You may have noticed delays in shipments or order movements internationally. That’s because of a situation evolving across the world’s shipping ports, according to the S&P Journal of Commerce.
‘Highest bidder’ winning on Asia-Europe ocean trade as space, equipment shortages deepen – JOC.com
Short Version: Shipping across Asia-to-Europe trade routes now takes longer and costs more.
The change to shipping conditions affects most of the points in the world’s supply chain. As such, it’s important for everyone to know what’s going on.
What’s Happening: Shippers and Carriers Clashing on Price and Product Flow
Ports do brisk business each day. In the past, many ports would create contracts with shippers based on their activity & shipping volumes.
Two factors have risen to cause pressure at ports:
- Supply snags as the number of available ships decreases
- Some ports rejecting previously-held contracts & raising fees
The result? Ports across Asia and Europe are backed up, causing delays in ship arrival times & product movements.
The situation is similar to pandemic-era supply squeezes. Shippers must now take a “highest bidder” approach if they want to get ships loaded & through ports in a timely manner.
From the article:
“The steady rise in rates and the opportunistic behavior of carriers is causing growing frustration among cargo owners as they struggle to find both equipment and space on ships leaving Asia. Even having cargo under contract does not guarantee loading.”
A major shipping snarl affects all products to some degree. That includes delivery of some forklifts, forklift parts, and related supplies. It also furthers the existing equipment shortage, since some manufacturers face delays getting components.
No Clear End in Sight; All Supply Chain Links Frustrated
If you’ve experienced product shipping issues recently, this may be the reason why. You can find more details at JOC.com and OECGroup.com.
We’re keeping an eye out for any improvements. For now, the best recommendation we could make is to order product as early as you can.
Disclaimer: Industrial Forklifts is not a freight broker and does not possess comprehensive information on all matters related to freight and logistics. The information we share is derived from public data and news sources, intended solely to inform and keep our customers and dealers aware of relevant developments. For specific and detailed guidance, we strongly recommend consulting with your local freight broker. Industrial Forklifts cannot be held responsible for any decisions made based on the information provided on our platform.