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Newsletter Issue16 AW Copy Issue 16 February 2014 Innovating Shipment Success Through Intelligent Visibility WELCOME to the February issue of CargoSmart’s Innovating, a monthly, complimentary e-newsletter for the ocean shipping industry. Innovating is designed to ABOUT INNOVATING provide insights about cargo delays around the globe CargoSmart is creating a whole that you may find useful to improve your daily operations and strategic planning. new visibility model for ocean January 31, 2014 marked the beginning of the Chinese New Year. This month, we shippers and logistics service feature three articles analyzing port, vessel, and schedule performance in China. providers to monitor their shipments. The rules of the Last year, we reviewed the performance of four ports in China to see if the game are changing in the Chinese New Year had an effect. We found that there was an increase in delays in global shipping and logistics the weeks leading up to the holiday. This month, we took another look at the industry. CargoSmart’s effect the holiday had on delays. We discovered the same pattern leading up to innovative methods oer the holiday this year, with a slight increase in delays. insights for the industry to Our second article on China compares the performance of the ports in the north manage their shipments that and south of China in December and January. The four ports we analyzed varied have exceptions. CargoSmart’s in size, location, vessel arrival delays, and berth times. We found that berth times monthly, complimentary correlated with port size, while arrival delays varied among the ports. Innovating newsletter delivers refreshing insights for you to Our third article on China provides transit time performance along the make intelligent decisions for Europe-China trade lanes. We measured the transit time deviations, percentage of on-time vessels, and top performing port-pairs for nearly 700 vessels. your supply chain. Among the vessel and port incidents that caused delays around the world in January, we analyzed the effect that the nationwide strikes had on vessels in Brazil. Berth time increased during the strike on January 24, indicating that the CONTENTS strike may have had an effect on port performance. • Welcome 1 We invite you to share your delay experiences with us on our visibility blog at • Chinese New Year Effect 2 visibility.cargosmart.com/blog or by email at [email protected]. • North and South China Ports 3 Graham Collins • EU-China Schedule Reliability 5 Executive Editor • World Incidents 6 • Contact 7 CargoSmart Innovating © 2014 CargoSmart Limited. All rights reserved. 1 Innovating CHINESE NEW YEAR 2014, YEAR OF THE HORSE: IMPACT ON THE GLOBAL SUPPLY CHAIN Last year, we analyzed the impact of the Chinese New Year on were delayed more than 12 hours, while 30% of the vessel four China port facilities. We found that delays increased slightly arrivals were delayed over 24 hours. A summary of the results in the weeks leading up to the holiday. This year we analyzed the are shown in Figure 1. influence the holiday had on vessel delays to see if there was a similar effect. Total Unique Vessel Arrivals 4,935 Delayed Vessels (Delay > 12 Hours) 2,418 (49%) 30% of Vessels Delayed Over One Day Delayed Vessels (Delay > 24 Hours) 1,458 (30%) Similar to last year, we reviewed the performance of four Figure 1: Abstract result of unique vessel arrivals covering four China popular ports in China — Ningbo, Shanghai, Shekou, and ports and 21 carriers from December 15, 2013 to January 24, 2014 Yantian — before the Chinese New Year. From December 15, 2013 to January 24, 2014, we monitored 4,935 vessel arrivals at Figure 2 shows the details for Ningbo, Shanghai, Shekou, and these four ports. By analyzing the data and comparing the Yantian ports. The results show that the busiest port, Shanghai, actual time of arrivals with the estimated time of arrivals of the had the most severe delays with an average arrival delay of up coastal schedules provided by the carriers, we found that to 35 hours. Reasons for the delays included port congestion, before the Chinese New Year, nearly 50% of the vessel arrivals terminal productivity, and berth availability. Ningbo Shanghai Shekou Yantian Unique Vessel Arrivals 1,185 2,006 1,196 548 Average Delay (Hours) 27.55 35.01 20.23 18.94 Percentage of Vessel Delays (> 1 Day) 28.86% 42.57% 21.49% 23.91% Figure 2: Four China ports’ performance covering 21 carriers from December 15, 2013 to January 24, 2014 The weekly port performance chart in Figure 3 shows that More Vessels Delayed Over One Day in 2014 starting