Innovating. Shipment Success Through Intelligent Visibility. Issue 26 December 2014

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1 Issue 26 December 214 Shipment Success Through Intelligent Visibility WELCOME to the December issue of CargoSmart s Innovating, a monthly, complimentary e-newsletter for the ocean shipping industry. Innovating is designed to provide insights about cargo delays around the globe that you may find useful to improve your daily operations and strategic planning. As port congestion has increased at the ports of Los Angeles and Long Beach, with multiple vessels anchored and waiting to berth throughout November, shippers have been diverting cargo to alternate ports. This month, we reviewed the performance of three nearby alternate US West Coast ports, Oakland, Seattle, and Tacoma, over the past six months to see if there has been an impact on performance. In the most recent month, the results show that even though the three ports had fewer vessel arrivals and shorter vessel arrival delays, vessel berth times increased in November. In the October issue of Innovating, we studied the vessel arrival delays at the congested ports of Ho Chi Minh City, Manila, and Nhava Sheva. This month we provide an update of the ports performance from September 15 to November 15. Ho Chi Minh City and Nhava Sheva had steady performance, while Manila s average vessel arrival delays increased. Although the Philippines government lifted its truck ban in September, the vessel arrival delays have not yet improved in Manila. Next, we reviewed schedule reliability along Asia-Europe trade lanes. As peak season drew to a close, we investigated to see whether reliability improved during the fall. On the westbound routes, we did find an improvement in schedule reliability. In this month s Incidents Around the World column featuring vessel and port disruptions, we investigated the impact that the November 24 dockworker strike at the Port of Antwerp had on vessel berth times. We did not identify a major impact on the vessel berth times. We invite you to read more about delays this month, including finding out the top five most-read visibility blog posts in 214, at visibility.cargosmart.com/blog. Graham Collins Executive Editor ABOUT INNOVATING CargoSmart is creating a whole new visibility model for ocean shippers and logistics service providers to monitor their shipments. The rules of the game are changing in the global shipping and logistics industry. CargoSmart s innovative methods offer insights for the industry to manage their shipments. CargoSmart s monthly, complimentary Innovating newsletter delivers refreshing insights for you to make intelligent decisions for your supply chain. CONTENTS Port Performance: Oakland, Seattle, and Tacoma 2 Asia Vessel Delay Study 4 Asia-Europe Reliability 6 World Incidents: Antwerp Strike 8 Contact CargoSmart Limited. All rights reserved. 1

2 OAKLAND, SEATTLE, AND TACOMA PORT PERFORMANCE: POTENTIAL IMPACT FROM CARGO DIVERSIONS In the November issue of Innovating, CargoSmart s Global Vessel Voyage Monitoring Center (GVVMC) reviewed the performance of the two largest U.S. West Coast ports, Los Angeles and Long Beach. The GVVMC found increasing vessel arrival delays and berth times through mid-october. As the congestion continued into November and multiple ships waited for berths at the ports of Los Angeles and Long Beach, shippers have been routing their cargo to other ports. This month, the GVVMC reviewed the performance of three nearby ports where shippers have been diverting their cargo, Oakland, Seattle, and Tacoma. We analyzed the vessel arrival delays, berth times, and number of vessel arrivals over the past six months. The data scope covered 1,35 vessels from 21 ocean carriers from June 1 through November 26, 214. Port of Seattle Port of Tacoma Port of Oakland Port of Los Angeles Port of Long Beach Ports of Seattle, Tacoma, Oakland, Los Angeles, and Long Beach Oakland Experienced Increasing Vessel Arrival Delays Hours Average Vessel Arrival Delays Port of Oakland Port of Seattle Port of Tacoma The average vessel arrival delays at the ports of Oakland, Seattle, and Tacoma fluctuated over the past six months, as shown in Figure 1. Between July and August, the Port of Seattle experienced a peak in average arrival delays of 23.3 hours after having an average delay of 15.7 hours in July. At the same time, the Port of Oakland experienced a similar increase in delays, from an average low of 9.2 hours in July to a high of 16 hours in August. After August, the average arrival delay at the Port of Oakland continued to climb at a slightly lower rate and reached a peak of 23.4 hours in October, followed by a decrease to 2 hours in November, which was still higher than the average in June. Compared to Seattle and Oakland, arrival delays at the Port of Tacoma remained low. The Port of Tacoma reached an average arrival delay of 1.3 hours in August before a sharp decline to.4 hours in September. The GVVMC also found that the arrival delays at the ports of Seattle and Tacoma followed nearly the same fluctuation rate from August through November. Starting in September, arrival delays at the Port of Oakland were greater than at the ports of Seattle and Tacoma. The increase in delays at the Port of Oakland has been evident since July, when the contract between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association expired. The increasing port congestion due to cargo diversions to the neighboring ports may be one of the factors for the increasing delays. The impact to the Port of Oakland may have been more severe than to the ports of Seattle and Tacoma due to being a closer alternate port to Los Angeles and Long Beach. Jun Jul Aug Sep Oct Nov.4.9 Figure 1: Average arrival delays at the ports of Oakland, Seattle, and Tacoma from June to November CargoSmart Limited. All rights reserved. 2

