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Logistics Managers and US Shippers Can’t Catch a Break

Logistics Managers and US Shippers Can’t Catch a Break

As a result of record heat levels, manufacturers across various cities and jurisdictions within China to shut down production for days due to government-planned power cuts. This in conjunction with the labor negotiations in Europe are causing the supply chain vise to be squeezed more and more as containers start to pile up. The movements of raw materials and exports are being further slowed due to the ongoing challenges of COVID testing truck drivers.

“The testing has dragged out the timeline of goods movement from days to weeks”

Akhil Nair, Seko Logistics
Courtesy of CNBC – Supply Chain Heat Map
Courtesy of CNBC – Supply Chain Heat Map
Courtesy of CNBC – Supply Chain Heat Map

“Based on the latest issue of Sea-Intelligence’s Blank Sailings Tracker, the number of blanked (canceled) sailings on major U.S. import trades remains constant, and the outlook for the coming 10-12 weeks is very close to being back to ‘normal’. It should, however, be noted that carriers have not yet incorporated (hopefully) planned blanked sailings in connection with upcoming Golden Week ex-China, so it is expected that the number of blanked sailings on trades ex-Asia will increase in weeks 40-42.”

Niels Madsen, vice president of product and operations at Sea-Intelligence ApS.
No Labor Concession
Crane Worldwide Logistics is warning clients that if no agreement comes by the latest deadline of Monday the backlog of import containers bound for the U.S. will spill over well into the first quarter of 2023.

“If no compromise will be made, we can expect further strikes, which will, even more, worsen the already stressed situation in the northern ports. Congestion, vessel schedule and inter-modal operations are already a mess and further strikes will just contribute to it. We will not see a change back to a normal situation before Q1 2023.”

Andreas Braun, Europe, Middle East and Africa ocean product director for Crane Worldwide Logistics.


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