from the middle of December, the vessel delay time than 2013 increased. Also, the total number of vessel arrivals at these Similar to 2013, we found a slight increase in vessel arrival ports increased as the holiday approached. delays in the weeks leading up to the Chinese New Year in 2014. When we compared the percentage of vessel arrival delays over a day late, we found that most of the ports had a Weekly Performance of Ningbo, Shanghai, Shekou, and Yantian Ports higher rate in 2014 than 2013 except for Shekou. Among the 1000 35 four ports, Shanghai had the highest increase from 30% in 2013 900 30 A s v l 800 er a to 43% in 2014. The comparison is shown in Figure 4. v a i 700 25 g rr e A l 600 V e 20 e ss ss 500 e e V l 15 400 D e Ningbo Shanghai Shekou Yantian l 300 10 ay ( 200 H o 5 u r 100 s 2013 25% 30% 25% 20% ) 0 0 12/15/2013 - 12/22/2013 - 12/29/2013 - 1/5/2014 - 1/12/2014 - 1/19/2014 - 2014 29% 43% 22% 24% 12/21/2013 12/28/2013 1/4/2014 1/11/2014 1/18/2014 1/25/2014 Figure 4: Comparison of percentage of vessel delays over one day Figure 3: Weekly performance of Ningbo, Shekou, Shanghai, between 2013 and 2014 before the Chinese New Year and Yantian ports from December 15, 2013 to January 24, 2014 CargoSmart Innovating © 2014 CargoSmart Limited. All rights reserved. 2 Innovating PORT PERFORMANCE IN NORTH AND SOUTH CHINA According to port statistics of container throughput, container ports in northern China are experiencing a higher rate of growth than those in southern China. If this trend continues, there may be more pressure to maintain port performance with a heavier workload at the northern China ports. In this issue, we analyzed the performance of ports located in northern and southern China. CargoSmart’s Global Vessel Voyage Monitoring Center (GVVMC) reviewed the performance of the ports of Tianjin and Dalian in North China and the ports of Xiamen and Da Chan Bay in South China. The GVVMC analyzed average vessel arrival delays and berth times to measure performance from December 1, 2013 through January 28, 2014. North China: Port of Tianjin The Port of Tianjin is the largest port in northern China and is the main maritime gateway to Beijing. It is divided into two parts, Tianjin Port and Tianjin Xingang (also known as Tianjin New Port). The port is the world's tenth largest port in container throughput. The GVVMC detected 436 vessel arrivals and compared the actual arrival times with the estimated arrival times of carriers’ schedules. The Port of Tianjin had an average arrival delay of 11.5 hours as Port of Tianjin shown in Figure 1, which was the highest among all ports. The average berth time was 19.2 hours as shown in Figure 2. During the study, the GVVMC observed that since the Port of Tianjin is the largest port among the four ports, its handling of larger vessels may be the reason for the longer berth times. Port of Tianjin Vessel Count Average Arrival Delay (Hours) December 2013 240 12.4 January 2014 196 10.6 Grand Total 436 11.5 Figure 1: Average arrival delay of vessels at the Port of Tianjin from December 2013 to January 2014 Tianjin Dalian Xiamen Da Chan Bay Average Berth Time (Hours) 19.2 13.8 11.8 8.3 Figure 2: Average berth time of vessels at four China ports from December 2013 to January 2014 North China: Port of Dalian Similar to the Port of Tianjin, the Port of Dalian is located in northern China and is the most northern ice-free port in China. It is a major trade gateway to the Pacific and an important container transshipment hub. It has established trading and shipping links with more than 120 ports in over 40 countries and regions of the world. Port of Dalian From the data shown in Figure 3, the Port of Dalian had an average arrival delay of 10.6 hours, which was ranked second among the four ports. The average berth time in the sample period was 13.8 hours, which was almost six hours shorter than the Port of Tianjin. CargoSmart Innovating © 2014 CargoSmart Limited. All rights reserved. 3 Innovating Port of Dalian Vessel Count Average Arrival Delay (Hours) December 2013 134 10.8 January 2014 72 10.4 Grand Total 206 10.6 Figure 3: Average arrival delay of vessels at Port of Dalian from December 2013 to January 2014 South China: Port of Xiamen The Port of Xiamen is a well-developed first-class port in southern China. It has nine container terminals and offers 74 berths. As a major port in southern China, the Port of Xiamen performed slightly better than the Port of Tianjin in northern China. As shown in Figure 4, the average vessel arrival delay was 11.1 hours and the average berth time was 11.8 hours.
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