Connect with us

Headlines

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.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

Headlines

I want to bequeath fully automated ports to Nigerian shipping industry–Bello Koko 

Bello-Koko, NPA MD

Eyewitness reporter

Mohammed Bello-Koko, the Managing Director of the Nigerian Ports Authority (NPA), has expressed his passion and uncommon commitment to leaving a fully automated port system as his legacy after he bows out of office.

Bello- Koko, whose ascension to the NPA’s highest office was as dramatic as it was eventful, said port automation, which is the latest trend in the world, especially, the Port system, is central to his administration in the NPA.

Koko, who spoke Saturday 14th, May 2022 during his maiden press conference, expressed his belief that a fully automated port system will translate to efficiency, low costs, and improved revenue.

In a no hold- barred interactive session with journalists, the NPA helmsman shared his vision of robust port processes hinged on automation devoid of human interaction.

“When I came in, even though in an acting capacity, I held retreat first with the management staff and then the board during which I had to explain my vision of automated port system to them.
“I did this because I needed to get them to work with me and secured their buy-in.
“And it worked.
“Port system is dynamic so there must be a change in policies and focus.
Talking about the legacy he wished to bequeath to the industry, the banker- turned port administrator, explained that his desire is to fully automate the port system which he believed is the backbone of efficiency.
“I would want to see our ports fully automated. Automation is the backbone of efficiency in our ports.
”  It will achieve improved revenue. It will achieve a lot of things we want to achieve. I am really really interested in getting this done.

“We have so much automation done in isolation and we need to integrate them.

“We need to put up something that everybody will love to log into. We need to copy a system that is being used in other developed countries, something that will add value, something that everyone agrees with and that is the port community system and harbour automation.
“I am looking forward to a legacy of rehabilitated port infrastructures with the right marine equipment and that is something we have started working on already.


“Discussions have started in terms of designs, we have gotten the full design of the Tin Can port, how it is going to be reconstructed, what is the likely cost of reconstructing Tin CAN, what are we going to do with some parts of Apapa port.

“We have approached BUA to start reconstruction. The same process is on in the Rivers ports where some of the infrastructures have collapsed.

“If we are able to do this, then we have achieved quite a lot.

Apart from port automation, Koko beloved that he needs efficient and committed staff who are well motivated to drive the reformation agenda.

So he declared that improved staff welfare is another area he wants to work on while in office.

“Staff welfare is very important to me which I want to pay special attention to. All these things are the legacies I want to leave behind when I exit as the Managing Director of NPA” he declared.

The NPA MD, who gave a blow-by-blow account of the challenges and prospects of bequeathing a reformed port process, believed that the core function of the NPA was trade facilitation.

However, he lamented that since the agency has been turned into a revenue-generating agency, it has lost focus on this vital core function of trade facilitation while pursuing revenue generation

“NPA is about trade facilitation.

“The core responsibility of every port in the world is to facilitate trade.

“Until that is very clear, then there was a problem, and then to facilitate trade, that is when other things came in.

“While the NPA has been turned into a major revenue earner for the federal government of Nigeria, gradually, some of our responsibilities are impossible to carry out because there is more focus on the contribution to the CRF, which is fine.

“What it does for us is it makes us reduce costs and generate more.

He then extensively dwelt on the efforts of his management to reinvent the wheel of making NPA more of a trade facilitator than a revenue earner.

“For you to ensure that this trade facilitation succeeds,  you need to meet with your stakeholders.

“One of the things we did was to start to reach out to the stakeholders that were difficult to relate with.

“The port environment is a conglomerate of so many players.

” You need the Customs, SON, plant quarantine, the shipping companies which we do not regulate but are regulated by the shippers’ council and the terminal operators for you to succeed.

“That was the first thing we did and we set a goal for ourselves, which is what are those things we need to do in order to improve trade facilitation.

“It is only when you do that that you start to have a better flow of traffic, shorter dwell time of cargo, and quick turn around time of ships.

