Burnard Bulletin - August

Brown Marmorated Stink Bug (BMSB) Season Commences for Imports

The Brown Marmorated Stink bug (BMSB) season is upon us again. This applies to those risk goods from specific BMSB countries (Europe, Canada, USA with high-risk focus on Italy & Japan)

This applies to all vessels departing from the “Schedule 3 – at risk countries” with a departure date of 01 Sept 2026 through to an arrival date up to/on 30 April 2027.

Risk goods such as vehicles, machinery, and parts can provide ideal sites for overwintering, but BMSB may contaminate other goods.

To help reduce the chance of the stink bug contaminating your goods before they are exported, you can ask your supplier to:

• Reduce storage times. Where possible, ask your supplier to limit the amount of time goods are stored in a BMSB country.
• Keep goods segregated by distance of untreated goods or by using chemicals.

https://www.mpi.govt.nz/import/vehicles-machinery-parts/brown-marmorated-stink-bug-requirements-for-importers

Why is my Shipment Arriving Late?

Delays across many European and North & SE Asian ports continue to affect supply chains, with a combination of factors contributing to congestion and longer transit times. These include the continued disruption in the Red Sea, typhoon season (The 13th typhoon of the season just hit Shanghai and Ningbo), trucking network issues, port congestion, winter weather conditions in the South Pacific, vessel berthing constraints and local diesel shortages.

1. The Ongoing Impact of the Red Sea Crisis

The continued disruption in the Red Sea remains a significant contributor to global shipping delays.

• Diversions around the Cape of Good Hope: Vessels avoiding the Red Sea and Suez Canal are being forced to sail around the Cape of Good Hope, adding approximately 10-18 days to transit times. This affects NZ goods coming from Europe. Not so much China.
• Slow steaming: Higher fuel consumption and increased operating costs have encouraged carriers to reduce vessel speeds, a practice known as slow steaming. This can add a further 1-3 days to transit times.

2. Delays at Asian Origin Ports

Congestion at origin ports across Asia are also adding pressure to already stretched schedules.

• Typhoon season: The Northwest Pacific typhoon season typically runs from July through August. As mentioned in the opening paragraph, Shanghai and Ningbo just got hit with the 13th typhoon of the season. Major ports including Shanghai, Shenzhen and Ningbo may suspend vessel and terminal operations when severe weather systems approach, creating backlogs that can take days to clear.
• Blank sailings and vessel bunching: When sailings are cancelled or vessels arrive behind schedule, cargo is often rolled onto subsequent services. This can result in thousands of additional containers being concentrated onto the next available vessel, creating tight capacity and increasing the likelihood of further cargo being rolled.
• Terminal congestion: The accumulation of containers awaiting departure places additional pressure on terminal storage capacity. As yard space becomes constrained, container handling and truck movements become less efficient, further extending operational times.

3. Delays Continue After Vessel Arrival

The disruption does not necessarily end once a vessel reaches port.

• Berthing congestion: When several delayed vessels arrive at approximately the same time, terminals can face significant berthing queues, with vessels waiting 1-2 days before a berth becomes available. High yard utilisation can also significantly reduce container discharge efficiency.
• Inland transport constraints: Local diesel shortages can restrict trucking capacity, preventing discharged containers from being collected promptly. This causes containers to remain in the terminal for longer, adding further pressure to already congested yards.

4. Severe Winter Weather in the Southern Pacific

The New Zealand trade lane crosses the Southern Pacific, where vessels can encounter persistent storms and rough seas during the Southern Hemisphere winter.

Adverse weather conditions can require vessels to reduce speed or alter their routes to seek safer, more sheltered waters. Rough seas can also increase the risk of mechanical issues, potentially resulting in additional time being required for repairs.

The result is a combination of factors occurring across the entire supply chain - from vessel diversions and blank sailings through to congestion at Chinese terminals and adverse weather across the Southern Pacific. Together, these pressures continue to contribute to longer and less predictable transit times for cargo bound for New Zealand.

Record Lows of the European Rhine and Danube Rivers put Pressure on Transport

The ongoing drought across Europe is increasingly disrupting transportation flows, with critically low water levels on main European transportation rivers creating significant challenges for inland freight movements.

Water levels at Kaub, a key bottleneck for commercial shipping on the Rhine, fell to record lows last week. The Rhine is one of Europe’s longest and most strategically important waterways, stretching approximately 1,230 kilometres from the Swiss Alps to the North Sea. In Germany, it is a vital economic artery, carrying significant volumes of freight between major industrial centres and European ports.

Exceptionally low water levels are substantially restricting vessel and barge capacity, with some operators currently limited to loading just one-third of their normal tonnage to safely navigate the reduced depths. With considerably less cargo able to move on each voyage, freight rates have increased significantly as operators seek to offset the reduced capacity. Sections of the river are becoming increasingly difficult to navigate, with exposed sandbanks and shallow tributaries further limiting available routes. In some places the river is now completely impassable, and cargo is offloaded and transported over road before being re-loaded further up river.

As a result, freight operators are increasingly turning to alternative modes of transport, particularly rail and, where practical, road freight. However, shifting additional volumes onto these networks is creating its own challenges. Increased demand could lead to congestion, equipment shortages and further upward pressure on inland transport rates.

For shippers moving cargo through Europe, the situation highlights the growing vulnerability of inland transport networks to extreme weather conditions and the importance of allowing additional flexibility when planning European freight movements.