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Updated: Experts warn of port chaos for weeks to come

[ March 30, 2021   //   ]

Logistics UK is warning that the clearance of so many ships at one time following the Ever Given incident could cause congestion at ports along the supply chain, with a resultant slowdown in port productivity. General manager for Public Policy Alex Veitch, said that with more than 300 ships stuck behind the ship waiting to travel through the canal, the impact of the incident will continue to be felt around the world for some weeks.
He added: “Any delay to deliveries from the Far East will mean delays in picking up goods from UK ports for export, as well as slowing down deliveries into the UK’s supply chain. Goods affected by the delays will include seasonal stock for UK retailers, so gaps may start to appear unless the situation is resolved quickly.”

Analysts Project44 put the retail value of containerised goods stuck in transit at over $83 billion while the daily operating costs of delayed vessels at over $5.5 million. Some55 vessels were currently anchored at Rotterdam.

Moreover, it said, “with reroutes further complicating scheduling, boats currently making their way around Africa will soon join the competition for limited discharging capacity at ports where supply chain breakdowns will take place in the weeks ahead.

“Just because your cargo is moving again doesn’t mean you can breathe easy. Understanding and monitoring port congestion over the next few weeks will inform us about how large the shockwaves from this incident are going to be. As this saga unfolds, it will take on increasingly global proportions.”

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