Expect delays in global supply chain, report says
PORTS & SHIPPING

Expect delays in global supply chain, report says

A new report states that delays in the supply chain━specifically outbound China━are impending due to the issues in intermodal connectivity. The main cause is the Chinese government’s quarantine measure around the time of the Chinese New Year celebrations.

The report by Oceans Insights points out that the average delay for containers increased from one day in January 2020, to more than five days in January 2021, and hence it may take several more months for supply chains to return to some semblance of normality.

The internal travel restriction imposed by the Chinese authorities requires domestic travellers to quarantine for 14 days after travelling and calls for citizens to stay put and “celebrate in place”, keeping factories open to offset the seasonal decline in factory output during the Chinese New Year. Most truckers have opted to go home for New Year, making them subject to mandatory quarantines and unable to drive. In some regions, up to 95% of truckers will be unavailable, with the worst-hit regions in the south.

Port rollovers. At ports, overall rollover percentages continued to climb as well, reaching 39%, a 2% increase on December numbers and a 9% on year-over-year (y-o-y).

The report by Ocean Insights calculates the rollover ratio for carriers as the percentage of cargo carried by each line globally that left a transshipment port on a different vessel than originally scheduled.

While overall rollover rates have increased, the major Asian ports in Singapore and Tanjung Pelepas saw no increase in rollovers, from December 2020 to January 2021, while Shanghai, Hong Kong increased by just 1% and Busan decreased 1%.

Port Klang in Malaysia remains an outlier with an 11% increase in rollover cargo from 55-66% month-on-month. In Europe, Antwerp and Rotterdam saw increases of 4 and 5% respectively within the Hamburg-Le Havre range.


Schedule reliability. In terms of the number of changes to delivery dates (ETA), the Asia to US West Coast trade lanes showed the largest increase from an average of 1.67 ETA changes per shipment in January 2020 to 3.93 by January this year.

While Asia to Europe cargo ETA changes per shipment averaged 1.41 in January 2020, they increased to 3.13 a year later.

By these metrics, the average delay for containers increased from about one day in January 2020, to more than five days in January 2021 (Carriers’ Schedule Reliability is a measurement of delay from port to port.)

apW01COS4PlI5e5iYpMLXeV2tnIoS2bYPyIK5-FSEDtAu2la7FlaXYLYFYZJDiLBDpcN1JKxuGZz3D9ayFghKfIrTYWDomwr-y6v3JDcEOlbvlfnd23IyR-jnUrN58B7Wwi2L6zv.jpg

Rollovers by carrier. Vessel operators have so far had a mixed month with Maersk seeing a 5% increase in rollovers, reaching 38% while its alliance partner, MSC, has been static at 29% since November of last year.

CMA CGM, by way of contrast, has steadily increased its rollovers from 44% in October 2020 to 52% in January this year. While the biggest decrease month-on-month goes to CMA CGM’s subsidiary ANL whose rollover figures improved from 56% in December to 49% in January.

xpOohaJifgn93WlfHv94YbCKnLAsUo0gv8rX1ygKv9gzgOewNsjJNl4mJ0owedZnrRNx1ts2MTbto2A4fS6ZHGRMKwMfVqsdmjQWLZEh_YEqx4dv41qT-9GszYfvKV_E4318I0Op.jpg

Ocean Insights consolidates and evaluates container shipping data.

Written from a company news release.

Image: The Chinese New Year has a cascading effect on carriers' schedule reliability and rollovers.



