North European Ports Brace For Capacity Crunch

North European container ports are facing a potential capacity crunch in early February, as the armada of alliance vessels from Asia that have been re-routed around Africa reach the Channel, says an article published on loadstar website.

Summary

• North European container ports are anticipating a potential capacity crunch in early February due to an armada of alliance vessels rerouted around Africa from Asia.
• Loops from Asia to North Europe, which left their last load ports in Asia at the end of December, now present revised Estimated Time of Arrivals (ETAs) in early to mid-February.
• Vessel ETAs have been delayed by 10 days or more, leading to fierce competition among alliance carriers to secure arrival slots at hub terminals.
• The situation is compared to the Suez Canal blockage in March 2021, but the anticipated congestion is not expected to reach the same levels.
• Carriers are closely monitoring the industrial action in Germany, which has the potential to disrupt intermodal operations for extended periods.

Armada Rerouted, Impending Surge In Container Traffic

North European container ports are on the brink of a potential capacity crunch in early February as an armada of alliance vessels rerouted around Africa from Asia approaches the Channel. The strategic rerouting is a response to various logistical challenges and geopolitical events impacting traditional shipping routes.

Loops from Asia Pose Operational Challenges

Loops from Asia to North Europe, having left their last load ports in Asia at the end of December, now present revised Estimated Time of Arrivals (ETAs) in early to mid-February. The anticipated “vessel bunching” scenario is expected to lead carriers to consider port rotation changes and operational consolidations, reflecting the adaptability of the shipping industry.

ETAs And Port Rotations, A Complex Juggling Act

Vessel ETAs have been delayed by 10 days or more, depending on whether voyages were paused. Alliance carriers are in fierce competition to secure arrival slots at hub terminals. The situation is further complicated by multiple alliances, each with their own ETAs, creating an intricate puzzle for port authorities to manage.

Learnings From the Past, Managing Congestion Amidst Challenges

Comparisons are drawn to the Suez Canal blockage in March 2021, emphasizing that the anticipated congestion is not expected to reach the same levels. Despite the challenges, recent reports suggest manageable utilization levels of 60-70% at key hubs, instilling confidence in the industry’s ability to navigate the surge in vessel arrivals.

German Industrial Action, A Potential Disruptive Element

Carriers are closely monitoring the industrial action in Germany, recognizing its potential to disrupt intermodal operations for extended periods. A contingency plan is in the works, highlighting the industry’s proactive approach in mitigating potential challenges.

Westbound Voyages, Fully Booked Until Chinese New Year

All westbound voyages from Asia are reported to be fully booked until Chinese New Year on February 10. Some carriers indicate full bookings until the end of February, reflecting the heightened demand for shipping services during this period.

HMM Adds Extra Loaders Amid Soaring Rates

South Korean carrier HMM responds to the situation by adding extra loaders, operating outside its vessel-sharing membership of THE Alliance. The move is a strategic response to the soaring market rates, reaching up to $10,000 per 40ft for prompt shipments from China to North Europe.

CEO Insights, Volatility without Catastrophe

Sea-Intelligence CEO Alan Murphy acknowledges the volatility in carriers’ networks but emphasizes that enforced schedule changes should not be labeled a “disaster” for shippers and their supply chains. Despite challenges, the disruptions are deemed manageable, drawing a distinction from the more significant upheavals experienced during the pandemic.

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Source: loadstar

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