A pile of U.S.-bound export containers accumulating at the German and Netherland ports could take months to clear out, CNBC reported.
“U.S. importers need to look four to five weeks in advance to see if there is a vessel available,” said Andreas Braun, Europe, Middle East, and Africa Ocean product director of Crane Worldwide Logistics. “This is not normal. Also, if you are lucky to book a slot on a vessel you then have to locate an empty container which can be in the hinterland.”
Driven by labor delays and suspensions, findings of the pile-up were made on bill of ladings provided by ImportGenius. Other challenges faced by port officials include vessel arrival delays, container processing, container and truck availability.
According to a recent CNBC report, the products reported to be on standby for exportation at the port include auto components, such as lithium batteries, fully assembled automobiles and various car parts from renowned brands like Mercedes, BMW and Ford. Home decor, flooring and furniture from Ikea were also included.
“Unfortunately, moving containers empty or full of the hinterland or at the ports is also a problem,” the press release explains. “Rail congestion, a result of labor slowdowns and strikes has left the rails clogged. The congestion, which has shrunk the availability of containers, is not only a source of concern for importers, but the perceived lack of containers can push up rates. These costs are passed over to the consumer, which adds to inflation.”
According to Sea Intelligence, in charge of keeping track of vessel schedules, approximately 30-40% of all global schedules were scheduled on time. Braun predicts the container’s arrival date to be between seven and nine days after departing on a vessel.
“They cannot bring any containers into the port (Hamburg and Bremerhaven) ahead of time,” Braun said. “They have to wait seven days prior to departure and even then, that does not automatically mean it will load on the vessel because rail yard capacity is high and there is congestion.”
The German trade union Verdi and the Central Association of German Seaport Companies (ZDS) initiated the sixth round of negotiations earlier this month.
“Yes, the strikes have had a big impact, but the congestion has piled up so much that even if there were no more strikes, the situation would remain chaotic for the next three months,” Braun said. “Some carriers have deviated volumes away from the German ports to Antwerp and Rotterdam which has caused an increase in congestion. This congestion has created a domino effect of delays. Vessels leaving Europe to the U.S. East Coast will be behind there as well. There is no catching up.”