CHARLIE PESTI’s Post

Shippers face potential port congestion in the new year. Beacon's monthly report reveals rising congestion in key ports across Asia, North America, and Europe. While the extent remains unclear, Beacon CEO Fraser Robinson notes a "clear worsening" in congestion this year, exacerbated by the Red Sea crisis. Read more here: https://lnkd.in/g9ndF_92 #supplychain #portcongestion #shipping #Beacon

Shippers concerned at uptick in port congestion Global port congestion is rising, with Asia, Europe, and North America seeing increased delays. Notable hotspots include Zhoushan, Tianjin, Colombo, and U.S. ports like Savannah and Norfolk. Factors include industrial actions, seasonal rushes, and impacts of the Red Sea crisis. Despite fleet capacity growing by 13% this year, analysts remain cautious about the need for further capacity and the effectiveness of shipping networks. The situation highlights operational inefficiencies and uncertainties about market demand and route strategies. #PortCongestion #GlobalShipping #SupplyChainDelays #TradeLogistics #SeasonalRush #MaritimeNews #FleetCapacity #ShippingIndustry Stay Informed: https://lnkd.in/eYpZ9N5Q

🚢⚠️ Container handling at South African ports faces a 30.3% plunge in just one week! From adverse weather to equipment breakdowns, Transnet and the maritime industry are battling major capacity challenges. Dive into the latest updates and global shipping disruptions in this article. Read more here: https://lnkd.in/dzwa4GSJ #Contra #ContraConsolidations #SouthAfricaPorts #ContainerShipping #GlobalTrade #PortDelays 🌊📉

Despite structural blank sailings through the Cape of Good Hope and port congestion in Asia and North America, volumes on the Transpacific route continue to be robust, surpassing last year's figures. Shipping lines are introducing premium services with expedited options and guaranteed equipment and space, while some carriers are adding extra loader space to alleviate the backlog in Asia. General Rate Increases (GRIs) for June have been maintained, with further increases planned for all Transpacific Eastbound gateways in anticipation of peak conditions in June and July. Equipment shortages are severe at major loading ports in Asia, leading liners to reposition empty containers to address the issue. Port congestion remains high due to various factors such as yard utilization, weather disruptions, and vessel bunching, resulting in low terminal efficiency and long wait times. Clients importing cargo into Germany and France should closely monitor deliveries due to potential strikes affecting hinterland networks. Demand remains strong, prompting rate increases for the second half of June with customers pushing cargo out earlier to avoid delays. Carriers are preparing for another General Rate Increase in July as vessels are already at full capacity. To expedite loading processes, more carriers are offering premium options with higher equipment priority for early departures. In Northern Europe, carriers have extended rate levels until July due to stable demand. Equipment issues persist in Southern and Eastern Germany as well as the Hinterlands region. Congestion at key ports in the Western Mediterranean is affecting market operations while carriers plan General Rate Increases from July based on demand. Capacity constraints from blank sailings and increased demand from Indian Subcontinent countries have led to rising rates except for specific lanes. US exporters face challenges such as extended transit times around the Cape of Good Hope and congestion at key ports impacting container equipment availability. In the air cargo sector, there has been a surge in demand from Asia Pacific origins with significant year-on-year rate increases observed across various markets including China, Hong Kong, Malaysia, Indonesia, and Thailand. Rates from Middle East & South Asia (MESA) origins have more than doubled year-on-year driven by high prices from India and Bangladesh. Global air cargo trends show an increase in tonnages despite slight declines in chargeable weight flown compared to previous weeks. Capacity shortages across air and ocean freight due to various disruptions have prompted more cargo owners to opt for air cargo solutions, impacting spot rates across Asia Pacific origin markets significantly. 1. #FreightForwarding 2. #LogisticsSolutions 3. #GlobalShipping 4. #CargoTransportation https://lnkd.in/g9AMKksV

