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Increasing rollovers indicate growing supply chain problems

RISING rollover rates indicate that maritime supply chain woes are worsening, with little indication that carriers are addressing the industry's serious capacity issues, according to Chicago-based project44, a provider of advanced visibility for shippers

12 May 2021 - 19:00
RISING rollover rates indicate that maritime supply chain woes are worsening, with little indication that carriers are addressing the industry's serious capacity issues, according to Chicago-based project44, a provider of advanced visibility for shippers.

Data from ports worldwide collected by project44 shows that the percentage of containers missing their scheduled sailing is still rising, with some major carriers and ports posting rollover rates over 50 per cent for the month of April, reports the American Journal of Transportation.



While the average rollover rate for April across all surveyed ports and carriers was 39 per cent, individual ports that account for a significant portion of maritime cargo posted even worse results.



Data from Port Klang (Malaysia), Rotterdam, and Athens all showed endemic congestion, posting rollover rates of 64 per cent, 54 per cent, and 59 per cent respectively.



On the carrier side, Hapag-Lloyd, CMA CGM, and ONE all showed worsening performance in April, posting rollover rates of 51 per cent, 56 per cent, and 53 per cent respectively. Other global ports and carriers reported similar numbers showing that abysmal performance now seems to be industrywide.



With shippers entering their second year of pandemic-induced volatility, these numbers are a sobering reminder that volatility and under capacity are the new normal, said the report.



Furthermore, rates are almost universally trending upwards, and well above the levels posted during April 2020.



Other ports where rollover rates are still rising include Kao-Hsiung, with a 53 per cent rate, and Dubai's Jebel Ali, which reported a 48 per cent rate for April. Other carriers that posted worsening rollover rates include Evergreen, at 47 per cent and ANL, at 57 per cent.



'Carriers have been watching their rollover rates increase for over a year, and have so far failed to mitigate the situation,' said Josh Brazil, vice president of Ocean Markets.



'Shippers need to accept this as the new reality. They are going to have to start making structural adjustments to their supply chains and enhance their visibility if they want to keep shelves stocked and factories running,' Mr Brazil said.


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