Innovating. Shipment Success Through Intelligent Visibility. Issue 32 June 2015
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1 Issue 32 June 215 Shipment Success Through Intelligent Visibility WELCOME to the June 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. CargoSmart will be attending the Agriculture Transportation Coalition s annual meeting in San Francisco, California in June. One of the topics at the conference, and on the minds of many North America importers and exporters, is considering shipping Asia to North America imports and exports through either the West Coast or East Coast after the recent West Coast port congestion. We analyzed vessel arrival delays at the top 12 North America West and East Coast ports from January through May of this year. The East Coast ports consistently performed better than the West Coast ports through April. However, the ports were nearly even in May, indicating that the backlog has likely cleared and operations have returned to normal three months after the ILWU and PMA reached a tentative agreement in February and ratified the contract in May. Next, we reviewed schedule reliability in the trans-pacific trade from January through May. The overall schedule reliability improved in March through May after the ILWU and PMA completed their contract negotiations. We also found that westbound routes had stronger schedule reliability than eastbound routes. In our third article, we analyzed the performance of three fast-growing ports in South and Southeast Asia Colombo, Ho Chi Minh City, and Tanjung Pelepas. The Southeast Asia ports of Ho Chi Minh City and Tanjung Pelepas had similar performance, while Colombo had longer average vessel arrival delays and shorter berth times. In terms of very large vessels, Colombo s visiting large vessels had the shortest arrival delays and berth times among the three ports. In this month s Incidents Around the World column featuring vessel and port disruptions, we reviewed the impact of the ongoing port strikes that started on May 13 at the Port of Callao in Peru. Through the end of May, only two days during the strike experienced prolonged vessel berth times. We invite you to monitor current events affecting your shipments, including updates on the strike in Peru, and to share your delay experiences with us on our visibility blog at visibility.cargosmart.com/blog or by at innovating@cargosmart.com. 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 Vessel Delay Comparison: North America Coasts 2 Schedule Reliability: Trans-Pacific Trade 4 Port Performance: South and Southeast Asia Ports 7 World Incidents: Peru Strike 9 Contact CargoSmart Limited. All rights reserved. 1
2 VESSEL DELAY STUDY: ASIA TO NORTH AMERICA EAST AND WEST COAST PORTS As North America West Coast ports suffered severe congestion in late 214 and early 215, many shippers diverted more cargo to North America East Coast ports. This month, we studied vessel arrival delays on services from Asia to North America East and West Coast ports to compare the vessel delay situation between the two trades for 21 carriers from January 1 to May 15, 215. More Vessels Deployed on North America West Coast Services First, we compared the number of vessels deployed. We analyzed the 12 ports that had the most vessels deployed from Asia to North America. Among the 12 ports, six ports are on the East Coast: Charleston, Halifax, Jacksonville, New York-New Jersey, Norfolk, and Savannah. The other six ports are on the West Coast: Long Beach, Los Angeles, Oakland, Seattle, Tacoma, and Vancouver. We included services that visited both coasts of North America. As shown in Figure 1, the West Coast routes had more vessels deployed. East Coast Services West Coast Services Vessels Deployed Figure 1: Number of vessels deployed to 6 East Coast ports and 6 West Coast ports from January 1 to May 15, 215 Fewer Vessel Delays for North America East Coast Services Next, we analyzed the vessel arrival schedules for 21 ocean carriers from January 1 to May 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 2,17 unique vessel arrivals at the 12 North America ports from Asia. We further analyzed the data by dividing the services that arrived at the East and West Coasts. We found that the services that arrived at the West Coast ports experienced a higher percentage of vessel arrival delays than the services that arrived at the East Coast ports. A summary of the results is shown in Figure 2. East Coast Services West Coast Services Unique Vessel Arrivals 1, Delayed Vessels (Delay > 12 Hours) 278 (22.8%) 315 (33.1%) Delayed Vessels (Delay > 24 Hours) 134 (11.%) 231 (24.2%) Figure 2: Abstract result of unique vessel arrivals from 21 carriers from January 1 to May 15, 215 Larger Vessels Deployed on North America West Coast Services Next, we reviewed the schedules of vessels that arrived in April and May, to analyze the vessel arrivals by port and vessel size over the two months. Figure 3 shows the details of the container vessel arrival delays at the 12 ports. The results reveal that smaller vessels were deployed for services to the East Coast ports, the most-visited East Coast port was New York-New Jersey, and the most-visited West Coast port was Oakland. 215 CargoSmart Limited. All rights reserved. 2