3 Average Berth Times Increased Steeply at Oakland and Seattle Ports Hours Average Berth Times Figure 2: Average berth times at the ports of Oakland, Seattle, and Tacoma from June to November 214 The average berth times of vessels show how efficient a port is in loading and unloading cargos from vessels. The GVVMC analyzed the average berth time at each port from June through November. In Figure 2, the GVVMC s findings revealed that the average berth times at each port fluctuated slightly from June to October. After October, the ports of Oakland and Seattle experienced a rapid increase in berth times while the Port of Tacoma maintained an average of 35 hours. In late November, the average berth times at all three ports reached their highest points during the six months of 31.9 hours, 45.4 hours, and 35.4 hours respectively for the ports of Oakland, Seattle, and Tacoma. The increase in the average berth times at the end of the peak season could be due to the impact of cargo diversions from the congested Los Angeles and Long Beach ports. Throughout the analysis period, we also observed that the Port of Oakland showed a stronger performance in terms of average berth times compared to the ports of Seattle and Tacoma. Vessel Arrivals Decreased from October to November To further explore the possible impact of the congestion at the ports of Los Angeles and Long Beach on neighboring ports, the GVVMC reviewed the number of vessels that visited the ports of Oakland, Seattle, and Tacoma over the past six months Jun Jul Aug Sep Oct Nov Port of Oakland Port of Seattle Port of Tacoma Vessels Number of Vessel Arrivals Figure 3: Number of vessels calling at the ports of Oakland, Seattle, and Tacoma from June to November Jun Jul Aug Sep Oct Nov Port of Oakland Port of Seattle Port of Tacoma As shown in Figure 3, from June through September, no significant changes were found in the number of vessel arrivals at the ports of Seattle and Tacoma until the decrease from October through November at both ports. For the Port of Oakland, the number of vessels before October was more than two times than at the Port of Tacoma and more than three times than at the Port of Seattle. In addition, we found that the number of vessels in Oakland increased from 141 in June to 156 in August, and then it reduced by 52 to 14 vessel arrivals in November. In summary, congestion and potential cargo diversions from Los Angeles and Long Beach might not have led to a significant increase in the number of vessels visiting the ports of Oakland, Seattle, and Tacoma. Mixed Results for November Port Performance The results show fewer vessel arrivals, shorter vessel arrival delays, and yet increased berth times at the three ports in November. The recent increase in average berth times could be due to handling a higher volume of cargo from diversions away from Los Angeles and Long Beach, or due to other factors. The ILWU has been working without a contract since July 1, 214. In November, shippers that export cargo through U.S. Pacific Northwest ports expressed frustration of low port productivity and efficiency that was preventing cargo from being exported on time. The GVVMC shares statistics on ports performance so that you can better plan your shipments and carefully select the appropriate schedules and routings to minimize delays. The statistics reflect the general situation in the past. The future performance of the vessels and ports will depend on the actual conditions that are affected by weather, vessel delays, and other factors. 214 CargoSmart Limited. All rights reserved. 3

