News & Events

Jump in container moves per port visit causes further congestion: Over 40% of ships at key North American West Coast ports require to anchor before loading or unloading

The average number of containers requiring loading and unloading per ship call at major global gateway ports has jumped during the pandemic, causing further delay and congestion at an already stretched supply chain. According to the latest Port Performance Data by IHS Markit, container call sizes are up between 10% and 70% (vs H1 2019) across major US, Northern European and Asian ports. The average vessel now requires more than 3000 container moves per single call as global trade volume bounces back. At the Port of Long Beach, United States, average call sizes are now more than 70% higher than before the pandemic with terminals dealing with an average of more than 7,000 container moves per call on large ocean-going vessels. In Singapore and Yangshan (Shanghai), the call size increased by 27% and 23% percent respectively over the last two years. Whereas Felixstowe (UK) and Antwerp saw call sizes increase by 18% and 14%. Call sizes had been growing already prior to the pandemic due to increasing vessel sizes and optimization of liner networks. Strongly rebounding and unpredictable demand – as trade volumes recovered sharply from end of 2020 – amplified the trend causing delays at many global ports dealing with intermittent spikes in demand. “The severe operational strain is caused by the surge in cargo volumes coming in much more concentrated loads. This spike in demand is placing heavy stress on ocean and landside operations, increasing yard congestion and cargo dwell times, with knock-on effects on equipment repositioning and intermodal links further fuelling the problem and resulting in sustained congestion at key global gateways.” Turloch Mooney Associate Director, Maritime and Trade at IHS Markit Asian ports can load or unload a container more than twice as fast as their North American counterparts, taking on average 27 seconds compared to 76 […]

News & Events

Jump in container moves per port visit causes further congestion: Over 40% of ships at key North American West Coast ports require to anchor before loading or unloading

The average number of containers requiring loading and unloading per ship call at major global gateway ports has jumped during the pandemic, causing further delay and congestion at an already stretched supply chain. According to the latest Port Performance Data by IHS Markit, container call sizes are up between 10% and 70% (vs H1 2019) across major US, Northern European and Asian ports. The average vessel now requires more than 3000 container moves per single call as global trade volume bounces back. At the Port of Long Beach, United States, average call sizes are now more than 70% higher than before the pandemic with terminals dealing with an average of more than 7,000 container moves per call on large ocean-going vessels. In Singapore and Yangshan (Shanghai), the call size increased by 27% and 23% percent respectively over the last two years. Whereas Felixstowe (UK) and Antwerp saw call sizes increase by 18% and 14%. Call sizes had been growing already prior to the pandemic due to increasing vessel sizes and optimization of liner networks. Strongly rebounding and unpredictable demand – as trade volumes recovered sharply from end of 2020 – amplified the trend causing delays at many global ports dealing with intermittent spikes in demand. “The severe operational strain is caused by the surge in cargo volumes coming in much more concentrated loads. This spike in demand is placing heavy stress on ocean and landside operations, increasing yard congestion and cargo dwell times, with knock-on effects on equipment repositioning and intermodal links further fuelling the problem and resulting in sustained congestion at key global gateways.” Turloch Mooney Associate Director, Maritime and Trade at IHS Markit Asian ports can load or unload a container more than twice as fast as their North American counterparts, taking on average 27 seconds compared to 76 […]

