Update and Analysis of The Global Seafreight Market This Update and Analysis of the Global Seafreight Market is exclusively for DSV Air & Sea and made by Lars Jensen CEO and partner in Vespucci Maritime. Lars Jensen has 19 years of experience in the shipping industry and has for the last 10 years worked as an independent market analyst. January 7, 2022 Congestion is worsening We are now entering a new year, and with the supply chain chaos of 2021, one might have hoped for some light at the end of the tunnel. Unfortunately, the data shows that conditions are worsening. The newly issued November data for schedule reliability from Sea-Intelligence showed no material improvement globally, which in turn also means that 11.5% of all global vessel capacity remains unavailable as the vessels are quite simply stuck in queues outside ports. Until these bottlenecks are resolved, the market will continue to have a shortage of vessel capacity. Market data from early January 2022 indicate that it currently takes 110 days on average for a container to reach its destination – from the time when the cargo is ready for dispatch from the exporter in Asia until the importer collects it in North America. This is up from just 45 days prior to the pandemic. It is also up from 105 days in early December. The most visible congestion problem is off the coast of California outside the ports of Los Angeles and Long Beach (LA/LB). As of 4 January, 102 vessels were waiting to dock – up from 89 vessels in mid-November. This was mainly in the range of 95-100 vessels in the second half of December. The only difference is that the queueing system has been changed to allow vessels to queue hundreds of miles off the coastline instead of adding to the air pollution close to the shore. Another persistent issue in LA/LB is the congestion caused by the failure of importers to pick up their containers. There are many reasons for this, including shortages of trucks, chassis and rail. At end October, 40% of the containers had a dwell time of 9 days or more.
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