Trans-Pacific container system slows under Asia import surge<\/strong><\/a><\/h2>\nThe trans-Pacific container shipping system is sagging under a seemingly unending deluge of imports from Asia into North America. The winter storms have only stressed some port gateway further and slowed cargo through rail hubs including Chicago.<\/p>\n
Importers are often shelling out more than double the posted rates to secure ship and container equipment capacity.\u00a0 They are also watching demurrage fees stack up, while carriers prioritize imports over lower-paying exports.\u00a0 This then becomes frustrating to US and Canadian farmers and other exporters.<\/p>\n
Marine terminals at the Los Angeles and Long Beach port complex don\u2019t expect the con-<\/p>\n![\"\"](\"https:\/\/coirubber.com\/wp-content\/uploads\/2021\/02\/vietnam_molded_rubber_container_schedule-300x136.png\")
<\/a>vietnam_molded_rubber_container_schedule<\/figcaption><\/figure>\ngestion that has been building since summer to clear until late spring.\u00a0 While other major ports grapple with the surge that has slowed but not stopped operations. And with importers attempting to bring additional cargo in before some Chinese factories shut down for Lunar New Year celebrations.\u00a0 Most of this began Feb. 12, container lines and marine terminals spent February battling vessel delays and congestion at key Chinese export gateways. US imports from Asia in January increased 14% from Jan 2020.<\/p>\n
\u2018<\/strong>Opportunity\u2019<\/strong><\/h2>\n\u201cThe opportunity to find alternative gateways [to Los Angeles and Long Beach] where there is a material difference in throughput productivity is becoming smaller and smaller because of the increased diversions and the ongoing surge in general,\u201d Charles van der Steene, head of sales for Maersk, North America, said in an interview. However, he expects dwell times at other major North American ports such as Savannah and New York \u201cwill plateau and not catapult out of control.\u201d Ships are leaving Asian ports later than scheduled due to container equipment shortages.\u00a0 And then sometimes experiencing weather-related delays before reaching US ports. As a result, ocean carrier on-time performance from Asia to the West Coast of North America was a dismal 22.1 percent.\u00a0 That also turn in December, down from 70.9 percent in December 2019.\u00a0 While ocean reliability to the East Coast fell to 26.3 percent from 70.5 percent during the same period.\u00a0 \u00a0Most of this is according to the latest data from Sea-Intelligence Maritime Analysis.<\/p>\n
\u2018<\/strong>Decrease Service Levels\u2019<\/strong><\/h2>\n![\"malaysia_molded_rubber_container_schedule\"](\"https:\/\/coirubber.com\/wp-content\/uploads\/2021\/02\/malaysia_molded_rubber_container_schedule-300x112.png\")
<\/a>malaysia_molded_rubber_container_schedule<\/figcaption><\/figure>\nThis unprecedented decrease in service levels.\u00a0 This is caused by the bullwhip effect of import demand falling.\u00a0 Especially in the first half before rocketing since the second half and a subsequent shortage of container equipment for Asian exports.\u00a0 Furthermore, this has spurred shippers to accuse carriers of price gouging and carriers to argue the system can\u2019t handle the volume. Unsurprisingly, the US Federal Maritime Commission has upped its monitoring, and Commissioner Rebecca Dye has hinted at potential major changes coming this month<\/a> in how the agency addresses detention and demurrage charges. Hearing complaints from their agriculture exporter constituents.\u00a0 Members of Congress are asking the industry to help get them needed equipment for soybeans, grains, and other commodities.<\/p>\nAll of this comes as importers and container lines hash out annual trans-Pacific service contracts.\u00a0 Mostly which the industry widely expects will include higher base rates than last year\u2019s agreements.\u00a0 Although the extent of the pricing increase is still unclear. If spot rates in the eastbound trans-Pacific are an indication as to where annual service contract rates will end up this spring.\u00a0 Contract rates will be much higher than last year.<\/p>\n
