Asia Pacific Market Update | Vol. 5

The Latest Market Update

Vessel delays are expected to continue to cause capacity shortages. Sea-Intelligence Maritime Analysis says “the effect of vessel delays continues to worsen. Globally, we are now at a point where 12.5% of capacity is effectively removed.” Hamburg Süd has lost some vessel positions due to extended delays. Despite all vessels being deployed, effective capacity is severely limited by port congestion. Currently more than 10% of the global container fleet is waiting for berths to become available. To reduce the impact from the current disruption, we are deploying extra vessels where possible, both to cover some of the lost vessel positions and meet demand but also to speed up the flow of empty containers back to Asia. We continue to in-fleet extra containers and invest in new containers.

Vietnam lifts some COVID restrictions. The Vietnamese government lifted some COVID-19-related restrictions on October 1st including the need for employers in the worst affected provinces to provide accommodation for employees. This requirement will be assessed at a provincial level on a case-by-case basis. Truck drivers crossing different regions are still required to show a negative PCR test. We are monitoring the situation and we expect disruption to manufacturing and logistics to continue primarily as testing and vaccinating workers is taking time. We have seen a significant increase in volumes through North Vietnam as customers shifted production from the South.

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