4 VESSEL DELAY STUDY: HO CHI MINH CITY, MANILA, AND NHAVA SHEVA In the October issue of Innovating, we studied the vessel arrival delays at Ho Chi Minh City, Manila, and Nhava Sheva as their port congestion worsened. This month we provide an update of the ports performance from September 15 to November 15, at the end of peak season before Christmas. 31.3% of Vessel Arrivals Delayed More Than a Day We analyzed the vessel arrival schedules for 21 ocean carriers at the ports of Ho Chi Minh City, Manila, and Nhava Sheva from September 15 to November 15. By analyzing the schedule data and comparing the actual time of arrivals (ATAs) to the estimated time of arrivals (ETAs) of the coastal schedules provided by the carriers, we observed 816 unique vessel arrivals at the three ports. Within this period, 46.8% of the vessels arrivals were delayed more than 12 hours, while 31.3% were delayed over 24 hours. A summary of the results is shown in Figure 1. Total Unique Vessel Arrivals 816 Number of Delayed Vessels (Delay > 12 Hours) 382 (46.8%) Number of Delayed Vessels (Delay > 24 Hours) 255 (31.3%) Figure 1: Abstract result of unique vessel arrivals from 21 carriers from September 15 to November 15 Manila Continued to Experience the Longest Vessel Arrival Delays Figure 2 shows the details of the container vessel arrival delays at the three ports. The results show that Ho Chi Minh City had an average delay of 18.5 hours and Nhava Sheva had an average delay of 17 hours. Manila, experiencing heavy port congestion, had an average delay of more than five days. For Ho Chi Minh City and Nhava Sheva, about one-fifth of the total vessel arrivals were delayed more than one day. In Manila, more than 8 of vessel arrivals were delayed more than one day. The data revealed that the maximum delay was more than 2 days. Number of Unique Arrivals Average Vessel Arrival Delay (Hours) Percentage of Vessel Delays (> 1 Day) Ho Chi Minh City % Manila % Nhava Sheva % Figure 2: The performance of 3 Asian ports from 21 carriers from September 15 to November 15 In Figures 3 and 4, we further separated the data into two months. We can see that except for Nhava Sheva, the delays from October 15 to November 15 at Manila and Nhava Sheva were longer than the delays from September 15 to October 14. For Manila, we can see that the delays were exceptionally long. However, Manila had fewer vessels that experienced a delay of more than 24 hours between the two periods. 214 CargoSmart Limited. All rights reserved. 4

5 16 14 Average Vessel Arrival Delay (Hours) Percentage of Vessel Delays (> 1 Day) over 4 Months 88.5% 86.7% % 77.4% Hours Ho Chi Minh City Manila Nhava Sheva Sep 15 - Oct 14 Oct 15 - Nov % % 19.7% 22.4% 16.9% Jul 15 - Aug 14 Aug 15 - Sep 15 Sep 15 - Oct 14 Oct 15 - Nov 15 Ho Chi Minh City Manila Nhava Sheva Figure 3: The average vessel arrival delay in hours at the three ports Figure 6: Percentage of vessel arrival delays greater than one day over four months 8 Percentage of Vessel Delays (>1 Day) 86.7% 77.4% Although the Philippines government lifted its truck ban in September, the port congestion in Manila has not yet improved. The continued delays may be due to catching up with the backlog from the truck ban. Sep 15 - Oct 14 Oct 15 - Nov % 19.7% Ho Chi Minh City Manila Nhava Sheva Figure 4: The percentage of vessel arrival delays greater than one day In Figures 5 and 6, we further illustrate the trend over four months to compare the vessel delays. We can see that the vessel delay pattern is quite consistent at Ho Chi Minh City and Nhava Sheva, while the delays are still very serious in Manila. However, in Manila, fewer vessels have had to wait for more than 24 hours to berth in the past two months than in the prior months. Hours Average Vessel Arrival Delay over 4 Months Jul 15 - Aug 14 Aug 15 - Sep 15 Sep 15 - Oct 14 Oct 15 - Nov 15 Ho Chi Minh City Manila Nhava Sheva Figure 5: Average vessel arrival delay over four months 214 CargoSmart Limited. All rights reserved. 5

