Low-Sulfur Rule, GRI and Asia Ports Service Delays

The following notice is related to three situations impacting a significant number of global supply chains:

Low Sulfur Rule

The International Maritime Organization’s (IMO) low-sulfur emissions rule is likely to result in additional pass-throughs of charges within the next 18 months. In some cases, shippers have already seen increases of up to 50 percent compared to the same time last year. This is leading many to separate freight and fuel costs in order to more efficiently track related spending, an advisable practice given the fact that an increase in the production of low-sulfur fuel could result in an increase to diesel prices and a subsequent decrease in production.

General Rate Increase

A general rate increase (GRI/PSS) went into effect for ingates starting June 15. Data thus far indicates that the GRI is being applied by all carriers, though the increase amount differs with the current increase rate ranging between $600 and $1000 per FEU. AGL continued to work directly with carriers to mitigate these fees.

Asian Ports Service Delays

Destination ports in several Asian cities continue to experience service delays for a number of reasons. The list includes, but is not limited to:

  • Shanghai: Congestion is easing – 1-1.5 days berth waiting time
  • Ningbo: Moderate congestion – 1-1.5 days berth waiting time
  • Qingdao: Serious congestion due to the port being closed for 98hrs the week of June 9 due to heavy fog and the SCO Meeting which led to restricted activities
  • Shantou: Moderate congestion – 0.5-1 day berth waiting time
  • Penang: Moderate congestion due to ongoing dredging activities. Berth waiting time can exceed 1 day.
  • Manila: Severe delays due to bad weather – 3-4 day delays for in-window arrivals
  • Bangkok: Congestion, with waiting time still around 2-2.5 days for a berth