The labor slowdown and strikes at German and Netherlands ports are creating a huge pile of export containers bound for the US that will take months to clean up.
According to bills of lading obtained through ImportGenius, some of the items exported from these ports are critical components for the auto sector such as lithium batteries, fully assembled automobiles, as well as a wide variety of auto parts and chassis. mercedes, bmwAnd Wade Were listed in a recent US Customs filing.
“U.S. importers will need to check four to five weeks in advance to see if a vessel is available,” said Andreas Braun, Europe, Middle East and Africa ocean product director at Crane Worldwide Logistics. “It’s not normal. Plus, if you’re lucky enough to book a slot on a ship you’ll have to find an empty container that might be in the hinterland.”
Home decor, flooring, and furniture from Ikea were also listed.
“The congestion from these ports is spreading to other major ports in Europe,” Braun said.
Slowdowns in vessel arrivals, container processing, and container availability as well as trucking are common problems.
According to C-Intelligence, which tracks vessel schedule reliability, only 30-40% of all global events take place on time. Braun said this rush will only further prolong the lead time in logistics planning.
Unfortunately, transporting empty or filled containers to and from the hinterland or ports is also a problem. Rail congestion, labor slowdown and strikes have resulted in rail closures.
“They cannot bring any containers to the port (Hamburg and Bremerhaven) ahead of time,” Braun said. “They have to wait for seven days before departure and even then it doesn’t mean it will be loaded on the ship because the rail yard has a high capacity and is overcrowded.”
Congestion, which has reduced the availability of containers, is not only a matter of concern for the importers, but the perceived shortage of containers could push up the rates. These costs are transferred to the consumer, which adds to inflation.
“Yes, the strikes have had a big impact, but the crowds have grown so much that even if there are no more strikes, the situation will remain chaotic for the next three months,” Braun said. “Some carriers have diverted volumes from German ports to Antwerp and Rotterdam, leading to increased congestion. This congestion has created a domino effect of delays. Ships leaving Europe on the US East Coast will also lag behind there. There’s no catch,” he said.
Once a container is on a vessel, Braun tells CNBC, US importers can expect their containers to be between seven and nine days late.
German trade union Verdi and the Central Association of German Seaport Companies (ZDS) entered into their sixth round of talks on Tuesday.
CNBC Supply Chain Heat EmOneThe P data providers are artificial intelligence and predictive analytics company Everstream Analytics; global freight booking platform Freightos, creator of the Freightos Baltic Dry Index; logistics provider OL USA; supply chain intelligence platform FreightWaves; supply chain platform Bloom Global; third-party logistics provider Orient Star Group; marine analytics firm MarineTraffic; Marine Visibility Data Company Project44; Maritime transport data company MDS Transmodel UK; Ocean and air freight benchmarking analytics firm Zeneta; C-Intelligence APS, a leading provider of research and analysis; Crane Worldwide Logistics; and air, DHL Global Forwarding, and freight logistics provider Seiko Logistics.
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