3 Coast Port Unique Arrivals Average Vessel Arrival Delay (Hours) Largest Visiting Vessel's Capacity (TEUs) Charleston ,5 Halifax ,5 East Coast Jacksonville ,5 New York-New Jersey , Norfolk ,5 Savannah , Long Beach , Los Angeles , West Coast Oakland , Seattle , Tacoma ,5 Vancouver , Figure 3: Vessel arrivals, average arrival delays, and vessel size at 6 East Coast ports and 6 West Coast ports from April 1 to May 15, 215 More Severe Vessel Delays on North America West Coast Services Next, we analyzed the average vessel arrival delays during the past five months by coast and by port. In Figures 4 and 5, the results show that the average delay at the West Coast ports from January to May was more severe than at the East Coast ports, especially from January to March. Tacoma experienced the most vessel arrival delays in January and March, and in February, Los Angeles had the most delays. The port congestion has been easing since April. 1 8 Average Vessel Arrival Delays Asia to North America East and West Coast Ports Average Vessel Arrival Delays in Hours Asia to North America East and West Coast Ports Hours January February March April May East Coast West Coast Figure 4: Vessel arrival delays at East and West Coast ports from January 1 to May 15, Charleston Halifax Jacksonville New York- New Jersey East Coast Norfolk Savannah Long Beach Figure 5: Vessel arrival delays at 6 East Coast ports and 6 West Coast ports from January 1 to May 15, 215 Los Angeles Oakland Seattle West Coast Tacoma Vancouver January February March April May 215 CargoSmart Limited. All rights reserved. 3
4 SCHEDULE RELIABILITY IN THE TRANS-PACIFIC TRADE In March, we analyzed schedule reliability along trans-pacific trade lanes. This month, we revisited schedule reliability in the trans-pacific trade and focused on the US West Coast routes, which experienced severe congestion last year and through February during the International Labor and Warehouse Union and the Pacific Maritime Association contract negotiations. On February 2, they reached a tentative agreement. And, on May 22, the contract was ratified. 2% % Trans-Pacific Trade Monthly Schedule Reliability Performance by Direction January February March April May The carrier performance analysis covers five months, from January 1 to May 16, 215. First, we analyzed the overall schedule reliability among 19 ocean container carriers and over 16, schedules in the trans-pacific trade. As shown in Figure 1, from January 1 to May 16, the general performance improved each month and the reliability improved by 18 percent. 2% % Trans-Pacific Trade Monthly Schedule Reliability 36% 36% 38% 52% 54% January February March April May Figure 1: Monthly schedule reliability in the trans-pacific trade from January 1 to May 16, 215 We further analyzed the schedule reliability by direction. During the studied period, both eastbound and westbound schedule reliability steadily improved. Eastbound schedule reliability from Asia to North America improved more than in the westbound direction. The results are shown in Figure 2. North America-Asia Figure 2: Monthly schedule reliability in the trans-pacific trade by direction from January 1 to May 16, 215 Next, we measured the schedule reliability of four popular trans-pacific routes. We focused on the routes on the US West Coast in the eastbound and westbound directions. Eastbound: I) Hong Kong to Long Beach II) Shanghai to Los Angeles Westbound: III) Long Beach to Hong Kong IV) Los Angeles to Hong Kong Asia-North America Hong Kong to Long Beach: Westbound Performance Stronger than Eastbound The average reliability of the eastbound route, from Hong Kong to Long Beach, was only 25%. It was 16 percentage points lower than the westbound route, from Long Beach to Hong Kong, with 41% reliability. The top three carriers from January to May were Hyundai, K-Line, and PIL. Their reliability was 53%, 5%, and 47% respectively. The results are shown in Figure CargoSmart Limited. All rights reserved. 4
