According to the official website of port of Los Angeles, recently, the U.S. Department of transportation coordinated with multiple supply chain stakeholders to formulate and issue new regulations. Since November 1, Los Angeles and long beach will charge shipping companies for detention of imported containers on a daily basis.
The relevant person in charge of COSCO sea control (601919) told reporters: “the company is understanding the specific implementation rules of relevant policies and continues to pay attention to the events. At the same time, it will also actively communicate with ports and customers to ensure customers’ shipping needs.”
Industry insiders believe that the new regulations may be difficult to solve the problem of port congestion. What needs to be improved is port infrastructure, automation construction, labor system construction and other problems.
Additional container detention fee
According to the new regulations published on the official website of the port of Los Angeles, containers transported by trucks staying for 9 days or more will be charged; Container charges for railway transportation staying for 3 days or more. The dwell time refers to the time from the unloading of the container on the ship to the removal of the container. The charging standard is $100 / container, and each container will be charged an additional $100 per day for overtime.
Shipping giant Maersk said that the new policy has a seven day notice period, and how to charge most of the fees remains to be determined. At present, the parties concerned are in a very difficult situation, and the capacity of trucks, chassis and warehouse are very tight.
Adnan Qadri, global import director of Amazon, said: “the original intention of collecting detention fee is to encourage faster turnover, equipment return and bring liquidity to the network and supply chain. However, from the current operation of the supply chain, collecting detention fee will not have an incentive effect.”
The relevant person in charge of COSCO sea control said that at present, the container turnover in long beach and Los Angeles is not smooth, and the supply-demand relationship of the trans Pacific eastbound route is still tense.
Containers have piled up on the dock
The reporter learned from a number of foreign traders that since it has entered the Christmas stock season in the United States, the U.S. consumer demand has increased sharply and the import volume of goods has doubled.
Public data show that the shipping flow of Los Angeles port and Long Beach port accounts for 40% of the total cargo volume of ports in the United States. However, due to the shortage of freight containers and freight manpower, and the reduction of port efficiency due to epidemic prevention measures, a large number of cargo ships lined up outside the two ports. It is reported that on October 18, the total number of ships waiting in line to enter the two ports for unloading reached 100, a record high.
According to the information released by the port, as of October 25, there were as many as 48 container ships waiting in line at the port of Los Angeles, and the average waiting time reached a record high of 12.8 days. At the same time, the containers unloaded from the ship have been piled up on the wharf. Jean cerroca, executive director of the port of Los Angeles, said that 25% of the backlog of goods near the coast of Los Angeles stayed at the wharf for more than 13 days.
John bockari, port envoy of the U.S. supply chain disruption task force, said that every link of the supply chain in Southern California is now very tense. Because there are not enough container chassis and truck drivers to ensure the operation of the port, it is difficult to improve the efficiency of the port.
There is still a shortage of centralized transportation capacity in 2022
At the first extraordinary general meeting of COSCO Haikong in 2021 held on October 29, Yang Zhijian, executive director and general manager of COSCO Haikong, said that the tight supply and demand of shipping will not change fundamentally in a long period of time in the future.
Yang Zhijian said that the overall demand of the global container transportation market will still show a positive trend of steady progress next year. According to Drury’s latest data, it is estimated that the cargo volume of the global container market will be about 260 million TEUs in 2022, with a year-on-year increase of 5.9%. Although it is slower than this year, it will still increase by 12.6% compared with 2019 before the epidemic.
Yang Zhijian believes that the centralized transportation market will still be in a state of shortage of transportation capacity supply in 2022. On the supply side, the first is that the total delivery of new capacity is limited. According to alphaliner’s statistics, it is estimated that 169 ships and 1.06 million TEUs will be delivered in 2022, a decrease of 5.7% compared with this year. Secondly, the effective transport capacity can not be fully released. Due to the repeated global epidemic, labor shortage in European and American countries and other factors, port congestion will continue in 2022. According to Drury’s prediction, the global effective capacity loss will be 17% in 2021 and 12% in 2022. Finally, the chartering market is still in short supply.
Drury predicts that the global container weighted average freight index (excluding fuel surcharge) will increase by 147.6% year-on-year in 2021, and will further increase by 4.1% on the basis of this year’s high base in 2022; Meanwhile, the EBIT of global liner companies will reach US $150 billion in 2021 and is expected to be slightly higher than US $155 billion in 2022.
Author: world-logistics china
