Space and Equipment issues are continuing to frustrate Exporters, Carriers & Importers from China based ports with little sign of ending before Chinese New Year 2021.
Compounded by the current Global Covid situation and significant reductions in Airfreight capacities due to limited flights the demand for Seafreight services exceeds supply.
All carriers have confirmed they’re unable to offer guaranteed space based on priority programmes, with ANL announcing today the suspension of Sea Priority Go due to insufficient equipment to fulfil demand.
One of the driving factors for the equipment shortages is the inability of carriers to reposition equipment fast enough to meet the demand of export requirements particularly in Shanghai.
Jeremy Nixon, CEO of Ocean Network Express (ONE), the world’s sixth-largest container line exclaimed, “The ships are 100% full. The containers are 100% full. You can’t get a container built. You can’t pick up a ship from the spot market. The whole container-shipping cycle is at absolutely full pelt,”. October’s ocean container market is “unbelievable,” he said during an International Chamber of Shipping (ICS) virtual event last week.
Nixon's comments confirm many analysts' thoughts that volumes would relent after the China Golden Week holiday. However, it hasn’t happened yet, and the Global market is still at its peak. The extended peak season came after the trade initially took a plunge with the onset of the COVID-19, yet consumer demand has remained high following the reopening of many economies.
Even with forward planning based on projected volumes the backlog of cargo either delayed due to space, or awaiting equipment and loading is continuing to cause delays.
China is the most affected by the current environment however other major trade lanes, North/South East Asia and Europe are also struggling with the same issues.
Major Port hubs, Singapore & Port Klang are experiencing 3-5 week delays in transhipment to Southbound cargo.
India’s worsening container shortage, and congestion in Columbo has exporters call for tighter regulation of freight rates with the Engineering Export Promotion Council of India (EEPC) calling on the Government to set up a regulator to rein-in what it claims were “monopolistic” practices of shipping lines.
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Keeping you updated,
BRi Customer Solutions TeamBack to News Page