Introduction: The shipping industry plays a crucial role in global trade, connecting businesses and consumers around the world. However, recent developments have brought about new challenges that carriers and businesses must navigate. In this blog post, we will explore the current state of imports and exports, shedding light on the strategies employed by carriers to increase vessel utilization and highlighting the difficulties faced by exporters. Additionally, we will discuss equipment availability, booking challenges, and berth congestion in different regions. Let’s dive in!

Imports: Enhancing Vessel Utilization Amidst Market Uncertainty

With a decline in volumes originating from Asia and the need to optimize vessel utilization, carriers find themselves in a battle of rate levels. However, as the market approaches pre-COVID levels, there is a growing likelihood of blanking sailings in the coming months. This practice involves canceling scheduled vessel departures, often due to low demand. Some carriers have already begun implementing this strategy, choosing not to replace vessels as they undergo dry docking. By strategically managing capacity, carriers aim to strike a balance between meeting customer demands and maintaining operational efficiency.

Exports: Navigating Booking Challenges and Equipment Availability

Exporters, particularly those operating from Nelson and Lyttelton, have encountered issues related to equipment availability. This shortage of containers can disrupt supply chains and hinder the timely movement of goods. Furthermore, advanced bookings have become increasingly challenging, with many shipping lines imposing cancellation fees, schedule changes, and reduced booking windows. To overcome these hurdles, it is recommended that exporters engage in proactive discussions with their Customer Services representative to explore the best possible options for handling bookings.

Middle East Cargo: Limited Carrier Options

Currently, MSC, OOCL, and ONE are the only carriers accepting cargo to the Middle East. This limited availability can present challenges for exporters seeking efficient and reliable transportation options. It is crucial for businesses operating in this region to stay informed about carrier updates and explore alternative routes to ensure their cargo reaches its destination on time.

Berth Congestion: Improvements and Minor Delays

Berth congestion, a common issue in busy port areas, has shown signs of improvement in North-East Asia. The average delay currently stands at 0.5 days, which is a positive development for carriers and businesses alike. In South-East Asia, minor berth congestion persists, resulting in delays of around 0.5-1 day. Being aware of these delays can help exporters plan their shipments more effectively and manage customer expectations.

Conclusion:

The shipping industry is not immune to challenges, and it is essential for carriers and businesses to stay updated on the latest developments. As the market undergoes fluctuations, carriers employ strategies like blanking sailings to optimize vessel utilization. Meanwhile, exporters must navigate equipment shortages, booking challenges, and limited carrier options to ensure their goods reach global markets. By proactively addressing these obstacles and exploring alternative solutions, stakeholders in the shipping industry can continue to facilitate international trade despite the complexities that arise.