As the Asia peak season rumbles on and the carriers struggle to meet demand, cargo rollovers are increasing at the busiest transhipment ports.
After a global decline in rollovers during September, the average container rollover rate at leading transshipment ports rose in October.
This time of year would typically be a lull, following the summer peak season, but with the peak continuing (probably up to February) ships are still departing Asia full and the lines are desperately trying to deal with the ongoing equipment shortages across Asia.
Carriers are unable to add more capacity to the market, as the global fleet is currently active, which means the ocean supply chain is at capacity, and this is being reflected in increased rollover levels and more disruption.
Data show China’s Ningbo-Zhoushan, the world’s third-largest container port in 2019 by throughput, was one of the worst performers in October with 43.5% of its cargo rolled, up from 30.1% a month earlier.
Singapore, the world’s busiest transshipment hub, saw its cargo rollovers increase to 31.1% in October, while Tanjung Pelepas in Malaysia had 24.6% of its transshipment cargo rolled. Taiwan’s Kaohsiung saw its rollover ratio last month rise sequentially to 29.4% from 23.2% in September.
While overall cargo rollovers at transshipment ports increased in October compared to the previous month, some of the world’s leading box hubs also reported a slight improvement in carrier adherence to bookings.
These included the Port of Hong Kong, Malaysia’s Port Klang, Dubai’s Jebel Ali, Busan Port, and even Shanghai, the world’s busiest container port.
While almost every container line saw rollovers increase, Maersk subsidiary Hamburg Süd saw its rollover ratio fall to 24.7% in October, from 29.1% in September.
Metro are currently negotiating global shipping rates and block space agreements with partner shipping lines and alliances.
In consideration of the volatile market conditions, we would encourage and recommend that you provide us with your 2021 forecasts, so that we can get you the best deal for 2021, with fixed validity and consistency in pricing.
Please call Ian Barnes and/ or Grant Liddell to review the latest market information and discuss your plans for next year.