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September 14, 2023
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January 15, 2021
Inside California’s Colossal Container-Ship Traffic Jam
by Tyler DurdenFriday, Jan 15, 2021 – 14:05
By Greg Miller, of Freight Waves,
In the movie “Falling Down,” the character played by Michael Douglas is stranded in a Los Angeles traffic jam. He abandons his car, starts walking with briefcase in hand and ultimately has a mental breakdown. Cargo shippers trying to get their containers through the ports of Los Angeles and Long Beach can relate.Container imports overwhelming California ports
The pileup of ships offshore in San Pedro Bay and congestion onshore at the terminals have reached epic proportions. And the situation could become even more maddening in the weeks ahead.
32 container ships at anchor
American Shipper interviewed Kip Louttit, executive director of the Marine Exchange of Southern California, to get the latest on ships in San Pedro Bay.
He reported that as of midday Wednesday, 91 ships were in port: 46 at berth and 45 at anchor. Of those, there were 56 container ships: 24 at berth and 32 at anchor. Between Wednesday and Saturday, 19 more container ships will arrive, with the same number due to depart.
There were a few more container ships at anchor on Friday — 37 in total. Yet Louttit said “there has been no significant change between the first of January and today.”Container ship locations, Jan. 13 (Map: MarineTraffic)
Louttit confirmed that ships have effectively filled all of the usable anchorages off Los Angeles and Long Beach. Ships have also taken six of the 10 contingency anchorages off Huntington, the next town south.
If all the anchorages and contingency anchorages fill up, ships will be placed in so-called “drift boxes” in deeper water. These are actually circles not boxes. Unlike ships at anchorages in shallower water, ships in drift boxes would not anchor, they’d drift. “When you drift out of the circle, which has a radius of 2 miles, you start your engine and go back to the middle of the circle,” explained Louttit.
Historical perspective on traffic jam
Given the drift-box option, container ships are not about to hit any kind of maximum capacity offshore of California. Nor is there a higher safety risk. “There are a lot of ships, but they’re all very carefully watched and managed,” affirmed Louttit.
The significance of so many anchored ships is what they reveal about the extent of the logistics logjam on shore.Anchored container ships stretch off into the distance
The most recent comparable anchorage level occurred during the labor dispute between the International Longshore and Warehouse Union (ILWU) and their employers in 2014-15.
“On March 14, 2015, there were 28 container ships at anchor. We’ve blown through that record,” said Louttit. The all-time record for ships at anchorage off California occurred in 2004 during a rail staffing shortage.
“Normally, if you want a baseline, there’d be a dozen and rarely are they container ships,” he said.
Signal still flashing red
The Marine Exchange does not look past the coming four days’ arrivals. But there are other ways to see what’s headed this way across the Pacific.
It takes two to three weeks for containers to cross the ocean from China to California. The Port of Los Angeles developed The Signal, a daily digital tool powered by Port Optimizer, to indicate what’s en route. The system uses manifest data from nine of the top 10 carriers calling in Los Angeles.
The Signal data updated on Wednesday showed no letup in sight. Imports are expected to rise from 143,776 twenty-foot equivalent units (TEUs) this week to 157,763 TEUs next week to 182,953 TEUs the week of Jan. 24-30.(Chart: The Port of Los Angeles Signal, Jan. 13)
Importantly, the data does not solely include TEUs arriving in a particular week. It also includes TEUs arriving in prior weeks that the port expects to handle in the stated week.
Consequently, the data provides an indirect indicator of how much cargo is getting delayed. For example, on Monday, Jan. 4, The Signal indicated the port would handle 165,000 TEUs that week. But by Friday, Jan. 8, the assessment for that same week had plunged to 99,785 TEUs — implying that over 65,000 TEUs were pushed to the following week (i.e., this week). This pattern also suggests that the forecast for 182,953 TEUs the week of Jan. 24-30 will ultimately be revised downward.
Congestion causes
In an alert to customers this week, carrier Hapag-Lloyd reported, “All terminals [at Los Angeles/Long Beach] continue to be congested due to the spike in import volumes and [this] is expected to last until February.