“And we reached out to as far as the Nigerian Navy with whom we are able to resolve some issues that we were not able to resolve for over 20 years.

“We just humbled ourselves and decided that we would reach out to everybody.

“We also realised that the modern ports are all moving toward automation, and automation cannot be in batches but there has to be full automation.

“Once there is manual interference in some of the things you do, then you haven’t fully been automated and because of that, we wrote to the IMO to help us consult. We are about to deploy the port community system.

“The port community system is an avenue which ensures that all stakeholders, all the players in the port processes, log into the system of exchange of data and processes.

“The good thing is that it doesn’t disturb the automation processes of individual agencies or stakeholders, such as e-customs and that was why we got the stakeholders to buy into it.

“We are upgrading our RIMS, you all know the problems of downloading manifest and we are going to deploy harbour automation.

“The IMO has mandated all ports to deploy such IT and soft wares by 2025, our target is 2023, maximum early 2024.

“We reached out to NLG. We have been trying to deploy VTS  for about 10 years now but since we came, it was one of the major challenges.

“You can’t get qualified people to deploy VTS, they are very few.

“We wrote to IMO, they gave us some companies which could not meet our requirements while some of them were not interested in working with NPA.

“However, NLG has a VTR in Bonny, even though it is not robust.

“We do not have a problem in collaborating and in the last few months, we have been meeting with the NLG so that they do the survey and put the moles and the sensors around the country.

“It is one of the most important things in the maritime industry now, worldwide.

“We should be able to have visibility without seeing the ship and it would be a tremendous achievement and I believe we can achieve it within the year.

“Our RIM is also being updated and we ensure that people keep using those applications that we have which have reduced manual processes.

“As a result, things are improving, speed is improving. We have been able to block revenue leakages.

“However, we have old ports, we can all attest to that.  The problem with the Eastern ports is decaying infrastructures while Tin Can island port is practically collapsing.

“We have decided to focus our budget on the rehabilitation of those decaying infrastructures.

“We took a holistic look at these decaying infrastructures and came to the conclusion that we need to rehabilitate Tin can, Apapa, and other ports.

Having reeled out his vision for a new port system, he then dared whoever cared to listen that he should be held responsible and accountable over his vision for the Nigerian ports.

“You can hold me responsible for any of these things ” he declared in a measured tone that betrayed his confidence and determination to succeed.

He promised to collaborate with relevant stakeholders and lending agencies to achieve his set objectives

“I will work with the relevant agencies, investors, and lending agencies who are interested in lending, either directly or indirectly.

” Some of them just need a guarantee from the NPA  to hold us responsible for any default,” he stated.
Bello-Koko was named Acting Managing Director of NPA in May 2021 following the suspension of the erstwhile Managing Director, Ms. Hadiza Bala Usman while he was made a substantive MD in February 2022.
Continue Reading

Headlines

EFCC  discovers  academy where Yahoo boys are trained

Suspected Yahoo academy students
—arrests proprietor, 16 trainees in Abuja
Owolola Adebola 

Operatives of the Abuja Zonal Command of the Economic and Financial Crimes Commission, (EFCC), have arrested one Afolabi Samad, owner of a Yahoo Yahoo Academy in Abuja.

The 24-year-old was arrested Thursday, May 12, 2022, in a sting operation alongside 16 of his students.

 The youngsters between the ages of 18 and 27 years were arrested at their hideout located in Peace Court Estate, Lokogoma, a suburb of Abuja.

The owner of the alleged Academy rented the 3 bedroom flat for Three Million Naira to impact the tricks of cyber-frauds on his apprentices for undisclosed fees.

Item recovered from the suspects include laptops, phones, charms and two vehicles: a Lexus RX350 and Toyota Highlander.

The suspects will be charged to court as soon as investigations are concluded.

Continue Reading

Headlines

PSTT seeks partnership with NARTO, MWUN to end traffic gridlock

Continue Reading

Trending

%d bloggers like this: