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Shippers lament vessel delays, supply bottlenecks from China

—as new variant of Covid-19 emerges
Shippers have continued to experience vessel delays and disruption of the supply chain from China since the outbreak of the Covid-19 pandemic.
The delays are now getting worse as a result of the resurgence of the new variant of the pandemic.
It could be recalled that most Nigerian imports are from China.

Shippers continue to complain about delays and the unevenness of the supply chain as the shipping lines and ports struggle to manage against dramatic increases in volumes and external challenges to their operations from recent outbreaks of new variants of the COVID-19 pandemic.

Experts are warning that with delays again on the rise and transportation costs increasing, retail operations are facing new threats going into the critical holiday sales season.

There has been progress at reducing overall delays in shipments and vessel schedule performance from the peaks experienced early in 2021.

However, recent vessel-tracking data from logistics platform project44 has revealed substantial year-over-year increases in vessel and shipment delays across most major trade lanes originating in China.
Select China-US West Coast routes schedules have improved significantly over the past months according to data gathered by project44,but multi-day delays remain high or are even rising across many parts of the global shipping network.

“The fact that ships remain delayed and now COVID variant outbreaks in major Chinese manufacturing hubs are on the rise, indicates that there may be far-reaching downstream consequences going into Black Friday and holiday shopping seasons,” said Josh Brazil VP Marketing project44.

 “We’re seeing a lot of variation in delay times between months, and routes such as US West Coast versus East Coast ports, making supply chains particularly challenging for shippers to manage.”

The data analysis shows that there were substantial delays for ships operating on routes between China and US non-West Coast ports, where delays increased from 0.6 days on average in July 2020 to 2.44 days in July 2021.

While delays in other ports in the US were steady from the last quarter of 2019 until August 2020, they started rising to a peak in February 2021.
Moderate improvements have been made with delays working their way down as of June 2021.

Similarly, EU-bound maritime traffic from China also experienced increased delays from an average of 0.51 days in July 2020 to 2.18 days in July 2021.

Delays in EU trade started increasing from December 2019 when the first impact of COVID-19 was felt in China.
Delays peaked in March 2020, but dropped in May 2020, possibly due to China coming out of COVID-19.
 They started rising again from July 2020, peaking in February 2021. The delays were working their way down as of July 2021, but still at levels higher than the 2020 peak.

On routes serving others parts of the world, year-over-year delays increased from 1.08 days to 2.78 days between July 2020 and 2021.

Delays on these routes started increasing from December 2019, peaking in February 2020 and dropping in May 2020.
Delays started rising again from June 2020, with the numbers peaking in July 2021.
It is currently at its highest level since August 2019, according to project44.

“One of the few givens in 2021 is endemic delays and the fact that conditions can change almost overnight,” said Josh Brazil, VP Marketing at project44.

“These latest numbers along with COVID variant outbreaks are a warning to shippers”

With delays again on the rise on some shipping routes and expectations of ongoing supply chain disruptions, many businesses will be challenged to adjust to longer lead times and bottlenecks in an overburdened supply chain.

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Danish court returns guilty verdict on Nigerian pirate —- remands him in prison

The Eyewitness reporter

A Danish court on Monday found a Nigerian guilty of endangering the lives of Danish military personnel in a shooting incident last November involving Denmark’s navy and a crew of suspected Nigerian pirates in the Gulf of Guinea.

However, the court declined to sentence the Nigerian, Lucky Frances, 40, despite a call from the prosecutor for a prison sentence of 12 to 15 months.

As part of international anti-piracy efforts, Denmark deployed a frigate to the Gulf of Guinea in October last year.

The following month, it intervened in an alleged attack on a commercial vessel, killing four pirates and capturing four other suspects.

“The court emphasized that the 40-year-old Nigeria, together with the other perpetrators, fulfilled all the signs of piracy and had to be described as a pirate group,” Copenhagen city court said in a statement.

Frances, who was injured during a firefight with Danish navy personnel in the November clash, was taken to Denmark for prosecution in January after being treated at a hospital in Ghana.

 Danish authorities deemed it unsafe to release him in Ghana. His leg was amputated as a result of his injuries.

Frances was exempted from any legal consequences due to his medical condition and the fact that charges against the other three suspected pirates had been dropped, his lawyer Jesper Storm Thygesen told Reuters.

Charges against the three other suspected Nigerian pirates were dropped in January after Denmark failed to find a country in the region to take them.

They were released from detention on the frigate and put to sea in a small dinghy in the Gulf of Guinea.

Frances will remain in custody until both sides have decided whether to appeal against the verdict, Thygesen said.

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Headlines

Possession of NIN by passengers now requirement for boarding trains—Sambo

 

— as government shifts resumption of Abuja-Kaduna rail services to December
The Eyewitness reporter
As part of the multi-layer security measures put in place on the troubled Abuja-Kaduna train route, the federal government has announced that no passenger will be allowed to buy tickets for train services without a National Identification Number (NIN).
In addition, no minor will be allowed onboard unless registered by an adult with a NIN who cannot register more than four minors per trip.
Reviewing the security measures put in place ahead of the resumption of the Abuja-Kaduna train route, the Minister of Transportation, Mu’azu Sambo, said these and other security initiatives which the government has taken are necessary to forestall the reoccurrence of the sad event which occurred on March 28th, 2022 on the route when the train was derailed by insurgents who killed and kidnapped passengers.
The minister, who on Sunday at Kaduna expressed satisfaction over the level of security measures in place, also said the steps taken so far will also stop ticket racketeering which has been the order of the day among the railway staff on the route.
The Minister also expressed confidence that the measures put in place are adequate enough for the train service to commence.” There is sensitive equipment that we have deployed that I will not reveal. The other thing I can tell you is that for every journey, the train is monitored every second on the screen.