6 SCHEDULE RELIABILITY ON ASIA-EUROPE TRADE LANES As peak season came to a close, we reviewed the schedule reliability of Asia-Europe routes over the past three months. With Asia-Europe trade volumes peaking in August, we might expect to see an improvement in reliability in the fall. We compared two westbound routes with earlier reliability results to see if there was an improvement. As shown in Figure 2, the carriers shared a similar pattern of performance during the eight weeks. In Week 43, there was a significant drop in reliability. For each trade direction, we reviewed two popular routes: Westbound: Asia-Europe I) Hong Kong to Rotterdam II) Shanghai to Rotterdam Eastbound: Europe-Asia III) Rotterdam to Shanghai IV) Antwerp to Jebel Ali The carrier performance analysis covers a total of eight weeks from September 28, 214 (Week 4) to November 22, 214 (Week 47). Hong Kong to Rotterdam: Schedule Reliability Has Improved Since September The average reliability in the market from Hong Kong to Rotterdam was 72%, as shown in Figure 1. The overall performance of this route had a gradual improvement over the past few months. As analyzed in the July Innovating, the overall performance from Week 2 to Week 24 was 54%, while in the September Innovating, the overall performance between Week 3 to Week 33 was 39%. Within this eight-week period, the CKYHE alliance carriers scored the highest percentage with 93%, followed by Maersk and UASC, both achieving 86%. The third place was MOL with 71%. Figure 2: Weekly performance of the Hong Kong to Rotterdam route from September 28 to November 22, 214 Shanghai to Rotterdam: Reliability Has Improved Since August While delays and congestion started to ease at the Port of Rotterdam in the last quarter of the year, the performance along the route from Shanghai to Rotterdam also improved. As analyzed in the July issue of Innovating, the overall performance between Week 2 to Week 24 was 37%. While in the September Innovating, the overall performance between Week 3 to Week 33 was 29%. In Week 4 to Week 47, the average performance on the route was, with a significant improvement. Maersk was the most reliable carrier achieving reliability. Hanjin ranked second with 72%, while COSCON ranked third with 71%. Schedule Reliability - Shanghai to Rotterdam Schedule Reliability - Hong Kong to Rotterdam 93% 93% 93% 93% 93% 86% 86% 8 72% 71% 8 71% 72% Maersk Hanjin COSCON Average COSCON Evergreen Hanjin K Line Yang Ming Maersk UASC Figure 1: Carrier reliability performance on the route of Hong Kong to Rotterdam from September 28 to November 22, 214 MOL Average Figure 3: Schedule reliability performance on the route of Shanghai to Rotterdam from September 28 to November 22, CargoSmart Limited. All rights reserved. 6

7 Similar to the route from Hong Kong to Rotterdam, the Shanghai to Rotterdam route recorded a significant drop in reliability in Week 43, with only 27% on average. Figure 6: Weekly performance of the Rotterdam to Shanghai route from September 28 to November 22, 214 Figure 4: Weekly performance of the Shanghai to Rotterdam route from September 28 to November 22, 214 Rotterdam to Shanghai: Average Reliability Was 74% Along the route of Rotterdam to Shanghai, the average reliability was 74%. Maersk was the most reliable with 89% reliability, followed closely by Evergreen and MSC. The latter two accomplished 86% and 83% respectively. Antwerp to Jebel Ali: Average Reliability Was 73% The average reliability along the route of Antwerp to Jebel Ali was 73%. Hamburg Sud and Maersk both achieved reliability. Next were NYK and Hapag-Lloyd with 88% and 86% respectively. Schedule Reliability - Antwerp to Jebel Ali 88% 86% 8 73% Schedule Reliability - Rotterdam to Shanghai 8 89% 86% 83% 74% Hamburg Sud Maersk NYK Hapag-Lloyd Average Figure 7: Schedule reliability performance on the route of Antwerp to Jebel Ali from September 28 to November 22, 214 Maersk Evergreen Figure 5: Schedule reliability performance on the Rotterdam to Shanghai route from September 28 to November 22, 214 MSC Average Reviewing the weekly performance over the past eight weeks, the performance was quite stable. Reviewing the weekly historical trend, schedule reliability was lower in Week 42, and then improved over the eight-week period. Figure 8: Weekly performance of the Antwerp to Jebel Ali route from September 28 to November 22, CargoSmart Limited. All rights reserved. 7

