Three weeks ago, the Suez Canal Administration announced that it had passed through all the ships waiting to rescue the giant container ship Evergiven. It was stuck in one of the world’s most important transportation arteries on March 23 and closed the canal for about a week, through which more than ten percent of global trade passes through.
The effects of the congestion in Suez are yet to come, he warns of Maersk’s problems
More than 400 other ships were waiting to be rescued, and dozens had chosen alternative routes around the Cape of Good Hope at the southern tip of Africa, extending their voyage by nearly two weeks. These delays continue to affect major ports of the world.
Cargo is piling up mainly in Singapore, where most of the cargo ships that had been stuck in a “traffic jam” headed in front of the Suez Canal at the end of March. The newspaper wrote that a fifth of the jammed container ships were destined for the Asian capital Financial times Pointing to the data on the project44 platform, which examines companies’ supply chains.
Source: E2open (1 TEU, or twenty foot equivalent unit, is a unit of freight capacity used in shipping, corresponds to one container 6.1 m long)
However, ports around the world are feeling the impact. Keith Svedsen, chief operating officer at APM Terminals, the world’s third-largest container terminal operator, said the major wave in Europe was felt last week. Cargo piled up mainly in the northern and Spanish ports.
Svedsen added that due to the large increase in the volume of landings, the ports in Malaysia, Oman and Morocco are “in an emergency”. Antwerp of Belgium and the Netherlands expect the largest offensive to begin this week.
Record expensive containers
Companies whose supply chains are already undergoing will face significant pressures due to the pandemic and quarantine restrictions further complications. In the shipping business, one of the consequences is the lack of empty containers, which carriers have been struggling with since last fall.
Average shipping costs from Southeast Asia to Northern Europe (one 40ft container)
As a result of this, shipping rates have doubled in recent months. The biggest increase was in the transportation of goods from Asia to Europe, with the cost of one 40-foot (12.2 meters) container rising to nearly $ 8,000, which is 450 percent more than last year. This comes from data from the Freightos platform, which monitors costs over an extended period of time.