Post by: Burnard Intl.

Port Check

Asia. Main ports in China are booked out, with some vessels full until the middle to end of August. Empty equipment is hard to come by, and freight costs have tripled since April.

Super typhoon Bavi has now passed, but led to the closure of Shanghai, Ningbo and Qingdao ports, contributing to delays of nearly 2 million TEU container capacity. Due to these recent events and heavy congestion, Vessel XIN ZHANG ZHOU V.078S that was due to depart Shanghai port in early August, will now omit the port to mitigate further delays on it’s own network. This omission will no doubt put further space pressure on subsequent sailings.

We recommend booking as far in advance as possible in order to catch the required vessel.

Europe. Currently everything appears to be flowing smoothly with only the odd delay here and there, but nothing consistent.

Transhipment ports of Singapore and Port Klang. Transhipment ports are continuing to see delays of 1-3 weeks.

New Zealand Exports. Unfortunately, there has been little change this month, with conditions remaining largely the same. Export capacity constraints from New Zealand have eased; however, securing space remains challenging. A key factor being carriers omitting scheduled port calls in an effort to maintain vessel schedules. While this helps reduce delays across their own network, it often results in cargo being rolled onto subsequent sailings, placing additional pressure on available space and leading once again to fully booked vessels.

The Middle East. With 20% tariffs proposed, then withdrew, a fragile peace agreement signed, then commercial vessels being attacked. It may be some time before we can truly write that ports are open and container carriers are safe to return.

For cargo to and from all Middle East regions, please talk with our Export or Sales teams for advice for alternative ports if applicable/available and pricing.

Peak Season Rate Increases Without Signs of Slowing

Shipping lines continue to adopt an aggressive approach to freight rate increases, with the 7th round of increases announced since April. The latest increases took effect in mid-July, and a further round is scheduled to be implemented on 31 July.

The proposed increases for 31 July currently range between USD700 and USD900 per TEU, on top of the USD400 to USD600 per TEU increases that came into effect on 14 July.

As a result, current freight rates have risen approximately 200-300 percent on levels seen in April.

Reduced services and strong container demand, particularly from China, are at an all-time high, placing pressure on empty equipment availability and vessel space. Some of our main carriers are full multiple weeks in advance from main Chinese ports, leaving limited options except to look toward costlier alternatives. Further compounding the situation, tranship ports are continuing to see regular one to three week delays.

Unfortunately, carriers are directing vessel capacity towards routes with stronger commercial returns, reducing New Zealand's priority for vessel or space allocation.

We strongly encourage customers to:

Check in with Burnard for current freight rates at time of shipping.
Factor in delays and communicate clearly with customers.
Hold more inventory to mitigate the longer wait for new stock.
Prioritise orders with longer lead times and higher margins.

Please note that the figures outlined above apply to General Purpose (GP) equipment only. Rate adjustments for Reefer (RE) and Non-Operating Reefer (NOR) equipment may differ and may be higher or lower depending on the carrier and trade lane.

Burnard DX Locomotive Project

Our latest cargo project involved the export of eight DX Locomotives via charter ship departing Lyttleton Port and heading to Durban.

Introduced between 1972 and 1976, the NZ DX class is a heavy, mainline diesel-electric locomotive built by General Electric (GE) for the New Zealand railway network.

Altogether, 49 powerful locomotives are due to be on sold. Initially serving as the backbone of the North Island Main Trunk (NIMT) before being transferred to the South Island. Where they have spent over 50 years hauling heavy freight, most notably export coal over the challenging Southern Alps.

These first eight are headed to South Africa where they will be refurbished and put back to work.

Planning a project shipment? Our specialist team is here to help.

Contact us at projects@burnard.co.nz to discuss your requirements and discover how we can support your next business project.

World First NZ-Singapore essential supplies agreement

A landmark agreement between New Zealand and Singapore on essential supplies, is now in force following a ceremony in Auckland on 18 July 2026. The Agreement on Trade in Essential Supplies (AOTES) was signed in Singapore on 4 May 2026, witnessed by the Prime Minister Chris Luxon and the Singapore Prime Minister Lawrence Wong.