Demand for Dry Bulk Carriers Remains Strong

Ship owners have kept their buying interest for dry bulk carriers over the course of the past week. In its latest weekly report, shipbroker Allied Shipbroking said that “on the dry bulk side, the good momentum was sustained for yet another week, given a robust flow of fresh transactions taking place. At this point, we see a relatively “healthy” presence across the main size segments of different age groups and specs, with the Capesize though, somehow lagging slightly behind. Given the strong trajectory from the side of earnings, as well as, the general bullish sentiment since the early part of the year, we can expect buying appetite to remain firm throughout the 2nd half of the year. Notwithstanding this, a fair amount will depend on how asset price levels respond to a further push in activity. Source: Allied Shipbroking On the tanker side, overall volume remained at mediocre levels, given the small number of units changing hands during the past few days. On the other hand, we witnessed some sort of spark in the VLCC market, given the recent deals being concluded now. All-in-all, the market lacks consistency at this point. In a separate note, shipbroker Banchero Costa said that “the strong dry bulk market was reflected in a plethora of sales in every size and it is noticeable an uptick in the prices on a w-o-w basis. Most favourite tonnage are Kamsarmax, Panamax and Supramax with buyers paying a significant premium to vessels able to give promptest delivery. A 20 years old Panamax Aquaman, 75,200 dwt built 2001 by Hyundai Samho, with SS/DD freshly passed was sold for $11 mln to Far Eastern buyers. Source: banchero costa &c s.p.a. An exact sister with BWTS installed was sold in January for $5.75 mln, the difference is certainly driven by both […]

Maritime supply chains stuck in a catch-22

Sailing schedules cannot be relied upon – as long as ports are congested. But port efficiency cannot really recover as long as vessels “bunch” together, arrive outside the planned terminal windows or divert away from nearby congested ports. Where does this catch-22 leave shippers? More and more often, it seems, resolving one problem along the container shipping supply chain creates even bigger problems and disruptions elsewhere in the supply chain. Just recently, operations returned to normal at Yantian International Container Terminal (YICT), after Covid-19 staff restrictions there, but the congestion shifted largely to nearby port of Hong Kong and also affected other ports in Asia, as ships and cargo volumes were diverted. Because ports are already struggling to cope with high volumes, they are vulnerable to sudden, incremental stresses. Drewry’s tracking of vessel waiting events in the ports of Yantian and Hong Kong shows the congestion easing in Yantian, while simultaneously increasing in Hong Kong. As can be seen in our Cancelled Sailings Weekly Insight report, the situation of vessel delays at ports in North America and Europe is also serious and the delays of 4 days or more are chronic and sustained. Source: Drewry Supply Chain Advisors It will certainly take an awful length of time before schedules are back to normal and reliable again, because the current model of operations of carriers – sliding schedules, blanking sailings and skipping congested ports in their rotations – is expected to continue. Particularly for shippers and BCOs, this will mean a long period of extended and less predictable transit times, combined with rollovers, lack of space and empty equipment, and extreme spot freight rates (see related Logistics Executive Briefing opinion piece). Source: Drewry Cancelled Sailings Weekly Insight The imminent peak season will exacerbate the situation further and there are further risks on the […]

Dry Bulk: Capesize Market Turns the Tide

Capesize The market staged a turn around this week lifting $3,199 on the TC average to settle Friday at $30,972. Timecharter levels now look to be trading towards the upper range of $35,000, where it has attempted several times recently to break through without success. Activity in the Atlantic basin has been stronger over the past week, which will be need impetus in pushing this market to new highs. The fronthaul C9 had a significant push to close out the week as Charterers were heard paying up for tonnage. The Brazil to China C3 was a steady gainer throughout the week, now at $26.875, while the timecharter C14 on the route ticked up to $28,046. The ballaster route remains the laggard against the transpacific C10 at $30,367 and the transatlantic at $34,275. The Pacific basin, which hasn’t been impressing on activity levels, ended the week on a softer note as Charterers appetite appears tempered. Now solidly into Q3, many expectations are optimistic for new highs. While the market remains in the current trading range earnings for Owners are considered reasonable. The market appears well supported so downside risk is thought to be limited. Many are now waiting for the upside break out. Panamax A mixed week, which started with rates appearing to be slightly under pressure due to thin activity and talk of Capesize tonnage eating into some transatlantic stems from north America as a result of a tight tonnage count in the Skaw-Gibraltar position. Solid support all week on fronthaul rates principally ex Continent and Black Sea, with route P2A averaging around the $55,000 mark. Some support was found midweek for early August arrivals ex EC South America, predominantly on the back of FFA gains. Asia proved to be largely sluggish all week. Aside from several Japanese coal stems […]