The global container logistics network is currently under pressure in several locations. In China, severe typhoons are causing disruptions in and around major container ports, while the Panama Canal is experiencing increased traffic and limited capacity. As a result, the risk of delays and longer transit times is rising.
Congestion in Chinese container ports
In recent weeks several typhoons have hit China. Typhoon Saudel recently caused new disruptions in various regions. Significant delays are expected especially around Shanghai and Ningbo. The port of Xiamen may also be affected.
The severe storms have disrupted and delayed sailing schedules. Large ports such as Shanghai and Ningbo have been temporarily shut down multiple times for safety reasons. Backlogs are increasing and hinterland transport and other port operations may also be delayed.
These storms come on top of already existing global port congestion. At present, around 4.3 million TEU of container capacity is awaiting processing, further increasing pressure on the international container chain.
Panama Canal also under pressure
Disruptions are not limited to Asia. The Panama Canal is under pressure as well due to a combination of increased shipping and ongoing drought. Geopolitical developments have led more shipping lines to choose this route as an alternative, while low water levels limit the number of vessels that can be processed daily.
According to Panamanian authorities, more than 100 cargo vessels are now waiting offshore and waiting times can be up to about 10 days. Additionally, the number of permitted transits has been reduced, further straining available capacity.
Plan ahead
The combination of port congestion, weather conditions and limited capacity is causing less reliable schedules and longer transit times worldwide.
Do you have a shipment planned in the coming period? Book as early as possible. By planning in good time we increase the chances of reserving capacity and reduce the risk of delays. This helps us maintain as much control as possible over your logistics planning.