The service importers are receiving and how their various routings through US and Canadian ports.\u00a0 They are performing is framing negotiations for the contracts that generally run from May 1 through April 30. While a larger number of shippers are signing contracts earlier. This way so they can expand their minimum quantity commitments and get extra space now.\u00a0 There\u2019s another camp waiting to see if there\u2019s any relief in spot rates during the two-week Chinese New Year celebrations.<\/p>\n
\u2018<\/strong>Nowhere to put containers\u2019<\/strong><\/h2>\n![\"thailand_molded-rubber_container_schedule\"](\"https:\/\/coirubber.com\/wp-content\/uploads\/2021\/02\/thailand_molded-rubber_container_schedule-300x127.png\")
<\/a>thailand_molded-rubber_container_schedule<\/figcaption><\/figure>\nContainer flows are\u00a0adjusting to bottlenecks in So California, most noticeably with carriers boosting capacity to Oakland and the Northwest Seaport Alliance (NWSA) of Seattle and Tacoma. Zim Integrated Shipping Services, for example, will commence a service Feb. 21 that will call in Southeast Asia, Los Angeles, Tacoma, and Vladivostok, Russia, before returning to Laem Chabang, Thailand.<\/p>\n
In the past two months, carriers have announced several new trans-Pacific services to North America\u2019s Pacific Coast that do not call at Los Angeles nor Long Beach.<\/p>\n
Wan Hai Lines in mid-March will double its current two trans-Pacific strings to four, including a new Pacific Northwest service from North Asia to Seattle and Oakland that will omit Southern California entirely. CMA CGM launched its Golden Gate Bridge service (a restructuring of the carrier\u2019s former SeaPriority Express service) with a rotation of Yantian, Oakland, Seattle, Shanghai, and Yantian. And Mediterranean Shipping Co. in December started its Chinook service with a rotation of Yantian, Shanghai, Busan, Vancouver, and Yantian.<\/p>\n
The executive directors of Oakland and the NWSA told JOC.com in early February that carriers are in advanced stages of planning additional services to their ports.<\/p>\n
\u2018<\/strong>Massive Ships in Queue\u2019<\/strong><\/h2>\nThat\u2019s not surprising considering there\u2019s still a massive ship queue in Southern California, with the number of ships in the queue outpacing the number of ships at berth for all but six days between January and Feb. 15, although the margin has been narrowing in recent days, according to the Marine Exchange of Southern California. For example, on Feb. 15, there were 32 container ships at anchor awaiting berthing space. Terminal operators say near-record container volumes will continue well into the spring, but the backlogs of vessels in the harbor and laden inbound containers on the terminals should dissipate sometime between April and June. Managers of SSA Marine, Yusen Terminals, and Fenix Marine say two pending developments are necessary in order to decongest the ports. COVID-19 vaccine distribution must take place.<\/p>\n![\"indonesia_rubber_container_schedule\"](\"https:\/\/coirubber.com\/wp-content\/uploads\/2021\/02\/indonesia_rubber_container_schedule-300x108.png\")
<\/a>indonesia_rubber_container_schedule become widespread among longshore workers, dissipating recent labor shortages. A modest drop in container volumes during the Lunar New Year holidays this month should also allow marine terminals to move the backlog of laden import containers from their facilities. <\/span>\u201cTerminals are full. There\u2019s nowhere to put the containers. We\u2019re 35 percent below what we normally do on deliveries [to truckers],\u201d Ed DeNike, president of SSA Containers, told JOC.com.<\/span><\/figcaption><\/figure>\n\u2018<\/strong>Stressed but not broken\u2019<\/strong><\/h2>\nAlthough the Asia import surge has overwhelmed the LA\u2013Long Beach port complex.\u00a0 Most imports are flowing relatively smoothly through the other busiest container gateways. A mild winter and a catch-up in cargo handling in recent months.\u00a0 This is now keeping cargo flowing through British Columbia ports.\u00a0 It is a boon not just for Canadian shippers but for those US shippers importing cargo through Prince Rupert and Vancouver. In a Feb. 15 advisory, however, Hapag-Lloyd warned customers of slowing cargo flow through both ports.\u00a0 It would require the Canadian National Railway and Canadian Pacific Railway to run shorter trains. As a result, limiting the amount of cargo that can be removed from terminals.<\/p>\n
