Published by The Maritime Executive

Published by The Maritime Executive

Published by China Dialogue Ocean

Published by The Maritime Executive

Published Sep 2, 2021 3:06 PM by The Maritime Executive

Shipper and carriers are continuing to seek solutions to address the disruptions and delays in container shipping. Home furnishing retailer Ikea is the latest among the big box stores to admit that decided to take matters into its hands in an attempt to elevate some of the disruptions and global shortages the company has been experiencing. At the same time, reports persist that shipowners, including now the dry bulk sector, are seeking steps to address the challenges in the container shipping business.

Ikea confirmed to U.S. broadcaster NBC News that it had started shipping goods using chartered vessels. The company also reported that it is purchasing containers to ensure the availability of boxes to move merchandise to its stores. 

Speaking to the Swedish news outlet Svenska Dagbladet Ikea explained some of the reasons behind its decision to take the costly steps of chartering ships and buying containers. The company said it had shipments delayed by the ongoing port congestion as well as incidents such as the Ever Given that took months to complete its shipments after blocking the Suez Canal and being detained by the Egyptian authorities. Ikea said that shortages of raw materials along with the problems across the global supply chain were leading to shortages and out-of-stock items in its stores.

Moving to take greater control over the shipment of goods Ikea joins a growing list of retailers. In the spring home improvement chain Home Depot was the first to speak publicly about chartering ships. Since then, other major retailers have taken similar steps. Walmart reported that some of its merchants had chartered ships while the discount retail chain in the U.S. and Canada Dollar Tree also reported that it too was chartering ships. 

Illustrating the depth of the problem, Dollar Tree told investors that even though it operates under long-term freight contracts it expects its regular carriers “will fulfill only 60 to 65 percent of their commitments.” Even with the chartering of vessels, though, Dollar Tree reported problems have been occurring. One of the company’s chartered vessels was delayed for two months because a crew member tested positive for COVID. “With the current pressure on carriers, once disruptions in the supply chain occur, there is not enough capacity to make it up,” said Mike Witynski, Dollar Tree's President and Chief Executive Officer.

The major carriers have pressed all available capacity into service often adding extra loaders on major routes. However, with capacity still constrained companies have been seeking other solutions. U.S. logistics company Schneider National said it had chartered a general cargo ship not built to carry containers to help customers transport shipments from China to the United States. Now there is increasing talk in shipping circles that the dry bulk companies are looking at deck loading containers on their ships. Insurance groups are warning of the dangers.

“We have in recent weeks heard about dry bulk vessels trying to get certified as box ships, as container vessels. Obviously, allowing them to carry containers,” said Ulrik Andersen CEO of Golden Ocean Group speaking to investors at the end of August. “We're also looking into this possibility. It is too early to say if that happens.” 

With no significant increases forecast in the near term for containership capacity, it is likely more shippers and carriers will be looking for opportunities to address the current market constraints.  

Published Jun 24, 2022 9:33 PM by The Maritime Executive

The giant floating restaurant that graced Hong Kong's waterfront for decades has capsized during a tow in the South China Sea, and it may or may not have sunk to the seabed.  Jumbo Floating Restaurant, an iconic multi-story dining establishment built upon a barge, was one of Aberdeen Harbor’s most prominent landmarks for five decades. Over the years it served more than 30 million guests, including Queen Elizabeth II, Tom Cruise, Chow Yun-fat and Gong Li. It has starred in many...

Published Jun 24, 2022 7:24 PM by The Maritime Executive

Following on a new initiative announced by the White House and 11 states’ governors to accelerate the development of the offshore wind power sector, MARAD is prioritizing the Title XI financing program for vessels in the offshore wind power sector. The Department of Transportation designated offshore wind vessels as “Vessels of National Interest” to accelerate their review and financing under the existing financial support program. MARAD said in announcing the designation that will facilitate more offshore wind construction and will...

Published Jun 24, 2022 6:58 PM by China Dialogue Ocean

Some of humanity’s largest impacts on the oceans have come from the widespread industrialization of fishing practices during the 20th century. While the rate of this growth in fishing pressure has since slowed in the northern, temperate waters of higher income countries where it originated, it is still increasing throughout the tropics. This is driven largely by foreign, “distant-water” fleets, mostly comprised of vessels registered under a small number of flags – including China, South Korea and Spain. In the national waters where most fishing occurs,...

Published Jun 24, 2022 6:48 PM by The Maritime Executive

An NGO dedicated to fighting for pollution-free oceans has won design approval for its unique concept vessel to clean up the oceans. The SeaCleaners hopes to launch its sailboat, the Manta, at the end of 2025 as part of its mission of raising awareness and promoting prevention, while also sharing scientific knowledge, and developing innovative solutions for waste collection and repurposing. The NGO’s integrated engineering design office, Manta Innovation, has been working with naval architects Ship-ST and LMG Marin to...

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