affecting a lot of vessels. There’s a lot of delays, and this is pushing up panamax (container) rates as fewer ships are available for new orders,” a leading Singapore-based broker said.
A Shanghai index for US West Coast (USWC) freight rates rose 23 points last week to 2,265 and brokers said quotes had risen a further five points on Monday.
The dispute is also affecting volumes. Singapore-listed Neptune Orient Lines’ container shipping unit reported an 8 percent decline in the fourth quarter, partly due to fewer trans-pacific sailings as a result of the congestion.
Roberto Giannetta, secretary of the Hong Kong Liner Shipping Association, said the effects were being felt across the industry, as shippers looked for ways round the delays.
“All shipping lines are affected, and all shipping lines are making alternative arrangements one way or another, by ... reallocating assets to the trans-pacific or redirecting cargo via the East Coast.”
Even if the dispute is resolved, there could be long-term consequences for the ports and the communities that depend on them.
“Trust in West Coast ports is at an all-time low, and the perception of supply chain risk is at an all-time high,” said Peter Tirschwell, chief maritime analyst at the JOC Group, a supplier of US seaborne trade data.
“We are entering another period of fundamental supply chain re-evaluation that is already leading some shippers to permanently abandon the West Coast.”
For air freighters, however, the crisis is an opportunity.
Hong Kong carrier Cathay Pacific reported on Monday combined cargo and mail traffic figures for Cathay Pacific and Dragonair rose 12.5 percent in January, outpacing a 2.7 percent increase in passenger numbers, thanks to increased North American traffic.
“We saw a pick-up in demand as January progressed, and by the end of the month we were operating close to a full freighter schedule,” said its cargo sales and marketing manager Mark Sutch.