The delays are taking more time than initially expected bringing some ports almost to the verge of collapse while others are still trying to cope. Will the ease at Ningbo bring the change or is it too late?
West Coast ports are barely coping – no sooner than summer peak season approached, shippers are already bracing up for Christmas. If before the Port of LA had only expected to max out, it seems like it is already reaching its peak. Although experts predict volumes to fall back to 880,000 TEUs in September, the collapse of exports from Los Angeles continues. The community is alarmed that if the trans-Pacific shipping system maxes out soon, some Christmas retail sales could be at risk. Moreover, it is the empty containers that remain the port’s highest export commodity. As a result, with exports from China and the rest of Asia rising substantially, it has led to allegations of carriers breaking contracts with US exporters.
Major delays are vigorously taking over the sector. Those in North Europe were bad enough, but now the congestion in China has severely affected the overall state pushing it to the verge of disaster worldwide. Recently Philippine Port Authority has warned local importers and exporters to prepare for more challenges. The data confirms that the average voyage delay days had tripled in the first half of this year. China’s Golden Week Holidays adds up to the pressure forcing shippers for the already mentioned struggle of blank sailing. The tactic is to tighten space on vessels by skipping ports or even entire routes owing to lower demand after shut down and thus further push the rates higher. Although it has been announced that the port authority in Ningbo is planning a phased resumption of services, the congestion has spilled beyond China’s port so the aftermaths are still going to cause significant damage.
The peak season that has already brought enough trouble, has encouraged big conglomerates to take matters into their hands. Walmart is planning to charter ships rather than pay sky-high rates to global liners for shipments that tend to arrive late. It is following the example of Home Depot that earlier took a similar move.
Apart from the obvious pressure that the crisis has caused to the ports, without a doubt, it has revealed the pain points of the industry and the urgent need for an infrastructure upgrade. For example, Taiwan has joined the list of countries planning to invest in their ports. Seven ports are to be rejuvenated under a US$1.37bn plan by the Ministry of Transport and Communications.
With the demand for road transport and customized logistics continuing to grow, DHL is on its way to build momentum by constructing a new road transshipment facility near Frankfurt. The previous capacities no longer serve the needs and besides, the road freight is significantly cheaper and generates fewer emissions than airfreight, which makes it a perfect alternative for investments.
When discussing the positive impact of green development, it is important not to omit the question of the cost that in the majority of cases can become the deciding factor of the future strategic steps. The ambition plan to achieve a 55 % reduction in emissions is a good reason to accelerate the leveling of external costs for all modes of transport. Once again, experts second that rail is part of the solution to the current environmental problem. While it all seems promising, it is still a big question whether the maritime industry is ready to make such a drastic shift. Let’s take the UK – yes, the rail network investment has increased significantly in the past three years, but the obviously greater funding for the road network points to a much bigger swing still required.
Meanwhile, the authority of the Port of Valencia is planning to invest $280 million to improve rail access and infrastructure as more than 2,000 trains have passed through it.
However, the development of rail is also subject to political factors. The destiny of China-Lithuania trains has become a mystery as it is unclear if the cooperation will be suspended or not due to Lithuania and Taiwan announcing their intention to strengthen their bonds. No matter the outcome, the volumes between Lithuania and China are so insignificant that the impact will be minor even if they decrease.
To strengthen its ocean freight services DPDHL is fully acquiring Hillebrand. The deal aims to include additional services within the comprehensive range of products.
As France implements an EU directive limiting cross-border load weights to 40 tonnes, hauliers express their concerns.The move can cause the issues of weights and dimensions to come up at the commission.
Australian shippers are in the same boat with other players dealing with the consequence of the capacity squeeze – container detention costs imposed by shipping lines. On top of that, with port congestion rife in Singapore, Australian export cargo has suffered long delays.
The recent opening of its largest container depot in Indonesia has become a real breakthrough for the CMA CGM Group. Given its close proximity to the neighboring industrial warehouses, travel time and distance between the facilities are significantly reduced which makes the facility extremely efficient.
Владимир Корчанов назначен врио руководителя ВМТП
Наблюдательный совет ВМТП 17 августа одобрил досрочное расторжение трудового договора с гендиректором порта Романом Кухаруком
Руководитель морского дивизиона Транспортной группы FESCO Владимир Корчанов с 19 августа 2021 года назначен временным исполняющим обязанности руководителя ПАО «Владивостокский морской торговый порт» (ВМТП, входит в Группу FESCO). Соответствующее решение принял Наблюдательный совет ВМТП. Об этом сообщила пресс-служба Группы.
«17 августа 2021 года Наблюдательный совет ВМТП одобрил досрочное расторжение трудового договора с генеральным директором порта Романом Кухаруком и принял решение назначить временно исполняющим обязанности руководителя ВМТП Владимира Корчанова, который в настоящее время возглавляет морской дивизион Группы. В составе обновленной команды FESCO Роман Кухарук показал себя как профессиональный руководитель и антикризисный менеджер, непосредственно участвующий в формировании и реализации новой стратегии развития предприятия. Он успешно справился с поставленными задачами: ВМТП работает стабильно и продолжает занимать лидирующие позиции на рынке, коллектив сохранен и демонстрирует высокие результаты, более тесная интеграция со структурами FESCO уже благоприятно сказалась на операционных и финансовых показателях. Мы благодарим Романа Виленовича за проделанную работу и желаем удачи в его новых самостоятельных проектах», – отметил председатель совета директоров FESCO Андрей Северилов.
