Container Shipping To Take More Than A Year To Return To Normalcy

According to the analysts at Sea-Intelligence, roughly 12.5% of the global container shipping capacity has been caught up in delays, while normalcy is expected by the end of 2022.

Representational Image | Via: Nikkei Asia

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Sea-Intelligence reported that in August this year 3.1 million TEU, or 12.5% of shipping capacity was out of service due to delays, using data from its Global Liner Performance (GLP) and Trade Capacity Outlook (TCO) databases, comparing to a previous high of 11.3% in February, which fell down to 8.8% in April.

Alan Murphy, CEO, Sea-Intelligence mentioned this was no different than removing a fleet slightly larger than either CMA CGM or Cosco, the 3rd and 4th largest container lines respectively.

Keeping the near future in consideration, the current boost in new building orders will make little difference for two to three years until deliveries start to filter into the fleet on a large scale.

Delays off the U.S. West Coast made 63 containerships waiting to enter the ports of Los Angeles and Long Beach as of Tuesday, which was nearly double the number the two ports can handle at any one time. Taking the past congestion in Southern California into consideration, Sea-Intelligence estimated it could take till April 2022 to resume normal operations.

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But again, congestion and delays are no longer limited to the U.S. West Coast and are slowly becoming a global problem. The normalization of the worldwide container shipping supply chain will take much longer.

Murphy remarked, “Therefore, with the current operational challenges, it appears that a realistic timeframe for the reversal to full normality stretches at least to the end of 2022.”

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