Innovating. Shipment Success Through Intelligent Visibility. Issue 39 January 2016

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1 Issue 39 January 2016 Shipment Success Through Intelligent Visibility WELCOME to the January 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. This month, we feature a sailing schedule reliability study on the Middle East and South Asia region. According to Alphaliner, the region has had the greatest year-on-year growth in terms of TEU capacity deployed by trade at the end of We investigated to see if the fast growth has impacted the region s schedule reliability from October 1 through December 19, Overall, we found that reliability was over 88% for the Europe - Middle East and the Asia - South Asia trade lanes. We also investigated to see whether Jeddah or Jebel Ali had greater schedule reliability from Hamburg and whether Colombo or Nhava Sheva had greater schedule reliability from Singapore. Starting this month, CargoSmart is pleased to launch Innovating Insights, a free, monthly webcast that supplements the Innovating newsletter. In this month s webcast, The Middle East & South Asia: Are Its Ports Handling the Fast Growth?, we highlight three key findings and share additional insights from the article on Middle East and South Asia schedule reliability. The webcast is seven minutes long and available at form.cargosmart.com/innovating-webcast-jan2016. Next, we analyzed port performance at the top four ports in Australia Melbourne, Sydney, Brisbane, and Fremantle. From September 21 through December 20, 2015, Melbourne and Brisbane had the most large-size vessel arrivals while Fremantle had the shortest average vessel arrival delays. When comparing this month s study with our study of Australia ports in May, Fremantle has surpassed Brisbane in terms of having the shortest average vessel arrival delays. For our Incidents Around the World column featuring vessel and port disruptions, we looked at the impact of the protests that occurred at Malta Freeport on December 16, We found minimal impact, although the container vessel arrival count was slightly lower than normal. We invite you to monitor current events affecting your shipments and to share your delay experiences with us on our visibility blog at visibility.cargosmart.com/blog or by at 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 Schedule Reliability: Middle East and South Asia 2 Special Webcast: Middle East and South Asia 5 Port Performance: Australia Ports 6 World Incidents: Malta Freeport Protests 8 Contact 9 Kim Le Executive Editor 2016 CargoSmart Limited. All rights reserved. 1

2 SCHEDULE RELIABILITY STUDY: MIDDLE EAST AND SOUTH ASIA According to Alphaliner, the Middle East and South Asia region is currently one of the fastest growing regions in terms of TEU trade. This month, we took a closer look at the region to see if the growing trade volume may be causing pressure on schedule reliability. 6 Middle East and South Asia Trades Monthly Schedule Reliability 88% 9 88% 86% 88% 88% To measure the schedule reliability of the region s trade lanes, we analyzed schedules between Europe and the Middle East (both directions) and between Asia and South Asia (both directions). The carrier performance analysis covered 19 ocean carriers over three months from October 1, 2015 through December 19, First, we analyzed the overall schedule reliability of the two trade lanes. Then, we reviewed two popular routes on each trade lane to compare their schedule reliability. Europe Middle East: I) Hamburg to Jeddah II) Hamburg to Jebel Ali 4 2 October November December Asia-South Asia Europe-Middle East Figure 1: Monthly schedule reliability for Asia - South Asia and Europe - Middle East trades from October 1 to December 19, 2015 Hamburg Had Stronger Schedule Reliability to Jebel Ali than to Jeddah From October to November, the schedule reliability of both Hamburg to Jeddah and Hamburg to Jebel Ali increased slightly. From November to December, Hamburg to Jeddah increased, while Hamburg to Jebel Ali decreased. The results are shown in Figure 2. Asia South Asia: I) Singapore to Colombo II) Singapore to Nhava Sheva Hamburg to Jeddah and Jebel Ali Monthly Schedule Reliability Performance 96% 98% 6 75% 77% 84% 76% Jeddah Jebel Ali Nhava Sheva 4 2 Colombo October November December Hamburg to Jeddah Hamburg to Jebel Ali Figure 2: Monthly schedule reliability for Hamburg to Jeddah and Hamburg to Jebel Ali from October 1 to December 19, 2015 Overall Schedule Reliability Was 88% in December From October 1 to December 19, 2015, we identified over 8,800 sailing schedules in the Europe - Middle East and Asia - South Asia trades. As shown in Figure 1, schedule reliability for schedules between Europe and the Middle East increased from 86% in October to 88% in November and December. The schedule reliability for schedules between Asia and South Asia fluctuated slightly over three months, with 88% reliability in October and December and 9 in November. Overall, the schedule reliability was quite strong for the region. Hamburg to Jeddah: Top Three Carriers Were Close On the port pair from Hamburg to Jeddah, the average schedule reliability was 78%. UASC ranked as the most reliable carrier, with 91% reliability. Hamburg Sud and Yang Ming ranked second and third, scoring a close 9 and 89% schedule reliability respectively. The results are shown in Figure CargoSmart Limited. All rights reserved. 2

