The global sea shipping situation

21-03-2022

The Australian Department of Agriculture, Water Resources and the Environment notified in February that China had been added to the list of countries at emerging risk for the Brown Spotted Bed Bug (BMSB). Several species of live BMSB have been detected in containers in the country in recent weeks - make sure you stay informed about these evolving guidelines.


Will add random checks:


Items Made in or Shipped from China

FCL/FCX container for cargo transported in sealed six hard-sided containers

Goods subject to duties under Chapters 39, 68, 69, 70, 73, 84, 85 and 89

LCL/FAK containers and bulk cargoes are not covered by the increased inspection activities.


Average late ship delay

Graph showing average delays for late ships


The deterioration is expected to continue in the short term

Demand continues to increase, resulting in agglomeration of ships, berthing delays and reduced yard capacity

Carriers use blank/void sailings to mediate congestion


Reliability of sailing schedules remains poor due to port congestion. Longer anchor times outside U.S. ports will result in delayed return of ships to Asia. Carriers have deployed sweepers to help ease the backlog of empty containers.


Other notes to keep in mind:


Forecast at least 6-8 weeks

Prioritize

SKU/part variability

Flat weekly volume

Communicate regularly with CH Robinson

Asia

The operator owns 99% of the world's total vessel capacity due to strong demand. However, due to severe port congestion, ships are delayed, waiting for berths, and port processing has slowed due to staffing shortages caused by COVID-19. As a result, there are void sailings in the market - causing delays of 3-4 weeks. Carriers are realigning their fleets to avoid gatherings as much as possible.


Air navigation has greatly tightened the space from the United States to North Asia in the short term. The extent of the suspension is due in part to current port congestion on the U.S. West Coast (USWC) and planning around the Spring Festival and the Chinese Olympics.


Europe

Airlines have currently suspended services to Ukraine and Russia. Most carriers have announced that any cargo already in transit will be held in transit ports pending further instructions from shippers.


The situation in Ukraine and the resulting sanctions on Russia could affect capacity to and from Europe, the Middle East and North Africa. Shipping companies have announced many service suspensions/port omissions to both countries. Capacity transfers to other ports and possibly air travel may develop in the next few weeks.


Omissions at European ports have increased as congestion has increased, particularly in Hamburg, Rotterdam and UK ports. Ocean carriers continue to impose UK port congestion surcharges.



South America

With many carriers suspending or limiting service, there is significantly less space to access West Coast ports.


Ships in San Antonio, Chile wait 20 days to berth

An average of 10 days at anchor in Callao, Peru

Carriers are currently leaning toward rail routes through the Port of Houston or promoting U.S. East Coast (USEC) service.


South Asia

Several carriers are limiting booking acceptance to destinations with heavy port congestion, especially Bangladesh. Pricing at USWC ports is significantly higher as operators try to encourage more direct service through USEC or U.S. Gulf Coast (USGC) ports.


Oceania

Many carriers have reservations in March. Reservations should be made at least 5-6 weeks in advance.


West Coast destinations from Asia have limited capacity and delays at transshipment ports. If safe arrival is critical, premiums are required.


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