"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

A new report states that delays in the supply chain━specifically outbound China━are impending due to the issues in intermodal connectivity. The main cause is the Chinese government’s quarantine measure around the time of the Chinese New Year celebrations. The report by Oceans Insights points out that the average delay for containers increased from one day in January 2020, to more than five days in January 2021, and hence it may take several more months for supply chains to return to some semblance of normality. The internal travel restriction imposed by the Chinese authorities requires domestic travellers to quarantine for 14 days after travelling and calls for citizens to stay put and “celebrate in place”, keeping factories open to offset the seasonal decline in factory output during the Chinese New Year. Most truckers have opted to go home for New Year, making them subject to mandatory quarantines and unable to drive. In some regions, up to 95% of truckers will be unavailable, with the worst-hit regions in the south. Port rollovers. At ports, overall rollover percentages continued to climb as well, reaching 39%, a 2% increase on December numbers and a 9% on year-over-year (y-o-y). The report by Ocean Insights calculates the rollover ratio for carriers as the percentage of cargo carried by each line globally that left a transshipment port on a different vessel than originally scheduled. While overall rollover rates have increased, the major Asian ports in Singapore and Tanjung Pelepas saw no increase in rollovers, from December 2020 to January 2021, while Shanghai, Hong Kong increased by just 1% and Busan decreased 1%. Port Klang in Malaysia remains an outlier with an 11% increase in rollover cargo from 55-66% month-on-month. In Europe, Antwerp and Rotterdam saw increases of 4 and 5% respectively within the Hamburg-Le Havre range. Schedule reliability. In terms of the number of changes to delivery dates (ETA), the Asia to US West Coast trade lanes showed the largest increase from an average of 1.67 ETA changes per shipment in January 2020 to 3.93 by January this year. While Asia to Europe cargo ETA changes per shipment averaged 1.41 in January 2020, they increased to 3.13 a year later. By these metrics, the average delay for containers increased from about one day in January 2020, to more than five days in January 2021 (Carriers’ Schedule Reliability is a measurement of delay from port to port.) Rollovers by carrier. Vessel operators have so far had a mixed month with Maersk seeing a 5% increase in rollovers, reaching 38% while its alliance partner, MSC, has been static at 29% since November of last year. CMA CGM, by way of contrast, has steadily increased its rollovers from 44% in October 2020 to 52% in January this year. While the biggest decrease month-on-month goes to CMA CGM’s subsidiary ANL whose rollover figures improved from 56% in December to 49% in January. Ocean Insights consolidates and evaluates container shipping data. Written from a company news release.Image: The Chinese New Year has a cascading effect on carriers' schedule reliability and rollovers.

Next Story
Real Estate

Platinum Corp Launches Bespoke Presidential Suites

Platinum Corp has launched Platinum Stellar: Bespoke Presidential Suites, a luxury residential project on Main Avenue in Santacruz, Mumbai. The project has been positioned as a boutique, design-led development for high-net-worth individuals, business owners and legacy residents from the Bandra-Khar-Santacruz belt.The project has been developed in collaboration with celebrity interior designer Sussanne Khan and follows a design-first approach inspired by Art Deco architecture. It incorporates refined detailing, spacious layouts, premium material palettes and arrival experiences planned to creat..

Next Story
Infrastructure Transport

Adani Airport City Plans Rs 200 Bn Investment

Adani Airport City Limited (AACL), a wholly owned subsidiary of Adani Airport Holdings Limited (AAHL), has announced a programme to develop integrated airport cities across its airport network. The first phase will involve an investment of more than Rs 20,000 crore and cover around 22 million sq ft across Mumbai, Navi Mumbai, Ahmedabad, Lucknow, Jaipur and Guwahati.The development spans over 655 acres across six airports in five states. Nearly 440 acres are located in Mumbai and Navi Mumbai, which will receive close to 70 per cent of the planned investment. The focus reflects the Mumbai Metrop..

Next Story
Infrastructure Urban

Vedanta contributes Rs 627.22 billion to exchequer

Vedanta Limited contributed Rs 627.22 billion to the exchequer in FY26, according to its 11th Tax Transparency Report. The contribution accounted for 36 per cent of the company’s consolidated revenue from operations and reflected its focus on transparent governance, fiscal discipline and nation-building.The FY26 contribution marked a 13.3 per cent increase over the previous year. Vedanta’s cumulative contribution to the exchequer over the past decade reached Rs 4.83 trillion. The company said the Group ranks among India’s top three private-sector contributors to the national exchequer.Th..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement