{"id":5858,"date":"2021-12-09T14:39:52","date_gmt":"2021-12-09T13:39:52","guid":{"rendered":"https:\/\/shipex.be\/post-5842\/"},"modified":"2021-12-15T13:45:04","modified_gmt":"2021-12-15T12:45:04","slug":"port-congestion-around-the-world-continues-to-cause-big-problems","status":"publish","type":"post","link":"https:\/\/shipex.be\/en\/port-congestion-around-the-world-continues-to-cause-big-problems\/","title":{"rendered":"Port congestion around the world continues to cause big problems."},"content":{"rendered":"\r\n<p><img loading=\"lazy\" decoding=\"async\" title=\"pexels-julius-silver-753331\" src=\"https:\/\/shipex.be\/wp-content\/uploads\/2021\/12\/pexels-julius-silver-753331.jpg\" alt=\"pexels-julius-silver-753331\" width=\"2050\" height=\"1381\" \/><\/p>\r\n<p><strong>MARKET UPDATE\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong>December 9, 2021<\/p>\r\n<p><strong>PORT CONGESTION AROUND THE WORLD CONTINUES TO CAUSE BIG PROBLEMS<\/strong><\/p>\r\n<p>Dear customer,<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>Worldwide maritime transport is still <u>under heavy pressure<\/u>, due to both congestion problems at many container terminals worldwide and &#8211; as a result &#8211; serious delays of containerships.<\/p>\r\n<p>&nbsp;<\/p>\r\n<p><strong>CONGESTION PROBLEMS<\/strong><br \/><em>Please find an overview of some of the local problems below.<\/em><\/p>\r\n<p>&nbsp;<\/p>\r\n<ul>\r\n<li>In<strong> Europe<\/strong>, several ports cope with huge<strong> congestion problems<\/strong>. In November, the Port of Rotterdam communicated that the average dwell time of a container increased from 4 to 7 days. According to the port authorities &#8220;\u2026that means nearly a reduction by <em>half<\/em> of the port&#8217;s capacity.&#8221;<\/li>\r\n<li>The CEO of DP World Antwerp told <em>ShippingWatch <\/em>that the usual buffer that is needed to ensure a flow in the terminal, is almost completely gone.<\/li>\r\n<li>In France, carrier CMA CGM is suspending calls in Le Havre on their Europe-West Coast South America service, referring to &#8220;Heavy congestion and a lack of productivity&#8221;.<\/li>\r\n<li>The situation in the UK also remains difficult. Maersk has suspended her direct calls to Felixstowe on her AE7 service from Asia due to &#8220;exceptional waiting times&#8221; in the port, and this will continue until March 2022.<\/li>\r\n<li>The problems at the west coast ports of the <strong>United States<\/strong> are widely known. However, the east coast is also experiencing congestion problems. Several carriers have decided to remove Savannah from their port calls (e.g. CMA&#8217;s &#8216;Liberty Bridge&#8217; service) until further notice.<\/li>\r\n<li>In <strong>Asia<\/strong>, the port of Singapore is struggling with structural congestion. This has a big impact on shipments to South-East Asia. Being the world&#8217;s busiest transhipment hub, Singapore has opened a mega port warehouse (Tuas) ahead of schedule. &#8220;The global cascading effect on port congestion is playing havoc with intra-Asia trade lanes, with large amounts of cargo stuck at transhipment hubs in the south-east&#8221;, according to <em>The Loadstar<\/em>. A lot of cargo is being &#8216;dumped&#8217; in Singapore.<\/li>\r\n<\/ul>\r\n<p>&nbsp;<\/p>\r\n<p><strong>\u00a0<\/strong><strong>DELAYS OF CONTAINERSHIPS <\/strong><\/p>\r\n<p>The terminal congestion worldwide inevitably causes serious <strong>delays<\/strong> for container ships\/shipping lines.<\/p>\r\n<p>According to a study by <em>Sea-Intelligence<\/em> \u00a014 % of global vessel capacity, equal to the size of the entire fleet of CMA CGM, is lost due to vessel delays. We&#8217;ve noticed a lot of last-minute changes of sailing schedules.