The knock-on effects of the blockage of the Suez Canal is likely to impact North Europe supply chains until June.
Container hub ports that used the week-long lull from ship arrival
delays to prepare their landside facilities for the box onslaught are
now “full to the brim”, according to a carrier source.
Container lines have discharged Asian imports wherever they can to
turn ships around in North Europe as quickly as possible and return
vessels to Asia, where several weeks of full loads at highly inflated
spot rates await.
Moreover, the calls have prioritised the back-loading of as many
empties from stacks as possible, often leaving urgent exports on the
quay in order to restock cleaned-out carrier depots in China.
In many cases, importers are being advised by their carriers that
their delayed cargo has been discharged, but also given the bad news
that it’s at the wrong port – and the even worse news that there is no
schedule for the relay of their boxes.
One carrier source told The Loadstar there was “a perfect storm” facing the overlanded cargo.
“We don’t have the time or any spare capacity to relay the cargo,
there are no open ships on the market and our feeder operators are also
full,” he said.
Meanwhile, a feeder operator contact told The Loadstar: “We
are battling with long delays versus the planned turnaround times in
port, we are way beyond the new normal and it is a catastrophe,” he
said.
“We cannot go from 10-day voyages to 14-day voyages, and even longer
to 16 days-plus, because there is a big black hole at the ports,” he
added.
The feeder operator has had a congestion charge in place for
Rotterdam since November, but claimed that, despite their new-found
riches, carriers would not accept the surcharge.
“There is no point in even talking to them, as they will not accept
the charge, but we will go back to them if the situation does not
improve quickly,” he said.
Non-operating containership owners are also increasing the pressure
on feeder operators that traditionally charter ships for relatively
short periods with extension options in order to offer maximum
flexibility, by demanding that they fix for longer periods at
considerably higher daily rates.
Congestion at the Benelux hubs of Rotterdam and Antwerp is also
delaying hinterland barge operations. According to operator Contargo,
the average waiting time for the handling of its barges today is 34
hours at Rotterdam and 41 hours at Antwerp.
“We do not foresee any improvement in the situation in the next four
to six weeks,” said the feeder operator, adding that even then there
would be a “significant stress” on its resources.
Nevertheless, carriers’ strategy to do whatever necessary to turn
their ships around as fast as possible in North Europe will see an
earlier recovery of schedules than would have been the case if vessels
had waited at anchor outside originally designated ports that have
subsequently become congested.
According to an analysis by SeaIntelligence, the negative effect on
capacity for the Asia-North Europe trade from the Suez Canal stoppage
will be over by week 22, after nine weeks of disruption.
“In essence, the Asia-North Europe trade is on track to have all the
effects [of the Suez disruption] removed by early June,” said
SeaIntelligence chief executive Alan Murphy.