We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Ocean freight logistics faces “volatile” start to 2022

Ocean freight logistics faces “volatile” start to 2022

China accelerates rapid container turnaround times, but port congestion in U.S., U.K., creates mismatch between supply and demand, Container xChange and Fraunhofer – CML say.

container xchange Avg-containers-idle-depot-median-time-worldwide.png
January 11, 2022
Supply Chain Quarterly Staff
No Comments

Containers are now moving in and out of China at record speeds as shippers desperately source capacity, but port congestion problems in Europe and the U.S. continue to slow the return of boxes to Asia, stymying the recovery of global ocean supply chains, a new study shows.

Shipping containers spent an average of just five days at depots in China in 2021 compared to 61 days in 2020, according to a joint report conducted by logistics technology company Container xChange and research organization Fraunhofer – CML. And fellow manufacturing powerhouses Vietnam, Singapore, Thailand, and Indonesia also showed rapid box turnarounds last year, with average median times that containers spent in depots of 9, 11, 16, and 19 days, respectively.

However, severe congestion in many destination ports saw container dwell times soar to near-record levels in 2021, the report found. The worst performing countries in terms of the time containers spent in depots in 2021 were the U.S. and the U.K., which suffered average dwell times of 50 and 51 days, respectively. The next worst performers were South Africa (47 days), United Arab Emirates (40 days), Pakistan (31 days), and Germany (25 days).

“Once containers reach Asia, they are being redeployed at record speeds,” Johannes Schlingmeier, co-founder and CEO of Container xChange, said in a release. “However, the mismatch between supply and demand at many origin ports, including in China, means it is hard for U.S. and European importers to always secure boxes unless they have planned ahead, or are working closely with their box supplier, forwarder or container line, to ensure they have both a vessel slot and a container available in advance.”

Those pressures have pushed container shipping rates to record highs, thanks largely to extreme congestion at ports. Identifying specific culprits for those slow port times, the report found that U.S. statistics varied widely by geography. Nationwide dwell times actually improved from 66 days in 2020 to 50 days in 2021, but certain facilities fared much worse than others. New York recorded 61 days of container idle time at depots followed by Houston (59 days) and Savannah (56 days), which were all far slower than Long Beach (42 days) and Los Angeles (40 days).

“Until that congestion is cleared, we’ll continue to have major imbalances in the supply and demand of both vessel capacity and containers,” Schlingmeier said. “As the Omicron variant brings more disruption, with Chinese New Year around the corner and some ports including Ningbo already facing lockdowns, we are expecting a volatile start to the year for ocean freight logistics.”

Ocean
KEYWORDS Container xChange
  • Related Articles

    Ocean shipping losses decline, but industry faces emerging risks

    Maritime industry faces obstacles to efficiency, productivity

    Freight downcycle is closer to the end than the start, ACT says

Recent Articles by Supply Chain Quarterly Staff

IoT vendors say industry needs better collaboration

Survey: only 55% of shippers filled their LTL trucks to full capacity in 2022

Survey: consumers set price cap on paying sustainability premium

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Survey: parcel delivery drivers are frustrated by using their own smartphones for work

  • Survey: most Americans unaware that truckers face shortage of parking spaces

  • Best practices in logistics sustainability

  • Supply chain executives not yet seeing expected results from technology investments

  • Postal Service plans to seize items mailed with fake stamps

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Five tips for parcel success in 2023

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing