SHIPPERS have found alternative means of getting goods to market as available container shipping services continue to max out and service patterns change to serve congested routes, reports the American Journal of Transportation.
'The Container Shipping Market Review shows the extent to which shippers sought out alternatives, as shipping lines priced themselves out of reach and narrowed the cost difference with offerings from other modes. A measurable share is also accounted for by vessels chartered by shippers for their own goods, or by other non-liner shipping carriers,' said Global Shippers Forum (GSF) director James Hookham.
'The Great Shipping Crisis of 2021 has taken many casualties as shippers trapped between record rates and very poor service levels struggled to fulfill delivery deadlines for imports destined for the holiday sales season. Shippers will be watching anxiously to see how quickly these conditions abate in 2022, and whether the use of these alternative services will continue to grow,' said Mr Hookham.
'Shipping lines are attributing the cause of the Crisis to severe congestion in ports and logistics bottlenecks inland. But this means that, as these conditions ease post-peak season and output dips in Chinese New Year, container shipping capacity levels should increase to match shippers' demand more closely. This recovery in capacity could accelerate if consumers switch spending to services rather than goods, and interest rate hikes and higher energy costs take their toll on discretionary spending.' said Mr Hookham.
New analysis in the Review reveals the extent to which shipping lines have adjusted global service patterns with many more shuttle services being introduced.
Said MDS Transmodal chairman Mike Garratt: 'Our review this quarter has examined how alliance members have expanded their role in developing consortia and therefore market shares and the way in which they have addressed operational challenges in modifying route structures. This reduction in services linking multiple world regions has been accompanied by a decline in the number of countries that are directly connected.'
'Given the dramatic growth in freight rates and declining service performance it is not surprising to see trade growing more quickly than container volumes on the established lines, as shippers have found other transport solutions; starting own shipping routes, using long-haul rail or air or semi-bulk traffics switching to conventional methods,' said Mr Garratt.
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'The Container Shipping Market Review shows the extent to which shippers sought out alternatives, as shipping lines priced themselves out of reach and narrowed the cost difference with offerings from other modes. A measurable share is also accounted for by vessels chartered by shippers for their own goods, or by other non-liner shipping carriers,' said Global Shippers Forum (GSF) director James Hookham.
'The Great Shipping Crisis of 2021 has taken many casualties as shippers trapped between record rates and very poor service levels struggled to fulfill delivery deadlines for imports destined for the holiday sales season. Shippers will be watching anxiously to see how quickly these conditions abate in 2022, and whether the use of these alternative services will continue to grow,' said Mr Hookham.
'Shipping lines are attributing the cause of the Crisis to severe congestion in ports and logistics bottlenecks inland. But this means that, as these conditions ease post-peak season and output dips in Chinese New Year, container shipping capacity levels should increase to match shippers' demand more closely. This recovery in capacity could accelerate if consumers switch spending to services rather than goods, and interest rate hikes and higher energy costs take their toll on discretionary spending.' said Mr Hookham.
New analysis in the Review reveals the extent to which shipping lines have adjusted global service patterns with many more shuttle services being introduced.
Said MDS Transmodal chairman Mike Garratt: 'Our review this quarter has examined how alliance members have expanded their role in developing consortia and therefore market shares and the way in which they have addressed operational challenges in modifying route structures. This reduction in services linking multiple world regions has been accompanied by a decline in the number of countries that are directly connected.'
'Given the dramatic growth in freight rates and declining service performance it is not surprising to see trade growing more quickly than container volumes on the established lines, as shippers have found other transport solutions; starting own shipping routes, using long-haul rail or air or semi-bulk traffics switching to conventional methods,' said Mr Garratt.
SeaNews Turkey
