Europe’s overstretched supply chains are experiencing a double whammy of disruptions as UK transport unions in the ports of Felixstowe and now in Liverpool prepare for labour strikes in response to soaring inflation; according to the analysis published by Container xChange, a container logistics technology platform.
Christian Roeloffs, chief executive, Container xChange warns Europe’s overstretched supply chains are set for more stress.
The strikes Felixstowe and in Liverpool will lead to port closures stretched up to more than a week. Followed by this will be the Golden week in China (1-7 October when the factories are shut) which will further lead to work stoppages in Chinese ports.
Not to forget, the typhoon Muifa that will lead to port closures just ahead of the Golden Week in China where shippers prepare for pre-Golden Week sailings.
“These disruptions will delay the peak season cargo coming from China to Europe. The cargo ships will be diverted to other ports in Europe and the UK, adding pressure to the congestion in the port of Bremerhaven, Hamburg, Rotterdam, and major port hubs where our proprietary data shows the CAx is already at a very high level,” Roeloffs, says.
“The port of Bremerhaven has the highest CAx so far this year at 0.87 as of week 37. Clearly, the diversions are evident ahead of the strikes. At the port of Hamburg, the CAx of 0.87 is the highest since 2020 (2021 was 0.82 and 2020 was 0.37 at week 37). The CAx at the port of Rotterdam is again at 0.83, the highest in three years.
More from Global Cold Chain News on the widespread disruption to trade.
