delay warning! One third of Asian flights will be cancelled, with the latest suspension summary attached
according to the latest report of project44, in order to cope with the decline of export freight volume, the shipping alliance is preparing to cancel more than one-third of Asian routes in the coming weeks.
The blank navigation strategy adopted by these alliances to mitigate the impact of the epidemic blockade will further prolong the delivery cycle of goods, especially the voyage to northern Europe.
Project44 said in the report that after the outbreak of COVID-19 in China in the first quarter of this year, the shipping company implemented a variety of mixed blank navigation strategies to maintain the integrity of the shipping schedule.
This year, the suspension percentage of the world's three major container shipping alliances fluctuated between 17% and 55%. Liner companies still use blank sailing to better control their capacity, achieve the integrity of shipping schedule and ensure that the capacity is available in the right place.
According to the data of project44, the blank voyages of 2m alliance have decreased before, but now it seems to be increasing. In the next few weeks, 2m alliance will have more blank voyages than other alliances.
Due to the decline in demand caused by the closure and control of the epidemic in China, it is expected that between the 17th and 23rd weeks, the alliance will cancel 33% of the Asian flights, ocean will cancel 37% of the Asian flights, and 2m alliance will cancel 39% of the first flights.
2m Alliance announced a blank voyage, and Herbert issued a port hopping notice
Mediterranean Shipping recently announced that due to the continuous challenging market situation leading to the congestion and delay of the whole supply chain, the following flights will be cancelled:
Asia East US Route:
Routes from Asia to Europe:
In addition, MSC also said recently that "due to the continuous severe market situation", the voyage of 18340teu "Mathilde Maersk" on its ae10 Asia Nordic route between silk and Maersk would be cancelled in early June.
Maersk said that the unprecedented severe congestion in global ports will continue to lead to cumulative delays on multiple flights from Asia to the Mediterranean service network.
This situation is caused by increased demand and measures taken by the whole port and supply chain to combat the epidemic. The accumulated delays are now causing further gaps in shipping schedules and have led to more than seven days between departures from Asia.
In this regard, Maersk decided to start adjusting the voyage to match the corresponding ships and services.
In addition, Herbert has also issued a shipping schedule adjustment notice. Its MD1, MD2 and MD3 routes from Asia to the Mediterranean will cancel the connection with Shanghai port, Ningbo port and Busan Port in the next eight weeks.
At the same time, due to the reduction of export volume and the resulting cancellation of voyages, the delivery time of goods from Asia to northern Europe continues to increase. According to project44, the delivery time of goods from China to northern Europe and the UK has increased by 20% and 27% respectively in the past 12 months.
Congestion in Shanghai port and Los Angeles Long Beach port
In terms of port congestion, the report of project44 shows that the detention time of import containers in Shanghai Port reached a peak at the end of April, nearly 16 days, while the detention time of export containers remained relatively stable, about 3 days.
"The long detention time of imported containers is due to the shortage of truck drivers who are unable to pull out the unloaded containers in time. Similarly, the sharp decline in the volume of inbound exports means that the number of containers shipped from Shanghai is reduced, which shortens the detention time of export containers," it explained
However, Maersk announced yesterday that the density of the refrigerated cargo yard in Shanghai port has gradually decreased, and it will restart accepting the refrigerator reservation in Shanghai. The first batch of goods received will arrive in Shanghai from June 26.
In addition, the congestion of Long Beach port in Los Angeles has improved. According to the official website of Los Angeles port, as of May 9, there were 36 ships waiting to berth outside the two ports, and the average waiting time of ships outside Los Angeles port was 2.6 days.
The project44 report points out that the improvement of port conditions in Southern California may not last forever, because the upcoming labor contract negotiation may lead to a shortage of dockers, reduce port efficiency, and prolong the queuing time of ships in summer.
As some Chinese factories resume normal production, a large number of containers will be transported to the US coast, which may further complicate the problem of the already strained multimodal transport system.
Disclaimer
The information in this report comes from public data. Tianjin Keyun Logistics Group Co., Ltd. makes no guarantee for the accuracy and completeness of these information. The information, conclusions and views contained in the report are only for reference. Any investment decision made by the investor on this basis has nothing to do with the company.
2022-05-13 Read 175