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The freight industry is facing an unprecedented container loss crisis in seven years. Last year, more than 3,000 boxes were found at sea and, so far in 2021, more than 1,000 containers have fallen overboard. Such incidents disrupt the supply chains of hundreds of US retailers and manufacturers such as Amazon and Tesla.
There are many reasons why these types of incidents have increased so dramatically. The weather is becoming more unpredictable and the ships are getting bigger, allowing them to build container towers taller than ever. But the situation is exacerbated by the sharp rise in e-commerce, which has dramatically increased consumer demand during the pandemic and increased the need to deliver products by shipment as quickly as possible.
“The increase in container traffic shows that these giant container ships are loading much more than before,” said Clive Reed, founder of Reed Marine Maritime Casualty Management Consultancy. “Ships are under commercial pressure to be on time and make more sea voyages accordingly.”
When strong gusts of wind and large waves crashed into a 364-meter container ship, the One Apus, in November last year and lost more than 1,800 containers, images showed thousands of steel containers falling under the ship like Lego blocks, some breaking into pieces. The incident was the worst since 2013, when the container ship MOL Comfort broke in half and sank in the Indian Ocean with its total cargo of 4,293 containers.
In January this year, Maersk Essen lost about 750 containers while sailing from Xiamen, China, to Los Angeles. A month later, 260 containers fell from the Maersk Eindhoven when it lost control of the stormy waters.
The need to deliver cargo quickly creates dangerous conditions that can instantly turn into catastrophe, cargo experts say. The hazard is caused by a variety of reasons, such as when cargoes incorrectly stack containers on top of each other, or when captains, feeling pressure from charterers, deliberately do not move the ship away from storms in an attempt to save fuel and time . the experts say. One wrong move can endanger both the cargo and the crew itself.
The probability of accidents increases as conditions for tired seafarers clearly deteriorate during a pandemic. According to Allianz Global Corporate & Specialty, human error accounts for at least three-quarters of accidents and fatalities in the industry.
Recently, almost all accidents have occurred in the Pacific, a region where heavy traffic and adverse weather conditions are becoming a disastrous combination. The sea route, which connects Asian economies with North American consumers, was the most profitable for shipping companies last year. Chinese exports have flourished as the pandemic boosts demand for all the goods people need for work from home, science and entertainment.
These trips are not always easy, but they have become even more dangerous due to changing weather conditions. The intensified movement from China to the United States last winter coincided with strong winds over the North Pacific, the strongest since 1948, increasing the likelihood of stormy waters and larger waves, said Todd Crawford, chief meteorologist for The Weather Company.
Compared to 226 million. the loss of roughly 1,000 container boxes shipped each year can seem like a drop in the bucket. “A very small percentage is being lost,” Jacob Damgaard, deputy director of Britannia P & I’s loss prevention division, said at a conference in Singapore on April 23. – But it’s almost 60 percent. monetary values of all container incidents.
At an average of $ 50,000 per container, One Apus is estimated to have lost $ 90 million. The value of dollars alone is the biggest loss in recent history, says Jai Sharma, a partner at Clyde & Co., a London-based maritime law firm. So far, the total loss for this year is 54.5 million. According to the Bloomberg news agency.
The problem has received more attention after the 400-meter long container ship Ever Green crossed the Suez Canal in March, highlighted the vulnerability of the freight industry. The giant ship had been blocking movement in a vital water artery for nearly a week, and the impact of the incident on world trade is still being felt.
To date, none of the recent container incidents have been directly linked to security vulnerabilities. The International Maritime Organization (IMO) said it was still awaiting the latest results of the accident investigation and warned not to rush to conclusions until then.
However, many experts argue that the situation is becoming increasingly dangerous due to the pressure on supply chains that has been felt since the beginning of the pandemic. When ships are caught in difficult weather conditions, captains can choose to retreat from impending dangers. But there is a well-established approach: “Don’t beat the storm, fly through it,” said Jonathan Ranger, head of shipping for American International Group Inc. (AIG), an insurance and finance company.
“When potentially poorly maintained container cabling and securing systems contributes to this, then tragedy is just around the corner,” he told an industry conference in Singapore.
Overload
A ship with even taller container towers can become particularly unstable during a storm – rising waves one after another can cause the ship to suddenly tip, threatening to topple the containers. The situation becomes even more dangerous if the mass of the container tower is concentrated at the top. This can happen when the weight of the cargo does not meet the parameters specified in the waybills, and such discrepancies are, according to many in the industry, all too common.
“You don’t see what’s inside the containers,” said Captain Arnaldo B. Romero, who sailed from Japan to South America late last year. “So when the load is heavy and the cargo planning officer raises it high, the ship can take control, we can no longer handle the situation.”
Overworked crews also increase risks. With staff reductions and an increase in container capacity on deck, it is becoming increasingly difficult for crews to inspect each fastener and tighten it properly, says Neil Wiggins, CEO of Independent Vessel Operations Services Ltd.
There are also risks to the health and safety of seafarers. When a 12 meter long container leans high during a heavy storm, it is one of the most horrific experiences a captain and crew face. Post-traumatic stress disorder is a common occurrence among crew members, says Philip Eastell, founder of Container Shipping Supporting Seafarers.
Growing concerns are forcing the industry to urgently address the situation.
“River traffic is completely different now than it was ten years ago,” said Rajesh Unnis, founder of Synergie Marine Group, which provides services to shipowners. – How do we adapt as an industry? It is convenient to blame the captain, but it is necessary to consider how the port infrastructure should be changed, taking into account the transit of the ships ”.
The IMO, the United Nations agency responsible for regulating cargo transportation, states that countries whose flag vessels fly are responsible for issuing ship safety certificates, while ports where they call are responsible for enforcing the rules. container loading.
According to the agency, its freight transport subcommittee periodically reviews container-related issues and plans to hold its next meeting in September.
According to AIG’s Ranger, companies must be prepared to avoid storms and properly maintain ships. “These ships are designed to carry containers, and those losses, dare I say, are unacceptable,” Ranger said.
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