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Wavering shipping demand results in declining ocean freight rates

In August, average container freight rates are 'stabilizing' and have declined sharply compared to the same period last year. As expected, the rate levels remain few times higher compared to pre-COVID rates. It is observed that the demand trend is slowing down while shipping capacity is increasing. In Europe and USA, the labour strikes are creating further mayhem to the existing port congestions. Coupled with the accelerating inflation and the inventory built up in Europe and USA, there is an overall lower demand for imports.

With the drop in vessel utilization and the absence of the peak season demand trends, ocean freight rates are declining. This is contrary to the usual historical peak for shipping from July to September, which may be good news for forwarders and shippers sending cargo out from China. In the past years, there is always a pre-holiday rush for shippers to send cargo before the China golden week starting October 1, which is absent this year.

In addition, the extreme weather in China this summer is creating droughts, which in turn result in power shortages, particularly in provinces where electricity is largely generated by hydropower. In Sichuan where 80% of their energy needs are dependent on hydropower, energy supplies are running low especially with the increased usage of energy to stay cool during this worst heatwave in 60 years. Authorities are announcing power rationing, factory closures etc. to deal with the heatwave and this could again have ripple effects on the international supply chains. The challenges arising from the heatwave might be more impactful than that of the previous COVID lockdowns in China, causing more severe economic effects.

With vessel utilization dropping, a wavering demand trend and the port congestion issues in different parts of the world, the short term rates are expected to decline further in the coming months.

Country Focus – Indonesia

Globelink Indonesia, established since 2010, provides a wide range of sea freight forwarding services. This includes our core business of NVOCC operator, cargo transshipment, consolidation services for less than container load (LCL) & full container load (FCL) cargo to and from most major ports globally.

We currently have offi­ces in 4 locations locally:

• Jakarta (Country Head O­ffice)
• Belawan
• Semarang
• Surabaya

» Comprehensive Service Coverage

Globelink Indonesia offers multiple sailing schedule weekly and quality carrier options to fulfil our customer needs of reaching cargo at destination with a shorter transit time.

» Niche Trade Lanes

Below lists some of our direct niche services:

Belawan to Singapore and Port Klang

Surabaya to Port Klang

Globelink Indonesia also provides inland transportation to inter-island in Indonesia such as Kalimantan, Sulawesi, Papua and Bali.

» Our CFS

Globelink Indonesia owns the largest CFS (Container Freight Station) in Indonesia. Our CFS is located in APW Building & MBP within the Indonesia port (Tanjung Priok) which provides better accessibility for loading and unloading at dock. We have a container handling capacity of 3,000 teus per month. Inbound containers are devanned within 48 hours upon discharged and computer generated discrepancy or damaged reports are transmitted to our partners within 24 hours after devanning.

» CFS Services & Facilities

» Our DG Capabilities

Globelink Indonesia works closely with PSA Chemcare and Port Chemist to handle classes except for 9 chemicals under IMO classes 2.3, 6.1, 5.1 & 8. We accept import DG from SIN and export into SIN.

» Direct Services Re-Launch

For more information on our services in Indonesia, please contact our local offices:

Jarkarta – PT Globelink Sea and Air Fright Indonesia
Jl. Arteri Kedoya (Jl. Panjang) No. 1 L/M
Jakarta Barat 11530, Indonesia
Tel: 6221 5830 4721 (Hunting) Fax: 6221 5830 4730/31

Surabaya – PT Globelink Sea and Air Freight Indonesia
Jl. Laksda M. Nasir No. 29
Blok F-8, Surabaya 60165, Indonesia
Tel: 6231 328 4348/49/50 Fax:  6231 328 4346

Belawan – PT Globelink Sea and Air Freight Indonesia
Jl. Timor Komp. Jati Junction No. T-6,
Medan 20231, North Sumatera, Indonesia
Tel: 6261 8050 1438/1439/1563 Fax: 6261 8050 1809

Semarang – PT Globelink Sea and Air Freight Indonesia
Jl. Anjasmoro Raya No. 69
Semarang 50142, Indonesia
Tel: 6224 761 7741/43 Fax: 6224 761 7740

Globelink China receives AAA credit grade for the 15th consecutive year!

Globelink China is once again rated as AAA credit grade by China International Freight Forwarders Association. The results of credit rating are divided into five classes AAA/AA/A/B/C, among which AAA is the highest level and C is the lowest.

