Supply chain congestion poses health risks for shipping

Living as we are in unprecedented times, it’s little surprise to read that two factors continue to heighten the risk profile for shipping and seafarers. A combination of port congestion and the impact of workers leaving the industry are combining to worsen short and long term problems.

Despite western countries declaring an end to the Pandemic, COVID-19 lockdown measures in China, together with a surge in consumer demand and fall-out from the invasion of Ukraine have combined to create unprecedented port congestion.

While congestion at the US ports of Los Angeles and Long Beach reached record levels in November 2021, with 116 container ships either in port or at anchor, by March 2022, Los Angeles was reporting its third-busiest month ever as work continued to clear marine terminals of cargo and reduce the number of ships waiting at sea.

At the same time, repeated COVID outbreaks in China resulted in the staggered lockdown of Shanghai in March and April 2022 while the invasion of Ukraine merely compounded ongoing supply/demand pressures for shipping, which have resulted in port congestion, higher freight fees and longer transit times.

Overall, port congestion globally is running above the levels seen last year, with container fleet congestion trending towards previous highs. The impacts of the invasion are likely to create further inefficiencies across the maritime transport system, with tankers and bulk carriers travelling longer distances to source and deliver cargoes.

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