The website seatrade-maritime.com has published en extensive article on one of the bigger challenges in the current supply chain. The container congestion caused by the Corona crisis.
Shipping companies pay the price
The willingness of shipping lines to incur direct costs and forego revenue to reduce empty container congestion demonstrates the incredible support shipping lines are providing to keep Australia’s supply chain running.
Empty container congestion a global problem
Empty container congestion is a problem in major ports around the world. This is the result of unprecedented consumer demand driven by a Covid-induced shift from spending on services to spending on goods.
In Sydney, the problem has been exacerbated by weather events and industrial action. Shipping lines are being limited to their contracted container exchanges in order to get back on schedule.
For example, if a ship has two thousand imports and only 2500 exchanges are allowed, then only 500 boxes can be exported.
This leads to congestion
Container congestion is inevitable unless additional calls are made just to accommodate exports. Shipping Australia members are paying for additional vessels and additional port calls to alleviate the problem.
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