Sea Archives | Page 68 of 71

COVID outbreak impacts Ningbo port

Jan 13, 2022 | China, Sea, Supply Chain

The suspension of trucking services in several parts of China’s Zhejiang province, followed a COVID outbreak just over a week ago and has slowed the movement of cargo through one of China’s biggest and most important ports, Ningbo.

Strict controls were imposed on lorries moving goods to or from the Beilun district in Ningbo after the discovery of several cases of COVID in the area.

This suspension, along with restrictions on truckers in some areas in and around Zhejiang, halted operations at some yards and warehouses at Ningbo port.

The curbs began last week after the city reported an outbreak of COVID which led to the closure of container freight stations and factories in the Beilun district near to the port, raising fears that importers would be unable to stock up their inventories, forcing them to look for alternative shipping or products, which may feed into higher costs for the consumer.

Ningbo is one of the world’s top container gateways and a crucial part of the global supply chains that connects importers to factories in East China. The port was partly shut for weeks last August after a COVID outbreak, causing a slowdown in exports, disruptions and congestion across supply lines.

Container loading and discharge operations at Ningbo port have been operating normally, but the impact on trucking and access to the port has been severe, making it extremely difficult to bring containers in or out, adding to concerns that shipping lines may decide to omit Ningbo.

With just a few weeks until Chinese New Year many shippers have been diverting consignments to alternative ports, particularly Shanghai rather than risk long landside delays at Ningbo.

Yesterday the trade press were reporting that a major complication is the lack of trucking permits for commercial vehicles to enter the Beilun district, with just 6,000 permits released for the 20,000 trucks in the area and truckers with permits must take two nucleic acid tests in three days and are required not to leave their vehicles while in the marine terminal. In a customer-advisory, Maersk said that just 10% of trucking capacity is operating in the Ningbo area.

In a fast-moving situation, our network partners in Ningbo have confirmed that the port and local trucking has resumed normal operations and they expect that any backlog will be cleared quickly.

Elsewhere, nucleic acid testing for drivers are creating delays for local trucking and transport in the Shenzhen and Tianjin areas, but the cities are not closed and port terminals are operating normally.

Metro are operating our own container vessels within our group of companies from Ningbo and Shanghai directly to the UK for discharge and reloading. We have vessels loading this week at both ports and have not experienced any impact with departures operating on time against our schedules as we use alternative terminals. Once they have left China they do not stop at any further ports en route and we can achieve the fastest available transit into the UK for our customers.

For further information please contact Emma Hulbert who can discuss your specific requirements and share detail of the programme which will be running continually throughout 2022. A very exciting and unique platform available through Metro.

Supply chains have never faced so many challenges and with local conditions changing rapidly it is critical that you have the support of dependable partners.

Metro will always share the latest news and most important developments, providing you with the best alternatives and options, to keep your supply chain optimised.

For further information and to discuss your ongoing requirements please contact Elliot Carlile.

2021; a year of supply chain challenges

Dec 21, 2021 | Air, Brexit, China, EU, Metro, Road, Sea, Sea/Air, Supply Chain

All around the world, companies have been impacted by supply chain challenges in 2021. With the pandemic’s disruption exacerbated by ‘Black Swan events', from Brexit, to the Suez Canal blockage, we have been working tirelessly to help our customers overcome these challenges and share critical information, so that they are always informed of what lies ahead.

Ensuring the right product is available for delivery, to the right customer, at the right time, in the right quantity and in the right condition becomes increasingly difficult when supply chains are pressured and unforeseen events impact operations.

To keep our customers and followers informed during 2021 we have been approached for our opinions regularly by the trade and national press, contributed to countless articles and shared breaking supply chain news, guides and insights, including:

40 supply chain bulletins, to a combined audience of 32,000
200 news updates on our web site attracting >100K page views
1000+ social media posts, reaching over a quarter of a million users

Our first bulletin of 2021 highlighted early Brexit-related issues and outlined the rates, vessel space and equipment availability challenges that lay ahead.

A few bulletins in and we were considering the supply chain impact of the UK’s vaccine programme and, in preparation for the anticipated volume increases, were adding new personnel in key operational departments.

US port operations, particularly on the West Coast began to buckle under relentless volumes in early March, while European, North American and UK ports were anticipating a lull after the Evergreen EverGiven blocked the Suez Canal for six days, from the 23rd March.

Lockdowns continued to ripple across Asia from April and container equipment shortages really began to bite, exacerbated by the ‘Suez Effect’, driving desperate shippers to move urgent cargo to air freight, with massive rate increases impacting many trade lanes and Metro’s Sea/Air services proving very popular with increasing numbers of smarter shippers.