“Terminals are working with limited labor and split shifts,” it said, asserting that this is related to COVID. “This labor shortage affects all terminals’ TAT [turnaround time] for truckers, inter-terminal transfers and the number of daily appointments available for gate transactions and delays our vessel operations.”
As a result of “lack of terminal space” to service vessels, “there is a constant switching of terminals that must be kept in mind” given that containers are ending up “in the wrong terminal,” said Hapag-Lloyd.
Congestion woes are now spreading well beyond California ports, confirmed Hapag-Lloyd. The carrier reported “heavy congestion” in Canada and “berth congestion at Maher Terminal and APM Terminals [in the Port of New York and New Jersey] impacting all services with delays of several days being experienced upon arrival.”
Little relief ahead
Liner companies traditionally cancel numerous sailings during the Chinese New Year period to account for decreased Chinese exports. If they did so in 2021, it would allow U.S. terminals time to clear some of the inbound congestion. Unfortunately for terminals, liners are opting against canceling sailings during the Chinese holiday period next month.
Ports could also see congestion relief if U.S. consumer demand slowed. However, that does not appear to be happening.
Analysts believe the “blue sweep” scenario — with Democrats winning the presidency as well as both houses of Congress — will spur $1 trillion-$2 trillion in new stimulus during the first half of this year.
Investment bank Evercore ISI predicted, “Additional checks will reach consumers at a time when unemployment is lower [than during the 2020 stimulus round], mobility has significantly improved, the overall willingness to spend of the general public is up significantly, confidence levels are higher, housing is strong and the savings rate is still extremely high. That is a set-up for a consumer boom.”A view of normal times in San Pedro Bay, when there are few ships at anchor
https://www.zerohedge.com/economics/inside-californias-colossal-container-ship-traffic-jam
January 15, 2021
Inside California’s Colossal Container-Ship Traffic Jam
by Tyler DurdenFriday, Jan 15, 2021 – 14:05
By Greg Miller, of Freight Waves,
In the movie “Falling Down,” the character played by Michael Douglas is stranded in a Los Angeles traffic jam. He abandons his car, starts walking with briefcase in hand and ultimately has a mental breakdown. Cargo shippers trying to get their containers through the ports of Los Angeles and Long Beach can relate.Container imports overwhelming California ports
The pileup of ships offshore in San Pedro Bay and congestion onshore at the terminals have reached epic proportions. And the situation could become even more maddening in the weeks ahead.
32 container ships at anchor
American Shipper interviewed Kip Louttit, executive director of the Marine Exchange of Southern California, to get the latest on ships in San Pedro Bay.
He reported that as of midday Wednesday, 91 ships were in port: 46 at berth and 45 at anchor. Of those, there were 56 container ships: 24 at berth and 32 at anchor. Between Wednesday and Saturday, 19 more container ships will arrive, with the same number due to depart.
There were a few more container ships at anchor on Friday — 37 in total. Yet Louttit said “there has been no significant change between the first of January and today.”Container ship locations, Jan. 13 (Map: MarineTraffic)
Louttit confirmed that ships have effectively filled all of the usable anchorages off Los Angeles and Long Beach. Ships have also taken six of the 10 contingency anchorages off Huntington, the next town south.
If all the anchorages and contingency anchorages fill up, ships will be placed in so-called “drift boxes” in deeper water. These are actually circles not boxes. Unlike ships at anchorages in shallower water, ships in drift boxes would not anchor, they’d drift. “When you drift out of the circle, which has a radius of 2 miles, you start your engine and go back to the middle of the circle,” explained Louttit.
Historical perspective on traffic jam
Given the drift-box option, container ships are not about to hit any kind of maximum capacity offshore of California. Nor is there a higher safety risk. “There are a lot of ships, but they’re all very carefully watched and managed,” affirmed Louttit.
The significance of so many anchored ships is what they reveal about the extent of the logistics logjam on shore.Anchored container ships stretch off into the distance
The most recent comparable anchorage level occurred during the labor dispute between the International Longshore and Warehouse Union (ILWU) and their employers in 2014-15.
