Ports Remain Congested Causing Added Cost & Delay

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Container shipments from Asia to the UK continue to be subject to “unprecedented” delays and significant additional costs, says an article published in The LoadStar.

Space remains an issue

According to Ryan Clark, director and co-owner of UK-based Westbound Logistics said, space still remains an issue, as are ever-increasing rates.

He adds saying “We are constantly finding ourselves apologising to customers. If it’s not rollings, space problems or rate increases, it’s a berthing delay or haulage issue.”

Increasing container rates

Ocean carriers are increasing container rates to UK ports from China as well as adding port congestion surcharges. One carrier source confirmed that the UK port situation was “a major problem”.

Higher rates 

He cites this as the reason for higher rates to the UK. “We are queuing for berths and when we do get alongside working is very slow and we end up having to ‘cut and run’, which costs us money.”

Ship-working managed better 

He added, no such problems at Antwerp or Rotterdam though there is congestion. “They seem to be able to manage ship-working better and the land side is much smoother.”

Congestion surcharge 

MSC’s surcharge advise

MSC advised its customers that from 16 November, all containers from Asia to the UK would be subject to a congestion surcharge of $175 per teu.

Most other Asia-North Europe carriers to the UK are already levying a port congestion surcharge, although some are restricting this to Felixstowe.

Port of Felixstowe congestion

In its latest operational update, Port of Felixstowe warned that the high import volumes “will last at least into December and possibly through into the new year”. 

Understaffing issue

The port is in the process of recruiting and training an additional 104 equipment drivers, But several Felixstowe sources feel that it had been “slow” to recognise the understaffing.

Unused system slots

The port update said that, in the week to 8 November, around a quarter of its 26,448 vehicle booking system slots went unused, with some 16% of those being available on the smaller Landguard Terminal.

Empty container restitution

On the subject of empty container restitution, which last week saw Evergreen forced to “temporarily stop” the return of empty containers to Felixstowe, the port said that if a line exceeded its agreed capacity for empty storage, “receipt would be temporarily suspended”.

Boxes on the quay

One local port agency office boarding clerk said, “we don’t want the boxes on the quay; the line desperately needs them back in China, but often the ship-work is so slow that there is no time to get them on board and we have to sail,” he said.

Meanwhile, some carriers have withdrawn ‘line haulage’, leaving imports stranded on the quay with little hope of shippers obtaining alternative prompt transport.

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Source: The Loadstar