Shipping
Brazil
The Customs Auditors of the Brazilian Customs Service are currently on a partial strike. This is causing noticeable clearance delays, especially for import shipments that are being routed through the Red Channel. Currently, brokers are estimating delays of around 30 days for Red Channel shipments.
There are two main types of customs inspection in Brazil:
- Green Channel: The system automatically clears the shipment after a scanner verification, with no human intervention required.
- Red Channel: The system and the scanner flag the shipment as requiring physical inspection by a Customs Auditor before clearance.
Which channel a shipment is processed through is determined ‘randomly’ by the customs system, with reference to the following key criteria:
- Origin and destination of the shipment
- Packing list and documents
- Reputation of the moving company
- Timing of the submission of documents to Customs
Argentina
The country has experienced several Customs strikes over the past three months, prompted by the government reforms within the public sector which involve structural changes, a reorganisation of public offices, and the non-renewal of many contracts. As a result of the strikes, there are continuing delays in the clearance process, both at the documentation approval stage and during physical inspections at bonded warehouses.
K2’s partners are monitoring developments daily. They are hopeful that they will soon start seeing a reduction in the delays; however, should this not transpire, they warn of a potential shortage of vessels as we head through the busy months of June and July.
Indonesia
There is currently a high volume of containers at the Port of Palembang and the ports in Sumatra. Consequently, customs clearance is taking longer than usual – 21 days on average - and moving crews have a very tight schedule for packing and delivery.
The Red Sea and the Suez Canal
- The ongoing situation in the Red Sea and the Suez Canal continues to impact shipping in the following key ways:
- Longer routes - via the Cape of Good Hope
- Low container availability
- Increased rates - freight, bunker, special levies, fuel surcharges - and increased marine insurance premiums.
- Increased transit times. In some instances, transit times have doubled.
- Deliveries to some ports have been terminated
- Some ports have been excluded from routes
- Congestion at transshipment ports due to equipment availability
- Increased traffic at main ports due to rerouted vessels causing congestion as well as challenges due to infrastructure limitations
- Some shipping lines cancelling routings to certain ports whilst shipments are underway
South Africa
Ongoing threats of port strikes are causing congestion and vessel berthing delays, leading to extended lead times for both imports and exports. These are currently only slight extensions: Cape Town up to around 5 days, Durban around 2 - 3 days, and Port Elizabeth around 3 days. These delays are primarily driven by labour disputes involving Transnet and the United National Transport Union (UNTU) - negotiations are ongoing.