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. Required fields are marked *

Headlines

IMO tasks Mobereola to sustain NIMASA’s leadership role in regional maritime industry

—– hails his appointment as DG
The Eyewitness Reporter
The International Maritime Organization (IMO) has lauded the leadership role of the Nigerian Maritime Administration and Safety Agency (NIMASA) in the maritime industry within the West African sub-region which it said has stabilized maritime administration in the region.
In his congratulatory letter to Dr. Dayo Mobereola, the new NIMASA DG, the Secretary General of IMO Arsenio Dominguez, observed with satisfaction the collaborative efforts of NIMASA that have brought relative peace to the troubled Gulf of Guinea (GoG).
He therefore charged Mobereola to sustain the tempo of activities that will keep the momentum going in the areas of safety, security and building of strong maritime institutions.
In a conveyance letter personally signed by him, the IMO Secretary-General recognized the strides of the Agency in building a robust maritime sector in Nigeria, adding that the IMO commends the significant effort, initiatives, and investment that Nigeria has made in strengthening its maritime institutions.

In the words of Dominguez, “The focus on strengthening maritime law enforcement and security architecture has been welcomed by seafarers and flag States.

“The Deep Blue project and the C4i Centre as well as maritime piracy laws under the SPOMO Act are just some of the many investments that have set a new gold standard in the region in maritime security capacity building”.

“IMO has long supported the regional role of the Yaoundé Code of Conduct and its Member States in strengthening maritime security and law enforcement.

” In this respect, we have been greatly encouraged with the continuation of this regional ownership with the formation and work of the Gulf of Guinea Maritime Collaboration Forum and Shared Awareness and De-confliction (GoG-MCF/SHADE) in 2021”.

He commended the Agency’s partnership with the various regional bodies and expressed the readiness of the IMO to work with Nigeria and other member states on many maritime issues with the aim of jointly tackling these issues.

“NIMASA’s partnership with the Interregional Coordination Centre (ICC) and the collaboration with the shipping industry, navies and the Yaoundé architecture has been instrumental in suppressing the threat of piracy to merchant vessels and seafarers in line with UN Security Council resolution 2634 (2022) on piracy and armed robbery in the Gulf of Guinea and IMO Assembly resolution A.1159 (32)”.

” I look forward to working with you and your colleagues on many of the maritime issues that we are jointly tackling and hope to welcome you in person at the IMO, he said.

Continue Reading

Headlines

Eastern shippers, freight forwarders on collision course with Shippers’ Council over increase in haulage rate

Akutah Pius Ukeyima, ES, NSC
The Eyewitness Reporter
Importers, Exporters and freight forwarders playing their trade in the South East region of the country have rejected the recent 200 percent hike in haulage rate by the Nigerian Shippers’Council.
They described the increase as “outrageous, arbitrary, and unacceptable.”
In a press conference called by the aggrieved shippers in Port Harcourt on Wednesday, they claimed that if the hike was not reversed, it would bring them on a collision course with the Shippers’ Council.
Addressing journalists on behalf of the aggrieved group, Joshua Ahuama, Zonal Coordinator of the Association of Nigerian Customs Licenced Agents (ANLCA), claimed that the rate will not only lead to spiral inflation but also in contravention of the provisions of the NSC Act.
He disclosed that the group shall give the Shippers’Council a seven-day ultimatum to reverse to status quo or face withdrawal of their services at the Eastern ports.
He accused the council of not consulting concerned stakeholders before arriving at the decision, saying consultations are an integral part of the NSC Act.
 “Recently, the NSC approved a 200 percent increment in haulage rate for transport owners and drivers operating under the Maritime Union of Nigeria.
“To this end, importers and freight forwarders associations in the eastern zone have unanimously disputed the new rate because it is outrageous, arbitrary, and unacceptable to all stakeholders in the zone.
“We have, however, resolved to adopt all peaceful efforts. We started this move on March 14 by calling on the NSC to ensure proper stakeholder engagement and renegotiation.

” These measures are also expected to help all parties to reach a benchmark that would be in the interest of all stakeholders in the maritime value chain,” Ahuama noted.

 “We also urge the NSC to return to the status quo by suspending the implementation of the disputed rate, pending proper renegotiation covering the interest of all stakeholders.

“We are not on a selfish course. Our demands are in the interest of Nigerians because any slight increase in the haulage rate will reflect on the prices of goods in the open market.

“A businessman incorporates total logistic costs into the prices of goods.”

However, the group said they might be constrained to take drastic measures, including suspending all declarations of goods and payments of customs duties, which could negatively affect national revenue and economic output.

Some members of the import and export associations present at the meeting included the Nigeria Shippers Association, the Aba International Traders Association, the Ultimate Importers Association, the POP Importers Association, the Nnewi Importers Association, and the Onitsha Importers Association.

However, the Nigerian Shippers’ Council has said that the new approved rate took into consideration the cost, moderation and other cargo transport issues.
Continue Reading

Customs

Performance of Apapa Customs scanning officers excites Comptroller Jaiyeoba

The Eyewitness Reporter
The Area Controller of Apapa command of the Nigeria Customs Service, Comptroller Babajide Jaiyeoba has lauded the uncompromising attitude of the officers of the Non-Intrusive Inspection Technology Unit (NIITU) which he said has been invaluable to the overall success of the command.
Comptroller Jaiyeoba, who was on an unscheduled visit to the scanner site, reminded the officers of the importance of teamwork as a strong basis to sustain the gains of compliance and revenue collection recently recorded by the command.
He thanked Deputy Comptroller Salamatu Atuluku, the Officer in charge of the scanning site and encouraged the unit not to be deterred by complaints coming from persons who were made to pay accurate duties to the government after issuance of demand notices
According to him, no business person who is made to part with money will be happy with officers who refused to compromise the ethics of their job
” The main reason for me coming here is to appreciate you. I may not see you but I have seen your work and I won’t keep quiet about what I have seen about your work.
“You are doing very well. I just want to encourage you to work as a team. If you don’t work as a team, you give room for outsiders to come in and when they come in, they divide you and when they divide you,  achieving success will be very difficult
” Do your work without blemish. Once you keep your arm straight, you can stand before anybody. Your work as a customs officer is to ensure that you do the correct thing
” For those of you doing an intervention in the form of Demand Notice(DN), there is no body who part with money that will be happy with you.
“They will want to play intelligent by hiding somewhere. When you fetch them from their hiding place, they become your enemy. Whatever they write about anybody here will still come down to me and if anybody works well, the onus on me is to defend such a person.
“Just have it at the back of your mind that you owe yourself the duty of doing your work diligently whether anyone comes around as a friend or enemy.
“It is not enough for you to rest. The reward for hard work is more work. These demands require sacrifice so that you can maintain the status” he said.
Continue Reading

Trending