<\/p>\r\n<p>&nbsp;<\/p>\r\n<p><img loading=\"lazy\" decoding=\"async\" title=\"chuttersnap-Q4bmoSPJM18-unsplash\" src=\"https:\/\/shipex.be\/wp-content\/uploads\/2021\/12\/chuttersnap-Q4bmoSPJM18-unsplash-scaled.jpg\" alt=\"chuttersnap-Q4bmoSPJM18-unsplash\" width=\"2560\" height=\"1707\" \/><\/p>\r\n<p>This has a big impact on the <strong>loading reality<\/strong> of all shippers. For example, almost one fourth of all planned port calls by over the past five months have been canceled. The three major alliances have skipped a total of 383 dockings in Northern Europe, following the massive overload on container terminals, writes <em>Alphaliner<\/em>. It&#8217;s mainly the smaller ports, including Wilhelmshaven, Bremerhaven, Le Havre and Zeebrugge, that shipowners tend to skip, according to the analyst firm.<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>Based on the analysis, there are <em>three reasons <\/em>that some ports lose their calls. Firstly, shipowners are skipping certain ports on specific routes in order to limit delays. Another reason is an attempt to &#8220;restore schedule reliability&#8221; by temporarily dropping a port for a certain number of weeks. Finally, there is currently a large amount of blank sailings ongoing, which is due to some shipowners docking regularly in Europe, but it also leads to longer roundtrip voyages.<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>As for the s<strong>chedule reliability<\/strong> of the shipping lines, this remains at a <em>historical low<\/em>. The latest &#8216;Global Liner Performance&#8217; report shows a schedule reliability of 34 % in October 2021. Four carriers had a schedule reliability of under 20%, with Evergreen being the worst performer (13,4 %).<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>And of course, the terminal congestion has an <strong>impact on inland transport<\/strong>. Currently, negotiations with transport companies regarding the trucking rates for Q1 2022 are in full swing and it looks like most transport companies will implement an increase of around 10% as of January 1.<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>The major problem remains the <em>lack of sufficient truck drivers<\/em>, which leaves capacity (chassis) underutilized and transport companies in a stronger position in price negotiations. Some parties even don&#8217;t accept new assignments for inland haulage anymore. For example, CMA CGM Germany recently informed her customers that they &#8220;will not be able to confirm any new requests for carrier haulage until the end of 2021&#8221;, referring to the &#8220;extreme circumstances&#8221;.<\/p>\r\n<p>&nbsp;<\/p>\r\n<p><strong>In the end, importers and exporters are the big victims<\/strong>. &#8220;The Great Shipping Crisis of 2021 has taken many casualties as shippers, trapped between record rates and very poor service levels, struggled to fulfill delivery deadlines&#8221;, says the Global Shippers Forum. According to the UN (&#8216;Review of Maritime Transport 2021&#8217; published on 11-18-2021 by UNCTAD), the impact of the higher maritime trade costs will not only weigh on exports and imports but could also undermine a recovery in global manufacturing.<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>In the meantime, container shipping companies have reported <em>record profitability<\/em> for the third quarter. The industry has doubled its operating profit during the first three quarters of this year compared to the entire 10-year period of 2010-2020, acc. to Alan Murphy, CEO of Sea-Intelligence.<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p><strong>THE SHIPEX TEAM<\/strong><\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>MARKET UPDATE\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 December 9, 2021 PORT CONGESTION AROUND THE WORLD CONTINUES TO CAUSE BIG PROBLEMS Dear customer, &nbsp; Worldwide maritime transport is still under heavy pressure, due to both congestion problems at many container terminals worldwide and &#8211; as a result &#8211; serious delays of containerships. &nbsp; CONGESTION PROBLEMSPlease find an overview of [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":5846,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[5],"tags":[],"class_list":["post-5858","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - 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