“On March 14, 2015, there were 28 container ships at anchor. We’ve blown through that record,” said Louttit. The all-time record for ships at anchorage off California occurred in 2004 during a rail staffing shortage.
“Normally, if you want a baseline, there’d be a dozen and rarely are they container ships,” he said.
Signal still flashing red
The Marine Exchange does not look past the coming four days’ arrivals. But there are other ways to see what’s headed this way across the Pacific.
It takes two to three weeks for containers to cross the ocean from China to California. The Port of Los Angeles developed The Signal, a daily digital tool powered by Port Optimizer, to indicate what’s en route. The system uses manifest data from nine of the top 10 carriers calling in Los Angeles.
The Signal data updated on Wednesday showed no letup in sight. Imports are expected to rise from 143,776 twenty-foot equivalent units (TEUs) this week to 157,763 TEUs next week to 182,953 TEUs the week of Jan. 24-30.(Chart: The Port of Los Angeles Signal, Jan. 13)
Importantly, the data does not solely include TEUs arriving in a particular week. It also includes TEUs arriving in prior weeks that the port expects to handle in the stated week.
Consequently, the data provides an indirect indicator of how much cargo is getting delayed. For example, on Monday, Jan. 4, The Signal indicated the port would handle 165,000 TEUs that week. But by Friday, Jan. 8, the assessment for that same week had plunged to 99,785 TEUs — implying that over 65,000 TEUs were pushed to the following week (i.e., this week). This pattern also suggests that the forecast for 182,953 TEUs the week of Jan. 24-30 will ultimately be revised downward.
Congestion causes
In an alert to customers this week, carrier Hapag-Lloyd reported, “All terminals [at Los Angeles/Long Beach] continue to be congested due to the spike in import volumes and [this] is expected to last until February.
“Terminals are working with limited labor and split shifts,” it said, asserting that this is related to COVID. “This labor shortage affects all terminals’ TAT [turnaround time] for truckers, inter-terminal transfers and the number of daily appointments available for gate transactions and delays our vessel operations.”
As a result of “lack of terminal space” to service vessels, “there is a constant switching of terminals that must be kept in mind” given that containers are ending up “in the wrong terminal,” said Hapag-Lloyd.
Congestion woes are now spreading well beyond California ports, confirmed Hapag-Lloyd. The carrier reported “heavy congestion” in Canada and “berth congestion at Maher Terminal and APM Terminals [in the Port of New York and New Jersey] impacting all services with delays of several days being experienced upon arrival.”
Little relief ahead
Liner companies traditionally cancel numerous sailings during the Chinese New Year period to account for decreased Chinese exports. If they did so in 2021, it would allow U.S. terminals time to clear some of the inbound congestion. Unfortunately for terminals, liners are opting against canceling sailings during the Chinese holiday period next month.
Ports could also see congestion relief if U.S. consumer demand slowed. However, that does not appear to be happening.
Analysts believe the “blue sweep” scenario — with Democrats winning the presidency as well as both houses of Congress — will spur $1 trillion-$2 trillion in new stimulus during the first half of this year.
Investment bank Evercore ISI predicted, “Additional checks will reach consumers at a time when unemployment is lower [than during the 2020 stimulus round], mobility has significantly improved, the overall willingness to spend of the general public is up significantly, confidence levels are higher, housing is strong and the savings rate is still extremely high. That is a set-up for a consumer boom.”A view of normal times in San Pedro Bay, when there are few ships at anchor
https://www.zerohedge.com/economics/inside-californias-colossal-container-ship-traffic-jam
January 15, 2021
Heavy! Some Products Of Covestro IPDI And HDI Encountered Force Majeure!
[Jan 14, 2021]
Recently, Covestro issued a letter stating that the Leverkusen plant’s isophoron diisocyanat (IPDI) and hexamethylene were caused by an accidental fire caused by Covestro IPDI and HDI in a cooling supplier in a German chemical park. The production of Hexamethyfendiisocyanat (HDI) and related derivatives of curing agents will be restricted due to force majeure. So far, it is impossible to estimate how long these effects will last.
