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Delivery containers come to the surface as the supply race raises risks

(Bloomberg) – Large containers on giant ships carrying car tires to smartphones are spilling at an alarming rate, sending millions of dollars of cargo to the ocean floor as the pressure to speed up shipments increases safety errors. The shipping industry has been losing the most container growth in the last seven years. Last year, more than 3,000 boxes were thrown into the sea, and more than 1,000 have so far fallen into the river in 2021. Accidents disrupt supply chains for hundreds of American retailers, such as Amazon and Tesla. There are many reasons for the sudden increase in accidents. The weather becomes more unpredictable as the ships get bigger, allowing the containers to be arranged higher than ever! But the aggravation of the situation is a wave of e-commerce after consumer demand exploded during the epidemic, which increases the urgency of delivery lines to deliver products as quickly as possible. “The large displacement of the containers means that these very large containers are much closer to full capacity than they once were,” said Clive Reed, founder of Reed Marine Maritime Casualty Management Consultancy. “There is a lot of pressure on ships to get there on time, so they can travel more.” After strong winds and strong waves, the 364-meter One Apus crashed in November, losing more than 1,800 containers, showing footage of thousands of steel boxes spilled on Lego pieces, some torn to pieces by metal. It was the worst case since 2013, when the MOL Comfort split in two, sinking the Indian Ocean with all its 4,293 containers. In January, Maersk Essen lost about 750 boxes while traveling from the Chinese city of Xiamen to Los Angeles. One month later, 260 containers fell from Maersk Eindhoven when it lost power in the heavy seas. The need for speed creates uncertain conditions that can lead to rapid disaster, according to freight experts. Dangers range from locking boxes on top of each other to captains who do not deviate from the storm to save fuel and time as they are pressured by the oncoming collision. One wrong step can put your cargo and staff at risk. Accidents are more likely to occur as exhausted seafarers experience worsening conditions during an epidemic. Allianz Global Corporate & Specialty estimates that human error contributes to at least three-quarters of the shipping industry’s accidents and deaths. Almost all of the recent incidents took place in the Pacific Ocean, a region with the busiest traffic and the worst weather. The Asian-North Sea shipping link connecting Asian economies was the most lucrative for shipping companies last year. China’s exports have been tearful as epidemic fuels demand all the items people need to work, learn and have fun at home. journey has always been rough, but due to weather changes it has become more dangerous. Traffic from China to the United States last winter coincided with the strongest winds in the North Pacific since 1948, increasing the likelihood of rough seas and larger waves. Delivered every year, a loss of 1000 1,000 more may seem like a drop in the ocean. “This is a very small percentage lost,” Jacob Demgaard, Britannia P & I ‘s loss prevention assistant, told a conference in Singapore on April 23. – But it is almost 60% of the monetary value of all container incidents. At $ 50,000 per pack, One Apus was estimated to have lost just $ 90 million worth of cargo, the highest in recent history, according to Clyde & Co., a London-based maritime law firm. Partner Jay Sharma. According to Bloomberg, the losses so far this year have amounted to about $ 54.5 million. The issue also comes to the fore as the 400-meter-long Ever ship in the Suez Canal last month highlighted the vulnerability of the freight industry. The Mega Ship has been blocking the passage of a vital water pipeline for almost a week, and the impact on world trade is still being felt. So far, none of the recent container incidents have been directly attributed to security breaches. The International Maritime Organization said it was still awaiting the outcome of an investigation into the latest incidents and warned against making any conclusions beforehand. But many experts say the situation has become more dangerous since the epidemic due to pressure on supply chains. When ships are approaching severe weather, captains have the opportunity to stay out of danger. But the attitude is, “Do not go around the storm, go through it,” said American Onatan Ranger, head of the American International Group Inc.’s Asia-Pacific Ocean. “It’s a coincidence that is waiting to happen,” he said at an industry conference in Singapore. With Top HeavyWhat boxes that are higher, the ship can become more unstable in the storm. wave after wave can result from sharp corners of the vessel, putting pressure on the containers. The situation gets worse if the drug is overloaded. This can happen when there are incorrect weights on the shipping containers, which many in the industry say happens very often. “You can’t see inside the containers,” said Arnaldo B. Romero, a captain who sailed late from Japan to South America. last year. “So when the cargo is heavy, the officer in charge of planning the cargo raises it. We will no longer have control over the carriage of the ship.” Loaded personnel also increase the risks. The increased workforce on deck makes it difficult for crew to effectively inspect and screw each bar, said Neil Wiggins, CEO of Independent Vessel Operations Services LLC. There is maritime health and safety here. The multi-stage collapse of 40-foot containers during a raging storm is one of the most horrific experiences for the Captain: crew. Post-traumatic stress disorder is common among crew members, according to Philip Istel, founder of Container Sailors. Concerns are growing that the industry will address the situation. “Who’s march is different from what it was 10 years ago.” said Rajesh Uni, founder of Synergy Marine Group, which provides services to shipowners. “How do we adapt as an industry?” It is convenient to blame the captain, but we have to look at how the port infrastructure is changing, how the transits are moving. ” The International Monetary Fund (IMO), which is responsible for cargo regulations, says the countries whose flags are flown are responsible for issuing ship safety certificates, while the ships with which ships call are responsible for loading containers. to follow the rules. The agency said that its subcommittee on cargo regularly examines the problems of containers and plans to meet next September. AIG Ranger says companies need to be prepared for storm surges to properly protect ships. “These ships are designed to carry boxes, it is unacceptable to have those losses, I dare say.” (Recent changes from the International Maritime Organization Subcommittee meeting: last to last paragraph.) For more articles, please visit bloomberg.com Subscribe now to stay ahead of the most trusted source of business news. © 2021 Bloomberg LP:

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