22 Dec 2020 | 22:33 UTC — Houston

Hapag-Lloyd to slide voyage schedule between Asia-South America as terminal congestion mounts

Highlights

Schedule slide lengthens transit time

Terminal delays remain key factor

Houston — German container carrier Hapag-Lloyd will apply a schedule sliding to its AS2 service between Asia and South America, adding seven days to the westbound backhaul to provide a buffer against port congestion and other terminal slowdowns.

This comes in response to the company facing "challenging operational conditions in Asia due to severe congestions," Hapag-Lloyd said in a Dec. 22 statement.

This schedule sliding will add another seven days to the westbound leg of the AS2 service between Asia and South America. By lengthening the transit time on this route, the company will be able to better "cope with the delays, minimizing port cancellation(s) and disruptions."

Ongoing Congestion

Port congestion has been a major consideration for many market participants as delays and container shortages in key Asian exporting hubs continue to hamper fluid trading activity.

"I expect the situation for Hapag will be close to normal in six to eight weeks from" Dec. 22, Hapag-Lloyd CEO Rolf Habben Jansen said Dec. 9 on a market update. "I'm not saying it will be back to normal by then, but we will make big steps toward normalcy."

Platts Container Rate 13 — North Asia to West Coast North America — remained steady at $3,900/FEU Dec. 22.


Editor:

Register for free to continue reading

Gain access to exclusive research, events and more

Already have an account?Log in here