Outer Harbor Terminal announces closure in Port of Oakland

source: www.baycrossing.com

The Port of Oakland has released an announcement stating that Outer Harbor Terminal (formerly known as Ports American Outer Harbor) is ceasing maritime terminal operations in Oakland in approximately 30 days. The closure will create higher congestion for shipments arriving in Oakland and most likely will lead to many truckers implementing a port congestion fee.

The port expects more operational changes to come, in response to the changing maritime industry. Vessels under Outer Harbor Terminal are expected to shift to smaller, adjacent terminals: TraPac, Everport, or Oakland International Container Terminal/SSA. However, these terminals hold significantly less capacity, likely impacting the turn time.

This report comes shortly after Everport Terminal (formerly BEN Terminal) ceased its operations from the end of last November to January.

According to Topocean’s Samuel Chang, General Manager of Customer Service in San Grancisco, Outer Harbor Terminal’s closure “will be a bigger hit to us due to [the terminal being] at least three times bigger than Everport…The congestion will take forever if more vessels go through SSA B-58 OICT terminal. I do expect nightmare to come.” Chang will continue to give us updates on the terminal’s condition as well as final operation day.

Steep Decline in Asia-Europe Spot Rates

vessel

source: www.seatrade-maritime.com

Spot freight rates from ports in Asia to Europe fell by 24.4% with $932 TEU, according to data from Shanghai Shipping Exchange. The containers, carrying goods that include TV’s to sportswear, made more loss than profit in the year before.

“Insufficient measures to reduce ship capacity will lead to an acceleration of freight rate reductions and industry-wide losses in 2016,” warns shipping consultancy Drewry.

In the past 12 months, spot rates have fell to the lowest value in most major trade routes since the recession in 2009. Drewry predicts that carrier revenue will continue to slowly steep further this year.

Even the world’s biggest carrier, Maersk Line, reported a 61% decline in profit in the third quarter last November.

Reuters reports no relief for shipping companies is seen in the current year.

Sources:

UPDATE 1-Asia-Europe container freight rates drop sharply, Reuters

Asia-Europe Box Rates Down Sharply, Marine Link

Slow Growth Hits Big Ports

Port

Source: www.ship-technology.com

Port traffic among the world’s busiest ports experienced the smallest growth since the recessional 2009. According to shipping industry data provider, Alphaliner, container traffic rose 0.8% for the entire year. As carriers strain to find new customers to fill their ships with cargo, weak demand has left their vessels idle.

Jakarta was one of the ports with the greatest declines, falling to 16.6% compared with the last year. Another was Hamburg where traffic steeped 9.2%. However, ports including “New York, Ho Chi Minh City, Vietnam and Port Kelang, Malaysia saw double-digit percentage growth.”

Source:
Port Traffic Grew at Slowest Rate Since Recession in 2015, WSJ