In addition, Covestro also stated that during this period it is expected that it will not be able to meet all the ordering requirements in the next few months. We are currently doing our best to deal with the current adverse effects.
https://www.jecibiochem.com/news/heavy-some-products-of-covestro-ipdi-and-hdi-41661835.html
January 15, 2021
Heavy! Some Products Of Covestro IPDI And HDI Encountered Force Majeure!
[Jan 14, 2021]
Recently, Covestro issued a letter stating that the Leverkusen plant’s isophoron diisocyanat (IPDI) and hexamethylene were caused by an accidental fire caused by Covestro IPDI and HDI in a cooling supplier in a German chemical park. The production of Hexamethyfendiisocyanat (HDI) and related derivatives of curing agents will be restricted due to force majeure. So far, it is impossible to estimate how long these effects will last.
In addition, Covestro also stated that during this period it is expected that it will not be able to meet all the ordering requirements in the next few months. We are currently doing our best to deal with the current adverse effects.
https://www.jecibiochem.com/news/heavy-some-products-of-covestro-ipdi-and-hdi-41661835.html
January 15, 2021
Covestro : receives ISCC Plus certification for its Antwerp and Uerdingen sites
01/14/2021 | 04:04am EST 14 January 2021 | 10:00 Europe/Amsterdam Covestro receives ISCC Plus certification for its Antwerp and Uerdingen sites Backward-oriented supply chain fulfills high sustainability standard Summary
- More sustainable polycarbonates and polyurethane raw materials
- Gradual conversion of production in Europe planned
- Drop-in solution for customers with constant product quality
Covestro has now received ISCC Plus mass balance certification for its Antwerp and Krefeld-Uerdingen sites. This means the company can now offer its customers large product volumes of the high-performance plastic polycarbonate made from renewable attributed raw materials in the same good quality as fossil-based polycarbonate. The polyurethane raw material methylene diphenyl diisocyanate (MDI) from Krefeld-Uerdingen and its precursor aniline from the Antwerp plant are now also available with ISCC Plus certification.
‘With the mass balance certification across the entire value chain, we want to achieve complete transparency, also for our customers,’ says Sucheta Govil, Chief Commercial Officer (CCO) at Covestro. ‘At the same time, we are helping them to reduce their own carbon footprint and are offering them a drop-in solution that they can instantly implement in their existing production processes without the need for technical modifications.’ Systematic tracking of the supply chain
‘With the gradual conversion of our production to renewable raw materials, we are helping to drive carbon in circles and are coming closer to our vision of circularity,’ explains Dr. Klaus Schäfer, Chief Technology Officer (CTO) at Covestro. ‘The raw materials we use meet the high sustainability requirements of the ISCC Plus Standard throughout the entire supply chain.’
As part of a strategic cooperation, Covestro received a first shipment of ISCC-Plus certified phenol from Borealis in October, which was produced from renewable hydrocarbons from Neste. Phenol is an intermediate product for polycarbonate. Consequently, this means that the supply chain from the originally used waste and residual oils and fats to the plastic is now fully ISCC Plus certified. Polycarbonate is used in high-quality applications in the automotive and electronics industries, among others. Gradual conversion to renewable raw materials
The certification of the plastic as well as the intermediate product MDI strengthens the use of alternative raw materials at Covestro. MDI is used to produce rigid polyurethane foam, which has been providing efficient thermal insulation for refrigeration appliances and buildings for decades. Gradually converting to renewable raw material sources is part of a comprehensive program with which Covestro, in collaboration with its partners, aims to drive forward the transition to a Circular Economy and become fully circular itself.
ISCC (‘International Sustainability and Carbon Certification’) is an internationally recognized system for the sustainability certification of biomass and bioenergy. The standard applies to all stages of the value chain and is recognized worldwide. ISCC Plus includes further certification options for technical-chemical applications, including plastics made from biomass.
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