Congestion, Congestion, Congestion!

As we have previously reported, disruption in global supply chains is on the rise due to congestion, lack of equipment, overbooked vessels, and various surcharges coming into play in many areas of the world. Below we have a quick recap of some of the current issues:

New Zealand: Severe disruption in vessel schedules continues as a result of berthing delays, predominantly in Auckland and Sydney. Additionally, we are seeing equipment supply shortages and port omissions in the Nelson area, which is a trickle down effect of the delays in Auckland and Sydney. The situation is fluid, with vessel schedules changing constantly, so please plan for extra time and monitor your shipment status. For a detailed report from the ground in NZ, please click here.

Australia: Besides port delays in Sydney, the area is experiencing a significant heat wave as the summer season begins. Remember to protect your cargo, either by shipping in reefer containers or using insulation. Equipment is also becoming scarce, especially for reefer units. Shipping lines are sending empty equipment back to Asia to accommodate the export surge rather than using empty equipment for outgoing loads.

Equipment Imbalance Surcharges: Carriers are implementing equipment surcharges in various areas, generally in the $100/TEU range. We expect more carriers to follow, so again, please plan for additional costs during the next months. Should you want any specific information on equipment issues or announcements from steamship lines, please let us know.

Global vessel schedules: Schedule reliability is at a low point, with congestion at transshipment points and terminals, and skipped port calls at an all-time high. Dwell times to move containers from port to rail continue to run from 5-14 days in some ports, and truckers can wait days to get appointments to get into terminals to pick up or deliver cargo. With COVID-19 continuing to run rampant, we are also seeing disruptions in services such as trucking, warehousing, carrier operations, and port operations. It is frustrating to experience delays during this busy time of year, but please plan as much as possible for added time in your supply chain.