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11/22/2024 12:53:11 pm

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Schedule Disruptions Creating Headaches For Asia Shipping Companies

Port Congestion Plagues Asia

(Photo : Source: Reuters )

Frustration and anger abounded at shipping ports throughout Asia as agencies scrambled to find solutions to the ever-growing problem of disrupted shipping schedules. 

Shipping schedules were in disarray as logistics problems increases at ports across Asia, according to a recent study by JOC.com. The situation was out of control and could lead to anuncertain future and lost profits, sources said.

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Robert Sallons, managing director of Cheng Lie Navigation Co. (CNC Line) told JOC.com logistics problems were spreading throughout Asia including ports in Korea, China, Hong Kong and Vietnam.

"We operate with a 21-day port rotation but lose up to 12 days in Manila alone," Sallons said, "so by the time we get to Cat Lai we are already bumping into the next rotation. Wait times in Hong Kong are 18 to 36 hours. It means we are forced to lose one rotation every 21 days."

CNC Line operates exclusively in Asia and has a heavy workload as it is estimated that it will carry one million 20-foot containers this year alone. Although business is looking up for CNC Line, there hae been other problems that have accompanied its prosperity as of late.

"The container volumes are strong in intra-Asia, the fuel price is down and freight rates are stable. But we are having to spend more money on schedule recovery than before. On long haul Asia-Europe services carriers can recover schedules between ports, but that cannot be done in Asia where the transit times are so much shorter. So we have to increase speed or slide services," Sallons said.

Given current delays, it may be virtually impossible for carriers to use other options such as adding an additional vessel to a string.

"Normally we would add a fifth ship to a four-ship string to buffer any delays, but shorter voyages mean it would not work even with an extra vessel. And because volumes are so strong, port omissions are no longer viable," he said.

In Manila, Philippines, shipping headaches have grown substantially since the implementation of a municipal goverment-imposed daytime truck ban in February. The ban was implemented to curtail to notorious gridlock in the nation's capital city. Car traffic continued and shipping problems have only grown since the ban on daytime truck use.

Michael Azrak, general manager of CMA CGM Philippines, said that the average time for dwelling at for import cargo Manila's main port is now a staggering 12 days.

"All the depots are full and apart from the empties, there are many laden containers that consignees have not picked up," he said.

The Philippines Ports Authority announced this week that custom-cleared containers in the port must be collected or they would be sent off to the ports in Batangas and Subic.

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