Container segment schedule reliability has bounced back from lows in January and April to reach a 2024 high. While the sector has been able to stabilise after the shock caused by the Red Sea diversion, it is still well behind the post-pandemic period and Maersk is warning customers that the pain will continue.
Monthly analysis of global trade reports released by data intelligence firm Sea-Intelligence showed container liner shipping routes rebounded to nearly 56 per cent, the highest level this year. However, in the mid-1950s the rate was at the same level as at the end of 2022 and 10 percentage points behind the 2023 recovery.
"This is the highest schedule reliability figure for 2024," noted Alan Murphy, CEO of Sea-Intelligence. "May 2024 schedule reliability was 11 per cent percentage points lower." He noted that compared to the same period last year.
In an interview with customers, Maersk CEO Vincent Clerc told them that the coming months will continue to be challenging for carriers, as he predicted that disruptions in the Red Sea will continue into the third quarter of 2024. He noted that extended rotations around Africa over long distances require two to three vessels. With availability of additional capacity low to begin with, Clerc said all the vessels that could sail were hired. Vessels previously underutilised in other parts of the world have been redeployed to plug holes, he said.
This was evidenced by the overall improvement in schedule reliability between April and May and the fact that 10 of the top 13 carriers all improved between April and May, with Duffy, Liner and Maersk showing the greatest improvement, now all over 55 per cent. EVA Air showed similar strength in May, but the three Asian carriers, Wan Hai, Yang Ming and PIL were the only top carriers to show a decline between April and May. The average for the top airlines was 51 per cent, down from 64 per cent.
"Despite improvements in schedule reliability, the average delays for ships arriving late have worsened," Murphy emphasised. "This figure is now closer to the pandemic high than the pre-pandemic low."
Asian ports are particularly challenged, with reports of increased vessel stacking and waiting times due to disruptions to European-bound schedules. Singapore is particularly challenged, with reports that it is accelerating the opening of new berths and restoring closed space in the old terminal to address delays. In the US, Baltimore continues to be rerouted, while Charleston is experiencing reduced capacity while working on the seawall at the terminal. Charleston suspended the work in June to help reduce the backlog.
However, Sea-Intelligence calculates that the number of late arrivals has increased by 0.34 days per month. The average is now 5.1 days. This is better than the nearly 6.2 days in January, but significantly behind the 4.4 days a year ago. So far, the 2024 average is second only to the peak during the pandemic and the surge in container volumes.
Maersk reported that it is taking all reasonable steps to keep supply in line with capacity demand. However, they also warned that higher shipping prices due to rerouting could reignite inflation.Clerc told customers that they could return to normal routes quickly, but that this would not happen when the safety of seafarers, ships and cargoes was assured.
https://maritime-executive.com/article/schedule-reliability-for-boxships-rebounds-to-highest-level-in-2024
|
Back:
Next:
