With the ever-changing COVID situation in Australia and the consequent reduction of permitted international travellers, 2021 will continue to bring changes and new demands for the freight sector. Find out the top news in freight for July below:
Freight terminology: Fees
Fees & surcharges are a central and complex part of the freight sector. Here are some of the top terms you need to know.
Fuel Surcharge (FSC) is a fuel surcharge implemented by carriers to account for seasonal variations in fuel costs. It may rise and fall or be subject to removal.
Peak Season Surcharge (PSS) is a surcharge that may be applied by carriers during seasons of peak demand and applies to all trade lanes. This usually applies anytime between June 1 and October 31. Carriers apply a PSS if they are near or at their full capacity.
General Rate Increase (GRI) refers to the adjustment made to base sea freight rates across route(s) during a set time frame. This is generally implemented as the result of increased demand.
What’s happening in shipping right now
Here are the top news items in shipping for August 2021:
- CMA & CGM have indicated that there will be a Peak Season Surcharge (PSS) applying to relay service from North Europe and the Mediterranean.
- The Ningbo Terminal in Meishan, China, has been under disinfection and quarantine measures since 11 August when a positive COVID-19 case was reported. Ningbo is the world’s third busiest port and the disruption will continue to disrupt sailing schedules.
- In early July, the Biden administration signed a new executive order to crack down on ‘unjust and unreasonable’ fees. Find out more here.
- Across Australia, ocean freight rates have been surfing due to strong demand and the shipping sector being affected by the COVID-19 pandemic.
- ANL announced a rate increase from 1st August 2021 that applied to all cargoes from Korea, China, Japan, Hong Kong and Taiwan.
- A recent feature by A Current Affair indicated freight delays as a result of a shortage in shipping containers and cap on international flights. The report advised that people should prepare for Christmas in advance to avoid big delays. See the episode for yourself here.
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