Logistics is in crisis! Problems broke out at many ports, nearly 1,300 containers destroyed!

Since the outbreak of the epidemic in 2020, global shipping has been in a difficult situation. Affected by the epidemic prevention policy, the throughput of ports in many places has plummeted, causing port congestion and cargo backlogs. This has led to price increases by shipping companies. From the beginning of 2020 to 2022, the average global shipping price has increased by more than 7 times , and cross-border sellers are suffering.

With the resumption of work after the epidemic, the shipping capacity of many shipping companies has approached the original level, but the pressure on ports has continued to increase. The more congested the port, the more chaotic the management, and the more likely accidents are to occur.

The peak season for shipping is approaching. Recently, port problems in various places have erupted at the same time as if they had been "agreed", which has forced people to pay attention to them.

▲ The picture comes from the Internet

The warehouse containers where the fire broke out contained millions of dollars worth of ready-made garments that were ready to be exported to Western retailers. The accident caused at least 1,000 to 1,300 fully loaded containers to be burned or damaged, with an estimated loss of up to $100 million . Many shipping companies and freight forwarding companies were involved, such as Maersk, APL, Hapag-Lloyd (ship owners); Damco Logistics, DHL, Expedia (freight forwarders).

Chittagong is the foreign trade center of Bangladesh, and 92% of the country's maritime trade is handled at this seaport. As early as last month, there were reports that Chittagong was overcrowded and could no longer accept LCL cargo. Many people speculated that the accident was closely related to the local loose management and weak safety awareness.

Compared with the tragedy in Bangladesh , port congestion in Europe has not caused serious damage, but the outlook is not optimistic.

Currently, several major container ports in Northern Europe are facing serious congestion. As shipping companies have canceled one-third of their scheduled voyages and Russia has been hit by international sanctions, many containers shipped to Russia have been blocked by customs and stored here for a long time. The density of the terminal yard in Rotterdam Port is as high as 95% , and the situation is urgent.

According to Maersk, disruptions to European port operations have caused widespread delays in the company's Asia-North Europe service network and disrupted the overall shipping schedule.

Recently, Maersk has adjusted the AE1 voyage and terminated the two Oceania routes, Polaris and Sirius Star.

▲ The picture comes from MAERSK official website

In addition, the occupancy rate of the terminal yard at the Port of Hamburg in Germany has reached 91%, and the Port of Antwerp in Belgium has announced the suspension of all barge operations until June 30.

The port is seriously congested, and it is difficult for cross-border sellers to guarantee the delivery timeliness. If they encounter unexpected accidents like the one in Chittagong, it will be even more difficult. At present, controlling the instability of logistics and ensuring the timely delivery of goods is the top priority.

Here are some suggestions on how to prevent logistics delays:

1. Prepare stocking plan in advance

Whether you are a seller on Amazon, AliExpress or an independent website, you can make product selection and stocking plans in advance to ensure flexible inventory operation and prevent untimely replenishment.

Based on the product listing time, sellers can work back to the latest delivery time and reserve an additional 1-2 weeks to reduce the risk of logistics delays caused by uncertain factors such as port operation disruptions.

2. Pay attention to changes in logistics situation and make timely adjustments

The shipping situation is changing rapidly. We must always pay attention to cross-border logistics news and grasp first-hand information so that we can adjust the delivery rhythm in time and avoid situations that are about to happen or may happen.

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In conclusion : Ports around the world are now facing reduced cargo pickup efficiency and increased container detention. From this point of view, the global supply chain situation is still deteriorating. For sellers, they should not only make careful preparations in logistics, but also not ignore any details that may affect the entire supply chain.