Overwhelmed! Global ports are facing the biggest crisis in history!
Currently, more than 350 cargo ships have been stuck in the port, causing a “maritime traffic jam”, which has strained the shipping supply chain. Coupled with the old port infrastructure, some shipping companies have decided to Take the initiative to invest in ports.
In addition to extreme weather causing shipping delays, the COVID-19 epidemic that began last year has caused the global shipping system to face the biggest crisis in 65 years. The surge in terminal demand and outdated port infrastructure have strained the shipping supply chain, and the global shortage of containers and port congestion continues to worsen.
Real-time data from logistics company Kuehne+Nagel shows that there are currently 353 cargo ships stuck in ports around the world, more than double the number at the beginning of this year. Among them, the major ports of Los Angeles and Long Beach in the United States still have 22 cargo ships waiting outside the ports, and it is estimated that it will still take 12 days to unload cargo.
Although there have been port congestions during peak seasons in previous years, the main cause of global shipping congestion in the past year has been the COVID-19 epidemic. Various countries have implemented varying degrees of border controls in response to the epidemic, and many factories have been forced to suspend operations, jeopardizing the smoothness of the entire shipping supply chain, causing freight rates on shipping routes in China, the United States and Europe to soar. Virtually every part of the shipping supply chain is at a tipping point, and for shippers, freight forwarders and agents, even small changes in demand can have huge impacts downstream. In addition, in terms of updating infrastructure, ports need to improve automated operations and decarbonized logistics, and the new generation of cargo ships is getting larger and larger.
Specifically, the largest cargo ship at present can carry 20,000 20-foot containers at a time. The length of all containers after being unloaded is equal to that of traveling from Paris, France. Highway to Amsterdam, but such large ships require deeper ports and larger cranes.
In this regard, John Manners-Bell, CEO of the shipping consulting company Transport Intelligence, pointed out: Since last year, the epidemic has exposed the problems that many ports are facing with infrastructure upgrades. The entire port infrastructure system has been downgraded last year. It is overwhelmed and urgently needs investment in renewal and construction. Soren Toft, CEO of Mediterranean Shipping Company (MSC), the world’s second largest container shipping group, also said: In fact, problems at the port already existed before the epidemic, but the situation of old facilities and capacity constraints was highlighted during the epidemic. come out. At present, some shipping companies have decided to take the initiative and take action to invest in ports first so that their cargo ships can receive priority processing rights. Recently, HHLA, the operator of Hamburg Terminal in Germany, stated that it is negotiating with COSCO Shipping Ports for a minority stake, which will make the shipping group a partner in planning and investing in terminal infrastructure.
In China, due to the recent impact of typhoons and the epidemic, up to 570 ships are waiting to load and unload cargo.
In just two weeks, queues of dry bulk vessels near Chinese ports have almost exploded due to port congestion and new Covid-19 restrictions. increase.
Recently, 7.5% of the world’s small dry bulk carriers, including Handysize and Supramax, have been anchored near Chinese ports.
This represents a 37% increase in just 10 days, equivalent to approximately 570 dry bulk carriers waiting to unload at Chinese ports. Two weeks ago this figure was about 400 ships, and the number of Handysize and Supramax dry bulk ships in the world was about 7,725.
*Niels Josefsen, CEO of Lauritzen Bulkers, said: “This is an operational challenge.” The company said it currently has four handy dry bulk ships in the pipeline. waiting for berthing permission at Chinese ports.
Josefsen said, “High-volume ports are already under pressure, but China has introduced new restrictions and quarantine regulations at several ports to prevent Delta from The spread of mutant viruses has also worsened the waiting time,” “China is the largest dry bulk import and export market. There is generally a waiting period at Chinese ports.
But in the past ten days, , the waiting situation has worsened. We still have ships waiting near Chinese ports, and more ships are on the way, and we are not getting paid for our waiting.”
Analyzing and monitoring the dry bulk market Trending data-driven technology company Oceanbolt also confirmed China’s port congestion trends, pressure on ports and the increasing number of dry bulk vessels.
Niclas Dæhli Priess, co-founder of Oceanbolt, said, “We have seen a significant increase in the overall accumulation of dry bulk carriers in Chinese waters. This is the highest value in seven years. For Handysize ships, The impact is particularly evident, as we have seen a 31% increase in the number of ships in this category over the past two weeks and a 64% increase so far this year.”
The number of Supramax ship waits has also reached its highest level in seven years, according to Oceanbolt data. 313 ships are waiting at Chinese ports, which represents a 35% increase so far this year.
All in all, according to Oceanbolt data, the Handysize and Supramax types of dry bulk are currently waiting at Chinese ports. The number of cargo ships is 548. This data is also consistent with the data provided by Lauritzen Bulkers above.
North America’s largest port considers “24-hour operation” to alleviate congestion. Recently, faced with high ship volume and congestion, Current status, Port of Long Beach Executive Director Mario Cordero suggested that the port must develop an “Amazon mentality” for its operations and must consider 24-hour operation to keep up with the growth in cargo volumes. The Port of Long Beach handled 784,845 TEU last month, 3.5% higher than the previous month. After a 4.2% increase in July 2020, Cordero expects throughput to increase significantly throughout the year, with container throughput expected to increase by 10%. Cordero expects total cargo volume at the Port of Long Beach and its neighboring Port of Los Angeles to exceed 19 million TEU this year, This is higher than the 17.3 million TEU in 2020. In addition, he does not believe that this is a temporary peak, but a “new normal” that the port and its operators must accept.
The port complex has struggled throughout the year to cope with increased volumes and congestion. It has reduced the number of ships waiting at anchorage and container transit times, but has been unable to completely clear the congestion, an ominous sign of the peak season, in July Later in the year, the problem of ship clustering, truck shortages and longer container dwell times got worse again.</p
