The global supply chain crisis is more than just port congestion

Global supply chains have faced several major disruptions in 2021 and port congestion is just one of them. Disruptions to ship schedules with increases of up to 45% in the rate of container overturns, increased transit times and increased dry runs are among the underlying factors causing delays shipping and global supply chain disruptions.

These measures were monitored and analyzed by project44, the world’s leading container visibility platform, explained Josh Brazil, vice president of Data Insights at project44.

“While the current supply chain disruptions have been largely attributed to port congestion, we have
followed a few other correlated measures that are contributing to this unprecedented global crisis. Looking at the future blank sailing schedules, there doesn’t appear to be any immediate improvement on the horizon and we don’t see the situation improving until the Lunar New Year in 2022, when China will shut down for about two years. weeks. At the same time, also keep in mind that around 60,000 to 70,000 containers are expected to enter service around mid-2022 and that many of the new ship orders will be at sea by mid-end of 2023. “

Container overturns

The global movement of containers has been significantly affected by an increasing number of rolled and delayed containers at major transshipment centers around the world, Brazil said:

“Ports were never intended to be storage facilities and in most cases the average dwell time of transshipment containers was up to 5 days. ”

A three-year data map analyzed by the Transshipment Container Project44 only shows the ratio of container spills at major ports between 2019 and 2021.

Among the main transhipment ports taken into account in the analysis,

  • Port Klang had the highest turnover percentage of 58.45% in 2021, an increase of 37.94% from 2020.
  • Shanghai recorded 38.66% rollovers in 2021, an increase of 45.22% over the rollovers in 2020.
  • Algeciras, Jebel Ali, Pusan, Tanjung Pelepas, Hong Kong and Singapore all had a higher percentage of bearings in 2021 compared to 2020, but the percentage change was lower than in 2019-2020.
  • On the European side, Rotterdam posted an increase with rollovers going from 38.95% in 2020 to 51.00% in 2021, an increase of 30.94% compared to the variation of 7.42% in 2019-2020 .

For Josh Brazil,

“The increase in rollovers at the main transshipment ports around the world is a worrying factor in terms of reliable schedules. This means continued uncertainty in the schedule, constant increases and delays in delivery times. “

Disclaimer: Rollover percentages are based on the percentage of containers that have been loaded onto a vessel other than the originally intended vessel. Rollovers can occur for a variety of reasons and these numbers do not necessarily correlate with the quality of operations of the carrier or port involved.

Transit time

According to data from project44, container transit time also increased significantly between 2019 and 2021 for major corridors from China to the west coast of North America and from China to Europe. Transit time in this analysis refers to the time it takes for a container loaded onto a ship in a port of loading (PoL) to reach the port of unloading (PoD).

When comparing the main ports of China to the west coast of North America, Yantian recorded the largest percentage change in transit time, increasing 42.11% in 2021 from its 2020 levels, while Ningbo recorded the smallest percentage increase at 27.78%.

Compared to 2019 levels, transit time increases in 2021 were all over 40%, which is significant given already stressed supply chains. On service to Europe, Shanghai recorded the largest percentage increase in transit time, increasing 30.56% in 2021 from its 2020 levels, while Qingdao recorded the smallest percentage increase, at 25%.

Compared to 2019 levels, transit time increases in 2021 were all over 35%, which is important because it contributes so much to shipping delays to the point where consumers don’t get what they want, whenever they want.

Blank sails

Clear sailing is another major factor impacting container rollovers and according to Josh Brazil:

“Clear sailing is a key factor in the disruption of the network. The number of containers sitting in transshipment ports on “sweeper” ships has distorted the balance of the global network. “

In this analysis, blank sailing occurs when a ship that needs to call at a specified port skips that port. Data kept by project44 shows an increase in the number of ships that have skipped their scheduled port calls, leaving hundreds of thousands of containers and millions of shipments behind, putting additional pressure not only on consumers, but also on terminals. container and staff.

Tanjung Pelepas in Malaysia recorded the highest number of blank crossings in 2021 with 31 blank crossings, which is a slight improvement over the 35 blank crossings in 2020. It is still higher, averaging around three ships that skip the port per month.

The largest increase in the number of blank crossings, however, was Port Klang which recorded 13.5 blank crossings in 2021 compared to 1.25 blank crossings on average in 2020 on the same services. This is a staggering 980% increase from 2020.

According to project44’s analysis of the carrier’s sailing schedules, the trend of blank crossings appears to continue through November and December 2021 with up to nearly 50 blank crossings on some routes.

For Brazil,

“Blank crossings have had greater consequences for collection services, smaller ports and inherently hard-to-serve markets such as Iraq and Indonesian outer ports. Export markets in the United States and Europe have been crippled due to these dry runs as carriers miss opportunities to reposition empty containers to Asia where they are in high demand. We have seen that carriers are, however, looking for service opportunities where they could possibly get 2-3 additional vessels on the east-west trade for empty repositioning as it would be better for them to move voids than to use them for exports as much of these exports concern low-cost products which monopolize the equipment.

Disclaimer: The data referenced in this release is from project44’s Freight Visibility Platform, which is based on
the logistics indicators that the platform monitors. Not all referenced sample datasets include
freight movement data tracked by other entities. Project44’s platform data reflects a
significant sample size to draw conclusions.