The results depend on the comprehensive rating of an enterprise's credit based on the following aspects:

1. Analysis of the enterprise's constitution;
2. Estimation of the enterprise's business solvency,
1. debt payment ability
2. profitability
3. operating efficiency
4. growth ability;
3. Study of the enterprise's risk control ability;
4. Appraisal of the establishment of the enterprise's credit management system;
5. Evaluation of the enterprise's business management ability,
1. managers
2. contract fulfilment;
6. Review of the enterprise's social credit records.

Congratulations to Globelink China for this great achievement for the 15th time!

Brown Marmorated Stink Bug (BMSB) Season 2022-2023

The Department of Agriculture in Australia have released the measures for Brown Marmorated Stink Bug (BMSB) season 2022-23.

The 2022-23 BMSB seasonal measures will apply to targeted goods manufactured and shipped from the below target risk countries that have departed between 1 September 2022 and 30 April 2023 (inclusive), and to vessels that berth, load, or trans-ship from target risk countries within the same period.

Any target high risk or target risk goods which are manufactured in or shipped from the target risk countries will be subject to the BMSB seasonal measures. Any vessel that berths at, loads, or trans-ships from the target risk countries is also subject to the BMSB seasonal measures.

Note: The shipped on board date, as indicated on the Ocean Bill of lading, is the date used to determine when goods have been shipped. “Gate in” dates and times will not be accepted to determine when goods are shipped.

» BMSB Measures for goods:

• If your goods are classed as target high risk, they will require mandatory treatment.
• If your goods are classed as target risk, they will be subject to random inspection.
• If your goods are not found in either category, they are not subject to BMSB measures, however, will be subject to the measures if packed with target high risk or risk goods.

» Treatment of target high risk goods

• Target high risk goods treated in target risk countries must be treated by a registered offshore BMSB treatment provider approved under the Offshore BMSB Treatment Providers Scheme.
• Treatments conducted by an unapproved treatment provider in a target risk country will be deemed as invalid.
• Containerised goods will be directed for onshore treatment.
• Break bulk will be directed for export.

» Target Risk Countries

The following countries have been identified as emerging risk countries for the -BMSB risk season and may be selected for a random onshore inspection: United Kingdom and China

• China – random inspections will apply to goods shipped between 1 September to 31 December (inclusive)
• United Kingdom – random inspections will apply to goods shipped between 1 December to 30 April (inclusive)
• In addition to the target high risk goods, chapters 39, 94 and 95 will be subject to random inspections for emerging risk countries only

All shipments from target countries (regardless of if high risk goods or not) will have to be declared to the departments of Agriculture.

» Target high risk goods

Goods that fall within the following tariff classifications have been categorised as target high risk goods and will require mandatory treatment for BMSB risk.

» Mandatory Offshore or Onshore treatment

• Containerised cargo - Mandatory offshore and onshore treatment of target high risk goods shipped in sealed six hard sided containers will be required
• LCL and FAK containers with target high risk goods will be managed at the container level for BMSB risk prior to deconsolidation.
• Containers seeking onshore treatment will also be subject to early reporting and will be permitted to move to an Approved Arrangement site for treatment at the container level (deconsolidation or segregation of goods will not be permitted)

» Offshore treatments and treatment providers

• Treatment providers need to re-apply for register with DAWE as BMSB offshore treatment providers
• As Methyl Bromide is not permitted in European countries, no MB Treatment Certificate from those countries will be acceptable to DAWE. Compliant Sulfuryl Fluoride Certificates are acceptable.
• Where phosphine is a department approved treatment for particular commodities, (flour, soybean meal, fish meal, nuts and oilseeds grains, seeds, flour, plant products and prepared foods) the department accepts certification from all offshore phosphine treatment providers in all countries. (phosphine is not acceptable for treatment of wooden products.)

https://www.agriculture.gov.au/biosecurity-trade/import/before/brown-marmorated-stink-bugs/offshore-bmsb-treatment-providers-scheme#approved-offshore-bmsb-treatment-provider-list

For any further information/questions regarding the BMSB season please use the below Link to the Department of Agriculture:
https://www.agriculture.gov.au/biosecurity-trade/import/before/brown-marmorated-stink-bugs#bmsb-measures-for-goods