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Maersk warns of risks of missing Christmas rush

Maersk, the world’s largest containerline, has given customers a snapshot of how it sees the year playing out with plenty more disruption on the cards for global supply chains.

In a note to clients in Asia-Pacific yesterday, Maersk stated China’s imminent October Golden Week, Christmas and Chinese New Year will bolster strong demand for container shipping for the last quarter of 2021. Port congestion, especially in the US and Europe, and service delays are expected to create headwinds for service schedules, Maersk warned.

“Extra loaders and ad hoc port omissions will be implemented to help improve reliability,” the Danish liner stated.

Looking at the global economy, Maersk pointed out that inventory levels in Europe and the US remain at their lowest levels on record, leading to stock outs on some products.

We advise customers to plan their supply chains well ahead, particularly for the upcoming holiday rush


“This means even once retail demand declines, we will see cargo volumes continue to remain strong as inventory levels need to be rebuilt,” Maersk explained going on to project global container demand growth will grow 6% to 8% in 2021.

Maersk also provided clients with an idea of container availabity across Asia-Pacific with China, Indonesia and Vietnam highlighted as struggling the most (see chart below).

Maersk has tripled the number of dry freight containers in its fleet during the last few months. However, In-fleeting of new containers alone is no longer sufficient to meet overall demand, it said.

The carrier said it expects strong export demand from Asia to continue for the rest of the year particularly into the US and Europe.

To improve schedule reliability, Maersk has decided to adjust vessel voyage numbers on Asia-North Europe services to match the corresponding actual weeks of departure. Maersk will rationalise some of its service coverages to reduce the number of port calls to improve reliability.

“We advise customers to plan their supply chains well ahead, particularly for the upcoming holiday rush,” Maersk stressed yesterday, echoing many similar comments made by port bosses and retail associations over the past month.

Maersk expects Q4 to be stronger for Asia imports with network utilisation remaining above 95%.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

Comments

  1. A Global Christmas Carol by the All Clear 2021

    Hey, hey, hey children!
    Come sit by me.
    I’ll tell a story ’bout your bare Christmas tree.
    You can thank Walmart for your misery.
    Cuz Santa’s sleigh is stuck in LA now!

    The whole thing started back in 45.
    Way before me and you. None of us was alive.
    They fought some battles, killed some people too.
    Over spheres of influence and where we get our shoes.
    It’s Bretton Woods where we get our goods.
    And where we shop around.
    So your teddy bear comes from over there
    Instead of from crosstown.

    Hey, hey, hey children!
    Come sit by me.
    I’ll tell a story ’bout your bare Christmas tree.
    You can thank Walmart for your misery.
    Cuz Santa’s sleigh is stuck in LA now!

    You bet it powered some of us to be first.
    From McLean to McCain, and Nixon’s insane, to Donald the Worst.
    Count in Sam Walton and Johnny B Goode.
    Thank ’em all for empty places in the Hood.
    We made it by ourselves
    to tend to our needs.
    Thank financiers to industrialists’ cheers
    for toadying greed.

    Hey, hey, hey children!
    Come sit by me.
    I’ll tell a story ’bout your bare Christmas tree.
    You can thank Walmart for your misery.
    Cuz Santa’s sleigh is stuck in LA now!

    You can bet that they’re gonna spin ya
    some reasons quite untrue.
    That it’s your fault your Christmas presents
    Never made it to you.
    That you wanted Christmas cheaper than
    all those toys made in Japan
    So you took your best, and headed west
    to hungry China-l-a-a-a-a-nd !

    Now, tell me children. What we gonna do?
    The factories’ there, our cupboards’ bare, and we are through.
    They own the shipping. They provide the crew.
    They make you everything, even your shoes.
    We ship them cardboard, and our dollars too.
    Just so Walmart and Lowes can sell us new.
    You’re feeling empty, tired and blue.
    Now, tell me children. What we gonna do?

    Hey, hey, hey children!
    Come sit by me.
    I’ll tell a story ’bout your bare Christmas tree.
    You can thank Walmart for your misery.
    Cuz Santa’s sleigh is stuck in LA now!

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