Shipping Containers Plunge Overboard as Supply Race Raises Risks

Discussion in 'Intermodal Trucking Forum' started by TheLoadOut, Apr 27, 2021.

  1. TheLoadOut

    TheLoadOut Road Train Member

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    Containers piled high on giant vessels carrying everything from car tires to smartphones are toppling over at an alarming rate, sending millions of dollars of cargo sinking to the bottom of the ocean as pressure to speed deliveries raises the risk of safety errors.

    The shipping industry is seeing the biggest spike in lost containers in seven years. More than 3,000 boxes dropped into the sea last year, and more than 1,000 have fallen overboard so far in 2021. The accidents are disrupting supply chains for hundreds of U.S. retailers and manufacturers such as Amazon and Tesla.

    There are a host of reasons for the sudden rise in accidents. Weather is getting more unpredictable, while ships are growing bigger, allowing for containers to be stacked higher than ever before. But greatly exacerbating the situation is a surge in e-commerce after consumer demand exploded during the pandemic, increasing the urgency for shipping lines to deliver products as quickly as possible.

    “The increased movement of containers means that these very large containerships are much closer to full capacity than in the past,” said Clive Reed, founder of Reed Marine Maritime Casualty Management Consultancy. “There is commercial pressure on the ships to arrive on time and consequently make more voyages.”

    The need for speed is creating precarious conditions that can quickly bring disaster, according to shipping experts. The dangers range from stevedores incorrectly locking boxes on top of one another to captains not deviating from a storm to save on fuel and time as they face pressure from charterers, they said. One wrong move can put cargoes and crew at risk.

    The chances for mishaps are increasing as exhausted seafarers face deteriorating conditions during the pandemic. Allianz Global Corporate & Specialty estimates that human error contributes to at least three-quarters of shipping industry accidents and fatalities.

    After gale-force winds and large waves buffeted the 364-meter One Apus in November, causing the loss of more than 1,800 containers, footage showed thousands of steel boxes strewn like Lego pieces onboard, some torn to metal shreds. The incident was the worst since 2013, when the MOL Comfort broke in two and sank with its entire cargo of 4,293 containers into the Indian Ocean.

    In January, the Maersk Essen lost about 750 boxes while sailing from Xiamen, China, to Los Angeles. A month later, 260 containers fell off the Maersk Eindhoven when it lost power in heavy seas.

    Almost all the recent incidents have occurred in the Pacific Ocean, a region where the busiest traffic and the worst weather collide. The sea route connecting Asia’s economies to consumers in North America was the most lucrative for shipping companies last year. China’s exports have gone on a tear as the pandemic fuels demand for all the stuff people need to work, learn and entertain from home.

    The journey has always been rough, but it’s become more perilous due to changing weather patterns. The rise in traffic from China to the U.S. this past winter coincided with the strongest winds over the Northern Pacific since 1948, increasing the likelihood of rougher seas and bigger waves, said Todd Crawford, chief meteorologist at The Weather Company.

    With 226 million container boxes shipped each year, the loss of 1,000 or more can seem like -- well -- a drop in the ocean. “That’s a very small percentage lost,” said Jacob Damgaard, associate director of loss prevention at Britannia P&I at a conference in Singapore on April 23. “But it’s almost 60% of the monetary value of all container incidents.”

    At an average of $50,000 per box, the One Apus was estimated to have lost $90 million in cargo alone, the highest in recent history, according to Jai Sharma, a partner at maritime law firm Clyde & Co. in London. Losses so far this year have totaled an estimated $54.5 million, Bloomberg data show.

    Many experts say the situation has grown more dangerous because of pressure on supply chains since the pandemic. When ships approach heavy weather, captains have the option to steer away from the danger. But the attitude is “don’t go around the storm, go through,” said Jonathan Ranger, head of marine Asia Pacific at American International Group Inc.

    “When you combine that with potentially poor maintenance of twistlocks and cabling required to secure these boxes, then it’s an accident waiting to happen,” he said at the industry conference in Singapore.

    With boxes stacked ever higher, a ship can become more unstable in a storm -- wave after wave can cause the vessel to roll at steep angles, putting strain on the securing of containers. The situation becomes even worse if the stack is top-heavy. That can happen when there’s incorrect weightings on the bills of lading for containers, which many in the industry say happens too often.

    “You cannot see inside the containers,” said Arnaldo B. Romero, a captain who sailed from Japan to South America late last year. “So when the cargo is heavy and the officer in charge of cargo planning puts it high up, during the rolling of the ship, we may not have control anymore.”

    There’s also the health and safety of the seafarers at stake. The toppling of multiple tiers of 40-foot containers during a raging storm is one of the most terrifying experiences for a captain and crew. Post-traumatic stress disorder among crew members is common, according to Philip Eastell, founder of Container Shipping Supporting Seafarers.

    Concern is growing for the industry to address the situation.

    “Traffic on the seas is different from what it was 10 years ago,” said Rajesh Unni, founder of Synergy Marine Group, which provides services to ship owners. “How do we adapt as an industry? It’s convenient to blame the captain, but we need to look at how the port infrastructure needs to change, how ships transit.”

    The IMO, which is the United Nations’ agency responsible for shipping regulations, says countries whose flags the ships are sailing under are responsible for issuing safety certificates for vessels, while ports that the vessels call at are responsible for ensuring rules on loading containers are followed.
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  3. Flat Earth Trucker

    Flat Earth Trucker Road Train Member

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    So, if they just slow it down and take all necessary precautions, then this great loss wouldn't be occurring.

    People so smart.
     
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  4. Magoo1968

    Magoo1968 Road Train Member

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    Must be scary unloading those tipped cans
     
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  5. not4hire

    not4hire Road Train Member

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    You know what's worse? When it doesn't and it's merrily bobbing along *just* below the surface.


    I actually have some equipment coming back from Chile and I'm wondering how much to get one of the crew to leave the twistlocks undone and help it overboard? :biggrin_25523:
     
  6. God prefers Diesels

    God prefers Diesels Road Train Member

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    A few thousand out of millions? Whoop dee ####ing doo. Sounds like a journalist looking for a problem where no problem exists.
     
  7. Old Man

    Old Man Road Train Member

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    My daughter sells children’s books and all their new releases were on a ship that lost containers, this was 2 months ago and still waiting for load to be reworked and they taken to LA to wait inline to get unloaded.
    It’s a small amount until it affects you.
     
  8. JoeyJunk

    JoeyJunk Road Train Member

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    Do they recover the lost containers or just leave them there?
     
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  9. TheLoadOut

    TheLoadOut Road Train Member

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    My guess is it's cheaper to leave them at the bottom of the ocean. Whatever is inside is ruined anyway.
     
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  10. not4hire

    not4hire Road Train Member

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    A rinse and wax and she'll be good as new...

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  11. RocketScott

    RocketScott Medium Load Member

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    I try not to think about that when sailing offshore. The chance of hitting one is small, but never zero
     
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