“The main reasons why containers may be delayed
Containers are essential equipment for global trade. But even nearly two years after the pandemic began, logistics nightmares still plague global supply chains. Here are a few reasons for the shortage of shipping containers.
1. The pandemic and changing customer habits
The Covid-19 pandemic has had a major impact on shipping and deliveries since 2020. As consumer behavior changes, they are shifting toward buying more goods and less services. As a result, many carriers are currently busy moving cargo around the world. In particular, trade routes from Asia to Europe and from Asia to North America were severely affected. This has resulted in a lack of equipment and space constraints on many vessels. While the situation continues, it is important to keep an eye on the latest developments.
2. Changes in commodity demand
The pandemic has also led to noticeable changes in consumer buying behavior. This is an unforeseen change and has led to some irregularities in global trade. This ultimately increases the cost burden for operators as well.
3. Unusual events and external factors in the shipping industry
Some delays may be entirely beyond you or your logistics partner – for example, external factors such as weather, piracy, war, fire and special events – are described as “”force majeure””. Hurricanes, cyclones and many other natural disasters can happen, unfortunately, they can have serious impacts on shipping.
Another example is the blockage of ships in the Suez Canal in March 2021. The jam makes it difficult for the shipment to go smoothly and without any delays. About 12 percent of global trade passes through the Suez Canal every year, the shortest sea route between Asia and Europe. And the lockdown just stopped that global trade for a week at the end of March. Now, delays continue, and most importantly, there is a lack of equipment and space on board.
These factors should come into play when forecasting your supply chain. To prepare, check out different supply chain forecasting methods to make it easier for you to prepare for such events.
4. Labour shortage/unrest
In countries with strong unions, we sometimes see labor unrest leading to delays in ship processing, which affects all ships calling at the port, throwing schedules into chaos and causing massive delays and pile-ups.
This is often the case at US West Coast ports, where dockers unions sign 10-year contracts with port authorities, and we typically see friction between unions and port operators over renewal terms at the end of each 10-year cycle.
5. Detention/Delay at Customs/Other Government Offices
Occasionally customs and government agencies may take longer or longer than expected to inspect and clear containers. This can be caused by many factors such as very strict inspection of cargo and containers, additional checks on information on transporting contraband, lack of manpower, lengthy bureaucratic procedures, etc.
6. Insufficient technology
Sometimes, delays can be caused by insufficient technology in your logistics provider. This could be outdated software or a lengthy process of booking shipments through a chain of phone calls and emails.
If you ship with twill, you can rest assured that we use the latest technology to quickly ship your shipment and keep track of it. When booking with Twill, we offer you various benefits such as:
a digital platform
track and trace
simple report
7. Timetable changes and transportation challenges
Shipments may be delayed due to schedule changes or transportation challenges, especially when using inland transportation. This especially happens during peak seasons such as Chinese New Year or holidays. Many factories were closed for more than a week during such a holiday and did not resume full production for almost a month. Therefore, logistics companies, carriers and shippers will need to deal with this demand and the subsequent backlog once normal work schedules resume.
Therefore, we recommend that you always add extra days to your schedule, especially during peak seasons when congestion around roads and ports may be higher than usual.
8. Port congestion
This is a chicken-or-egg situation, and poor reliability is one of the reasons for port congestion, which affects port operations and the evacuation of cargo to final destinations, which in turn causes delays in berthing and loading and unloading vessels, worsening schedule reliability.
During special periods such as peak seasons or due to typical reasons such as labor issues and poor hinterland connections, crowded ports will further exacerbate poor schedule reliability and increase already delayed transit times.
9. Goods damaged in transit
Another factor that should not be forgotten is that your cargo may be damaged in transit. Damage can happen – even if they don’t happen often.”
