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Issue 5 2021 - Freight Business Journal


European container shipping days away from paralysis, warn barge fi rms


The problems with deepsea shipping as a result of Covid and the Ever Given Suez blockage are also aff ecting inland transportation in Europe, warn inland waterway operators. Indeed, say Maira van Helvoirt and Frank Reijerse of the Dutch Association of Rhine and Inland Shipping (Centraal Bureau voor de Rijn- en Binnenvaart) the system is in danger of becoming totally paralysed. Speaking in early July, Maira van


Helvoirt said that measures taken by deepsea terminals, in particular restricting the acceptance of deepsea export containers out of Europe was resulting in “packed” inland container terminals in the Netherlands, Belgium, Germany, France and Switzerland. She warned: “The current


situation is such that we fear that the whole system is slowly


grinding to a complete stop: both deepsea and inland container terminals are full, their stacks are so totally packed that no container can move.” The problems currently


seen were among the worst in Europe for the past ten years or more, she said. While the inland water terminal network has in the past proved a useful ‘relief valve’ for deepsea shipping, the inland terminals themselves are becoming


seriously congested.


Indeed, at the time of writing in early July, the network was only days away from complete paralysis, with inland container terminals on the verge of running out of space and being unable to accept export containers themselves. The main root cause of the current situation is the ongoing


unreliability in the deepsea schedules, resulting in delays for already booked and produced cargo that is stacked and waiting for export at the inland terminals. Measures taken by the deepsea terminal operators intended to control their yard-density (such as cargo opening times or a temporary ban on deliveries of empty equipment) are resulting in daily changes to the situation and non-acceptance of containers stacked in the hinterland. Her colleague, policy advisor


for containers and logistics Frank Reijerse said that lack of communication in the supply chain is one of the reasons that barge-operators


are frequently


confronted with containers that are rejected by the deep sea terminal operators, oſt en even aſt er they had been loaded on the


inland vessel and on their way to the seaport. Unfortunately, the fact that the sea vessels are persistently out of schedule is something that cannot be changed within a few days. But he stresses that the importance of disseminating any information on delays and impact on bookings properly through the chain, allowing parties to act in a timely manner. In reality, the large number


of parties involved in the chain meant that warnings that a deepsea vessel is delayed and boxes would not be accepted oſt en did not get through to the right people, despite the sophisticated IT systems now deployed in the industry. He said: “It’s very frustrating


when a container is rejected when the barge has already sailed from an inland terminal like Basle. Dealing with this sort of situation is turning into a full-time job for planners.” Alternative options such as


diverting to other terminals along the route involves at the very least extra handling costs and these locations are also struggling with increasing yard density. In the worst case scenario, the cargo is forced to return back to the inland terminal. The acute shortage of


boxes on certain trade lanes has prompted some deepsea operators to place huge orders with Chinese manufacturers for new containers in an attempt to plug the gap. However, this was dealing with the symptom rather than the underlying cause, said Maira van Helvoirt. She said that, instead: “A large responsibility lies with the shipping lines, to make proper agreements with deepsea terminals in respect to a certain handling capacity and quality for the hinterland-traffi c.” However, all parties in the global


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supply chain needed to accept responsibility for the current situation and need to understand their position and infl uence in the system, including shippers and forwarders who over the years had encouraged extreme price competition in liner shipping and led to the current generation of 20,000teu ‘mega ships’. The latter were an attempt by the shipping lines to bring down the average cost per container moved but the large number of boxes needing to be loaded or discharged oſt en put inland transport services under extreme pressure. Meanwhile, the Association


was raising the issue with port operators, the Dutch ministry of transport and the European


Commission. However, Maira van Helvoirt was not optimistic that solutions to the many problems would be found soon, and there was a danger of lines having to cancel entire voyage


///NEWS


cycles. Nor was there much hope that manufacturing holidays in Europe providing much respite, as this was also the period when terminal workers also took time off .


News Roundup


UK-based start-up airline Hans Airways says it will start non-stop flights from the UK to India in the autumn and has revealed the members of its board who will spearhead efforts to gain an Air Operator Certificate later this year. The carrier says it will offer cargo capacity on its flights and will appoint a general sales agent shortly. The carrier said it was planning to use two A330-200s to launch operations. Weekly frequencies and destinations are not being confirmed at this stage.


A new cargo airline, ZFG Air, was due to launch twice-weekly flights from Newcastle International Airport to Dubai and Hong Kong from late June. According to press reports, the carrier will initially operate a ‘preighter’ A330-200 temporarily-converted passenger aircraft but will eventually fly three Airbus aircraft in full freighter configuration. Chief executive of the new venture is reported to be John Quinney.


IAG Cargo has appointed David Shepherd as managing director. He joins from group airline Aer Lingus on 1 August, but has previously held a number of roles at IAG Cargo including commercial director and director of digital ventures. Mr Shepherd will report into David Podolsky, who will continue in his role as chief executive of the business following the departure in April of his predecessor Lynne Embleton to become chief executive of the Aer Lingus passenger airline.


US-headquartered general sales agent Aviacargo moved 55 tonnes of airfreight on a series of European Cargo Airbus A340-600 freighters between Bournemouth and New York JFK during late May and early June. Capacity constraints and the short-notice withdrawal of regular flights had led to an increase in demand.


Lufthansa’s high-speed logistics arm time:matters and its partner Businesswings is


offering more capacity between


Germany and the UK and Ireland to counter bottlenecks. Time:matters will fly to Birmingham and Dublin from Frankfurt am Main on Mondays to Fridays, offering check-in and departure times after 8pm at Frankfurt. In the opposite direction, flights from Birmingham and Dublin reach Frankfurt early in the morning before 7am to ensure optimal synchronization with the intercontinental flight network.


Cargo airline Volga-Dnepr Group has signed an agreement with


the regional government to develop Krasnoyarsk


International Airport as a logistics hub. It covers the opening of an international postal centre as well as a cargo customs office and mail customs checkpoint.


Šiauliai International Airport in north western Lithuania is close to completing a €9.5 million modernisation project including a widened runway that will allow it to handle the largest transatlantic aircraft such as the Boeing 747 or Airbus 330 - the longest in the Baltics, at 3.5km. The airport hopes to expands its aircraft maintenance and repair business, as well as cargo and is promising ‘competitive prices’.


Lufthansa Cargo will take delivery of its 15th Boeing 777F freighter by the end of this year. The twin-engine aircraft has a standard payload capacity of 103 tonnes with a range of more than 9,000 kilometres. It is described as the most efficient freighter in its class and significantly more silent than previously operated three- or four-engine models.


Air


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