Container lines warn of further delays at Suez, publish waiting lists amid record freight rates

London — Leading container lines A.P. Moller-Maersk and Hapag-Lloyd have warned of more disruptions, as the closure of the Suez Canal is likely to tighten an already shrinking tonnage list, which could push freight rates to new highs.

"So far, nine Maersk container vessels and two partner vessels have been directly affected," Maersk said on its website.

Hapag-Lloyd said in an email March 25 that five vessels have been affected.

Maersk warned that timing is critical: "While ETAs are jeopardized as salvage efforts continue, the impact on the global supply chain as a result of the vessel blockage in the Suez Canal depends on how long the route remains impassable," Maersk said.

Hapag-Lloyd also warned of uncertainty.

"We don't have any clear indication when the vessel will be refloated again," the company said.

Related news: Unclear when stuck container ship Ever Given to move out of Suez Canal: owner

The container ship Ever Given remains stuck in the Suez Canal, more than 48 hours after it first ran aground. The reopening of the key waterway is now likely to take several days, market watchers told S&P Global Platts March 25.

A queue of 48 vessels are waiting at Port Said Anchorage to the north of the canal, 38 vessels in Great Bitter Lake, midway of the canal and 70 vessels waiting at Port Suez Anchorage to the south. In total, 156 vessels are waiting in the Suez Canal area, Egyptian shipping and offshore agency Leth Agencies said on its website in its latest account of the traffic situation.

A total of 8 tugboats are helping with the refloating operation.

The three vessels behind Ever Given are being assisted and escorted out of the Canal, bringing them back to the Port Suez Anchorage.

In February, 392 container vessels transited the Suez Canal, compared with 407 in February 2020 and 434 in February 2019, data from Leth Agencies and shipping industry body BIMCO showed.

A strained market

The pile-up at Suez comes when the container industry is already facing severe bottlenecks.

There are so many logistical issues in European ports at the moment that the ports are welcoming the potential brief respite, some market sources said.

Delays in at European ports stem from continuing firm demand and equipment shortages around the world, which have pushed freight rates to all-time highs.

S&P Global Platts assessed its Container Rate 1 - North Asia-to-North Continent - $9,500/FEU (forty foot-equivalent unit) March 25, compared with $1,300/FEU a year previously.

These equipment shortages arise from delays inland, resulting in a lack of empty containers available for export. This issue has been going on for several months, as a result of coronavirus-related lockdown measures across the world which have left skeleton staffing levels at some warehouses.

Where previously containers have taken around five days from discharge to return to port, in some instances they have taken up to three or four weeks. That leaves fewer containers to be filled and exported, hence further delays with cargo volumes, and increasing numbers being delayed onto the next vessel.

"Container trade is already disrupted and there are significant delays at port, so it really is the icing on the cake for some liners," a freight forwarder said.

Several container liners are already looking at re-routing cargoes via the Cape of Good Hope in an attempt to keep cargoes moving, although this will cause additional costs.

"Going via the Cape [of Good Hope] will be a key option for some of the container liners, but that has additional costs obviously in terms of delayed transit times and significantly higher bunker consumption due to the additional distance steamed," the freight forwarder said.