There is also a risk of disruption in Eastern Canada, as the truce between Montreal waterfront employers and longshore workers expires March 20.\u00a0 Also shippers have already begun diverting cargo. In case the Maritime Employers Association (MEA) and Canadian Union of Public Employees (CUPE) don\u2019t agree to a new contract.\u00a0 They also didn’t extend the truce by March 21, shippers moving goods not destined for.\u00a0 Or originating from Montreal can route through the ports of Halifax, Saint John, and New York and New Jersey.<\/p>\n
Cargo flow through the Port of New York and New Jersey is improving after average container dwell times at marine terminals.\u00a0 Most of this happens in late fall and early winter rose to 10 to 11 days.\u00a0 A rate approximately double that seen during normal times, said Sam Ruda, port director at the Port Authority of New York and New Jersey (PANYNJ). In a Feb. 3 interview, Ruda said he was optimistic that marine terminals would be able to catch up.\u00a0 Mostly, after a snowstorm closed most marine terminals for just a day. The winter storm this week, however, has forced the closure of some NY-NJ terminals.<\/p>\n
\u2018<\/strong>Coordination\u2019<\/strong><\/h2>\n![\"india_molded_rubber_container_schedule\"](\"https:\/\/coirubber.com\/wp-content\/uploads\/2021\/02\/india_molded_rubber_container_schedule-300x94.png\")
<\/a>india_molded_rubber_container_schedule<\/figcaption><\/figure>\nCoordination among marine terminals, truckers, and longshore labor.\u00a0 Furthermore, along with extended gate hours and weekend shifts.\u00a0 This has helped manage the surge, leaving the system \u201cstressed but not broken,\u201d said Beth Rooney, PANYNJ\u2019s deputy port director. The return of empty containers remains a challenge. But Ruda expects ad hoc \u201cextra loader\u201d vessels scheduled to call the port in February and March to help marine terminals clear the equipment.<\/p>\n
<\/a>gestion that has been building since summer to clear until late spring.\u00a0 While other major ports grapple with the surge that has slowed but not stopped operations. And with importers attempting to bring additional cargo in before some Chinese factories shut down for Lunar New Year celebrations.\u00a0 Most of this began Feb. 12, container lines and marine terminals spent February battling vessel delays and congestion at key Chinese export gateways. US imports from Asia in January increased 14% from Jan 2020.<\/p>\n
\u2018<\/strong>Opportunity\u2019<\/strong><\/h2>\n\u201cThe opportunity to find alternative gateways [to Los Angeles and Long Beach] where there is a material difference in throughput productivity is becoming smaller and smaller because of the increased diversions and the ongoing surge in general,\u201d Charles van der Steene, head of sales for Maersk, North America, said in an interview. However, he expects dwell times at other major North American ports such as Savannah and New York \u201cwill plateau and not catapult out of control.\u201d Ships are leaving Asian ports later than scheduled due to container equipment shortages.\u00a0 And then sometimes experiencing weather-related delays before reaching US ports. As a result, ocean carrier on-time performance from Asia to the West Coast of North America was a dismal 22.1 percent.\u00a0 That also turn in December, down from 70.9 percent in December 2019.\u00a0 While ocean reliability to the East Coast fell to 26.3 percent from 70.5 percent during the same period.\u00a0 \u00a0Most of this is according to the latest data from Sea-Intelligence Maritime Analysis.<\/p>\n
\u2018<\/strong>Decrease Service Levels\u2019<\/strong><\/h2>\n<\/a>malaysia_molded_rubber_container_schedule<\/figcaption><\/figure>\nThis unprecedented decrease in service levels.\u00a0 This is caused by the bullwhip effect of import demand falling.\u00a0 Especially in the first half before rocketing since the second half and a subsequent shortage of container equipment for Asian exports.\u00a0 Furthermore, this has spurred shippers to accuse carriers of price gouging and carriers to argue the system can\u2019t handle the volume. Unsurprisingly, the US Federal Maritime Commission has upped its monitoring, and Commissioner Rebecca Dye has hinted at potential major changes coming this month<\/a> in how the agency addresses detention and demurrage charges. Hearing complaints from their agriculture exporter constituents.\u00a0 Members of Congress are asking the industry to help get them needed equipment for soybeans, grains, and other commodities.<\/p>\nAll of this comes as importers and container lines hash out annual trans-Pacific service contracts.\u00a0 Mostly which the industry widely expects will include higher base rates than last year\u2019s agreements.\u00a0 Although the extent of the pricing increase is still unclear. If spot rates in the eastbound trans-Pacific are an indication as to where annual service contract rates will end up this spring.\u00a0 Contract rates will be much higher than last year.<\/p>\n
