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.: 20-Nov-2015 :. Search News

Container service reliability falls slightly in October
Containership reliability took a small step backwards in October as the average on-time performance across all trades reached 77.9%, according to Carrier Performance Insight, the online schedule reliability tool provided by Drewry Supply Chain Advisors.

The latest result is based on reliability across 10 deep-sea container trades, instead of the three East-West trades as was previously measured up to and including September 2015, when the aggregate on-time result was 79.9%.

The expanded coverage is part of an upgrade to Drewry's Carrier Performance Insight, which now covers 69 ports and 809 port pairs, and also includes new functionality to download data from the monthly release in both Excel and PDF formats.

The on-time result for the East-West trades came in at 77.3% in October, while our first aggregate result for the seven North-South routes was slightly better at 79.1%.

In the East-West category, October saw worse performances in the Transpacific, which declined by 3.5 percentage points against September to 75.1%, while in the Asia-Europe trade reliability dropped by 3.0 points to 78.2%. On the plus side, reliability on the Transatlantic rose by 12 points in October to a series-high of 84.0%.

The most punctual of the "North-South" trades in October was the Asia-South Asia route with an on-time performance of 87.8%, while the tardiest was the Asia-Africa route that saw only 68.4% of voyages arrive as scheduled.

"Delays in transiting the Panama Canal may have hindered reliability of Transpacific all-water services between Asia and the US East Coast, while in Asia-Europe the suspension of a couple of services and blank voyages will not have aided smooth operations," said Simon Heaney, senior manager of supply chain research at Drewry.

"We expected to see a decline in reliability as the container industry enters the slack fourth quarter, but it is encouraging to see that it was only marginal," added Heaney. "It is also welcome news that reliability appears to be of equal standards in both the East-West and North-South routes. We expect the slowing reliability trend to continue through to the early months of next year, but it will remain above historical performances."

Two carriers shared the top of the carrier reliability rankings in October with K Line and Evergreen of the CKYH Alliance both scoring on-time performances of 85.7%. At the bottom of the pile were MSC who recorded an average of 52.4% in the month. The trend towards more carriers improving their reliability was once again evident as 16 of the 19 carriers tracked scored at least 75% in October.

Building on Drewry's long established schedule reliability benchmarking that started back in 2005, the new Carrier Performance Insight provides the ability to benchmark the reliability performance of container carriers on a port-to-port, trade lane, service and industry-wide basis. This information is available via a user-friendly website powered by data from global shipment management software solutions provider CargoSmart.
Source: Drewry

Posted On:20-Nov-2015



Credits: www.hellenicshippingnews.com

Container market of the Black Sea region 2015: major events, prospects and forecasts
In 2015, the ongoing recession has caused some significant changes in the container market of the Black Sea region. Thus, the fragile de-escalation of the armed conflict in the east of Ukraine resulted in a gradual slowdown in economic decline and production of the country in the third quarter. It is supported by the quarterly dynamics of total container turnover of Ukraine in 2015: in the second quarter it has decreased by 19.93% compared to the first quarter, but in the third quarter it has increased by 10.35% compared to the second quarter. It is worth to note that in 9 months 2015 the total laden container turnover of Ukraine has decreased by 28.38%, compared to the 9 months of 2014.

As for Russia, its main port of the Black Sea region - Novorossiysk showed different results in 9 months of 2015. The quarterly dynamics of Russian total container turnover at the Black Sea was even more negative than in Ukraine: in the first quarter of 2015 it has decreased by 4.25% compared to the fourth quarter of 2014, but in the second and third quarters of 2015 it has decreased by 4.80% and 23.74% compared to the previous period. However, the total laden container turnover of the port of Novorossiysk after 9 months of 2015 has decreased by 15.01%, compared to 9 months of 2014. And it gives more clear understanding of the situation.

In the first 9 months of 2015 compared to the same period of last year, container shipping markets of other countries of the Black Sea region have changed differently. The total container turnover of Romania and Bulgaria has increased by 3.57% and 4.35% respectively, but in Georgia it has decreased by 14.38%. At the same time the total laden container turnover of Georgia has decreased by 10.60%, but in Bulgaria and Romania it has increased by 4.63% and 0.43% respectively.

The formation of a global container shipping alliance between the two world's largest container carriers - MAERSK and MSC, also played its role in the transformation of the container shipping market of the Black Sea region. For example, in Ukraine alliance members moved their volumes to the Ilyichevsk sea fish port terminal instead of the Ilyichevsk sea commercial port terminal, while in Odessa MAERSK moved its volume to the "HPC-Ukraina" terminal instead of "Brooklyn-Kiev Port" terminal.

In Russia, the Novorossiysk Commercial Sea Port (NSCP) terminal started to handle the volumes of MAERSK and MSC. In the third quarter of 2015 the NSCP terminal has put new container handling cranes into operation, and as a result, vessel handling time has decreased and affected the overall efficiency of the terminal operations. In November 2015, the NUTEP terminal at the Novorossiysk port began quay expansion scheduled for completion in 2018; it will allow the terminal to handle 8000-1000 TEU vessels.

It should be noted that the geographical distribution of container volumes of the Black Sea region countries has significantly changed in 2015, in particular in Ukraine and Russia. Thus, at the port of Novorossiysk the total laden container turnover with the Far East and Southeast Asia countries has decreased by 34.95%, the North American trade has decreased by 67.23%, the total laden container turnover with Turkey has decreased by 15.96%, but it has grown by 3.88% with the countries of the Middle East.

As for Ukraine, the dynamics of its laden container turnover in the first half of 2015 compared to the second half of 2014 clearly illustrates the country's economic situation. The total laden container turnover of Ukraine with the Far East and Southeast Asia countries has decreased by 29.87%, the European trade has decreased by 24.31% and the South American trade - by 28.66%, while the total laden container turnover with the countries of the Middle East has grown by 8.57%.

There were several significant events in October 2015 affected the container market of the Black Sea region. The 2M Alliance (MSC and MAERSK) announced the termination of direct calls to the Black Sea ports from Southeast Asia due to a significant decrease of freight turnover and freight rates. Another major event was the expansion of the Turkon Line service, which is now represented not only in Romania, but also in Ukraine. A strong position of the company on the transatlantic trade, limited competition and maintained profitability level on this trade will enable it to successfully compete against leading carriers. In its turn, the renewed Mediterranean service will allow Turkon Line to compete leading carriers in the Ukrainian market on the Mediterranean trade.
There are no significant events in the Black Sea container market expected until the end of 2015, so it is forecasted that the total container turnover of the Black Sea region will reach 2.5 million TEU.
Source: Informall

Posted On:20-Nov-2015



Credits: www.hellenicshippingnews.com
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