Oceania market. A large number of new builds has been appointed to the European or the Gulf trade lanes where rates are significantly higher at around USD 5000 per FEU. These ships are expected to remain in these long-haul trades for the rest of the year.
We recommend that customers continue to build in extra lead times for their orders as we anticipate this situation to continue well into peak season. We will continue to explore all available sailing options to meet customer demand and ensure your cargo continues to move with minimum disruption to your business.
Another GRI announced effective 1st June 2024
- From North East Asia to Australia and New Zealand of USD300 per TEU
- From South East Asia to Australia and New Zealand of USD100 per TEU
Should you have any questions or require additional information, please don’t hesitate to contact your local Kerry representative.
Thank you for your continued support and understanding.
If you would like to learn more about GRI, check our article on them here.