The service importers are receiving and how their various routings through US and Canadian ports.\u00a0 They are performing is framing negotiations for the contracts that generally run from May 1 through April 30. While a larger number of shippers are signing contracts earlier. This way so they can expand their minimum quantity commitments and get extra space now.\u00a0 There\u2019s another camp waiting to see if there\u2019s any relief in spot rates during the two-week Chinese New Year celebrations.<\/p>\n
\u2018<\/strong>Nowhere to put containers\u2019<\/strong><\/h2>\n<\/a>thailand_molded-rubber_container_schedule<\/figcaption><\/figure>\nContainer flows are\u00a0adjusting to bottlenecks in So California, most noticeably with carriers boosting capacity to Oakland and the Northwest Seaport Alliance (NWSA) of Seattle and Tacoma. Zim Integrated Shipping Services, for example, will commence a service Feb. 21 that will call in Southeast Asia, Los Angeles, Tacoma, and Vladivostok, Russia, before returning to Laem Chabang, Thailand.<\/p>\n
In the past two months, carriers have announced several new trans-Pacific services to North America\u2019s Pacific Coast that do not call at Los Angeles nor Long Beach.<\/p>\n
Wan Hai Lines in mid-March will double its current two trans-Pacific strings to four, including a new Pacific Northwest service from North Asia to Seattle and Oakland that will omit Southern California entirely. CMA CGM launched its Golden Gate Bridge service (a restructuring of the carrier\u2019s former SeaPriority Express service) with a rotation of Yantian, Oakland, Seattle, Shanghai, and Yantian. And Mediterranean Shipping Co. in December started its Chinook service with a rotation of Yantian, Shanghai, Busan, Vancouver, and Yantian.<\/p>\n
The executive directors of Oakland and the NWSA told JOC.com in early February that carriers are in advanced stages of planning additional services to their ports.<\/p>\n
\u2018<\/strong>Massive Ships in Queue\u2019<\/strong><\/h2>\nThat\u2019s not surprising considering there\u2019s still a massive ship queue in Southern California, with the number of ships in the queue outpacing the number of ships at berth for all but six days between January and Feb. 15, although the margin has been narrowing in recent days, according to the Marine Exchange of Southern California. For example, on Feb. 15, there were 32 container ships at anchor awaiting berthing space. Terminal operators say near-record container volumes will continue well into the spring, but the backlogs of vessels in the harbor and laden inbound containers on the terminals should dissipate sometime between April and June. Managers of SSA Marine, Yusen Terminals, and Fenix Marine say two pending developments are necessary in order to decongest the ports. COVID-19 vaccine distribution must take place.<\/p>\n<\/a>indonesia_rubber_container_schedule become widespread among longshore workers, dissipating recent labor shortages. A modest drop in container volumes during the Lunar New Year holidays this month should also allow marine terminals to move the backlog of laden import containers from their facilities. <\/span>\u201cTerminals are full. There\u2019s nowhere to put the containers. We\u2019re 35 percent below what we normally do on deliveries [to truckers],\u201d Ed DeNike, president of SSA Containers, told JOC.com.<\/span><\/figcaption><\/figure>\n\u2018<\/strong>Stressed but not broken\u2019<\/strong><\/h2>\nAlthough the Asia import surge has overwhelmed the LA\u2013Long Beach port complex.\u00a0 Most imports are flowing relatively smoothly through the other busiest container gateways. A mild winter and a catch-up in cargo handling in recent months.\u00a0 This is now keeping cargo flowing through British Columbia ports.\u00a0 It is a boon not just for Canadian shippers but for those US shippers importing cargo through Prince Rupert and Vancouver. In a Feb. 15 advisory, however, Hapag-Lloyd warned customers of slowing cargo flow through both ports.\u00a0 It would require the Canadian National Railway and Canadian Pacific Railway to run shorter trains. As a result, limiting the amount of cargo that can be removed from terminals.<\/p>\n