Under the agreement Singapore guarantees to supply New Zealand with fuel, medicines, and chemicals. In return, New Zealand guarantees to supply Singapore with food, creating certainty for businesses and citizens of both countries.

The AOTES agreement reflects the long-standing and complementary relationship between our economies and the depth of our bilateral Comprehensive Strategic Partnership. Singapore Deputy Prime Minister and Minister for Trade and Industry Hon Gan Kim Yong was present for the ceremony. This world-first agreement reinforces New Zealand’s and Singapore’s commitment to open, rules-based trade and supports the resilience of the supply chains that our businesses rely on every day.

Source: https://www.mfat.govt.nz/

The Fragile Cost of Fuel

The situation in the Middle East continues to evolve, and this section has required several revisions over the past few months. We've reported on escalating conflict driving fuel prices higher, attacks on commercial vessels, disruptions to key shipping lanes, the lifting of blockades, and subsequent peace negotiations.

Most recently, attention shifted to the proposed 20% U.S. tax on vessels transiting the Strait of Hormuz. However, before this month's bulletin could be published, the fragile peace agreement had already collapsed, attacks on vessels resumed, and the proposed transit tax was abandoned. The U.S. administration is now pursuing a broader approach through blanket trade and investment tariffs negotiated directly with Gulf states.

Last month we were celebrating the drop in crude prices, this month the renewed instability has once again placed upward pressure on global oil markets. Brent Crude, a key benchmark influencing New Zealand fuel prices, has increased by approximately 40% over the past three weeks, rising from around US$71 to US$100 per barrel. If these elevated prices persist, the freight industry can expect renewed pressure on bunker fuel costs, air cargo fuel surcharges, and overall transport costs in the weeks ahead.

KiwiRail Block of Line for Lyttelton

KiwiRail Freight and Lyttelton Port Company (LPC) have confirmed a planned Block of Line from 9 August to 16 August 2026, during which all rail services to and from the port will be suspended. The Port will remain open for trucks servicing the Port.

The closure will allow for the replacement of the concrete rail crossing at the port entrance, while Christchurch City Council undertakes essential upgrades to underground infrastructure in the same area. These works are expected to improve the long-term reliability and resilience of the rail network servicing the port.

As rail operations will be unavailable throughout the closure, customers are encouraged to seek alternative transport movements. Time-sensitive cargo should be moved before the closure commences or scheduled for transport once rail services resume to help minimise disruption.

Trump Introduces New Tariff to Target Dozens of Countries

The Trump administration has announced a new tariff measure that will take effect from 12:01am (EDT) on Friday, 24 July. Under the new policy, imports into the United States from many trading partners will be subject to tariffs ranging from 10% to 12.5%. The announcement coincides with the expiry of the 150-day, near-universal 10% tariff introduced earlier this year following the administration's legal challenges over its broader trade tariff programme.

The latest tariffs follow a months-long investigation by the Office of the United States Trade Representative (USTR) into whether trading partners have taken adequate steps to prevent the importation of goods produced using forced labour into their own markets.

Countries that have demonstrated stronger measures to combat the import of goods made with forced labour have qualified for the lower 10% tariff. However, US officials stated they remain unconvinced that a number of countries will effectively eliminate the practice in the near future and have therefore applied the higher 12.5% tariff rate.

Speaking with CNN's Jake Tapper, US Trade Representative Jamieson Greer said

“For over 100 years the United States has had a law on the books prohibiting the import of goods made with forced labor. This is common sense, and we’ve enforced this law to prohibit it. What seems like common sense, I think, to you and me, others haven’t done. In other countries, no one really has these types of laws.

We have gone the world over, frankly, over years and across administrations to try to get other countries to act on this. Finally, we have put our foot down and we have told countries, you need to take action. You need to prohibit the import of goods made with forced labor, and you need to enforce these laws so that we all have a level playing field, and so, we’re taking action to do that.”

New Zealand is tipped to be at the higher rate, following comments from US officials indicating that it’s not doing enough to prevent the importation of goods produced with forced labour into the country.

Burnard Bulletin - July