” The train driver can see from a distance if there are any threats on the tracts that will enable him to match the break long before getting to the threat, and that is why I am telling you confidently,” said the Minister.

The Minister debunked the rumour that train services will resume on Monday, adding that the newly introduced measures will delay the resumption of business along the corridor for a few more days for passengers to get acquainted with the new protocol involved in train boarding before it will resume services.

“We have not said that train services will start tomorrow. I want to be very categorical about that.

“Now, we have introduced a new system before you buy a ticket. The purchase of a ticket requires you to provide a phone number and a national identification number in order to profile you because that is the beginning of the security checks. So at any point in time when a train moves from one station to another, we know who and who are on board.

“If you don’t have a NIN you are not going to board our train, it is as simple as that. If you are a minor, an adult will register for you and an adult can only register for not more than four minors.

“Now, we want to give sufficient time for the Nigerian public to listen to these two requirements, to assimilate this new system.

“So if you go and start tomorrow, a lot of people will be disgruntled. Why didn’t they tell us that this is a new way of doing it? Why didn’t they give us adequate time to do it? So we want to give you adequate time. Definitely between 3,4,5 days, certainly not more than a week.

Sambo assured Nigerians that a smooth and secured train ride is guaranteed while noting that the trains will not travel at night for now, while there is also going to be a review in train fares.

“I can assure you that we are a compassionate government and will consider the masses in the review of the train fare.”

We are not going to tell you what we have done. It is a security matter and I have no apologies for that.

“We’ll be monitoring it on a daily basis and improve on wherever we find some snags”.

“The ticketing called e-ticketing has already been contracted to a company, called secure ID. That concession has gone through the entire concession process under extant laws, including approval by the Federal Executive Council. So that concession remains in place for the duration of the concession period, which I think is 10 years”.

Sambo said that although only God can guarantee maximum security, he assured Nigerians that everything is in place to guarantee a secured and smooth train ride.

“We are not going to tell you what we have done. It is a security matter and I have no apologies for that.

“We’ll be monitoring it on a daily basis and improve on wherever we find some snacks”.

The Minister assured that Secured ID would continue to handle the e-ticketing services.

“The ticketing called e-ticketing has already been contracted to a company called secure ID. That concession has gone through the entire concession process under extant laws, including approval by the Federal Executive Council. So that concession remains in place for the duration of the concession period, which I think is 10 years”.

The Minister was accompanied by the Minster of State for Transportation, Ademola Adegoroye; Minister of Water Resources Eng. Suleiman Adamu; Managing Director, Nigeria Railway Corporation Fidet Okhiria; Chairman Governing Board Nigeria Railway Corporation Ibrahim Musa.

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Headlines

As Nigerdock recants operational breaches, FG may lift suspension on the facility

The Eyewitness reporter
The Federal Government has expressed its readiness to lift the suspension order on Nigerdock following its willingness to abide by the rules and its contributions to the growth of the National economy.
The Minister of Transportation, Mu’azu Jaji Sambo, stated this recently when he visited the firm in Lagos in the company of the Minister of State for Transportation, Prince Ademola Adegoroye and some Management Staff of the Ministry.
Addressing the Chief Executive Officer, Nigerdock, Maher Jarmakani and other officials of the company, the Minister pointed out that the reason why they were suspended was as a result of complaints from other Terminal Operators, saying Nigerdock had operating advantages over them.
“What led to your suspension was that I received complaints from Terminal Operators, saying that you are not on the same level with them. In the sense that they pay more to the government than you do. You’re likely to attract freight at a much lower cost to the detriment of businesses”,  the Minister disclosed.
He, therefore, urged them to liaise with Nigerian Ports Authority (NPA) to work out all the operational licenses needed to enable them to operate and the latter will forward the same to the Minister of Transportation whose prerogative it is to give approvals.
Speaking further, the Minister said: “We will never do anything to undermine the things you are doing here in terms of generating wealth and jobs for Nigerians.  The only thing we are saying is that the law should be followed. We should not encourage lawlessness “.
Responding, the CEO, Nigerdock, Maher Jarmakani, said the firm has taken notable steps in this regard as they have been granted bonded permits by the Nigerian Customs and they are currently working with Nigerian Ports Authority to ensure all processes of getting the needed approvals are followed accordingly.
“We are seeking your support Honourable Minister and that is why we wrote a letter of appeal for your guidance and your support to see that we have followed all processes and procedures” Jarmakani stated.
Furthermore, Jarmakani informed the Minister that in the 30 years of its existence, Nigerdock has employed more Nigerians than its peers, assuring that the company will not undermine the country’s extant rules and regulations.
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