
Since the first COVID-19 cases in China to date, many changes have taken place in global maritime shipping and the logistics chain. Some unprecedented events have been recorded, such as the use of dry bulk carriers to transport containers, direct chartering by major US and European traders, and more. All because, for the first time in the last decades, there have been extremely long delays in ports and in loading and unloading of containers.
It is characteristic that the reliability of the transport schedule of container shipping companies fell to a low level in 2021, only at 35.8% – the lowest point of all time, down from 63.9% in 2020 and 78.0% in 2019. Additionally, the average delay for all vessel arrivals increased significantly in 2021 and exceeded the 4-day limit for the first time.
According to SeaIntelligence analysts, the disruption of the supply chain caused by the COVID-19 pandemic, as well as other events such as the temporary closure of the Suez Canal last March, led to historically low reliability levels of container transport. None of the top 14 largest container-liners recorded more than 50% schedule reliability in 2021.
Trading Groups are buying vessels
In order to overcome these problems, major importers and trading groups either set up a shipping company, bought ships or even chartered. The most emphatic example is the German retail giant Lidl that founded its own shipping company called Tailwind Shipping Lines. Also, a Chinese furniture manufacturer, Loctek, ordered for its own use a 1,800 teu container ship for $32.6 million from Huanghai Shipbuilding.
The biggest problems faced by trading and consumer companies were on the eve of Christmas 2021. At that time, in order to avoid empty shelves, large retail chains such as WallMart, Target, Home Depot, Dollar Tree etc. began to charter ships to serve their needs. They even went through the process of chartering ships that are not containerships but vessels that carry dry bulk, general or multi-purpose cargo, i.e. ships carrying iron ore, coal, grain or other cargoes, such as timber, pipes, etc., which can enter other ports that do not have such a serious congestion problem.
This trend began in early August 2021 and, as the malfunctions in the containership lines continued, the more businesses turned to bulkers to serve their loads.
Dry bulk carriers demonstrate the vital role they play at the heart of world trade, according to the Association of Independent Owners of Dry Bulk Carriers (Intercargo). A leading example was Amazon, which according to Alphaliner, loaded a series of 53-foot containers onto a bulk dry cargo ship that transported the cargo from Shenzhen, China to Houston, USA. Walmart also recently used three bulk carriers of the open hatch type that carry loads such as forestry products and steel pipes.
Earlier in October Coca Cola revealed that it had loaded 60,000 tonnes of material onto three dry bulk carriers in order to continue production. As a matter of fact, two of the three ships were of Greek interest.
Record charters and apical changes
Congestion in ports and the tendency towards longer term charters have reduced the availability of container ships, resulting in ship fares skyrocketing to record levels. The daily charter for chartering a ship for up to three months has, in some cases, exceeded $200,000 per day. In 2022 fares seem to remain at a very satisfactory level. Containership charter purchases by liner shipping companies are stabilising at high levels, with liners rushing to lock in long-term charter contracts.
The end of 2021 also marked a historic change in the ranking of the largest liner shipping companies. The Italian-Swiss MSC crossed over the Danish Maersk for a few thousand… boxes. Today, according to Alphaliner, it controls a fleet of 661 vessels with a capacity of 4,334,906 teu and Maersk follows with a fleet of 739 vessels with a capacity of 4,284,712 teu.
In first place was MSC, after buying Log-In-Logistica Intermodal Sa, a Brazilian company active in container transport on a regional basis.


Latest News

Trump Tariffs Jeopardize Growth: Piraeus Chamber of Commerce
The tariffs, aimed at reducing the U.S. trade deficit, are expected to have both direct and indirect effects on the European economy

EU Condemns Trump Tariffs, Prepares to Retaliate
As tensions escalate, the EU is expected to continue negotiations with Washington while preparing for potential economic retaliation.

The Likely Impact of Trump Tariffs on Europe and Greece
Trump tariffs are expected to negatively affect economic growth in the Eurozone while Greece's exports could take a hit.

Motor Oil Results for 2024: Adjusted EBITDA of 995 mln€; Proposed Dividend of 1.4€ Per Share
Adjusted EBITDA for 2024 was down 33% yoy. The adjusted profit after tax for 2024 stood at 504 million euros, a 43% decrease from the previous year

Cost of Living: Why Greece’s 3% Inflation Is Raising Alarm
Greece appears to be in a more difficult position when it comes to price hikes, just as we enter the era of Trump’s tariffs.

Fitch Ratings Upgrades the Four Greek Systemic Banks
NBG’s upgrade reflects the bank’s ongoing improvements in its credit profile, Fitch notes in its report, including strong profitability, a reduction in non-performing exposures (NPEs), and lower credit losses

Trump to Announce Sweeping New Tariffs Wednesday, Global Retaliation Expected
With Trump's announcement just hours away, markets, businesses, and foreign governments are bracing for the fallout of one of the most aggressive shifts in U.S. trade policy in decades.

Inflation in Greece at 3.1% in March, Eurostat Reports
Average inflation in the eurozone settled at 2.2%, compared to 2.3% in February

Greece’s Unemployment Rate Drops to 8.6% in February
Despite the overall decline, unemployment remains higher among women and young people.

Jerry Kalogiratos Highlights Key Role of Energy Transition and Data Demand in LNG Outlook
Energy transition and the prospects of LNG were discussed at Capital Link’s 19th Annual International Maritime Forum, during a panel discussion with Jerry Kalogiratos (Capital Clean Energy Carriers Corp.)