U.S. Tariff Developments

As the situation in the Middle East continues to evolve, carriers are now starting to implement Emergency Bunker (Fuel) Surcharges. CMA CGM, ANL, ONE, Maersk, and Hapag Lloyd have all issued notices of EBS charges to take effect over the coming weeks. As an indication: Maersk has landed on US$200/20' and US$400/40' for dry containers, and US$300/20' and US$600/40' for reefer containers, to take effect from 25th March. CMA CGM has landed on US$150/20' and US$300/40' for dry containers, and US$180/20' and US$360/40' for reefer containers, to take effect from 16th March. ONE has landed on US$160/20' and US$320/40' for dry containers, and US$210/20' and US$420/40' for reefer containers, to take effect from 24th March. Please note these surcharges will apply in addition to any current quotes where applicable. We will endeavour to include these in quotes going forward where possible. Fuel Adjustment Factor (FAF) for domestic carriers has additionally spiked. Carriers historically have adjusted FAF monthly to account for the movement of domestic fuel prices, but the uncertainty caused by the war in the Middle East has sparked many to move to a week-by-week adjustment. We will continue to monitor this and apply accordingly. If you have any questions or concerns, please reach out to the Hobbs Global Team!

With Easter and ANZAC fast approaching, we'd like to advise of our operational hours during these time periods. Good Friday, 3rd April - Easter Monday, 6th April - Hobbs Global will be closed. Tuesday, 7th April - Normal Operations to Resume. ANZAC Day Observed - Monday, 27th April - Hobbs Global will be closed. Please ensure all shipments, clearances, orders and other requirements etc are advised well before these dates to allow for sufficient time to organise accordingly. As always, please reach out to the Hobbs Global Team if you have any questions or concerns.

Previously advised parts of the central Middle Eastern air corridor remain largely closed as war continues through the Middle East. Tel Aviv, Damascus, Kuwait, Bahrain, Baghdad, Doha Tehran are all affected, as Qatar Airways, Etihad and Emirates continue with embargos in place. Many planes are at this stage still locked out of returning to the Middle East and grounded at airports around the world as the situation continues to develop. Global capacity is starting to feel the flow-on effect of the closed airspace through the Middle East, with alternative routing attempting to absorb the pressure. Please continue to expect delays as the airfreight and seafreight routing challenges continue to evolve. MFAT announced last week that exports to the Persian Gulf represent 3% of New Zealand's total exports. While not considered high, these are dominated by dairy into the UAE and Saudi Arabia; key markets for our whole milk powder and butter products. 22% of New Zealand's fertiliser is additionally imported from the region. As a result of the ongoing struggles to export oil through the Strait of Hormuz, fuel prices are starting to become affected on New Zealand shores. While New Zealand doesn't directly import crude oil from the Gulf region, Asian countries which we import refined product from have high dependencies on the Middle Eastern oil supply. We've had notice in the last few days of diesel prices expecting to jump by 40+ cents per litre; these have already increased by 20.6 cents or 11% in the last 28 days. We expect higher Bulker (fuel) costs to follow suit as shipping lines look to recover costs associated with new routing as well as their increasing fuel costs. If you have any questions, please reach out to the Hobbs Global Team.