Ocean Import Update 3

Ocean Import Update

Please take note of current market conditions affecting service, costs, and schedule integrity as we move into the spring and summer of 2021.

The demand in capacity from Asia continues to be extremely strong. The amount of blank sailing in April is very high, and this may continue in the foreseeable future. Many vessels are having port omissions to try to bring their schedules closure to proforma.

The recent impact of the Suez Canal incident is also causing a delay on global schedules and starting to impact equipment shortages that have already been strained.

We expect to continue to see:

Port Congestion: Significant delays in loading containers to rail and trucks have increased dwell times. We are also seeing vessel berthing dates being delayed up to two weeks as a result of port congestion. The terminals are advising carriers to slow steam as they do not have the capacity to accept additional loaders.

Ad-Hoc Schedule Changes: In efforts to re-position equipment, offset space requirements from overburdened ports and increase overall capacity, carriers have omitted and/or added loaders and vessels to certain service strings. As a result, we are seeing many delays with departures from Trans-Pacific ports.

Blank Sailings: Carriers continue to work to get their schedules back to normal, especially in the critical upcoming peak season.

Schedule Integrity: All the above factors have contributed to greater volatility and disruption to on-time performance. Customers must build in longer lead times and book earlier than previously required in order to manage fulfillment deadlines.

As a customer of OEC Group, please be advised that we are doing all possible to mitigate disruption to our customers’ supply chains. As we move into the summer, we will continue to proactively manage and communicate with our customers as this dynamic shipping environment continues to evolve and unfold.