Burnard Bulletin - May

Port Check

Europe and Asia. Delays persist as shipping lines struggle to balance equipment and maintain a tight schedule. Reefer containers out of Asia specifically are challenging to obtain in a timely manner. We encourage you to contact your Customer Care representative and place orders as early as possible to help anticipate and mitigate these delays.

Transhipment ports of Singapore and Port Klang. Transhipment ports are continuing to see delays of 2-3 weeks.

New Zealand Exports. As we continue on with the middle of peak export season, space availability continues to be a challenge. For bookings with significant volumes, we recommend booking out as far as possible in order to obtain space.

The Middle East. Cargo to and from the Middle East region, please talk with our Export or Sales teams for advice for alternative ports if applicable/available and pricing.

The Expanding Impacts of Middle East Tensions

The ongoing tensions involving Iran have resulted in one of the most significant disruptions to global fuel and oil supply in recent history, removing millions of barrels per day from the market. As a result, crude prices have risen sharply, one of New Zealand’s benchmarks, Brent Crude, climbing from approximately USD 70.00 per barrel in February to a peak exceeding USD 118.00. Should the war continue, Saudi officials project this amount to rise to around USD 180.00 by the end of May.

Shipping lines continue to announce upcoming increases to FAF, BAF/BUC, Emergency Surcharges and even General Rate Increases (GRI) to freight. Amounts are inconsistent across shipping lines but appear to be overall stabilising having risen approximately 35-40% since March. These vary from carrier to carrier and port to port as each entity grapples to forecast demand and maintain supply across a broken supply chain.

New Zealand’s physical fuel supply remains stable, supported by diversified sourcing strategies and effective stock management. While New Zealand does not rely directly on Middle Eastern crude, it is dependent on refined fuel imports from Asia—markets that are heavily influenced by Gulf oil supply. As such, global price volatility continues to flow through to the NZ market.

Beyond fuel, the conflict is also reshaping global cargo flows. Disruptions across key transit points continue to create congestion and inefficiencies, with equipment becoming delayed or mispositioned. This is contributing to an increase in blank sailings and equipment shortages.

Implications for New Zealand:

• Sustained upward pressure on surcharges, including Bunker Adjustment Factors (BAF), Emergency Bunker Surcharges (EBS), and War Risk premiums, alongside higher domestic fuel costs.
• Longer and less predictable transit times.
• Changes to routings.
• Tighter vessel capacity into New Zealand, with an increased likelihood of container availability constraints, blank sailings and rolled cargo.

Given the current conditions, we recommend customers take a proactive approach by allowing for additional lead times, reviewing stock buffer levels, and maintaining flexibility in ordering and scheduling.

MSC to Withdrawal Direct Service Asia to NZ Amongst Service Reshuffle

Shipping Line MSC has announced the withdrawal of its direct Wallaby Service connecting Asia to New Zealand via Australia, with no further bookings being accepted on the service effective immediately.

The change will also impact export consignments from New Zealand to Asia, as the service previously supported both import and export trade flows across the routing.

Following the withdrawal of the Wallaby Service, MSC has confirmed the introduction of a new “Southern Loop” service, which will operate exclusively between Australia and New Zealand.

For customers that rely on this direct service, please contact your customer care representative to discuss alternative routes or shipping lines.