May; and the same week we’re urging shippers to start planning their Christmas shipping schedules, the key Chinese port of Yantian stops accepting containers, after a coronavirus outbreak in the port area. Within weeks and the impact of the port’s closure has spread way beyond southern China, with carriers recording their worst ever transit times and rates at historic highs - 1,000% higher than 2020!

News of the heavy goods vehicle (HGV) driver shortage made mainstream news in June and Yantian finally opened, though Ningbo was to close just weeks later, after a single port worker tested positive for COVID-19, contributing to further sea freight rates increases, pushing increasing quantities of ‘distressed’ ocean cargo to air freight.

Throughout the year, while air freight has been uncertain, it has proven stable in comparison to shipping, with airlines being reactive and agile, switching on flights quickly to meet demand, where they have perceived a reasonable return on the investment and we have been ready to add charter capacity, to ensure that our customers’ expectations are met and delivery deadlines achieved.

Into the 3rd quarter and vessel space and the container equipment crunch continues, with market demand exceeding supply and rates skyrocketing. HGV drivers are considering strikes for better conditions, while demand for haulage is more than twice the 2019 level and 70% of hauliers are concerned about EU border checks due to come into force at the beginning of next year.

Metro’s technology team, meanwhile, have been integrating HMRC’s Customs Declaration Service (CDS), which will serve as the UK’s single customs platform, with our market-leading MVT supply chain platform and the CuDoS system, which automates and submits customs declarations in line with HMRC and EU regimes.

Our team also supported the development and adoption of emerging technology, across the shipping industry, by participating in the successful testing of new e-Bill of Lading (eFBL) standards, with FIATA , the trade association for 40,000 freight forwarding and logistics firms in 150 countries.

The final quarter of 2021 and the HGV driver shortage is intensified by further losses to the retail sector, factories in China are forced to close, due to power shortages, container carrier reliability drops to all-time lows, with ports subsequently omitted, to try and restore schedules.

Passenger airlines finally begin to convert and reduce the number of aircraft operated in ‘preighter’ configurations and return to flying scheduled passenger services on European, transatlantic and long-haul routes.

As the year draws to a close, experts warn that the UK may run out of warehouse space, many shippers are still not ready for full UK border controls, manufacturing costs reach a three decade high, Omicron makes its debut and we share some Critical Christmas considerations.

This year we have also welcomed 60 new colleagues, to our Birmingham HQ and expanded our operations and platforms significantly, to ensure we deliver continued excellence, proactive communication and essential planning to customers. It’s what we do, to ensure we remain at the forefront of the industry, leading the evolution of freight and the dynamic solutions that benefit your supply chains.

However this year ends and whatever next year brings, you can rest assured that we will be available and ready to keep your supply chain running. Let’s keep talking and evolving as partners in an unpredictable environment and world. You are in safe hands!

Thank you for your support, Merry Christmas and Happy New Year.

Freight market report – December 2021

Dec 16, 2021 | Air, Rail, Sea, Sea/Air, Supply Chain

With supply chains battling through overwhelmed transport systems, material shortages, and infrastructure disruptions for close on two years, we asked our partners in seven key markets to share their thoughts on critical operational elements, including demand, capacity and rates.

AIR

In most regions airports are operating normally, or are improving, though there is uncertainty about the impact of Omicron and there are backlogs and operational challenges at Indian hubs.

Shanghai is a notable exception, with strict quarantine regulations in place for ground handling since September, restricting number of flights flown and the airport’s operational capability, which has been massively exacerbated by a PPE and test-kit peak lasting till early November.

Continuing congestion at key European and US gateways are highlighted as a particular issue by the origins and in the UK there is limited handling capacity in BHX, GLA, NCL, LHR and MAN, though clearances are being done on time.

While no new capacity has been added, most origins noted the resumption of passenger flights, but the return of belly-hold space for passenger luggage has been at the expense of cargo capacity.

Freighters are operating from all origins, but at many they are ‘Preighter’ conversions and from China - and particularly Shanghai - are almost exclusively committed to eCommerce and rapid-test kit cargo.

Perhaps unsurprisingly rates ex Shanghai are soaring, with increases of 10-15% in the last week.

Rates from Sri Lanka have softened, but are expected to harden, bringing them into line with every other major trade route.

SEA / AIR

It is worth highlighting the situation at Dubai, where airports are operating to 90% capacity, with efficient handling and no delays.

The air freight market is particularly buoyant, with no sign of the peak season slowing and multiple carriers serving airports across Europe and the UK, with scheduled flights, including a new gateway at London Gatwick.

The high yield to US destinations is encouraging many direct carriers to divert services away from Europe to serve trans-Pacific routes, which is hugely increasing the popularity of our Sea Air and Air to air options via SIN / CMB / DXB /AUH/ DOH for shippers seeking more economical options.

