Looming Christmas Crisis Due To Ongoing Congestion Chaos: VesselsValue

Global supply chain issues are threatening Christmas deliveries to retailers, as sustained port congestion seen in the US, and now parts of the UK, continues to disrupt shipping lines and the movement of goods worldwide.

Charlotte Cook, Head Trade Analyst, reports on the continued Containership congestion which is being witnessed around the world at ports including Zhoushan, Ningbo and Long Beach in LA. Felixstowe port in the UK is the latest port to witness delays.

Globally, there is currently a total of 334 vessels waiting comprising of over 2.2 million TEU. “The Containership market has been under immense pressure over the last year, with Covid related pent up demand pushing consumer spending, bad weather in China and Covid related terminal lockdowns contributing to high port congestion.

Felixstowe is one of the UK’s major Container ports, having received 927 Post Panamax, 554 Panamax, 532 ULCV and 484 New Panamax Containerships since the beginning of the year. The majority of Containers into the UK are transporting manufactured goods from export hubs in China, ranging from toys, fitness equipment, electricals and clothing to frozen food, with around 40% of the UK’s containerised imports moving through the port.

Vessels are spending longer in port than usual to unload and depart due to a pile up of Containers in port, causing disruptions to liner schedules and further reducing vessel availability. Since the beginning of the month, 31 vessels have moved through Felixstowe, equating to 281,408 total TEU vessel capacity. This is 45% less than the same period in 2020, and 51% less than the same period in 2019, suggesting that the port is struggling with turnaround times.

Some shipping lines have reported that they are diverting ships to other European ports to avoid the Felixstowe bottleneck and keep vessels moving. Marchen Maersk (18,340 TEU) was sailing en route from Tanger Med, changing course from Felixstowe to Wilhelmshaven, Germany, on the 13th October in a bid for a faster discharge.”

Things that take longer tend to cost more, so being forced to make decisions to change vessel itineraries and getting held up in congested ports can be costly for shipping lines. Retailers also make the biggest proportion of the sales at this time of year, so if retailers struggle to source enough stock and profit margins lessen, we could see the price trickle back to the consumer.

We may also see an increase in the use of alternative modes of transport to get products in stores, such as rail and air freight, although distribution issues are simultaneously impacting most parts of the supply chain.

Press Release

Disclaimer :
The information contained in this website is for general information purposes only. While we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.

Latest Shipping News You Would Like:

U.S Navy Accuses Iranian Vessels Of Harassing Its Marine Attack Helicopter With Lasers

Posted on September 29, 2023

The vessels of IRGC shone a laser several times at a US attack helicopter as it was carrying out its routine operation in the international airspace yesterday, over the Gulf.

European Maritime Companies Ditching Toxic Ships On Bangladesh Beaches, Killing Workers

Posted on September 29, 2023

European maritime majors are now ditching old vessels for scraps on Bangladeshi beaches in polluting and dangerous conditions that have taken the lives of workers pulling them apart, informs Human Rights Watch.

HII Achieves Construction Milestone For Virginia-Class Submarine USS Arkansas

Posted on September 29, 2023

Newport News Shipbuilding has hit a significant and new milestone in the building of a Virginia-class sub dubbed Arkansas (SSN 800).

Improperly Declared Dangerous Goods Putting Lives At Risk In The Supply Chain

Posted on September 29, 2023

Over the past decade, containership fires have seen a disturbing rise, with a notable number resulting in casualties and total losses.

NYK To Trial Mooring System To Suppress Hull Shaking With Jera And Trelleborg Marine Systems

Posted on September 29, 2023

At many ports facing the open sea, hull shaking caused by sea swells and long-period waves has led to cargo-handling interruptions and ship evacuations, reducing port operation efficiency.