5 Schedule Reliability - Hong Kong to Long Beach Schedule Reliability - Shanghai to Los Angeles 53% 5% 47% 25% 38% 35% 29% 2% 2% % Hyundai K-Line PIL Average % Hyundai Hanjin MOL Average Figure 3: Schedule reliability performance on the Hong Kong to Los Angeles route from January 1 to May 16, 215 Figure 5: Schedule reliability performance on the Shanghai to Los Angeles route from January 1 to May 16, 215 Compared to the westbound direction, the eastbound port pair s improvement was much stronger. As shown in Figure 4, the overall and top three carries schedule reliability remained low during January and February. It began to improve from March, after the contract negotiations settled and the cargo backlog began to clear. As shown in Figure 6, the overall and Hyundai s monthly schedule reliability increased continuously from February. The second and third carries, Hanjin and MOL, improved performance from March. Figure 6: Monthly performance of the Shanghai to Los Angeles route from January 1 to May 16, 215 Figure 4: Monthly performance of the Hong Kong to Long Beach route from January 1 to May 16, 215 Shanghai to Los Angeles: Overall Performance Was 29% On the eastbound port pair from Shanghai to Los Angeles, the overall performance was 29%. Hyundai ranked top with. The second ranked carrier, Hanjin, followed closely with only 2% less, scoring 38% schedule reliability. MOL ranked third with 35%. The results are shown in Figure 5. Long Beach to Hong Kong: Top Three Carriers Had Similar Reliability On the westbound route from Long Beach to Hong Kong, the top three carriers scores were similar. Hyundai was the most reliable carrier with 67% reliability. MOL ranked second with 65%, and then followed by OOCL with 63%, which was only 2% less. The overall performance was 41% in the market. The results are shown in Figure CargoSmart Limited. All rights reserved. 5
6 Schedule Reliability - Long Beach to Hong Kong Schedule Reliability - Los Angeles to Hong Kong 67% 65% 63% 67% 51% 41% 2% 2% % Hyundai MOL OOCL Average Figure 7: Schedule reliability performance on the Long Beach to Hong Kong route from January 1 to May 16, 215 % Evergreen COSCON K-Line Average Figure 9: Schedule reliability performance on the Los Angeles to Hong Kong route from January 1 to May 16, 215 As shown in Figure 8, over the past five months, the top three carriers performance fluctuated. The market average reliability was lowest in February, and then continuously improved each month. As shown in Figure 1, the overall trend of the market average and the top two carriers climbed after February and March. K-Line s performance fluctuated during the studied period. Figure 8: Monthly performance of the Long Beach to Hong Kong route from January 1 to May 16, 215 Figure 1: Monthly performance of the Los Angeles to Hong Kong route from January 1 to May 16, 215 Los Angeles to Hong Kong: Evergreen Performed the Best Along the route from Los Angeles to Hong Kong, the top three carriers were CKHYE alliance carriers. Evergreen performed the best with. The second ranked carrier was COSCON, scoring 67%. The third ranked carrier was K-Line with schedule reliability. The results are shown in Figure CargoSmart Limited. All rights reserved. 6
7 PORT PERFORMANCE AT SOUTH AND SOUTHEAST ASIA PORTS According to Alphaliner, Ho Chi Minh City/Cai Mep, Colombo, and Tanjung Pelepas were the three fastest-growing ports of the top 3 container ports in 214. This month, the Global Vessel Voyage Monitoring Center (GVVMC) reviewed the performance of the three fast-growing ports located in South and Southeast Asia. Hours Average Vessel Arrival Delays March 28 - May 27, 215 The GVVMC analyzed average vessel arrival delays, average berth times, and average arrival delays and berth times by vessel capacity of the South and Southeast Asia ports. The data scope covered 1,654 vessel calls from the top 21 carriers over nine weeks from March 28 through May 27, 215. Mar 28 - Apr 3 Apr 4 - Apr 1 Apr 11 - Apr 17 Apr 18 - Apr 24 Apr 24 - May 1 May 2 - May 8 May 9 - May 15 Colombo Tanjung Pelepas Ho Chi Minh City May 16 - May 22 Figure 1: Average vessel arrival delays at the ports of Colombo, Ho Chi Minh City, and Tanjung Pelepas May 23 - May 27 Colombo Ho Chi Minh City Tanjung Pelepas Colombo Had Shorter Average Vessel Berth Times The GVVMC also reviewed berth time performance at the three ports. As shown in Figure 2, the findings reveal that the ports of Ho Chi Minh City and Tanjung Pelepas experienced small fluctuations in berth times during the analysis period. The Port of Colombo had shorter berth times overall than the ports of Ho Chi Minh City and Tanjung Pelepas. Beginning in mid-may, the berth times at the Port of Colombo began to decrease from 18 hours to 11 hours, while the ports of Ho Chi Minh City and Tanjung Pelepas experienced increasing berth times increased to over 19 hours. Two Southeast Asia Ports Experienced Similar Arrival Delays Average Berth Times March 28 - May 27, 215 The GVVMC analyzed the vessel arrival delays for the three 24 ports, as shown in Figure 1. The average vessel arrival delays 2 significantly fluctuated over the nine weeks. Compared to the ports of Ho Chi Minh City and Tanjung Pelepas, the Port of Colombo in Sri Lanka experienced greater arrival delays throughout the analysis period. Hours Mar 28 - Apr 3 Apr 4 - Apr 1 Apr 11 - Apr 17 Apr 18 - Apr 24 Apr 24 - May 1 May 2 - May 8 May 9 - May 15 May 16 - May 22 May 23 - May 27 Colombo Tanjung Pelepas Ho Chi Minh City Figure 2: Average berth times at the ports of Colombo, Ho Chi Minh City, and Tanjung Pelepas 215 CargoSmart Limited. All rights reserved. 7
