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Maersk announced the suspension of flights and the shipment schedule was delayed

Jun 05, 2024|View:12

The most severe port congestion in three years may be staged! Not only are there not enough ships, there are not enough ports. Some shipping companies have had to cancel planned port calls.

Maersk announced flight delays and suspensions

Maersk on Monday (June 3) announced significant delays to its shipping schedule due to severe congestion at major ports in the Mediterranean and Asia. This congestion resulted in significantly longer waiting times at various ports, severely impacting Maersk's ability to maintain normal shipping schedules.

In response to the current port congestion, Maersk plans to launch two empty voyages in the coming weeks.

The first is the cancellation of the 425W cruise by MSC AMELIA on the AE11 route from Qingdao to Valencia on July 1. 2024. and the second is the cancellation of the 426W cruise by MSC MIRJAM on the AE15 route from Busan to Tekilda on July 2. 2024. Both voyages will be suspended.

Maersk said: "We understand that this situation may cause a lot of inconvenience and disruption to our customers' supply chain plans and are deeply sorry for any distress this may cause."

At the same time, Maersk announced that the TP20 US-East route will end in the next few weeks. Due to the knock-on effects of the ongoing Red Sea situation, including delays and capacity constraints, Maersk needed to restructure its route network to best meet customer demand. As part of this, TP20 services will be phased out. The final Voyage of TP20 from Asia will be: Voyage 424E BSG Barbados ETD Shanghai 13 June 2024.

It is worth mentioning that on June 3. Maersk significantly raised its full-year profit forecast, predicting earnings before interest, tax, depreciation and amortization (EBITDA) of $7 billion to $9 billion this year, higher than the previous expectation of $4 billion to $6 billion, and higher than the average analyst expectation of $5.86 billion.

Maersk said the disruption to shipping in the Red Sea had a bigger impact on the global transport chain than previously expected, which further pushed up freight rates. It is the second time in a month that Maersk has raised its profit forecast.

Epic "Big boat jam"

According to a recent Bank of America report, increasing port congestion has reduced the supply of container ships by more than 2% since March this year. At present, Singapore, Dubai and the Mediterranean region are the main hotspots for congestion, while the supply of seats in Asia remains tight.

In particular, the Port of Singapore, a large number of ships queued for berthing, up to 7 days waiting in line, the backlog of containers has exceeded a staggering 500.000 TEUs.

Due to severe congestion, some shipping companies have had to abandon plans to call at Singapore ports and switch to some downstream ports. But it also puts pressure on those downstream ports to handle more cargo, spreading the congestion even further.

To ease congestion, PSA Singapore has reactivated the old berths and storage yards at the defunct Keppel Terminal, while also adding significant manpower to deal with container build-up.

At present, in addition to these hot spots, many Asian ports such as Shanghai, Qingdao, Port Klang and Colombo are also experiencing varying degrees of congestion. It is worth noting that as the world's largest container port, the stay time at the port of Shanghai has reached the highest level in nearly three years.

In addition, Mediterranean Shipping (MSC), the world's largest container liner, began to use India's Kamalagal and Vishahapatnam ports for transshipment operations.

A shipping company executive said that rather than having ships wait a week to 10 days at the port of Singapore, some shipping companies prefer to drop off containers at Indian ports. However, Indian ports will also be congested because the current terminal yard utilization rate is already high.

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