8 INCIDENTS AROUND THE WORLD Vessel casualties, port strikes, facility shutdowns, and extreme weather can all affect vessel schedules and potentially delay shipments. In this column, we cover incidents around the world that caught our attention during the previous month and their impact on shipment delays. Vessels Ports November 11 November 11 November 15 November 15 November 15 November 22 November 25 November 3 November 12 November 24 November 26 November 3 PULPCA collided with the quay of berth in Lübeck-Travemünde, Germany Collision between HANSA SIEGBURG and HAI RUN 67 in Xiamen, China LAL BHADUR SHASTRI suffered engine failure and hit the wharf in Valarpadam, India NYK AQUARIUS dropped containers in the water in San Francisco, US SEROJA LIMA lost 23 containers in port Elizabeth, South Africa STADT ROSTOCK collided with car carrier Morning Capo in Xiamen, China HANOI damaged in grounding in Hamburg, Germany Dockworkers slowdown at Seattle and Tacoma ports, US Dockworkers shut down SSA terminal in Oakland, US Port strike in Antwerp, Belgium Port strike in Montreal, Canada Farmers blocked Marseilles-Fos Port, France Strike: Port of Antwerp, Belgium On November 24, a 24-hour strike was held at the Port of Antwerp in Belgium to voice dockworkers objections to the government s austerity program that planned to cut employees' income, extend working time, and restrict social services. The concerns from labor were the change in pension system and extended retirement age, and the reduction of health and social security budgets. Trade unions were planning to continue the strike intermittently to halt the port operations until the government was willing to make concessions. On the first day of the strike, over 5 vessels were affected, according to a port authority spokesperson. In response to the event, some terminals in Antwerp extended their operations on Saturday to let more cargo transfer before the stoppage. Below are the figures of average berth times in Antwerp from November 1 to November 3, including the strike day Antwerp Average Berth Times (Hours) Date Range: November 1 26 Vessel Arrivals: 45 Longest Berth Time: Hours Average Berth Time: 26.9 Hours Nov 2-Nov 3-Nov 4-Nov 5-Nov 6-Nov 7-Nov 8-Nov 9-Nov 1-Nov 11-Nov 12-Nov 13-Nov 14-Nov 15-Nov 16-Nov 17-Nov 18-Nov 19-Nov 2-Nov 21-Nov 22-Nov 23-Nov 24-Nov 25-Nov 26-Nov 27-Nov 28-Nov 29-Nov 3-Nov Although we did not observe a major impact on vessels berth time by the strike, the threat still persists. Unions have planned a series of strikes, including another nationwide labor action on December 15. We will closely monitor the port operations and post updates at visibility.cargosmart.com/blog. 214 CargoSmart Limited. All rights reserved. 8

9 ADVANCED SOLUTIONS TO MANAGE YOUR SHIPMENT PLANNING Measure Carriers Reliability Performance CargoSmart s latest mobile app innovation, SSM+, allows you to access current sailing schedules and view schedule reliability information alongside schedule search results. New performance tracking methodology and integrated reliability results enable you to select the best routes for your shipments. The free app lets you search schedules with reliability results for one port of origin or destination of your choice. Download the free SSM+ app today at to experience the brand new schedule reliability! DATA METHODOLOGY CargoSmart established the Global Vessel Voyage Monitoring Center (GVVMC) to detect and analyze exceptions as they are happening so that shippers, forwarders, and NVOCCs can be informed earlier. Opened in Hong Kong in October 212, the GVVMC monitors and analyzes over 5,5 vessels' movements covering 9 of the world's container capacity and over 1, global container ports. Using advanced analytical software tools, the center analyzes vessel patterns, to detect deviations that have the potential to cause shipment-plan exceptions and monitor live vessel schedules to measure carriers reliability. For iphone For Android The GVVMC obtains data from the Automatic Identification System (AIS), ocean carrier websites, marine terminals, and shipment data. The center ensures high data quality by observing and reconciling multiple data sources. iphone is a trademark of Apple Inc. Android is a trademark of Google Inc. VISIBILITY BLOG - JOIN THE DISCUSSION Follow updates and share your insights about vessel delays on CargoSmart's blog at visibility.cargosmart.com/blog. To receive the monthly Innovating newsletter for the shipping industry by , please subscribe at We value your feedback and want to continue to improve our service and information that we provide to you. To provide feedback or ask questions, please contact us at innovating@cargosmart.com. China Germany Hong Kong United Kingdom United States CargoSmart Limited. All rights reserved. 9

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