OCEAN

The availability of equipment, which has been such a problem for 12 months or so, has been improving at many origins, though India, Sri Lanka and Bangladesh prefer some time to position specific equipment and Dubai need advance notice of bulk shipments of ten containers, or more.

Transhipment ports in Asia are facing some delays, with Singapore and India ports experiencing berthing delays of two days and Sri Lanka three to four days.

Earlier in the year the US ports of Los Angeles/Long Beach had 25-30 vessels waiting in the harbour and today there is approximately 80-90, with the East Coast (NYC, SAV, MIA) seeing between 20-40 vessels.

With port operations elsewhere largely improving, we would hope to see carrier schedule reliability follow suit, but nothing can be taken for granted.

Demand from China is still high and carriers are keeping rates high, as they are expecting demand to stay strong till Lunar New Year and we can only expect rate levels to reduce should there be a drop in demand.

From other origins demand varies, but is consistently strong enough to keep rates elevated and the lines deferring contracts in favour of FAK spot rates.

RAIL

Despite the launch of new services and routes, and plans to modernise infrastructure, rail services from Asia have been increasingly overwhelmed by volumes, suffering catastrophic congestion and delays at key points.

The only SE Asian origin that has a potential rail freight service to Europe is from Vietnam (Hanoi/Haiphong) but that service is so oversubscribed, due to very limited capacity, that we would not consider it a viable option.

In summary, inflated prices and transit times that have doubled (35 days + 7 to 14 days for transfer to UK), due to congestion everywhere, mean that rail is taking as long as sea freight and costing considerably more. It is not worth considering at this time.

The supply chain impact of Omicron is still to be felt, which is why we continue to monitor the emerging situation closely with our network partners.

We will share important news and developments, often before it is in the public domain, so that you can make informed decisions and protect your supply chain.

For further information, or to discuss any particular concerns, please contact Elliot Carlile or Grant Liddell.

Metro will always provide you with the best alternatives and options, supported by a proactive team, leading-edge technology and open communication. Supply chain solutions that are designed around you, your situation and needs.

First autonomous and emission-free container ship

Dec 9, 2021 | Environment, Sea, Supply Chain

Yara Birkeland, the world's first all-electric and emission-free container ship has completed its maiden voyage in Norway, travelling nine miles, from Porsgrunn to the port of Brevik, in the Oslo fjord.

The fully electric and self-propelled 120 teu container ship will cut 1,000 tonnes of CO2 and replace 40,000 trips by diesel-powered trucks a year, transporting fertilizer products from Yara’s Porsgrunn plant to Norway’s Brevik and Larvik ports.

Technological inputs include sensors that can detect objects like kayaks in the water and integrations for autonomous operations. In the future, the ship will be able to load and offload its cargo, charge its battery and navigate without any human involvement.

Starting next year, the container will carry out two trips a week with a monitoring crew and the self-navigating technology will be tested over a two-year period, after which the ship will be certified autonomous and the bridge will be removed from the ship.

Yara, have been working with maritime technology company Kongsberg on the development of the vessel since 2017, in a pioneering project that is leading the maritime industry’s journey towards autonomous operations and zero-emission shipping.

The route will have it sail within 12 nautical miles (nm) from the coast between the ports of Herøya, Brevik and Larvik in southern Norway. The area is managed by the Norwegian Coastal Administrations’ VTS system at Brevik and the distances between the ports are approximately 7 nm for Herøya – Brevik and 30 nm Herøya – Larvik.

The ship was constructed by VARD and it will begin manned commercial operations from 2022, kicking off a two-year testing period of the technology that will make the ship self-propelled and finally certified as an autonomous, all-electric container ship.

Enova, a government enterprise responsible for promoting renewable energy projects, has allocated up to NOK 133.5 million for the project.

In a linked initiative, the development of green ammonia as an emission-free fuel for long distance deep-sea shipping is being explored.

As the world’s largest producer of fertilizers, Yara relies on ammonia for its fertilizer production. At the same time, current ammonia production represents 2% of the world’s fossil energy consumption, corresponding to about 1.2% of the world’s total greenhouse gas emissions and Yara plans to remove current emissions and establish the production of new, clean ammonia.

As a non-asset owning 3PL, 99% of our carbon footprint is generated by our customers’ shipments on planes, ships and trucks, that we do not own or operate, but this does not diminish our determination to be carbon neutral and support our customers’ in achieving the same ambition.

By working with customers, suppliers and carrier partners we are measuring, reporting and offsetting emissions, to build greener supply chains that drive down CO2 and waste.

The MVT ECO module monitors the CO2 equivalent emissions of every consignment we move, by every mode and is available to all Metro customers, to understand and offset the environmental impact of their supply chains.

Header image of Yara Birkeland courtesy of Yara.com, photo credits Knut Brevik Andersen, Wilhelmsen Ship Service