Владимир Корчанов проработал в FESCO более 30 лет, пройдя путь от помощника капитана до первого вице-президента Группы. Окончил Морской государственный университет имени адмирала Г.И. Невельского по специальности «Инженер-судоводитель». Имеет различные ведомственные награды.
Транспортная группа FESCO – одна из крупнейших частных транспортно-логистических компаний России с активами в сфере портового, железнодорожного и интегрированного логистического бизнеса. Диверсифицированный портфель активов FESCO позволяет осуществлять доставку грузов «от двери до двери» и контролировать все этапы интермодальной транспортной цепочки. Группе принадлежат «Владивостокский морской торговый порт», железнодорожный оператор «Трансгарант», оператор фитинговых платформ «Русская тройка». FESCO оперирует сухими терминальными комплексами в Новосибирске, Хабаровске и Томске. В управлении Группы находится около 50 тыс. контейнеров, парк фитинговых платформ составляет более 7 тыс. единиц. Флот Группы включает 18 транспортных судов, которые преимущественно осуществляют перевозки на собственных морских линиях.
Наблюдательный совет ВМТП 17 августа одобрил досрочное расторжение трудового договора с гендиректором порта Романом Кухаруком
Фото предоставлено
пресс-службой ПАО «ВМТП»
Руководитель морского дивизиона Транспортной группы FESCO Владимир Корчанов с 19 августа 2021 года назначен временным исполняющим обязанности руководителя ПАО «Владивостокский морской торговый порт» (ВМТП, входит в Группу FESCO). Соответствующее решение принял Наблюдательный совет ВМТП. Об этом сообщила пресс-служба Группы.
It seems like striving to become Jack of all trades will not be a winning strategy. Perhaps, on the road to recovery industry players should remain in their sandboxes and focus on what they do best.
The global nature of the crisis has clearly demonstrated how important each gear, each player is, therefore, it is no wonder that experts call for every actor in the freight industry to focus on their specialized field. However, Maersk has long had a different approach – it tries to do both, being carrier and forwarder under one brand, which raises concerns regarding the efficiency of this strategy of such players as DB Schenker. The latter cut the ties with Maersk in favor of its stable cooperation with CMA CGM. Some experts also believe that freight forwarders should refrain from chartering ships for their own cargoes, as vessels could get much better utilized by the ocean carriers.
Meanwhile, the situation is getting more intense since it has become clear that ocean carriers are considering a new round of blank sailings from Asia around China’s national holidays. Usually during this time carriers cut capacity to mitigate the erosion of rates, but taking into account the current context, there has to be some network adjustments. Moreover, there has been no sign of any easing of the record-high rates and the recent announcement of the new ones only serves as proof. Hapag-Lloyd will apply another tariff rate increase of US$500 from to the Mediterranean. MSC will push up its FAK rates for the trade between European ports in Antwerp, while CMA CGM will raise its FAK rates from North Europe and so on.
The battle against shipping lines monopolies has relocated to another Asian country. This time, it is Indian exporters who are advocating for the Competition Commission of India to investigate possible cartelization. The Philippines mirror the situation where carriers are under the spotlight for their pricing ploys.
As Ningbo-Zhoushan port remains closed for sixth days straight, and overall pressure is not expected to ease up, rising delays continue to undermine global supply chains. The problem is that the time variances are significantly differentbetween the US West Coast vs East Coast ports, which makes it incredibly difficult to adjust.
Capacity shortages have been the leitmotif of different sectors including road where they have driven up European road freight spot prices close to a three-year high, which creates inflationary pressure on the economy. The new updates have shown that road freight capacity in automotive fell by 8.3% in July and was 22.9% below the level of the same period last year.
Another horseman of the crisis, equipment shortages, has forced Yang Ming to follow its liner peers in ordering more containers to tide over the challenge.
The heat rises in North America’s direction and two major Canadian railways eager to acquire Kansas City Southern are in charge of it. Shippers will get the biggest advantage since the initiative connecting more of North America on one line and providing access to the entire Gulf, East and West coasts will enlarge the opportunities for trade.
Cancelations are not only the headache of the Chinese shipping sector, but of the airfreight too. Meanwhile, freight rates from China are already on the rise. Prices to the US had increased by $1.5-$3/kg, while rates to Europe were up $0.7-$1.5/kg.
European intermodal services are still dealing with the aftereffects of the German strikes. The key to a faster solution is a negotiable offer to the GDL that would include an investment of the taxpayers’ money in railway workers. However, not everything is so gloomy above EU rail – The North Sea – Mediterranean rail freight corridor is open again for trains. Moreover, Hupac will add a new terminal to its network. Duisburg Hohenbudberg will be the company’s new stop on the way to Poland.
Although it is difficult to imagine any region that would demonstrate any kind of stability, the New Silk Road comes into the spotlight. Despite the growing traffic, (the operator expects a 20% increase this year), it is aligned with the expansions of the terminals and emergence of the new hubs and additional capabilities.
Challenging times require joint efforts, so US President Joe Biden is planning to bring stakeholders together to alleviate the congestion at West Coast ports. They will look to repair and maintain backlogs, reduce congestion and emissions near ports and airports.
The green agenda remains on the list of priorities for development with Mammut making an ambitious commitment to transit to zero-emissions shipping vessels by 2030. It is a call for other companies to brace up as those with the most efficient strategy will not only improve the environment but most important become more competitive.
DP is about to revolutionize how ports and terminals operate with the BoxBay solution. Operating costs are lower than anticipated, with energy costs better by 29%. It will increase the over-the-quay-wall handling volumes and container storage capacity.
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