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.



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
Infrastructure Energy

Samridh, CEID Launch High-Capacity Biogas Plant in Moradabad

Samridh Bioenergy has broken ground on a 12 TPD compressed biogas (CBG) plant in Moradabad, Uttar Pradesh, under the MNRE’s National Bioenergy Programme. Spread across 12 acres, the plant will process 270 tonne of organic waste daily and generate 30,000 cubic metre of biogas per day.CEID Consultants and Engineering Pvt Ltd has been appointed as the EPC contractor, responsible for the complete design, procurement, and construction of the plant. Equipped with four multi-feed digesters, the facility will accept a mix of press mud, cow dung, chicken litter, and vegetable waste, supporting contin..

Next Story
Real Estate

Delhi Micro-Markets Drive Up Housing Prices: Grihum Study

A new study by Grihum Housing Finance reveals that the rise of micro-markets across Delhi-NCR is fuelling real estate price appreciation, especially in the affordable housing segment. Key drivers include renewed post-pandemic interest, migration trends, and government schemes like PMAY.According to the study, over the past two decades, floor rates have risen 267 per cent, from Rs 1,500 per sq ft in 2005 to Rs 5,500 in 2024. In the same period, land rates surged 492 per cent, from Rs 1,300 to Rs 7,700 per sq ft. The sharp increase highlights strong capital appreciation in Delhi’s emerging loc..

Next Story
Resources

Covestro Develops PCR Polycarbonates from End-of-Life Headlamps

Materials manufacturer Covestro has launched post-consumer recycled (PCR) polycarbonates made from end-of-life automotive headlamps, in a move aimed at strengthening circularity in the auto industry. These TÜV Rheinland-certified grades, containing 50 per cent recycled content, are now commercially available for new automotive applications.Developed under a joint programme led by GIZ, with Volkswagen and NIO as key partners, the recycled material is currently being validated for use in future vehicle models.""This new line of polycarbonate represents a significant step in supporting the autom..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?