Impact On Shipping: Congestion And Capacity Issues

Pinch points in supply chains have led to a surge in sea-air movements – but with the Chinese October holiday and Covid still looming, there is mounting concern that the spike will bring further congestion. Terminal utilisation rates are also set to increase over the next few years, putting further pressure on the global port congestion crisis. As a result, average utilisation rates will increase from 67% to over 75%. One forwarder said that, with the traditional holiday peak approaching, the impact of congestion in Bangladesh and Shanghai had been more acutely felt, leading to “urgent” efforts to source alternative modes and routes to market. But with the rise in sea-air and the general supply chain disruption, the forwarder warned that “new pinch-points” were looming in the run-up to China’s Golden Week holiday. Due to increasing difficulties, shipment arrival/departure ports are subject to change. Shipments will also be subject to space and availability where roll overs may apply, this situation is out of F.S. Mackenzie’s control although we will do our best to secure space for our customers where we can. F.S. Mackenzie also will advise where possible UK Port Congestion fees where applicable for both FCL and LCL Import shipments.

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