There is also a risk of disruption in Eastern Canada, as the truce between Montreal waterfront employers and longshore workers expires March 20.\u00a0 Also shippers have already begun diverting cargo. In case the Maritime Employers Association (MEA) and Canadian Union of Public Employees (CUPE) don\u2019t agree to a new contract.\u00a0 They also didn’t extend the truce by March 21, shippers moving goods not destined for.\u00a0 Or originating from Montreal can route through the ports of Halifax, Saint John, and New York and New Jersey.<\/p>\n
Cargo flow through the Port of New York and New Jersey is improving after average container dwell times at marine terminals.\u00a0 Most of this happens in late fall and early winter rose to 10 to 11 days.\u00a0 A rate approximately double that seen during normal times, said Sam Ruda, port director at the Port Authority of New York and New Jersey (PANYNJ). In a Feb. 3 interview, Ruda said he was optimistic that marine terminals would be able to catch up.\u00a0 Mostly, after a snowstorm closed most marine terminals for just a day. The winter storm this week, however, has forced the closure of some NY-NJ terminals.<\/p>\n
\u2018<\/strong>Coordination\u2019<\/strong><\/h2>\n<\/a>india_molded_rubber_container_schedule<\/figcaption><\/figure>\nCoordination among marine terminals, truckers, and longshore labor.\u00a0 Furthermore, along with extended gate hours and weekend shifts.\u00a0 This has helped manage the surge, leaving the system \u201cstressed but not broken,\u201d said Beth Rooney, PANYNJ\u2019s deputy port director. The return of empty containers remains a challenge. But Ruda expects ad hoc \u201cextra loader\u201d vessels scheduled to call the port in February and March to help marine terminals clear the equipment.<\/p>\n
<\/a>This unprecedented decrease in service levels.\u00a0 This is caused by the bullwhip effect of import demand falling.\u00a0 Especially in the first half before rocketing since the second half and a subsequent shortage of container equipment for Asian exports.\u00a0 Furthermore, this has spurred shippers to accuse carriers of price gouging and carriers to argue the system can\u2019t handle the volume. Unsurprisingly, the US Federal Maritime Commission has upped its monitoring, and Commissioner Rebecca Dye has hinted at potential major changes coming this month<\/a> in how the agency addresses detention and demurrage charges. Hearing complaints from their agriculture exporter constituents.\u00a0 Members of Congress are asking the industry to help get them needed equipment for soybeans, grains, and other commodities.<\/p>\n All of this comes as importers and container lines hash out annual trans-Pacific service contracts.\u00a0 Mostly which the industry widely expects will include higher base rates than last year\u2019s agreements.\u00a0 Although the extent of the pricing increase is still unclear. If spot rates in the eastbound trans-Pacific are an indication as to where annual service contract rates will end up this spring.\u00a0 Contract rates will be much higher than last year.<\/p>\n The service importers are receiving and how their various routings through US and Canadian ports.\u00a0 They are performing is framing negotiations for the contracts that generally run from May 1 through April 30. While a larger number of shippers are signing contracts earlier. This way so they can expand their minimum quantity commitments and get extra space now.\u00a0 There\u2019s another camp waiting to see if there\u2019s any relief in spot rates during the two-week Chinese New Year celebrations.<\/p>\n Container flows are\u00a0adjusting to bottlenecks in So California, most noticeably with carriers boosting capacity to Oakland and the Northwest Seaport Alliance (NWSA) of Seattle and Tacoma. Zim Integrated Shipping Services, for example, will commence a service Feb. 21 that will call in Southeast Asia, Los Angeles, Tacoma, and Vladivostok, Russia, before returning to Laem Chabang, Thailand.<\/p>\n In the past two months, carriers have announced several new trans-Pacific services to North America\u2019s Pacific Coast that do not call at Los Angeles nor Long Beach.