In just a few weeks, operating conditions at the Port of Vancouver, Canada’s main port, have gone from relatively unstable to severe congestion, raising the alarm that retailers may miss out on the busy shopping season.
However, not only the Port of Vancouver, but also Busan New Port is experiencing congestion. Friends who have related business, please pay attention to the delivery time!
The Port of Vancouver is in serious congestion
This summer, Vancouver Frey The Zeta Port Authority (VFPA) announced record performance in the first half of 2021. Overall throughput increased by 7% compared with the first half of 2020, and the number of containers increased by 24% to 1.9 million TEUs. There were only minor disruptions to the movement of cargo, raising hopes that the port could meet the needs of shippers looking to avoid congestion at U.S. West Coast ports.
But the situation took a serious turn for the worse from mid-August to late September, with a surge in imports before the holidays. Warehouses at the Port of Vancouver were filled with containers and boxes on the docks. Piles piled up.
At the same time, the number of container trailers is also in short supply, and the situation has worsened. Shipping companies have restricted the import of empty containers after the number of empty containers leaving the port surged 92% year-on-year in August. As a result, many containers sit on trailers with nowhere to go and pile up on docks.
As terminal operators struggle to cope with high import volumes and empty containers, trucks are not fully booked, slowing the flow of containers at the port.
It is understood that in the week ended October 2, the proportion of truck shipments completed within 90 minutes fell at three of the port’s four container facilities. But overall, truck turnaround times have not worsened significantly so far, rising from an average of 38.75 minutes in August to an average of 39.5 minutes in September.
However, trucking has become another challenge for ports as available capacity shrinks dramatically. The Port Transport Association (PTA), which represents the trucking industry, has been warning for some time that a shortage of truck drivers could hamper port operations amid a surge in traffic.
Delays in arriving ships did not help the situation, and the on-time rate dropped to 16%.
Inland shippers are also facing further troubles. Increased traffic has driven transshipment activity, leading to a shortage of 53-foot containers. Intermodal volumes at Canadian rail operator Canadian Pacific rose 17 per cent in the seven weeks to mid-September. For ports, shipping lines are trying to limit the entry of containers into the interior, which has also led to a shortage of containers to meet the growing intermodal demand.
According to a report, the fee CP charges customers to ensure that 53-foot containers are available for transportation has surged, from US$300 to US$1,500. Dollar.
According to the PTA, things have never been worse in Vancouver. The company warned that Canada’s supply chain would be at risk if authorities did not intervene immediately. The port itself, however, leaves little room for de-escalation.
It is reported that the expansion of the Vanterm container facility is underway but will not be completed in the next few weeks. The project will add 600,000 teu of capacity to the port, but this will not be enough to meet expected demand.
The Port Authority is seeking approval to build a second container facility at Roberts Bank near Deltaport, which would add 2.4 million TEU capacity, a 50% increase over existing capacity. %. However, if the project goes ahead, it won’t be completed until the first half of 2030, according to the VFPA.
VFPA President and CEO Robin Silvester warned last month that despite the boost from the Vanterm expansion, the port would still face challenges between 2025 and 2028. Jams and congestion.
The container stacking rate is nearly 100%, and congestion at Busan New Port is increasing
As port congestion spreads along the U.S. West Coast and Busan Newport becomes increasingly congested, South Korea’s main container port lacks storage space for export containers, leading port authorities to build temporary structures in Busan Newport’s western container port hinterland. storehouse.
Outbound containers are usually placed in the port yard to wait for loading. However, growing congestion at U.S. West Coast ports has disrupted shipping plans, and a large volume of transshipment cargo from China at Busan New Port means that outbound containers from the port continue to flow into the United States.
Realizing that supply chain disruptions will continue for some time, the Busan Marine Fisheries Bureau and the Busan Port Authority are considering developing a 40,000-square-meter permanent site in the Ungdong hinterland of Busan New Port Container storage facilities.
On October 10, the Busan Marine Fisheries Bureau and the Busan Port Authority announced that the 40,000-year-old Busan New Port West Container Port will The square meter area is designated as a temporary storage area for export containers.
The Busan New Port Port Authority stated that the current container stacking rate at all terminals in Busan New Port is close to 100%, and the time allowed for outbound containers to enter the port is also gradually shortening.short.
Until last year, outbound containers were allowed to enter the yard up to 10 days before the ship arrived. However, as these containers continued to pile up, terminal operators began gradually shortening the cut-off times at the beginning of this year.
HMM company stated that due to the pile-up of containers, all terminals of Busan New Port are currently receiving outbound containers filled with goods three days before the arrival of the cargo ship.
HMM holds a 50% stake in HMM PSA New-port Terminal, one of Busan’s new port terminals. </p
