Since the beginning of this year, due to the impact of the epidemic and inflation, overseas consumers’ online shopping demand has continued to decline, and sellers’ shipments have decreased, which has also led to a shortage of goods in the freight forwarding and logistics market. The port congestion problem that has troubled sellers for a long time last year has finally been solved. Somewhat relieved.
However, recent strikes by workers in many countries have once again spread the problem of port congestion around the world.
According to Clarksons’ Container Ship Port Congestion Index, 36.2% of the global container fleet was stuck in ports as of the end of June, up from 31.5% in the years before the COVID-19 pandemic from 2016 to 2019.
01 European ports are experiencing historic congestion
Last month, the Port of Rotterdam, Europe’s largest port, was in emergency. The yard space was 85% full, and the utilization rate of refrigerated containers was 100%. While pickup rates have improved, transshipment and import cargo are also experiencing long dwell times, causing deep anxiety among many in the European shipping industry.
The latest report released this week by the Institute for the World Economics (IfW) in Kiel, Germany, further reveals how serious the historic congestion situation in Europe is.
The report showed that more than 2% of global shipping capacity was at a standstill in the North Sea last month, a “very rare” situation for ports there, with no end in sight to container traffic congestion and port congestion in other regions also intensifying.
The ships were unable to load or unload cargo due to unusually long congestion, a troubling reminder that supply chains remain severely clogged even as pandemic lockdowns become a distant memory.
This may have an impact on future trade shipments.
02 North Sea congestion will affect overseas trade
Vincent Stamer, head of research at the IfW Institute for the World Economy in Kiel, Germany, said, “Overall, global trade showed a slightly positive trend in June, but heavy congestion, high freight costs and resulting export bottlenecks hampered trade. , especially trade with Europe.”
Vincent Stamer also pointed out that shipping congestion was very rare in the North Sea region in the past. For Germany and the EU, this will mainly affect overseas trade, especially trade with Asia.
For example, those shipping consumer electronics, furniture or textiles from Asia. To further complicate matters, the Kiel Institute for World Economics report points out that the number of container ships plying the Red Sea route, the most important trade route between Europe and Asia, is also lower than expected under normal circumstances. About 20%.
The last time there was such a big gap was back at the beginning of the epidemic two years ago.
Vincent Stamer believes that “a decisive factor may be that due to the 40-day voyage from China to Europe, the negative impact of the epidemic still exists.
Container ship congestion in the North Sea and the growing importance of rail transport due to the new Belt and Road Initiative are likely to reduce shipping volumes on the Red Sea route. “This is by no means a good thing for the European economy, which is currently in trouble.
According to the latest trade data from the Kiel Institute for World Economics, the global trade index increased by 0.4% in June from the previous month, but Europe performed the weakest. The EU’s overall exports have declined (-0.5%), and the import growth has also been smaller (+ 0.8%).
In contrast, both the United States and China showed strong growth in imports and exports. Dirk Jandura, chairman of the German Federal Trade and Wholesalers Association (BGA), said earlier this week, “Although German foreign trade continues to remain strong during the crisis, the outlook is no longer optimistic.”
03 Long Beach, USA, Los Angeles port congestion
At the same time, a large number of containers have accumulated at the ports of Los Angeles and Long Beach.
The two ports handle about 40% of the United States’ total container import traffic and 25% of the total export volume. Problems have become increasingly prominent due to inefficiency in operations.
Recently, a freight forwarder said: Currently, various terminals in Long Beach, USA are severely blocked, and some terminals have been completely paralyzed. Even though a batch of container pick-up vehicles have been added in advance and efforts have been made to minimize the impact, it is still difficult to return to normal according to the current rhythm. The efficiency of lifting cabinets.
In addition, the situation at the Los Angeles docks is not optimistic.
It is understood that as of July 1, the total number of imported containers at the Port of Los Angeles terminals was 67,884, of which 26,416 were detained at the terminal for 9 days or more; the number of empty containers in the terminal and in the yards/warehouses outside the terminal was 52,825 indivual.
At present, some freight forwarders have said: “The LA terminal is very slow, no one is working, and the New York terminal cma msa wanhai hapag is not available yet. It is very troublesome, and the fuel cost is expensive. So the truck can do it if it can, and if it can’t, it’s up to you. LAX air freight The inspection probability is high and the checkpoint charges are very touching.”
In this regard, the freight forwarder suggested that the New York terminal can choose COSCO, OOCL, and EVERGREEN. The LA terminal is the most stable only MATSON, EVERGREEN is okay, and OOCL is barely.
Dear cargo owners, you can learn about the specific situation before making your choice.
Maersk recently warned that the possibility of demurrage charges at ports has increased significantly. The media also stated that the fee will be re-evaluated weekly and may be implemented at any time.
�Therefore, cargo owners not only face increased logistics congestion, but also face the possibility of rising logistics costs.
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