One in three containers missed a scheduled sailing and was rolled in December, according to data analytics firm Ocean Insights. Container rollovers are just one of the many challenges the international shipping community is grappling with today. But they have the potential to wreck trading schedules and cripple businesses. Which makes it all the more important for importers and exporters to be aware of and prepared for this threat.
In this blog, we take a deep dive into the cargo rollover crisis, tackling the following topics:
A container rollover, or cargo rollover, is when your container fails to get loaded onto its scheduled vessel and is accommodated on a subsequent ship. There are numerous reasons why containers get rolled, including but not limited to:
Rolled cargo has consequences for all parties involved – the importer, exporter, carrier and ports. It leads to:
For the past six months, global container rollover rates have not only stayed high, they have been rising steadily. In December, the average rollover rate at major transshipment ports surveyed by Ocean Insights was 37% while it touched 50% at some ports. This is up from an average of 35% in November, 28.5% in October and 26.9% in September. To calculate the rollover rate, Ocean Insights takes the percentage of cargo arriving at a port for transshipment and leaving on a different ship than originally scheduled.
“Of the 20 global ports for which Ocean Insights collates data, 75% saw an increase in levels of rollover cargo in December compared to the previous month,” Ocean Insights COO Josh Brazil was quoted as saying.
The crisis is particularly bad in Asia, home to some of the world’s leading transshipment ports such as Singapore and Port Klang in Malaysia. In Colombo, Sri Lanka, 50% of cargo was delayed in December while Gioia Tauro in Italy recorded a 62% rollover rate that month.
There is more than one reason for it:
Read our blog on ongoing disruptions to the global supply chain here.
From delays to stranded cargo, the impact of rising container rollover rates is being felt in many ways.
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