What's to follow now the Suez Canal blockage is cleared?
The grounded 20,388 TEU Ever Given was epically dislodged earlier Monday freeing the $200 billion Indian export/import route to/from North America, South America, and Europe.
India's Commerce ministry officials held a session with the Container Shipping Lines Association calling for greater coordinated efforts to prioritize cargo flow and prevent vessels from bunching together at the busier ports of Jawaharlal Nehru Port Trust, Mundhra, and Hazira once the Suez backlog begins to clear. Officials also advised carriers to consider rerouting around the Cape of Good Hope for now and offer price stability to cargo owners amid the capacity challengers they already face. Mumbai-industry expert fears there will be more capacity pressure with anticipated delays of imports into India from China and other Far East markets that will add on to the container shortage in the country.
Now that halted ships are moving once again, transshipment buildup at ports is inevitable. The impact may be evident by May-June as we wait and see how shipping lines will react to this challenge. For many clients, there are sense of concerns about shipment delays and rate hikes. We’ll see with April sailings.
CNN Situation Room video: https://www.cnn.com/videos/world/2021/03/29/suez-c...
Resource:
Matthews, Bency. “Suez Snarl Threatens Capacity Chaos, Transshipment Buildup at Indian Ports.” International-Ports: Suez Snarl Threatens Capacity Chaos, Transshipment Buildup at Indian Ports, 29 Mar. 2021, 11:45AM EDT, www.joc.com/port-news/international-ports/suez-snarl-threatens-capacity-chaos-transshipment-buildup-indian-ports_20210329.html.