Port congestion cascades into intra-Asia services, disrupting ...
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And, while mainline vessel delays have led to transhipment cargo getting stuck in Singapore, Mr Sundara noted that the “cascading effect” of ... News/ Portcongestioncascadesintointra-Asiaservices,disruptingcontainertraffic BySamWhelan 12/11/2021 Theglobalcascadingeffectofportcongestionisplayinghavocwithintra-Asiatradelanes,withlargeamountsofcargostuckattranshipmenthubsinthesouth-east. AccordingtoPeterSundara,globalheadofoceanfreightforamajorcargoowner,transhipmentfreightfromEurope,Africa,OceaniaandtheUSisbeing“dumped”–inSingapore,particularly. HetoldTheLoadstar:“It’snotaportproductivityproblem,ratherthatfeedersandmainlinevesselsaredischargingcargowithnomainlineconnectingvesselscominginontimetoloadthecontainers.” Latelastmonth,Singapore’sportauthority(PSA)wasforcedtoopenthestorageareaofitsnewTuasmegacontainerterminaltocopewiththeoverflowofboxes. And,whilemainlinevesseldelayshaveledtotranshipmentcargogettingstuckinSingapore,MrSundaranotedthatthe“cascadingeffect”ofcongestionwasimpactingintra-Asiafeedertraffic,too. “Forexample,inIndonesiathere’scongestion,andthatdelaysfeedervesselsbringingcargofromJakartatoSingapore. WearealsofacingachronicshortageofboxesinIndonesia,ThailandandVietnam,andalackofspace.” ButMrSundarasaidhewas“hopeful”carrierswouldinjectmorecapacityquicklyintoSouth-eastAsia,giventhedipindemandandratesfromChina. “Vietnamhascomeoutoflockdownandthere’salotofpent-upproduction;thedemandisquitehuge,”hesaid.“Soit’saperfecttimeforthecarrierstoputinmorecapacity,sincetheproductionfromChinahasslowedfollowingthepowerrationing.” TaiwanesecarrierWanHaihasswappedsometranspacificcapacitybackintotheintra-AsiamarkettoservesurgingVietnamesevolumes,andalsoIndia,butitremainstobeseenwhetheranymainlinecarriersfollowsuit. ShippinglineshavebeenquicktoblanksailingsfromChina,however,withtheOceanAlliance,forexample,recentlyblanking21transpacificeastboundsailingsandtwoforAsia-NorthEurope,MrSundaranoted. “WeunderstandthecarriersmightbeblankingsailingsbecauseofpowershortagesinChinaimpactingexportproduction,butalsobecauseofthehugeportcongestionintheUSandEurope,whichhavedisruptedtheirvesselschedules,”headded. “Theotherpossibleadvantageofblanksailingsforthecarriersisthattheystopratesfromfallingfurther,allowingthemabaselineforupcomingcontractnegotiations.” Furthermore,hesaid,itwouldlikelybeashort-livedblipforChinesefreightrates,whichwould“soonpickupagain”,giveninventoriesintheUSandEuropewouldneedreplenishing–andtheChineseNewYearcargorushisjustaroundthecorner. Commentonthisarticle Close Youmustbeloggedintopostacomment. RelatedStories X-PressFeedersthelatesttoaddJNPTcallasPSAMumbaireportsvolumeincrease Singapore-basedX-PressFeedersisthelatestplayertojointheregionalshippingraceamidbuoyant... 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