8 Best Performance at Colombo for Larger Vessels To further study the performance at the ports, we analyzed the arrival delays and berth time performance of vessels by vessel capacity. Over the analysis period, we found that the average vessel arrival delays of the larger vessels at the ports of Colombo and Tanjung Pelepas were lower than that of smaller size vessels, especially at the Port of Colombo. In addition, the GVVMC found the average berth times increased as the vessel capacity increased. Nevertheless, Colombo performed the best compared to the other two ports. The details are shown in Figure 4. Average Vessel Arrival Delays (by Capacity) Average Berth Times (by Capacity) Hours 9 6 Colombo Tanjung Pelepas Ho Chi Minh City Hours 15 1 Colombo Tanjung Pelepas Ho Chi Minh City 3 5 <4, 4, - 6,999 7, - 9,999 1, <4, 4, - 6,999 7, - 9,999 1, TEUs TEUs Figure 3: Average vessel arrival delays by vessel capacity from March 28 May 27, 215 Figure 4: Average berth times by vessel capacity from March 28 May 27, 215 Average Arrival Delay (Hours) Average Berth Time (Hours) Overall TEUs >1, Overall TEUs >1, Colombo Ho Chi Minh City Tanjung Pelepas Figure 5: Performance comparison between all-size vessels and mega vessels We also compared the performance of vessels with a capacity of over 1, TEUs to the overall level in the analysis period, as shown in Figure 5. We found the performance of vessels with a capacity over 1, TEUs to be better than the overall level in terms of both arrival delays and berth times at the Port of Colombo. 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. 215 CargoSmart Limited. All rights reserved. 8
9 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 May 1 May 5 May 7 May 7 May 11 May 11 May 14 May 15 May 15 May 18 May 29 May 13 May 2 HANJIN GREEN EARTH caught fire on board near Port Said, Egypt Storm broke the moorings of container ships AL QIBLA, KUALA LUMPUR EXPRESS, and HANJIN GOLD at port of Hamburg, Germany MAERSK TIGRIS released after detention of 1 days, Iran SUI DONG FANG 332 sank in collision with freighter, Hong Kong MOL PRECISION collided with berth, Vancouver, Canada E.R. TALLINN collided with the wall of a lock of the Kiel Canal in Brunsbuttel, Germany A crane fell onto MAERSK KARACHI at the Port of Bremerhaven, Germany A container from PIONEER BAY fell onto the pier at Skutivka Port in Bergen, Norway HANJIN MIAMI s captain went missing off the Southwest Coast of India A tank container was damaged on VANCOUVER EXPRESS in Hamburg Port, Germany CONMAR ISLAND collided with buoy in Norrkoeping, Sweden Dockworkers strike at the Port of Callao, Peru Strike at the Port of Mongla, Bangladesh Dockworker Strike: Port of Callao, Peru On May 13, over six hundred dockworkers started an indefinite strike at the APM terminals in Callao, Peru. The strike was a result of a breakdown in the contract negotiations between the union and the terminal authorities, on the subjects of salaries, union workers job ownership, and the implementation of an electronic roster system at the terminal. The union sought support from the government, but failed. The Port of Callao recently suffered an industrial action on April 14. The May strike was considered a continuation of the union s dissatisfaction. According to a terminal spokesman, the strike only occurred at the general cargo facility in Callao and had not affected the container operations. The terminals claimed that labor action caused minimal impact to port operations, while the union stressed that their actions imposed a negative effect on container cargo handling. However, when we examined the berth times of container vessels in port, we did see a possible impact from the strike. Two points of prolonged average berth times were recorded on May 14 right after the strike started and on May 25. Beyond these two days, the container operations at the port seemed to be normal. Callao Average Berth Times (Hours) 4 The vessel arrivals and average berth times at the Port of Callao from May 1 to May 31 are as follows: Date Range: May 1 31, 215 Vessel Arrivals: 118 Longest Berth Time: 89.6 Hours Average Berth Time: 2.8 Hours May 2-May 3-May 4-May 5-May 6-May 7-May 8-May 9-May 1-May 11-May 12-May 13-May 14-May 15-May 16-May 17-May 18-May 19-May 2-May 21-May 22-May 23-May 24-May 25-May 26-May 27-May 28-May 29-May 3-May 31-May The strike lasted for more than three weeks. On June 5, the union and terminals reached a contract agreement with provisions that included improved benefits and modifications to a system for scheduling shifts. 215 CargoSmart Limited. All rights reserved. 9
10 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. 1
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