Container trades out of India are faced with increasing congestion,
due to a combination of blanked sailings, equipment shortages and
carriers unable to clear a backlog of bookings.
According to forwarding sources in the country, every carrier is
facing a “space crunch across India on all tradelanes and services”.
Sources added that this was largely due to blanked sailings on almost
every tradelane, container shut-outs and rollovers “on every vessel”,
an ever-lengthening list of bookings due to cancelled sailings, growing
congestion at transhipment facilities “due to shortage of manpower and
voided vessels and limited vessel berthing windows, also due to
“manpower shortage and other operational issues”.
Carriers have adopted the same strategy of blanking sailings
prevalent in almost every other trade, which they say has been in
response to reduced demand.
According to liner database eeSea, this month carriers have withdrawn
24% of capacity on the India-Far East trade, blanking 23 out of 120
scheduled sailings.
Next month, a further 17% capacity is expected to be withdrawn – with 17 blankings already announced.
Last week, Maersk announced new blankings on the India-Far East FS12
and FS13 services during August, with frequency effectively reduced from
weekly to fortnightly.
“We will be ensuring the impact to our customers is minimised by
rebooking the cargo to best available product as there is sufficient
capacity available via these alternative services,” the line said.
Freight forwarding sources in India disputed that there was enough
capacity and said there was a similar situation on trades to North
American and European ports, with void sailings every alternate week –
“and we are given to understand that situation is likely to continue for
another three-to-four weeks”.
The sources added that this was having an impact on bookings and procurement of export containers.
“Carriers are not able to issue bookings on immediate vessels even
though the schedule is there – and sometimes they are releasing it on
two-to-three-weeks advance sailings, so there is struggle to meet
customers’ requirement for immediate dispatch of their cargo, as
bookings are getting declined on current week sailings.
“This means all carriers are flooded with bookings and there are extreme space issues and huge booking rejections,” one said.
Meanwhile, the continuing problem of clearing import containers due
to lockdown restrictions in India meant most carriers were facing an
“acute shortage of inventory in almost all load ports”.
CMA CGM announced on Friday it is to rejig its Asia-Subcontinent
Express (AS1) service next month, which will see calls at Shekou and
Port Klnag dropped in favour of a new call at Nhava Sheva, which may
alleviate some pressure for Indian forwarders.
The string deploys six vessels with an average capacity of 8,700 teu,
according to eeSea, with CMA and CGM and Cosco as vessel providers and
Maersk and OOCL chartering around 10% of the slots each.