The number of empty containers at Manila ports is slowly decreasing, slipping 21% to about 11,000 twenty-foot equivalent units (TEUs) as of July 11 from 14,000 TEUs on July 7.
Association of International Shipping Lines (AISL) president Patrick Ronas told PortCalls in an email that carriers are continuously working with terminal operators to relieve the volume of empties clogging Manila ports.
“There is no negligence on the part of the carriers” when it comes to shipping out empties, Ronas said, adding shipping lines also incur “not a small amount” of cost, including shut-out charges and storage fees, when empties are left behind.
“As much as possible (carriers) would like these empties to be loaded out (and) reverted to the equipment cycle of the (shipping) line so they can be used to carry import laden boxes later on,” he said. “By doing so, shipping lines are also able to move their boxes from offdock empty container depots so importers and truckers may, in turn, have a place to unload empties under their care.”
The AISL chief pointed to the “cut and run” practice as the primary reason for empties being left behind. (Cut and run is an expression in the shipping industry which literally means cutting the anchor cable and sailing off in a hurry.)
Ronas said lines are forced to cut and run because feeder ships calling Manila ports cannot afford to miss their connection to mother vessels in other ports.
He said, “Shipping lines commit and prioritize exports as they are very important as they fuel our growing economy. Therefore, lines sacrifice their own equipment or assets and prioritize laden containers.”
Carriers are always required to “load whatever containers they have when they go to a certain port as each… helps in addressing the cost recovery of period-related costs like charter hire, bunkers, berthing and harbor fees, etc.”
Besides, “containers are invaluable assets of a container vessel because they are part of the ship’s gear and, by their very nature, considered an extension of the vessel.”
The cut and run practice cannot be avoided, he explained, since carriers are subject to factors beyond their control like berthing time and vessel arrival time at the next port for connection to a mother vessel.
Quite recently, Ronas noted that “vessels (calling Manila)… have been delayed in getting a berth and (as a result) have to consider the time they stay in port.
“Assuming a vessel would like to load all containers as per their port program, the ships have to stay longer at the port and when this happens, the chances of the ship getting delayed in arriving at the feeder hub are a great possibility… (this is) why vessels have to ‘cut and run’,” he explained. – Roumina Pablo
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