3 Schedule Reliability Hamburg to Jeddah 91% 9 89% Schedule Reliability Hamburg to Jebel Ali 95% 9 93% 78% UASC Hamburg Sud Yang Ming Average Figure 3: Monthly schedule reliability on the Hamburg to Jeddah route from October 1 to December 19, CMA CGM Hamburg Sud Maersk Line UASC NYK Hapag-Lloyd Average Figure 5: Monthly schedule reliability on the Hamburg to Jebel Ali route from October 1 to December 19, The first and third most reliable carriers for the Hamburg to Jeddah route, UASC and Yang Ming, experienced an increase in schedule reliability to from October to November, and maintained the strong performance through December. The performance trend of Hamburg Sud fluctuated. It decreased from its schedule reliability in October and increased back to in December. The results are shown in Figure 4. As shown in Figure 6, CMA CGM, Hamburg Sud, Maersk, and UASC maintained the strongest performance from October to December. NYK s reliability decreased in December. Hapag-LIoyd s reliability decreased in November and December. Figure 6: Monthly schedule reliability on the Hamburg to Jebel Ali route from October 1 to December 19, Figure 4: Monthly schedule reliability on the Hamburg to Jeddah route from October 1 to December 19, Hamburg to Jebel Ali: The Average Schedule Reliability Was 93% The average schedule reliability for the route from Hamburg to Jebel Ali was 93%. CMA CGM, Hamburg Sud, Maersk, and UASC ranked first place with reliability. The second place carrier was NYK with 95% reliability. The third place carrier was Hapag-LIoyd with 9 reliability. The results are shown in Figure 5. Singapore Had Stronger Schedule Reliability to Nhava Sheva than to Colombo As shown in Figure 7, the average schedule reliability of Singapore to Colombo and to Nhava Sheva within the studied period was above 88% over the three months. From November to December, the schedule reliability of Singapore to Colombo decreased while the reliability of Singapore to Nhava Sheva increased slightly CargoSmart Limited. All rights reserved. 3

