Burnard Bulletin - May

Straight to the Point

• That’s a wrap! The 24/25 BMSB season has ended. The fumigation requirement for the Brown Marmorated Stink Bug season has now come to an end. The season officially ended on 30th April (Inclusive).
• Second Protocol for Free Trade Agreement Comes into Effect. A much-needed revamp of the 2009 AANZFTA (Association of Southeast Asian Nations (ASEAN), Australia and New Zealand Free Trade Agreement) came into effect last month on the 21st of April.
• Strikes in Belgium cause of Congestion. Strikes in Belgium continue to cause delays in the country’s main ports.
• Hopes Diminish for Carriers Eyeing up Return to Suez Canal and Red Sea. Hope for a resumption of Suez Canal transits by container lines were dampened late last month, following renewed threats by Houthi Militia as the Red Sea crisis drags on.

Important Consideration and Reminders

• Export Space Remains Limited. As highlighted in our previous Bulletin, the export industry remains in peak season, and vessel space continues to be in high demand. Most reliable sailings are fully booked through to the first or second week of June.
  To avoid delays, we strongly recommend advising your Burnard International contact of your shipping requirements as early as possible to secure space.
• Stabilisation in Blank Sailings, But Early Planning Still Essential. In recent months, shipping lines have implemented a series of blank sailings in response to reduced cargo volumes from Asia. While this trend now appears to be stabilizing, with fewer blank sailings being announced, we continue to recommend that you communicate your shipping requirements to your Burnard International contact as early as possible. Early planning remains critical to securing space and avoiding potential disruptions.
• Tranship Ports Continue to be Congested. All tranship ports, including Singapore and Tanjung Pelepas continue to show congestion with the average wait time ranging from 2-3 weeks for many shipping lines. Remember to factor this in when forecasting your inventory levels.
• Weather Disruptions – A Timely Reminder. Recent severe weather conditions have served as a reminder of the impact such events can have on the logistics and supply chain industry. Extreme weather can disrupt operations across various sectors, including port activities, road and rail transport, and ferry services, often leading to traffic congestion and shipment delays.
  For example, Ports of Auckland recently suspended operations for nearly two days due to adverse weather, and numerous ferry crossings across the Cook Strait were cancelled during the same period.
  These disruptions can result in delays to both cargo collection and delivery. While we receive advance notice in some cases, many operational decisions are made at short notice. Please be assured that we are committed to keeping you informed of any developments affecting your shipments as they arise.

That’s a Wrap! The 2024-2025 BMSB Season Has Finally Come to an End.

Second Protocol for Free Trade Agreement Comes into Effect

A much needed revamp of the 2009 AANZFTA (Association of Southeast Asian Nations(ASEAN), Australia and New Zealand Free Trade Agreement) came into effect last month on the 21st April.

The Second Protocol modernizes AANZFTA to reflect contemporary trade practices and to strengthen economic ties between ASEAN, Australia, and New Zealand, further reducing trade barriers and boosting trade.

Notable improvements include:​

• Trade Facilitation: Simplified customs procedures, such as expedited clearance for perishable goods within six hours, and standardized rules for service providers and investors.​
• Rules of Origin: Updated provisions to support modern supply chain practices, including direct consignment and third-party invoicing.
• Digital Trade: New commitments on electronic commerce, promoting paperless trading and the adoption of digital technologies.​
• Inclusive and Sustainable Trade: Introduction of cooperation frameworks on environmental issues, labor standards, and women's economic empowerment.
• Crisis Response: Measures to facilitate trade in essential goods during humanitarian crises, enhancing supply chain resilience.

These enhancements aim to ensure that AANZFTA remains a high-quality, fit-for-purpose agreement that delivers tangible benefits for businesses and strengthens strategic links in the region.​

Source: New Zealand Foreign Affairs & Trade. - www.mfat.govt.nz

Strikes in Belgium Cause Congestion

Tuesday the 29th April marked the fourth strike in the country within the past few months. Union workers from both private and public sectors protested against the Federal Government’s recent budget cuts which included pension reforms, a reduction in unemployment benefits and budget cuts.

As a result, 100 ocean-going vessels and 300-500 inland vessels were unable to enter or depart the port.

The port authority warned of substantial economic losses, estimating millions of euros in potential damage and a recovery period of a minimum 1-2 days.

Operations resumed on the 30th April. Despite the backlog the ports have now managed to clear much of the workload. Normal operations continue however many shipments bound for New Zealand will no doubt be delayed once they reach an already congested tranship port.

Hopes Diminish for Carriers Eyeing up Return to Suez Canal and Red Sea

Hopes for a return to trade routes through the Suez Canal and Red Sea have been further diminished as the Houthi militia has renewed its threats against commercial shipping in the region.

In a recent statement, the militia announced sanctions on 15 companies, including Boeing, and warned of secondary sanctions against any third-party entities engaged with those listed—such as shipping lines transporting their goods. These renewed threats have significantly heightened the risks associated with transiting the Red Sea, rendering the route unsafe for commercial maritime operations at this time.