August 2011 Newsletter

In this issue:

Vessel Delay - Safmarine Meru Voy 130N

China and Hong Kong Holidays
Malaysian Holidays

Congestion at Nhava Sheva

Performance at DP World Terminal, Melbourne

Bunker Surcharge

Emergency Fuel Adjustment Factor

General Rate Increase/Rate Restoration

Peak Season Surcharge

Port Congestion Surcharge (PCS)

Vessel Delay - Safmarine Meru Voy 130N

Maersk Line have advised that the Safmarine Meru Voy 130N has experienced engine difficulties on her way to Melbourne on their Northern Loop service to South East Asia.

The vessel berthed in Melbourne earlier today, which is a 3 day delay from the original schedule.

This will also mean a delay into the next port call of Fremantle however at this stage a new berthing window has yet to be confirmed. Maersk hope to have this vessel arrive on time into Tanjung Pelepas, Malaysia.

China and Hong Kong Holidays

With the upcoming holidays in China and Hong Kong it is prudent to make sure your suppliers book early and that there will be pressure on road transport, China Customs, equipment availability and space on vessels during this period (especially the National Day Golden Week). Any delays could lead to shipments missing their sailing during the busy lead up to the holidays.

Please also remind your shippers to despatch documents in advance or complete “Express Releases” in advance to avoid any delay in clearance and delivery during the same time. It will be almost impossible for you to communicate with your suppliers regarding any documentation problems for vessels arriving during the holiday period.

China Holidays

Holidays	When	Days off
Mid-autumn Festival	15th day of the 8th lunar month	September 10 - 12, 2011
National Day	October 1	October 1 -7, 2011

Note that our China offices will be working the following days after the holiday period.

Saturday/Sunday 8/9 October

Hong Kong Holidays

Holidays	When	Days off
Mid-autumn Festival	The day following Chinese Mid-Autumn Festival	September 13, 2011
National Day	October 1	October 1, 2011
Chung Yeung Festival	October 5	October 5, 2011

Hong Kong office normally works half day Saturday and no Sunday schedule has been planned.

Malaysian Holidays

These are holidays in Malaysia later this month

Holidays	When	Days off
Hari Raya (End of Ramadan)	August 30 &31	August 30 &31, 2011, although many businesses will close from Monday August 29, 2011 and resume Monday September 4, 2011
Hari Merdeka (Independence Day)	August 31	August 31

Congestion at Nhava Sheva

As mentioned in a news alert earlier this month there are ongoing problems and operational constraints at the three container terminals at Nhava Sheva, India's largest container port. There are three terminals at Nhava Sheva being the terminal operated by Jawaharlal Nehru Port Trust (JNPT), DP World's Nhava Sheva International Container Terminal (NSICT) and Gateway Terminals International (GTI) operated by APM Terminals, part of the AP Moller Maersk group.

All of them have differing issues which is resulting in berthing delays of up to 10 days and in some cases forcing vessels to bypass the port completely. Export gates are closing and opening without prior notice from the port authorities which impacts on containers not being able to "gate in" for the planned vessels.

Below is summary of the issues faced at each of the terminals in Nhava Sheva:

JNPT: As a part of an equipment modernization program they are installing new Rail Mounted Quayside Cranes (RMQ). During this phase vessels more than 260 meters in length are not allowed to berth at JNPT. Also one of the existing berths was decommissioned. This has in turn led to severe port congestion as the terminal has informed shipping lines that it would not be in a position to accommodate bigger vessels.

NSICT: The new RMQ for JNPT were offloaded at NSICT and to be shifted from the terminal to JNPT. While moving the RMQ it collided with another crane that was already integrated at NSICT adding to severe port congestion and operational constraints.

GTI: Labour unrest and go slow agitation at GTI is now leading to congestion prompting the port authorities to close the gates for all vessels.

ACA International is keeping our customers informed on cases by case basis however if you have any questions please contact your customer service representative.

Performance at DP World Terminal, Melbourne

Below is an excerpt from member Update 20/2011 published by the Victorian Transport Association (VTA) on 22 August 2011.

“ VTA members engaged in container logistics operations through the Port of Melbourne are experiencing negative fluctuations in Truck Turnaround Time (TTT) performance at the DP World West Swanson Terminal (WST) and at West Swanson Intermodal Terminal (WSIT).

Through the VTA Container Group, container transport operators have established more regular and rigorous operational consultations with senior management at DP World Melbourne. The aim of these consultations is to work through the issues systematically with a view to ensuring that terminal performance improves."