Navigating the Red Sea Crisis: Surge in Blank Sailings Amid Port Congestion Box lines traditionally use blank sailings to manage supply in relation to demand. However, during the pandemic, shipping lines were forced to blank sailings despite high demand and high freight rates, as endemic port congestion created a shortage of available vessel capacity. The current surge in blank sailings is similarly driven by a shortage of vessel capacity. As of April, the idle container vessel fleet was at a very low 0.9%, according to a Sea-Intelligence report. The Danish analysts stated, "We analyzed the actual capacity deployment of March and April 2024 and compared it to what the shipping lines had scheduled in mid-February 2024 for the Asia-Europe and Transpacific trades." As shown in the figure, on Asia-North Europe, the ratio of blanked capacity essentially doubled from March to April, from -12% to -21%. For Asia-Mediterranean, we see the opposite, as the share of blank capacity decreased from -17% in March to -8% in April. On the Transpacific routes, the development is more stable, with a capacity reduction of around -14% to the West Coast and -11% to the East Coast for both March and April 2024. "This indicates a much more unstable operating environment in Asia-Europe than on Transpacific," pointed out Alan Murphy, CEO of Sea-Intelligence. Murphy added, "With virtually no idle vessels and spot rates increasing sharply in recent weeks, this rise in blank sailings is driven by the Red Sea crisis. Port congestion is worsening in key hubs in both Asia and Europe. As seen during the pandemic, port congestion absorbs supply and leads to potential capacity shortages." Murphy concluded, "As we've said since the start of the Red Sea Crisis: There is sufficient capacity to divert vessels around Africa, but not enough additional slack to deal with other major disruptions. Port congestion therefore needs to be brought under control, or spot rates could escalate even further, and quite quickly." #SupplyChain #ShippingIndustry #PortCongestion #BlankSailings #RedSeaCrisis #Logistics #GlobalTrade #SeaIntelligence #FreightRates

Despite weak cargo demand, spot rates on the Asia-Europe trades have shown gains this week due to carrier capacity management and port congestion. Recent general rate increases and new freight all kinds (FAK) levels have contributed to a bullish tone in the traditionally weaker period of the calendar. The Shanghai-Rotterdam and Shanghai-Genoa legs of the World Container Index (WCI) saw significant week-on-week increases in spot rates. North European ports, including Hamburg, continue to face backlogs and operational challenges due to port modernization programs and maintenance work. Winter weather conditions, such as heavy fog in Rotterdam, can lead to longer vessel queues, and vessel waiting times remain high in Antwerp. The US election has resulted in a quiet week on the transpacific and Asia-US east coast trades, with flat spot rates. Activity is expected to pick up as US shippers digest the implications of the election results.

Due to ongoing congestion and global conflicts, the shipping industry is expected to face continued delays and operational challenges. Vessel and container shortages will likely persist, impacting supply chains and port efficiency. Increased demand at alternative ports and rerouting will exacerbate congestion. As peak season effects linger, shipping companies must adapt to dynamic conditions and potential disruptions, ensuring flexibility and resilience in their operations.

Due to ongoing congestion and global conflicts, the shipping industry is expected to face continued delays and operational challenges. Vessel and container shortages will likely persist, impacting supply chains and port efficiency. Increased demand at alternative ports and rerouting will exacerbate congestion. As peak season effects linger, shipping companies must adapt to dynamic conditions and potential disruptions, ensuring flexibility and resilience in their operations.

Due to ongoing congestion and global conflicts, the shipping industry is expected to face continued delays and operational challenges. Vessel and container shortages will likely persist, impacting supply chains and port efficiency. Increased demand at alternative ports and rerouting will exacerbate congestion. As peak season effects linger, shipping companies must adapt to dynamic conditions and potential disruptions, ensuring flexibility and resilience in their operations.

Due to ongoing congestion and global conflicts, the shipping industry is expected to face continued delays and operational challenges. Vessel and container shortages will likely persist, impacting supply chains and port efficiency. Increased demand at alternative ports and rerouting will exacerbate congestion. As peak season effects linger, shipping companies must adapt to dynamic conditions and potential disruptions, ensuring flexibility and resilience in their operations.