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Stresses in the container market
Since 2020 due to COVID-19, and in the UK the additional pressures of Brexit, the logistics industry has operated at full capacity and beyond. The last year presented multiple challenges to every aspect of the freight industry – and there appears little respite as we head into 2022. The first real respite will be indicated by a sustained fall in maritime freight rates, but given the fact that market control has shifted in favour of carriers this is likely to be some time in coming. Since the start of 2021, the industry has responded to a range of stresses that have included, amongst many things, a sustained imbalance of equipment, a brief blockage of the Suez Canal, sporadic port closures and ongoing congestion in numerous nations, together with strong demand for consumer goods from Asia. The last half century has developed a high reliance on standardised freight units for the transport of goods internationally, especially in the maritime mode. The TT Club has highlighted that where containers are in short supply, those depending on the arrival of an empty unit for packing and dispatch of goods might take a more lenient approach to pre-packing inspection, in the knowledge that an immediate replacement might not be available. The consequences of inadequate controls will be varied. There are concerns that container shortages are leading to both a slip in maintenance standards and the retention of some older containers that are ready for retirement
supply chain. Ensuring that controls, processes, records and, importantly, maintenance regimes remain valid is critical to underpin safety. Maintenance and condition are vital for all in this complex web of inter-relationships, where control at national level may also be somewhat opaque. Inevitably, as the age profile of container fleets increases, additional maintenance may be required to ensure physical integrity and cargo worthiness. Controls will include many facets, and in the context of the cargo protection, TT recently highlighted the prevalence of wet damage risks where units are inadequately checked and repaired prior to packing. Maintaining the in-service repair standard is required to prevent the risk of serious structural failures. Some of these may be less obviously visible, but corrosion, physical damage or wear to door hinges, pins and locking equipment, for instance, have the potential to cause bodily injury, either where equipment becomes seized and requires force to operate, or in more serious cases where a door becomes detached. Inevitably, the floor of a container is a component that is routinely placed under stress through the packing and unpacking phases; whether pallet or forklift trucks are used, maintaining the strength of the floor panels to prevent them being compromised through weakness or delamination is essential. Similarly, corner posts and castings are vitally important components for effective intermodal operations; the ability to engage twist locks on spreaders for lifts, or for connection aboard containerships and on other modes of transport is critical in mitigating risks of dropping or loosing containers from their fixed position. Another key aspect of structural safety is the stacking capability of the container, which has been subject of regulatory debate over the last decade. While in container yards, units will typically be stacked four or five high, on board
containerships this can extend to 10 or 11 high. A serious structural deficiency in a container towards the bottom of such a stack, in dynamic circumstances, has the real risk of causing a collapse and loss overboard. During the lifetime of a box, it may be expected that a range of commodities will be packed, any of which may stretch the design capabilities, whether loose scrap, high density cargo or flexitanks. Further, whilst the majority of containers will be carried or handled in a fashion aligned to the units themselves – spreader-based lifting equipment, land-based platforms with corner fixings or cellular ships – this is not a given. The recent supply chain crunch has spurred a resurgence of the use of bulk vessels to carry units, presenting various risks including increased stresses on the containers themselves. Shipper-owned containers In addition, the BIFA Secretariat has noted an increase in enquiries from Members regarding shipper-owned containers. These enquiries are varied in nature, including questions regarding responsibilities for the condition of containers and remedying issues should that condition create a problem on a quay, or worse still on board a vessel. The other question often received in connection with such containers relates to responsibility for its restitution, a point which seems to be regularly overlooked by shippers. The humble container, ‘The Box’ as it is sometimes referred to, has facilitated maritime trade since 1956. It is the cornerstone of the market and it is important to ensure before loading that it is fit for purpose and is suitable to ensure safe transport of the cargoes contained within it. BIFA would like to thank the TT Club for allowing the reproduction in this article of information originally published in TT Talk: considering freight containers.
Immediate repercussions One of the immediate repercussions of
equipment imbalances, shortages and increase in new equipment costs has been a tendency for owners and operators to retain equipment that would ordinarily have been retired from service. The direct impact of older equipment being in service could well be negligible, so long as it remains well maintained and serviced in line with the International Convention for Safe Containers (CSC). Additionally, there has been anecdotal evidence of containers being brought back into service from retirement. This practice has the potential to present more challenges for all in the
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March 2022
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