4 6 4 2 Singapore to Colombo and Nhava Sheva Monthly Schedule Reliability 97% 98% 99% 93% 96% 88% October November December Singapore to Nhava Sheva: 12 Carriers Achieved Reliability The average schedule reliability for Singapore to Nhava Sheva was 98%. 12 carriers ranked first place with reliability. They were APL, CMA CGM, Evergreen, Hamburg Sud, Hanjin, Hapag-LIoyd, Hyundai, K Line, MOL, NYK, PIL, and Yang Ming. They were followed by OOCL with 98% reliability and Wan Hai with 97% reliability. The results are shown in Figure 10. Singapore to Colombo Singapore to Nhava Sheva Figure 7: Monthly schedule reliability for Singapore to Colombo and Singapore to Nhava Sheva from October 1 to December 19, 2015 Singapore to Colombo: Average Schedule Reliability Was 93% From Singapore to Colombo, the average schedule reliability was 93%. Six carriers had reliability: APL, K Line, MOL, NYK, Wan Hai, and Yang Ming. OOCL and Hyundai were close with 98% and 97% reliability respectively. The results are shown in Figure Schedule Reliability Singapore to Nhava Sheva 98% 97% 98% Schedule Reliability Singapore to Colombo Figure 10: Monthly schedule reliability on the Singapore to Nhava Sheva route from October 1 to December 19, % 97% 93% As shown in Figure 11, the first place carriers, APL, CMA CGM, Evergreen, Hamburg Sud, Hanjin, Hapag-LIoyd, Hyundai, K Line, 6 4 MOL, NYK, PIL, and Yang Ming, had perfect performance during the studied period. The second and third carriers, OOCL and Wan Hai, increased from October to November, and had perfect 2 performance in November and December. APL K Line MOL NYK Wan Hai Yang Ming OOCL Hyundai Average Figure 8: Monthly schedule reliability on the Singapore to Colombo route from October 1 to December 19, When reviewing the carrier performance over the three months, the most reliable carriers--apl, K Line, MOL, NYK, Wan Hai, and Yang Ming maintained a strong performance of. OOCL and Hyundai had reliability from October to November, and then decreased in December. The results are shown in Figure 9. Figure 11: Monthly schedule reliability on the Singapore to Nhava Sheva route from October 1 to December 19, Figure 9: Monthly schedule reliability on the Singapore to Colombo route from October 1 to December 19, CargoSmart Limited. All rights reserved. 4

5 Overall: Strong Schedule Reliability for the Middle East and South Asia Region In conclusion, schedule reliability for the region from October through mid-december was quite strong. These findings are in line with an overall trend of stronger schedule reliability at the end of In addition, comparing schedules from Hamburg to Jebel Ali and Hamburg to Jeddah, the schedules to Jebel Ali had higher reliability. When comparing the schedules from Singapore to Colombo and Singapore to Nhava Sheva, schedules to Nhava Sheva had slightly higher reliability. Would you like to learn more about the Middle East and South Asia region s performance? We invite you to join this month s Innovating Insights, a free 7-minute webcast titled The Middle East & South Asia: Are Its Ports Handling the Fast Growth? We highlight three key findings from this article and share additional insights including monthly schedule estimated time of arrival (ETA) deviations in hours. To view the webcast, visit form.cargosmart.com/innovating-webcast-jan2016. Innovating Insights Innovating Insights Webcast Series - New! Starting with the January 2016 issue of Innovating, CargoSmart is launching Innovating Insights, a free, monthly webcast that supplements the Innovating newsletter. During this month s 7-minute webcast, you will learn about the sailing schedule reliability findings in the Middle East and South Asia region. As the region s trade grows rapidly, we reviewed the schedule reliability to see if may be impacted. We highlight three key findings and share additional insights from the article on Middle East and South Asia schedule reliability from this month s issue of Innovating. Presenter: Lionel Louie Topic: The Middle East & South Asia: Are Its Ports Handling the Fast Growth? Presenter: Lionel Louie, Chief Commercial Officer, CargoSmart Limited Broadcast: Tuesday, January 19, 2016 Duration: 7 minutes What you will learn: Schedule reliability in the Middle East and South Asia region in Q How the region s schedule reliability compares with schedule reliability overall Average schedule delay durations for the region Which Middle East schedules performed best from Hamburg Jeddah or Jebel Ali Which South Asia schedules performed best from Singapore Colombo or Nhava Sheva Register to watch the webcast! Visit form.cargosmart.com/innovating-webcast-jan CargoSmart Limited. All rights reserved. 5