<\/p>\n Wan Hai Lines in mid-March will double its current two trans-Pacific strings to four, including a new Pacific Northwest service from North Asia to Seattle and Oakland that will omit Southern California entirely. CMA CGM launched its Golden Gate Bridge service (a restructuring of the carrier\u2019s former SeaPriority Express service) with a rotation of Yantian, Oakland, Seattle, Shanghai, and Yantian. And Mediterranean Shipping Co. in December started its Chinook service with a rotation of Yantian, Shanghai, Busan, Vancouver, and Yantian.<\/p>\n The executive directors of Oakland and the NWSA told JOC.com in early February that carriers are in advanced stages of planning additional services to their ports.<\/p>\n That\u2019s not surprising considering there\u2019s still a massive ship queue in Southern California, with the number of ships in the queue outpacing the number of ships at berth for all but six days between January and Feb. 15, although the margin has been narrowing in recent days, according to the Marine Exchange of Southern California. For example, on Feb. 15, there were 32 container ships at anchor awaiting berthing space. Terminal operators say near-record container volumes will continue well into the spring, but the backlogs of vessels in the harbor and laden inbound containers on the terminals should dissipate sometime between April and June. Managers of SSA Marine, Yusen Terminals, and Fenix Marine say two pending developments are necessary in order to decongest the ports. COVID-19 vaccine distribution must take place.<\/p>\n Although the Asia import surge has overwhelmed the LA\u2013Long Beach port complex.\u00a0 Most imports are flowing relatively smoothly through the other busiest container gateways. A mild winter and a catch-up in cargo handling in recent months.\u00a0 This is now keeping cargo flowing through British Columbia ports.\u00a0 It is a boon not just for Canadian shippers but for those US shippers importing cargo through Prince Rupert and Vancouver. In a Feb. 15 advisory, however, Hapag-Lloyd warned customers of slowing cargo flow through both ports.\u00a0 It would require the Canadian National Railway and Canadian Pacific Railway to run shorter trains. As a result, limiting the amount of cargo that can be removed from terminals.<\/p>\n There is also a risk of disruption in Eastern Canada, as the truce between Montreal waterfront employers and longshore workers expires March 20.\u00a0 Also shippers have already begun diverting cargo. In case the Maritime Employers Association (MEA) and Canadian Union of Public Employees (CUPE) don\u2019t agree to a new contract.\u00a0 They also didn’t extend the truce by March 21, shippers moving goods not destined for.\u00a0 Or originating from Montreal can route through the ports of Halifax, Saint John, and New York and New Jersey.<\/p>\n Cargo flow through the Port of New York and New Jersey is improving after average container dwell times at marine terminals.\u00a0 Most of this happens in late fall and early winter rose to 10 to 11 days.\u00a0 A rate approximately double that seen during normal times, said Sam Ruda, port director at the Port Authority of New York and New Jersey (PANYNJ). In a Feb. 3 interview, Ruda said he was optimistic that marine terminals would be able to catch up.\u00a0 Mostly, after a snowstorm closed most marine terminals for just a day. The winter storm this week, however, has forced the closure of some NY-NJ terminals.<\/p>\n Coordination among marine terminals, truckers, and longshore labor.\u00a0 Furthermore, along with extended gate hours and weekend shifts.\u00a0 This has helped manage the surge, leaving the system \u201cstressed but not broken,\u201d said Beth Rooney, PANYNJ\u2019s deputy port director. The return of empty containers remains a challenge. But Ruda expects ad hoc \u201cextra loader\u201d vessels scheduled to call the port in February and March to help marine terminals clear the equipment.<\/p>\n\u2018<\/strong>Nowhere to put containers\u2019<\/strong><\/h2>\n
<\/a>\u2018<\/strong>Massive Ships in Queue\u2019<\/strong><\/h2>\n
<\/a>\u2018<\/strong>Stressed but not broken\u2019<\/strong><\/h2>\n
\u2018<\/strong>Coordination\u2019<\/strong><\/h2>\n
<\/a>
![\"rubber_container_world\"](\"https:\/\/coirubber.com\/wp-content\/uploads\/2021\/02\/rubber_container_world-300x106.png\")
<\/a>