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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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Customs

WCO commends Adeniyi for transformational leadership of Customs 

Funso Olojo 
The Nigeria Customs Service (NCS) has received a commendation from the World Customs Organisation (WCO) Regional Office for Capacity Building (ROCB) East and Southern Africa for its exceptional performance under the leadership of Comptroller-General of Customs, Bashir Adewale Adeniyi.
In a letter of commendation signed by WCO Director Larry Liza, the organisation hailed the NCS’s remarkable 74% growth in revenue over the past year, marking a significant milestone in customs administration.
“We extend our warmest congratulations to Comptroller-General Adewale Adeniyi and the Nigeria Customs Service for achieving a 74% growth in revenue in the last year. This outstanding feat has not gone unnoticed and stands as a testament to your dedication and effective leadership,” stated Larry Liza.
 Despite challenging security conditions, The WCO highlighted the NCS’s exemplary achievements across various fronts, including revenue collection, trade facilitation, societal protection, and stakeholder collaboration.
 “Under Comptroller-General Adeniyi’s guidance, the Nigeria Customs Service has demonstrated commendable resilience and innovation, particularly in streamlining operations and enforcing critical directives for the benefit of the nation,” remarked Larry Liza.
“We applaud the NCS’s proactive measures against smuggling and other illicit activities, which have reinforced border security and contributed to Nigeria’s economic stability.”
“We continue to draw inspiration from Comptroller-General Adeniyi’s leadership, which transcends borders and exemplifies excellence in customs management. Our congratulations extend to his team, stakeholders, and the entire nation of Nigeria,” added Larry Liza.
The WCO’s recognition underscores the global impact of Nigeria’s Customs reforms and reinforces its commitment to learning from and supporting successful strategies in customs administration under CG Adewale Adeniyi’s leadership.
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Headlines

CIoTA seeks collaboration with NIMASA, pays homage to Mobereola.

Dayo Mobereola, NIMASA DG

Funso Olojo 

The Executives of the Chartered Institute of Transportation Administration of Nigeria (CIoTA) paid a visit to the Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola, at the NIMASA Towers in Lagos.

The executives, led by the President, Mr. Segun Obayendo, congratulated the DG on his appointment and pledged to collaborate with the agency in ensuring the transportation sector is professionally driven.

On his part, the DG welcomed the association and expressed the Agency’s readiness to partner with CIoTA towards achieving a robust transport sector.

Dr. Dayo Mobereola, the NIMASA DG, was conferred with a fellowship of the institute.

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Customs

Tin Can Customs generates N575.5bn in six month

Funso Olojo 
The Nigeria Customs Service (NCS), Tincan Island Port Command (TIPC) has generated N575.5 billion in revenue in the first half of the year 2024.
The Customs Area Controller, TIPC, Comptroller Dera Nnadi said this at a media conference held at the Maritime Reporter Association of Nigeria (MARAN) secretariat in Apapa, Lagos.
According to Nnadi, this is an improvement by N315.24 billion and represents a 221.13 per cent increase from the half year report in 2023 which had N260.26 billion.
“As at today, July 12, the command has generated N627 billion and we have been given a target of N1.403 trillion. This shows that significant efforts have been made in the command in meeting the target.
“TCIP operations in the last six months significantly aligned with the statutory functions of the Service in the areas of revenue generation, trade facilitation and enforcement/anti-smuggling activities.
“The command’s operations were performed in consciousness of the theme of the 2024 International Customs Day, ‘‘Customs Engaging Traditional and New Partners with Purpose’.
“The command further enhanced the existing operational process to conform to the malady of the floating exchange rate regime with the use of technology made available by the NICIS II Software,” he said.
On enforcement, Nnadi noted that the command coordinated several 100 per cent physical examination under his supervision in collaboration with critical stakeholders to ensure that the command was freed of any form of non-compliance to the international trade cycle.
“Items discovered as concealments and seized during the period under review are one RZ17HD – 20P9964 – rifle, one RZ17HD – 20P9962 – rifle, one GAMO – T660739 – rifle, one pump action – MV0830249 – rifle, one RZ17TACTICAL – 30H21PT011992 – rifle, one RZ17HD – 20P9929 – rifle, one pump action – MV0830253 – rifle.
“Others  are one pump action – MV0830839 – rifle, one RZ17HD – 20P10115 – rifle, one pump action – V1690019 – rifle, one pump action – 52-H21PT – 3803 – rifle, one  RZ17HD – 20P9951 – rifle, one SAR9 SARSILMARZ T1102-21BV63826 – pistol, one RUGER AMERICAN PISTOL 9MM.
“Others listed: one SAR9 SARSILMARZ T1102-21BU51078 – pistol, one TAURUS G3C – BAIN BRIDGE, GA ADA 799424 – pistol, one TAURUS G3C – BAIN BRIDGE, GA ADC 122309 – pistol, one TAURUS G3C – BAIN BRIDGE, GA ADB 941276 – pistol.
“Also intercepted are one used Toyota Corolla Chassis Number: 5YFBURH1EP09601: 2014 model, Sterling High Quality shot gun cartridges green (12 cal 32 grams – 10packs of 25 pieces each), Sterling High Quality shot gun cartridges green (12 cal 30 grams – 20packs of 25 pieces each and 23 extra pieces).
“Included in the list are Seller & Bellot  Buck Shot – 55 pieces, Crossman Co2 12 gram cartridges – 123 pieces, 1USP CO2 Air Gun Pistol with Accessories Cal. 117 (4.5mm) BB, units of Mace Pepper Gun, to Department of State Services (DSS) for further agency function,” he said.
He said that during the period under review three plastic drums were intercepted concealed with several packets of Cannabis Indica, 46 bags containing 2,144 packets of cannabis indica all weighing 1,072kg seized from 1x40ft Container No. GAOU 669921/5 imported from Canada.
“The approximate street value of   the illicit substances is N3.216 billion.
“Also, 877 cartons of Barcadin cough syrup with codeine – 200 bottles of 100ml per carton and 82 cartons of Really Extra Diclofenac Sodium 50mg tablets – 600 packs per carton imported from India was seized.
“The approximate street value of the cough syrup is N964.33 million,” he said.
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