6 AUSTRALIA: PERFORMANCE OF TOP PORTS In May 2015, CargoSmart s Global Vessel Voyage Monitoring Center (GVVMC) reviewed the performance of the top four container ports in Australia, Melbourne, Sydney, Brisbane, and Fremantle from mid-january through mid-april. Brisbane stood out as the port with the strongest performance. Fremantle had the shortest vessel arrival delays over the three months. The average vessel arrival delay was 10.5 hours from September 21 to October 20, dropped to 8.6 hours from October 21 to November 20, and then increased to 10.1 hours through December 20. Since then, Sydney s Port Botany has added automation to its Patrick terminal operations and the Port of Melbourne and the Port of Sydney continue to compete for being the largest container port. In this issue, the GVVMC revisited the performance of the four top Australia ports. The GVVMC collected three months of data, from September 21 to December 20, 2015, and analyzed it to measure port performance in terms of vessel delays, berth times, and arriving vessels. Hours Average Vessel Arrival Delays Sep 21 to Oct 20 Oct 21 to Nov 20 Nov 21 to Dec 20 Melbourne Sydney Brisbane Fremantle Figure 1: Average arrival delays at the ports of Melbourne, Sydney, Brisbane, and Fremantle from September 21 to December 20, 2015 Fremantle Melbourne Brisbane Sydney Map data 2015 GBRMPA, Google Sydney Longest Average Vessel Berth Times Next, we reviewed the ports vessel berth times. Melbourne s average berth time was 30.6 hours for September 21 to October 20, 30.2 hours for October 21 to November 20, and 32.1 hours for November 21 to December 20. The average berth times increased slightly at the end of the year. Overall, Melbourne s performance was stable over the three months. Fremantle Shortest Average Vessel Arrival Delays As shown in Figure 1, the four ports had different patterns of vessel arrival delays over the past three months. Melbourne and Sydney had the longest average vessel delays from September 21 to October 20, with 17.3 hours on average for Melbourne and 20.4 hours on average for Sydney. The delays dropped sharply to 10.9 hours for Melbourne and 11.6 hours for Sydney from October 21 to November 20, and remained stable through December 20. Rather than inconsistent performance of vessel delays, Brisbane had a slight improvement over the three months, with 14.8 hours as the average vessel arrival delay for September 21 to October 20, dropping to 12.9 hours for October 21 to November 20, and then further dropping to 12.5 hours through December 20. Brisbane had a fairly steady performance with an average berth time of 21.2 hours from September 21 to October 20. Its average berth times rose to 26 hours from October 21 to November 20 and then fell back to 22.6 hours through December 20. Similar to Brisbane, Fremantle had its shortest berth times from September 21 to October 20, but had an increase from October 21 to November 20. Its average berth times increased from 23.7 hours to 27.6 hours. After that, the average berth times declined to 26.4 hours through December 20. Sydney s average berth times steadily improved over the three months. However, the average vessel berth times at Sydney were the longest each month. The number of hours for berthing was 39.3 from September 21 to October 20, dropped to 36.3 hours in the following month and dropped even lower to 34.5 hours from November 21 to December 20. The results are shown in Figure CargoSmart Limited. All rights reserved. 6

