Global container flows struggle to pick up speed, data shows -Breaking
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Jonathan Saul
LONDON (Reuters), – Despite all efforts to improve the speed of global goods movement, they have not been able to address the problem of supply chain bottlenecks resulting from a rising demand for goods retail and the pandemic-related lockdowns.
Not only have delays occurred at the U.S.’s major ports, but they have had knock-on consequences all over the world.
Also, delays are expected from the Lunar New Year celebrations in China and Asia for this week.
Due to congestion, waiting time and delays, the journey from China’s Northern Dalian port to Antwerp was 88 days longer in January than December. Analysis from logistic platform project44 revealed that this compares to 65 days in January 2021.
The transit time between Dalian and the east British port of Felixstowe was 85 days, up from 81 days in December. This compares to 65 days in January 2020.
Container xChange conducted a January survey of 500 respondents in the freight industry and found that 66% expected Chinese New Year factory closings to disrupt shipping supply chains.
Josh Brazil, project44, stated that it will take several years for the supply chain to stabilize as before the pandemic.
According to him, new vessels will not be available on the market before 2024. This means that there is no quick fix.
Brazil claimed that although Europe experiences less port congestion than the major U.S. ports in comparison, southern California congestion causes disruptions to schedules and limits capacity which have global implications.”
Project44 data shows that delays in ports on the U.S. West Coast are also increasing. Oakland saw an increase in delay from just five days ago to over 10 in January. Los Angeles delays remained around 6 days each in January and December.
To clear backlogs, ports have extended their working hours and businesses have attempted to reduce delivery times and diversify suppliers in order to avoid delays.
Leading container group A.P. Moller-Maersk informed its customers that it had difficulties moving goods all over the globe last month.
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