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E-commerce boom leaves long-lasting effects on the maritime container market

Aug, 11, 2022 Posted by Gabriel Malheiros

Week 202232

The height of the covid-19 pandemic was a difficult period for global maritime trade. One of the primary issues experienced at the time was the scarcity of containers, which resurfaced in 2022 due to Chinese lockdowns. The e-commerce boom was one of the key causes of this scenario.

This evaluation is included in the study issued by the National Waterway Transportation Agency’s Working Group on Maritime Transport, which was released last week. Flávia Takafashi, the regulatory agency’s director, enumerated some of the consequences.

“A major worldwide logistical crisis was caused by the shortage of containers and port logistical capacity, along with a rise in demand for handling containerized goods, driven by the boom in the e-commerce industry and the concentration of the marine transport sector. The most likely estimates point that this scenario will persist in the medium term.”

According to a survey by Neotrust, the company responsible for monitoring Brazilian e-commerce, the purchase of products online, in fact, contributed to the decrease in the supply of containers in Brazilian ports. National e-commerce, for example, recorded a 26.9% growth in revenue in 2021 compared to the previous year. In addition, orders increased by 16.9% between 2020 and 2021, with 353 million purchases.

Rationale

“E-commerce is a fact. It already existed before, and the pandemic made it grow even more as stores physically closed and everyone had to resort to online practices. Undoubtedly it stimulated the use of containers. All large companies had to place large orders to meet domestic demand,” describes the president-director of the Association of Private Port Terminals (ATP), Admiral Murillo Barbosa.

He recalls that during the initial months of the pandemic, imports through the Port of Santos were reduced, particularly in containers. However, everything returned to normal after that. “Today, we are witnessing another episode of imbalance worldwide, parallel to the Chinese lockdowns. I do not doubt that the e-commerce boom has contributed to that,” he says.

Global phenomenon

Caio Morel, executive director of the Brazilian Association of Container Terminals (Abratec), stresses that the increase in e-commerce is a global phenomenon, with an emphasis on the United States and Europe, which has implications for port operations here in Brazil.

“Vessels were clogged and began sailing in a disorganized way. This has significantly impacted the ports here in Brazil, suffering challenges like blank sailings and previously-stalled vessels coming all at once. It is a series of facts that hampered logistics in Brazil.”

He points out that the freight price already shows signs of going down after a period of steady rises. “Shippers and importers realize that freight has gone up. Everyone recognizes that it’s a matter of supply and demand and that there’s not much to do except correct abuses when they happen. Once the congestion issue normalizes, we will see a return to efficiency.”

Morel also mentions the issue of blank sailings, which was also addressed in the Antaq report. “It occurs when a vessel comes but is unable to dock quickly, and the shipowner decides to bypass that specific call. Only the shipowner has the data to make that decision, much as an airplane pilot determines whether or not to continue its voyage. Obviously, this is not a desirable situation, but it is used only when required.”

Source: A Tribuna

To read the full original article, please go to: https://www.atribuna.com.br/noticias/portomar/explosao-do-comercio-on-line-impacta-mercado-de-conteineres-no-setor-portuario

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