7 Hours Average Vessel Berth Times Figure 2: Average berth times at the ports of Melbourne, Sydney, Brisbane, and Fremantle from September 21 to December 20, Sep 21 to Oct 20 Oct 21 to Nov 20 Nov 21 to Dec 20 Melbourne Sydney Brisbane Fremantle Vessel Size Distribution among 4 Ports <4,000 4,000-6,999 <4,000 4,000-6,999 <4,000 4,000-6,999 Sep 21 to Oct 20 Oct 21 to Nov 20 Nov 21 to Dec 20 Melbourne Sydney Brisbane Fremantle Figure 3: Number of vessel arrivals at the ports of Melbourne, Sydney, Brisbane, and Fremantle from September 21 to December 20, 2015 Melbourne and Brisbane Most Large-Size Vessel Arrivals In addition to vessel delays and berth times, we looked into the number and size of vessel arrivals at each port to get a complete picture of port performance. Fremantle served the fewest vessels over the three months, with around 45 to 50 vessel arrivals each month: 44 from September 21 to October 20, 51 from October 21 to November 20, and 45 from November 21 to December 20. Melbourne, Sydney, and Brisbane served the most vessels over the three months. Sydney was the busiest among the three ports, serving 97 vessels from September 21 to October 20, 96 vessels from October 21 to November 20, and 86 vessels from November 21 to December 20. In terms of vessel capacity, Melbourne and Brisbane served the most vessels with a capacity of 4,000 to 6,999 TEUs over the three months. Sydney served the most vessels with a capacity of fewer than 4,000 TEUs during each of the three months. The results are shown in Figure 3. Fremantle Surpasses Brisbane in Terms of Shortest Delays Despite handling the most large-size vessels among the four ports, Brisbane s average berth times were the shortest during the three months. At the same time, Fremantle had the fewest vessel arrivals and the shortest average vessel arrival delays among the four ports. When comparing the results to our study in May, Brisbane consistently had the shortest average vessel berth times while Sydney consistently had the longest average vessel berth times. In terms of vessel arrival delays, Fremantle surpassed Brisbane as having the shortest delays during the last three months of the year. 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 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 December 1 December 4 December 7 December 9 December 11 December 18 December 20 December 24 December 3 December 16 NINGPO experienced a system failure in its ballast system that caused an oil spill in Whangarei Harbour, New Zealand HANJIN AQUA ran aground off Sangiang Island in the Sunda Strait, Indonesia MAERSK SAIGON ran aground inside the Port of Santos, Brazil NORDIC BREMEN collided with a German navy ship in the Kiel Canal, Germany MANOA lost containers at San Francisco Bay, US SAMSKIP EXPRESS experienced engine trouble in Porthleven, UK CAMARO ran aground in Dettenheim, Germany WAN HAI 506 ran aground in Hong Kong Port strikes in Greece Workers protest at Malta Freeport Port Protests: Malta Freeport Malta Freeport, one of the busiest ports in Europe, experienced a halt in operations due to labor actions on December 16, Workers walked out in protest against the annual pay raises that were less than expected. The industrial action started during the night shift and ended at noon on the following day, lasting for about 12 hours. During the period, unloading operations were suspended and some ships needed to reroute to other ports. A terminal spokesman stated that the strike was illegal, while the union declared that no order was given to workers for any industrial action. Negotiations between the port management and union continued after the protests, but no solid agreement was reached. We reviewed the Malta Freeport activities in December. From the figures, we observed no serious performance impact during the strike period. However, the container vessel arrival count was slightly lower than normal. Malta Freeport: Vessel Arrivals: 150 Duration: December 1 26, 2015 Longest Berth Time: 225 Hours Average Berth Time: 28.5 Hours Malta Freeport Average Berth Times and Vessel Count (December 1-26) Berth Time (Hours) Vessel Arrival Count 0 1-Dec 2-Dec 3-Dec 4-Dec 5-Dec 6-Dec 7-Dec 8-Dec 9-Dec 10-Dec 11-Dec 12-Dec 13-Dec 14-Dec 15-Dec 16-Dec 17-Dec 18-Dec 19-Dec 20-Dec 21-Dec 22-Dec 23-Dec 24-Dec 25-Dec 26-Dec 2016 CargoSmart Limited. All rights reserved. 8

9 A BRAND NEW EXPERIENCE WITH BIG SCHEDULES PREMIUM We have been continuously making enhancements to improve the sailing schedule and vessel tracking features on Big Schedules. Premium features, including event monitoring, schedule comparison, vessel delay alerts and a vessel watch list, are now available on a subscription basis to help you gain deeper insights to improve your shipment planning. The premium features can help you: Discover events impacting schedules In sailing schedule search results, identify potential delays from well-known events such as strikes or typhoons affecting port regions. Compare schedules Select schedules to compare side by side when choosing services, including cut-off dates, transit times, and on-time percentages. Spot potential arrival delays earlier Identify potential delays in service routes when tracking hot shipments by vessel. Track vessels faster Set up and maintain a vessel watch list directly from sailing schedule search results. Sign up today at to elevate your shipment planning with the next revolution in big data management. 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 2012, the GVVMC monitors and analyzes 7,000 vessels' movements covering 9 of the world's container capacity and over 1,100 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. 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. 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 China Germany Hong Kong United States CargoSmart Limited. All rights reserved.

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