Due to the surge in imports, the ports of Los Angeles and Long Beach, the largest ports in the United States, are continuing to bear the pressure of a large number of containers entering the ports. At the same time, the ports are seriously congested and a large number of ships are waiting to berth.
The large accumulation of container ships near Long Beach and Los Angeles is having a knock-on effect on the entire container industry. It is an uncertain factor when the market will return to normal. At the same time, shipping companies are planning to reduce trans-Pacific services and change demurrage time.
At present, there are 19 ships berthing at the Port of Los Angeles, and 14 ships are waiting outside the terminal for berths. According to Nerijus Poskus, vice president of shipping at Flexport, in the last week, 300,000 TEUs were waiting to be unloaded at the port. This has a great impact on other markets where there is a clear shortage of containers.
"Congestion is unlikely to continue into the second half of 2021, but it will last at least two or three months, or even four months . In the port of Los Angeles and other matters worse, there are 33 ships waiting, there may be 50 ships within a few weeks While waiting, all these additional ships will also enter the United States. Therefore, these containers will not return to Asia soon.” Poskus said on Tuesday.
Part of the voyage to the US West was cancelled
According to Lars Jensen, CEO of Seaintelligence Consulting, the large-scale accumulation of ships on the west coast of the United States is having an impact on shipping services. He pointed out that Hapag-Lloyd will announce the cancellation of 21 Asian and North American routes in February this week. Between voyages.
Jensen said it was a decision that had no choice due to delays.
In addition, due to increased congestion at the Los Angeles port, which has affected delivery guarantees, CMA CGM appears to be shutting down its transpacific express service.
According to Alphaliner, the French shipping company has closed its trans-Pacific premium SEA-X service and plans to open a new route between China and the West Coast competing port: Oakland and Seattle.
If the container fails to be shipped out at the Los Angeles terminal before the agreed date, the SEA-X service will provide the shipper with a refund.
Alphaliner pointed out: "Obviously, the serious congestion at the port of Los Angeles makes it difficult for CMA CGM, in fact, almost all shipping companies to guarantee on-time delivery."
It is reported that the SEA-X service operates outside the Ocean Alliance’s trans-Pacific network and has deployed 6 ships with a capacity of 3,700-6,300 teu. Alphaliner learned that three of the ships have been transferred to the new Golden Gate Bridge service. The port call will be Shanghai-Yantian-Oakland-Seattle-Kaohsiung.
The last stop of the SEA-X service will be the CMA CGM Elbe round, which will arrive in Los Angeles on February 13.
The SEA-X service was launched in the second half of last year. The target customers are shippers who are willing to pay extra to avoid traffic congestion in Southern California. However, according to Simon Heaney, senior manager of container research at consulting firm Drewry, this congestion has spread since then and could lead to the complete end of advanced services in the industry.
"Congestion has created demand for high-end products, but the problem has deteriorated so fast that it may be difficult to fulfill the promise and be forced to refund the guaranteed shipping part (at least one carrier will bear a 200% refund )."
Change the free time of demurrage at U.S. ports
From March 1, 2021, Hapag-Lloyd will modify the free time for import demurrage in the United States as follows:
▍U.S. West Coast Port: Los Angeles/Long Beach
▍American West Coast Port: Oakland
▍Port of Jacksonville, USA (Jacksonville):
▍Port Newark：MAHER TERMINAL
Legend:
DOD = Day of Discharge DOD
WD = Working Day for the USA (excludes Sat, Sun, Bank Holiday)
WD = Working Day for Canada (excludes Sat, Sun)
CD = Calendar Day
