Australia
New Zealand Overview
As we approach the close of 2024, the Oceania logistics market is under pressure from strong demand, tight capacity, and elevated rates across both ocean and air freight sectors. Post-Golden Week demand spikes and the ongoing peak season are amplifying planning challenges, especially on Asia-Oceania routes. This update provides critical insights and guidance to help Australian and New Zealand businesses navigate the busy season effectively.
Ocean Freight Market Insights
Rates and Demand
Following Golden Week, demand on Asia-Oceania routes surged, prompting carriers to implement General Rate Increases (GRIs) of USD 150-300 per TEU in early November. Rates are expected to remain high through December as holiday demand intensifies. Carriers recommend securing ocean freight bookings at least four to six weeks in advance to secure space on key routes.
Capacity and New Service Routes
To support demand and improve schedule reliability, carriers have introduced several new services dedicated to Oceania routes:
- Koala Service by MSC: This weekly route from China and Southeast Asia to Fremantle launched with MSC Sijing, with larger vessels to follow, providing additional capacity for Western Australian importers and exporters.
- Northern Star Service by Maersk: Designed to expedite transit times between Greater China and New Zealand, this service covers major ports and includes a southbound call in Brisbane. With a 15-day Tauranga-to-Shanghai transit, it provides New Zealand exporters with faster, reliable connectivity during the peak season.
These new services target capacity shortages and provide faster transit options for Australia and New Zealand. Early bookings on these routes are highly recommended to prevent delays, particularly as congestion persists at major transshipment hubs such as Shanghai and Ningbo, where wait times can average up to seven days.
Schedule Reliability and Alternatives
While the recent addition of new vessels has helped meet some demand, schedule reliability has dipped slightly, with average delays reaching 4.67 days. Weather-related congestion has also impacted several ports, adding to seasonal delays. Exploring alternative ports and routes can help mitigate these challenges, especially on high-traffic lanes.
Air Freight Market Insights
Rates, Capacity, and Utilisation
The air freight market saw a 5% increase in capacity since September, driven by additional widebody aircraft and increased passenger bellyhold capacity on Asia-Pacific routes. Despite this, high utilisation rates continue to restrict available space on high-demand lanes, particularly for time-sensitive shipments. Air freight rates are expected to stay elevated through Q1 2025, reflecting sustained seasonal demand. Businesses needing priority shipments are encouraged to make advance bookings to control costs and ensure space availability.
Sector-Specific Demand
Demand from e-commerce, technology, and high-value goods sectors continues to drive intense competition for air freight space, especially during the holiday season. Businesses operating in these sectors should plan ahead to secure capacity, minimise costs, and maintain on-time deliveries.
Digital Solutions for Real-Time Tracking
Seabridge offers a full suite of digital tools and real-time tracking solutions, including our HIVE platform, which gives customers comprehensive visibility and greater control over their shipments. These tracking tools enable customers to monitor transit status at every stage, ensuring full transparency and allowing for responsive, informed decision-making during this busy season. Our digital solutions also support effective scheduling and forecasting, helping businesses optimise their logistics planning and adapt swiftly to market changes. With Seabridge’s technology, customers can mitigate risks, streamline schedules, and maintain flexibility in a rapidly shifting market.
Planning Ahead for Peak Season
With capacity constraints ongoing, securing ocean freight bookings at least four to six weeks in advance remains essential to manage costs and avoid delays. This proactive approach ensures space availability on priority routes and helps businesses lock in rates during the peak season. As your logistics partner, Seabridge is here to support your unique requirements. Please reach out to your Seabridge account representative with any specific concerns or questions regarding the current market environment.
Contact Us
Seabridge is dedicated to supporting your logistics needs with customised, technology-driven solutions that align with today’s market demands. For further information or to discuss specific shipping requirements, please contact your Seabridge account representative.
