Hamburg Süd aims to provide customers with the most relevant and up-to-date information to help them navigate this period of heightened volatility. It issued the following statement:
We have reached the tail-end of the Chinese New Year slowdown period wherein the majority of the proactive network optimizations from weeks 4-6 are effectively behind us. Volumes are increasing week-over-week, which coincide with the resumption of manufacturing and warehouse operations in China.
Recent service and structural updates to improve the overall performance of the ocean network on both transpacific and transatlantic services have begun to deliver results. SeaIntel Data reflects the positive impacts of our service adjustments to reduce transit times and improve reliability. Reliability is a measure of the percentage of vessels that deliver their cargo within 72 hours of the scheduled “Delivery Promise” arrival time.
Tender season considerations
As Tender Season is nearly upon us, your account teams stand ready to explore your business objectives to determine the best opportunities to partner with you on your supply chain. Given the ever-changing nature of economic conditions and market forces, we recommend the following key considerations:
- Think ahead as to what may be happening in the next six months in your industry. Plan for what you believe your warehouse(s) inventories will look like come July or August.
- Consider that the market may change significantly. The economic outlook remains uncertain and economists are divided as to whether there will be an upturn or a downturn by year end.
- Identify contract options that enable flexibility and resiliency for your business to be prepared for multiple economic scenarios.
A note on the weather
Seasonal weather patterns have impacted services to and from North America across a variety of regions, ranging from the Pacific Northwest to northern Europe, and even down to South Africa. Significant winter weather in Vancouver has resulted in vessel wait times of up to 15 days, which given weekly sailing schedules have the potential to result in missed sailings due to knock-on effects.
Low water levels often seen from the months of December through April routinely result in ships reaching weight capacity limits prior to container capacity limits, as experienced recently with vessels heading to some Canadian, US Gulf, and Northern European ports. Hamburg Süd’s “AMEX Southbound” to South Africa from the U.S. East Coast is experiencing vessel bunching and wait times up to seven days due to periods of high winds in Cape Town and Durban.
For more information: hamburgsud.com