APM Terminals sets plan in motion to minimise Red Sea impact

The unrest in the Red Sea is putting pressure on the supply chain to and from Asia and European ports. Container ships from Asia are being forced to take a detour around Africa’s southern tip to avoid attacks, a route that takes around 10 days longer than the regular route through the Suez Canal.

"Since the pandemic, we have good routines and a great habit of quickly adapting to new patterns. The first time that the freight stop had consequences for us was in the second week of the year, as a direct call from Asia did not arrive as usual and arrived eight days after the scheduled time," says Jasmin Mujdzic, Operational Manager at APM Terminals Gothenburg.

How APM Terminals will meet new needs: "evening and weekend service"

To compensate for the longer lead times, some shipping companies have chosen to deploy several smaller vessels, which requires ports to be more flexible. According to Mujdzic, APM Terminals Gothenburg's unique manning pool provides good opportunities for fulfilling the new needs by being able to receive and manage these vessels when needed, even in the evenings and on weekends.

"The unrest creates fluctuations in volumes, but since the pandemic we have good routines and a great habit of quickly adapting our operations to new patterns. This, combined with a very close dialogue with the shipping companies, means that we are well positioned to keep our flows at the terminal going smoothly, both now and in the future," he says and continues:

"At the same time, we are very humble about the challenges that the situation may bring. The upcoming Chinese New Year is expected to bring major fluctuations in volumes. This year we are anticipating that these fluctuations will be more tangible than usual."

How will the situation affect APM Terminal’s customers?

There is currently a surplus of tonnage on the market, which aids shipping companies in deploying extra vessels and, as a result, the ability of export companies to get their goods out. However, delays in imports are expected, which can especially impact some of the industries waiting for critical components. In addition to delays, the situation also brings significantly higher freight prices.