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As some background, space into N.Z has been at a premium due to vessels being at full capacity for the past four months.

The mid-2016 collapse of Hanjin, the eighth largest carrier in the world, reduced global capacity and has ripples into ‘little old New Zealand’.  

The trend for space to be at a premium is likely to continue until Mid February which coincides with Chinese New Year 2017.

It won’t be pretty around that time so you need to inform us of up and coming FCL bookings ex China.

Well in advance.

Chinese New Year this year starts on 28th January.    

Due to this ‘demand sometimes exceeding supply’ situation most New Zealand calling shipping carriers have advised of their intention to increase rates effective sailings 1st January 2017.

Indicatively USD75.00 per 20ft FCL and USD150.00 per 40ft FCL.

This level of increase varies between carriers and ports.

We are in negotiation with the various carriers over the level of increase.

You have our assurance any rates changes will be communicated to you.

But it’s clear 2017 will see increases to FCL rates and that will have a flow-on to LCL rates.

The root-cause is outlined here.  



Just so you know where we are, there were major changes in the shipping industry in 2016.

Moving into 2017 these are expected to make an impact on global shipping.

So what is happening globally will affect ‘little old New Zealand’.

Let’s look at 2016 first.

Hanjin, the eighth largest carrier in the world, went into bankruptcy in the middle of the year. Over 400,000 containers were caught-up in their melt-down.   

COSCO and China Shipping, China’s two largest carriers, merged.

MOL, NYK and K-Line, Japans three largest Japanese carriers, announced their merger. This merger expected to take place progressively over the next few years reducing three lines to one.

CMA CGM purchased APL Line.

Last but not least Maersk are in the process of acquiring Hamburg Sud.

None of these changes will be positive for New Zealand importers.

Reduced competition, possibly capacity never is.

Vessels into New Zealand are already chocker-block.

Where there was once about ten lines competing, we will be down to under half that.

Not good.

More cherry news to come.



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