Growing congestion, container shortages, and high spot rates: Suez Canal closure continues to wreak havoc on global shippingEverstream Team
Suez Canal Obstruction Continues to Wreak Havoc on Global Shipping
Four weeks after maritime traffic in the Suez Canal, one of the world’s busiest waterways, resumed following the grounding of the Ever Given, an ultra-large container vessel operated by shipping line Evergreen, the repercussions continue to ripple through supply chains in the form of growing port congestion, a shortage of containers, and higher spot rates in both air and ocean freight markets.
Since maritime traffic resumed, container gateways in Europe and Southeast Asia have started to experience congestion issues due to the large number of simultaneous vessel arrivals following the blockage. At the same time, empty containers have been held for longer than usual in European ports, exacerbating scarce availability at Asian export gateways and prompting ocean carriers to cut short port stays in Europe to move equipment more quickly back to Asia. Due to less available cargo capacity on the Asia-Europe ocean trade lane, spot rates have been rising in the ocean freight market. Shippers
How long can shippers prepare for the long-term?
This report examines how these issues will affect global supply chains, evaluates how long the situation may persist, and outlines a range of recommendations for shippers to help mitigate some of its most disruptive impacts amid the current turmoil.
Insights & Key Findings…
- Analysis of growing congestion levels affecting container gateways in Europe and Southeast Asia
- Examination of scarce availability of container equipment
- Overview on spot rates and its impact on air cargo market
- Recommendations for what companies should do to mitigate the risks