"...the last DPW / VTA Operations Liaison Group held on 11th August 2011. Members will note the comprehensive nature of the discussions, including about:

The structure of the Vehicle Booking System (VBS) and its associated rules and “disciplines”;

The allocation and use of slots in the VBS;

Improved “paperless” truck entry (i.e. expansion of the “GEK” system for empty bulk run-in and hazardous container operations); and

Operational performance issues at WST and WSIT – including equipment & labour allocations, notice of container moves to WSIT, yard layout changes and the possible use of “block stack” runs for carriers with sufficient quantities of cleared import containers per ship.

Two matters are worthy of specific mention.

The VTA has stated clearly to DP World Melbourne that carriers are very concerned about the additional costs being borne by them due to the fluctuating performance levels at WST and WSIT.

The additional costs associated with truck delays at DP World terminals cannot be fully absorbed by road carriers in the longer term. As a result, carriers may need to consider recovering these additional costs through increased rates for containers stevedored through DP World terminals, or via the implementation of an identifiable “surcharge”.

Secondly, following a meeting between the VTA and the Victorian Minister for Ports, Hon. Dr. Denis Napthine, we have requested that the Port of Melbourne Corporation (PoMC) assist carriers and the stevedores to reach understandings on appropriate independent monitoring of Truck Turnaround Times (TTT) in the Port of Melbourne.

The Minister accepted this approach, and preliminary discussions have commenced with the PoMC on the matter. It is hoped that such independent monitoring can be established in the coming months.

Finally, we will continue to engage closely with DP World Melbourne (and also with Patrick Terminals) to address performance concerns in the lead up to this year’s peak pre-Christmas container season. For instance, the DPW / VTA Operations Liaison Group meetings are occurring on a monthly basis.”

It appears that if the throughput and delays being experienced at the terminal do not improve then the truckers may have to pass additonal costs onto the importers and exporters using these terminals. ACA International will continue to monitor the situation.

Bunker Surcharge

We have been advised of the following revisions to Bunker Adjustment Factors (BAF) will be applied in September:

	Shipping Lines:	ANL
	Trade Lane:	APR TRADE- Asia to/from PNG
	Effective:	1 September 2011
	Amount:	USD 700.00 per 20’ USD 1,400.00 per 40’ USD 36.00 per R/T break-bulk

Emergency Fuel Adjustment Factor

We have been advised of the following revisions to Emergency Fuel Adjustment Factor (EFAF) will be applied in September:

	Shipping Lines:	ANL-USL, Hamburg Sud
	Trade Lane:	United States and Canada both East and West Coasts to Australia, New Zealand, Fiji, Tahiti and Papua New Guinea
	Effective:	Sailings from 15 September 2011
	Amount:	USD 994.00 per 20’ USD 1,988.00 per 40’

General Rate Increase/Rate Restoration

We have been advised of the following General Rate Increase (GRI) and Rate Restoration (RR) will be applied in September:

	Shipping Lines:	Hapag-Lloyd, ANL-USL, Hamburg Sud
	Trade Lane:	United States East Coast and Gulf to Australia and New Zealand
	Effective:	Sailings from 15 September 2011
	Amount:	USD 100.00 per 20’ USD 200.00 per 40’

	Consortium:	Asia Australia Discussion Agreement (AADA) (ANL, China Shipping, COSCO, Gold Star, Hamburg Sud, Hanjin, Hapag-Lloyd, Hyundai, "K" Line, Maersk, MSC, MOL, NYK, OOCL)
	Trade Lane:	North & East Asia to Australia (China, Taiwan, Hong Kong, Japan, South Korea and the Philippines)
	Effective:	Sailings from 15 September 2011
	Amount:	USD 250.00 per 20’ USD 500.00 per 40’

Peak Season Surcharge

We have been advised of the following Peak Season Surcharges (PSS) will be applied in September:

	Shipping Lines:	ANL, APL, NYK, Maersk
	Trade Lane:	South East Asia & South Asia to Australia (Singapore, Malaysia, Indonesia, Thailand, Vietnam and South Asia)
	Effective:	Sailings from 1 September 2011
	Amount:	USD 300.00 per 20’ USD 600.00 per 40’

Port Congestion Surcharge (PCS)

Blaming ongoing problems and congestion in Chennai Port, CMA CGM is implementing a Port Congestion Surcharge (PCS) for all Import & Export containers in Chennai.

	CMA CGM	Hapag-Lloyd
	Trade Lane:	All trade to/from Chennai
	Effective:	Sailings from or arrivals into Chennai from 15 September 2011
	Amount:	USD 60.00 per 20’ USD 120.00 per 40’